The massive French energy company TotalEnergies said on Wednesday that its 2023 profit hit a record-breaking $21.4 billion, up 4% from the year before. good results in its power and liquefied natural gas businesses, together with significant investments in the extraction of fossil fuels, were credited for the company’s good success, despite criticism and ongoing court challenges regarding its environmental practices.
Global rivals including Shell, BP, Exxon-Mobil, and Chevron—all of whom reported reduced profitability amid declining energy prices—were outperformed by TotalEnergies in terms of net profit. Unfortunately, the company’s $15 billion extraordinary charge from its withdrawal from Russia after that nation invaded Ukraine negatively affected its net earnings for 2022.
A significant decline in adjusted net profit was observed in 2023, with a reduction of 36% to $23.2 billion, especially in the fourth quarter when adjusted net operating income from business segments had a 31% decline. This reduction was ascribed to an average 10% decrease in the price of gas and oil in comparison to 2022, when prices were exaggerated.
The company’s share price slightly declined as a result of TotalEnergies’ 2023 net profit figure falling short of analysts’ projections despite the company’s solid financial performance. Environmental groups have continued to criticize the corporation for its prolonged investments in fossil fuels, casting a shadow over its diversification efforts towards the production of low-carbon electricity.
Court actions against TotalEnergies are still unresolved; these cases mostly concern the company’s land acquisition policies for contentious projects in Tanzania and Uganda, such as the East African Crude Oil Pipeline (EACOP) and the Tilenga drilling project. Environmentalists are concerned about these initiatives because of their possible effects on delicate ecosystems.
Critics point out that despite TotalEnergies’ focus on its commitment to moving to low-carbon production, the company’s recent comments have not placed enough attention on renewables. In spite of this, TotalEnergies has indicated that it will prioritize shareholder returns in the face of environmental problems by proposing a 7.1 percent rise in its annual dividend paid to shareholders for 2023 in addition to a $9 billion share repurchase program.
