French oil and gas major TotalEnergies said on Wednesday it would reduce its investments in low-carbon energy as it posted a sharp drop in net profit for 2024.

The group said its after-tax profit sank 26 percent to $15.8 billion as energy prices have fallen and refining margins declined sharply.

The figure was around $1 billion lower than forecast by analysts surveyed by Bloomberg and financial data firm FactSet.

“The oil and gas landscape was less favourable (in 2024),” TotalEnergies chief executive Patrick Poyanne told reporters.

The company said it would reduce its investments in low-carbon energy, mainly for electricity, by $500 million — from $5 million to $4.5 million.