RoydadNaft –  TotalEnergies reported a 23% fall in second-quarter earnings on Thursday, the French oil major’s worst performance in four years but in line with expectations, as lower oil and gas prices outweighed a rise in production and power sales.

Shares were down 1.4% to 52.59 euros at 0715 GMT.

Brent crude prices have fallen 20% from a year ago as OPEC+ producers – members of the Organization of the Petroleum Exporting Countries and allies such as Russia – started to unwind output cuts of 2.17 million barrels per day in April.

TotalEnergies’ net debt leapt 89% year-on-year to $25.9 billion, pushing gearing – a measure of debt to equity – to 22.6% including leases, as the company made $2 billion of acquisitions and spent heavily on projects – even as it extended a $2 billion share buyback into the third quarter.

“We do not expect investors to reward buybacks that are paid out of balance sheets indefinitely,” RBC analyst Biraj Borkhataria said in an investor note.

Refining and chemicals earnings fell 39% from a year ago, the company said.

The company said it expected refining margins to rise above $50 per ton in the third quarter due to increased fuel demand during Europe’s summer driving season.

Profit from its integrated liquefied natural gas unit was down 9.6% year-on-year and 20% lower than the first quarter of 2025, as lower prices and less volatility meant traders could not profit from price changes.

The integrated power unit beat forecasts, however, with a 14% rise in profit to $574 million.

TotalEnergies also forecast a 3% increase in hydrocarbon output in the third quarter against the same period a year ago.