TotalEnergies reported a 29% increase in first-quarter (Q1) adjusted net income on April 29, reaching $5.4 billion and exceeding the $5 billion anticipated by analysts, according to Reuters. The French energy major bolstered its performance through high global oil prices and robust trading operations linked to the ongoing conflict in Iran.
Following the results, TotalEnergies recorded a 5.9% increase in its quarterly cash dividend and announced it would double its share buybacks to $1.5 billion for the second quarter (Q2). The company’s share value rose 1.1% to €79.16 in early trading, marking its highest level in more than two weeks and contributing to a 42.33% year-to-date gain.
The earnings growth was recorded despite unprecedented market disruptions that forced the company to shut in 15% of its upstream output. This was achieved by quintupling earnings in the refining and chemicals segment, which totaled $1.6 billion for Q1. Additionally, the liquefied natural gas (LNG) segment, including natural gas and LNG trading, reported a 2% increase to $1.3 billion, overcoming the impact of Iranian strikes on supply facilities in Qatar.
The company’s internal business segments reported significant performance milestones, led by the upstream exploration and production division, where earnings yielded a 5% year-on-year (YoY) increase to reach $2.58 billion. This growth was bolstered by the integrated power segment, comprising natural gas, fired power plants, renewables, and batteries, which recorded an 8% rise in income to $545 million.
Additionally, the marketing and services segment reported a 9% surge in earnings, totaling $262 million, further rationalizing the company’s diversified revenue streams during the fiscal period.
“The results are positive,” noted Royal Bank of Canada (RBC) analyst Biraj Borkhataria, highlighting the strategic decision to hike the dividend and accelerate buybacks despite the volatile security environment.
The record performance underscores a period of windfall profits for oil majors as the regional conflict continues to rationalize higher energy costs. Historically, TotalEnergies has maintained a diversified portfolio across the Middle East, a region that remains central to its long-term exploration and production strategy under its current transformation roadmap.
