Adjusted diluted net earnings per share stood at 2.45 USD for the first quarter, compared to 1.73 USD for the final three months of 2025.

The hydrocarbons specialist reported cash flow of 8.6 billion USD, up 23% year-on-year, 'demonstrating its ability to capture rising prices through an integrated portfolio of high-performing and diversified businesses in oil, gas, and electricity'. Jefferies noted that this cash flow beat analyst consensus by 1%.

Dividend hike

In light of the cash flow generation and the ability to maintain a strong balance sheet, the Board of Directors of TotalEnergies has decided to increase the first interim dividend by 5.9% to 0.90 EUR per share, marking the 'strongest dividend growth among the oil majors'.

Regarding shareholder returns, the oil company has also authorized the continuation of share buybacks of up to 1.5 billion USD for the second quarter and confirmed a payout target exceeding 40% for the year.

Furthermore, the share buyback program (SBB) for the first quarter was revised upward from 0.75 billion USD to 1.5 billion USD, reaching the upper end of its guidance range.

Regarding operations in the first three months of fiscal 2026, hydrocarbon production for LNG rose by 12% sequentially and 4% year-on-year. This was primarily driven by production growth in Australia, the United States, and Malaysia. Adjusted net operating income and cash flow from operations (CFFO) for the Integrated LNG segment stood at 1,318 million USD and 1,785 million USD respectively, rising sharply this quarter, fueled by increased LNG production and trading activities leveraging market volatility.

Additionally, net electricity production (within its Integrated Power division) increased year-on-year to 11.7 TWh, as 20% growth in production from renewable sources offset lower utilization of flexible gas capacities amid weaker winter demand in Europe and the United States.

In the refining-chemicals business, refined volumes rose by 9% this quarter as units returned to full operational performance, reaching a utilization rate of 92% in the absence of major turnarounds during Q1 2026. Adjusted net operating income for this sector reached 1,599 million USD for the three-month period, an increase of nearly 600 million USD compared to Q4 2025. It was supported by strong operational performance at refineries, which captured high margins in March, and crude and petroleum product trading activities that benefited from a favorable environment during that month.

Following this quarterly release, Oddo BHF maintains its outperform rating on TotalEnergies with an unchanged price target of 85 EUR. 'The stock trades at a premium of approximately 15% relative to its peers. This gap is justified by superior growth and profitability, as well as the group's resilience. The strength of the balance sheet allows for the prospect of greater cash returns to shareholders', the broker explained to justify its decision.

Regarding its outlook for the second quarter of fiscal 2026, TotalEnergies expects to continue benefiting from high prices, with oil prices exceeding 70 USD per barrel. As for production, the 4% growth should more than offset the 15% loss in Middle Eastern output. In the coming quarter, LNG sales prices are expected to rise to 10 USD/Mbtu, compared to 8.5 USD/Mbtu in the first quarter.

Refinery utilization rates are expected to be between 80% and 85% in the second quarter, notably reflecting the impact of capacity reductions at SATORP (a joint venture between Saudi Aramco - 62.5% - and TotalEnergies - 37.5%) in Saudi Arabia and the planned two-month major turnaround at the Donges refinery in France.

The Company confirms its planned investments for the year with a projected net amount of 15 billion USD for 2026, in line with annual guidance. It is examining the possibility of accelerating short-cycle projects to take advantage of current hydrocarbon prices.

Agreement finalized with EPH

Furthermore, TotalEnergies announced the completion of the acquisition, signed on November 16, 2025, of 50% of EPH's flexible power generation platform in Western Europe, leading to the creation of TTEP, the second-largest European player in flexible power generation.

As a reminder, TTEP owns and operates flexible natural gas and biomass power plants, as well as battery energy storage systems (BESS), with a total capacity of 14 GW installed or under construction. Its electricity production reached nearly 30 TWh in 2025.

TotalEnergies and EPH have entered into tolling agreements with TTEP, allowing each partner to market their share of electricity production. Additionally, TTEP has a project pipeline of 5 GW and will serve as the preferred investment vehicle for both shareholders to develop their flexible power generation and large-scale battery storage activities across the 5 countries involved.

This transaction is effective as of today. The Board of Directors of TotalEnergies SE approved the issuance of approximately 95.4 million shares to EPH, representing approximately 4.2% of the French electricity and gas provider's capital, making EPH one of the Company's main shareholders.

Moreover, following the completion of the transaction with EPH, the French oil group confirms that the Integrated Power sector should benefit in 2026 from 10 TWh of net electricity production, in line with the 15 TWh full-year guidance, and a contribution of over 500 million USD in free cash flow.