TotalEnergies SE reported a 68% surge in second-quarter adjusted net income to $6.03 billion, up from $3.58 billion a year earlier, as the ongoing military conflict in Iran drove up prices for crude oil and refined products.
The windfall from higher energy prices more than compensated for a decline in profitability within the company’s gas division, underscoring how geopolitical instability is reshaping earnings dynamics for integrated majors.
The results validate the market’s recent repricing of TotalEnergies shares, which hit an all-time high earlier this week on expectations of strong quarterly performance.
Investors are rewarding the company’s ability to capture margin expansion in the oil and refining segments, even as the gas business faces headwinds.
The divergence between the two segments highlights the uneven impact of the current energy market regime, where supply disruptions favor traditional hydrocarbon producers over gas-focused operations.
This earnings beat follows earlier projections from TotalEnergies that second-quarter profits would rise due to elevated energy prices stemming from the Iran conflict.