Earnings

Earnings 2022-2021

Segment earnings in 2022 of $2,133 million were 40% lower than in 2021. This was driven by higher operating expenses($704 million), partly offset by higher marketing margins ($171 million).

Segment earnings in 2022 included a net charge of $622 million, comprising:

• impairment charges of $321 million (mainly related to withdrawal from Russian oil and gas activities);
• net loss from sale of assets of $135 million (mainly related to the withdrawal from Russian oil and gas activities, partly offset by a gain on the revaluation of the existing 50% share of the Texas Petroleum Group following the acquisition of the remaining 50% share); and
• provisions for onerous contracts of $62 million.

These net losses are part of identified items and compare with 2021 which included a net gain of $68 million as follows:

• net gain from disposal of assets of $290 million (mainly related to the dilution of interest in the Raizen joint venture);
• redundancy and restructuring costs of $109 million (mainly the cost of Reshape 2020-2021); and
• impairment charges of $106 million (goodwill impairment on acquisitions of Ubitricity and Multi Service Commercial Road Transport card platform).

Adjusted Earnings compared with 2021 decreased by $714 million, driven by the following:

• Mobility adjusted earnings were $469 million lower than in 2021, mainly as a result of higher operating expenses and unfavourable tax movements. This was partly offset by better margins. 
• Lubricants adjusted earnings were $266 million lower than in 2021, mainly because of lower margins due to a higher base oil price, lower associate and joint-venture income and higher operating expenses.
• Sectors and Decarbonisation adjusted earnings were $21 million higher than in 2021, mainly because of better margins (demand recovery in aviation). This was partly offset by higher operating expenses and higher financing expenses in joint ventures.

Earnings 2021-2020

Segment earnings in 2021 of $3,535 million were 13% lower than in 2020. This was driven by higher operating expenses, partly offset by higher volumes.

Segment earnings in 2021 included a net gain of $68 million as described above. This net gain is part of identified items and compares with 2020 which included net gain of $13 million as follows:

• net gains of $132 million on sale of assets, mainly related to the acquisition of the remaining 51% equity shares from a joint-venture partner in China;
• restructuring costs of $90 million (various initiatives across the Marketing segment); and
• impairment charges of $33 million.

Adjusted Earnings compared with 2020 decreased by $600 million, driven by the same factors as the segment earnings adjusted for identified items.