Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information on pages 1-21 of this exhibit concerning TotalEnergies SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TotalEnergies”) with respect to the second quarter of 2021 and six months ended June 30, 2021 has been derived from TotalEnergies’ unaudited consolidated balance sheets as of June 30, 2021, unaudited statements of income, comprehensive income, cash flow and business segment information for the second quarter of 2021 and six months ended June 30, 2021 and unaudited consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2021 presented on pages 22-29 and 33-40 of this exhibit.
The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TotalEnergies’ audited consolidated financial statements and related notes, provided in TotalEnergies’ Annual Report on Form 20-F for the year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021.
| A. | KEY FIGURES |
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | in millions of dollars | | | | | | 1H21 |
| | | | | | vs | | | | vs | | (except earnings per share and number of | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 |
| 2Q20 | | 2Q19 | | 2Q19 |
| shares) |
| 1H21 |
| 1H20 |
| 1H20 |
47,049 | | 43,737 | | 25,730 | | +83% | | 51,242 | | -8% | | Sales | | 90,786 | | 69,600 | | +30% |
8,667 | | 8,170 | | 3,909 | | x2.2 | | 8,550 | | +1% | | Adjusted EBITDA1 | | 16,837 | | 10,583 | | +59% |
4,032 |
| 3,487 |
| 821 |
| x4.9 | | 3,589 | | +12% | | Adjusted net operating income2 from business segments |
| 7,519 |
| 3,121 |
| x2.4 |
2,213 |
| 1,975 |
| (209) |
| ns | | 2,022 | | +9% | | • Exploration & Production |
| 4,188 |
| 494 |
| x8.5 |
891 |
| 985 |
| 326 |
| x2.7 | | 429 | | x2.1 | | • Integrated Gas, Renewables & Power |
| 1,876 |
| 1,239 |
| +51% |
511 |
| 243 |
| 575 |
| -11% | | 715 | | -29% | | • Refining & Chemicals |
| 754 |
| 957 |
| -21% |
417 |
| 284 |
| 129 |
| x3.2 | | 423 | | -1% | | • Marketing & Services |
| 701 |
| 431 |
| +63% |
(680) |
| 881 |
| (447) |
| ns | | 812 | | ns | | Net income (loss) from equity affiliates |
| 201 |
| 285 |
| -29% |
0.8 |
| 1.23 |
| (3.27) |
| ns | | 1.00 | | -20% | | Fully-diluted earnings per share ($) |
| 2.03 |
| (3.29) |
| ns |
2,646 |
| 2,645 |
| 2,598 |
| +2% | | 2,625 | | +1% | | Fully-diluted weighted-average shares (millions) |
| 2,644 |
| 2,598 |
| +2% |
2,206 |
| 3,344 |
| (8,369) |
| ns | | 2,756 | | -20% | | Net income |
| 5,550 |
| (8,335) |
| ns |
2,802 |
| 2,379 |
| 2,201 |
| +27% | | 3,028 | | -7% | | Organic investments3 |
| 5,181 |
| 4,724 |
| +10% |
396 |
| 1,590 |
| 721 |
| -45% | | 402 | | -2% | | Net acquisitions4 |
| 1,986 |
| 1,823 |
| +9% |
3,198 |
| 3,969 |
| 2,922 |
| +9% | | 3,430 | | -7% | | Net investments5 |
| 7,167 |
| 6,547 |
| +9% |
7,551 | | 5,598 | | 3,479 | | x2.2 | | 6,251 | | +21% | | Cash flow from operations6 | | 13,149 | | 4,778 | | x2.8 |
| | | | | | | | | | | | Of which: | | | | | | |
669 |
| (819) |
| 431 |
| +55% | | (317) | | ns |
| • (increase) decrease in working capital |
| (150) |
| (453) |
| ns |
(409) | | (384) | | (499) | | ns | | (501) | | ns | | • financial charges | | (793) | | (1,011) | | ns |
From 2019, data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
| 1 | Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) corresponds to the adjusted earnings before depreciation, depletion and impairment of tangible and intangible assets and mineral interests, income tax expense and cost of net debt, i.e. all operating income and contribution of equity affiliates to net income. The reconciliation of adjusted EBITDA with the consolidated financial statements is set forth under “Reconciliation of adjusted EBITDA with consolidated financial statements” on page 18 of this exhibit. |
| 2 | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See pages 4 et seq. “Analysis of business segment results” below for further details. |
| 3 | “Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. |
| 4 | “Net acquisitions” = acquisitions - assets sales - other transactions with non-controlling interests (see page 19). |
| 5 | “Net investments” = organic investments + net acquisitions (see “Investments – Divestments’” on page 19). |
| 6 | See also “C. TotalEnergies results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 20 of this exhibit. |
1
Environment* — liquids and gas price realizations, refining margins
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 |
|
| | 2Q21 |
|
|
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | | | 1H21 | | 1H20 | | 1H20 |
69.0 |
| 61.1 |
| 29.6 |
| x2.3 | | 68.9 | | - | | Brent ($/b) |
| 65.0 |
| 40.1 |
| +62% |
3.0 |
| 2.7 |
| 1.8 |
| +70% | | 2.5 | | +18% | | Henry Hub ($/Mbtu) |
| 2.9 |
| 1.8 |
| +57% |
8.7 |
| 6.8 |
| 1.7 |
| x5.2 | | 4.1 | | x2.1 | | NBP** ($/Mbtu) |
| 7.7 |
| 2.4 |
| x3.2 |
10.0 |
| 10.0 |
| 2.1 |
| x4.7 | | 4.9 | | x2 | | JKM*** ($/Mbtu) |
| 10.0 |
| 2.9 |
| x3.5 |
62.9 |
| 56.4 |
| 23.4 |
| x2.7 | | 63.7 | | -1% | | Average price of liquids ($/b) |
| 59.7 |
| 33.8 |
| +77% |
4.43 |
| 4.06 |
| 2.61 |
| +69% | | 3.82 | | +16% | | Average price of gas ($/Mbtu) Consolidated subsidiaries |
| 4.23 |
| 2.99 |
| +41% |
6.59 |
| 6.08 |
| 4.40 |
| +50% | | 5.69 | | +16% | | Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates |
| 6.33 |
| 5.42 |
| +17% |
10.2 |
| 5.3 |
| 14.3 |
| -29% | | 27.6 | | -63% | | Variable cost margin – Refining Europe, VCM ($/t) |
| 7.6 |
| 21.0 |
| -64% |
* The indicators are shown on page 21.
** NBP (National Balancing Point) is a virtual natural gas trading point in the United Kingdom for transferring rights in respect of physical gas and which is widely used as a price benchmark for the natural gas markets in Europe. NBP is operated by National Grid Gas plc, the operator of the UK transmission network.
*** JKM (Japan-Korea Marker) measures the prices of spot LNG trades in Asia. It is based on prices reported in spot market trades and/or bids and offers collected after the close of the Asian trading day at 16:30 Singapore time.
The average price of LNG increased by 8% in the second quarter 2021 compared to the previous quarter, benefiting from the lag effect of rising oil prices on long-term oil-linked LNG contracts and from the increase in natural gas prices for spot gas price LNG contracts.
Greenhouse gas emissions (GHG)1
2Q21 | 1Q21 | GHG emissions (MtCO2e) | 2020 | 2020 |
7 | 8 | Scope 1+2 from operated oil & gas facilities2 | 35.8 | 39 |
77 | 81 | Scope 33 | 350 | 400 |
45 | 50 | Scope 1+2+3 in Europe4 | 212 | 239 |
1The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from TotalEnergies’ emissions or are considered as non-material, and are therefore not counted.
2Scope 1+2 GHG emissions of operated oil & gas facilities are defined as the sum of direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting (as defined in TotalEnergies’ Form 20-F for the year ended December 31, 2020) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2). They do not include facilities for power generation from renewable sources or natural gas, such as combined cycle natural gas power plants (CCGT) and sites with GHG emissions and activities of less than 30 kt CO2e/year
3Scope 3 GHG emissions are defined as the indirect emissions of greenhouse gases related to the use by customers of energy products sold for end-use, i.e. combustion of the products to obtain energy. A stoichiometric emission (oxidation of molecules to carbon dioxide) factor is applied to these sales to obtain an emission volume. TotalEnergies usually follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. Only item 11 of Scope 3 (use of sold products), which is the most significant, is reported.
4Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 GHG emissions of facilities operated by TotalEnergies and indirect GHG emissions related to the use by customers of energy products sold for end-use (Scope 3) in the EU, Norway, United Kingdom and Switzerland.
2
Production*
| | | | | | | | | | | | | | | | | | | |
|
| | | | | 2Q21 |
| |
| 2Q21 |
|
|
| |
| |
| 1H21 | |
| | | | | | vs | | | | vs | | | | | | | | vs | |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Hydrocarbon production | | 1H21 | | 1H20 | | 1H20 | |
2,747 |
| 2,863 | | 2,846 | | -3% | | 2,957 |
| -7% | | Hydrocarbon production (kboe/d) |
| 2,805 |
| 2,966 |
| -5% | |
1,258 |
| 1,272 | | 1,315 | | -4% | | 1,407 |
| -11% | | Oil (including bitumen) (kb/d) |
| 1,265 |
| 1,381 |
| -8% | |
1,489 |
| 1,591 | | 1,531 | | -3% | | 1,549 |
| -4% | | Gas (including condensates and associated NGL) (kboe/d) |
| 1,540 |
| 1,584 |
| -3% | |
| | | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
|
|
| |
| |
| 1H21 | |
| | | | | | vs | | | | vs | | | | | | | | vs | |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Hydrocarbon production | | 1H21 | | 1H20 | | 1H20 | |
2,747 |
| 2,863 |
| 2,846 | | -3% | | 2,957 |
| -7% | | Hydrocarbon production (kboe/d) |
| 2,805 |
| 2,966 |
| -5% | |
1,464 |
| 1,508 |
| 1,553 | | -6% | | 1,624 |
| -10% | | Liquids (kb/d) |
| 1,486 |
| 1,626 |
| -9% | |
7,017 |
| 7,400 |
| 7,045 | | - | | 7,309 |
| -4% | | Gas (Mcf/d) |
| 7,208 |
| 7,302 |
| -1% | |
* TotalEnergies production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).
Hydrocarbon production was 2,747 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2021:
| ● | a decrease of 3% year-on-year, comprised of: |
| o | +2% due to the start-up and ramp-up of projects, |
| o | -2% due to the price effect, and |
| o | -3% due to the natural decline of the fields, |
| ● | and a decrease of 4% from the first quarter 2021, due to major maintenance shutdowns. |
Hydrocarbon production was 2,805 kboe/d in the first half 2021, a decrease of 5%, comprised of:
| ● | +2% due to the start-up and ramp-up of projects, including North Russkoye in Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and Iara in Brazil, |
| ● | -1% portfolio effect, notably asset sales in the United Kingdom and Block CA1 in Brunei, |
| ● | -2% due to planned maintenance and unplanned outages, notably in the United Kingdom, Australia, Norway and Nigeria, |
| ● | -1% due to the price effect, |
| ● | -3% due to the natural decline of the fields. |
3
B.ANALYSIS OF BUSINESS SEGMENT RESULTS
The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, TotalEnergies values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of TotalEnergies’ results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TotalEnergies’ management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. TotalEnergies, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in TotalEnergies’ internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect. Furthermore, TotalEnergies enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TotalEnergies’ interim consolidated financial statements, see pages 33-41 of this exhibit.
TotalEnergies measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
4
B.1. Integrated Gas, Renewables & Power segment (iGRP)
Production and sales of Liquefied natural gas (LNG) and electricity
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 |
| 2Q20 |
| 2Q19 |
| 2Q19 |
| Hydrocarbon production for LNG |
| 1H21 |
| 1H20 |
| 1H20 |
502 |
| 518 |
| 520 |
| -3% | | 559 | | -10% | | iGRP (kboe/d) |
| 510 |
| 536 |
| -5% |
52 |
| 64 |
| 66 |
| -21% | | 73 | | -29% | | Liquids (kb/d) |
| 58 |
| 69 |
| -17% |
2,464 |
| 2,476 |
| 2,471 |
| - | | 2,680 | | -8% | | Gas (Mcf/d) |
| 2,470 |
| 2,541 |
| -3% |
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 |
| |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Liquefied Natural Gas in Mt | | 1H21 | | 1H20 | | 1H20 |
10.5 |
| 9.9 |
| 10.4 |
| +1% |
| 8.5 |
| +23% | | Overall LNG sales |
| 20.4 |
| 20.2 |
| +1% |
4.2 |
| 4.4 |
| 4.3 |
| -4% |
| 4.1 |
| +3% | | including sales from equity production* |
| 8.5 |
| 9.0 |
| -5% |
8.8 |
| 7.9 |
| 8.7 |
| +1% |
| 6.7 |
| +31% | | including sales by TotalEnergies from equity production and |
| 16.7 |
| 16.5 |
| +1% |
* TotalEnergies’ equity production may be sold by TotalEnergies or by joint ventures.
Hydrocarbon production for LNG decreased year-on-year by 3% and 5% respectively in the second quarter 2021 and first half 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG's liquefaction trains in Australia.
Total LNG sales were stable year-on-year in the second quarter 2021 and the first half 2021.
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | Renewables & Electricity | | 1H21 | | 1H20 | | 1H20 |
41.7 |
| 40.2 |
| 20.4 |
| x2 | | Portfolio of renewable power generation gross capacity (GW)1,2 |
| 41.7 |
| 20.4 |
| x2 |
8.3 | | 7.8 | | 5.1 | | +63% | | o/w installed capacity | | 8.3 | | 5.1 | | +63% |
5.4 | | 5.1 | | 2.9 | | +89% | | o/w capacity in construction | | 5.4 | | 2.9 | | +89% |
28.0 | | 27.3 | | 12.4 | | x2.3 | | o/w capacity in development | | 28.0 | | 12.4 | | x2.3 |
22.6 | | 21.2 | | 11.2 | | x2 | | Gross renewables capacity with PPA (GW)1,2 | | 22.6 | | 11.2 | | x2 |
30.7 | | 30.1 | | 13.6 | | x2.3 | | Portfolio of renewable power generation net capacity (GW)1,2 | | 30.7 | | 13.6 | | x2.3 |
4.0 | | 3.8 | | 2.3 | | +76% | | o/w installed capacity | | 4.0 | | 2.3 | | +76% |
3.1 | | 3.1 | | 1.1 | | x3 | | o/w capacity in construction | | 3.1 | | 1.1 | | x3 |
23.6 | | 23.3 | | 10.3 | | x2.3 | | o/w capacity in development | | 23.6 | | 10.3 | | x2.3 |
5.1 | | 4.7 | | 2.9 | | +73% | | Net power production (TWh)3 | | 9.8 | | 5.9 | | +67% |
1.7 | | 1.6 | | 1.1 | | +47% | | incl. Power production from renewables | | 3.2 | | 1.8 | | +79% |
5.8 | | 5.7 | | 4.2 | | +38% | | Clients power - BtB and BtC (Million)2 | | 5.8 | | 4.2 | | +38% |
2.7 | | 2.7 | | 1.7 | | +58% | | Clients gas - BtB and BtC (Million)2 | | 2.7 | | 1.7 | | +58% |
12.7 | | 16.1 | | 9.4 | | +35% | | Sales power - BtB and BtC (TWh) | | 28.8 | | 23.6 | | +22% |
20.6 |
| 36.2 |
| 17.3 |
| +19% | | Sales gas - BtB and BtC (TWh) |
| 56.8 |
| 50.9 |
| +12% |
291 |
| 344 |
| 91 |
| x3.2 | | Proportional adjusted EBITDA Renewables and Electricity (M$)4 |
| 635 |
| 340 |
| +87% |
62 |
| 148 |
| 92 |
| -32% | | incl. from renewables business |
| 210 |
| 184 |
| +14% |
1 Includes 20% of Adani Green Energy Limited (AGEL) gross capacity effective first quarter 2021.
2 End of period data.
3 Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.
4 TotalEnergies share (% interest) of EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in Renewables and Electricity affiliates, regardless of consolidation method.
5
Gross installed capacity of renewable electricity generation grew to 8.3 GW at the end of the second quarter 2021.
Net electricity production was 5.1 TWh in the second quarter 2021, an increase of 73% year-on-year, notably due to strong growth in renewable electricity generation and the acquisition of four combined cycle gas turbine (CCGT) plants in France and Spain in the fourth quarter of 2020.
Electricity and gas sales, seasonally lower in the second quarter, increased by 35% and 19% respectively in the second quarter 2021 compared to last year thanks to the growing number of customers, with TotalEnergies notably surpassing the 5 million customer mark (B2C and B2B) in France.
TotalEnergies’ share of the EBITDA of the Renewables and Electricity activities was $291 million in the second quarter 2021, more than tripling over one year, driven by growing electricity production, particularly renewable electricity, and the number of gas and electricity customers.
