TotalEnergies(TTE) - 2023 Q4 - Annual Report

Financial Performance - In 2023, TotalEnergies reported net income of $21.4 billion and adjusted net income of $23.2 billion, with cash flow from operating activities of $40.7 billion[37]. - TotalEnergies' sales for 2023 were $237.1 billion, a decrease from $281.0 billion in 2022[48]. - Net income for TotalEnergies was $21,384 million in 2023, a 4% increase compared to $20,526 million in 2022[55]. - Adjusted net income decreased to $23,176 million in 2023 from $36,197 million in 2022, primarily due to lower oil prices and refining margins[56]. - TotalEnergies' cash flow from operating activities was $40,679 million in 2023, a 14% decrease from $47,367 million in 2022[57]. - Total revenues from sales were $218,945 million in 2023, down from $263,206 million in 2022[139]. - Adjusted EBITDA for 2023 was $50,030 million, significantly lower than $71,578 million in 2022[138]. Segment Performance - The Exploration & Production segment generated adjusted net operating income of $10.9 billion, with a reserves replacement ratio of 141% and a proved reserves life index of 12 years[38]. - Integrated LNG achieved annual adjusted net operating income of $6.2 billion, with cash flow from operating activities of $8.4 billion[39]. - Integrated Power's cash flow from operating activities was $3.6 billion, more than double the previous year's cash flow, supported by several acquisitions in the US and Europe[40]. - Downstream segments reported adjusted net operating income of $6.1 billion, with cash flow from operating activities of $9.9 billion[41]. - Integrated LNG reported net investments of $3,159 million in 2023, a substantial increase from $472 million in 2022, with net acquisitions rising to $1,096 million[142]. - Integrated Power's net investments reached $4,945 million in 2023, compared to $3,521 million in 2022, with net acquisitions increasing to $2,363 million[143]. Production and Sales - Hydrocarbon production was 2,483 kboe/d in 2023, a 2% increase from 2,437 kboe/d in 2022, excluding Novatek[55]. - For 2024, TotalEnergies anticipates hydrocarbon production growth of 2% compared to 2023, with expected production above 2.4 Mboe/d in Q1[45]. - The company expects LNG sales to exceed 40 Mt in 2024, with average LNG selling prices stable around $10/Mbtu in Q1[44]. - For full-year 2023, LNG sales decreased by 8% compared to 2022, mainly due to lower spot volumes related to reduced demand in Europe[91]. Dividends and Shareholder Returns - TotalEnergies plans to distribute a final 2023 dividend of €0.79/share, marking a 7.1% increase from the previous year[42]. - TotalEnergies' Board confirmed a shareholder return policy for 2024, including a 6.8% increase in interim dividends and $2 billion in share buybacks[46]. - The payout ratio for 2023 was 46.0%, compared to 37.2% in 2022[158]. - TotalEnergies repurchased 144,700,577 shares in 2023, with 142,569,920 shares allocated for cancellation at a cost of $9.00 billion[170]. Investments and Capital Expenditures - Total expenditures in 2023 were $24,860 million, up from $19,802 million in 2022, with 50% allocated to Exploration & Production[160]. - Organic investments across all sectors totaled $18,126 million in 2023, an increase from $11,852 million in 2022, highlighting a focus on growth initiatives[147]. - The net investments in Exploration & Production for 2023 totaled $7,526 million, down from $10,027 million in 2022, with net acquisitions showing a significant decline to $(2,706) million[141]. - Total cash flow used in investing activities was $16,454 million in 2023, an increase from $15,116 million in 2022[140]. Financial Position and Ratios - The gearing ratio for TotalEnergies improved to 5.0% in 2023 from 7.0% in 2022, indicating a stronger financial position[153]. - TotalEnergies' net cash flow was $19,109 million in 2023, down from $29,426 million in 2022, reflecting a decrease in cash flow from operations excluding working capital[62]. - The company’s total liabilities decreased from $36,727 million in 2022 to $34,938 million in 2023, indicating a reduction in financial obligations[155]. - The net-debt-to-capital ratio as of December 31, 2023, was 5.0%, a significant decrease from 7.0% in 2022 and 15.3% in 2021, primarily due to changes in net debt[171]. Strategic Changes and Challenges - TotalEnergies recorded a $4.1 billion impairment charge in Q4 2022 related to the deconsolidation of its stake in Novatek due to the impact of international sanctions[191]. - The company has fully impaired its Russian assets in 2022, with total impairments and provisions amounting to $(14,756) million in its net result[191]. - TotalEnergies has provisioned $1.822 billion in its accounts related to its investments in Russia as of March 31, 2022[198]. - The company initiated a contractual suspension procedure for the LNG purchase contract with Arctic LNG 2 on November 7, 2023, following US sanctions[204].