TotalEnergies SE 6-K, filed Feb 8, 2023
TotalEnergies SE (TTE)
About this 6-K
TotalEnergies SE filed this 6-K on February 8, 2023.
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
February 8, 2023
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 x 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OF TOTALENERGIES SE, AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 fourth quarter of 2022 and the year ended December 31, 2022, a description of certain recent developments relating to its business, as well as a capitalization table as of December 31, 2022.
EXHIBIT INDEX
| Exhibit No. | Description |
| Exhibit 99.1 | Results for the Fouth Quarter of 2022 and Year Ended December 31, 2022 |
| Exhibit 99.2 | Recent Developments |
| Exhibit 99.3 | Capitalization and Indebtedness |
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: February 8, 2023 | 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 1-22 of this exhibit concerning TotalEnergies with respect to the fourth quarter of 2022 and year ended December 31, 2022 has been derived from TotalEnergies’ unaudited consolidated balance sheets as of December 31, 2022, unaudited statements of income, comprehensive income, cash flow and business segment information for the fourth quarter of 2022 and year ended December 31, 2022 and unaudited consolidated statements of changes in shareholders’ equity for year ended December 31, 2022 on pages 24 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 |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars, except earnings per share and number of shares |
2022 | 2021 | 2022 vs 2021 | ||
| 68,582 | 69,037 | 60,348 | +14% | Sales | 280,999 | 205,863 | +36% | ||
| 15,997 | 19,420 | 14,285 | +12% | Adjusted EBITDA1 | 71,578 | 42,302 | +69% | ||
| 8,238 | 10,279 | 7,316 | +13% | Adjusted net operating income2 from business segments | 38,475 | 20,209 | +90% | ||
| 3,528 | 4,217 | 3,525 | - | Exploration & Production | 17,479 | 10,439 | +67% | ||
| 2,889 | 3,649 | 2,759 | +5% | Integrated Gas, Renewables & Power | 12,144 | 6,243 | +95% | ||
| 1,487 | 1,935 | 553 | x2.7 | Refining & Chemicals | 7,302 | 1,909 | x3.8 | ||
| 334 | 478 | 479 | -30% | Marketing & Services | 1,550 | 1,618 | -4% | ||
| (281) | (108) | 1,860 | ns | Net income (loss) from equity affiliates | (1,892) | 3,438 | ns | ||
| 1.26 | 2.56 | 2.17 | -42% | Fully-diluted earnings per share ($) | 7.85 | 5.92 | +33% | ||
| 2,522 | 2,560 | 2,644 | -5% | Fully-diluted weighted-average shares (millions) | 2,572 | 2,647 | -3% | ||
| 3,264 | 6,626 | 5,837 | -44% | Net income (TotalEnergies share) | 20,526 | 16,032 | +28% | ||
| 3,935 | 3,116 | 4,681 | -16% | Organic investments3 | 11,852 | 12,675 | -6% | ||
| (133) | 1,587 | (396) | ns | Net acquisitions4 | 4,451 | 632 | x7 | ||
| 3,802 | 4,703 | 4,285 | -11% | Net investments5 | 16,303 | 13,307 | +23% | ||
| 5,618 | 17,848 | 11,621 | -52% | Cash flow from operating activities6 | 47,367 | 30,410 | +56% | ||
| of which: | |||||||||
| (3,791) | 7,407 | 2,232 | ns | (increase) decrease in working capital | 1,191 | (616) | ns | ||
| (226) | (304) | (398) | ns | financial charges | (1,296) | (1,520) | 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 20 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 20). |
| 5 | Net investments = organic investments + net acquisitions (see “Investments – Divestments’” on page 20). |
| 6 | See also “C. TotalEnergies results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 21 of this exhibit. |
Key figures of environment, greenhouse gas emissions and production
Environment* — liquids and gas price realizations, refining margins
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
2022 | 2021 | 2022 vs 2021 | |
| 88.8 | 100.8 | 79.8 | +11% | Brent ($/b) | 101.3 | 70.9 | +43% |
| 6.1 | 7.9 | 4.8 | +26% | Henry Hub ($/Mbtu) | 6.5 | 3.7 | +76% |
| 32.3 | 42.5 | 32.8 | -2% | NBP** ($/Mbtu) | 32.4 | 16.4 | +97% |
| 30.5 | 46.5 | 35.0 | -13% | JKM*** ($/Mbtu) | 33.8 | 18.5 | +83% |
| 80.6 | 93.6 | 72.6 | +11% | Average price of liquids
($/b) Consolidated subsidiaries |
91.3 | 65.0 | +41% |
| 12.74 | 16.83 | 11.38 | +12% | Average price of gas ($/Mbtu)
Consolidated subsidiaries |
13.15 | 6.60 | +99% |
| 14.83 | 21.51 | 13.12 | +13% | Average
price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates |
15.90 | 8.80 | +81% |
| 73.6 | 99.2 | 16.7 | x4.4 | Variable cost margin – Refining Europe, VCM ($/t)**** | 94.1 | 10.5 | x9 |
* The indicators are shown on page 23.
** NBP (National Balancing Point) is a virtual natural gas trading point in the United Kingdom for transferring rights in respect of physical gas and which is widely used as a price benchmark for the natural gas markets in Europe. NBP is operated by National Grid Gas plc, the operator of the UK transmission network.
*** JKM (Japan-Korea Marker) measures the prices of spot LNG trades in Asia. It is based on prices reported in spot market trades and/or bids and offers collected after the close of the Asian trading day at 16:30 Singapore time.
****This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies’ European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons).
Greenhouse gas emissions (GHG)1
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
GHG emissions (MtCO2e) | 2022 | 2021 | 2022 vs 2021 |
| 10.1 | 10.3 | 9.9 | +2% | Scope 1+2 from operated facilities2 | 39.7 | 37.0 | +7% |
| 8.3 | 8.2 | 8.5 | -2% | of which Oil & Gas | 32.5 | 33.1 | -2% |
| 1.8 | 2.1 | 1.4 | +24% | of which CCGT | 7.2 | 3.8 | +86% |
| 14.7 | 14.0 | - | - | Scope 1+2 – equity share | 56.1 | 53.7 | +4% |
| 107 | 90 | 108 | -1% | Scope 3 from Oil, Biofuels & Gas Worldwide3 | 389 | 400 | -3% |
| 58 | 65 | 75 | -22% | of which Scope 3 Oil Worldwide4 | 254 | 285 | -11% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
Excluding Covid-19 effect for emissions data from 2Q20 through 2Q22.
| 1 | The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from the Company’s emissions or are considered as non-material and are therefore not counted. |
| 2 | Scope 1+2 GHG emissions of operated facilities are defined as the sum of direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting (as defined in the Company’s 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). |
| 3 | TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use by customers of energy products, i.e., combustion of the products to obtain energy. The Company follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil, biofuels and gas value chains, i.e., the higher of the two production volumes or sales to end customers. For TotalEnergies, in 2022, the calculation of Scope 3 GHG emissions for the oil and biofuels value chains considers products sales (higher than production) and for the gas value chain, marketable gas production (higher than gas sales either as LNG or as part of direct sales to B2B/B2C). |
| 4 | Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the sale of petroleum products. |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Methane emissions (ktCH4) | 2022 | 2021 | 2022 vs 2021 |
| 11 | 10 | 12 | -8% | Methane emissions from operated facilities |
42 | 49 | -14% |
| 10 | 14 | - | - | Methane emissions - equity share | 47 | 51 | -8% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
The evolution of Scope 1+2 emissions of operated installations in 2022 is mainly due to the increased use of gas-fired power plants (7.2 Mt in 2022 versus 3.8 Mt in 2021), in the context of lower availability of nuclear power plants in France, as well as the start-up of the Landivisiau power plant. Conversely, emissions from Oil & Gas activities fell by 2%.
Production*
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Hydrocarbon production | 2022 | 2021 | 2022 vs 2021 | |
| 2,812 | 2,669 | 2,852 | -1% | Hydrocarbon production (kboe/d) | 2,765 | 2,819 | -2% | |
| 1,357 | 1,298 | 1,278 | +6% | Oil (including bitumen) (kb/d) | 1,307 | 1,274 | +3% | |
| 1,455 | 1,371 | 1,574 | -8% | Gas (including condensates and associated NGL) (kboe/d) | 1,458 | 1,545 | -6% |
| 2,812 | 2,669 | 2,852 | -1% | Hydrocarbon production (kboe/d) | 2,765 | 2,819 | -2% | |
| 1,570 | 1,494 | 1,509 | +4% | Liquids (kb/d) | 1,519 | 1,500 | +1% | |
| 6,681 | 6,367 | 7,328 | -9% | Gas (Mcf/d) | 6,759 | 7,203 | -6% |
* Company production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).
Hydrocarbon production was 2,812 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter of 2022, up 5% quarter-on-quarter, benefiting from projects ramp-up (Mero 1 in Brazil, Ikike in Nigeria), resumption of production from Kashagan in Kazakhstan, lower planned maintenance (notably on Ichthys, in Australia), and despite the disposal of Termokarstovoye, in Russia.
Hydrocarbon production was 2,765 kboe/d in 2022, down 2% year-on-year, comprised of:
| · | +3% due to start-ups and ramp-ups, notably CLOV Phase 2 and Zinia Phase 2 in Angola, Mero 1 in Brazil and Ikike in Nigeria, |
| · | +2% due to the increase in OPEC+ production quotas, |
| · | -3% portfolio effect, notably related to the end of the operating licenses for Qatargas 1 and Bongkot North in Thailand, as well as the effective withdrawal from Myanmar, the exit from Termokarstovoye and Kharyaga in Russia, partially offset by the entry into the Sépia and Atapu producing fields in Brazil, |
| · | -1% due to security-related production cuts in Libya and Nigeria, |
| · | -1% due to price effect, | |
| · | -2% due to the natural decline of the fields. |
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 32 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.
B.1. Integrated Gas, Renewables & Power segment (iGRP)
1. Results
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 |
| 14,683 | 11,495 | 11,634 | +26% | External sales | 48,753 | 30,704 | +59% |
| 3,617 | 2,305 | 1,414 | x2.6 | Operating income | 8,580 | 3,350 | x2.6 |
| 1,253 | 3,190 | 1,281 | -2% | Net income (loss) from equity affiliates and other items | 2,766 | 2,745 | +1% |
| (381) | (777) | (237) | +61% | Tax on net operating income | (1,712) | (602) | ns |
| 4,489 | 4,718 | 2,458 | +83% | Net operating income | 9,634 | 5,493 | +75% |
| (1,600) | (1,069) | 301 | ns | Adjustments affecting net operating income | 2,510 | 750 | x3.3 |
| 2,889 | 3,649 | 2,759 | +5% | Adjusted net operating income* | 12,144 | 6,243 | +95% |
| 1,301 | 1,888 | 1,321 | -2% | including adjusted income from equity affiliates | 5,838 | 2,696 | x2.2 |
| 650 | 653 | 1,190 | -45% | Organic investments | 1,904 | 3,341 | -43% |
| (211) | 1,718 | 47 | ns | Net acquisitions | 2,089 | 1,165 | +79% |
| 439 | 2,371 | 1,237 | -65% | Net investments | 3,993 | 4,506 | -11% |
*Detail of adjustment items shown in the business segment information starting on page 32 of this exhibit.
Adjusted net operating income for the iGRP segment was:
| · | $2,889 million in the fourth quarter 2022, up 5% year-on-year, mainly due to the growing contribution of the Integrated Power business, | |
| · | $12,144 million for the full year of 2022, up 95% year-on-year, due to its integrated LNG portfolio, in particular its regasification capacity in Europe, which positioned it to capture the benefit of the favorable pricing environment, and thanks to the growth of the Integrated Power business. |
Adjusted net operating income for the iGRP segment excludes special items and the impact of changes in fair value. The exclusion of special items and changes in fair value had:
| · | a negative impact of $1,600 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a positive impact of $301 million in the fourth quarter 2021, | |
| · | a positive impact of $2,510 million for the full year 2022 on the segment’s adjusted net operating income, compared to a positive impact of $750 million for the full year 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)1 was:
| · | $3,127 million in the fourth quarter 2022, up 28% year-on-year, mainly due to the performance of the Integrated LNG business, which benefited from higher prices and the growing contribution of the Integrated Power business, | |
| · | $10,754 million for the full year 2022, up 76% year-on-year, for the same reasons. |
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| · | $995 million in the fourth quarter 2022, compared to a negative impact of $57 million in the fourth quarter 2021, | |
| · | $9,670 million for the full year 2022, 11.7 times higher than $827 million for the full year 2021. |
Starting in the first quarter of 2023, iGRP results will be presented in two segments:
| · | Integrated LNG covering LNG production and trading activities as well as biogas and hydrogen activities, | |
| · | Integrated Power covering electricity generation, storage, trading, and B2B B2C gas and power marketing activities. |
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.
2. Integrated Liquefied Natural Gas (LNG)
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Hydrocarbon production for LNG | 2022 | 2021 | 2022 vs 2021 |
| 503 | 418 | 562 | -11% | iGRP (kboe/d) | 469 | 529 | -11% |
| 58 | 40 | 68 | -14% | Liquids (kb/d) | 53 | 63 | -16% |
| 2,420 | 2,067 | 2,697 | -10% | Gas (Mcf/d) | 2,267 | 2,541 | -11% |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Liquefied Natural Gas in Mt | 2022 | 2021 | 2022 vs 2021 |
| 12.7 | 10.4 | 11.6 | +10% | Overall LNG sales | 48.1 | 42.0 | +15% |
| 4.4 | 4.0 | 4.6 | -4% | including sales from equity production* | 17.0 | 17.4 | -2% |
| 11.4 | 9.2 | 10.1 | +13% | including sales by TotalEnergies from equity production and third-party purchases | 42.8 | 35.1 | +22% |
* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.
LNG production was 4.4 Mt in the fourth quarter 2022, up 10% from the previous quarter, benefiting from a production from Ichthys LNG in Australia after a planned maintenance in the third quarter. Production declined by 2% over the year, despite the restart of Snøhvit, Norway, in the second quarter 2022, due to the end of the Qatargas 1 operating license and supply issues at Nigeria LNG.
Total LNG sales were up 22% in the fourth quarter 2022 and 15% in the year, supported by strong LNG demand in Europe.
Adjusted net operating income for Integrated LNG segment was:
| · | $11.2 billion for the full year 2022, double the $5.6 billion contribution for the full year 2021, as the integrated LNG portfolio, in particular its regasification capacity in Europe, was well-positioned to capture the benefit of the favorable pricing environment. |
Integrated LNG cash flow was:
| · | $9.8 billion for the full year 2022, up nearly 80% compared to $5.5 billion contribution for the full year 2021, for the same reason. |
3. Integrated Power
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Integrated Power |
2022 | 2021 | 2022 vs 2021 |
| 69.0 | 67.8 | 43.0 | +61% | Portfolio of renewable power generation gross capacity (GW)1,2,3 | 69.0 | 43.0 | +61% |
| 16.8 | 16.0 | 10.3 | +64% | o/w installed capacity | 16.8 | 10.3 | +64% |
| 6.1 | 5.4 | 6.5 | -6% | o/w capacity in construction | 6.1 | 6.5 | -6% |
| 46.0 | 46.4 | 26.2 | +76% | o/w capacity in development | 46.0 | 26.2 | +76% |
| 33.4 | 33.9 | 28.0 | +19% | Gross renewables capacity with PPA (GW)1,2,3 | 33.4 | 28.0 | +19% |
| 45.5 | 45.2 | 31.7 | +43% | Portfolio of renewable power generation net capacity (GW)3 | 45.5 | 31.7 | +43% |
| 7.7 | 7.4 | 5.1 | +50% | o/w installed capacity | 7.7 | 5.1 | +50% |
| 4.1 | 3.5 | 4.6 | -10% | o/w capacity in construction | 4.1 | 4.6 | -10% |
| 33.6 | 34.2 | 22.0 | +53% | o/w capacity in development | 33.6 | 22.0 | +53% |
| 9.4 | 8.5 | 6.7 | +42% | Net power production (TWh)4 | 33.2 | 21.2 | +57% |
| 3.3 | 2.4 | 1.9 | +74% | incl. Power production from renewables | 10.4 | 6.8 | +53% |
| 6.1 | 6.3 | 6.1 | +1% | Clients power - BtB and BtC (Million)3 | 6.1 | 6.1 | +1% |
| 2.7 | 2.8 | 2.7 | +1% | Clients gas - BtB and BtC (Million)3 | 2.7 | 2.7 | +1% |
| 14.6 | 12.1 | 16.1 | -10% | Sales power - BtB and BtC (TWh) | 55.3 | 56.6 | -2% |
| 28.1 | 14.2 | 31.2 | -10% | Sales gas - BtB and BtC (TWh) | 96.3 | 101.2 | -5% |
1 Includes 20% of Adani Green Energy Ltd’s (AGEL) gross capacity effective first quarter 2021.
2 Includes 50% of Clearway Energy Group’s gross capacity effective third quarter 2022.
3 End of period data.
4 Solar, wind, hydroelectric and combined-cycle gas turbine (CCGT) plants.
Gross installed renewable electricity generation capacity reached 16.8 GW at year-end 2022, up 6.5 GW year-on-year, including nearly 4 GW from the acquisition of 50% of Clearway Energy Group in the United States and 0.8 GW from the start-up of the Al Kharsaah photovoltaic project in Qatar.
