TotalEnergies raises its dividend despite decline in fourth quarter 2023 – 02/07/2024 at 12:09 pm.

TotalEnergy on Wednesday published lower results for the fourth quarter of 2023 and announced an increase in its dividend, despite a new record in the group’s net profit for the full year, due to a drop in hydrocarbon prices.

The oil and gas company, which is also very present in renewable energy, is proposing a dividend of 3.01 euros per share for 2023 (+7.1%) and confirmed its intention to allocate more than 40% of its cash flow to its shareholders in 2024. .

TotalEnergies specifies that this policy will combine an increase in its interim dividend of 6.8% (to 0.79 euros per share) and a buyback of $2 billion in the first quarter, which will remain “base” on a quarterly basis in the current environment.

During the October-December period, the group reported adjusted net income of $5.2 billion (-31%), adjusted EBITDA of $11.7 billion (-27%) and production of 2.462 million barrels per day (-1%).

Analysts on average were expecting adjusted net income of $5.4 billion, according to a consensus compiled by Refinitiv.

Around 11:40 a.m., TotalEnergies shares fell 2.22% to 58.96 euros while the CAC 40 fell 0.19%. Analysts at RBC Capital Markets highlighted in a note that the group’s performance was “slightly below expectations”, with a few “firecrackers” overall.

Patrick Pouyanné, CEO of TotalEnergies, also announced during a press conference that the refining and petrochemical market is expected to be “less good” in 2024 than in 2022 and 2023.

“We have seen that demand has weakened, particularly in Europe and the United States; the impact of lower growth is beginning to be felt on the chemical side, so we have petrochemical margins that are lower. This has an impact on results. In the last quarter and we think is that it will affect the year 2024. It is not the main element, but it is a more difficult environment for the downstream part,” he said.

Record consolidated share net profit of $21 billion in 2023

TotalEnergies’ annual consolidated net profit rose to $21.4 billion (+4%), compared with analysts’ expectations of $22.6 billion, after being held back by about $15 billion in provisions linked to its residual presence in Russia in 2022.

TotalEnergies expects net investment of $17 to $18 billion this year — including $5 billion dedicated to its electricity activities — up from $16.8 billion in 2023.

Underscoring that the liquefied natural gas (LNG) market should remain under pressure, the group expects hydrocarbon production to increase by more than 2.4 million barrels per day in the first quarter and 2% in 2024.

TotalEnergies indicated that the utilization rate of its refineries should exceed 85% in 2024 and that growth of its electricity activities (“integrated power”) should continue this year, with cash flows expected to be between $2.5 billion and $3 billion.

(Reporting by Benjamin Mallett; Editing by Kate Entringer)