Shares in TotalEnergies fall 2% after publishing Q2 main indicators

Shares in TotalEnergies fell 2% following the release of the company’s second-quarter 2026 main indicators, as investors digested mixed performance across its business segments. The company reported hydrocarbon production of nearly 2.4 million barrels of oil equivalent per day (Mboe/d) for the quarter, in line with its quarterly guidance of 4% organic growth. However, production was impacted by the Middle East conflict, which reduced output by approximately 210 kboe/d—below the previously communicated guidance of 360 kboe/d—due to ramp-up of production in UAE and the restart of operations in other Middle East regions during June.

Exploration & Production cash flow is expected to rise by approximately $1 billion compared to the first quarter, driven by higher average liquids prices. However, the results will be affected by accounting adjustments related to production that could not be lifted during the quarter. Meanwhile, Integrated LNG cash flow and results are anticipated to decline significantly, primarily due to underperformance in gas trading activities amid a broadly flat to declining European market.

Downstream results and cash flow, on the other hand, are expected to rise sharply compared to the first quarter of 2026, supported by higher refining and petrochemical margins, as well as strong oil trading performance. Marketing & Services is also expected to benefit from positive seasonal effects. Additionally, the Integrated Power segment saw a boost following the closing of the EPH transaction on April 29.

TotalEnergies also reported a decrease in working capital between $1 and $1.5 billion for the quarter, primarily due to the impact of lower hydrocarbon prices at the end of the quarter on inventories. Despite this, the company’s gearing ratio is expected to improve by 2 percentage points at the end of the second quarter of 2026, as quarterly net investments remain in line with the annual guidance of $15 billion.

The company’s sensitivities for 2026 indicate that a $10 per barrel increase in average liquids prices would result in an estimated $2.3 billion increase in adjusted net operating income and $2.8 billion in cash flow from operations. These figures highlight the company’s exposure to commodity price fluctuations and underscore the importance of stable oil and gas prices for its financial performance.

Investors will be closely watching TotalEnergies’ upcoming conference call on July 23, 2026, for further details on its second-quarter and first-half 2026 results.