TotalEnergies board reaffirms support for multi-energy strategy

French firm also backing Patrick Pouyanne to continue as chairman and chief executive

TotalEnergies is pursuing its ambition to become a major player in the energy transition. Reuters

The board of TotalEnergies has reaffirmed its support for the company’s multi-energy strategy, focusing on oil and gas assets with low emissions and diversification into renewables, amid energy transition efforts globally.

"Thanks to refocusing the oil and gas portfolio on assets and projects with low breakeven and low greenhouse gas emissions, and to the diversification into electricity, notably renewable ... the company is in a very favourable position to take advantage of changing energy markets and prices," TotalEnergies said in a statement.

The French energy major added that with a breakeven oil price anchored below $25 per barrel, it is a much more "efficient and profitable company today than it was 10 years ago".

The board also backed Patrick Pouyanne to continue as the company’s chairman and chief executive and drive its energy strategy.

“Since 2014, Patrick has done an extraordinary job leading TotalEnergies in a complex environment, delivering outstanding financial results and engaging the company in the energy transition quicker and stronger than its peers,” said Jacques Aschenbroich, lead independent director of the company.

“The board unanimously looks forward to his continued leadership and his strategic vision to continue TotalEnergies’ transition.”

The company said it benefits from a "fortress balance sheet" and is "positioned to both implement its transition strategy and to guarantee an attractive shareholder return policy".

It is "therefore pursuing its ambition to become a major player in the energy transition" and aims to become carbon neutral in 2050.

The company aims to reduce "scope 1+2 emissions" from its oil and gas operations by 40 per cent by 2030.

It has also set targets to reduce methane emissions by 80 per cent between 2020 and 2030.

TotalEnergies has already reduced the carbon intensity of energy products sold to its customers by 12 per cent in 2022 compared with 2015, and plans to reduce it by 25 per cent by 2030.

TotalEnergies chief executive Patrick Pouyanne. Reuters

TotalEnergies reported a 28 per cent annual drop in its net income to $4 billion in the second quarter of 2023 on lower adjusted net operating income from different business segments, including exploration and production, integrated LNG and refining and chemicals, according to the financial statement on its website.

It posted an adjusted net income of $5 billion during the quarter, down from $9.7 billion in the same period last year.

The European energy major continued to boost its investments across the globe. Earlier this month, TotalEnergies and a subsidiary of India’s Adani Group agreed to form a joint venture comprising solar and wind power assets with a capacity of 1,050 megawatts.

The portfolio of the new venture, equally owned by the two companies, will include operational projects as well as assets under construction or in the development phase, it said this week.

Adani Green Energy will contribute the assets to the new company, while TotalEnergies will invest $300 million in equity to support their development.

Earlier, in April, Iraq reached an agreement with TotalEnergies to hold a 30 per cent stake in the company's $27 billion worth of projects in the country.