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Market Chatter: France Mulls Potential Tax on TotalEnergies Excess Q1 Profits as Energy Prices Climb

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France did not rule out a potential exceptional tax on TotalEnergies (TTE), aimed at taxing and redistributing the excess profits earned by the French energy giant, amid soaring global energy prices, the country's Budget Minister David Amiel told Bloomberg in an interview on Sunday.

Speaking with France's Radio J, Amiel said that "there is no taboo" around implementing such a tax, but added that, at least for now, the most effective way to ease pressure on household budgets was by "capping fuel prices at the pump."

This comes following a strong Q1 performance by the company, prompting a boost to its dividends and stock buybacks, even as it struggles with disruptions to its operations in the Persian Gulf.

TotalEnergies CEO, Patrick Pouyanne, had warned last month that any such surcharge by the French government would lead to the company bringing an end to its fuel caps at its stations.

While no decision has been made regarding this so far, Amiel has said that "when there are exceptional profits, there should be exceptional redistribution," adding that while France was lucky to have Total, the company was just as lucky to have France.

TotalEnergies did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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