TotalEnergies EP Gabon reported a significant contraction in profitability for the second quarter of FY26, with net income dropping 87% quarter-on-quarter to $6 million. The decline occurred despite a 13% rise in revenues to $111 million, driven primarily by higher crude oil selling prices.

The company’s financial performance was heavily impacted by non-operational factors and production disruptions. Crude oil production fell 7% to 15.0 kb/d due to natural field decline and planned integrity works on key export pipelines.

Financial Performance

Revenues for the second quarter of 2026 amounted to $111 million, up from $98 million in the first quarter. This increase reflected the rise in average selling prices, which reached $100.2 per barrel, compared to $93.5 per barrel in the prior period. The average Brent price stood at $103.8 per barrel, up 28% from the first quarter.

For the first half of FY26, total revenue declined slightly by 4% to $209 million compared to $217 million in H1FY25. This decrease was attributed to lower sales volumes resulting from the lifting schedule.

What the Numbers Show

The divergence between operational cash flow and net income highlights the volatility introduced by inventory valuation. While cash flow from operations turned positive to $50 million in Q2FY26 (from -$4 million in Q1), net income collapsed by 87%. The source attributes this drop largely to a $69 million negative variation in stock position. This indicates that while the business generated strong operating cash, accounting profits were suppressed by inventory adjustments rather than core operational losses.

Production and Operations

Crude oil production from fields operated by TotalEnergies EP Gabon stood at 15.0 kb/d in Q2FY26, down 7% from 16.1 kb/d in Q1FY26. The reduction was caused by natural field decline and shutdowns for integrity works on the Anguille/Ile Mandji – Cap Lopez export pipeline and the Anguille/Torpille gas pipeline.

Sales volumes remained flat at 1.0 million barrels for the quarter but fell 35% year-on-year to 2.0 million barrels for the first half of FY26, compared to 3.1 million barrels in H1FY25.

Cash Flow and Capital Expenditure

Cash flow from operations improved significantly to $50 million in Q2FY26, driven by higher revenues and a favorable change in working capital of $52 million. This offset higher current taxes and increased operating expenses.

Capital expenditure remained stable at $15 million in Q2FY26, focused on site integrity works and production initiatives. For the first half of FY26, capex totaled $30 million, down 23% from $39 million in the same period last year.

Dividend Declaration

At the ordinary shareholders’ meeting held on May 7, 2026, in Libreville, shareholders approved a net dividend of $22.22 per share for the financial year 2025. The total payout amounts to $100 million. The dividend was paid on June 9, 2026, equivalent to €18.88 per share based on the ECB exchange rate of $1.1770 per euro.