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DATE
Thursday, Oct. 29, 2026
CALL PARTICIPANTS
- Chairman and Chief Executive Officer – Patrick Pouyanné
- Chief Financial Officer – Jean-Pierre Sbraire
TAKEAWAYS
- Adjusted Net Income — $9.1 billion, representing a 50% increase over the second quarter due to higher commodity prices and strong operational performance across all segments.
- CFFO — $12.3 billion, an increase of 25% since the previous quarter, driven by a $3.1 billion decrease in working capital and higher refining margins.
- Full-Year Cash Flow Guidance — $42 billion to $43 billion, reflecting sustained high energy prices and the outperformance of gas and LNG trading activities.
- Gearing — 9.1% at the end of the third quarter, decreasing from 13.1% in the prior quarter and falling below the company target of 10%.
- Share Buybacks — $2.5 billion authorized for the fourth quarter of 2026 and $2.5 billion for the first quarter of 2027, maintaining the company’s commitment to return 40% of cash flow to shareholders.
- Third Interim Dividend — EUR 0.90 per share, an increase of 5.9% compared to the 2025 dividend in line with the company’s strategy of annual growth of more than 5%.
- Hydrocarbon Production — 2.47 million barrels of oil equivalent per day, increasing 3% quarter over quarter following the ramp-up of projects in Brazil, the United States, and Iraq.
- European Refining Margin — $33.2 per barrel, reflecting a 2.5-fold increase since the second quarter due to restricted refined product logistics and historical low inventories.
- Average LNG Price — $12.28 per million BTU, an increase of 20% over the second quarter due to lag effects in contract pricing and higher spot gas prices.
- Operating Costs — $4.7 per barrel of oil equivalent, staying below the company target of $5 per barrel due to the ongoing cash saving program.
- Integrated Power Net Production — 44.3 terawatt hours for the first nine months of 2026, an increase of 25% year over year driven by the commissioning of new renewable capacities.
- Total Refinery Throughput — 1.56 million barrels per day, up 9% quarter over quarter as all refineries in Europe and the United States operated at full capacity.
- Conflict Production Impact — Approximately 5% reduction in overall production due to the Middle East conflict, falling at the low end of management’s previous guidance of 5% to 10%.
- Net Investments — $3.3 billion for the third quarter, maintaining the full-year guidance of $15 billion.
- Integrated LNG Adjusted Net Operating Income — $1.9 billion, more than doubling over the second quarter due to outperformance in LNG and gas trading in a bull market.
- Exploration & Production Adjusted Net Operating Income — $3.2 billion, reflecting production growth and sensitivities to declining oil prices and rising gas prices.
- Marketing & Services Adjusted Net Operating Income — $467 million, increasing 23% year over year as higher unit margins offset a 4% decline in petroleum product sales.
- TTF Price Benchmark — $21.5 per million BTU, increasing 38% since the second quarter average as countries replenished inventories for winter consumption.
- Hydrocarbon Production for LNG — 511,000 barrels of oil equivalent per day, a 7% decrease quarter over quarter due to planned maintenance in Angola and Australia.
- Renewable Power Generation Gross Capacity — 105.9 gigawatts at the end of the third quarter, with management targeting more than 60 terawatt hours of production for the full year.
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RISKS
- Pouyanné noted that the Strait of Hormuz conflict has resulted in “25% of the normal LNG tankers flow going through… compared to pre-war,” creating potential supply constraints for Europe and Asia.
- Pouyanné indicated that from Jan. 1, 2027, “Yamal LNG will not come to Europe anymore… by the sanctions regime,” which may impact the plant’s capacity to export full volumes due to longer shipping routes.
- Sbraire noted that the Middle East conflict’s impact on production remains a concern, stating, “the situation remains volatile” despite currently observing impacts below 5%.
SUMMARY
TotalEnergies SE (TTE +1.24%) reported a 50% sequential increase in adjusted net income for the third quarter, supported by record refining margins and a recovery in oil and gas production. Management confirmed a full-year cash flow projection between $42 billion and $43 billion, reinforcing a commitment to return 40% of this cash flow to shareholders through dividends and share buybacks. The company reported operational integration and geographic diversification as primary factors mitigating geopolitical disruptions in the Middle East and the Strait of Hormuz. The company also confirmed its gearing had fallen below its 10% target to 9.1%.
- Pouyanné noted the company’s countercyclical approach to acquisitions, stating that management prefers to “continue to grow in the gas, natural gas” in the United States while targeting a position of 1.5 billion to 2 billion cubic feet per day.
- Management confirmed a target of generating more than 60 terawatt hours in the Integrated Power segment for the full year, with the segment expected to be net cash positive in 2027.
- Pouyanné highlighted the company’s cost control efforts, stating, “the company, once again, demonstrating its leadership to control costs with operating costs of $4.7 per barrel, anchored strongly below $5 per barrel.”
- Regarding European refining capacity, Pouyanné indicated that margins may remain strong through the first half of 2027 due to low global inventories and logistical disruptions.
- The company reported progress on upstream projects, with management stating that “all the projects contributing to achieving the upstream production growth targets of more than 3% per year by 2030 are in execution phase.”
- Pouyanné explained that the company avoided declaring force majeure to Asian LNG customers despite lost volumes from Qatar, stating that geographic diversification is a “strong edge against geopolitical risks.”
INDUSTRY GLOSSARY
- TTF (Title Transfer Facility): A virtual trading point in the Netherlands for natural gas, used as a benchmark price for European gas markets.
- JKM (Japan-Korea Marker): The price benchmark for spot liquefied natural gas (LNG) delivered to Japan, South Korea, China, and Taiwan.
- Gearing: A financial ratio that measures a company’s financial leverage, calculated as net debt divided by the sum of equity and net debt.
- CFFO (Cash Flow From Operations): A measure of the amount of cash a company generates from its regular business activities.
- ROACE (Return on Average Capital Employed): A financial ratio that measures a company’s profitability and the efficiency with which its capital is employed.
- FPSO (Floating Production Storage and Offloading): A floating vessel used by the offshore oil and gas industry for the processing of hydrocarbons and fo
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