UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
July 28, 2022
Commission File Number 001-10888
TotalEnergies SE
(Translation of registrant’s name into English)
2, place Jean Millier
La Défense 6
92400 Courbevoie
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-255641, 333-255641-01, 333-255641-02 AND 333-255641-03) OF TOTALENERGIES SE, TOTALENERGIES CAPITAL INTERNATIONAL, TOTALENERGIES CAPITAL CANADA LTD. AND TOTALENERGIES CAPITAL AND THE REGISTRATION STATEMENT ON FORM S-8 (NO. 333-264261) OF TOTALENERGIES SE, AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
TotalEnergies SE is providing on this Form 6-K its results for the second quarter of 2022 and six months ended June 30, 2022, a description of certain recent developments relating to its business, as well as a capitalization table as of June 30, 2022.
EXHIBIT INDEX
Exhibit No. | Description |
| |
Exhibit 99.1 | Results for the Second Quarter of 2022 and Six Months Ended June 30, 2022 |
| |
Exhibit 99.2 | |
| |
Exhibit 99.3 | |
| |
Exhibit 101.INS | Inline XBRL Instance Document |
| |
Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| |
Exhibit 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| |
Exhibit 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| |
Exhibit 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| |
Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TotalEnergies SE | ||
| | | |
| | | |
Date: July 28, 2022 | By: | /s/ MARIE-SOPHIE WOLKENSTEIN | |
| | Name: | Marie-Sophie Wolkenstein |
| | Title: | Company Treasurer |
Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The terms "TotalEnergies", "TotalEnergies company" and "Company" in this exhibit are used to designate TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE.
The financial information on pages 1-20 of this exhibit concerning TotalEnergies SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TotalEnergies”) with respect to the second quarter of 2022 and six months ended June 30, 2022 has been derived from TotalEnergies’ unaudited consolidated balance sheets as of June 30, 2022, unaudited statements of income, comprehensive income, cash flow and business segment information for the second quarter of 2022 and six months ended June 30, 2022 and unaudited consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2022 on pages 22 et seq. of this exhibit.
The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TotalEnergies’ audited consolidated financial statements and related notes, provided in TotalEnergies’ Annual Report on Form 20-F for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on March 25, 2022.
| A. | KEY FIGURES |
2Q22 | 1H22 | |||||||||||||
vs | in millions of dollars, | vs | ||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 |
| 2Q21 |
| except earnings per share and number of shares |
| 1H22 |
| 1H21 |
| 1H21 |
74,774 | 68,606 | 47,049 | +59% | Sales | 143,380 | 90,786 | +58% | |||||||
18,737 | 17,424 | 8,667 | x2.2 | Adjusted EBITDA1 | 36,161 | 16,837 | x2.1 | |||||||
10,500 |
| 9,458 |
| 4,032 |
| x2.6 | Adjusted net operating income2 from business segments |
| 19,958 |
| 7,519 |
| x2.7 | |
4,719 |
| 5,015 |
| 2,213 |
| x2.1 | Exploration & Production |
| 9,734 |
| 4,188 |
| x2.3 | |
2,555 |
| 3,051 |
| 891 |
| x2.9 | Integrated Gas, Renewables & Power |
| 5,606 |
| 1,876 |
| x3 | |
2,760 |
| 1,120 |
| 511 |
| x5.4 | Refining & Chemicals |
| 3,880 |
| 754 |
| x5.1 | |
466 |
| 272 |
| 417 |
| +12% | Marketing & Services |
| 738 |
| 701 |
| +5% | |
(1,546) |
| 43 |
| (680) |
| x2.3 | Net income (loss) from equity affiliates |
| (1,503) |
| 201 |
| ns | |
2.16 |
| 1.85 |
| 0.8 |
| x2.7 | Fully-diluted earnings per share ($) |
| 4.02 |
| 2.03 |
| x2.0 | |
2,592 |
| 2,614 |
| 2,646 |
| -2% | Fully-diluted weighted-average shares (millions) |
| 2,602 |
| 2,644 |
| -2% | |
5,692 |
| 4,944 |
| 2,206 |
| x2.6 | Net income (TotalEnergies share) |
| 10,636 |
| 5,550 |
| +92% | |
2,819 |
| 1,981 |
| 2,802 |
| +1% | Organic investments3 |
| 4,800 |
| 5,181 |
| -7% | |
2,076 |
| 922 |
| 396 |
| x5.2 | Net acquisitions4 |
| 2,998 |
| 1,986 |
| +51% | |
4,895 |
| 2,903 |
| 3,198 |
| +53% | Net investments5 |
| 7,798 |
| 7,167 |
| +9% | |
16,284 | 7,617 | 7,551 | x2.2 | Cash flow from operating activities6 | 23,901 | 13,149 | +82% | |||||||
of which: | ||||||||||||||
2,498 |
| (4,923) |
| 669 |
| x3.7 |
| (increase) decrease in working capital |
| (2,425) |
| (150) |
| x16.2 |
(399) | (369) | (409) | ns | financial charges | (767) | (793) | ns |
| 1 | Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) corresponds to the adjusted earnings before depreciation, depletion and impairment of tangible and intangible assets and mineral interests, income tax expense and cost of net debt, i.e., all operating income and contribution of equity affiliates to net income. The reconciliation of net income (TotalEnergies share) to adjusted EBITDA is set forth under “Reconciliation Of Net Income (TotalEnergies Share) To Adjusted EBITDA” on page 18 of this exhibit. |
| 2 | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See pages 4 et seq. “Analysis of business segment results” below for further details. |
| 3 | Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. |
| 4 | Net acquisitions = acquisitions - assets sales - other transactions with non-controlling interests (see page 19). |
| 5 | Net investments = organic investments + net acquisitions (see “Investments – Divestments’” on page 19). |
| 6 | See also “C. TotalEnergies results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit. |
1
Key figures of environment, greenhouse gas emissions and production
Environment* — liquids and gas price realizations, refining margins
|
|
| 2Q22 |
|
|
|
|
| 1H22 | |||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | 1H22 | 1H21 | 1H21 | ||||||||
113.9 |
| 102.2 |
| 69.0 |
| +65% | Brent ($/b) |
| 107.9 |
| 65.0 |
| +66% | |
7.5 |
| 4.6 |
| 3.0 |
| x2.5 | Henry Hub ($/Mbtu) |
| 6.1 |
| 2.9 |
| x2.1 | |
22.2 |
| 32.3 |
| 8.7 |
| x2.6 | NBP** ($/Mbtu) |
| 27.2 |
| 7.7 |
| x3.5 | |
27.0 |
| 31.1 |
| 10.0 |
| x2.7 | JKM*** ($/Mbtu) |
| 29.1 |
| 10.0 |
| x2.9 | |
102.9 |
| 90.1 |
| 62.9 |
| +64% | Average price of liquids ($/b) |
| 96.3 |
| 59.7 |
| +61% | |
11.01 |
| 12.27 |
| 4.43 |
| x2.5 | Average price of gas ($/Mbtu) |
| 11.65 |
| 4.23 |
| x2.8 | |
13.96 |
| 13.60 |
| 6.59 |
| x2.1 | Average price of LNG ($/Mbtu) |
| 13.77 |
| 6.33 |
| x2.2 | |
145.7 |
| 46.3 |
| 10.2 |
| x14.3 | Variable cost margin – Refining Europe, VCM ($/t)**** |
| 101.0 |
| 7.6 |
| x13.3 |
* The indicators are shown on page 21.
** NBP (National Balancing Point) is a virtual natural gas trading point in the United Kingdom for transferring rights in respect of physical gas and which is widely used as a price benchmark for the natural gas markets in Europe. NBP is operated by National Grid Gas plc, the operator of the UK transmission network.
*** JKM (Japan-Korea Marker) measures the prices of spot LNG trades in Asia. It is based on prices reported in spot market trades and/or bids and offers collected after the close of the Asian trading day at 16:30 Singapore time.
****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).
The average LNG selling price was $13.96/Mbtu in the second quarter 2022 and $13.77/Mbtu in the first half 2022, more than double the prices over the same periods in 2021, benefiting on a lagged basis from the increase in oil and gas indexes on long-term contracts as well as high spot gas prices over these periods.
Greenhouse gas emissions (GHG)1
2Q22 |
| 1Q22 |
| 2Q21 |
| 2Q22 |
| GHG emissions (MtCO2e) |
| 1H22 |
| 1H21 |
| 1H22 |
9.6 |
| 9.6* |
| 8.6* |
| +12% | Scope 1+2 from operated facilities2 |
| 19.3 |
| 17.8* |
| +9% | |
13.4 |
| 14.0 |
| — |
| — |
| Scope 1+2 – equity share |
| 27.4 |
| — |
| — |
94* |
| 98* |
| 95* |
| — |
| Scope 3 from energy product sales3 |
| 192* |
| 193* |
| — |
65* |
| 66* |
| 68* |
| -5% | of which Scope 3 Oil Worldwide4 |
| 131* |
| 137* |
| -4% | |
63* |
| 66* |
| 58* |
| +9% | Scope 1+2+3 in Europe5 |
| 129* |
| 121* |
| +6% | |
57* |
| 60* |
| 53* |
| +8% | of which Scope 3 in Europe |
| 117* |
| 111* |
| +6% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
* Excluding Covid effect.
1The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from the Company’s emissions or are considered as non-material and are therefore not counted.
2Scope 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 2021 annual report on Form 20-F filed on March 25, 2022) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2).
3TotalEnergies 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 and gas value chain, i.e., the higher of the two production volumes or sales to end customers. For TotalEnergies, in 2021 and 2022, the calculation of Scope 3 GHG emissions for the oil value chain considers oil products and biofuels sales (higher than production) and for the gas value chain, gas sales either as LNG or as part of direct sales to B2B/B2C customers (higher than or equivalent to marketable gas production).
4Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the sale of petroleum products (including biofuels).
2
5 Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 GHG emissions of facilities operated by the Company and indirect GHG emissions related to the use by customers of energy products (Scope 3) in the EU, Norway, United Kingdom and Switzerland.
2Q22 |
| 1Q22 |
| 2Q21 |
| 2Q22 vs 2Q21 |
| Methane emissions (ktCH4) |
| 1H22 |
| 1H21 |
| 1H22 vs 1H21 |
|
10 |
| 10 |
| 11 |
| -11% | Methane emissions from operated facilities |
| 20 |
| 24 |
| -18% | ||
13 |
| 12 |
| — |
| — |
| Methane emissions - equity share |
| 24 |
| — |
| — |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available
The evolution of Scope 1+2 emissions from the operated facilities is the result of the high-capacity utilization of combined-cycle gas turbines (CCGTs) and refineries in Europe, TotalEnergies responding by increasing energy output, thus contributing to energy security.
Production*
| 2Q22 |
|
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Hydrocarbon production | 1H22 | 1H21 | 1H21 | |||||||
2,738 |
| 2,843 | 2,747 | — | Hydrocarbon production (kboe/d) |
| 2,791 |
| 2,805 |
| -0.5% | |||
1,268 |
| 1,305 | 1,258 | +1% | Oil (including bitumen) (kb/d) |
| 1,287 |
| 1,265 |
| +2% | |||
1,470 | 1,538 | 1,489 | -1% | Gas (including condensates and associated NGL) (kboe/d) | 1,504 | 1,540 | -2% |
2,738 | 2,843 | 2,747 | — | Hydrocarbon production (kboe/d) | 2,791 | 2,805 | -0.5% | ||||||||
1,483 | 1,527 | 1,464 | +1% | Liquids (kb/d) | 1,505 | 1,486 | +1% | ||||||||
6,835 | 7,162 | 7,017 | -3% | Gas (Mcf/d) | 6,997 | 7,208 | -3% |
* Company production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).
Hydrocarbon production was 2,738 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2022, stable year-on-year, comprised of:
| ● | -2% portfolio effect, mainly related to the end of the operating licenses for Qatargas 1 and Bongkot North in Thailand, partially offset by the entry into the Sepia and Atapu fields in Brazil, |
Compared to the first quarter 2022, production was down 4%, mainly due to planned maintenance operations for -2%, production cuts in Nigeria and Libya for -1%, the end of Bongkot North's license in Thailand, partially offset by the entry into the production fields of Sepia and Atapu in Brazil.
Hydrocarbon production was 2,791 kboe/d in the first half 2022, down slightly by 0.5% year-on-year, comprised of:
| ● | +2% due to the start-up and ramp-up of projects, including Clov Phase 2 and Zinia Phase 2 in Angola, and Iara in Brazil, |
3
B.ANALYSIS OF BUSINESS SEGMENT RESULTS
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TotalEnergies and which is reviewed by the main operational decision-making body of TotalEnergies, namely the Executive Committee.
Due to their unusual nature or particular significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to occur again in following years.
In accordance with IAS 2, TotalEnergies values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its main competitors. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TotalEnergies’ Executive Committee and the accounting for these transactions under IFRS. IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices. TotalEnergies, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in TotalEnergies’ internal economic performance. IFRS precludes recognition of this fair value effect. Furthermore, TotalEnergies enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.
The adjusted business segment 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. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TotalEnergies’ interim consolidated financial statements, see pages 34 et seq. of this exhibit.
TotalEnergies measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above. Performance indicators excluding the adjustment items, such as adjusted incomes and ROACE are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
4
B.1. Integrated Gas, Renewables & Power segment (iGRP)
1. Production and sales of Liquefied Natural Gas (LNG) and electricity
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 |
| 2Q21 |
| Hydrocarbon production for LNG |
| 1H22 |
| 1H21 |
| 1H21 |
462 |
| 492 |
| 502 |
| -8% | iGRP (kboe/d) |
| 477 |
| 510 |
| -6% | |
53 |
| 60 |
| 52 |
| +1% | Liquids (kb/d) |
| 56 |
| 58 |
| -2% | |
2,233 |
| 2,349 |
| 2,464 |
| -9% | Gas (Mcf/d) |
| 2,291 |
| 2,470 |
| -7% |
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Liquefied Natural Gas in Mt | 1H22 | 1H21 | 1H21 | |||||||
11.7 |
| 13.3 |
| 10.5 |
| +11% | Overall LNG sales |
| 24.9 |
| 20.4 |
| +22% | |
4.1 |
| 4.4 |
| 4.2 |
| -1% | including sales from equity production* |
| 8.6 |
| 8.5 |
| — | |
10.2 |
| 11.9 |
| 8.8 |
| +16% | including sales by TotalEnergies from equity production and third-party purchases |
| 22.2 |
| 16.7 |
| +33% |
* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.
Hydrocarbon production for LNG was down 8% and 6% year-on-year, respectively, in the second quarter 2022 and the first half 2022, mainly due to the end of the Qatargas 1 contract and the decrease in supply to NLNG for security reasons in Nigeria. Production in Snøhvit, Norway, restarted in the second quarter.
Total LNG sales were up year-on-year by 11% in the second quarter 2022 and by 22% in the first half 2022, due to the increase in spot purchases to maximize the use of the Company's regasification capacity in Europe.
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Renewables & Electricity | 1H22 | 1H21 | 1H21 | |||||||
50.7 |
| 46.8 |
| 41.7 |
| +22% | Portfolio of renewable power generation gross capacity (GW)1,2 |
| 50.7 |
| 41.7 |
| +22% | |
11.6 | 10.7 | 8.3 | +40% | o/w installed capacity | 11.6 | 8.3 | +40% | |||||||
5.2 | 6.1 | 5.4 | -4% | o/w capacity in construction | 5.2 | 5.4 | -4% | |||||||
33.9 | 30.1 | 28.0 | +21% | o/w capacity in development | 33.9 | 28.0 | +21% | |||||||
26.8 | 26.8 | 22.6 | +19% | Gross renewables capacity with PPA (GW)1,2 | 26.8 | 22.6 | +19% | |||||||
38.4 | 34.4 | 30.7 | +25% | Portfolio of renewable power generation net capacity (GW)1,2 | 38.4 | 30.7 | +25% | |||||||
5.8 | 5.4 | 4.0 | +46% | o/w installed capacity | 5.8 | 4.0 | +46% | |||||||
3.7 | 4.2 | 3.1 | +17% | o/w capacity in construction | 3.7 | 3.1 | +17% | |||||||
28.9 | 24.8 | 23.6 | +22% | o/w capacity in development | 28.9 | 23.6 | +22% | |||||||
7.7 | 7.6 | 5.1 | +51% | Net power production (TWh)3 | 15.2 | 9.8 | +56% | |||||||
2.5 | 2.2 | 1.7 | +50% | incl. Power production from renewables | 4.7 | 3.2 | +47% | |||||||
6.2 | 6.1 | 5.8 | +6% | Clients power - BtB and BtC (Million)2 | 6.2 | 5.8 | +6% | |||||||
2.7 | 2.7 | 2.7 | +1% | Clients gas - BtB and BtC (Million)2 | 2.7 | 2.7 | +1% | |||||||
12.3 | 16.3 | 12.7 | -3% | Sales power - BtB and BtC (TWh) | 28.6 | 28.8 | — | |||||||
19.1 |
| 35.0 |
| 20.6 |
| -7% | Sales gas - BtB and BtC (TWh) |
| 54.1 |
| 56.8 |
| -5% |
1 Includes 20% of Adani Green Energy Ltd’s (AGEL) gross capacity effective first quarter 2021.
2 End of period data.
3 Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.
