TotalEnergies posts first quarterly loss in four years amid global energy headwinds.

 TotalEnergies has reported its first loss since 2020, marking a sharp reversal for the energy giant after years of steady gains. The setback, driven by weakening global demand, volatile oil prices, and mounting operational costs, underscores the fragile balance facing the world’s top energy producers as markets grapple with economic uncertainty and the accelerating transition to cleaner energy.

The firm posted a loss after tax of N2.85 billion as at June 2025, from a profit of N20.56 billion as at June 2024.

Of course, deteriorating profit margins was largely driven by a sharp fall in sales of petroleum products and rising input costs. Downstream oil and gas firms generate very slim margins due to the capital intensiveness of the business.

Revenue reduced by 20.01 percent to N423.89 billion in the period under review from N529.94 billion as at June 2024.

This unimpressive result stunned investors who had wagered that the subsidy removal and deregulation of the downstream oil sector would strengthen earnings of downstream oil and gas companies.

Analysts have told MoneyCentral that while the Downstream Regulatory Authority (NMDPRA) had issued licenses to downstream oil and gas companies for the importation of petroleum products into the country, sector players face challenges from a severe foreign currency scarcity and currency devaluation that hinders them from bringing in the products.

This hindrances forces them to get products from the Dangote Refinery at a forced price.