TotalEnergies 4Q23 Results | Climate Transition Analysis

TotalEnergies is in a balancing act, expanding into electricity to adapt to electrification while simultaneously refining its oil and gas operations to stay competitive in a declining industry.

Key findings

01

Integrated Power delivered a strong net operating income of $1.85bn (ROACE 9.8%), up 90% from FY22. The segment, functioning similarly to a utilities company, engages in renewable and gas power generation, retail marketing (business & customer), and power trading.

02

During the year, 35% of FY23 capex was allocated to Integrated Power and low carbon molecules, surpassing the 33% target ($4.95bn Integrated power, ~$0.95bn low carbon molecules), with the company again guiding towards 33% in FY24. 

03

There was no change to the strategy for oil and gas, with TotalEnergies confirming its production target of 2-3% CAGR to 2028 (~16% on FY23) and continuing divestment of higher cost assets ($2.7bn divestment in FY23) including its Canadian oil sands business.

04

The company is on track to reach its Net Carbon Intensity target of -15% by FY25 (-13% at FY23). Scope 1 and 2 emissions declined -13% from FY22, and absolute scope 3 emissions are down 9% from FY22 for oil, biofuels and gas sold worldwide.