TotalEnergies(TTE) - 2022 Q4 - Annual Report

Financial Performance - In 2022, TotalEnergies generated cash flow from operating activities of $47.4 billion and reported IFRS net income of$ 20.5 billion, with an adjusted net income of $36.2 billion, representing a return on equity of 32% and a return on capital employed of 28%[34]. - TotalEnergies reported sales of$ 280,999 million in 2022, a 36% increase compared to $205,863 million in 2021[68]. - Adjusted EBITDA for 2022 was$ 71,578 million, up 69% from $42,302 million in 2021[66]. - Net income attributable to TotalEnergies was$ 20,526 million in 2022, compared to $16,032 million in 2021, reflecting a 28% increase[66]. - Cash flow from operating activities reached$ 47,367 million in 2022, compared to $30,410 million in 2021[65]. - TotalEnergies' cash flow before working capital changes was$ 45,729 million in 2022, a 57% increase from $29,140 million in 2021[73]. - The company reported a net cash flow of$ 29,426 million in 2022, up from $15,833 million in 2021, driven by increased operating cash flow[77]. - TotalEnergies' average daily production in Russia for 2022 included 65 kb/d of liquids and 2,165 Mcf/d of natural gas, accounting for approximately 17% of its total hydrocarbon production[212][214]. Segment Performance - The integrated Gas, Renewables & Power segment reported IFRS net income of$ 9.6 billion and cash flow from operating activities of $9.7 billion, with nearly 17 GW of gross renewable capacity installed by the end of 2022[35]. - The Exploration & Production segment achieved IFRS net income of$ 5.1 billion and cash flow from operating activities of $27.7 billion, contributing$ 26.0 billion to the Company's net cash flow in 2022[36]. - Downstream reported IFRS net income of $8.2 billion and cash flow from operating activities of$ 11.8 billion, supported by a refinery utilization rate of 82%[37]. - The integrated Gas, Renewables & Power (iGRP) segment's external sales in 2022 were $48,753 million, a 59% increase from$ 30,704 million in 2021[105]. - The Exploration & Production (EP) segment's external sales in 2022 were $9,942 million, a 37% increase from$ 7,246 million in 2021, while net operating income decreased by 36% to $5,108 million[122]. - The Downstream segment's external sales reached$ 222,279 million in 2022, up 32% from $167,888 million in 2021, with adjusted net operating income increasing to$ 8,852 million[130]. - Total refinery throughput in 2022 was 1,472 kb/d, up from 1,180 kb/d in 2021, with a utilization rate of 82%[135]. Investments and Capital Expenditures - TotalEnergies plans to allocate net investments of $16-18 billion in 2023, including$ 5 billion dedicated to low-carbon energies[50]. - Total expenditures in 2022 were $19,802 million, with 54% allocated to the Exploration & Production segment, 33% to integrated Gas, Power & Renewables, 7% to Refining & Chemicals, and 6% to Marketing & Services[172]. - TotalEnergies' capital expenditures in 2022 included approximately 60% for additions to intangible assets and property, plant, and equipment[185]. Shareholder Returns - TotalEnergies confirmed a shareholder return policy for 2023 targeting a cash payout of between 35% and 40%, including a 7.2% increase in interim dividends to €0.74/share and share buybacks of$ 2 billion[51]. - Fully-diluted earnings per share rose to $7.85 in 2022 from$ 5.92 in 2021, indicating improved shareholder returns[71]. - TotalEnergies bought back 140,207,743 shares in 2022, representing 5.35% of the share capital, compared to 1.4% in 2021[71]. Market Conditions and Pricing - The average Brent price increased by 43% to $101.3/b in 2022 from$ 70.9/b in 2021[67]. - TotalEnergies' average gas price realization rose by 99% to $13.15/Mbtu in 2022 from$ 6.60/Mbtu in 2021[67]. - The variable cost margin for Refining Europe was $94.1/t in 2022, significantly higher than$ 10.5/t in 2021[67]. - The company anticipates refining margins in Europe to remain supported by the effects of the European embargo on Russian petroleum products[46]. Strategic Initiatives - TotalEnergies intends to spin off its affiliate, TotalEnergies EP Canada, by listing it on the Toronto stock exchange, retaining a 30% stake and distributing 70% of shares to shareholders[52]. - TotalEnergies has committed to halting all purchases of Russian oil and petroleum products by the end of 2022[204]. - The company has gradually suspended its activities in Russia that do not contribute to the security of Europe's energy supply[203]. Impairments and Financial Adjustments - The company recorded an impairment of $4.1 billion related to the Arctic LNG 2 project as of March 31, 2022, due to risks from international sanctions[197]. - TotalEnergies recorded a$ 3.1 billion impairment charge in Q3 2022 primarily due to the impact of international sanctions on its Novatek stake[205]. - For the full year 2022, TotalEnergies reported a total impairment charge of $14.8 billion related to its operations in Russia[209]. - The company’s total adjustments to net income in 2022 amounted to ($ 15,671) million, primarily due to impairments related to Russia and other exceptional provisions[69]. Balance Sheet and Debt Management - The company's cash and cash equivalents at the end of 2022 were $33,026 million, an increase from$ 21,342 million at the end of 2021[170]. - TotalEnergies' non-current financial debt decreased to $45,264 million at year-end 2022 from$ 49,512 million at year-end 2021[176]. - The net-debt-to-capital ratio was 7.0% as of December 31, 2022, a decrease from 15.3% at year-end 2021[183]. - Shareholders' equity at year-end 2022 was $114,570 million, slightly down from$ 114,999 million at year-end 2021[178].