TIDMTTE 
 
 

TOTAL ENERGIES

Financial report

 

1(st) half 2021

 

Certification of the person responsible for the half-year financial report

 

This translation is a non binding translation into English of the Chairman and Chief Executive Officer's certification issued in French, and is provided solely for the convenience of English-speaking readers.

 

"I certify, to the best of my knowledge, that the condensed Consolidated Financial Statements of TotalEnergies SE (the Corporation) for the first half of 2021 have been prepared in accordance with the applicable set of accounting standards and give a fair view of the assets, liabilities, financial position and profit or loss of the Corporation and all the entities included in the consolidation, and that the half-year financial report on pages to herein includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements, major related parties transactions and the principal risks and uncertainties for the remaining six months of the financial year.

 

The statutory auditors' report on the limited review of the above-mentioned condensed Consolidated Financial Statements is included on page of this half-year financial report."

 

Courbevoie, July 29, 2021

Patrick Pouyanné

 

Chairman and Chief Executive Officer

 

Glossary

 

The terms "TotalEnergies" and "TotalEnergies company" as used in this document refer to TotalEnergies SE collectively with all of its direct and indirect consolidated companies located in or outside of France. The term "Corporation" as used in this document exclusively refers to TotalEnergies SE, which is the parent company of TotalEnergies company.

 
Abbreviations 
EUR :          euro 
$ or dollar :  US dollar 
ADR :          American depositary receipt (evidencing an ADS) 
ADS :          American depositary share (representing a share of a company) 
AMF :          Autorité des marchés financiers (French Financial 
               Markets Authority) 
API :          American Petroleum Institute 
CO(2) :        carbon dioxide 
DACF :         debt adjusted cash flow is defined as operating cash flow 
               before working capital changes without financial charges 
EV :           electric vehicle 
FLNG :         floating liquefied natural gas 
FPSO :         floating production, storage and offloading 
FSRU :         floating storage and regasification unit 
GHG :          greenhouse gas 
HSE :          health, safety and the environment 
IFRS :         International Financial Reporting Standards 
IPIECA :       International Petroleum Industry Environmental Conservation 
               Association 
LNG :          liquefied natural gas 
LPG :          liquefied petroleum gas 
NGL :          natural gas liquids 
NGV :          natural gas vehicle 
OML :          oil mining lease 
PPA :          Power Purchase Agreement 
ROACE :        return on average capital employed 
ROE :          return on equity 
SEC :          United States Securities and Exchange Commission 
VCM :          variable cost margin -- Refining Europe This indicator 
               represents the average margin on variable costs realized by 
               TotalEnergies' European refining business. It is 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. 
 
 
Units of measurement 
b = barrel(1) 
b = billion 
Bcm = billion of cubic meters 
boe = barrel of oil equivalent 
btu = British thermal unit 
cf = cubic feet 
CO(2) e = CO(2) equivalent 
/d = per day 
GtCO(2) = billion of CO(2) tons 
GW = gigawatt 
GWh = gigawatt hour 
k = thousand 
km = kilometer 
m = meter 
m(3) = cubic meter(1) 
M = million 
MW = megawatt 
PJ = petajoule 
t = (Metric) ton 
toe = ton of oil equivalent 
TWh = terawatt hour 
W = watt 
Wac = AC watt 
Wp = watt-peak or watt of peak power 
/y = per year 
 
Conversion table 
1 acre .APPROX. 0.405 hectares 
1 b = 42 gallons US .APPROX. 159 liters 
1 b/d of crude oil .APPROX. 50 t/y of crude oil 
1 km .APPROX. 0.62 miles 
1 m(3) .APPROX. 35.3 cf 
1 Mt de LNG .APPROX. 48 Bcf of gas 
1 Mt/y of LNG .APPROX. 131 Mcf/d of gas 
1 t of oil .APPROX. 7.5 b of oil (assuming a specific gravity of 37deg API) 
1 boe = 1 b of crude oil .APPROX. 5,399 cf of gas in 2020(2) (5,395 cf in 2019 
and 5,387 cf in 2018) 
 
 
(1) Liquid and gas volumes are reported at international standard metric 
conditions (15degC and 1 atm). (2) Natural gas is converted to barrels of oil 
equivalent using a ratio of cubic feet of natural gas per one barrel. This 
ratio is based on the actual average equivalent energy content of 
TotalEnergies' natural gas reserves during the applicable periods and is 
subject to change. The tabular conversion rate is applicable to TotalEnergies 
natural gas reserves on a Company-wide basis. 
 

01 HALF YEAR FINANCIAL REPORT

 

1.1 Highlights since the beginning of 2021(1) Sustainability

   -- Total transforms and becomes TotalEnergies, with a new visual identity 
 
   -- TotalEnergies' Board of Directors takes the initiative to submit a 
      resolution on the Company's ambition for sustainable development and 
      energy transition toward carbon neutrality 
 
   -- Consistent with its climate policy, TotalEnergies withdraws from the 
      American Petroleum Institute 
 
   -- Inauguration of L'Industreet, a campus for training young people in the 
      industry profession, TotalEnergies' flagship action for social 
      responsibility in France 
 
   -- 3rd place globally and 1st place for the sector Oil and Gas in the 
      BloombergNEF ranking on the alignment of corporate strategies with the 
      United Nations' Sustainable Development Goals 
 
   -- TotalEnergies and Chevron decide to suspend distribution of dividends 
      from gas transport company in Myanmar 
 
   -- Partnership with Novatek to reduce emissions from LNG production, develop 
      large-scale carbon capture and storage, and study carbon-free hydrogen 
      and ammonia projects 
 
   -- Partnership with GHGSat for satellite-based monitoring of methane 
      emissions at sea 
 

Renewables and Electricity

   -- Acquired in India 20% of Adani Green Energy Limited (AGEL), the largest 
      solar developer in the world 
 
   -- Secured with Macquarie rights to seabed lease to jointly develop 1.5 GW 
      offshore wind project in the UK 
 
   -- Acquired 4 GW portfolio of solar and energy storage projects in the US 
 
   -- Farmed down 50% of two renewables portfolios in France representing close 
      to 340 MW 
 
   -- Acquired 23% stake in 640 MW offshore wind project under construction in 
      Taiwan 
 
   -- Acquisition by Adani Green Energy Ltd., in which TotalEnergies has a 20% 
      stake, of a portfolio of 5 GW of renewable electricity generation 
      capacity in operation and under construction in India that will 
      contribute 1 GW to TotalEnergies' target of 35 GW in 2025 
 
   -- Signed major green power sale agreement to Orange to develop 80 MW of 
      solar farms in France 
 
   -- Signed contract with Merck & Co. for the sale of 90 GWh/y renewable 
      electricity in Spain for 10 years 
 
   -- Sales contract for 50GWh/y over 15 years with Air Liquide in Belgium 
 
   -- Partnered with Microsoft to support digital innovation and carbon 
      neutrality goals 
 
   -- Partnership with Amazon to supply (474 MW) renewable electricity to its 
      data centers in Europe and the United States, and to accelerate 
      TotalEnergies digital transformation 
 

LNG

   -- Declaration of force majeure on Mozambique LNG project considering the 
      security situation in the northern Cabo Delgado 
 
   -- Remobilization of the Papua LNG project with a view to final investment 
      decision in 2023 
 
   -- Agreement with Novatek to acquire 10% of Arctic Transshipment LLC, which 
      will operate two LNG transshipment terminals under construction in Russia 
 
   -- Tolling agreement with GIP, for more than $750 million, for Gladstone LNG 
      infrastructure in Australia 
 
   -- Withdrew from the Driftwood LNG project and sold TotalEnergies' stake in 
      Tellurian Inc. 
 
   -- Signed agreements with Shenergy Group for the supply of up to 1.4 Mt/y of 
      LNG in China 
 
   -- Signed contract with ArcelorMittal Nippon Steel for a 5-year supply of up 
      to 0.5 Mt/y of LNG in India 
 
   -- Obtained supplier license for marine bunker LNG in Singapore 
 
   -- Technical collaboration agreements with Siemens Energy and Technip 
      Energies to develop low-carbon LNG technologies 
 

Upstream

   -- Signed definitive agreements enabling the launch of Tilenga and 
      Kingfisher upstream oil projects and construction of East African Crude 
      Oil Pipeline in Uganda and Tanzania 
 
   -- Published societal and environmental studies relating to the Tilenga and 
      EACOP projects in Uganda and Tanzania 
 
   -- Started production of Zinia Phase 2, short-cycle development project on 
      Block 17 in Angola 
 
   -- Significant new discovery on the Sapakara South well in Suriname 
 
   -- Awarded two new conventional offshore exploration permits in Suriname 
      with partner Qatar Petroleum 
 
   -- Entry on Block 29 exploration permit in Angola as operator 
 
   -- Agreed to divest TotalEnergies 18% interest in the Sarsang block, in 
      Iraqi Kurdistan 
 
   -- Divested TotalEnergies' interest in Petrocedeño to PDVSA in 
      Venezuela which led to the recognition of an exceptional capital loss of 
      $1.38 billion during the second quarter 2021 
 

Downstream

   -- Started production of sustainable aviation biofuels in France and made, 
      in partnership with Air France-KLM, Groupe ADP and Airbus, the first 
      long-haul flight with sustainable air fuel (SAF) in France 
 
   -- Obtained concession for the expansion of the public charging network for 
      electric vehicles of the City of Amsterdam, with 2,200 new charging 
      points 
 
   -- Global partnership in the field of lubricants and electric mobility with 
      Peugeot, Citroën, DS Automobiles, Opel and Vauxhall 
 
   -- Partnership agreement with Uber to accelerate transition of VTC drivers 
      to electric mobility in France 
 
   -- Acquired 20% stake in Hysetco, a French company owning the world's first 
      fleet of hydrogen taxis, operated under the Hype brand, as well as 
      hydrogen charging stations 
 

Carbon sinks

   -- Investment to plant 40,000-hectare forest in Republic of Congo that will 
      create a carbon sink to sequester more than 10 million tons of CO2 over 
      20 years 
 
   -- Creation of the joint-venture development of the Northern Lights CO2 
      sequestration project in the northern North Sea 
 
(1) Certain transactions referred to in the highlights are subject to approval 
by authorities or to conditions as per the agreements. 
 

1.2 Key figures from TotalEnergies' consolidated financial statements(1)

 
In millions of dollars, except effective tax 
rate, earnings per share and number of shares    1S21    1S20     1S21 vs 1S20 
Adjusted EBITDA(2)                               16,837  10,583   +59% 
Adjusted net operating income from business 
 segments                                        7,519   3,121    x2.4 
Exploration & Production                         4,188   494      x8.5 
Integrated Gas, Renewables & Power               1,876   1,239    +51% 
Refining & Chemicals                             754     957      -21% 
Marketing & Services                             701     431      +63% 
Contribution of equity affiliates to adjusted 
 net income                                      1,260   669      +88% 
Effective tax rate(3)                            34.4%   24.3%    -- 
Adjusted net income (TotalEnergies share)        6,466   1,907    x3.4 
Adjusted fully-diluted earnings per share 
 (dollars)(4)                                    2.38    0.68     x3.5 
Adjusted fully-diluted earnings per share 
 (euros)*                                        1.97    0.62     x3.2 
Fully-diluted weighted-average shares 
 (millions)                                      2,644   2,598    +2% 
Net income (TotalEnergies share)                 5,550   (8,335)  ns 
Organic investments(5)                           5,181   4,724    +10% 
Net acquisitions(6)                              1,986   1,823    +9% 
Net investments(7)                               7,167   6,547    +9% 
Operating cash flow before working capital 
 changes**(8)                                    11,718  7,409    +58% 
Operating cash flow before working capital 
 changes w/o financial charges (DACF)(9)         12,511  8,420    +49% 
Cash flow from operations                        13,149  4,778    x2.8 
 
 
* Average EUR-$ exchange rate: 1.2053 in the first half 2021. ** 1H20 data 
restated. (1) Adjusted results are defined as income using replacement cost, 
adjusted for special items, excluding the impact of changes for fair value; 
adjustment items are on page --. (2) 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. (3) 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). (4) In accordance with IFRS rules, adjusted fully-diluted 
earnings per share is calculated from the adjusted net income less the 
interest on the perpetual subordinated bond. (5) Organic investments = net 
investments excluding acquisitions, asset sales and other operations with 
non-controlling interests. (6) Net acquisitions = acquisitions -- assets sales 
-- other transactions with non-controlling interests (see page --). (7) Net 
investments = organic investments + net acquisitions (see page --). (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 sale (effective first quarter 2020). The 
inventory valuation effect is explained on page --. The reconciliation table 
for different cash flow figures is on page --. (9) DACF = debt adjusted cash 
flow, is defined as operating cash flow before working capital changes and 
financial charges. 
 

