TotalEnergies Raises Q1 Dividend as LNG Trading Rides Volatility

TotalEnergies SE on Wednesday reported $5.4 billion in net profit adjusted for nonrecurring items for the first quarter (Q1), up 41 percent from the prior three-month period and 29 percent against Q1 2025 as liquefied natural gas (LNG) sales volumes increased amid oil volatility.

The earnings surge prompted the French energy giant to raise its dividend for Q1 2026 to EUR 0.9 ($1.05) per share. That is up 5.9 percent against its previous rate.

As income was largely driven by volatility brought about by the war in the Middle East, TotalEnergies refrained from increasing dividends on an annual basis.

However, the board authorized the continuation of share repurchases up to $1.5 billion in Q2 and confirmed a target of a payout ratio of more than 40 percent over the year.

TotalEnergies' integrated model in oil, gas and power is "demonstrating its ability to fully capture the environment upside", the company said.

Adjusted earnings per diluted share stood at $2.45, compared to $1.73 for Q4 2025 and $1.83 for Q1 2025.

Production averaged 2.55 million barrels of oil equivalent per day (MMboepd) in the January-March 2026 quarter, stable quarter-on-quarter and year-on-year despite war-related shutdowns in Iraq, Qatar and the United Arab Emirates. Impacted assets accounted for 15 percent of TotalEnergies' production, according to the company.

Q1 2026 output consisted of 1.48 MMbpd of liquids, down 5 percent sequentially and 2 percent by prior-year comparison. Gas averaged 5.8 billion cubic feet a day, up 8 percent quarter-on-quarter and 3 percent year-on-year.

The impact of Middle East disruptions was offset by project start-ups and ramp-ups in Angola, Brazil, Denmark, Libya and the United States.

Realized liquid prices climbed 20 percent quarter-on-quarter and 2 percent year-on-year. Realized gas prices increased 10 percent quarter-on-quarter but fell 15 percent year-on-year. Realized LNG prices were stable quarter-on-quarter but dropped 15 percent year-on-year.

Adjusted net operating profit for the "exploration and production" segment saw increases of 43 percent quarter-on-quarter and 5 percent year-on-year to $2.58 billion. The growth reflects "the sensitivity to the increase of the average liquids price (+$12.4/b over the quarter, including the price lag effect in the United Arab Emirates) and the accretive contribution of the new projects", TotalEnergies said.

"Exploration & Production cash flow from operations excluding working capital (CFFO) amounted to $4,564 million, up 26 percent quarter-to-quarter, for the same reasons".

Adjusted net operating profit from the "integrated LNG" segment posted increases of 43 percent quarter-on-quarter and 2 percent year-on-year to $1.32 billion. CFFO rose 54 percent quarter-on-quarter and 43 percent year-on-year to $1.16 billion.

The improvements were "underpinned by the LNG production increase and strong trading activities benefiting from market volatility", TotalEnergies said.

LNG sales increased 16 percent year-on-year and 1 percent quarter-on-quarter to 12.4 million metric tons.

Refining and chemicals generated $1.6 billion in adjusted net operating profit, up 60 percent quarter-on-quarter and 5.3 times more than Q1 2025. CFFO increased 25 percent quarter-on-quarter and 2.7 times year-on-year to $1.172 billion.

The quarter-on-quarter increase was "driven by a strong operational performance of refineries which captured high refining margins in March, and crude oil and petroleum products trading activities which benefited from a favorable environment in March", TotalEnergies said.

"Marketing and services" registered $262 million in adjusted net operating profit, down 23 percent quarter-on-quarter but up 9 percent year-on-year. The year-on-year increase was due to higher unit margins. That offset lower sales volumes of petroleum products, which totaled 1.21 MMbpd, due to divestments in Brazil and the African Sahel. CFFO fell 29 percent quarter-on-quarter and 13 percent year-on-year to $420 million.

In the "integrated power" segment, adjusted net operating profit declined three percent quarter-on-quarter but rose 8 percent year-on-year to $545 million. CFFO fell 27 percent quarter-on-quarter and 4 percent year-on-year to $788 million.

"Net electricity production is increasing year-on-year to 11.7 TWh [terawatt hours], with the growth of power generation from renewables of 20 percent offsetting the lower utilization of gas flexible capacities, in the context of lower winter demand in Europe and the United States", TotalEnergies said.

TotalEnergies exited Q1 2026 with $25.69 billion in cash and cash equivalents, while current assets totaled $112.21 billion.

Current liabilities stood at $104.24 billion including $12.58 billion in current borrowings. Net debt rose to $23.05 billion. Gearing, the ratio of net debt and the total of net debt plus equity, stood at 15.5 percent, up from 14.7 percent at the end of 2025.

TotalEnergies expects the war-induced elevated oil price environment to continue into Q2. "Furthermore, the impact of this conflict on global hydrocarbon inventories is leading to the drop of the 2026 surplus scenario that was anticipated at the beginning of the year", it said.

"The Company is evaluating options to accelerate short-cycle investments to capture current hydrocarbon price environment", TotalEnergies added.

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