TotalEnergies has disclosed its main achievements in its renewable energy business for the second quarter of 2024.
The company’s gross installed renewable power generation capacity reached 24.0 GW by the end of Q2 2024, marking a 0.5 GW increase from the previous quarter. This includes 0.2 GW installations each in the United States and India.
Despite a 5 percent quarter-to-quarter drop in net power production to 9.1 TWh, driven by lower demand for flexible gas assets in Europe, renewable energy production rose by 13 percent.
Financial Activities and Investments
Acquisitions:
$544 million in Q2 2024, mainly for acquiring a 20 percent stake in the Dorado gas field in the U.S. and German renewable energy aggregator Quadra Energy.
$1,618 million in H1 2024, covering the aforementioned acquisitions and the purchase of 1.5 GW flexible gas capacity in Texas, battery storage developer Kyon in Germany, and Talos Low Carbon Solutions in the U.S.
TotalEnergies, according to the below chart, produces significant amount of power from renewable energy sources such solar and wind in the following countries. TotalEnergies has renewable energy presence in France, Africa, Middle East, North America, South America and India.
TotalEnergies said it has renewable energy-based power generation capacity of 2 GW in France, 2.7 GW in rest of Europe, 0.1 GW in Africa, 1.2 GW in the Middle East, 8.1 GW in North America, 1.6 GW in South America, 6.5 GW in India and 1.8 GW in Asia Pacific.
Divestments:
$324 million in Q2 2024, primarily from the farmdown of the Seagreen offshore wind farm in the UK and selling petrochemical assets in Lavera, France.
$1,898 million in H1 2024, including the closing of a retail network transaction with Alimentation Couche-Tard in Belgium, Luxembourg, and the Netherlands, and selling a 15 percent stake in Absheron, Azerbaijan.
TotalEnergies maintains its net investment guidance at $17-$18 billion for the year.
Earnings and Market Performance
French oil major TotalEnergies reported a 6 percent decline in second-quarter earnings, falling to $4.7 billion from $4.96 billion the previous year and $5.1 billion in the first quarter. The company attributed this to lower refined product and gas sales and declining European refining margins.
Earnings have decreased from the record highs of 2022, driven by an energy price spike following Russia’s invasion of Ukraine, but remain above pre-pandemic levels due to rising demand, especially for seaborne liquefied natural gas (LNG).
TotalEnergies’ oil production income rose 14 percent year-on-year, reflecting higher crude prices, while earnings from refining and chemicals fell 36 percent and the integrated LNG business dropped 13 percent.
The company cited subdued diesel demand in Europe and lower prices as market volatility from the Russian supply disruption normalized. Its average refining margin was $44.90 per metric ton, a 37 percent decline from Q1 2024 but slightly higher than the previous year.
Baburajan Kizhakedath