European energy stocks surge as fuel crisis drives record refinery profits

Motorists across Europe are facing record fuel prices, while investors in the companies behind that supply have enjoyed an extraordinary year.

Europe’s deepening fuel crisis has triggered a powerful rally among regional oil and gas firms, with share prices climbing between 40% and close to 90% since the start of the year.

The gains are not driven by crude oil alone. The real story lies inside refineries.

Severe shortages of diesel, petrol, and jet fuel have pushed the crack spread — the gap between raw crude and refined fuel prices — to historic levels, turning a consumer supply crisis into a profit boom for parts of Europe’s energy sector.

Why refining has become so profitable

European diesel prices have surged well above crude oil costs, as refined fuel supply has been squeezed from two directions.

Geopolitical tensions around Iran and the Strait of Hormuz have curtailed diesel and jet fuel exports from Gulf refineries, while Russia banned diesel exports this summer after Ukrainian drone strikes on its refining infrastructure, tightening a market Europe relies on heavily.

The European diesel crack spread has nearly doubled since November 2025, when it stood at roughly $46 (€40) per barrel, according to pricing agency OPIS.

The European Central Bank has taken note.

Following the rate decision on 10 September, ECB President Christine Lagarde noted that barely anyone knew what refining margins were six months ago, yet now “we all know what it’s about.” She pointed to diesel as “yet another bottleneck.”

The ECB reported that energy inflation climbed to 14.3% in August, up from 10.3% in July, partly reflecting higher refining margins on liquid fuels. ECB experts estimate the diesel margin now accounts for about 41 cents of every litre sold — nearly a fifth of the pump price.

This backdrop helps explain why European energy stocks have become among the strongest performers in the market this year.

Europe’s top 10 performing oil equities in 2026

Euronews screened European oil and gas companies with market capitalisations of at least €10 billion. Here are the ten biggest gainers in 2026, based on market data through 23 September.

10. TotalEnergies: +40.58%

TotalEnergies has gained 40.6% this year, making it the tenth best performer in the group.

The French energy giant earned $6 billion (€5.3bn) in adjusted net income in the second quarter, up from $3.6bn a year earlier. Cash flow from operations reached $9.8bn (€8.6bn), and the company raised its interim dividend by 5.9% to €0.90 per share. Its European refining margin rose to $13.5 per barrel from $4.7.

TotalEnergies reports third quarter results on 29 October. Analysts expect revenue of $54.2bn (€47.5bn), up 24% year-on-year, and adjusted earnings per share of $3.14, up 77%.

9. Eni S.p.A: +44.9%

Eni has risen 44.9% since January, putting it ninth in the ranking.

The Italian energy group more than doubled its adjusted net profit to €2.33bn and raised its share buyback to €3.4bn. Its refining volumes outside Italy fell 35% after the closure of Hormuz-related supply routes.

Results are due on 23 October, when analysts expect revenue of €27.6bn, up 37% year-on-year, and earnings per share of €0.79, up 92%.

8. OMV: +48.67%

OMV shares are up 48.7% this year, placing the Austrian group eighth.

The company reported a clean operating result of €1.71bn in the second quarter, stripped of inventory gains and one-off items, driven by a much stronger contribution from oil and gas production. Its European refineries ran at 90% of capacity, up from 83% a year earlier, although temporary regulatory measures in Romania and Austria limited the gains.

OMV reports on 29 October. Analysts expect revenue of €7.7bn, up 23%, and earnings per share of €2.77, up 49%.

7. Galp: +49.28%

Galp has climbed 49.3% in 2026, enough for seventh place.

The Portuguese group lifted adjusted net income by 45% to €540m, as its refining margin nearly tripled to $16.8 per barrel. Output rose 12%, helped by its Bacalhau field in Brazil.

Results are due on 26 October, with analysts expecting revenue of €6.7bn, up 31%, and earnings per share of €0.69, up 92%.

6. Romgaz: +53.55%

Romgaz has gained 53.6% this year, making it the sixth best performer, despite a much less straightforward earnings picture. The Romanian state company sells natural gas at regulated prices and does not refine fuel.

First half revenue fell 8.6% to RON 3.88bn (€735m), while net profit rose 3.4% to RON 1.74bn (€330m). The shares have fallen almost 23% over the past month.

Romgaz reports on 13 November.

5. Orlen: +55.59%

Orlen has advanced 55.6% this year, ranking fifth in the group.

Poland’s state-controlled refiner generated PLN 76.5bn (€17.5bn) in second quarter revenue and a net profit of PLN 7.68bn (€1.75bn), more than five times last year’s figure. Record profits from its petrol stations abroad helped.

It has brought its results forward to 5 November, when analysts expect revenue of PLN 63.4bn (€14.5bn), up 4%, and earnings per share of PLN 5.52 (€1.26), almost three times last year’s level.

4. Vår Energi: +56.18%

Vår Energi has gained 56.2% in 2026, the fourth best performance in the group.

Unlike the refinery-heavy names, the Norwegian company’s rally is linked directly to oil and gas production.

Second quarter output rose 31% year-on-year to 376,000 barrels of oil equivalent per day. It generated $2.1bn (€1.84bn) of operating cash flow after tax and cut net debt to $3.4bn (€2.98bn).

In July, Vår Energi agreed to combine with BlueNord, creating what the companies describe as Europe’s largest independent oil and gas producer.

Results are due on 21 October. Analysts expect revenue of about NOK 30.6bn (€2.83bn), up 43%, and earnings per share of NOK 1.48 (€0.14), almost three times the level of a year earlier.

3. Equinor: +67.89%

Equinor has risen 67.9% this year, placing the Norwegian giant third.

The state-backed group reported adjusted operating income of $11.48bn (€10.07bn) in the second quarter. Adjusted earnings were $1.33 (€1.17) per share, and production rose 3%.

Equinor benefits from Europe’s renewed focus on energy security, as Norway remains the continent’s main supplier of pipeline gas and a major source of crude.

It reports on 28 October, when analysts expect revenue of $33.2bn (€29.1bn), up 27%, and adjusted earnings per share of $1.36, almost four times last year’s $0.37.

Analysts expect revenue to grow almost 20% this year, before falling about 9% in 2027.

2. Neste: +76.35%

Neste has surged 76.4% this year, second only to Repsol.

The Finnish group shows exactly why refining margins matter.

Comparable EBITDA hit a record €1.20bn in the second quarter, compared with €341m a year earlier. Its oil products business more than doubled its contribution to €334m, which the company attributed mainly to exceptionally wide margins on diesel and jet fuel. Earnings per share jumped to €1.00 from a five-cent loss a year earlier.

Neste also makes renewable diesel and sustainable aviation fuel, making it one of the clearest winners from both scarce conventional fuel and demand for alternatives.

Results are due on 29 October. Analysts expect revenue of €5.1bn, up 12%, and earnings per share of €0.81, almost six times the level of a year earlier.

1. Repsol: +87.19%

Repsol has gained 87.2% this year, the best performance among Europe’s large energy stocks.

Its adjusted net income reached €2.71bn in the first half. Its industrial division, which includes refining, alone generated €1.68bn of that, compared with just €235m a year earlier.

Repsol reports on 29 October. Analysts expect earnings per share of €2.06, roughly three times last year’s €0.68.

Revenue is expected to rise by more than 31% in 2026, but analysts forecast a fall of almost 17% next year — the sharpest decline expected among the ten companies.

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