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Oil major TotalEnergies swings to profit thanks to surging commodity prices

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This image was taken at La Defense in the suburbs of Paris, May 28, 2021. It shows the new TotalEnergies Logo during the unveling ceremony.

Getty Images| AFP | Getty Images

French Oil Major TotalEnergiesOn Thursday, the company reported an increase in profit for full year. This was attributed to a large rebound in commodity prices.

According to the oil and gas company, full-year 2021 net profits were $18.1 billion. This compares to an operating profit of $4.1 billionThis was the same as in the preceding year. Refinitiv polled analysts and predicted that 2021’s full-year net profit would be $17.1 billion.

TotalEnergies posted adjusted earnings of $6.8 Billion for the quarter ended March 2021. This beat analyst expectations of $6.1 Billion.

TotalEnergies shares are up about 17% over the past year.

Due to a rise in world gas prices and a seven-year oil price rally, the biggest fossil fuel titans in the world have raked in huge revenues.

British oil giant BPReports Tuesday showed profits reached an eight-year peak. almost $13 billionWhile Shell’s rival posted an average annual income of $1,050,000 in 2017, $19.3 billion. U.S. competitor Chevron and Exxon Mobil recorded full-year net profits of $15.6 billion and $23 billion, respectively.

It marks a dramatic shift from 2020 when the oilAnd gas industry endured a dreadful 12 months by virtually every measure.

Energy analysts have warned that investors are likely to harbor a “tremendous degree” of skepticism over the industry’s long-term prospects, particularly amid persistent pressure to massively reduce fossil fuel use.

To be sure, the burning of fossil fuels such as oilAnd gas is the chief driver of the climate emergency. Scientists have stressed repeatedly that cutting greenhouse gas emissions is the most effective way to combat rising temperatures.

In recent years, the world’s biggest oil and gas corporations have sought to increase their climate goals. but so far none have given investors confidence their business model is fully aligned to Paris Agreement targets.

Paris Agreement is a landmark agreement that aims to reduce global warming to 1.5 degrees Celsius higher than preindustrial levels. To have any chance of achieving this objectiveTo reduce the greenhouse gas emission by almost half by 2030 and to reach net-zero emissions in 2050, the world will need to do so.

TotalEnergies outlinedThe company plans to achieve net zero carbon emission by 2050. Climate Action 100+, an influential investor group has determined that the firm is on track to meet its targets only partially alignWith the Paris Agreement.

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