TIDMTTE 
 
 

TotalEnergies SE: Second Quarter and First Half 2022 Results

TotalEnergies reports IFRS net income of $5.7 billion

and accelerates its transformation with three major deals in LNG,

 

renewables and green hydrogen

 

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

 
                                           Change             Change 
                                    2Q22    vs 2Q21     1H22   vs 1H21 
 Net income (TotalEnergies share) 
 (B$)                               5.7    x2.6         10.6  +92% 
 Adjusted net income 
(TotalEnergies share)(1) 
- in billions of dollars (B$)       9.8    x2.8         18.8  x2.9 
- in dollars per share              3.75   x2.9         7.14  x3 
 Adjusted EBITDA(1) (B$)            18.7   x2.2         36.2  x2.1 
 DACF(1) (B$)                       13.6   x2           25.6  x2 
 Cash Flow from operations (B$)     16.3   x2.2         23.9  +82% 
Net-debt-to-capital ratio(2) of 9.8% at June 30, 2022 
 vs. 12.5% at March 31, 2022 
Second 2022 interim dividend set at 0.69 EUR/share 
 

The Board of Directors of TotalEnergies SE, meeting on July 27, 2022, under the chairmanship of CEO Patrick Pouyanné, approved the Company's financial statements for the second quarter of 2022. On this occasion, Patrick Pouyanné said:

"Russia's invasion of Ukraine continued to impact energy markets in the second quarter, with oil prices averaging more than $110/bbl in the quarter, refining margins reaching record-high levels, and natural gas prices holding above oil parity in Europe and Asia.

In this context, TotalEnergies responded by increasing energy output, thus contributing to energy security: LNG sales rose to more than 25 Mt in the first half, with 60% in Europe, and TotalEnergies' refineries raised their utilization rate to nearly 90%.

In line with the priority set by the Board of Directors to accelerate the Company's transformation, TotalEnergies announced three major investments: the giant NFE LNG project in Qatar, Clearway, the fifth largest U.S. player in renewable energy, and a massive green hydrogen production project in India in partnership with Adani.

In the second quarter of 2022, the Company generated adjusted net income of $9.8 billion and IFRS net income of $5.7 billion. TotalEnergies recorded in its accounts a new $3.5 billion impairment charge related mainly to the potential impact of international sanctions on the value of its Novatek stake. Excluding Russia, adjusted net income was $9.1 billion.

The iGRP (integrated Gas, Renewables & Power) segment posted adjusted net operating income of $2.6 billion and cash flow of $2.4 billion in the second quarter of 2022, confirming the levels reached in previous quarters.

Exploration & Production posted adjusted net operating income of $4.7 billion and cash flow of $7.4 billion, despite a decrease in production in the quarter that was due to planned maintenance and security-related cuts in Nigeria and Libya. TotalEnergies approved the launch of projects, such as Ballymore in the U.S., Begonia, CLOV Phase 3 in Angola, as well as Eldfisk North in Norway.

Downstream benefited from exceptionally high refining margins on distillates and gasoline to report adjusted net operating income of $3.2 billion, up sharply over the quarter, and cash flow of $3.5 billion. In this context, the Company announced a fuel price reduction program benefitting its French customers.

The Company's cash flow was $13.2 billion ($12.4 billion excluding Russia) and free cash flow(3) was $4.5 billion, after buying back $2 billion of shares in the second quarter as announced. The Company reduced its gearing ratio to less than 10%.

 

Supported by these results, the Board of Directors approved the distribution of the 2022 second interim dividend in the amount of EUR0.69/share, up 5% year-on-year, and authorized the Company to continue share buybacks of up to $2 billion in the third quarter."

 

1. Highlights(4)

 

Social and environmental responsibility

   -- Climate Resolution 2022 approved by 89% of shareholders at the Annual 
      General Meeting of May 25, 2022 
 
   -- Launched global campaign to detect and measure methane emissions by drone 
 
   -- Fuel price reduction program until year-end for TotalEnergies' service 
      stations in France 
 

Renewables and Electricity

   -- Acquisition of 50% of Clearway Energy Group, a major player in the United 
      States, with 7.7 GW of solar and wind assets in operation and a portfolio 
      of 25 GW in development 
 
   -- Offshore wind: obtained an offshore concession to develop a 1 GW offshore 
      wind farm off the U.S. East Coast, off the coast of North Carolina 
 
   -- Solar: 
 
