TotalEnergies SE (NYSE:TTE) reported second-quarter earnings on Wednesday, revealing adjusted earnings per share of $2.68, which fell short of the $2.71 consensus estimate. Revenue for the quarter was $61.77 billion, below expectations of $69.15 billion. However, adjusted net income rose to $6.0 billion, up from $3.6 billion in the same quarter last year, according to the company.
Key Details
The company’s oil and gas production reached 2.395 million barrels of oil equivalent per day (Mboe/d), driven by new project ramp-ups in Brazil, the U.S., and Libya. This increase helped offset production disruptions in the Middle East. TotalEnergies reported cash flow from operations, excluding working capital changes, at $9.8 billion for the quarter.
TotalEnergies' refining margins reached historically high levels, supported by reduced Russian refining capacity and ongoing tensions in the Middle East affecting supply. The company expects European gas prices to remain elevated, forecasted between $16 and $20 per million British thermal units (Mbtu), due to low inventories and winter restocking needs. TotalEnergies anticipates average LNG selling prices to exceed $11.5/Mbtu in the third quarter of 2026.
Background
The Board approved a second interim dividend of 90 cents euros per share, a 5.9% increase year over year, and authorized up to $1.5 billion in share buybacks for the third quarter. Refinery utilization is projected at 80% to 85%, with operations at SATORP expected to return to full capacity by the end of the quarter. The company reaffirmed its 2026 investment plan of $15 billion.
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TotalEnergies' outlook for elevated LNG prices and refining margins could influence energy sector stocks and commodities, particularly natural gas and oil prices. The anticipated high European gas prices may impact energy-related investments and consumer costs in the region. Investors will watch for further developments regarding Middle East supply disruptions and their effects on global energy markets.