Key Takeaways
- First quarter adjusted net income reached $5.4 billion for TotalEnergies, marking a 29% year-over-year increase and exceeding the $5 billion analyst forecast
- Quarterly dividend increased 5.9% to reach €0.90 per share
- Second quarter share buyback program doubled to $1.5 billion from the $750 million announced in February
- Refining and chemicals division delivered exceptional performance with earnings surging more than fivefold to $1.6 billion
- Shares climbed 1.1% to 79.16 euros during early Paris trading session, with year-to-date gains reaching 42.33%
The French energy giant delivered impressive first quarter results on Wednesday, surpassing Wall Street expectations across virtually all business divisions. TotalEnergies reported adjusted net income of $5.4 billion, representing a 29% increase from the $4.2 billion recorded during the corresponding period last year.
Market consensus from LSEG data had anticipated approximately $5 billion in earnings. This performance came despite significant regional challenges that compelled TotalEnergies to halt approximately 15% of its upstream operations.
What fueled these results? Elevated oil prices combined with robust trading operations linked to Middle Eastern geopolitical tensions.
Brent crude surged toward multi-year peaks approaching $120 per barrel following U.S.-Israeli military operations against Iran that commenced in late February. Iran’s retaliatory closure of the Strait of Hormuz and subsequent assaults on neighboring Gulf states — including targeting a Saudi refinery partially owned by TotalEnergies — triggered significant energy market volatility.
While this turbulence negatively impacted production volumes, it generated substantial profits for trading divisions.
Refining and Chemicals Deliver Exceptional Growth
The refining and chemicals division emerged as the quarter’s star performer. This segment generated $1.6 billion in earnings, representing more than a fivefold increase, predominantly fueled by oil and petroleum products trading operations.
Upstream exploration and production operations saw earnings rise 5% to $2.58 billion. The liquefied natural gas division posted a modest 2% gain to $1.3 billion, despite Iranian attacks damaging Qatari LNG infrastructure that supplies TotalEnergies.
The marketing and services division experienced 9% growth, reaching $262 million. Meanwhile, the integrated power segment — encompassing gas-fired generation, renewable energy, and battery storage — increased 8% to $545 million.
Every principal business unit registered positive growth despite widespread energy market disruptions.
Enhanced Capital Returns for Investors
TotalEnergies leveraged the earnings release to announce more substantial shareholder distributions. The quarterly dividend received a 5.9% boost to €0.90 per share.
The company doubled its share repurchase program to $1.5 billion for the second quarter. This represents a significant shift from February’s decision to reduce buybacks to $750 million when declining oil prices created a more conservative outlook.
RBC analyst Biraj Borkhataria characterized the results as favorable, emphasizing both the dividend enhancement and expanded buyback commitment. Jefferies analyst Mark Wilson labeled the report as a “small positive.”
TTEF shares advanced 1.1% to 79.16 euros during morning trading in Paris by 07:02 GMT, reaching the highest level observed in over two weeks.
Year-to-date, the stock has appreciated 42.33%.
UK-based competitor BP similarly announced robust Q1 figures on Tuesday, with net income more than doubling due to comparable war-related trading advantages.
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