Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The terms "TotalEnergies", "TotalEnergies company" and "Company" in this exhibit are used to designate TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE.
The financial information on pages 1-40 of this exhibit concerning TotalEnergies with respect to the second quarter of 2023 and six months ended June 30, 2023 has been derived from TotalEnergies’ unaudited consolidated balance sheets as of June 30, 2023, unaudited statements of income, comprehensive income, cash flow and business segment information for the second quarter of 2023 and six months ended June 30, 2023 and unaudited consolidated statements of changes in shareholders’ equity for the six month ended June 30, 2023 on pages 33 et seq. 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 24, 2023.
A. | KEY FIGURES |
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | In millions of dollars, except effective tax rate, | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q22 |
| earnings per share and number of shares |
| 1H23 |
| 1H22 |
| 1H22 |
56,271 | | 62,603 | | 74,774 | | -25% | | Sales | | 118,874 | | 143,380 | | -17% |
4,088 |
| 5,557 |
| 5,692 |
| -28% | | Net income (TotalEnergies share) |
| 9,645 |
| 10,636 |
| -9% |
267 |
| 960 |
| (1,546) |
| ns | | Net income (loss) from equity affiliates |
| 1,227 |
| (1,503) |
| ns |
11,105 | | 14,167 | | 18,737 | | -41% | | Adjusted EBITDA(1)(2) | | 25,272 | | 36,161 | | -30% |
5,582 |
| 6,993 |
| 10,500 |
| -47% | | Adjusted net operating income(3) from business segments |
| 12,575 |
| 19,958 |
| -37% |
2,349 |
| 2,653 |
| 4,719 |
| -50% | | Exploration & Production |
| 5,002 |
| 9,734 |
| -49% |
1,330 |
| 2,072 |
| 2,215 |
| -40% | | Integrated LNG |
| 3,402 |
| 5,348 |
| -36% |
450 | | 370 | | 340 | | +32% | | Integrated Power | | 820 | | 258 | | x3.2 |
1,004 |
| 1,618 |
| 2,760 |
| -64% | | Refining & Chemicals |
| 2,622 |
| 3,880 |
| -32% |
449 |
| 280 |
| 466 |
| -4% | | Marketing & Services |
| 729 |
| 738 |
| -1% |
1.64 |
| 2.21 |
| 2.16 |
| -24% | | Fully-diluted earnings per share ($) |
| 3.86 |
| 4.02 |
| -4% |
2,448 |
| 2,479 |
| 2,592 |
| -6% | | Fully-diluted weighted-average shares (millions) |
| 2,460 |
| 2,602 |
| -5% |
4,271 |
| 3,433 |
| 2,819 |
| +51% | | Organic investments(4) |
| 7,704 |
| 4,800 |
| +60% |
320 |
| 2,987 |
| 2,076 |
| -85% | | Net acquisitions(5) |
| 3,307 |
| 2,998 |
| +10% |
4,591 |
| 6,420 |
| 4,895 |
| -6% | | Net investments(6) |
| 11,011 |
| 7,798 |
| +41% |
9,900 | | 5,133 | | 16,284 | | -39% | | Cash flow from operating activities(7) | | 15,033 | | 23,901 | | -37% |
| | | | | | | | of which | | | | | | |
2,125 |
| (3,419) |
| 2,498 |
| -15% |
| (increase) decrease in working capital |
| (1,294) |
| (2,425) |
| ns |
(112) | | (153) | | (399) | | ns | | financial charges | | (265) | | (767) | | ns |
(1) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 22. |
(2) | Adjusted EBITDA is a non-GAAP measure. The definition of Adjusted EBITDA is available in the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of net income (TotalEnergies share) to adjusted EBITDA is set forth under “Reconciliation of Net Income (TotalEnergies Share) To Adjusted EBITDA” on page 22 of this exhibit. |
(3) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 22. |
(4) | Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. |
(5) | Net acquisitions = acquisitions - asset sales - other transactions with non-controlling interests (see page 27). |
(6) | Net investments = organic investments + net acquisitions (see “Investments – Divestments’” on page 27). |
(7) | See also “C. TotalEnergies results – Cash Flow”. The reconciliation table for various cash flow figures is set forth under “Cash Flow” on page 27 of this exhibit. |
1
Key figures of environment, greenhouse gas emissions (GHG) and production
Environment* – liquids and gas price realizations, refining margins
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
|
|
| |
| |
| 2H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | | | 1H23 | | 1H22 | | 1H22 |
78.1 |
| 81.2 |
| 113.9 |
| -31% | | Brent ($/b) |
| 79.7 |
| 107.9 |
| -26% |
2.3 |
| 2.8 |
| 7.5 |
| -69% | | Henry Hub ($/Mbtu) |
| 2.5 |
| 6.1 |
| -58% |
10.5 |
| 16.1 |
| 22.2 |
| -53% | | NBP ($/Mbtu)** |
| 13.3 |
| 27.2 |
| -51% |
10.9 |
| 16.5 |
| 27.0 |
| -60% | | JKM ($/Mbtu)*** |
| 13.7 |
| 29.1 |
| -53% |
72.0 |
| 73.4 |
| 102.9 |
| -30% | | Average price of liquids ($/b) |
| 72.7 |
| 96.3 |
| -25% |
5.98 |
| 8.89 |
| 11.01 |
| -46% | | Average price of gas ($/Mbtu) |
| 7.48 |
| 11.65 |
| -36% |
9.84 |
| 13.27 |
| 13.96 |
| -30% | | Average price of LNG ($/Mbtu) |
| 11.59 |
| 13.77 |
| -16% |
42.7 |
| 87.8 |
| 145.7 |
| -71% | | Variable cost margin – Refining Europe, VCM ($/t)**** |
| 65.0 |
| 101.0 |
| -36% |
*The indicators are shown on page 32.
** | 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. |
**** | This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons). |
Greenhouse gas emissions (GHG)(1)
| | | | | | | | | | | | | | |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q23 |
| Scope 1+2 emissions (MtCO2e) |
| 1H23 |
| 1H22 |
| 1H23 |
9.1 |
| 9.1 |
| 9.6 |
| -6% | | Scope 1+2 from operated facilities(2) |
| 18.2 |
| 19.3 |
| -6% |
7.9 |
| 7.6 |
| 8.1 |
| -2% | | of which Oil & Gas |
| 15.5 |
| 16.0 |
| -3% |
1.1 |
| 1.5 |
| 1.5 |
| -27% | | of which CCGT |
| 2.6 |
| 3.3 |
| -21% |
12.5 |
| 12.8 |
| 13.4 |
| -7% | | Scope 1+2 - equity share |
| 25.3 |
| 27.4 |
| -8% |
Estimated 2Q23 and 1Q23 emissions.
Scope 1+2 emissions from operated installations were down 6% year-on-year in the second quarter of 2023, as a result of the decrease in the use of gas-fired power plants in a context of lower demand in Europe and the continuous decline in flaring on Exploration & Production facilities.
| | | | | | | | | | | | | | |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q23 |
| Methane emissions (ktCH4) |
| 1H23 |
| 1H22 |
| 1H23 |
8 |
| 9 |
| 10 |
| -19% | | Methane emissions from operated facilities |
| 18 |
| 20 |
| -13% |
10 |
| 11 |
| 13 |
| -22% |
| Methane emissions - equity share |
| 21 |
| 24 |
| -15% |
Estimated 2Q23 and 1Q23 emissions.
| | | | |
Scope 3 emissions (MtCO2e) |
| 1H23 |
| 2022 |
Scope 3 from Oil, Biofuels and Gas Worldwide(3) |
| est. 180 |
| 389 |
(1) | The 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 the Company’s emissions or are considered as non-material and are therefore not counted. |
(2) | Scope 1+2 GHG emissions of operated 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 the Company’s 2022 annual report on Form 20-F filed on March 24, 2023) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2). |
(3) | TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use by customers of energy products, i.e., combustion of the products to obtain energy. The Company follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil, biofuels and gas value chains, i.e., the higher of the two production volumes or sales to end customers. The highest point for each value chain for 2023 will be evaluated considering realizations over the full year, TotalEnergies gradually providing quarterly estimates. |
2
Production*
| | | | | | | | | | | | | | |
|
| | | | | 2Q23 |
|
|
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Hydrocarbon production | | 1H23 | | 1H22 | | 1H22 |
2,471 |
| 2,524 | | 2,738 | | -10% | | Hydrocarbon production (kboe/d) |
| 2,498 |
| 2,791 |
| -10% |
1,416 |
| 1,398 | | 1,268 | | +12% | | Oil (including bitumen) (kb/d) |
| 1,407 |
| 1,287 |
| +9% |
1,055 | | 1,126 | | 1,470 | | -28% | | Gas (including condensates and associated NGL) (kboe/d) | | 1,091 | | 1,504 | | -27% |
2,471 | | 2,524 | | 2,738 | | -10% | | Hydrocarbon production (kboe/d) | | 2,498 | | 2,791 | | -10% |
1,571 | | 1,562 | | 1,483 | | +6% | | Liquids (kb/d) | | 1,567 | | 1,505 | | +4% |
4,845 | | 5,191 | | 6,835 | | -29% | | Gas (Mcf/d) | | 5,017 | | 6,997 | | -28% |
2,471 | | 2,524 | | 2,412 | | +2% | | Hydrocarbon production excluding Novatek (kboe/d) | | 2,498 | | 2,460 | | +2% |
* Company production = Exploration & Production production + Integrated LNG production.
Hydrocarbon production was 2,471 thousand barrels of oil equivalent per day (kboe/d) in the second quarter of 2023, up 2% year-on-year (excluding Novatek), comprised of:
● | +4% due to start-ups and ramp-ups, including Ikike in Nigeria, Mero 1 in Brazil, Johan Sverdrup Phase 2 in Norway and Block 10 in Oman, |
● | +1% due to the improvement of security conditions in Nigeria and Libya, |
● | +1% price effect, |
● | -1% portfolio effect, notably related to the end of the Bongkot operating licenses in Thailand, the exit from Termokarstovoye in Russia, partially offset by the entry into the producing fields of Sepia and Atapu in Brazil and SARB Umm Lulu in the United Arab Emirates, |
● | -3% due to natural decline of the fields. |
Compared to the first quarter of 2023, production was down 2% mainly due to planned maintenance operations in the North Sea and the end of the Bongkot operating licenses in Thailand, partially offset by the full effect of entry into the producing fields of SARB Umm Lulu in the United Arab Emirates, and the ramp-up of Johan Sverdrup Phase 2 in Norway.
B.ANALYSIS OF BUSINESS SEGMENT RESULTS
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 TotalEnergies, namely the Executive Committee.
Management presents adjusted financial indicators to assist investors in better understanding, in conjunction with the Company’s financial results presented in accordance with IFRS, the economic performance of the Company. Adjustment items are of three types: inventory valuation effect, effect of changes in fair value, and special items.
Inventory valuation effect: 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. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its main competitors. 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 rather than the historical value. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
3
Effect of changes in fair value: 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’ Executive Committee 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, the future effects of which are recorded at fair value in TotalEnergies’ 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.
Special items: due to their unusual nature or particular 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 occur again in following years.
For further information on the adjustments affecting operating income and net 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 46 et seq. of this exhibit.
TotalEnergies measures performance at the segment level on the basis of performance indicators excluding the adjustment items, such as adjusted incomes and ROACE in order to facilitate the analysis of the financial performance and the comparison of income between periods. The definition of these performance indicators is available in the “Glossary” on page 31 et seq. of this exhibit.
The financial information is broken down by business segment prior to the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The profitable growth in the LNG and power integrated value chains are two of the key axes of TotalEnergies’ strategy.
In order to give more visibility to these businesses, the Board of Directors has decided that from the first quarter 2023, integrated LNG and integrated Power results, previously grouped in the integrated Gas, Renewables & Power (iGRP) segment, would be reported separately as two segments.
A new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2023. It is based on the following five business segments:
- | An Exploration-Production segment; |
- | An integrated LNG segment covering LNG production and trading activities as well as biogas, hydrogen and gas trading activities; |
- | An integrated Power segment covering generation, storage, electricity trading and B2B-B2C distribution of gas and electricity; |
- | 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.
This new segment reporting has been prepared in accordance with IFRS 8 and according to the same principles as the internal reporting followed by TotalEnergies' Executive Committee.
4
For the integrated LNG and integrated Power segments, the principles for the preparation of this segment information are as follows:
- | The management of balance sheet positions (including margin calls) related to centralized markets access for LNG, gas and power activities since 2022 has been fully included in the integrated LNG segment. |
- | Effects of changes in the fair value of gas and LNG positions are allocated to the operating income of integrated LNG segment. |
- | Effects of changes in the fair value of power positions are allocated to the operating income of integrated Power segment. |
Due to the change in the Company's internal organizational structure affecting the composition of the business segments, the segment reporting data for the years 2021 and 2022 has been restated.
5
B.1 Exploration & Production
1. Production
| | | | | | | | | | | | | | |
|
| |
| | | 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Hydrocarbon production | | 1H23 | | 1H22 | | 1H22 |
2,033 |
| 2,061 |
| 2,276 | | -11% | | EP (kboe/d) |
| 2,047 |
| 2,314 |
| -12% |
1,512 |
| 1,500 |
| 1,430 | | +6% | | Liquids (kb/d) |
| 1,506 |
| 1,449 |
| +4% |
2,778 |
| 3,012 |
| 4,602 | | -40% | | Gas (Mcf/d) |
| 2,895 |
| 4,706 |
| -38% |
2,033 |
| 2,061 |
| 2,007 | | +1% | | EP excluding Novatek (kboe/d) |
| 2,047 |
| 2,040 |
| – |
2. Results
| | | | | | | | | | | | | | |
|
| |
| | | 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | income and effective tax rate | | 1H23 | | 1H22 | | 1H22 |
1,434 |
| 1,954 |
| 2,521 | | -43% | | External sales |
| 3,388 |
| 4,672 |
| -27% |
4,263 |
| 5,854 |
| 8,454 | | -50% | | Operating income |
| 10,117 |
| 16,054 |
| -37% |
2,359 |
| 2,524 |
| 910 | | x2.6 | | Net operating income |
| 4,883 |
| 4,889 |
| 0% |
(15) |
| 68 |
| (3,668) | | ns | | Net income (loss) from equity affiliates and other items |
| 53 |
| (3,426) |
| ns |
49.7% | | 57.1% | | 47.2% | | – | | Effective tax rate* | | 53.9% | | 47.1% | | – |
(1,889) |
| (3,398) |
| (3,876) | | ns | | Tax on net operating income |
| (5,287) |
| (7,739) |
| ns |
(10) |
| 129 |
| 3,809 | | ns | | Adjustments affecting net operating income |
| 119 |
| 4,845 |
| ns |
2,349 |
| 2,653 |
| 4,719 | | -50% | | Adjusted net operating income** |
| 5,002 |
| 9,734 |
| -49% |
149 |
| 135 |
| 287 | | -48% | | including income from equity affiliates |
| 284 |
| 642 |
| -56% |
2,424 |
| 2,134 |
| 1,873 | | +29% | | Organic investments |
| 4,558 |
| 3,299 |
| +38% |
176 |
| 1,938 |
| 2,225 | | -92% | | Net acquisitions |
| 2,114 |
| 2,541 |
| -17% |
2,600 |
| 4,072 |
| 4,098 | | -37% | | Net investments |
| 6,672 |
| 5,840 |
| +14% |
* | 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 46 of this exhibit. |
Exploration & Production Net operating income was:
● | $2,359 million in the second quarter of 2023, down 7% quarter-on-quarter, |
● | $4,883 million in the first half 2023, in line with the first half 2022. |
Exploration & Production adjusted net operating income was:
● | $2,349 million in the second quarter of 2023, down 11% quarter-on-quarter, mainly due to lower oil and gas prices, |
● | $5,002 million in the first half 2023, down 49% compared to the first half 2022. |
Adjusted net operating income for the Exploration & Production segment excludes special items. In the second quarter of 2023, the exclusion of special items had a negative impact of $10 million on the segment’s adjusted net operating income, compared to a positive impact of $3,809 million in the second quarter of 2022.
The segment's cash flow from operating activities was:
● | $4,047 million in the second quarter of 2023, down 11% quarter-on-quarter, |
● | $8,583 million in the first half 2023, down 41% compared to the first half 2022. |
The segment’s operating cash flow before working capital changes without financial charges except those related to leases (DACF)1 was:
● | $4,364 million in the second quarter of 2023, down 11% quarter-on-quarter, mainly due to lower gas and oil prices, |
● | $9,271 million in the first half 2023, down 37% compared to the first half 2022. |
1 The definition of Operating cash flow before working capital changes and Debt adjusted cash flow (DACF) are available on the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow by Segment” on page 28 et seq. of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
6
B.2 Integrated LNG
1.Production
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q22 |
| Hydrocarbon production for LNG |
| 1H23 |
| 1H22 |
| 1H22 |
438 |
| 463 |
| 462 |
| -5% | | Integrated LNG (kboe/d) |
| 451 |
| 477 |
| -6% |
59 | | 62 | | 53 | | +11% | | Liquids (kb/d) | | 61 | | 56 | | +7% |
2,067 |
| 2,179 |
| 2,233 |
| -7% | | Gas (Mcf/d) |
| 2,122 |
| 2,291 |
| -7% |
438 |
| 463 |
| 405 |
| +8% | | Integrated LNG excluding Novatek (kboe/d) |
| 451 |
| 419 |
| +8% |
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Liquefied Natural Gas in Mt | | 1H23 | | 1H22 | | 1H22 |
11.0 |
| 11.0 |
| 11.7 |
| -6% | | Overall LNG sales |
| 22.0 |
| 24.9 |
| -12% |
3.6 |
| 4.0 |
| 4.1 |
| -12% | | Incl. Sales from equity production* |
| 7.6 |
| 8.6 |
| -12% |
10.0 |
| 9.9 |
| 10.2 |
| -2% | | Incl. Sales by TotalEnergies from equity production and third party purchases |
| 19.9 |
| 22.2 |
| -10% |
* | The Company’s equity production may be sold by TotalEnergies or by the joint ventures. |
Hydrocarbon production for LNG was up 8% year-on-year in the second quarter of 2023 and first half 2023, due to the increased supply of NLNG following improved security conditions in Nigeria and the restart of Snøhvit in Norway during the second quarter of 2022.
LNG sales decreased year-on-year due to lower demand in Europe and are stable quarter-on-quarter, benefitting from the restart of Freeport LNG.
2. Results
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | income | | 1H23 | | 1H22 | | 1H22 |
2,020 |
| 4,872 |
| 3,901 | | -48% | | External sales |
| 6,892 |
| 9,408 |
| -27% |
724 |
| 1,138 |
| 1,421 | | -49% | | Operating income |
| 1,862 |
| 3,262 |
| -43% |
1,059 |
| 1,737 |
| 1,755 | | -40% | | Net operating income |
| 2,796 |
| 840 |
| x3.3 |
472 |
| 804 |
| 626 | | -25% | | Net income (loss) from equity affiliates and other items |
| 1,276 |
| (1,869) |
| ns |
(137) |
| (205) |
| (292) | | ns | | Tax on net operating income |
| (342) |
| (553) |
| ns |
271 |
| 335 |
| 460 | | -41% | | Adjustments affecting net operating income |
| 606 |
| 4,508 |
| -87% |
1,330 |
| 2,072 |
| 2,215 | | -40% | | Adjusted net operating income* |
| 3,402 |
| 5,348 |
| -36% |
432 |
| 786 |
| 1,192 | | -64% | | including income from equity affiliates |
| 1,218 | �� | 2,596 |
| -53% |
382 |
| 396 |
| 171 | | x2.2 | | Organic investments |
| 779 |
| 110 |
| x7.1 |
205 |
| 759 |
| (36) | | ns | | Net acquisitions |
| 964 |
| (56) |
| ns |
587 |
| 1,155 |
| 135 | | x4.3 | | Net investments |
| 1,743 |
| 54 |
| x32.3 |
* | Detail of adjustment items shown in the business segment information starting on page 46 of this exhibit. |
7
Integrated LNG Net operating income was:
● | $1,059 million in the second quarter of 2023, down 39% quarter-on-quarter, |
● | $2,796 million in the first half 2023, 3.3 times higher compared to the first half 2022. |
Integrated LNG adjusted net operating income was:
● | $1,330 million in the second quarter of 2023, down 28% year-on-year (excluding Novatek) and 36% quarter-on-quarter, mainly due to lower spot and forward LNG prices, |
● | $3,402 million in the first half 2023, down 26% year-on-year (excluding Novatek), due to lower prices and LNG sales, as well as exceptional trading results in the first quarter 2022. |
Adjusted net operating income for the iLNG segment excludes special items and the impact of changes in fair value. In the second quarter of 2023, the exclusion of special items had a positive impact of $271 million on the segment’s adjusted net operating income, compared to a positive impact of $460 million in the second quarter of 2022.
