TotalEnergies, one of the world’s largest integrated oil and gas companies, announced a dividend increase and share buybacks after posting a record profit in 2021. The company reported a net income of €3.6 billion, an increase of 7% compared to the same period last year. TotalEnergies also announced an increase in their dividend to €1.20 per share, up from €1.10 in 2020, and plans for €4 billion in share buybacks over the next 18 months. The company also noted that it will invest €11 billion in low-carbon projects over the next five years and that it will be increasing investments in renewable energy projects.
(Bloomberg) – TotalEnergies SE increased its dividend and will buy another $2 billion worth of shares.
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The French energy giant capped off another stellar quarter for Big Oil, with most companies pledged more generous yields to investors while also paying down debt and, in some cases, stimulating investment. Norway’s Equinor ASA also increased payouts to shareholders on Wednesday.
TotalEnergies’ dividend for the fourth quarter is 74 eurocents per share, an increase of 7.3% over the same period last year. The buyback will be completed this quarter. The company’s shares fell 1.1% to 56.89 euros as of 9:05 am in Paris.
“Oil and gas prices and refining margins have remained elevated in supply-constrained markets,” Chief Executive Officer Patrick Pouyanne said in a statement. TotalEnergies was able to take advantage of this favorable environment by increasing production and sales of liquefied natural gas by 22%, he said.
Adjusted net income for the fourth quarter was $7.56 billion, up 11% year over year and in line with analyst expectations. For the full year 2022, the profit has doubled compared to the previous year.
TotalEnergies expects oil prices to remain above $80 a barrel this year and expects “European gas price tensions” to persist due to limited growth in LNG production and rising demand. Refining margins in Europe, particularly for fuels such as diesel, are being supported by the impact of the European embargo on Russian oil products, it said.
See also: TotalEnergies, BP Refining Margins Swing Before New Russia Ban
The company expects oil and gas production excluding its stake in Russian LNG producer Novatek PJSC to rise 2% this year to 2.5 million barrels of equivalent per day. It plans to invest US$16-18 billion in 2023, of which US$5 billion will go to low-carbon energy. Capital expenditures in 2022 were $16.3 billion.
Rising profits at a time when most people are suffering from a cost-of-living crisis have put the oil industry in the crosshairs of politicians around the world. TotalEnergies and its peers have already been hit by windfall taxes in the UK and Europe. The French company said its global tax burden more than doubled to $33 billion last year, most of which is paid in countries where it produces oil and gas.
(Updates with stock price in third paragraph.)
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