Analysis & Outlook
“Upon observing the Company’s ability to deliver on its production growth objective, the Board of Directors has decided on the distribution of a third interim dividend of €0.85/share for fiscal year 2025, up nearly 7.6% from 2024.”
How has TotalEnergies maintained its financial performance despite the drop in the oil price?
Jean-Pierre Sbraire / Despite a $10/b drop in oil prices year-on-year, in third quarter 2025 TotalEnergies posted adjusted net income at the same level as third quarter 2024 at $4.0 billion and $7.1 billion of cash flow, up 4% compared with third quarter 2024. The Company’s financials are underpinned by accretive hydrocarbon production growth of more than 4% year-on-year and improved Downstream results that highlight the Company’s profitable growth strategy and integrated model.
What were the highlights per activity sector in the third quarter?
J-P. S. / Exploration & Production reported adjusted net operating income of $2.2 billion and cash flow of $4.0 billion in the third quarter, up 10% and 6% quarter-to-quarter, respectively. New projects generated around $400 million of additional cash flow year-on-year with margins significantly above the portfolio average. The Company also continued to replenish its exploration portfolio, securing license awards in the Republic of the Congo, Nigeria and Liberia.
Integrated LNG generated cash flow of $1.1 billion this quarter, in line with the second quarter in a similar price environment (with an average LNG price of around $9/Mbtu). TotalEnergies further pursued its integration strategy in the U.S. LNG value chain through the final investment decision of Rio Grande LNG Train 4 and the acquisition of new shale gas interests.
Integrated Power posted adjusted net operating income and cash flow of $0.6 billion this quarter, in line with the second quarter, with electricity production increasing by nearly 20% year-on-year. Production assets (renewables and gas-fired power plants) and sales activities (B2B, B2C, trading) contributed equally to these results, illustrating the value of TotalEnergies’ integrated strategy in this segment. As part of its business model, TotalEnergies signed an agreement in the third quarter to divest 50% of its renewable assets in North America and France for ~$1.5 billion, demonstrating its ability to successfully valorize its portfolio.
Downstream delivered adjusted net operating income of $1.1 billion and cash flow of $1.7 billion, up nearly $500 million year-on-year, with the good availability of assets allowing the Company to capture improved refining margins in Europe.
Net investments reached $3.1 billion in third quarter 2025, benefiting from around $400 million of disposals net of acquisitions. Gearing at the end of third quarter 2025 stood at 17.3%, for an increase of 0.6% compared with second-quarter 2025, benefiting from a $1.3 billion positive contribution of working capital.
What decisions did the Board of Directors take regarding shareholders?
J-P. S. / Upon observing the Company’s ability to deliver on its production growth objective, the Board of Directors has decided on the distribution of a third interim dividend of €0.85/share for fiscal year 2025, up nearly 7.6% from 2024, and at the same level as previous interim dividends. As announced on September 24, the Board authorized share buybacks for up to $1.5 billion for fourth quarter 2025. The Board also approved the effective termination of its American Depositary Receipts (ADR) program, with the ADRs to be transformed into ordinary shares listed on the NYSE from December 8, 2025.