5
Gross installed renewable power generation capacity grew to 11.6 GW at the end of the second quarter of 2022, up 0.9 GW over the quarter, including 0.4 GW related to the start-up of Phase 1 of the Al Kharsaah photovoltaic project in Qatar.
Gross power generation capacity in development increased by 3.8 GW quarter-on-quarter, mainly due to the acquisition of Core Solar's portfolio of projects in the United States.
Net electricity generation stood at 7.7 TWh in the second quarter 2022 and 15.2 TWh in the first half 2022, up 51% and 56%, respectively, year-on-year, due to higher utilization rates of flexible power plants (CCGT) as well as growth in electricity generation from renewable sources.
2. Results
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
10,281 |
| 12,294 |
| 5,086 | x2.0 | External sales |
| 22,575 |
| 10,588 |
| x2.1 | ||
846 |
| 1,812 |
| 436 | x1.9 | Operating income |
| 2,658 |
| 1,060 |
| x2.5 | ||
823 |
| (2,500) |
| 419 | x2.0 | Net income (loss) from equity affiliates and other items |
| (1,677) |
| 682 |
| ns | ||
(260) |
| (294) |
| (56) | x4.6 | Tax on net operating income |
| (554) |
| (157) |
| x3.5 | ||
1,409 |
| (982) |
| 799 | x1.8 | Net operating income |
| 427 |
| 1,585 |
| -73% | ||
1,146 |
| 4,033 |
| 92 | x12.4 | Adjustments affecting net operating income |
| 5,179 |
| 291 |
| x17.8 | ||
2,555 |
| 3,051 |
| 891 | x2.9 | Adjusted net operating income* |
| 5,606 |
| 1,876 |
| x3 | ||
1,219 |
| 1,430 |
| 356 | x3.4 | including adjusted income from equity affiliates |
| 2,649 |
| 620 |
| x4.3 | ||
341 |
| 258 |
| 759 | -55% | Organic investments |
| 599 |
| 1,512 |
| -60% | ||
(58) |
| 641 |
| 166 | ns | Net acquisitions |
| 583 |
| 2,059 |
| -72% | ||
283 |
| 899 |
| 925 | -69% | Net investments |
| 1,182 |
| 3,571 |
| -67% |
*Detail of adjustment items shown in the business segment information starting on page 34 of this exhibit.
Adjusted net operating income for the iGRP segment was:
| ● | $2,555 million in the second quarter 2022, nearly triple year-on-year, due to higher LNG prices, the performance of the gas, LNG and electricity trading activities and the growing contribution of the Renewables & Electricity businesses, |
| ● | $5,606 million in the first half 2022, tripling over one year, for the same reasons. |
Adjusted net operating income for the iGRP segment excludes special items. The exclusion of special items had:
| ● | a positive impact of $1,146 million on the segment’s adjusted net operating income in the second quarter 2022, compared to a positive impact of $92 million in the second quarter 2021, and |
| ● | a positive impact of $5,179 million on the segment’s adjusted net operating income in the first half 2022, compared to a positive impact of $291 million in the first half 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)1 was:
| ● | 2.6 times higher over one year to $2,360 million in the second quarter 2022 compared to $904 million in the second quarter 2021, due to the increase in LNG prices, the performance of gas, LNG and electricity trading activities, and the increasing contribution of the Renewables & Electricity activities, |
| ● | 2.5 times higher over one year to $4,945 million in the first half 2022 compared to $1,963 million in the first half 2021, for the same reasons. |
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $3,970 million in the second quarter 2022, seven times greater than $567 million in the second quarter 2021. The difference between the segment's operating cash flow before working capital changes without financial changes (DACF) and the cash flow from operations excluding financial charges, except those related to leases in the second quarter 2022 is mainly due to margin call reductions and the positive impact on working capital requirements linked to the seasonality of the gas and electricity supply business, and |
| ● | $4,285 million in the first half 2022, 3.2 times greater than $1,347 million in the first half 2021. |
1 DACF= debt adjusted cash flow. Operating cash flow before working capital changes without financial charges of the segment is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges except those related to leases, excluding the impact of contracts recognized at fair value for the segment and including capital gains on the sale of renewable projects. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
6
B.2. Exploration & Production segment
1.Production
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Hydrocarbon production | 1H22 | 1H21 | 1H21 | |||||||
2,276 |
| 2,351 |
| 2,245 | +1% | EP (kboe/d) |
| 2,314 |
| 2,295 |
| +1% | ||
1,430 |
| 1,467 |
| 1,412 | +1% | Liquids (kb/d) |
| 1,449 |
| 1,428 |
| +1% | ||
4,602 |
| 4,813 |
| 4,553 | +1% | Gas (Mcf/d) |
| 4,706 |
| 4,738 |
| -1% |
2. Results
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars, except effective tax rate | 1H22 | 1H21 | 1H21 | |||||||
2,521 |
| 2,151 |
| 1,743 | +45% | External Sales |
| 4,672 |
| 3,257 |
| +43% | ||
8,454 |
| 7,600 |
| 3,180 | x2.7 | Operating income |
| 16,054 |
| 6,021 |
| x2.7 | ||
(3,668) |
| 242 |
| (1,243) | x3.0 | Net income (loss) from equity affiliates and other items |
| (3,426) |
| (973) |
| x3.5 | ||
47.2% | 47.0% | 38.2% | — | Effective tax rate* | 47.1% | 39.5% | — | |||||||
(3,876) |
| (3,863) |
| (1,195) | x3.2 | Tax on net operating income |
| (7,739) |
| (2,375) |
| x3.3 | ||
910 |
| 3,979 |
| 742 | +23% | Net operating income |
| 4,889 |
| 2,673 |
| x1.8 | ||
3,809 |
| 1,036 |
| 1,471 | x2.6 | Adjustments affecting net operating income |
| 4,845 |
| 1,515 |
| x2.2 | ||
4,719 |
| 5,015 |
| 2,213 | x2.1 | Adjusted net operating income** |
| 9,734 |
| 4,188 |
| x2.3 | ||
287 |
| 355 |
| 279 | +3% | including income from equity affiliates |
| 642 |
| 549 |
| +17% | ||
1,873 |
| 1,426 |
| 1,559 | +20% | Organic investments |
| 3,299 |
| 2,838 |
| +16% | ||
2,225 |
| 316 |
| 231 | x9.6 | Net acquisitions |
| 2,541 |
| 29 |
| x87.6 | ||
4,098 |
| 1,742 |
| 1,790 | x2.3 | Net investments |
| 5,840 |
| 2,867 |
| x2 |
*Effective tax rate = tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income).
**Detail of adjustment items shown in the business segment information starting on page 34 of this exhibit.
The Exploration & Production segment’s adjusted net operating income was:
| ● | $4,719 million in the second quarter 2022, double the second quarter 2021 at $2,213 million, due to the sharp increase in oil and gas prices, and |
| ● | $9,734 million in the first half of 2022, 2.3 times higher than the first half 2021 at $4,188 million, for the same reasons. |
Compared to the first quarter 2022, adjusted net operating income decreased by $296 million in the second quarter 2022 due to the decline in production and the impact of sanctions on the results of Russian assets.
Adjusted net operating income for the Exploration & Production segment excludes special items. The exclusion of special items had:
| ● | a positive impact of $3,809 million in the second quarter 2022 on the segment’s adjusted net operating income, compared to a positive impact of $1,471 million in the second quarter 2021, and |
| ● | a positive impact of $4,845 million in the first half 2022 on the segment’s adjusted net operating income, compared to a positive impact of $1,515 million in the first half 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)2 was:
| ● | $7,383 million in the second quarter 2022, an increase of 73% compared to $4,262 million in the second quarter 2021, and |
| ● | $14,686 million in the first half 2022, an increase of 82% compared to $8,086 million in the first half 2021, in line with higher oil and gas prices. |
2 DACF= debt adjusted cash flow. Operating cash flow before working capital changes without financial charges of the segment is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges except those related to leases. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above.
7
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $8,768 million in the second quarter 2022, an increase of 81% compared to $4,835 million in the second quarter 2021, and |
| ● | $14,536 million in the first half 2022, an increase of 70% compared to $8,571 million in the first half 2021. |
B.3. Downstream (Refining & Chemicals and Marketing & Services segments)
Results
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
61,968 |
| 54,157 |
| 40,220 | +54% | External sales |
| 116,125 |
| 76,934 |
| +51% | ||
4,958 |
| 2,997 |
| 1,534 | x3.2 | Operating income |
| 7,955 |
| 3,088 |
| x2.6 | ||
447 |
| 114 |
| 180 | x2.5 | Net income (loss) from equity affiliates and other items |
| 561 |
| 234 |
| x2.4 | ||
(1,162) |
| (750) |
| (457) | x2.5 | Tax on net operating income |
| (1,912) |
| (913) |
| x2.1 | ||
4,243 |
| 2,361 |
| 1,257 | x3.4 | Net operating income |
| 6,604 |
| 2,409 |
| x2.7 | ||
(1,017) |
| (969) |
| (329) | x3.1 | Adjustments affecting net operating income |
| (1,986) |
| (954) |
| x2.1 | ||
3,226 |
| 1,392 |
| 928 | x3.5 | Adjusted net operating income* |
| 4,618 |
| 1,455 |
| x3.2 | ||
586 |
| 292 |
| 468 | +25% | Organic investments |
| 878 |
| 803 |
| +9% | ||
(91) |
| (34) |
| (1) | ns | Net acquisitions |
| (125) |
| (104) |
| ns | ||
495 |
| 258 |
| 467 | +6% | Net investments |
| 753 |
| 699 |
| +8% |
* Detail of adjustment items shown in the business segment information starting on page 34 of this exhibit.
The Downstream segment’s operating cash flow before working capital changes without financial charges (DACF)2 was:
| ● | $3,548 million in the second quarter 2022, 2.4 times greater than $1,460 million in the second quarter 2021, and |
| ● | $5,444 million in the first half 2022, 2.3 times greater than $2,332 million in the first half 2021. |
The Downstream segment’s cash flow from operations excluding financial charges, except those related to leases was:
| ● | $4,106 million in the second quarter 2022, an increase of 54% compared to $2,669 million in the second quarter 2021, and |
| ● | $6,111 million in the first half 2022, an increase of 41% compared to $4,330 million in the first half 2021. |
B.4. Refining & Chemicals segment
1. Refinery and petrochemicals throughput and utilization rates
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Refinery throughput and utilization rate* | 1H22 | 1H21 | 1H21 | |||||||
1,575 |
| 1,317 |
| 1,070 | +47% | Total refinery throughput (kb/d) |
| 1,448 |
| 1,109 |
| +31% | ||
395 |
| 252 |
| 148 | x2.7 | France |
| 324 |
| 131 |
| x2.5 | ||
648 |
| 605 |
| 495 | +31% | Rest of Europe |
| 627 |
| 578 |
| +8% | ||
532 |
| 460 |
| 427 | +25% | Rest of world |
| 497 |
| 400 |
| +24% | ||
88% | 74% | 58% |
| Utilization rate based on crude only** |
| 81% | 58% |
|
* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year, excluding Grandpuits (shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021.
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Petrochemicals production and utilization rate | 1H22 | 1H21 | 1H21 | |||||||
1,206 |
| 1,404 |
| 1,424 | -15% | Monomers* (kt) |
| 2,611 |
| 2,829 |
| -8% | ||
1,187 |
| 1,274 |
| 1,212 | -2% | Polymers (kt) |
| 2,461 |
| 2,377 |
| +4% | ||
71% | 86% | 88% |
| Vapocracker utilization rate** | 78% | 88% |
* Olefins
** Based on olefins production from steamcrackers and their treatment capacity at the start of the year.
8
Refinery throughput:
| ● | increased by 47% year-on-year in the second quarter 2022, due to the recovery in demand, particularly in Europe and the United States, the restart this quarter of the Donges refinery in France and the Leuna refinery in Germany, which was scheduled for a major turnaround in the second quarter 2021; |
| ● | increased by 31% in the first half 2022 over one year for the same reasons as well as the restart, in 2021, of the distillation unit of the Normandy refinery in France. |
Monomer production was down 15% in the second quarter 2022 and 8% in the first half 2022 year-on-year, mainly due to planned turnarounds at the Antwerp in Belgium and Feyzin in France as well as construction affecting sites in the U.S.
2. Results
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
35,061 |
| 31,008 |
| 20,853 |
| +68% | External sales |
| 66,069 |
| 40,054 |
| +65% | |
4,029 |
| 2,302 |
| 955 |
| x4.2 | Operating income |
| 6,331 |
| 1,948 |
| x3.3 | |
349 |
| 156 |
| 123 |
| x2.8 | Net income (loss) from equity affiliates and other items |
| 505 |
| 211 |
| x2.4 | |
(866) |
| (525) |
| (281) |
| x3.1 | Tax on net operating income |
| (1,391) |
| (561) |
| x2.5 | |
3,512 |
| 1,933 |
| 797 |
| x4.4 | Net operating income |
| 5,445 |
| 1,598 |
| x3.4 | |
(752) |
| (813) |
| (286) |
| x2.6 | Adjustments affecting net operating income |
| (1,565) |
| (844) |
| +85% | |
2,760 |
| 1,120 |
| 511 |
| x5.4 | Adjusted net operating income* |
| 3,880 |
| 754 |
| x5.1 | |
313 |
| 197 |
| 279 |
| +12% | Organic investments |
| 510 |
| 501 |
| +2% | |
(34) |
| — |
| 2 |
| -100% | Net acquisitions |
| (34) |
| (55) |
| ns | |
279 |
| 197 |
| 281 |
| -1% | Net investments |
| 476 |
| 446 |
| +7% |
* Detail of adjustment items shown in the business segment information starting on page 34 of this exhibit.
Adjusted net operating income for the Refining-Chemicals segment was:
| ● | $2,760 million in the second quarter 2022, 5.4 times greater than $511 million in the second quarter 2021, due to higher refined volumes in response to the recovery in demand in Europe and the United States, very high margins on distillates and gasoline in the context of reduced imports of Russian petroleum products, as well as the outperformance of crude oil and petroleum product trading activities, |
| ● | $3,880 million in the first half 2022, 5.1 times greater than $754 million in the second quarter 2021, for the same reasons. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had:
| ● | a negative impact of $752 million on the segment’s adjusted net operating income in the second quarter 2022, compared to a negative impact of $331 million in the second quarter 2021, and |
| ● | a negative impact of $1,597 million on the segment’s adjusted net operating income in the first half 2022, compared to a negative impact of $937 million in the first half 2021. |
The exclusion of special items had:
| ● | no effect on the segment’s adjusted net operating income, compared to a positive impact of $45 million in the second quarter 2021, and |
| ● | a positive impact of $32 million on the segment’s adjusted net operating income in the first half 2022, compared to a positive impact of $93 million in the first half 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)2 was:
| ● | $2,963 million in the second quarter 2022, 3.9 times greater than $753 million in the second quarter 2021, and |
| ● | $ 4,396 million in the first half 2022, 3.8 times greater than $1,147 million in the first half 2021. |
The segment’s cash flow from operating activities excluding financial charges, except those related to leases was:
| ● | $3,526 million in the second quarter 2022, an increase of 58% compared to $2,232 million in the second quarter 2021, and |
| ● | $4,633 million in the first half 2022, an increase of 44% compared to $3,228 million in the first half 2021. |
9
B.5. Marketing & Services segment
1. Refined product sales
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | Sales in kb/d* | 1H22 | 1H21 | 1H21 | |||||||
1,477 |
| 1,452 |
| 1,473 |
| — | Total Marketing & Services sales |
| 1,464 |
| 1,458 |
| — | |
817 |
| 790 |
| 791 |
| +3% | Europe |
| 804 |
| 783 |
| +3% | |
660 |
| 662 |
| 682 |
| -3% | Rest of world |
| 661 |
| 674 |
| -2% |
* Excludes trading and bulk refining sales.
Sales of petroleum products were stable in the second quarter 2022 and the first half 2022 compared to the same periods last year, as the recovery in aviation and network activities worldwide offset the decline in sales to commercial and industrial customers, particularly in Europe.
2. Results
|
|
| 2Q22 |
|
|
|
| 1H22 | ||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
26,907 |
| 23,149 |
| 19,367 |
| +39% | External sales |
| 50,056 |
| 36,880 |
| +36% | |
929 |
| 695 |
| 579 |
| x1.6 | Operating income |
| 1,624 |
| 1,140 |
| +42% | |
98 |
| (42) |
| 57 |
| x1.7 | Net income (loss) from equity affiliates and other items |
| 56 |
| 23 |
| x2.4 | |
(296) |
| (225) |
| (176) |
| +68% | Tax on net operating income |
| (521) |
| (352) |
| +48% | |
731 |
| 428 |
| 460 |
| +59% | Net operating income |
| 1,159 |
| 811 |
| +43% | |
(265) |
| (156) |
| (43) |
| x6.2 | Adjustments affecting net operating income |
| (421) |
| (110) |
| x3.8 | |
466 |
| 272 |
| 417 |
| +12% | Adjusted net operating income* |
| 738 |
| 701 |
| +5% | |
273 |
| 95 |
| 189 |
| +44% | Organic investments |
| 368 |
| 302 |
| +22% | |
(57) |
| (34) |
| (3) |
| ns | Net acquisitions |
| (91) |
| (49) |
| ns | |
216 |
| 61 |
| 186 |
| +16% | Net investments |
| 277 |
| 253 |
| +9% |
* Detail of adjustment items shown in the business segment information starting on page 34 of this exhibit.
