TotalEnergies: Net Income Up by 29%, Dividend Raised to €0.90
In the first quarter of 2026, TotalEnergies reported an adjusted net income of $5.4 billion and a cash flow of $8.6 billion, up 29% and 23% respectively from the previous year. These results come amidst a deteriorating geopolitical context: the company reported production losses in the Middle East averaging about 100 kbep/d over the quarter, while halted production in Qatar, Iraq, and offshore in the United Arab Emirates accounts for about 15% of its total production to date. The performance is supported by a 4% year-on-year organic growth in production, which offsets the average impact of the Middle East conflict over the quarter, along with an integrated portfolio in oil, gas, and electricity.
Production Growth and Price Increases Support Results
The adjusted net operating income for the sectors reached $6.3 billion, up 31% year-on-year. The Exploration-Production sector generated $2.6 billion (a 5% annual increase), benefiting from the start-ups of the Lapa SW project in Brazil (25,000 b/d) and the Mabruk field in Libya (25,000 b/d) which offset production losses in the Middle East. The Integrated LNG sector achieved $1.3 billion with a 12% increase in LNG production. Downstream reported $1.9 billion, driven by refinery utilization over 90% and strong trading activities. Hydrocarbon production stood at 2,553 kbep/d, stable compared to the previous quarter but affected by the shutdown of capacities in Qatar, Iraq, and the United Arab Emirates.
Dividend Growth and Debt Ratio Under Control
The Board of Directors decided to increase the first interim dividend by 5.9%, raising it to €0.90 per share. This growth is described by TotalEnergies as the strongest among the major oil companies. The debt ratio stood at 15.5% at the end of the quarter, compared to 14.7% on December 31, 2025. The increase in working capital needs ($5.1 billion) was linked half to seasonality and half to the impact of rising hydrocarbon prices on inventories. Furthermore, the Board authorized the continuation of share buybacks up to $1.5 billion in the second quarter and confirmed a distribution target of over 40% of earnings.
Gas-Electricity Integration and Renewable Portfolio Expansion
The Integrated Power sector reported an adjusted net operating income of $545 million. The company announced the completion at the end of April 2026 of the acquisition of 50% of a flexible electricity production portfolio from EPH, covering the United Kingdom, Italy, the Netherlands, and France. This transaction accelerates the gas-electricity integration strategy in Europe and is described as a major step towards achieving a positive cash flow in 2027. TotalEnergies also continues to grow its renewable energy portfolio with 8 GW commissioned over the last twelve months. In the Middle East, the company signed a technical cooperation agreement with Kuwait Oil Company and an exploration agreement with TPAO in Turkey to develop new resources.
