TotalEnergies Posts $9.1 Billion in Adjusted Profit, Beating Third-Quarter Expectations
Key Facts
TotalEnergies reported adjusted net income of $9.1 billion in the third quarter of 2026, up 127% year on year and above the average forecast of 12 analysts of $8.3 billion. The results covered July to September, a quarter that saw a sharp improvement in refining margins and gas prices. Adjusted diluted earnings per share rose to $4.03, up 51% from the second quarter. For the first nine months, adjusted earnings per share increased 78% compared with the same period in 2025. Chief Executive Patrick Pouyanné said the company operated in a high-price environment marked by historically high refining margins and a rising gas market.
Refining and chemicals were the main drivers of the improvement, with the segment reporting net income of $3.6 billion, more than five times its level a year earlier and double the previous quarter's result. The European refining margin indicator rose to $33.2 per barrel, compared with $13.5 in the second quarter and $8.4 in the third quarter of 2025. The company said refinery output increased by about 10% during the quarter, alongside wider margins. The shift is reflected in the segment's results compared with both the year-earlier and previous-quarter periods. Higher refining volumes also helped capitalize on elevated margin levels.
In gas, the liquefied natural gas unit's income rose to $1.9 billion, as average gas prices increased 20% from the previous quarter, supported by gas trading. The company's average realized LNG price was $12.28 per million British thermal units, up 20% quarter on quarter. Its average realized gas price also rose to $7 per million British thermal units, an increase of 26% from the second quarter. These prices boosted gas business income in a quarter when adjusted profit exceeded analysts' expectations. The company expects its average LNG selling price to exceed $14 per million British thermal units in the fourth quarter.
Oil and gas production was 2.474 million barrels of oil equivalent per day, an increase of more than 3% from the second quarter. The company said the reduced impact of the Middle East conflict helped production grow, and that the average volume affected during the quarter was limited to about 5% of its total output. Production therefore rose quarter on quarter despite the conflict's continuing impact on part of its operations, contrary to the initial draft's account of a crisis-related decline. The company expects production to grow by more than 3% year on year in the fourth quarter, excluding the impact of the conflict. This forecast puts the production outlook alongside the expected rise in LNG prices in the same quarter.
The results also fed through to cash flow and financial policy: cash flow was $12.3 billion, while gearing fell below 10% at the end of the quarter. The company reported net investments of $3.3 billion during the quarter and $11.2 billion in the first nine months of 2026, in line with its full-year guidance of $15 billion. It kept the interim dividend at €0.90 per share. It also announced share buybacks worth $2.5 billion in the fourth quarter of 2026 and the same amount in the first quarter of 2027. These measures combine a stable dividend with a buyback program announced through early next year.
TotalEnergies shares rose 0.9% to €84.5 at 0815 GMT on Oct. 29, according to Reuters, but underperformed the European energy sector, which gained 1.2%. EL7 data had shown the shares closing at $92.88 on Oct. 28, with no documented details on the session's high or low. In the fourth quarter, the company expects refinery utilization to remain close to the third-quarter level. It said the return of Saudi Arabia's SATORP plant to normal operations would support volumes, despite a 20-day maintenance turnaround at its Normandy refinery. The company expects its average LNG selling price to exceed $14 per million British thermal units during the quarter.