TotalEnergies may pay out $15 billion to shareholders in 2022, company news

(Update: CEO comments on results and shareholder compensation policy, share price)

PARIS (Agefi-Dow Jones) – Oil group TotalEnergies announced on Thursday a second interim dividend for 2022 and an increase in its investment package after posting higher results in the second quarter, thanks in part to strong energy prices.

“The impact of Russia’s incursion into Ukraine on energy markets continued in the second quarter, with oil prices averaging over $110 per barrel in the quarter and refining margins reaching extremely high levels,” commented TotalEnergies Chairman and CEO Patrick. Puyanne, quoted in the press release.

On a conference call with analysts, the leader said he did not want TotalEnergies to be targeted for additional income tax.

TotalEnergies’ board of directors “decided to distribute a second interim dividend for 2022 of €0.69 per share, up 5% year-on-year,” TotalEnergies’ CEO also announced, quoted in a press release.

The board of directors also authorized TotalEnergies to “continue to repurchase up to $2 billion in shares in the third quarter,” added Patrick Poignant. During the conference call, the CEO of TotalEnergies clarified that the repurchase of shares will reach at least 7 billion dollars throughout 2022 and that their final amount will depend on the generation of free cash flow (cash flow) during the second half of the year.

Shareholder profits could reach $15 billion in 2022

Adding dividends to those share buybacks, payouts to shareholders could reach $15 billion for the full year, TotalEnergies’ CEO added.

In addition, TotalEnergies plans to make net investments of “around $16 billion” in 2022, versus investments “trending toward $15 billion as previously expected.” The share of investments in renewable energy sources and electricity remains at 25%, according to TotalEnergies.

TotalEnergies reported net income, group share, of $5.69 billion in the second quarter, compared with $2.21 billion in the same period in 2021.

A closely watched measure by market players, adjusted net income, which strips out certain items such as oil reserves and financial holdings, came in at $9.8 billion in the second quarter from $3.46 billion a year earlier.

Adjusted operating income was $10.5 billion in the April-June period, compared with $4.03 billion in the second quarter of 2021. Total’s main unit, exploration and production, posted adjusted operating income of $4.72 billion in the second quarter, compared with $2.21 billion in the previous quarter. a year earlier

Adjusted EBITDA was multiplied by more than 2

The Integrated Gas, Renewables & Power division, which notably includes liquefied natural gas (LNG) and power, posted adjusted operating income of $2.56 billion, following $891 million in the second quarter of 2021.

The group’s adjusted gross operating profit (Ebitda) was $18.74 billion, compared to $8.67 billion a year earlier.

Analysts were expecting net income of $10.02 billion, adjusted net income of $9.86 billion and adjusted operating income of $13.83 billion, according to the consensus set by Factset.

TotalEnergies’ hydrocarbon production reached 2.74 million barrels of oil equivalent (BEP) per day in the second quarter, remaining flat for the year. Compared to the first quarter of 2022, production fell by 4%, mainly due to scheduled maintenance operations and production cuts in Nigeria and Libya.

Shares in TotalEnergies were down 2.5% at €48.50 around 3 p.m.

-Alice Dore, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] editor: ECH – LBO

(Vincent Alsuar contributed to this article)


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July 28, 2022 09:12 ET (13:12 GMT)