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TotalEnergies once again demonstrated the successful build-out of its Integrated power segment in 2Q. Adjusted net operating income for the segment was $502m, up 12% from 2Q23. The company has now surpassed earnings of $500m for the last 4 quarters for the segment.

Our view

2Q24 results once again showed that TotalEnergies’ low-carbon build-out is head and shoulders above peers, but its medium-term oil and gas growth strategy to 2030 continues to hold it back from securing the top spot of transition strategies.

TotalEnergies has a peer leading renewables pipeline and a promising Integrated Power business showing signs of profitability. However, the company has one of the most aggressive oil and gas growth strategies behind Eni, and the least ambitious emissions targets alongside Equinor compared to peers. For this quarter, investors engaging with TotalEnergies should ask for: 

1) A move away from reliance on offsets, CCS and divestments to achieve scope 1 & 2 target.

2) Guidance and ambition for the electrification of gas clients within their Integrated Power portfolio

3) Quarterly disclosures for its Low-carbon Molecules business, to track progress against its Low Carbon Energies (Integrated Power + Low-carbon Molecules) capex target of 33% group spend.

Key findings