Adjusted net operating income for the Marketing & Services segment was:
| ● | $466 million in the second quarter 2022, up 12% year-on-year compared to $417 million, and |
| ● | $738 million in the first half 2022, up 5% year-on-year compared to $701 million, due mainly to the recovery of the network and aviation activities. |
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had:
| ● | a negative impact of $275 million on the segment’s adjusted net operating income in the second quarter 2022, compared to a negative impact of $50 million in the second quarter 2021, and |
| ● | a negative impact of $503 million on the segment’s adjusted net operating income in the first half 2022, compared to a negative impact of $148 million in the first half 2021. |
The exclusion of special items had:
| ● | a positive impact of $10 million on the segment’s adjusted net operating income in the second quarter 2022, compared to a positive impact of $7 million in the second quarter 2021, and |
| ● | a positive impact of $82 million on the segment’s adjusted net operating income in the first half 2022, compared to a positive impact of $38 million in the first half 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)2 was:
| ● | $585 million in the second quarter 2022, a decrease of 17% compared to $707 million in the second quarter 2021, and |
| ● | $1,048 million in the first half 2022, a decrease of 12% compared to $1,185 million in the first half 2021, mainly due to the fiscal effect of higher prices on the valuation of petroleum product inventories. |
The segment’s cash flow from operating activities excluding financial charges, except those related to leases was:
| ● | $580 million in the second quarter 2022, an increase of 33% compared to $437 million in the second quarter 2021, and |
| ● | $1,478 million in the first half 2022, an increase of 34% compared to $1,102 million in the first half 2021. |
10
C.TOTALENERGIES RESULTS
1. Net income (TotalEnergies share)
Net income (TotalEnergies share) was:
| ● | $5,692 million in the second quarter 2022, 2.6 times greater than $2,206 million in the second quarter 2021. |
| ● | $10,636 million in the first half 2022, 1.9 times greater than $5,550 million in the first half 2021. |
Adjusted net income (TotalEnergies share) was:
| ● | $9,796 million in the second quarter 2022, 2.8 times greater than $3,463 million in the second quarter 2021, due to higher oil and gas prices, refining margins and the good performance of trading activities. |
| ● | $18,773 million in the first half 2022, 2.9 times greater than compared to $6,466 million in the first half 2021, for the same reasons. |
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value3 .
Total adjustments affecting net income4 were -$4,104 million in the second quarter 2022, notably due to the fact that TotalEnergies recorded in its accounts a new $3.5 billion impairment charge related mainly to the potential impact of international sanctions on the value of its Novatek stake.
2. Fully-diluted shares and share buybacks
The number of fully-diluted shares was 2,578 million on June 30, 2022.
As part of its shareholder return policy, as announced in April 2022, TotalEnergies repurchased 36.1 million shares for cancellation in the second quarter of 2022 for $2 billion. Share buybacks amounted to $3 billion in the first half of the year.
3. Acquisitions - Asset sales
Acquisitions were:
| ● | $2,464 million in the second quarter 2022, including notably $2,232 million in payments to Petrobras related to the award of the Atapu and Sepia Production Sharing Contracts in Brazil as well as the bonus related to the offshore wind concession in North Carolina in the U.S., |
| ● | $3,864 million in the first half 2022, including the above items as well as the bonus paid to the State of Brazil for the award of the Atapu and Sepia Production Sharing Contracts and the bonus related to the New York Bight offshore wind concession in the United States. |
Asset sales were:
| ● | $388 million in the second quarter 2022, including the partial sale of the Landivisiau power generation plant in France, |
| ● | $866 million in the first half 2022, including the above items as well as a payment related to the sale of interests in the CA1 offshore block in Brunei and the sale by SunPower Corp. (NASDAQ: SPWR) of its Enphase shares. |
4. Cash flow
TotalEnergies’ cash flow from operating activities was:
| ● | $16,284 million in the second quarter 2022, 2.2 times greater than $7,551 million in the second quarter 2021, and |
| ● | $23,901 million in the first half 2022, 1.8 times greater than $13,149 million in the first half 2021. |
The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sales and including organic loan repayment from equity affiliates was $(3,051) million in the second quarter 2022, compared to $(1,199) million in the second quarter 2021. In the second quarter 2022, the change in working capital was a decrease of $2,498 million in accordance with IFRS. The difference of $553 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $1,151 million, (ii) less the mark-to-market effect of iGRP’s contracts of $337 million, (iii) less the capital gains from renewables project sale of $23 million and (iv) less the organic loan repayments from equity affiliates of $238 million.
3 See “Analysis of business segment results” on page 4 and “Adjustment Items To Net Income (TotalEnergies Share)” on page 18 for further details.
4 Details shown on pages 18 and the notes to the consolidated financial statements for the second quarter 2022.
11
The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sales and including organic loan repayment from equity affiliates was $958 million in the first half 2022, compared to $(1,431) million in the first half 2021. In the first half 2022, the change in working capital was an increase of $2,425 million in accordance with IFRS. The difference of $1,467 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $2,406 million, (ii) less the mark-to-market effect of iGRP’s contracts of $189 million, (iii) less the capital gains from renewables project sale of $25 million and (iv) less the organic loan repayments from equity affiliates of $725 million.
Operating cash flow before working capital changes5 was $13,233 million in the second quarter 2022, 2.1 times greater than $6,352 million in the second quarter 2021 and $24,859 million in the first half 2022, 2.1 times greater than $11,718 million in the first half 2021.
Operating cash flow before working capital changes without financial charges (DACF)6 was $13,631 million in the second quarter 2022, two times greater than $6,761 million in the second quarter 2021 and $25,626 million in the first half 2022, two times greater than $12,511 million in the first half 2021.
The cash flow from operating activities of $16,284 million in the second quarter 2022, compared to the operating cash flow before working capital changes of $13,233 million in the same quarter, reflects the positive impact of a $3.3 billion decrease in working capital requirements, mainly due to changes in margin calls, an increase in tax liabilities related to higher prices, and the seasonality of the gas and electricity supply activity.
TotalEnergies’ net cash flow7 was:
| ● | $8,338 million in the second quarter 2022 compared to $3,154 million a year earlier, reflecting the $6.9 billion increase in operating cash flow before working capital changes and the $1.7 billion increase in net investments to $4,895 million in the second quarter 2022, |
| ● | $17,061 million in the first half 2022 compared to $4,551 million a year earlier, reflecting the $13.1 billion increase in operating cash flow before working capital changes and the $631 million increase in net investments to $7,798 million in the first half 2022. |
D. PROFITABILITY
Return on equity was 27.1% for the twelve months ended June 30, 2022.
| 07/01/2021- |
| 04/01/2021- |
| 07/01/2020- | |
in millions of dollars | 06/30/2022 | 3/31/2022 | 06/30/2021 | |||
Adjusted net income |
| 30,716 |
| 24,382 |
| 8,786 |
Average adjusted shareholders' equity |
| 113,333 |
| 111,794 |
| 105,066 |
Return on equity (ROE) |
| 27.1% | 21.8% | 8.4% |
Return on average capital employed was 23.1% for the twelve months ended June 30, 2022.
| 07/01/2021- |
| 04/01/2021- |
| 07/01/2020- | |
in millions of dollars | 06/30/2022 | 3/31/2022 | 06/30/2021 | |||
Adjusted net operating income |
| 32,177 |
| 25,803 |
| 10,252 |
Average capital employed |
| 139,377 |
| 143,517 |
| 142,172 |
ROACE |
| 23.1% | 18.0% | 7.2% |
5 Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sales. For information on the replacement cost method, refer to “B. Analysis of Business Segment Results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.
6 DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.
7 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
12
E. 2022 SENSITIVITIES*
|
|
| Estimated | |||
Estimated impact | impact on cash | |||||
on adjusted net | flow from | |||||
Change | operating income | operations | ||||
Dollar |
| +/- 0.1 $ per € |
| -/+ 0.1 B$ |
| ~0 B$ |
Average liquids price** |
| +/- 10$/b |
| +/- 2.7 B$ |
| +/- 3.2 B$ |
European gas price – NBP |
| +/- 10 $/Mbtu |
| +/- 3.0 B$ |
| +/- 3.0 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 2022. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed on page 21.
** In a 60 $/b Brent environment.
F. SUMMARY AND OUTLOOK
Oil and gas prices, while volatile, have remained at high levels since the beginning of the third quarter. Due to the limited additional spare capacity of production and refining at the global level, market disruptions linked to the sanctions against Russia and the counter-sanctions implemented by Russia, the supply-demand balance of energy markets are expected to remain fragile and support prices, especially gas.
In the oil markets however, the price of Brent retreated to a level close to $100/bbl in July, due to negative expectations on global growth, and therefore on oil demand, in response to high energy prices and inflation.
Gas prices are expected to remain high, particularly in Europe where gas indices exceeded $50/Mbtu in early July for winter 2022-23 futures contracts, due to fears of a shutdown in pipeline exports from Russia to Europe. Local electricity markets are also impacted by gas prices.
The Company is mobilizing its human and financial resources to contribute to the diversification of Europe's gas supply by maximizing the use of its LNG regasification capacity. Given the evolution of oil and gas prices in recent months and the lag effect on pricing formulas, TotalEnergies anticipates that its average LNG selling price should be more than $15/Mbtu in the third quarter of 2022. However, the Company's LNG operations will be affected by the outage of the Freeport LNG plant in the third quarter.
Despite the approximately 40 kboe/d increase in planned maintenance in the third quarter compared to the second quarter, TotalEnergies expects production to be stable compared to the second quarter due to the contribution of new projects, notably in Brazil with the production ramp-up of Mero 1 and the entry into Sépia and Atapu. The Refining business aims to maintain a high utilization rate.
With nearly $8 billion in investments recorded at the end of June, TotalEnergies anticipates net investments of around $16 billion in 2022, 25% of which will be in Renewables & Electricity.
Given the strong cash flow generation and strong balance sheet, the Board of Directors has decided to prioritize countercyclical opportunities to accelerate the Company's transformation. The shareholder return policy is reinforced through dividend growth of 5% and the continuation of the share buyback program of $2 billion in the third quarter.
13
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business activities and industrial strategy of TotalEnergies. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of TotalEnergies, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by TotalEnergies, it being specified that the means to be deployed do not depend solely on TotalEnergies. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by TotalEnergies as of the date of this document.
These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Except for its ongoing obligations to disclose material information as required by applicable securities laws, TotalEnergies does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
For additional factors, you should read the information set forth under “Item 3. -3.1 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TotalEnergies’ Form 20-F for the year ended December 31, 2021.
14
RESULTS FROM RUSSIAN ASSETS
Russian Upstream Assets (M$) |
| 2Q22 |
| 1Q22 |
| 1H22 |
| 2021 |
Adjusted net operating income |
| 707 |
| 1,021 |
| 1,727 |
| 2,092 |
Operating cash flow before working capital changes |
| 857 |
| 288 |
| 1,144 |
| 1,613 |
Capital Employed by TotalEnergies in Russia as at June 30, 2022 was $8,760 million, after taking into account the $3,513 million impairment and the impact of the evolution of the ruble/dollar exchange rate between March 31, 2022 and June 30, 2022, which leads to a $2,066 million revaluation of Capital Employed on the balance sheet as at June 30, 2022.
OPERATING INFORMATION BY SEGMENT
Company’s production (Exploration & Production + iGRP)
2Q22 | 1H22 | |||||||||||||
vs | Combined liquids and gas | vs | ||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| production by region (kboe/d) |
| 1H22 |
| 1H21 |
| 1H21 | |
965 |
| 1,050 |
| 985 | -2% | Europe and Central Asia |
| 1,007 |
| 1,018 |
| -1% | ||
460 |
| 498 |
| 533 | -14% | Africa |
| 479 |
| 542 |
| -12% | ||
680 |
| 670 |
| 654 | +4% | Middle East and North Africa |
| 675 |
| 652 |
| +3% | ||
420 |
| 386 |
| 378 | +11% | Americas |
| 403 |
| 377 |
| +7% | ||
213 |
| 240 |
| 197 | +8% | Asia-Pacific |
| 227 |
| 216 |
| +5% | ||
2,738 |
| 2,843 |
| 2,747 | — | Total production |
| 2,791 |
| 2,805 |
| — | ||
690 |
| 715 |
| 750 | -8% | includes equity affiliates |
| 702 |
| 740 |
| -5% |
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| Liquids production by region (kb/d) |
| 1H22 |
| 1H21 |
| 1H21 | |
315 |
| 373 |
| 351 | -10% | Europe and Central Asia |
| 343 |
| 363 |
| -5% | ||
351 |
| 371 |
| 399 | -12% | Africa |
| 362 |
| 407 |
| -11% | ||
546 |
| 538 |
| 502 | +9% | Middle East and North Africa |
| 542 |
| 500 |
| +8% | ||
231 |
| 201 |
| 183 | +26% | Americas |
| 216 |
| 181 |
| +19% | ||
40 |
| 45 |
| 29 | +36% | Asia-Pacific |
| 42 |
| 35 |
| +21% | ||
1,483 |
| 1,527 |
| 1,464 | +1% | Total production |
| 1,505 |
| 1,486 |
| +1% | ||
201 |
| 210 |
| 213 | -6% | includes equity affiliates |
| 206 |
| 207 |
| -1% |
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| Gas production by region (Mcf/d) |
| 1H22 |
| 1H21 |
| 1H21 | |
3,492 |
| 3,635 |
| 3,411 | +2% | Europe and Central Asia |
| 3,563 |
| 3,523 |
| +1% | ||
545 |
| 643 |
| 680 | -20% | Africa |
| 594 |
| 686 |
| -13% | ||
742 |
| 727 |
| 847 | -12% | Middle East and North Africa |
| 734 |
| 845 |
| -13% | ||
1,063 |
| 1,041 |
| 1,095 | -3% | Americas |
| 1,052 |
| 1,098 |
| -4% | ||
993 |
| 1,116 |
| 984 | +1% | Asia-Pacific |
| 1,054 |
| 1,056 |
| — | ||
6,835 |
| 7,162 |
| 7,017 | -3% | Total production |
| 6,997 |
| 7,208 |
| -3% | ||
2,633 |
| 2,714 |
| 2,895 | -9% | includes equity affiliates |
| 2,673 |
| 2,875 |
| -7% |
15
Downstream (Refining & Chemicals and Marketing & Services)
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| Petroleum product sales by region (kb/d) |
| 1H22 |
| 1H21 |
| 1H21 | |
1,814 |
| 1,635 |
| 1,521 | +19% | Europe |
| 1,724 |
| 1,540 |
| +12% | ||
734 |
| 761 |
| 663 | +11% | Africa |
| 747 |
| 665 |
| +12% | ||
922 |
| 775 |
| 799 | +15% | Americas |
| 849 |
| 785 |
| +8% | ||
705 |
| 531 |
| 492 | +44% | Rest of world |
| 618 |
| 493 |
| +25% | ||
4,176 |
| 3,701 |
| 3,475 | +20% | Total consolidated sales |
| 3,939 |
| 3,483 |
| +13% | ||
409 |
| 409 |
| 334 | +22% | Includes bulk sales |
| 409 |
| 368 |
| +11% | ||
2,290 |
| 1,840 |
| 1,668 | +37% | Includes trading |
| 2,065 |
| 1,658 |
| +25% |
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| Petrochemicals production* (kt) |
| 1H22 |
| 1H21 |
| 1H21 | |
1,023 |
| 1,260 |
| 1,166 | -12% | Europe |
| 2,282 |
| 2,512 |
| -9% | ||
603 |
| 638 |
| 725 | -17% | Americas |
| 1,240 |
| 1,235 |
| — | ||
768 |
| 781 |
| 744 | +3% |
| Middle-East and Asia |
| 1,549 |
| 1,459 |
| +6% |
* Olefins, polymers
16
RENEWABLES
| 2Q22 |
| 1Q22 | |||||||||||||||||
|
| Onshore |
| Offshore |
|
|
|
| Onshore |
| Offshore |
|
| |||||||
Installed power generation gross capacity (GW) (1),(2) | Solar |
| Wind |
| Wind | Other | Total | Solar |
| Wind |
| Wind | Other | Total | ||||||
France |
| 0.7 |
| 0.5 |
| 0.0 |
| 0.1 |
| 1.3 |
| 0.7 |
| 0.5 |
| 0.0 |
| 0.1 |
| 1.3 |
Rest of Europe |
| 0.2 |
| 1.1 |
| 0.0 |
| 0.0 |
| 1.3 |
| 0.2 |
| 1.0 |
| 0.0 |
| 0.0 |
| 1.3 |
Africa |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.1 |
Middle East |
| 0.7 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.7 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.3 |
North America |
| 1.1 |
| 0.0 |
| 0.0 |
| 0.0 |
| 1.1 |
| 0.9 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.9 |
South America |
| 0.4 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.7 |
| 0.4 |
| 0.3 |
| 0.0 |
| 0.0 |
| 0.7 |
India |
| 4.9 |
| 0.2 |
| 0.0 |
| 0.0 |
| 5.1 |
| 4.8 |
| 0.2 |
| 0.0 |
| 0.0 |
| 5.0 |
Asia-Pacific |
| 1.2 |
| 0.0 |
| 0.1 |
| 0.0 |
| 1.2 |
| 1.0 |
| 0.0 |
| 0.1 |
| 0.0 |
| 1.1 |
Total |
| 9.2 |
| 2.1 |
| 0.1 |
| 0.2 |
| 11.6 |
| 8.4 |
| 2.1 |
| 0.1 |
| 0.1 |
| 10.7 |
| 2Q22 |
| 1Q22 | |||||||||||||||||
|
| Onshore |
| Offshore |
|
|
|
| Onshore |
| Offshore |
|
| |||||||
Power generation gross capacity from renewables in construction (GW) (1),(2) | Solar | Wind |
| Wind | Other | Total | Solar |
| Wind |
| Wind | Other | Total | |||||||
France |
| 0.2 | 0.2 |
| 0.0 |
| 0.1 |
| 0.4 |
| 0.1 |
| 0.2 |
| 0.0 |
| 0.1 |
| 0.4 | |
Rest of Europe |
| 0.0 | 0.0 |
| 1.1 |
| 0.0 |
| 1.1 |
| 0.0 |
| 0.0 |
| 1.1 |
| 0.0 |
| 1.2 | |
Africa |
| 0.0 | 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 | |
Middle East |
| 0.4 | 0.0 |
| 0.0 |
| 0.0 |
| 0.4 |
| 0.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.8 | |
North America |
| 1.3 | 0.0 |
| 0.0 |
| 0.0 |
| 1.3 |
| 1.5 |
| 0.0 |
| 0.0 |
| 0.0 |
| 1.5 | |
South America |
| 0.0 | 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 | |
India |
| 0.9 | 0.3 |
| 0.0 |
| 0.0 |
| 1.2 |
| 1.0 |
| 0.3 |
| 0.0 |
| 0.0 |
| 1.3 | |
Asia-Pacific |
| 0.1 | 0.0 |
| 0.6 |
| 0.0 |
| 0.7 |
| 0.3 |
| 0.0 |
| 0.6 |
| 0.0 |
| 0.9 | |
Total |
| 2.8 | 0.5 |
| 1.7 |
| 0.1 |
| 5.2 |
| 3.7 |
| 0.6 |
| 1.7 |
| 0.1 |
| 6.1 | |
2Q22 | 1Q22 | |||||||||||||||||||
|
| Onshore |
| Offshore |
|
|
| Onshore |
| Offshore |
|
| ||||||||
Power generation gross capacity from renewables in development (GW) (1),(2) | Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | ||||||||||
France | 2.3 | 0.5 | 0.0 | 0.0 | 2.8 | 2.8 | 0.5 | 0.0 | 0.0 | 3.3 | ||||||||||
Rest of Europe |
| 4.8 |
| 0.3 |
| 4.4 |
| 0.1 |
| 9.5 |
| 4.7 |
| 0.3 |
| 4.4 |
| 0.0 |
| 9.3 |
Africa |
| 0.6 |
| 0.1 |
| 0.0 |
| 0.1 |
| 0.8 |
| 0.7 |
| 0.1 |
| 0.0 |
| 0.1 |
| 0.9 |
Middle East |
| 1.8 |
| 0.0 |
| 0.0 |
| 0.0 |
| 1.8 |
| 1.6 |
| 0.0 |
| 0.0 |
| 0.0 |
| 1.6 |
North America |
| 6.2 |
| 0.1 |
| 4.0 |
| 0.8 |
| 11.0 |
| 2.0 |
| 0.1 |
| 3.0 |
| 0.7 |
| 5.9 |
South America |
| 0.6 |
| 0.0 |
| 0.0 |
| 0.2 |
| 0.8 |
| 0.7 |
| 0.3 |
| 0.0 |
| 0.2 |
| 1.2 |
India |
| 3.9 |
| 0.1 |
| 0.0 |
| 0.0 |
| 4.0 |
| 4.0 |
| 0.1 |
| 0.0 |
| 0.0 |
| 4.1 |
Asia-Pacific |
| 1.7 |
| 0.2 |
| 1.2 |
| 0.1 |
| 3.2 |
| 1.4 |
| 0.0 |
| 2.1 |
| 0.1 |
| 3.6 |
Total |
| 21.7 |
| 1.3 |
| 9.6 |
| 1.3 |
| 33.9 |
| 17.9 |
| 1.5 |
| 9.5 |
| 1.2 |
| 30.1 |
1 Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.
