In front of the deputies of the flash mission on the profits of the companies, the CEO of the company underlined the efforts of his group to return purchasing power to the French.
Facing the deputies, Patrick Pouyanné did not let it go. Questioned, Wednesday morning, by the elected members of the flash mission on the “superprofits” of oil and gas companies, the CEO of TotalEnergies defended the choices of his company, as well as the participation of the energy giant in public finances.
The hearing was expected: accused by certain voices on the left of tax optimization, the firm contributes heavily to the accounts of the States, argued the businessman, assuring that he paid “income tax, in countries where we do“. In 2020, a year marked by the Covid and the fall in oil prices, TotalEnergies had paid some 6 billion dollars in “various taxes on profits and production“, he specified. An amount that then jumped to “16 billion“, a year later, and which should climb to “30 billionof dollars this year. “The vast majorityof these sums are paid in oil-producing countries, wheretaxation adapts with oil prices“, indicated Patrick Pouyanné, speaking of a “rent captured by the countries […] who produce natural resources“.
In France, on the other hand, the activities of TotalEnergies are much less profitable, even recording significant losses, qualified the CEO. Beyond corporation tax, however, the company pays “a contribution […] around 1.6 billion to 1.9 billion euros per year to the French budget“, including around one billion euros in social security contributions.
A “rush” on the stations with the reinforced discount
Attacked by members of the flash mission, the CEO of TotalEnergies also underlined the company’s efforts to restore purchasing power to the French. The first version of his discount on prices at the pump, of 10 cents, led to a “training effectamong its competitors, as well as a jump in volumes of20%“. Ultimately, this operation cost “around 100 million eurosto the group. The enhanced version of the rebate, in effect since September, resulted in a “rush of the French on the stations“, with an explosion in the attendance of”80%» the first week, an overwhelmed logistics system and long queues.
After two weeks, attendance remains massive, around 30% in volume, added the businessman, who acknowledged that the logistics remained complex to manage. “We’ve been overwhelmed“, he summarized. “I gain nothing […]. We are, after two weeks, at a cost of around 71 million euros for the company“, described Patrick Pouyanné, adding that if the private customers were numerous, those professionals, having for example a professional card, “leave», annoyed by the queues in front of the stations.
For the time being, the successive discounts have therefore cost his company 171 million euros, a sum which will increase as long as the device remains active. “You tell us: you are making excess profits on refining [en France]well we are using them to finance the operation of the rebates“Defended the boss of TotalEnergies.
While the elected representatives of the Nupes present this Thursday their proposal for a referendum of shared initiative (RIP) aimed at taxing more the “superprofits” companies, Patrick Pouyanné warned against the consequences of “taxation projects“. “Our country suffers from deindustrialization […]. Everything you do in Parliament is listened to by all investors“, he launched to the deputies, stressing that “signals that would be unfavorableto investment risk limiting the attractiveness of nations.
The mission hearings will continue until the end of the month. The day before, the managing director of Engie, Catherine MacGregor, had explained that her group was expecting recurring net income of around 4 billion euros in 2022, up sharply over one year, a evolution which is explained for a third by aprice effecton the gas. His company remains convinced of the central role of this energy for “very very long“: “It would be a utopia to say that we are going to electrify all uses“, she assured the deputies.
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