TotalEnergies reported adjusted net income of $6.03 billion for the second quarter of 2026 as higher oil prices, refining margins and trading performance offset lower production and weaker results from its liquefied natural gas business.
Adjusted net income increased 12% from $5.39 billion in the first quarter and 68% from $3.58 billion in the prior-year period. Adjusted diluted earnings rose to $2.68 per share from $2.45 in the previous quarter and $1.57 a year earlier.
Cash flow from operations excluding working capital reached $9.8 billion, up 14% sequentially and 48% from the second quarter of 2025. Adjusted EBITDA totaled $13.18 billion, representing increases of 5% from the previous quarter and 36% year-over-year.
TotalEnergies generated $61.77 billion in sales and $57.1 billion in revenue after excise taxes. Revenue increased from $49.52 billion in the first quarter and $44.68 billion in the second quarter of 2025. Reported net income attributable to TotalEnergies was $5.44 billion, down 6% sequentially but more than double the $2.69 billion reported a year earlier.
Adjusted results exclude inventory valuation effects, non-recurring items and changes in fair value. Total adjusting items reduced second-quarter net income by approximately $600 million, primarily because of inventory and fair-value effects and restructuring charges.
The improved performance reflected a significantly stronger commodity environment. Brent crude averaged $103.80 per barrel during the quarter, up 28% from $81.10 in the first quarter and 53% from $67.90 a year earlier.
TotalEnergies’ average realized liquids price increased to $91.60 per barrel from $73.70 in the first quarter. Its average LNG selling price rose 20% sequentially to $10.20 per million British thermal units, while the company’s European refining margin indicator increased 19% to $13.50 per barrel.
Hydrocarbon production totaled 2.395 million barrels of oil equivalent per day, down 6% from the first quarter and 4% year-over-year. The conflict in the Middle East reduced production by an estimated 8%, while project start-ups and ramp-ups contributed 4% growth and improved plant availability added another 3%.
Excluding the Middle East disruption, production increased more than 4% from the prior year. Growth came from projects including Mero 3, Mero 4 and Lapa Southwest in Brazil; Anchor and Ballymore in the United States; Begonia and Clov Phase 3 in Angola; and Mabruk in Libya.
Middle East production losses averaged approximately 210,000 barrels of oil equivalent per day during the quarter. The company also experienced lower lifting volumes because of difficulties accessing the Strait of Hormuz.
Exploration and Production adjusted net operating income increased 25% sequentially to $3.23 billion. The segment generated $5.78 billion in cash flow excluding working capital, up 27%, as higher realized liquids prices outweighed lower production volumes.
TotalEnergies maintained its upstream operating costs at approximately $5 per barrel. The company also entered the Bab Gas Cap concession in Abu Dhabi with a 10% interest and approved the Umm Shaif Gas Cap project, which is targeting more than 600 million cubic feet of daily gas production by 2030.
The Integrated LNG segment reported adjusted net operating income of $807 million, down 39% from the previous quarter and 22% year-over-year. Cash flow excluding working capital declined 53% sequentially to $833 million.
The decrease reflected weaker gas trading in a flat to declining European market and production shut-ins in Qatar. LNG production declined 9% from the first quarter, while total LNG sales fell 13% to 10.7 million metric tons.
The ECA LNG facility on Mexico’s Pacific coast started operations in early July, expanding TotalEnergies’ ability to supply Asian markets. The company also signed long-term oil-indexed LNG agreements with Chugoku in Japan and Hangzhou Gas in China.
Integrated Power generated adjusted net operating income of $533 million, broadly stable compared with the first quarter. Cash flow excluding working capital rose 26% to $721 million, supported by assets acquired from EPH that began contributing in early May.
Net electricity production reached 14.8 terawatt-hours, up 28% year-over-year. Renewable generation increased nearly 15%, while additional flexible gas-fired capacity contributed approximately two terawatt-hours of production. Gross installed renewable capacity reached 37.4 gigawatts, nearly eight gigawatts higher than a year earlier.
TotalEnergies also approved the Mirny project in Kazakhstan, which will combine a one-gigawatt wind farm with 600 megawatt-hours of battery storage. Construction started on a 440-megawatt-peak solar project in the Philippines that is expected to begin operating near the end of 2027.
Downstream adjusted net operating income increased 24% sequentially to $2.3 billion, while cash flow excluding working capital rose 35% to $2.88 billion. The business benefited from higher refining and petrochemical margins and strong crude oil and petroleum products trading.
Refining and Chemicals generated $1.8 billion in adjusted net operating income, up 13% from the first quarter and more than four times the prior-year result. Marketing and Services adjusted net operating income nearly doubled sequentially to $500 million, supported by seasonal demand and higher unit margins.
Total refinery throughput declined 12% sequentially to 1.43 million barrels per day. The decrease reflected a planned shutdown in France, reduced capacity at the SATORP refinery in Saudi Arabia and an unplanned shutdown at the Port Arthur refinery in Texas following a tropical storm.
Net investments totaled $3.45 billion during the second quarter and $7.93 billion during the first half. TotalEnergies maintained its full-year net investment guidance of approximately $15 billion.
Net debt declined by $3.3 billion during the quarter to $19.71 billion. The gearing ratio improved to 13.1% from 15.5% at the end of March and 17.9% a year earlier.
The board declared a second interim dividend of €0.90 per share for fiscal 2026, representing a 5.9% increase from 2025. It also authorized up to $1.5 billion of share repurchases during the third quarter.
TotalEnergies repurchased 16.9 million shares for $1.5 billion during the second quarter. First-half repurchases totaled 26.3 million shares at a cost of $2.25 billion.
Looking ahead, TotalEnergies expects its average LNG selling price to exceed $11.50 per million British thermal units in the third quarter. European gas forward prices were trading between approximately $16 and $20 as low inventories, disrupted Qatari production and competition between European and Asian buyers supported the market.
Excluding the Middle East conflict, third-quarter production is expected to remain consistent with the company’s annual growth target of 3% compared with 2025. The conflict could reduce total company production by 5% to 10%, depending partly on the ability to export through the Strait of Hormuz.
Third-quarter refinery utilization is expected to range from 80% to 85%. TotalEnergies expects the SATORP refinery to return to its full nominal capacity near the end of the quarter.
KEY QUOTE:
“In a high-price environment related to the Middle East conflict, TotalEnergies is leveraging its integrated model and portfolio diversification to post adjusted net income of $6.0 billion and cash flow of $9.8 billion in the second quarter, up almost 15% quarter-to-quarter.”
“Despite a lower lifting level because of difficulties to access the Strait of Hormuz, Exploration & Production posted adjusted net operating income of $3.2 billion and cash flow of $5.8 billion, up by more than 25% over the quarter.”
“Downstream posted cash flow of $2.9 billion, up sharply by 35%, and adjusted net operating income of $2.3 billion, up 24% in the quarter, driven by the ability of the Refining & Chemicals segment to fully capture the increase in refining and petrochemical margins.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies
