Why TotalEnergies Stock Slumped Today

On Thursday, the energy and chemicals conglomerate TotalEnergies (TTE) didn’t show much activity in the stock market. The company’s stocks dropped nearly 3% after their second-quarter earnings were announced, while other stocks performed better. Notably, the S&P 500 (^GSPC) managed to achieve a small increase at the end of trading.

Oil price slump

As a passionate follower of the energy sector, I woke up this morning excited to analyze TotalEnergies’ recently released financial reports. Based in France and reporting in U.S. dollars, their latest net revenue came in slightly below $44.7 billion – a figure that falls short compared to the impressive $49.2 billion they earned during the same period in 2024.

I’m thrilled to share that our record-breaking top-line result not only surpassed expectations but also left the typical analyst estimate in the dust! That estimate, sitting just under $39.9 billion, seems like a distant memory now.

Despite a larger decrease in net income when considering non-GAAP figures, the key line item declined by 21% compared to last year, amounting to $3.6 billion ($1.57 per share). However, this per-share figure fell short of experts’ expectations, with a projected $1.67 instead of the actual $1.57.

TotalEnergies experienced a drop of 10% in oil prices over the past quarter, as reported by the company. Despite this dip in oil prices, which has affected the company negatively, CEO Patrick Pouyanne emphasized that TotalEnergies continues to effectively implement its diverse energy strategy, and there’s been ongoing growth in both hydrocarbon and electricity production.

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A gloomy outlook

In their perspective for the present quarter, TotalEnergies expressed caution about the future of their sector. They stated that due to recent geopolitical and economic changes, oil prices are experiencing significant fluctuations, as the industry is grappling with a surplus of supply (which typically puts downward pressure on prices).

Instead of predicting a net investment of between $17 billion and $17.5 billion for this year, they didn’t offer any projections regarding their potential revenue or profitability in their recent financial report.

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2025-07-25 00:22