Yahoo Finance TotalEnergies: Fourth Quarter and Full-year 2022 Results
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 $20.5 billion
TotalEnergies confirms 2023 pay-out of 35-40% for shareholders while ensuring its employees and customers share in value
PARIS, February 08, 2023--(BUSINESS WIRE)--Regulatory News:
TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):
4Q22 | Change | 2022 | Change | |
Net income (TotalEnergies share) (B$) | 3.3 | -44% | 20.5 | +28% |
Adjusted net income (TotalEnergies share)(1) | ||||
- in billions of dollars (B$) | 7.6 | +11% | 36.2 | x2 |
- in dollars per share | 2.97 | +17% | 13.94 | x2.1 |
Adjusted EBITDA(1) (B$) | 16.0 | +12% | 71.6 | +69% |
DACF(1) (B$) | 9.4 | -4% | 47.0 | +53% |
Cash Flow from operations (B$) | 5.6 | -52% | 47.4 | +56% |
Net-debt-to-capital ratio(2) of 7.0% at December 31, 2022 vs. 4.0% at September 30, 2022 | ||||
Final 2022 dividend set at 0.74 €/share | ||||
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. »
1. Highlights(3)
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
2. Key figures from TotalEnergies’ consolidated financial statements(4)
4Q22 | 3Q22 | 4Q21 | 4Q22 | In millions of dollars, except effective tax rate, | 2022 | 2021 | 2022 |
15,997 | 19,420 | 14,285 | +12% | Adjusted EBITDA (5) | 71,578 | 42,302 | +69% |
8,238 | 10,279 | 7,316 | +13% | Adjusted net operating income from business segments | 38,475 | 20,209 | +90% |
3,528 | 4,217 | 3,525 | - | Exploration & Production | 17,479 | 10,439 | +67% |
2,889 | 3,649 | 2,759 | +5% | Integrated Gas, Renewables & Power | 12,144 | 6,243 | +95% |
1,487 | 1,935 | 553 | x2.7 | Refining & Chemicals | 7,302 | 1,909 | x3.8 |
334 | 478 | 479 | -30% | Marketing & Services | 1,550 | 1,618 | -4% |
1,873 | 2,576 | 1,787 | +5% | Contribution of equity affiliates to adjusted net income | 8,254 | 4,190 | +97% |
41.4% | 44.1% | 40.2% | Effective tax rate (6) | 40.9% | 37.9% | ||
7,561 | 9,863 | 6,825 | +11% | Adjusted net income (TotalEnergies share) | 36,197 | 18,060 | x2 |
2.97 | 3.83 | 2.55 | +17% | Adjusted fully-diluted earnings per share (dollars) (7) | 13.94 | 6.68 | x2.1 |
2.93 | 3.78 | 2.19 | +34% | Adjusted fully-diluted earnings per share (euros)* | 13.24 | 5.65 | x2.3 |
2,522 | 2,560 | 2,644 | -5% | Fully-diluted weighted-average shares (millions) | 2,572 | 2,647 | -3% |
3,264 | 6,626 | 5,837 | -44% | Net income (TotalEnergies share) | 20,526 | 16,032 | +28% |
3,935 | 3,116 | 4,681 | -16% | Organic investments (8) | 11,852 | 12,675 | -6% |
(133) | 1,587 | (396) | ns | Net acquisitions (9) | 4,451 | 632 | x7 |
3,802 | 4,703 | 4,285 | -11% | Net investments (10) | 16,303 | 13,307 | +23% |
9,135 | 11,736 | 9,361 | -2% | Operating cash flow before working capital changes (11) | 45,729 | 29,140 | +57% |
9,361 | 12,040 | 9,759 | -4% | Operating cash flow before working capital changes | 47,025 | 30,660 | +53% |
5,618 | 17,848 | 11,621 | -52% | Cash flow from operations | 47,367 | 30,410 | +56% |
* Average €-$ exchange rate: 1.0205 in the fourth quarter 2022 and 1.0530 in 2022.
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment* – liquids and gas price realizations, refining margins
4Q22 | 3Q22 | 4Q21 | 4Q22 | 2022 | 2021 | 2022 | |
88.8 | 100.8 | 79.8 | +11% | Brent ($/b) | 101.3 | 70.9 | +43% |
6.1 | 7.9 | 4.8 | +26% | Henry Hub ($/Mbtu) | 6.5 | 3.7 | +76% |
32.3 | 42.5 | 32.8 | -2% | NBP ($/Mbtu) | 32.4 | 16.4 | +97% |
30.5 | 46.5 | 35.0 | -13% | JKM ($/Mbtu) | 33.8 | 18.5 | +83% |
80.6 | 93.6 | 72.6 | +11% | Average price of liquids ($/b) | 91.3 | 65.0 | +41% |
12.74 | 16.83 | 11.38 | +12% | Average price of gas ($/Mbtu) | 13.15 | 6.60 | +99% |
14.83 | 21.51 | 13.12 | +13% | Average price of LNG ($/Mbtu) | 15.90 | 8.80 | +81% |
73.6 | 99.2 | 16.7 | x4.4 | Variable cost margin - Refining Europe, VCM ($/t)** | 94.1 | 10.5 | x9 |
* The indicators are shown on page 23.