          -- Created a joint venture with ENEOS to develop decentralized power 
             generation for B2B customers in Asia, with a target capacity of 2 
             GW over the next 5 years 
 
          -- Acquired Core Solar which has a pipeline of 4 GW projects in the 
             United States 
 
   -- Launched TotalEnergies On, TotalEnergies' start-up accelerator program 
      dedicated to the electricity business, with the selection of the first 10 
      start-ups 
 

LNG

   -- Acquired 6.25% stake in the North Field East LNG project in Qatar with a 
      capacity of 32 Mt/y 
 
   -- Launched the FEED for the Cameron LNG extension project in the U.S. with 
      a capacity of 6.75 Mt/y 
 
   -- Launched the FEED for the upstream installations of the Papua LNG project 
      in Papua New Guinea 
 
   -- Signed a 15-year contract for the sale of 600 kt/y of LNG with Hanwha 
      Energy in South Korea 
 

Upstream

   -- Started production on the first 180 kb/d FPSO on the Mero field in Brazil 
 
   -- Approved the development of the Ballymore field in the U.S. Gulf of 
      Mexico for a planned 2025 start-up with 75 kb/d of production capacity 
 
   -- 25-year license extension Blocks 404a and 208 in the Berkine Basin, 
      Algeria 
 
   -- Agreed to transfer to Zarubezhneft the 20% residual interest in the 
      Kharyaga oil field in Russia 
 

Downstream and new molecules

   -- Started the ethane cracker in Port Arthur, USA 
 
   -- Hydrogen: acquired a 25% stake in Adani New Industries Limited (ANIL) for 
      the production of green hydrogen in India 
 
   -- Sustainable fuel: feasibility study of a sustainable aviation fuel 
      production unit in Japan in cooperation with ENEOS 
 
   -- Circular economy: commercial agreement with New Hope Energy for the 
      production of polymers from recycled plastic in the United States 
 

Carbon sinks

   -- Acquired a 49% stake in Compagnie des Bois du Gabon to develop natural 
      carbon sinks 
 
   -- Launched a CO2 capture project to decarbonize Cameron LNG's production in 
      the U.S. 
 

2. Key figures from TotalEnergies' consolidated financial statements(5)

 
                                     In millions of 
                                     dollars, except 
                                     effective tax 
                                     rate, earnings 
                             2Q22    per share and                           1H22 
                             vs      number of                                vs 
2Q22      1Q22      2Q21     2Q21    shares              1H22      1H21      1H21 
                                     Adjusted EBITDA 
18,737    17,424    8,667    x2.2    (6)                 36,161    16,837    x2.1 
                                     Adjusted net 
                                     operating income 
                                     from business 
10,500    9,458     4,032    x2.6    segments            19,958    7,519     x2.7 
                                     Exploration & 
4,719     5,015     2,213    x2.1    Production          9,734     4,188     x2.3 
                                     Integrated Gas, 
                                     Renewables & 
2,555     3,051     891      x2.9    Power               5,606     1,876     x3 
                                     Refining & 
2,760     1,120     511      x5.4    Chemicals           3,880     754       x5.1 
                                     Marketing & 
466       272       417      +12%    Services            738       701       +5% 
                                     Contribution of 
                                     equity 
                                     affiliates to 
                                     adjusted net 
1,944     1,861     740      x2.6    income              3,805     1,260     x3 
                                     Effective tax 
39.4%     38.7%     34.3%    -       rate (7)            39.0%     34.4%     - 
                                     Adjusted net 
                                     income 
                                     (TotalEnergies 
9,796     8,977     3,463    x2.8    share)              18,773    6,466     x2.9 
                                     Adjusted 
                                     fully-diluted 
                                     earnings per 
                                     share (dollars) 
3.75      3.40      1.27     x2.9    (8)                 7.14      2.38      x3 
                                     Adjusted 
                                     fully-diluted 
                                     earnings per 
3.50      3.03      1.06     x3.3    share (euros)*      6.53      1.97      x3.3 
                                     Fully-diluted 
                                     weighted-average 
                                     shares 
2,592     2,614     2,646    -2%     (millions)          2,602     2,644     -2% 
 
                                     Net income 
                                     (TotalEnergies 
5,692     4,944     2,206    x2.6    share)              10,636    5,550     +92% 
 
                                     Organic 
2,819     1,981     2,802    +1%     investments (9)     4,800     5,181     -7% 
                                     Net acquisitions 
2,076     922       396      x5.2    (10)                2,998     1,986     +51% 
                                     Net investments 
4,895     2,903     3,198    +53%    (11)                7,798     7,167     +9% 
 
