Regulatory News:

TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):

2Q23

Change
vs 2Q22

1H23

Change
vs 1H22

Net income (TotalEnergies share) (B$)

4.1

-28%

9.6

-9%

Adjusted net income (TotalEnergies share)(1)

 

 

 

 

- in billions of dollars (B$)

5.0

-49%

11.5

-39%

- in dollars per share

1.99

-47%

4.61

-35%

Adjusted EBITDA(1) (B$)

11.1

-41%

25.3

-30%

DACF(1) (B$)

8.6

-37%

18.4

-28%

Cash Flow from operations (B$)

9.9

-39%

15.0

-37%

Net-debt-to-capital ratio(2) of 11.1% at June 30, 2023 vs. 11.5% at March 31, 2023
Second 2023 interim dividend set at 0.74 €/share

The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on July 26, 2023, to approve the second quarter 2023 financial statements. On the occasion, Patrick Pouyanné said:

“In a favorable but softening oil & gas environment TotalEnergies once again delivered this quarter robust results, strong cash flow, and attractive shareholder distribution. The Company generated adjusted net income of $5.0 billion and return on average capital employed of 22%. TotalEnergies generated $8.5 billion in cash flow in the second quarter and $18 billion in the first half of 2023.
Exploration & Production reported adjusted net operating income of $2.3 billion and cash flow of $4.4 billion. Production of 2.5 Mboe/d was up 2% year-on-year, thanks to new project start-ups (Ikike in Nigeria, Mero 1 in Brazil, Block 10 in Oman) and benefited from the integration of the SARB and Umm Lulu oil fields in the United Arab Emirates.
The Integrated LNG segment posted cash flow of $1.8 billion, benefiting from the high margins captured in 2022. Adjusted net operating income was $1.3 billion reflecting lower LNG prices (averaging 10 $/Mbtu in the second quarter) and softer trading results in less volatile markets.
Integrated Power’s adjusted net operating income and cash flow increased to $450 million and $491 million respectively in the second quarter, building its track record as an integrated and profitable player in the electricity markets with a ROACE of 10.1%. Integrated Power cash flow so reached close to $1 billion on the first six months of 2023, more than the cash flow performed on the whole year 2022.
Downstream reported resilient adjusted net operating income of $1.5 billion and cash flow of $2.1 billion in a context of lower refining margins.
As part of the implementation of its multi-energy strategy, the Company also announced four major projects this quarter:
- the launch of its multi-energy GGIP project in Iraq,
- thelaunch of the RGLNG project in Texas, which will boost its LNG export capacity from the US to 15 Mt/y,
- the completion of the acquisition of 100% of Total Eren in renewable electricity,
- the award of the EPC contracts for the Amiral petrochemical project in Saudi Arabia.
These projects demonstrate TotalEnergies’ ability to seize opportunities allowing the Company to deploy its multi-energy model based on two pillars: production of low-cost low-emissions hydrocarbons (oil and LNG) and the development of a profitable integrated power business.
In this favorable environment, the Board of Directors confirmed for 2023 a shareholder distribution of more than 40% of cash flow. The Board decided the distribution of a second interim dividend for the 2023 financial year in the amount of €0.74/share, up 7.25% year-on-year, and authorized the Company to buy back shares for $2 billion in the third quarter of 2023."

1. Highlights(3)

Multi-energy strategy

  • Launch of GGIP in Iraq: major multi-energy project (access to low-cost, low-emission oil from the Ratawi field, gas gathering and treatment for electricity generation, 1 GW solar farm and sea water treatment) in favor of the sustainable development of natural resources in Basrah area
  • Partnership with SONATRACH to increase the production of the Tin Fouyé Tabankort fields, extend to 2024 2 Mt/y of LNG deliveries in France, and develop renewable energy projects in Algeria

Upstream

  • Production start-up of Absheron gas and condensate field, in Azerbaijan
  • Oil and gas discovery on the Ntokon well, located on OML 102 in Nigeria
  • Renewal for 20 years of the OML130 license, in Nigeria
  • Exercise by ConocoPhillips of its preemption right on Surmont, following the announcement of the sale to Suncor of the entirety of the shares of TotalEnergies EP Canada Ltd
  • Signature of Production Sharing Contracts on Blocks 6 and 8, in Suriname
  • Signature of the Production Sharing Contract for the Agua Marinha block, in Brazil

