TotalEnergies Cuts Buybacks as Low Oil, Gas Prices Weigh on Profits

Why It Matters

The reduced buyback signals tighter cash deployment, affecting shareholder returns and highlighting the sector’s sensitivity to commodity price swings. It also underscores TotalEnergies’ shift toward a more defensive financial strategy in a low‑price environment.

Key Takeaways

• Buyback cut 62% to $750 million
• Refining profit up 215% despite price slump
• Exploration income down 21.6% year‑on‑year
• Production rose 5% while Brent fell 15%

Pulse Analysis

TotalEnergies’ decision to slash its share‑repurchase program comes at a time when global oil markets are grappling with unprecedented price volatility. After a brief rally in late 2024, Brent crude slipped below $80 per barrel in early 2026, eroding the revenue base that had supported aggressive buyback levels of roughly $2 billion per quarter. By trimming the Q1 program to $750 million, the French major joins a wave of European oil majors—BP suspended its buybacks entirely, while Equinor trimmed its own by 70%—reflecting a broader industry pivot toward preserving liquidity amid uncertain geopolitical dynamics and lingering demand concerns.

While the buyback reduction may disappoint income‑focused investors, TotalEnergies is leveraging its diversified portfolio to offset the headwinds. Refining margins exploded, driven by sanctions on Russian fuel exports and an EU ban on Russian oil, delivering a 215% earnings jump for the segment. Simultaneously, the company boosted oil and gas output by 5% to compensate for a 15% drop in Brent and an 18% decline in LNG prices, illustrating a strategic emphasis on volume growth in core upstream assets. The exploration division, however, saw a 21.6% revenue decline, highlighting the uneven impact of price pressures across business lines.

Looking ahead, the scaled‑back buyback underscores TotalEnergies’ cautious capital allocation stance, but it also leaves room for upside if commodity markets recover. CEO Patrick Pouyanne hinted that the lower‑end guidance could be revised upward should oil and gas prices improve, suggesting that the company retains flexibility to reinstate more generous shareholder returns. For analysts and investors, the key takeaway is to monitor price trends, regulatory developments—particularly the EU’s upcoming gas import ban—and Total’s ability to translate refining strength into sustainable earnings growth across its integrated energy platform.