                                     Operating cash 
                                     flow before 
                                     working capital 
13,233    11,626    6,352    x2.1    changes (12)        24,859    11,718    x2.1 
                                     Operating cash 
                                     flow before 
                                     working capital 
                                     changes w/o 
                                     financial 
                                     charges (DACF) 
13,631    11,995    6,761    x2      (13)                25,626    12,511    x2 
                                     Cash flow from 
16,284    7,617     7,551    x2.2    operations          23,901    13,149    +82% 
 

* Average EUR-$ exchange rate: 1.0647 in the second quarter 2022, 1.0934 in the first half 2022.

 

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

 

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

 
                          2Q22                                           1H22 
                           vs                                              vs 
2Q22     1Q22     2Q21     2Q21                         1H22     1H21     1H21 
113.9    102.2    69.0    +65%     Brent ($/b)          107.9    65.0    +66% 
                                   Henry Hub 
7.5      4.6      3.0     x2.5     ($/Mbtu)             6.1      2.9     x2.1 
22.2     32.3     8.7     x2.6     NBP ($/Mbtu)         27.2     7.7     x3.5 
27.0     31.1     10.0    x2.7     JKM ($/Mbtu)         29.1     10.0    x2.9 
                                   Average price of 
                                   liquids ($/b) 
                                   Consolidated 
102.9    90.1     62.9    +64%     subsidiaries         96.3     59.7    +61% 
                                   Average price of 
                                   gas ($/Mbtu) 
                                   Consolidated 
11.01    12.27    4.43    x2.5     subsidiaries         11.65    4.23    x2.8 
                                   Average price of 
                                   LNG ($/Mbtu) 
                                   Consolidated 
                                   subsidiaries and 
                                   equity 
13.96    13.60    6.59    x2.1     affiliates           13.77    6.33    x2.2 
145.7    46.3     10.2    x14.3    Variable cost        101.0    7.6     x13.3 
                                   margin - Refining 
                                   Europe, VCM 
                                   ($/t)** 
 

* The indicators are shown on page 21.

 

** This indicator represents TotalEnergies' average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons).

 

The average LNG selling price was $13.96/Mbtu in the second quarter and $13.77/Mbtu in the first half, more than double the prices over the same periods in 2021, benefitin on a lagged basis from the increase in oil and gas indexes on long-term contracts as well as high spot gas prices over these periods.

 

3.2 Greenhouse gas emissions(14)

 
                        2Q22                                             1H22 
                         vs      GHG emissions                            vs 
2Q22    1Q22    2Q21     2Q21    (MtCO(2) e)            1H22    1H21      1H21 
                                 Scope 1+2 from 
                                 operated facilities 
9.6     9.6*    8.6*    +12%     (15)                   19.3    17.8*    +9% 
                                 Scope 1+2 - equity 
13.4    14.0    -       -        share                  27.4    -        - 
 
                                 Scope 3 from energy 
94*     98*     95*     -        product sales (16)     192*    193*     - 
                                 of which Scope 3 
65*     66*     68*     -5%      Oil Worldwide (17)     131*    137*     -4% 
 
                                 Scope 1+2+3 in 
63*     66*     58*     +9%      Europe (18)            129*    121*     +6% 
                                 of which Scope 3 in 
57*     60*     53*     +8%      Europe                 117*    111*     +6% 
 

Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available

 

* Excluding Covid effect

 
                        2Q22                                             1H22 
                         vs      Methane emissions                        vs 
2Q22    1Q22    2Q21     2Q21    (ktCH(4) )              1H22    1H21     1H21 
                                 Methane emissions 
                                 from operated 
10      10      11      -11%     facilities              20      24      -18% 
                                 Methane emissions - 
13      12      -       -        equity share            24      -       - 
 

Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available

 

The evolution of Scope 1+2 emissions from the operated facilities is the result of the high-capacity utilization of CCGTs and refineries in Europe, TotalEnergies responding by increasing energy output, thus contributing to energy security.

