By Giulia Petroni

 

TotalEnergies SE said Thursday that it swung to profit in the second quarter of the year as business benefited from a progressive recovery in oil demand and OPEC+ supply discipline.

The French oil-and-gas major posted a quarterly net profit of $2.21 billion from a net loss of $8.37 billion in the year-earlier period, when it booked exceptional impairments. On an adjusted basis, profit came in at $3.46 billion.

Hydrocarbon production for the quarter decreased 3% on year to 2.75 million barrels of oil equivalent a day compared with 2.85 million BOE/D in the year-earlier period. The company said it expects production to be around 2.85 million BOE/D in the full year.

Sales in the second quarter amounted to $47.05 billion, compared with $25.73 billion a year earlier.

TotalEnergies said it generated net cash flow of $3.15 billion in the quarter, which covered the interim dividend and allowed continued reduction of debt. Gearing fell to 18.5%, below the company's goal of 20%.

The company also said it will distribute a second interim dividend for 2021, stable at 66 European cents ($0.78) a share. TotalEnergies said it has decided to allocate up to 40% of the additional cash flow generated above $60 a barrel to share buybacks.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

July 29, 2021 03:05 ET (07:05 GMT)

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