Net electricity generation stood at 9.4 TWh in the fourth quarter 2022 and 33.2 TWh at year-end 2022, up 57% year-on-year due to higher utilization rates of flexible power plants (CCGT) as well as a 53% increase in generation from renewable sources.
Adjusted net operating income for Integrated Power segment was:
| · | $1.0 billion for the full year 2022, up nearly 60% compared to $0.6 billion contribution for the full year 2021, driven by growth in power generation. |
Integrated Power cash flow was:
| · | $1.0 billion for the full year 2022, up nearly 50% compared to $0.7 billion contribution for the full year 2021, for the same reason. |
B.2. Exploration & Production segment
1. Production
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Hydrocarbon production | 2022 | 2021 | 2022 vs 2021 | ||
| 2,309 | 2,251 | 2,290 | +1% | EP (kboe/d) | 2,296 | 2,290 | - | ||
| 1,512 | 1,454 | 1,441 | +5% | Liquids (kb/d) | 1,466 | 1,437 | +2% | ||
| 4,261 | 4,300 | 4,631 | -8% | Gas (Mcf/d) | 4,492 | 4,662 | -4% | ||
2. Results
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in
millions of dollars, except effective tax rate |
2022 | 2021 | 2022 vs 2021 |
| 2,600 | 2,670 | 2,068 | +26% | External Sales | 9,942 | 7,246 | +37% |
| 7,950 | 8,492 | 5,894 | +35% | Operating income | 32,496 | 16,310 | +99% |
| (3,874) | (2,643) | 74 | ns | Net income (loss) from equity affiliates and other items | (9,943) | (760) | ns |
| 54.4% | 55.4% | 49.7% | - | Effective tax rate* | 50.8% | 45.2% | - |
| (4,635) | (5,071) | (3,124) | ns | Tax on net operating income | (17,455) | (7,506) | ns |
| (559) | 778 | 2,844 | ns | Net operating income | 5,108 | 8,044 | -36% |
| 4,087 | 3,439 | 681 | x6.0 | Adjustments affecting net operating income | 12,371 | 2,395 | x5.2 |
| 3,528 | 4,217 | 3,525 | - | Adjusted net operating income** | 17,479 | 10,439 | +67% |
| 316 | 377 | 366 | -14% | including income from equity affiliates | 1,335 | 1,230 | +9% |
| 2,219 | 1,989 | 2,196 | +1% | Organic investments | 7,507 | 6,690 | +12% |
| 105 | (126) | (162) | ns | Net acquisitions | 2,520 | (167) | ns |
| 2,324 | 1,863 | 2,034 | +14% | Net investments | 10,027 | 6,523 | +54% |
*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 32 of this exhibit.
The Exploration & Production segment’s adjusted net operating income was:
| · | $3,528 million in the fourth quarter 2022, stable year-on-year, due to the rise in oil prices, and despite the increase in taxes, particularly in the United Kingdom, |
| · | $17,479 million for the full year 2022, up 67% year-on-year, thanks to higher oil and gas prices. |
Compared to the third quarter 2022, adjusted net operating income was down 16% in the fourth quarter 2022, due to lower oil and gas prices.
Adjusted net operating income for the Exploration & Production segment excludes special items. The exclusion of special items had:
| · | a positive impact of $4,087 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a positive impact of $681 million in the fourth quarter 2021, |
| · | a positive impact of $12,371 million in the full year 2022 on the segment’s adjusted net operating income, compared to a positive impact of $2,395 million for the full year 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)2 was:
| · | $4,988 million in the fourth quarter 2022, down 12% year-on-year, due to higher taxes, particularly in the United Kingdom, and despite rising oil prices, |
| · | $26,080 million for the full year 2022, up 39% year-on-year, thanks to higher oil and gas prices. |
Compared to the third quarter 2022, operating cash flow before working capital changes without financial charges (DACF)2 was down 22% in the fourth quarter 2022, due to lower oil and gas prices, and despite higher production.
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| · | $4,035 million for the fourth quarter 2022, down 53% compared to $8,624 million in the fourth quarter 2021. |
| · | $27,654 million for the full year 2022, up 26% compared to $22,009 million for the full year 2021. |
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.
The impact of the Energy Profit Levy (EPL) in the United Kingdom on current income was $0.4 billion in the fourth quarter 2022, and $1.0 billion for the full year 2022. The negative impact of the EPL on deferred taxes was treated as a non-recurring item, amounting to $0.6 billion for the full year 2022 and $0.3 billion in the fourth quarter 2022.
B.3. Downstream (Refining & Chemicals and Marketing & Services segments)
1. Results
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 | |
| 51,287 | 54,867 | 46,635 | +10% | External sales | 222,279 | 167,888 | +32% | |
| 947 | 1,769 | 1,153 | -18% | Operating income | 10,671 | 5,923 | +80% | |
| 99 | 205 | 311 | -68% | Net income (loss) from equity affiliates and other items | 865 | 626 | +38% | |
| (1,011) | (408) | (398) | ns | Tax on net operating income | (3,331) | (1,806) | ns | |
| 35 | 1,566 | 1,066 | -97% | Net operating income | 8,205 | 4,743 | +73% | |
| 1,786 | 847 | (34) | ns | Adjustments affecting net operating income | 647 | (1,216) | ns | |
| 1,821 | 2,413 | 1,032 | +76% | Adjusted net operating income* | 8,852 | 3,527 | x2.5 | |
| 1,023 | 453 | 1,267 | -19% | Organic investments | 2,354 | 2,576 | -9% | |
| (28) | (6) | (281) | ns | Net acquisitions | (159) | (368) | ns | |
| 995 | 447 | 986 | +1% | Net investments | 2,195 | 2,208 | -1% |
* Detail of adjustment items shown in the business segment information starting on page 32 of this exhibit.
The Downstream segment’s operating cash flow before working capital changes without financial charges (DACF)3 was:
| · | $1,681 million in the fourth quarter 2022, up 8% compared to $1,559 million in the fourth quarter 2021, |
| · | $10,069 million for the full year 2022, up 83% compared to $5,502 million for the full year 2021. |
The Downstream segment’s cash flow from operations excluding financial charges, except those related to leases was:
| · | $939 million for the fourth quarter 2022, down 67% compared to $2,832 million in the fourth quarter 2021, |
| · | $11,787 million for the full year 2022, up 34% compared to $8,806 million for the full year 2021. |
B.4. Refining & Chemicals segment
1. Refinery and petrochemicals throughput and utilization rates
| 4Q22 |
3Q22 |
4Q21 | 4Q22 vs 4Q21 |
Refinery throughput and utilization rate* |
2022 | 2021 | 2022 vs 2021 | |
| 1,389 | 1,599 | 1,279 | +9% | Total refinery throughput (kb/d) | 1,472 | 1,180 | +25% | |
| 312 | 431 | 223 | +40% | France | 348 | 190 | +83% | |
| 580 | 656 | 612 | -5% | Rest of Europe | 623 | 568 | +10% | |
| 497 | 512 | 444 | +12% | Rest of world | 501 | 423 | +18% | |
| 77% | 88% | 73% | - | Utilization rate based on crude only** | 82% | 64% | - |
* 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.
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Petrochemicals
production and utilization rate |
2022 | 2021 | 2022 vs 2021 |
| 1,095 | 1,299 | 1,460 | -25% | Monomers* (kt) | 5,005 | 5,775 | -13% |
| 917 | 1,171 | 1,231 | -26% | Polymers (kt) | 4,549 | 4,938 | -8% |
| 66% | 80% | 90% | - | Steamcracker utilization rate** | 76% | 90% | - |
* Olefins
** Based on olefins production from steam crackers and their treatment capacity at the start of the year.
Refinery throughput was:
| · | down 13% over the quarter due to the impact of strikes on French facilities and a planned shutdown at the Antwerp platform in Belgium, |
| · | up 9% year-on-year in the fourth quarter 2022, due to the recovery in demand, particularly in Europe and the United States, and the restart of the Donges refinery in France in the second quarter of 2022, partially offset by the items above, |
| · | up 25% for the full year 2022, due to the increase in the utilization rate of refineries. |
3 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.
Petrochemicals production was:
| · | down 25% year-on-year in the fourth quarter of 2022 for monomers and 26% for polymers, due to the impact of strikes on French facilities and an unplanned shutdown on the BTP platform in the United States, |
| · | for the full year 2022 compared to the full year 2021, down 13% for monomers and 8% for polymers, after the very strong post-Covid increase observed in 2021. |
2. Results
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 | |
| 26,650 | 28,899 | 24,781 | +8% | External sales | 121,618 | 87,600 | +39% | |
| 681 | 1,296 | 610 | +12% | Operating income | 8,308 | 3,564 | x2.3 | |
| 161 | 219 | 228 | -29% | Net income (loss) from equity affiliates and other items | 885 | 518 | +71% | |
| (898) | (255) | (234) | ns | Tax on net operating income | (2,544) | (1,068) | ns | |
| (56) | 1,260 | 604 | ns | Net operating income | 6,649 | 3,014 | x2.2 | |
| 1,543 | 675 | (51) | ns | Adjustments affecting net operating income | 653 | (1,105) | ns | |
| 1,487 | 1,935 | 553 | x2.7 | Adjusted net operating income* | 7,302 | 1,909 | x3.8 | |
| 585 | 224 | 680 | -14% | Organic investments | 1,319 | 1,502 | -12% | |
| (5) | 1 | (156) | ns | Net acquisitions | (38) | (217) | ns | |
| 580 | 225 | 524 | +11% | Net investments | 1,281 | 1,285 | - |
* Detail of adjustment items shown in the business segment information starting on page 32 of this exhibit.
Adjusted net operating income for the Refining & Chemicals segment was:
| · | $1,487 million in the fourth quarter 2022, 2.7 times higher than in the fourth quarter 2021, driven by high refining margins, |
| · | $7,302 million for the full year 2022, 3.8 times higher than the full year 2021, due to high refining margins in Europe and the United States and higher refinery utilization rates. |
Compared to the third quarter 2022, adjusted net operating income was down 23% in the fourth quarter, due to the impact of strikes in France, planned maintenance at the Antwerp refinery, and less favorable market conditions in petrochemicals.
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 positive impact of $586 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a negative impact of $74 million in the fourth quarter 2021, |
| · | a negative impact of $336 million for the full year 2022 on the segment’s adjusted net operating income, compared to a negative impact of $1,296 million for the full year 2021. |
The exclusion of special items had:
| · | a positive impact of $957 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a positive impact of $23 million in the fourth quarter 2021, |
| · | a positive impact of $989 million for the full year 2022 on the segment’s adjusted net operating income, compared to a positive impact of $191 million for the full year 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)4 was:
| · | $1,144 million in the fourth quarter 2022, up 32% compared to $865 million in the fourth quarter 2021 due to higher margins, |
| · | $7,704 million for the full year 2022, 2.6 times higher compared to $2,946 million for the full year 2021 due to higher refining margins and throughput. |
Compared to the third quarter 2022, operating cash flow before working capital changes without financial charges (DACF)4 was down 47%, mainly due to the impact of $719 million for the European Solidarity Contribution for 2022 refining activities.
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| · | $232 million for the fourth quarter 2022, down 91% compared to the fourth quarter 2021, |
| · | $8,663 million for the full year 2022, up 34% compared to the full year 2021. |
4 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.
B.5. Marketing & Services segment
1. Petroleum product sales
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Sales in kb/d* | 2022 | 2021 | 2022 vs 2021 | |
| 1,450 | 1,495 | 1,553 | -7% | Total Marketing & Services sales | 1,468 | 1,503 | -2% | |
| 816 | 873 | 868 | -6% | Europe | 824 | 826 | - | |
| 634 | 622 | 684 | -7% | Rest of world | 644 | 677 | -5% |
* Excludes trading and bulk refining sales.
Sales of petroleum products were down 3% quarter-on-quarter and 7% year-on-year, due to lower demand related to high oil product prices and above-normal temperatures in Europe for heating oil.
Sales of petroleum products were down 2% for the full year 2022 compared to the full year 2021, as lower sales to professional and industrial customers, particularly in Europe, were partially offset by the recovery of aviation and network activities worldwide.
2. Results
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 | |
| 24,637 | 25,968 | 21,854 | +13% | External sales | 100,661 | 80,288 | +25% | |
| 266 | 473 | 543 | -51% | Operating income | 2,363 | 2,359 | - | |
| (62) | (14) | 83 | ns | Net income (loss) from equity affiliates and other items | (20) | 108 | ns | |
| (113) | (153) | (164) | ns | Tax on net operating income | (787) | (738) | ns | |
| 91 | 306 | 462 | -80% | Net operating income | 1,556 | 1,729 | -10% | |
| 243 | 172 | 17 | x14.3 | Adjustments affecting net operating income | (6) | (111) | ns | |
| 334 | 478 | 479 | -30% | Adjusted net operating income* | 1,550 | 1,618 | -4% | |
| 438 | 229 | 587 | -25% | Organic investments | 1,035 | 1,074 | -4% | |
| (23) | (7) | (125) | ns | Net acquisitions | (121) | (151) | ns | |
| 415 | 222 | 462 | -10% | Net investments | 914 | 923 | -1% |
* Detail of adjustment items shown in the business segment information starting on page 32 of this exhibit.
Adjusted net operating income for the Marketing & Services segment was:
| · | $334 million in the fourth quarter 2022, down 30% year-on-year, |
| · | $1,550 million for the full year 2022, down 4% year-on-year, mainly impacted by the evolution of the €-$ exchange rate. |
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 positive impact of $137 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a negative impact of $47 million in the fourth quarter 2021, | |
| · | a negative impact of $194 million for the full year 2022 on the segment’s adjusted net operating income, compared to a negative impact of $236 million for the full year 2021. |
The exclusion of special items had:
| · | a positive impact of $106 million in the fourth quarter 2022 on the segment’s adjusted net operating income, compared to a positive impact of $64 million in the fourth quarter 2021, | |
| · | a positive impact of $188 million for the full year 2022 on the segment’s adjusted net operating income, compared to a positive impact of $125 million for the full year 2021. |
The segment’s operating cash flow before working capital changes without financial charges (DACF)5 was:
| · | $537 million in the fourth quarter 2022, down 23% compared to $694 million in the fourth quarter 2021, | |
| · | $2,365 million for the full year 2022, down 7% compared to $2,556 for the full year 2021. |
The segment’s cash flow from operations excluding financial charges, except those related to leases was:
| · | $707 million for the fourth quarter 2022, up 83% compared to $386 million for the fourth quarter 2021, | |
| · | $3,124 million for the full year 2022, up 34% compared to $2,333 million for the full year 2021. |
5 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.
C. TOTALENERGIES RESULTS
1. Net income (TotalEnergies share)
Net income (TotalEnergies share) was:
| · | $3,264 million in the fourth quarter 2022, a decrease of 44% compared to $5,837 million in the fourth quarter 2021. | |
| · | $20,526 million for the full year 2022, an increase of 28% compared to $16,032 million for the full year 2021. |
Adjusted net income (TotalEnergies share) was:
| · | $7,561 million in the fourth quarter 2022 compared to $6,825 million in the fourth quarter 2021, due to higher oil and gas prices and refining margins. |
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value6.
Total adjustments affecting net income7 were $(4,297) million in the fourth quarter 2022, consisting mainly of $(3.8) billion impairments and exceptional provisions, including $(4.1) billion related to Russia (deconsolidation of Novatek) and a $0.7 billion impairment reversal in Canada, $(0.7) billion stock effect, $(1.4) billion related to the impacts of the European Solidarity Contribution, of the Energy Profits Levy in the United Kingdom on deferred tax, and of the electricity generation infra-marginal income contribution in France and $2.0 billion of fair value change effects.
Total adjustments affecting net income7 were $(15,671) million for the full year 2022, consisting mainly of $(15.7) billion impairments and exceptional provisions, including $(14.8) billion in related to Russia and $(1.0) billion related to the withdrawal from the North Platte project in the United States, $(1.7) billion related to the impacts of the European Solidarity Contribution, of the Energy Profits Levy in the United Kingdom on deferred tax, and of the electricity generation infra-marginal income contribution in France, $1.4 billion capital gain on the partial sale of SunPower shares and the revaluation of the retained and consolidated share using the equity method and $1.1 billion of fair value change effects.
2. Fully-diluted shares and share buybacks
The number of fully-diluted shares was 2,502 million on December 31, 2022.
As part of its shareholder return policy, as announced in October 2022, TotalEnergies repurchased 34.7 million shares for cancellation in the fourth quarter of 2022 for $2 billion. For the full year 2022, 128.9 million shares were repurchased for cancellation, representing 4.92% of the share capital, for $7 billion.
3. Acquisitions - Asset sales
Acquisitions were:
| · | $292 million in the fourth quarter 2022, notably for the acquisition of an additional 4.08% of the Waha concessions in Libya, | |
| · | $5,872 million for the full-year 2022 for the above item as well as payments related to the award of the Atapu and Sépia production sharing contracts in Brazil, the acquisition of an interest in Clearway Energy Group and the bonus related to the New York Bight offshore wind concession in the United States. |
Asset sales were:
| · | $425 million in the fourth quarter 2022, notably related to farm-downs in the Integrated Power business and the disposal of interests in Block 14 in Angola, | |
| · | $1,421 million for the full-year 2022 related to the above items as well as SunPower's disposal of its Enphase shares, the partial disposal of the Landivisiau power generation plant in France, the sale of the interest in the Sarsang field in Iraq, and an additional payment related to the 2020 sale of interests in the CA1 offshore block in Brunei. |
4. Cash flow
TotalEnergies’ cash flow from operating activities was:
| · | $5,618 million in the fourth quarter 2022, a decrease of 52% compared to $11,621 million in the fourth quarter 2021, and | |
| · | $47,367 million for the full year 2022, an increase of 56% compared to $30,410 million for the full year 2021. |
6 See “Analysis of business segment results” on page 4 and “Adjustment Items To Net Income (TotalEnergies Share)” on page 20 for further details.