Results
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 |
| |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
5,086 |
| 5,502 |
| 3,313 | | +54% | | 3,789 |
| +34% | | External sales |
| 10,588 |
| 8,403 |
| +26% |
436 |
| 624 |
| (1,074) | | ns | | 215 |
| x2 | | Operating income |
| 1,060 |
| (716) |
| ns |
419 |
| 263 |
| 21 | | x20 | | 661 |
| -37% | | Net income (loss) from equity affiliates and other items |
| 682 |
| 420 |
| +62% |
(56) |
| (101) |
| 322 | | ns | | (450) |
| ns | | Tax on net operating income |
| (157) |
| 330 |
| ns |
799 |
| 786 |
| (731) | | ns | | 426 |
| -99% | | Net operating income |
| 1,585 |
| 34 |
| x46 |
92 |
| 199 |
| 1,057 | | -91% | | 3 |
| +70% | | Adjustments affecting net operating income |
| 291 |
| 1,205 |
| -76% |
891 |
| 985 |
| 326 | | x2.7 | | 429 |
| x2.1 | | Adjusted net operating income* |
| 1,876 |
| 1,239 |
| +51% |
356 |
| 264 |
| (69) | | ns | | 195 |
| +83% | | including income from equity affiliates |
| 620 |
| 179 |
| x3.5 |
759 |
| 753 |
| 618 | | +23% | | 442 |
| +72% | | Organic investments |
| 1,512 |
| 1,264 |
| +20% |
166 |
| 1,893 |
| 433 | | -62% | | 159 |
| +4% | | Net acquisitions |
| 2,059 |
| 1,570 |
| +31% |
925 |
| 2,646 |
| 1,051 | | -12% | | 601 |
| +54% | | Net investments |
| 3,571 |
| 2,834 |
| +26% |
*Detail of adjustment items shown in the business segment information starting on page 33 of this exhibit.
Adjusted net operating income for the iGRP segment was:
| ● | $891 million in the second quarter 2021, more than doubling over the year, thanks to higher LNG prices and the growing contribution from Renewables and Electricity, and |
| ● | $1,876 million in the first half 2021, an increase of 51% year-on-year for the same reasons as well as good performance by the trading activities in the first quarter 2021. |
Adjusted net operating income for the iGRP segment excludes special items. In the second quarter 2021, the exclusion of special items had a positive impact of $92 million on the segment’s adjusted net operating income, compared to a positive impact of $1,057 million in the second quarter 2020. In the first half 2021, the exclusion of special items had a positive impact of $291 million on the segment’s adjusted net operating income, compared to a positive impact of $1,205 million in the first half 2020.
The segment’s operating cash flow before working capital changes1 excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects was:
| ● | $904 million in the second quarter 2021, a decrease of 14% compared to $1,051 million in the second quarter 2020, as the second quarter of 2020 benefited from excellent performance of trading activities in a context of high market volatility, and |
| ● | $1,963 million in the first half 2021, an increase of 19% compared to $1,652 million in the first half 2020, in line with the rise in LNG prices and the growing contribution of Renewables and Electricity. |
1 Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020). Second quarter 2020, second quarter 2019 and first half 2020 data restated. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 20 of this exhibit.
6
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $567 million in the second quarter 2021, a decrease of 59% compared to $1,389 million in the second quarter 2020, and |
| ● | $1,347 million in the first half 2021, an increase of 50% compared to $900 million in the first half 2020. |
B.2. Exploration & Production segment
Production
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Hydrocarbon production | | 1H21 | | 1H20 | | 1H20 |
2,245 |
| 2,345 |
| 2,326 | | -3% | | 2,398 |
| -6% | | EP (kboe/d) |
| 2,295 |
| 2,430 |
| -6% |
1,412 |
| 1,444 |
| 1,487 | | -5% | | 1,551 |
| -9% | | Liquids (kb/d) |
| 1,428 |
| 1,557 |
| -8% |
4,553 |
| 4,924 |
| 4,574 | | - | | 4,629 |
| -2% | | Gas (Mcf/d) |
| 4,738 |
| 4,761 |
| - |
Results
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | in millions of dollars, except effective | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | tax rate | | 1H21 | | 1H20 | | 1H20 |
1,743 |
| 1,514 |
| 992 | | +76% | | 2,273 |
| -23% | | External Sales |
| 3,257 |
| 2,574 |
| +27% |
3,180 |
| 2,841 |
| (7,983) | | ns | | 2,967 |
| -7% | | Operating income |
| 6,021 |
| (7,124) |
| ns |
(1,243) |
| 270 |
| 17 | | ns | | 173 |
| ns | | Net income (loss) from equity affiliates and other items |
| (973) |
| 440 |
| ns |
38.2% | | 41.0% | | 56.6% | | | | 39.5% | | | | Effective tax rate* | | 39.5% | | 69.6% | | |
(1,195) |
| (1,180) |
| 398 | | ns | | (1,161) |
| ns | | Tax on net operating income |
| (2,375) |
| (56) |
| ns |
742 |
| 1,931 |
| (7,568) | | ns | | 1,979 |
| +7% | | Net operating income |
| 2,673 |
| (6,740) |
| ns |
1,471 |
| 44 |
| 7,359 | | -80% | | 43 |
| x34.2 | | Adjustments affecting net operating income |
| 1,515 |
| 7,234 |
| -79% |
2,213 |
| 1,975 |
| (209) | | ns | | 2,022 |
| +9% | | Adjusted net operating income** |
| 4,188 |
| 494 |
| x8.5 |
279 |
| 270 |
| 48 | | x5.8 | | 239 |
| +17% | | including income from equity affiliates |
| 549 |
| 438 |
| +25% |
1,559 |
| 1,279 |
| 1,112 | | +40% | | 1,995 |
| -22% | | Organic investments |
| 2,838 |
| 2,684 |
| +6% |
231 |
| (202) |
| 311 | | -26% | | 204 |
| +13% | | Net acquisitions |
| 29 |
| 305 |
| -90% |
1,790 |
| 1,077 |
| 1,423 | | +26% | | 2,199 |
| -19% | | Net investments |
| 2,867 |
| 2,989 |
| -4% |
* | “Effective tax rate” = tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income). |
** | Detail of adjustment items shown in the business segment information starting on page 33 of this exhibit. |
The Exploration & Production segment’s adjusted net operating income was:
| ● | $2,213 million in the second quarter 2021 compared to a loss of $209 million in the second quarter 2020, thanks to the sharp rebound in oil and gas prices, and |
| ● | $4,188 million in the first half 2021, more than eight times higher in the first half 2020, for the same reasons. |
Adjusted net operating income for the Exploration & Production segment excludes special items. In the second quarter 2021, the exclusion of special items had a positive impact of $1,471 million on the segment’s adjusted net operating income, compared to a positive impact of $7,359 million in the second quarter 2020. In the first half 2021, the exclusion of special items had a positive impact of $1,515 million on the segment’s adjusted net operating income, compared to a positive impact of $7,234 million in the first half 2020.
The segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was $4,262 million in the second quarter 2021, 2.4 times greater than $1,810 million in the second quarter 2020 and $8,086 million in the first half 2021, an increase of 84% compared to $4,386 million in the first half 2020, in line with higher oil and gas prices.
2 Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 20 of this exhibit.
7
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $4,835 million in the second quarter 2021, 5.3 times greater than $910 million in the second quarter 2020, and |
| ● | $8,571 million in the first half 2021, an increase of 77% compared to $4,833 million in the first half 2020. |
B.3. Downstream (Refining & Chemicals and Marketing & Services segments)
Results
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
40,220 |
| 36,714 |
| 21,419 | | +88% | | 45,180 |
| -11% | | External sales |
| 76,934 |
| 58,617 |
| +31% |
1,534 |
| 1,554 |
| 866 | | +77% | | 934 |
| +64% | | Operating income |
| 3,088 |
| (324) |
| ns |
180 |
| 54 |
| (13) | | x14 | | 222 |
| -19% | | Net income (loss) from equity affiliates and other items |
| 234 |
| (60) |
| ns |
(457) |
| (456) |
| (259) | | ns | | (124) |
| ns | | Tax on net operating income |
| (913) |
| 44 |
| ns |
1,257 |
| 1,152 |
| 594 | | x2 | | 1,032 |
| +22% | | Net operating income |
| 2,409 |
| (340) |
| ns |
(329) |
| (625) |
| 110 | | ns | | 106 |
| ns | | Adjustments affecting net operating income |
| (954) |
| 1,728 |
| ns |
928 |
| 527 |
| 704 | | +32% | | 1,138 |
| -18% | | Adjusted net operating income* |
| 1,455 |
| 1,388 |
| +5% |
468 |
| 335 |
| 457 | | +2% | | 557 |
| -16% | | Organic investments |
| 803 |
| 734 |
| +9% |
(1) |
| (103) |
| (20) | | ns | | 38 |
| ns | | Net acquisitions |
| (104) |
| (50) |
| ns |
467 |
| 232 |
| 437 | | +7% | | 595 |
| -22% | | Net investments |
| 699 |
| 684 |
| +2% |
* Detail of adjustment items shown in the business segment information starting on page 33 of this exhibit
The Downstream segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was:
| ● | $1,460 million in the second quarter 2021, a decrease of 2% compared to $1,488 million in the second quarter 2020, and |
| ● | $2,332 million in the first half 2021, a decrease of 9% compared to $2,552 million in the first half 2020. |
The Downstream segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $2,669 million in the second quarter 2021, an increase of 41% compared to $1,899 million in the second quarter 2020, and |
| ● | $4,330 million in the first half 2021, 13.7 times greater than $317 million in the first half 2020. |
Refining & Chemicals segment
Refinery and petrochemicals throughput and utilization rates
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Refinery throughput and utilization rate* | | 1H21 | | 1H20 | | 1H20 |
1,070 |
| 1,147 |
| 1,249 | | -14% | | 1,595 |
| -33% | | Total refinery throughput (kb/d) |
| 1,109 |
| 1,347 |
| -18% |
148 |
| 114 |
| 205 | | -28% | | 447 |
| -67% | | France |
| 131 |
| 230 |
| -43% |
495 |
| 660 |
| 595 | | -17% | | 679 |
| -27% | | Rest of Europe |
| 578 |
| 676 |
| -14% |
427 |
| 373 |
| 449 | | -5% | | 469 |
| -9% | | Rest of world |
| 400 |
| 441 |
| -9% |
58% | | 58% | | 59% | | | | 77% | |
|
| Utilization rate based on crude only** |
| 58% | | 64% | |
|
* Includes refineries in Africa reported in the Marketing & Services segment.
**Based on distillation capacity at the beginning of the year, excluding Grandpuits (definitively shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021.
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Petrochemicals production and utilization rate | | 1H21 | | 1H20 | | 1H20 |
1,424 |
| 1,405 |
| 1,391 | | +2% | | 993 |
| +43% | | Monomers* (kt) |
| 2,829 |
| 2,778 |
| +2% |
1,212 |
| 1,165 |
| 1,193 | | +2% | | 1,127 |
| +8% | | Polymers (kt) |
| 2,377 |
| 2,395 |
| -1% |
88% | | 87% | | 84% | | | | 64% | | |
| Vapocracker utilization rate** | | 88% | | 83% | |
|
*Olefins
**Based on olefins production from steamcrackers and their treatment capacity at the start of the year.
8
Refinery throughput:
| ● | decreased 14% in the second quarter 2021 compared to a year ago, mainly due to the prolonged voluntary economic shutdown of the Donges refinery given the low European margins, the planned major shutdown of the Leuna refinery in Germany, the shutdown of the Grandpuits refinery in the first quarter 2021 for its conversion to a zero-oil platform, and the sale of the Lindsey refinery in the United Kingdom. The decrease was partially offset by the restart of the Feyzin refinery, in France, and the distillation unit at the Normandy platform, following a fire at the end of 2019, and |
| ● | decreased 18% in the first half 2021, compared to the previous year for the same reasons. |
Monomer production increased slightly in the second quarter 2021 compared to a year ago thanks to the restart of the Feyzin refinery, in France, after a major shutdown in 2020.
Polymer production also increased slightly in the second quarter 2021 compared to a year ago, despite the major shutdown in the second quarter 2021 of the Feluy plant in Belgium.
Results
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 |
| |
| 2Q21 |
| |
| |
| |
| |
| | | | | | vs | | | | vs | | | | | | | | 1H21 vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
20,853 |
| 19,201 |
| 9,433 |
| x2.2 | | 22,509 | | -7% | | External sales |
| 40,054 |
| 27,956 |
| +43% |
955 |
| 993 |
| 632 |
| +51% | | 484 | | +97% | | Operating income |
| 1,948 |
| (636) |
| ns |
123 |
| 88 |
| (35) |
| ns | | 111 | | +11% | | Net income (loss) from equity affiliates and other items |
| 211 |
| (92) |
| ns |
(281) |
| (280) |
| (132) |
| ns | | 46 | | ns | | Tax on net operating income |
| (561) |
| 203 |
| ns |
797 |
| 801 |
| 465 |
| +71% | | 641 | | +24% | | Net operating income |
| 1,598 |
| (525) |
| ns |
(286) |
| (558) |
| 110 |
| ns | | 74 | | ns | | Adjustments affecting net operating income |
| (844) |
| 1,482 |
| ns |
511 |
| 243 |
| 575 |
| -11% | | 715 | | -29% | | Adjusted net operating income* |
| 754 |
| 957 |
| -21% |
279 |
| 222 |
| 302 |
| -8% | | 353 | | -21% | | Organic investments |
| 501 |
| 470 |
| +7% |
2 |
| (57) |
| (15) |
| ns | | (58) | | ns | | Net acquisitions |
| (55) |
| (51) |
| ns |
281 |
| 165 |
| 287 |
| -2% | | 295 | | -5% | | Net investments |
| 446 |
| 419 |
| +6% |
* Detail of adjustment items shown in the business segment information starting on page 33 of this exhibit.
Adjusted net operating income for the Refining-Chemicals segment:
| ● | decreased 11% year-on-year to $511 million in the second quarter 2021, due to still-depressed European refining margins that reflect the recovery in oil prices and the continued weak product demand, notably for distillates, linked to the reduced air transport, and to the outperformance of trading activities in the second quarter 2020. The second quarter 2021 results nevertheless benefited from the very good performance of petrochemicals, |
| ● | decreased 21% year-on-year to $754 million in the first half of 2021, for the same reasons. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2021, the exclusion of the inventory valuation effect had a negative impact of $331 million on the segment’s adjusted net operating income, compared to a positive impact of $86 million in the second quarter 2020. In the second quarter 2021 the exclusion of special items had a positive impact of $45 million on the segment’s adjusted net operating income, compared to a positive impact of $24 million in the second quarter 2020. In the first half 2021, the exclusion of the inventory valuation effect had a negative impact of $937 million on the segment’s adjusted net operating income, compared to a positive impact of $1,371 million in the first half 2020. In the first half 2021, the exclusion of special items had a positive impact of $93 million on the segment’s adjusted net operating income, compared to a positive impact of $111 million in the first half 2020.
The segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was:
| ● | $753 million in the second quarter 2021, a decrease of 24% compared to $996 million in the second quarter 2020, and |
| ● | $1,147 million in the first half 2021, a decrease of 31% compared to $1,670 million in the first half 2020. |
9
The segment’s cash flow from operations excluding financial charges was:
| ● | $2,232 million in the second quarter 2021, 2.1 times greater than $1,080 million in the second quarter 2020, mainly due to a decrease in working capital requirements and a positive stock effect, and |
| ● | $3,228 million in the first half 2021, compared to $(103) million in the first half 2020. |
B.4. Marketing & Services segment
Petroleum product sales
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 | | | | 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | Sales in kb/d* | | 1H21 | | 1H20 | | 1H20 |
1,473 |
| 1,442 |
| 1,301 |
| +13% | | 1,860 | | -21% | | Total Marketing & Services sales |
| 1,458 |
| 1,478 |
| -1% |
791 |
| 776 |
| 740 |
| +7% | | 1,004 | | -21% | | • Europe |
| 783 |
| 823 |
| -5% |
682 |
| 666 |
| 561 |
| +22% | | 856 | | -20% | | • Rest of world |
| 674 |
| 656 |
| +3% |
* Excludes trading and bulk refining sales.
Petroleum product sales volumes increased year-on-year by 13% in the second quarter 2021, thanks to the improving health situation and global economic rebound. The increase driven mainly by a recovery in the retail network sales.
Results
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 | | | | 2Q20 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
19,367 |
| 17,513 |
| 11,986 |
| +62% | | 22,671 | | -15% | | External sales |
| 36,880 |
| 30,661 |
| +20% |
579 |
| 561 |
| 234 |
| x2 | | 450 | | -29% | | Operating income |
| 1,140 |
| 312 |
| x35.6 |
57 |
| (34) |
| 22 |
| x2.5 | | 111 | | -49% | | Net income (loss) from equity affiliates and other items |
| 23 |
| 32 |
| -28% |
(176) |
| (176) |
| (127) |
| ns | | (170) | | ns | | Tax on net operating income |
| (352) |
| (159) |
| ns |
460 |
| 351 |
| 129 |
| x3.6 | | 391 | | +18% | | Net operating income |
| 811 |
| 185 |
| x4.4 |
(43) |
| (67) |
| - |
| ns | | 32 | | ns | | Adjustments affecting net operating income |
| (110) |
| 246 |
| ns |
417 |
| 284 |
| 129 |
| x3.2 | | 423 | | -1% | | Adjusted net operating income* |
| 701 |
| 431 |
| +63% |
189 |
| 113 |
| 155 |
| +22% | | 204 | | -7% | | Organic investments |
| 302 |
| 264 |
| +14% |
(3) |
| (46) |
| (5) |
| ns | | 96 | | ns | | Net acquisitions |
| (49) |
| 1 |
| ns |
186 |
| 67 |
| 150 |
| +24% | | 300 | | -38% | | Net investments |
| 253 |
| 265 |
| -5% |
*Detail of adjustment items shown in the business segment information starting on page 33 of this exhibit.
