TotalEnergies scales back green energy investment as profits drop to $15.8bn
Onome Amuge
French energy giant TotalEnergies has decided to slash investments in low-carbon energy projects in response to a 26 percent decline in net profit for the fiscal year 2024.
With the company’s profit after tax tumbling from $21.6 billion in 2024 to $15.8 billion in 2025, TotalEnergies’ financial performance fell short of analyst expectations by nearly $1 billion.
Patrick Pouyanné, TotalEnergies’ chief executive officer ,addressed the company’s diminished financial performance in 2024, attributing it to a less favourable oil and gas landscape. In the aftermath of this decline, TotalEnergies announced a reduction in low-carbon energy investments by $500 million, bringing the allocation down from $5 billion to $4.5 billion.
Although TotalEnergies has long championed a commitment towards renewable energy, the company’s recent decision to scale back investment in low-carbon projects is considered a more restrained approach in response to mounting financial pressures.
Market experts have opined that TotalEnergies’ choice to trim its green energy investment portfolio could be rooted in the company’s drive for capital discipline, as returns from renewable energy ventures have been relatively weak compared to other segments of the energy market.
As the energy sector struggles to address the complexities concerning energy transition, industry observers have observed that major oil companies are navigating a delicate equilibrium between traditional fossil fuel ventures and long-term clean energy goals, with profitability concerns informing their strategic decisions.
Despite TotalEnergies’ recent decision to curb investments in low-carbon energy, the company is expected to maintain its pursuit of strategic investments in renewable energy projects that offer favourable profitability in regions where such ventures align with their long-term growth objectives.
Even as TotalEnergies prioritises a more measured investment approach in low-carbon energy projects, the company is anticipated to focus its efforts on pursuing high-margin initiatives while sustaining its core oil and gas business.