1.3 Key figures of environment, greenhouse gas emissions and production

 

1.3.1 Environment -- liquids and gas price realizations, refining margins

 
                                                      1S21  1S20  1S21 vs 1S20 
Brent ($/b)                                           65.0  40.1  +62% 
Henry Hub ($/Mbtu)                                    2.9   1.8   +57% 
NBP ($/Mbtu)                                          7.7   2.4   x3.2 
JKM ($/Mbtu)                                          10.0  2.9   x3.5 
Average price of liquids ($/b) Consolidated 
 subsidiaries                                         59.7  33.8  +77% 
Average price of gas ($/Mbtu) Consolidated 
 subsidiaries                                         4.23  2.99  +41% 
Average price of LNG ($/Mbtu) Consolidated 
 subsidiaries and equity affiliates                   6.33  5.42  +17% 
Variable cost margin -- Refining Europe, VCM ($/t)    7.6   21.0  -64% 
 

1.3.2 Greenhouse gas emissions(1)

 
GHG emissions (MtCO(2) e)                         1S21 
Scope 1+2 from operated oil & gas facilities(2)   15 
Scope 3(3)                                        159 
Scope 1+2+3 in Europe(4)                          95 
 

1.3.3 Production*

 
Hydrocarbon production                              1S21   1S20   1S21 vs 1S20 
Hydrocarbon production (kboe/d)                     2,805  2,966  -5% 
Oil (including bitumen) (kb/d)                      1,265  1,381  -8% 
Gas (including condensates and associated NGL) 
 (kboe/d)                                           1,540  1,584  -3% 
 
Hydrocarbon production (kboe/d)                     2,805  2,966  -5% 
Liquids (kb/d)                                      1,486  1,626  -9% 
Gas (Mcf/d)                                         7,208  7,302  -1% 
 
 
* Company production = E&P production + iGRP production 
 

Hydrocarbon production was 2,805 kboe/d in the first half 2021, a decrease of 5%, comprised of:

   -- +2% due to the start-up and ramp-up of projects, including North Russkoye 
      in Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and 
      Iara in Brazil, 
 
   -- -1% portfolio effect, notably asset sales in the United Kingdom and Block 
      CA1 in Brunei, 
 
   -- -2% due to planned maintenance and unplanned outages, notably in the 
      United Kingdom, Australia, Norway and Nigeria, 
 
   -- -1% due to the price effect, 
 
   -- -3% due to the natural decline of the fields. 
 
(1) The six greenhouse gases in the Kyoto protocol, namely CO(2) , CH(4) , 
N(2) O, HFCs, PFCs and SF(6) , with their respective GWP (Global Warming 
Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF(6) 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 oil & gas facilities are defined as the sum of direct emissions of 
greenhouse gases from sites or activities that are included in the scope of 
reporting (as defined in the Company's 2020 Universal Registration Document) 
and indirect emissions attributable to brought-in energy (electricity, heat, 
steam), excluding purchased industrial gases (H(2) ). They do not include 
facilities for power generation from renewable sources or natural gas, such as 
combined cycle natural gas power plants (CCGT) and sites with GHG emissions 
and activities of less than 30 kt CO(2) e/year. (3) Scope 3 GHG emissions are 
defined as the indirect emissions of greenhouse gases related to the use by 
customers of energy products sold for end-use, i.e. combustion of the products 
to obtain energy. A stoichiometric emission (oxidation of molecules to carbon 
dioxide) factor is applied to these sales to obtain an emission volume. The 
Company usually follows the oil & gas industry reporting guidelines published 
by IPIECA, which comply with the GHG Protocol methodologies. Only item 11 of 
Scope 3 (use of sold products), which is the most significant, is reported. 
(4) Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 
GHG emissions of facilities operated by the Company and indirect GHG emissions 
related to the use by customers of energy products sold for end-use (Scope 3) 
in the EU, Norway, United Kingdom and Switzerland. 
 

1.4 Analysis of business segments

1.4.1 Integrated Gas, Renewables & Power (iGRP)

 

1.4.1.1 Production and sales of Liquefied natural gas (LNG) and electricity

 
Hydrocarbon production for LNG   1S21   1S20   1S21 vs 1S20 
iGRP (kboe/d)                    510    536    -5% 
Liquids (kb/d)                   58     69     -17% 
Gas (Mcf/d)                      2,470  2,541  -3% 
 
 
Liquefied Natural Gas in Mt                           1S21  1S20  1S21 vs 1S20 
Overall LNG sales                                     20.4  20.2  +1% 
incl. Sales from equity production*                   8.5   9.0   -5% 
incl. Sales by TotalEnergies from equity production 
 and third party purchases                            16.7  16.5  +1% 
 
 
* The Company's equity production may be sold by TotalEnergies or by the joint 
ventures. 
 

Hydrocarbon production for LNG decreased year-on-year by 5% in the first half 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG's liquefaction trains in Australia.

 

Total LNG sales were stable year-on-year in the first half 2021.

 
Renewables & Electricity                              1S21  1S20  1S21 vs 1S20 
Portfolio of renewable power generation gross 
 capacity (GW)(1)(2)                                  41.7  20.4  x2 
o/w installed capacity                                8.3   5.1   +63% 
o/w capacity in construction                          5.4   2.9   +89% 
o/w capacity in development                           28.0  12.4  x2.3 
Gross renewables capacity with PPA (GW)(1)(2)         22.6  11.2  x2 
Portfolio of renewable power generation net capacity 
 (GW)(1)(2)                                           30.7  13.6  x2.3 
o/w installed capacity                                4.0   2.3   +76% 
o/w capacity in construction                          3.1   1.1   x3 
o/w capacity in development                           23.6  10.3  x2.3 
Net power production (TWh)(3)                         9.8   5.9   +67% 
incl. Power production from renewables                3.2   1.8   +79% 
Clients power -- BtB and BtC (Million)(2)             5.8   4.2   +38% 
Clients gas -- BtB and BtC (Million)(2)               2.7   1.7   +58% 
Sales power -- BtB and BtC (TWh)                      28.8  23.6  +22% 
Sales gas -- BtB and BtC (TWh)                        56.8  50.9  +12% 
 
Proportional adjusted EBITDA Renewables and 
 Electricity (M$)(4)                                  635   340   +87% 
incl. from renewables business                        210   184   +14% 
 

Gross installed capacity of renewable electricity generation grew to 8.3 GW at the end of first semester 2021.

 

Net electricity production was 9.8 TWh in the first half 2021, an increase of 67% year-on-year, notably due to strong growth in renewable electricity generation and the acquisition of four CCGT plants in France and Spain in the fourth quarter of 2020.

 

Electricity and gas sales increased by 22% and 12% respectively in the first half 2021 compared to last year thanks to the growing number of customers, with TotalEnergies notably surpassing the 5 million customer mark (B2C and B2B) in France.

 

TotalEnergies' share of the EBITDA of the Renewables and Electricity activities was $635 million in the first half 2021, an increase of 87% over one year, driven by growing electricity production, particularly renewable electricity, and the number of gas and electricity customers.

 
(1) Includes 20% of Adani Green Energy Ltd gross capacity effective first 
quarter 2021. (2) End of period data. (3) Solar, wind, biogas, hydroelectric 
and combined-cycle gas turbine (CCGT) plants. (4) TotalEnergies share (% 
interest) of EBITDA (Earnings Before Interest, Tax, Depreciation and 
Amortization) in Renewables and Electricity affiliates, regardless of 
consolidation method. 
 

1.4.1.2 Results

 
In millions of dollars                              1S21   1S20   1S21 vs 1S20 
Adjusted net operating income*                      1,876  1,239  +51% 
including income from equity affiliates             620    179    x3.5 
Organic investments                                 1,512  1,264  +20% 
Net acquisitions                                    2,059  1,570  +31% 
Net investments                                     3,571  2,834  +26% 
Operating cash flow before working capital 
 changes**                                          1,963  1,652  +19% 
Cash flow from operations***                        1,347  900    +50% 
 
 
* Detail of adjustment items shown in the business segment information annex 
to financial statements. ** Excluding financial expenses, except those related 
to lease contracts, excluding the impact of contracts recognized at fair value 
for the sector and including capital gains on the sale of renewable projects. 
1H20 data restated (see note 8 on page --). *** Excluding financial charges, 
except those related to leases. 
 

Adjusted net operating income for the iGRP sector was 1,876 million in the first half 2021, an increase of 51% year-on-year, thanks to higher LNG prices, growing contribution from Renewables and Electricity as well as good performance by the trading activities in the first quarter 2021.

 

Operating cash flow before working capital changes increased 19% year-on-year to $1,963 million in the first half 2021, in line with the rise in LNG prices and the growing contribution of Renewables and Electricity.

1.4.2 Exploration-Production

 

1.4.2.1 Production

 
Hydrocarbon production   1S21   1S20   1S21 vs 1S20 
EP (kboe/d)              2,295  2,430  -6% 
Liquids (kb/d)           1,428  1,557  -8% 
Gas (Mcf/d)              4,738  4,761  -- 
 

1.4.2.2 Results

 
In millions of dollars, except effective tax rate   1S21   1S20   1S21 vs 1S20 
Adjusted net operating income*                      4,188  494    x8.5 
including income from equity affiliates             549    438    +25% 
Effective tax rate**                                39.5%  69.6%  -- 
Organic investments                                 2,838  2,684  +6% 
Net acquisitions                                    29     305    -90% 
Net investments                                     2,867  2,989  -4% 
Operating cash flow before working capital 
 changes***                                         8,086  4,386  +84% 
Cash flow from operations***                        8,571  4,833  +77% 
 
 
* Details on adjustment items are shown in the business segment information 
annex to financial statements. ** Tax on adjusted net operating 
income/(adjusted net operating income - income from equity affiliates - 
dividends received from investments - impairment of goodwill + tax on adjusted 
net operating income). *** Excluding financial charges, except those related 
to leases. 
 

Adjusted net operating income for Exploration & Production was $4,188 million in the first half 2021, more than eight times higher in the first half 2020, thanks to the sharp rebound in oil and gas prices.

 

Operating cash flow before working capital changes increased by 84% to $8,086 million in the first half 2021, in line with higher oil and gas prices.

1.4.3 Downstream (Refining & Chemicals and Marketing & Services)

 

1.4.3.1 Results

 
In millions of dollars                              1S21   1S20   1S21 vs 1S20 
Adjusted net operating income*                      1,455  1,388  +5% 
Organic investments                                 803    734    +9% 
Net acquisitions                                    (104)  (50)   ns 
Net investments                                     699    684    +2% 
Operating cash flow before working capital 
 changes**                                          2,332  2,552  -9% 
Cash flow from operations**                         4,330  317    x13.7 
 
 
* Detail of adjustment items shown in the business segment information annex 
to financial statements. ** Excluding financial charges, except those related 
to leases. 
 

1.4.3.2 Refining & Chemicals

 

1.4.3.2.1 Refinery and petrochemicals throughput and utilization rates

 
Refinery throughput and utilization rate*   1S21   1S20   1S21 vs 1S20 
Total refinery throughput (kb/d)            1,109  1,347  -18% 
France                                      131    230    -43% 
Rest of Europe                              578    676    -14% 
Rest of world                               400    441    -9% 
Utlization rate based on crude only**       58%    64% 
 
 
* Includes refineries in Africa reported in the Marketing & Services segment. 
** Based on distillation capacity at the beginning of the year, excluding 
Grandpuits (definitively shut down first quarter 2021) from 2021 and Lindsey 
refinery (divested) from second quarter 2021. 
 
 
Petrochemicals production and utilization rate   1S21   1S20   1S21 vs 1S20 
Monomers* (kt)                                   2,829  2,778  +2% 
Polymers (kt)                                    2,377  2,395  -1% 
Vapocracker utilization rate**                   88%    83% 
 
 
* Olefins. ** Based on olefins production from steamcrackers and their 
treatment capacity at the start of the year. 
 

Refinery throughput decreased 18% in the first half 2021 compared to the previous year, mainly due to the prolonged voluntary economic shutdown of the Donges refinery given the low European margins, the planned major shutdown of the Leuna refinery in Germany, the shutdown of the Grandpuits refinery in the first quarter 2021 for its conversion to a zero-oil platform, and the sale of the Lindsey refinery in the United Kingdom. The decrease was partially offset by the restart of the Feyzin refinery, in France, and the distillation unit at the Normandy platform, following a fire at the end of 2019.

 

Monomer production increased slightly in the first half 2021 compared to a year ago thanks to the restart of the Feyzin refinery, in France, after a major shutdown in 2020.

 

Polymer production also increased slightly in the first half 2021 compared to a year ago, despite the major shutdown in the second quarter 2021 of the Feluy plant in Belgium.

 

1.4.3.2.2 Results

 
In millions of dollars                              1S21   1S20   1S21 vs 1S20 
Adjusted net operating income*                      754    957    -21% 
Organic investments                                 501    470    +7% 
Net acquisitions                                    (55)   (51)   ns 
Net investments                                     446    419    +6% 
Operating cash flow before working capital 
 changes**                                          1,147  1,670  -31% 
Cash flow from operations**                         3,228  (103)  ns 
 
 
* Detail of adjustment items shown in the business segment information annex 
to financial statements. ** Excluding financial charges, except those related 
to leases. 
 

Adjusted net operating income for the Refining-Chemicals segment decreased 21% year-on-year to $754 million in the first half of 2021, due to still-depressed European refining margins that reflect the recovery in oil prices and the continued weak product demand, notably for distillates, linked to the reduced air transport, and to the outperformance of trading activities in the first half 2020. The first half 2021 results nevertheless benefited from the very good performance of petrochemicals.

 

Operating cash flow before working capital changes decreased by 31% to 1,147 M$ in the first half 2021.

 

Cash flow from operations increased to $3,228 million in the first half 2021 from $(103) million in the first half 2020, mainly due to a decrease in working capital requirements and a positive stock effect.

1.4.3.3 Marketing & Services

 

1.4.3.3.1 Petroleum product sales

 
Sales in kb/d*                     1S21   1S20   1S21 vs 1S20 
Total Marketing & Services sales   1,458  1,478  -1% 
Europe                             783    823    -5% 
Rest of world                      674    656    +3% 
 
 
* Excludes trading and bulk refining sales. 
 

In the first half 2021, petroleum products sales were stable overall year-on-year, as the slowdown in global activity due to the Covid-19 pandemic and the 50% decline in the aviation activity were offset by the global economic rebound seen in the second quarter of 2021.

 

1.4.3.3.2 Results

 
In millions of dollars                               1S21   1S20  1S21 vs 1S20 
Adjusted net operating income*                       701    431   +63% 
Organic investments                                  302    264   +14% 
Net acquisitions                                     (49)   1     ns 
Net investments                                      253    265   -5% 
Operating cash flow before working capital 
 changes**                                           1,185  882   +34% 
Cash flow from operations**                          1,102  420   x2.6 
 
 
* Detail of adjustment items shown in the business segment information annex 
to financial statements. ** Excluding financial charges, except those related 
to leases. 
 