Downstream

  • Award of $11 billion EPC contracts for the Amiral project, in Saudi Arabia
  • Realignment with INEOS of stakes in petrochemical assets in Eastern France

Integrated LNG

  • Launch of the RGLNG project, in Texas: acquisition of a 16.67% stake in the JV in charge of developing the 17.5 Mt/y project, acquisition of a 17.5% stake in NextDecade, and signature of a 5.4 Mt/y offtake agreement for 20 years
  • Delivery of the first LNG cargo to the Dhamra LNG terminal in India
  • Signing of LNG sale contracts to IOCL in India for 10 years and to ADNOC Gas for 3 years

Integrated Power

  • Acquisition at 100% of Total Eren, a leading renewable electricity producer
  • Award of two maritime leases to develop two offshore wind farms for a total capacity of 3 GW in Germany
  • Favorable environmental impact assessment for 3 GW of solar projects in Spain
  • 25-year Power Purchase Agreement for 1 GW onshore wind farm with battery storage in Kazakhstan
  • Launch at Antwerp, in Belgium, of a 75 MWh battery energy storage project
  • Strategic Collaboration Agreement with Petronas, to develop renewable energy projects in the Asia Pacific region. Agreement to develop the 100 MW Pleasant Hills solar project in Australia.

Decarbonization & new molecules

  • Partnership with TES to develop a large-scale production unit for e-natural gas in the United States
  • Agreement with VNG to initiate the future supply of green hydrogen to the Leuna refinery, in Germany
  • SAF: doubling SAF production capacity to 285 kt per year at Grandpuits, in France
  • Biomethane:
  • Acquisition of 20% stake in the Finnish start-up Ductor
  • Signature with Saint-Gobain France of a 100 GWh sale agreement over 3 years
  • Construction in Grandpuits, in France, of a production unit with annual capacity of 80 GWh

2. Key figures from TotalEnergies’ consolidated financial statements(4)

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars, except effective tax rate,
earnings per share and number of shares		  

1H23

 

1H22

 

1H23
 vs
1H22

11,105

 

14,167

 

18,737

 

-41%

   Adjusted EBITDA (5)  

25,272

 

36,161

 

-30%

5,582

 

6,993

 

10,500

 

-47%

   Adjusted net operating income 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%

662

 

1,079

 

1,944

 

-66%

   Contribution of equity affiliates to adjusted net income  

1,741

 

3,805

 

-54%

37.3%

 

41.4%

 

39.4%

 

-

   Effective tax rate (6)  

39.7%

 

39.0%

 

-

4,956

 

6,541

 

9,796

 

-49%

   Adjusted net income (TotalEnergies share)  

11,497

 

18,773

 

-39%

1.99

 

2.61

 

3.75

 

-47%

   Adjusted fully-diluted earnings per share (dollars) (7)  

4.61

 

7.14

 

-35%

1.84

 

2.43

 

3.50

 

-47%

   Adjusted fully-diluted earnings per share (euros)*  

4.27

 

6.53

 

-35%

2,448

 

2,479

 

2,592

 

-6%

   Fully-diluted weighted-average shares (millions)  

2,460

 

2,602

 

-5%

 

 

 

 

 

 

 

      

 

 

 

 

 

4,088

 

5,557

 

5,692

 

-28%

   Net income (TotalEnergies share)  

9,645

 

10,636

 

-9%

 

 

 

 

 

 

 

      

 

 

 

 

 

4,271

 

3,433

 

2,819

 

+51%

   Organic investments (8)  

7,704

 

4,800

 

+60%

320

 

2,987

 

2,076

 

-85%

   Net acquisitions (9)  

3,307

 

2,998

 

+10%

4,591

 

6,420

 

4,895

 

-6%

   Net investments (10)  

11,011

 

7,798

 

+41%

 

 

 

 

 

 

 

      

 

 

 

 

 

8,485

 

9,621

 

13,233

 

-36%

   Operating cash flow before working capital changes (11)  

18,106

 

24,859

 

-27%

8,596

 

9,774

 

13,631

 

-37%

   Operating cash flow before working capital changes
w/o financial charges (DACF) (12)		  

18,371

 

25,626

 

-28%

9,900

 

5,133

 

16,284

 

-39%

   Cash flow from operations  

15,033

 

23,901

 

-37%

* Average €-$ exchange rate: 1.0887 in the second quarter 2023, 1.0807 in the first half 2023.

