The company TotalEnergies has expanded its presence in the renewable energy sector, thus reducing its exposure to risks associated with declining refining margins and fossil fuel prices. The company has made significant investments in infrastructure for clean energy generation in Europe and other strategic markets, in line with its goal of achieving a more balanced and sustainable energy mix.
The French energy giant TotalEnergies reported a 23% decrease in its net profits for the first nine months of 2024, reaching $13.9 billion. This decline is mainly attributed to lower sector prices and a marked decrease in refining margins in Europe, reflecting the current challenges the company faces in a context of low prices in international gas and oil markets.
TotalEnergies CEO Patrick Pouyanné commented that these results highlight the resilience of the company's integrated multi-energy model, which encompasses both hydrocarbons and expansion into renewable energies.
Despite the 12% drop in profits in the third quarter, TotalEnergies has emphasized accelerated growth in renewable energies as one of the key factors to counteract the impact of current conditions and adapt to a future less dependent on hydrocarbons.
The company explained that the refining margin in Europe decreased by 66% during the third quarter, which contributed to the overall decline in its financial results. Its expansion plan includes projects in wind and solar energy and new initiatives in hydrogen, aiming for carbon neutrality by mid-century.
TotalEnergies' strategy to balance its traditional business with growth in renewables reflects a profound shift in the energy sector, where companies historically focused on oil and gas are adapting their operations to address environmental challenges and the demands of a market more focused on sustainability.
The increase in TotalEnergies' renewable energy production aligns with its efforts to diversify its energy sources and advance its commitment to long-term energy transition. In the first nine months of the year, clean energy production increased by 45%, reaching 19.6 terawatt-hours (TWh).
