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TotalEnergies: Record Profits Fueled by War?
29 May
Summary
- TotalEnergies reported record $5.8 billion profits in Q1 2026.
- Middle East conflict drove oil prices to nearly $170 per barrel.
- Company faces accusations of war profiteering and tax avoidance.
TotalEnergies achieved record profits of $5.8 billion in the first quarter of 2026, with the crisis in the Middle East playing a significant role. The conflict, which began on February 28, 2026, sent oil prices soaring. TotalEnergies' chief executive noted their oil traders anticipated the market shift, leading the company to acquire substantial Middle East crude supplies when others hesitated.
The company's trading subsidiaries, particularly its Geneva-based entity, generated substantial profits by speculating on hydrocarbon supplies, including positions linked to the Strait of Hormuz crisis. This strategy has led to accusations of 'war profiteering' from political critics in France.
Furthermore, TotalEnergies is under fire for its corporate tax practices, with critics claiming it pays little tax in France, often redirecting profits through subsidiaries in countries with more favorable tax regimes like Switzerland and Singapore. Environmental groups also criticize the company's continued focus on fossil fuels, arguing it contradicts France's climate commitments.
NGOs are urging French institutions and the state to challenge TotalEnergies' trajectory, highlighting the discrepancy between France's international climate diplomacy and its support for the energy giant's production plans.
