TotalEnergies hikes dividend, buybacks on record 2022 profit

The French company said its global tax bill more than doubled to $33bn (€30bn) last year.

TotalEnergies raised its dividend and will buy back a further $2bn (€1.8bn) of shares after surging oil and gas prices lifted 2022 profit to a record $36bn (€33bn).

The French energy giant capped another stellar quarter for Big Oil, with most companies pledging more generous returns to investors while also paying down debt and in some cases boosting investment. Norway’s Equinor also raised shareholder payouts on Wednesday.

TotalEnergies’ fourth-quarter dividend will be €0.74, and increase of 7.3% from the prior period. The share buyback will be completed this quarter.

“Oil and gas prices as well as refining margins remained strong in supply-constrained markets,” CEO Patrick Pouyanne said in a statement. 

TotalEnergies was able to benefit from this favorable environment by boosting production and raising sales of liquefied natural gas by 22%, he said.

Adjusted net income was $7.5bn (€6.9bn) in the fourth quarter, 11% higher than a year earlier and in line with analyst expectations. For 2022 as a whole, profit doubled from the prior year.

TotalEnergies expects “tensions on European gas prices” to continue this year because of limited growth in LNG production and rising demand. 

Refining margins in Europe, particularly for fuels like diesel, will be supported by the effect of Europe’s embargo on Russian oil products, it said.

The company expects oil and gas production, excluding its holding in Russian LNG producer Novatek, to increase this year by 2% to 2.5m barrels equivalent a day. 

It plans to invest $16bn (€14bn) to $18bn (€16bn) in 2023, $5bn of which will go to low-carbon energy. Capital expenditure in 2022 was $16.3bn.

Surging profits, at a time when most people are suffering from a cost-of-living crisis, has put the oil industry in the cross-hairs of politicians around the world. 

TotalEnergies and its peers have already been hit with windfall taxes in the UK and Europe. 

The French company said its global tax bill more than doubled to $33bn (€30bn) last year, with most of it paid in countries where it produces oil and gas.

- Bloomberg