TotalEnergies profits spark calls for windfall taxes

French energy giant TotalEnergies reported Thursday a net profit of nearly $6.0 billion for the second quarter of the year, sparking fresh calls for windfall taxes which the government is opposing.

The oil and gas provider made nearly three million dollars an hour in profit from April to June, thanks to record high prices sparked by Russia’s invasion of Ukraine.

“Russia’s invasion of Ukraine continued to impact energy markets in the second quarter, with oil prices averaging more than $110 per barrel,” said chief executive Patrick Pouyanne in a statement.

The profits of $5.7 billion euros were up sharply on the 2.2 billion reported in the same quarter last year, while sales jumped by 37 percent to $74.8 billion.

Left-wing opposition parties have been pushing for months for windfall taxes on companies that have profited from Russia’s invasion of Ukraine which has sent energy prices spiralling.

President Emmanuel Macron’s minority government, which relies on rightwing parties for support, has instead urged companies to make voluntary efforts to help consumers.

TotalEnergies announced last week that it would cut diesel and petrol prices at the pump by 20 euro centimes from September to November and 10 centimes thereafter.

“The government is happy with a discount worth 500 million euros. More than ever, windfall taxes on super-profits must be put in place,” top left-wing MP Manuel Bompard said.

“When you’re filling up your car to go to work or on holiday, remember that every centime will help fatten up a shareholder,” said the head of the Communist party, Fabien Roussel.

– ‘Already taxes on profits’ –

Car manufacturer Stellantis, which is also in the sights of left-wing MPs, reported profits on Thursday of 8.0 billion euros in the first half of the year.

CEO Carlos Tavares spoke out against the idea of windfall taxes on Thursday.

“Everything that discourages the creation of value in the country, by jolts or decisions that are seen as unfair given the efforts of our employees… would be counterproductive,” he said.

Tavares’ pay package created outrage earlier this year when it was revealed that he could earn up to 66 million euros in 2021 from running the group, formed from a merger between PSA and Fiat Chrysler.

The most senior MP from Macron’s parliamentary party, Aurore Berge, stressed that “there is already a tax on profits.”

France “has the highest level of taxes in Europe after Denmark,” she told France Info radio.

Runaway oil and gas prices are generating bumper profits across the sector.

British energy giant Shell also said on Thursday its bottom line increased five-fold in the second quarter.

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