The segment’s cash flow from operating activities was:
● | $1,332 million in the second quarter of 2023 down 62% quarter-to-quarter, |
● | $4,868 million in the first half 2023, down 19% compared to the first half 2022. |
The segment’s operating cash flow before working capital changes without financial charges except those related to leases (DACF)2 was:
● | $1,801 million in the second quarter of 2023, down 15% year-on-year (excluding Novatek), and 13% quarter-on-quarter due to lower LNG prices, partially offset by higher margins secured in 2022 on LNG cargoes to be delivered in 2023, |
● | $3,882 million in the first half 2023, down 16% year-on-year (excluding Novatek), for the same reasons. |
2 The definition of Operating cash flow before working capital changes and Debt adjusted cash flow (DACF) are available on the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow by Segment” on page 28 et seq. of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
8
B.3 Integrated Power
1. Capacities, productions, clients and sales
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q22 |
| Integrated Power |
| 1H23 |
| 1H22 |
| 1H22 |
74.7 |
| 70.4 |
| 50.7 |
| +47% | | Portfolio of renewable power generation gross capacity (GW) (1),(2) |
| 74.7 |
| 50.7 |
| +47% |
19.0 |
| 17.9 |
| 11.6 |
| +63% | | o/w installed capacity |
| 19.0 |
| 11.6 |
| +63% |
5.7 |
| 6.2 |
| 5.2 |
| +11% | | o/w capacity in construction |
| 5.7 |
| 5.2 |
| +11% |
50.0 |
| 46.3 |
| 33.9 |
| +47% | | o/w capacity in development |
| 50.0 |
| 33.9 |
| +47% |
46.9 |
| 44.4 |
| 38.4 |
| +22% | | Portfolio of renewable power generation net capacity (GW) (2) |
| 46.9 |
| 38.4 |
| +22% |
8.9 |
| 8.4 |
| 5.8 |
| +53% | | o/w installed capacity |
| 8.9 |
| 5.8 |
| +53% |
3.9 |
| 4.0 |
| 3.7 |
| +7% | | o/w capacity in construction |
| 3.9 |
| 3.7 |
| +7% |
34.1 |
| 32.0 |
| 28.9 |
| +18% | | o/w capacity in development |
| 34.1 |
| 28.9 |
| +18% |
5.8 |
| 5.8 |
| 5.8 |
| – | | Gas-fired power generation gross installed capacity (GW) (2) |
| 5.8 |
| 5.8 |
| – |
4.3 |
| 4.3 |
| 4.3 |
| – | | Gas-fired power generation net installed capacity (GW) (2) |
| 4.3 |
| 4.3 |
| – |
8.2 |
| 8.4 |
| 7.7 |
| +8% | | Net power production (TWh) (3) |
| 16.6 |
| 15.2 |
| +9% |
4.2 |
| 3.8 |
| 2.5 |
| +69% | | Incl. power production from renewables |
| 8.1 |
| 4.7 |
| +70% |
6.0 |
| 6.0 |
| 6.2 |
| -3% | | Clients power – BtB and BtC (Million) (2) |
| 6.0 |
| 6.2 |
| -3% |
2.8 |
| 2.8 |
| 2.7 |
| +1% | | Clients gas – BtB and BtC (Million) (2) |
| 2.8 |
| 2.7 |
| +1% |
11.5 |
| 15.5 |
| 12.3 |
| -7% | | Sales power – BtB and BtC (TWh) |
| 27.0 |
| 28.6 |
| -6% |
19.2 |
| 37.3 |
| 19.1 |
| – | | Sales gas – BtB and BtC (TWh) |
| 56.4 |
| 54.1 |
| +4% |
(1) | Includes 20% of Adani Green Energy Ltd’s gross capacity effective first quarter 2021, 50% of Clearway Energy Group’s gross capacity effective third quarter 2022 and 49% of Casa dos Ventos’ gross capacity effective first quarter 2023. |
(2) | End of period data. |
(3) | Solar, wind, hydroelectric and combined-cycle gas turbine (CCGT) plants. |
Net power production was:
● | 8.2 TWh in the second quarter of 2023, up 8% year-on-year, as growing electricity generation from renewables was partially offset by lower generation from flexible capacity in a context of lower demand, |
● | 16.6 TWh in the first half 2023, up 9% year-on-year, for the same reasons. |
Gross installed renewable power generation capacity was 19 GW at the end of the second quarter of 2023, up by more than 1 GW quarter-on-quarter, including 0.5 GW installed in the USA and the connection of 0.3 GW from the Seagreen offshore wind project in the UK.
2. Results
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q22 |
| income |
| 1H23 |
| 1H22 |
| 1H22 |
6,249 |
| 8,555 |
| 6,380 |
| -2% | | External sales |
| 14,804 |
| 13,167 |
| 12% |
534 |
| 362 |
| (575) |
| ns | | Operating income |
| 896 |
| (604) |
| ns |
243 |
| 181 |
| (346) |
| ns | | Net operating income |
| 424 |
| (413) |
| ns |
(250) |
| (70) |
| 197 |
| ns | | Net income (loss) from equity affiliates and other items |
| (320) |
| 192 |
| ns |
(41) |
| (111) |
| 32 |
| ns | | Tax on net operating income |
| (152) |
| (1) |
| ns |
207 |
| 189 |
| 686 |
| -70% | | Adjustments affecting net operating income |
| 396 |
| 671 |
| -41% |
450 |
| 370 |
| 340 |
| +32% | | Adjusted net operating income* |
| 820 |
| 258 |
| x3.2 |
23 |
| 56 |
| 27 |
| -15% | | including income from equity affiliates |
| 79 |
| 53 |
| +49% |
753 |
| 577 |
| 170 |
| x4.4 | | Organic investments |
| 1,330 |
| 489 |
| x2.7 |
(42) |
| 519 |
| (22) |
| ns |
| Net acquisitions |
| 477 |
| 639 |
| -25% |
711 |
| 1,096 |
| 148 |
| x4.8 | | Net investments |
| 1,807 |
| 1,128 |
| +60% |
* | Detail of adjustment items shown in the business segment information starting on page 46 of this exhibit. |
9
Integrated Power Net operating income was:
● | $243 million in the second quarter of 2023, up 34% quarter-on-quarter, |
● | $424 million in the first half 2023, compared to $(413) million in the first half 2022. |
Integrated Power adjusted net operating income was $450 million, up 22% quarter-on-quarter, due to the performance of its integrated electricity portfolio.
Adjusted net operating income for the Integrated Power segment excludes special items and the impact of changes in fair value. In the second quarter of 2023, the exclusion of special items had a positive impact of $207 million on the segment’s adjusted net operating income, compared to a positive impact of $686 million in the second quarter of 2022.
The segment’s cash flow from operating activities excluding margin calls, reported in the Integrated LNG segment since the implementation in 2022 of its centralized management was:
● | $2,284 million in the second quarter of 2023, compared to $(1,285) million in the first quarter 2023, |
● | $999 million in the first half 2023, compared to $(1,736) million in the first half 2022. |
The segment’s operating cash flow before working capital changes without financial charges except those related to leases (DACF)3 was:
● | $491 million in the second quarter of 2023, up 12% quarter-on-quarter, |
● | $931 million in the first half 2023, 2.7 times higher than the first half 2022. |
3 The definition of Operating cash flow before working capital changes and Debt adjusted cash flow (DACF) are available on the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow by Segment” on page 28 et seq. of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
10
B.4 Downstream (Refining & Chemicals and Marketing & Services)
1. Results
| | | | | | | | | | | | | | |
|
| |
| | | 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | income | | 1H23 | | 1H22 | | 1H22 |
46,561 |
| 47,214 |
| 61,968 | | -25% | | External sales |
| 93,775 |
| 116,125 |
| -19% |
1,306 |
| 1,708 |
| 4,958 | | -74% | | Operating income |
| 3,014 |
| 7,955 |
| -62% |
1,024 |
| 1,559 |
| 4,243 | | -76% | | Net operating income |
| 2,583 |
| 6,604 |
| -61% |
67 |
| 295 |
| 447 | | -85% | | Net income (loss) from equity affiliates and other items |
| 362 |
| 561 |
| -35% |
(349) |
| (444) |
| (1,162) | | ns | | Tax on net operating income |
| (793) |
| (1,912) |
| ns |
429 |
| 339 |
| (1,017) | | ns | | Adjustments affecting net operating income |
| 768 |
| (1,986) |
| ns |
1,453 |
| 1,898 |
| 3,226 | | -55% | | Adjusted net operating income* |
| 3,351 |
| 4,618 |
| -27% |
686 |
| 290 |
| 586 | | +17% | | Organic investments |
| 976 |
| 878 |
| +11% |
(19) |
| (229) |
| (91) | | ns | | Net acquisitions |
| (248) |
| (125) |
| ns |
667 |
| 61 |
| 495 | | +35% | | Net investments |
| 728 |
| 753 |
| -3% |
* | Detail of adjustment items shown in the business segment information starting on page 46 of this exhibit. |
B.5 Refining & Chemicals
1. Refinery and petrochemicals throughput and utilization rates
| | | | | | | | | | | | | | |
|
| |
| | | 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Refinery throughput and utilization rate* | | 1H23 | | 1H22 | | 1H22 |
1,472 |
| 1,403 |
| 1,575 | | -7% | | Total refinery throughput (kb/d) |
| 1,437 |
| 1,448 |
| -1% |
364 |
| 357 |
| 395 | | -8% | | France |
| 360 |
| 324 |
| +11% |
601 |
| 596 |
| 648 | | -7% | | Rest of Europe |
| 598 |
| 627 |
| -5% |
507 |
| 450 |
| 532 | | -5% | | Rest of world |
| 479 |
| 497 |
| -4% |
82% | | 78% | | 88% | | |
| Utilization rate based on crude only** |
| 80% | | 81% | |
|
* | Includes refineries in Africa reported in the Marketing & Services segment. |
** | Based on distillation capacity at the beginning of the year. |
| | | | | | | | | | | | | | |
|
| |
| | | 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Petrochemicals production and utilization rate | | 1H23 | | 1H22 | | 1H22 |
1,157 |
| 1,295 |
| 1,206 | | -4% | | Monomers* (kt) |
| 2,452 |
| 2,611 |
| -6% |
963 |
| 1,111 |
| 1,187 | | -19% | | Polymers (kt) |
| 2,074 |
| 2,461 |
| -16% |
67% | | 75% | | 71% | | – |
| Steamcracker utilization rate** | | 71% | | 78% | | – |
* | Olefins. |
** | Based on olefins production from steam crackers and their treatment capacity at the start of the year. |
Refining throughput was:
● | down 7% year-on-year in the second quarter of 2023, notably due to planned maintenance and unplanned shutdowns at the Antwerp refinery in Belgium, and logistical limitations linked to high inventory levels at the Normandy refinery in France, |
● | down 1% year-on-year in the first half 2023, reflecting the restart of the Donges refinery in France in the second quarter of 2022. |
The utilization rate on processed crude rose over the quarter to 82% given the end of strikes in France.
Polymer production was down year-on-year by 19% in the second quarter of 2023 and 16% in the first half 2023, due to the slowdown in global demand.
11
2. Results
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | income | | 1H23 | | 1H22 | | 1H22 |
24,849 |
| 24,855 |
| 35,061 |
| -29% | | External sales |
| 49,704 |
| 66,069 |
| -25% |
812 |
| 1,426 |
| 4,029 |
| -80% | | Operating income |
| 2,238 |
| 6,331 |
| -65% |
628 |
| 1,153 |
| 3,512 |
| -82% | | Net operating income |
| 1,781 |
| 5,445 |
| -67% |
3 |
| 52 |
| 349 |
| -99% | | Net income (loss) from equity affiliates and other items |
| 55 |
| 505 |
| -89% |
(187) |
| (325) |
| (866) |
| ns | | Tax on net operating income |
| (512) |
| (1,391) |
| ns |
376 |
| 465 |
| (752) |
| ns | | Adjustments affecting net operating income |
| 841 |
| (1,565) |
| ns |
1,004 |
| 1,618 |
| 2,760 |
| -64% | | Adjusted net operating income* |
| 2,622 |
| 3,880 |
| -32% |
454 |
| 198 |
| 313 |
| +45% | | Organic investments |
| 652 |
| 510 |
| +28% |
(15) |
| 5 |
| (34) |
| ns | | Net acquisitions |
| (10) |
| (34) |
| ns |
439 |
| 203 |
| 279 |
| +57% | | Net investments |
| 642 |
| 476 |
| +35% |
* | Detail of adjustment items shown in the business segment information starting on page 46 of this exhibit. |
Refining & Chemicals Net operating income was:
● | $628 million in the second quarter of 2023, down 46% quarter-on-quarter, |
● | $1,781 million in the first half 2023, down 67% compared to the first half 2022. |
Refining & Chemicals adjusted net operating income was:
● | $1,004 million in the second quarter of 2023, down 38% quarter-on-quarter, reflecting lower refining margins in Europe impacted at the start of the period by Chinese exports and the quicker than anticipated reorganization of Russian flows following the European embargo, although supported at the end of the quarter by higher gasoline exports to the US and lower diesel imports in Europe from China, |
● | $2,622 million in the first half 2023, down 32% year-on-year, 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 of 2023, the exclusion of the inventory valuation effect had a positive impact of $332 million on the segment’s adjusted net operating income, compared to a negative impact of $752 million in the second quarter of 2022. In the second quarter of 2023, the exclusion of special items had a positive impact of $44 million on the segment’s adjusted net operating income, compared to no impact in the second quarter of 2022.
The segment’s cash flow from operating activities was:
● | $1,923 million in the second quarter of 2023, compared to $(851) millions in the first quarter 2023, |
● | $1,072 million in the first half 2023, down 77% compared to the first half 2022. |
The segment’s operating cash flow before working capital changes without financial charges except those related to leases (DACF)4 was:
● | $1,329 million in the second quarter of 2023, down 55% year-on-year, |
● | $3,062 million in the first half 2023, down 30% compared to the first half 2022 as the second quarter of 2022 benefited from exceptional conditions. |
4 The definition of Operating cash flow before working capital changes and Debt adjusted cash flow (DACF) are available on the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow by Segment” on page 28 et seq. of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
12
B.6 Marketing & Services
1. Petroleum product sales
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | Sales in kb/d* | | 1H23 | | 1H22 | | 1H22 |
1,397 |
| 1,360 |
| 1,477 |
| -5% | | Total Marketing & Services sales |
| 1,379 |
| 1,464 |
| -6% |
799 |
| 757 |
| 817 |
| -2% | | Europe |
| 778 |
| 804 |
| -3% |
598 |
| 602 |
| 660 |
| -9% | | Rest of world |
| 600 |
| 661 |
| -9% |
* | Excludes trading and bulk refining sales. |
Sales of petroleum products were down year-on-year by 5% in the second quarter of 2023 and 6% in the first half 2023, as lower demand from commercial and industrial customers in Europe and the portfolio effect linked to the disposal of 50% of the fuel distribution business in Egypt were partially offset by the recovery in the aviation business.
2. Results
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | In millions of dollars, except tax on net operating | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | income | | 1H23 | | 1H22 | | 1H22 |
27,712 |
| 22,359 |
| 26,907 |
| -3% | | External sales |
| 44,071 |
| 50,056 |
| -12% |
494 |
| 282 |
| 929 |
| -47% | | Operating income |
| 776 |
| 1,624 |
| -52% |
396 |
| 406 |
| 731 |
| -46% | | Net operating income |
| 802 |
| 1,159 |
| -31% |
64 |
| 243 |
| 98 |
| -35% | | Net income (loss) from equity affiliates and other items |
| 307 |
| 56 |
| x5.4 |
(162) |
| (119) |
| (296) |
| ns | | Tax on net operating income |
| (281) |
| (521) |
| ns |
53 |
| (126) |
| (265) |
| ns | | Adjustments affecting net operating income |
| (73) |
| (421) |
| ns |
449 |
| 280 |
| 466 |
| -4% | | Adjusted net operating income* |
| 729 |
| 738 |
| -1% |
232 |
| 92 |
| 273 |
| -15% | | Organic investments |
| 324 |
| 368 |
| -12% |
(4) |
| (234) |
| (57) |
| ns | | Net acquisitions |
| (238) |
| (91) |
| ns |
228 |
| (142) |
| 216 |
| +6% | | Net investments |
| 86 |
| 277 |
| -69% |
* | Detail of adjustment items shown in the business segment information starting on page 46 of this exhibit. |
Marketing & Services Net operating income was:
● | $396 million in the second quarter of 2023, down 2% quarter-on-quarter, |
● | $802 million in the first half 2023, down 31% compared to the first half 2022. |
13
Marketing & Services adjusted net operating income was:
● | $449 million in the second quarter of 2023, down 4% year-on-year, |
● | $729 million in the first half 2023, slightly down year-on-year, in line with lower sales. |
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the second quarter of 2023, the exclusion of the inventory valuation effect had a positive impact of $45 million on the segment’s adjusted net operating income, compared to a negative impact of $275 million in the second quarter of 2022. In the second quarter of 2023, the exclusion of special items had a positive impact of $8 million on the segment’s adjusted net operating income, compared to a positive impact of $10 million in the second quarter of 2022.
The segment’s cash flow from operating activities was:
● | $665 million in the second quarter of 2023, up 15% quarter-on-quarter, |
● | $(8) million in the first half 2023, compared to $1,478 million in the first half 2022. |
The segment’s operating cash flow before working capital changes without financial charges except those related to leases (DACF)5 was:
● | $756 million in the second quarter of 2023, up 29% year-on-year, |
● | $1,212 million in the first half 2023, up 16% compared to the first half 2022, as 2022 was negatively impacted by the tax effect of higher prices on the valuation of petroleum product inventories. |
5 The definition of Operating cash flow before working capital changes and Debt adjusted cash flow (DACF) are available on the “Glossary” on page 31 et seq. of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow by Segment” on page 28 et seq. of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
14
C.TOTALENERGIES RESULTS
1. Net income (TotalEnergies share)
Net income (TotalEnergies share) was $4,088 million in the second quarter of 2023, 28% lower than $5,692 million in second quarter of 2022. Adjusted net income6 (TotalEnergies share) was $4,956 million in the second quarter of 2023 versus $9,796 million in the second quarter of 2022, due to lower gas prices and refining margins.
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value7. Adjustments to net income8 were $(868) million in the second quarter of 2023, consisting mainly of:
● | $(0.5) billion related to impairments, notably on upstream assets in Kenya and the Yunlin offshore wind project in Taiwan, |
● | $(0.4) billion of inventory effect. |
2. Fully-diluted shares and share buybacks
As of June 30, 2023, the number of diluted shares was 2,443 million.
As part of its shareholder return policy, TotalEnergies repurchased:
● | 32.8 million shares for cancellation in the second quarter of 2023 for $2 billion, |
● | 65.0 million shares for cancellation in the first half 2023 for $4 billion. |
3. Acquisitions - asset sales
Acquisitions were:
● | $482 million in the second quarter of 2023, mainly related to the acquisition of a 9.375% stake in the NFS LNG project in Qatar, the renewal of the license OML 130 in Nigeria, and the acquisition of a 5.06% stake in NextDecade in line with the launch of RGLNG project in the US, |
● | $3,738 million in the first half 2023, mainly related to the above items, as well as the acquisition of a 20% interest in the SARB and Umm Lulu concession in the United Arab Emirates, the acquisition of a 6.25% stake in the NFE LNG project in Qatar, and a 34% stake in a joint venture with Casa dos Ventos in Brazil. |
Divestments were:
● | $162 million in the second quarter of 2023, notably for the sale of shares in Maxeon, |
● | $431 million in the first half 2023, notably for the above item as well as the sale of 50% of the Marketing & Services subsidiary in Egypt. |
4. Cash flow
In the second quarter of 2023, cash flow from operating activities was $9,900 million compared to $8,485 million of operating cash flow before working capital changes9 in the second quarter of 2023, reflecting a $1.5 billion decrease in working capital requirements, mainly due to the effects of lower inventories, seasonality of payment of the gas and power marketing business, and despite a decrease in tax payables and the tax payment schedule notably in the Exploration & Production segment.
TotalEnergies’ cash flow from operating activities was $9,900 million in the second quarter of 2023, a decrease of 39% compared to $16,284 million in the second quarter of 2022.
6 Adjusted net income is a non-GAAP measure that the Company presents in order to evaluate the Company’s operating results and understanding its operating trends. The definition of Adjusted net operating income is available in the “Glossary” on page 31 of this exhibit.
7 Details shown on page 22 of this exhibit.
8 Details shown on pages 22 and 38 et seq. of this exhibit.
9 Operating cash flow before working capital changes is a non-GAAP measure. The definition of Operating cash flow before working capital changes is available in the “Glossary” on page 31 of this exhibit. The reconciliation of Cash flow from operating activities to Operating cash flow before working capital changes is set forth under “Cash flow” on page 27 of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”.
15
The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of Integrated LNG and Integrated Power’s contracts, including capital gain from renewable project sales and including organic loan repayment from equity affiliates was a decrease of $1,415 million in the second quarter of 2023, compared to a decrease of $3,051 million in the second quarter of 2022.
In the second quarter of 2023, the change in working capital was a decrease of $2,125 million in accordance with IFRS. The difference of $710 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $252 million, (ii) plus the mark-to-market effect of Integrated LNG and Integrated Power’s contracts of $405 million, (iii) plus the capital gains from renewables project sale of $35 million and (iv) plus the organic loan repayments from equity affiliates of $18 million.
Operating cash flow before working capital changes10 was $8,485 million in the second quarter of 2023, down 36% compared to $13,233 million in the second quarter of 2022.