Adjusted net operating income for the Marketing & Services segment was:
| ● | $417 million in the second quarter 2021, 3.2 times greater than $129 million in the second quarter 2020. This increase was mainly related to the increase in global sales volumes in a context of rising margins. |
| ● | $701 million in the first half 2021, an increase of 63% compared to $431 million in the first half 2020, for the same reasons. |
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2021, the exclusion of the inventory valuation effect had a negative impact of $50 million on the segment’s adjusted net operating income, compared to a positive impact of $9 million in the second quarter 2020. In the second quarter 2021, the exclusion of special items had a positive impact of $7 million on the segment’s adjusted net operating income, compared to a negative impact of $9 million in the second quarter 2020. In the first half 2021, the exclusion of the inventory valuation effect had a negative impact of $148 million on the segment’s adjusted net operating income, compared to a positive impact of $163 million in the first half 2020. In the first half 2021, the exclusion of special items had a positive impact of $38 million on the segment’s adjusted net operating income, compared to a positive impact of $83 million in the first half 2020.
The segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was:
| ● | $707 million in the second quarter 2021, an increase of 44% compared to $492 million in the second quarter 2020, and |
| ● | $1,185 million in the first half 2021, an increase of 34% compared to $882 million in the first half 2020. |
10
The segment’s cash flow from operations excluding financial charges was:
| ● | $437 million in the second quarter 2021, a decrease of 47% compared to $819 million in the second quarter 2020, and |
| ● | $1,102 million in the first half 2021, 2.6 times greater than $420 million in the first half 2020. |
C.TOTALENERGIES RESULTS
Net income (TotalEnergies share)
In the second quarter 2021, net income (TotalEnergies share) was $2,206 million, an increase compared to $(8,369) million in the second quarter 2020. In the first half 2021, net income (TotalEnergies share) was $5,550 million, an increase compared to $(8,335) million in the first half 2020.
Adjusted net income (TotalEnergies share) was:
| ● | $3,463 million in the second quarter 2021 compared to $126 million a year earlier, due to the increase in oil and gas prices, |
| ● | $6,466 million in the first half 2021 compared to $1,907 million a year earlier, for the same reasons. |
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value3.
Total adjustments affecting net income4 were $(1,257) in the second quarter 2021, mainly comprised of the effect of the sale of TotalEnergies’ participation in Petrocedeño S.A. to PDVSA in Venezuela for an amount of $(1,379) million, a $375 million positive inventory effect and restructuring charges related to voluntary departures in France and Belgium.
Fully-diluted shares
The number of fully-diluted shares was 2,654 million on June 30, 2021.
Acquisitions - Asset sales
Acquisitions were:
| ● | $662 million in the second quarter 2021 and included notably the 23% interest in a 640 MW offshore wind project in Taiwan, the Fonroche Biogas in France, and Repsol's interest in the Tin Fouyé Tabankort II field in Algeria, and |
| ● | $2,870 million in the first half 2021, including the above items as well as the acquisition, for $2 billion, of a 20% interest in the renewable projects developer in India, Adani Green Energy Limited. |
Asset sales were:
| ● | $266 million in the second quarter 2021 and included notably the sale of TotalEnergies’ interest in the TBG pipeline in Brazil, the sale of shares in Clean Energy Fuels Corp. (Nasdaq: CLNE), and the sale of its interest in Tellurian Inc. (Nasdaq: TELL) in the United States, and |
| ● | $884 million in the first half 2021, including the above items as well as the sale in France of a 50% interest in a portfolio of renewable projects with a total capacity of 285 MW (100%), the sale of the 10% interest in onshore block OML 17 in Nigeria, a price supplement relating to the sale of Block CA1 in Brunei and the sale of the Lindsey refinery in the United Kingdom. |
Cash flow
TotalEnergies’ cash flow from operations was:
| ● | $7,551 million in the second quarter 2021, 2.2 times greater than $3,479 million in the second quarter 2020, and |
| ● | $13,149 million in the first half 2021, 2.8 times greater than $4,778 million in the first half 2020. |
The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sale (effective first quarter 2020) and including organic loan repayment from equity affiliates was $1,199 million in the second quarter 2021, compared to $(165) million in the second quarter 2020. It is the decrease in working capital of $669 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $463 million, (ii) the mark-to-market effect of iGRP’s contracts of $145 million, (iii) the capital gains from renewables project sale of $(0) million and (iv) the organic loan repayments from equity affiliates of $(78) million.
3 Details shown on page 17 of this exhibit.
4 Details shown on pages 17 and 33-41 of this exhibit.
11
The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sale (effective first quarter 2020) and including organic loan repayment from equity affiliates was $1,431 million in the first half 2021, compared to $(2,631) million in the first half 2020. It is the increase in working capital of $150 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $1,346 million, (ii) the mark-to-market effect of iGRP’s contracts of $409 million, (iii) the capital gains from renewables project sale of $(66) million and (iv) the organic loan repayments from equity affiliates of $(108) million.
In the second quarter 2021, operating cash flow before working capital changes without financial charges (DACF)5 was $6,761 million, an increase of 63% compared to $4,143 million in the second quarter 2020 and a decrease of 7% compared to $7,308 million in the second quarter 2019. In the second quarter 2021, operating cash flow before working capital changes1 was $6,352 million, an increase of 74% compared to $3,644 million in the second quarter 2020 and a decrease of 7% compared to $6,807 million in the second quarter 2019.
TotalEnergies’ net cash flow6 was:
| ● | $3,154 million in the second quarter 2021, 4.4 times greater than $722 million a year earlier, which takes into account the $2.7 billion increase in operating cash flow before changes in working capital1 and the slight increase of $276 million in net investments to $3,198 million in the second quarter 2021, |
| ● | $4,551 million in the first half 2021, 5.3 times greater than $862 million a year earlier, which takes into account the $4.3 billion increase in operating cash flow before changes in working capital, partially offset by a $620 million increase in net investments to $7,167 million in the first half 2021. |
D. PROFITABILITY
Return on equity was 8.4% for the twelve months ended June 30, 2021.
| | | | | | |
|
| 07/01/2020- |
| 04/01/2020- |
| 07/01/2019- |
in millions of dollars | | 06/30/2021 | | 3/31/2021 | | 06/30/2020 |
Adjusted net income |
| 8,786 |
| 5,330 |
| 8,214 |
Average adjusted shareholders' equity |
| 105,066 |
| 109,135 |
| 109,448 |
Return on equity (ROE) |
| 8.4% | | 4.9% | | 7.5% |
Return on average capital employed was 7.2% for the twelve months ended June 30, 2021.
| | | | | | |
|
| 07/01/2020- |
| 04/01/2020- |
| 07/01/2019- |
in millions of dollars | | 06/30/2021 | | 3/31/2021 | | 06/30/2020 |
Adjusted net operating income |
| 10,252 |
| 6,915 |
| 10,125 |
Average capital employed |
| 142,861 |
| 148,777 |
| 145,621 |
ROACE |
| 7.2% | | 4.6% | | 7.0% |
5 DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.
6 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
12
E. 2021 SENSITIVITIES*
| | | | | | |
|
| |
| |
| Estimated |
| | | | Estimated impact | | impact on cash |
| | | | on adjusted net | | flow from |
| | Change | | operating income | | operations |
Dollar |
| +/- 0.1 $ per € |
| -/+ 0.1 B$ |
| ~0 B$ |
Average Liquids Price** |
| +/- 10$/b |
| +/- 2.7 B$ |
| +/- 3.2 B$ |
European gas price – NBP |
| +/- 1 $/Mbtu |
| +/- 0.3 B$ |
| +/- 0.25 B$ |
Variable cost margin, European refining (VCM) |
| +/- 10 $/t |
| +/- 0.4 B$ | | +/- 0.5 B$ |
* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about TotalEnergies’ portfolio in 2021. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 21.
** In a 50 $/b Brent environment.
F. SUMMARY AND OUTLOOK
In a context of rebounding global demand for petroleum products, OPEC+ quotas in the first half 2021 contributed to a rapid drawdown of crude oil inventories, which fell below the average of the past five years. The price of oil has remained above $60/b since the beginning of February 2021 and broke through $70/b at the end of June. Recent OPEC+ decisions reinforce its collective discipline to adapt supply step by step to the growth in demand.
Given the outlook for OPEC+ quotas in the second half 2021, TotalEnergies anticipates its full-year 2021 hydrocarbon production to be around 2.85 Mboe/d. The start-up and ramp-up of new projects, including Zinia Phase 2 in Angola, North Russkoye in Russia and Iara in Brazil, will contribute to increased production in the second half 2021.
TotalEnergies anticipates that the higher oil prices observed in the first half 2021 will have a positive impact on its average realized price of LNG for the coming six months, given the lag effect on price formulas. It is expected to be more than $7.5/Mbtu in the third quarter 2021. In addition, gas markets in Asia and Europe are benefiting from the strong growth in demand linked to the global economic recovery.
TotalEnergies maintains discipline on expenses, with net investments expected to be between $12-13 billion in 2021, with half dedicated to future growth. For those growth investments, 50% will be dedicated to renewables and electricity.
In this favorable context, TotalEnergies confirms its priorities in terms of cash flow allocation: invest in profitable projects to implement TotalEnergies' transformation strategy to a broad energy company, support the dividend through economic cycles, maintain a solid balance sheet and a minimum "A" long-term debt rating by sustainably anchoring TotalEnergies’ gearing below 20%, and share additional revenues with its shareholders through share buybacks in the event of high prices.
13
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business activities and industrial strategy of TotalEnergies. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of TotalEnergies, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by TotalEnergies, it being specified that the means to be deployed do not depend solely on TotalEnergies. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by TotalEnergies as of the date of this document.
These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Except for its ongoing obligations to disclose material information as required by applicable securities laws, TotalEnergies does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
For additional factors, you should read the information set forth under “Item 3. -3.2 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TotalEnergies’ Form 20-F for the year ended December 31, 2020.
14
OPERATING INFORMATION BY SEGMENT
TotalEnergies’ production (Exploration & Production + iGRP)
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | Combined liquids and gas | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| production by region (kboe/d) |
| 1H21 |
| 1H20 |
| 1H20 |
985 |
| 1,050 |
| 1,032 | | -4% | | 997 |
| -1% | | Europe and Central Asia |
| 1,018 |
| 1,064 |
| -4% |
533 |
| 551 |
| 653 | | -18% | | 686 |
| -22% | | Africa |
| 542 |
| 677 |
| -20% |
654 |
| 651 |
| 641 | | +2% | | 703 |
| -7% | | Middle East and North Africa |
| 652 |
| 661 |
| -1% |
378 |
| 376 |
| 314 | | +20% | | 358 |
| +6% | | Americas |
| 377 |
| 343 |
| +10% |
197 |
| 235 |
| 206 | | -4% | | 214 |
| -8% | | Asia-Pacific |
| 216 |
| 220 |
| -2% |
2,747 |
| 2,863 |
| 2,846 | | -3% | | 2,957 |
| -7% | | Total production |
| 2,805 |
| 2,966 |
| -5% |
750 |
| 729 |
| 699 | | +7% | | 750 |
| - | | includes equity affiliates |
| 740 |
| 726 |
| +2% |
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| Liquids production by region (kb/d) |
| 1H21 |
| 1H20 |
| 1H20 |
351 |
| 374 |
| 381 | | -8% | | 328 |
| +7% | | Europe and Central Asia |
| 363 |
| 392 |
| -8% |
399 |
| 415 |
| 514 | | -22% | | 549 |
| -27% | | Africa |
| 407 |
| 534 |
| -24% |
502 |
| 499 |
| 494 | | +2% | | 546 |
| -8% | | Middle East and North Africa |
| 500 |
| 505 |
| -1% |
183 |
| 179 |
| 127 | | +44% | | 160 |
| +15% | | Americas |
| 181 |
| 153 |
| +19% |
29 |
| 41 |
| 37 | | -21% | | 41 |
| -29% | | Asia-Pacific |
| 35 |
| 42 |
| -17% |
1,464 |
| 1,508 |
| 1,553 | | -6% | | 1,624 |
| -10% | | Total production |
| 1,486 |
| 1,626 |
| -9% |
213 |
| 201 |
| 199 | | +7% | | 225 |
| -5% | | includes equity affiliates |
| 207 |
| 207 |
| - |
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| Gas production by region (Mcf/d) |
| 1H21 |
| 1H20 |
| 1H20 |
3,411 |
| 3,636 |
| 3,506 | | -3% | | 3,639 |
| -6% | | Europe and Central Asia |
| 3,523 |
| 3,620 |
| -3% |
680 |
| 693 |
| 706 | | -4% | | 703 |
| -3% | | Africa |
| 686 |
| 726 |
| -6% |
847 |
| 843 |
| 818 | | +3% | | 866 |
| -2% | | Middle East and North Africa |
| 845 |
| 865 |
| -2% |
1,095 |
| 1,100 |
| 1,047 | | +5% | | 1,107 |
| -1% | | Americas |
| 1,098 |
| 1,069 |
| +3% |
984 |
| 1,128 |
| 968 | | +2% | | 994 |
| -1% | | Asia-Pacific |
| 1,056 |
| 1,022 |
| +3% |
7,017 |
| 7,400 |
| 7,045 | | - | | 7,309 |
| -4% | | Total production |
| 7,208 |
| 7,302 |
| -1% |
2,895 |
| 2,855 |
| 2,698 | | +7% | | 2,868 |
| +1% | | includes equity affiliates |
| 2,875 |
| 2,802 |
| +3% |
Downstream (Refining & Chemicals and Marketing & Services)
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| Petroleum product sales by region (kb/d) |
| 1H21 |
| 1H20 |
| 1H20 |
1,521 |
| 1,558 |
| 1,449 | | +5% | | 2,018 |
| -25% | | Europe* |
| 1,540 |
| 1,610 |
| -4% |
663 |
| 667 |
| 463 | | +43% | | 751 |
| -12% | | Africa |
| 665 |
| 573 |
| +16% |
799 |
| 772 |
| 861 | | -7% | | 846 |
| -6% | | Americas |
| 785 |
| 814 |
| -3% |
492 |
| 495 |
| 433 | | +13% | | 536 |
| -8% | | Rest of world |
| 493 |
| 439 |
| +12% |
3,475 |
| 3,492 |
| 3,208 | | +8% | | 4,152 |
| -16% | | Total consolidated sales |
| 3,483 |
| 3,435 |
| +1% |
334 |
| 402 |
| 366 | | -9% | | 535 |
| -38% | | Includes bulk sales* |
| 368 |
| 432 |
| -15% |
1,668 |
| 1,648 |
| 1,541 | | +8% | | 1,757 |
| -5% | | Includes trading |
| 1,658 |
| 1,525 |
| +9% |
* 1Q21 data adjusted
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q20 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| Petrochemicals production* (kt) |
| 1H21 |
| 1H20 |
| 1H20 |
1,166 |
| 1,346 |
| 1,275 | | -9% | | 1,318 |
| -11% | | Europe |
| 2,512 |
| 2,547 |
| -1% |
725 |
| 510 |
| 637 | | +14% | | 475 |
| +53% | | Americas |
| 1,235 |
| 1,301 |
| -5% |
744 |
| 714 |
| 672 | | +11% | | 327 |
| x2.3 |
| Middle-East and Asia |
| 1,459 |
| 1,324 |
| +10% |
* Olefins, polymers
15
> Renewables
| | | | | | | | | | | | | | | | | | | | |
| | 2Q21 | | 1Q21 | ||||||||||||||||
Installed power | | | | | | | | | | | | | | | | | | | | |
generation gross | | | | Onshore | | Offshore | | | | | | | | Onshore | | Onshore | | | | |
capacity (GW)1,2 |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
France |
| 0.5 |
| 0.5 |
| 0.0 |
| 0.1 |
| 1.0 |
| 0.4 |
| 0.5 |
| 0.0 |
| 0.1 |
| 1.0 |
Rest of Europe |
| 0.1 |
| 1.0 |
| 0.0 |
| 0.1 |
| 1.1 |
| 0.1 |
| 0.8 |
| 0.0 |
| 0.1 |
| 1.0 |
Africa |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.1 |
Middle East |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.3 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.3 |
North America |
| 0.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.9 |
| 0.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.8 |
South America |
| 0.4 |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.5 |
| 0.2 |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.3 |
India |
| 3.5 |
| 0.1 |
| 0.0 |
| 0.0 |
| 3.6 |
| 3.4 |
| 0.1 |
| 0.0 |
| 0.0 |
| 3.5 |
Asia-Pacific |
| 0.7 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.7 |
| 0.7 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.7 |
Total |
| 6.4 |
| 1.8 |
| 0.0 |
| 0.1 |
| 8.3 |
| 6.1 |
| 1.5 |
| 0.0 |
| 0.1 |
| 7.8 |
| | | | | | | | | | | | | | | | | | | | |
| | 2Q21 | | 1Q21 | ||||||||||||||||
Power generation gross | | | | | | | | | | | | | | | | | | | | |
capacity from | | | | | | | | | | | | | | | | | | | | |
renewables in | | | | Onshore | | Offshore | | | | | | | | Onshore | | Offshore | | | | |
construction (GW)1,2 |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
France |
| 0.3 |
| 0.1 |
| 0.0 |
| 0.1 |
| 0.5 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.4 |
Rest of Europe |
| 0.1 |
| 0.1 |
| 1.1 |
| 0.0 |
| 1.3 |
| 0.1 |
| 0.3 |
| 1.1 |
| 0.0 |
| 1.5 |
Africa |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
Middle East |
| 0.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.8 |
| 0.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.8 |
North America |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.3 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.3 |
South America |
| 0.0 |
| 0.2 |
| 0.0 |
| 0.0 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.0 |
| 0.0 |
| 0.3 |
India |
| 0.9 |
| 0.2 |
| 0.0 |
| 0.0 |
| 1.1 |
| 0.9 |
| 0.4 |
| 0.0 |
| 0.0 |
| 1.3 |
Asia-Pacific |
| 0.5 |
| 0.0 |
| 0.6 |
| 0.0 |
| 1.1 |
| 0.4 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.5 |
Total |
| 2.8 |
| 0.6 |
| 1.8 |
| 0.1 |
| 5.4 |
| 2.9 |
| 0.9 |
| 1.1 |
| 0.1 |
| 5.1 |
| | | | | | | | | | | | | | | | | | | | |
| | 2Q21 | | 1Q21 | ||||||||||||||||
Power generation gross | | | | | | | | | | | | | | | | | | | | |
capacity from | | | | | | | | | | | | | | | | | | | | |
renewables in | | | | Onshore | | Offshore | | | | | | | | Onshore | | Offshore | | | | |
development (GW)1,2 |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
France |
| 3.2 |
| 0.8 |
| 0.0 |
| 0.0 |
| 4.0 |
| 3.2 |
| 1.0 |
| 0.0 |
| 0.0 |
| 4.2 |
Rest of Europe |
| 5.3 |
| 0.3 |
| 2.3 |
| 0.0 |
| 7.9 |
| 5.2 |
| 0.3 |
| 2.3 |
| 0.0 |
| 7.8 |
Africa |
| 0.4 |
| 0.1 |
| 0.0 |
| 0.2 |
| 0.6 |
| 0.1 |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.2 |
Middle East |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.2 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.2 |
North America |
| 3.5 |
| 0.2 |
| 0.0 |
| 0.7 |
| 4.3 |
| 3.4 |
| 0.2 |
| 0.0 |
| 0.7 |
| 4.2 |
South America |
| 0.6 |
| 1.0 |
| 0.0 |
| 0.0 |
| 1.7 |
| 0.8 |
| 0.8 |
| 0.0 |
| 0.0 |
| 1.6 |
India |
| 6.2 |
| 0.1 |
| 0.0 |
| 0.0 |
| 6.3 |
| 6.2 |
| 0.1 |
| 0.0 |
| 0.0 |
| 6.2 |
Asia-Pacific |
| 1.1 |
| 0.0 |
| 2.1 |
| 0.0 |
| 3.2 |
| 0.8 |
| 0.0 |
| 2.1 |
| 0.0 |
| 2.9 |
Total |
| 20.3 |
| 2.5 |
| 4.4 |
| 0.8 |
| 28.0 |
| 19.8 |
| 2.5 |
| 4.4 |
| 0.7 |
| 27.3 |
1 Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.
