TotalEnergies(US:TTE)2026-03-27 15:00Financial Performance - In 2025, TotalEnergies reported IFRS net income of $13.1 billion and adjusted net income of $15.6 billion, with cash flow from operating activities of $27.3 billion[41]. - TotalEnergies reported sales of $201,196 million in 2025, a decrease of 6% from $214,550 million in 2024 and a 15% decline from $237,128 million in 2023[59]. - Net income attributable to TotalEnergies shareholders was $13,127 million in 2025, down 17% from $15,758 million in 2024 and 39% from $21,384 million in 2023[68]. - Adjusted net income for TotalEnergies was $15,587 million in 2025, a decrease of 15% compared to $18,264 million in 2024[69]. - Cash flow from operating activities was $27,343 million in 2025, reflecting an 11% decrease from $30,854 million in 2024[71]. - Adjusted EBITDA for 2025 was $40,555 million, a decrease from $43,143 million in 2024[126]. - TotalEnergies' net income for 2025 was $13,127 million, down from $15,758 million in 2024, with special items affecting net income totaling $1,185 million[124]. Production and Operations - Exploration & Production segment generated adjusted net operating income of $8.4 billion, benefiting from the start-up of seven major projects, maintaining operating costs at $5/b[42]. - TotalEnergies' hydrocarbon production averaged 2,529 kboe/d in 2025, an increase of nearly 4% from 2,434 kboe/d in 2024[68]. - The company expects to increase oil and gas production by 3% in 2026, supported by new project start-ups, with hydrocarbon production expected to exceed 2.6 Mboe/d in Q1 2026[52]. - Hydrocarbon production in the Exploration & Production segment was 1,990 kboe/d in 2025, slightly increasing from 1,947 kboe/d in 2024[89]. - The Integrated LNG segment's overall LNG sales reached 43.9 million tons in 2025, compared to 39.8 million tons in 2024[96]. - The Integrated Power segment achieved an adjusted net operating income of $2,215 million in 2025, up 2% from $2,173 million in 2024[105]. Investments and Acquisitions - The company completed acquisitions totaling $3,923 million in 2025, primarily for offshore blocks in Malaysia and renewable projects[71]. - TotalEnergies' cash flow used in investing activities was $(18,131) million in 2025, compared to $(17,332) million in 2024[72]. - Total net investments for 2025 were $17,091 million, including acquisitions net of asset sales of $279 million[128]. - Net investments in Exploration & Production increased to $9,259 million in 2025, up from $8,853 million in 2024, representing a growth of 4.6%[129]. - The Marketing & Services segment's net investments were $609 million in 2025, recovering from a negative $138 million in 2024[134]. Dividends and Shareholder Returns - The Board proposed a final 2025 dividend of €0.85/share, bringing the full-year dividend to €3.40/share, a 5.6% increase from 2024[47]. - TotalEnergies bought back 122,637,294 shares in 2025, representing 5.56% of the share capital as of December 31, 2025[70]. - TotalEnergies repurchased a total of 144,700,577 shares in 2023, with a total allocation of $9.00 billion for cancellation[157]. Financial Ratios and Capital Structure - TotalEnergies anticipates cash flow above $26 billion under a scenario of $60/b Brent and $10/MBtu TTF, while maintaining a targeted gearing ratio of around 15% at end-2026[57]. - The Gearing ratio for TotalEnergies increased to 14.7% in 2025 from 8.3% in 2024, indicating a rise in financial leverage[142]. - The net-debt-to-capital ratio increased to 14.7% in 2025, up from 8.3% in 2024 and 5.0% in 2023, primarily due to changes in net debt[158]. Market Conditions and Pricing - The average Brent price decreased by 14% to $69.1/b in 2025 from $80.8/b in 2024[75]. - TotalEnergies' average liquids price realization fell by 14% to $66.2/b in 2025 from $77.1/b in 2024[75]. - The average price of LNG was $9.14 per Mbtu in 2025, down from $9.80 per Mbtu in 2024[96]. Environmental and Future Goals - TotalEnergies plans to increase overall energy production by 5% in 2026, targeting a 70% reduction in methane emissions compared to 2020[51]. - Adjusted net operating income for the company in 2025 is projected to be $17,827 million, with the highest contribution from Exploration & Production at $8,399 million[143]. Impairments and Provisions - TotalEnergies recorded a $4.1 billion impairment charge in 2022 related to the Arctic LNG 2 project due to sanctions and uncertainties[173]. - The total impact of impairments and provisions recorded in 2022 due to the Russo-Ukrainian conflict amounted to $(14,756) million in TotalEnergies' net result[186]. Tax and Regulatory Considerations - This section summarizes U.S. federal income tax and French tax consequences for U.S. Holders of TotalEnergies SE shares[227]. - The discussion does not cover Medicare tax on net investment income or U.S. federal estate or gift taxes[228].