 

3.3 Production*

 
                           2Q22                                                1H22 
                           vs                                                    vs 
2Q22     1Q22     2Q21     2Q21    Hydrocarbon production    1H22     1H21      1H21 
                                   Hydrocarbon production 
2,738    2,843    2,747    -       (kboe/d)                  2,791    2,805    -0.5% 
                                   Oil (including 
1,268    1,305    1,258    +1%     bitumen) (kb/d)           1,287    1,265    +2% 
                                   Gas (including 
                                   condensates and 
                                   associated NGL) 
1,470    1,538    1,489    -1%     (kboe/d)                  1,504    1,540    -2% 
 
                                   Hydrocarbon production 
2,738    2,843    2,747    -       (kboe/d)                  2,791    2,805    -0.5% 
1,483    1,527    1,464    +1%     Liquids (kb/d)            1,505    1,486    +1% 
6,835    7,162    7,017    -3%     Gas (Mcf/d)               6,997    7,208    -3% 
 

* Company production = E&P production + iGRP production.

 

Hydrocarbon production was 2,738 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2022, stable year-on-year, comprised of:

   -- +3% due to the increase in production quotas of OPEC countries, 
 
   -- +3% due to a reduction in planned maintenance and unplanned downtime, 
 
   -- +2% due to the start-up and ramp-up of projects, 
 
   -- -2% due to security-related production cuts in Libya and Nigeria, 
 
   -- -2% portfolio effect, mainly related to the end of the operating licenses 
      for Qatargas 1 and Bongkot North in Thailand, partially offset by the 
      entry into the Sepia and Atapu fields in Brazil, 
 
   -- -1% due to the price effect, 
 
   -- -3% due to the natural decline of fields. 
 

Compared to the first quarter, production was down 4%, mainly due to planned maintenance operations for - 2%, production cuts in Nigeria and Libya for -1%, the end of Bongkot North's license in Thailand, partially offset by the entry into the production fields of Sepia and Atapu in Brazil.

 

Hydrocarbon production was 2,791 kboe/d in the first half 2022, down slightly by 0.5% year-on-year, comprised of:

   -- +2% due to the increase in production quotas of OPEC countries, 
 
   -- +2% due to the start-up and ramp-up of projects, including Clov Phase 2 
      and Zinia Phase 2 in Angola, and Iara in Brazil, 
 
   -- +2% due to a reduction in planned maintenance and unplanned downtime, 
 
   -- -2% portfolio effect, mainly related to the end of the Qatargas 1 
      operating license, 
 
   -- -1% due to security-related production cuts in Libya and Nigeria, 
 
   -- -1% due to the price effect, 
 
   -- -2.5% due to the natural decline of fields. 
 

4. Analysis of business segments

 

4.1 Integrated Gas, Renewables & Power (iGRP)

 

4.1.1 Production and sales of Liquefied Natural Gas (LNG) and electricity

 
                           2Q22     Hydrocarbon                          1H22 
                            vs      production for                         vs 
2Q22     1Q22     2Q21      2Q21    LNG                1H22     1H21      1H21 
462      492      502      -8%      iGRP (kboe/d)      477      510      -6% 
53       60       52       +1%      Liquids (kb/d)     56       58       -2% 
2,233    2,349    2,464    -9%      Gas (Mcf/d)        2,291    2,470    -7% 
 
                           2Q22     Liquefied                            1H22 
                            vs      Natural Gas in                         vs 
2Q22     1Q22     2Q21      2Q21    Mt                 1H22     1H21      1H21 
                                    Overall LNG 
11.7     13.3     10.5     +11%     sales              24.9     20.4     +22% 
                                    incl. Sales 
                                    from equity 
4.1      4.4      4.2      -1%      production*        8.6      8.5      - 
                                    incl. Sales by 
                                    TotalEnergies 
                                    from equity 
                                    production and 
                                    third party 
10.2     11.9     8.8      +16%     purchases          22.2     16.7     +33% 
 

* The Company's equity production may be sold by TotalEnergies or by the joint ventures.

 

Hydrocarbon production for LNG is down 8% and 6% year-on-year, respectively, in the second quarter 2022 and the first half 2022, mainly due to the end of the Qatargas 1 contract and the decrease in supply to NLNG for security reasons in Nigeria. Production in Snøhvit, Norway, restarted in the second quarter.

 

Total LNG sales are up year-on-year by 11% in the second quarter 2022 and by 22% in the first half 2022, due to the increase in spot purchases to maximize the use of the Company's regasification capacity in Europe.

