Fourth quarter and full-year 2022 results

TotalEnergies confirms 2023 pay-out of 35-40% for shareholders while ensuring its employees and customers share in value

Paris, February 8, 2023 – The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné,
met on February 7, 2023, to approve the 2022 financial statements. On the occasion, Patrick Pouyanné said:“While down from the previous quarter highs due to uncertainties about the demand outlook, fourth quarter oil and gas prices as well as refining margins remained strong in supply-constrained markets. Benefiting from this favorable environment as well as the increase in its hydrocarbon production (+5%) and LNG sales (+22%), thanks to its unique position in Europe, TotalEnergies reported cash flow of $9.1 billion and adjusted net income of $7.6 billion. Including the $4.1 billion impairment related to the deconsolidation of Novatek at year-end 2022, IFRS net income was $3.3 billion.
In 2022, the Company generated $45.7 billion of cash flow. IFRS net income was $20.5 billion, including nearly $15 billion in provisions related to Russia (for an adjusted net income of $36.2 billion). Return on equity was 32% and return on capital employed was 28%, demonstrating the quality of its global portfolio.
The iGRP segment posted adjusted net operating income of $2.9 billion and cash flow of $3.1 billion, up 17% over the quarter, bringing annual results to $12 billion and cash flow to $11 billion. The Company took full advantage of its global LNG portfolio. The Integrated Power activity (covering the electricity and renewables business) generated $1billion of cash flow over the year, with production of 33 TWh up 57%, and nearly 17 GW of gross renewable capacity installed at the end of 2022. In order to provide shareholders with a better understanding of the growth strategy of LNG and electricity/renewables, the Board of Directors decided that from the first quarter 2023 iGRP’s results will separately report the contributions of the Integrated LNG and Integrated Power activities.
Exploration & Production posted adjusted net operating income of $3.5 billion and cash flow of $5.0 billion in the fourth quarter, raising its strong full-year contribution to the Company’s cash flow to $26 billion in 2022. Two new discoveries,in Cyprus and Brazil, add to the discoveries already made in Namibia and Suriname in 2022.
Downstream achieved historic performance in 2022 with $8.9 billion in adjusted net operating income and $10.1 billion in cash flow, supported by a refinery utilization rate of 82% that fully captured high refining margins.
TotalEnergies continues to grow in petrochemicals with the launch of the Amiral project, a world-class integrated complex in Saudi Arabia.
In line with the policy announced in September 2022, TotalEnergies implemented a balanced cash allocation in 2022,between shareholders (37.2% payout), investments ($16.3 billion or 36% of cash flow, including $4 billion in low-carbon energies), and deleveraging (reducing net debt by $12.2 billion, or 27% of cash flow) to end 2022 with gearing of 7%. In addition, the Company has ensured balanced profit sharing with its employees (exceptional bonus of up to one month’s salary* and wage increases taking into account the inflation rate observed in the various countries) and with its customers through rebates on various energy products to mitigate the increase in energy prices. Governments have also benefited from more than $33 billion in taxes worldwide, more than double the amount in 2021, mostly paid
to producing countries,
(1) Definition on page 3.
(2) Excluding leases.
* Payment, capped for high salaries, to employees of all fully owned companies and of companies in which TotalEnergies holds more than 50%, subject
to agreement by their governing bodies.
4Q22 Change
vs 4Q21 2022 Change
vs 2021
Net income (TotalEnergies share) (B$) 3.3 -44% 20.5 +28%
Adjusted net income (TotalEnergies share)(1)
– in billions of dollars (B$) 7.6 +11% 36.2 x2
– in dollars per share 2.97 +17% 13.94 x2.1
Adjusted EBITDA(1) (B$) 16.0 +12% 71.6 +69%
DACF(1) (B$) 9.4 -4% 47.0 +53%
Cash Flow from operations (B$) 5.6 -52% 47.4 +56%
Net-debt-to-capital ratio(2) of 7.0% at December 31, 2022 vs. 4.0% at September 30, 2022
Final 2022 dividend set at 0.74 €/share1

In view of the growth in structural cash flow forecast for 2023 and the share buybacks carried out in 2022 (5%of the share capital), the Board of Directors proposes to the Shareholders’ Meeting the distribution of a final 2022 dividend of €0.74/share, an increase of 6.5% for the ordinary 2022 dividend to €2.81/share, plus the special dividend of €1/share paid in December 2022. In addition, the Board of Directors confirmed a shareholder return policy for 2023 targeting a pay-out between 35-40%, which will combine an increase in interim dividends of more than 7% to €0.74/share and share buybacks of $2 billion in the first quarter. »