7 Details shown on pages 20 of this exhibit and to the consolidated financial statements for the fourth quarter 2022.
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 (effective first quarter 2020) and including organic loan repayment from equity affiliates was an increase of $3,517 million in the fourth quarter 2022, compared to a decrease of $2,260 million in the fourth quarter 2021. In the fourth quarter 2022, the change in working capital was an increase of $3,791 million in accordance with IFRS. The difference of $274 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $895 million, (ii) less the mark-to-market effect of iGRP’s contracts of $1,544 million, (iii) plus the capital gains from renewables project sale of $40 million and (iv) plus the organic loan repayments from equity affiliates of $335 million.
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 (effective first quarter 2020) and including organic loan repayment from equity affiliates was a decrease of $1,638 million for the full year 2022, compared to a decrease of $1,270 million for the full year 2021. For the full year 2022, the change in working capital was a decrease of $1,191 million in accordance with IFRS. The difference of $447 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $501 million, (ii) plus the mark-to-market effect of iGRP’s contracts of $1,640 million, (iii) less the capital gains from renewables project sale of $64 million and (iv) less the organic loan repayments from equity affiliates of $1,630 million.
Operating cash flow before working capital changes8 was $9,135 million in the fourth quarter 2022, down 2% compared to $9,361 million in the fourth quarter 2021 and $45,729 million for the full year 2022, up 57% compared to $29,140 million for the full year 2021.
Operating cash flow before working capital changes without financial charges (DACF)9 was $9,361 million in the fourth quarter 2022, down 4% compared to $9,759 million in the fourth quarter 2021 and $47,025 million for the full year 2022, up 53% compared to $30,660 million for the full year 2021.
The cash flow from operating activities was $5,618 million in the fourth quarter 2022, compared to operating cash flow before working capital changes of $9,135 million, reflecting the $3.1 billion increase in working capital, mainly due to (a) a reduction in tax liabilities linked to the pace of tax payments and the fall in oil and gas prices, notably in Norway and the United Kingdom, partially offset by the European Solidarity Contribution, (b) the increase in margin calls and the seasonality of the gas and electricity supply activity and (c) the price and volume effect on inventories.
TotalEnergies’ net cash flow10 was:
| · | $5,333 million in the fourth quarter 2022 compared to $5,076 million a year earlier, reflecting the $226 million decrease in operating cash flow before working capital changes and the $483 million decrease in net investments to $3,802 million in the fourth quarter 2022, | |
| · | $29,426 million for the full year 2022 compared to $15,833 million a year earlier, reflecting the $16.6 billion increase in operating cash flow before working capital changes and the $3.0 billion increase in net investments to $16,303 million this year. |
D. PROFITABILITY
Return on equity was 32.5% for the full year 2022.
| 01/01/2022- | 10/01/2021- | 01/01/2021- | |
| in millions of dollars | 12/31/2022 | 09/30/2022 | 12/31/2021 |
| Adjusted net income | 36,657 | 35,790 | 18,391 |
| Average adjusted shareholders' equity | 112,831 | 113,861 | 108,504 |
| Return on equity (ROE) | 32.5% | 31.4% | 16.9% |
Return on average capital employed was 28.2% for the full year 2022.
| 01/01/2022- | 10/01/2021- | 01/01/2021- | |
| in millions of dollars | 12/31/2022 | 09/30/2022 | 12/31/2021 |
| Adjusted net operating income | 38,212 | 37,239 | 19,766 |
| Average capital employed | 135,312 | 136,902 | 142,215 |
| ROACE | 28.2% | 27.2% | 13.9% |
8 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 21 of this exhibit.
9 DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.
10 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
E. Annual 2023 SENSITIVITIES*
| Change | Estimated impact on adjusted net operating income |
Estimated impact on cash flow from operations | |
| Dollar | +/- 0.1 $ per € | -/+ 0.1 B$ | ~0 B$ |
| Average liquids price** | +/- 10$/b | +/- 2.5 B$ | +/- 3.0 B$ |
| European gas price – NBP / TTF | +/- 2 $/Mbtu | +/- 0.4 B$ | +/- 0.4 B$ |
| Variable cost margin, European refining (VCM) | +/- 10 $/t | +/- 0.4 B$ | +/- 0.5 B$ |
* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about TotalEnergies’ portfolio in 2023. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed on page 23.
** In a 80 $/b Brent environment.
The revised 2023 sensitivities for adjusted net operating income and cash flow take into account, in particular, the Energy Profit Levy in the United Kingdom and the deconsolidation of the stake in PAO Novatek.
F. SUMMARY AND OUTLOOK
At the start of 2023, oil prices are moving between $80-90/b in an uncertain environment, where the possible worldwide economic slowdown could be counterbalanced by the recovery of China, global demand being expected to rise in 2023 to more than 100 Mb/d. In this context, OPEC+ countries have shown their willingness to keep prices above $80/b. Refining margins in Europe, particularly for distillates, are expected to remain supported by the effects of the European embargo on Russian petroleum products from February 5, 2023.
The tensions on European gas prices seen in 2022 are expected to continue into 2023, as the limited growth in global LNG production is supposed to meet both higher European LNG demand to replace Russian gas received in 2022 and higher Chinese LNG demand.
Since December 31, 2022, the production related to TotalEnergies' participation in Novatek, of 0.3 Mboe/d in 2022, is no longer consolidated. Excluding Novatek, TotalEnergies expects its hydrocarbon production to increase by approximately 2% to 2.5 Mboe/d in 2023, driven by three main start-ups planned for the year: Block 10 in Oman, Mero 2 in Brazil, and Absheron in Azerbaijan.
Continuing its growth momentum in LNG, TotalEnergies is strengthening its unique position in Europe in 2023 with the commissioning of two floating regasification terminals, the first of which, located in Lubmin, Germany, is already operational.
Having generated $1 billion in cash flow in 2022, the Integrated Power business will continue to grow in 2023 with power generation expected to reach more than 40 TWh, a 30% increase year-on-year, benefiting from the full integration of Total Eren, leading to a comparable rise in cash flow.
The implementation of an energy savings program will strengthen Downstream’s competitiveness, allowing it to benefit from a favorable European refining environment.
In 2023, TotalEnergies expects net investments of $16-18 billion, including $5 billion dedicated to low-carbon energies.
Supported by the strength of the Company's balance sheet and its cash generation potential, the Board of Directors confirmed a shareholder return policy for 2023 targeting a cash pay-out of between 35% and 40% as well as the following cash flow allocation priorities:
| · | a sustainable ordinary dividend through cycles, that was not cut during the Covid crisis, and whose increase is supported by underlying cash flow growth, |
| · | investments to support of a strategy balanced between the various energies, |
| · | maintaining a strong balance sheet with a target rating at an "AA" level, |
| · | buybacks to share surplus cash flow generated at high prices and possibly a special dividend in the event of very high prices. |
For 2023, this shareholder return policy will combine a 7.2% increase to 0.74 €/share in interim dividends and share buybacks of $2 billion planned for the first quarter.
TotalEnergies confirms its project to spin-off its affiliate, TotalEnergies EP Canada, by listing it on the Toronto stock exchange. TotalEnergies intends to retain a 30% stake in the listed entity, and to distribute 70% of the shares to TotalEnergies SE’s shareholders, through a special dividend in kind. This transaction would be subject to the approvals that will be taken by the General Assembly of TotalEnergies on May 26th, 2023.
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.
RESULTS FROM RUSSIAN ASSETS
| Russian Upstream Assets (M$) | 4Q22 | 3Q22 | 2022 |
| Net income (TotalEnergies share) | (3,466) | (1,907) | (11,578) |
| Cash flow from operations | 732 | 349 | 1,480 |
Capital employed by TotalEnergies in Russia as of December 31, 2022 was $2,874 million after taking into account in the fourth quarter 2022 a $4.1 billion impairment related to the decision to no longer equity account for the 19.4% stake in Novatek.
OPERATING INFORMATION BY SEGMENT
Company’s production (Exploration & Production + iGRP)
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Combined liquids and gas production by region (kboe/d) |
2022 | 2021 | 2022 vs 2021 |
| 994 | 920 | 1,063 | -7% | Europe and Central Asia | 982 | 1,022 | -4% |
| 477 | 463 | 508 | -6% | Africa | 474 | 532 | -11% |
| 703 | 692 | 682 | +3% | Middle East and North Africa | 687 | 667 | +3% |
| 442 | 449 | 363 | +22% | Americas | 425 | 372 | +14% |
| 196 | 145 | 235 | -17% | Asia-Pacific | 198 | 226 | -12% |
| 2,812 | 2,669 | 2,852 | -1% | Total production | 2,765 | 2,819 | -2% |
| 670 | 656 | 739 | -9% | includes equity affiliates | 682 | 732 | -7% |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Liquids production by region (kb/d) | 2022 | 2021 | 2022 vs 2021 |
| 348 | 302 | 378 | -8% | Europe and Central Asia | 334 | 366 | -9% |
| 358 | 352 | 379 | -5% | Africa | 358 | 398 | -10% |
| 565 | 557 | 534 | +6% | Middle East and North Africa | 552 | 516 | +7% |
| 259 | 260 | 174 | +48% | Americas | 238 | 179 | +33% |
| 40 | 23 | 45 | -10% | Asia-Pacific | 37 | 40 | -8% |
| 1,570 | 1,494 | 1,509 | +4% | Total production | 1,519 | 1,500 | +1% |
| 199 | 202 | 205 | -3% | includes equity affiliates | 203 | 206 | -2% |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Gas production by region (Mcf/d) | 2022 | 2021 | 2022 vs 2021 |
| 3,460 | 3,322 | 3,683 | -6% | Europe and Central Asia | 3,476 | 3,524 | -1% |
| 592 | 559 | 664 | -11% | Africa | 584 | 681 | -14% |
| 745 | 740 | 825 | -10% | Middle East and North Africa | 739 | 838 | -12% |
| 1,030 | 1,061 | 1,064 | -3% | Americas | 1,049 | 1,086 | -3% |
| 854 | 685 | 1,092 | -22% | Asia-Pacific | 911 | 1,074 | -15% |
| 6,681 | 6,367 | 7,328 | -9% | Total production | 6,759 | 7,203 | -6% |
| 2,535 | 2,444 | 2,889 | -12% | includes equity affiliates | 2,581 | 2,842 | -9% |
Downstream (Refining & Chemicals and Marketing & Services)
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Petroleum product sales by region (kb/d) | 2022 | 2021 | 2022 vs 2021 |
| 1,665 | 1,816 | 1,668 | - | Europe | 1,732 | 1,582 | +10% |
| 743 | 690 | 780 | -5% | Africa | 732 | 701 | +4% |
| 740 | 907 | 817 | -9% | Americas | 836 | 800 | +5% |
| 558 | 569 | 526 | +6% | Rest of world | 591 | 500 | +18% |
| 3,706 | 3,982 | 3,791 | -2% | Total consolidated sales | 3,891 | 3,581 | +9% |
| 388 | 438 | 437 | -11% | Includes bulk sales | 411 | 383 | +7% |
| 1,868 | 2,049 | 1,801 | +4% | Includes trading | 2,012 | 1,696 | +19% |
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
Petrochemicals production* (kt) | 2022 | 2021 | 2022 vs 2021 |
| 835 | 1,078 | 1,249 | -33% | Europe | 4,196 | 5,069 | -17% |
| 477 | 670 | 689 | -31% | Americas | 2,387 | 2,629 | -9% |
| 700 | 722 | 753 | -7% | Middle-East and Asia | 2,971 | 3,014 | -1% |
* Olefins, polymers
RENEWABLES
| 4Q22 | 3Q22 | |||||||||||||||||||
| Onshore | Offshore | Onshore | Offshore | |||||||||||||||||
| Installed power generation gross capacity (GW) (1),(2) |
Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | ||||||||||
| France | 0.8 | 0.6 | 0.0 | 0.1 | 1.5 | 0.7 | 0.6 | 0.0 | 0.1 | 1.4 | ||||||||||
| Rest of Europe | 0.2 | 1.1 | 0.3 | 0.0 | 1.6 | 0.2 | 1.1 | 0.2 | 0.0 | 1.4 | ||||||||||
| Africa | 0.1 | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.0 | 0.0 | 0.0 | 0.1 | ||||||||||
| Middle East | 1.2 | 0.0 | 0.0 | 0.0 | 1.2 | 0.7 | 0.0 | 0.0 | 0.0 | 0.7 | ||||||||||
| North America | 2.9 | 2.1 | 0.0 | 0.1 | 5.1 | 2.9 | 2.1 | 0.0 | 0.0 | 5.0 | ||||||||||
| 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 | 0.4 | 0.0 | 0.0 | 5.3 | 4.9 | 0.3 | 0.0 | 0.0 | 5.3 | ||||||||||
| Asia-Pacific | 1.2 | 0.0 | 0.1 | 0.0 | 1.4 | 1.2 | 0.0 | 0.1 | 0.0 | 1.3 | ||||||||||
| Total | 11.7 | 4.5 | 0.4 | 0.2 | 16.8 | 11.1 | 4.4 | 0.3 | 0.2 | 16.0 | ||||||||||
| 4Q22 | 3Q22 | |||||||||||||||||||
| Onshore | Offshore | Onshore | Offshore | |||||||||||||||||
| Power generation gross capacity from renewables in construction (GW) (1),(2) |
Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | ||||||||||
| France | 0.2 | 0.1 | 0.0 | 0.1 | 0.4 | 0.2 | 0.1 | 0.0 | 0.1 | 0.5 | ||||||||||
| Rest of Europe | 0.1 | 0.0 | 0.9 | 0.0 | 1.0 | 0.1 | 0.0 | 1.0 | 0.0 | 1.1 | ||||||||||
| Africa | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||
| Middle East | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 | 0.0 | 0.4 | ||||||||||
| North America | 2.6 | 0.0 | 0.0 | 0.5 | 3.1 | 1.6 | 0.0 | 0.0 | 0.2 | 1.7 | ||||||||||
| South America | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||
| India | 0.8 | 0.2 | 0.0 | 0.0 | 1.0 | 0.8 | 0.2 | 0.0 | 0.0 | 1.0 | ||||||||||
| Asia-Pacific | 0.1 | 0.0 | 0.5 | 0.0 | 0.6 | 0.1 | 0.0 | 0.5 | 0.0 | 0.7 | ||||||||||
| Total | 3.8 | 0.3 | 1.4 | 0.6 | 6.1 | 3.3 | 0.3 | 1.5 | 0.2 | 5.4 | ||||||||||
| 4Q22 | 3Q22 | |||||||||||||||||||
| Onshore | Offshore | Onshore | Offshore | |||||||||||||||||
| Power generation
gross capacity from renewables in development (GW) (1),(2) |
Solar | Wind | Wind | Other | Total | Solar | Wind | Wind | Other | Total | ||||||||||
| France | 1.6 | 0.4 | 0.0 | 0.0 | 2.0 | 2.1 | 0.4 | 0.0 | 0.0 | 2.5 | ||||||||||
| Rest of Europe | 3.8 | 0.4 | 4.4 | 0.1 | 8.6 | 4.8 | 0.3 | 4.4 | 0.1 | 9.6 | ||||||||||
| Africa | 0.6 | 0.1 | 0.0 | 0.1 | 0.9 | 0.6 | 0.1 | 0.0 | 0.1 | 0.9 | ||||||||||
| Middle East | 0.6 | 0.0 | 0.0 | 0.0 | 0.6 | 0.5 | 0.0 | 0.0 | 0.0 | 0.5 | ||||||||||
| North America | 10.8 | 3.4 | 4.1 | 4.1 | 22.4 | 11.8 | 3.4 | 4.0 | 4.5 | 23.7 | ||||||||||
| South America | 0.8 | 1.1 | 0.0 | 0.2 | 2.0 | 0.7 | 0.5 | 0.0 | 0.2 | 1.4 | ||||||||||
| India | 4.4 | 0.1 | 0.0 | 0.0 | 4.5 | 3.9 | 0.1 | 0.0 | 0.0 | 4.0 | ||||||||||
| Asia-Pacific | 2.2 | 0.1 | 2.3 | 0.4 | 5.0 | 2.0 | 0.3 | 1.2 | 0.3 | 3.7 | ||||||||||
| Total | 24.8 | 5.5 | 10.8 | 4.9 | 46.0 | 26.5 | 5.1 | 9.6 | 5.3 | 46.4 | ||||||||||