Operating cash flow before working capital changes without financial charges except those related to leases (DACF)11 was $8,596 million in the second quarter of 2023, down 37% compared to $13,631 million in the second quarter of 2022.
TotalEnergies’ net cash flow12 was:
● | $3,894 million in the second quarter of 2023 compared to $3,201 million in the first quarter 2023, reflecting the $1,136 million decrease in cash flow offset by the $1,829 million decrease in net investments to $4,591 million in the second quarter of 2023, |
● | $7,095 million in the first half 2023 compared to $17,061 million a year earlier, reflecting the $6,753 million decrease in cash flow and the $3,213 million increase in net investments to $11,011 million in the first half 2023. |
D.PROFITABILITY
Return on equity was 25.2% for the twelve months ended June 30, 2023.
| | | | | | |
|
| July 1, 2022 |
| April 1, 2022 |
| July 1, 2021 |
In millions of dollars | | June 30, 2023 | | March 31, 2023 | | June 30, 2022 |
Adjusted net income |
| 29,351 |
| 34,219 |
| 30,716 |
Average adjusted shareholders’ equity |
| 116,329 |
| 115,233 |
| 113,333 |
Return on equity (ROE) |
| 25.2% | | 29.7% | | 27.1% |
Return on average capital employed (ROACE)13 was 22.4% for the twelve months ended June 30, 2023.
| | | | | | |
|
| July 1, 2022 |
| April 1, 2022 |
| July 1, 2021 |
In millions of dollars | | June 30, 2023 | | March 31, 2023 | | June 30, 2022 |
Adjusted net operating income |
| 30,776 |
| 35,712 |
| 32,177 |
Average capital employed |
| 137,204 |
| 140,842 |
| 139,377 |
ROACE |
| 22.4% | | 25.4% | | 23.1% |
10 Operating cash flow before working capital changes is a non-GAAP measure. The definition of Operating cash flow before working capital changes is available in the “Glossary” on page 31 of this exhibit. The reconciliation of Cash flow from operating activities to Operating cash flow before working capital changes is set forth under “Cash flow” on page 27 of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”.
11 Debt adjusted cash flow (DACF) is a non-GAAP measure. The definition of Debt adjusted cash flow (DACF) is available in the “Glossary” on page 31 of this exhibit. The reconciliation of Cash flow from operating activities to Debt adjusted cash flow (DACF) is set forth under “Cash flow” on page 27 of this exhibit. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”.
12 Net cash flow is a non-GAAP measure. The definition of Net cash flow is available in the “Glossary” on page 31 of this exhibit. The reconciliation of Cash flow from operating activities to Net cash flow is set forth under “Cash flow” on page 27 of this exhibit.
13 Return on Average Capital Employed (ROACE) is a non-GAAP measure. The definition of Return on Average Capital Employed (ROACE) is available in the “Glossary” on page 31 of this exhibit.
16
E.Annual 2023 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$/b |
| +/- 2.5 B$ |
| +/- 3.0 B$ |
European gas price – NBP / TTF |
| +/- 2 $/Mbtu |
| +/- 0.4 B$ |
| +/- 0.4 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 2023. 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. |
** | In a 80 $/b Brent environment. |
F.SUMMARY AND OUTLOOK
Oil prices have remained buoyant at around $75/b for several months now, supported by OPEC+ actions. Demand for petroleum products should be supported as the summer driving season is ongoing and the global recovery for air travel continues.
European natural gas prices are currently around $10/Mbtu due to high inventories in Europe. Demand recovery in Asia and tension on supply capacities in Europe support forward prices above $15/Mbtu for the winter of 2023/2024.
Given the evolution of oil and gas prices in recent months and the lag effect on price formulas, TotalEnergies anticipates that its average LNG selling price should be between $9 and $10/Mbtu in the third quarter 2023.
For the third quarter 2023, TotalEnergies anticipates hydrocarbon production of around 2.5 Mboe/d, notably supported by the start-up of Absheron field in Azerbaijan. The utilization rate in refineries should remain above 80%.
The Company confirms 2023 guidance of net investments between $16 and $18 billion, including $5 billion in low-carbon energies.
17
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. -3.1 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, 2022.
18
OPERATING INFORMATION BY SEGMENT
Company’s production (Exploration & Production + Integrated LNG)
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | Combined liquids and gas | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| production by region (kboe/d) |
| 1H23 |
| 1H22 |
| 1H22 |
537 |
| 583 |
| 907 | | -41% | | Europe |
| 559 |
| 933 |
| -40% |
481 |
| 494 |
| 460 | | +5% | | Africa |
| 488 |
| 479 |
| +2% |
767 |
| 718 |
| 680 | | +13% | | Middle East and North Africa |
| 743 |
| 675 |
| +10% |
443 |
| 441 |
| 420 | | +5% | | Americas |
| 442 |
| 403 |
| +10% |
243 |
| 288 |
| 271 | | -10% | | Asia-Pacific |
| 266 |
| 301 |
| -12% |
2,471 |
| 2,524 |
| 2,738 | | -10% | | Total production |
| 2,498 |
| 2,791 |
| -10% |
338 |
| 344 |
| 690 | | -51% | | includes equity affiliates |
| 341 |
| 702 |
| -51% |
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| Liquids production by region (kb/d) |
| 1H23 |
| 1H22 |
| 1H22 |
227 |
| 235 |
| 267 | | -15% | | Europe |
| 231 |
| 283 |
| -18% |
359 |
| 371 |
| 351 | | +2% | | Africa |
| 365 |
| 362 |
| +1% |
615 |
| 578 |
| 546 | | +13% | | Middle East and North Africa |
| 596 |
| 542 |
| +10% |
268 |
| 263 |
| 231 | | +16% | | Americas |
| 266 |
| 216 |
| +23% |
102 |
| 116 |
| 88 | | +16% | | Asia-Pacific |
| 109 |
| 102 |
| +6% |
1,571 |
| 1,562 |
| 1,483 | | +6% | | Total production |
| 1,567 |
| 1,505 |
| +4% |
153 |
| 150 |
| 201 | | -24% | | includes equity affiliates |
| 152 |
| 206 |
| -26% |
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| Gas production by region (Mcf/d) |
| 1H23 |
| 1H22 |
| 1H22 |
1,671 |
| 1,879 |
| 3,440 | | -51% | | Europe |
| 1,774 |
| 3,498 |
| -49% |
610 |
| 615 |
| 545 | | +12% | | Africa |
| 612 |
| 594 |
| +3% |
834 |
| 772 |
| 742 | | +12% | | Middle East and North Africa |
| 803 |
| 734 |
| +9% |
976 |
| 994 |
| 1,063 | | -8% | | Americas |
| 985 |
| 1,052 |
| -6% |
754 |
| 931 |
| 1,045 | | -28% | | Asia-Pacific |
| 843 |
| 1,119 |
| -25% |
4,845 |
| 5,191 |
| 6,835 | | -29% | | Total production |
| 5,017 |
| 6,997 |
| -28% |
1,004 |
| 1,054 |
| 2,633 | | -62% | | includes equity affiliates |
| 1,029 |
| 2,673 |
| -62% |
19
Downstream (Refining & Chemicals and Marketing & Services)
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| Petroleum product sales by region (kb/d) |
| 1H23 |
| 1H22 |
| 1H22 |
1,709 |
| 1,600 |
| 1,814 | | -6% | | Europe* |
| 1,655 |
| 1,724 |
| -4% |
599 |
| 667 |
| 734 | | -18% | | Africa |
| 633 |
| 747 |
| -15% |
918 |
| 849 |
| 922 | | – | | Americas |
| 883 |
| 849 |
| +4% |
665 |
| 623 |
| 705 | | -6% | | Rest of world |
| 644 |
| 618 |
| +4% |
3,892 |
| 3,739 |
| 4,176 | | -7% | | Total consolidated sales* |
| 3,815 |
| 3,939 |
| -3% |
424 |
| 387 |
| 409 | | +4% | | Includes bulk sales |
| 405 |
| 409 |
| -1% |
2,070 |
| 1,992 |
| 2,290 | | -10% | | Includes trading* |
| 2,031 |
| 2,065 |
| -2% |
* | 1Q23 data restated |
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| Petrochemicals production* (kt) |
| 1H23 |
| 1H22 |
| 1H22 |
1,026 |
| 1,047 |
| 1,023 | | – | | Europe |
| 2,073 |
| 2,282 |
| -9% |
619 |
| 607 |
| 603 | | +3% | | Americas |
| 1,226 |
| 1,240 |
| -1% |
475 |
| 753 |
| 768 | | -38% |
| Middle East and Asia |
| 1,228 |
| 1,549 |
| -21% |
* | Olefins, polymers. |
20
INTEGRATED POWER
| | | | | | | | | | | | | | | | | | | | |
|
| 2Q23 |
| 1Q23 | ||||||||||||||||
|
| |
| Onshore |
| Offshore |
| |
| |
| |
| Onshore |
| Offshore |
| |
| |
Installed power generation gross capacity (GW) (1),(2) | | Solar |
| Wind |
| Wind | | Other | | Total | | Solar |
| Wind |
| Wind | | Other | | Total |
France |
| 0.8 |
| 0.6 | | 0.0 | | 0.1 | | 1.6 | | 0.8 | | 0.6 | | 0.0 | | 0.2 | | 1.5 |
Rest of Europe |
| 0.2 |
| 1.1 | | 0.8 | | 0.0 | | 2.1 | | 0.2 | | 1.1 | | 0.5 | | 0.0 | | 1.8 |
Africa |
| 0.1 |
| 0.0 | | 0.0 | | 0.0 | | 0.2 | | 0.1 | | 0.0 | | 0.0 | | 0.0 | | 0.2 |
Middle East |
| 1.2 |
| 0.0 | | 0.0 | | 0.0 | | 1.2 | | 1.2 | | 0.0 | | 0.0 | | 0.0 | | 1.2 |
North America |
| 3.5 |
| 2.1 | | 0.0 | | 0.1 | | 5.6 | | 3.0 | | 2.1 | | 0.0 | | 0.1 | | 5.1 |
South America |
| 0.4 |
| 1.0 | | 0.0 | | 0.0 | | 1.4 | | 0.4 | | 0.9 | | 0.0 | | 0.0 | | 1.3 |
India |
| 5.1 |
| 0.4 | | 0.0 | | 0.0 | | 5.5 | | 5.0 | | 0.4 | | 0.0 | | 0.0 | | 5.4 |
Asia-Pacific |
| 1.4 |
| 0.0 | | 0.1 | | 0.0 | | 1.5 | | 1.3 | | 0.0 | | 0.1 | | 0.0 | | 1.5 |
Total |
| 12.5 |
| 5.2 | | 1.0 | | 0.3 | | 19.0 | | 12.0 | | 5.0 | | 0.7 | | 0.3 | | 17.9 |
| | | | | | | | | | | | | | | | | | | | |
|
| 2Q23 |
| 1Q23 | ||||||||||||||||
|
| |
| Onshore |
| Offshore |
| |
| |
| |
| Onshore |
| Offshore |
| |
| |
Power generation gross capacity from renewables in construction (GW) (1),(2) | | Solar | | Wind | | Wind | | Other | | Total | | Solar | | Wind | | Wind | | Other | | Total |
France | | 0.2 | | 0.1 | | 0.0 | | 0.0 | | 0.3 | | 0.2 | | 0.1 | | 0.0 | | 0.0 | | 0.4 |
Rest of Europe | | 0.1 | | 0.0 | | 0.3 | | 0.0 | | 0.5 | | 0.1 | | 0.0 | | 0.6 | | 0.0 | | 0.7 |
Africa | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 |
Middle East | | 0.1 | | 0.0 | | 0.0 | | 0.0 | | 0.1 | | 0.0 | | 0.0 | | 0.0 | | 0.0 | | 0.0 |
North America | | 2.8 | | 0.1 | | 0.0 | | 0.5 | | 3.4 | | 2.7 | | 0.1 | | 0.0 | | 0.5 | | 3.4 |
South America | | 0.1 | | 0.2 | | 0.0 | | 0.0 | | 0.3 | | 0.1 | | 0.6 | | 0.0 | | 0.0 | | 0.7 |
India | | 0.4 | | 0.1 | | 0.0 | | 0.0 | | 0.5 | | 0.4 | | 0.1 | | 0.0 | | 0.0 | | 0.5 |
Asia-Pacific | | 0.0 | | 0.0 | | 0.5 | | 0.0 | | 0.6 | | 0.0 | | 0.0 | | 0.5 | | 0.0 | | 0.6 |
Total | | 3.8 | | 0.5 | | 0.9 | | 0.6 | | 5.7 | | 3.6 | | 0.9 | | 1.2 | | 0.5 | | 6.2 |
| | | | | | | | | | | | | | | | | | | | |
| | 2Q23 | | 1Q23 | ||||||||||||||||
|
| |
| Onshore |
| Offshore |
| |
| |
| |
| Onshore |
| Offshore |
| |
| |
Power generation gross capacity from renewables in development (GW) (1),(2) | | Solar | | Wind | | Wind | | Other | | Total | | Solar | | Wind | | Wind | | Other | | Total |
France | | 1.0 | | 0.6 | | 0.0 | | 0.0 | | 1.6 | | 0.9 | | 0.2 | | 0.0 | | 0.0 | | 1.2 |
Rest of Europe | | 5.4 | | 0.4 | | 4.4 | | 0.1 | | 10.3 | | 3.6 | | 0.4 | | 4.4 | | 0.1 | | 8.4 |
Africa | | 0.6 | | 0.3 | | 0.0 | | 0.1 | | 1.0 | | 0.7 | | 0.3 | | 0.0 | | 0.1 | | 1.1 |
Middle East | | 0.4 | | 0.0 | | 0.0 | | 0.0 | | 0.4 | | 0.5 | | 0.0 | | 0.0 | | 0.0 | | 0.5 |
North America | | 9.0 | | 3.2 | | 4.1 | | 5.1 | | 21.3 | | 10.7 | | 2.8 | | 4.1 | | 4.5 | | 22.1 |
South America | | 1.6 | | 1.6 | | 0.0 | | 0.4 | | 3.6 | | 1.3 | | 0.5 | | 0.0 | | 0.0 | | 1.8 |
India | | 4.2 | | 0.1 | | 0.0 | | 0.0 | | 4.3 | | 4.6 | | 0.2 | | 0.0 | | 0.0 | | 4.8 |
Asia-Pacific | | 3.2 | | 0.4 | | 2.9 | | 0.9 | | 7.5 | | 2.4 | | 0.4 | | 2.9 | | 0.7 | | 6.4 |
Total | | 25.5 | | 6.6 | | 11.4 | | 6.5 | | 50.0 | | 24.7 | | 4.8 | | 11.4 | | 5.4 | | 46.3 |
(1) | Includes 20% of the gross capacities of Adani Green Energy Limited, 50% of Clearway Energy Group and, from 1Q23, 49% of Casa dos Ventos. |
(2) | End-of-period data. |
21
ADJUSTMENT ITEMS TO NET INCOME (TOTALENERGIES SHARE)
| | | | | | | | | | |
2Q23 |
| 1Q23 |
| 2Q22 | | In millions of dollars |
| 1H23 |
| 1H22 |
(377) |
| (159) |
| (4,546) | | Special items affecting net income (TotalEnergies share) |
| (536) |
| (9,539) |
– |
| 203 |
| – | | Gain (loss) on asset sales |
| 203 |
| – |
(5) |
| – |
| (8) | | Restructuring charges |
| (5) |
| (11) |
(469) |
| (60) |
| (3,719) | | Impairments |
| (529) |
| (8,780) |
97 |
| (302) |
| (819) | | Other |
| (205) |
| (748) |
(380) |
| (391) |
| 993 | | After-tax inventory effect: FIFO vs. replacement cost |
| (771) |
| 2,033 |
(111) |
| (434) |
| (551) | | Effect of changes in fair value |
| (545) |
| (631) |
(868) |
| (984) |
| (4,104) | | Total adjustments affecting net income |
| (1,852) |
| (8,137) |
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED EBITDA
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 vs |
| |
| |
| |
| 1H23 vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | In millions of dollars | | 1H23 | | 1H22 | | 1H22 |
4,088 |
| 5,557 |
| 5,692 |
| -28% | | Net income - TotalEnergies share |
| 9,645 |
| 10,636 |
| -9% |
868 |
| 984 |
| 4,104 |
| -79% | | Less: adjustment items to net income (TotalEnergies share) |
| 1,852 |
| 8,137 |
| -77% |
4,956 |
| 6,541 |
| 9,796 |
| -49% | | Adjusted net income - TotalEnergies share |
| 11,497 |
| 18,773 |
| -39% |
|
| | | | | | | Adjusted items | | | | | | |
61 |
| 74 |
| 89 |
| -31% | | Add: non-controlling interests |
| 135 |
| 165 |
| -18% |
2,715 |
| 4,090 |
| 5,274 |
| -49% | | Add: income taxes |
| 6,805 |
| 9,998 |
| -32% |
2,959 |
| 3,026 |
| 3,038 |
| -3% | | Add: depreciation, depletion and impairment of tangible assets and mineral interests |
| 5,985 |
| 6,186 |
| -3% |
92 |
| 99 |
| 98 |
| -6% | | Add: amortization and impairment of intangible assets |
| 191 |
| 194 |
| -2% |
724 |
| 710 |
| 572 |
| +27% | | Add: financial interest on debt |
| 1,434 |
| 1,034 |
| +39% |
(402) |
| (373) |
| (130) |
| ns | | Less: financial income and expense from cash & cash equivalents |
| (775) |
| (189) |
| ns |
11,105 |
| 14,167 |
| 18,737 |
| -41% | | Adjusted EBITDA |
| 25,272 |
| 36,161 |
| -30% |
22
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED NET OPERATING INCOME AND ADJUSTED OPERATING INCOME
| | | | | | |
2nd quarter 2023 |
| statement |
|
|
|
|
(M$) | | of income | | Adjustments | | Adjusted |
Sales |
| 56,271 |
| (76) |
| 56,195 |
Excise taxes |
| (4,737) |
| 0 |
| (4,737) |
Revenues from sales |
| 51,534 |
| (76) |
| 51,458 |
| | | | | | |
Purchases net of inventory variation |
| (33,864) |
| 485 |
| (33,379) |
Other operating expenses |
| (7,906) |
| 152 |
| (7,754) |
Exploration costs |
| (62) |
| 0 |
| (62) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,106) |
| 147 |
| (2,959) |
Operating income |
| 6,596 |
| 708 |
| 7,304 |
| | | | | | |
Other income |
| 116 |
| 0 |
| 116 |
Other expense |
| (366) |
| 110 |
| (256) |
| | | | | | |
Other financial income |
| 413 |
| (12) |
| 401 |
Other financial expense |
| (173) |
| 0 |
| (173) |
| | | | | | |
Net income (loss) from equity affiliates |
| 267 |
| 395 |
| 662 |
| | | | | | |
Income taxes |
| (2,487) |
| (228) |
| (2,715) |
Less tax on cost of net debt |
| 31 |
| (36) |
| (5) |
Net operating income |
| 4,397 |
| 937 |
| 5,334 |
| | | | | | |
Financial interest on debt |
| (724) |
| 0 |
| (724) |
Financial income and expense from cash & cash equivalents |
| 510 |
| (108) |
| 402 |
Cost of net debt |
| (214) |
| (108) |
| (322) |
Tax on cost of net debt |
| (31) |
| 36 |
| 5 |
Net cost of net debt |
| (245) |
| (72) |
| (317) |
| | | | | | |
Consolidated net income |
| 4,152 |
| 865 |
| 5,017 |
TotalEnergies share |
| 4,088 |
| 868 |
| 4,956 |
Non-controlling interests |
| 64 |
| (3) |
| 61 |
| | | | | | |
1st quarter 2023 |
| statement |
|
|
|
|
(M$) | | of income | | Adjustments | | Adjusted |
Sales |
| 62,603 |
| 76 |
| 62,679 |
Excise taxes |
| (4,370) |
| 0 |
| (4,370) |
Revenues from sales |
| 58,233 |
| 76 |
| 58,309 |
| | | | | | |
Purchases net of inventory variation |
| (38,351) |
| 872 |
| (37,479) |
Other operating expenses |
| (7,785) |
| 33 |
| (7,752) |
Exploration costs |
| (92) |
| (2) |
| (94) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,062) |
| 36 |
| (3,026) |
Operating income |
| 8,943 |
| 1,015 |
| 9,958 |
| | | | | | |
Other income |
| 341 |
| (264) |
| 77 |
Other expense |
| (300) |
| 163 |
| (137) |
| | | | | | |
Other financial income |
| 258 |
| (10) |
| 248 |
Other financial expense |
| (183) |
| 0 |
| (183) |
| | | | | | |
Net income (loss) from equity affiliates |
| 960 |
| 119 |
| 1,079 |
| | | | | | |
Income taxes |
| (4,071) |
| (19) |
| (4,090) |
Less tax on cost of net debt |
| (24) |
| (12) |
| (36) |
Net operating income |
| 5,924 |
| 992 |
| 6,916 |
| | | | | | |
Financial interest on debt |
| (710) |
| 0 |
| (710) |
Financial income and expense from cash & cash equivalents |
| 393 |
| (20) |
| 373 |
Cost of net debt |
| (317) |
| (20) |
| (337) |
Tax on cost of net debt |
| 24 |
| 12 |
| 36 |
Net cost of net debt |
| (293) |
| (8) |
| (301) |
| | | | | | |
Consolidated net income |
| 5,631 |
| 984 |
| 6,615 |
TotalEnergies share |
| 5,557 |
| 984 |
| 6,541 |
Non-controlling interests |
| 74 |
| 0 |
| 74 |
23
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED NET OPERATING INCOME AND ADJUSTED OPERATING INCOME (CONT.)
