Hormuz Strait closures drove crude and gas prices higher, lifting refining and production earnings amid Middle East capacity outages.
TotalEnergies reported a 67% year-over-year increase in second-quarter adjusted net income to $6 billion, its strongest quarter in nearly three years. The surge was fueled by the Iran war, which disrupted the Hormuz Strait, pushing crude and gas prices to multi-year highs and boosting European refining margins.
Refining and chemicals income surged 362% to $1.8 billion, while exploration and production earnings climbed 64% to $3.2 billion. LNG earnings, however, fell 22% to $807 million due to trading underperformance and flat European demand.
The company took a final investment decision on the Cronos gas field off Cyprus, aiming to produce 2.8 million tons of LNG annually starting in 2028, supporting its 60 million-ton-per-year LNG target.