2 End-of-period data.
| In operation |
| In construction |
| In development | |||||||||||||||||||||||||
Gross renewables capacity covered by PPA | Onshore | Offshore | Onshore | Offshore | Onshore | Offshore | ||||||||||||||||||||||||
at 06/30/2022 (GW) |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
| Solar |
| Wind |
| Wind |
| Other |
| Total |
Europe |
| 0.9 |
| 1.6 |
| — |
| X |
| 2.6 |
| X |
| X |
| 0.8 |
| X |
| 1.2 |
| 3.4 |
| 0.2 |
| — |
| X |
| 3.6 |
Asia |
| 6.0 |
| 0.2 |
| X |
| X |
| 6.4 |
| 0.9 |
| 0.3 |
| 0.6 |
| — |
| 1.8 |
| 4.3 |
| X |
| — |
| X |
| 4.5 |
North America |
| 1.0 |
| X |
| — |
| X |
| 1.1 |
| 1.3 |
| — |
| — |
| X |
| 1.3 |
| X |
| X |
| — |
| X |
| X |
Rest of World |
| 1.2 |
| 0.3 |
| — |
| X |
| 1.5 |
| 0.4 |
| — |
| — |
| X |
| 0.5 |
| 1.9 |
| — |
| — |
| 0.3 |
| 2.2 |
Total |
| 9.2 |
| 2.1 |
| X |
| X |
| 11.5 |
| 2.8 |
| 0.5 |
| 1.4 |
| X |
| 4.8 |
| 9.7 |
| 0.3 |
| — |
| 0.5 |
| 10.5 |
X not specified, capacity < 0.2 GW.
17
In operation | In construction | In development | ||||||||||||||||||||||||||||
PPA average price at 06/30/2022 |
|
| Onshore |
| Offshore |
|
|
|
| Onshore |
| Offshore |
|
|
|
| Onshore |
| Offshore |
|
| |||||||||
($/MWh) | Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | |||||||||||||||
Europe |
| 201 |
| 115 |
| — |
| X |
| 145 |
| X |
| X |
| 72 |
| X |
| 75 |
| 44 |
| 85 |
| — |
| X |
| 46 |
Asia |
| 70 |
| 43 |
| X |
| X |
| 70 |
| 55 |
| 51 |
| 254 |
| — |
| 115 |
| 39 |
| X |
| — |
| X |
| 39 |
North America |
| 121 |
| X |
| — |
| X |
| 125 |
| 28 |
| — |
| — |
| X |
| 28 |
| X |
| X |
| — |
| X |
| X |
Rest of World |
| 90 |
| 54 |
| — |
| X |
| 82 |
| 18 |
| — |
| — |
| X |
| 18 |
| 76 |
| — |
| — |
| — |
| 76 |
Total |
| 90 |
| 100 |
| X |
| X |
| 93 |
| 38 |
| 64 |
| 146 |
| X |
| 73 |
| 43 |
| 81 |
| — |
| 145 |
| 45 |
X not specified, PPA relating to a capacity < 0.2 GW.
ADJUSTMENT ITEMS TO NET INCOME (TOTALENERGIES SHARE)
2Q22 |
| 1Q22 |
| 2Q21 | in millions of dollars |
| 1H22 |
| 1H21 | |
(4,546) |
| (4,993) |
| (1,588) | Special items affecting net income (TotalEnergies share) |
| (9,539) |
| (1,930) | |
— |
| — |
| (1,379) | Gain (loss) on asset sales |
| — |
| (1,379) | |
(8) |
| (3) |
| (110) | Restructuring charges |
| (11) |
| (271) | |
(3,719) |
| (5,061) |
| (49) | Impairments |
| (8,780) |
| (193) | |
(819) |
| 71 |
| (50) | Other |
| (748) |
| (87) | |
993 |
| 1,040 |
| 375 | After-tax inventory effect: FIFO vs. replacement cost |
| 2,033 |
| 1,064 | |
(551) |
| (80) |
| (44) | Effect of changes in fair value |
| (631) |
| (50) | |
(4,104) |
| (4,033) |
| (1,257) | Total adjustments affecting net income |
| (8,137) |
| (916) |
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED EBITDA
|
|
| 2Q22 vs |
|
|
|
| 1H22 vs | ||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
5,692 |
| 4,944 |
| 2,206 |
| x2.6 | Net income - TotalEnergies share |
| 10,636 |
| 5,550 |
| +92% | |
4,104 |
| 4,033 |
| 1,257 |
| x3.3 | Less: adjustment items to net income (TotalEnergies share) |
| 8,137 |
| 916 |
| x8.9 | |
9,796 |
| 8,977 |
| 3,463 |
| x2.8 | Adjusted net income - TotalEnergies share |
| 18,773 |
| 6,466 |
| x2.9 | |
|
|
|
| Adjusted items | - | |||||||||
89 |
| 76 |
| 88 |
| +1% | Add: non-controlling interests |
| 165 |
| 147 |
| +12% | |
5,274 |
| 4,724 |
| 1,485 |
| x3.6 | Add: income taxes |
| 9,998 |
| 2,931 |
| x3.4 | |
3,038 |
| 3,148 |
| 3,105 |
| -2% | Add: depreciation, depletion and impairment of tangible assets and mineral interests |
| 6,186 |
| 6,285 |
| -2% | |
98 |
| 96 |
| 94 |
| +4% | Add: amortization and impairment of intangible assets |
| 194 |
| 197 |
| -2% | |
572 |
| 462 |
| 501 |
| +14% | Add: financial interest on debt |
| 1,034 |
| 967 |
| +7% | |
(130) |
| (59) |
| (69) |
| ns | Less: financial income and expense from cash & cash equivalents |
| (189) |
| (156) |
| ns | |
18,737 |
| 17,424 |
| 8,667 |
| x2.2 | Adjusted EBITDA |
| 36,161 |
| 16,837 |
| x2.1 |
18
INVESTMENTS – DIVESTMENTS
2Q22 | 1H22 | |||||||||||||
vs | vs | |||||||||||||
2Q22 |
| 1Q22 |
| 2Q21 | 2Q21 |
| in millions of dollars |
| 1H22 |
| 1H21 |
| 1H21 | |
2,819 |
| 1,981 |
| 2,802 | +1% | Organic investments (a) |
| 4,800 |
| 5,181 |
| -7% | ||
98 |
| 114 |
| 245 | -60% | Capitalized exploration |
| 212 |
| 488 |
| -57% | ||
277 |
| 234 |
| 380 | -27% | Increase in non-current loans |
| 511 |
| 672 |
| -24% | ||
(174) |
| (435) |
| (89) | ns | Repayment of non-current loans, excluding organic loan repayment from equity affiliates |
| (609) |
| (185) |
| ns | ||
(190) |
| — |
| (4) | -100% | Change in debt from renewable projects (TotalEnergies share) |
| (190) |
| (171) |
| ns | ||
2,464 |
| 1,400 |
| 662 | x3.7 | Acquisitions (b) |
| 3,864 |
| 2,870 |
| +35% | ||
388 |
| 478 |
| 266 | +46% | Asset sales (c) |
| 866 |
| 884 |
| -2% | ||
176 |
| (2) |
| 5 | x35.2 | Change in debt from renewable projects (partner share) |
| 174 |
| 105 |
| +66% | ||
2,076 |
| 922 |
| 396 | x5.2 | Net acquisitions |
| 2,998 |
| 1,986 |
| +51% | ||
4,895 |
| 2,903 |
| 3,198 | +53% | Net investments (a + b - c) |
| 7,798 |
| 7,167 |
| +9% | ||
— | — | — | ns | Other transactions with non-controlling interests (d) | — | — | ns | |||||||
(238) |
| (487) |
| (78) | ns | Organic loan repayment from equity affiliates (e) |
| (725) |
| (108) |
| ns | ||
366 |
| (2) |
| 9 | x40.7 | Change in debt from renewable projects financing* (f) |
| 364 |
| 276 |
| +32% | ||
37 |
| 36 |
| 25 | +48% | Capex linked to capitalized leasing contracts (g) |
| 73 |
| 47 |
| +55% | ||
4 | — | — | ns | Expenditures related to carbon credits ( h ) | 4 | — | ns | |||||||
4,982 |
| 2,378 |
| 3,104 | +61% | Cash flow used in investing activities |
| 7,360 |
| 7,288 |
| +1% |
* Change in debt from renewable projects (TotalEnergies share and partner share).
CASH FLOW
|
| 2Q22 |
|
|
|
| 1H22 | |||||||
vs | vs | |||||||||||||
2Q22 | 1Q22 | 2Q21 | 2Q21 | in millions of dollars | 1H22 | 1H21 | 1H21 | |||||||
13,631 |
| 11,995 |
| 6,761 | x2 | Operating cash flow before working capital changes w/o financial charges (DACF) |
| 25,626 |
| 12,511 |
| x2 | ||
(399) |
| (369) |
| (409) | ns | Financial charges |
| (767) |
| (793) |
| ns | ||
13,233 |
| 11,626 |
| 6,352 | x2.1 | Operating cash flow before working capital changes (a)* |
| 24,859 |
| 11,718 |
| x2.1 | ||
2,161 |
| (4,775) |
| 814 | x2.7 | (Increase) decrease in working capital** |
| (2,614) |
| 259 |
| ns | ||
1,151 |
| 1,255 |
| 463 | x2.5 | Inventory effect |
| 2,406 |
| 1,346 |
| +79% | ||
(23) |
| (2) |
| (0) | ns | Capital gain from renewable projects sale |
| (25) |
| (66) |
| ns | ||
(238) |
| (487) |
| (78) | ns | Organic loan repayment from equity affiliates |
| (725) |
| (108) |
| ns | ||
16,284 |
| 7,617 |
| 7,551 | x2.2 | Cash flow from operations |
| 23,901 |
| 13,149 |
| +82% | ||
|
|
| ||||||||||||
2,819 |
| 1,981 |
| 2,802 | +1% | Organic investments (b) |
| 4,800 |
| 5,181 |
| -7% | ||
10,414 |
| 9,645 |
| 3,550 | x2.9 | Free cash flow after organic investments, w/o net asset sales (a - b) |
| 20,059 |
| 6,537 |
| x3.1 | ||
|
|
| ||||||||||||
4,895 |
| 2,903 |
| 3,198 | +53% | Net investments (c) |
| 7,798 |
| 7,167 |
| +9% | ||
8,338 |
| 8,723 |
| 3,154 | x2.6 | Net cash flow (a - c) |
| 17,061 |
| 4,551 |
| x3.7 |
* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale. Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
** Changes in working capital are presented excluding the mark-to-market effect of iGRP’s contracts.
19
GEARING RATIO
In millions of dollars |
| 06/30/2022 | 03/31/2022 | 06/30/2021 | ||
Current borrowings1 |
| 14,589 | 16,759 | 15,795 | ||
Other current financial liabilities |
| 401 | 502 | 322 | ||
Current financial assets1,2 | (7,697) | (7,231) | (4,326) | |||
Net financial assets classified as held for sale |
| (14) | (38) | — | ||
Non-current financial debt1 |
| 39,233 | 38,924 | 44,687 | ||
Non-current financial assets1 |
| (692) | (587) | (2,726) | ||
Cash and cash equivalents |
| (32,848) | (31,276) | (28,643) | ||
Net debt (a) |
| 12,972 | 17,053 | 25,109 | ||
Shareholders’ equity – TotalEnergies share |
| 116,688 | 116,480 | 108,096 | ||
Non-controlling interests |
| 3,309 | 3,375 | 2,480 | ||
Shareholders’ equity (b) |
| 119,997 | 119,855 | 110,576 | ||
Net-debt-to-capital ratio = a / (a+b) |
| 9.8% | 12.5% | 18.5% | ||
Leases (c) | 7,963 | 8,028 | 7,702 | |||
Net-debt-to-capital ratio including leases (a+c) / (a+b+c) |
| 14.9% | 17.3% | 22.9% |
1 Excludes leases receivables and leases debts.
2 Including initial margins held as part of the Company's activities on organized markets.
RETURN ON AVERAGE CAPITAL EMPLOYED
Twelve months ended June 30, 2022
|
|
|
| |||||
Integrated Gas, | ||||||||
Renewables & | Exploration & | Refining & | Marketing | |||||
in millions of dollars | Power | Production | Chemicals | & Services | ||||
Adjusted net operating income |
| 9,973 |
| 15,985 |
| 5,035 |
| 1,655 |
Capital employed at 6/30/2021* |
| 49,831 |
| 76,013 |
| 9,285 |
| 8,439 |
Capital employed at 6/30/2022* |
| 54,174 |
| 70,248 |
| 7,958 |
| 7,475 |
ROACE |
| 19.2% | 21.9% | 58.4% | 20.8% |
Twelve months ended March 31, 2022
| Integrated |
|
|
| ||||
Gas, | ||||||||
Renewables & | Exploration & | Refining & | Marketing | |||||
in millions of dollars | Power | Production | Chemicals | & Services | ||||
Adjusted net operating income |
| 8,309 |
| 13,479 |
| 2,786 |
| 1,606 |
Capital employed at 3/31/2021* |
| 48,423 |
| 78,170 |
| 10,403 |
| 8,198 |
Capital employed at 3/31/2022* |
| 54,740 |
| 71,518 |
| 8,847 |
| 7,751 |
ROACE |
| 16.1% | 18.0% | 28.9% | 20.1% |
Twelve months ended June 30, 2021
| Integrated Gas, |
|
|
| ||||
Renewables & | Exploration & | Refining & | Marketing & | |||||
in millions of dollars | Power | Production | Chemicals | Services | ||||
Adjusted net operating income |
| 2,415 |
| 6,057 |
| 836 |
| 1,494 |
Capital employed at 6/30/2020* |
| 43,527 |
| 79,096 |
| 12,843 |
| 8,366 |
Capital employed at 6/30/2021* |
| 49,831 |
| 76,013 |
| 9,285 |
| 8,439 |
ROACE |
| 5.2% | 7.8% | 7.6% | 17.8% |
* At replacement cost (excluding after-tax inventory effect).
