The Six Major Oil Majors Earned 5 Billion RMB Per Day in the First Half of the Year, with Combined Profits Reaching $135.6 Billion

Chevron’s performance was equally robust: its net profit for the first half of the year reached $14.77 billion, surging 115% year-on-year. In Q2 alone, Chevron posted earnings of $12 billion—nearly five times the $2.5 billion recorded in the same period last year. Its operating cash flow stood at $25.1 billion, up 82% year-on-year. Among European majors, TotalEnergies reported a first-half adjusted net profit of $11.4 billion, up 47% year-on-year; Shell’s adjusted net profit totaled $9.84 billion, rising 70.2%; and BP posted the strongest growth—up 139% to $8.93 billion. Collectively, these six companies generated approximately $135.6 billion (roughly RMB 915.15 billion) in profit—equivalent to a daily net gain of $749 million (about RMB 5.056 billion). This daily figure exceeds the full-year revenue of many listed companies. II. Three Engines Driving Windfall Profits This extraordinary profitability is no accident—it results from the simultaneous convergence of three powerful forces. First Engine: Soaring Oil Prices. Ongoing Middle East conflicts continue disrupting global supply chains. Following the outbreak of U.S.-Iran tensions, traffic through the Strait of Hormuz—the conduit for nearly 20% of the world’s crude oil shipments—was impeded. Saudi Aramco’s output dropped sharply by 25% quarter-on-quarter to 9.46 million barrels of oil equivalent per day—the largest production decline among the six majors. While output fell, prices surged: Brent crude averaged significantly higher in Q2 than in Q1. Lower supply plus higher prices delivered windfall gains for oil producers. Second Engine: Production Ramp-Up. The broad-based profit surge reflects a competitive edge in asset quality. ExxonMobil achieved its highest upstream production in over two decades, with Permian Basin output exceeding 1.8 million barrels per day. Chevron benefited from acquisitions—including Hess—and increased Permian output, achieving record upstream hydrocarbon production; its Q2 output rose 20% year-on-year. High-quality fields are now entering a phase of explosive production growth. Third Engine: Refining Windfalls. Russia’s refining capacity shortfall, Middle Eastern supply disruptions, tight feedstock availability for Asian refiners, and historically low global inventories have pushed global refining margins to record highs. Chevron’s refineries set a new record for crude processing capacity at 1.07 million barrels per day, with utilization exceeding 97%. TotalEnergies’ refining and chemicals division posted an adjusted net operating profit of $3.4 billion in the first half—nearly five times higher year-on-year. Shell’s Q2 refining margin rose 41% quarter-on-quarter to $24 per barrel, while its chemicals and products segment posted its strongest adjusted earnings since Q3 2021. These refining windfalls contributed substantially to the majors’ incremental profits. With all three engines firing simultaneously, the six majors’ profits soared to historic highs. III. From “Transition Pioneers” Back to “Capital Discipline” During this high-oil-price cycle, strategic priorities among oil majors are undergoing profound shifts. European energy firms faced greater pressure to transition in recent years, pledging to cut fossil-fuel investments and scale up renewables. Yet reality intervened: low returns on new-energy projects and renewed emphasis on energy security prompted a clear strategic recalibration. Over the past two years, European majors have shifted markedly—from “energy transition pioneers” back toward “capital discipline.” BP’s newly appointed CEO Meg O’Neill explicitly stated that the company has made significant progress strengthening its balance sheet.

TotalEnergies: A Name Change Hides Strategic Nuances—What Surprises Can This Veteran Energy Company Deliver?

I. Company Overview 01. Company Profile TotalEnergies (NYSE: TTE), founded in 1924, is the fourth-largest integrated oil and gas company globally—and a French multinational. This year, it officially rebranded from “Total” to “TotalEnergies.” Approximately one-third of its business and assets are based in France, and another third in North America. TotalEnergies operates across more than 130 countries, covering the entire oil and gas value chain—including upstream activities (exploration, development, and production of oil and natural gas, as well as liquefied natural gas) and downstream operations (refining and marketing, trading and transportation of crude oil and refined products). Simultaneously, the company has invested heavily in renewable power generation. As it divests oil and gas assets, its acquisitions and investments in renewables are expected to yield increasingly substantial returns. 02. Financial Review On October 29, the company released its third-quarter financial results. TotalEnergies reported Q3 revenue of $54.749 billion, up 65% year-on-year; net profit of $4.752 billion, up 38% quarter-on-quarter; and net cash flow of $6.2 billion—sufficient to cover its $2.1 billion interim dividend. The Board approved a third interim dividend of €0.66 per share and announced a $1.5 billion share buyback program to be completed in Q4. The company maintains relatively sound financial health: its free cash flow has nearly covered dividend payouts. Compared with peers, TotalEnergies offers a comparatively high and stable dividend yield. Even amid rising energy costs, the company restored performance to pre-crisis levels—driven by improved utilization of petrochemical products in its downstream operations and stronger European refining margins. Marketing and services revenues confirm this recovery: adjusted operating income and cash flow stood at $1 billion and $1.6 billion respectively—both up roughly 10% quarter-on-quarter. Thanks to strong performance in petrochemicals and European refining, the refining and chemicals division’s adjusted net operating income surged to $602 million in Q3 2021—versus a loss of $88 million in Q3 2020. European refining margins were negative in 2020. II. Corporate Strategy In May this year, the company formally adopted the name “TotalEnergies,” underscoring its firm commitment to transitioning from fossil fuels to clean energy—and its ambition to become a diversified energy company. It is currently advancing both traditional energy and renewable energy businesses in parallel. 01. Traditional Business In Q3 2021, the company’s oil and gas production reached 2.814 million barrels of oil equivalent per day—a 4% increase year-on-year. With OPEC+ raising production quotas, oil and gas prices surged significantly, lifting production to 2.814 million barrels of oil equivalent per day—a 2% increase quarter-on-quarter. Oil demand has steadily rebounded to pre-crisis levels, driving sustained price increases. Brent crude prices hit $85 per barrel in mid-October—approaching a seven-year high.

TotalEnergies third-quarter profit surges on refining income

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TotalEnergies reported a 127% surge in third-quarter earnings driven by historically high refining margins amid geopolitical tensions. The company's refining and chemicals division posted record net income of $3.6 billion, while LNG unit income also doubled.

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