2 End-of-period data.
16
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | In operation |
| In construction |
| In development | ||||||||||||||||||||||
Gross | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
renewables | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
capacity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
covered by | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PPA at 30 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
June 2021 | | | | Onshore | | | | | | | | Onshore | | Offshore | | | | | | | | Onshore | | Offshore | | | | |
(GW) |
| Solar |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
Europe |
| 0.6 |
| 1.5 |
| X |
| 2.2 |
| 0.3 |
| X |
| 0.8 |
| X |
| 1.4 |
| 4.0 |
| 0.3 |
| X |
| X |
| 4.3 |
Asia |
| 4.5 |
| X |
| X |
| 4.6 |
| 2.2 |
| 0.3 |
| 0.6 |
| — |
| 3.1 |
| 3.9 |
| X |
| — |
| — |
| 4.0 |
North America |
| 0.8 |
| X |
| X |
| 0.8 |
| 0.3 |
| X |
| — |
| X |
| 0.3 |
| 0.3 |
| X |
| — |
| X |
| 0.4 |
Rest of World |
| 0.5 |
| X |
| X |
| 0.7 |
| X |
| X |
| — |
| X |
| X |
| 0.4 |
| X |
| — |
| X |
| 0.7 |
Total |
| 6.3 |
| 1.8 |
| X |
| 8.2 |
| 2.8 |
| 0.6 |
| 1.4 |
| X |
| 5.0 |
| 8.6 |
| 0.5 |
| X |
| 0.2 |
| 9.3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | In operation |
| In construction |
| In development | ||||||||||||||||||||||
PPA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
average | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
price at | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
30 June | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 | | | | Onshore | | | | | | | | Onshore | | Offshore | | | | | | | | Onshore | | Offshore | | | | |
($/MWh) |
| Solar |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
Europe |
| 239 |
| 120 |
| X |
| 154 |
| 68 |
| X |
| 61 |
| X |
| 64 |
| 42 |
| 73 |
| X |
| X |
| 46 |
Asia |
| 85 |
| X |
| X |
| 84 |
| 47 |
| 56 |
| 187 |
| — |
| 77 |
| 40 |
| X |
| — |
| — |
| 40 |
North America |
| 155 |
| X |
| X |
| 158 |
| 26 |
| X |
| — |
| X |
| 31 |
| 31 |
| X |
| — |
| X |
| 49 |
Rest of World |
| 82 |
| X |
| X |
| 82 |
| X |
| X |
| — |
| X |
| X |
| 97 |
| X |
| — |
| X |
| 97 |
Total |
| 107 |
| 112 |
| X |
| 108 |
| 48 |
| 66 |
| 106 |
| X |
| 70 |
| 43 |
| 79 |
| X |
| 145 |
| 45 |
Adjustment items to net income (TotalEnergies share)
| | | | | | | | | | | | |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q19 |
| in millions of dollars |
| 1H21 |
| 1H20 |
(1,588) |
| (342) |
| (8,321) | | (56) |
| Special items affecting net income (TotalEnergies share) |
| (1,930) |
| (8,655) |
(1,379) |
| - |
| - | | - |
| Gain (loss) on asset sales* |
| (1,379) |
| - |
(110) |
| (161) |
| (20) | | (31) |
| Restructuring charges |
| (271) |
| (100) |
(49) |
| (144) |
| (8,101) | | (57) |
| Impairments |
| (193) |
| (8,101) |
(50) |
| (37) |
| (200) | | 32 |
| Other |
| (87) |
| (454) |
375 |
| 689 |
| (94) | | (28) |
| After-tax inventory effect: FIFO vs. replacement cost |
| 1,064 |
| (1,508) |
(44) |
| (6) |
| (80) | | (47) |
| Effect of changes in fair value |
| (50) |
| (79) |
(1,257) |
| 341 |
| (8,495) | | (131) |
| Total adjustments affecting net income |
| (916) |
| (10,242) |
* Including $(1,379) million related to the effect of the sale of TotalEnergies’ participation in Petrocedeño S.A. to PDVSA in Venezuela
17
RECONCILIATION OF ADJUSTED EBITDA WITH CONSOLIDATED FINANCIAL STATEMENTS
Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
| | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 vs |
| |
| 2Q21 vs |
| |
| |
| |
| 1H21 vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
2,206 |
| 3,344 |
| (8,369) |
| ns |
| 2,756 |
| -20% | | Net income - TotalEnergies share |
| 5,550 |
| (8,335) |
| ns |
1,257 |
| (341) |
| 8,495 |
| -85% |
| 131 |
| x9.6 | | Less: adjustment items to net income (TotalEnergies share) |
| 916 |
| 10,242 |
| -91% |
3,463 |
| 3,003 |
| 126 |
| x27.5 |
| 2,887 |
| 20% | | Adjusted net income - TotalEnergies share |
| 6,466 |
| 1,907 |
| x3.4 |
|
| | | | | | | | | | | Adjusted items | | | | | | |
88 |
| 59 |
| (31) |
| ns |
| 73 |
| 21% | | Add: non-controlling interests |
| 147 |
| (13) |
| ns |
1,485 |
| 1,446 |
| (95) |
| ns |
| 1,322 |
| 12% | | Add: income taxes |
| 2,931 |
| 490 |
| x6 |
3,105 |
| 3,180 |
| 3,302 |
| -6% | | 3,597 |
| -14% | | Add: depreciation, depletion and impairment of tangible assets and mineral interests |
| 6,285 |
| 6,937 |
| -9 |
94 |
| 103 |
| 77 |
| 22% | | 65 |
| 45% | | Add: amortization and impairment of intangible assets |
| 197 |
| 155 |
| 27% |
501 |
| 466 |
| 527 |
| -5% | | 564 |
| -11% | | Add: financial interest on debt |
| 967 |
| 1,094 |
| -12% |
(69) |
| (87) |
| 3 |
| ns | | 42 |
| ns | | Less: financial income and expense from cash & cash equivalents |
| (156) |
| 13 |
| ns |
8,667 |
| 8,170 |
| 3,909 |
| x2.2 |
| 8,550 |
| 1% | | Adjusted EBITDA |
| 16,837 |
| 10,583 |
| +59% |
Reconciliation of revenues from sales to adjusted EBITDA and net income (TotalEnergies share)
| | | | | | | | | | | | | | | | | | | |
|
| |
| |
| 2Q21 vs |
| |
| 2Q21 vs | | |
| |
| |
| 1H21 vs | |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | In millions of dollars | | 1H21 | | 1H20 | | 1H20 | |
|
| | | | | | | | | | | Adjusted items | | | | | | | |
41,642 |
| 38,668 |
| 21,580 |
| +93% | | 45,261 |
| -8% | | Revenues from sales |
| 80,310 |
| 60,155 |
| +34% | |
(27,108) |
| (24,289) |
| (11,842) |
| ns |
| (30,295) |
| ns | | Purchases, net of inventory variation |
| (51,397) |
| (37,949) |
| ns | |
(6,708) |
| (6,868) |
| (6,199) |
| ns |
| (7,042) |
| ns | | Other operating expenses |
| (13,576) |
| (12,985) |
| ns | |
(123) |
| (167) |
| (114) |
| ns |
| (170) |
| ns | | Exploration costs |
| (290) |
| (254) |
| ns | |
138 |
| 416 |
| 240 |
| -43% | | 253 |
| -45% | | Other income |
| 554 |
| 820 |
| -32% | |
(48) |
| (89) |
| (26) |
| ns |
| (52) |
| ns | | Other expense, excluding amortization and impairment of intangible assets |
| (137) |
| (139) |
| ns | |
265 |
| 109 |
| 419 |
| -37% | | 326 |
| -19% | | Other financial income |
| 374 |
| 607 |
| -38% | |
(131) |
| (130) |
| (160) |
| ns |
| (188) |
| ns | | Other financial expense |
| (261) |
| (341) |
| ns | |
740 |
| 520 |
| 11 |
| x67.3 |
| 457 |
| +62% | | Net income (loss) from equity affiliates |
| 1,260 |
| 669 |
| +88% | |
8,667 |
| 8,170 |
| 3,909 |
| x2.2 |
| 8,550 |
| +1% | | Adjusted EBITDA |
| 16,837 |
| 10,583 |
| +59% | |
|
| | | | | | | | | | | Adjusted items | | | | | | | |
(3,105) |
| (3,180) |
| (3,302) |
| ns |
| (3,597) |
| ns | | Less: depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,285) |
| (6,937) |
| ns | |
(94) |
| (103) |
| (77) |
| ns |
| (65) |
| ns | | Less: amortization of intangible assets |
| (197) |
| (155) |
| ns | |
(501) |
| (466) |
| (527) |
| ns |
| (564) |
| ns | | Less: financial interest on debt |
| (967) |
| (1,094) |
| ns | |
69 |
| 87 |
| (3) |
| ns |
| (42) |
| ns | | Add: financial income and expense from cash & cash equivalents |
| 156 |
| (13) |
| ns | |
(1,485) |
| (1,446) |
| 95 |
| ns |
| (1,322) |
| ns | | Less: income taxes |
| (2,931) |
| (490) |
| ns | |
(88) |
| (59) |
| 31 |
| ns |
| (73) |
| ns | | Less: non-controlling interests |
| (147) |
| 13 |
| ns | |
(1,257) |
| 341 |
| (8,495) |
| ns |
| (131) |
| ns | | Add: adjustment - TotalEnergies share |
| (916) |
| (10,242) |
| ns | |
2,206 |
| 3,344 |
| (8,369) |
| ns |
| 2,756 |
| -20% | | Net income - TotalEnergies share |
| 5,550 |
| (8,335) |
| ns | |
18
Investments - Divestments
| | | | | | | | | | | | | | | | | | |
| | | | | | 2Q21 | | | | 2Q21 | | | | | | | | 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 |
| 1Q21 |
| 2Q20 | | 2Q20 | | 2Q19 |
| 2Q19 |
| in millions of dollars |
| 1H21 |
| 1H20 |
| 1H20 |
2,802 |
| 2,379 |
| 2,201 | | +27% | | 3,028 |
| -7% | | Organic investments (a) |
| 5,181 |
| 4,724 |
| +10% |
245 |
| 243 |
| 162 | | +52% | | 185 |
| +33% | | capitalized exploration |
| 488 |
| 297 |
| +64% |
380 |
| 292 |
| 733 | | -48% | | 370 |
| +3% | | increase in non-current loans |
| 672 |
| 1,012 |
| -34% |
(89) |
| (96) |
| (58) | | ns | | (254) |
| ns | | repayment of non-current loans, excluding organic loan repayment from equity affiliates |
| (185) |
| (175) |
| ns |
(4) |
| (167) |
| (47) | | ns | | - |
| ns | | change in debt from renewable projects (TotalEnergies share) |
| (171) |
| (152) |
| ns |
662 |
| 2,208 |
| 857 | | -23% | | 614 |
| +8% | | Acquisitions (b) |
| 2,870 |
| 2,501 |
| +15% |
266 |
| 618 |
| 136 | | +95% | | 212 |
| +25% | | Asset sales (c) |
| 884 |
| 678 |
| +30% |
5 |
| 100 |
| 22 | | -77% | | - |
| ns | | change in debt from renewable projects (partner share) |
| 105 |
| 83 |
| +27% |
- |
| - |
| - | | ns | | - |
| ns | | Other transactions with non-controlling |
| - |
| - |
| ns |
3,198 |
| 3,969 |
| 2,922 | | +9% | | 3,430 |
| -7% | | Net investments (a + b - c - d) |
| 7,167 |
| 6,547 |
| +9% |
(78) |
| (30) |
| (41) | | ns | | (99) |
| ns | | Organic loan repayment from equity affiliates (e) |
| (108) |
| (34) |
| ns |
9 |
| 267 |
| 69 | | -87% | | - |
| ns | | Change in debt from renewable projects financing* (f) |
| 276 |
| 235 |
| +17% |
25 |
| 22 |
| 22 | | +14% | | - |
| ns | | Capex linked to capitalized leasing contracts (g) |
| 47 |
| 46 |
| +2% |
3,104 |
| 4,184 |
| 2,928 | | +6% | | 3,331 |
| -7% | | Cash flow used in investing activities |
| 7,288 |
| 6,702 |
| +9% |
* Change in debt from renewable projects (TotalEnergies share and partner share).
