Heightened conflict in the Middle East has driven up prices for crude oil and refined products, helping to offset a decline in natural gas business profits and leading to a significant surge in second-quarter earnings for the French energy giant.

Total SA (TTE.US) reported that its adjusted net profit for Q2 rose by 68% year-over-year to $6.03 billion, according to a statement released on Thursday. This performance was largely in line with market expectations, which had been revised downward after the company warned last week of a trading performance in its integrated gas segment that was substantially below forecasts.

Disruptions to shipping through the Strait of Hormuz and the ongoing conflict between Russia and Ukraine are contributing to tighter fuel supplies, with a sharp increase in refining margins boosting profits for major global energy firms.

Similar to peers such as Shell plc (SHEL.US) and BP plc (BP.US), Total operates a large-scale energy trading division. This business has helped the company maintain operations and capitalize on opportunities during periods of significant market volatility.

In the statement, Total's Chief Executive Patrick Pouyanné said, "In an environment where energy prices remain high due to the Middle East conflict, Total is leveraging its integrated business model and diversified asset portfolio."

Regarding its upstream operations, the company's oil and gas production increased by more than 4% year-over-year to 2.395 million barrels of oil equivalent per day. The startup of new projects in Brazil, the United States, and Libya helped offset supply disruptions stemming from the Middle East tensions.

Concurrently, refining, chemicals, and energy trading activities contributed to strong growth in cash flow and operating profit. Data shows the company's Q2 operating cash flow increased by 14% sequentially to $9.8 billion.

The company continues to advance strategic projects in liquefied natural gas (LNG), flexible power generation, and renewable energy. These include the launch of the ECA LNG project in Mexico, new long-term LNG supply contracts in Asia, the Mirrny wind power project in Kazakhstan, and solar investment projects in the Philippines.

Total will pay a second-quarter interim dividend of €0.90 (approximately $1.03) per share, a 5.9% increase compared to the same period last year. The company also plans to repurchase up to $1.5 billion of its shares in the third quarter, consistent with the scale of buybacks in the previous three quarters.

In February, Total indicated that, assuming oil prices remained between $60 and $70 per barrel, it planned share buybacks of $3 billion to $6 billion for the year. While crude prices have since risen above that range, the company reiterated that it would prioritize using any additional profits to reduce its debt.

As of the end of the second quarter, Total's net debt-to-equity ratio, excluding lease liabilities, decreased to 13.1%, down from 15.5% at the end of March.