TotalEnergies SE — FY2022 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2022; this is an annual report, not a standalone fourth-quarter filing. Consolidated statements are prepared under IFRS and presented in U.S. dollars unless otherwise noted. Auditors issued an unqualified opinion on the financial statements and internal controls.
Business context and key financial metrics
TotalEnergies operates across integrated gas, renewables and power; exploration and production; refining and chemicals; and marketing and services. Results benefited from sharply higher energy prices and refining margins. The company reported sales of $281.0 billion, including excise taxes.
| Metric | FY2022 | FY2021 |
|---|---|---|
| IFRS net income attributable to TotalEnergies | $20.5 billion | $16.0 billion |
| Adjusted net income (non-GAAP) | $36.2 billion | $18.1 billion |
| Adjusted EBITDA (non-GAAP) | $71.6 billion | $42.3 billion |
| Cash flow from operating activities | $47.4 billion | $30.4 billion |
| Debt-adjusted cash flow (non-GAAP) | $47.0 billion | $30.7 billion |
| Net cash flow (company-defined) | $29.4 billion | $15.8 billion |
| Net investments | $16.3 billion | $13.3 billion |
Sales rose 36% year over year. Hydrocarbon production declined 2% to 2.765 million barrels of oil equivalent per day. Brent averaged $101.3 per barrel, compared with $70.9 in 2021; the European refining variable cost margin averaged $94.1 per tonne, versus $10.5. Company-reported ROACE was 28%; these returns and adjusted earnings are management measures, not IFRS line items.
At year-end, cash and cash equivalents were $33.0 billion, up from $21.3 billion. Non-current financial debt was $45.3 billion; current borrowings were $15.5 billion. Net financial debt excluding leases was $8.6 billion and the corresponding net-debt-to-capital ratio was 7.0%, down from 15.3%. The company reported $17.5 billion of committed credit facilities for TotalEnergies SE, undrawn, and stated that working capital was sufficient for current requirements.
Material changes versus FY2021
- IFRS net income increased about 28%; adjusted net income approximately doubled. Higher oil and gas prices and refining margins supported operating performance.
- Operating cash flow increased 56%, while net cash flow rose to $29.4 billion. Net investments increased to $16.3 billion.
- IFRS net income included $14.8 billion of Russia-related impairments and provisions. Total adjustments to net income were negative $15.7 billion, compared with negative $2.0 billion in 2021.
- Net debt excluding leases fell and the gearing ratio declined. The company repurchased 140.2 million shares during 2022, for $7.7 billion of cash outflow.
- Gross installed renewable capacity reached 16.8 GW, up from 10.3 GW. Refinery utilization increased to 82% from 64%.
Outlook, commentary and risks
- For 2023, management expected hydrocarbon production to increase about 2% to approximately 2.5 million barrels of oil equivalent per day, excluding Novatek production no longer consolidated from year-end 2022. Planned start-ups included projects in Oman, Brazil and Azerbaijan.
- Management forecast 2023 net investments of $16–18 billion, including $5 billion for low-carbon energies. Integrated Power generation was expected to exceed 40 TWh, about 30% above 2022.
- The 2023 shareholder-return policy targeted a 35–40% payout. The company announced a planned $2 billion first-quarter 2023 buyback and proposed an ordinary 2022 dividend of €2.81 per share, including a proposed final €0.74 installment. A €1 special dividend had already been paid in December 2022.
- Management cited uncertain oil prices, possible global economic slowdown, Chinese demand recovery, European refining conditions and tight LNG supply as relevant market factors. Results are particularly sensitive to oil and gas prices, refining and marketing margins, exchange rates, regulation, OPEC+ decisions and operating performance.
- Russia-related sanctions and asset valuations remain material uncertainties. TotalEnergies stopped equity-accounting its 19.4% Novatek interest at year-end, valued it at zero, and recorded substantial Russia-related charges. Yamal LNG remained an investment; future activity could be affected by the conflict and sanctions.
- Other disclosed matters include climate-related litigation in France and the United States, a long-running U.S. FERC natural-gas trading proceeding, and material contractual commitments. Management stated it did not consider disclosed guarantees or other off-balance-sheet arrangements likely to have a material effect on the company.
- The company proposed a 2023 spin-off and Toronto listing of TotalEnergies EP Canada, with an intended 70% in-kind distribution to shareholders and retention of 30%; the transaction required shareholder approval. The company also disclosed post-year-end allegations concerning Adani Group and stated its related investments represented $3.1 billion, or 2.4% of capital employed, at year-end.
Important facts for investors to verify
- Reconcile IFRS net income of $20.5 billion with adjusted net income of $36.2 billion, including the composition and accounting treatment of the $14.8 billion Russia-related charges.
- Review the assumptions and sensitivities used in asset valuations, including commodity-price scenarios, carbon costs, reserves and discount rates.
- Check actual 2023 production, investment spending, power generation and shareholder distributions against management’s stated expectations and policy.
- Assess liquidity and leverage using debt maturities, lease obligations, committed facilities and the company’s net-debt definitions.
- Monitor sanctions and Russia exposure, the proposed Canada spin-off, Adani-related developments, and the status and potential implications of disclosed legal and climate proceedings.
- Distinguish IFRS measures from company-defined adjusted earnings, EBITDA, DACF, net cash flow, ROACE and payout measures when comparing performance.