19
Cash flow
| | | | | | | | | | | | | | | | | | |
|
| |
| | | 2Q21 | | |
| 2Q21 |
| |
| |
| |
| 1H21 |
| | | | | | vs | | | | vs | | | | | | | | vs |
2Q21 | | 1Q21 | | 2Q20 | | 2Q20 | | 2Q19 | | 2Q19 | | in millions of dollars | | 1H21 | | 1H20 | | 1H20 |
6,761 |
| 5,750 |
| 4,143 | | +63% | | 7,308 |
| -7% | | Operating cash flow before working capital changes w/o financial charges (DACF) |
| 12,511 |
| 8,420 |
| +49% |
(409) |
| (384) |
| (499) | | ns | | (501) |
| ns | | Financial charges |
| (793) |
| (1,011) |
| ns |
6,352 |
| 5,366 |
| 3,644 | | +74% | | 6,807 |
| -7% | | Operating cash flow before working capital changes (a) * |
| 11,718 |
| 7,409 |
| +58% |
814 |
| (555) |
| (65) | | ns | | (417) |
| ns | | (Increase) decrease in working capital** |
| 259 |
| (698) |
| ns |
463 |
| 883 |
| (42) | | ns | | (40) |
| ns | | Inventory effect |
| 1,346 |
| (1,838) |
| ns |
- |
| (66) |
| (17) | | ns | | - |
| ns | | capital gain from renewable projects sale |
| (66) |
| (61) |
| ns |
(78) |
| (30) |
| (41) | | ns | | (99) |
| ns | | Organic loan repayment from equity affiliates |
| (108) |
| (34) |
| ns |
7,551 |
| 5,598 |
| 3,479 | | x2.2 | | 6,251 |
| +21% | | Cash flow from operations |
| 13,149 |
| 4,778 |
| x2.8 |
2,802 |
| 2,379 |
| 2,201 | | +27% | | 3,028 |
| -7% | | Organic investments (b) |
| 5,181 |
| 4,724 |
| +10% |
3,550 |
| 2,987 |
| 1,443 | | x2.5 | | 3,779 |
| -6% | | Free cash flow after organic investments, w/o net asset sales (a - b) |
| 6,537 |
| 2,685 |
| x2.4 |
3,198 |
| 3,969 |
| 2,922 | | +9% | | 3,430 |
| -7% | | Net investments (c) |
| 7,167 |
| 6,547 |
| +9% |
3,154 |
| 1,397 |
| 722 | | x4.4 | | 3,377 |
| -7% | | Net cash flow (a - c) |
| 4,551 |
| 862 |
| x5.3 |
* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020). Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
** Changes in working capital are presented excluding the mark-to-market effect of iGRP’s contracts.
Gearing ratio
| | | | | | | | | |
In millions of dollars |
| 06/30/2021 | | 03/31/2021 | | 06/30/2020 | | 06/30/2019 | |
Current borrowings* |
| 15,795 | | 19,279 | | 14,894 | | 15,290 | |
Other current financial liabilities |
| 322 | | 351 | | 411 | | 426 | |
Current financial assets* | | (4,326) | | (4,492) | | (6,383) | | (3,536) | |
Net financial assets classified as held for sale |
| - | | - | | - | | - | |
Non-current financial debt* |
| 44,687 | | 44,842 | | 54,214 | | 39,260 | |
Non-current financial assets* |
| (2,726) | | (2,669) | | (1,415) | | (721) | |
Cash and cash equivalents |
| (28,643) | | (30,285) | | (29,727) | | (26,723) | |
Net debt (a) |
| 25,109 | | 27,026 | | 31,994 | | 23,996 | |
Shareholders’ equity – TotalEnergies share |
| 108,096 | | 109,295 | | 101,205 | | 116,862 | |
Non-controlling interests |
| 2,480 | | 2,390 | | 2,334 | | 2,362 | |
Shareholders’ equity (b) |
| 110,576 | | 111,685 | | 103,539 | | 119,224 | |
Net-debt-to-capital ratio = a / (a+b) |
| 18.5% | | 19.5% | | 23.6% | | 16.8% | |
Leases (c) | | 7,702 | | 7,747 | | 7,383 | | 7,015 | |
Net-debt-to-capital ratio including leases (a+c) / (a+b+c) |
| 22.9% | | 23.7% | | 27.6% | | 20.6% | |
* Excludes leases receivables and leases debts.
20
RETURN ON AVERAGE CAPITAL EMPLOYED
Twelve months ended June 30, 2021
| | | | | | | | |
|
| |
| |
| |
| |
| | Integrated Gas, | | | | | | |
| | Renewables & | | Exploration & | | Refining & | | Marketing |
in millions of dollars | | Power | | Production | | Chemicals | | & Services |
Adjusted net operating income |
| 2,415 |
| 6,057 |
| 836 |
| 1,494 |
Capital employed at 6/30/2020* |
| 43,527 |
| 79,096 |
| 12,843 |
| 8,366 |
Capital employed at 6/30/2021* |
| 49,831 |
| 76,013 |
| 9,285 |
| 8,439 |
ROACE |
| 5.2% | | 7.8% | | 7.6% | | 17.8% |
Twelve months ended March 31, 2021
| | | | | | | | |
|
| Integrated |
| |
| |
| |
| | Gas, | | | | | | |
| | Renewables & | | Exploration & | | Refining & | | Marketing |
in millions of dollars | | Power | | Production | | Chemicals | | & Services |
Adjusted net operating income |
| 1,850 |
| 3,635 |
| 900 |
| 1,206 |
Capital employed at 3/31/2020* |
| 44,236 |
| 85,622 |
| 12,878 |
| 8,764 |
Capital employed at 3/31/2021* |
| 48,423 |
| 78,170 |
| 10,403 |
| 8,198 |
ROACE |
| 4.0% | | 4.4% | | 7.7% | | 14.2% |
Twelve months ended June 30, 2020
| | | | | | | | | |
|
| Integrated Gas, |
| |
| |
| |
|
| | Renewables & | | Exploration & | | Refining & | | Marketing & | |
in millions of dollars | | Power | | Production | | Chemicals | | Services | |
Adjusted net operating income |
| 2,607 |
| 4,259 |
| 2,489 |
| 1,318 | |
Capital employed at 6/30/2019* |
| 37,290 |
| 90,633 |
| 12,300 |
| 8,535 | |
Capital employed at 6/30/2020* |
| 43,527 |
| 79,096 |
| 12,843 |
| 8,366 | |
ROACE |
| 6.5% | | 5.0% | | 19.8% | | 15.6% | |
* At replacement cost (excluding after-tax inventory effect).
MAIN INDICATORS
| | | | | | | | | | | | |
|
| |
| |
| |
| |
| |
| Variable cost |
| | | | | | Average | | Average gas | | Average LNG | | margin, |
| | | | Brent | | liquids price* | | price* | | price** | | European |
| | $/€ | | ($/b) | | ($/b) | | ($/Mbtu) | | ($/Mbtu) | | refining*** ($/t) |
Second quarter 2021 |
| 1.21 |
| 69.0 |
| 62.9 |
| 4.43 |
| 6.59 |
| 10.2 |
First quarter 2021 |
| 1.20 |
| 61.1 |
| 56.4 |
| 4.06 |
| 6.08 |
| 5.3 |
Fourth quarter 2020 | | 1.19 | | 44.2 | | 41.0 | | 3.31 | | 4.90 | | 4.6 |
Third quarter 2020 | | 1.17 | | 42.9 | | 39.9 | | 2.52 | | 3.57 | | -2.7 |
Second quarter 2020 | | 1.10 | | 29.6 | | 23.4 | | 2.61 | | 4.40 | | 14.3 |
* Sales in $ / sales in volume for consolidated subsidiaries (excluding stock value variation).
** Sales in $ / sales in volume for consolidated subsidiaries and equity affiliates (excluding stock value variation).
*** This indicator represents the average margin on variable costs realized by TotalEnergies’ European refining business (equal to the difference between the sales of refined products realized by TotalEnergies’ European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons).
Disclaimer: Data is based on TotalEnergies’ reporting and is not audited.
21
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$)(a) | | 2021 | | 2021 | | 2020 |
| | | | | | |
Sales | | 47,049 | | 43,737 | | 25,730 |
Excise taxes | | (5,416) | | (5,104) | | (4,168) |
Revenues from sales | | 41,633 | | 38,633 | | 21,562 |
| | | | | | |
Purchases, net of inventory variation | | (26,719) | | (23,398) | | (12,025) |
Other operating expenses | | (6,717) | | (6,880) | | (6,321) |
Exploration costs | | (123) | | (167) | | (114) |
Depreciation, depletion and impairment of tangible assets and mineral interests | | (3,121) | | (3,325) | | (11,593) |
Other income | | 223 | | 358 | | 362 |
Other expense | | (298) | | (659) | | (108) |
| | | | | | |
Financial interest on debt | | (501) | | (466) | | (530) |
Financial income and expense from cash & cash equivalents | | 77 | | 95 | | 50 |
Cost of net debt | | (424) | | (371) | | (480) |
| | | | | | |
Other financial income | | 265 | | 109 | | 419 |
Other financial expense | | (131) | | (130) | | (161) |
| | | | | | |
Net income (loss) from equity affiliates | | (680) | | 881 | | (447) |
| | | | | | |
Income taxes | | (1,609) | | (1,639) | | 484 |
Consolidated net income | | 2,299 | | 3,412 | | (8,422) |
TotalEnergies share | | 2,206 | | 3,344 | | (8,369) |
Non-controlling interests | | 93 | | 68 | | (53) |
Earnings per share ($) | | 0.80 | | 1.24 | | (3.27) |
Fully-diluted earnings per share ($) | | 0.80 | | 1.23 | | (3.27) |
(a) Except for per share amounts.
22
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$) | | 2021 | | 2021 | | 2020 |
| | | | | | |
Consolidated net income | | 2,299 | | 3,412 | | (8,422) |
| | | | | | |
Other comprehensive income | |
| |
| |
|
| | | | | | |
Actuarial gains and losses | | 449 | | - | | (356) |
Change in fair value of investments in equity instruments | | 56 | | 12 | | 90 |
Tax effect | | (142) | | (12) | | 101 |
Currency translation adjustment generated by the parent company | | 1,239 | | (4,173) | | 1,780 |
Items not potentially reclassifiable to profit and loss | | 1,602 | | (4,173) | | 1,615 |
Currency translation adjustment | | (746) | | 2,523 | | (919) |
Cash flow hedge | | (424) | | 504 | | 231 |
Variation of foreign currency basis spread | | (4) | | - | | 14 |
Share of other comprehensive income of equity affiliates, net amount | | (18) | | 469 | | 296 |
Other | | (1) | | 1 | | - |
Tax effect | | 100 | | (157) | | (78) |
Items potentially reclassifiable to profit and loss | | (1,093) | | 3,340 | | (456) |
Total other comprehensive income (net amount) | | 509 | | (833) | | 1,159 |
| | | | | | |
Comprehensive income | | 2,808 | | 2,579 | | (7,263) |
TotalEnergies share | | 2,670 | | 2,542 | | (7,253) |
Non-controlling interests | | 138 | | 37 | | (10) |
23
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$)(a) | | 2021 | | 2020 |
| | | | |
Sales | | 90,786 | | 69,600 |
Excise taxes | | (10,520) | | (9,461) |
Revenues from sales | | 80,266 | | 60,139 |
| | | | |
Purchases, net of inventory variation | | (50,117) | | (40,093) |
Other operating expenses | | (13,597) | | (13,265) |
Exploration costs | | (290) | | (254) |
Depreciation, depletion and impairment of tangible assets and mineral interests | | (6,446) | | (15,228) |
Other income | | 581 | | 942 |
Other expense | | (957) | | (528) |
| | | | |
Financial interest on debt | | (967) | | (1,099) |
Financial income and expense from cash & cash equivalents | | 172 | | (105) |
Cost of net debt | | (795) | | (1,204) |
| | | | |
Other financial income | | 374 | | 607 |
Other financial expense | | (261) | | (342) |
| | | | |
Net income (loss) from equity affiliates | | 201 | | 285 |
| | | | |
Income taxes | | (3,248) | | 521 |
Consolidated net income | | 5,711 | | (8,420) |
TotalEnergies share | | 5,550 | | (8,335) |
Non-controlling interests | | 161 | | (85) |
Earnings per share ($) | | 2.04 | | (3.29) |
Fully-diluted earnings per share ($) | | 2.03 | | (3.29) |
(a) Except for per share amounts.
24
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$) | | 2021 | | 2020 |
| | | | |
Consolidated net income | | 5,711 | | (8,420) |
| | | | |
Other comprehensive income | |
| |
|
| | | | |
Actuarial gains and losses | | 449 | | (223) |
Change in fair value of investments in equity instruments | | 68 | | (74) |
Tax effect | | (154) | | 86 |
Currency translation adjustment generated by the parent company | | (2,934) | | (196) |
Items not potentially reclassifiable to profit and loss | | (2,571) | | (407) |
Currency translation adjustment | | 1,777 | | (940) |
Cash flow hedge | | 80 | | (1,293) |
Variation of foreign currency basis spread | | (4) | | 70 |
Share of other comprehensive income of equity affiliates, net amount | | 451 | | (927) |
Other | | - | | 3 |
Tax effect | | (57) | | 367 |
Items potentially reclassifiable to profit and loss | | 2,247 | | (2,720) |
Total other comprehensive income (net amount) | | (324) | | (3,127) |
| | | | |
Comprehensive income | | 5,387 | | (11,547) |
TotalEnergies share | | 5,212 | | (11,424) |
Non-controlling interests | | 175 | | (123) |
25
CONSOLIDATED BALANCE SHEET
TotalEnergies
| | | | | | | | |
|
| June 30, |
| March 31, |
| December 31, |
| June 30, |
| | 2021 | | 2021 | | 2020 | | 2020 |
| | | | | | | | |
(M$) | | (unaudited) | | (unaudited) | | | | (unaudited) |
| | | | | | | | |
ASSETS | |
| |
| |
| |
|
| | | | | | | | |
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets, net |
| 33,359 |
| 33,239 |
| 33,528 |
| 33,114 |
Property, plant and equipment, net |
| 106,791 |
| 106,859 |
| 108,335 |
| 104,925 |
Equity affiliates : investments and loans |
| 29,712 |
| 30,727 |
| 27,976 |
| 27,470 |
Other investments |
| 2,247 |
| 2,062 |
| 2,007 |
| 1,627 |
Non-current financial assets |
| 3,778 |
| 3,700 |
| 4,781 |
| 2,431 |
Deferred income taxes |
| 6,578 |
| 6,619 |
| 7,016 |
| 7,257 |
Other non-current assets |
| 2,800 |
| 2,638 |
| 2,810 |
| 2,539 |
Total non-current assets |
| 185,265 |
| 185,844 |
| 186,453 |
| 179,363 |
| | | | | | | | |
Current assets |
|
|
|
|
|
|
|
|
Inventories, net |
| 19,162 |
| 16,192 |
| 14,730 |
| 12,688 |
Accounts receivable, net |
| 17,192 |
| 17,532 |
| 14,068 |
| 13,481 |
Other current assets |
| 17,585 |
| 14,304 |
| 13,428 |
| 17,155 |
Current financial assets |
| 4,404 |
| 4,605 |
| 4,630 |
| 6,570 |
Cash and cash equivalents |
| 28,643 |
| 30,285 |
| 31,268 |
| 29,727 |
Assets classified as held for sale |
| 456 |
| 396 |
| 1,555 |
| 421 |
Total current assets |
| 87,442 |
| 83,314 |
| 79,679 |
| 80,042 |
Total assets |
| 272,707 |
| 269,158 |
| 266,132 |
| 259,405 |
| | | | | | | | |
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
| | | | | | | | |
Shareholders’ equity |
| |
|
|
|
|
|
|
Common shares |
| 8,224 |
| 8,193 |
| 8,267 |
| 8,159 |
Paid-in surplus and retained earnings |
| 110,967 |
| 112,676 |
| 107,078 |
| 107,934 |
Currency translation adjustment |
| (11,087) |
| (11,566) |
| (10,256) |
| (13,265) |
Treasury shares |
| (8) |
| (8) |
| (1,387) |
| (1,623) |
Total shareholders' equity - TotalEnergies share |
| 108,096 |
| 109,295 |
| 103,702 |
| 101,205 |
Non-controlling interests |
| 2,480 |
| 2,390 |
| 2,383 |
| 2,334 |
Total shareholders' equity |
| 110,576 |
| 111,685 |
| 106,085 |
| 103,539 |
| | | | | | | | |
Non-current liabilities |
|
|
|
|
|
|
|
|
Deferred income taxes |
| 10,596 |
| 10,387 |
| 10,326 |
| 10,346 |
Employee benefits |
| 3,305 |
| 3,644 |
| 3,917 |
| 3,612 |
Provisions and other non-current liabilities |
| 20,716 |
| 20,893 |
| 20,925 |
| 19,487 |
Non-current financial debt |
| 52,331 |
| 52,541 |
| 60,203 |
| 61,540 |
Total non-current liabilities |
| 86,948 |
| 87,465 |
| 95,371 |
| 94,985 |
| | | | | | | | |
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
| 29,752 |
| 26,959 |
| 23,574 |
| 19,198 |
Other creditors and accrued liabilities |
| 27,836 |
| 22,066 |
| 22,465 |
| 24,790 |
Current borrowings |
| 16,983 |
| 20,471 |
| 17,099 |
| 16,154 |
Other current financial liabilities |
| 322 |
| 351 |
| 203 |
| 411 |
Liabilities directly associated with the assets classified as held for sale |
| 290 |
| 161 |
| 1,335 |
| 328 |
Total current liabilities |
| 75,183 |
| 70,008 |
