Fourth-quarter earnings at French supermajor TotalEnergies (NYSE: TTE) fell by 13% from a year earlier as higher upstream production and improved refining margins couldn’t offset the decline in oil prices.
TotalEnergies on Wednesday reported an adjusted net income of $3.84 billion for the fourth quarter, in line with the analyst consensus estimate of $3.8 billion.
Cash flow remained more resilient, as cash flow from operations (CFFO) of $7.2 billion rose by 2% sequentially and fell by 7% from a year earlier, even if oil prices slumped by 15%.
“With cash flow stable at $7.2 billion, TotalEnergies once again demonstrates its ability to offset lower hydrocarbon prices thanks to accretive growth in its Upstream production of 3.9% in 2025, exceeding the guidance of above 3%,” CEO Patrick Pouyanné said.
Looking ahead, Pouyanné said at an earnings press conference that TotalEnergies would work this year to balance cash generation with cash expenditure.
“We don’t know what will happen this year. We want to keep a healthy balance sheet,” the executive said.
In light of this statement, TotalEnergies’ board confirmed the 2026 share-buyback guidance of $3 billion to $6 billion for an oil price between $60 and $70 per barrel and an exchange rate around $1.20 per euro.
The French supermajor signaled lower buybacks for the fourth quarter of 2025 and for 2026 as early as September 2025.
Back then, TotalEnergies said that its 2026 share buyback guidance is between $750 million and $1.5 billion per quarter for a Brent price between $60 and $70 per barrel and an exchange rate around $1.20 per euro.
“The Board of Directors also confirmed the priority given to preserving a strong balance sheet and retaining maneuverability by maintaining a gearing ratio below 20% in an uncertain economic and geopolitical environment,” TotalEnergies said in September.
Today, TotalEnergies noted that the $750 million of buybacks in the first quarter 2026, which is considerably lower than last year’s quarterly buyback pace, is “consistent with the budget assumption ($60/b), thereby preserving the flexibility to adjust the level of buybacks during 2026 depending on price developments.”
By Tsvetana Paraskova for Oilprice.com
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