TotalEnergies second quarter profits soar on higher oil price, strong refining margins
Strong Financial Performance Driven by Market Conditions
By America Hernandez
Quarterly Earnings Overview
PARIS, July 23 - French oil major TotalEnergies reported a 67% rise in second-quarter earnings on Thursday, its best quarter in nearly three years, buoyed by higher oil prices and strong profit margins for refining fuels due to the war in Iran.
Adjusted net income was $6 billion, in line with expectations, according to a consensus of analysts polled by LSEG. That compares with $3.6 billion in the second quarter of 2025 and $5.4 billion in the first quarter of 2026.
Impact of Geopolitical Events
The U.S.-Israeli war on Iran, which led to Iran effectively shutting the Strait of Hormuz, disrupted global supplies and pushed crude oil and gas prices to multi-year highs, delivering a windfall for major energy companies.
Oil Price Surge
Global benchmark Brent crude prices averaged around $97 per barrel during the April-to-June quarter, up 45% from $67 per barrel a year earlier.
Shareholder Returns and Segment Performance
Share Buyback Scheme
TotalEnergies announced a $1.5 billion share buyback scheme for the third quarter, maintaining the same amount as for the second quarter.
Exploration and Production Results
Exploration and production earnings reached $3.2 billion, a 64 % rise from the same period a year ago and 25% higher than the first quarter of 2026, as production in the Middle East slowly comes back online.
Refining and Chemicals Division
Refining and chemicals income soared 362% to $1.8 billion as margins on refining fuels rose and as Total continued to trade profitably on rising oil and fuel prices caused by the shortages due to the paralysed Strait of Hormuz.
Liquefied Natural Gas Performance
Its liquefied natural gas division earned $807 million, a 22% drop that Total said in last week's trading statement was due to weak LNG demand in Europe.
(Reporting by America Hernandez in Paris. Editing by Dominique Patton )
