TotalEnergies’ LNG performance spurred 8% growth in Q4 but annual net income fell 21% to $18.3bn due to a sharp decline in refining margins.
Integrated LNG net income and cashflow amounted to $1.4bn in Q4, up 35% and 63% respectively compared with Q3, with LNG prices above $10/mbtu. Trading was back to the level of Q4 2023, taking advantage of higher market volatility. For the full year, LNG generated adjusted net income and cashflow totalled $4.9bn.
Source: TotalEnergies
LNG highlights included the sales contract for 2Mt/y with Sinopec, over 15 years, with deliveries starting in 2028.
CEO Patrick Pouyanné said it invested $17.8bn in 2024, a third in new oil and gas projects, $4.8bn in low-carbon energies and $3.9bn in integrated power. Five major projects started up, Mero-2 and -3 in Brazil, Anchor in the US, Fenix in Argentina and Tyra in Denmark.
The company expanded its portfolio with the launch of Marsa LNG in Oman, Ubeta in Nigeria, the Sapura OMV acquisition in Malaysia and buying dry gas assets in the Eagle Ford basin in Texas, and continued to market its LNG volumes by signing several new medium-term sales contracts (6Mt/y) in Asia, mostly Brent-indexed.
Read more: TotalEnergies green lights large-scale Marsa LNG project in Oman
In October, it expanded its global presence in bunkering hubs, signing a charter contract with shipowner Ibaizabal for a new LNG) bunker vessel.
Read more: TotalEnergies boosts LNG bunkering business with new charter deal
The company launched a renewable hydrogen production project, bio H2, with Air Liquide at La Mède platform, featuring capacity of 25,000 tonnes per year, with the unit recycling co-products from the biorefinery. Hydrogen will be used to produce biodiesel and sustainable aviation fuel.
Read more: Air Liquide to build €80m hydrogen plant at TotalEnergies La Mède facility
It also acquired a 50% stake in RWE’s 795MW offshore wind farm, providing equipment to produce 40,000 tonnes of green hydrogen per year.
The oil and gas major plans to decarbonise its European refineries and will use green hydrogen produced at the OranjeWind project to replace the grey hydrogen currently powering its facilities. Last July a 15-year deal was struck with Air Products for the annual supply in Europe of 70,000 tonnes of green hydrogen starting in 2030.
In another key move in the GCC, TotalEnergies – together with Shell, Mitsui, and bp – acquired a 10% in ADNOC’s Ruwais LNG.
Read more: Shell, TotalEnergies, Mitsui, bp acquire 10% stakes in Ruwais LNG
TotalEnergies has a 10% stake in the Northern Endurance Partnership, which aims to store up to 4 mtpa of CO2.
Last week a power purchase agreement was signed with STMicroelectronics, to supply renewable electricity to sites in France. The 15-year contract represents an overall volume of 1.5 TWh.