In first half 2021, adjusted net operating income was $701 million compared to $431 million a year earlier. This increase was mainly related to the increase in global sales volumes in a context of rising margins.

 

Operating cash flow before working capital changes was $1,185 million in the first half 2021.

1.5 TotalEnergies results

1.5.1 Adjusted net operating income from business segments

 

Adjusted net operating income for the sectors was $7,519 million in the first half 2021, compared to $3,121 million a year earlier, due to higher oil and gas prices.

1.5.2 Adjusted net income (TotalEnergies share)

 

Adjusted net income (TotalEnergies share) was $6,466 million in the first half 2021 compared to $1,907 million a year earlier, due to the increase in oil and gas prices.

 

Adjusted net income excludes the after-tax inventory effect, special items and impact of changes in fair value(1) .

 

Total net income adjustments(2) were $(916) million in the first half 2021, mainly comprised of the effect of the sale of TotalEnergies' participation in Petrocedeño to PDVSA in Venezuela for an amount of $(1,379) million, a $1,064 million positive inventory effect, restructuring charges related to voluntary departures in France and Belgium and an impairment related to end of the Qatargas 1 contract.

 

The effective tax rate for TotalEnergies was 34.4% in the first half 2021, compared to 24.3% in the first half 2020.

1.5.3 Adjusted earnings per share

 

Adjusted fully-diluted earnings per share was $2.38 in the first half 2021, calculated based on 2,644 million weighted-average diluted shares, compared to $0.68 a year earlier.

 

As of June 30, 2021, the number of fully-diluted shares was 2,654 million.

1.5.4 Acquisitions -- asset sales

 

Acquisitions were $2,870 million in the first half 2021 and included notably the acquisition, for $2 billion, of a 20% interest in the renewable projects developer in India, Adani Green Energy Limited, the 23% stake in a 640 MW offshore wind project in Taiwan, the Fonroche Biogas in France and Repsol's interest in the Tin Fouyé Tabankort II field in Algeria.

 

Asset sales were $884 million in the first half 2021 and included notably the sale in France of a 50% interest in a portfolio of renewable projects with a total capacity of 285 MW (100%), the sale of the 10% interest in onshore block OML 17 in Nigeria, a price supplement relating to the sale of Block CA1 in Brunei, the sale of the Lindsey refinery in the United Kingdom, the sale of TotalEnergies' interest in the TBG pipeline in Brazil, the sale of shares in Clean Energy Fuels Corp, and the sale of its interest in Tellurian Inc. in the United States.

1.5.5 Net cash flow

 

TotalEnergies' net cash flow(3) was $4,551 million in the first half 2021 compared to $862 million a year earlier, which takes into account the $4.3 billion increase in operating cash flow before changes in working capital, partially offset by a $620 million increase in net investments to $7,167 million in the first half 2021.

1.5.6 Profitability

 

The return on equity was 8.4% for the twelve months ended June 30, 2021.

 
                               July 1, 2020    April 1, 2020    July 1, 2019 
In millions of dollars          June 30, 2021   March 31, 2021   June 30, 2020 
Adjusted net income            8,786           5,330            8,214 
Average adjusted 
 shareholders' equity          105,066         109,135          109,448 
Return on equity (ROE)         8.4%            4.9%             7.5% 
 

The return on average capital employed was 7.2% for the twelve months ended June 30, 2021.

 
                               July 1, 2020    April 1, 2020    July 1, 2019 
In millions of dollars          June 30, 2021   March 31, 2021   June 30, 2020 
Adjusted net operating income  10,252          6,915            10,125 
Average capital employed       142,172         148,777          145,621 
ROACE                          7.2%            4.6%             7.0% 
 
 
(1) Adjustment items shown on page --. (2) Details shown on page -- and in the 
appendix to the financial statements (3) Net cash flow = cash flow - net 
investments (including other transactions with non-controlling interest). 
 

1.6 TotalEnergies SE accounts

 

Net income for TotalEnergies SE, the parent company, was EUR4,568 million in the first half 2021 compared to EUR4,710 in the first half 2020.

 

1.7 2021 Sensitivities*

 
                    Change             Estimated impact    Estimated impact on 
                                       on adjusted net     cash flow from 
                                       operating income    operations 
Dollar              +/- 0,1 $ par EUR  -/+ 0,1 G$          0 G$ 
Average liquids     +/- 10 $/b         +/- 2,7 G$          +/- 3,2 G$ 
price** 
European gas price  +/- 1 $/Mbtu       +/- 0,3 G$          +/- 0,25 G$ 
-- NBP 
Variable cost       +/- 10 $/t         +/- 0,4 G$          +/- 0,5 G$ 
margin, European 
refining (VCM) 
 
 
* Sensitivities are revised once per year upon publication of the previous 
year's fourth quarter results. Sensitivities are estimates based on 
assumptions about TotalEnergies' portfolio in 2021. Actual results could vary 
significantly from estimates based on the application of these sensitivities. 
The impact of the $-EUR sensitivity on adjusted net operating income is 
essentially attributable to Refining & Chemicals. ** In a 50 $/b Brent 
environment. 
 

1.8 Summary and outlook

 

In a context of rebounding global demand for petroleum products, OPEC+ quotas in the first half 2021 contributed to a rapid drawdown of crude oil inventories, which fell below the average of the past five years. The price of oil has remained above $60/b since the beginning of February 2021 and broke through $70/b at the end of June. Recent OPEC+ decisions reinforce its collective discipline to adapt supply step by step to the growth in demand.

 

Given the outlook for OPEC+ quotas in the second half 2021, TotalEnergies anticipates its full-year 2021 hydrocarbon production to be around 2.85 Mboe/d. The start-up and ramp-up of new projects, including Zinia Phase 2 in Angola, North Russkoye in Russia and Iara in Brazil, will contribute to increased production in the second half 2021.

 

TotalEnergies anticipates that the higher oil prices observed in the first half 2021 will have a positive impact on its average realized price of LNG for the coming six months, given the lag effect on price formulas. It is expected to be more than $7.5/Mbtu in the third quarter 2021. In addition, gas markets in Asia and Europe are benefiting from the strong growth in demand linked to the global economic recovery.

 

TotalEnergies maintains discipline on expenses, with net investments expected to be between $12-13 billion in 2021, with half dedicated to future growth. For those growth investments, 50% will be dedicated to renewables and electricity.

 

In an environment of hydrocarbon prices that would remain in the second half of the year at the level of the first half ($65/b for Brent, $8/Mbtu for gas in Europe) and European refining margins of $10-15/t, TotalEnergies expects cash flow generation (DACF) of more than $25 billion in 2021 and a return on capital employed of more than 10%.

 

In this favorable context, the Company confirms its priorities in terms of cash flow allocation: invest in profitable projects to implement TotalEnergies' transformation strategy to a broad energy company, support the dividend through economic cycles, maintain a solid balance sheet and a minimum "A" long-term debt rating by sustainably anchoring the Company's gearing below 20%, and share additional revenues with its shareholders through share buybacks in the event of high prices.

1.9 Other information

1.9.1 Operating information by segment

 

1.9.1.1 Company's production (Exploration & Production + iGRP)

 
Combined liquids and gas production by region 
(kboe/d)                                            1S21   1S20   1S21 vs 1S20 
Europe and Central Asia                             1,018  1,064  -4% 
Africa                                              542    677    -20% 
Middle East and North Africa                        652    661    -1% 
Americas                                            377    343    +10% 
Asia-Pacific                                        216    220    -2% 
Total production                                    2,805  2,966  -5% 
includes equity affiliates                          740    726    +2% 
 
 
Liquids production by region (kb/d)   1S21   1S20   1S21 vs 1S20 
Europe and Central Asia               363    392    -8% 
Africa                                407    534    -24% 
Middle East and North Africa          500    505    -1% 
Americas                              181    153    +19% 
Asia-Pacific                          35     42     -17% 
Total production                      1,486  1,626  -9% 
includes equity affiliates            207    207    -- 
 
 
Gas production by region (Mcf/d)   1S21   1S20   1S21 vs 1S20 
Europe and Central Asia            3,523  3,620  -3% 
Africa                             686    726    -6% 
Middle East and North Africa       845    865    -2% 
Americas                           1,098  1,069  +3% 
Asia-Pacific                       1,056  1,022  +3% 
Total production                   7,208  7,302  -1% 
includes equity affiliates         2,875  2,802  +3% 
 

1.9.1.2 Downstream (Refining & Chemicals and Marketing & Services)

 
Petroleum product sales by region (kb/d)   1S21   1S20   1S21 vs 1S20 
Europe*                                    1,540  1,610  -4% 
Africa                                     665    573    +16% 
Americas                                   785    814    -3% 
Rest of world                              493    439    +12% 
Total consolidated sales                   3,483  3,435  +1% 
includes bulk sales*                       368    432    -15% 
includes trading                           1,658  1,525  +9% 
 
 
Petrochemicals production* (kt)   1S21   1S20   1S21 vs 1S20 
Europe                            2,512  2,547  -1% 
Americas                          1,235  1,301  -5% 
Middle East and Asia              1,459  1,324  +10% 
 
 
* Olefins, polymers 
 

1.9.1.3 Renewables

 
Installed power generation 
gross capacity (GW)(1) (2)    1S21 
                              Solar  Onshore Wind  Offshore Wind  Other  Total 
France                        0.5    0.5           0.0            0.1    1.0 
Rest of Europe                0.1    1.0           0.0            0.1    1.1 
Africa                        0.1    0.0           0.0            0.0    0.1 
Middle East                   0.3    0.0           0.0            0.0    0.3 
North America                 0.8    0.0           0.0            0.0    0.9 
South America                 0.4    0.1           0.0            0.0    0.5 
India                         3.5    0.1           0.0            0.0    3.6 
Asia-Pacific                  0.7    0.0           0.0            0.0    0.7 
Total                         6.4    1.8           0.0            0.1    8.3 
 
 
Power generation gross 
capacity from renewables in 
construction (GW)(1) (2)      1S21 
                              Solar  Onshore Wind  Offshore Wind  Other  Total 
France                        0.3    0.1           0.0            0.1    0.5 
Rest of Europe                0.1    0.1           1.1            0.0    1.3 
Africa                        0.0    0.0           0.0            0.0    0.0 
Middle East                   0.8    0.0           0.0            0.0    0.8 
North America                 0.3    0.0           0.0            0.0    0.3 
South America                 0.0    0.2           0.0            0.0    0.2 
India                         0.9    0.2           0.0            0.0    1.1 
Asia-Pacific                  0.5    0.0           0.6            0.0    1.1 
Total                         2.8    0.6           1.8            0.1    5.4 
 
 
(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first 
quarter 2021. (2) End-of-period data. 
 
 
Power generation gross 
capacity from renewables in 
development (GW)(1) (2)       1S21 
                              Solar  Onshore Wind  Offshore Wind  Other  Total 
France                        3.2    0.8           0.0            0.0    4.0 
Rest of Europe                5.3    0.3           2.3            0.0    7.9 
Africa                        0.4    0.1           0.0            0.2    0.6 
Middle East                   0.1    0.0           0.0            0.0    0.1 
North America                 3.5    0.2           0.0            0.7    4.3 
South America                 0.6    1.0           0.0            0.0    1.7 
India                         6.2    0.1           0.0            0.0    6.3 
Asia-Pacific                  1.1    0.0           2.1            0.0    3.2 
Total                         20.3   2.5           4.4            0.8    28.0 
 
 
(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first 
quarter 2021. (2) End-of-period data. 
 
 
Gross 
renewables 
capacity 
covered by 
PPA at 
06/30/2021 
(GW)          In operation                  In construction                         In development 
                     Onshore                       Onshore  Offshore                       Onshore  Offshore 
              Solar  Wind     Other  Total  Solar  Wind     Wind      Other  Total  Solar  Wind     Wind      Other  Total 
Europe        0.6    1.5      X      2.2    0.3    X        0.8       X      1.4    4.0    0.3      X         X      4.3 
Asia          4.5    X        X      4.6    2.2    0.3      0.6       --     3.1    3.9    X        --        --     4.0 
North 
 America      0.8    X        X      0.8    0.3    X        --        X      0.3    0.3    X        --        X      0.4 
Rest of 
 World        0.5    X        X      0.7    X      X        --        X      X      0.4    X        --        X      0.7 
Total         6.3    1.8      X      8.2    2.8    0.6      1.4       X      5.0    8.6    0.5      X         0.2    9.3 
 
 
PPA average 
price at 
06/30/2021 
($/MWh)      In operation                  In construction                         In development 
                    Onshore                       Onshore  Offshore                       Onshore  Offshore 
             Solar  Wind     Other  Total  Solar  Wind     Wind      Other  Total  Solar  Wind     Wind      Other  Total 
Europe       239    120      X      154    68     X        61        X      64     42     73       X         X      46 
Asia         85     X        X      84     47     56       187       --     77     40     X        --        --     40 
North 
 America     155    X        X      158    26     X        --        X      31     31     X        --        X      49 
Rest of 
 World       82     X        X      82     X      X        --        X      X      97     X        --        X      97 
Total        107    112      X      108    48     66       106       X      70     43     79       X         145    45 
 

1.9.2 Adjustment items to net income (TotalEnergies share)

 
In millions of dollars                                     1S21     1S20 
Special items affecting net income (TotalEnergies share)   (1,930)  (8,655) 
Gain (loss) on asset sales*                                (1,379)  -- 
Restructuring charges                                      (271)    (100) 
Impairments                                                (193)    (8,101) 
Other                                                      (87)     (454) 
After-tax inventory effect: FIFO vs. replacement cost      1,064    (1,508) 
Effect of changes in fair value                            (50)     (79) 
Total adjustments affecting net income                     (916)    (10,242) 
 
 
* Related to the effect of the sale of TotalEnergies' participation in 
Petrocedeño to PDVSA in Venezuela. 
 

