TotalEnergies Posts $6 Billion Q2 Adjusted Profit as Oil Surge Drives Earnings Rebound
The French major's Q2 earnings rose 68% year-on-year on crude price gains, but Strait of Hormuz access limits and falling gas output complicate the Q3 outlook.
Repsol SA reported EUR 1.84 billion in adjusted net income for the second quarter on Wednesday (2026-07-22), up 207% year-on-year, as higher crude prices and a rebound in Spanish refining reversed most of the damage sustained during the Iberian Peninsula blackout of 2025. Reported net income reached EUR 1.27 billion ($1.45 billion), up 437% from Q2 2025.5
The base effect explains most of that gain. Repsol's Industrial segment posted EUR 1,243 million in adjusted net income, EUR 1,140 million more than a year earlier, driven by higher refining margins and stronger results from Repsol Peru. Upstream contributed EUR 371 million, only EUR 59 million above Q2 2025; higher oil realization prices accounted for most of the gain, not production growth. Liquids output fell 20.3% year-on-year to 122,000 barrels per day and gas dropped 8.7% to 1.19 billion cubic feet a day. Repsol simultaneously launched a EUR 500 million buyback, replacing a EUR 350 million program it had recently completed.5
TotalEnergies reported on Thursday (2026-07-23), posting adjusted net income of $6.03 billion, or $2.68 per diluted share, for the April-June quarter. The figure met analyst expectations, was 12% above the first quarter, and came in 68% higher than the $3.578 billion earned in Q2 2025.3,4
Adjusted EBITDA rose 5% quarter-on-quarter to $13.18 billion, and adjusted net operating profit climbed 9% to $6.87 billion. Every segment improved except Integrated LNG and Integrated Power. Exploration and Production carried the quarter: adjusted net operating income of $3.2 billion and cash flow of $5.8 billion, both up more than 25% over the first quarter, driven by higher oil prices. TotalEnergies noted that difficulties accessing the Strait of Hormuz constrained its lifting volumes in the period — a ceiling on what the E&P division might otherwise have generated.4
Production declined across both major commodities. Oil output, including bitumen, fell 2% quarter-on-quarter to 1.3 million barrels per day. Gas slid 11% to 1.1 million barrels of oil equivalent a day. The Integrated Power segment generated 48 TWh of net electricity and posted cash flow from operations excluding working capital of $2.6 billion, matching the company's announced target, at a return on average capital employed of 10%.4,2
Asian LNG front-month benchmark JKM held flat at $21.82 per MMBtu on Friday (2026-07-24). The absence of a spot rally in Asia helps explain why TotalEnergies' Integrated LNG segment was one of only two divisions that failed to improve quarterly operating profit, even as higher crude lifted earnings elsewhere in the group.4
India's energy demand outlook adds an unresolved variable for Asian-facing businesses. GDP grew 8.2% in the year to the third quarter of 2025, with inflation falling to 1.3%, pointing to sustained consumption growth. Washington imposed a 50% tariff on Indian imports, combining a reciprocal levy with a further 25% targeting India's purchases of discounted Russian crude oil, introducing a headwind for Indian trade activity at a time when fuel demand has been rising.1
TotalEnergies declared a Q2 dividend of EUR 0.9 ($1.03) per share, up 5.9% from the year-earlier quarter, and a new buyback program of up to $1.5 billion for the third quarter.4
ICE Brent crude front-month fell to $98.83 per barrel on Friday (2026-07-24), down 1.47% on the session, as crude gave back ground heading into Q3. Both Repsol and TotalEnergies built some of their strongest recent earnings on a price surge that is now softening. For TotalEnergies, Hormuz access difficulties compound that price risk: if restrictions on vessel passage persist while crude prices slide, the E&P division that generated $5.8 billion in cash flow in Q2 faces simultaneous pressure on both realized price and production volume.4