Ankara: French energy major TotalEnergies reported a significant 68% increase in its adjusted profit for the second quarter, driven by elevated oil prices, stronger refining margins, and improved petroleum trading. The company's adjusted net income surged to $6.03 billion from $3.58 billion, while sales rose to $61.77 billion from $49.63 billion. According to Anadolu Agency, net income attributable to shareholders more than doubled, reaching $5.44 billion. Cash flow, excluding working capital, also witnessed a 48% rise, amounting to $9.8 billion. Despite these positive figures, hydrocarbon production experienced a 4% decline, dropping to 2.395 million barrels of oil equivalent per day due to disruptions caused by the Middle East conflict. The company estimated that this conflict led to a reduction in quarterly production by 210,000 barrels of oil equivalent per day, with significant impacts seen in Qatar and export challenges through the Strait of Hormuz. However, excluding the conflict's impact, production saw an over 4% increase, bolstered by projects in Brazil, the US, Angola, and Libya. Exploration and Production adjusted net operating income rose by 64% to $3.23 billion, supported by an average realized liquids price of $91.60 per barrel. Meanwhile, the Refining and Chemicals division saw a substantial jump in adjusted net operating income to $1.8 billion from $389 million, attributed to higher refining and petrochemical margins alongside robust trading. The company's European refining margin indicator improved significantly, rising to $13.50 per barrel from $4.70. Conversely, the Integrated LNG segment faced a 22% year-on-year decline in adjusted net operating income, falling to $807 million due to weaker gas trading and decreased production in Qatar. In the Integrated Power sector, profit fell by 7% to $533 million, though net electricity production increased by 28% to 14.8 terawatt-hours. TotalEnergies maintained its 2026 net investment guidance at $15 billion, following an investment of $7.93 billion in the first half. The board approved a second interim dividend of £0.90 per share, marking a 5.9% year-on-year increase, and authorized up to $1.5 billion in share buybacks for the third quarter. For the first half of the year, adjusted net income saw a 47% increase, reaching $11.42 billion. Looking ahead, TotalEnergies anticipates that oil prices will remain above $80 per barrel at the start of the third quarter, amid uncertainties related to the Strait of Hormuz. European gas prices are projected to stay between $16-$20 per million British thermal units, with the average LNG selling price expected to exceed $11.50. The ongoing conflict in the Middle East is forecasted to reduce third-quarter production by 5% to 10%, contingent on access to the Strait of Hormuz.