TotalEnergies raised its quarterly dividend by 5.9% to €0.90 per share and doubled its share buybacks to $1.5 billion for the second quarter. This move followed a substantial 29% year-on-year increase in adjusted net income, reaching $5.4 billion in the first quarter, exceeding analyst expectations. The company attributed this performance to soaring oil and gas prices, strong trading results, and new project ramp-ups, despite disruptions from the Iran war that forced Total to shut in 15% of its upstream output. This decision has, however, ignited criticism from French politicians, particularly the Socialist Party, who are pushing for a supertax on these windfall profits to aid consumers grappling with higher prices.
The company's various segments saw significant gains, with the refining and chemicals segment quintupling its earnings to $1.6 billion. The upstream exploration and production earnings rose 5% to $2.58 billion, while the integrated power segment, including renewables and gas-fired plants, increased 8% to $545 million. The marketing and services segment's earnings went up by 9% to $262 million. Even the liquefied natural gas segment saw a 2% rise to $1.3 billion, despite damage to facilities in Qatar. TotalEnergies' stock has gained over 40% year-to-date, reflecting investor confidence in its financial performance.
Analysts are divided on the implications for other major oil companies. While some expect peers like Chevron and Eni to follow suit with increased shareholder returns, others, including HSBC analysts, believe companies like Shell, ExxonMobil, and even BP might prioritize debt reduction and capital discipline amidst market uncertainty. TotalEnergies itself had slowed share purchases and implemented cost-saving measures in late 2025, anticipating lower oil prices, making this a significant turnaround driven by the current high-price environment. Its market capitalization was between $194 billion and $211 billion in late April 2026, with a trailing twelve-month P/E ratio of about 15.50, which some analysts consider "Significantly Overvalued."
