TotalEnergies profits jump as Middle East war lifts oil prices
Source · Energy desk
— Summary
TotalEnergies reported first-quarter 2026 net profit of $5.8bn, up 51% year on year, and cash flow of $8.6bn (+23%). The numbers approach the records set in the early months of the Ukraine war, this time driven by surging oil and refined-product prices following the outbreak of the Middle East war.
Oil and gas output held at 2.6 million barrels per day: oil production fell 2%, gas rose 2%. New projects in Lapa SW (Brazil) and Mabrul (Libya) offset losses of around 100,000 barrels per day in the Middle East tied to the closure of the Strait of Hormuz. The LNG (liquefied natural gas) division delivered $1.3bn in net operating income, with output up 12%. Downstream refining and marketing brought in $1.9bn, with refineries running at more than 90% of capacity to capture March’s exceptional margins.
The group has closed its €5bn deal with EPH — paid entirely in shares — making Daniel Kretinsky one of TotalEnergies’ largest shareholders. Power generation remains a small contributor ($500mn net operating income), but TotalEnergies expects to add another 8 GW of renewables over the next twelve months. Source: Les Echos, 29 April 2026, Hortense Goulard.
Key numbers
Metric (Q1 2026)
Value
Variation
Net profit
$5.8bn
+51%
Operating cash flow
$8.6bn
+23%
Production (oil + gas)
2.6 mbd
flat
LNG net operating income
$1.3bn
output +12%
EPH transaction (closed)
€5bn (all-stock)
—
Why it matters
Two engines drove the quarter: upstream production (held at 2.6 mbd despite the loss of ~100,000 b/d in the Middle East thanks to Lapa SW in Brazil and Mabrul in Libya), and downstream margins as European refiners captured exceptional crack spreads with Middle Eastern imports disrupted. LNG trading made $1bn in early-conflict cargo trades, the FT reported last month.
The strategic news is the EPH transaction: €5bn of European gas-power and battery assets bolted on, paid entirely in shares, making Daniel Kretinsky one of TotalEnergies’ largest shareholders. TotalEnergies has also pulled out of US offshore wind (Trump-administration alignment) but keeps growing its renewables portfolio elsewhere, targeting +8 GW over the next year.
Takeaway
Cash machine. With $8.6bn quarterly cash flow, TotalEnergies can absorb large all-stock deals (EPH) and keep returning capital to shareholders. Watch the Kretinsky alignment for governance and downstream-electricity strategy implications.
— Delfineo's Take
The quarter confirms the Delfineo thesis on European oil majors: the Middle East war generates exceptional cash flow without requiring exposure to the conflict zone. With $8.6bn of quarterly cash, TotalEnergies can absorb the EPH transaction (€5bn, 100% in stock) while continuing to buy back shares. The real pivot is the alignment with Kretinsky, which adds a European reference shareholder — worth watching for governance and power-strategy implications.