(Update: CEO comments on results and shareholder compensation policy, share price)
PARIS (Agefi-Dow Jones) — Oil group TotalEnergies announced on Thursday that it will pay its second interim dividend for 2022 and increase its investment package after posting better results in the second quarter, thanks in part to a strong energy price.
“The impact of the Russian invasion of Ukraine on energy markets continued into the second quarter, with oil prices averaging over $110 per barrel in the quarter and refining margins reaching exceptionally high levels. high,” commented TotalEnergies Chairman and CEO Patrick. Pouyanne, quoted in the press release.
During a conference call to analysts, the leader indicated he didn’t want this to make TotalEnergies a target for additional income taxation.
The Board of Directors of TotalEnergies “decided to pay a second interim dividend for 2022 of 0.69 euros per share, which is 5% more than for the year,” the CEO of TotalEnergies, quoted in a press release, also said.
The Board of Directors also authorized TotalEnergies to “continue to buy back shares of up to $2 billion in the third quarter,” Patrick Pouyanne added. During a conference call, the CEO of TotalEnergies clarified that share buybacks will reach at least $7 billion throughout 2022 and that their final amount will depend on the generation of free cash flow (cash flow) in the second half of the year.
Shareholder returns could reach $15 billion in 2022
Adding dividends to these share repurchases, the payout to shareholders could be $15 billion for the full year, the CEO of TotalEnergies added.
In addition, TotalEnergies plans to make a net investment of “about $16 billion” in 2022, compared to an investment “that was previously expected to be $15 billion.” The share of investment in renewable energy and electricity remains at 25%, notes TotalEnergies.
In the second quarter, TotalEnergies reported net income (group share) of $5.69 billion compared to $2.21 billion in the same period in 2021.
A metric closely watched by market operators, adjusted net income, which recalculates some elements such as oil reserves and financial assets, was $9.8 billion in the second quarter after $3.46 billion a year earlier.
For the April-June period, adjusted operating income was $10.5 billion compared to $4.03 billion in the second quarter of 2021. Total’s main unit, exploration and production, posted an adjusted operating income of $4.72 billion in the second quarter, compared to $2.21 billion last year. a year earlier.
Adjusted EBITDA more than doubled.
Adjusted operating income for the Integrated Gas, Renewables and Electricity division, which includes, among others, liquefied natural gas (LNG) and electricity, reached $2.56 billion after $891 million in the second quarter of 2021.
The group’s adjusted gross operating income (Ebitda) was $18.74 billion, up from $8.67 billion a year earlier.
According to the consensus set by Factset, analysts were expecting net income of $10.02 billion, adjusted net income of $9.86 billion and adjusted operating income of $13.83 billion.
TotalEnergies hydrocarbon production reached 2.74 million barrels of oil equivalent (BEP) per day in the second quarter, stable for one year. Compared to the first quarter of 2022, production decreased by 4%, mainly due to planned maintenance work and production cuts in Nigeria and Libya.
Around 15:00, the share of TotalEnergies fell by 2.5% to 48.50 euros.
-Alice Dore, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: ECH – LBO
(Vincent Alsuar contributed to this article)
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July 28, 2022 09:12 AM ET (13:12 GMT)