1 Includes 20% of gross capacity of Adani Green Energy Limited and 50% of Clearway Energy Group.
2 End-of-period data.
ADJUSTMENT ITEMS TO NET INCOME (TOTALENERGIES SHARE)
| 4Q22 | 3Q22 | 4Q21 | in millions of dollars | 2022 | 2021 |
| (5,585) | (2,186) | (1,074) | Special items affecting net income (TotalEnergies share) | (17,310) | (3,329) |
| - | 1,391 | (170) | Gain (loss) on asset sales | 1,391 | (1,726) |
| (14) | (17) | 6 | Restructuring charges | (42) | (308) |
| (3,845) | (3,118) | (670) | Impairments | (15,743) | (910) |
| (1,726) | (442) | (240) | Other | (2,916) | (385) |
| (705) | (827) | 111 | After-tax inventory effect: FIFO vs. replacement cost | 501 | (1,495) |
| 1,993 | (224) | (25) | Effect of changes in fair value | 1,138 | (194) |
| (4,297) | (3,237) | (988) | Total adjustments affecting net income | (15,671) | (2,028) |
RECONCILIATION OF NET INCOME (TOTALENERGIES SHARE) TO ADJUSTED EBITDA
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 | |
| 3,264 | 6,626 | 5,837 | -44% | Net income - TotalEnergies share | 20,526 | 16,032 | +28% | |
| 4,297 | 3,237 | 988 | x4.3 | Less: adjustment items to net income (TotalEnergies share) | 15,671 | 2,028 | x7.7 | |
| 7,561 | 9,863 | 6,825 | +11% | Adjusted net income - TotalEnergies share | 36,197 | 18,060 | x2 | |
| Adjusted items | ||||||||
| 210 | 85 | 79 | x2.7 | Add: non-controlling interests | 460 | 331 | +39% | |
| 4,530 | 6,037 | 3,606 | +26% | Add: income taxes | 20,565 | 9,211 | x2.2 | |
| 3,204 | 2,926 | 3,278 | -2% | Add: depreciation, depletion and impairment of tangible assets and mineral interests | 12,316 | 12,735 | -3% | |
| 111 | 95 | 119 | -7% | Add: amortization and impairment of intangible assets | 400 | 401 | - | |
| 719 | 633 | 483 | +49% | Add: financial interest on debt | 2,386 | 1,904 | +25% | |
| (338) | (219) | (105) | ns | Less: financial income and expense from cash & cash equivalents | (746) | (340) | ns | |
| 15,997 | 19,420 | 14,285 | +12% | Adjusted EBITDA | 71,578 | 42,302 | +69% |
INVESTMENTS – DIVESTMENTS
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 |
| 3,935 | 3,116 | 4,681 | -16% | Organic investments (a) | 11,852 | 12,675 | -6% |
| 287 | 169 | 182 | +58% | Capitalized exploration | 669 | 841 | -21% |
| 210 | 233 | 348 | -40% | Increase in non-current loans | 954 | 1,231 | -23% |
| (259) | (214) | (234) | ns | Repayment of non-current loans, excluding organic loan repayment from equity affiliates | (1,082) | (531) | ns |
| (124) | 4 | (52) | ns | Change in debt from renewable projects (TotalEnergies share) | (310) | (222) | ns |
| 292 | 1,716 | 288 | +1% | Acquisitions (b) | 5,872 | 3,284 | +79% |
| 425 | 129 | 684 | -38% | Asset sales (c) | 1,421 | 2,652 | -46% |
| 109 | (4) | 34 | x3.2 | Change in debt from renewable projects (partner share) | 279 | 134 | x2.1 |
| (133) | 1,587 | (396) | ns | Net acquisitions | 4,451 | 632 | x7 |
| 3,802 | 4,703 | 4,285 | -11% | Net investments (a + b - c) | 16,303 | 13,307 | +23% |
| 50 | - | - | ns | Other transactions with non-controlling interests (d) | 50 | 757 | -93% |
| (335) | (570) | (398) | ns | Organic loan repayment from equity affiliates (e) | (1,630) | (626) | ns |
| 233 | (8) | 86 | x2.7 | Change in debt from renewable projects financing* (f) | 589 | 356 | +65% |
| 61 | 43 | 34 | +79% | Capex linked to capitalized leasing contracts (g) | 177 | 111 | +59% |
| 8 | 7 | 27 | -70% | Expenditures related to carbon credits ( h ) | 19 | 27 | -30% |
| 3,681 | 4,075 | 3,912 | -6% | Cash flow used
in investing activities (a + b - c + d + e + f - g - h) |
15,116 | 13,656 | +11% |
* Change in debt from renewable projects (TotalEnergies share and partner share).
CASH FLOW
| 4Q22 | 3Q22 | 4Q21 | 4Q22 vs 4Q21 |
in millions of dollars | 2022 | 2021 | 2022 vs 2021 |
| 9,361 | 12,040 | 9,759 | -4% | Operating cash flow before working capital changes w/o financial charges (DACF) | 47,025 | 30,660 | +53% |
| (226) | (304) | (398) | ns | Financial charges | (1,296) | (1,520) | ns |
| 9,135 | 11,736 | 9,361 | -2% | Operating cash flow before working capital changes (a)* | 45,729 | 29,140 | +57% |
| (2,247) | 7,692 | 2,591 | ns | (Increase) decrease in working capital** | 2,831 | 188 | x15.1 |
| (895) | (1,010) | 85 | ns | Inventory effect | 501 | 1,796 | -72% |
| (40) | 0 | (19) | ns | Capital gain from renewable projects sales | (64) | (89) | ns |
| (335) | (570) | (398) | ns | Organic loan repayment from equity affiliates | (1,630) | (626) | ns |
| 5,618 | 17,848 | 11,621 | -52% | Cash flow from operations | 47,367 | 30,410 | +56% |
| 3,935 | 3,116 | 4,681 | -16% | Organic investments (b) | 11,852 | 12,675 | -6% |
| 5,200 | 8,620 | 4,680 | +11% | Free cash flow after organic investments, w/o net asset sales (a - b) | 33,877 | 16,465 | x2.1 |
| 3,802 | 4,703 | 4,285 | -11% | Net investments (c) | 16,303 | 13,307 | +23% |
| 5,333 | 7,033 | 5,076 | +5% | Net cash flow (a - c) | 29,426 | 15,833 | +86% |
* 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.
GEARING RATIO
| In millions of dollars | 12/31/2022 | 09/30/2022 | 12/31/2021 |
| Current borrowings1 | 14,065 | 15,556 | 13,645 |
| Other current financial liabilities | 488 | 861 | 372 |
| Current financial assets1,2 | (8,556) | (11,532) | (12,183) |
| Net financial assets classified as held for sale | (38) | (36) | (4) |
| Non-current financial debt1 | 36,987 | 37,506 | 41,868 |
| Non-current financial assets1 | (1,303) | (1,406) | (1,557) |
| Cash and cash equivalents | (33,026) | (35,941) | (21,342) |
| Net debt (a) | 8,617 | 5,008 | 20,799 |
| Shareholders’ equity – TotalEnergies share | 111,724 | 117,821 | 111,736 |
| Non-controlling interests | 2,846 | 2,851 | 3,263 |
| Shareholders’ equity (b) | 114,570 | 120,672 | 114,999 |
| Net-debt-to-capital ratio = a / (a+b) | 7.0% | 4.0% | 15.3% |
| Leases (c) | 8,096 | 7,669 | 8,055 |
| Net-debt-to-capital ratio including leases (a+c) / (a+b+c) | 12.7% | 9.5% | 20.1% |
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
Full year 2022
| Integrated Gas, | ||||
| Renewables & | Exploration & | Refining & | Marketing | |
| in millions of dollars | Power | Production | Chemicals | & Services |
| Adjusted net operating income | 12,144 | 17,479 | 7,302 | 1,550 |
| Capital employed at 12/31/2021* | 55,978 | 71,675 | 8,069 | 8,783 |
| Capital employed at 12/31/2022* | 49,896 | 65,784 | 7,438 | 7,593 |
| ROACE | 22.9% | 25.4% | 94.2% | 18,9% |
Twelve months ended September 30, 2022
| Integrated Gas, | ||||
| Renewables & | Exploration & | Refining & | Marketing | |
| in millions of dollars | Power | Production | Chemicals | & Services |
| Adjusted net operating income | 12,014 | 17,476 | 6,368 | 1,695 |
| Capital employed at 9/30/2021* | 52,401 | 75,499 | 9,156 | 8,281 |
| Capital employed at 9/30/2022* | 54,923 | 65,041 | 5,801 | 7,141 |
| ROACE | 22.4% | 24.9% | 85.2% | 22.2% |
Full year 2021
| Integrated Gas, | ||||
| Renewables & | Exploration & | Refining & | Marketing | |
| in millions of dollars | Power | Production | Chemicals | & Services |
| Adjusted net operating income | 6,243 | 10,439 | 1,909 | 1,618 |
| Capital employed at 12/31/2020* | 45,611 | 78,928 | 11,375 | 8,793 |
| Capital employed at 12/31/2021* | 55,978 | 71,675 | 8,069 | 8,783 |
| ROACE | 12.3% | 13.9% | 19.6% | 18.4% |
* At replacement cost (excluding after-tax inventory effect).
MAIN INDICATORS
| 4Q22 | 3Q22 | 2Q22 | 1Q21 | 4Q21 | ||
| €/$ | 1.02 | 1.01 | 1.06 | 1.12 | 1.14 | |
| Brent | ($/b) | 88.8 | 100.8 | 113.9 | 102.2 | 79.8 |
| Average liquids price* (1) | ($/b) | 80.6 | 93.6 | 102.9 | 90.1 | 72.6 |
| Average gas price* (1) | ($/Mbtu) | 12.74 | 16.83 | 11.01 | 12.27 | 11.38 |
| Average LNG price** (1) | ($/Mbtu) | 14.83 | 21.51 | 13.96 | 13.60 | 13.12 |
| Variable Cost Margin, European refining*** | ($/t) | 73.6 | 99.2 | 145.7 | 46.3 | 16.7 |
* 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 include oil, gas and LNG trading activities, respectively.
Disclaimer: Data is based on TotalEnergies’ reporting and is not audited.
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
| 4th quarter | 3rd quarter | 4th quarter | |
| (M$) (a) | 2022 | 2022 | 2021 |
| Sales | 68,582 | 69,037 | 60,348 |
| Excise taxes | (4,629) | (4,075) | (5,050) |
| Revenues from sales | 63,953 | 64,962 | 55,298 |
| Purchases, net of inventory variation | (41,555) | (42,802) | (36,161) |
| Other operating expenses | (7,354) | (6,771) | (6,680) |
| Exploration costs | (250) | (71) | (323) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,505) | (2,935) | (3,919) |
| Other income | 584 | 1,693 | 536 |
| Other expense | (2,828) | (921) | (755) |
| Financial interest on debt | (719) | (633) | (483) |
| Financial income and expense from cash & cash equivalents | 357 | 327 | 120 |
| Cost of net debt | (362) | (306) | (363) |
| Other financial income | 266 | 196 | 195 |
| Other financial expense | (150) | (112) | (138) |
| Net income (loss) from equity affiliates | (281) | (108) | 1,860 |
| Income taxes | (6,077) | (6,077) | (3,647) |
| Consolidated net income | 3,441 | 6,748 | 5,903 |
| TotalEnergies share | 3,264 | 6,626 | 5,837 |
| Non-controlling interests | 177 | 122 | 66 |
| Earnings per share ($) | 1.27 | 2.58 | 2.19 |
| Fully-diluted earnings per share ($) | 1.26 | 2.56 | 2.17 |
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
| (M$) | 4th quarter | 3rd quarter | 4th quarter | |
| 2022 | 2022 | 2021 | ||
| Consolidated net income | 3,441 | 6,748 | 5,903 | |
| Other comprehensive income | ||||
| Actuarial gains and losses | 387 | (17) | 589 | |
| Change in fair value of investments in equity instruments | (2) | 131 | 93 | |
| Tax effect | (56) | 2 | (262) | |
| Currency translation adjustment generated by the parent company | 6,800 | (4,639) | (1,900) | |
| Items not potentially reclassifiable to profit and loss | 7,129 | (4,523) | (1,480) | |
| Currency translation adjustment | (3,672) | 1,871 | 1,179 | |
| Cash flow hedge | (9,669) | 1,258 | (226) | |
| Variation of foreign currency basis spread | (14) | 9 | 4 | |
| Share of other comprehensive income of equity affiliates, net amount | 842 | 191 | 71 | |
| Other | 3 | (18) | (2) | |
| Tax effect | 2,932 | (424) | 22 | |
| Items potentially reclassifiable to profit and loss | (9,578) | 2,887 | 1,048 | |
| Total other comprehensive income (net amount) | (2,449) | (1,636) | (432) | |
| Comprehensive income | 992 | 5,112 | 5,471 | |
| TotalEnergies share | 792 | 4,969 | 5,390 | |
| Non-controlling interests | 200 | 143 | 81 |
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
| Year | Year | ||
| 2022 | 2021 | ||
| (M$) (a) | (unaudited) | ||
| Sales | 280,999 | 205,863 | |
| Excise taxes | (17,689) | (21,229) | |
| Revenues from sales | 263,310 | 184,634 | |
| Purchases, net of inventory variation | (169,448) | (118,622) | |
| Other operating expenses | (29,789) | (26,894) | |
| Exploration costs | (1,299) | (740) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (12,221) | (13,556) | |
| Other income | 2,849 | 1,312 | |
| Other expense | (7,344) | (2,317) | |
| Financial interest on debt | (2,386) | (1,904) | |
| Financial income and expense from cash & cash equivalents | 1,143 | 379 | |
| Cost of net debt | (1,243) | (1,525) | |
| Other financial income | 896 | 762 | |
| Other financial expense | (533) | (539) | |
| Net income (loss) from equity affiliates | (1,892) | 3,438 | |
| Income taxes | (22,242) | (9,587) | |
| Consolidated net income | 21,044 | 16,366 | |
| TotalEnergies share | 20,526 | 16,032 | |
| Non-controlling interests | 518 | 334 | |
| Earnings per share ($) | 7.91 | 5.95 | |
| Fully-diluted earnings per share ($) | 7.85 | 5.92 |
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
| Year | Year | ||
| 2022 | 2021 | ||
| (M$) | (unaudited) | ||
| Consolidated net income | 21,044 | 16,366 | |
| Other comprehensive income | |||
| Actuarial gains and losses | 574 | 1,035 | |
| Change in fair value of investments in equity instruments | 112 | 66 | |
| Tax effect | (96) | (411) | |
| Currency translation adjustment generated by the parent company | (4,976) | (7,202) | |
| Items not potentially reclassifiable to profit and loss | (4,386) | (6,512) | |
| Currency translation adjustment | 1,734 | 4,216 | |
| Cash flow hedge | (5,452) | 278 | |
| Variation of foreign currency basis spread | 65 | 2 | |
| Share of other comprehensive income of equity affiliates, net amount | 3,497 | 706 | |
| Other | (16) | (1) | |
| Tax effect | 1,449 | (135) | |
| Items potentially reclassifiable to profit and loss | 1,277 | 5,066 | |
| Total other comprehensive income (net amount) | (3,109) | (1,446) | |
| Comprehensive income | 17,935 | 14,920 | |
| TotalEnergies share | 17,419 | 14,616 | |
| Non-controlling interests | 516 | 304 |
CONSOLIDATED BALANCE SHEET
TotalEnergies
| December 31, | September 30, | December 31, | ||
| 2022 | 2022 | 2021 | ||
| (M$) | (unaudited) | (unaudited) | ||
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets, net | 31,931 | 36,376 | 32,484 | |
| Property, plant and equipment, net | 107,101 | 99,700 | 106,559 | |
| Equity affiliates : investments and loans | 27,889 | 28,743 | 31,053 | |
| Other investments | 1,051 | 1,149 | 1,625 | |
| Non-current financial assets | 2,731 | 2,341 | 2,404 | |
| Deferred income taxes | 5,049 | 4,434 | 5,400 | |
| Other non-current assets | 2,388 | 2,930 | 2,797 | |
| Total non-current assets | 178,140 | 175,673 | 182,322 | |
| Current assets | ||||
| Inventories, net | 22,936 | 24,420 | 19,952 | |
| Accounts receivable, net | 24,378 | 28,191 | 21,983 | |
| Other current assets | 36,070 | 73,453 | 35,144 | |
| Current financial assets | 8,746 | 11,688 | 12,315 | |
| Cash and cash equivalents | 33,026 | 35,941 | 21,342 | |
| Assets classified as held for sale | 568 | 349 | 400 | |
| Total current assets | 125,724 | 174,042 | 111,136 | |
| Total assets | 303,864 | 349,715 | 293,458 | |
| LIABILITIES & SHAREHOLDERS' EQUITY | ||||
| Shareholders' equity | ||||
| Common shares | 8,163 | 8,163 | 8,224 | |
| Paid-in surplus and retained earnings | 123,951 | 131,382 | 117,849 | |
| Currency translation adjustment | (12,836) | (16,720) | (12,671) | |
| Treasury shares | (7,554) | (5,004) | (1,666) | |
| Total shareholders' equity - TotalEnergies share | 111,724 | 117,821 | 111,736 | |
| Non-controlling interests | 2,846 | 2,851 | 3,263 | |
| Total shareholders' equity | 114,570 | 120,672 | 114,999 | |
| Non-current liabilities | ||||
| Deferred income taxes | 11,021 | 12,576 | 10,904 | |
| Employee benefits | 1,829 | 2,207 | 2,672 | |
| Provisions and other non-current liabilities | 21,402 | 22,133 | 20,269 | |
| Non-current financial debt | 45,264 | 44,899 | 49,512 | |
| Total non-current liabilities | 79,516 | 81,815 | 83,357 | |
| Current liabilities | ||||
| Accounts payable | 41,346 | 48,942 | 36,837 | |
| Other creditors and accrued liabilities | 52,275 | 80,468 | 42,800 | |
| Current borrowings | 15,502 | 16,923 | 15,035 | |
| Other current financial liabilities | 488 | 861 | 372 | |
| Liabilities directly associated with the assets classified as held for sale | 167 | 34 | 58 | |
| Total current liabilities | 109,778 | 147,228 | 95,102 | |
| Total liabilities & shareholders' equity | 303,864 | 349,715 | 293,458 |
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
| 4th quarter | 3rd quarter | 4th quarter | ||
| (M$) | 2022 | 2022 | 2021 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Consolidated net income | 3,441 | 6,748 | 5,903 | |
