TotalEnergies SE reported adjusted net income of $6 billion for the second quarter of 2026, up 68 percent from $3.578 billion in the year-earlier quarter and up 12 percent from Q1 2026.
The earnings surge was driven by three measurable factors: crude oil price appreciation, refining margin expansion, and trading gains. The company's average oil selling price climbed $17.90 per barrel versus Q1 2026. The European Refining Margin Marker reached $12.4 per barrel in Q2, up 19 percent quarter-to-quarter and nearly threefold compared to $4.3 per barrel in the first half of 2025.
The Exploration Production segment posted adjusted net operating income of $3.2 billion and generated $5.8 billion in cash flow—both up more than 25 percent—despite lower crude oil production due to restricted access to the Strait of Hormuz. CEO Patrick Pouyanné said the company experienced "a lower lifting level" because of difficulties accessing the strait, yet the segment still captured gains from higher liquid prices.
Strong cash generation in the first half of 2026 supported a dividend increase. TotalEnergies raised its second interim dividend to 0.90 per share for fiscal 2026, a 5.9 percent increase from 2025. The board also authorized $1.5 billion in share buybacks during the third quarter.
TotalEnergies' results track sector trends. Equinor reported a 93 percent surge in second-quarter profit year-over-year. Both gains coincide with oil prices above $100 per barrel tied to Middle East supply disruptions.
Middle East oil exports have rebounded to 12.8 million barrels per day. Chinese tankers continue routing through the Bab el-Mandeb despite Houthi blockade threats, while Saudi Arabia has cut crude supplies to Europe starting in October, reshaping shipping routes and global supply flows.