| 64,676 |
| 60,881 |
Total liabilities & shareholders' equity |
| 272,707 |
| 269,158 |
| 266,132 |
| 259,405 |
26
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$) | | 2021 | | 2021 | | 2020 |
| | | | | | |
CASH FLOW FROM OPERATING ACTIVITIES | |
| |
| |
|
| | | | | | |
Consolidated net income | | 2,299 | | 3,412 | | (8,422) |
Depreciation, depletion, amortization and impairment | | 3,287 | | 3,473 | | 11,701 |
Non-current liabilities, valuation allowances and deferred taxes | | 210 | | 121 | | (796) |
(Gains) losses on disposals of assets | | (85) | | (285) | | (131) |
Undistributed affiliates’ equity earnings | | 1,255 | | (573) | | 978 |
(Increase) decrease in working capital | | 669 | | (819) | | 431 |
Other changes, net | | (84) | | 269 | | (282) |
Cash flow from operating activities | | 7,551 | | 5,598 | | 3,479 |
| | | | | | |
CASH FLOW USED IN INVESTING ACTIVITIES | |
| |
| |
|
| | | | | | |
Intangible assets and property, plant and equipment additions | | (2,675) | | (2,410) | | (2,409) |
Acquisitions of subsidiaries, net of cash acquired | | (170) | | - | | - |
Investments in equity affiliates and other securities | | (307) | | (2,126) | | (136) |
Increase in non-current loans | | (380) | | (300) | | (733) |
Total expenditures | | (3,532) | | (4,836) | | (3,278) |
Proceeds from disposals of intangible assets and property, plant and equipment | | 45 | | 226 | | 219 |
Proceeds from disposals of subsidiaries, net of cash sold | | - | | 229 | | 12 |
Proceeds from disposals of non-current investments | | 216 | | 63 | | 20 |
Repayment of non-current loans | | 167 | | 134 | | 99 |
Total divestments | | 428 | | 652 | | 350 |
Cash flow used in investing activities | | (3,104) | | (4,184) | | (2,928) |
| | | | | | |
CASH FLOW USED IN FINANCING ACTIVITIES | |
| |
| |
|
| | | | | | |
Issuance (repayment) of shares: | |
| |
| |
|
- Parent company shareholders | | 381 | | - | | 374 |
- Treasury shares | | - | | (165) | | (2) |
Dividends paid: | | | |
| |
|
- Parent company shareholders | | (2,094) | | (2,090) | | (1,928) |
- Non-controlling interests | | (53) | | (10) | | (76) |
Net issuance (repayment) of perpetual subordinated notes | | - | | 3,248 | | - |
Payments on perpetual subordinated notes | | (147) | | (87) | | (134) |
Other transactions with non-controlling interests | | - | | (55) | | (22) |
Net issuance (repayment) of non-current debt | | 51 | | (890) | | 15,430 |
Increase (decrease) in current borrowings | | (4,369) | | (1,662) | | (6,604) |
Increase (decrease) in current financial assets and liabilities | | (67) | | (148) | | 449 |
Cash flow from (used in) financing activities | | (6,298) | | (1,859) | | 7,487 |
Net increase (decrease) in cash and cash equivalents | | (1,851) | | (445) | | 8,038 |
Effect of exchange rates | | 209 | | (538) | | 55 |
Cash and cash equivalents at the beginning of the period | | 30,285 | | 31,268 | | 21,634 |
Cash and cash equivalents at the end of the period | | 28,643 | | 30,285 | | 29,727 |
27
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$) | | 2021 | | 2020 |
| | | | |
CASH FLOW FROM OPERATING ACTIVITIES | |
| |
|
| | | | |
Consolidated net income | | 5,711 | | (8,420) |
Depreciation, depletion, amortization and impairment | | 6,760 | | 15,431 |
Non-current liabilities, valuation allowances and deferred taxes | | 331 | | (1,457) |
(Gains) losses on disposals of assets | | (370) | | (340) |
Undistributed affiliates’ equity earnings | | 682 | | 391 |
(Increase) decrease in working capital | | (150) | | (453) |
Other changes, net | | 185 | | (374) |
Cash flow from operating activities | | 13,149 | | 4,778 |
| | | | |
CASH FLOW USED IN INVESTING ACTIVITIES | |
| |
|
| | | | |
Intangible assets and property, plant and equipment additions | | (5,085) | | (4,773) |
Acquisitions of subsidiaries, net of cash acquired | | (170) | | (188) |
Investments in equity affiliates and other securities | | (2,433) | | (1,670) |
Increase in non-current loans | | (680) | | (1,028) |
Total expenditures | | (8,368) | | (7,659) |
Proceeds from disposals of intangible assets and property, plant and equipment | | 271 | | 263 |
Proceeds from disposals of subsidiaries, net of cash sold | | 229 | | 154 |
Proceeds from disposals of non-current investments | | 279 | | 315 |
Repayment of non-current loans | | 301 | | 225 |
Total divestments | | 1,080 | | 957 |
Cash flow used in investing activities | | (7,288) | | (6,702) |
| | | | |
CASH FLOW USED IN FINANCING ACTIVITIES | |
| |
|
| | | | |
Issuance (repayment) of shares: | |
| |
|
- Parent company shareholders | | 381 | | 374 |
- Treasury shares | | (165) | | (611) |
Dividends paid: | | | |
|
- Parent company shareholders | | (4,184) | | (3,810) |
- Non-controlling interests | | (63) | | (76) |
Net issuance (repayment) of perpetual subordinated notes | | 3,248 | | - |
Payments on perpetual subordinated notes | | (234) | | (231) |
Other transactions with non-controlling interests | | (55) | | (70) |
Net issuance (repayment) of non-current debt | | (839) | | 15,472 |
Increase (decrease) in current borrowings | | (6,031) | | (3,819) |
Increase (decrease) in current financial assets and liabilities | | (215) | | (2,546) |
Cash flow from (used in) financing activities | | (8,157) | | 4,683 |
Net increase (decrease) in cash and cash equivalents | | (2,296) | | 2,759 |
Effect of exchange rates | | (329) | | (384) |
Cash and cash equivalents at the beginning of the period | | 31,268 | | 27,352 |
Cash and cash equivalents at the end of the period | | 28,643 | | 29,727 |
28
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TotalEnergies
(unaudited)
| | | | | | | | | | | | | | | | | | |
| | | | | | Paid-in | | | | | | | | Shareholders’ | | | | |
| | | | | | surplus and | | Currency | | | | | | equity - | | Non- | | Total |
| | Common shares issued | | retained | | translation | | Treasury shares | | TotalEnergies | | controlling | | shareholders’ | ||||
(M$) |
| Number |
| Amount |
| earnings |
| adjustment |
| Number |
| Amount |
| Share |
| interests |
| equity |
As of January 1, 2020 | | 2,601,881,075 |
| 8,123 | | 121,170 | | (11,503) | | (15,474,234) |
| (1,012) | | 116,778 | | 2,527 | | 119,305 |
Net income of the first half 2020 | | - |
| - | | (8,335) | | - | | - |
| - | | (8,335) | | (85) | | (8,420) |
Other comprehensive income | | - |
| - | | (1,327) | | (1,762) | | - |
| - | | (3,089) | | (38) | | (3,127) |
Comprehensive Income | | - |
| - | | (9,662) | | (1,762) | | - |
| - | | (11,424) | | (123) | | (11,547) |
Dividend | | - |
| - | | (3,799) | | - | | - |
| - | | (3,799) | | (76) | | (3,875) |
Issuance of common shares | | 13,179,262 |
| 36 | | 338 | | - | | - |
| - | | 374 | | - | | 374 |
Purchase of treasury shares | | - |
| - | | - | | - | | (13,236,044) |
| (611) | | (611) | | - | | (611) |
Sale of treasury shares(a) | | - |
| - | | - | | - | | 3,680 |
| - | | - | | - | | - |
Share-based payments | | - |
| - | | 96 | | - | | - |
| - | | 96 | | - | | 96 |
Share cancellation | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Payments on perpetual subordinated notes | | - |
| - | | (143) | | - | | - |
| - | | (143) | | - | | (143) |
Other operations with non-controlling interests | | - |
| - | | (63) | | - | | - |
| - | | (63) | | (7) | | (70) |
Other items | | - |
| - | | (3) | | - | | - |
| - | | (3) | | 13 | | 10 |
As of June 30, 2020 | | 2,615,060,337 |
| 8,159 | | 107,934 | | (13,265) | | (28,706,598) |
| (1,623) | | 101,205 | | 2,334 | | 103,539 |
Net income of the second half 2020 | | - |
| - | | 1,093 | | - | | - |
| - | | 1,093 | | (9) | | 1,084 |
Other comprehensive income | | - |
| - | | 1,006 | | 3,013 | | - |
| - | | 4,019 | | 338 | | 4,357 |
Comprehensive Income | | - |
| - | | 2,099 | | 3,013 | | - |
| - | | 5,112 | | 329 | | 5,441 |
Dividend | | - |
| - | | (4,100) | | - | | - |
| - | | (4,100) | | (158) | | (4,258) |
Issuance of common shares | | 38,063,688 |
| 108 | | 1,132 | | - | | - |
| - | | 1,240 | | - | | 1,240 |
Purchase of treasury shares | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Sale of treasury shares(a) | | - |
| - | | (236) | | - | | 4,313,895 |
| 236 | | - | | - | | - |
Share-based payments | | - |
| - | | 92 | | - | | - |
| - | | 92 | | - | | 92 |
Share cancellation | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | 331 | | - | | - |
| - | | 331 | | - | | 331 |
Payments on perpetual subordinated notes | | - |
| - | | (165) | | - | | - |
| - | | (165) | | - | | (165) |
Other operations with non-controlling interests | | - |
| - | | 2 | | (4) | | - |
| - | | (2) | | (110) | | (112) |
Other items | | - |
| - | | (11) | | - | | - |
| - | | (11) | | (12) | | (23) |
As of December 31, 2020 | | 2,653,124,025 |
| 8,267 | | 107,078 | | (10,256) | | (24,392,703) |
| (1,387) | | 103,702 | | 2,383 | | 106,085 |
Net income of the first half 2021 | | - |
| - | | 5,550 | | - | | - |
| - | | 5,550 | | 161 | | 5,711 |
Other comprehensive income | | - |
| - | | 485 | | (823) | | - |
| - | | (338) | | 14 | | (324) |
Comprehensive Income | | - |
| - | | 6,035 | | (823) | | - |
| - | | 5,212 | | 175 | | 5,387 |
Dividend | | - |
| - | | (4,189) | | - | | - |
| - | | (4,189) | | (63) | | (4,252) |
Issuance of common shares | | 10,589,713 |
| 31 | | 350 | | - | | - |
| - | | 381 | | - | | 381 |
Purchase of treasury shares | | - |
| - | | - | | - | | (3,636,351) |
| (165) | | (165) | | - | | (165) |
Sale of treasury shares(a) | | - |
| - | | (216) | | - | | 4,570,220 |
| 216 | | - | | - | | - |
Share-based payments | | - |
| - | | 61 | | - | | - |
| - | | 61 | | - | | 61 |
Share cancellation | | (23,284,409) |
| (74) | | (1,254) | | - | | 23,284,409 |
| 1,328 | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | 3,254 | | - | | - |
| - | | 3,254 | | - | | 3,254 |
Payments on perpetual subordinated notes | | - |
| - | | (184) | | - | | - |
| - | | (184) | | - | | (184) |
Other operations with non-controlling interests | | - |
| - | | 26 | | (6) | | - |
| - | | 20 | | (20) | | - |
Other items | | - |
| - | | 6 | | (2) | | - |
| - | | 4 | | 5 | | 9 |
As of June 30, 2021 | | 2,640,429,329 |
| 8,224 | | 110,967 | | (11,087) | | (174,425) |
| (8) | | 108,096 | | 2,480 | | 110,576 |
(a)Treasury shares related to the performance share grants.
29
TotalEnergies
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST SIX MONTHS 2021
(unaudited)
1) Accounting policies
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).
The interim consolidated financial statements of TotalEnergies SE and its subsidiaries (the Company) as of June 30, 2021, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.
The accounting principles applied for the consolidated financial statements at June 30, 2021, are consistent with those used for the financial statements at December 31, 2020. Since January 1, 2020, the Company has early adopted the amendments to IFRS 7 and IFRS 9 relating to the interest rate benchmark reform phase II. In particular, these amendments allow to maintain the hedge accounting qualification of interest rate derivatives.
The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2021 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.
These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.
The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2020.
Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management of the Company applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.
30
2) Changes in the Company structure
2.1) Main acquisitions and divestments
| Ø | Integrated Gas, Renewables & Power |
| ● | In January 2021, TotalEnergies finalized the acquisition of a 20% minority interest in Adani Green Energy Limited (AGEL) from Adani Group. Adani Green Energy Limited (AGEL), a part of the Adani Group, has 14.6 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties. |
| Ø | Refining & Chemicals |
| ● | In February 2021, TotalEnergies finalized the sale of Lindsey refinery and its associated logistic assets, as well as all the related rights and obligations, to the Prax Group. |
2.2) Divestment projects
| Ø | Exploration & Production |
| ● | TotalEnergies has initiated the sale process of its 30.323% interest in the share capital of Petrocedeño in Venezuela. As mentioned in Note 8 Subsequent Events, this process led to the execution on July 9, 2021 of a Share Purchase Agreement with PDVSA. |
As of June 30, 2021, the assets have been classified as “assets classified as held for sale” for a null value. These assets are the shares of Petrocedeño, as consolidated under the equity method and recorded at their sale price; this transaction triggering a loss of $1.38 billion in the financial statements of TotalEnergies.
| ● | On July 30, 2020, TotalEnergies announced that its 58% owned affiliate Total Gabon has signed an agreement with Perenco to divest its interests in seven mature non-operated offshore fields, along with its interests and operatorship in the Cap Lopez oil terminal. The transaction remains subject to approval by the Gabonese authorities. |
As of June 30, 2021, the assets and liabilities have been respectively classified in the consolidated balance sheet as "assets classified as held for sale" for an amount of $398 million and “liabilities classified as held for sale” for an amount of $169 million. These assets mainly include tangible assets.
3) Business segment information
Description of the business segments
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TotalEnergies and which is reviewed by the main operational decision-making body of the Company, namely the Executive Committee.
The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The organization of the Company’s activities is structured around the four followings segments:
- | an Exploration & Production segment; |
- | an Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity; |
31
- | a Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining, petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping; |
- | a Marketing & Services segment including the global activities of supply and marketing in the field of petroleum products; |
In addition the Corporate segment includes holdings operating and financial activities.
