TotalEnergies Q2 2026 Cash Flow Rises 14 Percent to $9.8 Billion Despite 210,000-Barrel Hormuz Production Gap

Results at a Glance

TotalEnergies reported second-quarter 2026 adjusted net income of $6.027 billion, up 12 percent from Q1 2026 and roughly 68 percent above the same quarter a year earlier.

Cash flow from operations reached $9.804 billion, a 14 percent increase quarter-on-quarter.

EBITDA for the quarter was $13.179 billion, and diluted earnings per share came in at $2.68.

Hormuz Conflict Removed 210,000 Barrels Per Day

Total production averaged 2,395 thousand barrels of oil equivalent per day in Q2 2026, a 6 percent decline from Q1 and 4 percent below the year-prior quarter.

Middle East hostilities cut output by an average of 210 kboe/d across the quarter, representing roughly 8 percent of total group production.

Stripping out the conflict impact, the broader portfolio delivered 4 percent organic growth year-on-year.

The Middle East and North Africa segment produced 671 kboe/d, down from 777 kboe/d in Q1 and 850 kboe/d in Q2 2025.

The Americas partially offset those losses, rising 5 percent quarter-on-quarter to 513 kboe/d as projects in Brazil and Mexico ramped up.

High Prices Absorbed a $1.75 Billion Upstream Revenue Shortfall

The Hormuz production gap cost TotalEnergies approximately $1.75 billion in upstream revenue during Q2 2026.

That estimate is derived by multiplying the 210 kboe/d shortfall by the Q2 average consolidated liquids realization of $91.6 per barrel, then scaling across 91 days.

Despite that headwind, Exploration and Production cash flow from operations reached $5,777 million, up 27 percent from Q1 2026.

The offset came from price: Q2 average Brent settled at $103.8 per barrel, up 28 percent from Q2 2025 levels, giving each barrel sold a substantially higher revenue contribution.

CEO Credits the Integrated Model

CEO Patrick Pouyanné attributed the result to the company’s diversification across segments and geographies.

Pouyanné said TotalEnergies leveraged its “integrated model and portfolio diversification” to post $6.0 billion in adjusted net income and $9.8 billion in cash flow, up almost 15 percent quarter-to-quarter.

LNG Segment Fell Back as Qatar Output Dropped

Integrated LNG adjusted net income fell 39 percent quarter-on-quarter to $807 million as hostilities constrained the company’s Qatar equity production.

TotalEnergies holds stakes in QatarEnergy LNG joint ventures that together represent roughly 20 percent of global LNG supply capacity.

Qatar equity LNG production declined 9 percent from Q1 to Q2 2026 due to regional disruptions.

ECA LNG in Mexico began commercial operations in early July 2026, opening a Pacific-coast export corridor targeting Asian buyers for the second half of the year.

UAE: New Gas Concession and a Major FID

TotalEnergies secured a 10 percent stake in the Bab Gas Cap concession in the United Arab Emirates during Q2 2026.

The company also reached a final investment decision on the Umm Shaif Gas Cap development, targeting more than 600 million cubic feet per day of gas output by 2030.

Both projects deepen TotalEnergies’ partnership with ADNOC and expand the company’s long-cycle gas portfolio outside Hormuz-affected zones.

Balance Sheet, Dividend, and Buyback

Gearing fell to 13.1 percent at June 30, 2026, compared with 17.9 percent a year earlier.

The board declared an interim dividend of 0.90 euros per share for Q2 2026, a 5.9 percent increase over the equivalent 2025 payout.

A $1.5 billion share buyback was authorized for Q3 2026, continuing the cadence set in prior quarters.

Full-year net capital expenditure guidance of $15 billion was confirmed without change.

Q3 Outlook and Today’s Market Conditions

TotalEnergies stated oil prices “navigate above $80/b at the start of the third quarter, in very volatile markets reacting to the evolution of the security situation in the Strait of Hormuz.”

Markets moved sharply lower on July 27, 2026, after a US-Iran ceasefire reduced the geopolitical premium built into crude prices.

WTI crude was at $82.77 per barrel in late-morning trade on July 27, 2026, down 7.32 percent, per OilPrice.com with a standard 11-minute exchange delay.

Brent fell to $89.15 per barrel, down 7.88 percent, as traders unwound the war-risk premium that had pushed prices above $100 per barrel in mid-July.

The company’s Q3 LNG price outlook calls for TTF and JKM settlements above $11.5 per million BTU.

Downstream Segments

Refining and Chemicals adjusted net income rose 13 percent quarter-on-quarter to $1.8 billion, supported by a European refining margin of $13.5 per barrel.

The SATORP refinery in Saudi Arabia ran at 70 percent capacity during Q2 2026.

Marketing and Services posted $500 million in adjusted net income, a 91 percent improvement from Q1 2026.