TotalEnergies also announced a tie-up with a German renewable energy company RWE for OranjeWind, an offshore wind farm in the Netherlands.
TotalEnergies reported its second quarter and first half 2024 results on Thursday, with the company seeing lower net income because of faltering gas and refined product demand.
Adjusted net income (TotalEnergies share) for the second quarter 2024 was $4.7bn (€4.33bn) which was 9% down from the first quarter of the year. This also missed market expectations of adjusted net income remaining the same as the second quarter of 2023, at $4.96 billion.
Adjusted net income (TotalEnergies share) for the first half of the year was $9.8bn, which was 15% down from the first half 2023.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q2 2024 was $11.1bn, which was 4% below the Q1 2024. Adjusted EBITDA for H1 2024 was $22.6bn, which was 11% less than the first half of 2023.
The company’s earnings from its refining and chemicals unit came in at $1,601m in the first half of 2024, which was 39% down from the first half of 2023’s $2,622m, contributing significantly to eroding profit margins.
However, this was somewhat offset by the company’s Integrated Power business earning $1,113m in H1 2024, an increase of 36% from H1 2023.
TotalEnergies also reiterated that in the third quarter of the year, it would be buying back up to $2bn worth of shares.
On Thursday morning, TotalEnergies’ shares were trading at €60.54.
Patrick Pouyanné, the chief executive officer (CEO) of TotalEnergies said in the earnings report, “During the first half of 2024, TotalEnergies has completed important steps in advancing the balanced transition strategy presented to shareholders at our Investor Day in September 2023.
“Within the Oil and Gas pillar, TotalEnergies took final investment decisions on several upstream projects that are the stepping stones to achieve its objectives of growing upstream production by 2% to 3% per year and growing underlying cash flow: Kaminho in Angola, Sépia 2 and Atapu 2 in Brazil, Marsa LNG in Oman and the Ubeta gas project in Nigeria that supplies Nigeria LNG.
“Within the Integrated Power pillar, TotalEnergies has fortified its Integrated Power portfolio with the acquisition of several flexible assets that allow the company to extract maximum value out of its renewable assets in three key markets: combined cycle gas turbines (CCGTs) in Texas and the UK, and a renewables aggregator and battery developer in Germany.”
TotalEnergies partners with German renewable company for wind energy
TotalEnergies recently tied up with German renewable energy company RWE for a 50% share in OranjeWind, an offshore wind farm currently being built in the Netherlands. TotalEnergies plans to use its share of the green power produced from this venture for its electrolyzer initiatives.
These in turn, are expected to manufacture about 40,000 tons of green hydrogen annually, which will go a long way in helping TotalEnergies’ Northern European facilities transition to clean energy. This will also slash carbon dioxide emissions by approximately 5 million tons annually until the end of this decade.
Sven Utermöhlen, CEO of RWE Offshore Wind, said in a press release, “The Netherlands is one of our strategic core markets to grow our green portfolio. In TotalEnergies, I am delighted to have a strong partner at our side with whom we can realise our first offshore wind project in the Netherlands and at the same time, unlock the full system integration of OranjeWind.
“Together, we will provide a blueprint for the Dutch energy system of the future, designed to tackle the challenges of intermittent wind generation and flexible energy demand. As key players in the Dutch energy market, we are both comitted to helping the Netherlands meet its decarbonisation targets.”