3. Key figures of environment, greenhouse gas emissions and production

3.1 Environment* – liquids and gas price realizations, refining margins

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

     

1H23

 

1H22

 

1H23
 vs
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)
Consolidated subsidiaries		  

72.7

 

96.3

 

-25%

5.98

 

8.89

 

11.01

 

-46%

   Average price of gas ($/Mbtu)
Consolidated subsidiaries		  

7.48

 

11.65

 

-36%

9.84

 

13.27

 

13.96

 

-30%

   Average price of LNG ($/Mbtu)
Consolidated subsidiaries and equity affiliates 		  

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 23.
** 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).

3.2 Greenhouse gas emissions(13)

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Scope 1+2 emissions (MtCO2e)  

1S23

 

1S22

 

1S23
 vs
1S22

9.1

 

9.1

 

9.6

 

-6%

   Scope 1+2 from operated facilities (14)  

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 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
vs
2Q22

  Methane emissions (ktCH4)  

1S23

 

1S22

 

1S23
 vs
1S22

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)  

1S23

 

2022

Scope 3 from Oil, Biofuels and Gas Worldwide (15)  

est. 180

 

389

3.3 Production*

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Hydrocarbon production  

1H23

 

1H22

 

1H23
 vs
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 = E&P production + Integrated LNG production.

Hydrocarbon production was 2,471 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 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, production was down 2% mainly due to planned maintenance operations in North Sea, 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.

4. Analysis of business segments

4.1 Exploration & Production

4.1.1 Production

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Hydrocarbon production  

1H23

 

1H22

 

1H23
 vs
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

 

-

4.1.2 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars, except effective tax rate  

1H23

 

1H22

 

1H23
 vs
1H22

2,349

 

2,653

 

4,719

 

-50%

   Adjusted net operating income*  

5,002

 

9,734

 

-49%

149

 

135

 

287

 

-48%

  

including adjusted income from equity affiliates

 

284

 

642

 

-56%

49.7%

 

57.1%

 

47.2%

 

-

   Effective tax rate**  

53.9%

 

47.1%

 

-

 

 

 

 

 

 

 

      

 

 

 

 

 

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%

 

 

 

 

 

 

 

      

 

 

 

 

 

4,364

 

4,907

 

7,383

 

-41%

   Operating cash flow before working capital changes ***  

9,271

 

14,686

 

-37%

4,047

 

4,536

 

8,768

 

-54%

   Cash flow from operations ***  

8,583

 

14,536

 

-41%

* Details on adjustment items are shown in the business segment information annex to financial statements.
** 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).
*** Excluding financial charges, except those related to leases.

Exploration & Production adjusted net operating income was $2,349 million in the second quarter 2023 down 11% quarter-on-quarter, mainly due to lower oil and gas prices.

Cash flow was $4,364 million in the second quarter 2023 down 11% quarter-on-quarter, mainly due to lower gas and oil prices.

4.2 Integrated LNG

4.2.1 Production

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Hydrocarbon production for LNG  

1H23

 

1H22

 

1H23
 vs
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

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Liquefied Natural Gas in Mt  

1H23

 

1H22

 

1H23
 vs
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 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 2022.

LNG sales decreased year-on-year due to lower demand in Europe and are stable quarter-on-quarter, beneficiating from the restart of Freeport LNG.

4.2.2 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

1,330

 

2,072

 

2,215

 

-40%

   Adjusted net operating income*  

3,402

 

5,348

 

-36%

432

 

786

 

1,192

 

-64%

   including adjusted 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

 

 

 

 

 

 

 

      

 

 

 

 

 

1,801

 

2,081

 

2,112

 

-15%

   Operating cash flow before working capital changes **  

3,882

 

4,604

 

-16%

1,332

 

3,536

 

3,802

 

-65%

   Cash flow from operations ***  

4,868

 

6,021

 

-19%

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value.
*** Excluding financial charges, except those related to leases.

Integrated LNG adjusted net operating income was:

  • $1,330 million in the second quarter 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.

Operating cash flow before working capital changes for Integrated LNG was:

  • $1,801 million in the second quarter 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.

4.3 Integrated Power

4.3.1 Capacities, productions, clients and sales

2Q23

 

1Q23

 

2Q22

 

2Q23
 vs
2Q22

  Integrated Power  

1H23

 

1H22

 

1H23
 vs
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 2023, up 8% year-on-year, as growing electricity generation from renewables is 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 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.

