French conglomerate TotalEnergies announced its highest-ever profit for the year 2023, driven by strong performances in its liquefied natural gas and electricity sectors.
The net profit reached $21.4 billion, marking a four percent increase from the previous year. This impressive financial result positioned TotalEnergies ahead of its global counterparts such as Shell, BP, Exxon-Mobil, and Chevron, all of which reported lower earnings due to softer energy prices.
However, TotalEnergies faced a significant exceptional charge of $15 billion in 2022 due to its withdrawal from Russia following the country’s invasion of Ukraine. Excluding these one-off charges, the adjusted net profit experienced a sharp decline of 36 percent to $23.2 billion.
Despite the challenging energy market characterized by a 10 percent drop in oil and gas prices compared to 2022, Chairman Patrick Pouyanne described the company’s performance as “robust.” He emphasized that hydrocarbons had delivered strong results.
Nevertheless, the 2023 net profit figure fell short of financial analysts’ expectations, leading to a 1.5 percent decrease in the company’s share price in early Paris stock exchange trading.
TotalEnergies has been diversifying towards low-carbon electricity production but faces criticism from environmental groups for its continued investment in fossil fuels due to their climate impact. The company is involved in controversial projects in Uganda and Tanzania, facing legal challenges over its land acquisition practices.
Despite these controversies, TotalEnergies is proceeding with its Tilenga drilling project in Uganda and the East African Crude Oil Pipeline (EACOP) in Tanzania. These projects have sparked concerns among local communities and environmentalists about their impact on fragile ecosystems.
TotalEnergies
TotalEnergies defends its involvement in such projects, citing the need to meet global energy demand while highlighting its efforts to transition to low-carbon energy sources like solar and wind.
Additionally, the company proposed a 7.1 percent increase in its annual dividend payout to shareholders.
Source: guardian.ng