20
MAIN INDICATORS
|
|
| 2Q22 |
| 1Q22 |
| 4Q21 |
| 3Q21 |
| 2Q21 | |
€/$ |
| 1.06 |
| 1.12 |
| 1.14 |
| 1.18 |
| 1.21 | ||
Brent |
| ($/b) |
| 113.9 |
| 102.2 |
| 79.8 |
| 73.5 |
| 69.0 |
Average liquids price* |
| ($/b) |
| 102.9 |
| 90.1 |
| 72.6 |
| 67.1 |
| 62.9 |
Average gas price* (1) |
| ($/Mbtu) |
| 11.01 |
| 12.27 |
| 11.38 |
| 6.33 |
| 4.43 |
Average LNG price** (1) |
| ($/Mbtu) |
| 13.96 |
| 13.60 |
| 13.12 |
| 9.10 |
| 6.59 |
Variable Cost Margin, European refining*** |
| ($/t) |
| 145.7 |
| 46.3 |
| 16.7 |
| 8.8 |
| 10.2 |
* Sales in $ / sales in volume for consolidated affiliates.
** Sales in $ / sales in volume for consolidated and equity affiliates.
*** This indicator represents the average margin on variable costs realized by TotalEnergies’ European refining business (equal to the difference between the sales of refined products realized by TotalEnergies’ European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons).
(1) Does not take into account gas and LNG trading activities, respectively.
Disclaimer: Data is based on TotalEnergies’ reporting and is not auditeded.
21
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| 2nd quarter |
| 1st quarter |
| 2nd quarter | |
(M$)(a) | 2022 | 2022 | 2021 | |||
Sales | | | | |||
Excise taxes | ( | ( | ( | |||
Revenues from sales | | | | |||
Purchases, net of inventory variation | ( | ( | ( | |||
Other operating expenses | ( | ( | ( | |||
Exploration costs | ( | ( | ( | |||
Depreciation, depletion and impairment of tangible assets and mineral interests | ( | ( | ( | |||
Other income | | | | |||
Other expense | ( | ( | ( | |||
Financial interest on debt | ( | ( | ( | |||
Financial income and expense from cash & cash equivalents | | | | |||
Cost of net debt | ( | ( | ( | |||
Other financial income | | | | |||
Other financial expense | ( | ( | ( | |||
Net income (loss) from equity affiliates | ( | | ( | |||
Income taxes | ( | ( | ( | |||
Consolidated net income | | | | |||
TotalEnergies share | | | | |||
Non-controlling interests | | | | |||
Earnings per share ($) | | | | |||
Fully-diluted earnings per share ($) | | | |
(a) Except for per share amounts.
22
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| 2nd quarter |
| 1st quarter |
| 2nd quarter | |
(M$) | 2022 | 2022 | 2021 | |||
Consolidated net income | | | | |||
Other comprehensive income |
|
| ||||
Actuarial gains and losses | | - | | |||
Change in fair value of investments in equity instruments | ( | | | |||
Tax effect | ( | | ( | |||
Currency translation adjustment generated by the parent company | ( | ( | | |||
Items not potentially reclassifiable to profit and loss | ( | ( | | |||
Currency translation adjustment | | | ( | |||
Cash flow hedge | | ( | ( | |||
Variation of foreign currency basis spread | | | ( | |||
share of other comprehensive income of equity affiliates, net amount | | ( | ( | |||
Other | ( | - | ( | |||
Tax effect | ( | | | |||
Items potentially reclassifiable to profit and loss | | | ( | |||
Total other comprehensive income (net amount) | | ( | | |||
Comprehensive income | | | | |||
TotalEnergies share | | | | |||
Non-controlling interests | | | |
23
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| 1st half |
| 1st half | |
(M$)(a) | 2022 | 2021 | ||
Sales | | | ||
Excise taxes | ( | ( | ||
Revenues from sales | | | ||
Purchases, net of inventory variation | ( | ( | ||
Other operating expenses | ( | ( | ||
Exploration costs | ( | ( | ||
Depreciation, depletion and impairment of tangible assets and mineral interests | ( | ( | ||
Other income | | | ||
Other expense | ( | ( | ||
Financial interest on debt | ( | ( | ||
Financial income and expense from cash & cash equivalents | | | ||
Cost of net debt | ( | ( | ||
Other financial income | | | ||
Other financial expense | ( | ( | ||
Net income (loss) from equity affiliates | ( | | ||
Income taxes | ( | ( | ||
Consolidated net income | | | ||
TotalEnergies share | | | ||
Non-controlling interests | | | ||
Earnings per share ($) | | | ||
Fully-diluted earnings per share ($) | | |
(a) Except for per share amounts.
24
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| 1st half |
| 1st half | |
(M$) | 2022 | 2021 | ||
Consolidated net income | | | ||
Other comprehensive income |
| |||
Actuarial gains and losses | | | ||
Change in fair value of investments in equity instruments | ( | | ||
Tax effect | ( | ( | ||
Currency translation adjustment generated by the parent company | ( | ( | ||
Items not potentially reclassifiable to profit and loss | ( | ( | ||
Currency translation adjustment | | | ||
Cash flow hedge | | | ||
Variation of foreign currency basis spread | | ( | ||
share of other comprehensive income of equity affiliates, net amount | | | ||
Other | ( | - | ||
Tax effect | ( | ( | ||
Items potentially reclassifiable to profit and loss | | | ||
Total other comprehensive income (net amount) | | ( | ||
Comprehensive income | | | ||
TotalEnergies share | | | ||
Non-controlling interests | | |
25
CONSOLIDATED BALANCE SHEET
TotalEnergies
| June 30, |
| March 31, |
| December 31, |
| June 30, | |
2022 | 2022 | 2021 | 2021 | |||||
(M$) | (unaudited) | (unaudited) | (unaudited) | |||||
ASSETS |
|
|
|
| ||||
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets, net |
| |
| |
| |
| |
Property, plant and equipment, net |
| |
| |
| |
| |
Equity affiliates : investments and loans |
| |
| |
| |
| |
Other investments |
| |
| |
| |
| |
Non-current financial assets |
| |
| |
| |
| |
Deferred income taxes |
| |
| |
| |
| |
Other non-current assets |
| |
| |
| |
| |
Total non-current assets |
| |
| |
| |
| |
Current assets |
|
|
|
|
|
|
| |
Inventories, net |
| |
| |
| |
| |
Accounts receivable, net |
| |
| |
| |
| |
Other current assets |
| |
| |
| |
| |
Current financial assets |
| |
| |
| |
| |
Cash and cash equivalents |
| |
| |
| |
| |
Assets classified as held for sale |
| |
| |
| |
| |
Total current assets |
| |
| |
| |
| |
Total assets |
| |
| |
| |
| |
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
| |
Shareholders’ equity |
|
|
|
|
|
|
| |
Common shares |
| |
| |
| |
| |
Paid-in surplus and retained earnings |
| |
| |
| |
| |
Currency translation adjustment |
| ( |
| ( |
| ( |
| ( |
Treasury shares |
| ( |
| ( |
| ( |
| ( |
Total shareholders' equity - TotalEnergies share |
| |
| |
| |
| |
Non-controlling interests |
| |
| |
| |
| |
Total shareholders' equity |
| |
| |
| |
| |
Non-current liabilities |
|
|
|
|
|
|
| |
Deferred income taxes |
| |
| |
| |
| |
Employee benefits |
| |
| |
| |
| |
Provisions and other non-current liabilities |
| |
| |
| |
| |
Non-current financial debt |
| |
| |
| |
| |
Total non-current liabilities |
| |
| |
| |
| |
Current liabilities |
|
|
|
| ||||
Accounts payable |
| |
| |
| |
| |
Other creditors and accrued liabilities |
| |
| |
| |
| |
Current borrowings |
| |
| |
| |
| |
Other current financial liabilities |
| |
| |
| |
| |
Liabilities directly associated with the assets classified as held for sale |
| |
| |
| |
| |
Total current liabilities |
| |
| |
| |
| |
Total liabilities & shareholders' equity |
| |
| |
| |
| |
26
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| 2nd quarter |
| 1st quarter |
| 2nd quarter | |
(M$) | 2022 | 2022 | 2021 | |||
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
| |||
Consolidated net income | | | | |||
Depreciation, depletion, amortization and impairment | | | | |||
Non-current liabilities, valuation allowances and deferred taxes | | | | |||
(Gains) losses on disposals of assets | ( | ( | ( | |||
Undistributed affiliates’ equity earnings | | | | |||
(Increase) decrease in working capital | | ( | | |||
Other changes, net | | | ( | |||
Cash flow from operating activities | | | | |||
CASH FLOW USED IN INVESTING ACTIVITIES |
|
| ||||
Intangible assets and property, plant and equipment additions | ( | ( | ( | |||
Acquisitions of subsidiaries, net of cash acquired | ( | - | ( | |||
Investments in equity affiliates and other securities | ( | ( | ( | |||
Increase in non-current loans | ( | ( | ( | |||
Total expenditures | ( | ( | ( | |||
Proceeds from disposals of intangible assets and property, plant and equipment | | | | |||
Proceeds from disposals of subsidiaries, net of cash sold | | | - | |||
Proceeds from disposals of non-current investments | | | | |||
Repayment of non-current loans | | | | |||
Total divestments | | | | |||
Cash flow used in investing activities | ( | ( | ( | |||
CASH FLOW USED IN FINANCING ACTIVITIES |
|
| ||||
Issuance (repayment) of shares: |
|
| ||||
- Parent company shareholders | | - | | |||
- Treasury shares | ( | ( | - | |||
Dividends paid: | ||||||
- Parent company shareholders | ( | ( | ( | |||
- Non-controlling interests | ( | ( | ( | |||
Net issuance (repayment) of perpetual subordinated notes | ( | | - | |||
Payments on perpetual subordinated notes | ( | ( | ( | |||
Other transactions with non-controlling interests | ( | | - | |||
Net issuance (repayment) of non-current debt | | | | |||
Increase (decrease) in current borrowings | ( | | ( | |||
Increase (decrease) in current financial assets and liabilities | ( | | ( | |||
Cash flow from (used in) financing activities | ( | | ( | |||
Net increase (decrease) in cash and cash equivalents | | | ( | |||
Effect of exchange rates | ( | ( | | |||
Cash and cash equivalents at the beginning of the period | | | | |||
Cash and cash equivalents at the end of the period | | | |
27
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| 1st half |
| 1st half | |
(M$) | 2022 | 2021 | ||
CASH FLOW FROM OPERATING ACTIVITIES |
|
| ||
Consolidated net income | | | ||
Depreciation, depletion, amortization and impairment | | | ||
Non-current liabilities, valuation allowances and deferred taxes | | | ||
(Gains) losses on disposals of assets | ( | ( | ||
Undistributed affiliates’ equity earnings | | | ||
(Increase) decrease in working capital | ( | ( | ||
Other changes, net | | | ||
Cash flow from operating activities | | | ||
CASH FLOW USED IN INVESTING ACTIVITIES |
|
| ||
Intangible assets and property, plant and equipment additions | ( | ( | ||
Acquisitions of subsidiaries, net of cash acquired | ( | ( | ||
Investments in equity affiliates and other securities | ( | ( | ||
Increase in non-current loans | ( | ( | ||
Total expenditures | ( | ( | ||
Proceeds from disposals of intangible assets and property, plant and equipment | | | ||
Proceeds from disposals of subsidiaries, net of cash sold | | | ||
Proceeds from disposals of non-current investments | | | ||
Repayment of non-current loans | | | ||
Total divestments | | | ||
Cash flow used in investing activities | ( | ( | ||
CASH FLOW USED IN FINANCING ACTIVITIES |
|
| ||
Issuance (repayment) of shares: |
|
| ||
- Parent company shareholders | | | ||
- Treasury shares | ( | ( | ||
Dividends paid: | ||||
- Parent company shareholders | ( | ( | ||
- Non-controlling interests | ( | ( | ||
Net issuance (repayment) of perpetual subordinated notes | - | | ||
Payments on perpetual subordinated notes | ( | ( | ||
Other transactions with non-controlling interests | ( | ( | ||
Net issuance (repayment) of non-current debt | | ( | ||
Increase (decrease) in current borrowings | ( | ( | ||
Increase (decrease) in current financial assets and liabilities | | ( | ||
Cash flow from (used in) financing activities | ( | ( | ||
Net increase (decrease) in cash and cash equivalents | | ( | ||
Effect of exchange rates | ( | ( | ||
Cash and cash equivalents at the beginning of the period | | | ||
Cash and cash equivalents at the end of the period | | |
28
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TotalEnergies
(unaudited)
Paid-in | Shareholders’ | |||||||||||||||||
surplus and | Currency | equity - | Non- | Total | ||||||||||||||
Common shares issued | retained | translation | Treasury shares | TotalEnergies | controlling | shareholders’ | ||||||||||||
(M$) |
| Number |
| Amount |
| earnings |
| adjustment |
| Number |
| Amount |
| Share |
| interests |
| equity |
As of January 1, 2021 | |
| | | ( | ( |
| ( | | | | |||||||
Net income of the first half 2021 | - |
| - | | - | - |
| - | | | | |||||||
Other comprehensive income | - |
| - | | ( | - |
| - | ( | | ( | |||||||
Comprehensive Income | - |
| - | | ( | - |
| - | | | | |||||||
Dividend | - |
| - | ( | - | - |
| - | ( | ( | ( | |||||||
Issuance of common shares | |
| | | - | - |
| - | | - | | |||||||
Purchase of treasury shares | - |
| - | - | - | ( |
| ( | ( | - | ( | |||||||
Sale of treasury shares(a) | - |
| - | ( | - | |
| | - | - | - | |||||||
Share-based payments | - |
| - | | - | - |
| - | | - | | |||||||
Share cancellation | ( |
| ( | ( | - | |
| | - | - | - | |||||||
Net issuance (repayment) of perpetual subordinated notes | - |
| - | | - | - |
| - | | - | | |||||||
Payments on perpetual subordinated notes | - |
| - | ( | - | - |
| - | ( | - | ( | |||||||
Other operations with non-controlling interests | - |
| - | | ( | - |
| - | | ( | - | |||||||
Other items | - |
| - | | ( | - |
| - | | | | |||||||
As of June 30, 2021 | |
| | | ( | ( |
| ( | | | | |||||||
Net income of the second half 2021 | - |
| - | | - | - |
| - | | | | |||||||
Other comprehensive income | - |
| - | | ( | - |
| - | ( | ( | ( | |||||||
Comprehensive Income | - |
| - | | ( | - |
| - | | | | |||||||
Dividend | - |
| - | ( | - | - |
| - | ( | ( | ( | |||||||
Issuance of common shares | - |
| - | - | - | - |
| - | - | - | - | |||||||
Purchase of treasury shares | - |
| - | - | - | ( |
| ( | ( | - | ( | |||||||
Sale of treasury shares(a) | - |
| - | - | - | |
| - | - | - | - | |||||||
Share-based payments | - |
| - | | - | - |
| - | | - | | |||||||
Share cancellation | - |
| - | - | - | - |
| - | - | - | - | |||||||
Net issuance (repayment) of perpetual subordinated notes | - |
| - | - | - | - |
| - | - | - | - | |||||||
Payments on perpetual subordinated notes | - |
| - | ( | - | - |
| - | ( | - | ( | |||||||
Other operations with non-controlling interests | - |
| - | | - | - |
| - | | | | |||||||
Other items | - |
| - | | - | - |
| - | | | | |||||||
As of December 31, 2021 | |
| | | ( | ( |
| ( | | | | |||||||
Net income of the first half 2022 | - |
| - | | - | - |
| - | | | | |||||||
Other comprehensive income | - |
| - | | ( | - |
| - | | ( | | |||||||
Comprehensive Income | - |
| - | | ( | - |
| - | | | | |||||||
Dividend | - |
| - | ( | - | - |
| - | ( | ( | ( | |||||||
Issuance of common shares | |
| | | - | - |
| - | | - | | |||||||
Purchase of treasury shares | - |
| - | - | - | ( |
| ( | ( | - | ( | |||||||
Sale of treasury shares(a) | - |
| - | ( | - | |
| | - | - | - | |||||||
Share-based payments | - |
| - | | - | - |
| - | | - | | |||||||
Share cancellation | ( |
| ( | ( | - | |
| | - | - | - | |||||||
Net issuance (repayment) of perpetual subordinated notes | - |
| - | ( | - | - |
| - | ( | - | ( | |||||||
Payments on perpetual subordinated notes | - |
| - | ( | - | - |
| - | ( | - | ( | |||||||
Other operations with non-controlling interests | - |
| - | | - | - |
| - | | ( | ( | |||||||
Other items | - |
| - | ( | - | - |
| - | ( | | ( | |||||||
As of June 30, 2022 | |
| | | ( | ( |
| ( | | | | |||||||
(a)
29
TotalEnergies
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST SIX MONTHS 2022
(unaudited)
1) Basis of preparation of the consolidated financial statements
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).
