TotalEnergies has reported $4.2 billion in adjusted net income for the first quarter of 2025, down from previous highs amid weaker refining and petrochemical margins.
Yet, the French energy supermajor expressed confidence in its continued financial strength, announcing it will proceed with $2 billion in share buybacks for the second quarter, despite lower oil prices and geopolitical uncertainties.
The results were unveiled following a Board meeting chaired by CEO Patrick Pouyanné, who emphasized the resilience of the company’s diversified portfolio and disciplined capital allocation strategy.
“In a price environment globally similar to the fourth quarter 2024, TotalEnergies delivered strong results… reporting $4.2 billion of adjusted net income and $7.0 billion of cash flow from operations (CFFO).”
Patrick Pouyanné, CEO of TatalEnergies
The company’s upstream segment was a bright spot in Q1, with oil and gas production rising 4% year-on-year to more than 2.55 million barrels of oil equivalent per day (Mboe/d).
This growth was attributed to ongoing ramp-ups in Brazil, the U.S., Malaysia, Argentina, and Denmark.
TotalEnergies also confirmed that two major projects are set to enhance 2025 production: the Ballymore field in the U.S., launching in Q2, and Mero-4 in Brazil, expected in Q3.
The Exploration & Production segment posted $2.5 billion in adjusted net operating income and $4.3 billion in cash flow, representing quarter-over-quarter growth of 6% and 9%, respectively.
“Cash flow benefited from the accretive effect of new oil production that is both low-cost and low emission.”
Patrick Pouyanné, CEO of TatalEnergies
The Integrated LNG division delivered $1.3 billion in net operating income and $1.2 billion in cash flow, underpinned by LNG prices that remained strong year-over-year.
However, volatility in European gas markets, partly due to evolving risks linked to the Russia-Ukraine conflict, impacted gas trading results.
Meanwhile, Integrated Power performed in line with expectations, achieving $500 million in net operating income and $600 million in cash flow.
The company emphasized its commitment to expanding its renewables and storage footprint, citing the acquisition of German renewables developer VSB and the launch of new battery storage projects developed by Kyon.
Patrick Pouyanné noted, “We are deploying a differentiated Integrated Power model, particularly in Europe.”
TotalEnergies’ Shareholder Commitments
Despite facing macroeconomic headwinds, TotalEnergies emphasized its strong balance sheet, reporting a normalized gearing of 11%, excluding working capital effects. This allowed the Board to reaffirm its commitment to rewarding shareholders.
The company will distribute a first interim dividend of €0.85/share for fiscal 2025, a 7.6% increase from the previous year, consistent with its dividend growth guidance issued in February.
“Confident in the Company’s ability to reach its 2025 underlying growth objective… the Board has decided to continue share buybacks for up to $2 billion in the second quarter.”
Patrick Pouyanné, CEO of TatalEnergies
This decision comes even as Brent crude prices have dipped below $70/bbl since early April and global markets remain unsettled by inflation concerns, geopolitical tensions, and slowing economic growth.
TotalEnergies’ Q1 performance encapsulates the complex interplay of strong upstream production achievements and the competitive pressures in refining.
While refining margins continue to exert pressure on overall earnings, the company’s proactive financial management, strategic project developments, and commitment to returning capital provide a balanced path forward as it navigates the evolving energy market landscape.
TotalEnergies continues to position itself as a balanced energy major, investing in low-carbon initiatives while leveraging its strong upstream and LNG operations.
The company signaled that it would stay the course on capital discipline, selective project development, and energy diversification.
As the global energy landscape evolves, TotalEnergies’ ability to navigate market cycles, deliver consistent returns, and execute on its growth ambitions will remain key to sustaining investor confidence.
With a robust start to 2025, the company is betting that integrated operations, low-cost oil production, and renewables expansion will buffer short-term volatility and ensure long-term resilience.
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