TotalEnergies 2022 profit up 28pc to $21bn: Update

Spanish Market: Crude oil, Electricity, Natural gas, Oil products
08/02/23

Adds investment plan in paragraph 6 and tax details in paragraph 7

TotalEnergies said today its profit rose by 28pc in 2022, driven mainly by strong performances in its upstream and integrated gas and power operations.

Profit rose to $20.53bn from $16.03bn in 2021, and its cash flow from operations jumped to $47.37bn from $30.41bn. Like its European peers BP and Shell, which respectively reported record results on 7 February and on 2 February, TotalEnergies saw an outsized benefit from 2022's strong environment for energy prices.

The company's main three business segments each enjoyed very strong percentage increases to their profits. On an adjusted basis, net operating income at Exploration & Production was up by 67pc at $17.48bn, the Integrated Gas, Renewables & Power (iGRP) segment posted a 95pc increase in its profit to $12.14bn, and Refining & Chemicals' profit almost quadrupled to $7.30bn from $1.91bn in 2021.

TotalEnergies' chief executive Patrick Pouyanne said that in order for shareholders to achieve "a better understanding of the growth strategy" of the iGRP's LNG and power businesses, these will be reported separately as Integrated LNG and Integrated Power from the first quarter of 2023.

As far as the fourth quarter was concerned TotalEnergies' net income of $3.26bn was down, both compared with the previous quarter's $6.62bn and the $5.84bn in the fourth quarter of 2021. Company data show prices realised for oil and gas were down from the third quarter, with Brent averaging $88.8/bl compared with $100.8/bl. TotalEnergies reported a variable cost margin in European refining of $73.6/bl, compared with $99.2/bl in the third quarter. Pouyanne noted that oil and gas prices and refining margins, while down from previous highs, had remained "strong in supply-constrained markets".

TotalEnergies' fourth-quarter oil and gas production, at 2.81mn b/d of oil equivalent (boe/d), was 5.4pc greater than that for the third quarter. The company said production benefited from project ramp-ups and the restart of the Kashagan field in Kazakhstan.

For 2023 TotalEnergies expects its production to average 2.5mn boe/d, including output from the three main start-ups it plans for this year: Block 10 in Oman, Mero 2 in Brazil and Absheron in Azerbaijan.

The company will invest between $16bn and $18bn in 2023, with $5bn of that spent on low-carbon energies, it said.

For its 2023 quarterly dividend, TotalEnergies plans a 7pc rise to €0.74/share. It plans $2bn of share buybacks for the first quarter.

The company also said it took a $4.1bn write-down related to Russia's Novatek in the fourth quarter, after it decided no longer to equity account for its 19.4pc stake in the company in December. It set aside around $1.7bn in 2022 relating to exceptional taxes imposed by the EU, the UK and France, with $1.4bn of this accounted for in the final three months of the year.

Looking ahead, TotalEnergies noted that global demand for oil is expected to rise in 2023, albeit in an uncertain environment where a possible worldwide economic slowdown could be counterbalanced by the recovery of China.

"In this context Opec+ countries have shown their willingness to keep prices above $80/bl," it said. The company sees refining margins in Europe, particularly for distillates, continuing to be supported by the effects of the EU embargo on Russian refined products from 5 February. It expects greater demand for LNG from Europe and China in 2023.

By Jon Mainwaring

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19/12/25

Trinidad not part of US blockade of Venezuela: PM

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Mexico central bank cuts target rate to 7pc

19/12/25

Mexico central bank cuts target rate to 7pc

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Australia needs electricity carbon policy: Commission

19/12/25

Australia needs electricity carbon policy: Commission

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Viewpoint: Bitumen markets eye pockets of demand

19/12/25

Viewpoint: Bitumen markets eye pockets of demand

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W Australia's gas surplus outlook strengthens: Aemo

19/12/25

W Australia's gas surplus outlook strengthens: Aemo

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