| | | | | | |
2nd quarter 2022 | | statement | | | | |
(M$) |
| of income |
| Adjustments |
| Adjusted |
Sales |
| 74,774 |
| 15 |
| 74,789 |
Excise taxes |
| (4,329) |
| 0 |
| (4,329) |
Revenues from sales |
| 70,445 |
| 15 |
| 70,460 |
| | | | | | |
Purchases net of inventory variation |
| (45,443) |
| (580) |
| (46,023) |
Other operating expenses |
| (8,041) |
| 421 |
| (7,620) |
Exploration costs |
| (117) |
| 0 |
| (117) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,102) |
| 64 |
| (3,038) |
Operating income |
| 13,742 |
| (80) |
| 13,662 |
| | | | | | |
Other income |
| 429 |
| 0 |
| 429 |
Other expense |
| (1,305) |
| 776 |
| (529) |
| | | | | | |
Other financial income |
| 231 |
| 0 |
| 231 |
Other financial expense |
| (136) |
| 0 |
| (136) |
| | | | | | |
Net income (loss) from equity affiliates |
| (1,546) |
| 3,490 |
| 1,944 |
| | | | | | |
Income taxes |
| (5,284) |
| 10 |
| (5,274) |
Less tax on cost of net debt |
| (22) |
| (35) |
| (57) |
Net operating income |
| 6,109 |
| 4,161 |
| 10,270 |
| | | | | | |
Financial interest on debt |
| (572) |
| 0 |
| (572) |
Financial income and expense from cash & cash equivalents |
| 245 |
| (115) |
| 130 |
Cost of net debt |
| (327) |
| (115) |
| (442) |
Tax on cost of net debt |
| 22 |
| 35 |
| 57 |
Net cost of net debt |
| (305) |
| (80) |
| (385) |
| | | | | | |
Consolidated net income |
| 5,804 |
| 4,081 |
| 9,885 |
TotalEnergies share |
| 5,692 |
| 4,104 |
| 9,796 |
Non-controlling interests |
| 112 |
| (23) |
| 89 |
24
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED NET OPERATING INCOME AND ADJUSTED OPERATING INCOME (CONT.)
| | | | | | |
1st half 2023 |
| statement |
|
|
| |
(M$) | | of income | | Adjustments | | Adjusted |
Sales |
| 118,874 |
| 0 |
| 118,874 |
Excise taxes |
| (9,107) |
| 0 |
| (9,107) |
Revenues from sales |
| 109,767 |
| 0 |
| 109,767 |
| | | | | | |
Purchases net of inventory variation |
| (72,215) |
| 1,357 |
| (70,858) |
Other operating expenses |
| (15,691) |
| 185 |
| (15,506) |
Exploration costs |
| (154) |
| (2) |
| (156) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,168) |
| 183 |
| (5,985) |
Operating income |
| 15,539 |
| 1,723 |
| 17,262 |
| | | | | | |
Other income |
| 457 |
| (264) |
| 193 |
Other expense |
| (666) |
| 273 |
| (393) |
| | | | | | |
Other financial income |
| 671 |
| (22) |
| 649 |
Other financial expense |
| (356) |
| 0 |
| (356) |
| | | | | | |
Net income (loss) from equity affiliates |
| 1,227 |
| 514 |
| 1,741 |
| | | | | | |
Income taxes |
| (6,558) |
| (247) |
| (6,805) |
Less tax on cost of net debt |
| 7 |
| (48) |
| (41) |
Net operating income |
| 10,321 |
| 1,929 |
| 12,250 |
| | | | | | |
Financial interest on debt |
| (1,434) |
| 0 |
| (1,434) |
Financial income and expense from cash & cash equivalents |
| 903 |
| (128) |
| 775 |
Cost of net debt |
| (531) |
| (128) |
| (659) |
Tax on cost of net debt |
| (7) |
| 48 |
| 41 |
Net cost of net debt |
| (538) |
| (80) |
| (618) |
| | | | | | |
Consolidated net income |
| 9,783 |
| 1,849 |
| 11,632 |
TotalEnergies share |
| 9,645 |
| 1,852 |
| 11,497 |
Non-controlling interests |
| 138 |
| (3) |
| 135 |
| | | | | | |
1st half 2022 |
| statement |
|
|
|
|
(M$) | | of income | | Adjustments | | Adjusted |
Sales |
| 143,380 |
| 3 |
| 143,383 |
Excise taxes |
| (8,985) |
| 0 |
| (8,985) |
Revenues from sales |
| 134,395 |
| 3 |
| 134,398 |
| | | | | | |
Purchases net of inventory variation |
| (85,091) |
| (1,694) |
| (86,785) |
Other operating expenses |
| (15,664) |
| 635 |
| (15,029) |
Exploration costs |
| (978) |
| 725 |
| (253) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,781) |
| 595 |
| (6,186) |
Operating income |
| 25,881 |
| 264 |
| 26,145 |
| | | | | | |
Other income |
| 572 |
| (22) |
| 550 |
Other expense |
| (3,595) |
| 2,797 |
| (798) |
| | | | | | |
Other financial income |
| 434 |
| (84) |
| 350 |
Other financial expense |
| (271) |
| 0 |
| (271) |
| | | | | | |
Net income (loss) from equity affiliates |
| (1,503) |
| 5,308 |
| 3,805 |
| | | | | | |
Income taxes |
| (10,088) |
| 90 |
| (9,998) |
Less tax on cost of net debt |
| (20) |
| (77) |
| (97) |
Net operating income |
| 11,410 |
| 8,276 |
| 19,686 |
| | | | | | |
Financial interest on debt |
| (1,034) |
| 0 |
| (1,034) |
Financial income and expense from cash & cash equivalents |
| 459 |
| (270) |
| 189 |
Cost of net debt |
| (575) |
| (270) |
| (845) |
Tax on cost of net debt |
| 20 |
| 77 |
| 97 |
Net cost of net debt |
| (555) |
| (193) |
| (748) |
| | | | | | |
Consolidated net income |
| 10,855 |
| 8,083 |
| 18,938 |
TotalEnergies share |
| 10,636 |
| 8,137 |
| 18,773 |
Non-controlling interests |
| 219 |
| (54) |
| 165 |
25
RECONCILIATION OF REVENUES FROM SALES TO ADJUSTED EBITDA AND NET INCOME (TOTALENERGIES SHARE)
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 |
| 2Q22 |
| In millions of dollars |
| 1H23 |
| 1H22 | | 1H22 |
| | | | | | | | Adjusted items | | | | | | |
| | | | | | | | | | | | | | |
51,458 |
| 58,309 |
| 70,460 |
| -27% |
| Revenues from sales |
| 109,767 |
| 134,398 | | -18% |
(33,379) |
| (37,479) |
| (46,023) |
| ns |
| Purchases, net of inventory variation |
| (70,858) |
| (86,785) | | ns |
(7,754) |
| (7,752) |
| (7,620) |
| ns |
| Other operating expenses |
| (15,506) |
| (15,029) | | ns |
(62) |
| (94) |
| (117) |
| ns |
| Exploration costs |
| (156) |
| (253) | | ns |
116 |
| 77 |
| 429 |
| -73% |
| Other income |
| 193 |
| 550 | | -65% |
(164) |
| (38) |
| (431) |
| ns |
| Other expense, excluding amortization and impairment of intangible assets |
| (202) |
| (604) | | ns |
401 |
| 248 |
| 231 |
| +74% |
| Other financial income |
| 649 |
| 350 | | +85% |
(173) |
| (183) |
| (136) |
| ns |
| Other financial expense |
| (356) |
| (271) | | ns |
662 |
| 1,079 |
| 1,944 |
| -66% |
| Net income (loss) from equity affiliates |
| 1,741 |
| 3,805 | | -54% |
11,105 |
| 14,167 |
| 18,737 |
| -41% |
| Adjusted EBITDA |
| 25,272 |
| 36,161 | | -30% |
| | | | | | |
| Adjusted items | | | | | | |
| | | | | | | | | | | | | | |
(2,959) |
| (3,026) |
| (3,038) |
| ns |
| Less: depreciation, depletion and impairment of tangible assets and mineral interests |
| (5,985) |
| (6,186) | | ns |
(92) |
| (99) |
| (98) |
| ns |
| Less: amortization of intangible assets |
| (191) |
| (194) | | ns |
(724) |
| (710) |
| (572) |
| ns |
| Less: financial interest on debt |
| (1,434) |
| (1,034) | | ns |
402 |
| 373 |
| 130 |
| x3.1 |
| Add: financial income and expense from cash & cash equivalents |
| 775 |
| 189 | | x4.1 |
(2,715) | | (4,090) | | (5,274) | | ns | | Less: income taxes | | (6,805) | | (9,998) | | ns |
(61) | | (74) | | (89) | | ns | | Less: non-controlling interests | | (135) | | (165) | | ns |
(868) |
| (984) |
| (4,104) |
| ns |
| Add: adjustment - TotalEnergies share |
| (1,852) |
| (8,137) | | ns |
4,088 |
| 5,557 |
| 5,692 |
| -28% |
| Net income - TotalEnergies share |
| 9,645 |
| 10,636 | | -9% |
26
INVESTMENTS – DIVESTMENTS
| | | | | | | | | | | | | | |
| | | | | | 2Q23 | | | | | | | | 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 |
| 1Q23 |
| 2Q22 | | 2Q22 |
| In millions of dollars |
| 1H23 |
| 1H22 |
| 1H22 |
4,271 |
| 3,433 |
| 2,819 | | +51% | | Organic investments (a) |
| 7,704 |
| 4,800 |
| +60% |
328 |
| 205 |
| 98 | | x3.3 | | Capitalized exploration |
| 533 |
| 212 |
| x2.5 |
366 |
| 374 |
| 277 | | +32% | | Increase in non-current loans |
| 740 |
| 511 |
| +45% |
(84) |
| (229) |
| (174) | | ns | | Repayment of non-current loans, excluding organic loan repayment from equity affiliates |
| (313) |
| (609) |
| ns |
– |
| – |
| (190) | | -100% | | Change in debt from renewable projects (TotalEnergies share) |
| – |
| (190) |
| -100% |
482 |
| 3,256 |
| 2,464 | | -80% | | Acquisitions (b) |
| 3,738 |
| 3,864 |
| -3% |
162 |
| 269 |
| 388 | | -58% | | Asset sales (c) |
| 431 |
| 866 |
| -50% |
(35) |
| (3) |
| 176 | | ns | | Change in debt from renewable projects (partner share) |
| (38) |
| 174 |
| ns |
320 |
| 2,987 |
| 2,076 | | -85% | | Net acquisitions |
| 3,307 |
| 2,998 |
| +10% |
4,591 |
| 6,420 |
| 4,895 | | -6% | | Net investments (a + b - c) |
| 11,011 |
| 7,798 |
| +41% |
– | | – | | – | | ns | | Other transactions with non-controlling interests (d) | | – | | – | | ns |
(18) |
| 6 |
| (238) | | ns | | Organic loan repayment from equity affiliates (e) |
| (12) |
| (725) |
| ns |
(35) |
| (3) |
| 366 | | ns | | Change in debt from renewable projects financing* (f) |
| (38) |
| 364 |
| ns |
64 |
| 60 |
| 37 | | +73% | | Capex linked to capitalized leasing contracts (g) |
| 124 |
| 73 |
| +70% |
1 | | 1 | | 4 | | -75% | | Expenditures related to carbon credits ( h ) | | 2 | | 4 | | -50% |
4,473 |
| 6,362 |
| 4,982 | | -10% | | Cash flow used in investing activities |
| 10,835 |
| 7,360 |
| +47% |
* | Change in debt from renewable projects (TotalEnergies share and partner share). |
CASH FLOW
| | | | | | | | | | | | | | |
|
| |
| |
| 2Q23 |
| |
| |
| |
| 1H23 |
| | | | | | vs | | | | | | | | vs |
2Q23 | | 1Q23 | | 2Q22 | | 2Q22 | | In millions of dollars | | 1H23 | | 1H22 | | 1H22 |
9,900 |
| 5,133 |
| 16,284 | | -39% | | Cash flow from operating activities |
| 15,033 |
| 23,901 |
| -37% |
1,720 |
| (3,989) |
| 2,161 | | -20% | | Less (Increase) decrease in working capital** |
| (2,269) |
| (2,614) |
| ns |
(252) |
| (502) |
| 1,151 | | ns | | Less Inventory effect |
| (754) |
| 2,406 |
| ns |
(35) |
| (3) |
| (23) | | ns | | Less Capital gain from renewable project sales |
| (38) |
| (25) |
| ns |
(18) |
| 6 |
| (238) | | ns | | Less Organic loan repayments from equity affiliates |
| (12) |
| (725) |
| ns |
8,485 |
| 9,621 |
| 13,233 | | -36% | | Operating cash flow before working capital changes ( a )* |
| 18,106 |
| 24,859 |
| -27% |
(112) |
| (153) |
| (399) | | ns | | Financial charges |
| (265) |
| (767) |
| ns |
8,596 |
| 9,774 |
| 13,631 | | -37% | | Operating cash flow before working capital changes w/o financial charges (DACF) |
| 18,371 |
| 25,626 |
| -28% |
4,271 |
| 3,433 |
| 2,819 | | +51% | | Organic investments (b) |
| 7,704 |
| 4,800 |
| +60% |
4,214 |
| 6,188 |
| 10,414 | | -60% | | Free cash flow after organic investments, w/o net asset sales (a - b) |
| 10,402 |
| 20,059 |
| -48% |
4,591 |
| 6,420 |
| 4,895 | | -6% | | Net investments (c) |
| 11,011 |
| 7,798 |
| +41% |
3,894 |
| 3,201 |
| 8,338 | | -53% | | Net cash flow (a - c) |
| 7,095 |
| 17,061 |
| -58% |
* | 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 Integrated LNG and Integrated Power sectors’ contracts and including capital gain from renewable projects sale. Historical data have been restated to cancel the impact of fair valuation of Integrated LNG and Integrated Power sectors’ contracts. |
** | Changes in working capital are presented excluding the mark-to-market effect of Integrated LNG and Integrated Power sectors’ contracts. |
27
CASH FLOW BY SEGMENT
Exploration & Production segment
| | | | | | | | | | |
In millions of dollars |
| 2Q23 |
| 1Q23 |
| 2Q22 |
| 1H23 |
| 1H22 |
Cash flow from operating activities |
| 4,047 |
| 4,536 |
| 8,768 |
| 8,583 |
| 14,536 |
Less (Increase) decrease in working capital |
| (317) |
| (371) |
| 1,384 |
| (688) |
| (127) |
Less Inventory effect |
| – |
| – |
| – |
| – |
| – |
Less Capital gain from renewable project sales |
| – |
| – |
| – |
| – |
| – |
Less Organic loan repayments from equity affiliates |
| – |
| – |
| 1 |
| – |
| (23) |
= Operating cash flow before working capital changes w/o financial charges except those related to leases (DACF) |
| 4,364 |
| 4,907 |
| 7,383 |
| 9,271 |
| 14,686 |
Integrated LNG segment
| | | | | | | | | | |
In millions of dollars |
| 2Q23 |
| 1Q23 |
| 2Q22 |
| 1H23 |
| 1H22 |
Cash flow from operating activities |
| 1,332 |
| 3,536 |
| 3,802 |
| 4,868 |
| 6,021 |
Less (Increase) decrease in working capital* |
| (469) |
| 1,456 |
| 1,926 |
| 987 |
| 2,120 |
Less Inventory effect |
| – |
| – |
| – |
| – |
| – |
Less Capital gain from renewable project sales |
| – |
| – |
| – |
| – |
| – |
Less Organic loan repayments from equity affiliates |
| – |
| (1) |
| (236) |
| (1) |
| (703) |
= Operating cash flow before working capital changes w/o financial charges except those related to leases (DACF) |
| 1,801 |
| 2,081 |
| 2,112 |
| 3,882 |
| 4,604 |
* Changes in working capital are presented excluding the mark-to-market effect of Integrated LNG and Integrated Power sectors’ contracts.
Integrated Power segment
| | | | | | | | | | |
In millions of dollars |
| 2Q23 |
| 1Q23 |
| 2Q22 |
| 1H23 |
| 1H22 |
Cash flow from operating activities |
| 2,284 |
| (1,285) |
| 168 |
| 999 |
| (1,736) |
Less (Increase) decrease in working capital* |
| 1,844 |
| (1,715) |
| (57) |
| 129 |
| (2,052) |
Less Inventory effect |
| – |
| – |
| – |
| – |
| – |
Less Capital gain from renewable project sales |
| (35) |
| (3) |
| (23) |
| (38) |
| (25) |
Less Organic loan repayments from equity affiliates |
| (16) |
| (7) |
| – |
| (23) |
| – |
= Operating cash flow before working capital changes w/o financial charges except those related to leases (DACF) |
| 491 |
| 440 |
| 248 |
| 931 |
| 341 |
* Changes in working capital are presented excluding the mark-to-market effect of Integrated LNG and Integrated Power sectors’ contracts.
Refining & Chemicals segment
| | | | | | | | | | |
In millions of dollars |
| 2Q23 |
| 1Q23 |
| 2Q22 |
| 1H23 |
| 1H22 |
Cash flow from operating activities |
| 1,923 |
| (851) |
| 3,526 |
| 1,072 |
| 4,633 |
Less (Increase) decrease in working capital |
| 788 |
| (2,183) |
| (209) |
| (1,395) |
| (1,486) |
Less Inventory effect |
| (192) |
| (415) |
| 775 |
| (607) |
| 1,722 |
Less Capital gain from renewable project sales |
| – |
| – |
| – |
| – |
| – |
Less Organic loan repayments from equity affiliates |
| (2) |
| 14 |
| (3) |
| 12 |
| 1 |
= Operating cash flow before working capital changes w/o financial charges except those related to leases (DACF) |
| 1,329 |
| 1,733 |
| 2,963 |
| 3,062 |
| 4,396 |
Marketing & Services segment
| | | | | | | | | | |
In millions of dollars |
| 2Q23 |
| 1Q23 |
| 2Q22 |
| 1H23 |
| 1H22 |
Cash flow from operating activities |
| 665 |
| (673) |
| 580 |
| (8) |
| 1,478 |
Less (Increase) decrease in working capital |
| (31) |
| (1,042) |
| (381) |
| (1,073) |
| (254) |
Less Inventory effect |
| (60) |
| (87) |
| 376 |
| (147) |
| 684 |
Less Capital gain from renewable project sales |
| – |
| – |
| – |
| – |
| – |
Less Organic loan repayments from equity affiliates |
| – |
| – |
| – |
| – |
| – |
= Operating cash flow before working capital changes w/o financial charges except those related to leases (DACF) |
| 756 |
| 456 |
| 585 |
| 1,212 |
| 1,048 |
28
GEARING14 RATIO
| | | | | | |
In millions of dollars |
| 06/30/2023 | | 03/31/2023 | | 06/30/2022 |
Current borrowings (1) |
| 13,980 | | 16,280 | | 14,589 |
Other current financial liabilities |
| 443 | | 597 | | 401 |
Current financial assets (1),(2) | | (6,397) | | (7,223) | | (7,697) |
Net financial assets classified as held for sale (1) |
| (41) | | (38) | | (14) |
Non-current financial debt (1) |
| 33,387 | | 34,820 | | 39,233 |
Non-current financial assets (1) |
| (1,264) | | (1,101) | | (692) |
Cash and cash equivalents |
| (25,572) | | (27,985) | | (32,848) |
Net debt (a) |
| 14,536 | | 15,350 | | 12,972 |
Shareholders’ equity – TotalEnergies share |
| 113,682 | | 115,581 | | 116,688 |
Non-controlling interests |
| 2,770 | | 2,863 | | 3,309 |
Shareholders’ equity (b) |
| 116,452 | | 118,444 | | 119,997 |
Net-debt-to-capital ratio = a / (a+b) |
| 11.1% | | 11.5% | | 9.8% |
Leases (c) | | 8,090 | | 8,131 | | 7,963 |
Net-debt-to-capital ratio including leases (a+c) / (a+b+c) |
| 16.3% | | 16.5% | | 14.9% |
(1) Excludes leases receivables and leases debts.
(2) Including initial margins held as part of the Company's activities on organized markets.
RETURN ON AVERAGE CAPITAL EMPLOYED (ROACE)15
Twelve months ended June 30, 2023
| | | | | | | | | | | | |
| | Exploration & | | | | Integrated | | Refining & | | Marketing | | |
In millions of dollars |
| Production |
| Integrated LNG |
| Power |
| Chemicals |
| & Services |
| Company |
Adjusted net operating income |
| 12,747 |
| 9,223 |
| 1,537 |
| 6,044 |
| 1,541 |
| 30,776 |
Capital employed at 06/30/2022* |
| 70,248 |
| 41,606 |
| 12,568 |
| 7,958 |
| 7,475 |
| 137,035 |
Capital employed at 06/30/2023* |
| 68,530 |
| 34,598 |
| 17,804 |
| 9,698 |
| 8,796 |
| 137,372 |
ROACE15 |
| 18.4% | | 24.2% |
| 10.1% | | 68.5% | | 18.9% | | 22.4% |
* At replacement cost (excluding after-tax inventory effect).
