French conglomerate, TotalEnergies has disclosed a first-quarter profit reduction that was less than anticipated, thanks to a resilient oil market that mitigated the impact of reduced gas prices.

Just as other energy firms, TotalEnergies saw the bad effects of Europe’s sluggish gas market, influenced by a mild winter dampening heating demand.

However, support for crude prices came from supply restrictions by OPEC+ and ongoing conflicts in the Middle East, giving a buffer for major oil companies’ earnings.

TotalEnergies Chief Executive Officer, Patrick Pouyanne stated that the earnings reflect "a context of sustained oil prices and refining margins but softening gas prices.”

According to the company, the adjusted net income was $5.11 billion in the period, down from $6.54 billion a year earlier. Analysts had expected profit of $5.0 billion.

The company announced an interim dividend of 79-euro cents per share for this fiscal year, a rise of almost 7% and in line with expectations. It will buy back a further $2 billion of its shares in the second quarter, in line with the first-quarter amount.

The stock was little changed in early Paris trading after gaining 11% this year.

It also reiterated a plan to invest $17 billion to $18 billion in 2024, including $5 billion in its power business.

BEB