- TotalEnergies delivers robust results in line with its objectives and confirms the relevance of its strategy in an uncertain environment
- 7.1% ordinary dividend increase - 46% Payout
- 19% ROACE in 2023, at the top of the majors
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on February 6, 2024, to approve the fourth quarter 2023 financial statements. On the occasion, Patrick Pouyanné said:
'In an uncertain environment, TotalEnergies’ balanced transition strategy, which combines growth in Oil & Gas, in particular in LNG, and Integrated Power, delivered strong results in 2023, in line with its objectives. During the fourth quarter, TotalEnergies generated adjusted net income of $5.2 billion and cash flow of $8.5 billion. IFRS net income was $5.1 billion.
In 2023 TotalEnergies reported adjusted net income of $23.2 billion and cash flow of $35.9 billion. 2023 IFRS net income was $21.4 billion (€19.8 billion), up 4% year-on-year. This year the Company once again achieved top tier 20% return on equity and 19% return on average capital employed. TotalEnergies invested $16.8 billion, including 35% for low-carbon energies mainly in power. Ordinary dividends increased by 7.1% and the Company completed $9 billion in buybacks of its shares, of which $1.5 billion was linked to the Canadian asset disposals. The Company further reduced net debt, achieving 5% gearing, including a $5 billion positive contribution of working capital. Payout increased to an attractive 46.0% in 2023. In addition, TotalEnergies ensured balanced profit sharing with its employees around the world and in particular in France (average 5% wage increase*, value sharing bonus* of at least €2k and support for employees in their energy transition**) and with its customers through rebates (€1.99 per liter price cap and renewal of the rebate on gas and power prices to private customers).
In the Oil & Gas business, fourth quarter production was 2.46 Mboe/d, which benefited from 7% LNG production growth quarter-to-quarter. In a softening Brent environment, Exploration & Production delivered a strong quarter, with adjusted net operating income of $2.8 billion and cash flow of $4.7 billion. Operating costs decreased to 5.1 $/boe thanks to the divestment of high-cost Canadian oil sands assets. Full-year 2023 total production increased 2% year-on-year (excluding Novatek), driven by strong LNG production growth of 9%, and Exploration & Production generated strong adjusted net operating income of $10.9 billion and cash flow of $19.1 billion. TotalEnergies’ exploration successes continued in Namibia, Suriname, and Nigeria. The Company reports a reserves replacement ratio of 141% in 2023 and a proved reserves life index of 12 years as of December 31, demonstrating the strength of its project portfolio.
Integrated LNG results remain robust with fourth quarter adjusted net operating income of $1.5 billion and cash flow of $1.8 billion, up 8% and 7% quarter-over-quarter, respectively, and driven by higher production and strengthening prices. For full year 2023, Integrated LNG generated annual adjusted net operating income of $6.2 billion and cash flow of $7.3 billion, which is lower than the exceptional results in 2022 but higher than 2021 thanks to growth in its portfolio.
During the fourth quarter, Integrated Power continued its profitable growth with higher adjusted net operating income and cash flow of $527 million and $705 million, respectively. Full-year 2023 cash flow totaled $2.2 billion, which is more than double compared to 2022. Integrated Power achieved an ROACE of 9.8% in 2023, demonstrating the relevance of the Company’s integrated business model. TotalEnergies announced several acquisitions, further enhancing its Integrated Power business model in the US and in Europe: 1.5 GW of flexible CCGT capacity in Texas and a renewable energy aggregator (9 GW) and a battery storage developer (2 GW) in Germany.
Downstream adjusted net operating income was $939 million and cash-flow was $1.7 billion in the fourth quarter, which reflects the decrease in refining margins and weak chemicals demand in Europe. Full-year 2023 adjusted net operating income of $6.1 billion and cash flow of $8.2 billion were supported by good availability in Europe and still attractive refining margins, although lower compared to historic levels in 2022.
In view of the structural cash flow growth and share buybacks executed in 2023 (5.9% of the share capital), the Board of Directors will propose at the Shareholders’ Meeting to be held on May 24, 2024, the distribution of a final 2023 dividend of €0.79/share, resulting in an increase of 7.1% for the ordinary 2023 dividend,
compared to the ordinary 2022 dividend, to €3.01/share. Furthermore, the Board of Directors confirmed a shareholder return policy for 2024 targeting >40% CFFO payout, which will combine an increase in interim dividends of 6.8% to €0.79/share and $2 billion of share buybacks in the first quarter of 2024, which will remain the base level for quarterly buybacks in the current environment.'
1. Highlights(2)
Social and environmental responsibility
- Release of the TotalEnergies Energy Outlook 2023 on the evolution of the global energy system
- COP28
- Support from TotalEnergies to the objectives of tripling the amount of renewable energies production capacity and doubling energy efficiency by 2030, as well as slashing methane emissions within that time frame.
- Membership in the Oil & Gas Decarbonization Charter (OGDC)
- Backing of the World Bank’s Global Flaring and Methane Reduction Trust Fund
- AUSEA technology sharing initiative with Petrobras (Brazil), SOCAR (Azerbaijan), Sonangol (Angola) and NNPC (Nigeria) to measure methane emissions
- Release of the third edition of the Human Rights Briefing Paper
- Launch of third-party assessment of the land acquisition program related to Tilenga and EACOP projects
- Sharing value with employees in France
- Approval of a wage agreement for 2024 to share value with employees in France (5% raise and more than 2k€ value sharing bonus) applicable to employees covered by the Common Corpus of Employee Relations Agreements (SSC)
- Commitment to support the Company’s employees with their energy transition*
Upstream
- Closing of the sale of Surmont to ConocoPhillips for up to $3.3 billion and other Canadian assets to Suncor for around $1.3 billion
- Production start-up of the second phase of the Mero field, in Brazil
- Acquisition of additional interest in Namibia block 2913B and block 2912
- Award of a new offshore exploration license in Suriname
- Launch of an innovative subsea technology to separate and reinject CO2-rich gas at the Mero field in Brazil
- Agreement with OMV to acquire 50% of SapuraOMV, an independent gas producer, in Malaysia
Downstream
- Closing of divestment of retail networks in Europe to Couche-Tard for around $3.8 billion
- Sale to Prax Group of a minority stake in Natref refinery in South Africa
Integrated LNG
- Commissioning of an LNG floating regasification terminal in the Port of Le Havre, in France
- Extension of partnership with Oman LNG by 10 years and with Qalhat LNG by 5 years
Integrated Power
- US
- Acquisition of 1.5 GW of flexible power generation capacity in Texas
- Attentive Energy One project awarded a 25-year contract to supply 1.4 GW of renewable electricity to New York and Attentive Energy Two awarded a 20-year contract to supply 1.3 GW of renewable electricity to New Jersey
- Signature with LyondellBasell of a 15 year-Power Purchase Agreement
- Europe
- Acquisition of Quadra Energy, a German renewable energy aggregator
- Acquisition of Kyon Energy, a leading German battery storage developer
- Partial farm down to PTTEP of 25.5% of the Seagreen offshore wind farm for $689 million, in the UK
- Expansion of collaboration with European Energy to develop offshore wind in three Nordic countries
- Acquisition of 200 high power charging sites from Wenea in Spain
- Acquisition of three start-ups in the electricity business as part of the TotalEnergies On program
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Source: TotalEnergies