4.3.2 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

450

 

370

 

340

 

+32%

   Adjusted net operating income*  

820

 

258

 

x3,2

23

 

56

 

27

 

-15%

  

including adjusted 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%

 

 

 

 

 

 

 

      

 

 

 

 

 

491

 

440

 

248

 

+98%

   Operating cash flow before working capital changes **  

931

 

341

 

x2,7

2,284

 

(1,285)

 

168

 

x13,6

   Cash flow from operations ***  

999

 

(1,736)

 

ns

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects.
*** Excluding financial charges, except those related to leases. Excluding margin calls, reported in the Integrated LNG segment since the implementation in 2022 of its centralized management.

Integrated Power adjusted net operating income was $450 million and operating cash flow before working capital changes was $491 million in the second quarter 2023, up 22% and 12% respectively quarter-on-quarter, due to the performance of its integrated electricity portfolio.

4.4 Downstream (Refining & Chemicals and Marketing & Services)

4.4.1 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

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%

 

 

 

 

 

 

 

      

 

 

 

 

 

2,085

 

2,189

 

3,548

 

-41%

   Operating cash flow before working capital changes **  

4,274

 

5,444

 

-21%

2,588

 

(1,524)

 

4,106

 

-37%

   Cash flow from operations **  

1,064

 

6,111

 

-83%

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

4.5 Refining & Chemicals

4.5.1 Refinery and petrochemicals throughput and utilization rates

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Refinery throughput and utilization rate*  

1H23

 

1H22

 

1H23
 vs
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

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Petrochemicals production and utilization rate  

1H23

 

1H22

 

1H23
 vs
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 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 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 2023 and 16% in the first half 2023, due to the slowdown in global demand.

4.5.2 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

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%

 

 

 

 

 

 

 

      

 

 

 

 

 

1,329

 

1,733

 

2,963

 

-55%

   Operating cash flow before working capital changes **  

3,062

 

4,396

 

-30%

1,923

 

(851)

 

3,526

 

-45%

   Cash flow from operations **  

1,072

 

4,633

 

-77%

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

Refining & Chemicals adjusted net operating income was:

  • $1,004 million in the second quarter 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.

Operating cash flow before working capital changes was $1,329 million in the second quarter 2023 and $3,062 million in the first half 2023, down 55% and 30% respectively year-on-year as the second quarter 2022 benefited from exceptional conditions.

4.6 Marketing & Services

4.6.1 Petroleum product sales

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Sales in kb/d*  

1H23

 

1H22

 

1H23
 vs
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 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.

4.6.2 Results

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

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%

 

 

 

 

 

 

 

      

 

 

 

 

 

756

 

456

 

585

 

+29%

   Operating cash flow before working capital changes **  

1,212

 

1,048

 

+16%

665

 

(673)

 

580

 

+15%

   Cash flow from operations **  

(8)

 

1,478

 

ns

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

Marketing & Services adjusted net operating income was $449 million in the second quarter 2023, down 4% year-on-year, and $729 million in the first half 2023, slightly down year-on-year, in line with lower sales.

Operating cash flow before working capital changes rose by 29% year-on-year to $756 million in the second quarter 2023, and by 16% to $1,212 million in the first half 2023, as 2022 was negatively impacted by the tax effect of higher prices on the valuation of petroleum product inventories.

5. TotalEnergies results

5.1 Adjusted net operating income from business segments

Adjusted net operating income from business segments was:

  • $5,582 million in the second quarter 2023, compared to $6,993 million in the first quarter 2023, due to lower gas prices and refining margins,
  • $12,575 million in the first half 2023, compared to $19,958 million in the first half 2022, due to lower oil and gas prices and refining margins.

5.2 Adjusted net income (TotalEnergies share)

TotalEnergies adjusted net income was $4,956 million in the second quarter 2023 versus $6,541 million in the first quarter 2023, mainly 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 value(16).

Adjustments to net income(17) were ($868) million in the second quarter 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.

TotalEnergies’ average tax rate was:

  • 37.3% in the second quarter 2023 versus 41.4% in the first quarter 2023, mainly as a result of the lower tax rate for Exploration & Production related to lower oil and gas prices,
  • 39.7% in the first half 2023 versus 39.0% in the first half 2022, mainly as a result of the higher tax rate for Exploration & Production related notably to the Energy Profits Levy in the UK.