The interim consolidated financial statements of TotalEnergies SE and its subsidiaries (the Company) as of June 30, 2022, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.
The accounting principles applied for the consolidated financial statements at June 30, 2022, are consistent with those used for the financial statements at December 31, 2021. Since January 1, 2020, the Company has early adopted the amendments to IFRS 7 and IFRS 9 relating to the interest rate benchmark reform phase II. In particular, these amendments allow to maintain the hedge accounting qualification of interest rate derivatives.
The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2022 requires the General Management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.
These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by General Management and therefore could be revised as circumstances change or as a result of new information.
The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2021.
The interim consolidated financial statements are impacted by the Russian-Ukrainian conflict described in paragraph 7 Other risks and commitments. The Company has taken this environment into account in its estimates and recorded in its accounts as of March 31, 2022, an impairment of $(
Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the General Management of the Company applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.
30
2) Changes in the Company structure
2.1) Main acquisitions and divestments
| ● | Integrated Gas, Renewables & Power |
| ● | On February 28, 2022, TotalEnergies has successfully been named a winner of maritime lease area OCS-A 0538 by the BOEM (Bureau of Ocean Energy Management) in the New York Bight auction in United States. |
This bid for the development of an offshore wind farm off the U.S. East Coast was won for a consideration of $
Located up to
| ● | Exploration & Production |
| ● | In January 2022, TotalEnergies has decided to initiate the contractual process of withdrawing from the Yadana field and from MGTC in Myanmar, both as operator and as shareholder, without any financial compensation for TotalEnergies. |
As a result, TotalEnergies registered an impairment of assets of $(
This withdrawal became effective on 20 July 2022.
| ● | In February 2022, TotalEnergies announced its decision not to sanction and so to withdraw from the North Platte deepwater project in the US Gulf of Mexico. |
The decision not to continue with the project was taken as TotalEnergies has better opportunities of allocation of its capital within its global portfolio.
An impairment of the project’s assets has been recorded in the consolidated financial statements of the first quarter of 2022, for an amount of $(
| ● | In April 2022, TotalEnergies finalized the acquisition of the Atapu and Sepia pre-salt oil fields offered by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) in the Transfer of Rights (ToR) Surplus bidding round, that took place in December 2021. |
The details of the acquisition are presented in Note 2.2 to the consolidated financial statements.
2.2) Major business combinations
| ● | Exploration & Production |
| ● | Transfer of rights in the Atapu and Sepia fields in Brazil |
On 26 April 2022, Petrobras transferred to TotalEnergies
On 27 April 2022, Petrobras also transferred to TotalEnergies
In accordance with IFRS 3, TotalEnergies is assessing the fair value of identifiable acquired assets, liabilities and contingent liabilities on the basis of available information. This assessment will be finalised within 12 months following the acquisition date.
31
2.3) Divestment projects
As of June 30, 2022, there is no material divestment project recorded in “assets held for sale”.
3) Business segment information
Description of the business segments
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TotalEnergies and which is reviewed by the main operational decision-making body of the Company, namely the Executive Committee.
The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The organization of the Company’s activities is structured around the
- | An Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity; |
- | An Exploration & Production segment; Starting September 2021, it notably includes the carbon neutrality activity that was previously reported in the Integrated Gas, Renewables & Power segment; |
- | A Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining, petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping; |
- | A Marketing & Services segment including the global activities of supply and marketing in the field of petroleum products; |
In addition the Corporate segment includes holdings operating and financial activities.
Adjustment items
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
Adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) The inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost methods.
32
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for certain transactions differences between the internal measure of performance used by TotalEnergies’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, whose future effects are recorded at fair value in the Company’s internal economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
33
3.1) Information by business segment
1sthalf 2022 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| ( |
| ( |
| |
| |
| |
| - |
| ( |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
| ( | ||||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Net income - TotalEnergies share |
|
|
|
|
|
|
| |
1sthalf 2022 (adjustments)(a) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Operating expenses |
| ( |
| ( |
| |
| |
| ( |
| - |
| |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| - |
| ( |
| ( |
| - |
| ( |
Operating income (b) |
| ( |
| ( |
| |
| |
| ( |
| - |
| ( |
Net income (loss) from equity affiliates and other items |
| ( |
| ( |
| |
| ( |
| |
| - |
| ( |
Tax on net operating income |
| |
| |
| ( |
| ( |
| |
| - |
| ( |
Net operating income (b) |
| ( |
| ( |
| |
| |
| ( |
| - |
| ( |
Net cost of net debt |
|
| | |||||||||||
Non-controlling interests |
|
| ( | |||||||||||
Net income - TotalEnergies share |
|
| ( | |||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||
- On operating income | - | - | | | - | |||||||||
- On net operating income | - | - | | | - |
1sthalf 2022 (adjusted) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| |
| |
| |
| |
| - |
| |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
| ( | ||||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Adjusted net income - TotalEnergies share |
|
|
|
|
|
|
| |
1sthalf 2022 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| |
| |
| |
| |
| |
|
| | |
Total divestments |
| |
| |
| |
| |
| |
|
| | |
Cash flow from operating activities |
| |
| |
| |
| |
| ( |
|
| |
34
1sthalf 2021 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| ( |
| |
| |
| ( |
| - |
| ( |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
| |
1sthalf 2021 (adjustments)(a) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Operating expenses |
| ( |
| ( |
| |
| |
| - |
| - |
| |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| - |
| ( |
| - |
| - |
| - |
| ( |
Operating income (b) |
| ( |
| ( |
| |
| |
| - |
| - |
| |
Net income (loss) from equity affiliates and other items |
| ( |
| ( |
| |
| ( |
| ( |
| - |
| ( |
Tax on net operating income |
| |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Net operating income (b) |
| ( |
| ( |
| |
| |
| ( |
| - |
| ( |
Net cost of net debt |
|
|
|
|
|
|
|
| | |||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Net income - TotalEnergies share |
|
|
|
|
|
|
| ( | ||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||
(b) Of which inventory valuation effect |
|
|
|
|
|
|
| |||||||
- On operating income |
| - | - |
| |
| |
| - |
|
| |||
- On net operating income |
| - |
| - |
| |
| |
| - |
|
|
1sthalf 2021 (adjusted) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| |
| |
| |
| |
| - |
| |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Adjusted net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
| ( | ||||||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Adjusted net income - TotalEnergies share |
|
|
|
|
|
|
| |
1sthalf 2021 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| |
| |
| |
| |
| |
|
| | |
Total divestments |
| |
| |
| |
| |
| |
|
| | |
Cash flow from operating activities |
| |
| |
| |
| |
| ( |
|
| |
35
2nd quarter 2022 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| ( |
| |
| |
| |
| - |
| ( |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
| ( | ||||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Net income - TotalEnergies share |
|
|
|
|
|
|
| |
2nd quarter 2022 (adjustments)(a) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| ( |
| - | - |
| - |
| - |
| - |
| ( | |
Intersegment sales |
| - |
| - | - |
| - |
| - |
| - |
| - | |
Excise taxes |
| - |
| - | - |
| - |
| - |
| - |
| - | |
Revenues from sales |
| ( |
| - | - |
| - |
| - |
| - |
| ( | |
Operating expenses |
| ( |
| ( | |
| |
| ( |
| - |
| | |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( | - |
| ( |
| - |
| - |
| ( | |
Operating income (b) |
| ( |
| ( | |
| |
| ( |
| - |
| | |
Net income (loss) from equity affiliates and other items |
| ( |
| ( | |
| ( |
| - |
| - |
| ( | |
Tax on net operating income |
| |
| | ( |
| ( |
| |
| - |
| | |
Net operating income (b) |
| ( |
| ( | |
| |
| ( |
| - |
| ( | |
Net cost of net debt |
|
| | |||||||||||
Non-controlling interests |
|
| ( | |||||||||||
Net income - TotalEnergies share |
|
| ( | |||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
| |||
- On operating income |
| - |
| - |
| |
| |
| - |
| |||
- On net operating income |
| - |
| - |
| |
| |
| - |
|
2nd quarter 2022 (adjusted) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| |
| |
| |
| |
| - |
| |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
| ( | ||||||
Non-controlling interests |
|
|
|
|
|
|
| ( | ||||||
Adjusted net income - TotalEnergies share |
|
|
|
|
|
|
| |
2nd quarter 2022 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| |
| |
| |
| |
| |
|
| | |
Total divestments |
| |
| |
| |
| |
| |
|
| | |
Cash flow from operating activities |
| |
| |
| |
| |
| ( |
|
| |
36
2nd quarter 2021 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| - |
| - |
| |
Intersegment sales |
| |
| |
| | |
| |
| ( |
| - | |
Excise taxes |
| - |
| - |
| ( | ( |
| - |
| - |
| ( | |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| ( |
| |
| |
| |
| - |
| ( |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
| ( | ||
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
| |
2nd quarter 2021 (adjustments)(a) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Intersegment sales |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Excise taxes |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
Revenues from sales |
| ( |
| - |
| - |
| - |
| - |
| - |
| ( |
Operating expenses |
| ( |
| ( |
| |
| |
| - |
| - |
| |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| - |
| ( |
| - |
| - |
| - |
| ( |
Operating income (b) |
| ( |
| ( |
| |
| |
| - |
| - |
| |
Net income (loss) from equity affiliates and other items |
| ( |
| ( |
| |
| ( |
| ( |
| - |
| ( |
Tax on net operating income |
| |
| ( |
| ( |
| ( |
| - |
| - |
| ( |
Net operating income (b) |
| ( |
| ( |
| |
| |
| ( |
| - |
| ( |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
| | |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- On operating income |
| - |
| - |
| |
| |
| - |
|
|
|
|
- On net operating income |
| - |
| - |
| |
| |
| - |
|
|
|
|
2nd quarter 2021 (adjusted) | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
External sales |
| |
| |
| |
| |
| - |
| - |
| |
Intersegment sales |
| |
| |
| |
| |
| |
| ( |
| - |
Excise taxes |
| - |
| - |
| ( |
| ( |
| - |
| - |
| ( |
Revenues from sales |
| |
| |
| |
| |
| |
| ( |
| |
Operating expenses |
| ( |
| ( |
| ( |
| ( |
| ( |
| |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
| ( |
| ( |
| - |
| ( |
Adjusted operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net income (loss) from equity affiliates and other items |
| |
| |
| |
| |
| |
| - |
| |
Tax on net operating income |
| ( |
| ( |
| ( |
| ( |
| |
| - |
| ( |
Adjusted net operating income |
| |
| |
| |
| |
| ( |
| - |
| |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
| ( | |
Adjusted net income - TotalEnergies share |
|
|
|
|
|
|
|
|
|
|
|
| |
2nd quarter 2021 | Integrated Gas, | Exploration | Refining | Marketing | ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Intercompany |
| Total |
Total expenditures |
| |
| |
| |
| |
| |
|
| | |
Total divestments |
| |
| |
| |
| |
| |
|
| | |
Cash flow from operating activities |
| |
| |
| |
| |
| ( |
|
| |
37
3.2) Reconciliation of the information by business segment with consolidated financial statements
Consolidated | ||||||
1sthalf 2022 | statement of | |||||
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | ( | | |||
Excise taxes |
| ( |
| - |
| ( |
Revenues from sales |
| |
| ( |
| |
Purchases net of inventory variation |
| ( |
| |
| ( |
Other operating expenses |
| ( |
| ( |
| ( |
Exploration costs |
| ( |
| ( |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
Other income |
| |
| |
| |
Other expense |
| ( |
| ( |
| ( |
Financial interest on debt |
| ( |
| - |
| ( |
Financial income and expense from cash & cash equivalents |
| |
| |
| |
Cost of net debt |
| ( |
| |
| ( |
Other financial income |
| |
| |
| |
Other financial expense |
| ( |
| - |
| ( |
Net income (loss) from equity affiliates |
| |
| ( |
| ( |
Income taxes |
| ( |
| ( |
| ( |
Consolidated net income |
| |
| ( |
| |
TotalEnergies share |
| |
| ( |
| |
Non-controlling interests |
| |
| |
| |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Consolidated | ||||||
1sthalf 2021 | statement of | |||||
(M$) |
| Adjusted |
| Adjustments(a) |
| income |
Sales | | ( | | |||
Excise taxes |
| ( | - |
| ( | |
Revenues from sales |
| | ( |
| | |
Purchases net of inventory variation |
| ( | |
| ( | |
Other operating expenses |
| ( | ( |
| ( | |
Exploration costs |
| ( | - |
| ( | |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( | ( |
| ( | |
Other income |
| | |
| | |
Other expense |
| ( | ( |
| ( | |
Financial interest on debt |
| ( | - |
| ( | |
Financial income and expense from cash & cash equivalents |
| | |
| | |
Cost of net debt |
| ( | |
| ( | |
Other financial income |
| | - |
| | |
Other financial expense |
| ( | - |
| ( | |
Net income (loss) from equity affiliates |
| | ( |
| | |
Income taxes |
| ( | ( |
| ( | |
Consolidated net income |
| | ( |
| | |
TotalEnergies share |
| | ( |
| | |
Non-controlling interests |
| | |
| |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
38
| Consolidated | |||||
2nd quarter 2022 | statement | |||||
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| |
| ( |
| |
Excise taxes |
| ( |
| - |
| ( |
Revenues from sales |
| |
| ( |
| |
Purchases net of inventory variation |
| ( |
| |
| ( |
Other operating expenses |
| ( |
| ( |
| ( |
Exploration costs |
| ( |
| - |
| ( |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( |
| ( |
| ( |
Other income |
| |
| - |
| |
Other expense |
| ( |
| ( |
| ( |
Financial interest on debt |
| ( |
| - |
| ( |
Financial income and expense from cash & cash equivalents |
| |
| |
| |
Cost of net debt |
| ( |
| |
| ( |
Other financial income |
| |
| - |
| |
Other financial expense |
| ( |
| - |
| ( |
Net income (loss) from equity affiliates |
| |
| ( |
| ( |
Income taxes |
| ( |
| ( |
| ( |
Consolidated net income |
| |
| ( |
| |
TotalEnergies share |
| |
| ( |
| |
Non-controlling interests |
| |
| |
| |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| Consolidated | |||||
2nd quarter 2021 | statement | |||||
(M$) |
| Adjusted |
| Adjustments(a) |
| of income |
Sales |
| | ( |
| | |
Excise taxes |
| ( | - |
| ( | |
Revenues from sales |
| | ( |
| | |
Purchases net of inventory variation |
| ( | |
| ( | |
Other operating expenses |
| ( | ( |
| ( | |
Exploration costs |
| ( | - |
| ( | |
Depreciation, depletion and impairment of tangible assets and mineral interests |
| ( | ( |
| ( | |
Other income |
| | |
| | |
Other expense |
| ( | ( |
| ( | |
Financial interest on debt |
| ( | - |
| ( | |
Financial income and expense from cash & cash equivalents |
| | |
| | |
Cost of net debt |
| ( | |
| ( | |
Other financial income |
| | - |
| | |
Other financial expense |
| ( | - |
| ( | |
Net income (loss) from equity affiliates |
| | ( |
| ( | |
Income taxes |
| ( | ( |
| ( | |
Consolidated net income |
| | ( |
| | |
TotalEnergies share |
| | ( |
| | |
Non-controlling interests |
| | |
| |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
39
3.3) Adjustment items
The main adjustment items in the first half of 2022 are the following exceptional impairments and provisions related to the Russian-Ukrainian conflict:
| ● | In the first quarter, an impairment of $( |
| ● | In the second quarter, an impairment of $( |
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
| Integrated Gas, | Exploration | Refining | Marketing |
| |||||||||
Renewables | & | & | & | |||||||||||
(M$) |
|
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Total | |
2nd quarter 2022 | Inventory valuation effect | - | - | | | - | | |||||||
Effect of changes in fair value | ( | - | - | - | - | ( | ||||||||
| Restructuring charges |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| ( |
| - |
| |
| - |
| ( | |
| Other items |
| ( |
| ( |
| - |
| ( |
| ( |
| ( | |
Total |
| ( |
| ( |
| |
| |
| ( |
| | ||
2nd quarter 2021 |
| Inventory valuation effect |
| - | - | | | - | | |||||
| Effect of changes in fair value |
| ( | - | - | - | - | ( | ||||||
| Restructuring charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Other items |
| ( |
| ( |
| - |
| |
| - |
| ( | |
Total |
| ( |
| ( |
| |
| |
| - |
| | ||
1st half 2022 |
| Inventory valuation effect |
| - |
| - |
| |
| |
| - |
| |
| Effect of changes in fair value |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Restructuring charges |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| ( |
| - |
| ( |
| ( |
| ( | |
| Other items |
| ( |
| ( |
| - |
| ( |
| ( |
| ( | |
Total |
| ( |
| ( |
| |
| |
| ( |
| ( | ||
1st half 2021 |
| Inventory valuation effect |
| - |
| - |
| |
| |
| - |
| |
| Effect of changes in fair value |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Restructuring charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Other items |
| ( |
| ( |
| ( |
| |
| - |
| ( | |
Total |
| ( |
| ( |
| |
| |
| - |
| |
40
ADJUSTMENTS TO NET INCOME, TotalEnergies SHARE
Integrated Gas, | Exploration | Refining | Marketing |
| ||||||||||
Renewables | & | & | & | |||||||||||
(M$) |
|
| & Power |
| Production |
| Chemicals |
| Services |
| Corporate |
| Total | |
2nd quarter 2022 | Inventory valuation effect | - | - | | | - | | |||||||
Effect of changes in fair value | ( | - | - | - | - | ( | ||||||||
| Restructuring charges |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| ( |
| - |
| - |
| - |
| ( | |
| Gains (losses) on disposals of assets |
| - | - |
| - |
| - |
| - |
| - | ||
| Other items |
| ( |
| ( |
| - |
| ( |
| ( |
| ( | |
Total |
| ( |
| ( |
| |
| |
| ( |
| ( | ||
2nd quarter 2021 |
| Inventory valuation effect |
| - | - | | | - | | |||||
| Effect of changes in fair value |
| ( | - | - | - | - | ( | ||||||
| Restructuring charges |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( | |
| Asset impairment and provisions charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Gains (losses) on disposals of assets |
| - |
| ( | * | - |
| - |
| - |
| ( | |
|
| Other items |
| ( |
| ( |
| - |
| |
| - |
| ( |
Total |
| ( |
| ( |
| |
| |
| ( |
| ( | ||
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. | ||||||||||||||
1st half 2022 |
| Inventory valuation effect |
| - |
| - |
| |
| |
| - |
| |
| Effect of changes in fair value |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Restructuring charges |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Asset impairment and provisions charges |
| ( |
| ( |
| - |
| ( |
| ( |
| ( | |
| Gains (losses) on disposals of assets |
| - | - |
| - |
| - |
| - |
| - | ||
| Other items |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( | |
Total |
| ( |
| ( |
| |
| |
| ( |
| ( | ||
1st half 2021 |
| Inventory valuation effect |
| - |
| - |
| |
| |
| - |
| |
| Effect of changes in fair value |
| ( |
| - |
| - |
| - |
| - |
| ( | |
| Restructuring charges |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( | |
| Asset impairment and provisions charges |
| ( |
| - |
| ( |
| - |
| - |
| ( | |
| Gains (losses) on disposals of assets |
| - |
| ( | * | - |
| - |
| - |
| ( | |
| Other items |
| ( |
| ( |
| ( |
| |
| - |
| ( | |
Total |
| ( |
| ( |
| |
| |
| ( |
| ( | ||
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. | ||||||||||||||
41
4) Shareholders’ equity
Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)
| December 31, 2021 |
| June 30, 2022 | |
Number of treasury shares |
| |
| |
Percentage of share capital |
| |||
Of which shares acquired with the intention to cancel them | |
| | |
Of which shares allocated to TotalEnergies share performance plans for Company employees |
| |
| |
Of which shares intended to be allocated to new share performance or purchase options plans |
| | |
Dividend
The Shareholders’ meeting of May 25, 2022 approved the distribution of a dividend of
Dividend 2021 |
| First interim |
| Second interim |
| Third interim |
| Final |
Amount | € | € | € | € | ||||
Set date | April 28, 2021 | July 28, 2021 | October 27, 2021 | May 25, 2022 | ||||
Ex-dividend date | September 21, 2021 | January 3, 2022 | March 22, 2022 | June 21, 2022 | ||||
Payment date | October 1, 2021 | January 13, 2022 | April 1, 2022 | July 1, 2022 |
The Board of Directors of April 27, 2022 decided to increase interim dividends by
Furthermore, the Board of Directors of July 27, 2022 decided to set the amount of the second interim dividend for the 2022 fiscal year at
Dividend 2022 |
| First interim |
| Second interim |
Amount | € | € | ||
Set date | April 27, 2022 | July 27, 2022 | ||
Ex-dividend date | September 21, 2022 | January 2, 2023 | ||
Payment date | October 3, 2022 | January 12, 2023 |
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €
Earnings per share are calculated after remuneration of perpetual subordinated notes.
