Total Energies: A Century of Innovation & Global Energy Leadership

Total Energies (Total), a global integrated energy company, celebrates 100 years in 2024. The company produces and markets a range of energies, from oil and biofuels to natural gas, green gases, renewables, and electricity. It employs 100k+ people in nearly 120 countries. Total Energies stock reflects its long-standing leadership and continued innovation in the energy sector.

Total Energies was originally created as a private company in 1924 called the Compagnie française des pétroles (CFP). The enterprise was founded as an initiative of the French government, largely driven by French Prime Minister Raymond Poincaré. Its purpose was to shape a national oil strategy.

CFP went on to acquire a 25% stake in the Turkish Petroleum Company, cementing its role as a leading company among major European oil corporations. il companies. This laid the foundation for what would eventually become Total Energies.

1927: First oil

In 1927, the first oil was discovered in the Mesopotamian deserts, a region that is today known as Iraq. The exploration and drilling campaigns, conducted by the Turkish Petroleum Company (which later became the Iraq Petroleum Company in 1928), included the participation of seven French geologists from CFP.

This led to the identification of a major oil deposit 450 meters below the surface. This discovery marked the beginning of Total Energies’ long-standing presence in the Middle East. 

CFP became a publicly traded company on the Paris stock exchange in 1929, enabling individual investors to participate in its expansion and raising the funds needed for significant investments, especially in Iraq.

The company proceeded to establish a deal with the French government to enhance its standing in the market. As part of the agreement, the government obtained a 25% Total Energies stock in CFP, which notably marked CFP’s venture into financial markets.

The importance of oil was emphasised during WW2, causing major disruption in the industry. CFP encountered operational challenges due to a large number of employees being drafted, and significant infrastructure such as ships and refineries begin damaged or destroyed. By forming an alliance with the Vichy regime in 1940, CFP and its Belgian partner Petrofina had difficulty keeping control over their assets.

Alternative fuels were developed as a result of fuel shortages, and in 1941, the Société Nationale des pétroles d’Aquitaine, which later played a key role in the formation of Elf, was established to explore hydrocarbons in southwestern France.

Total Energies Brand Launched by CFP in 1954

In 1954, the Total Energies brand was launched by CFP and the Compagnie française de raffinage to establish a distribution network and expand along the oil value chain.

Chosen for its simplicity and global appeal, the name reflected the company’s international ambitions. Independent distributors were acquired or became partners, and in 1958, Belgium’s Petrofina rebranded as Fina to enhance its global presence. In 1967, multiple ERAP group brands (La Mure, Avia, Caltex, etc) merged under the Elf name, laying the foundation for the iconic brands that later became Total Energies.

Over the course of the next few decades, notable discoveries were made in terms of fuel resources. In 1956, oil was discovered in Algeria, first at Edjeleh, then Hassi Messaoud (the largest deposit on the African continent at 1,600 km²), and then a natural gas deposit at Hassi R’Mel (the largest deposit in Africa and the second largest in the world at 2,400 km²). In 1969, considerable oil and gas reserves were discovered at Handil and Bekapai in the early 1970s.

This saw Total Indonesia become the second-largest international oil player in the country. In 1971, a large natural gas deposit—200 billion cubic meters—was discovered at Frigg.

This was followed by a natural gas and oil field at Alwyn in 1975. The companies that would later go on to become Total Energies (Compagnie française des pétroles, Petrofina, and Elf-ERAP), operators and partners in those fields, were working together in the North Sea.

In 1991, Total listed on the NYSE, boosting its international investor base from 20% to 40%.

Total Acquires Elf Aquitaine in 1999, Becoming a Global Energy Leader

In 1999, Total acquired Elf Aquitaine and the TotalFinaElf group came into being, which went on to become the world’s fourth-largest hydrocarbon producer. With 17,5k service stations worldwide and a refining capacity of 2.6 million barrels a day, it also became Europe’s number one downstream operator.

Over the course of the next 25 years, Total expanded its reach exponentially through the acquisition of companies worldwide. In 2021, Total rebranded as Total Energies, a new identity that it says, “embodies the company’s transformation into a multi-energy company (oil, gas, electricity, hydrogen, biomass, wind, solar) and its ambition to become a major player in the energy transition”.

Market capitalisation

Total is listed on the Paris Stock Exchange under the ticker symbol #TTEF. The company has a market capitalisation of €142.71 billion, with revenue amounting to €210.24 billion and a net income of €21.25 billion.

2^nd quarter 2024 results

In the second quarter of 2024, Total Energies reported adjusted net income of $4.7 billion and cash flow of $7.8 billion, contributing to a first-half total of nearly $10 billion in net income and $16 billion in cash flow.

While net income decreased by 34% compared to the first quarter, CEO Patrick Pouyanné emphasised the company’s continued strong performance, driven by its balanced transition strategy.

Despite some declines from the previous year, these results highlight the ongoing support of Total Energies’ employees and shareholders in achieving its goals.

In 2025, Total Energies is likely to continue its focus on diversifying energy solutions, with a strong emphasis on renewables, green gases, and sustainability efforts.

As global demand for clean energy grows, the company’s investments in solar, wind, and other renewable technologies could lead to significant stock growth.

The company’s strategic moves in carbon neutrality and its ongoing transition towards greener energy sources should strengthen its position in the market.

Total Energies stock is expected to reflect this transformation, with potential growth driven by increased investor confidence in its long-term sustainability goals and its ability to adapt to the global energy transition.

Additionally, any major breakthroughs in energy technologies or successful partnerships could further boost its stock performance.

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