TotalEnergies has reported a net income of $16bn in 2021, compared to a net loss of $7.2bn in the year prior.

The French oil major’s full-year adjusted net income in 2021 stood at $18.1bn, an increase from $4.05bn in 2020.

The firm’s profits are attributed to the rebound in commodity prices.

For the fourth quarter that ended 31 December, the company’s net income was $5.83bn, against $891m in the same quarter during the previous year. The adjusted net income for the recent quarter was $6.82bn, against $1.3bn in Q4 2020.

The firm generated more than $15.8bn in net cash flow for the period that ended on 31 December 2021.

TotalEnergies CEO Patrick Pouyanné said: “In the fourth quarter, oil prices continued to rise, up 9% compared to the previous quarter while gas prices in Europe and Asia, driven by increasing demand, hit all-time highs above $30/Mbtu, and sent European power prices to record levels.

“In this context, TotalEnergies’ multi-energy model demonstrated its ability to take full advantage of the very favourable environment, particularly in the LNG and electricity sectors, with adjusted net income of $6.8 billion, and cash flow (DACF) of $9.8 billion.”

For the full year, the company reported adjusted EBITDA of $42.3bn, and $14.3bn in the fourth quarter.

Net debt was reduced to $20.8bn by the end of last year, from $29.3bn at the end of 2020.

The French oil major is planning to buy back shares, worth $2bn, in the first half of 2022.

The firm announced a final dividend of $0.75 (€0.66) per share, taking the total for the year to $3 (€2.64) per share.

In 2022, the company announced a 5% increase in interim dividends, and net investments of $14bn to $15bn, including $3.5bn for renewables and electricity projects.

In a separate announcement, TotalEnergies, through its affiliate TotalEnergies E&P USA, is set to withdraw from the North Platte deepwater project, in the Gulf of Mexico.

The decision comes as the firm intends to pursue better opportunities to allocate capital to within its global portfolio. 

TotalEnergies held a 60% operatorship stake in the North Platte project. The remaining stake is held by Equinor.

Earlier this month, the company finalised a deal with Uganda and the CNOOC to develop crude oil reserves.