TotalEnergies announced it will return more cash to shareholders due to an unexpected financial gain stemming from the Middle East conflict.

The French energy giant stated on Wednesday that it will resume share buybacks in the second quarter ending in June, amounting to up to $1.5 billion, as war-induced price increases have boosted earnings and cash flow. The company also raised its interim dividend by nearly 6%, to €0.90 ($1.05) per share.

Boosted by higher oil prices, increased liquefied natural gas production, and a very strong performance from its traders, the company's net profit doubled compared to the previous quarter, reaching $5.81 billion. This result surpassed the average analyst expectation of $5.21 billion, compiled by Visible Alpha.

Earlier this week, its UK rival BP also reported that its quarterly earnings more than doubled, influenced by volatility caused by the conflict.

Due to the Middle East conflict, facilities accounting for approximately 15% of TotalEnergies' total oil and gas production have been shut down. As energy infrastructure in the region came under attack, the company halted production offshore Qatar, Iraq, and the UAE.

Despite these production disruptions, the company's output remained largely flat compared to the previous quarter, as new projects and start-ups in Brazil and Libya helped offset the losses.

TotalEnergies said the performance of its downstream business benefited from a recovery in its refining division. In March, production disruptions and market dislocations in the Middle East created ideal conditions for refiners, allowing the company's refining unit to achieve exceptionally high margins during the period.

Shares of TotalEnergies rose 0.9% to €78.99 in early European trading.