TotalEnergies reported stable financial results in the second quarter. The rise in global oil prices and strong earnings in the refining segment helped the company offset a decline in production caused by the conflict in the Middle East.

Financial Results

The company’s adjusted net profit increased to $6 billion, up from $3.6 billion in the same period last year. Operating cash flow, excluding changes in working capital, grew by more than $3 billion, reaching nearly $10 billion. Both figures met or slightly exceeded analysts’ expectations.

Impact of Commodity Prices

The company benefited from a significant increase in commodity prices during the quarter. The average price of Brent crude oil rose by more than 50% year-over-year. TotalEnergies’ average realized price for liquid hydrocarbons climbed to $91.6 per barrel, compared to $65.6 a year earlier, which substantially boosted profits in the upstream segment.

Hydrocarbon Production

Total hydrocarbon production fell by 4% year-over-year to 2.4 million barrels of oil equivalent per day. This decrease was mainly due to a reduction of about 210,000 barrels per day as a result of the conflict in the Middle East. Without these losses, production would have increased by more than 4%, supported by the launch of new projects such as Mero 4 and Lapa South West in Brazil, Ballymore in the US Gulf of Mexico, and Mabruk in Libya.

Refining and Petrochemicals Results

The refining segment delivered the best quarterly results among integrated oil companies, amid supply disruptions. Adjusted operating profit in this segment more than doubled, and cash flow nearly doubled as well. The company noted a significant increase in refining and petrochemical margins, while trading in crude oil and petroleum products remained at a high level.

LNG Segment

The integrated liquefied natural gas segment was weaker. Adjusted operating profit fell by 22% compared to last year, mainly due to weaker gas trading results in a stable European market, despite rising LNG prices. Production stoppages in Qatar also affected the results.