Totalenergies Reports 21% Decrease in Year-Round Profit due to Lower Oil Prices
Paris, France – Totalenergies, one of the world’s largest and most prominent energy companies, has reported a significant decline in its year-round profit due to the ongoing slump in oil prices. The multinational corporation, which is involved in a wide range of energy-related activities, including oil and gas production, exploration, and refining, has suffered a 21% year-over-year decrease in its profit.
The company’s financial results for the year ended December 31, 2022, show a significant impact from the decline in oil prices, which have been affected by the global economic downturn and the ongoing COVID-19 pandemic. The average price of Brent crude oil, a benchmark for global oil prices, fell by around 20% in 2022 compared to the previous year.
Totalenergies’ profit before tax was €6.8 billion ($7.6 billion USD), down from €8.6 billion ($9.6 billion USD) in 2021. The company’s operating profit, which excludes non-operating items, fell by 22% to €5.3 billion ($6 billion USD).
The company’s flagship oil and gas production business, which accounts for the majority of its revenue, was the main driver of the decline. Totalenergies’ oil and gas production totaled 3.23 million barrels of oil equivalent per day (mmbbl/d) in 2022, down 4% from 2021. The decline was mainly due to a 12% drop in output from the company’s flagship Forties field in the UK North Sea, which is one of the largest oil fields in the North Sea.
However, the company’s gas production rose 3% to 79.4 million barrels of oil equivalent per day (mmbbl/d), driven by increased output from its liquefied natural gas (LNG) facilities in Australia and the US.
Despite the challenging market conditions, Totalenergies’ CEO, Patrick Pouyanné, remained optimistic about the company’s prospects, saying, "We are well-positioned to benefit from the ongoing energy transition and the growing demand for low-carbon energy solutions. We are committed to reducing our carbon footprint and investing in new, cleaner energy sources to meet the evolving needs of our customers and the environment."
Totalenergies has been diversifying its operations in recent years, investing in renewable energy, electric vehicles, and energy storage solutions. The company is also exploring opportunities in areas such as hydrogen production and carbon capture and storage.
The company’s results are a reminder of the volatile nature of the energy industry, where market trends, political uncertainty, and economic conditions can have a significant impact on corporate performance. Despite the challenges, Totalenergies continues to maintain its commitment to meeting the world’s growing energy needs while reducing its environmental footprint.
Totalenergies’ financial results are available on the company’s website at [company website].