| Depreciation, depletion, amortization and impairment | 2,749 | 3,032 | 4,222 | |
| Non-current liabilities, valuation allowances and deferred taxes | (75) | 704 | 152 | |
| (Gains) losses on disposals of assets | 2,192 | (1,645) | (184) | |
| Undistributed affiliates' equity earnings | 1,506 | 1,290 | (843) | |
| (Increase) decrease in working capital | (3,791) | 7,407 | 2,232 | |
| Other changes, net | (404) | 312 | 139 | |
| Cash flow from operating activities | 5,618 | 17,848 | 11,621 | |
| CASH FLOW USED IN INVESTING ACTIVITIES | ||||
| Intangible assets and property, plant and equipment additions | (4,097) | (2,986) | (4,540) | |
| Acquisitions of subsidiaries, net of cash acquired | (4) | (8) | (128) | |
| Investments in equity affiliates and other securities | (260) | (2,557) | (178) | |
| Increase in non-current loans | (211) | (246) | (348) | |
| Total expenditures | (4,572) | (5,797) | (5,194) | |
| Proceeds from disposals of intangible assets and property, plant and equipment | 113 | 97 | 349 | |
| Proceeds from disposals of subsidiaries, net of cash sold | 160 | 524 | 36 | |
| Proceeds from disposals of non-current investments | 23 | 304 | 266 | |
| Repayment of non-current loans | 595 | 797 | 631 | |
| Total divestments | 891 | 1,722 | 1,282 | |
| Cash flow used in investing activities | (3,681) | (4,075) | (3,912) | |
| CASH FLOW USED IN FINANCING ACTIVITIES | ||||
| Issuance (repayment) of shares: | ||||
| - Parent company shareholders | - | (1) | - | |
| - Treasury shares | (2,551) | (1,996) | (1,658) | |
| Dividends paid: | ||||
| - Parent company shareholders | (4,356) | (1,877) | (1,991) | |
| - Non-controlling interests | (12) | (405) | (20) | |
| Net issuance (repayment) of perpetual subordinated notes | - | - | - | |
| Payments on perpetual subordinated notes | (51) | (14) | (57) | |
| Other transactions with non-controlling interests | (82) | 38 | (14) | |
| Net issuance (repayment) of non-current debt | 425 | 141 | 347 | |
| Increase (decrease) in current borrowings | (3,500) | (527) | (3,368) | |
| Increase (decrease) in current financial assets and liabilities | 3,554 | (4,473) | (8,373) | |
| Cash flow from (used in) financing activities | (6,573) | (9,114) | (15,134) | |
| Net increase (decrease) in cash and cash equivalents | (4,636) | 4,659 | (7,425) | |
| Effect of exchange rates | 1,721 | (1,566) | (204) | |
| Cash and cash equivalents at the beginning of the period | 35,941 | 32,848 | 28,971 | |
| Cash and cash equivalents at the end of the period | 33,026 | 35,941 | 21,342 |
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
| Year | Year | ||
| 2022 | 2021 | ||
| (M$) | (unaudited) | ||
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Consolidated net income | 21,044 | 16,366 | |
| Depreciation, depletion, amortization and impairment | 13,680 | 14,343 | |
| Non-current liabilities, valuation allowances and deferred taxes | 4,594 | 962 | |
| (Gains) losses on disposals of assets | 369 | (454) | |
| Undistributed affiliates' equity earnings | 6,057 | (667) | |
| (Increase) decrease in working capital | 1,191 | (616) | |
| Other changes, net | 432 | 476 | |
| Cash flow from operating activities | 47,367 | 30,410 | |
| CASH FLOW USED IN INVESTING ACTIVITIES | |||
| Intangible assets and property, plant and equipment additions | (15,690) | (12,343) | |
| Acquisitions of subsidiaries, net of cash acquired | (94) | (321) | |
| Investments in equity affiliates and other securities | (3,042) | (2,678) | |
| Increase in non-current loans | (976) | (1,247) | |
| Total expenditures | (19,802) | (16,589) | |
| Proceeds from disposals of intangible assets and property, plant and equipment | 540 | 770 | |
| Proceeds from disposals of subsidiaries, net of cash sold | 835 | 269 | |
| Proceeds from disposals of non-current investments | 577 | 722 | |
| Repayment of non-current loans | 2,734 | 1,172 | |
| Total divestments | 4,686 | 2,933 | |
| Cash flow used in investing activities | (15,116) | (13,656) | |
| CASH FLOW USED IN FINANCING ACTIVITIES | |||
| Issuance (repayment) of shares: | |||
| - Parent company shareholders | 370 | 381 | |
| - Treasury shares | (7,711) | (1,823) | |
| Dividends paid: | |||
| - Parent company shareholders | (9,986) | (8,228) | |
| - Non-controlling interests | (536) | (124) | |
| Net issuance (repayment) of perpetual subordinated notes | - | 3,248 | |
| Payments on perpetual subordinated notes | (339) | (313) | |
| Other transactions with non-controlling interests | (49) | 652 | |
| Net issuance (repayment) of non-current debt | 1,108 | (359) | |
| Increase (decrease) in current borrowings | (6,073) | (10,856) | |
| Increase (decrease) in current financial assets and liabilities | 3,944 | (8,075) | |
| Cash flow from (used in) financing activities | (19,272) | (25,497) | |
| Net increase (decrease) in cash and cash equivalents | 12,979 | (8,743) | |
| Effect of exchange rates | (1,295) | (1,183) | |
| Cash and cash equivalents at the beginning of the period | 21,342 | 31,268 | |
| Cash and cash equivalents at the end of the period | 33,026 | 21,342 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(Unaudited: Year 2022 )
| Common shares issued | Paid-in | Currency | Treasury shares | Shareholders' | Non- | Total | |||
| surplus and | translation | equity - | controlling | shareholders' | |||||
| (M$) | Number | Amount | retained | adjustment | Number | Amount | TotalEnergies | interests | equity |
| earnings | share | ||||||||
| As of January 1, 2021 | 2,653,124,025 | 8,267 | 107,078 | (10,256) | (24,392,703) | (1,387) | 103,702 | 2,383 | 106,085 |
| Net income 2021 | - | - | 16,032 | - | - | - | 16,032 | 334 | 16,366 |
| Other comprehensive Income | - | - | 991 | (2,407) | - | - | (1,416) | (30) | (1,446) |
| Comprehensive Income | - | - | 17,023 | (2,407) | - | - | 14,616 | 304 | 14,920 |
| Dividend | - | - | (8,200) | - | - | - | (8,200) | (124) | (8,324) |
| Issuance of common shares | 10,589,713 | 31 | 350 | - | - | - | 381 | - | 381 |
| Purchase of treasury shares | - | - | - | - | (37,306,005) | (1,823) | (1,823) | - | (1,823) |
| Sale of treasury shares (1) | - | - | (216) | - | 4,573,195 | 216 | - | - | - |
| Share-based payments | - | - | 143 | - | - | - | 143 | - | 143 |
| Share cancellation | (23,284,409) | (74) | (1,254) | - | 23,284,409 | 1,328 | - | - | - |
| Net issuance (repayment) of perpetual subordinated notes | - | - | 3,254 | - | - | - | 3,254 | - | 3,254 |
| Payments on perpetual subordinated notes | - | - | (368) | - | - | - | (368) | - | (368) |
| Other operations with non-controlling interests | - | - | 30 | (6) | - | - | 24 | 689 | 713 |
| Other items | - | - | 9 | (2) | - | - | 7 | 11 | 18 |
| As of December 31, 2021 | 2,640,429,329 | 8,224 | 117,849 | (12,671) | (33,841,104) | (1,666) | 111,736 | 3,263 | 114,999 |
| Net income 2022 | - | - | 20,526 | - | - | - | 20,526 | 518 | 21,044 |
| Other comprehensive Income | - | - | (2,933) | (174) | - | - | (3,107) | (2) | (3,109) |
| Comprehensive Income | - | - | 17,593 | (174) | - | - | 17,419 | 516 | 17,935 |
| Dividend | - | - | (9,989) | - | - | - | (9,989) | (536) | (10,525) |
| Issuance of common shares | 9,367,482 | 26 | 344 | - | - | - | 370 | - | 370 |
| Purchase of treasury shares | - | - | - | - | (140,207,743) | (7,711) | (7,711) | - | (7,711) |
| Sale of treasury shares (1) | - | - | (318) | - | 6,195,654 | 318 | - | - | - |
| Share-based payments | - | - | 229 | - | - | - | 229 | - | 229 |
| Share cancellation | (30,665,526) | (87) | (1,418) | - | 30,665,526 | 1,505 | - | - | - |
| Net issuance (repayment) of perpetual subordinated notes | - | - | (44) | - | - | - | (44) | - | (44) |
| Payments on perpetual subordinated notes | - | - | (331) | - | - | - | (331) | - | (331) |
| Other operations with non-controlling interests | - | - | 45 | 9 | - | - | 54 | 37 | 91 |
| Other items | - | - | (9) | - | - | - | (9) | (434) | (443) |
| As of December 31, 2022 | 2,619,131,285 | 8,163 | 123,951 | (12,836) | (137,187,667) | (7,554) | 111,724 | 2,846 | 114,570 |
(1) Treasury shares related to the performance share grants.
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
| 4th
quarter 2022 (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 14,683 | 2,600 | 26,650 | 24,637 | 12 | - | 68,582 |
| Intersegment sales | 1,887 | 12,866 | 11,730 | 274 | 63 | (26,820) | - |
| Excise taxes | - | - | (199) | (4,430) | - | - | (4,629) |
| Revenues from sales | 16,570 | 15,466 | 38,181 | 20,481 | 75 | (26,820) | 63,953 |
| Operating expenses | (12,494) | (6,173) | (37,107) | (19,939) | (266) | 26,820 | (49,159) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (459) | (1,343) | (393) | (276) | (34) | - | (2,505) |
| Operating income | 3,617 | 7,950 | 681 | 266 | (225) | - | 12,289 |
| Net income (loss) from equity affiliates and other items | 1,253 | (3,874) | 161 | (62) | 113 | - | (2,409) |
| Tax on net operating income | (381) | (4,635) | (898) | (113) | 22 | - | (6,005) |
| Net operating income | 4,489 | (559) | (56) | 91 | (90) | - | 3,875 |
| Net cost of net debt | (434) | ||||||
| Non-controlling interests | (177) | ||||||
| Net income - TotalEnergies share | 3,264 |
| 4th
quarter 2022 (adjustments) (a) (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 69 | - | - | - | - | - | 69 |
| Intersegment sales | - | - | - | - | - | - | - |
| Excise taxes | - | - | - | - | - | - | - |
| Revenues from sales | 69 | - | - | - | - | - | 69 |
| Operating expenses | 2,101 | (108) | (821) | (211) | (88) | - | 873 |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (108) | 844 | - | (37) | - | - | 699 |
| Operating income (b) | 2,062 | 736 | (821) | (248) | (88) | - | 1,641 |
| Net income (loss) from equity affiliates and other items | (308) | (4,025) | (101) | (9) | - | - | (4,443) |
| Tax on net operating income | (154) | (798) | (621) | 14 | 23 | - | (1,536) |
| Net operating income (b) | 1,600 | (4,087) | (1,543) | (243) | (65) | - | (4,338) |
| Net cost of net debt | 8 | ||||||
| Non-controlling interests | 33 | ||||||
| Net income - TotalEnergies share | (4,297) |
| (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 | - | - | (712) | (184) | - |
| On net operating income | - | - | (586) | (137) | - |
| 4th
quarter 2022 (adjusted) (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 14,614 | 2,600 | 26,650 | 24,637 | 12 | - | 68,513 |
| Intersegment sales | 1,887 | 12,866 | 11,730 | 274 | 63 | (26,820) | - |
| Excise taxes | - | - | (199) | (4,430) | - | - | (4,629) |
| Revenues from sales | 16,501 | 15,466 | 38,181 | 20,481 | 75 | (26,820) | 63,884 |
| Operating expenses | (14,595) | (6,065) | (36,286) | (19,728) | (178) | 26,820 | (50,032) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (351) | (2,187) | (393) | (239) | (34) | - | (3,204) |
| Adjusted operating income | 1,555 | 7,214 | 1,502 | 514 | (137) | - | 10,648 |
| Net income (loss) from equity affiliates and other items | 1,561 | 151 | 262 | (53) | 113 | - | 2,034 |
| Tax on net operating income | (227) | (3,837) | (277) | (127) | (1) | - | (4,469) |
| Adjusted net operating income | 2,889 | 3,528 | 1,487 | 334 | (25) | - | 8,213 |
| Net cost of net debt | (442) | ||||||
| Non-controlling interests | (210) | ||||||
| Adjusted net income - TotalEnergies share | 7,561 |
| 4th
quarter 2022 (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| Total expenditures | 950 | 2,478 | 588 | 507 | 49 | - | 4,572 |
| Total divestments | 505 | 215 | 125 | 42 | 4 | - | 891 |
| Cash flow from operating activities | 995 | 4,035 | 232 | 707 | (351) | - | 5,618 |
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
3rd quarter 2022 (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 11,495 | 2,670 | 28,899 | 25,968 | 5 | - | 69,037 |
| Intersegment sales | 1,753 | 14,701 | 12,065 | 176 | 52 | (28,747) | - |
| Excise taxes | - | - | (160) | (3,915) | - | - | (4,075) |
| Revenues from sales | 13,248 | 17,371 | 40,804 | 22,229 | 57 | (28,747) | 64,962 |
| Operating expenses | (10,648) | (6,880) | (39,137) | (21,513) | (213) | 28,747 | (49,644) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (295) | (1,999) | (371) | (243) | (27) | - | (2,935) |
| Operating income | 2,305 | 8,492 | 1,296 | 473 | (183) | - | 12,383 |
| Net income (loss) from equity affiliates and other items | 3,190 | (2,643) | 219 | (14) | (4) | - | 748 |
| Tax on net operating income | (777) | (5,071) | (255) | (153) | 162 | - | (6,094) |
| Net operating income | 4,718 | 778 | 1,260 | 306 | (25) | - | 7,037 |
| Net cost of net debt | (289) | ||||||
| Non-controlling interests | (122) | ||||||
| Net income - TotalEnergies share | 6,626 |
3rd quarter 2022 (adjustments) (a) (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 38 | - | - | - | - | - | 38 |
| Intersegment sales | - | - | - | - | - | - | - |
| Excise taxes | - | - | - | - | - | - | - |
| Revenues from sales | 38 | - | - | - | - | - | 38 |
| Operating expenses | (291) | (4) | (771) | (230) | (79) | - | (1,375) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | - | (7) | - | (2) | - | - | (9) |
| Operating income (b) | (253) | (11) | (771) | (232) | (79) | - | (1,346) |
| Net income (loss) from equity affiliates and other items | 1,315 | (3,130) | (100) | (7) | - | - | (1,922) |
| Tax on net operating income | 7 | (298) | 196 | 67 | 20 | - | (8) |
| Net operating income (b) | 1,069 | (3,439) | (675) | (172) | (59) | - | (3,276) |
| Net cost of net debt | 76 | ||||||
| Non-controlling interests | (37) | ||||||
| Net income - TotalEnergies share | (3,237) |
| (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 | - | - | (771) | (239) | - |
| On net operating income | - | - | (675) | (172) | - |
| 3rd
quarter 2022 (adjusted) (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| External sales | 11,457 | 2,670 | 28,899 | 25,968 | 5 | - | 68,999 |
| Intersegment sales | 1,753 | 14,701 | 12,065 | 176 | 52 | (28,747) | - |
| Excise taxes | - | - | (160) | (3,915) | - | - | (4,075) |
| Revenues from sales | 13,210 | 17,371 | 40,804 | 22,229 | 57 | (28,747) | 64,924 |
| Operating expenses | (10,357) | (6,876) | (38,366) | (21,283) | (134) | 28,747 | (48,269) |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (295) | (1,992) | (371) | (241) | (27) | - | (2,926) |
| Adjusted operating income | 2,558 | 8,503 | 2,067 | 705 | (104) | - | 13,729 |
| Net income (loss) from equity affiliates and other items | 1,875 | 487 | 319 | (7) | (4) | - | 2,670 |
| Tax on net operating income | (784) | (4,773) | (451) | (220) | 142 | - | (6,086) |
| Adjusted net operating income | 3,649 | 4,217 | 1,935 | 478 | 34 | - | 10,313 |
| Net cost of net debt | (365) | ||||||
| Non-controlling interests | (85) | ||||||
| Adjusted net income - TotalEnergies share | 9,863 |
| 3rd
quarter 2022 (M$) |
Integrated Gas, | Exploration | Refining | Marketing | |||
| Renewables | & | & | & | Corporate | Intercompany | Total | |
| & Power | Production | Chemicals | Services | ||||
| Total expenditures | 3,214 | 2,069 | 242 | 251 | 21 | - | 5,797 |
| Total divestments | 1,441 | 246 | 6 | 29 | - | - | 1,722 |
| Cash flow from operating activities | 4,390 | 9,083 | 3,798 | 939 | (362) | - | 17,848 |
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
| 4th
quarter 2021 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 11,634 | 2,068 | 24,781 | 21,854 | 11 | - | 60,348 | |
| Intersegment sales | 1,466 | 11,875 | 8,716 | 155 | 148 | (22,360) | - | |
| Excise taxes | - | - | (238) | (4,812) | - | - | (5,050) | |