5.3 Adjusted earnings per share

Adjusted diluted net earnings per share were:

  • $1.99 in the second quarter 2023, based on 2,448 million weighted average diluted shares, compared to $2.61 in the first quarter 2023,
  • $4.61 in the first half 2023, based on 2,460 million weighted average diluted shares, compared to $7.14 a year earlier.

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 2023 for $2 billion,
  • 65.0 million shares for cancellation in the first half 2023 for $4 billion.

5.4 Acquisitions - asset sales

Acquisitions were:

  • $482 million in the second quarter 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 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.

5.5 Net cash flow

TotalEnergies' net cash flow(18) was:

  • $3,894 million in the second quarter 2023 compared to $3,201 million in the first quarter, 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 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.

In the second quarter, cash flow from operations was $9,900 million compared to $8,485 million of operating cash flow before working capital changes, 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.

5.6 Profitability

Return on equity was 25.2% for the twelve months ended June 30, 2023.

In millions of dollars  

July 1, 2022

 

April 1, 2022

 

July 1, 2021

  
 

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(19) was 22.4% for the twelve months ended June 30, 2023.

In millions of dollars  

July 1, 2022

 

April 1, 2022

 

July 1, 2021

  
 

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%

  

6. TotalEnergies SE statutory accounts

Net income for TotalEnergies SE, the parent company, amounted to €7,040 million in the first half 2023, compared to €3,702 million in the first half 2022.

7. Annual 2023 Sensitivities*

   

Change

 

Estimated impact on
adjusted
net operating income

 

Estimated impact on
cash flow from

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.

8. 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.

* * * *

To listen to the conference call with CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 12:00 (Paris time), please log on to totalenergies.com or dial +44 (0) 121 281 8004 or +1 (718) 705-8796. The conference replay will be available on the Company's website totalenergies.com after the event.

* * * *

9. Operating information by segment

9.1 Company’s production (Exploration & Production + Integrated LNG)

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Combined liquids and gas
production by region (kboe/d)		  

1H23

 

1H22

 

1H23
 vs
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

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Liquids production by region (kb/d)  

1H23

 

1H22

 

1H23
 vs
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

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Gas production by region (Mcf/d)  

1H23

 

1H22

 

1H23
 vs
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%

9.2 Downstream (Refining & Chemicals and Marketing & Services)

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Petroleum product sales by region (kb/d)  

1H23

 

1H22

 

1H23
 vs
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

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  Petrochemicals production* (kt)  

1H23

 

1H22

 

1H23
 vs
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.

9.3 Renewables

   

2Q23

 

1Q23

Installed power generation gross capacity (GW) (1),(2) 

Solar

Onshore Wind

Offshore Wind

Other 

Total 

 

Solar

Onshore Wind

Offshore 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

Power generation gross capacity from renewables
in construction (GW) (1),(2)		 

Solar

Onshore Wind

Offshore Wind

Other 

Total 

 

Solar

Onshore Wind

Offshore 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

Power generation gross capacity from renewables
in development (GW) (1),(2)		 

Solar

Onshore Wind

Offshore Wind

Other 

Total 

 

Solar

Onshore Wind

Offshore 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.

10. 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)

11. Reconciliation of adjusted EBITDA with consolidated financial statements

11.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
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%

11.2 Reconciliation of revenues from sales to adjusted EBITDA and net income (TotalEnergies share)

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
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%

12. Investments - Divestments

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
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 ( a + b - c + d + e + f - g - h )  

10,835

 

7,360

 

+47%

* Change in debt from renewable projects (TotalEnergies share and partner share).

13. Cash flow

2Q23

 

1Q23

 

2Q22

 

2Q23
vs
2Q22

  In millions of dollars  

1H23

 

1H22

 

1H23
 vs
1H22

9,900

 

5,133

 

16,284

 

-39%

  Cash flow from operations  

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.

14. Gearing 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.

15. Return on average capital employed(20)

Twelve months ended June 30, 2023

In millions of dollars

Exploration &
Production

Integrated
LNG

Integrated
Power

Refining &
Chemicals

Marketing &
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

ROACE

18.4%

24.2%

10.1%

68.5%

18.9%

 

22.4%

Twelve months ended March 31, 2023

In millions of dollars

Exploration &
Production

Integrated
LNG

Integrated
Power

Refining &
Chemicals

Marketing &
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

ROACE

21.7%

25.6%

9.9%

82.3%

18.8%

 

25.4%

* At replacement cost (excluding after-tax inventory effect).

