- TotalEnergies leverages global portfolio to post adjusted net income of $7.6 billion in the fourth quarter 2022 and IFRS full-year net income of $20.5 billion
- TotalEnergies confirms 2023 pay-out of 35-40% for shareholders while ensuring its employees and customers share in value
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on February 7, 2023, to approve the 2022 financial statements. On the occasion, Patrick Pouyanné said:
'While down from the previous quarter highs due to uncertainties about the demand outlook, fourth quarter oil and gas prices as well as refining margins remained strong in supply-constrained markets. Benefiting from this favorable environment as well as the increase in its hydrocarbon production (+5%) and LNG sales (+22%), thanks to its unique position in Europe, TotalEnergies reported cash flow of $9.1 billion and adjusted net income of $7.6 billion. Including the $4.1 billion impairment related to the deconsolidation of Novatek at year-end 2022, IFRS net income was $3.3 billion.
In 2022, the Company generated $45.7 billion of cash flow. IFRS net income was $20.5 billion, including nearly $15 billion in provisions related to Russia (for an adjusted net income of $36.2 billion). Return on equity was 32% and return on capital employed was 28%, demonstrating the quality of its global portfolio.
The iGRP segment posted adjusted net operating income of $2.9 billion and cash flow of $3.1 billion, up 17% over the quarter, bringing annual results to $12 billion and cash flow to $11 billion. The Company took full advantage of its global LNG portfolio. The Integrated Power activity (covering the electricity and renewables business) generated $1 billion of cash flow over the year, with production of 33 TWh up 57%, and nearly 17 GW of gross renewable capacity installed at the end of 2022. In order to provide shareholders with a better understanding of the growth strategy of LNG and electricity/renewables, the Board of Directors decided that from the first quarter 2023 iGRP's results will separately report the contributions of the Integrated LNG and Integrated Power activities.
Exploration & Production posted adjusted net operating income of $3.5 billion and cash flow of $5.0 billion in the fourth quarter, raising its strong full-year contribution to the Company's cash flow to $26 billion in 2022. Two new discoveries, in Cyprus and Brazil, add to the discoveries already made in Namibia and Suriname in 2022.
Downstream achieved historic performance in 2022 with $8.9 billion in adjusted net operating income and $10.1 billion in cash flow, supported by a refinery utilization rate of 82% that fully captured high refining margins. TotalEnergies continues to grow in petrochemicals with the launch of the Amiral project, a world-class integrated complex in Saudi Arabia.
In line with the policy announced in September 2022, TotalEnergies implemented a balanced cash allocation in 2022, between shareholders (37.2% payout), investments ($16.3 billion or 36% of cash flow, including $4 billion in low-carbon energies), and deleveraging (reducing net debt by $12.2 billion, or 27% of cash flow) to end 2022 with gearing of 7%. In addition, the Company has ensured balanced profit sharing with its employees (exceptional bonus of up to one month’s salary and wage increases taking into account the inflation rate observed in the various countries) and with its customers through rebates on various energy products to mitigate the increase in energy prices. Governments have also benefited from more than $33 billion in taxes worldwide, more than double the amount in 2021, mostly paid to producing countries.
In view of the growth in structural cash flow forecast for 2023 and the share buybacks carried out in 2022 (5% of the share capital), the Board of Directors proposes to the Shareholders’ Meeting the distribution of a final 2022 dividend of €0.74/share, an increase of 6.5% for the ordinary 2022 dividend to €2.81/share, plus the special dividend of €1/share paid in December 2022. In addition, the Board of Directors confirmed a shareholder return policy for 2023 targeting a pay-out between 35-40%, which will combine an increase in interim dividends of more than 7% to €0.74/share and share buybacks of $2 billion in the first quarter.'
Highlights
Social and environmental responsibility
- Commercial rebates on electricity prices for VSEs and SMEs
- TotalEnergies ranked first in the CAC40 for investor transparency by the Forum for Responsible Investment
Integrated LNG
- Commissioning of the floating LNG regasification unit at the Lubmin terminal in Germany
- Started production on Block 10, and signed a long-term LNG contract for 0.8 Mt/y, in Oman
Integrated Power
- Acquired a stake in Brazil's leading renewable developer (Casa dos Ventos) with a portfolio of more than 6 GW of onshore solar and wind projects in Brazil
- Total Eren signed an agreement for development of 1 GW wind project in Kazakhstan
- Start-up of 800 MW Al Kharsaah solar power plant in Qatar
- 50% Farm-down of a 234 MW portfolio of renewable projects, in France
Upstream
- Withdrawal of TotalEnergies representatives from Board of Directors of PAO Novatek and deconsolidation of the Company's 19.4% stake in Novatek
- Acquired additional 4.08% interest in the Waha concessions in Libya
- Divested the Dunga field in Kazakhstan
- Acquisition by TotalEnergies EP Canada, ahead of its spin-off, of an additional interest in Fort Hills
- Launched Lapa South-West project in Brazil
- Gas discovery on the Zeus-1 well, located on Block 6 in Cyprus
- Oil discovery in the Sépia area, Brazil
- Entry to the Agua Marinha offshore exploration block in Brazil
- Launched exploration activities on Block 9 for drilling in 2023, in Lebanon
Downstream and new molecules
- Final investment decision for the Amiral Petrochemical Complex with Aramco, Saudi Arabia
- Launch with Air Liquide of a renewable and low-carbon hydrogen production project on the Grandpuits platform in France
- Start-up of BioBéarn, the largest biogas production unit in France with a capacity of 160 GWh
- Memorandum of Understanding with Air France-KLM for the supply of 0.8 Mt of SAF over 10 years
- Creation of a joint venture with Air Liquide to develop a network of more than 100 hydrogen stations for trucks in Europe
Decarbonization
- Memorandum of understanding with Holcim for a pilot project to decarbonize a cement plant in Belgium
- Entry on two permits for CO2 storage in the North Sea, Denmark
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Source: TotalEnergies
