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)
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