French oil major TotalEnergies reported a 67% surge in second-quarter adjusted net income on Thursday, delivering its strongest quarterly performance in nearly three years, driven by elevated crude oil prices and exceptional refining margins stemming from the ongoing war in Iran. Adjusted net income reached $6 billion for the April-to-June 2026 quarter, in line with analyst expectations according to a consensus compiled by LSEG. The result compares with $3.6 billion recorded in the second quarter of 2025 and $5.4 billion in the first quarter of 2026.
The U.S.-Israeli war on Iran, which effectively led to the closure of the Strait of Hormuz, severely disrupted global oil and gas supply chains and pushed commodity prices to multi-year highs. Global benchmark Brent crude averaged approximately $97 per barrel during the quarter, a 45% increase from $67 per barrel recorded in the same period a year earlier. TotalEnergies' exploration and production segment posted earnings of $3.2 billion, a 64% year-on-year increase and 25% above the first quarter of 2026, as production volumes in the Middle East gradually return to normal.
The refining and chemicals division delivered the most dramatic turnaround, with income soaring 362% to $1.8 billion. The company continued to trade profitably on rising oil and fuel prices caused by supply shortages linked to the paralysed Strait of Hormuz. The sole segment to underperform was the liquefied natural gas division, which posted earnings of $807 million, a 22% decline.
TotalEnergies attributed the drop to weak LNG demand in Europe, a dynamic flagged in last week's trading statement released on July 16. Despite the mixed performance across divisions, TotalEnergies announced it would maintain its share buyback programme at $1.5 billion for the third quarter, the same level as in the second quarter, signalling management's confidence in the company's financial position. The results underscore the windfall effect that geopolitical conflict in the Middle East has delivered to major integrated energy companies, with higher upstream realisations and wider refining margins more than compensating for softer LNG revenues.
Source: Reuters, reporting by America Hernandez in Paris, editing by Dominique Patton, July 23, 2026.
Source: reuters.com