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French major TotalEnergies posted a $5.4bn net income in Q1, bolstered by a 12% jump in liquefied natural gas (LNG) production and trading activities during the current market volatility.
Earnings for Refining & Chemicals shot up 60% year-on-year while Integrated LNG and Exploration & Production divisions both jumped 43% year-on-year. Return on equity totalled 14.4% in the quarter.
LNG highlights included the full restart of the Mozambique LNG project, a preliminary agreement with Alaska LNG project for the offtake of 2 million tonnes a year over 20 years, and start up of Quiluma non-operated gas field, supplying gas to Angola LNG.
TotalEnergies recently and will redirect $1bn in planned renewable investment into LNG and oil projects.
In the clean energy space, TotalEnergies created a to develop renewable energies across nine countries in central Asia and Asia Pacific.
Outlook: volatility to fuel prices
In the context of the ongoing conflict in the Middle East, markets remain elevated and extremely volatile. Given the time required to restart production facilities in the region, prices should remain at high levels during the second quarter.
European gas prices for Q2 on forward markets are high, around $14-15 Mbtu, in the context of inventory replenishment in Europe, where storage levels, at the end of the winter season, are at the lowest point in the last five years (25%).
It forecasts competition between LNG demand in Europe to replenish storage and in Asia for the warm season should support prices in the coming months, and anticipates an average LNG selling price of around $10 Mbtu in Q2.
Excluding the impact of the conflict in the Middle East, the production of Q2 is expected to grow around 4% year-on-year, in line with Q1 growth. At the end of April, production shutdowns in Qatar, Iraq and offshore in the UAE represent around 15% of the company’s total production.
Yesterday BP announced , more than doubling the $1.54bn reported in Q4 2025 and $1.38bn in Q1 2025.
