TotalEnergies faces significant profit drop amid weaker market conditions

In France, on February 5, 2025, TotalEnergies reported a significant decrease in its full-year earnings for 2024 attributed to lower crude prices and weak fuel demand. The company's adjusted net income was $18.3 billion, marking a 21% decline from $23.2 billion in 2023. This drop in profits was more pronounced in the overall net income, which fell to $15.8 billion, a decrease of 26% from the previous year's $21.4 billion. The results underscore the ongoing challenges faced by major oil companies in a fluctuating energy market. Despite the decline in profits, TotalEnergies maintained a positive outlook by increasing their dividend by 7% to 3.22 euros ($3.35) per share and announcing a plan for $2 billion in share buybacks per quarter in 2025. The fourth quarter showed some positive signs with adjusted net income coming in at $4.4 billion, an increase of 8% from the previous quarter. This performance was driven by strong results in integrated liquefied natural gas (LNG) and power sectors. The company is betting heavily on the U.S. market, particularly for its LNG exports, where it holds a significant position as a leading exporter, following its acquisition of Engie's assets. The overall energy market has been under pressure due to reduced global demand and fluctuating crude prices, with Brent crude futures averaging around $80 per barrel in 2024. This situation has resulted in mixed performances across the energy sector, pushing TotalEnergies to adapt its strategies accordingly. The outlook for 2025 remains hopeful as the company expects higher gas prices and robust hydrocarbon production in the early months of the year. Analysts believe that the recent earnings results could uplift investor sentiment after what has been a series of disappointing quarterly performances. The increasing prominence of renewable energy within TotalEnergies' portfolio is also expected to contribute positively to its future growth.