TotalEnergies (TTEF) Shares Surge as Q1 Earnings Soar 29% Above Forecasts

Key Highlights

• Q1 adjusted earnings reached $5.4 billion for TotalEnergies, representing a 29% year-over-year increase and surpassing the $5 billion Wall Street estimate
• Quarterly dividend increased 5.9% to €0.90 per share
• Share repurchase program doubled to $1.5 billion for the second quarter from the previous $750 million announced in February
• Refining and chemicals division saw earnings multiply more than five times to reach $1.6 billion
• Shares gained 1.1% to 79.16 euros during morning trading in Paris, with year-to-date performance showing a 42.33% increase

The French energy powerhouse delivered impressive first-quarter results on Wednesday, surpassing Wall Street forecasts across virtually all business divisions. TotalEnergies recorded adjusted earnings of $5.4 billion, marking a 29% surge from the $4.2 billion reported during the corresponding quarter last year.

Wall Street analysts had projected approximately $5 billion in earnings, based on LSEG consensus figures. The impressive performance came even as regional tensions forced the company to temporarily halt roughly 15% of its upstream operations.

TotalEnergies SE, TTE

What fueled the outperformance? Elevated oil prices combined with robust trading operations linked to Middle Eastern geopolitical tensions.

Brent crude approached multi-year peaks near $120 per barrel following U.S.-Israeli military operations against Iran that commenced in late February. Iran’s retaliatory closure of the Strait of Hormuz and subsequent attacks on neighboring Gulf states — including a Saudi Arabian refinery partially owned by TotalEnergies — triggered significant energy market volatility.

While this turmoil hampered production volumes, it generated substantial profits for the company’s trading desks.

Refining and Chemicals Division Shines Brightest

The refining and chemicals business unit emerged as the quarterly champion. This segment saw earnings explode to $1.6 billion, up more than fivefold, primarily propelled by exceptional trading performance in oil and petroleum products.

The upstream exploration and production division recorded a 5% earnings increase to $2.58 billion. The liquefied natural gas business unit saw a modest 2% uptick to $1.3 billion, despite damage to Qatari LNG infrastructure from Iranian strikes that directly impacts TotalEnergies’ supply chains.

The marketing and services division posted 9% earnings growth to $262 million. Meanwhile, the integrated power segment — encompassing gas-fired generation, renewable energy, and battery storage — increased 8% to $545 million.

Notably, every significant business division delivered positive growth despite widespread disruption across global energy markets.

Enhanced Capital Return Strategy

TotalEnergies leveraged the earnings release to announce a more substantial cash distribution to investors. The quarterly dividend received a 5.9% boost to €0.90 per share.

The share buyback program was doubled to $1.5 billion for the upcoming quarter. This marks a dramatic pivot from February’s announcement, when TotalEnergies reduced buybacks to $750 million amid concerns about declining oil prices affecting future performance.

RBC Capital Markets analyst Biraj Borkhataria characterized the results as encouraging, emphasizing both the dividend enhancement and the expanded buyback initiative. Jefferies analyst Mark Wilson categorized the quarterly report as a “small positive” development.

TTEF shares advanced 1.1% to 79.16 euros during early Paris trading sessions by 07:02 GMT, reaching the highest intraday level observed in over two weeks.

Year-to-date, the stock has appreciated 42.33%.

British competitor BP similarly announced robust Q1 performance on Tuesday, with net earnings more than doubling thanks to identical war-driven trading advantages.

The post TotalEnergies (TTEF) Shares Surge as Q1 Earnings Soar 29% Above Forecasts appeared first on Blockonomi.