| Revenues from sales | 13,100 | 13,943 | 33,259 | 17,197 | 159 | (22,360) | 55,298 | |
| Operating expenses | (11,141) | (5,412) | (32,250) | (16,347) | (374) | 22,360 | (43,164) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (545) | (2,637) | (399) | (307) | (31) | - | (3,919) | |
| Operating income | 1,414 | 5,894 | 610 | 543 | (246) | - | 8,215 | |
| Net income (loss) from equity affiliates and other items | 1,281 | 74 | 228 | 83 | 32 | - | 1,698 | |
| Tax on net operating income | (237) | (3,124) | (234) | (164) | 75 | - | (3,684) | |
| Net operating income | 2,458 | 2,844 | 604 | 462 | (139) | - | 6,229 | |
| Net cost of net debt | (326) | |||||||
| Non-controlling interests | (66) | |||||||
| Net income - TotalEnergies share | 5,837 |
| 4th
quarter 2021 (adjustments) (a) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | - | - | - | - | - | - | - | |
| Intersegment sales | - | - | - | - | - | - | - | |
| Excise taxes | - | - | - | - | - | - | - | |
| Revenues from sales | - | - | - | - | - | - | - | |
| Operating expenses | (57) | (132) | 38 | 21 | - | - | (130) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (187) | (418) | - | (36) | - | - | (641) | |
| Operating income (b) | (244) | (550) | 38 | (15) | - | - | (771) | |
| Net income (loss) from equity affiliates and other items | (116) | (111) | 23 | (6) | 6 | - | (204) | |
| Tax on net operating income | 59 | (20) | (10) | 4 | (69) | - | (36) | |
| Net operating income (b) | (301) | (681) | 51 | (17) | (63) | - | (1,011) | |
| Net cost of net debt | 10 | |||||||
| Non-controlling interests | 13 | |||||||
| Net income - TotalEnergies share | (988) |
| (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 | - | - | 32 | 53 | - | |
| On net operating income | - | - | 74 | 47 | - |
| 4th
quarter 2021 (adjusted) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 11,634 | 2,068 | 24,781 | 21,854 | 11 | - | 60,348 | |
| Intersegment sales | 1,466 | 11,875 | 8,716 | 155 | 148 | (22,360) | - | |
| Excise taxes | - | - | (238) | (4,812) | - | - | (5,050) | |
| Revenues from sales | 13,100 | 13,943 | 33,259 | 17,197 | 159 | (22,360) | 55,298 | |
| Operating expenses | (11,084) | (5,280) | (32,288) | (16,368) | (374) | 22,360 | (43,034) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (358) | (2,219) | (399) | (271) | (31) | - | (3,278) | |
| Adjusted operating income | 1,658 | 6,444 | 572 | 558 | (246) | - | 8,986 | |
| Net income (loss) from equity affiliates and other items | 1,397 | 185 | 205 | 89 | 26 | - | 1,902 | |
| Tax on net operating income | (296) | (3,104) | (224) | (168) | 144 | - | (3,648) | |
| Adjusted net operating income | 2,759 | 3,525 | 553 | 479 | (76) | - | 7,240 | |
| Net cost of net debt | (336) | |||||||
| Non-controlling interests | (79) | |||||||
| Adjusted net income - TotalEnergies share | 6,825 |
| 4th
quarter 2021 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| Total expenditures | 1,471 | 2,327 | 723 | 643 | 30 | - | 5,194 | |
| Total divestments | 540 | 357 | 202 | 181 | 2 | - | 1,282 | |
| Cash flow from operating activities | (57) | 8,624 | 2,446 | 386 | 222 | - | 11,621 |
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
| Year
2022 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 48,753 | 9,942 | 121,618 | 100,661 | 25 | - | 280,999 | |
| Intersegment sales | 7,000 | 55,190 | 45,857 | 1,433 | 248 | (109,728) | - | |
| Excise taxes | - | - | (737) | (16,952) | - | - | (17,689) | |
| Revenues from sales | 55,753 | 65,132 | 166,738 | 85,142 | 273 | (109,728) | 263,310 | |
| Operating expenses | (45,771) | (24,521) | (156,897) | (81,746) | (1,329) | 109,728 | (200,536) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (1,402) | (8,115) | (1,533) | (1,033) | (138) | - | (12,221) | |
| Operating income | 8,580 | 32,496 | 8,308 | 2,363 | (1,194) | - | 50,553 | |
| Net income (loss) from equity affiliates and other items | 2,766 | (9,943) | 885 | (20) | 288 | - | (6,024) | |
| Tax on net operating income | (1,712) | (17,445) | (2,544) | (787) | 281 | - | (22,207) | |
| Net operating income | 9,634 | 5,108 | 6,649 | 1,556 | (625) | - | 22,322 | |
| Net cost of net debt | (1,278) | |||||||
| Non-controlling interests | (518) | |||||||
| Net income - TotalEnergies share | 20,526 |
| Year
2022 (adjustments) (a) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 104 | - | - | - | - | - | 104 | |
| Intersegment sales | - | - | - | - | - | - | - | |
| Excise taxes | - | - | - | - | - | - | - | |
| Revenues from sales | 104 | - | - | - | - | - | 104 | |
| Operating expenses | 1,087 | (985) | 130 | 200 | (600) | - | (168) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (122) | 298 | - | (72) | (9) | - | 95 | |
| Operating income (b) | 1,069 | (687) | 130 | 128 | (609) | - | 31 | |
| Net income (loss) from equity affiliates and other items | (3,490) | (10,925) | (32) | (23) | 106 | - | (14,364) | |
| Tax on net operating income | (89) | (759) | (751) | (99) | 141 | - | (1,557) | |
| Net operating income (b) | (2,510) | (12,371) | (653) | 6 | (362) | - | (15,890) | |
| Net cost of net debt | - | - | - | - | - | - | 277 | |
| Non-controlling interests | - | - | - | - | - | - | (58) | |
| Net income - TotalEnergies share | - | - | - | - | - | - | (15,671) |
| (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 | - | - | 239 | 261 | - | |
| On net operating income | - | - | 336 | 194 | - |
| Year
2022 (adjusted) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 48,649 | 9,942 | 121,618 | 100,661 | 25 | - | 280,895 | |
| Intersegment sales | 7,000 | 55,190 | 45,857 | 1,433 | 248 | (109,728) | - | |
| Excise taxes | - | - | (737) | (16,952) | - | - | (17,689) | |
| Revenues from sales | 55,649 | 65,132 | 166,738 | 85,142 | 273 | (109,728) | 263,206 | |
| Operating expenses | (46,858) | (23,536) | (157,027) | (81,946) | (729) | 109,728 | (200,368) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (1,280) | (8,413) | (1,533) | (961) | (129) | - | (12,316) | |
| Adjusted operating income | 7,511 | 33,183 | 8,178 | 2,235 | (585) | - | 50,522 | |
| Net income (loss) from equity affiliates and other items | 6,256 | 982 | 917 | 3 | 182 | - | 8,340 | |
| Tax on net operating income | (1,623) | (16,686) | (1,793) | (688) | 140 | - | (20,650) | |
| Adjusted net operating income | 12,144 | 17,479 | 7,302 | 1,550 | (263) | - | 38,212 | |
| Net cost of net debt | (1,555) | |||||||
| Non-controlling interests | (460) | |||||||
| Adjusted net income - TotalEnergies share | 36,197 |
| Year
2022 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| Total expenditures | 6,475 | 10,646 | 1,391 | 1,186 | 104 | - | 19,802 | |
| Total divestments | 3,427 | 807 | 214 | 222 | 16 | - | 4,686 | |
| Cash flow from operating activities | 9,670 | 27,654 | 8,663 | 3,124 | (1,744) | - | 47,367 |
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
| Year
2021 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 30,704 | 7,246 | 87,600 | 80,288 | 25 | - | 205,863 | |
| Intersegment sales | 4,260 | 34,896 | 27,637 | 451 | 254 | (67,498) | - | |
| Excise taxes | - | - | (1,108) | (20,121) | - | - | (21,229) | |
| Revenues from sales | 34,964 | 42,142 | 114,129 | 60,618 | 279 | (67,498) | 184,634 | |
| Operating expenses | (29,964) | (16,722) | (108,982) | (57,159) | (927) | 67,498 | (146,256) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (1,650) | (9,110) | (1,583) | (1,100) | (113) | - | (13,556) | |
| Operating income | 3,350 | 16,310 | 3,564 | 2,359 | (761) | - | 24,822 | |
| Net income (loss) from equity affiliates and other items | 2,745 | (760) | 518 | 108 | 45 | - | 2,656 | |
| Tax on net operating income | (602) | (7,506) | (1,068) | (738) | 152 | - | (9,762) | |
| Net operating income | 5,493 | 8,044 | 3,014 | 1,729 | (564) | - | 17,716 | |
| Net cost of net debt | (1,350) | |||||||
| Non-controlling interests | (334) | |||||||
| Net income - TotalEnergies share | 16,032 |
| Year
2021 (adjustments) (a) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | (44) | - | - | - | - | - | (44) | |
| Intersegment sales | - | - | - | - | - | - | - | |
| Excise taxes | - | - | - | - | - | - | - | |
| Revenues from sales | (44) | - | - | - | - | - | (44) | |
| Operating expenses | (271) | (187) | 1,470 | 278 | - | - | 1,290 | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (342) | (418) | (25) | (36) | - | - | (821) | |
| Operating income (b) | (657) | (605) | 1,445 | 242 | - | - | 425 | |
| Net income (loss) from equity affiliates and other items | (215) | (1,839) | 56 | (61) | (54) | - | (2,113) | |
| Tax on net operating income | 122 | 49 | (396) | (70) | (67) | - | (362) | |
| Net operating income (b) | (750) | (2,395) | 1,105 | 111 | (121) | - | (2,050) | |
| Net cost of net debt | 25 | |||||||
| Non-controlling interests | (3) | |||||||
| Net income - TotalEnergies share | (2,028) |
| (a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| (b) | Of which inventory valuation effect |
| On operating income | - | - | 1,481 | 315 | - | |
| On net operating income | - | - | 1,296 | 236 | - |
| Year
2021 (adjusted) (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| External sales | 30,748 | 7,246 | 87,600 | 80,288 | 25 | - | 205,907 | |
| Intersegment sales | 4,260 | 34,896 | 27,637 | 451 | 254 | (67,498) | - | |
| Excise taxes | - | - | (1,108) | (20,121) | - | - | (21,229) | |
| Revenues from sales | 35,008 | 42,142 | 114,129 | 60,618 | 279 | (67,498) | 184,678 | |
| Operating expenses | (29,693) | (16,535) | (110,452) | (57,437) | (927) | 67,498 | (147,546) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (1,308) | (8,692) | (1,558) | (1,064) | (113) | - | (12,735) | |
| Adjusted operating income | 4,007 | 16,915 | 2,119 | 2,117 | (761) | - | 24,397 | |
| Net income (loss) from equity affiliates and other items | 2,960 | 1,079 | 462 | 169 | 99 | - | 4,769 | |
| Tax on net operating income | (724) | (7,555) | (672) | (668) | 219 | - | (9,400) | |
| Adjusted net operating income | 6,243 | 10,439 | 1,909 | 1,618 | (443) | - | 19,766 | |
| Net cost of net debt | (1,375) | |||||||
| Non-controlling interests | (331) | |||||||
| Adjusted net income - TotalEnergies share | 18,060 |
| Year
2021 (M$) |
Integrated
Gas, Renewables & Power |
Exploration & Production |
Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | |
| Total expenditures | 6,341 | 7,276 | 1,638 | 1,242 | 92 | - | 16,589 | |
| Total divestments | 1,350 | 894 | 348 | 319 | 22 | - | 2,933 | |
| Cash flow from operating activities | 827 | 22,009 | 6,473 | 2,333 | (1,232) | - | 30,410 |
Reconciliation of the information by business segment with consolidated financial statements
TotalEnergies
(unaudited)
| 4th quarter 2022 | Adjusted | Adjustments (a) | Consolidated | |
| (M$) | statement of income | |||
| Sales | 68,513 | 69 | 68,582 | |
| Excise taxes | (4,629) | - | (4,629) | |
| Revenues from sales | 63,884 | 69 | 63,953 | |
| Purchases, net of inventory variation | (42,755) | 1,200 | (41,555) | |
| Other operating expenses | (7,027) | (327) | (7,354) | |
| Exploration costs | (250) | - | (250) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (3,204) | 699 | (2,505) | |
| Other income | 636 | (52) | 584 | |
| Other expense | (591) | (2,237) | (2,828) | |
| Financial interest on debt | (719) | - | (719) | |
| Financial income and expense from cash & cash equivalents | 338 | 19 | 357 | |
| Cost of net debt | (381) | 19 | (362) | |
| Other financial income | 266 | - | 266 | |
| Other financial expense | (150) | - | (150) | |
| Net income (loss) from equity affiliates | 1,873 | (2,154) | (281) | |
| Income taxes | (4,530) | (1,547) | (6,077) | |
| Consolidated net income | 7,771 | (4,330) | 3,441 | |
| TotalEnergies share | 7,561 | (4,297) | 3,264 | |
| Non-controlling interests | 210 | (33) | 177 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| 4th quarter 2021 | Consolidated | |||
| (M$) | Adjusted | Adjustments (a) | statement of income | |
| Sales | 60,348 | - | 60,348 | |
| Excise taxes | (5,050) | - | (5,050) | |
| Revenues from sales | 55,298 | - | 55,298 | |
| Purchases, net of inventory variation | (36,189) | 28 | (36,161) | |
| Other operating expenses | (6,630) | (50) | (6,680) | |
| Exploration costs | (215) | (108) | (323) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (3,278) | (641) | (3,919) | |
| Other income | 551 | (15) | 536 | |
| Other expense | (493) | (262) | (755) | |
| Financial interest on debt | (483) | - | (483) | |
| Financial income and expense from cash & cash equivalents | 105 | 15 | 120 | |
| Cost of net debt | (378) | 15 | (363) | |
| Other financial income | 195 | - | 195 | |
| Other financial expense | (138) | - | (138) | |
| Net income (loss) from equity affiliates | 1,787 | 73 | 1,860 | |
| Income taxes | (3,606) | (41) | (3,647) | |
| Consolidated net income | 6,904 | (1,001) | 5,903 | |
| TotalEnergies share | 6,825 | (988) | 5,837 | |
| Non-controlling interests | 79 | (13) | 66 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TotalEnergies
| Year 2022 | ||||
| (M$) | Adjusted | Adjustments (a) | Consolidated | |
| (unaudited) | statement of income | |||
| Sales | 280,895 | 104 | 280,999 | |
| Excise taxes | (17,689) | - | (17,689) | |
| Revenues from sales | 263,206 | 104 | 263,310 | |
| Purchases, net of inventory variation | (171,049) | 1,601 | (169,448) | |
| Other operating expenses | (28,745) | (1,044) | (29,789) | |
| Exploration costs | (574) | (725) | (1,299) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (12,316) | 95 | (12,221) | |
| Other income | 1,349 | 1,500 | 2,849 | |
| Other expense | (1,542) | (5,802) | (7,344) | |
| Financial interest on debt | (2,386) | - | (2,386) | |
| Financial income and expense from cash & cash equivalents | 746 | 397 | 1,143 | |
| Cost of net debt | (1,640) | 397 | (1,243) | |
| Other financial income | 812 | 84 | 896 | |
| Other financial expense | (533) | - | (533) | |
| Net income (loss) from equity affiliates | 8,254 | (10,146) | (1,892) | |
| Income taxes | (20,565) | (1,677) | (22,242) | |
| Consolidated net income | 36,657 | (15,613) | 21,044 | |
| TotalEnergies share | 36,197 | (15,671) | 20,526 | |
| Non-controlling interests | 460 | 58 | 518 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
| Year 2021 | Consolidated | |||
| (M$) | Adjusted | Adjustments (a) | statement of income | |
| Sales | 205,907 | (44) | 205,863 | |
| Excise taxes | (21,229) | - | (21,229) | |
| Revenues from sales | 184,678 | (44) | 184,634 | |
| Purchases, net of inventory variation | (120,160) | 1,538 | (118,622) | |
| Other operating expenses | (26,754) | (140) | (26,894) | |
| Exploration costs | (632) | (108) | (740) | |
| Depreciation, depletion and impairment of tangible assets and mineral interests | (12,735) | (821) | (13,556) | |
| Other income | 1,300 | 12 | 1,312 | |
| Other expense | (944) | (1,373) | (2,317) | |
| Financial interest on debt | (1,904) | - | (1,904) | |
| Financial income and expense from cash & cash equivalents | 340 | 39 | 379 | |
| Cost of net debt | (1,564) | 39 | (1,525) | |
| Other financial income | 762 | - | 762 | |
| Other financial expense | (539) | - | (539) | |
| Net income (loss) from equity affiliates | 4,190 | (752) | 3,438 | |
| Income taxes | (9,211) | (376) | (9,587) | |
| Consolidated net income | 18,391 | (2,025) | 16,366 | |
| TotalEnergies share | 18,060 | (2,028) | 16,032 | |
| Non-controlling interests | 331 | 3 | 334 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
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.
