Total SA reported its fourth-quarter 2025 financial results, revealing that increased refining margins and cash inflows from the sale of renewable energy asset stakes were insufficient to counterbalance the negative impact of declining oil and natural gas prices. The company's adjusted net profit for the quarter stood at $3.8 billion, a 13% decrease from the $4.4 billion recorded in the same period the previous year. This figure also fell short of the analyst consensus estimate of $3.9 billion.
In response to a 15% drop in Brent crude prices and an 18% decline in liquefied natural gas prices, Total SA increased its oil and gas production by 5% during the quarter. Despite this effort, profits from its exploration and production segment fell by 21.6% to $1.8 billion. Conversely, the refining and chemicals business saw a significant turnaround, with profits surging 215% to $1 billion. The company had previously indicated that refining margins at its European facilities skyrocketed by 231% year-over-year in the fourth quarter.
CEO Patrick Pouyanné attributed the sharp rise in refining margins to U.S. sanctions on Russian oil firms Rosneft and Lukoil, coupled with the European Union's import ban on fuels derived from Russian crude.
Facing ongoing pressure from low energy prices, Total SA announced a reduction in its share repurchase program. The company plans to buy back $750 million worth of shares in the first quarter of 2026. This amount is lower than the $1.5 billion repurchased in the final three months of 2025 and represents the bottom end of the guidance range issued late last year. The new buyback pace also marks a noticeable slowdown compared to the $2 billion per quarter executed in the first three quarters of the previous year. Total SA has stated it will target share repurchases of $3 billion to $6 billion for the full year 2026. The quarterly dividend will remain unchanged at €0.85 per share.
The company added that its 2026 budget is based on an assumption of Brent crude at $60 per barrel and indicated that the buyback plan could be adjusted depending on full-year price movements. Brent crude is currently trading near $69 per barrel.
Following disappointing quarterly reports from Shell and BP, Total SA became the third and final major European oil and gas producer to announce its results. BP's shares fell sharply on Tuesday after it announced a pause in share buybacks and withdrew its long-standing dividend guidance.
Although major oil companies continue to generate substantial profits, an 18% plunge in crude prices last year has eroded cash flows, particularly among European firms. Market analysts widely anticipate that the oil market will remain oversupplied this year due to rising production both within and outside the OPEC+ alliance. Recent tensions between the U.S. and Iran have provided some upward pressure on prices, but European energy giants are simultaneously grappling with controlling rising debt levels, which constrains their ability to return capital to shareholders.