TotalEnergies Q2 Profit Surges 67% to $6 Billion Driven by Higher Oil Prices and Refining Margins
TotalEnergies reported a 67% jump in second-quarter profits, driven by rising oil prices and widening fuel refining margins stemming from conflict in Iran, according to a company statement released on Thursday.
The French energy giant recorded an adjusted net profit of $6 billion for Q2 2026, meeting market analysts' expectations. This compares with $3.6 billion in Q2 2025 and $5.4 billion in Q1 2026.
TotalEnergies benefited significantly from the sharp rise in crude prices during the quarter, as escalating geopolitical tensions related to the war in Iran bolstered revenues across the global energy sector.
Production & Upstream Performance
Oil and gas production reached 2.395 million barrels of oil equivalent per day (boe/d) during the second quarter, supported by organic output growth exceeding 4% year-on-year. This increase was propelled by new projects brought online over the past year, including Mero 4 and Lapa South-West in Brazil, Balmore in the US, and Mabrouk in Libya.
This organic expansion helped partially offset Middle East production losses, which averaged 210,000 boe/d during the quarter.
Despite lower shipping volumes caused by transit challenges in the Strait of Hormuz, the Exploration & Production segment delivered strong financial results:
Adjusted Net Operating Income: $3.2 billion
Cash Flow: $5.8 billion (up over 25% compared to Q1)
Average Liquid Selling Price: Increased by $17.9 per barrel quarter-on-quarter.
Upstream Operating Costs: Maintained at a competitive $5 per barrel.
Surge in Refining and Petrochemicals
The Integrated Power segment generated $700 million in adjusted cash flow—a 25% quarter-on-quarter increase—supported by contributions from EBH assets since early May, while net operating income remained stable compared to Q1.
In the Downstream segment:
Cash Flow: $2.9 billion (up 35%)
Adjusted Net Operating Income: $2.3 billion (up 24%)
The company attributed these strong results to refining and petrochemical operations fully capturing elevated processing margins, combined with robust performance in crude oil and refined product trading, alongside sustained strength in its Marketing & Services division.
Deleveraging and Shareholder Returns
TotalEnergies recorded net investments of $3.4 billion for the second quarter and $7.9 billion for the first half of the year, keeping the firm on track to meet its annual target of $15 billion.
The company's gearing ratio dropped to 13.1% by the end of Q2—a 2.4 percentage point improvement—driven by a $3.3 billion reduction in net debt.
Reaffirming its strategy to prioritize dividend growth and deleveraging, the Board of Directors declared a second interim dividend of €0.90 per share for 2026, representing a 5.9% increase compared to 2025. Furthermore, the Board authorized the continuation of its share buyback program of up to $1.5 billion during the third quarter.