TotalEnergies profit jumps as energy prices rise

French oil giant TotalEnergies on Thursday reported a net profit of US $18.1 billion for 2021, a sharp jump buoyed by soaring oil prices and a major rebound in other commodities.

The company reported adjusted earnings of $6.8 billion for the fourth quarter of 2021, it said in a statement. Analysts polled by Refinitiv had forecast a full-year net profit of $17.1 billion and quarterly profit of $6.1 billion.

The net profit for 2021 compares strongly to the profit of $4.1 billion that TotalEnergies posted the previous year. Cash flow for the full year stood at $30.7 billion, while adjusted EBITDA was calculated at $42.3 billion. 

The exploration and production (E&P) segment was a strong contributor to the company’s net cash flow for 2021, generating $12.2 billion, the company said.

On Wednesday, TotalEnergies chief executive Patrick Pouyanne told RTL Radio that the surge in global gas markets that started in the final months of 2021, and an oil price rally to seven-year highs, was likely to continue in the short term – both due to sustained demand and a lack of investments in production facilities over the last years.

“Oil prices will remain high,” Pouyanne told RTL Radio, adding TotalEnergies would hand out a 100 euros ($114.20) voucher to help some of its lower-income clients deal with high energy bills in France.

The oil rally has seen the world’s largest fossil fuel giants – including TotalEnergies, British oil majors bp and Shell, and US competitors Chevron and Exxon Mobil – post record full-year net profits and bumper revenues over the past weeks.