1.9.3 Reconciliation of adjusted EBITDA with consolidated financial statements

 

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

 
In millions of dollars                           1S21    1S20     1S21 vs 1S20 
Net income -- TotalEnergies share                5,550   (8,335)  ns 
Less: adjustment items to net income 
 (TotalEnergies share)                           916     10,242   -91% 
Adjusted net income -- TotalEnergies share       6,466   1,907    x3.4 
Adjusted items 
Add: non-controlling interests                   147     (13)     ns 
Add: income taxes                                2,931   490      x6 
Add: depreciation, depletion and impairment of 
 tangible assets and mineral interests           6,285   6,937    -9% 
Add: amortization and impairment of intangible 
 assets                                          197     155      +27% 
Add: financial interest on debt                  967     1,094    -12% 
Less: financial income and expense from cash & 
 cash equivalents                                (156)   13       ns 
Adjusted EBITDA                                  16,837  10,583   +59% 
 

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

 
In millions of dollars                        1S21      1S20      1S21 vs 1S20 
Adjusted items 
Revenues from sales                           80,310    60,155    +34% 
Purchases, net of inventory variation         (51,397)  (37,949)  ns 
Other operating expenses                      (13,576)  (12,985)  ns 
Exploration costs                             (290)     (254)     ns 
Other income                                  554       820       -32% 
Other expense, excluding amortization and 
 impairment of intangible assets              (137)     (139)     ns 
Other financial income                        374       607       -38% 
Other financial expense                       (261)     (341)     ns 
Net income (loss) from equity affiliates      1,260     669       +88% 
Adjusted EBITDA                               16,837    10,583    +59% 
Adjusted items 
Less: depreciation, depletion and impairment 
 of tangible assets and mineral interests     (6,285)   (6,937)   ns 
Less: amortization of intangible assets       (197)     (155)     ns 
Less: financial interest on debt              (967)     (1,094)   ns 
Add: financial income and expense from cash 
 & cash equivalents                           156       (13)      ns 
Less: income taxes                            (2,931)   (490)     ns 
Less: non-controlling interests               (147)     13        ns 
Add: adjustment -- TotalEnergies share        (916)     (10,242)  ns 
Net income -- TotalEnergies share             5,550     (8,335)   ns 
 

1.9.4 Investments -- Divestments

 
In millions of dollars                              1S21   1S20   1S21 vs 1S20 
Organic investments (a)                             5,181  4,724  +10% 
Capitalized exploration                             488    297    +64% 
Increase in non-current loans                       672    1,012  -34% 
Repayment of non-current loans, excluding organic 
 loan repayment from equity affiliates              (185)  (175)  ns 
Change in debt from renewable projects 
 (TotalEnergies share)                              (171)  (152)  ns 
Acquisitions (b)                                    2,870  2,501  +15% 
Asset sales (c)                                     884    678    +30% 
Change in debt from renewable projects (partner 
 share)                                             105    83     +27% 
Other transactions with non-controlling interests 
(d)                                                 --     --     ns 
Net investments (a + b - c - d)                     7,167  6,547  +9% 
Organic loan repayment from equity affiliates (e)   (108)  (34)   ns 
Change in debt from renewable projects financing* 
 (f)                                                276    235    +17% 
Capex linked to capitalized leasing contracts (g)   47     46     +2% 
Cash flow used in investing activities (a + b - c 
 + e + f - g)                                       7,288  6,702  +9% 
 
 
* Change in debt from renewable projects (TotalEnergies share and partner 
share). 
 

1.9.5 Cash-flow

 
In millions of dollars                           1S21    1S20     1S21 vs 1S20 
Operating cash flow before working capital 
 changes w/o financials charges (DACF)           12,511  8,420    +49% 
Financial charges                                (793)   (1,011)  ns 
Operating cash flow before working capital 
 changes (a)*                                    11,718  7,409    +58% 
(Increase) decrease in working capital**         259     (698)    ns 
Inventory effect                                 1,346   (1,838)  ns 
Capital gain from renewable projects sale        (66)    (61)     ns 
Organic loan repayment from equity affiliates    (108)   (34)     ns 
Cash flow from operations                        13,149  4,778    x2.8 
Organic investments (b)                          5,181   4,724    +10% 
Free cash flow after organic investments, w/o 
 net asset sales (a - b)                         6,537   2,685    x2.4 
Net investments (c)                              7,167   6,547    +9% 
Net cash flow (a - c)                            4,551   862      x5.3 
 
 
* Operating cash flow before working capital changes, is defined as cash flow 
from operating activities before changes in working capital at replacement 
cost, excluding the mark-to-market effect of iGRP's contracts and including 
capital gain from renewable projects sale (effective first quarter 2020). 
Historical data have been restated to cancel the impact of fair valuation of 
iGRP sector's contracts. ** Changes in working capital are presented excluding 
the mark-to-market effect of iGRP's contracts. 
 

1.9.6 Gearing ratio

 
In millions of dollars                      30/06/2021  31/03/2021  30/06/2020 
Current borrowings*                         15,796      19,279      14,894 
Other current financial liabilities         322         351         411 
Current financial assets*                   (4,326)     (4,492)     (6,383) 
Net financial assets classified as held 
for sale                                    --          --          -- 
Non-current financial debt*                 44,687      44,842      54,214 
Non-current financial assets*               (2,726)     (2,669)     (1,415) 
Cash and cash equivalents                   (28,643)    (30,285)    (29,727) 
Net debt (a)                                25,109      27,026      31,994 
Shareholders' equity -- TotalEnergies 
 share                                      108,096     109,295     101,205 
Non-controlling interests                   2,480       2,390       2,334 
Shareholders' equity (b)                    110,576     111,685     103,539 
Net-debt-to-capital ratio = a / (a + b)     18.5%       19.5%       23.6% 
Leases (c)                                  7,702       7,747       7,383 
Net-debt-to-capital ratio including leases 
 (a + c) / (a + b + c)                      22.9%       23.7%       27.6% 
 
 
* Excludes leases receivables and leases debts. 
 

1.9.7 Return on average capital employed

 

1.9.7.1 Twelve months ended June 30, 2021

 
               Integrated 
               Gas,          Exploration 
In millions    Renewables &  &             Refining &    Marketing & 
of dollars     Power         Production    Chemicals     Services      Company 
Adjusted net 
 operating 
 income        2,415         6,057         836           1,494         10,252 
Capital 
 employed at 
 06/30/2020*   43,527        79,096        12,843        8,366         142,625 
Capital 
 employed at 
 06/30/2021*   49,831        76,013        9,285         8,439         141,720 
ROACE          5.2%          7.8%          7.6%          17.8%         7.2% 
 

1.9.7.2

 

Twelve months ended March 31, 2021

 
               Integrated 
               Gas,          Exploration 
In millions    Renewables &  &             Refining &    Marketing & 
of dollars     Power         Production    Chemicals     Services      Company 
Adjusted net 
 operating 
 income        1,850         3,635         900           1,206         6,915 
Capital 
 employed at 
 03/31/2020*   44,236        85,622        12,878        8,764         152,374 
Capital 
 employed at 
 03/31/2021*   48,423        78,170        10,403        8,198         145,180 
ROACE          4.0%          4.4%          7.7%          14.2%         4.6% 
 
 
* At replacement cost (excluding after-tax inventory effect). 
 

1.10 Principal risks and uncertainties for the remaining six months of 2021

 

The Company and its businesses are subject to various risks relating to changing political, economic, monetary, legal, environmental, social, industrial, competitive, operating and financial conditions. A description of such risk factors is provided in TotalEnergies' 2021 Universal Registration Document filed with the Autorité des marchés financiers (French Financial Markets Authority) on March 31, 2021. These conditions are subject to change not only in the six months remaining in the current financial year, but also in the years to come.

 

Additionally, a description of certain risks is included in the Notes to the condensed Consolidated Financial Statements for the first half of 2021 (page of this half-year financial report).

1.11 Major related parties' transactions

 

Information concerning the major related parties' transactions for the first six months of 2021 is provided in Note 6 to the condensed Consolidated Financial Statements for the first half of 2021 (page of this half-year financial report).

Disclaimer:

 

The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities. The terms "TotalEnergies", "TotalEnergies company" and "Company" used in this document are generic and used for convenience to designate TotalEnergies SE and the entities included in its scope of consolidation. Likewise, the words "we", "us" and "our" may also be used to refer to these entities or their employees.

 

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.

 

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

 

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

 

These adjustment items include:

(i) Special items

 

Due to their unusual nature or particular significance, certain transactions qualified as "special items" are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.

(ii) Inventory valuation effect

 

The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments' performance and facilitate the comparability of the segments' performance with those of its competitors.

 

In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differentials between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.

(iii) Effect of changes in fair value

 

The effect of changes in fair value presented as an adjustment item reflects, for some transactions, differences between internal measures of performance used by TotalEnergies' management and the accounting for these transactions under IFRS.

 

IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.

 

TotalEnergies, in its trading activities, enters into storage contracts, whose future effects are recorded at fair value in TotalEnergies' internal economic performance. IFRS precludes recognition of this fair value effect.

 

Furthermore, TotalEnergies enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.

 

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

 

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

 

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

 

02 CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

2.1 Statutory Auditors' Review Report on the half-yearly Financial Information

 

This is a free translation into English of the statutory auditors' review report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in TotalEnergies' half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

 

For the period from January 1 to June 30, 2021

 

To the Shareholders,

 

In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

   -- the review of the accompanying condensed half-yearly consolidated 
      financial statements of TotalEnergies SE for the period from January 1 to 
      June 30, 2021, 
 
   -- the verification of the information presented in the half-yearly 
      management report. 
 

Due to the global crisis related to the Covid-19 pandemic, the condensed half-yearly consolidated financial statements have been prepared and reviewed under specific conditions. Indeed, this crisis and the exceptional measures taken in the context of the state of sanitary emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties on their future prospects. Those measures, such as travel restrictions and remote working, have also had an impact on the companies' internal organization and the performance of our review procedures.

 

These condensed half-yearly consolidated financial statements were prepared under the Chairman and Chief Executive Officer's responsibility on July 28, 2021, and are reviewed by your Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I -- Conclusion on the financial statements

 

We conducted our review in accordance with professional standards applicable in France.

 

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs as adopted by the European Union applicable to interim financial information.

II -- Specific verification

 

We have also verified the information presented in the half-yearly management report on the condensed

 

half-yearly consolidated financial statements subject to our review. We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.

 

Paris La Défense, July 28, 2021

 

The Statutory Auditors French original signed by

 
KPMG Audit -- A division de KPMG S.A.   ERNST & YOUNG Audit 
Jacques-François     Eric Jacquet  Laurent Vitse  Céline 
Lethu Partner              Partner       Partner       Eydieu-Boutté 
                                                       Partner 
 

2.2 Consolidated statement of income -- half-yearly

TotalEnergies

 

(unaudited)

 
                                                            1st half  1st half 
(M$)(a)                                                      2021      2020 
Sales                                                       90,786    69,600 
Excise taxes                                                (10,520)  (9,461) 
Revenues from sales                                         80,266    60,139 
 
Purchases, net of inventory variation                       (50,117)  (40,093) 
Other operating expenses                                    (13,597)  (13,265) 
Exploration costs                                           (290)     (254) 
Depreciation, depletion and impairment of tangible assets 
 and mineral interests                                      (6,446)   (15,228) 
Other income                                                581       942 
Other expense                                               (957)     (528) 
 
Financial interest on debt                                  (967)     (1,099) 
Financial income and expense from cash & cash equivalents   172       (105) 
Cost of net debt                                            (795)     (1,204) 
 
Other financial income                                      374       607 
Other financial expense                                     (261)     (342) 
 
Net income (loss) from equity affiliates                    201       285 
 
Income taxes                                                (3,248)   521 
Consolidated net income                                     5,711     (8,420) 
TotalEnergies share                                         5,550     (8,335) 
Non-controlling interests                                   161       (85) 
Earnings per share ($)                                      2.04      (3.29) 
Fully-diluted earnings per share ($)                        2.03      (3.29) 
 
 
(a) Except for per share amounts. 
 

