Key Highlights
- French energy company TotalEnergies delivered Q1 adjusted net profit of $5.4 billion, marking a 29% increase from last year and exceeding the $5 billion Wall Street forecast
- Quarterly dividend increased 5.9% to €0.90 per share
- Company doubled its share repurchase program to $1.5 billion for Q2, a significant increase from the $750 million announced in February
- The refining and chemicals division saw earnings surge more than fivefold to reach $1.6 billion
- Shares of TTEF gained 1.1% to 79.16 euros during morning trading in Paris, with year-to-date gains of 42.33%
The French energy powerhouse TotalEnergies delivered impressive first quarter results on Wednesday, exceeding Wall Street projections across virtually all business divisions. The company reported adjusted net profit of $5.4 billion, representing a 29% surge compared to the $4.2 billion recorded in the corresponding quarter of the previous year.
Wall Street analysts had anticipated approximately $5 billion, based on LSEG consensus estimates. The company outperformed these expectations even as regional conflicts forced the closure of roughly 15% of its upstream production capacity.
What fueled the outperformance? Elevated oil prices combined with robust trading performance connected to the escalating Middle East crisis.
Brent crude surged toward multi-year peaks approaching $120 per barrel following the commencement of U.S.-Israeli military operations against Iran in late February. Iran’s retaliatory closure of the Strait of Hormuz, coupled with strikes targeting neighboring Gulf states — including a Saudi Arabian refinery in which TotalEnergies holds an ownership stake — triggered severe energy market volatility.
While this turbulence disrupted production volumes, it generated substantial profits for the company’s trading operations.
Refining and Chemicals Division Delivers Exceptional Performance
The refining and chemicals business unit emerged as the quarter’s top performer. Earnings in this segment skyrocketed more than fivefold to $1.6 billion, primarily powered by robust trading in oil and petroleum products.
The upstream exploration and production division saw earnings climb 5% to reach $2.58 billion. The liquefied natural gas business unit increased 2% to $1.3 billion, despite Iranian military strikes causing damage to LNG infrastructure in Qatar that supplies TotalEnergies.
The marketing and services division grew earnings by 9% to $262 million. The integrated power business — encompassing gas-fired power generation, renewable energy, and battery storage — advanced 8% to $545 million.
All primary business segments delivered growth despite widespread disruption throughout global energy markets.
Enhanced Capital Returns to Shareholders
TotalEnergies leveraged the earnings release to announce a more assertive capital return strategy for shareholders. The company increased its quarterly dividend by 5.9% to €0.90 per share.
The share buyback program was doubled to $1.5 billion for the upcoming second quarter. This represents a significant shift from February, when TotalEnergies reduced its buyback commitment to $750 million amid concerns over declining oil prices at that time.
RBC Capital Markets analyst Biraj Borkhataria characterized the results as favorable, emphasizing both the dividend enhancement and the expanded buyback initiative. Jefferies analyst Mark Wilson termed the quarterly report a “small positive.”
TTEF shares advanced 1.1% to 79.16 euros during early morning trading in Paris by 07:02 GMT, reaching their highest valuation in over two weeks.
Year-to-date, the stock has appreciated 42.33%.
UK-based competitor BP similarly announced strong first quarter results on Tuesday, with net earnings more than doubling thanks to the same war-driven trading advantages.
