In 2022, everything is going well for Total. The French group more than doubled its net profit in the second quarter, with 5.7 billion euros in profits. But in a context of war in Ukraine, climate crisis and rising energy prices for French households, voices are raised against the company. Franceinfo explains why the profits of the oil and gas giant are highly criticized.
Because they are linked to the war in Ukraine
The rise in oil and gas prices due to the war in Ukraine enabled Total to make exceptional profits in 2022. An observation shared by Patrick Pouyanné, the group’s CEO: “The effects of Russia’s invasion of Ukraine on energy markets continued into the second quarter, with oil prices rising above $110 a barrel on average in the quarter”he commented in a press release.
An international context that creates a stir. TotalEnergies is accused by politicians on both the left and the right of taking advantage of the war to reap “superprofits”. The words “war profiteers” had even been pronounced by Emmanuel Macron during a G7 summit in Germany at the end of June, without directly quoting the company. “Stop the war profiteers! It is urgent to tax the superprofits of large groups”, reacted for his part the deputy LFI Alexis Corbière, after the announcement of the results of Total, Thursday, July 28.
Because they are due to inflation
These massive profits are all the more difficult as the rise in energy prices has been hitting the French in the wallet for several months. Over the first six months of the year, the liter of unleaded 95 rose by more than 25%. “The French people are suffering when Total is gorging itself”retorted MP Mathilde Panot, president of the LFI group in the Assembly, during the examination of the purchasing power.
Faced with these price increases, Total has still decided to make a gesture towards households. A discount at the pump of 20 cents per liter will thus be applied between September and November in the group’s stations. The rebate will then drop to 10 cents for the rest of the year, the oil group announced on Friday 22 July. “An immediate gain in purchasing power”according to the leader of the deputies of the majority, Aurore Bergé. “Derisory”judge the deputy LFI Clemence Guette.
Because they are not taxed
Faced with exceptional profits, the opposition has been pushing for several weeks to introduce an exceptional tax. But the government is against it, preferring a voluntary contribution from companies. The tax proposal was thus narrowly rejected, Saturday, July 23, in the Assembly, despite protests from the left and the far right.
“The government has refused an exceptional tax on profits linked to the rise in energy”thus regretted the socialist deputy Valérie Rabault. Mathilde Panot, she tackled the position of Bruno Le Maire, the Minister of the Economy, who pleaded for companies to make a move on their own. MP LFI therefore compared Total’s profits to the amount of the pump discount granted by the company:
Bruno Le Maire: “rather than a tax, it is better for companies to contribute voluntarily. »
Earnings record of #Total : 5.7 billion.
Voluntary contribution: 500 million rebate to take the pill.
Thanks who?https://t.co/QFP82MoyLv
— Mathilde Panot (@MathildePanot) July 28, 2022
Asked about the advisability of introducing a tax on “superprofits”, Prime Minister Elisabeth Borne confirmed the government’s position: “We are asking these companies to help us, to help the French who today, with inflation, may have difficulties.” She estimates that Total “provided an answer with a 20-cent drop in prices at the pump from September”.
Because they do not benefit employees
TotalEnergies employees also chose this symbolic day of the publication of flourishing results to go on strike at the call of the CGT. The strikers hear “keep up the pressure” and demand wage increases taking into account inflation, according to Thierry Defresne, CGT secretary of the European works council TotalEnergies SE. “In Total’s policy, the first privileged is the shareholder”believes the trade unionist, questioned on RMC. “Unfortunately, Total employees remain the big losers. The 5.8% inflation is not compensated for employees.”
Because they are “climaticides”
TotalEnergie’s record profits have also revived criticism from environmental organizations. Thus, the environmental NGO 350.org denounced a gain “amazing” whereas “the oil giant is responsible for some of the most destructive fossil fuel projects on the planet”citing in particular a controversial pipeline project in East Africa.
A few weeks earlier, demonstrators had also prevented the group’s shareholders from accessing their General Meeting. “TotalEnergies invests in many climate-killing projects, finances the worst regimes and makes record profits, it’s so cynical”had notably denounced the environmental activist Camille Etienne.