TotalEnergies lifts Q1 profit, payouts

TotalEnergies (TTEp) reported a sharp rise in profitability for the first quarter of 2026, with net profit reaching $5.8 billion. This represented a 51% increase compared with the same period a year earlier as the company benefited from higher oil prices linked to the war in the Middle East.

Verified figures also showed that net profit for the quarter doubled compared with the previous quarter to $5.81 billion, beating expectations of $5.21 billion. The strength in earnings was supported by favorable market conditions and the company’s trading performance.

Adjusted net income for Q1 2026 came in at $5.4 billion, a 29% rise year-on-year. This result exceeded analysts’ expectations of $5 billion, underscoring the company’s ability to convert higher commodity prices into stronger underlying earnings.

Operationally, TotalEnergies recorded a 4% increase in oil and gas production during the quarter. Liquefied natural gas transported by sea rose by 12%, highlighting the company’s growing LNG activity even as it faced production losses from regional disruptions tied to the Middle East conflict.

Despite these disruptions, the company maintained operational efficiency, with the rise in production and LNG shipments contributing to the overall improvement in financial performance.

Alongside its earnings release, TotalEnergies announced a 5.9% increase in its dividend to €0.90 per share. The higher payout reflects the company’s decision to pass on part of the profit boost from elevated energy prices to shareholders.

The group also plans to resume share repurchases in the second quarter of 2026, targeting up to $1.5 billion in buybacks. These repurchases are supported by the increase in earnings generated in the context of the Middle East conflict and higher oil prices.

Combined, the dividend hike and planned buybacks indicate a stepped-up distribution policy, with TotalEnergies using its strengthened balance sheet to enhance shareholder returns.

The company’s results were heavily influenced by the war in the Middle East, which has driven a surge in oil prices. Higher prices boosted revenue and supported both reported net profit and adjusted net income.

At the same time, the conflict contributed to regional production losses, but TotalEnergies still managed to grow overall output and LNG shipments. This combination of higher prices and resilient operations underpins the sharp improvement in quarterly earnings and the company’s expanded shareholder distribution plans.