2.3 Consolidated statement of comprehensive income -- half-yearly

TotalEnergies

 

(unaudited)

 
                                                            1st half  1st half 
(M$)                                                         2021      2020 
Consolidated net income                                     5,711     (8,420) 
Other comprehensive income 
Actuarial gains and losses                                  449       (223) 
Change in fair value of investments in equity instruments   68        (74) 
Tax effect                                                  (154)     86 
Currency translation adjustment generated by the parent 
 company                                                    (2,934)   (196) 
Items not potentially reclassifiable to profit and loss     (2,571)   (407) 
Currency translation adjustment                             1,777     (940) 
Cash flow hedge                                             80        (1,293) 
Variation of foreign currency basis spread                  (4)       70 
Share of other comprehensive income of equity affiliates, 
 net amount                                                 451       (927) 
Other                                                       --        3 
Tax effect                                                  (57)      367 
Items potentially reclassifiable to profit and loss         2,247     (2,720) 
Total other comprehensive income (net amount)               (324)     (3,127) 
Comprehensive income                                        5,387     (11,547) 
TotalEnergies share                                         5,212     (11,424) 
Non-controlling interests                                   175       (123) 
 

2.4 Consolidated statement of income -- quarterly

TotalEnergies

 

(unaudited)

 
                                         2nd quarter  1st quarter  2nd quarter 
(M$)(a)                                   2021         2021         2020 
Sales                                    47,049       43,737       25,730 
Excise taxes                             (5,416)      (5,104)      (4,168) 
Revenues from sales                      41,633       38,633       21,562 
 
Purchases, net of inventory variation    (26,719)     (23,398)     (12,025) 
Other operating expenses                 (6,717)      (6,880)      (6,321) 
Exploration costs                        (123)        (167)        (114) 
Depreciation, depletion and impairment 
 of tangible assets and mineral 
 interests                               (3,121)      (3,325)      (11,593) 
Other income                             223          358          362 
Other expense                            (298)        (659)        (108) 
 
Financial interest on debt               (501)        (466)        (530) 
Financial income and expense from cash 
 & cash equivalents                      77           95           50 
Cost of net debt                         (424)        (371)        (480) 
 
Other financial income                   265          109          419 
Other financial expense                  (131)        (130)        (161) 
 
Net income (loss) from equity 
 affiliates                              (680)        881          (447) 
 
Income taxes                             (1,609)      (1,639)      484 
Consolidated net income                  2,299        3,412        (8,422) 
TotalEnergies share                      2,206        3,344        (8,369) 
Non-controlling interests                93           68           (53) 
Earnings per share ($)                   0.80         1.24         (3.27) 
Fully-diluted earnings per share ($)     0.80         1.23         (3.27) 
 
 
(a) Except for per share amounts. 
 

2.5 Consolidated statement of comprehensive income -- quarterly

TotalEnergies

 

(unaudited)

 
                                         2nd quarter  1st quarter  2nd quarter 
(M$)                                      2021         2021         2020 
Consolidated net income                  2,299        3,412        (8,422) 
Other comprehensive income 
Actuarial gains and losses               449          --           (356) 
Change in fair value of investments in 
 equity instruments                      56           12           90 
Tax effect                               (142)        (12)         101 
Currency translation adjustment 
 generated by the parent company         1,239        (4,173)      1,780 
Items not potentially reclassifiable to 
 profit and loss                         1,602        (4,173)      1,615 
Currency translation adjustment          (746)        2,523        (919) 
Cash flow hedge                          (424)        504          231 
Variation of foreign currency basis 
 spread                                  (4)          --           14 
Share of other comprehensive income of 
 equity affiliates, net amount           (18)         469          296 
Other                                    (1)          1            -- 
Tax effect                               100          (157)        (78) 
Items potentially reclassifiable to 
 profit and loss                         (1,093)      3,340        (456) 
Total other comprehensive income (net 
 amount)                                 509          (833)        1,159 
Comprehensive income                     2,808        2,579        (7,263) 
TotalEnergies share                      2,670        2,542        (7,253) 
Non-controlling interests                138          37           (10) 
 

2.6 Consolidated balance sheet

 

TotalEnergies

 
                    June 30, 2021  March 31, 2021  December 31,  June 30, 2020 
(M$)                 (unaudited)    (unaudited)     2020          (unaudited) 
ASSETS Non-current 
assets 
Intangible assets, 
 net                33,359         33,239          33,528        33,114 
Property, plant 
 and equipment, 
 net                106,791        106,859         108,335       104,925 
Equity affiliates: 
 investments and 
 loans              29,712         30,727          27,976        27,470 
Other investments   2,247          2,062           2,007         1,627 
Non-current 
 financial assets   3,778          3,700           4,781         2,431 
Deferred income 
 taxes              6,578          6,619           7,016         7,257 
Other non-current 
 assets             2,800          2,638           2,810         2,539 
Total non-current 
 assets             185,265        185,844         186,453       179,363 
Current assets 
 Inventories, net   19,162         16,192          14,730        12,688 
Accounts 
 receivable, net    17,192         17,532          14,068        13,481 
Other current 
 assets             17,585         14,304          13,428        17,155 
Current financial 
 assets             4,404          4,605           4,630         6,570 
Cash and cash 
 equivalents        28,643         30,285          31,268        29,727 
Assets classified 
 as held for sale   456            396             1,555         421 
Total current 
 assets             87,442         83,314          79,679        80,042 
Total assets        272,707        269,158         266,132       259,405 
 
LIABILITIES & 
SHAREHOLDERS' 
EQUITY 
Shareholders' 
equity 
Common shares       8,224          8,193           8,267         8,159 
Paid-in surplus 
 and retained 
 earnings           110,967        112,676         107,078       107,934 
Currency 
 translation 
 adjustment         (11,087)       (11,566)        (10,256)      (13,265) 
Treasury shares     (8)            (8)             (1,387)       (1,623) 
Total 
 shareholders' 
 equity -- 
 TotalEnergies 
 share              108,096        109,295         103,702       101,205 
Non-controlling 
 interests          2,480          2,390           2,383         2,334 
Total 
 shareholders' 
 equity             110,576        111,685         106,085       103,539 
Non-current 
 liabilities 
 Deferred income 
 taxes              10,596         10,387          10,326        10,346 
Employee benefits   3,305          3,644           3,917         3,612 
Provisions and 
 other non-current 
 liabilities        20,716         20,893          20,925        19,487 
Non-current 
 financial debt     52,331         52,541          60,203        61,540 
Total non-current 
 liabilities        86,948         87,465          95,371        94,985 
Current 
 liabilities 
 Accounts payable   29,752         26,959          23,574        19,198 
Other creditors 
 and accrued 
 liabilities        27,836         22,066          22,465        24,790 
Current borrowings  16,983         20,471          17,099        16,154 
Other current 
 financial 
 liabilities        322            351             203           411 
Liabilities 
 directly 
 associated with 
 the assets 
 classified as 
 held for sale      290            161             1,335         328 
Total current 
 liabilities        75,183         70,008          64,676        60,881 
Total liabilities 
 & shareholders' 
 equity             272,707        269,158         266,132       259,405 
 

2.7 Consolidated statement of cash flow -- half-yearly

TotalEnergies

 

(unaudited)

 
                                                            1st half  1st half 
(M$)                                                         2021      2020 
CASH FLOW FROM OPERATING ACTIVITIES 
 Consolidated net income                                    5,711     (8,420) 
Depreciation, depletion, amortization and impairment        6,760     15,431 
Non-current liabilities, valuation allowances and deferred 
 taxes                                                      331       (1,457) 
(Gains) losses on disposals of assets                       (370)     (340) 
Undistributed affiliates' equity earnings                   682       391 
(Increase) decrease in working capital                      (150)     (453) 
Other changes, net                                          185       (374) 
Cash flow from operating activities                         13,149    4,778 
 
CASH FLOW USED IN INVESTING ACTIVITIES Intangible assets 
 and property, plant and equipment additions                (5,085)   (4,773) 
Acquisitions of subsidiaries, net of cash acquired          (170)     (188) 
Investments in equity affiliates and other securities       (2,433)   (1,670) 
Increase in non-current loans                               (680)     (1,028) 
Total expenditures                                          (8,368)   (7,659) 
Proceeds from disposals of intangible assets and property, 
 plant and equipment                                        271       263 
Proceeds from disposals of subsidiaries, net of cash sold   229       154 
Proceeds from disposals of non-current investments          279       315 
Repayment of non-current loans                              301       225 
Total divestments                                           1,080     957 
Cash flow used in investing activities                      (7,288)   (6,702) 
 
CASH FLOW USED IN FINANCING ACTIVITIES 
 Issuance (repayment) of shares: 
Parent company shareholders                                 381       374 
Treasury shares                                             (165)     (611) 
Dividends paid: 
Parent company shareholders                                 (4,184)   (3,810) 
Non-controlling interests                                   (63)      (76) 
Net issuance (repayment) of perpetual subordinated notes    3,248     -- 
Payments on perpetual subordinated notes                    (234)     (231) 
Other transactions with non-controlling interests           (55)      (70) 
Net issuance (repayment) of non-current debt                (839)     15,472 
Increase (decrease) in current borrowings                   (6,031)   (3,819) 
Increase (decrease) in current financial assets and 
 liabilities                                                (215)     (2,546) 
Cash flow from (used in) financing activities               (8,157)   4,683 
Net increase (decrease) in cash and cash equivalents        (2,296)   2,759 
Effect of exchange rates                                    (329)     (384) 
Cash and cash equivalents at the beginning of the period    31,268    27,352 
Cash and cash equivalents at the end of the period          28,643    29,727 
 

2.8 Consolidated statement of cash flow -- quarterly

TotalEnergies

 

(unaudited)

 
                                         2nd quarter  1st quarter  2nd quarter 
(M$)                                      2021         2021         2020 
CASH FLOW FROM OPERATING ACTIVITIES 
 Consolidated net income                 2,299        3,412        (8,422) 
Depreciation, depletion, amortization 
 and impairment                          3,287        3,473        11,701 
Non-current liabilities, valuation 
 allowances and deferred taxes           210          121          (796) 
(Gains) losses on disposals of assets    (85)         (285)        (131) 
Undistributed affiliates' equity 
 earnings                                1,255        (573)        978 
(Increase) decrease in working capital   669          (819)        431 
Other changes, net                       (84)         269          (282) 
Cash flow from operating activities      7,551        5,598        3,479 
 
CASH FLOW USED IN INVESTING ACTIVITIES 
Intangible assets and property, plant 
 and equipment additions                 (2,675)      (2,410)      (2,409) 
Acquisitions of subsidiaries, net of 
cash acquired                            (170)        --           -- 
Investments in equity affiliates and 
 other securities                        (307)        (2,126)      (136) 
Increase in non-current loans            (380)        (300)        (733) 
Total expenditures                       (3,532)      (4,836)      (3,278) 
Proceeds from disposals of intangible 
 assets and property, plant and 
 equipment                               45           226          219 
Proceeds from disposals of 
 subsidiaries, net of cash sold          --           229          12 
Proceeds from disposals of non-current 
 investments                             216          63           20 
Repayment of non-current loans           167          134          99 
Total divestments                        428          652          350 
Cash flow used in investing activities   (3,104)      (4,184)      (2,928) 
 
CASH FLOW USED IN FINANCING ACTIVITIES 
Issuance (repayment) of shares: 
Parent company shareholders              381          --           374 
Treasury shares                          --           (165)        (2) 
Dividends paid: 
Parent company shareholders              (2,094)      (2,090)      (1,928) 
Non-controlling interests                (53)         (10)         (76) 
Net issuance (repayment) of perpetual 
subordinated notes                       --           3,248        -- 
Payments on perpetual subordinated 
 notes                                   (147)        (87)         (134) 
Other transactions with non-controlling 
 interests                               --           (55)         (22) 
Net issuance (repayment) of non-current 
 debt                                    51           (890)        15,430 
Increase (decrease) in current 
 borrowings                              (4,369)      (1,662)      (6,604) 
Increase (decrease) in current 
 financial assets and liabilities        (67)         (148)        449 
Cash flow from (used in) financing 
 activities                              (6,298)      (1,859)      7,487 
Net increase (decrease) in cash and 
 cash equivalents                        (1,851)      (445)        8,038 
Effect of exchange rates                 209          (538)        55 
Cash and cash equivalents at the 
 beginning of the period                 30,285       31,268       21,634 
Cash and cash equivalents at the end of 
 the period                              28,643       30,285       29,727 
 

2.9 Consolidated statement of changes in shareholders' equity

TotalEnergies

 

(unaudited)

 
                                         Paid-in 
                                         surplus                                       Shareholders' 
                                         and       Currency                            equity --                       Total 
                                         retained  translation                         TotalEnergies  Non-controlling  shareholders' 
(M$)              Common shares issued   earnings  adjustment   Treasury shares        Share          interests        equity 
                  Number         Amount                         Number        Amount 
As of January 1, 
 2020             2,601,881,075  8,123   121,170   (11,503)     (15,474,234)  (1,012)  116,778        2,527            119,305 
Net income of 
 the first half 
 2020             --             --      (8,335)   --           --            --       (8,335)        (85)             (8,420) 
Other 
 comprehensive 
 income           --             --      (1,327)   (1,762)      --            --       (3,089)        (38)             (3,127) 
Comprehensive 
 Income           --             --      (9,662)   (1,762)      --            --       (11,424)       (123)            (11,547) 
Dividend          --             --      (3,799)   --           --            --       (3,799)        (76)             (3,875) 
Issuance of 
 common shares    13,179,262     36      338       --           --            --       374            --               374 
Purchase of 
 treasury 
 shares           --             --      --        --           (13,236,044)  (611)    (611)          --               (611) 
Sale of treasury 
shares(a)         --             --      --        --           3,680         --       --             --               -- 
Share-based 
 payments         --             --      96        --           --            --       96             --               96 
Share 
cancellation      --             --      --        --           --            --       --             --               -- 
Net issuance 
(repayment) of 
perpetual 
subordinated 
notes             --             --      --        --           --            --       --             --               -- 
Payments on 
 perpetual 
 subordinated 
 notes            --             --      (143)     --           --            --       (143)          --               (143) 
Other operations 
 with 
 non-controlling 
 interests        --             --      (63)      --           --            --       (63)           (7)              (70) 
Other items       --             --      (3)       --           --            --       (3)            13               10 
As of June 30, 
 2020             2,615,060,337  8,159   107,934   (13,265)     (28,706,598)  (1,623)  101,205        2,334            103,539 
Net income of 
 the second half 
 2020             --             --      1,093     --           --            --       1,093          (9)              1,084 
Other 
 comprehensive 
 income           --             --      1,006     3,013        --            --       4,019          338              4,357 
Comprehensive 
 Income           --             --      2,099     3,013        --            --       5,112          329              5,441 
Dividend          --             --      (4,100)   --           --            --       (4,100)        (158)            (4,258) 
Issuance of 
 common shares    38,063,688     108     1,132     --           --            --       1,240          --               1,240 
Purchase of 
treasury shares   --             --      --        --           --            --       --             --               -- 
Sale of treasury 
 shares(a)        --             --      (236)     --           4,313,895     236      --             --               -- 
Share-based 
 payments         --             --      92        --           --            --       92             --               92 
Share 
cancellation      --             --      --        --           --            --       --             --               -- 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes            --             --      331       --           --            --       331            --               331 
Payments on 
 perpetual 
 subordinated 
 notes            --             --      (165)     --           --            --       (165)          --               (165) 
Other operations 
 with 
 non-controlling 
 interests        --             --      2         (4)          --            --       (2)            (110)            (112) 
Other items       --             --      (11)      --           --            --       (11)           (12)             (23) 
As of December 
 31, 2020         2,653,124,025  8,267   107,078   (10,256)     (24,392,703)  (1,387)  103,702        2,383            106,085 
Net income of 
 the first half 
 2021             --             --      5,550     --           --            --       5,550          161              5,711 
Other 
 comprehensive 
 income           --             --      485       (823)        --            --       (338)          14               (324) 
Comprehensive 
 Income           --             --      6,035     (823)        --            --       5,212          175              5,387 
Dividend          --             --      (4,189)   --           --            --       (4,189)        (63)             (4,252) 
Issuance of 
 common shares    10,589,713     31      350       --           --            --       381            --               381 
Purchase of 
 treasury 
 shares           --             --      --        --           (3,636,351)   (165)    (165)          --               (165) 
Sale of treasury 
 shares(a)        --             --      (216)     --           4,570,220     216      --             --               -- 
Share-based 
 payments         --             --      61        --           --            --       61             --               61 
Share 
 cancellation     (23,284,409)   (74)    (1,254)   --           23,284,409    1,328    --             --               -- 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes            --             --      3,254     --           --            --       3,254          --               3,254 
Payments on 
 perpetual 
 subordinated 
 notes            --             --      (184)     --           --            --       (184)          --               (184) 
Other operations 
 with 
 non-controlling 
 interests        --             --      26        (6)          --            --       20             (20)             -- 
Other items       --             --      6         (2)          --            --       4              5                9 
As of June 30, 
 2021             2,640,429,329  8,224   110,967   (11,087)     (174,425)     (8)      108,096        2,480            110,576 
 
