The French major TotalEnergies generated a net profit of $21.4 billion (19.8 billion euros) in 2023, recording a new record after that of the extraordinary year of 2022.
Despite a depressed context for gas and oil prices, the 4th largest global major improved its net profit by 4% compared to 2022, thanks to “growth in hydrocarbons, in particular liquefied natural gas (LNG) and liquefied natural gas (LNG). “electricity”, underlined its CEO Patrick Pouyanné on Wednesday in the company’s results press release.
A withdrawal from its activities in Russia
This result is, however, below the forecasts of analysts, who expected between 21 and 22 billion euros in net profit. Adjusted profit, the benchmark indicator for investors, fell 36% to $23.2 billion, compared to 2022, due to its withdrawal from its activities in Russia.
The French group closed the ball on Wednesday on the annual results of the oil and gas majors, whose profits have declined against a backdrop of falling hydrocarbon prices.
The entire sector benefited in 2022 from the surge in gas and oil prices, in a market disrupted by the post-pandemic economic recovery and the Russian invasion of Ukraine.
The majors suffered from the reflux of hydrocarbons
Preceding the results of TotalEnergies, the giant Shell published last week a profit more than halved in 2023, penalized by the drop in hydrocarbon prices. The other British company, BP, and the American companies Exxon-Mobil and Chevron have also suffered from the decline in hydrocarbons.
In this bearish environment for energy, TotalEnergies held up better. While its billions in profits give rise each quarter to debates fueled by politicians and NGOs, the group has already made a point of publishing on Tuesday, the day before the publication of its results, its “contributions and commitments” for France .
He notably announced that he would pay “320 million euros in profit tax and solidarity tax on electricity for 2023”. But the group, questioned by AFP, did not specify the share of taxes on this amount.
Continuing its investments in fossil fuels
The group has diversified into renewable electricity, but it remains widely criticized for its continued investments in fossil fuels, which are harmful to the climate. In 2023, TotalEnergies notably announced projects or acquisitions in Namibia, Suriname and Brazil, and it strengthened its position in the United States in liquefied gas (LNG), an energy highly coveted by Europe which seeks to replace Russian gas.
“We are still permanently linked to the importation of liquefied natural gas into Europe,” said Patrick Pouyanné, CEO of the group which claims to be the 3rd global player in LNG, in mid-January.
In September, the group attracted further criticism by announcing that it wanted to increase its hydrocarbon production by 2 to 3% per year in the next five years, while several oil companies such as Enel, Shell and BP announced a review in 2023. falling from some of their energy transition objectives.
Under pressure from climate and human rights activists, the group is the target of several legal actions against its strategy or against its gas and oil projects, including the very controversial Tilenga/Eacop project in Uganda and Tanzania.
It maintains that these projects are still necessary to meet global demand, and argues that it also devotes a third of its investments to low-carbon energies, particularly in wind and solar power. TotalEnergies intends to maintain its target of 35 GW of renewable electricity capacity in 2025, before 100 GW in 2030, an ambitious objective.
The publication of TotalEnergies’ results will launch a special year 2024 for the group, which is celebrating its 100th anniversary in March and is expected to reappoint its CEO Patrick Pouyanné for a fourth term at its next general meeting in May.