Disclaimer:

The terms “TotalEnergies”, “TotalEnergies company” and “Company” in this document are used to designate TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities.

This document does not constitute the half-year financial report, which will be separately published in accordance with article L. 451-1-2-III of the French Code monétaire et financier and applicable UK law, and available on the website totalenergies.com. This press release presents the results for the second quarter 2023 and half-year 2023 from the consolidated financial statements of TotalEnergies SE as of June 30, 2023 (unaudited). The limited review procedures by the Statutory Auditors are underway. The notes to the consolidated financial statements (unaudited) are available on the website totalenergies.com.

This document may contain forward-looking statements (including 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. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. The information on risk factors that could have a significant adverse effect on TotalEnergies’ business, financial condition, including its operating income and cash flow, reputation, outlook or the value of financial instruments issued by TotalEnergies is provided in the most recent version of the Universal Registration Document which is filed by TotalEnergies SE with the French Autorité des Marchés Financiers and the annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).

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. In addition to IFRS measures, certain alternative performance indicators are presented, such as performance indicators excluding the adjustment items described below (adjusted operating income, adjusted net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE), gearing ratio, operating cash flow before working capital changes, the shareholder rate of return. These indicators are meant to facilitate the analysis of the financial performance of TotalEnergies and the comparison of income between periods. They allow investors to track the measures used internally to manage and measure the performance of TotalEnergies.

These 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 asset 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) 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 TotalEnergies’ principal 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 price differentials 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.

(iii) Effect of changes in fair value

The effect of changes in fair value presented as an adjustment item reflects, for some transactions, differences between internal measures of performance used by TotalEnergies’ 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 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.

The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value.

Euro amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar (€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this press release, such as “potential reserves” or “resources”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in the Form 20-F of TotalEnergies SE, File N° 1-10888, available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website totalenergies.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s website sec.gov.

(1) Definition on page 3.
(2) Excluding leases.
* For the twelve months ended June 30, 2023.
(3) Some of the transactions mentioned in the highlights remain subject to the agreement of the authorities or to the fulfilment of conditions precedent under the terms of the agreements.
(4) 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 18.
(5) Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) corresponds to the adjusted earnings before depreciation, depletion and impairment of tangible and intangible assets and mineral interests, income tax expense and cost of net debt, i.e., all operating income and contribution of equity affiliates to net income.
(6) Effective tax rate = (tax on adjusted net operating income) / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income).
(7) In accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bonds.
(8) Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
(9) Net acquisitions = acquisitions – assets sales – other transactions with non-controlling interests (see page 20).
(10) Net investments = organic investments + net acquisitions (see page 20).
(11) 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 contracts and including capital gains from renewable projects sale.
The inventory valuation effect is explained on page 22. The reconciliation table for different cash flow figures is on page 20.
(12) DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
(13) 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.
(14) 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 Universal Registration Document) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2).
(15) 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.
(16) These adjustment elements are explained page 22.
(17) Total net income adjustment items are detailed page 18 as well as in the annexes to the accounts.
(18) Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interest).
(19) ROACE is the ratio of Adjusted net operating income to Average capital employed between the beginning and the end of the period.
(20) ROACE is the ratio of Adjusted net operating income to Average capital employed between the beginning and the end of the period.

TotalEnergies financial statements
_______________________________
Second quarter and first half 2023 consolidated accounts, IFRS

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.

 

 

 

 

 

 

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

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.

 

 

 

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

CONSOLIDATED BALANCE SHEET

 

 

 

 

 

 

 

TotalEnergies

 

 

 

 

 

 

 

 

June 30,
     2023

 

March 31,
     2023

 

December 31,
   2022

 

June 30,
     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

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

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

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

TotalEnergies

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

Common shares issued

Paid-in
surplus and
retained
earnings

Currency
translation
adjustment

 

Treasury shares

 

Shareholders'
equity -
TotalEnergies
Share

Non-
controlling
interests

 

Total
shareholders'
equity

 (M$)

Number

Amount

 

Number

Amount

 

 

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.

