TotalEnergies is a company specialized in the production and supply of energy. It is one of the largest oil companies in the world. The group operates in 130 countries and has 105,476 employees (end of December 2020). In 2020, its activity was penalized by the Covid-19 health crisis, which affected the entire oil sector. Here are the details of the group's annual results.
In the fourth quarter of 2020, TotalEnergies' activity was penalized by the Covid-19 health crisis. This crisis caused a sharp drop in oil prices. Also, demand fell due to the coronavirus pandemic. This has not been without consequences for the group's quarterly results.
In the last three months of 2020, the company's adjusted net income reached $1.30 billion. It was down 59% compared to the same period last year ($3.16 billion). Meanwhile, earnings per share fell 61% year-over-year to $0.46 in the quarter under review (compared to $1.19 in Q4-2019).
In Q4-2020, net income (group share) came to 891 million euros, compared with 2.6 billion dollars a year earlier, down 66%. For the quarter as a whole, hydrocarbon production fell by 9% year-on-year to 2.841 million barrels of oil equivalent per day. On the other hand, the price of Brent crude oil fell by 30% to $44.2 per barrel.
For the last quarter of the year as a whole, the sectors' adjusted net operating income reached $1.82 billion, compared to $3.88 billion in Q4-2019. That means it was down 53 percent year-over-year.
For the full twelve months of fiscal 2020, TotalEnergies had revenues of $140.69 billion, compared to $200.32 billion in 2019. This decline in turnover is mainly due to the coronavirus epidemic that affected demand and generated the drop in oil.
For the year 2020, net income (group share) came out negative at $7.24 billion, compared to a positive value of $11.27 billion a year earlier. Adjusted net income, meanwhile, came in at $4.06 billion, compared to $11.83 billion in 2019, a 66 percent decline.
In 2020, adjusted diluted net income per share was $1.43, compared to $4.38 a year earlier. That's a 67% year-over-year decline. For the full year, adjusted net operating income from the segments fell 56% to $6.40 billion, compared to $14.55 billion in 2019.
Finally, cash flow from operations fell 40% to $15.697 billion in 2020, compared to $26.111 billion in the prior year. As of December 31, 2020, operating cash flow is estimated at $14.803 billion, compared to $24.685 billion at the same date last year. This represents a 40% year-on-year decrease.
At the end of December 2020, the company's net debt stood at $37.14 billion. This implies a debt-to-equity ratio of 21.7 percent.
In the last quarter of fiscal 2020, the iGRP (Integrated Gas, Renewables & Power) segment posted an adjusted net operating income of $254 million, compared with 794 million a year earlier (at the same time). For the year as a whole, it reached $1.778 billion, down 26% from 2019 ($2.389 billion).
This decline is due in particular to the fall in LNG prices. In Q4-2020, cash flow from operations for this segment fell 21% to $1.072 billion. For the full year, it stood at $3.418 billion. It reported stability compared to 2019 ($3.409 billion).
In Q4-2020, Exploration-Production's adjusted net operating income was €1.068 billion, compared with $2.031 billion a year earlier. For the year as a whole, it stood at $2.363 billion, down 69% compared to 2019 ($7.509 billion). This decrease is explained by the sharp drop in oil prices and production.
As for the sector's cash flow, it regressed by 40% to $2.652 billion in the last quarter of fiscal 2020. For the year as a whole, this value reached $9.684 billion, down 46% compared to 2019 ($18.030 billion).
For the twelve months of 2020, the Downstream segment (Refining-Chemicals and Marketing & Services) recorded adjusted net operating income of $2.263 billion. A year earlier, it had been $4.656 billion. This represents a 51% year-over-year decline. As a reminder, in Q4-2020, it had reached $502 million, compared to $1.054 billion in Q4-2019.
As for the sector's cash flow, it came out at $4.652 billion, down 30% compared to 2019 ($6.617 billion). In Q4 2020, this value was estimated at $1.129 billion, compared to $1.505 billion in Q4 2019. It has therefore regressed by 25%.
The TotalEnergies group is among the companies that pay dividends to their shareholders each year. In keeping with this tradition, the company's Board of Directors has decided to distribute a coupon of 2.64 euros per share for the 2020 financial year.
In addition, the TotalEnergies group has a strong presence on the financial markets. The company is listed on the Paris stock exchange on the Euronext market. It is also part of the CAC 40 stock market index. In 2020, its market capitalization was estimated at $91.85 billion.