Twelve months ended March 31, 2023
| | | | | | | | | | | | |
| | Exploration & | | | | Integrated | | Refining & | | Marketing | | |
In millions of dollars |
| Production |
| Integrated LNG |
| Power |
| Chemicals |
| & Services |
| Company |
Adjusted net operating income |
| 15,117 |
| 10,108 |
| 1,427 |
| 7,800 |
| 1,558 |
| 35,712 |
Capital employed at 03/31/2022* |
| 71,518 |
| 44,803 |
| 9,937 |
| 8,847 |
| 7,751 |
| 141,853 |
Capital employed at 03/31/2023* |
| 67,658 |
| 34,183 |
| 18,982 |
| 10,115 |
| 8,811 |
| 139,830 |
ROACE15 |
| 21.7% | | 25.6% |
| 9.9% | | 82.3% | | 18.8% | | 25.4% |
* | At replacement cost (excluding after-tax inventory effect). |
14 Gearing is a non-GAAP measure. The definition of Gearing is available in the “Glossary” on page 31 of this exhibit.
15 Return on Average Capital Employed (ROACE) is a non-GAAP measure. The definition of Return on Average Capital Employed (ROACE) is available in the “Glossary” on page 31 of this exhibit.
29
RECONCILIATION OF ROACE
| | |
For the ended year Jun 30, 2023 |
| For the ended year Jun 30, 2023 |
(M$) |
| (M$) |
Adjusted net operating income 3rd quarter 2022 |
| 10,313 |
Adjusted net operating income 4th quarter 2022 |
| 8,213 |
Adjusted net operating income 1st quarter 2023 |
| 6,916 |
Adjusted net operating income 2nd quarter 2023 |
| 5,334 |
Adjusted net operating income |
| 30,776 |
| | |
Balance sheet as of Jun 30, 2022 |
|
|
Property, plant and equipment, intangible assets, net |
| 138,474 |
Investments & loans in equity affiliates |
| 28,210 |
Other non-current assets |
| 9,196 |
Working capital |
| 2,693 |
Provisions and other non-current liabilities |
| (37,883) |
Assets and liabilities classified as held for sale |
| 243 |
Capital Employed (Balance sheet) |
| 140,932 |
Less inventory valuation effect |
| (3,897) |
Capital Employed (Business segment information) |
| 137,035 |
| | |
Balance sheet as of Jun 30, 2023 |
|
|
Property, plant and equipment, intangible assets, net |
| 135,891 |
Investments & loans in equity affiliates |
| 30,425 |
Other non-current assets |
| 7,412 |
Working capital |
| (7,401) |
Provisions and other non-current liabilities |
| (34,404) |
Assets and liabilities classified as held for sale |
| 7,157 |
Capital Employed (Balance sheet) |
| 139,080 |
Less inventory valuation effect |
| (1,708) |
Capital Employed (Business segment information) |
| 137,372 |
| | |
ROACE as a percentage |
| 22.4% |
| | |
For the ended year March 31, 2023 |
| For the ended year March 31, 2023 |
(M$) |
| (M$) |
Adjusted net operating income 2nd quarter 2022 |
| 10,270 |
Adjusted net operating income 3rd quarter 2022 |
| 10,313 |
Adjusted net operating income 4th quarter 2022 |
| 8,213 |
Adjusted net operating income 1st quarter 2023 |
| 6,916 |
Adjusted net operating income |
| 35,712 |
| | |
Balance sheet as of March 31, 2022 |
|
|
Property, plant and equipment, intangible assets, net |
| 136,954 |
Investments & loans in equity affiliates |
| 29,334 |
Other non-current assets |
| 9,822 |
Working capital |
| 3,591 |
Provisions and other non-current liabilities |
| (35,540) |
Assets and liabilities classified as held for sale |
| 775 |
Capital Employed (Balance sheet) |
| 144,936 |
Less inventory valuation effect |
| (3,083) |
Capital Employed (Business segment information) |
| 141,853 |
| | |
Balance sheet as of March 31, 2023 |
| |
Property, plant and equipment, intangible assets, net |
| 140,733 |
Investments & loans in equity affiliates |
| 29,997 |
Other non-current assets |
| 8,690 |
Working capital |
| (3,547) |
Provisions and other non-current liabilities |
| (34,410) |
Assets and liabilities classified as held for sale |
| 463 |
Capital Employed (Balance sheet) |
| 141,926 |
Less inventory valuation effect |
| (2,096) |
Capital Employed (Business segment information) |
| 139,830 |
| | |
ROACE as a percentage |
| 25.4% |
30
GLOSSARY
Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is a non-GAAP financial measure and its most directly comparable IFRS measure is Net income. It refers 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. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to measure and compare the Company’s profitability with utility companies.
Adjusted net income is a non-GAAP financial measure and its most directly comparable IFRS measure is Net income. Adjusted net income refers to net income less adjustment items to net income. Adjustment items are inventory valuation effect, effect of changes in fair value, and special items. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to evaluate the Company’s operating results and to understand its operating trends by removing the impact of non-operational results and special items.
Adjusted net operating income is a non-GAAP financial measure and its most directly comparable IFRS measure is Net income. Adjusted net operating income refers to Net operating income less adjustment items. Net operating income refers to Net income before net cost of net debt, i.e., cost of net debt net of its tax effects. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to evaluate the Company’s operating results and understanding its operating trends, by removing the impact of non-operational results and special items and is used to evaluate the return on capital employed (ROACE) as explained below.
Adjusted operating income is a non-GAAP financial measure and its most comparable IFRS measure is Operating income. Adjusted operating income refers to Operating income less adjustment items. Operating income refers to Net operating income before Net income (loss) from equity affiliates and other items and Tax on net operating income. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to evaluate the Company’s operating results and understand its operating trends, by removing the impact of non-operational results and special items.
Debt adjusted cash flow (DACF) is a non-GAAP financial measure and its most directly comparable IFRS measure is Cash flow from operating activities. DACF is defined as operating cash flow before working capital changes and without financial charges. This indicator can be a valuable tool for decision makers, analysts and shareholders alike because it corresponds to the funds theoretically available to the Company for investments, debt repayment and distribution to shareholders, and therefore facilitates comparison of the Company’s results of operations with those of other registrants, independent of their capital structure and working capital requirements. By exception, DACF at segment level excludes financial charges except those related to leases. This sub-indicator can be a valuable tool for decision makers, analysts and shareholders alike because it corresponds to the funds theoretically generated by the segment once we have excluded financial charges, except those related to leases.
Free cash flow after organic investments, without net asset sales is a non-GAAP financial measure and its most directly comparable IFRS measure is Cash flow from operating activities. Free cash flow after organic investments, without net asset sales refers to Operating cash flow before working capital changes minus organic investments. Organic investments refer to net investments excluding acquisitions, asset sales and other transactions with non-controlling interests. This indicator can be a valuable tool for decision makers, analysts and shareholders alike because it illustrates operating cash flow generated by the business post allocation of cash for organic investments.
Gearing is a non-GAAP financial measure and its most directly comparable IFRS measure is the ratio of total financial liabilities to total equity. Gearing is a Net-debt-to-capital ratio, which is calculated as the ratio of Net debt excluding leases to Equity + Net debt excluding leases. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to assess the strength of the Company’s balance sheet.
Net cash flow is a non-GAAP financial measure and its most directly comparable IFRS measure is Cash flow from operating activities. Net cash flow refers to Operating cash flow before working capital changes minus net investments. Net investments is a non-GAAP financial measure and its most directly comparable IFRS measure is Cash flow used in investing activities. Net investments refer to Cash flow used in investing activities including other transactions with non-controlling interests, including change in debt from renewable projects financing, including expenditures related to carbon credits, excluding organic loan repayment from equity affiliates and excluding capex linked to capitalized leasing contracts. Net cash flow can be a valuable tool for decision makers, analysts and shareholders alike because it illustrates cash flow generated by the operations of the Company post allocation of cash for organic investments and net acquisitions (acquisitions - assets sales - other operations with non-controlling interests). This performance indicator corresponds to the cash flow available to repay debt and allocate cash to shareholder distribution or share buybacks.
31
Operating cash flow before working capital changes is a non-GAAP financial measure and its most directly comparable IFRS measure is Cash flow from operating activities. 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 Integrated Gas and Integrated Power contracts, including capital gain from renewable projects sales and including organic loan repayments from equity affiliates. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to help understand changes in cash flow from operating activities, excluding the impact of working capital changes across periods on a consistent basis and with the performance of peer companies in a manner that, when viewed in combination with the Company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the Company’s business and performance. This performance indicator is used by the Company as a base for its cash flow allocation and notably to guide on the share of its cash flow to be allocated to the distribution to shareholders.
Return on Average Capital Employed (ROACE) is a non-GAAP financial measure and its most directly comparable IFRS measure is the ratio of Net operating income to average capital employed between the beginning and the end of the period. ROACE is the ratio of adjusted net operating income to average capital employed at replacement cost between the beginning and the end of the period. This indicator can be a valuable tool for decision makers, analysts and shareholders alike to measure the profitability of the Company’s capital employed in its business operations and is used by the Company to benchmark its performance internally and externally with its peers.
MAIN INDICATORS
| | | | | | | | | | | | |
|
|
|
| 2Q23 |
| 1Q23 |
| 4Q22 |
| 3Q22 |
| 2Q22 |
€/$ | | |
| 1.08 |
| 1.07 |
| 1.02 |
| 1.01 |
| 1.06 |
Brent |
| ($/b) |
| 78.1 |
| 81.2 |
| 88.8 |
| 100.8 |
| 113.9 |
Average liquids price* |
| ($/b) |
| 72.0 |
| 73.4 |
| 80.6 |
| 93.6 |
| 102.9 |
Average gas price* (1) |
| ($/Mbtu) |
| 5.98 |
| 8.89 |
| 12.74 |
| 16.83 |
| 11.01 |
Average LNG price** (1) |
| ($/Mbtu) |
| 9.84 |
| 13.27 |
| 14.83 |
| 21.51 |
| 13.96 |
Variable Cost Margin, European refining*** |
| ($/t) |
| 42.7 |
| 87.8 |
| 73.6 |
| 99.2 |
| 145.7 |
* | Sales in $ / sales in volume for consolidated affiliates. |
** | Sales in $ / sales in volume for consolidated and equity affiliates. |
(1) | Does not take into account gas and LNG trading activities, which results are expected to be significantly higher compared to the third quarter 2021, capturing optimization opportunities generated by large LNG trading portfolio in the prevailing high gas spot price environment. |
*** | 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.
32
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$)(a) | | 2023 | | 2023 | | 2022 |
| | | | | | |
Sales | | 56,271 | | 62,603 | | 74,774 |
Excise taxes | | (4,737) | | (4,370) | | (4,329) |
Revenues from sales | | 51,534 | | 58,233 | | 70,445 |
| | | | | | |
Purchases, net of inventory variation | | (33,864) | | (38,351) | | (45,443) |
Other operating expenses | | (7,906) | | (7,785) | | (8,041) |
Exploration costs | | (62) | | (92) | | (117) |
Depreciation, depletion and impairment of tangible assets and mineral interests | | (3,106) | | (3,062) | | (3,102) |
Other income | | 116 | | 341 | | 429 |
Other expense | | (366) | | (300) | | (1,305) |
| | | | | | |
Financial interest on debt | | (724) | | (710) | | (572) |
Financial income and expense from cash & cash equivalents | | 510 | | 393 | | 245 |
Cost of net debt | | (214) | | (317) | | (327) |
| | | | | | |
Other financial income | | 413 | | 258 | | 231 |
Other financial expense | | (173) | | (183) | | (136) |
| | | | | | |
Net income (loss) from equity affiliates | | 267 | | 960 | | (1,546) |
| | | | | | |
Income taxes | | (2,487) | | (4,071) | | (5,284) |
Consolidated net income | | 4,152 | | 5,631 | | 5,804 |
TotalEnergies share | | 4,088 | | 5,557 | | 5,692 |
Non-controlling interests | | 64 | | 74 | | 112 |
Earnings per share ($) | | 1.65 | | 2.23 | | 2.18 |
Fully-diluted earnings per share ($) | | 1.64 | | 2.21 | | 2.16 |
(a) Except for per share amounts.
33
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$) | | 2023 | | 2023 | | 2022 |
| | | | | | |
Consolidated net income | | 4,152 | | 5,631 | | 5,804 |
| | | | | | |
Other comprehensive income | | | |
| | |
| | | | | | |
Actuarial gains and losses | | 135 | | 3 | | 204 |
Change in fair value of investments in equity instruments | | (1) | | 4 | | (20) |
Tax effect | | (43) | | (8) | | (53) |
Currency translation adjustment generated by the parent company | | (57) | | 1,466 | | (5,387) |
Items not potentially reclassifiable to profit and loss | | 34 | | 1,465 | | (5,256) |
Currency translation adjustment | | (49) | | (1,250) | | 2,523 |
Cash flow hedge | | 689 | | 1,202 | | 3,222 |
Variation of foreign currency basis spread | | 11 | | (3) | | 21 |
share of other comprehensive income of equity affiliates, net amount | | 3 | | (98) | | 2,548 |
Other | | (4) | | 3 | | (1) |
Tax effect | | (136) | | (336) | | (1,112) |
Items potentially reclassifiable to profit and loss | | 514 | | (482) | | 7,201 |
Total other comprehensive income (net amount) | | 548 | | 983 | | 1,945 |
| | | | | | |
Comprehensive income | | 4,700 | | 6,614 | | 7,749 |
TotalEnergies share | | 4,676 | | 6,550 | | 7,705 |
Non-controlling interests | | 24 | | 64 | | 44 |
34
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$)(a) | | 2023 | | 2022 |
| | | | |
Sales | | 118,874 | | 143,380 |
Excise taxes | | (9,107) | | (8,985) |
Revenues from sales | | 109,767 | | 134,395 |
| | | | |
Purchases, net of inventory variation | | (72,215) | | (85,091) |
Other operating expenses | | (15,691) | | (15,664) |
Exploration costs | | (154) | | (978) |
Depreciation, depletion and impairment of tangible assets and mineral interests | | (6,168) | | (6,781) |
Other income | | 457 | | 572 |
Other expense | | (666) | | (3,595) |
| | | | |
Financial interest on debt | | (1,434) | | (1,034) |
Financial income and expense from cash & cash equivalents | | 903 | | 459 |
Cost of net debt | | (531) | | (575) |
| | | | |
Other financial income | | 671 | | 434 |
Other financial expense | | (356) | | (271) |
| | | | |
Net income (loss) from equity affiliates | | 1,227 | | (1,503) |
| | | | |
Income taxes | | (6,558) | | (10,088) |
Consolidated net income | | 9,783 | | 10,855 |
TotalEnergies share | | 9,645 | | 10,636 |
Non-controlling interests | | 138 | | 219 |
Earnings per share ($) | | 3.88 | | 4.04 |
Fully-diluted earnings per share ($) | | 3.86 | | 4.02 |
(a) Except for per share amounts.