Indicative ex-dividend dates for 2024 dividend
On February 8, 2023, the Board of Directors decided during the meeting of February 7, 2023 that, subject to the decisions made by the Board of Directors and the Shareholders’ Meeting approving the 2024 financial statements, allocation of earnings, and final dividend, the ex-dividend dates of the interim and the final dividends for 2024 will be as follows:
| Type of coupon | Ex-dividend dates | |
| First interim | September 25, 2024 | |
| Second interim | January 2, 2025 | |
| Third interim | March 26, 2025 | |
| Final | June 19, 2025 |
The above ex-dividend dates relate to the TotalEnergies shares listed on the Euronext.
Ordinary dividend of 2.81 €/share for fiscal year 2022, a 6.4% increase, and the confirmation of the 1 €/share special dividend
The Board of Directors of TotalEnergies SE, meeting on February 7, 2023, decided to propose to the Shareholders’ Meeting on May 26, 2023, the distribution of an ordinary dividend of 2.81 €/share for fiscal year 2022, versus 2.64 €/share for fiscal year 2021, a 6.4% increase.
Consequently, taking into account the three ordinary interim dividends of 0.69 €/share previously decided by the Board of Directors, the final ordinary dividend for fiscal year 2022 will be 0.74 €/share, a 7.25% increase compared to the ordinary interim dividends.
In addition, the Board of directors decided propose the confirmation of the 1 €/share special dividend for fiscal year 2022, that was paid on December 16, 2022.
As proposed, TotalEnergies’ shareholders would benefit from a 3.81 €/share dividend (ordinary plus special) for fiscal year 2022.
Subject to approval at the Shareholders’ Meeting, the final ordinary dividend will be paid in cash, according to the following timetable:
| Shareholders | ADS holders | |
| Ex-dividend date | June 21, 2023 | June 16, 2023 |
| Payment date | July 3, 2023 | July 17, 2023 |
Share capital decrease by way of treasury shares cancellation
On February 8, 2023, following the Board of Directors meeting of February 7, 2023, under the conditions set forth at the Extraordinary Shareholders’ Meeting of May 25, 2022, the Board of Directors decided to decrease the share capital of TotalEnergies SE by way of cancellation of 128,869,261 treasury shares representing 4.92% of the share capital. These shares were repurchased from February 11 to December 15, 2022.
After this cancellation of shares, the number of shares of TotalEnergies SE is 2,490,262,024, and the number of voting rights that can be exercised at the Shareholders’ Meeting is 2,655,005,180. The total number of voting rights attached to these 2,490,262,024 shares (referred to as ‘theoretical voting rights’) is 2,680,013,644, including the voting rights attached to the 25,008,464 treasury shares held by TotalEnergies SE, with a view to cancelling them and allocating them to share performance plans, and with no voting rights.
This transaction has no impact on the consolidated financial statements of TotalEnergies SE, the number of fully diluted weighted-average shares, and the earnings per share.
Denmark: TotalEnergies Obtains Two CO2 Storage Licenses in the Danish North Sea
On February 6, 2023, TotalEnergies was awarded two licenses to explore CO2 storage potential in the Danish North Sea. The licenses are located 250 kilometers off the west coast of Denmark and cover an area of 2,118 km2.
The acreage includes the Harald gas fields, currently operated by TotalEnergies, for which the Company is already assessing CO2 storage opportunities within the framework of the Bifrost project, as well as a saline aquifer that could increase CO2 storage volumes, which could create a competitive solution to the market.
Alongside state-owned Nordsøfonden (20%), TotalEnergies (80%) will be the future operator of the offshore CO2 storage licenses. The Company aims to carry out evaluation and appraisal work to develop a project that could ultimately transport and permanently store more than 5 Mt CO2/year, by repurposing existing infrastructure in the Danish North Sea and building new facilities.
Mozambique LNG: TotalEnergies Entrusts Jean-Christophe Rufin with an Independent Mission to Assess the Humanitarian Situation in the Cabo Delgado Province
On February 3, 2023, Patrick Pouyanné, Chairman and CEO of TotalEnergies, visited the Cabo Delgado province of Mozambique to review the security and humanitarian situation. He visited the Afungi industrial site, the resettlement village of Quitunda, the towns of Palma and Mocimboa da Praia and met with President Filipe Nyusi to discuss the security and humanitarian situation in the Cabo Delgado province, where the Mozambique LNG project is located.
During this visit, Patrick Pouyanné said he has entrusted Jean-Christophe Rufin, a recognized expert in humanitarian action and human rights, with an independent mission to assess the humanitarian situation in the Cabo Delgado province. This mission is expected to evaluate the actions taken by Mozambique LNG and aims to propose additional actions to be implemented, if required. The report of this mission is
expected to be delivered at the end of February and its conclusions will be shared with all of Mozambique LNG's partners, who shall decide whether the conditions are met for resuming project activities.
On April 26, 2021, considering the evolution of the security situation in the north of the Cabo Delgado province, Mozambique LNG had decided to withdraw all project personnel from the Afungi site. This situation also led the Mozambique LNG project partners to declare force majeure.
Mozambique LNG is one of the first onshore developments of a liquefied natural gas (LNG) plant in the country. The project includes the development of the Golfinho and Atum fields located in Offshore Area 1 and the construction of two liquefaction trains with an expected total capacity of 13,1 million tons per annum (mtpa).
TotalEnergies EP Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SE, holds a 26.5% interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
TotalEnergies Sold a Stake in its Renewable Portfolio to Crédit Agricole Assurances
On February 3rd 2023, as part of its strategy of profitable growth in renewable energies, TotalEnergies is expecting to sell to Crédit Agricole Assurances 50% of a 234 MW portfolio of renewable projects, including 23 solar power plants with a capacity of 168 MW and 6 wind farms with a capacity of 67 MW.
Of the 29 power plants in the portfolio, 25 are already operational (180 MW) and the four others (54 MW) are expected to be commissioned in the first half of 2023.
This transaction implies an enterprise value of the portfolio of $300 million (100%) equivalent to a multiple of 16 EBITDA.
This partial sale to Crédit Agricole Assurances allows TotalEnergies to accelerate project cash flows and improve the return on invested capital, in line with its business model for renewable energy development.
TotalEnergies’ teams will continue to ensure the asset management, operation and maintenance of the 29 power plants. They are expected to provide enough energy for 200,000 people and aim to prevent the emission of approximately 96,000 tons of CO2 per year for thirty years.
TotalEnergies’ Statement on its Investments in India
On February 3, 2023, following the allegations against Adani Group, as published by the Hindenburg Research company on January 24, 2023, TotalEnergies brought the following information regarding its joint investments in India in partnership with Adani since 2018.
TotalEnergies’ investments in Adani’s entities were undertaken in full compliance with applicable – namely Indian – laws, and with TotalEnergies’ own internal governance processes. The due diligence, which was carried out to TotalEnergies’ satisfaction, was consistent with best practices, and all relevant material in the public domain was reviewed, including the detailed disclosures to regulators required under applicable laws. TotalEnergies welcomed the announcement by Adani to mandate one of the "big four" accounting firms to carry out a general audit.
The entities TotalEnergies has invested in with Adani are managed in accordance with applicable regulations. The day-to-day operations of the entities listed in India, Adani Total Gas Limited (ATGL) and Adani Green Energy Limited (AGEL), are managed by independent teams of professional managers, and their boards are composed of at least 50% independent and non-executive directors (5/9 for ATGL and 5/10 for AGEL). S. R. Batliboi & Co. LLP, a member company of the international financial audit firm EY, is AGEL’s statutory auditor.
The following table lists TotalEnergies’ current stakes in ventures with Adani:
| Adani Total Private Limited | 50% |
| Adani Total Gas Limited (listed) | 37.4% |
| Adani Green Energy Limited (listed) | 19.75% |
| AGEL23 | 50% |
TotalEnergies’ exposure resulting from these stakes is limited, as it represents 2.4% ($3.1 billion at December 31, 2022) of the Company’s capital employed and only 180 M$ of net operating income in 2022. These investments being accounted for under the equity method, TotalEnergies has not performed any re-evaluation in its accounts of its stakes in the listed entities ATGL and AGEL in relation to the prevailing stock values.
TotalEnergies and Air Liquide join forces to develop a network of over 100 hydrogen stations for heavy duty vehicles in Europe
On February 2, 2023, TotalEnergies and Air Liquide announced their decision to create an equally owned joint venture to develop a network of hydrogen stations, geared towards heavy duty vehicles on major European road corridors. This initiative is expected to help facilitate access to hydrogen, enabling the development of its use for goods transportation and further strengthening the hydrogen sector.
The partners aim to deploy more than 100 hydrogen stations on major European roads - in France, Benelux, and Germany - in the coming years. These stations, under the TotalEnergies brand, are expected to be located on major strategic corridors.
This agreement is expected to lead to the creation of a major player in hydrogen refueling solutions and contribute to the decarbonization of road transportation in Europe. The two companies aim to combine their know-how and expertise in infrastructure, hydrogen distribution, and mobility:
- TotalEnergies is expected to bring its expertise in the operation and management of stations networks and the distribution of energies to BtoB customers; and
- Air Liquide is expected to contribute with its expertise in technologies and its mastery of the entire hydrogen value chain.
The joint venture, which is expected to be jointly managed by TotalEnergies and Air Liquide, aims to invest, build and operate these stations, as well as procure hydrogen from the market and dispense it to its transport customers.
The two partners aim to establish their joint venture in 2023, subject to the finalization of the appropriate contractual documentation and the receipt of the necessary regulatory approvals.
ESG: TotalEnergies CAC40 transparency leader towards investors in the annual ranking of the Forum pour l'Investissement Responsable
On February 1, 2023, TotalEnergies topped the ranking of the Forum pour l'Investissement Responsable (FIR), which on January 25 released the survey results for all CAC40 companies ahead of their 2022 Annual Shareholders' meetings: "How does the CAC 40 meet investor expectations?"
FIR is a French association representing all stakeholders in Social and Responsible Investment (SRI). Its purpose is to promote and develop responsible investment, as well as best practices. It promotes dialogue and involvement with listed companies on sustainable development issues. The campaign questions focused on Environmental, Social and Governance (ESG) issues such as climate, biodiversity, the circular economy, living wages, ESG pay criteria, tax practices, and the inclusion of social partners in corporate responsibility plans.
The consolidated score on all the questions gave TotalEnergies an overall result of 2.1/3, which makes it the joint winner with Orange.
These results reflect TotalEnergies' commitment to dialogue and transparency in line with its principle of action towards investors and stakeholders.
In March 2023, TotalEnergies is expected to publish its Sustainability & Climate - 2023 progress report, which is expected to report the progress made on the Company’s ambition with respect to sustainable development and energy transition towards carbon neutrality and its related targets by 2030.
TotalEnergies Starts Up its Fourth Solar Power Plant in Japan
On February 1, 2023, TotalEnergies started up the commercial operation of a 51-megawatt (MW) solar power plant located in Tsu, Mie Prefecture, Japan.
The plant, connected to the electricity distribution grid, aims to supply its electricity to Chubu Electric Power Miraiz Co. Inc., a subsidiary of the regional utility company, through a power purchase agreement over a 17-year period.
Built in two years, the Haze power plant is operated with nearly 100,000 high-efficiency solar panels, ensuring the highest performance in mitigated weather conditions. The supports and foundations of the solar panels are designed in consideration of earthquakes and typhoons.
The Haze power plant operates on a surface of nearly 77 hectares and is expected to provide enough clean and reliable electricity to serve nearly 20,000 households.
“We are delighted with the successful start-up of Tsu Haze, our fourth large scale solar power plant in Japan, with our partners Suzuka Group and Tohoku Electric. This marks a new milestone in the deployment of our renewable energy activities in Japan. With more than 150 MW of cumulative capacity in operation, we are proud to contribute to the country's energy transition.” said Vincent Stoquart, Senior Vice-President Renewables at TotalEnergies.
The commercial operation of Haze Solar Power Plant follows:
| · | 27MW Nanao Solar Power Plant which is in operation since 2017 |
| · | 25MW Miyako Solar Power Plant which is in operation since 2019 |
| · | 52MW Osato Solar Power Plant which is in operation since 2021 |
Lebanon: QatarEnergy joins TotalEnergies and Eni on two exploration blocks
On January 29, 2023, TotalEnergies and Eni completed the transfer to QatarEnergy of a 30% interest in exploration Blocks 4 and 9 off the coast of Lebanon.
The agreements were endorsed in Beirut on January 29, 2023, during a ceremony attended by His Excellency Dr. Walid Fayad, the Minister of Energy and Water of Lebanon; His Excellency Mr. Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy; Mr. Patrick Pouyanné, Chairman and CEO of TotalEnergies; and Mr. Claudio Descalzi, CEO of Eni.
Pursuant to the terms of the agreements, TotalEnergies (operator) and Eni will each retain a 35% interest in the blocks, with QatarEnergy holding the remaining 30%.
This new partnership further expands the cooperation between TotalEnergies and QatarEnergy in exploration activities and brings to nine the number of countries where the two companies have partnerships.
TotalEnergies EP Canada acquires an additional interest in Fort Hills, ahead of its planned spin-off
On January 27, 2023, in the context of its expected spin-off, TotalEnergies EP Canada Ltd announced that it had exercised its preemption right to acquire an additional 6.65% interest in the Fort Hills Energy Limited Partnership and associated sales and logistics agreements from Teck Resources Limited, for a consideration of 312 million Canadian Dollars.
Fort Hills is located 90 kilometers North of Fort McMurray, in the province of Alberta. Prior to the transaction, TotalEnergies EP Canada held a working interest of 24.58% in the Fort Hills project, and will hold 31.23% after the transaction. TotalEnergies EP Canada also holds a 50% working interest in the Surmont project located in the region.
In line with its low-carbon strategy, TotalEnergies announced in September 2022 its intention to exit Canadian oil sands by spinning off TotalEnergies EP Canada in 2023. Through the acquisition of an additional interest in Fort Hills, TotalEnergies EP Canada aims to build the future for the spin-off entity in an asset with long-term growth potential. The spin-off is planned to be submitted to a vote at TotalEnergies’ annual Shareholders’ Meeting in May 2023.
Oman: TotalEnergies is Rolling Out its Integrated Gas Strategy
On January 20, 2023, in line with its growth strategy in gas and LNG, a fuel contributing to the energy transition, TotalEnergies announced the start of gas production from onshore Block 10 in the Sultanate of Oman as well as an agreement with Oman LNG for a long-term LNG purchase contract.
Start of gas production from Block 10
TotalEnergies announced the start of gas production from the Mabrouk North-East field in the onshore Block 10. TotalEnergies holds a 26.55% interest in Block 10, with OQ holding 20%, and Shell, operator, holding 53.45%.
Gas production is expected to reach 500 million standard cubic feet per day by mid-2024. The produced gas is expected to supply the Omani gas network, feeding both local industry and LNG export facilities. This production start-up follows the signing of the concession agreement in December 2021.
Long-term LNG purchase contract
TotalEnergies signed an agreement with Oman LNG for the purchase of 0.8 million metric tons of LNG per year over a period of ten years starting from 2025.
This new contract is expected to contribute to TotalEnergies' LNG integrated portfolio and reinforce its flexibility, by allowing to address both the European and Asian markets. This LNG is expected to contribute to the reduction of emissions into the atmosphere, since it is expected to allow the electric utilities that purchase this gas to substitute it for coal, thus avoiding CO2 emissions (a natural gas power plant releases about half as much CO2 as a coal power plant).
TotalEnergies signed a 30 MW of Solar projects in Oman, including a project to supply Sharqiyah Desalination Company (17 MW), in joint-venture with Veolia.
Brazil: Launch of the Lapa South-West Project
On January 16, 2023, TotalEnergies approved the final investment decision of the Lapa South-West oil development located in the Santos Basin, 300 km off the coast of Brazil.
TotalEnergies operates the project with a 45% interest, in partnership with Shell (30%) and Repsol Sinopec (25%). Lapa South-West is expected to be developed through three wells, connected to the existing Lapa FPSO located 12 km away and currently producing the North-East part of Lapa field since 2016.
At production start-up, expected in 2025, Lapa South-West is expected to increase production from the Lapa field by 25,000 barrels of oil per day, bringing the overall production to 60,000 barrels of oil per day.
This development represents an investment of approximately $1 billion.
Commissioning of the floating LNG regasification unit delivered by TotalEnergies to Lubmin terminal in Germany
On January 13, 2023, TotalEnergies announced the start-up of the Deutsche Ostsee LNG import terminal for liquefied natural gas (LNG). Operated by Deutsche ReGas and located in Lubmin on the German Baltic Sea coast, the site’s official inauguration took place on January 14, 2023, and was attended by German Federal Chancellor Olaf Scholz. This project, to which TotalEnergies is contributing a floating storage and regasification unit (FSRU) and supplying LNG, is expected to make the Company one of Germany’s main LNG suppliers.
In December 2022, TotalEnergies delivered the Neptune, one of the Company's two floating storage and regasification units, to Deutsche ReGas. The vessel has an annual regasification capacity of 5 billion cubic meters of gas, expected to sufficiently cover about 5% of current German demand.