** This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons).
3.2 Greenhouse gas emissions(13)
4Q22 | 3Q22 | 4Q21 | 4Q22 | GHG emissions (MtCO2e) | 2022 | 2021 | 2022 |
10.1 | 10.3 | 9.9 | +2% | Scope 1+2 from operated facilities (14) | 39.7 | 37.0 | +7% |
8.3 | 8.2 | 8.5 | -2% | of which Oil & Gas | 32.5 | 33.1 | -2% |
1.8 | 2.1 | 1.4 | +24% | of which CCGT | 7.2 | 3.8 | +86% |
14.7 | 14.0 | - | - | Scope 1+2 - equity share | 56.1 | 53.7 | +4% |
107 | 90 | 108 | -1% | Scope 3 from Oil, Biofuels & Gas Worldwide (15) | 389 | 400 | -3% |
58 | 65 | 75 | -22% | of which Scope 3 Oil Worldwide (16) | 254 | 285 | -11% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
Excluding Covid-19 effect for emissions data from 2Q20 through 2Q22.
4Q22 | 3Q22 | 4Q21 | 4Q22 | Methane emissions (ktCH4) | 2022 | 2021 | 2022 |
11 | 10 | 12 | -8% | Methane emissions from operated facilities | 42 | 49 | -14% |
10 | 14 | - | - | Methane emissions - equity share | 47 | 51 | -8% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
The evolution of Scope 1+2 emissions of operated installations in 2022 is mainly due to the increased use of gas-fired power plants (7.2 Mt in 2022 versus 3.8 Mt in 2021), in the context of lower availability of nuclear power plants in France, as well as the start-up of the Landivisiau power plant. Conversely, emissions from Oil & Gas activities fell by 2%.
3.3 Production*
4Q22 | 3Q22 | 4Q21 | 4Q22 | Hydrocarbon production | 2022 | 2021 | 2022 |
2,812 | 2,669 | 2,852 | -1% | Hydrocarbon production (kboe/d) | 2,765 | 2,819 | -2% |
1,357 | 1,298 | 1,278 | +6% | Oil (including bitumen) (kb/d) | 1,307 | 1,274 | +3% |
1,455 | 1,371 | 1,574 | -8% | Gas (including condensates and associated NGL) (kboe/d) | 1,458 | 1,545 | -6% |
2,812 | 2,669 | 2,852 | -1% | Hydrocarbon production (kboe/d) | 2,765 | 2,819 | -2% |
1,570 | 1,494 | 1,509 | +4% | Liquids (kb/d) | 1,519 | 1,500 | +1% |
6,681 | 6,367 | 7,328 | -9% | Gas (Mcf/d) | 6,759 | 7,203 | -6% |
* Company production = E&P production + iGRP production.
Hydrocarbon production was 2,812 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter of 2022, up 5% quarter-on-quarter, benefiting from projects ramp-up (Mero 1 in Brazil, Ikike in Nigeria), resumption of production from Kashagan in Kazakhstan, lower planned maintenance (notably on Ichthys in Australia), and despite the disposal of Termokarstovoye, in Russia.
Hydrocarbon production was 2,765 kboe/d in 2022, down 2% year-on-year, comprised of:
+3% due to start-ups and ramp-ups, notably CLOV Phase 2 and Zinia Phase 2 in Angola, Mero 1 in Brazil and Ikike in Nigeria,
+2% due to the increase in OPEC+ production quotas,
-3% portfolio effect, notably related to the end of the operating licenses for Qatargas 1 and Bongkot North in Thailand, as well as the effective withdrawal from Myanmar, the exit from Termokarstovoye and Kharyaga in Russia, partially offset by the entry into the Sépia and Atapu producing fields in Brazil,
-1% due to security-related production cuts in Libya and Nigeria,
-1% due to price effect,
-2% due to the natural decline of the fields.
4. Analysis of business segments
4.1 Integrated Gas, Renewables & Power (iGRP)
4.1.1 iGRP Results
4Q22 | 3Q22 | 4Q21 | 4Q22 | In millions of dollars | 2022 | 2021 | 2022 |
2,889 | 3,649 | 2,759 | +5% | Adjusted net operating income* | 12,144 | 6,243 | +95% |
1,301 | 1,888 | 1,321 | -2% | including adjusted income from equity affiliates | 5,838 | 2,696 | x2.2 |
650 | 653 | 1,190 | -45% | Organic investments | 1,904 | 3,341 | -43% |
(211) | 1,718 | 47 | ns | Net acquisitions | 2,089 | 1,165 | +79% |
439 | 2,371 | 1,237 | -65% | Net investments | 3,993 | 4,506 | -11% |
3,127 | 2,683 | 2,440 | +28% | Operating cash flow before working capital changes ** | 10,754 | 6,124 | +76% |
995 | 4,390 | (57) | ns | Cash flow from operations *** | 9,670 | 827 | x11.7 |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects.
