By: Reuters

Lower prices for oil and liquefied natural gas will weigh on French oil major TotalEnergies' (TTEF.PA), opens new tab second-quarter earnings, even as its hydrocarbon production rose slightly, it said in a trading update on Wednesday.

Total's hydrocarbon production in the second quarter of 2025 will show an increase of around 2.5% year-on-year, it said.

But a 20% drop in the Brent crude price — from $85 per barrel a year ago to $67.9 per barrel in the second quarter of 2025 — means earnings for upstream will be lower.

Crude oil prices fell in the second quarter as OPEC+, made up of the Organization of the Petroleum Exporting Countries and allies such as Russia, started to unwind self-imposed production cuts of 2.17 million barrels per day in April.

TotalEnergies' shares were up 0.06% at 0923 CET. Jefferies analyst Giacomo Romeo said the earnings preview was in line with consensus expectations.

Last week BP flagged lower oil and gas sales, while Shell warned of lower gas trading earnings and a hit to its downstream chemicals business.

Total said lower LNG prices and decreased price volatility resulted in its traders earning less than both last quarter and the second quarter of 2024.