35
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$) | | 2023 | | 2022 |
| | | | |
Consolidated net income | | 9,783 | | 10,855 |
| | | | |
Other comprehensive income | | | | |
| | | | |
Actuarial gains and losses | | 138 | | 204 |
Change in fair value of investments in equity instruments | | 3 | | (17) |
Tax effect | | (51) | | (42) |
Currency translation adjustment generated by the parent company | | 1,409 | | (7,137) |
Items not potentially reclassifiable to profit and loss | | 1,499 | | (6,992) |
Currency translation adjustment | | (1,299) | | 3,535 |
Cash flow hedge | | 1,891 | | 2,959 |
Variation of foreign currency basis spread | | 8 | | 70 |
share of other comprehensive income of equity affiliates, net amount | | (95) | | 2,464 |
Other | | (1) | | (1) |
Tax effect | | (472) | | (1,059) |
Items potentially reclassifiable to profit and loss | | 32 | | 7,968 |
Total other comprehensive income (net amount) | | 1,531 | | 976 |
| | | | |
Comprehensive income | | 11,314 | | 11,831 |
TotalEnergies share | | 11,226 | | 11,658 |
Non-controlling interests | | 88 | | 173 |
36
CONSOLIDATED BALANCE SHEET
TotalEnergies
| | | | | | | | |
|
| June 30, |
| March 31, |
| December 31, |
| June 30, |
| | 2023 | | 2023 | | 2022 | | 2022 |
(M$) | | (unaudited) | | (unaudited) | | | | (unaudited) |
| | | | | | | | |
ASSETS | |
| |
| |
| |
|
| | | | | | | | |
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets, net |
| 31,717 |
| 33,234 |
| 31,931 |
| 37,020 |
Property, plant and equipment, net |
| 104,174 |
| 107,499 |
| 107,101 |
| 101,454 |
Equity affiliates : investments and loans |
| 30,425 |
| 29,997 |
| 27,889 |
| 28,210 |
Other investments |
| 1,190 |
| 1,209 |
| 1,051 |
| 1,383 |
Non-current financial assets |
| 2,494 |
| 2,357 |
| 2,731 |
| 1,612 |
Deferred income taxes |
| 3,649 |
| 4,772 |
| 5,049 |
| 4,737 |
Other non-current assets |
| 2,573 |
| 2,709 |
| 2,388 |
| 3,075 |
Total non-current assets |
| 176,222 |
| 181,777 |
| 178,140 |
| 177,491 |
| | | | | | | | |
Current assets |
| |
|
|
|
|
| |
Inventories, net |
| 18,785 |
| 22,786 |
| 22,936 |
| 28,542 |
Accounts receivable, net |
| 22,163 |
| 24,128 |
| 24,378 |
| 30,796 |
Other current assets |
| 23,111 |
| 28,153 |
| 36,070 |
| 55,553 |
Current financial assets |
| 6,725 |
| 7,535 |
| 8,746 |
| 7,863 |
Cash and cash equivalents |
| 25,572 |
| 27,985 |
| 33,026 |
| 32,848 |
Assets classified as held for sale |
| 8,441 |
| 668 |
| 568 |
| 313 |
Total current assets |
| 104,797 |
| 111,255 |
| 125,724 |
| 155,915 |
Total assets |
| 281,019 |
| 293,032 |
| 303,864 |
| 333,406 |
| | | | | | | | |
LIABILITIES & SHAREHOLDERS' EQUITY |
| |
|
|
|
|
| |
| | | | | | | | |
Shareholders’ equity |
| |
|
|
|
|
| |
Common shares |
| 7,850 |
| 7,828 |
| 8,163 |
| 8,163 |
Paid-in surplus and retained earnings |
| 123,511 |
| 123,357 |
| 123,951 |
| 125,554 |
Currency translation adjustment |
| (12,859) |
| (12,784) |
| (12,836) |
| (14,019) |
Treasury shares |
| (4,820) |
| (2,820) |
| (7,554) |
| (3,010) |
Total shareholders’ equity - TotalEnergies share |
| 113,682 |
| 115,581 |
| 111,724 |
| 116,688 |
Non-controlling interests |
| 2,770 |
| 2,863 |
| 2,846 |
| 3,309 |
Total shareholders’ equity |
| 116,452 |
| 118,444 |
| 114,570 |
| 119,997 |
| | | | | | | | |
Non-current liabilities |
| |
|
|
|
|
| |
Deferred income taxes |
| 11,237 |
| 11,300 |
| 11,021 |
| 12,169 |
Employee benefits |
| 1,872 |
| 1,840 |
| 1,829 |
| 2,341 |
Provisions and other non-current liabilities |
| 21,295 |
| 21,270 |
| 21,402 |
| 23,373 |
Non-current financial debt |
| 40,427 |
| 42,915 |
| 45,264 |
| 46,868 |
Total non-current liabilities |
| 74,831 |
| 77,325 |
| 79,516 |
| 84,751 |
| | | | | | | | |
Current liabilities |
| |
| |
| |
| |
Accounts payable |
| 32,853 |
| 36,037 |
| 41,346 |
| 49,700 |
Other creditors and accrued liabilities |
| 38,609 |
| 42,578 |
| 52,275 |
| 62,498 |
Current borrowings |
| 15,542 |
| 17,884 |
| 15,502 |
| 16,003 |
Other current financial liabilities |
| 443 |
| 597 |
| 488 |
| 401 |
Liabilities directly associated with the assets classified as held for sale |
| 2,289 |
| 167 |
| 167 |
| 56 |
Total current liabilities |
| 89,736 |
| 97,263 |
| 109,778 |
| 128,658 |
Total liabilities & shareholders’ equity |
| 281,019 |
| 293,032 |
| 303,864 |
| 333,406 |
37
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| | | | | | |
|
| 2nd quarter |
| 1st quarter |
| 2nd quarter |
(M$) | | 2023 | | 2023 | | 2022 |
| | | | | | |
CASH FLOW FROM OPERATING ACTIVITIES | |
| |
| |
|
| | | | | | |
Consolidated net income | | 4,152 | | 5,631 | | 5,804 |
Depreciation, depletion, amortization and impairment | | 3,195 | | 3,187 | | 3,321 |
Non-current liabilities, valuation allowances and deferred taxes | | 81 | | 314 | | 1,427 |
(Gains) losses on disposals of assets | | (70) | | (252) | | (165) |
Undistributed affiliates’ equity earnings | | 383 | | (349) | | 2,999 |
(Increase) decrease in working capital | | 2,125 | | (3,419) | | 2,498 |
Other changes, net | | 34 | | 21 | | 400 |
Cash flow from operating activities | | 9,900 | | 5,133 | | 16,284 |
| | | | | | |
CASH FLOW USED IN INVESTING ACTIVITIES | | | |
| | |
| | | | | | |
Intangible assets and property, plant and equipment additions | | (3,870) | | (4,968) | | (5,150) |
Acquisitions of subsidiaries, net of cash acquired | | (19) | | (136) | | (82) |
Investments in equity affiliates and other securities | | (522) | | (1,407) | | (136) |
Increase in non-current loans | | (366) | | (389) | | (278) |
Total expenditures | | (4,777) | | (6,900) | | (5,646) |
Proceeds from disposals of intangible assets and property, plant and equipment | | 31 | | 68 | | 153 |
Proceeds from disposals of subsidiaries, net of cash sold | | 38 | | 183 | | 63 |
Proceeds from disposals of non-current investments | | 133 | | 49 | | 35 |
Repayment of non-current loans | | 102 | | 238 | | 413 |
Total divestments | | 304 | | 538 | | 664 |
Cash flow used in investing activities | | (4,473) | | (6,362) | | (4,982) |
| | | | | | |
CASH FLOW USED IN FINANCING ACTIVITIES | | | |
| | |
| | | | | | |
Issuance (repayment) of shares: | | | |
| | |
- Parent company shareholders | | 383 | | - | | 371 |
- Treasury shares | | (2,002) | | (2,103) | | (1,988) |
Dividends paid: | | | | | | |
- Parent company shareholders | | (1,842) | | (1,844) | | (1,825) |
- Non-controlling interests | | (105) | | (21) | | (97) |
Net issuance (repayment) of perpetual subordinated notes | | (1,081) | | - | | (1,958) |
Payments on perpetual subordinated notes | | (80) | | (158) | | (138) |
Other transactions with non-controlling interests | | (13) | | (86) | | (10) |
Net issuance (repayment) of non-current debt | | (14) | | 118 | | 508 |
Increase (decrease) in current borrowings | | (4,111) | | (1,274) | | (2,703) |
Increase (decrease) in current financial assets and liabilities | | 990 | | 1,394 | | (731) |
Cash flow from (used in) financing activities | | (7,875) | | (3,974) | | (8,571) |
Net increase (decrease) in cash and cash equivalents | | (2,448) | | (5,203) | | 2,731 |
Effect of exchange rates | | 35 | | 162 | | (1,159) |
Cash and cash equivalents at the beginning of the period | | 27,985 | | 33,026 | | 31,276 |
Cash and cash equivalents at the end of the period | | 25,572 | | 27,985 | | 32,848 |
38
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| | | | |
|
| 1st half |
| 1st half |
(M$) | | 2023 | | 2022 |
| | | | |
CASH FLOW FROM OPERATING ACTIVITIES | |
| |
|
| | | | |
Consolidated net income | | 9,783 | | 10,855 |
Depreciation, depletion, amortization and impairment | | 6,382 | | 7,899 |
Non-current liabilities, valuation allowances and deferred taxes | | 395 | | 3,965 |
(Gains) losses on disposals of assets | | (322) | | (178) |
Undistributed affiliates’ equity earnings | | 34 | | 3,261 |
(Increase) decrease in working capital | | (1,294) | | (2,425) |
Other changes, net | | 55 | | 524 |
Cash flow from operating activities | | 15,033 | | 23,901 |
| | | | |
CASH FLOW USED IN INVESTING ACTIVITIES | |
| |
|
| | | | |
Intangible assets and property, plant and equipment additions | | (8,838) | | (8,607) |
Acquisitions of subsidiaries, net of cash acquired | | (155) | | (82) |
Investments in equity affiliates and other securities | | (1,929) | | (225) |
Increase in non-current loans | | (755) | | (519) |
Total expenditures | | (11,677) | | (9,433) |
Proceeds from disposals of intangible assets and property, plant and equipment | | 99 | | 330 |
Proceeds from disposals of subsidiaries, net of cash sold | | 221 | | 151 |
Proceeds from disposals of non-current investments | | 182 | | 250 |
Repayment of non-current loans | | 340 | | 1,342 |
Total divestments | | 842 | | 2,073 |
Cash flow used in investing activities | | (10,835) | | (7,360) |
| | | | |
CASH FLOW USED IN FINANCING ACTIVITIES | |
| |
|
| | | | |
Issuance (repayment) of shares: | |
| |
|
- Parent company shareholders | | 383 | | 371 |
- Treasury shares | | (4,105) | | (3,164) |
Dividends paid: | | | | |
- Parent company shareholders | | (3,686) | | (3,753) |
- Non-controlling interests | | (126) | | (119) |
Net issuance (repayment) of perpetual subordinated notes | | (1,081) | | - |
Payments on perpetual subordinated notes | | (238) | | (274) |
Other transactions with non-controlling interests | | (99) | | (5) |
Net issuance (repayment) of non-current debt | | 104 | | 542 |
Increase (decrease) in current borrowings | | (5,385) | | (2,046) |
Increase (decrease) in current financial assets and liabilities | | 2,384 | | 4,863 |
Cash flow from (used in) financing activities | | (11,849) | | (3,585) |
Net increase (decrease) in cash and cash equivalents | | (7,651) | | 12,956 |
Effect of exchange rates | | 197 | | (1,450) |
Cash and cash equivalents at the beginning of the period | | 33,026 | | 21,342 |
Cash and cash equivalents at the end of the period | | 25,572 | | 32,848 |
39
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, 2022 | | 2,640,429,329 |
| 8,224 | | 117,849 | | (12,671) | | (33,841,104) |
| (1,666) | | 111,736 | | 3,263 | | 114,999 |
Net income of the first half 2022 | | - |
| - | | 10,636 | | - | | - |
| - | | 10,636 | | 219 | | 10,855 |
Other comprehensive income | | - |
| - | | 2,370 | | (1,348) | | - |
| - | | 1,022 | | (46) | | 976 |
Comprehensive Income | | - |
| - | | 13,006 | | (1,348) | | - |
| - | | 11,658 | | 173 | | 11,831 |
Dividend | | - |
| - | | (3,803) | | - | | - |
| - | | (3,803) | | (119) | | (3,922) |
Issuance of common shares | | 9,367,482 |
| 26 | | 345 | | - | | - |
| - | | 371 | | - | | 371 |
Purchase of treasury shares | | - |
| - | | - | | - | | (58,458,536) |
| (3,164) | | (3,164) | | - | | (3,164) |
Sale of treasury shares(a) | | - |
| - | | (315) | | - | | 6,168,197 |
| 315 | | - | | - | | - |
Share-based payments | | - |
| - | | 157 | | - | | - |
| - | | 157 | | - | | 157 |
Share cancellation | | (30,665,526) |
| (87) | | (1,418) | | - | | 30,665,526 |
| 1,505 | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | (44) | | - | | - |
| - | | (44) | | - | | (44) |
Payments on perpetual subordinated notes | | - |
| - | | (183) | | - | | - |
| - | | (183) | | - | | (183) |
Other operations with non-controlling interests | | - |
| - | | 4 | | — | | - |
| - | | 4 | | (9) | | (5) |
Other items | | - |
| - | | (44) | | — | | - |
| - | | (44) | | 1 | | (43) |
As of June 30, 2022 | | 2,619,131,285 |
| 8,163 | | 125,554 | | (14,019) | | (55,465,917) |
| (3,010) | | 116,688 | | 3,309 | | 119,997 |
Net income of the second half 2022 | | - |
| - | | 9,890 | | - | | - |
| - | | 9,890 | | 299 | | 10,189 |
Other comprehensive income | | - |
| - | | (5,303) | | 1,174 | | - |
| - | | (4,129) | | 44 | | (4,085) |
Comprehensive Income | | - |
| - | | 4,587 | | 1,174 | | - |
| - | | 5,761 | | 343 | | 6,104 |
Dividend | | - |
| - | | (6,186) | | - | | - |
| - | | (6,186) | | (417) | | (6,603) |
Issuance of common shares | | - |
| - | | (1) | | - | | - |
| - | | (1) | | - | | (1) |
Purchase of treasury shares | | - |
| - | | - | | - | | (81,749,207) |
| (4,547) | | (4,547) | | - | | (4,547) |
Sale of treasury shares(a) | | - |
| - | | (3) | | - | | 27,457 |
| 3 | | - | | - | | - |
Share-based payments | | - |
| - | | 72 | | - | | - |
| - | | 72 | | - | | 72 |
Share cancellation | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | - | | - | | - |
| - | | - | | - | | - |
Payments on perpetual subordinated notes | | - |
| - | | (148) | | - | | - |
| - | | (148) | | - | | (148) |
Other operations with non-controlling interests | | - |
| - | | 41 | | 9 | | - |
| - | | 50 | | 46 | | 96 |
Other items | | - |
| - | | 35 | | - | | - |
| - | | 35 | | (435) | | (400) |
As of December 31, 2022 | | 2,619,131,285 |
| 8,163 | | 123,951 | | (12,836) | | (137,187,667) |
| (7,554) | | 111,724 | | 2,846 | | 114,570 |
Net income of the first half 2023 | | - |
| - | | 9,645 | | - | | - |
| - | | 9,645 | | 138 | | 9,783 |
Other comprehensive income | | - |
| - | | 1,576 | | 5 | | - |
| - | | 1,581 | | (50) | | 1,531 |
Comprehensive Income | | - |
| - | | 11,221 | | 5 | | - |
| - | | 11,226 | | 88 | | 11,314 |
Dividend | | - |
| - | | (3,868) | | - | | - |
| - | | (3,868) | | (126) | | (3,994) |
Issuance of common shares | | 8,002,155 |
| 22 | | 361 | | - | | - |
| - | | 383 | | - | | 383 |
Purchase of treasury shares | | - |
| - | | - | | - | | (66,647,852) |
| (4,705) | | (4,705) | | - | | (4,705) |
Sale of treasury shares(a) | | - |
| - | | (396) | | - | | 6,461,256 |
| 396 | | - | | - | | - |
Share-based payments | | - |
| - | | 172 | | - | | - |
| - | | 172 | | - | | 172 |
Share cancellation | | (128,869,261) |
| (335) | | (6,708) | | - | | 128,869,261 |
| 7,043 | | - | | - | | - |
Net issuance (repayment) of perpetual subordinated notes | | - |
| - | | (1,107) | | - | | - |
| - | | (1,107) | | - | | (1,107) |
Payments on perpetual subordinated notes | | - |
| - | | (151) | | - | | - |
| - | | (151) | | - | | (151) |
Other operations with non-controlling interests | | - |
| - | | 39 | | (28) | | - |
| - | | 11 | | (38) | | (27) |
Other items | | - |
| - | | (3) | | - | | - |
| - | | (3) | | - | | (3) |
As of June 30, 2023 | | 2,498,264,179 |
| 7,850 | | 123,511 | | (12,859) | | (68,505,002) |
| (4,820) | | 113,682 | | 2,770 | | 116,452 |
(a)Treasury shares related to the performance share grants.
40
TotalEnergies
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST SIX MONTHS 2023
(unaudited)
1) Basis of preparation of the consolidated financial statements
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, 2023, 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, 2023, are consistent with those used for the financial statements at December 31, 2022.
The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2023 requires the General 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 General 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, 2022.
The consolidated financial statements as of December 31, 2022 were impacted by the Russian-Ukrainian conflict. The Russian assets were fully depreciated, except for those relating to Yamal LNG. As of June 30, 2023, in the absence of any new event, assessments and judgments taken into account in the valuation of assets remain in place.
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 General 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.
2) Changes in the Company structure
2.1) Main acquisitions and divestments
Ø | Exploration & Production |
● | In March 2023, TotalEnergies has signed an agreement with CEPSA to acquire CEPSA’s upstream assets in the United Arab Emirates with an effective date of January 1, 2023. The assets to be acquired are: |
o | a 20% participating interest in the Satah Al Razboot (SARB), Umm Lulu, Bin Nasher and Al Bateel (SARB and Umm Lulu) offshore concession. |
The SARB and Umm Lulu concession includes two major offshore fields. ADNOC holds a 60% interest in this concession, alongside OMV (20%). The concession is operated by ADNOC Offshore.
41
o | a 12.88% indirect interest in the Mubarraz concession held by Abu Dhabi Oil Company Ltd (ADOC), through the acquisition of 20% of Cosmo Abu Dhabi Energy Exploration & Production Co. Ltd (CEPAD), a company holding a 64.4% interest in ADOC. |
The Mubarraz concession is comprised of four producing offshore fields.
The SARB and Umm Lulu transaction was completed on March 15, 2023. The Mubarraz transaction was not completed following Cosmo’s decision to exercise its right of first refusal on the proposed transaction on April 21, 2023 in accordance with the terms of the agreements.
Ø | Integrated LNG |
● | On June 12, 2022, following the request for proposals in relation to partner selection for the North Field East (NFE) liquified natural gas project, TotalEnergies has been awarded, a 25% interest in a new joint venture (JV), alongside the national company QatarEnergy (75)%. The new JV will hold a 25% interest in the 32 million tons per annum (Mtpa) NFE project, equivalent to one 8 Mtpa LNG train. The acquisition of the interest in this project was finalized in January 2023. |
Ø | Integrated Power |
● | On October 26, 2022, TotalEnergies and Casa dos Ventos (CDV), Brazil's leading renewable energy developer, announced the creation of a 34%(TTE)/66%(CDV) joint venture to jointly develop, build and operate the renewable portfolio of Casa Dos Ventos. This portfolio includes 700 MW of onshore wind capacity in operation, 1 GW of onshore wind under construction, 2.8 GW of onshore wind and 1.6 GW of solar projects under well advanced development (COD1 within 5 years). Besides, the newly formed JV will have the right to acquire the current and new projects that are or will be developed by CDV as they reach execution stage. The transaction amounts to a payment of $0.5 billion and an earn-out of up to $30 million for the acquisition of a 34% stake in the JV. In addition, TotalEnergies will have the option to acquire an additional 15% equity share in 2027. The transaction was completed in January 2023. |
2.2) Major business combinations
Ø | Exploration & Production |
● | Acquisition of participating interest in SARB and Umm Lulu offshore concession |
In accordance with IFRS 3 “Business combinations”, TotalEnergies is assessing the fair value of identifiable acquired assets, liabilities and contingent liabilities on the basis of available information. A preliminary purchase price allocation has been done in the second quarter following the acquisition, this assessment will be finalized within 12 months following the acquisition date.
2.3) Divestment projects
Ø | Exploration & Production |
On April 27, 2023, TotalEnergies announced the signature of an agreement with Suncor Energy Inc. for the sale of the entirety of the shares of TotalEnergies EP Canada Ltd for a consideration including a 5.5 billion Canadian dollar cash payment at closing (about US$4.1 billion) and additional payments that could reach a maximum of 600 million Canadian dollar (about US$450 million) under specific conditions. The transaction was subject to the waiver of TotalEnergies EP Canada Ltd’s partners pre-emption rights and customary closing conditions, notably the required approval from public authorities.
1 Commercial Operation Date
42
On May 26, 2023 ConocoPhillips has notified TotalEnergies that it is exercising its preemption right to purchase the 50% interest in the Surmont asset held by TotalEnergies EP Canada Ltd. TotalEnergies will receive from ConocoPhillips a cash payment upon closing of 4.0 billion Canadian dollar (about US$3 billion) and additional payments that could reach a maximum of 440 million Canadian dollar (about US$325 million) under specific conditions for its 50% non-operated interest in the Surmont asset and associated logistics commitments. Closing is expected in the second half year of 2023.
Following the exercise by ConocoPhillips of its preemption right, TotalEnergies and Suncor are continuing discussions regarding the sale of TotalEnergies EP Canada Ltd shares, including the Fort Hills working interest and the associated logistics.
As of June 30, 2023, the assets and liabilities have been respectively classified in the consolidated balance sheet as “assets classified as held for sale” for an amount of $5,435 million and “liabilities classified as held for sale” for an amount of $893 million. These assets mainly include tangible assets.
Ø | Marketing & Services |
On March 16, 2023, TotalEnergies and Alimentation Couche-Tard have signed agreements covering TotalEnergies' retail networks in four European countries. As part of this agreement, TotalEnergies will join forces with Couche-Tard in Belgium and Luxembourg and transfer its networks in Germany and the Netherlands.
This planned transaction, which is based on an enterprise value of 3.1 billion euros, is subject to the usual conditions for completion, including the consultation processes of employee representatives and securing of the mandatory authorizations from competition authorities.
As of June 30, 2023, the assets and liabilities have been respectively classified in the consolidated balance sheet as “assets classified as held for sale” for an amount of $1,901 million and “liabilities classified as held for sale” for an amount of $1,227 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 profitable growth in the LNG and power integrated value chains are two of the key axes of TotalEnergies’s strategy.
In order to give more visibility to these businesses, the Board of Directors has decided that from the first quarter 2023, Integrated LNG and Integrated Power results, previously grouped in the Integrated Gas, Renewables & Power (iGRP) segment, would be reported separately as two segments.
A new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2023. It is based on the following five business segments:
- | An Exploration-Production segment; |
- | An Integrated LNG segment covering LNG production and trading activities as well as biogas, hydrogen and gas trading activities; |
- | An Integrated Power segment covering generation, storage, electricity trading and B2B-B2C distribution of gas and electricity; |
43
- | 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.
This new segment reporting has been prepared in accordance with IFRS 8 and according to the same principles as the internal reporting followed by the TotalEnergies's Executive Committee.
For the Integrated LNG and Integrated Power segments, the principles for the preparation of this segment information are as follows:
- | The management of balance sheet positions (including margin calls) related to to centralized markets access for LNG, gas and power activities since 2022 has been fully included in the Integrated LNG segment. |
- | Effects of changes in the fair value of gas and LNG positions are allocated to the operating income of Integrated LNG segment. |
- | Effects of changes in the fair value of power positions are allocated to the operating income of Integrated Power segment. |
Due to the change in the Company's internal organizational structure affecting the composition of the business segments, the segment reporting data for the years 2021 and 2022 has been restated.
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.
44
(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, whose 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.