 
(a) Treasury shares related to the performance share grants. 
 

2.10 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST SIX MONTHS 2021 (UNAUDITED)

1) Accounting policies

 

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).

 

The interim consolidated financial statements of TotalEnergies SE and its subsidiaries (the Company) as of June 30, 2021, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting".

 

The accounting principles applied for the consolidated financial statements at June 30, 2021, are consistent with those used for the financial statements at December 31, 2020. Since January 1, 2020, the Company has early adopted the amendments to IFRS 7 and IFRS 9 relating to the interest rate benchmark reform phase II. In particular, these amendments allow to maintain the hedge accounting qualification of interest rate derivatives.

 

The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2021 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.

 

These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.

 

The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2020.

 

Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.

 

Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management of the Company applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.

2) Changes in the Company structure

2.1) Main acquisitions and divestments

 

Integrated Gas, Renewables & Power

   -- In January 2021, TotalEnergies finalized the acquisition of a 20% 
      minority interest in Adani Green Energy Limited (AGEL) from Adani Group. 
      Adani Green Energy Limited (AGEL), a part of the Adani Group, has 14.6 GW 
      of operating, under-construction and awarded renewable power projects 
      catering to investment-grade counterparties. 
 

Refining-Chemicals

   -- In February 2021, TotalEnergies finalized the sale of Lindsey refinery 
      and its associated logistic assets, as well as all the related rights and 
      obligations, to the Prax Group. 

2.2) Divestment projects

 

Exploration-Production

   -- TotalEnergies has initiated the sale process of its 30.323% interest in 
      the share capital of Petrocedeño in Venezuela. As mentioned in Note 
      8 Subsequent Events, this process led to the execution on July 9, 2021 of 
      a Share Purchase Agreement with PDVSA. 
 

As of June 30, 2021, the assets have been classified as "assets classified as held for sale" for a null value. These assets are the shares of Petrocedeño, as consolidated under the equity method and recorded at their sale price; this transaction triggering a loss of $1.38 billion in the financial statements of TotalEnergies.

   -- On July 30, 2020, TotalEnergies announced that its 58% owned affiliate 
      Total Gabon has signed an agreement with Perenco to divest its interests 
      in seven mature non-operated offshore fields, along with its interests 
      and operatorship in the Cap Lopez oil terminal. The transaction remains 
      subject to approval by the Gabonese authorities. 
 

As of June 30, 2021, the assets and liabilities have been respectively classified in the consolidated balance sheet as "assets classified as held for sale" for an amount of $398 million and "liabilities classified as held for sale" for an amount of $169 million. These assets mainly include tangible assets.

3) Business segment information

Description of the business segments

 

Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TotalEnergies and which is reviewed by the main operational decision-making body of the Company, namely the Executive Committee.

 

The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.

 

Sales prices between business segments approximate market prices.

 

The organization of the Company's activities is structured around the four followings segments:

   -- an Exploration & Production segment; 
 
   -- an Integrated Gas, Renewables & Power segment comprising integrated gas 
      (including LNG) and low carbon electricity businesses. It includes the 
      upstream and midstream LNG activity; 
 
   -- a Refining & Chemicals segment constituting a major industrial hub 
      comprising the activities of refining, petrochemicals and specialty 
      chemicals. This segment also includes the activities of oil Supply, 
      Trading and marine Shipping; 
 
   -- a Marketing & Services segment including the global activities of supply 
      and marketing in the field of petroleum products. 
 

In addition the Corporate segment includes holdings operating and financial activities.

Adjustment items

 

Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.

 

Adjustment items include:

   1. Special items Due to their unusual nature or particular significance, 
      certain transactions qualified as "special items" are excluded from the 
      business segment figures. In general, special items relate to 
      transactions that are significant, infrequent or unusual. However, in 
      certain instances, transactions such as restructuring costs or assets 
      disposals, which are not considered to be representative of the normal 
      course of business, may be qualified as special items although they may 
      have occurred within prior years or are likely to occur again within the 
      coming years. 
 
   2. The inventory valuation effect The adjusted results of the Refining & 
      Chemicals and Marketing & Services segments are presented according to 
      the replacement cost method. This method is used to assess the segments' 
      performance and facilitate the comparability of the segments' performance 
      with those of its competitors. In the replacement cost method, which 
      approximates the LIFO (Last-In, First-Out) method, the variation of 
      inventory values in the statement of income is, depending on the nature 
      of the inventory, determined using either the month-end prices 
      differential between one period and another or the average prices of the 
      period rather than the historical value. The inventory valuation effect 
      is the difference between the results according to the FIFO (First-In, 
      First-Out) and the replacement cost methods. 
 
   3. Effect of changes in fair value The effect of changes in fair value 
      presented as adjustment items reflects for certain transactions 
      differences between the internal measure of performance used by 
      TotalEnergies' management and the accounting for these transactions under 
      IFRS. IFRS requires that trading inventories be recorded at their fair 
      value using period end spot prices. In order to best reflect the 
      management of economic exposure through derivative transactions, internal 
      indicators used to measure performance include valuations of trading 
      inventories based on forward prices. TotalEnergies, in its trading 
      activities, enters into storage contracts, which future effects are 
      recorded at fair value in the Company's internal economic performance. 
      IFRS precludes recognition of this fair value effect. Furthermore, 
      TotalEnergies enters into derivative instruments to risk manage certain 
      operational contracts or assets. Under IFRS, these derivatives are 
      recorded at fair value while the underlying operational transactions are 
      recorded as they occur. Internal indicators defer the fair value on 
      derivatives to match with the transaction occurrence. 
 

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

 

3.1) Information by business segment

 
                                  Integrated 
                    Exploration   Gas,         Refining   Marketing 
1st half 2021        &            Renewables   &           & 
 (M$)                Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales      3,257         10,588       40,054     36,880      7          --            90,786 
Intersegment sales  14,433        1,555        11,890     186         68         (28,132)      -- 
Excise taxes        --            --           (630)      (9,890)     --         --            (10,520) 
Revenues from 
 sales              17,690        12,143       51,314     27,176      75         (28,132)      80,266 
Operating expenses  (7,352)       (10,321)     (48,579)   (25,510)    (374)      28,132        (64,004) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests          (4,317)       (762)        (787)      (526)       (54)       --            (6,446) 
Operating income    6,021         1,060        1,948      1,140       (353)      --            9,816 
Net income (loss) 
 from equity 
 affiliates and 
 other items        (973)         682          211        23          (5)        --            (62) 
Tax on net 
 operating income   (2,375)       (157)        (561)      (352)       54         --            (3,391) 
Net operating 
 income             2,673         1,585        1,598      811         (304)      --            6,363 
Net cost of net 
 debt                                                                                          (652) 
Non-controlling 
 interests                                                                                     (161) 
Net income -- 
 TotalEnergies 
 share                                                                                         5,550 
 
                                  Integrated 
1st half 2021       Exploration   Gas,         Refining   Marketing 
(adjustments)(a)     &            Renewables   &           & 
(M$)                 Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales      --            (44)         --         --          --         --            (44) 
Intersegment sales  --            --           --         --          --         --            -- 
Excise taxes        --            --           --         --          --         --            -- 
Revenues from 
 sales              --            (44)         --         --          --         --            (44) 
Operating expenses  (23)          (62)         1,131      213         --         --            1,259 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests          --            (148)        (13)       --          --         --            (161) 
Operating 
 income(b)          (23)          (254)        1,118      213         --         --            1,054 
Net income (loss) 
 from equity 
 affiliates and 
 other items        (1,482)       (96)         28         (43)        (62)       --            (1,655) 
Tax on net 
 operating income   (10)          59           (302)      (60)        2          --            (311) 
Net operating 
 income(b)          (1,515)       (291)        844        110         (60)       --            (912) 
Net cost of net 
 debt                                                                                          10 
Non-controlling 
 interests                                                                                     (14) 
Net income -- 
 TotalEnergies 
 share                                                                                         (916) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. (b) Of which inventory valuation effect 
- On operating income                   --     --     1,140       206     -- 
- On net operating income               --     --     937         148     -- 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
1st half 2021      &            Renewables   &           & 
(adjusted) (M$)    Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    3,257         10,632       40,054     36,880      7          --            90,830 
Intersegment 
 sales            14,433        1,555        11,890     186         68         (28,132)      -- 
Excise taxes      --            --           (630)      (9,890)     --         --            (10,520) 
Revenues from 
 sales            17,690        12,187       51,314     27,176      75         (28,132)      80,310 
Operating 
 expenses         (7,329)       (10,259)     (49,710)   (25,723)    (374)      28,132        (65,263) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (4,317)       (614)        (774)      (526)       (54)       --            (6,285) 
Adjusted 
 operating 
 income           6,044         1,314        830        927         (353)      --            8,762 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      509           778          183        66          57         --            1,593 
Tax on net 
 operating 
 income           (2,365)       (216)        (259)      (292)       52         --            (3,080) 
Adjusted net 
 operating 
 income           4,188         1,876        754        701         (244)      --            7,275 
Net cost of net 
 debt                                                                                        (662) 
Non-controlling 
 interests                                                                                   (147) 
Adjusted net 
 income -- 
 TotalEnergies 
 share                                                                                       6,466 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
1st half 2021      &            Renewables   &           & 
 (M$)              Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
Total 
 expenditures     3,195         4,187        578        360         48                       8,368 
Total 
 divestments      374           452          129        107         18                       1,080 
Cash flow from 
 operating 
 activities       8,571         1,347        3,228      1,102       (1,099)                  13,149 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
1st half 2020      &            Renewables   &           & 
 (M$)              Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    2,574         8,403        27,956     30,661      6          --            69,600 
Intersegment 
 sales            8,661         895          9,051      196         59         (18,862)      -- 
Excise taxes      --            --           (1,119)    (8,342)     --         --            (9,461) 
Revenues from 
 sales            11,235        9,298        35,888     22,515      65         (18,862)      60,139 
Operating 
 expenses         (6,048)       (8,398)      (35,736)   (21,730)    (562)      18,862        (53,612) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (12,311)      (1,616)      (788)      (473)       (40)       --            (15,228) 
Operating income  (7,124)       (716)        (636)      312         (537)      --            (8,701) 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      440           420          (92)       32          164        --            964 
Tax on net 
 operating 
 income           (56)          330          203        (159)       2          --            320 
Net operating 
 income           (6,740)       34           (525)      185         (371)      --            (7,417) 
Net cost of net 
 debt                                                                                        (1,003) 
Non-controlling 
 interests                                                                                   85 
Net income -- 
 TotalEnergies 
 share                                                                                       (8,335) 
 
