French energy major TotalEnergies has projected stronger financial results for the second quarter of 2026, supported by improved refining margins, resilient oil trading performance and higher cash flow from its upstream operations.
The company said its downstream business is expected to deliver a significant improvement over the first quarter as stronger refining and petrochemical margins combined with solid oil trading activities boosted earnings. It is scheduled to release its full second-quarter results on July 23.
TotalEnergies also said cash flow from its exploration and production business is likely to rise by about $1 billion compared with the previous quarter, reflecting stronger oil production and improved market conditions.
The company noted that the impact of disruptions linked to tensions in the Middle East was lower than previously anticipated. It revised the estimated production impact to around 210,000 barrels of oil equivalent per day, down from an earlier projection of 360,000 barrels per day.
According to the company, the improved outlook was driven by increased production from its offshore operations in the United Arab Emirates and the gradual restart of output in other countries across the region during June.
However, TotalEnergies said some of the crude produced during the quarter could not be lifted before the reporting period ended. As a result, the affected volumes will be reflected in its exploration and production results using end-June crude prices, which were below $70 per barrel.
While its oil business is expected to perform strongly, the company warned that earnings from its integrated liquefied natural gas division will likely decline. It attributed the weaker outlook to softer gas trading performance in Europe after exceptionally strong results in the first quarter.
TotalEnergies joins several other international oil companies that have recently signalled improved second-quarter refining and oil trading performance, as tighter fuel markets and higher oil prices supported earnings during the period.