45
3.1) Information by business segment
| | | | | | | | | | | | | | | | |
1sthalf 2023 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 3,388 | | 6,892 |
| 14,804 |
| 49,704 |
| 44,071 |
| 15 |
| - |
| 118,874 |
Intersegment sales |
| 20,836 | | 8,777 |
| 2,355 |
| 17,691 |
| 321 |
| 121 |
| (50,101) |
| - |
Excise taxes |
| - | | - |
| - |
| (415) |
| (8,692) |
| - |
| - |
| (9,107) |
Revenues from sales |
| 24,224 | | 15,669 |
| 17,159 |
| 66,980 |
| 35,700 |
| 136 |
| (50,101) |
| 109,767 |
Operating expenses |
| (9,924) | | (13,242) |
| (16,165) |
| (63,934) |
| (34,459) |
| (437) |
| 50,101 |
| (88,060) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,183) | | (565) |
| (98) |
| (808) |
| (465) |
| (49) |
| - |
| (6,168) |
Operating income |
| 10,117 | | 1,862 |
| 896 |
| 2,238 |
| 776 |
| (350) |
| - |
| 15,539 |
Net income (loss) from equity affiliates and other items |
| 53 | | 1,276 |
| (320) |
| 55 |
| 307 |
| (38) |
| - |
| 1,333 |
Tax on net operating income |
| (5,287) | | (342) |
| (152) |
| (512) |
| (281) |
| 23 |
| - |
| (6,551) |
Net operating income |
| 4,883 | | 2,796 |
| 424 |
| 1,781 |
| 802 |
| (365) |
| - |
| 10,321 |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| (538) |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (138) |
Net income - TotalEnergies share |
| | | |
| |
| |
| |
| |
| |
| 9,645 |
| | | | | | | | | | | | | | | | |
1sthalf 2023 (adjustments)(a) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Intersegment sales |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Operating expenses |
| (33) | | (700) |
| 67 |
| (640) |
| (177) |
| (57) |
| - |
| (1,540) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (147) | | - |
| - |
| (36) |
| - |
| - |
| - |
| (183) |
Operating income (b) |
| (180) | | (700) |
| 67 |
| (676) |
| (177) |
| (57) |
| - |
| (1,723) |
Net income (loss) from equity affiliates and other items |
| (179) | | 12 |
| (457) |
| (96) |
| 217 |
| 2 |
| - |
| (501) |
Tax on net operating income |
| 240 | | 82 |
| (6) |
| (69) |
| 33 |
| 15 |
| - |
| 295 |
Net operating income (b) |
| (119) | | (606) |
| (396) |
| (841) |
| 73 |
| (40) |
| - |
| (1,929) |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| 80 |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (3) |
Net income - TotalEnergies share |
| | | |
| |
| |
| |
| |
| |
| (1,852) |
| | | | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | | | | | | | | | | | | | | | | |
(b) Of which inventory valuation effect | | | | | | | | | | | | | | | | |
- On operating income | | | | - | | - | | (607) | | (147) | | - | | - | | - |
- On net operating income | | | | - | | - | | (659) | | (109) | | - | | - | | - |
| | | | | | | | | | | | | | | | |
1sthalf 2023 (adjusted) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 3,388 | | 6,892 |
| 14,804 |
| 49,704 |
| 44,071 |
| 15 |
| - |
| 118,874 |
Intersegment sales |
| 20,836 | | 8,777 |
| 2,355 |
| 17,691 |
| 321 |
| 121 |
| (50,101) |
| - |
Excise taxes |
| - | | - |
| - |
| (415) |
| (8,692) |
| - |
| - |
| (9,107) |
Revenues from sales |
| 24,224 | | 15,669 |
| 17,159 |
| 66,980 |
| 35,700 |
| 136 |
| (50,101) |
| 109,767 |
Operating expenses |
| (9,891) | | (12,542) |
| (16,232) |
| (63,294) |
| (34,282) |
| (380) |
| 50,101 |
| (86,520) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,036) | | (565) |
| (98) |
| (772) |
| (465) |
| (49) |
| - |
| (5,985) |
Adjusted operating income |
| 10,297 | | 2,562 |
| 829 |
| 2,914 |
| 953 |
| (293) |
| - |
| 17,262 |
Net income (loss) from equity affiliates and other items |
| 232 | | 1,264 |
| 137 |
| 151 |
| 90 |
| (40) |
| - |
| 1,834 |
Tax on net operating income |
| (5,527) | | (424) |
| (146) |
| (443) |
| (314) |
| 8 |
| - |
| (6,846) |
Adjusted net operating income |
| 5,002 | | 3,402 |
| 820 |
| 2,622 |
| 729 |
| (325) |
| - |
| 12,250 |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| (618) |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (135) |
Adjusted net income - TotalEnergies share |
| | | |
| |
| |
| |
| |
| |
| 11,497 |
| | | | | | | | | | | | | | | | |
1sthalf 2023 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 6,621 | | 1,821 |
| 2,041 |
| 714 |
| 415 |
| 65 |
| - |
| 11,677 |
Total divestments |
| 57 | | 94 |
| 298 |
| 60 |
| 329 |
| 4 |
| - |
| 842 |
Cash flow from operating activities |
| 8,583 | | 4,868 |
| 999 |
| 1,072 |
| (8) |
| (481) |
| - |
| 15,033 |
46
| | | | | | | | | | | | | | | | |
1sthalf 2022 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 4,672 | | 9,408 |
| 13,167 |
| 66,069 |
| 50,056 |
| 8 |
| - |
| 143,380 |
Intersegment sales |
| 27,623 | | 7,438 |
| 1,009 |
| 22,062 |
| 983 |
| 133 |
| (59,248) |
| - |
Excise taxes |
| - | | - |
| - |
| (378) |
| (8,607) |
| - |
| - |
| (8,985) |
Revenues from sales |
| 32,295 | | 16,846 |
| 14,176 |
| 87,753 |
| 42,432 |
| 141 |
| (59,248) |
| 134,395 |
Operating expenses |
| (11,468) | | (13,030) |
| (14,686) |
| (80,653) |
| (40,294) |
| (850) |
| 59,248 |
| (101,733) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,773) | | (554) |
| (94) |
| (769) |
| (514) |
| (77) |
| - |
| (6,781) |
Operating income |
| 16,054 | | 3,262 |
| (604) |
| 6,331 |
| 1,624 |
| (786) |
| - |
| 25,881 |
Net income (loss) from equity affiliates and other items |
| (3,426) | | (1,869) |
| 192 |
| 505 |
| 56 |
| 179 |
| - |
| (4,363) |
Tax on net operating income |
| (7,739) | | (553) |
| (1) |
| (1,391) |
| (521) |
| 97 |
| - |
| (10,108) |
Net operating income |
| 4,889 | | 840 |
| (413) |
| 5,445 |
| 1,159 |
| (510) |
| - |
| 11,410 |
Net cost of net debt |
| | | | | | | | | | | | | |
| (555) |
Non-controlling interests |
| | | | | | | | | | | | | |
| (219) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 10,636 |
| | | | | | | | | | | | | | | | |
1sthalf 2022 (adjustments)(a) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - | | (18) |
| 15 |
| - |
| - |
| - |
| - |
| (3) |
Intersegment sales |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - | | - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - | | (18) |
| 15 |
| - |
| - |
| - |
| - |
| (3) |
Operating expenses |
| (873) | | 45 |
| (768) |
| 1,722 |
| 641 |
| (433) |
| - |
| 334 |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (539) | | (14) |
| - |
| - |
| (33) |
| (9) |
| - |
| (595) |
Operating income (b) |
| (1,412) | | 13 |
| (753) |
| 1,722 |
| 608 |
| (442) |
| - |
| (264) |
Net income (loss) from equity affiliates and other items |
| (3,770) | | (4,508) |
| 11 |
| 169 |
| (7) |
| 106 |
| - |
| (7,999) |
Tax on net operating income |
| 337 | | (13) |
| 71 |
| (326) |
| (180) |
| 98 |
| - |
| (13) |
Net operating income (b) |
| (4,845) | | (4,508) |
| (671) |
| 1,565 |
| 421 |
| (238) |
| - |
| (8,276) |
Net cost of net debt |
| | | | | | | | | | | | | |
| 193 |
Non-controlling interests |
| | | | | | | | | | | | | |
| (54) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| (8,137) |
| | | | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | | | | | | | | | | | | | | | | |
(b) Of which inventory valuation effect |
| | | | | | | | | | | | | | | |
- On operating income |
| | | - | | - | | 1,722 | | 684 | | - | | | | |
- On net operating income |
| | | - | | - | | 1,597 | | 503 | | - | | | | |
| | | | | | | | | | | | | | | | |
1sthalf 2022 (adjusted) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 4,672 | | 9,426 |
| 13,152 |
| 66,069 |
| 50,056 |
| 8 |
| - |
| 143,383 |
Intersegment sales |
| 27,623 | | 7,438 |
| 1,009 |
| 22,062 |
| 983 |
| 133 |
| (59,248) |
| - |
Excise taxes |
| - | | - |
| - |
| (378) |
| (8,607) |
| - |
| - |
| (8,985) |
Revenues from sales |
| 32,295 | | 16,864 |
| 14,161 |
| 87,753 |
| 42,432 |
| 141 |
| (59,248) |
| 134,398 |
Operating expenses |
| (10,595) | | (13,075) |
| (13,918) |
| (82,375) |
| (40,935) |
| (417) |
| 59,248 |
| (102,067) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (4,234) | | (540) |
| (94) |
| (769) |
| (481) |
| (68) |
| - |
| (6,186) |
Adjusted operating income |
| 17,466 | | 3,249 |
| 149 |
| 4,609 |
| 1,016 |
| (344) |
| - |
| 26,145 |
Net income (loss) from equity affiliates and other items |
| 344 | | 2,639 |
| 181 |
| 336 |
| 63 |
| 73 |
| - |
| 3,636 |
Tax on net operating income |
| (8,076) | | (540) |
| (72) |
| (1,065) |
| (341) |
| (1) |
| - |
| (10,095) |
Adjusted net operating income |
| 9,734 | | 5,348 |
| 258 |
| 3,880 |
| 738 |
| (272) |
| - |
| 19,686 |
Net cost of net debt |
| | | | | | | | | | | | | |
| (748) |
Non-controlling interests |
| | | | | | | | | | | | | |
| (165) |
Adjusted net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 18,773 |
| | | | | | | | | | | | | | | | |
1sthalf 2022 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 6,099 | | 575 |
| 1,736 |
| 561 |
| 428 |
| 34 |
| - |
| 9,433 |
Total divestments |
| 346 | | 1,237 |
| 244 |
| 83 |
| 151 |
| 12 |
| - |
| 2,073 |
Cash flow from operating activities |
| 14,536 | | 6,021 |
| (1,736) |
| 4,633 |
| 1,478 |
| (1,031) |
| - |
| 23,901 |
47
| | | | | | | | | | | | | | | | |
2nd quarter 2023 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 1,434 | | 2,020 |
| 6,249 |
| 24,849 |
| 21,712 |
| 7 |
| - |
| 56,271 |
Intersegment sales |
| 10,108 | | 2,778 |
| 670 |
| 8,630 |
| 201 |
| 64 |
| (22,451) |
| - |
Excise taxes |
| - | | - |
| - |
| (231) |
| (4,506) |
| - |
| - |
| (4,737) |
Revenues from sales |
| 11,542 | | 4,798 |
| 6,919 |
| 33,248 |
| 17,407 |
| 71 |
| (22,451) |
| 51,534 |
Operating expenses |
| (5,162) | | (3,797) |
| (6,334) |
| (32,042) |
| (16,672) |
| (276) |
| 22,451 |
| (41,832) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,117) | | (277) |
| (51) |
| (394) |
| (241) |
| (26) |
| - |
| (3,106) |
Operating income |
| 4,263 | | 724 |
| 534 |
| 812 |
| 494 |
| (231) |
| - |
| 6,596 |
Net income (loss) from equity affiliates and other items |
| (15) | | 472 |
| (250) |
| 3 |
| 64 |
| (17) |
| - |
| 257 |
Tax on net operating income |
| (1,889) | | (137) |
| (41) |
| (187) |
| (162) |
| (40) |
| - |
| (2,456) |
Net operating income |
| 2,359 | | 1,059 |
| 243 |
| 628 |
| 396 |
| (288) |
| - |
| 4,397 |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| (245) |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (64) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 4,088 |
| | | | | | | | | | | | | | | | |
2nd quarter 2023 (adjustments)(a) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - | | 76 |
| - | | - |
| - |
| - |
| - |
| 76 |
Intersegment sales |
| - | | - |
| - | | - |
| - |
| - |
| - |
| - |
Excise taxes |
| - | | - |
| - | | - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - | | 76 |
| - | | - |
| - |
| - |
| - |
| 76 |
Operating expenses |
| (25) | | (400) |
| 137 | | (216) |
| (76) |
| (57) |
| - |
| (637) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (147) | | - |
| - | | - |
| - |
| - |
| - |
| (147) |
Operating income (b) |
| (172) | | (324) |
| 137 | | (216) |
| (76) |
| (57) |
| - |
| (708) |
Net income (loss) from equity affiliates and other items |
| (106) | | 16 |
| (346) | | (59) |
| - |
| 2 |
| - |
| (493) |
Tax on net operating income |
| 288 | | 37 |
| 2 | | (101) |
| 23 |
| 15 |
| - |
| 264 |
Net operating income (b) |
| 10 | | (271) |
| (207) | | (376) |
| (53) |
| (40) |
| - |
| (937) |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| 72 |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (3) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| (868) |
| | | | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
| | |
|
|
|
|
|
|
|
|
|
| | | |
- On operating income |
| | | - |
| - |
| (192) |
| (60) |
| - |
| | | |
- On net operating income |
| | | - |
| - |
| (332) |
| (45) |
| - |
| | | |
| | | | | | | | | | | | | | | | |
2nd quarter 2023 (adjusted) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 1,434 | | 1,944 |
| 6,249 |
| 24,849 |
| 21,712 |
| 7 |
| - |
| 56,195 |
Intersegment sales |
| 10,108 | | 2,778 |
| 670 |
| 8,630 |
| 201 |
| 64 |
| (22,451) |
| - |
Excise taxes |
| - | | - |
| - |
| (231) |
| (4,506) |
| - |
| - |
| (4,737) |
Revenues from sales |
| 11,542 | | 4,722 |
| 6,919 |
| 33,248 |
| 17,407 |
| 71 |
| (22,451) |
| 51,458 |
Operating expenses |
| (5,137) | | (3,397) |
| (6,471) |
| (31,826) |
| (16,596) |
| (219) |
| 22,451 |
| (41,195) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (1,970) | | (277) |
| (51) |
| (394) |
| (241) |
| (26) |
| - |
| (2,959) |
Adjusted operating income |
| 4,435 | | 1,048 |
| 397 |
| 1,028 |
| 570 |
| (174) |
| - |
| 7,304 |
Net income (loss) from equity affiliates and other items |
| 91 | | 456 |
| 96 |
| 62 |
| 64 |
| (19) |
| - |
| 750 |
Tax on net operating income |
| (2,177) | | (174) |
| (43) |
| (86) |
| (185) |
| (55) |
| - |
| (2,720) |
Adjusted net operating income |
| 2,349 | | 1,330 |
| 450 |
| 1,004 |
| 449 |
| (248) |
| - |
| 5,334 |
Net cost of net debt |
| | | |
| |
| |
| |
| |
| |
| (317) |
Non-controlling interests |
| | | |
| |
| |
| |
| |
| |
| (61) |
Adjusted net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 4,956 |
| | | | | | | | | | | | | | | | |
2nd quarter 2023 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 2,569 | | 626 |
| 807 |
| 489 |
| 256 |
| 30 |
| - |
| 4,777 |
Total divestments |
| 26 | | 45 |
| 149 |
| 52 |
| 28 |
| 4 |
| - |
| 304 |
Cash flow from operating activities |
| 4,047 | | 1,332 |
| 2,284 |
| 1,923 |
| 665 |
| (351) |
| - |
| 9,900 |
48
| | | | | | | | | | | | | | | | |
2nd quarter 2022 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 2,521 | | 3,901 |
| 6,380 |
| 35,061 |
| 26,907 |
| 4 |
| - |
| 74,774 |
Intersegment sales |
| 13,805 | | 3,940 |
| 488 |
| 12,785 |
| 716 |
| 70 |
| (31,804) |
| - |
Excise taxes |
| - | | - |
| - |
| (186) |
| (4,143) |
| - |
| - |
| (4,329) |
Revenues from sales |
| 16,326 | | 7,841 |
| 6,868 |
| 47,660 |
| 23,480 |
| 74 |
| (31,804) |
| 70,445 |
Operating expenses |
| (5,760) | | (6,144) |
| (7,392) |
| (43,242) |
| (22,310) |
| (557) |
| 31,804 |
| (53,601) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,112) | | (276) |
| (51) |
| (389) |
| (241) |
| (33) |
| - |
| (3,102) |
Operating income |
| 8,454 | | 1,421 |
| (575) |
| 4,029 |
| 929 |
| (516) |
| - |
| 13,742 |
Net income (loss) from equity affiliates and other items |
| (3,668) | | 626 |
| 197 |
| 349 |
| 98 |
| 71 |
| - |
| (2,327) |
Tax on net operating income |
| (3,876) | | (292) |
| 32 |
| (866) |
| (296) |
| (8) |
| - |
| (5,306) |
Net operating income |
| 910 | | 1,755 |
| (346) |
| 3,512 |
| 731 |
| (453) |
| - |
| 6,109 |
Net cost of net debt |
| | | | | | | | | | | | | |
| (305) |
Non-controlling interests |
| | | | | | | | | | | | | |
| (112) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 5,692 |
| | | | | | | | | | | | | | | | |
2nd quarter 2022 (adjustments)(a) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| - | | (15) |
| - | | - |
| - |
| - |
| - |
| (15) |
Intersegment sales |
| - | | - |
| - | | - |
| - |
| - |
| - |
| - |
Excise taxes |
| - | | - |
| - | | - |
| - |
| - |
| - |
| - |
Revenues from sales |
| - | | (15) |
| - | | - |
| - |
| - |
| - |
| (15) |
Operating expenses |
| (82) | | 152 |
| (758) | | 775 |
| 373 |
| (301) |
| - |
| 159 |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (46) | | (14) |
| - | | - |
| (4) |
| - |
| - |
| (64) |
Operating income (b) |
| (128) | | 123 |
| (758) | | 775 |
| 369 |
| (301) |
| - |
| 80 |
Net income (loss) from equity affiliates and other items |
| (3,756) | | (560) |
| 2 | | 52 |
| (4) |
| - |
| - |
| (4,266) |
Tax on net operating income |
| 75 | | (23) |
| 70 | | (75) |
| (100) |
| 78 |
| - |
| 25 |
Net operating income (b) |
| (3,809) | | (460) |
| (686) | | 752 |
| 265 |
| (223) |
| - |
| (4,161) |
Net cost of net debt |
| | | | | | | | | | | | | |
| 80 |
Non-controlling interests |
| | | | | | | | | | | | | |
| (23) |
Net income - TotalEnergies share |
| | | | | | | | | | | | | |
| (4,104) |
| | | | | | | | | | | | | | | | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
| | |
|
|
|
|
|
|
|
|
|
| | | |
- On operating income |
| | | - |
| - |
| 775 |
| 376 |
| - |
| - | | - |
- On net operating income |
| | | - |
| - |
| 752 |
| 275 |
| - |
| - | | - |
| | | | | | | | | | | | | | | | |
2nd quarter 2022 (adjusted) | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| 2,521 | | 3,916 |
| 6,380 |
| 35,061 |
| 26,907 |
| 4 |
| - |
| 74,789 |
Intersegment sales |
| 13,805 | | 3,940 |
| 488 |
| 12,785 |
| 716 |
| 70 |
| (31,804) |
| - |
Excise taxes |
| - | | - |
| - |
| (186) |
| (4,143) |
| - |
| - |
| (4,329) |
Revenues from sales |
| 16,326 | | 7,856 |
| 6,868 |
| 47,660 |
| 23,480 |
| 74 |
| (31,804) |
| 70,460 |
Operating expenses |
| (5,678) | | (6,296) |
| (6,634) |
| (44,017) |
| (22,683) |
| (256) |
| 31,804 |
| (53,760) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,066) | | (262) |
| (51) |
| (389) |
| (237) |
| (33) |
| - |
| (3,038) |
Adjusted operating income |
| 8,582 | | 1,298 |
| 183 |
| 3,254 |
| 560 |
| (215) |
| - |
| 13,662 |
Net income (loss) from equity affiliates and other items |
| 88 | | 1,186 |
| 195 |
| 297 |
| 102 |
| 71 |
| - |
| 1,939 |
Tax on net operating income |
| (3,951) | | (269) |
| (38) |
| (791) |
| (196) |
| (86) |
| - |
| (5,331) |
Adjusted net operating income |
| 4,719 | | 2,215 |
| 340 |
| 2,760 |
| 466 |
| (230) |
| - |
| 10,270 |
Net cost of net debt |
| | | | | | | | | | | | | |
| (385) |
Non-controlling interests |
| | | | | | | | | | | | | |
| (89) |
Adjusted net income - TotalEnergies share |
| | | | | | | | | | | | | |
| 9,796 |
| | | | | | | | | | | | | | | | |
2nd quarter 2022 | | Exploration | | | | | | Refining | | Marketing | | | | | | |
| | & | | Integrated | | Integrated | | & | | & | | | | | | |
(M$) |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| 4,128 | | 285 |
| 587 |
| 333 |
| 288 |
| 25 |
| - |
| 5,646 |
Total divestments |
| 63 | | 393 |
| 73 |
| 56 |
| 72 |
| 7 |
| - |
| 664 |
Cash flow from operating activities |
| 8,768 | | 3,802 |
| 168 |
| 3,526 |
| 580 |
| (560) |
| - |
| 16,284 |
49
3.2) Reconciliation of the information by business segment with consolidated financial statements
| | | | | | |
| | | | | | Consolidated |
1sthalf 2023 | | | | | | statement of |
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | 118,874 | | - | | 118,874 |
Excise taxes |
| (9,107) |
| - |
| (9,107) |
Revenues from sales |
| 109,767 |
| - |
| 109,767 |
| | | | | | |
Purchases net of inventory variation |
| (70,858) |
| (1,357) |
| (72,215) |
Other operating expenses |
| (15,506) |
| (185) |
| (15,691) |
Exploration costs |
| (156) |
| 2 |
| (154) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (5,985) |
| (183) |
| (6,168) |
Other income |
| 193 |
| 264 |
| 457 |
Other expense |
| (393) |
| (273) |
| (666) |
| | | | | | |
Financial interest on debt |
| (1,434) |
| - |
| (1,434) |
Financial income and expense from cash & cash equivalents |
| 775 |
| 128 |
| 903 |
Cost of net debt |
| (659) |
| 128 |
| (531) |
| | | | | | |
Other financial income |
| 649 |
| 22 |
| 671 |
Other financial expense |
| (356) |
| - |
| (356) |
| | | | | | |
Net income (loss) from equity affiliates |
| 1,741 |
| (514) |
| 1,227 |
| | | | | | |
Income taxes |
| (6,805) |
| 247 |
| (6,558) |
Consolidated net income |
| 11,632 |
| (1,849) |
| 9,783 |
TotalEnergies share |
| 11,497 |
| (1,852) |
| 9,645 |
Non-controlling interests |
| 135 |
| 3 |
| 138 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| | | | | | |
| | | | | | Consolidated |
1sthalf 2022 | | | | | | statement of |
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | 143,383 | | (3) | | 143,380 |