 
                                  Integrated 
1st half 2020       Exploration   Gas,         Refining   Marketing 
(adjustments)(a)     &            Renewables   &           & 
(M$)                 Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales      --            (16)         --         --          --         --            (16) 
Intersegment sales  --            --           --         --          --         --            -- 
Excise taxes        --            --           --         --          --         --            -- 
Revenues from 
 sales              --            (16)         --         --          --         --            (16) 
Operating expenses  (37)          (318)        (1,637)    (341)       (91)       --            (2,424) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests          (7,338)       (953)        --         --          --         --            (8,291) 
Operating 
 income(b)          (7,375)       (1,287)      (1,637)    (341)       (91)       --            (10,731) 
Net income (loss) 
 from equity 
 affiliates and 
 other items        71            (292)        (271)      (5)         --         --            (497) 
Tax on net 
 operating income   70            374          426        100         12         --            982 
Net operating 
 income(b)          (7,234)       (1,205)      (1,482)    (246)       (79)       --            (10,246) 
Net cost of net 
 debt                                                                                          (68) 
Non-controlling 
 interests                                                                                     72 
Net income -- 
 TotalEnergies 
 share                                                                                         (10,242) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. (b) Of which inventory valuation effect 
- On operating income          --      --      (1,604)        (234)       -- 
- On net operating income     --      --      (1,371)         (163)      -- 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
1st half 2020      &            Renewables   &           & 
(adjusted) (M$)    Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    2,574         8,419        27,956     30,661      6          --            69,616 
Intersegment 
 sales            8,661         895          9,051      196         59         (18,862)      -- 
Excise taxes      --            --           (1,119)    (8,342)     --         --            (9,461) 
Revenues from 
 sales            11,235        9,314        35,888     22,515      65         (18,862)      60,155 
Operating 
 expenses         (6,011)       (8,080)      (34,099)   (21,389)    (471)      18,862        (51,188) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (4,973)       (663)        (788)      (473)       (40)       --            (6,937) 
Adjusted 
 operating 
 income           251           571          1,001      653         (446)      --            2,030 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      369           712          179        37          164        --            1,461 
Tax on net 
 operating 
 income           (126)         (44)         (223)      (259)       (10)       --            (662) 
Adjusted net 
 operating 
 income           494           1,239        957        431         (292)      --            2,829 
Net cost of net 
 debt                                                                                        (935) 
Non-controlling 
 interests                                                                                   13 
Adjusted net 
 income -- 
 TotalEnergies 
 share                                                                                       1,907 
 
 
                             Integrated 
               Exploration   Gas,         Refining   Marketing 
1st half 2020   &            Renewables   &           & 
(M$)            Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
Total 
 expenditures  3,265         3,461        533        334         66                       7,659 
Total 
 divestments   325           433          101        72          26                       957 
Cash flow 
 from 
 operating 
 activities    4,833         900          (103)      420         (1,272)                  4,778 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
2nd quarter 2021   &            Renewables   &           & 
(M$)               Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    1,743         5,086        20,853     19,367      --         --            47,049 
Intersegment 
 sales            7,855         744          6,369      108         39         (15,115)      -- 
Excise taxes      --            --           (225)      (5,191)     --         --            (5,416) 
Revenues from 
 sales            9,598         5,830        26,997     14,284      39         (15,115)      41,633 
Operating 
 expenses         (4,284)       (5,103)      (25,646)   (13,434)    (207)      15,115        (33,559) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (2,134)       (291)        (396)      (271)       (29)       --            (3,121) 
Operating income  3,180         436          955        579         (197)      --            4,953 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      (1,243)       419          123        57          23         --            (621) 
Tax on net 
 operating 
 income           (1,195)       (56)         (281)      (176)       16         --            (1,692) 
Net operating 
 income           742           799          797        460         (158)      --            2,640 
Net cost of net 
 debt                                                                                        (341) 
Non-controlling 
 interests                                                                                   (93) 
Net income -- 
 TotalEnergies 
 share                                                                                       2,206 
 
 
                                  Integrated 
2nd quarter 2021    Exploration   Gas,         Refining   Marketing 
(adjustments)(a)     &            Renewables   &           & 
(M$)                 Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales      --            (9)          --         --          --         --            (9) 
Intersegment sales  --            --           --         --          --         --            -- 
Excise taxes        --            --           --         --          --         --            -- 
Revenues from 
 sales              --            (9)          --         --          --         --            (9) 
Operating expenses  (23)          (54)         386        71          --         --            380 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests          --            (3)          (13)       --          --         --            (16) 
Operating 
 income(b)          (23)          (66)         373        71          --         --            355 
Net income (loss) 
 from equity 
 affiliates and 
 other items        (1,436)       (47)         22         (8)         (22)       --            (1,491) 
Tax on net 
 operating income   (12)          21           (109)      (20)        --         --            (120) 
Net operating 
 income(b)          (1,471)       (92)         286        43          (22)       --            (1,256) 
Net cost of net 
 debt                                                                                          4 
Non-controlling 
 interests                                                                                     (5) 
Net income -- 
 TotalEnergies 
 share                                                                                         (1,257) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. (b) Of which inventory valuation effect 
- On operating income                    --      --     394      69      -- 
- On net operating income               --       --     331      50     -- 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
2nd quarter 2021   &            Renewables   &           & 
(adjusted) (M$)    Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    1,743         5,095        20,853     19,367      --         --            47,058 
Intersegment 
 sales            7,855         744          6,369      108         39         (15,115)      -- 
Excise taxes      --            --           (225)      (5,191)     --         --            (5,416) 
Revenues from 
 sales            9,598         5,839        26,997     14,284      39         (15,115)      41,642 
Operating 
 expenses         (4,261)       (5,049)      (26,032)   (13,505)    (207)      15,115        (33,939) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (2,134)       (288)        (383)      (271)       (29)       --            (3,105) 
Adjusted 
 operating 
 income           3,203         502          582        508         (197)      --            4,598 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      193           466          101        65          45         --            870 
Tax on net 
 operating 
 income           (1,183)       (77)         (172)      (156)       16         --            (1,572) 
Adjusted net 
 operating 
 income           2,213         891          511        417         (136)      --            3,896 
Net cost of net 
 debt                                                                                        (345) 
Non-controlling 
 interests                                                                                   (88) 
Adjusted net 
 income -- 
 TotalEnergies 
 share                                                                                       3,463 
 
 
                             Integrated 
               Exploration   Gas,         Refining   Marketing 
2nd quarter     &            Renewables   &           & 
2021 (M$)       Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
Total 
 expenditures  1,830         1,167        291        222         22                       3,532 
Total 
 divestments   63            310          13         36          6                        428 
Cash flow 
 from 
 operating 
 activities    4,835         567          2,232      437         (520)                    7,551 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
2nd quarter 2020   &            Renewables   &           & 
(M$)               Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    992           3,313        9,433      11,986      6          --            25,730 
Intersegment 
 sales            3,097         301          2,956      107         31         (6,492)       -- 
Excise taxes      --            --           (469)      (3,699)     --         --            (4,168) 
Revenues from 
 sales            4,089         3,614        11,920     8,394       37         (6,492)       21,562 
Operating 
 expenses         (2,405)       (3,406)      (10,895)   (7,931)     (315)      6,492         (18,460) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (9,667)       (1,282)      (393)      (229)       (22)       --            (11,593) 
Operating income  (7,983)       (1,074)      632        234         (300)      --            (8,491) 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      17            21           (35)       22          40         --            65 
Tax on net 
 operating 
 income           398           322          (132)      (127)       (26)       --            435 
Net operating 
 income           (7,568)       (731)        465        129         (286)      --            (7,991) 
Net cost of net 
 debt                                                                                        (431) 
Non-controlling 
 interests                                                                                   53 
Net income -- 
 TotalEnergies 
 share                                                                                       (8,369) 
 
 
                                  Integrated 
2nd quarter 2020    Exploration   Gas,         Refining   Marketing 
(adjustments)(a)     &            Renewables   &           & 
(M$)                 Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales      --            (18)         --         --          --         --            (18) 
Intersegment sales  --            --           --         --          --         --            -- 
Excise taxes        --            --           --         --          --         --            -- 
Revenues from 
 sales              --            (18)         --         --          --         --            (18) 
Operating expenses  (27)          (199)        (48)       5           (36)       --            (305) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests          (7,338)       (953)        --         --          --         --            (8,291) 
Operating 
 income(b)          (7,365)       (1,170)      (48)       5           (36)       --            (8,614) 
Net income (loss) 
 from equity 
 affiliates and 
 other items        (57)          (217)        (63)       (5)         --         --            (342) 
Tax on net 
 operating income   63            330          1          --          12         --            406 
Net operating 
 income(b)          (7,359)       (1,057)      (110)      --          (24)       --            (8,550) 
Net cost of net 
 debt                                                                                          33 
Non-controlling 
 interests                                                                                     22 
Net income -- 
 TotalEnergies 
 share                                                                                         (8,495) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. (b) Of which inventory valuation effect 
- On operating income                --      --     (26)       (16)       -- 
- On net operating income            --      --     (86)       (9)       -- 
 
 
                                Integrated 
                  Exploration   Gas,         Refining   Marketing 
2nd quarter 2020   &            Renewables   &           & 
(adjusted) (M$)    Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
External sales    992           3,331        9,433      11,986      6          --            25,748 
Intersegment 
 sales            3,097         301          2,956      107         31         (6,492)       -- 
Excise taxes      --            --           (469)      (3,699)     --         --            (4,168) 
Revenues from 
 sales            4,089         3,632        11,920     8,394       37         (6,492)       21,580 
Operating 
 expenses         (2,378)       (3,207)      (10,847)   (7,936)     (279)      6,492         (18,155) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests        (2,329)       (329)        (393)      (229)       (22)       --            (3,302) 
Adjusted 
 operating 
 income           (618)         96           680        229         (264)      --            123 
Net income 
 (loss) from 
 equity 
 affiliates and 
 other items      74            238          28         27          40         --            407 
Tax on net 
 operating 
 income           335           (8)          (133)      (127)       (38)       --            29 
Adjusted net 
 operating 
 income           (209)         326          575        129         (262)      --            559 
Net cost of net 
 debt                                                                                        (464) 
Non-controlling 
 interests                                                                                   31 
Adjusted net 
 income -- 
 TotalEnergies 
 share                                                                                       126 
 
 
                             Integrated 
               Exploration   Gas,         Refining   Marketing 
2nd quarter     &            Renewables   &           & 
2020 (M$)       Production   & Power      Chemicals   Services   Corporate  Intercompany  Total 
Total 
 expenditures  1,606         1,170        307        174         21                       3,278 
Total 
 divestments   204           89           22         26          9                        350 
Cash flow 
 from 
 operating 
 activities    910           1,389        1,080      819         (719)                    3,479 
 

3.2) Reconciliation of the information by business segment with consolidated financial statements

 
                                                                  Consolidated 
1st half 2021                                                      statement 
 (M$)                                   Adjusted  Adjustments(a)   of income 
Sales                                   90,830    (44)            90,786 
Excise taxes                            (10,520)  --              (10,520) 
Revenues from sales                     80,310    (44)            80,266 
Purchases net of inventory variation    (51,397)  1,280           (50,117) 
Other operating expenses                (13,576)  (21)            (13,597) 
Exploration costs                       (290)     --              (290) 
Depreciation, depletion and impairment 
 of tangible assets and mineral 
 interests                              (6,285)   (161)           (6,446) 
Other income                            554       27              581 
Other expense                           (334)     (623)           (957) 
Financial interest on debt              (967)     --              (967) 
Financial income and expense from cash 
 & cash equivalents                     156       16              172 
Cost of net debt                        (811)     16              (795) 
Other financial income                  374       --              374 
Other financial expense                 (261)     --              (261) 
Net income (loss) from equity 
 affiliates                             1,260     (1,059)         201 
Income taxes                            (2,931)   (317)           (3,248) 
Consolidated net income                 6,613     (902)           5,711 
TotalEnergies share                     6,466     (916)           5,550 
Non-controlling interests               147       14              161 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
 
                                                                  Consolidated 
1st half 2020                                                      statement 
 (M$)                                   Adjusted  Adjustments(a)   of income 
Sales                                   69,616    (16)            69,600 
Excise taxes                            (9,461)   --              (9,461) 
Revenues from sales                     60,155    (16)            60,139 
Purchases net of inventory variation    (37,949)  (2,144)         (40,093) 
Other operating expenses                (12,985)  (280)           (13,265) 
Exploration costs                       (254)     --              (254) 
Depreciation, depletion and impairment 
 of tangible assets and mineral 
 interests                              (6,937)   (8,291)         (15,228) 
Other income                            820       122             942 
Other expense                           (294)     (234)           (528) 
Financial interest on debt              (1,094)   (5)             (1,099) 
Financial income and expense from cash 
 & cash equivalents                     (13)      (92)            (105) 
Cost of net debt                        (1,107)   (97)            (1,204) 
Other financial income                  607       --              607 
Other financial expense                 (341)     (1)             (342) 
Net income (loss) from equity 
 affiliates                             669       (384)           285 
Income taxes                            (490)     1,011           521 
Consolidated net income                 1,894     (10,314)        (8,420) 
TotalEnergies share                     1,907     (10,242)        (8,335) 
Non-controlling interests               (13)      (72)            (85) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
 
                                                                  Consolidated 
2nd quarter 2021                                                   statement 
 (M$)                                   Adjusted  Adjustments(a)   of income 
Sales                                   47,058    (9)             47,049 
Excise taxes                            (5,416)   --              (5,416) 
Revenues from sales                     41,642    (9)             41,633 
Purchases net of inventory variation    (27,108)  389             (26,719) 
Other operating expenses                (6,708)   (9)             (6,717) 
Exploration costs                       (123)     --              (123) 
Depreciation, depletion and impairment 
 of tangible assets and mineral 
 interests                              (3,105)   (16)            (3,121) 
Other income                            138       85              223 
Other expense                           (142)     (156)           (298) 
Financial interest on debt              (501)     --              (501) 
Financial income and expense from cash 
 & cash equivalents                     69        8               77 
Cost of net debt                        (432)     8               (424) 
Other financial income                  265       --              265 
Other financial expense                 (131)     --              (131) 
Net income (loss) from equity 
 affiliates                             740       (1,420)         (680) 
Income taxes                            (1,485)   (124)           (1,609) 
Consolidated net income                 3,551     (1,252)         2,299 
TotalEnergies share                     3,463     (1,257)         2,206 
Non-controlling interests               88        5               93 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
 
                                                                  Consolidated 
2nd quarter 2020                                                   statement 
 (M$)                                   Adjusted  Adjustments(a)   of income 
Sales                                   25,748    (18)            25,730 
Excise taxes                            (4,168)   --              (4,168) 
Revenues from sales                     21,580    (18)            21,562 
Purchases net of inventory variation    (11,842)  (183)           (12,025) 
Other operating expenses                (6,199)   (122)           (6,321) 
Exploration costs                       (114)     --              (114) 
Depreciation, depletion and impairment 
 of tangible assets and mineral 
 interests                              (3,302)   (8,291)         (11,593) 
Other income                            240       122             362 
Other expense                           (103)     (5)             (108) 
Financial interest on debt              (527)     (3)             (530) 
Financial income and expense from cash 
 & cash equivalents                     (3)       53              50 
Cost of net debt                        (530)     50              (480) 
Other financial income                  419       --              419 
Other financial expense                 (160)     (1)             (161) 
Net income (loss) from equity 
 affiliates                             11        (458)           (447) 
Income taxes                            95        389             484 
Consolidated net income                 95        (8,517)         (8,422) 
TotalEnergies share                     126       (8,495)         (8,369) 
Non-controlling interests               (31)      (22)            (53) 
 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 

3.3) Adjustment items

 

The detail of the adjustment items is presented in the table below.