42
Perpetual subordinated notes
On January 17, 2022, TotalEnergies SE issued perpetual subordinated notes:
| - | Perpetual subordinated notes |
| - | Perpetual subordinated notes |
On May 18, 2022, TotalEnergies SE fully reimbursed the residual nominal amount of €
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
(M$) |
| 1st half 2022 |
| 1st half 2021 |
Actuarial gains and losses |
| |
| |
Change in fair value of investments in equity instruments |
| ( |
| |
Tax effect |
| ( |
| ( |
Currency translation adjustment generated by the parent company |
| ( |
| ( |
Sub-total items not potentially reclassifiable to profit and loss |
| ( |
| ( |
Currency translation adjustment |
| |
| |
- unrealized gain/(loss) of the period |
| |
| |
- less gain/(loss) included in net income |
| ( |
| |
Cash flow hedge |
| |
| |
- unrealized gain/(loss) of the period |
| |
| ( |
- less gain/(loss) included in net income |
| ( |
| ( |
Variation of foreign currency basis spread |
| |
| ( |
- unrealized gain/(loss) of the period |
| |
| ( |
- less gain/(loss) included in net income |
| ( |
| ( |
Share of other comprehensive income of equity affiliates, net amount |
| |
| |
- unrealized gain/(loss) of the period |
| |
| |
- less gain/(loss) included in net income |
| ( |
| ( |
Other |
| ( |
| - |
Tax effect |
| ( |
| ( |
Sub-total items potentially reclassifiable to profit and loss |
| |
| |
Total other comprehensive income (net amount) |
| |
| ( |
43
Tax effects relating to each component of other comprehensive income are as follows:
1st half 2022 | 1st half 2021 | |||||||||||||
Pre-tax | Pre-tax |
| ||||||||||||
(M$) |
| amount |
| Tax effect |
| Net amount |
|
| amount |
| Tax effect |
| Net amount | |
Actuarial gains and losses | | ( | | | ( | | ||||||||
Change in fair value of investments in equity instruments | ( | | ( | | ( | | ||||||||
Currency translation adjustment generated by the parent company | ( | - | ( | ( | - | ( | ||||||||
Sub-total items not potentially reclassifiable to profit and loss | ( | ( | ( | ( | ( | ( | ||||||||
Currency translation adjustment | | - | | | - | | ||||||||
Cash flow hedge | | ( | | | ( | | ||||||||
Variation of foreign currency basis spread | | ( | | ( | ( | ( | ||||||||
Share of other comprehensive income of equity affiliates, net amount | | - | | | - | | ||||||||
Other | ( | - | ( | - | - | - | ||||||||
Sub-total items potentially reclassifiable to profit and loss | | ( | | | ( | | ||||||||
Total other comprehensive income | | ( | | ( | ( | ( | ||||||||
5) Financial debt
The Company has not issued any new senior bond during the first six months of 2022.
The Company reimbursed three senior bonds during the first six months of 2022:
-Bond
-Bond
-Bond
On March 4, 2022, the Company put in place a committed syndicated credit line with banks for an amount of $
6) Related parties
The related parties are mainly equity affiliates and non-consolidated investments.
There were no major changes concerning transactions with related parties during the first six months of 2022.
The impact of the Russian-Ukrainian conflict on transactions with related parties in Russia is described in paragraph 7 Other risks and commitments.
44
7) Other risks and contingent liabilities
TotalEnergies is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the TotalEnergies, other than those mentioned below.
Yemen
In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which TotalEnergies holds a stake of
Mozambique
Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, TotalEnergies has confirmed on April 26, 2021, the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation led TotalEnergies, as operator of Mozambique LNG project, to declare force majeure.
Russian-Ukrainian conflict
Since the month of February 2022, Russia's invasion of Ukraine led European and American authorities to adopt several sets of sanctions measures targeting Russian and Belarusian persons and entities, as well as the financial sector.
TotalEnergies holds investments in this country in major LNG projects (Yamal LNG and Arctic LNG 2) both directly and through its holding in the company PAO Novatek, whose production and sale of LNG are not materially impacted by the sanctions adopted as of the date hereof.
Depending on the developments of the Russian-Ukrainian conflict and the measures that the European and American authorities could be required to take, the activities of TotalEnergies in Russia could be affected in the future.
TotalEnergies announced on March 1, 2022, that it condemned Russia's military aggression against Ukraine, and that sanctions will be implemented by the Company regardless of the consequences on its asset management.
On March 22, 2022, TotalEnergies announced that, given the uncertainty created by the technological and financial sanctions on the ability to carry out the Arctic LNG 2 project currently under construction and their probable tightening with the worsening conflict, TotalEnergies SE had decided to no longer book proved reserves for the Arctic LNG 2 project.
Since then, on April 8, 2022, new sanctions have effectively been adopted by the European authorities, notably prohibiting export from European Union countries of goods and technology for use in the liquefaction of natural gas benefitting a Russian company. It appears that these new prohibitions constitute additional risks on the execution of the Arctic LNG 2 project.
As a result, TotalEnergies recorded, in its accounts as of March 31, 2022, an impairment of $(
45
The table below presents the contribution of Russian assets to the key income and cash flow indicators:
Russian Upstream Assets (M$) |
| 2nd quarter 2022 |
| 1st quarter 2022 |
| 1st half 2022 |
| 2021 |
Adjusted net operating income | | | | |||||
Operating cash flow before working capital changes1 |
| |
| |
| |
| |
Capital Employed2 by TotalEnergies in Russia as at June 30, 2022 was $
1 Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sales.
2 Capital Employed consists of non-current assets and working capital, at replacement cost, net of deferred income taxes and non-current liabilities.
8) Subsequent events
There are no post-balance sheet events that could have a material impact on the Company’s financial statements.
46
EXHIBIT 99.2
RECENT DEVELOPMENTS
The term “TotalEnergies” in this exhibit is used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities.
Second 2022 interim dividend of €0.69/share, an increase of 5% compared to 2021
The Board of Directors of TotalEnergies SE, meeting on July 27, 2022 under the chairmanship of Mr. Patrick Pouyanné, Chairman and Chief Executive Officer, declared the distribution of the second 2022 interim dividend at €0.69/share, similar to the first 2022 interim and an increase of 5% from the interim and the final dividends paid for the 2021 financial year. This increase is in line with the shareholder return policy for the financial year 2022 as announced by the Board in February 2022 and confirmed at the Annual General Meeting of May 25, 2022.
This second interim dividend will be paid in cash exclusively, according to the following timetable:
| Shareholders | ADS holders |
| | |
Ex-dividend date | January 2, 2023 | December 29, 2022 |
| | |
Payment date | January 12, 2023 | January 25, 2023 |
TotalEnergies and Veolia partner to build one of the largest solar photovoltaic systems for a desalination plant in Oman
On July 27, 2022, TotalEnergies and Veolia signed an agreement to start the construction of one of the largest solar photovoltaic (PV) systems providing power for a desalination plant in Oman, in the city of Sur. The power plant will be located on the site of the Sharqiyah Desalination plant, which is a reference in Oman and in the gulf region, supplying drinking water to more than 600,000 inhabitants of the Sharqiyah region.
This 17-megawatt peak (MWp) solar project will be the first of its kind to be installed in the region. It produces annually over 30,000 megawatt-hours (MWh) of green electricity, or more than a third of the desalination plant's daily consumption, enabling it to avoid close to 300,000 tons of CO2 emissions.
This is in line with Oman’s National Energy Strategy to convert 30% of its electricity use to renewable sources by 2030. The plant is expected to be equipped with more than 32,000 high-efficiency solar panels and will use an innovative East-West tracker system to increase energy production. It will cover an area of 130,000 square meters, equivalent to approximately 18 football pitches.
Nigeria: Start of production from the Ikike Field
On July 25, 2022, TotalEnergies, OML99 operator (40%) in partnership with the Nigerian National Petroleum Corporation (NNPC, 60%), announced the start of production from the Ikike field, in Nigeria.
Located 20 kilometers off the coast, at a depth of about 20 meters, the Ikike platform is tied back to the existing Amenam offshore facilities through a 14 km multiphase pipeline. It is expected to deliver peak production of 50,000 barrels of oil equivalent per day by the end of 2022.
The Ikike project leverages existing facilities to keep costs low, and is designed to minimize greenhouse gas emissions: estimated at less than 4kg CO2e/boe, they will contribute to reducing the average carbon intensity of TotalEnergies’ upstream portfolio. In addition, 95% of hours were worked locally: the jacket as well as the topside modules were entirely built and integrated by local contractors.
France: Commitment to large-scale fuel price reduction program until year-end for all of TotalEnergies service stations in France
On July 22, 2022, TotalEnergies announced that, to meet the expectations of French people affected by the increase in energy prices and the impact on their purchasing power, the Company initiated a largescale fuel price reduction program for all of its service stations in France, effective until year-end.
From September 1 to November 1, TotalEnergies will lower its petroleum fuel prices sold in service stations by €0.20/liter compared to global market quotation prices, followed by a €0.10/liter reduction from November 1 to December 31.
These price reductions, which complement the government’s own measures, will apply from the first liter purchased, with no limit on amounts, for all petroleum fuel sold in service stations. On June 30, 2022, TotalEnergies annouced a summer discount of €0.12/liter on fuel in all of the motorway service stations under the TotalEnergies banner in mainland France from July 1 to August 31, 2022.
United States: Start-up of new ethane cracker in Port Arthur
On July 21, 2022, Bayport Polymers LLC (“Baystar”), a 50/50 joint venture (JV) between TotalEnergies and Borealis, announced the start-up of commercial operations of a new ethane cracker with an expected annual production capacity of one million tons of ethylene.
This approximately $2 billion project built on the site of and operated by the TotalEnergies Refinery in Port Arthur, Texas, represents 14 million hours worked with more than 2,500 workers at peak construction.
The ethylene produced by the cracker will be used as feedstock to supply Baystar's existing polyethylene (PE) units, as well as a new Borstar® technology polyethylene unit currently under construction in Bayport, Texas.
TotalEnergies definitively withdraws from Myanmar
On January 21, 2022, TotalEnergies announced its decision to withdraw from the Yadana field and from gas transportation company MGTC in Myanmar, both as shareholder and as operator. In a context of continuing deterioration of the human rights situation in Myanmar, this decision resulted from the assessment that TotalEnergies was no longer able to make a sufficiently positive contribution in the country, and was not able to meet the expectations of stakeholders who were asking to stop the revenues going to the Burmese state through the state-owned company MOGE from the Yadana field production. In accordance with the contractual 6-month notice period, this withdrawal became effective on July 20, 2022. This withdrawal was made in compliance with the European sanctions put in place in February 2022.
Since January 2022, TotalEnergies has continued to act as a responsible operator and has undertaken due diligence to ensure it withdraws in a responsible manner towards its stakeholders in Myanmar, including its employees as well as the long-standing supported local communities. As such, TotalEnergies worked closely with PTTEP, Thailand's national company, which was appointed as the new operator by the project partners, to guarantee the continuity and safety of production at the Yadana gas field while ensuring an orderly transfer of operations.
All our employees in Myanmar were offered employment with the new operator, under the same job and salary conditions, thus securing their professional future. In addition, a complementary support agreement, through a contribution to a dedicated fund, was also set up between TotalEnergies and PTTEP to continue the historic economic development program with local communities in the MGTC pipeline area.
As TotalEnergies definitively withdraws from Myanmar, our Company repeats its condemnation of the abuses and human rights violations taking place in this country and reaffirms its support to the people of Myanmar and its hope for a swift return to peace and rule of law.
Papua New Guinea: New milestone towards Papua LNG development
On July 20, 2022, TotalEnergies, as operator, announced the decision of the Papua LNG joint venture to launch the first phase of front-end engineering and design (FEED) studies for the Papua LNG project's upstream production facilities. In parallel, studies for the downstream liquefaction facilities are progressing in line with the overall project schedule, and the objective is to launch the integrated FEED in the fourth quarter of 2022. The project is targeting a final investment decision around the end of 2023, and a start-up at the end of 2027.
The Papua LNG joint venture is committed to developing a landmark project in terms of sustainability, biodiversity, and low carbon emissions. Specifically, the project targets the incorporation of a carbon
capture and storage scheme for the fields' native CO2, which is expected to be reinjected into the reservoirs.
Algeria: New production sharing contract signed with Sonatrach in the Berkine Basin
On July 19, 2022, TotalEnergies signed with Sonatrach, Occidental and Eni an extension of its production sharing contract for a period of 25 years for onshore Blocks 404a and 208 in the Berkine basin, in Eastern Algeria. This contract, signed under the new Algerian Hydrocarbon Law published in 2019, allows the potential development of additional liquids hydrocarbon resources, while reducing these fields’ carbon intensity through a dedicated carbon reduction program. The opportunity to develop and valorize associated gas resources will be studied by the partners, with the objective of increasing export potential towards Europe.
United Arab Emirates: TotalEnergies and ADNOC expand strategic alliance
On July 19, 2022, TotalEnergies announced that, on the occasion of the state visit in Paris of His Highness Sheikh, Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, TotalEnergies and Abu Dhabi National Oil Company (ADNOC) signed a strategic partnership agreement that aims to jointly evaluate new growth opportunities in the following areas:
| ● | development of oil and gas projects in the UAE to ensure sustainable energy supply to the markets and contribute to global energy security; |
| ● | supply of diesel from the UAE to France; |
| ● | prospects for a commercial carbon capture, utilization, and storage project in the UAE. |
Kharyaga
On July 6, 2022, TotalEnergies announced that, in line with our principles of conduct stated on March 22, 2022 regarding our withdrawal from the Russian oil business, and following the transfer of the operator's role to Zarubezhneft and the reduction of our interest from 40% to 20% in 2016, TotalEnergies agreed to transfer to Zarubezhneft the remaining 20% interest that the Company held in the Kharyaga oil field. This transaction is subject to the approval of the Russian authorities.
