TotalEnergies, celebrating its centenary, posted net earnings of $5.7 billion for the first quarter, benefiting from sustained oil prices. Despite a significant drop in gas prices, the Group’s balanced strategy between hydrocarbons and electricity continues to pay off, according to Patrick Pouyanné, the company’s CEO.
Sector comparison and market environment
While awaiting results from rivals BP and Shell, TotalEnergies is navigating in an environment of favorable oil markets but falling gas prices. This mixed context led to a 19% fall in the Group’s adjusted Ebitda compared with the first quarter, to $11.5 billion.
Energy strategy and investments
Despite market volatility, TotalEnergies confirms its commitment to the energy transition, planning to devote a third of its investments to low-carbon energies over the next five years. This includes $5 billion dedicated to the production of electricity from gas and renewable sources.
Production dynamics and commercial challenges
The Group’s hydrocarbon production rose slightly, helped by projects in Brazil, Oman and Azerbaijan. However, sales of liquefied natural gas (LNG) fell by 9% this quarter, impacted by a mild winter and high inventories.
Regulatory and climate issues
Patrick Pouyanné is expected to discuss TotalEnergies’ strategy for meeting France’s climate obligations at a forthcoming Senate hearing. This session is under particular scrutiny, as the group faces increasing pressure to reduce its carbon footprint and adjust its hydrocarbon production.
Against a backdrop of environmental and economic challenges, TotalEnergies continues to navigate successfully, while adapting its strategy to meet both market expectations and regulatory and climate requirements.