 

Adjustments to operating income

 
                                       Integrated 
                          Exploration  Gas,         Refining   Marketing 
                           &           Renewables   &           & 
(M$)                       Production  & Power      Chemicals   Services  Corporate  Total 
2nd       Inventory 
 quarter   valuation 
 2021      effect         --           --           394        69         --         463 
 Effect of changes in 
  fair value              --           (49)         --         --         --         (49) 
 Restructuring charges    --           (1)          (8)        --         --         (9) 
 Asset impairment 
  charges                 --           (3)          (13)       --         --         (16) 
 Other items              (23)         (13)         --         2          --         (34) 
TOTAL                     (23)         (66)         373        71         --         355 
2nd       Inventory 
 quarter   valuation 
 2020      effect         --           --           (26)       (16)       --         (42) 
 Effect of changes in 
  fair value              --           (100)        --         --         --         (100) 
 Restructuring charges    --           (10)         (7)        --         --         (17) 
 Asset impairment 
  charges                 (7,338)      (953)        --         --         --         (8,291) 
 Other items              (27)         (107)        (15)       21         (36)       (164) 
TOTAL                     (7,365)      (1,170)      (48)       5          (36)       (8,614) 
          Inventory 
1st half   valuation 
 2021      effect         --           --           1,140      206        --         1,346 
 Effect of changes in 
  fair value              --           (58)         --         --         --         (58) 
 Restructuring charges    --           (10)         (8)        --         --         (18) 
 Asset impairment 
  charges                 --           (148)        (13)       --         --         (161) 
 Other items              (23)         (38)         (1)        7          --         (55) 
TOTAL                     (23)         (254)        1,118      213        --         1,054 
          Inventory 
1st half   valuation 
 2020      effect         --           --           (1,604)    (234)      --         (1,838) 
 Effect of changes in 
  fair value              --           (98)         --         --         --         (98) 
 Restructuring charges    (10)         (18)         (7)        --         --         (35) 
 Asset impairment 
  charges                 (7,338)      (953)        --         --         --         (8,291) 
 Other items              (27)         (218)        (26)       (107)      (91)       (469) 
TOTAL                     (7,375)      (1,287)      (1,637)    (341)      (91)       (10,731) 
 

Adjustments to net income, TotalEnergies share

 
                                       Integrated 
                          Exploration  Gas,         Refining   Marketing 
                           &           Renewables   &           & 
(M$)                       Production  & Power      Chemicals   Services  Corporate  Total 
2nd       Inventory 
 quarter   valuation 
 2021      effect         --           --           327        48         --         375 
 Effect of changes in 
  fair value              --           (44)         --         --         --         (44) 
 Restructuring charges    (44)         (4)          (32)       (8)        (22)       (110) 
 Asset impairment 
  charges                 --           (36)         (13)       --         --         (49) 
 Gains (losses) on 
  disposals of assets     (1,379)*     --           --         --         --         (1,379) 
 Other items              (44)         (7)          --         1          --         (50) 
TOTAL                     (1,467)      (91)         282        41         (22)       (1,257) 
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. 
 
2nd       Inventory 
 quarter   valuation 
 2020      effect         --           --           (83)       (11)       --         (94) 
 Effect of changes in 
  fair value              --           (80)         --         --         --         (80) 
 Restructuring charges    --           (10)         (10)       --         --         (20) 
 Asset impairment 
  charges                 (7,272)      (829)        --         --         --         (8,101) 
          Gains (losses) 
          on disposals 
          of assets       --           --           --         --         --         -- 
 Other items              (77)         (131)        (14)       10         12         (200) 
TOTAL                     (7,349)      (1,050)      (107)      (1)        12         (8,495) 
          Inventory 
1st half   valuation 
 2021      effect         --           --           926        138        --         1,064 
 Effect of changes in 
  fair value              --           (50)         --         --         --         (50) 
 Restructuring charges    (85)         (12)         (71)       (43)       (60)       (271) 
 Asset impairment 
  charges                 --           (180)        (13)       --         --         (193) 
 Gains (losses) on 
  disposals of assets     (1,379)*     --           --         --         --         (1,379) 
 Other items              (41)         (42)         (9)        5          --         (87) 
TOTAL                     (1,505)      (284)        833        100        (60)       (916) 
* Impact of the TotalEnergies' interest sale of Petrocedeño to PDVSA. 
 
          Inventory 
1st half   valuation 
 2020      effect         --           --           (1,364)    (144)      --         (1,508) 
 Effect of changes in 
  fair value              --           (79)         --         --         --         (79) 
 Restructuring charges    (3)          (22)         (75)       --         --         (100) 
 Asset impairment 
  charges                 (7,272)      (829)        --         --         --         (8,101) 
          Gains (losses) 
          on disposals 
          of assets       --           --           --         --         --         -- 
 Other items              51           (256)        (36)       (71)       (142)      (454) 
TOTAL                     (7,224)      (1,186)      (1,475)    (215)      (142)      (10,242) 
 
 

4) Shareholders' equity

 

Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)

 
 
Shares to be allocated as part of performance share grant plans 
including the 2019 Plan                                           99,750 
including other Plans                                             74,675 
Total Treasury shares                                             174,425 
 

Dividend

 

The Shareholders' meeting of May 28, 2021 approved the distribution of a dividend of EUR2.64 per share for the 2020 fiscal year and the payment of a final dividend of EUR0.66 per share given the three interim dividends that had already been paid. The dividend for the fiscal year 2020 was paid according to the following timetable:

 
Dividend 2020    First interim   Second interim  Third interim   Final 
Amount           EUR0.66         EUR0.66         EUR0.66         EUR0.66 
Set date         May 4, 2020     July 29, 2020   October 29,     May 28, 2021 
                                                 2020 
Ex-dividend      September 25,   January 4,      March 25, 2021  June 24, 2021 
 date            2020            2021 
Payment date     October 2,      January 11,     April 1, 2021   July 1, 2021 
                 2020            2021 
 

Furthermore, on July 28, 2021 the Board of Directors decided to set the second interim dividend for the fiscal year 2021 at EUR0.66 per share, equal to the first interim dividend. This second interim dividend will be paid in cash on January 13, 2022 (the ex-dividend date will be January 3, 2022).

 
Dividend 2021      First interim       Second interim 
Amount             EUR0.66             EUR0.66 
Set date           April 28, 2021      July 28, 2021 
Ex-dividend date   September 21, 2021  January 3, 2022 
Payment date       October 1, 2021     January 13, 2022 
 

Earnings per share in Euro

 

Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to EUR0.66 per share for the 2nd quarter 2021 (EUR1.03 per share for the 1(st) quarter 2021 and EUR(2.98) per share for the 2nd quarter 2020). Diluted earnings per share calculated using the same method amounted to EUR0.66 per share for the 2nd quarter 2021 (EUR1.02 per share for the 1(st) quarter 2021 and EUR(2.98) per share for the 2nd quarter 2020).

 

Earnings per share are calculated after remuneration of perpetual subordinated notes.

Perpetual subordinated notes

 

The Company issued perpetual subordinated notes in January 2021:

   -- Perpetual subordinated notes 1.625% callable in January 2028, or in 
      anticipation in October 2027 (EUR 1,500 million); and 
 
   -- Perpetual subordinated notes 2.125% callable in January 2033, or in 
      anticipation in July 2032 (EUR 1,500 million). 
 

Following the two tender operations on perpetual subordinated notes 2.250% callable from February 2021 (carried out in April 2019 and September 2020 for EUR 1,500 million and EUR 703 million respectively), TotalEnergies SE fully reimbursed the residual nominal amount of this note at its first call date for an amount of EUR 297 million on February 26, 2021.

Other comprehensive income

 

Detail of other comprehensive income is presented in the table below:

 
(M$)                                              1st half 2021  1st half 2020 
Actuarial gains and losses                        449            (223) 
Change in fair value of investments in equity 
 instruments                                      68             (74) 
Tax effect                                        (154)          86 
Currency translation adjustment generated by the 
 parent company                                   (2,934)        (196) 
Sub-total items not potentially reclassifiable 
 to profit and loss                               (2,571)        (407) 
Currency translation adjustment                   1,777          (940) 
Unrealized gain/(loss) of the period              1,898          (907) 
Less gain/(loss) included in net income           121            33 
Cash flow hedge                                   80             (1,293) 
Unrealized gain/(loss) of the period              (56)           (1,317) 
Less gain/(loss) included in net income           (136)          (24) 
Variation of foreign currency basis spread        (4)            70 
Unrealized gain/(loss) of the period              (29)           42 
Less gain/(loss) included in net income           (25)           (28) 
Share of other comprehensive income of equity 
 affiliates, net amount                           451            (927) 
Unrealized gain/(loss) of the period              449            (936) 
Less gain/(loss) included in net income           (2)            (9) 
Other                                             --             3 
Tax effect                                        (57)           367 
Sub-total items potentially reclassifiable to 
 profit and loss                                  2,247          (2,720) 
Total other comprehensive income, net amount      (324)          (3,127) 
 

Tax effects relating to each component of other comprehensive income are as follows:

 
                 1st half 2021                  1st half 2020 
                 Pre-tax   Tax       Net        Pre-tax   Tax        Net 
(M$)             amount    effect    amount     amount    effect     amount 
Actuarial gains 
 and losses      449       (141)     308        (223)     56         (167) 
Change in fair 
 value of 
 investments in 
 equity 
 instruments     68        (13)      55         (74)      30         (44) 
Currency 
 translation 
 adjustment 
 generated by 
 the parent 
 company         (2,934)   --        (2,934)    (196)     --         (196) 
Sub-total items 
 not 
 potentially 
 reclassifiable 
 to profit and 
 loss            (2,417)   (154)     (2,571)    (493)     86         (407) 
Currency 
 translation 
 adjustment      1,777     --        1,777      (940)     --         (940) 
Cash flow hedge  80        (55)      25         (1,293)   389        (904) 
Variation of 
 foreign 
 currency basis 
 spread          (4)       (2)       (6)        70        (22)       48 
Share of other 
 comprehensive 
 income of 
 equity 
 affiliates, 
 net amount      451       --        451        (927)     --         (927) 
Other            --        --        --         3         --         3 
Sub-total items 
 potentially 
 reclassifiable 
 to profit and 
 loss            2,304     (57)      2,247      (3,087)   367        (2,720) 
Total other 
 comprehensive 
 income          (113)     (211)     (324)      (3,580)   453        (3,127) 
 

5) Financial debt

 

The Company has not issued any new senior bond during the first six months of 2021.

 

The Company reimbursed two senior bonds during the first six months of 2021:

   -- Bond 4.125% issued in 2011 and maturing in January 2021 (USD 500 million) 
 
   -- Bond 2.750% issued in 2014 and maturing in June 2021 (USD 1,000 million). 
 

On April 2, 2020, the Company put in place a committed syndicated credit line with banking counterparties for an initial amount of USD 6,350 million and with a 12-month tenor (with the option to extend its maturity twice by a further 6 months at TotalEnergies' hand).

 

On April 1, 2021, the Company reimbursed in full the balance of this committed syndicated credit line for an amount of USD 2,646 million.

6) Related parties

 

The related parties are mainly equity affiliates and non-consolidated investments.

 

There were no major changes concerning transactions with related parties during the first six months of 2021.

7) Other risks and contingent liabilities

 

TotalEnergies is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the TotalEnergies, other than those mentioned below.

Yemen

 

In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which TotalEnergies holds a stake of 39.62%, to stop its commercial production and export of LNG and to declare force majeure to its various stakeholders in 2015. The plant has been put in preservation mode.

Mozambique

 

Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, TotalEnergies has confirmed on April 26, 2021 the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation led TotalEnergies, as operator of Mozambique LNG project, to declare force majeure.

8) Subsequent events

 

On July 9, 2021, TotalEnergies executed a Share Purchase Agreement with PDVSA for the sale of its 30.323% interest in the share capital of Petrocedeño in Venezuela.

 

The contractual conditions necessary to close this transaction are the approval of the Venezuelan Ministry of Petroleum (MINPET) and the approval of the Board of Directors of TotalEnergies SE.

 

The Board of Directors of TotalEnergies SE approved this transaction on July 28, 2021.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005423/en/

 
    CONTACT: 

TotalEnergies SE

 
    SOURCE: TotalEnergies SE 
Copyright Business Wire 2021 
 

(END) Dow Jones Newswires

September 16, 2021 07:10 ET (11:10 GMT)

Totalenergies (LSE:TTE)
Graphique Historique de l'Action
De Nov 2021 à Déc 2021 Plus de graphiques de la Bourse Totalenergies
Totalenergies (LSE:TTE)
Graphique Historique de l'Action
De Déc 2020 à Déc 2021 Plus de graphiques de la Bourse Totalenergies