Adjustment items
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
Adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) The inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost methods.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for certain transactions differences between the internal measure of performance used by TotalEnergies’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in the Company’s internal economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
32
3.1) Information by business segment
| | | | | | | | | | | | | | |
1st half 2021 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 3,257 |
| 10,588 |
| 40,054 |
| 36,880 |
| 7 |
| - |
| 90,786 |
Intersegment sales |
| 14,433 |
| 1,555 |
| 11,890 |
| 186 |
| 68 |
| (28,132) |
| - |
Excise taxes |
| - |
| - |
| (630) |
| (9,890) |
| - |
| - |
| (10,520) |
Revenues from sales |
| 17,690 |
| 12,143 |
| 51,314 |
| 27,176 |
| 75 |
| (28,132) |
| 80,266 |
Operating expenses |
| (7,352) |
| (10,321) |
| (48,579) |
| (25,510) |
| (374) |
| 28,132 |
| (64,004) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,317) |
| (762) |
| (787) |
| (526) |
| (54) |
| - |
| (6,446) |
Operating income |
| 6,021 |
| 1,060 |
| 1,948 |
| 1,140 |
| (353) |
| - |
| 9,816 |
Net income (loss) from equity affiliates and other items |
| (973) |
| 682 |
| 211 |
| 23 |
| (5) |
| - |
| (62) |
Tax on net operating income |
| (2,375) |
| (157) |
| (561) |
| (352) |
| 54 |
| - |
| (3,391) |
Net operating income |
| 2,673 |
| 1,585 |
| 1,598 |
| 811 |
| (304) |
| - |
| 6,363 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (652) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (161) |
Net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
|
| 5,550 |
| | | | | | | | | | | | | | |
1st half 2021 (adjustments)(a) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - |
| (44) |
| - |
| - |
| - |
| - |
| (44) |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - |
| (44) |
| - |
| - |
| - |
| - |
| (44) |
Operating expenses |
| (23) |
| (62) |
| 1,131 |
| 213 |
| - |
| - |
| 1,259 |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| - |
| (148) |
| (13) |
| - |
| - |
| - |
| (161) |
Operating income (b) |
| (23) |
| (254) |
| 1,118 |
| 213 |
| - |
| - |
| 1,054 |
Net income (loss) from equity affiliates and other items |
| (1,482) |
| (96) |
| 28 |
| (43) |
| (62) |
| - |
| (1,655) |
Tax on net operating income |
| (10) |
| 59 |
| (302) |
| (60) |
| 2 |
| - |
| (311) |
Net operating income (b) |
| (1,515) |
| (291) |
| 844 |
| 110 |
| (60) |
| - |
| (912) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| 10 |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (14) |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (916) |
| | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- On operating income |
| - |
| - |
| 1,140 |
| 206 |
| - |
|
|
|
|
- On net operating income |
| - |
| - |
| 937 |
| 148 |
| - |
|
|
|
|
| | | | | | | | | | | | | | |
1st half 2021 (adjusted) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 3,257 |
| 10,632 |
| 40,054 |
| 36,880 |
| 7 |
| - |
| 90,830 |
Intersegment sales |
| 14,433 |
| 1,555 |
| 11,890 |
| 186 |
| 68 |
| (28,132) |
| - |
Excise taxes |
| - |
| - |
| (630) |
| (9,890) |
| - |
| - |
| (10,520) |
Revenues from sales |
| 17,690 |
| 12,187 |
| 51,314 |
| 27,176 |
| 75 |
| (28,132) |
| 80,310 |
Operating expenses |
| (7,329) |
| (10,259) |
| (49,710) |
| (25,723) |
| (374) |
| 28,132 |
| (65,263) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,317) |
| (614) |
| (774) |
| (526) |
| (54) |
| - |
| (6,285) |
Adjusted operating income |
| 6,044 |
| 1,314 |
| 830 |
| 927 |
| (353) |
| - |
| 8,762 |
Net income (loss) from equity affiliates and other items |
| 509 |
| 778 |
| 183 |
| 66 |
| 57 |
| - |
| 1,593 |
Tax on net operating income |
| (2,365) |
| (216) |
| (259) |
| (292) |
| 52 |
| - |
| (3,080) |
Adjusted net operating income |
| 4,188 |
| 1,876 |
| 754 |
| 701 |
| (244) |
| - |
| 7,275 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (662) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (147) |
Adjusted net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| 6,466 |
| | | | | | | | | | | | | | |
1st half 2021 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 3,195 |
| 4,187 |
| 578 |
| 360 |
| 48 |
| |
| 8,368 |
Total divestments |
| 374 |
| 452 |
| 129 |
| 107 |
| 18 |
| |
| 1,080 |
Cash flow from operating activities |
| 8,571 |
| 1,347 |
| 3,228 |
| 1,102 |
| (1,099) |
| |
| 13,149 |
33
| | | | | | | | | | | | | | |
1st half 2020 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 2,574 |
| 8,403 |
| 27,956 |
| 30,661 |
| 6 |
| - |
| 69,600 |
Intersegment sales |
| 8,661 |
| 895 |
| 9,051 |
| 196 |
| 59 |
| (18,862) |
| - |
Excise taxes |
| - |
| - |
| (1,119) |
| (8,342) |
| - |
| - |
| (9,461) |
Revenues from sales |
| 11,235 |
| 9,298 |
| 35,888 |
| 22,515 |
| 65 |
| (18,862) |
| 60,139 |
Operating expenses |
| (6,048) |
| (8,398) |
| (35,736) |
| (21,730) |
| (562) |
| 18,862 |
| (53,612) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (12,311) |
| (1,616) |
| (788) |
| (473) |
| (40) |
| - |
| (15,228) |
Operating income |
| (7,124) |
| (716) |
| (636) |
| 312 |
| (537) |
| - |
| (8,701) |
Net income (loss) from equity affiliates and other items |
| 440 |
| 420 |
| (92) |
| 32 |
| 164 |
| - |
| 964 |
Tax on net operating income |
| (56) |
| 330 |
| 203 |
| (159) |
| 2 |
| - |
| 320 |
Net operating income |
| (6,740) |
| 34 |
| (525) |
| 185 |
| (371) |
| - |
| (7,417) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (1,003) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 85 |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (8,335) |
| | | | | | | | | | | | | | |
1st half 2020 (adjustments)(a) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - |
| (16) |
| - |
| - |
| - |
| - |
| (16) |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - |
| (16) |
| - |
| - |
| - |
| - |
| (16) |
Operating expenses |
| (37) |
| (318) |
| (1,637) |
| (341) |
| (91) |
| - |
| (2,424) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (7,338) |
| (953) |
| - |
| - |
| - |
| - |
| (8,291) |
Operating income (b) |
| (7,375) |
| (1,287) |
| (1,637) |
| (341) |
| (91) |
| - |
| (10,731) |
Net income (loss) from equity affiliates and other items |
| 71 |
| (292) |
| (271) |
| (5) |
| - |
| - |
| (497) |
Tax on net operating income |
| 70 |
| 374 |
| 426 |
| 100 |
| 12 |
| - |
| 982 |
Net operating income (b) |
| (7,234) |
| (1,205) |
| (1,482) |
| (246) |
| (79) |
| - |
| (10,246) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (68) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 72 |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (10,242) |
| | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- On operating income |
| - | | - |
| (1,604) |
| (234) |
| - |
|
|
|
|
- On net operating income |
| - |
| - |
| (1,371) |
| (163) |
| - |
|
|
|
|
| | | | | | | | | | | | | | |
1st half 2020 (adjusted) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 2,574 |
| 8,419 |
| 27,956 |
| 30,661 |
| 6 |
| - |
| 69,616 |
Intersegment sales |
| 8,661 |
| 895 |
| 9,051 |
| 196 |
| 59 |
| (18,862) |
| - |
Excise taxes |
| - |
| - |
| (1,119) |
| (8,342) |
| - |
| - |
| (9,461) |
Revenues from sales |
| 11,235 |
| 9,314 |
| 35,888 |
| 22,515 |
| 65 |
| (18,862) |
| 60,155 |
Operating expenses |
| (6,011) |
| (8,080) |
| (34,099) |
| (21,389) |
| (471) |
| 18,862 |
| (51,188) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,973) |
| (663) |
| (788) |
| (473) |
| (40) |
| - |
| (6,937) |
Adjusted operating income |
| 251 |
| 571 |
| 1,001 |
| 653 |
| (446) |
| - |
| 2,030 |
Net income (loss) from equity affiliates and other items |
| 369 |
| 712 |
| 179 |
| 37 |
| 164 |
| - |
| 1,461 |
Tax on net operating income |
| (126) |
| (44) |
| (223) |
| (259) |
| (10) |
| - |
| (662) |
Adjusted net operating income |
| 494 |
| 1,239 |
| 957 |
| 431 |
| (292) |
| - |
| 2,829 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (935) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 13 |
Adjusted net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| 1,907 |
| | | | | | | | | | | | | | |
1st half 2020 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 3,265 |
| 3,461 |
| 533 |
| 334 |
| 66 |
| |
| 7,659 |
Total divestments |
| 325 |
| 433 |
| 101 |
| 72 |
| 26 |
| |
| 957 |
Cash flow from operating activities |
| 4,833 |
| 900 |
| (103) |
| 420 |
| (1,272) |
| |
| 4,778 |
34
| | | | | | | | | | | | | | |
2nd quarter 2021 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 1,743 |
| 5,086 |
| 20,853 |
| 19,367 |
| - |
| - |
| 47,049 |
Intersegment sales |
| 7,855 |
| 744 |
| 6,369 |
| 108 |
| 39 |
| (15,115) |
| - |
Excise taxes |
| - |
| - |
| (225) |
| (5,191) |
| - |
| - |
| (5,416) |
Revenues from sales |
| 9,598 |
| 5,830 |
| 26,997 |
| 14,284 |
| 39 |
| (15,115) |
| 41,633 |
Operating expenses |
| (4,284) |
| (5,103) |
| (25,646) |
| (13,434) |
| (207) |
| 15,115 |
| (33,559) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,134) |
| (291) |
| (396) |
| (271) |
| (29) |
| - |
| (3,121) |
Operating income |
| 3,180 |
| 436 |
| 955 |
| 579 |
| (197) |
| - |
| 4,953 |
Net income (loss) from equity affiliates and other items |
| (1,243) |
| 419 |
| 123 |
| 57 |
| 23 |
| - |
| (621) |
Tax on net operating income |
| (1,195) |
| (56) |
| (281) |
| (176) |
| 16 |
| - |
| (1,692) |
Net operating income |
| 742 |
| 799 |
| 797 |
| 460 |
| (158) |
| - |
| 2,640 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (341) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (93) |
Net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
|
| 2,206 |
| | | | | | | | | | | | | | |
2nd quarter 2021 (adjustments)(a) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - |
| (9) | | - |
| - |
| - |
| - |
| (9) |
Intersegment sales |
| - |
| - | | - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - | | - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - |
| (9) | | - |
| - |
| - |
| - |
| (9) |
Operating expenses |
| (23) |
| (54) | | 386 |
| 71 |
| - |
| - |
| 380 |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| - |
| (3) | | (13) |
| - |
| - |
| - |
| (16) |
Operating income (b) |
| (23) |
| (66) | | 373 |
| 71 |
| - |
| - |
| 355 |
Net income (loss) from equity affiliates and other items |
| (1,436) |
| (47) | | 22 |
| (8) |
| (22) |
| - |
| (1,491) |
Tax on net operating income |
| (12) |
| 21 | | (109) |
| (20) |
| - |
| - |
| (120) |
Net operating income (b) |
| (1,471) |
| (92) | | 286 |
| 43 |
| (22) |
| - |
| (1,256) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| 4 |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (5) |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (1,257) |
| | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- On operating income |
| - |
| - |
| 394 |
| 69 |
| - |
|
|
|
|
- On net operating income |
| - |
| - |
| 331 |
| 50 |
| - |
|
|
|
|
| | | | | | | | | | | | | | |
2nd quarter 2021 (adjusted) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 1,743 |
| 5,095 |
| 20,853 |
| 19,367 |
| - |
| - |
| 47,058 |
Intersegment sales |
| 7,855 |
| 744 |
| 6,369 |
| 108 |
| 39 |
| (15,115) |
| - |
Excise taxes |
| - |
| - |
| (225) |
| (5,191) |
| - |
| - |
| (5,416) |
Revenues from sales |
| 9,598 |
| 5,839 |
| 26,997 |
| 14,284 |
| 39 |
| (15,115) |
| 41,642 |
Operating expenses |
| (4,261) |
| (5,049) |
| (26,032) |
| (13,505) |
| (207) |
| 15,115 |
| (33,939) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,134) |
| (288) |
| (383) |
| (271) |
| (29) |
| - |
| (3,105) |
Adjusted operating income |
| 3,203 |
| 502 |
| 582 |
| 508 |
| (197) |
| - |
| 4,598 |
Net income (loss) from equity affiliates and other items |
| 193 |
| 466 |
| 101 |
| 65 |
| 45 |
| - |
| 870 |
Tax on net operating income |
| (1,183) |
| (77) |
| (172) |
| (156) |
| 16 |
| - |
| (1,572) |
Adjusted net operating income |
| 2,213 |
| 891 |
| 511 |
| 417 |
| (136) |
| - |
| 3,896 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (345) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| (88) |
Adjusted net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| 3,463 |
| | | | | | | | | | | | | | |
2nd quarter 2021 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 1,830 |
| 1,167 |
| 291 |
| 222 |
| 22 |
| |
| 3,532 |
Total divestments |
| 63 |
| 310 |
| 13 |
| 36 |
| 6 |
| |
| 428 |
Cash flow from operating activities |
| 4,835 |
| 567 |
| 2,232 |
| 437 |
| (520) |
| |
| 7,551 |
35
| | | | | | | | | | | | | | |
2nd quarter 2020 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 992 |
| 3,313 |
| 9,433 |
| 11,986 |
| 6 |
| - |
| 25,730 |
Intersegment sales |
| 3,097 |
| 301 |
| 2,956 | | 107 |
| 31 |
| (6,492) |
| - |
Excise taxes |
| - |
| - |
| (469) | | (3,699) |
| - |
| - |
| (4,168) |
Revenues from sales |
| 4,089 |
| 3,614 |
| 11,920 |
| 8,394 |
| 37 |
| (6,492) |
| 21,562 |
Operating expenses |
| (2,405) |
| (3,406) |
| (10,895) |
| (7,931) |
| (315) |
| 6,492 |
| (18,460) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (9,667) |
| (1,282) |
| (393) |
| (229) |
| (22) |
| - |
| (11,593) |
Operating income |
| (7,983) |
| (1,074) |
| 632 |
| 234 |
| (300) |
| - |
| (8,491) |
Net income (loss) from equity affiliates and other items |
| 17 |
| 21 |
| (35) |
| 22 |
| 40 |
| - |
| 65 |
Tax on net operating income |
| 398 |
| 322 |
| (132) |
| (127) |
| (26) |
| - |
| 435 |
Net operating income |
| (7,568) |
| (731) |
| 465 |
| 129 |
| (286) |
| - |
| (7,991) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (431) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 53 |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (8,369) |
| | | | | | | | | | | | | | |
2nd quarter 2020 (adjustments)(a) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - |
| (18) |
| - |
| - |
| - |
| - |
| (18) |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - |
| (18) |
| - |
| - |
| - |
| - |
| (18) |
Operating expenses |
| (27) |
| (199) |
| (48) |
| 5 |
| (36) |
| - |
| (305) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (7,338) |
| (953) |
| - |
| - |
| - |
| - |
| (8,291) |
Operating income (b) |
| (7,365) |
| (1,170) |
| (48) |
| 5 |
| (36) |
| - |
| (8,614) |
Net income (loss) from equity affiliates and other items |
| (57) |
| (217) |
| (63) |
| (5) |
| - |
| - |
| (342) |
Tax on net operating income |
| 63 |
| 330 |
| 1 |
| - |
| 12 |
| - |
| 406 |
Net operating income (b) |
| (7,359) |
| (1,057) |
| (110) |
| - |
| (24) |
| - |
| (8,550) |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| 33 |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 22 |
Net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| (8,495) |
| | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- On operating income |
| - |
| - |
| (26) |
| (16) |
| - |
|
|
|
|
- On net operating income |
| - |
| - |
| (86) |
| (9) |
| - |
|
|
|
|
| | | | | | | | | | | | | | |
2nd quarter 2020 (adjusted) | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 992 |
| 3,331 |
| 9,433 |
| 11,986 |
| 6 |
| - |
| 25,748 |
Intersegment sales |
| 3,097 |
| 301 |
| 2,956 |
| 107 |
| 31 |
| (6,492) |
| - |
Excise taxes |
| - |
| - |
| (469) |
| (3,699) |
| - |
| - |
| (4,168) |
Revenues from sales |
| 4,089 |
| 3,632 |
| 11,920 |
| 8,394 |
| 37 |
| (6,492) |
| 21,580 |
Operating expenses |
| (2,378) |
| (3,207) |
| (10,847) |
| (7,936) |
| (279) |
| 6,492 |
| (18,155) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,329) |
| (329) |
| (393) |
| (229) |
| (22) |
| - |
| (3,302) |
Adjusted operating income |
| (618) |
| 96 |
| 680 |
| 229 |
| (264) |
| - |
| 123 |
Net income (loss) from equity affiliates and other items |
| 74 |
| 238 |
| 28 |
| 27 |
| 40 |
| - |
| 407 |
Tax on net operating income |
| 335 |
| (8) |
| (133) |
| (127) |
| (38) |
| - |
| 29 |
Adjusted net operating income |
| (209) |
| 326 |
| 575 |
| 129 |
| (262) |
| - |
| 559 |
Net cost of net debt |
| |
|
|
|
|
|
|
|
|
|
|
| (464) |
Non-controlling interests |
| |
|
|
|
|
|
|
|
|
|
|
| 31 |
Adjusted net income - TotalEnergies share |
| |
|
|
|
|
|
|
|
|
|
|
| 126 |
| | | | | | | | | | | | | | |
2nd quarter 2020 | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | | | | |
| | & | | Renewables | | & | | & | | | | | | |
(M$) |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 1,606 |
| 1,170 |
| 307 |
| 174 |
| 21 |
| |
| 3,278 |
Total divestments |
| 204 |
| 89 |
| 22 |
| 26 |
| 9 |
| |
| 350 |
Cash flow from operating activities |
| 910 |
| 1,389 |
| 1,080 |
| 819 |
| (719) |
| |
| 3,479 |
36
3.2) Reconciliation of the information by business segment with consolidated financial statements
| | | | | | |
| | | | | | Consolidated |
1st half 2021 | | | | | | statement of |
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | 90,830 | | (44) | | 90,786 |
Excise taxes |
| (10,520) |
| - |
| (10,520) |
Revenues from sales |
| 80,310 |
| (44) |
| 80,266 |
| | | | | | |
Purchases net of inventory variation |
| (51,397) |
| 1,280 |
| (50,117) |
Other operating expenses |
| (13,576) |
| (21) |
| (13,597) |
Exploration costs |
| (290) |
| - |
| (290) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,285) |
| (161) |
| (6,446) |
Other income |
| 554 |
| 27 |
