TotalEnergies Reports Decline in Q4 Earnings Due to Falling Oil Prices

TotalEnergies Reports Decline in Q4 Earnings Amid Lower Oil Prices

TotalEnergies (NYSE: TTE) experienced a 13% decrease in its fourth-quarter earnings compared to the previous year. Despite increased upstream output and stronger refining margins, these gains were not enough to counteract the impact of falling oil prices.

On Wednesday, the company announced an adjusted net profit of $3.84 billion for the quarter, closely matching analysts’ expectations of $3.8 billion.

Operating cash flow remained relatively strong. Cash flow from operations (CFFO) reached $7.2 billion, marking a 2% increase from the previous quarter but a 7% drop year-over-year, even as oil prices fell by 15%.

CEO Patrick Pouyanné commented, “With cash flow steady at $7.2 billion, TotalEnergies continues to show resilience, offsetting weaker hydrocarbon prices through a 3.9% rise in upstream production for 2025, surpassing our guidance of over 3%.”

Looking to the future, Pouyanné stated at the earnings press conference that the company’s focus this year will be on maintaining a balance between generating cash and managing expenditures.

“We cannot predict what this year will bring. Our priority is to maintain a robust balance sheet,” he added.

In line with this approach, the board reaffirmed its 2026 share buyback target, ranging from $3 billion to $6 billion, assuming oil prices remain between $60 and $70 per barrel and the euro trades around $1.20 to the dollar.

The company had already indicated in September 2025 that buybacks would be reduced for the fourth quarter of 2025 and into 2026.

At that time, TotalEnergies outlined quarterly buyback guidance for 2026 of $750 million to $1.5 billion, based on Brent crude prices between $60 and $70 per barrel and a similar exchange rate.

“The Board also emphasized the importance of maintaining a strong balance sheet and flexibility, aiming to keep the gearing ratio below 20% amid ongoing economic and geopolitical uncertainty,” the company stated in September.

Currently, TotalEnergies noted that the planned $750 million in buybacks for the first quarter of 2026 is significantly lower than last year’s pace, but aligns with the company’s budget assumptions ($60/b). This strategy allows for adjustments to buyback levels throughout 2026, depending on market conditions.