TotalEnergies Maintains Increased Dividend Rate
by Jov Onsat | Rigzone Staff
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*this article was not written by Roseland Oil & Gas
TotalEnergies SE on Thursday announced a dividend of EUR 0.9 ($1.03) per share for the second quarter (Q2), up 5.9 percent from the same three-month period last year, and a new share buyback program of up to $1.5 billion for the third quarter, as higher oil prices continue to lift earnings.
The French energy giant had increased its Q1 dividend by the same rate year-on-year, which it said was the highest dividend growth among oil and gas majors. The new repurchase program for Q3 also continues the $1.5-billion program for Q2.
However, TotalEnergies’ 33 percent payout ratio for the first half of 2026 was lower than the 54 percent for the first six months of 2025. It had said in its Q1 2026 report it was aiming for a payout ratio of over 40 percent for the whole year, below last year’s 55 percent. It defines payout ratio as the ratio of dividends plus share redemptions to cash flow from operations (CFFO) excluding working capital.
For the April-June 2026 quarter, TotalEnergies registered $6.03 billion, or $2.68 per diluted share, in net profit adjusted for nonrecurring items, up 12 percent quarter-on-quarter. Net income before adjustment was $5.44 billion, down six percent from the prior quarter.
TotalEnergies announced a dividend of EUR 0.9 per share for the second quarter, up 5.9 percent from the same three-month period last year, and a new share buyback program of up to $1.5 billion for Q3, as higher oil prices continue to lift earnings.
The adjusted figure rose “mainly due to higher oil prices and refining and petrochemical margins as well as significant performance of crude oil and petroleum products trading activities”, TotalEnergies said. Production losses resulting from the United States-Israel war with Iran were partly offset by organic production growth elsewhere.
TotalEnergies’ realized liquids prices in Q2 averaged $91.6 per barrel, up 24 percent quarter-over-quarter. Its average liquefied natural gas price also rose 20 percent to $10.2 per million British thermal units (MMBtu), while its average gas price slid one percent to $5.55 per MMBtu.
TotalEnergies’ Q2 output of oil including bitumen dropped two percent quarter-on-quarter to 1.3 million barrels per day. Gas production, including condensates and associated natural gas liquids, declined 11 percent to 1.1 million barrels of oil equivalent a day.
TotalEnergies reported a year-on-year organic growth of over four percent in production, “notably from the ramp-up of projects started last year (Mero 4 and Lapa SW in Brazil, Ballymore in the U.S. and Mabruk in Libya) which partly compensated for the impact of production losses in the Middle East to an average 210 kboe/d [thousand barrels of oil equivalent a day] over the quarter”.
Adjusted EBITDA increased five percent quarter-on-quarter to $13.18 billion. Adjusted net operating profit increased nine percent to $6.87 billion, with all segments posting increases except Integrated LNG and Integrated Power.
“Despite a lower lifting level because of difficulties to access the Strait of Hormuz, Exploration & Production posted adjusted net operating income of $3.2 billion and cash flow of $5.8 billion, up by more than 25 percent over the quarter, capturing the increase in the average selling price of liquids (+$17.9/b compared to the first quarter 2026)”, TotalEnergies said. “The Company also kept its Upstream operating costs at $5/b.
“The Integrated LNG segment achieved adjusted net operating income and cash flow of $0.8 billion in the second quarter of 2026, decreasing significantly due to the underperformance of gas trading in a broadly flat to declining market in Europe, whereas it had outperformed in the first quarter”, TotalEnergies explained.
“Integrated Power generated adjusted cash flow of $700 million, up strongly, by 25 percent, supported by the contribution, in line with expectations, of EPH assets since early May, net operating income is stable quarter-to-quarter”, it said.
“Downstream posted cash flow of $2.9 billion, up sharply by 35 percent and adjusted net operating income of $2.3 billion, up 24 percent in the quarter, driven by the ability of the Refining & Chemicals segment to fully capture the increase in refining and petrochemical margins and the strong performance of crude oil and petroleum products trading activities, at the same level as in the first quarter of 2026. Downstream results also benefited from the outstanding results and cash flow of Marketing & Services activities”.
Cash flow from operations totaled $10.86 billion, 3.2 times higher than Q1 2026. CFFO excluding working capital increased 14 percent quarter-on-quarter to $9.8 billion.
TotalEnergies improved its gearing ratio by 2.4 percentage points to 13.1 percent, benefiting from a net debt reduction of $3.3 billion.
by Jov Onsat | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas