France's TotalEnergies announces record profits of €18bn, higher payout for shareholders

The French fossil fuel exploitation multinational, TotalEnergies, said on Wednesday that high oil and gas prices had bolstered its net profit to a record 18 billion euros in 2022. The company has announced higher dividend payments for shareholders.

The TotalEnergies oil refinery and depot at Donges, western France. Greenpeace France has criticised the company for grossly underreporting its carbon footprint. © Jeremias Gonzalez/AP

The exceptional level of profit, a 28 percent increase on 2021, would have been even more spectacular had it not been for the 14 billion euros lost as TotalEnergies left the Russian market in the wake of the invasion of Ukraine. 

Adjusted profits for the year are estiumated at 34 billion euros, excluding exceptional charges related to the collapse of the Russian branch of the company's operation, and the partial abandonnment of exploration rights and infrastructure in the Russian Arctic. 

The surge in world oil and natural gas prices following Western sanctions on Russia was, however, a major boost for TotalEnergies.

The profits have sparked renewed debate about taxing windfall income to help fund measures to protect consumers from rampant inflation, including soaring energy prices.

Norwegian oil operation Equinor has joined Shell, BP and US rivals ExxonMobil and Chevron in announcing unprecedentedly spectacular profits as earnings are inflated by the war in Ukraine.

Greenpeace unimpresed by profits

Greenpeace France has described the TotalEnergies profit margin as "indecent" and has called for a curtailment of oil and gas exploitation, and for a supertax on "excessive profits".

The French operation's strong presence in the liquefied natural gas (LNG) market helped European nations obliged to obtain replacement supplies after Russia cut deliveries by pipeline.

"The company took full advantage of its global LNG portfolio," chief executive Patrick Pouyanne said in a statement.

TotalEnergies reported a 22 percent jump in LNG sales in the final three months of last year compared to the same period in 2021.

That helped drive an 11 percent gain in overall adjusted profits for the quarter to 7 billion euros, though Russia-related charges reduced that to 3 billion on a net basis.

The company increased final dividend payments for 2022, and said it hopes to boost returns to shareholders even further this year.

TotalEnergies has also promised to invest five billion euros in low-carbon energy sources in 2023.