TotalEnergies Oil Trading Profits: EUR 2 Billion at 15% Tax

TotalEnergies SE Chairman and CEO Patrick Pouyanné disclosed on a May 29, 2026 shareholder call that the company's oil trading operations generate about EUR 2 billion per year. That figure represents 10% of TotalEnergies' total results and cash flow. Pouyanné also confirmed the trading profits are taxed in Switzerland at 15%, the global minimum rate set by the OECD.

The disclosure fills a long-standing gap in the company's reporting. TotalEnergies publishes a 600-page universal registration document, the specific contribution of oil trading and the effective tax rate on that activity had not been broken out in a single, clear figure before. Pouyanné acknowledged that "too much information kills information" and directed shareholders to a table in Chapter 10 of the registration document that contains the trading results.

The EUR 2 Billion Figure: Why It Matters

The EUR 2 billion annual profit from oil trading is material for a company of TotalEnergies' size. At 10% of total results and cash flow, oil trading is not a sideline; it is a meaningful profit center. Pouyanné stated that the activity is conducted in Switzerland and Singapore, both of which apply the OECD's 15% corporate tax rate. That rate is lower than the headline corporate tax rates in many European countries, including France, where the statutory rate is 25%.

The disclosure effectively pre-empts questions about tax avoidance. By showing that the trading profits are taxed at the OECD minimum, TotalEnergies can argue that it is complying with international standards. The political risk is not eliminated. The French government has previously signaled interest in a windfall tax on energy companies. Pouyanné's upcoming appearance before the National Assembly will put the company on the defensive.

Sector Read-Through: Peers Face Similar Pressure

TotalEnergies is not the only European oil major with trading desks in low-tax jurisdictions. Shell and BP also run large trading operations from London and Singapore, though their tax structures differ. The European Union's tax reporting directive, which takes effect next year, will require all member-state companies to disclose country-by-country tax payments. TotalEnergies already reports on 90 countries, more than the directive requires. The new rules will force peers to match that level of transparency.

The read-through for the sector is straightforward: investors should expect more granular disclosures on trading profits and effective tax rates from Shell, BP, and others in the coming quarters. Companies that have relied on opacity around trading income will face pressure to show that they are paying a fair share. The political environment in Europe, with governments seeking revenue, amplifies that pressure.

TotalEnergies holds an Alpha Score of 70/100, labeled Moderate, in the energy sector. That score reflects the company's balanced risk profile. The tax transparency debate introduces a new variable that could affect valuation multiples if political action follows. See the TTE stock page for the full profile.

Next Decision Point: National Assembly and European Rules

Pouyanné's appearance before the French National Assembly is the immediate catalyst. If lawmakers press for a windfall tax or additional disclosure requirements, TotalEnergies and its peers could face higher compliance costs or direct tax hits. The European directive on tax reporting, starting next year, will force a level of transparency that may reduce the informational advantage that integrated oil companies have held over investors. The France Signals Windfall Tax on TotalEnergies Amid Oil Surge article covers the earlier political context.

For now, the EUR 2 billion figure and the 15% tax rate give investors a concrete data point to model. The next step is to see whether other European majors follow with similar disclosures and whether political pressure translates into legislative action.