Following Deutsche Regas’s open season procedure, on October 2022, TotalEnergies also contracted regasification capacity of 2.6 billion cubic meters of gas per year and began to deliver LNG from its global integrated portfolio to the Lubmin terminal.
Biogas in France: TotalEnergies commissions BioBéarn, the country’s largest anaerobic digestion unit
On January 12, 2023, TotalEnergies launched its eighteenth biogas production unit in France, which is expected to be the largest in the country, with a maximum capacity of 160 gigawatt hours (GWh).
Named BioBéarn and located in Mourenx in the south-west of France, this new unit, fed with organic waste, has begun delivering its first cubic meters of biomethane – a renewable, decarbonized and locally produced gas – into the natural gas transmission network operated by Téréga. It is expected to produce 69 GWh in 2023 and then ramp up progressively to keep pace with the rapidly growing demand for biogas.
The project, which illustrates TotalEnergies' commitment to promoting the circular economy, is expected to convert 220,000 metric tons of organic waste into 200,000 metric tons per year of digestate, a natural fertilizer, and 160 GWh of biomethane, equivalent to the average annual consumption of 32,000 people. BioBéarn aims to enable the Lacq basin, a historical gas area, to pursue a local and sustainable growth, by intending to avoid the emission of 32 000 tons of CO2 per year.
The development of BioBéarn began in 2016 and involved all local stakeholders, including over 200 from farming and the food industry, the local community and elected officials, allowing the project to adapt to the needs and potential of the territory.
BioBéarn key figures :
| · | 160 GWh biomethane production capacity, equivalent to the average annual needs of 32,000 people, and covering all uses of natural gas. |
| · | Over 220,000 tons/year of organic waste: residues from local farming activities and agri-food industry. |
| · | Almost 200,000 tons/year of digestate, a natural, hygienized fertilizer, that is expected to be sprayed on farmland within 50 km of the unit, saving almost 5,000 tons of chemical fertilizer. |
Cyprus: TotalEnergies announces a new gas discovery in offshore Block 6
On December 21, 2022, TotalEnergies and Eni (operator) announced that they had made a new gas discovery at the Zeus-1 well, in Block 6, offshore Cyprus. This discovery follows the Calypso-1 and the Cronos-1 discoveries made on the same block, respectively in 2018 and August 2022. The Zeus-1 well encountered gas in carbonate reservoirs that reinforces the promising outlook for the area and its development.
Located 162 km off the Cyprus coast and 5 km West of Cronos-1, Zeus-1 has been safely drilled and successfully tested by the Tungsten Explorer drillship.
TotalEnergies holds a 50% interest in Block 6, where Eni is the operator (50%). In Cyprus, TotalEnergies is also present in offshore Block 11 (50%, operator), 7 (50%, operator), 2 (20%), 3 (30%), 8 (40%) and 9 (20%).
Brazil: TotalEnergies Wins a New Exploration License
On December 19, 2022, TotalEnergies, and its co-venturers QatarEnergy and Petronas Petróleo Brasil Ltda (PPBL) announced that they had won the Agua Marinha block in the Open Acreage under Production Sharing Regime – 1st Cycle held by Brazil’s National Petroleum Agency (ANP). Petrobras exercised its right to take a 30% Participating Interest and Operatorship.
Agua Marinha is a large block of 1,300 km2, about 140 km from onshore, located in the pre-salt Campos Basin.
TotalEnergies will participate in the block with a 30% interest, alongside Petrobras operator (30%), QatarEnergy (20%) and PPBL (20%).
The entry into this block follows the entry into 2 blocks, S-M-1815 and S-M-1711, in the South Santos basin during the 3rd Cycle of the Permanent offer that took place on April 13, 2022.
Aramco and TotalEnergies to Build a Giant Petrochemical Complex in Saudi Arabia
On December 15, 2022, the Saudi Arabian Oil Company (“Aramco”) and TotalEnergies announced that they had taken the final investment decision for the construction of what is intended to be a world scale petrochemical facility in Saudi Arabia. The “Amiral” complex is expected to be owned, operated, and integrated with the existing SATORP refinery located in Jubail on Saudi Arabia’s eastern coast. The investment decision is subject to customary closing conditions and approvals.
The petrochemical facility is expected to enable SATORP to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals, helping to advance Aramco’s liquids to chemicals strategy.
The complex is expected to comprise a mixed feed cracker capable of producing 1.65 million tons per annum of ethylene, the first in the region to be integrated with a refinery. It is also expected to include two state-of-the-art polyethylene units using Advanced Dual Loop technology, a butadiene extraction unit, and other associated derivatives units.
The project alone represents an investment of around $11 billion, of which $4 billion is expected to be funded through equity by Aramco (62.5%) and TotalEnergies (37.5%). Its construction is expected to begin during the first quarter of 2023 with commercial operations targeted to start in 2027.
On July 2022, SATORP was the first MENA refinery to be certified ISCC+, an international recognition towards its circular initiatives, such as the recycling of plastic and used cooking oil. A first batch of recycled plastic was processed by the refinery in November 2022.
Lebanon: TotalEnergies Mobilizes to Explore Block 9 in 2023
On December 12, 2022, Patrick Pouyanné, Chairman and CEO of TotalEnergies, met with His Excellency Walid Fayad, Minister of Energy and Water of Lebanon, at TotalEnergies’ headquarters.
During the meeting, Patrick Pouyanné and Walid Fayad discussed the development of TotalEnergies' activities in Lebanon, and Patrick Pouyanné confirmed that the teams in charge of drilling operations on Block 9 were now mobilized.
To date, in addition to the Operations Manager, more than 10 people are involved in the preparation of the well. By the end of March, the team mobilized in Beirut is expected to reach more than 20 employees. The call for tenders to secure the drilling rig has been issued and is expected to lead to a selection of the rig in the first quarter of 2023. Pre-orders have also been placed with suppliers for equipment required for the well. In parallel, offshore resources are being mobilized to contribute to the environmental studies which are expected to be finalized by the end of June 2023.
All of the TotalEnergies teams are working in collaboration with LPA to prepare the well in order to achieve the objective of TotalEnergies and its partner, ENI, to complete the drilling as soon as possible in 2023.
Russia: TotalEnergies has decided to withdraw its directors from Novatek, will no longer equity account for its stake in Novatek and is expected to record a $3.7 billion (US) impairment in Q4 2022
On December 9, 2022, further to TotalEnergies’ principles of conduct defined for its activities in relation to Russia, published on March 22, 2022, TotalEnergies has gradually started to withdraw from its Russian assets while ensuring that it continues to supply gas to Europe.
TotalEnergies holds a 19.4% stake in the company Novatek, a stake that it cannot sell given the prevailing shareholders’ agreements, as it is forbidden for TotalEnergies to sell any asset to one of Novatek's main shareholders who is under sanction.
In view of the European sanctions in force since the beginning of the war in Ukraine, the two directors representing TotalEnergies on the board of directors of Novatek have been led to abstain from voting in
meetings of the board of directors of this company, in particular on financial matters. They are therefore no longer in a position to fully carry out their duties on the board.
Given these circumstances, the Board of Directors of TotalEnergies has withdrawn its representatives from the board of PAO Novatek.
As a result, the criteria for significant influence no longer being met within the meaning of the accounting regulations that apply to TotalEnergies, TotalEnergies will no longer equity account for its 19.4% stake in Novatek in its accounts.
TotalEnergies is expected to record an impairment of approximately $3.7 billion in its accounts for the 4th quarter of 2022. In addition, TotalEnergies will no longer book reserves for its interest in Novatek, with an impact on TotalEnergies’ reported proved reserves at the end of 2021 of approximately 1.7 billion of barrels. However, the life duration of TotalEnergies’ proved reserves should remain above 11 years of production.
First Progress Report on TotalEnergies Foundation’s Call for Partners: 26 High Social Impact Projects Serving 55,000 Young People
On December 6, 2022, TotalEnergies announced that since 2020, TotalEnergies Foundation's annual call for partners has given new associations an opportunity to present their projects in the area of Education & Inclusion. In September 2022, nine associations were selected as partners. They are expected to benefit from support and financial backing. TotalEnergies has allocated a budget of €200 million to the TotalEnergies Foundation for 2023-2027, prioritizing projects focusing on assisting disadvantaged youth.
Three years after the first call for partners in France, TotalEnergies Foundation presented the initial results:
| § | 200 applications have been reviewed and 26 high social impact projects selected by the Foundation benefiting almost 55,000 young people in extremely vulnerable situations. |
| § | The selected projects benefit from one to three years of financial backing, as well as assistance from the TotalEnergies Foundation in developing their impact and ability to take action. |
| § | The calls for partners have enhanced the Foundation’s contribution to projects to help young people in disadvantaged neighborhoods and rural areas. TotalEnergies Foundation has also expanded its commitment to new, particularly fragile populations, such as young people coming out of child protective services or prison, as well as incarcerated youth. |
| § | In particular, the TotalEnergies Foundation targets solutions that bring jobs and education closer together, as well as programs that get parents involved in their children's success. The leverage effect of these initiatives increases their impact among young people. |
The next call for partners is expected to take place in the first quarter of 2023.
TotalEnergies and Air France-KLM signed a Memorandum of Understanding to supply sustainable aviation fuel for 10 years
On December 5, 2022, TotalEnergies and Air France-KLM signed a Memorandum of Understanding (MoU), which aims for the delivery of more than one million cubic metres/800,000 tonnes of Sustainable Aviation Fuel (SAF) by TotalEnergies to Air France-KLM Group airlines over the 10-year period from 2023.
This sustainable aviation fuel is expected to be produced by TotalEnergies at its biorefineries. It will be made available to Air France-KLM Group’s airlines, mainly for flights departing from France (in accordance with French legislation) and the Netherlands.
The sustainable aviation fuels produced by TotalEnergies have the potential to reduce CO2 emissions by approximately 80% on average over the entire lifecycle, compared with their fossil fuel equivalent.
Air France-KLM has implemented a strict sourcing policy and is committed to purchasing only SAFs that do not compete with human food or animal feed, that are RSB (Roundtable on Sustainable Biomaterials) or ISCC (International Sustainability and Carbon Certification) certified for sustainability, and that are not derived from palm oil.
With the signing of this MoU, Air France-KLM and TotalEnergies confirm their collaboration and their goal of furthering the development of a more responsible aviation sector.
Kazakhstan: TotalEnergies Implements its Energy Transition Strategy – TotalEnergies Sells its Interest in the Dunga Oil Field and Progresses Towards the Implementation of a 1 GW Wind Energy Project
On December 1, 2022, TotalEnergies implemented its energy transition strategy in Kazakhstan with, on the one hand, the sale of its affiliate Total E&P Dunga GmbH and, on the other hand, the giant Mirny wind farm project that received the support of the French and Kazakh authorities on the occasion of the visit in France of the President of Kazakhstan, Kassym Jomart Tokayev.
On November 28, 2022, TotalEnergies signed an agreement for the sale of its affiliate Total E&P Dunga GmbH to the Kazakh company, Oriental Sunrise Corp Ltd, for $330 million. Total E&P Dunga GmbH holds a 60% operating interest in the onshore Dunga oil field in Kazakhstan, representing a net production of approximately 7,400 barrels of oil equivalent per day in 2022. The transaction is subject to the approval of the authorities of Kazakhstan and the waiver of the partners’ preemption rights.
TotalEnergies also strengthens its presence in renewable energy in the country. In addition to its two solar power plants in operation (with a capacity of 128 MW), Total Eren signed an agreement with its partners Samruk-Kazyna and KazMunayGas to develop the Mirny project, one of the largest wind energy projects initiated in Kazakhstan. This project is part of the intergovernmental agreement on the implementation of cooperation in the field of combating global warming, signed by France and Kazakhstan. The 200 wind turbines, totaling 1 GW of installed capacity, are expected to be combined with a 600 MWh battery storage system. The project aims to supply more than 1 million people in Kazakhstan with low-carbon electricity.
Circular Economy: TotalEnergies and Air Liquide innovate to produce Renewable, Low Carbon Hydrogen at the Grandpuits Zero Crude Platform.
On November 22, 2022, TotalEnergies and Air Liquide announced that they are innovating to produce and valorize renewable, low carbon hydrogen at the Grandpuits zero crude platform. Under a long-term contract committing TotalEnergies to purchase the hydrogen produced for the needs of its platform, Air Liquide is expected to invest over €130 million in the construction and operation of a new unit producing hydrogen. This unit is expected to partly use biogas from the biorefinery built by TotalEnergies and is expected to be delivered with Air Liquide’s carbon capture technology CryocapTM. These innovations aim to prevent emissions amounting to 150,000 tons of CO2 a year compared to current processes. TotalEnergies’ biorefinery is expected to use the unit’s hydrogen to produce sustainable aviation fuel.
In line with the two companies’ shared ambition to get to net zero by 2050, the project includes the following innovations, expected to be sustainable and circular:
| · | The new hydrogen production unit, with an estimated production capacity of over 20,000 tons a year, is expected to produce hydrogen that is partly renewable, due to the recycling of residual biogas from the Grandpuits biorefinery, in place of the natural gas that is normally used. |
| · | This unit is expected to be delivered with a carbon capture technology, potentially allowing it to help reduce the platform’s carbon footprint, by capturing over 110,000 tons of CO2 a year for reuse in food and industrial applications. |
| · | Most of the unit’s renewable, low carbon hydrogen is expected to be used by the biorefinery itself to produce sustainable aviation fuel and potentially be used to support sustainable mobility in the Ile-de-France region. |
Libya: TotalEnergies Increases its Interest in the Waha Concessions
In November 2022, TotalEnergies completed the joint acquisition with ConocoPhillips of the 8.16% interest held by Hess in the Waha concessions, in Libya. As a result of this transaction, TotalEnergies’ interest in these concessions increased from 16.33% to 20.41%.
This acquisition reflects TotalEnergies’ commitment to support Libya’s National Oil Corporation (NOC) in its efforts to restore and increase the country’s oil production, together with reducing gas flaring to increase supply to power plants for additional electricity supply. TotalEnergies and the NOC are also studying the development of dedicated solar projects to supply electricity to Waha production sites.
In parallel, and in an effort to increase the country’s renewable electricity supply, TotalEnergies has finalized with its partner Gecol the location and commercial terms to launch a 500 MWp solar plant project South of Misrata.
Agreement on Maritime Border Line between Israel and Lebanon: TotalEnergies is expected to Launch Exploration Activities on Block 9
On November 15, 2022, TotalEnergies and its partner ENI signed with the State of Israel a Framework Agreement to implement the agreement on maritime boundary which was reached between Israel and Lebanon on October 27, 2022.
In Lebanon, TotalEnergies is the operator of the exploration Block 9 and holds a 60% interest, alongside its partner ENI (40%).
Following the signature of this Framework Agreement, the Block 9 partners are expected to initiate the exploration of an already identified prospect, which might extend both in Block 9 and into Israeli waters, south of the recently established Maritime Border Line.
Preparation of exploration activities is underway with the mobilization of the teams, the purchase of required equipment, and the procurement of a drilling rig.
Brazil: TotalEnergies Announces Oil Discovery in the Sépia Area
On October 31, 2022, TotalEnergies announced an oil discovery by the Pedunculo well, located in the north-west of the Sépia oil field, approximately 250 km off the coast of Rio de Janeiro, Brazil.
This discovery lies within the Sépia Coparticipated Area, which covers the Sépia Transfer of Rights (ToR) contract (Petrobras, 100%) and the Sepia ToR Surplus Production Sharing Contract awarded in December 2021 to Petrobras (30%), TotalEnergies (28%), QatarEnergy (21%), and Petronas (21%), with Pre-Sal Petróleo S.A. (PPSA) as manager.
The Sépia Co-participated Area is operated by Petrobras, with a stake of 51.9%. TotalEnergies holds a 19.2% net interest, alongside QatarEnergy (14.4%) and Petronas (14.4%). The Sépia shared reservoir is currently producing 170,000 barrels of oil per day.
The well was drilled at a water depth of approximately 2,200 meters. The net thickness of the well’s oil column is one of the highest recorded in Brazil. Operations to characterize the reservoir and measure the extent of the discovery are ongoing.
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 December 31, 2022, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (“dollars” or “$”) or in euros (“euros” or “€”).
| At December 31, | |||
| 2022 | |||
| (in millions of dollars) | |||
| Current financial debt, including current portion of non-current financial debt | |||
| Current portion of non-current financial debt | 6,471 | ||
| Current financial debt | 9,031 | ||
| Current portion of financial instruments for interest rate swaps liabilities | 262 | ||
| Other current financial instruments — liabilities | 226 | ||
| Financial liabilities directly associated with assets held for sale | 0 | ||
| Total current financial debt | 15,990 | ||
| Non-current financial debt | 45,264 | ||
| Non-controlling interests | 2,846 | ||
| Shareholders’ equity | |||
| Common shares | 8,163 | ||
| Paid-in surplus and retained earnings | 123,951 | ||
| Currency translation adjustment | (12,836) | ||
| Treasury shares | (7,554) | ||
| Total shareholders’ equity — TotalEnergies share | 111,724 | ||
| Total capitalization and non-current indebtedness | 159,834 |
As of December 31, 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 137,187,667 were 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 December 31, 2022, approximately $8,329 million of TotalEnergies’ non-current financial debt was secured and $36,935 million was unsecured, and all of TotalEnergies’ current financial debt of $15,990 million was unsecured. As of December 31, 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 December 31, 2022.