 

 

 

 

 

INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)

 

 

 

 

 

 

 

 

 

 2nd quarter 2023

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)

 

 

 

 

 

 

 

 

 

 1st quarter 2023

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

External sales

1,954

4,872

8,555

24,855

22,359

8

-

62,603

Intersegment sales

10,728

5,999

1,685

9,061

120

57

(27,650)

-

Excise taxes

-

-

-

(184)

(4,186)

-

-

(4,370)

Revenues from sales

12,682

10,871

10,240

33,732

18,293

65

(27,650)

58,233

Operating expenses

(4,762)

(9,445)

(9,831)

(31,892)

(17,787)

(161)

27,650

(46,228)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,066)

(288)

(47)

(414)

(224)

(23)

-

(3,062)

 Operating income

5,854

1,138

362

1,426

282

(119)

-

8,943

Net income (loss) from equity affiliates and other items

68

804

(70)

52

243

(21)

-

1,076

Tax on net operating income

(3,398)

(205)

(111)

(325)

(119)

63

-

(4,095)

 Net operating income

2,524

1,737

181

1,153

406

(77)

-

5,924

Net cost of net debt

 

 

 

 

 

 

 

(293)

Non-controlling interests

 

 

 

 

 

 

 

(74)

Net income - TotalEnergies share

 

 

 

 

 

 

 

5,557

 

 

 

 

 

 

 

 

 

 1st quarter 2023 (adjustments)(a)

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

External sales

-

(76)

-

-

-

-

-

(76)

Intersegment sales

-

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

-

Revenues from sales

-

(76)

-

-

-

-

-

(76)

Operating expenses

(8)

(300)

(70)

(424)

(101)

-

-

(903)

Depreciation, depletion and impairment of tangible assets and mineral interests

-

-

-

(36)

-

-

-

(36)

 Operating income  (b)

(8)

(376)

(70)

(460)

(101)

-

-

(1,015)

Net income (loss) from equity affiliates and other items

(73)

(4)

(111)

(37)

217

-

-

(8)

Tax on net operating income

(48)

45

(8)

32

10

-

-

31

 Net operating income  (b)

(129)

(335)

(189)

(465)

126

-

-

(992)

Net cost of net debt

 

 

 

 

 

 

 

8

Non-controlling interests

 

 

 

 

 

 

 

-

Net income - TotalEnergies share

 

 

 

 

 

 

 

(984)

 

 

 

 

 

 

 

 

 

(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

 

-

-

(415)

(87)

-

 

 

        - On net operating income

 

-

-

(327)

(64)

-

 

 

 

 

 

 

 

 

 

 

 

 1st quarter 2023 (adjusted)

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

External sales

1,954

4,948

8,555

24,855

22,359

8

-

62,679

Intersegment sales

10,728

5,999

1,685

9,061

120

57

(27,650)

-

Excise taxes

-

-

-

(184)

(4,186)

-

-

(4,370)

Revenues from sales

12,682

10,947

10,240

33,732

18,293

65

(27,650)

58,309

Operating expenses

(4,754)

(9,145)

(9,761)

(31,468)

(17,686)

(161)

27,650

(45,325)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,066)

(288)

(47)

(378)

(224)

(23)

-

(3,026)

 Adjusted operating income

5,862

1,514

432

1,886

383

(119)

-

9,958

Net income (loss) from equity affiliates and other items

141

808

41

89

26

(21)

-

1,084

Tax on net operating income

(3,350)

(250)

(103)

(357)

(129)

63

-

(4,126)

 Adjusted net operating income

2,653

2,072

370

1,618

280

(77)

-

6,916

Net cost of net debt

 

 

 

 

 

 

 

(301)

Non-controlling interests

 

 

 

 

 

 

 

(74)

Adjusted net income - TotalEnergies share

 

 

 

 

 

 

 

6,541

 

 

 

 

 

 

 

 

 

 1st quarter 2023

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

4,052

1,195

1,234

225

159

35

-

6,900

Total divestments

31

49

149

8

301

-

-

538

 Cash flow from operating activities

4,536

3,536

(1,285)

(851)

(673)

(130)

-

5,133

INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)

 

 

 

 

 

 

 

 

 

 2nd quarter 2022

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)

 

 

 

 

 

 

 

 

 

 1sthalf 2023

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)

 

 

 

 

 

 

 

 

 

 1sthalf 2022

Exploration

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

&

Production

Integrated LNG

Integrated Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

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

Reconciliation of the information by business segment with Consolidated Financial Statements
TotalEnergies
(unaudited)

 

 

 

 

 

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.

Reconciliation of the information by business segment with Consolidated Financial Statements
TotalEnergies
(unaudited)

 

 

 

 

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.