Gabon: TotalEnergies and Compagnie des Bois du Gabon joined forces to develop a new forest management model combining wood production and carbon sinks
On June 15, 2022, TotalEnergies and Compagnie des Bois du Gabon (CBG) joined forces to develop a forward-looking model of sustainable and responsible forest management that combines sustainable harvesting, biodiversity conservation, and long-term carbon storage. TotalEnergies became CBG's leading partner after acquiring 49% of its capital from Criterion Africa Partners.
CBG is a key player in Gabonese forestry, recognized for its responsible and sustainable management of 600,000 hectares of forest, certified to the highest international standards of the Forest Stewardship Council (FSC), and for its ongoing contribution to protecting biodiversity.
The forest management model applied by the partners aims at developing a new balance between, on the one hand, the harvesting and local processing of sustainable wood combined with carbon storage and, on the other, the production of related carbon credits thanks to the reduced impact of forest operations, reforestation, agroforestry and conservation of natural forests. This new model is in line with the “Green Gabon” vision of the Gabonese authorities – the country’s development strategy to sustainably manage its natural resources for the benefit of the population – as well as Gabon's climate policy.
India: TotalEnergies and Adani joined forces to create a world-class green hydrogen company
On June 14, 2022, TotalEnergies announced it entered into an agreement with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New Industries Limited (ANIL). ANIL is meant to be the exclusive platform of AEL and TotalEnergies for the production and commercialization of green hydrogen in India. ANIL will target a production of one million metric tons of green hydrogen per year (Mtpa) by 2030, underpinned by around 30 gigawatts (GW) of new renewable power generation capacity, as its first milestone.
In order to control green hydrogen production costs, ANIL will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilizers and methanol, both for the domestic market and export. To start with, ANIL intends to develop a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and expects to invest around $5 billion in a 2 GW electrolyzer fed by renewable power from a 4 GW solar and wind farm.
This partnership is based on the complementarity of the two companies. Adani will contribute its knowledge of the Indian market, execution capabilities, and operations and capital management excellence. TotalEnergies will offer its understanding of the global markets, expertise in renewable technologies and large-scale industrial projects, and financial strength, enabling ANIL to lower its
financing cost. The partners' complementary strengths will help ANIL deliver one of the largest green hydrogen ecosystems in the world, which will enable one of the lowest green hydrogen costs for consumers.
Qatar: TotalEnergies the first company selected to partner with QatarEnergy on the giant North Field East LNG project
On June 12, 2022, following the request for proposals in relation to partner selection for the North Field East (NFE) liquified natural gas project, TotalEnergies was awarded a 25% interest in a new joint venture (JV), alongside national company QatarEnergy (75%). The new JV will hold a 25% interest in the 32 million tons per annum (Mtpa) NFE project, equivalent to one 8 Mtpa LNG train.
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. It is intended to increase Qatar's total LNG export capacity from 77 Mtpa to around 110 Mtpa by 2027, thanks to the construction of four 8 Mtpa trains. The upstream part of the project will develop the southeastern area of the field with 8 platforms, 80 wells and gas pipelines to the onshore plant.
All 24 Hours of Le Mans race cars used 100% renewable fuel produced by TotalEnergies
On June 10, 2022, TotalEnergies announced that for the first time in the endurance event’s history, the 62 race cars competing in the 90th 24 Hours of Le Mans (held on June 11-12, 2022) were supplied with a 100% renewable fuel developed and produced by TotalEnergies: Excellium Racing 100. This zero-oil fuel aims at delivering a reduction in CO2 emissions of at least 65% over its lifecycle.
As the hydrogen partner to Automobile Club de l'Ouest (ACO) and the “H24 Racing” team, TotalEnergies also deployed this year a mobile hydrogen filling station at Le Mans to supply the “H24” hydrogen prototype that took part in the Road to Le Mans support races. The project “H24 Racing”, developed jointly by Automobile Club de l'Ouest and electric-hydrogen specialist Green GT, aims to present an electric-hydrogen race car at the 24 Hours of Le Mans in 2025.
TotalEnergies welcomed the first 10 start-ups to its electricity start-up accelerator TotalEnergies On at STATION F in Paris
On May 30, 2022, during the inauguration of TotalEnergies On – TotalEnergies' start-up accelerator at the world’s largest start-up campus, STATION F in Paris – Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, and Xavier Niel, founder of STATION F, welcomed the first 10 start-ups to the accelerator program dedicated to electricity.
In line with TotalEnergies' ambition to be a major player in the energy transition, TotalEnergies On intends to support the development of new companies in the electricity and renewable energy sector. This program is aimed at start-ups offering innovative solutions, particularly digital ones, across the electricity value chain. The selected start-ups benefit from privileged access to TotalEnergies’ experts, a testing ground for their developments within TotalEnergies’ businesses. They also benefit from the STATION F ecosystem, due to being hosted at TotalEnergies On.
United States: TotalEnergies to acquire 50% of Clearway Energy Group, the 5th largest U.S. renewable energy player
On May 25, 2022, TotalEnergies announced the signing of agreements with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG), the 5th largest US renewable energy player. Upon closing, this will constitute its largest acquisition in the renewable energy sector in the United States, one of the top 3 renewable markets in the world. With this transaction, TotalEnergies will further accelerate its growth in the renewable energy sector by partnering with GIP, a leading global infrastructure fund.
CEG is a developer of renewables projects and controls and owns a 42 % economic interest in its listed subsidiary, Clearway Energy Inc. (NASDAQ: CWEN), into which projects are transferred when they reach commercial operation.
With this acquisition, TotalEnergies will establish a major position in the U.S. renewable energy and storage market. Clearway has 7.7 GW1 of wind and solar assets in operation through CWEN and has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development. Headquartered in San Francisco, Clearway has approximately 760 employees.
As consideration, GIP will receive $1.6 billion in cash and an interest of 50% minus one share in the TotalEnergies subsidiary that holds its 50.6% ownership in SunPower Corporation (NASDAQ: SPWR), a leader in residential solar in the U.S. The transaction takes into account valuations of $35.10 per share for CWEN and $18.00 per share for SunPower.
As part of this partnership, TotalEnergies intends to enhance Clearway’s growth prospects by providing CWEN in the U.S. with access to its power trading capabilities and will give it priority on the farm down of its own developed projects.
The acquisition will bring TotalEnergies' renewable portfolio in the U.S. to more than 25 GW and contribute to the objective that the United States account for at least 25% of TotalEnergies’ global target of 100 GW by that time.
Both transactions are subject to customary conditions, including receipt of requisite regulatory approvals.
South Korea: TotalEnergies signed LNG long-term sale contract with Hanwha Corporation
On May 24, 2022, against the backdrop of World Gas Conference 2022, TotalEnergies announced the signing of a Sale and Purchase Agreement (SPA) with Korea’s Hanwha Energy Corporation for the supply of 600,000 metric tons of liquefied natural gas (LNG) per year over 15 years, expected to start in 2024.
The LNG will be sourced from TotalEnergies’ global LNG portfolio, delivered to the Tongyeong regasification terminal in South Korea, and then used to supply Hanwha & HDC’s greenfield 1 GW power plant currently under construction next to the terminal.
United States: launch of carbon capture project to decarbonize liquefied natural gas production at Cameron LNG
On May 23, 2022, TotalEnergies announced it signed an agreement with Sempra Infrastructure, Mitsui & Co., Ltd. and Mitsubishi Corporation for the development of the Hackberry Carbon Sequestration (HCS) project at Cameron LNG, a natural gas liquefaction and export facility located in southwest Louisiana, United States.
The HCS project is primarily designed for capture, transportation, and storage of carbon dioxide (CO2) from Cameron LNG. The CO2 will be captured by the acid gas removal units, dehydrated, compressed, and transported by pipeline about 10 kilometers away. It will then be permanently stored in a saline aquifer using an injection well with a capacity of up to 2 million tons of CO2 per year. In August 2021, the HCS project filed an application with the U.S. Environmental Protection Agency (EPA) for the construction permit of such an injection well – the first application to be accepted by the EPA in Louisiana.
Development of the Hackberry Carbon Sequestration project remains subject to signing definitive agreements, obtaining the necessary permits, and all partners reaching a final investment decision.
Plastic Recycling: TotalEnergies and New Hope Energy partner on U.S. advanced recycling project
On May 18, 2022, TotalEnergies and New Hope Energy announced a commercial agreement under which New Hope Energy intends to build an advanced recycling plant in Texas to transform end-of-life plastic waste into a recycled feedstock that TotalEnergies intends to partly purchase and convert into virgin-quality polymers, which can be used for food-grade packaging.
1 Powers are expressed in dc and correspond respectively in ac to 7 GWac in operation and 22,3 GWac in development
The New Hope Energy plant is expected to start production in 2025 and will use a patented pyrolysis technology that was developed in partnership with Lummus Technology to process and convert more than 310,000 tons per year of mixed plastic waste that would otherwise be destined for the landfill or incineration. TotalEnergies expects to use 100,000 tons of Recycled Polymer Feedstock (RPF) in its Texas-based production units to manufacture high-quality polymers suitable for food-grade applications such as flexible and rigid food packaging containers.
USA: Sanction of the Ballymore development in the U.S. Gulf of Mexico
On May 17, 2022, TotalEnergies, through its affiliate TotalEnergies E&P USA, Inc., announced the sanction of the Ballymore development, located 120 kilometers off the coast of Louisiana in the U.S. Gulf of Mexico.
TotalEnergies holds a working interest of 40% in Ballymore. Co-owner Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, holds a 60% working interest as operator.
The Ballymore field expects to be developed through three production wells, tied back to the Chevron-operated Blind Faith Floating Production Unit. First Oil is expected in 2025 with an estimated capacity of 75,000 barrels of oil per day. By utilizing existing infrastructure, the project ensures the lowest development costs and lower emission intensity.
Methane emissions reduction: TotalEnergies implements a worldwide drone-based detection campaign
On May 16, 2022, as part of its commitment to identify, quantify and reduce methane emissions linked to its operations, TotalEnergies announced it launched a worldwide drone-based emissions detection and quantification campaign across all its upstream Oil & Gas operated sites. The campaign uses Airborne Ultralight Spectrometer For Environmental Applications (AUSEA) technology developed by TotalEnergies, the French National Research Center for Scientific Research (CNRS) and University of Reims Champagne Ardenne.
After being successfully tested at sites in Nigeria, Italy, the Republic of the Congo and the Netherlands, AUSEA technology is being rolled out this year at all upstream Oil & Gas sites operated by TotalEnergies. The campaign began in early March for African offshore sites, has now been launched in South America and will reach Europe this summer. The campaign is an important step towards achieving a reduction of 50% in methane emissions at Company operated sites by 2025 and of 80% by 2030 (targets in relation to 2020 methane emissions at Company operated sites).
TotalEnergies and Ørsted partner to participate in Dutch offshore wind tenders
On May 13, 2022, TotalEnergies and Ørsted have jointly submitted bids for the two Dutch offshore wind tenders “Holland Coast West” with the aim to achieve net positive impact on biodiversity and the Dutch energy system. The Holland Coast West wind farms are located approximately 53 kilometers off the Dutch coast and have a combined capacity of nearly 1.5 GW.
As world-class leaders in renewable energy and offshore wind, Ørsted and TotalEnergies intend to combine their strengths in these tenders with a view to contribute to the Netherlands’ objective of developing more than 70 GW of offshore wind capacity by 2050 for power generation associated with large scale hydrogen production.
TotalEnergies and Ørsted believe the Hollandse Kust West (HKW) Site VI tender proposal will change how wind farms relate to ecology. With its measures, unprecedented monitoring program, and strong cooperation with companies, institutes, universities and NGOs it focuses on working with all parties, both international and local, to build the knowledge needed to have wind farms strengthen nature by default.
The winners of the tenders are expected to be announced by the Dutch government in Autumn 2022.
United States: TotalEnergies won maritime lease to develop a 1 GW offshore wind farm off North Carolina’s coast
On May 13, 2022, TotalEnergies announced it was named a winner by the Bureau of Ocean Energy Management of maritime lease area OCS-A 0545 in the United States, as part of the Carolina Long Bay auction held on Wednesday, May 11, 2022.
This bid for the development of an offshore wind farm in the Carolina Long Bay was won for a consideration of US$ 160 million by TotalEnergies.
Located 20 nautical miles (37 kilometers) from the coast, the lease covers a 120 square nautical miles area (222 square kilometers) that is expected to generate a capacity of more than 1 GW, enough to provide power to more than approximately 300,000 homes. The project is expected to come online by 2030.
This announcement follows the award to TotalEnergies in February 2022 of a lease to develop a 3 GW wind farm off the coast of New York and New Jersey in the United States.
The Carolina Long Bay project is part of the U.S. government's goal to deploy 30 GW of offshore wind in the U.S. by 2030, in response to the climate challenge.
TotalEnergies pursues its development in floating offshore wind with the start of construction of a first farm in France
On May 10, 2022, TotalEnergies announced the start of construction of the Eolmed project, operated by Qair and in which TotalEnergies has a 20% stake. This 30 megawatt (MW) project is located more than 18 kilometers off the coast of Gruissan and Port la Nouvelle (Occitan region), France. The start of production is expected by 2024.
The wind farm is expected to consist of three 10 MW wind turbines mounted on steel floats and connected to the French Electricity Transmission Network (RTE) by an underwater cable.
This project is part of TotalEnergies’ strategy to develop floating wind energy, which allows access to deeper sites, further from the coast, and to take advantage of greater wind resources.
Brazil: start of production from the first development phase of the giant Mero field
On May 2, 2022, TotalEnergies announced the start of production from the first development phase of the giant Mero field in the Libra block, more than 150 kilometers off the coast of Rio de Janeiro, in the prolific pre-salt area of the Santos Basin.
Launched in late 2017, this first phase (Mero-1) includes a floating production, storage and offloading unit (FPSO) with an expected production capacity of 180,000 barrels of oil per day.
This first phase is expected to be followed by three additional development phases, with the Mero-2, Mero-3 and Mero-4 FPSOs, each with an expected production capacity of 180,000 barrels of oil per day and production start-ups scheduled between 2023 and 2025.
The Mero unitized field is operated by Petrobras (38.6%), in partnership with TotalEnergies (19.3%), Shell Brasil (19.3%), CNPC (9.65%), CNOOC Limited (9.65%) and Pré-Sal Petróleo SA -PPSA (3.5%), representing the Government in the non-contracted area.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business activities and industrial strategy of TotalEnergies. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of TotalEnergies, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by TotalEnergies, it being specified that the means to be deployed do not depend solely on TotalEnergies. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by the Group as of the date of this document.
These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Except for its ongoing obligations to disclose material information as required by applicable securities laws, TotalEnergies does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
For additional factors, you should read the information set forth under “Item 3. -3.1 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TotalEnergies’ Form 20-F for the year ended December 31, 2021.
Exhibit 99.3
CAPITALIZATION AND INDEBTEDNESS OF TOTALENERGIES
(unaudited)
The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE (collectively, “TotalEnergies”) as of June 30, 2022, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (“dollars” or “$”) or in euros (“euros” or “€”).
|
| At June 30, |
|
| | 2022 | |
| | (in millions of dollars) | |
Current financial debt, including current portion of non-current financial debt | | | |
Current portion of non-current financial debt | | 5,470 | |
Current financial debt | | 10,533 | |
Current portion of financial instruments for interest rate swaps liabilities | | 359 | |
Other current financial instruments — liabilities | | 42 | |
Financial liabilities directly associated with assets held for sale | | 10 | |
Total current financial debt | | 16,414 | |
Non-current financial debt | | 46,868 | |
Non-controlling interests | | 3,309 | |
Shareholders’ equity | | | |
Common shares | | 8,163 | |
Paid-in surplus and retained earnings | | 125,554 | |
Currency translation adjustment | | (14,019) | |
Treasury shares | | (3,010) | |
Total shareholders’ equity — TotalEnergies share | | 116,688 | |
Total capitalization and non-current indebtedness | | 166,855 | |
As of June 30, 2022, TotalEnergies SE had an authorized share capital of 3,664,966,081 ordinary shares with a par value of €2.50 per share, and an issued share capital of 2,619,131,285 ordinary shares, of which 55,465,917 treasury shares. For more information on the delegations of authority and powers granted to the Board of Directors with respect to share capital increases and authorization for share cancellation, see Exhibit 15.1 (section 4.4.2, chapter 4) to the Annual Report on Form 20-F for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 25, 2022.
As of June 30, 2022, approximately $7,694 million of TotalEnergies’ non-current financial debt was secured and $39,174 million was unsecured, and all of TotalEnergies’ current financial debt of $16,414 million was unsecured. As of June 30, 2022, TotalEnergies had no outstanding guarantees from third parties relating to its consolidated indebtedness.
For more information about TotalEnergies’ off-balance sheet commitments and contingencies, see Note 13.1 of the Notes to TotalEnergies’ audited Consolidated Financial Statements in its Annual Report on Form 20-F for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 25, 2022.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TotalEnergies since June 30, 2022.