TotalEnergies Q2 profit surges 68% on Iran war oil rally

TotalEnergies ↗ 1.65% reported on Thursday a 68% jump in second-quarter adjusted net income to $6.03 billion, its best quarterly performance in nearly three years, as the war in Iran sent global oil prices and refining margins sharply higher.Business Wire+1

The result was in line with analyst expectations polled by LSEG, according to Reuters, and compared with $3.6 billion in the same period a year earlier and $5.4 billion in the first quarter of 2026. Cash flow from operations excluding working capital rose 14% quarter-on-quarter to $9.8 billion.Global Banking & Finance Review+2

War-Driven Windfall

The U.S.-Israeli conflict in Iran, which has effectively shut the Strait of Hormuz, disrupted global supplies and pushed crude and gas prices to multi-year highs. Brent crude averaged around $103.80 per barrel during the quarter, up more than 50% from $67.90 a year ago, according to figures in the company's earnings release.Global Banking & Finance Review+1

CEO Patrick Pouyanné said TotalEnergies was "leveraging its integrated model and portfolio diversification" in the high-price environment. The company's exploration and production division posted adjusted net operating income of $3.2 billion, up 25% from the prior quarter, capturing a $17.90-per-barrel increase in the average selling price of liquids.Business Wire

Refining and chemicals income soared to $1.8 billion — nearly five times higher than the year-ago quarter — as the company captured stronger refining margins and maintained strong oil trading results. European refining margins nearly tripled year-on-year to $13.50 per barrel.Global Banking & Finance Review+1

LNG Drag and Shareholder Returns

The quarter was not without weakness. Integrated LNG segment income fell 39% quarter-on-quarter to $807 million, hit by underperformance in gas trading on a flat-to-declining European market — an issue the company had flagged in a July 16 earnings preview that prompted analysts to trim estimates.Yahoo+2

Production fell 4% year-on-year to 2.395 million barrels of oil equivalent per day, as a more-than-4% organic growth rate was offset by an 8-percentage-point drag from Middle East production shutdowns averaging 210,000 barrels per day.Business Wire

The board raised the quarterly dividend 5.9% to €0.90 per share and authorized $1.5 billion in share buybacks for the third quarter, while reducing net debt by $3.3 billion to bring the gearing ratio down to 13.1%.Global Banking & Finance Review+1