ALBAWABA – Major British and French energy giants Shell and TotalEnergies net profits fell in the second quarter of 2023, as oil and gas fall from their peaks in 2022, according to the companies’ earnings statements, issued Thursday.
According to Agence France-Presse (AFP), Shell, TotalEnergies and other big energy companies benefited from the surge in oil and gas prices, following Russia’s invasion of Ukraine.
Shell profits fall 80% in Q2-2023
British energy behemoth Shell said in a statement that profits after tax dropped to $3.13 billion in the April-June period, down 80 percent, compared the same period in 2022.
Net profit stood at $8.7 billion in the first quarter of 2023, Shell added in its earnings statement.
"Shell delivered strong operational performance and cash flows in the second quarter, despite a lower commodity price environment," chief executive Wael Sawan said in earnings statement.
Despite the drop in profits, Shell said it would return $3 billion to shareholders.
TotalEnergies profits fall 28% in Q2-2023
French group TotalEnergies also reported a decline in profits, compared to the second quarter in 2022, by 28 percent, the company statement said.
Net profit reached $4.1 billion between April and June, AFP reported.
"In a favourable but softening oil and gas environment TotalEnergies once again delivered this quarter robust results, strong cash flow, and attractive shareholder distribution," chief executive Patrick Pouyanne said in the company’s earnings statement.
Energy market profits take a hit in Q2-2023
Sky News, CNBC, Reuters and AFP all reported on a general drop in the energies market’s bottom line in the second quarter, in light of lower oil and gas prices this year.
Spain's Repsol also posted drops in profits on Thursday, a day after similar results reported by Norwegian state-owned energy company Equinor, AFP reported.
Gas prices soared last year after Russia cut gas shipments to Europe, as oil markets were also disrupted by supply cuts and demand concerns.
However, natural gas prices dropped sharply as European countries found new suppliers and built up reserves. Not to mention having had a milder winter than expected.
