Total Energies earned profits of $21.4 billion in 2023.

On Wednesday, the TotalEnergies group announced a record-breaking profit for the year 2023, attributing this historic high to strong performance in its liquefied natural gas and electricity divisions.

The net profit reached $21.4 billion, marking an increase of 4% from the year 2022.

The final outcome positions the French energy group at the forefront of its global counterparts such as Shell, BP, Exxon Mobil, and Chevron, all of which reported lower profits in response to the declining energy prices.

However, Total Energies’ net income for 2022 was affected by substantial exceptional charges, amounting to $15 billion, due to its withdrawal from Russia following the war in Ukraine.

Upon excluding one-time items, profits experienced a steep decline last year, with the adjusted net profit plummeting by 36% to $23.2 billion.

In the fourth quarter alone, the adjusted net operating income from the business sectors decreased by 31% compared to the same period in 2022, reaching $5.7 billion.

Last year, oil and gas prices witnessed an average decline of about 10 percent compared to the year 2022, when a surge in oil prices significantly boosted the profits of energy companies globally.

Patrick Pouyanne, the Chairman of the Board, described the results as “strong,” stating in a release, “They were achieved in an uncertain environment.” He added, “The performance of hydrocarbons was good.”

Nevertheless, the net profit figure for 2023 was less than the financial analysts had anticipated, with projections reaching up to $23.7 billion.

As a consequence, the company’s stock price fell by approximately 1.3 percent in mid-morning trading on the Paris stock exchange, reaching 59.49 euros ($64), after partially recovering from the opening price of 58.50 euros.

Bojan added, “The company has not been dispatching its vessels through the Bab el-Mandeb Strait, which leads to the Red Sea and the Suez Canal, for several weeks now. This increases the duration of its ships’ voyages to Europe.”

Boyan stated, “The costs of passing through the Red Sea have increased,” attributing this to various factors, including higher insurance expenses.

He added, “We are cautious of the conflict in the region and no longer cross the Red Sea.”

Bojan mentioned, “The entire journey takes four days, compared to passing through the Red Sea for a liquefied natural gas tanker.”

The International Energy Agency stated on Wednesday that delays in the delivery of petroleum products due to ships rerouting to avoid attacks in the Red Sea are particularly affecting the markets for these products in Europe. (Agencies)