TotalEnergies raises dividend, buybacks and hackles over war-related profits

Wed, 29th Apr 2026 12:16

* Refining and chemicals segment quintuples earnings

* Share buybacks doubled to $1.5 billion for second quarter

* Peers BP, Eni also ⁠reported strong earnings due to Iran war

* French politicians call for windfall tax to aid consumers (Recasts with French calls for supertax in paragraph 1,5, 6; , expectation for future majors in paragraphs 7-11; updates share price paragraph 4.)

PARIS, April 29 - TotalEnergies raised ‌its dividend by 5.9% and doubled its share buybacks on Wednesday, angering French politicians pressing for a supertax on the oil major's windfall profits to aid consumers hit by higher ⁠prices linked to the Iran war.

Total beat expectations with adjusted net income of $5.4 billion, a ⁠29% jump from a year ago boosted by strong trading. Analysts had expected $5 million, according to LSEG data.

The conflict has caused unprecedented disruption of energy markets, forcing Total to shut in 15% of its upstream output and pushing up global energy prices, which have provided a windfall for some producing countries and oil majors.

TotalEnergies shares were at 78.26 euros at 1051 GMT, paring gains after ‌rising as much as 1.3%. The stock has gained 40.78% year-to-date.

On Wednesday, France's Socialist Party announced a proposal to tax companies' windfall profits in times of crisis.

French junior energy minister Maud Bregeon also said on Wednesday the government was considering new measures to tackle rising fuel prices.

"I won't go into Total-bashing ... but in principle, no door is closed. No super-profit should be realized in France," Bregeon told reporters.

SHARE BUYBACKS ARE BACK ON THE RISE

The French energy company will buy back $1.5 billion in shares in the second quarter, a turnaround after it slowed purchases and announced a cost-savings programme in late 2025 on the ‌expectation low oil prices would fall further.

Other majors yet to report first-quarter results could also step up shareholder returns with strong profits.

Italian peer Eni nearly doubled its share buybacks on expectations the war would keep ‌energy prices higher through the year, while BP declined to boost investor returns or dividends with its war-related trading profits.

RBC analysts said U.S. major Chevron, which reports on Friday, could return more cash to shareholders via buybacks as its plans were previously based on oil prices of $60-80 per barrel, below current levels.

HSBC, however, expected other majors to be prudent.

"We don't believe Shell, Chevron or ExxonMobil will feel any kind of pressure to follow suit ... as companies will prioritise deleveraging and capital ‌discipline in an uncertain macro environment," said HSBC analyst Kim Fustier.

SURGING ENERGY PRICES BOOST ALL BUSINESS SEGMENTS

Earlier this month, Total said strong trading, the war-driven oil price rise and new output would boost income.

Benchmark Brent crude futures climbed to multi-year highs near $120 a barrel after U.S.-Israeli strikes on Iran began in late February, ⁠followed by ⁠Tehran’s closure of the Strait of Hormuz and its attacks on Gulf neighbours, including a Saudi Arabian refinery ‌co-owned by Total.

Earnings from the refining and chemicals segment, home to Total's oil and petroleum products trading, more than quintupled to $1.6 billion for the quarter.

Marketing and services earnings rose 9% to $262 million.

Its liquefied natural gas segment, which includes gas and LNG trading, was up 2% at $1.3 billion, despite the impact of Iranian strikes damaging liquefied ‌natural gas facilities in Qatar supplying Total.

Upstream exploration and production earnings rose 5% to $2.58 billion from the first quarter of 2025.

The integrated power segment, comprising gas-fired power plants, renewables, batteries and power trading, was up 8% at $545 million.