TotalEnergies Q3 profit doubles as refining margin averages $33.2/bbl

By Priya Raman

TotalEnergies reported $8.3 billion in third-quarter 2026 net income, up 124% from $3.7 billion a year earlier, according to the French integrated energy major’s results.

Nine-month net income reached $19.5 billion, a 91% increase from $10.2 billion.

Adjusted net income, which excludes inventory effects, non-recurring charges and fair-value movements, reached $9.1 billion, up 128% from $4.0 billion.

Nine-month adjusted net income rose 75% to $20.5 billion.

Adjusted fully diluted earnings per share (EPS) more than doubled to $4.03 from $1.77.

For the nine months, EPS increased 78% to $9.19.

Cash flow from operations, excluding working capital, reached $12.3 billion, 74% above $7.1 billion.

Nine-month operating cash flow rose 48% to $30.6 billion, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached $17.8 billion in the quarter, up 73%.

Takeaway: Earnings growth was broad, but refining and stronger gas prices supplied the clearest operating gains.

How did refining perform?

Refining & Chemicals delivered adjusted net operating income of $3.6 billion, compared with $687 million a year ago.

The European Refining Margin Marker, the company’s refining benchmark, averaged $33.2 per barrel, nearly four times $8.4 in Q3 2025.

Refinery throughput rose to 1.555 million barrels per day (bpd), with utilization at 88%.

All European and US refineries ran at full capacity, while Saudi Arabia’s SATORP refinery progressively returned to normal output.

CEO Patrick Pouyanné said: “In a high-price environment characterised by historic refining margin levels and a bull gas market, TotalEnergies is once again fully leveraging its integrated business model and its geographic diversification.”

The margin supports the quarter, but it does not establish a durable run rate. TotalEnergies gave no fourth-quarter refining-margin forecast.

Takeaway: Refining supplied the largest segment result, but the record benchmark makes repetition uncertain.

Did upstream production grow?

Exploration & Production adjusted net operating income rose 46% to $3.2 billion from $2.2 billion.

Hydrocarbon production averaged 2,474 thousand barrels of oil equivalent per day (kboepd), slightly below 2,508 kboepd a year earlier.

A five-percentage-point Middle East conflict drag caused the reported decline.

Management said production grew more than 4% without that impact, supported by ramp-ups at Mero-4 and Lapa SW in Brazil, Anchor and Ballymore in the US, and Begonia and Clov Phase 3 in Angola.

Operating costs stayed at $4.7 per barrel of oil equivalent (boe), below $5/boe.

Takeaway: Reported output slipped, and management’s growth case depends on its conflict adjustment.

What did LNG contribute?

Integrated liquefied natural gas (LNG) adjusted net operating income reached $1.9 billion, more than doubling from $852 million.

The average LNG selling price rose 38% to $12.28 per million British thermal units (Mbtu).

The TTF European gas benchmark averaged $21.5/Mbtu, up from $11.3/Mbtu a year earlier.

The segment result shows the gas-price exposure, although the release gives no standalone volume bridge.

Takeaway: LNG strengthened earnings, while benchmark prices remain the key swing factor.

Which projects moved into execution?

TotalEnergies took final investment decisions (FIDs) during the quarter on four upstream projects:

• Cronos gas field in Cyprus.
• Ima gas field in Nigeria.
• Umm Shaif Gas Cap in the United Arab Emirates.
• Absheron Phase 2 in Azerbaijan.

Each sanction moves the project into execution, although the release gives no project-level capacity, cost or start-up schedule.

The company said every project needed for its target of more than 3% annual production growth through 2030 now sits in execution.

Exploration activity remained separate from that sanctioned set. TotalEnergies completed entry into Namibia’s PEL83 license, which contains the Mopane discovery, and participated in three new discoveries in Norway and Angola.

No development sanction or project economics were disclosed for those exploration assets.

Takeaway: Four developments received approval; Mopane and the three discoveries remain at the exploration stage.

What did the company spend and impair?

Net investments totaled $11.2 billion for the first nine months, in line with annual guidance of about $15 billion.

The company signed a $1.8 billion agreement with Global Infrastructure Partners covering energy infrastructure assets in Africa.

It also agreed a three-year partnership with Mistral to develop artificial intelligence (AI) models for exploration and reservoir engineering.

Third-quarter impairments totaled $1.9 billion, primarily covering offshore wind activities and the company’s participation in Hanwha TotalEnergies Petrochemical.

Takeaway: Investment stayed within guidance, but the quarter still carried $1.9 billion of impairments.

What carries into Q4?

At the start of Q4, TotalEnergies said oil prices remained above $100 per barrel amid continued Middle East tensions.

It also reported rising European gas forward prices ahead of winter demand and expects an average LNG selling price above $14/Mbtu.

Excluding conflict effects, Q4 production should grow more than 3% from Q4 2025, consistent with annual guidance.

Refinery throughput should remain broadly comparable with Q3 despite a 20-day turnaround at the Normandy platform.

The release did not quantify the conflict drag, gas-price sensitivity or turnaround impact on fourth-quarter output and margins.

Watch item: Project start-up dates, conflict-adjusted production and the Q4 European refining margin will test management’s promises.