French oil and gas giant TotalEnergies has announced it will reduce its investments in low-carbon energy as it posted a sharp drop in net earnings for 2024, with after-tax profits sinking by 26 percent.
TotalEnergies has announced it is adjusting its strategy for 2025 by cutting back on investments in low-carbon energy, while marking a 26 percent drop in profits for 2024.
On Wednesday, the energy giant reported net earnings of over $15.6 billion – a notable decline from previous years – but still ranking among its highest returns in history.
NGOs seek climate trial of French oil giant TotalEnergies
The company announced that while total net investments for 2025 will be over $17 billion, its budget for low-carbon initiatives – primarily electricity projects – will be reduced by ten percent, from $500 million to $450 million.
The move follows a broader trend among European energy providers, with Shell, BP, and Equinor also stepping back from aggressive renewable energy expansion.
Shareholders rewarded
Total's decline in profits is attributed to more stable and less volatile oil and gas prices compared to the surges seen in 2022 and 2023.
Earlier highs were fueled by post-pandemic recovery and geopolitical disruptions, including the Russian invasion of Ukraine.
Environmental groups sue TotalEnergies over 'devastating' East Africa oil pipeline
Despite cutting green investments, TotalEnergies has rewarded shareholders, announcing a 7.6 percent dividend increase for 2024 and confirmed $8 billion in share buybacks for the year.
These buybacks also ensure compliance with France’s tax on share repurchases, contributing an estimated €100 to 150 million to French public finances.
TotalEnergies' total tax contributions in France for 2024 are expected to exceed some €2 billion.
