Despite a depressed context for gas and oil prices, the TotalEnergies group improved its net profit by 4% compared to the year 2022 to 19.9 billion euros thanks to “growth in hydrocarbons, in particular liquefied natural gas (LNG) and electricity,” said the group’s CEO, Patrick Pouyanné, on Wednesday.
However, these results fell short of expectations.
A year ago, TotalEnergies published an annual profit of 19.5 billion euros despite provisions linked to its withdrawal from Russia.
This year, the energy company, like other oil companies, saw its activities decline in the fourth quarter due to the drop in gas prices on the markets.
However, “in an uncertain environment, TotalEnergies is relying on its balanced transition strategy combining growth in hydrocarbons, particularly LNG, and electricity to post solid results for the year 2023,” added Patrick Pouyanné.
Total focuses on electricity from renewable sources
In detail, the group's results obviously continue to be driven by hydrocarbon production which increased by 2% thanks to the growth of LNG.
Production of liquefied natural gas increased by 9% over the year, even if the drop in prices on international markets weighed on profitability.
Electricity activities also continue to grow.
Net electricity production increased by 1% last year and that from renewables by 82%.
This branch generated an operating profit of 1.6 billion euros, an increase of 90%.
Total indicated that it had invested “more than six billion euros” in the country since 2020, half of which was to finance the energy transition.
The group has increased its investments in renewables by 20% in 2023, including 400 million euros directly in France.
The group announced that it would pay 320 million euros in France.
Shareholders will be able to receive a dividend per share of 3.01 euros per share, an increase of 7.1% compared to the previous financial year.