TotalEnergies CEO: TotalEnergies did not pay French taxes last year because of a loss in the refining business
TotalEnergies, the French oil giant, did not pay corporate tax in France in 2017 because its operations there generated a loss in excess of 300 million euros (about 356.07 million dollars), said CEO Patrick Pouyanne on Friday.
Pouyanne, in an interview, was asked how Total, who on Wednesday reported a 2025 adjusted net profit of $15.6 billion escaped France's surtax on large corporations -- a measure which was supposed to be temporary, but was rolled into the budget for 2026 as France struggles with its high debt.
Pouyanne said on TF1 Ecorama that "in France, our refining activity suffered enormously during the first half of the year...?" and this activity was loss making with a deficit of 300 (euros).
He added, "Globally, our tax rate of?40% is higher than French rates. I don't like to learn lessons. We were the biggest contributor to the French tax for share buybacks with about 180 million euros."
The CEO warned of a pullback in investment if France taxed large companies to balance its budget.
REFINING EARNINGS HALF OVER A DECADE
Total's refining division and chemicals was one of the few bright spots in its 2025 results. The division earned $2.4 billion, a 10% rise compared to 2024 in an era marked by low oil prices.
It was half of what it earned 10 years ago. New refineries have been opened in Asia and Africa, creating competition for European refineries.
Six of the 14 refineries worldwide are located in Europe. Three of them are located in France.
The margins on fuels for refining in Europe increased in 2022, after Russia lost its energy because of sanctions over the Ukraine war. They improved again in the second half last year, when the U.S. imposed sanctions against Russia's Rosneft, and Lukoil. But the trend is still continuing, as major companies continue to close petrochemical plants in Europe.
TotalEnergies will close a steam cracker in Antwerp, Belgium in 2027 because of an anticipated oversupply of ethylene. Pouyanne said that there are too many refineries across Europe. He preferred to convert sites into renewable fuels than close them.
(source: Reuters)
