French company TotalEnergies has reported a record-breaking profit for 2023 attributing it to strong performances in its liquefied natural gas and electricity sectors. The net profit reached $21.4 billion, marking a four percent rise from 2022, with the energy conglomerate proposing a 7.1 percent increase in its yearly dividend.
After accounting for one-time expenses, the net profit amounted to $23.2 billion, showing a decline of 36 percent compared to 2022. This drop in profit was primarily influenced by the costs incurred from the company’s exit from Russia following Moscow’s invasion of Ukraine.
In a statement, Chairman Patrick Pouyanne noted that despite a 10 percent decline in oil and gas prices from 2022, hydrocarbons performed admirably. Total Energies reported a net profit of $21.4 billion, marking a four percent rise from the previous year.
However, the net profit for 2023 fell below the expectations of financial analysts, who had anticipated a figure of up to $23.7 billion.
Its bottom line put the French energy conglomerate ahead of its global peers Shell, BP, Exxon-Mobil and Chevron which all reported lower earnings in the face of weaker energy prices.
Consequently, the company’s share price experienced a decline of approximately 1.5 percent during early trading on the Paris stock exchange as a response.
TotalEnergies has been shifting its focus towards generating low-carbon electricity, yet it faces scrutiny from environmental organizations due to its continued investments in fossil fuels, which are criticized for their adverse climate effects.
In September, the company disclosed plans to raise hydrocarbon production by two to three percent annually over a span of five years.
Additionally, the company is embroiled in several legal battles, including disputes over its land acquisition methods for contentious projects in Uganda and Tanzania, which have drawn condemnation from environmental activists.