| 581 |
Other expense |
| (334) |
| (623) |
| (957) |
| | | | | | |
Financial interest on debt |
| (967) |
| - |
| (967) |
Financial income and expense from cash & cash equivalents |
| 156 |
| 16 |
| 172 |
Cost of net debt |
| (811) |
| 16 |
| (795) |
| | | | | | |
Other financial income |
| 374 |
| - |
| 374 |
Other financial expense |
| (261) |
| - |
| (261) |
| | | | | | |
Net income (loss) from equity affiliates |
| 1,260 |
| (1,059) |
| 201 |
| | | | | | |
Income taxes |
| (2,931) |
| (317) |
| (3,248) |
Consolidated net income |
| 6,613 |
| (902) |
| 5,711 |
TotalEnergies share |
| 6,466 |
| (916) |
| 5,550 |
Non-controlling interests |
| 147 |
| 14 |
| 161 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| | | | | | |
| | | | | | Consolidated |
1st half 2020 | | | | | | statement of |
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | 69,616 | | (16) | | 69,600 |
Excise taxes |
| (9,461) |
| - |
| (9,461) |
Revenues from sales |
| 60,155 |
| (16) |
| 60,139 |
| | | | | | |
Purchases net of inventory variation |
| (37,949) |
| (2,144) |
| (40,093) |
Other operating expenses |
| (12,985) |
| (280) |
| (13,265) |
Exploration costs |
| (254) |
| - |
| (254) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,937) |
| (8,291) |
| (15,228) |
Other income |
| 820 |
| 122 |
| 942 |
Other expense |
| (294) |
| (234) |
| (528) |
| | | | | | |
Financial interest on debt |
| (1,094) |
| (5) |
| (1,099) |
Financial income and expense from cash & cash equivalents |
| (13) |
| (92) |
| (105) |
Cost of net debt |
| (1,107) |
| (97) |
| (1,204) |
| | | | | | |
Other financial income |
| 607 |
| - |
| 607 |
Other financial expense |
| (341) |
| (1) |
| (342) |
| | | | | | |
Net income (loss) from equity affiliates |
| 669 |
| (384) |
| 285 |
| | | | | | |
Income taxes |
| (490) |
| 1,011 |
| 521 |
Consolidated net income |
| 1,894 |
| (10,314) |
| (8,420) |
TotalEnergies share |
| 1,907 |
| (10,242) |
| (8,335) |
Non-controlling interests |
| (13) |
| (72) |
| (85) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
37
| | | | | | |
| | | |
| | Consolidated |
2nd quarter 2021 | | | | | | statement |
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| 47,058 |
| (9) |
| 47,049 |
Excise taxes |
| (5,416) |
| - |
| (5,416) |
Revenues from sales |
| 41,642 |
| (9) |
| 41,633 |
| | | | | | |
Purchases net of inventory variation |
| (27,108) |
| 389 |
| (26,719) |
Other operating expenses |
| (6,708) |
| (9) |
| (6,717) |
Exploration costs |
| (123) |
| - |
| (123) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,105) |
| (16) |
| (3,121) |
Other income |
| 138 |
| 85 |
| 223 |
Other expense |
| (142) |
| (156) |
| (298) |
| | | | | | |
Financial interest on debt |
| (501) |
| - |
| (501) |
Financial income and expense from cash & cash equivalents |
| 69 |
| 8 |
| 77 |
Cost of net debt |
| (432) |
| 8 |
| (424) |
| | | | | | |
Other financial income |
| 265 |
| - |
| 265 |
Other financial expense |
| (131) |
| - |
| (131) |
| | | | | | |
Net income (loss) from equity affiliates |
| 740 |
| (1,420) |
| (680) |
| | | | | | |
Income taxes |
| (1,485) |
| (124) |
| (1,609) |
Consolidated net income |
| 3,551 |
| (1,252) |
| 2,299 |
TotalEnergies share |
| 3,463 |
| (1,257) |
| 2,206 |
Non-controlling interests |
| 88 |
| 5 |
| 93 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| | | | | | |
| | | |
| | Consolidated |
2nd quarter 2020 | | | | | | statement |
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| 25,748 |
| (18) |
| 25,730 |
Excise taxes |
| (4,168) |
| - |
| (4,168) |
Revenues from sales |
| 21,580 |
| (18) |
| 21,562 |
| | | | | | |
Purchases net of inventory variation |
| (11,842) |
| (183) |
| (12,025) |
Other operating expenses |
| (6,199) |
| (122) |
| (6,321) |
Exploration costs |
| (114) |
| - |
| (114) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,302) |
| (8,291) |
| (11,593) |
Other income |
| 240 |
| 122 |
| 362 |
Other expense |
| (103) |
| (5) |
| (108) |
| | | | | | |
Financial interest on debt |
| (527) |
| (3) |
| (530) |
Financial income and expense from cash & cash equivalents |
| (3) |
| 53 |
| 50 |
Cost of net debt |
| (530) |
| 50 |
| (480) |
| | | | | | |
Other financial income |
| 419 |
| - |
| 419 |
Other financial expense |
| (160) |
| (1) |
| (161) |
| | | | | | |
Net income (loss) from equity affiliates |
| 11 |
| (458) |
| (447) |
| | | | | | |
Income taxes |
| 95 |
| 389 |
| 484 |
Consolidated net income |
| 95 |
| (8,517) |
| (8,422) |
TotalEnergies share |
| 126 |
| (8,495) |
| (8,369) |
Non-controlling interests |
| (31) |
| (22) |
| (53) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
38
3.3) Adjustment items
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
| | | | | | | | | | | | | | |
|
| | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | |
|
| | | | & | | Renewables | | & | | & | | | | |
(M$) |
| |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Total |
2nd quarter 2021 | | Inventory valuation effect | | - | | - | | 394 | | 69 | | - | | 463 |
| | Effect of changes in fair value | | - | | (49) | | - | | - | | - | | (49) |
|
| Restructuring charges |
| - |
| (1) |
| (8) |
| - |
| - |
| (9) |
|
| Asset impairment charges |
| - |
| (3) |
| (13) |
| - |
| - |
| (16) |
|
| Other items |
| (23) |
| (13) |
| - |
| 2 |
| - |
| (34) |
Total |
| | | (23) |
| (66) |
| 373 |
| 71 |
| - |
| 355 |
2nd quarter 2020 |
| Inventory valuation effect |
| - | | - | | (26) | | (16) | | - | | (42) |
|
| Effect of changes in fair value |
| - | | (100) | | - | | - | | - | | (100) |
|
| Restructuring charges |
| - |
| (10) |
| (7) |
| - |
| - |
| (17) |
|
| Asset impairment charges |
| (7,338) |
| (953) |
| - |
| - |
| - |
| (8,291) |
|
| Other items |
| (27) |
| (107) |
| (15) |
| 21 |
| (36) |
| (164) |
Total |
| | | (7,365) |
| (1,170) |
| (48) |
| 5 |
| (36) |
| (8,614) |
1st half 2021 |
| Inventory valuation effect |
| - |
| - |
| 1,140 |
| 206 |
| - |
| 1,346 |
|
| Effect of changes in fair value |
| - |
| (58) |
| - |
| - |
| - |
| (58) |
|
| Restructuring charges |
| - |
| (10) |
| (8) |
| - |
| - |
| (18) |
|
| Asset impairment charges |
| - |
| (148) |
| (13) |
| - |
| - |
| (161) |
|
| Other items |
| (23) |
| (38) |
| (1) |
| 7 |
| - |
| (55) |
Total |
| | | (23) |
| (254) |
| 1,118 |
| 213 |
| - |
| 1,054 |
1st half 2020 |
| Inventory valuation effect |
| - |
| - |
| (1,604) |
| (234) |
| - |
| (1,838) |
|
| Effect of changes in fair value |
| - |
| (98) |
| - |
| - |
| - |
| (98) |
|
| Restructuring charges |
| (10) |
| (18) |
| (7) |
| - |
| - |
| (35) |
|
| Asset impairment charges |
| (7,338) |
| (953) |
| - |
| - |
| - |
| (8,291) |
|
| Other items |
| (27) |
| (218) |
| (26) |
| (107) |
| (91) |
| (469) |
Total |
| | | (7,375) |
| (1,287) |
| (1,637) |
| (341) |
| (91) |
| (10,731) |
39
ADJUSTMENTS TO NET INCOME, TotalEnergies SHARE
| | | | | | | | | | | | | | |
| | | | Exploration | | Integrated Gas, | | Refining | | Marketing | | | |
|
| | | | & | | Renewables | | & | | & | | | | |
(M$) |
| |
| Production |
| & Power |
| Chemicals |
| Services |
| Corporate |
| Total |
2nd quarter 2021 | | Inventory valuation effect | | - | | - | | 327 | | 48 | | - | | 375 |
| | Effect of changes in fair value | | - | | (44) | | - | | - | | - | | (44) |
|
| Restructuring charges |
| (44) |
| (4) |
| (32) |
| (8) |
| (22) |
| (110) |
|
| Asset impairment charges |
| - |
| (36) |
| (13) |
| - |
| - |
| (49) |
|
| Gains (losses) on disposals of assets |
| (1,379) | * | - |
| - |
| - |
| - |
| (1,379) |
|
| Other items |
| (44) |
| (7) |
| - |
| 1 |
| - |
| (50) |
Total |
| | | (1,467) |
| (91) |
| 282 |
| 41 |
| (22) |
| (1,257) |
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | |
2nd quarter 2020 |
| Inventory valuation effect |
| - | | - | | (83) | | (11) | | - | | (94) |
|
| Effect of changes in fair value |
| - | | (80) | | - | | - | | - | | (80) |
|
| Restructuring charges |
| - |
| (10) |
| (10) |
| - |
| - |
| (20) |
|
| Asset impairment charges |
| (7,272) |
| (829) |
| - |
| - |
| - |
| (8,101) |
|
| Gains (losses) on disposals of assets |
| - |
| - | | - |
| - |
| - |
| - |
|
| Other items |
| (77) |
| (131) |
| (14) |
| 10 |
| 12 |
| (200) |
Total |
| | | (7,349) |
| (1,050) |
| (107) |
| (1) |
| 12 |
| (8,495) |
1st half 2021 |
| Inventory valuation effect |
| - |
| - |
| 926 |
| 138 |
| - |
| 1,064 |
|
| Effect of changes in fair value |
| - |
| (50) |
| - |
| - |
| - |
| (50) |
|
| Restructuring charges |
| (85) |
| (12) |
| (71) |
| (43) |
| (60) |
| (271) |
|
| Asset impairment charges |
| - |
| (180) |
| (13) |
| - |
| - |
| (193) |
|
| Gains (losses) on disposals of assets |
| (1,379) | * | - |
| - |
| - |
| - |
| (1,379) |
|
| Other items |
| (41) |
| (42) |
| (9) |
| 5 |
| - |
| (87) |
Total |
| | | (1,505) |
| (284) |
| 833 |
| 100 |
| (60) |
| (916) |
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | |
1st half 2020 |
| Inventory valuation effect |
| - |
| - |
| (1,364) |
| (144) |
| - |
| (1,508) |
|
| Effect of changes in fair value |
| - |
| (79) |
| - |
| - |
| - |
| (79) |
|
| Restructuring charges |
| (3) |
| (22) |
| (75) |
| - |
| - |
| (100) |
|
| Asset impairment charges |
| (7,272) |
| (829) |
| - |
| - |
| - |
| (8,101) |
|
| Gains (losses) on disposals of assets |
| - |
| - |
| - |
| - |
| - |
| - |
|
| Other items |
| 51 |
| (256) |
| (36) |
| (71) |
| (142) |
| (454) |
Total |
| | | (7,224) |
| (1,186) |
| (1,475) |
| (215) |
| (142) |
| (10,242) |
40
4) Shareholders’ equity
Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)
| | |
Shares to be allocated as part of performance share grant plans |
| |
including the 2019 Plan |
| 99,750 |
including other Plans |
| 74,675 |
Total Treasury shares |
| 174,425 |
Dividend
The Shareholders’ meeting of May 28, 2021 approved the distribution of a dividend of 2.64 euros per share for the 2020 fiscal year and the payment of a final dividend of 0.66 euro per share given the three interim dividends that had already been paid. The dividend for the fiscal year 2020 was paid according to the following timetable:
| | | | | | | | |
Dividend 2020 |
| First interim |
| Second interim |
| Third interim |
| Final |
Amount | | € 0.66 | | € 0.66 | | € 0.66 | | € 0.66 |
Set date | | May 4, 2020 | | July 29, 2020 | | October 29, 2020 | | May 28, 2021 |
Ex-dividend date | | September 25, 2020 | | January 4, 2021 | | March 25, 2021 | | June 24, 2021 |
Payment date | | October 2, 2020 | | January 11, 2021 | | April 1, 2021 | | July 1, 2021 |
Furthermore, on July 28, 2021 the Board of Directors decided to set the second interim dividend for the fiscal year 2021 at 0.66 euro per share, equal to the first interim dividend. This second interim dividend will be paid in cash on January 13, 2022 (the ex-dividend date will be January 3, 2022).
| | | | |
Dividend 2021 |
| First interim |
| Second interim |
Amount | | € 0.66 | | € 0.66 |
Set date | | April 28, 2021 | | July 28, 2021 |
Ex-dividend date | | September 21, 2021 | | January 3, 2022 |
Payment date | | October 1, 2021 | | January 13, 2022 |
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €0.66 per share for the 2nd quarter 2021 (€1.03 per share for the 1st quarter 2021 and €(2.98) per share for the 2nd quarter 2020). Diluted earnings per share calculated using the same method amounted to €0.66 per share for the 2nd quarter 2021 (€1.02 per share for the 1st quarter 2021 and €(2.98) per share for the 2nd quarter 2020).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
Perpetual subordinated notes
The Company issued perpetual subordinated notes in January 2021:
| - | Perpetual subordinated notes 1.625% callable in January 2028, or in anticipation in October 2027 (EUR 1,500 million); and |
| - | Perpetual subordinated notes 2.125% callable in January 2033, or in anticipation in July 2032 (EUR 1,500 million). |
Following the two tender operations on perpetual subordinated notes 2.250% callable from February 2021 (carried out in April 2019 and September 2020 for EUR 1,500 million and EUR 703 million respectively), TotalEnergies SE fully reimbursed the residual nominal amount of this note at its first call date for an amount of EUR 297 million on February 26, 2021.
41
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
| | | | |
(M$) |
| 1st half 2021 |
| 1st half 2020 |
Actuarial gains and losses |
| 449 |
| (223) |
| | | | |
Change in fair value of investments in equity instruments |
| 68 |
| (74) |
| | | | |
Tax effect |
| (154) |
| 86 |
Currency translation adjustment generated by the parent company |
| (2,934) |
| (196) |
Sub-total items not potentially reclassifiable to profit and loss |
| (2,571) |
| (407) |
| | | | |
Currency translation adjustment |
| 1,777 |
| (940) |
- unrealized gain/(loss) of the period |
| 1,898 |
| (907) |
- less gain/(loss) included in net income |
| 121 |
| 33 |
| | | | |
Cash flow hedge |
| 80 |
| (1,293) |
- unrealized gain/(loss) of the period |
| (56) |
| (1,317) |
- less gain/(loss) included in net income |
| (136) |
| (24) |
| | | | |
Variation of foreign currency basis spread |
| (4) |
| 70 |
- unrealized gain/(loss) of the period |
| (29) |
| 42 |
- less gain/(loss) included in net income |
| (25) |
| (28) |
| | | | |
Share of other comprehensive income of equity affiliates, net amount |
| 451 |
| (927) |
- unrealized gain/(loss) of the period |
| 449 |
| (936) |
- less gain/(loss) included in net income |
| (2) |
| (9) |
| | | | |
Other |
| - |
| 3 |
| | | | |
Tax effect |
| (57) |
| 367 |
Sub-total items potentially reclassifiable to profit and loss |
| 2,247 |
| (2,720) |
Total other comprehensive income, net amount |
| (324) |
| (3,127) |
42
Tax effects relating to each component of other comprehensive income are as follows:
| | | | | | | | | | | | | | |
| | 1st half 2021 | 1st half 2020 | |||||||||||
| | Pre-tax | | | | | | | Pre-tax | | | | |
|
(M$) |
| amount |
| Tax effect |
| Net amount |
|
| amount |
| Tax effect |
| Net amount | |
Actuarial gains and losses | | 449 | | (141) | | 308 | | | (223) | | 56 | | (167) | |
Change in fair value of investments in equity instruments | | 68 | | (13) | | 55 | | | (74) | | 30 | | (44) | |
Currency translation adjustment generated by the parent company | | (2,934) | | - | | (2,934) | | | (196) | | - | | (196) | |
Sub-total items not potentially reclassifiable to profit and loss | | (2,417) | | (154) | | (2,571) | | | (493) | | 86 | | (407) | |
Currency translation adjustment | | 1,777 | | - | | 1,777 | | | (940) | | - | | (940) | |
Cash flow hedge | | 80 | | (55) | | 25 | | | (1,293) | | 389 | | (904) | |
| | | | | | | | | | | | | | |
Variation of foreign currency basis spread | | (4) | | (2) | | (6) | | | 70 | | (22) | | 48 | |
Share of other comprehensive income of equity affiliates, net amount | | 451 | | - | | 451 | | | (927) | | - | | (927) | |
Other | | - | | - | | - | | | 3 | | - | | 3 | |
Sub-total items potentially reclassifiable to profit and loss | | 2,304 | | (57) | | 2,247 | | | (3,087) | | 367 | | (2,720) | |
Total other comprehensive income | | (113) | | (211) | | (324) | | | (3,580) | | 453 | | (3,127) | |
5) Financial debt
The Company has not issued any new senior bond during the first six months of 2021.
The Company reimbursed two senior bonds during the first six months of 2021:
-Bond 4.125% issued in 2011 and maturing in January 2021 (USD 500 million)
-Bond 2.750% issued in 2014 and maturing in June 2021 (USD 1,000 million).
On April 2, 2020, the Company put in place a committed syndicated credit line with banking counterparties for an initial amount of USD 6,350 million and with a 12-month tenor (with the option to extend its maturity twice by a further 6 months at TotalEnergies’ hand).
On April 1, 2021, the Company reimbursed in full the balance of this committed syndicated credit line for an amount of USD 2,646 million.
6) Related parties
The related parties are mainly equity affiliates and non-consolidated investments.
There were no major changes concerning transactions with related parties during the first six months of 2021.
43
7) Other risks and contingent liabilities
TotalEnergies is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the TotalEnergies, other than those mentioned below.
Yemen
In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which TotalEnergies holds a stake of 39.62%, to stop its commercial production and export of LNG and to declare force majeure to its various stakeholders in 2015. The plant has been put in preservation mode.
Mozambique
Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, TotalEnergies has confirmed on April 26, 2021 the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation led TotalEnergies, as operator of Mozambique LNG project, to declare force majeure.
8) Subsequent events
On July 9, 2021, TotalEnergies executed a Share Purchase Agreement with PDVSA for the sale of its 30.323% interest in the share capital of Petrocedeño in Venezuela.
The contractual conditions necessary to close this transaction are the approval of the Venezuelan Ministry of Petroleum (MINPET) and the approval of the Board of Directors of TotalEnergies SE.
The Board of Directors of TotalEnergies SE approved this transaction on July 28, 2021.
44