*** Excluding financial charges, except those related to leases.
In the fourth quarter 2022:
iGRP adjusted net operating income was $2,889 million, up 5% year-on-year, mainly due to the growing contribution of the Integrated Power business,
iGRP operating cash flow before working capital changes was $3,127 million, up 28% year-on-year, mainly due to the performance of the Integrated LNG business, which benefited from higher prices and the growing contribution of the Integrated Power business,
working capital increased during the quarter, taking into account margin calls in gas and power supply activities.
Full-year 2022:
iGRP's adjusted net operating income was $12,144 million, up 95% year-on-year, thanks to its integrated LNG portfolio, in particular its regasification capacity in Europe, which positioned it to capture the benefit of the favorable pricing environment, and thanks to the growth of the Integrated Power business,
iGRP operating cash flow before working capital changes was $10,754 million in 2022, up 76% year-on-year, for the same reasons.
Starting in the first quarter of 2023, iGRP results will be presented in two segments:
Integrated LNG covering LNG production and trading activities as well as biogas and hydrogen activities,
Integrated Power covering electricity generation, storage, trading, and B2B B2C gas and power marketing activities.
4.1.2 Integrated LNG
4Q22 | 3Q22 | 4Q21 | 4Q22 | Hydrocarbon production for LNG | 2022 | 2021 | 2022 |
503 | 418 | 562 | -11% | iGRP (kboe/d) | 469 | 529 | -11% |
58 | 40 | 68 | -14% | Liquids (kb/d) | 53 | 63 | -16% |
2,420 | 2,067 | 2,697 | -10% | Gas (Mcf/d) | 2,267 | 2,541 | -11% |
4Q22 | 3Q22 | 4Q21 | 4Q22 | Liquefied Natural Gas in Mt | 2022 | 2021 | 2022 |
12.7 | 10.4 | 11.6 | +10% | Overall LNG sales | 48.1 | 42.0 | +15% |
4.4 | 4.0 | 4.6 | -4% | incl. Sales from equity production* | 17.0 | 17.4 | -2% |
11.4 | 9.2 | 10.1 | +13% | incl. Sales by TotalEnergies from equity production and third party purchases | 42.8 | 35.1 | +22% |
* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.
LNG production was 4.4 Mt in the fourth quarter, up 10% from the previous quarter, benefiting from a full quarter of production from Ichthys LNG in Australia after a planned maintenance in the third quarter. Production declined by 2% over the year, despite the restart of Snøhvit, Norway, in the second quarter, due to the end of the Qatargas 1 operating license and supply issues at Nigeria LNG.
Total LNG sales were up 22% in the quarter and 15% in the year, supported by strong LNG demand in Europe.
Adjusted net operating income for Integrated LNG was $11.2 billion in 2022, double the $5.6 billion contribution in 2021, as the integrated LNG portfolio, in particular its regasification capacity in Europe, was well-positioned to capture the benefit of the favorable pricing environment.
Cash flow from Integrated LNG was $9.8 billion in 2022, up nearly 80% from the $5.5 billion contribution in 2021, for the same reason.
4.1.3 Integrated Power
4Q22 | 3Q22 | 4Q21 | 4Q22 | Integrated Power | 2022 | 2021 | 2022 |
69.0 | 67.8 | 43.0 | +61% | Portfolio of renewable power generation gross capacity | 69.0 | 43.0 | +61% |
16.8 | 16.0 | 10.3 | +64% | o/w installed capacity | 16.8 | 10.3 | +64% |
6.1 | 5.4 | 6.5 | -6% | o/w capacity in construction | 6.1 | 6.5 | -6% |
46.0 | 46.4 | 26.2 | +76% | o/w capacity in development | 46.0 | 26.2 | +76% |
33.4 | 33.9 | 28.0 | +19% | Gross renewables capacity with PPA (GW) (1),(2),(3) | 33.4 | 28.0 | +19% |
45.5 | 45.2 | 31.7 | +43% | Portfolio of renewable power generation net capacity | 45.5 | 31.7 | +43% |
7.7 | 7.4 | 5.1 | +50% | o/w installed capacity | 7.7 | 5.1 | +50% |
4.1 | 3.5 | 4.6 | -10% | o/w capacity in construction | 4.1 | 4.6 | -10% |
33.6 | 34.2 | 22.0 | +53% | o/w capacity in development | 33.6 | 22.0 | +53% |
9.4 | 8.5 | 6.7 | +42% | Net power production (TWh) (4) | 33.2 | 21.2 | +57% |
3.3 | 2.4 | 1.9 | +74% | incl. power production from renewables | 10.4 | 6.8 | +53% |
6.1 | 6.3 ... |