Excise taxes |
| (8,985) |
| - |
| (8,985) |
Revenues from sales |
| 134,398 |
| (3) |
| 134,395 |
| | | | | | |
Purchases net of inventory variation |
| (86,785) |
| 1,694 |
| (85,091) |
Other operating expenses |
| (15,029) |
| (635) |
| (15,664) |
Exploration costs |
| (253) |
| (725) |
| (978) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (6,186) |
| (595) |
| (6,781) |
Other income |
| 550 |
| 22 |
| 572 |
Other expense |
| (798) |
| (2,797) |
| (3,595) |
| | | | | | |
Financial interest on debt |
| (1,034) |
| - |
| (1,034) |
Financial income and expense from cash & cash equivalents |
| 189 |
| 270 |
| 459 |
Cost of net debt |
| (845) |
| 270 |
| (575) |
| | | | | | |
Other financial income |
| 350 |
| 84 |
| 434 |
Other financial expense |
| (271) |
| - |
| (271) |
| | | | | | |
Net income (loss) from equity affiliates |
| 3,805 |
| (5,308) |
| (1,503) |
| | | | | | |
Income taxes |
| (9,998) |
| (90) |
| (10,088) |
Consolidated net income |
| 18,938 |
| (8,083) |
| 10,855 |
TotalEnergies share |
| 18,773 |
| (8,137) |
| 10,636 |
Non-controlling interests |
| 165 |
| 54 |
| 219 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
50
| | | | | | |
| | | |
| | Consolidated |
2nd quarter 2023 | | | | | | statement |
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| 56,195 |
| 76 |
| 56,271 |
Excise taxes |
| (4,737) |
| - | | (4,737) |
Revenues from sales |
| 51,458 |
| 76 |
| 51,534 |
| | | | | | |
Purchases net of inventory variation |
| (33,379) |
| (485) |
| (33,864) |
Other operating expenses |
| (7,754) |
| (152) |
| (7,906) |
Exploration costs |
| (62) |
| - |
| (62) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (2,959) |
| (147) |
| (3,106) |
Other income |
| 116 |
| - |
| 116 |
Other expense |
| (256) |
| (110) |
| (366) |
| | | | | | |
Financial interest on debt |
| (724) |
| - |
| (724) |
Financial income and expense from cash & cash equivalents |
| 402 |
| 108 |
| 510 |
Cost of net debt |
| (322) |
| 108 |
| (214) |
| | | | | | |
Other financial income |
| 401 |
| 12 |
| 413 |
Other financial expense |
| (173) |
| - |
| (173) |
| | | | | | |
Net income (loss) from equity affiliates |
| 662 |
| (395) |
| 267 |
| | | | | | |
Income taxes |
| (2,715) |
| 228 |
| (2,487) |
Consolidated net income |
| 5,017 |
| (865) |
| 4,152 |
TotalEnergies share |
| 4,956 |
| (868) |
| 4,088 |
Non-controlling interests |
| 61 |
| 3 |
| 64 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| | | | | | |
| | | |
| | Consolidated |
2nd quarter 2022 | | | | | | statement |
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| 74,789 |
| (15) |
| 74,774 |
Excise taxes |
| (4,329) |
| - | | (4,329) |
Revenues from sales |
| 70,460 |
| (15) |
| 70,445 |
| | | | | | |
Purchases net of inventory variation |
| (46,023) |
| 580 |
| (45,443) |
Other operating expenses |
| (7,620) |
| (421) |
| (8,041) |
Exploration costs |
| (117) |
| - |
| (117) |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| (3,038) |
| (64) |
| (3,102) |
Other income |
| 429 |
| - |
| 429 |
Other expense |
| (529) |
| (776) |
| (1,305) |
| | | | | | |
Financial interest on debt |
| (572) |
| - |
| (572) |
Financial income and expense from cash & cash equivalents |
| 130 |
| 115 |
| 245 |
Cost of net debt |
| (442) |
| 115 |
| (327) |
| | | | | | |
Other financial income |
| 231 |
| - |
| 231 |
Other financial expense |
| (136) |
| - |
| (136) |
| | | | | | |
Net income (loss) from equity affiliates |
| 1,944 |
| (3,490) |
| (1,546) |
| | | | | | |
Income taxes |
| (5,274) |
| (10) |
| (5,284) |
Consolidated net income |
| 9,885 |
| (4,081) |
| 5,804 |
TotalEnergies share |
| 9,796 |
| (4,104) |
| 5,692 |
Non-controlling interests |
| 89 |
| 23 |
| 112 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
51
3.3) Adjustment items
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
| | | | | | | | | | | | | | | | |
|
| | | Exploration | | | | | | Refining | | Marketing | | | |
|
| | | | & | | Integrated | | Integrated | | & | | & | | | | |
(M$) |
| |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Total |
2nd quarter 2023 | | Inventory valuation effect | | - | | - | | - | | (192) | | (60) | | - | | (252) |
| | Effect of changes in fair value | | - | | (322) | | 165 | | - | | - | | - | | (157) |
|
| Restructuring charges |
| - | | - |
| - |
| - |
| - |
| - |
| - |
|
| Asset impairment and provisions charges |
| (155) | | - |
| - |
| - |
| - |
| - |
| (155) |
| | Gains (losses) on disposals of assets | | – | | – | | – | | – | | – | | – | | – |
|
| Other items |
| (17) | | (2) |
| (28) |
| (24) |
| (16) |
| (57) |
| (144) |
Total |
| | | (172) | | (324) |
| 137 |
| (216) |
| (76) |
| (57) |
| (708) |
2nd quarter 2022 |
| Inventory valuation effect |
| - | | - | | - | | 775 | | 376 | | - | | 1,151 |
|
| Effect of changes in fair value |
| - | | 141 | | (738) | | - | | - | | - | | (597) |
|
| Restructuring charges |
| - | | - |
| (17) |
| - |
| - |
| - |
| (17) |
|
| Asset impairment and provisions charges |
| (46) | | (18) |
| - |
| - |
| 4 |
| - |
| (60) |
|
| Other items |
| (82) | | - |
| (3) |
| - |
| (11) |
| (301) |
| (397) |
Total |
| | | (128) | | 123 |
| (758) |
| 775 |
| 369 |
| (301) |
| 80 |
1st half 2023 |
| Inventory valuation effect |
| - | | - |
| - |
| (607) |
| (147) |
| - |
| (754) |
|
| Effect of changes in fair value |
| - | | (698) |
| 95 |
| - |
| - |
| - |
| (603) |
|
| Restructuring charges |
| - | | - |
| - |
| - |
| - |
| - |
| - |
|
| Asset impairment and provisions charges |
| (155) | | - |
| - |
| (45) |
| - |
| - |
| (200) |
| | Gains (losses) on disposals of assets | | – | | – | | – | | – | | (14) | | – | | (14) |
|
| Other items |
| (25) | | (2) |
| (28) |
| (24) |
| (16) |
| (57) |
| (152) |
Total |
| | | (180) | | (700) |
| 67 |
| (676) |
| (177) |
| (57) |
| (1,723) |
1st half 2022 |
| Inventory valuation effect |
| - | | - |
| - |
| 1,722 |
| 684 |
| - |
| 2,406 |
|
| Effect of changes in fair value |
| - | | 31 |
| (716) |
| - |
| - |
| - |
| (685) |
|
| Restructuring charges |
| - | | - |
| (22) |
| - |
| - |
| - |
| (22) |
|
| Asset impairment and provisions charges |
| (1,330) | | (18) |
| - |
| - |
| (65) |
| (9) |
| (1,422) |
|
| Other items |
| (82) | | - |
| (15) |
| - |
| (11) |
| (433) |
| (541) |
Total |
| | | (1,412) | | 13 |
| (753) |
| 1,722 |
| 608 |
| (442) |
| (264) |
52
ADJUSTMENTS TO NET INCOME, TotalEnergies SHARE
| | | | | | | | | | | | | | | | |
| | | | Exploration | | | | | | Refining | | Marketing | | | |
|
| | | | & | | Integrated | | Integrated | | & | | & | | | | |
(M$) |
| |
| Production |
| LNG |
| Power |
| Chemicals |
| Services |
| Corporate |
| Total |
2nd quarter 2023 | | Inventory valuation effect | | - | | - | | - | | (333) | | (47) | | - | | (380) |
| | Effect of changes in fair value | | - | | (286) | | 175 | | - | | - | | - | | (111) |
|
| Restructuring charges |
| - | | - |
| (5) |
| - |
| - |
| - |
| (5) |
|
| Asset impairment and provisions charges |
| (123) | | - |
| (346) |
| - |
| - |
| - |
| (469) |
|
| Gains (losses) on disposals of assets |
| - | | - | | - |
| - |
| - |
| - |
| - |
|
| Other items |
| 188 | | 15 |
| (31) |
| (44) |
| (8) |
| (23) |
| 97 |
Total |
| | | 65 | | (271) |
| (207) |
| (377) |
| (55) |
| (23) |
| (868) |
| | | | | | | | | | | | | | | ||
2nd quarter 2022 |
| Inventory valuation effect |
| - | | - | | - | | 738 | | 255 | | - | | 993 |
|
| Effect of changes in fair value |
| - | | 118 | | (669) | | - | | - | | - | | (551) |
|
| Restructuring charges |
| - | | - |
| (8) |
| - |
| - |
| - |
| (8) |
|
| Asset impairment and provisions charges |
| (3,493) | | (226) |
| - |
| - |
| - |
| - |
| (3,719) |
|
| Gains (losses) on disposals of assets |
| - | | - | | - |
| - |
| - |
| - |
| - |
|
| Other items |
| (286) | | (352) |
| - |
| - |
| (8) |
| (173) |
| (819) |
Total |
| | | (3,779) | | (460) |
| (677) |
| 738 |
| 247 |
| (173) |
| (4,104) |
| ||||||||||||||||
| | | | | | | | | | | | | | | | |
1st half 2023 |
| Inventory valuation effect |
| - | | - |
| - |
| (658) |
| (113) |
| - |
| (771) |
|
| Effect of changes in fair value |
| - | | (617) |
| 72 |
| - |
| - |
| - |
| (545) |
|
| Restructuring charges |
| - | | - |
| (5) |
| - |
| - |
| - |
| (5) |
|
| Asset impairment and provisions charges |
| (123) | | - |
| (346) |
| (60) |
| - |
| - |
| (529) |
|
| Gains (losses) on disposals of assets |
| - | | - | | - |
| - |
| 203 |
| - |
| 203 |
|
| Other items |
| 103 | | 11 |
| (117) |
| (122) |
| (21) |
| (59) |
| (205) |
Total |
| | | (20) | | (606) |
| (396) |
| (840) |
| 69 |
| (59) |
| (1,852) |
| | | | | | | | | | | | | | | | |
1st half 2022 |
| Inventory valuation effect |
| - | | - |
| - |
| 1,573 |
| 460 |
| - |
| 2,033 |
|
| Effect of changes in fair value |
| - | | 18 |
| (649) |
| - |
| - |
| - |
| (631) |
|
| Restructuring charges |
| - | | - |
| (11) |
| - |
| - |
| - |
| (11) |
|
| Asset impairment and provisions charges |
| (4,525) | | (4,174) |
| - |
| - |
| (72) |
| (9) |
| (8,780) |
|
| Gains (losses) on disposals of assets |
| - | | - | | - |
| - |
| - |
| - |
| - |
|
| Other items |
| (272) | | (352) |
| - |
| (32) |
| (8) |
| (84) |
| (748) |
Total |
| | | (4,797) | | (4,508) |
| (660) |
| 1,541 |
| 380 |
| (93) |
| (8,137) |
53
4) Shareholders’ equity
Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)
| | | | |
|
| December 31, 2022 |
| June 30, 2023 |
Number of treasury shares |
| 137,187,667 |
| 68,505,002 |
Percentage of share capital |
| 5.24% | | 2.74% |
Of which shares acquired with the intention to cancel them | | 128,869,261 |
| 65,043,639 |
Of which shares allocated to TotalEnergies share performance plans for Company employees |
| 8,231,365 |
| 3,362,143 |
Of which shares intended to be allocated to new share performance or purchase options plans |
| 87,041 | | 99,220 |
Dividend
The Shareholder’s Meeting of May 26, 2023 approved the distribution of an ordinary dividend at €2.81 per share and confirmed the €1 per share exceptional dividend for the fiscal year 2022, i.e. a total amount of €3.81 per share. The final dividend (ordinary and exceptional) for fiscal year 2022 was paid according to the following timetable:
| | | | | | | | |
Ordinary dividend 2022 |
| First interim |
| Second interim |
| Third interim |
| Final |
Amount | | €0.69 | | €0.69 | | €0.69 | | €0.74 |
Set date | | April 27, 2022 | | July 27, 2022 | | October 26, 2022 | | May 26, 2023 |
Ex-dividend date | | September 21, 2022 | | January 2, 2023 | | March 22, 2023 | | June 21, 2023 |
Payment date | | October 3, 2022 | | January 12, 2023 | | April 3, 2023 | | July 3, 2023 |
Special interim dividend 2022
| | |
Amount per share |
| € 1 |
Ex-dividend date | | December 6, 2022 |
Payment date | | December 16, 2022 |
The Board of Directors, during its April 26, 2023 meeting, set the first interim dividend for the fiscal year 2023 at €0.74 per share. The ex-dividend date of this intermin dividend will be September 20, 2023 and it will be paid in cash on October 2, 2023.
Furthermore, the Board of Directors, during its July 26, 2023 meeting, set the second interim dividend for the fiscal year 2023 at €0.74 per share, i.e an amount equal to the aforementioned first interim dividend. The ex-dividend date of this intermin dividend will be January 2, 2024 and it will be paid in cash on January 12, 2024.
| | | | |
Dividend 2023 |
| First interim |
| Second interim |
Amount | | € 0.74 | | € 0.74 |
Set date | | April 26, 2023 | | July 26, 2023 |
Ex-dividend date | | September 20, 2023 | | January 2, 2024 |
Payment date | | October 2, 2023 | | January 12, 2024 |
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 €1.51 per share for the 2nd quarter 2023 (€2.08 per share for the 1st quarter 2023 and €2.03 per share for the 2nd quarter 2022). Diluted earnings per share calculated using the same method amounted to €1.51 per share for the 2nd quarter 2023 (€2.06 per share for the 1st quarter 2023 and €2.03 per share for the 2nd quarter 2022).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
54
Perpetual subordinated notes
TotalEnergies SE has not issued any perpetual subordinated notes during the first six months of 2023.
TotalEnergies SE fully reimbursed the nominal amount of €1,000 million of its perpetual subordinated notes 2.708% issued in October 2016, on their first call date, on May 5th, 2023.
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
| | | | |
(M$) |
| 1st half 2023 |
| 1st half 2022 |
Actuarial gains and losses |
| 138 |
| 204 |
| | | | |
Change in fair value of investments in equity instruments |
| 3 |
| (17) |
| | | | |
Tax effect |
| (51) |
| (42) |
Currency translation adjustment generated by the parent company |
| 1,409 |
| (7,137) |
Sub-total items not potentially reclassifiable to profit and loss |
| 1,499 |
| (6,992) |
| | | | |
Currency translation adjustment |
| (1,299) |
| 3,535 |
- unrealized gain/(loss) of the period |
| (1,381) |
| 3,532 |
- less gain/(loss) included in net income |
| (82) |
| (3) |
| | | | |
Cash flow hedge |
| 1,891 |
| 2,959 |
- unrealized gain/(loss) of the period |
| 1,699 |
| 2,901 |
- less gain/(loss) included in net income |
| (192) |
| (58) |
| | | | |
Variation of foreign currency basis spread |
| 8 |
| 70 |
- unrealized gain/(loss) of the period |
| (8) |
| 49 |
- less gain/(loss) included in net income |
| (16) |
| (21) |
| | | | |
Share of other comprehensive income of equity affiliates, net amount |
| (95) |
| 2,464 |
- unrealized gain/(loss) of the period |
| (84) |
| 2,427 |
- less gain/(loss) included in net income |
| 11 |
| (37) |
| | | | |
Other |
| (1) |
| (1) |
| | | | |
Tax effect |
| (472) |
| (1,059) |
Sub-total items potentially reclassifiable to profit and loss |
| 32 |
| 7,968 |
Total other comprehensive income (net amount) |
| 1,531 |
| 976 |
55
Tax effects relating to each component of other comprehensive income are as follows:
| | | | | | | | | | | | | | |
| | 1st half 2023 | 1st half 2022 | |||||||||||
| | Pre-tax | | | | | | | Pre-tax | | | | |
|
(M$) |
| amount |
| Tax effect |
| Net amount |
|
| amount |
| Tax effect |
| Net amount | |
Actuarial gains and losses | | 138 | | (50) | | 88 | | | 204 | | (53) | | 151 | |
Change in fair value of investments in equity instruments | | 3 | | (1) | | 2 | | | (17) | | 11 | | (6) | |
Currency translation adjustment generated by the parent company | | 1,409 | | - | | 1,409 | | | (7,137) | | - | | (7,137) | |
Sub-total items not potentially reclassifiable to profit and loss | | 1,550 | | (51) | | 1,499 | | | (6,950) | | (42) | | (6,992) | |
Currency translation adjustment | | (1,299) | | - | | (1,299) | | | 3,535 | | - | | 3,535 | |
Cash flow hedge | | 1,891 | | (470) | | 1,421 | | | 2,959 | | (1,041) | | 1,918 | |
| | | | | | | | | | | | | | |
Variation of foreign currency basis spread | | 8 | | (2) | | 6 | | | 70 | | (18) | | 52 | |
Share of other comprehensive income of equity affiliates, net amount | | (95) | | - | | (95) | | | 2,464 | | - | | 2,464 | |
Other | | (1) | | - | | (1) | | | (1) | | - | | (1) | |
Sub-total items potentially reclassifiable to profit and loss | | 504 | | (472) | | 32 | | | 9,027 | | (1,059) | | 7,968 | |
Total other comprehensive income | | 2,054 | | (523) | | 1,531 | | | 2,077 | | (1,101) | | 976 | |
5) Financial debt
The Company has not issued any new senior bond during the first six months of 2023.
The Company reimbursed two senior bonds during the first six months of 2023:
- | Bond 2.700% issued by TotalEnergies Capital International in 2012 and maturing in January 2023 ($1,000 million); |
- | Bond 2.125% issued by TotalEnergies Capital International in 2012 (€500 million) and tapped in 2013 (€250 million) forming a single series (€750 million) and maturing in March 2023. |
In addition, the $8 billion credit line, put in place in March 2022, has not been extended and therefore ended in March 2023.
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 2023.
56
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.
Disputes relating to Climate
In France, the Corporation was summoned in January 2020 before Nanterre’s Court of Justice by certain associations and local communities in order to oblige the Company to complete its Vigilance Plan, by identifying in detail risks relating to a global warming above 1.5°C, as well as indicating the expected amount of future greenhouse gas emissions related to the Company’s activities and its product utilization by third parties and in order to obtain an injunction ordering the Corporation to immediately cease exploration and exploitation of new oil or gas fields, to reduce its oil and gas production by 2030 and 2050, and to reduce its net direct and indirect CO2 emissions by 40% in 2040 compared with 2019. A new procedural law led to the transfer of these proceedings to the Paris judicial court in February 2022. This action was declared inadmissible on July 6, 2023, by the Paris judicial court. TotalEnergies considers that it has fulfilled its obligations under the French law on the vigilance duty.
Several associations in France brought a civil action against TotalEnergies and TotalEnergies Gaz et Electricité France before the Paris judicial court, with the aim of proving that since May 2021 – after the change of name of TotalEnergies – the Company’s corporate communication and its publicity campaign contain environmental claims that are either false or misleading for the consumer. TotalEnergies considers that these accusations are unfounded.
In France, on July 4, 2023, nine shareholders (two companies and 7 individuals holding a small number of the Corporation's shares) brought an action against the Corporation before the Nanterre Commercial Court, seeking the annulment of resolution no. 3 passed by the Corporation's Annual Shareholders’ Meeting on May 26, 2023, recording the results for fiscal year 2022 and setting the amount of the dividend to be distributed for fiscal year 2022. The plaintiffs essentially allege an insufficient provision for impairment of the Company's assets in the financial statements for the fiscal year 2022, due to the insufficient consideration of future risks and costs related to the consequences of greenhouse gas emissions emitted by its customers (scope 3) and carbon cost assumptions presented as too low. The Corporation considers this action to be unfounded.
In the United States, US subsidiaries of TotalEnergies (TotalEnergies EP USA, Inc. and TotalEnergies Marketing USA, Inc.) were summoned, amongst many companies and professional associations, in a number of "climate litigation" cases, seeking to establish legal liability for past greenhouse gas emissions, and to compensate plaintiff public authorities, in particular for adaptation costs. The Corporation was summoned, along with one of its subsidiaries, in one of these litigations. The Corporation and its subsidiaries consider that the courts lack jurisdiction, and have many arguments to put forward, and consider that the past and present behavior of the Corporation and its subsidiaries does not constitute a fault susceptible to give rise to liability.
57
8) Subsequent events
On June 30, 2023, TotalEnergies held an interest of 33.86% in Total Eren Holding and an interest of 5.73% in Total Eren SA.
On June 29, 2023, the Company exercised the option it had to acquire all the shares of these two companies, exercisable over a period of 3 months between April 1, 2023 and June 30, 2023.
The acquisition of the shares was finalized on July 24, 2023 for a net investment of around 1.5 billion euros.
58