 
                        2Q22                                             1H22 
                          vs     Renewables &                              vs 
2Q22    1Q22    2Q21     2Q21    Electricity             1H22    1H21     1H21 
                                 Portfolio of 
                                 renewable power 
                                 generation gross 
                                 capacity (GW) 
50.7    46.8    41.7    +22%     (1),(2)                 50.7    41.7    +22% 
                                 o/w installed 
11.6    10.7    8.3     +40%     capacity                11.6    8.3     +40% 
                                 o/w capacity in 
5.2     6.1     5.4     -4%      construction            5.2     5.4     -4% 
                                 o/w capacity in 
33.9    30.1    28.0    +21%     development             33.9    28.0    +21% 
                                 Gross renewables 
                                 capacity with PPA 
26.8    26.8    22.6    +19%     (GW) (1),(2)            26.8    22.6    +19% 
                                 Portfolio of 
                                 renewable power 
                                 generation net 
                                 capacity (GW) 
38.4    34.4    30.7    +25%     (1),(2)                 38.4    30.7    +25% 
                                 o/w installed 
5.8     5.4     4.0     +46%     capacity                5.8     4.0     +46% 
                                 o/w capacity in 
3.7     4.2     3.1     +17%     construction            3.7     3.1     +17% 
                                 o/w capacity in 
28.9    24.8    23.6    +22%     development             28.9    23.6    +22% 
                                 Net power production 
7.7     7.6     5.1     +51%     (TWh) (3)               15.2    9.8     +56% 
                                 incl. power 
                                 production from 
2.5     2.2     1.7     +50%     renewables              4.7     3.2     +47% 
                                 Clients power - BtB 
                                 and BtC (Million) 
6.2     6.1     5.8     +6%      (2)                     6.2     5.8     +6% 
                                 Clients gas - BtB 
                                 and BtC (Million) 
2.7     2.7     2.7     +1%      (2)                     2.7     2.7     +1% 
                                 Sales power - BtB 
12.3    16.3    12.7    -3%      and BtC (TWh)           28.6    28.8    - 
                                 Sales gas - BtB and 
19.1    35.0    20.6    -7%      BtC (TWh)               54.1    56.8    -5% 
 
                                 Proportional 
                                 adjusted EBITDA 
                                 Renewables & 
                                 Electricity (M$) 
462     175     310*    +49%     (4)                     637     654*    -3% 
                                 incl. from 
131     91      82*     +59%     renewables business     222     230*    -4% 
 

(1) Includes 20% of Adani Green Energy Ltd's 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 & Electricity affiliates, regardless of consolidation method.

 

* 2Q21 and 1H21 data corrected after taking into account AGEL's result.

 

Gross installed renewable power generation capacity grew to 11.6 GW at the end of the second quarter of 2022, up 0.9 GW over the quarter, including 0.4 GW related to the start-up of Phase 1 of the Al Kharsaah photovoltaic project in Qatar.

 

Gross power generation capacity in development increased by 3.8 GW quarter-on-quarter, mainly due to the acquisition of Core Solar's portfolio of projects in the United States.

 

Net electricity generation stood at 7.7 TWh in the second quarter 2022 and 15.2 TWh in the first half 2022, up 51% and 56%, respectively, year-on-year, thanks to higher utilization rates of flexible power plants (CCGT) as well as growth in electricity generation from renewable sources.

 

EBITDA from the Renewables & Electricity business reached $462 million in the second quarter 2022, up 49% year-on-year due to the growth of the business.

 

4.1.2 Results

 
                          2Q22                                           1H22 
                           vs      In millions of                          vs 
2Q22     1Q22     2Q21     2Q21    dollars             1H22     1H21      1H21 
                                   Adjusted net 
                                   operating 
2,555    3,051    891     x2.9     income*             5,606    1,876    x3 
                                   including 
                                   adjusted income 
                                   from equity 
1,219    1,430    356     x3.4     affiliates          2,649    620      x4.3 
 
                                   Organic 
341      258      759     -55%     investments         599      1,512    -60% 
(58)     641      166     ns       Net acquisitions    583      2,059    -72% 
283      899      925     -69%     Net investments     1,182    3,571    -67% 
 
                                   Operating cash 
                                   flow before 
                                   working capital 
2,360    2,585    904     x2.6     changes **          4,945    1,963    x2.5 
                                   Cash flow from 
3,970    315      567     x7       operations ***      4,285    1,347    x3.2 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects.

 

*** Excluding financial charges, except those related to leases.

 

iGRP's adjusted net operating income was:

   -- $2,555 million in the second quarter 2022, nearly triple year-on-year, 
      thanks to higher LNG prices, the performance of the gas, LNG and 
      electricity trading activities and the growing contribution of the 
      Renewables & Electricity businesses, 
 
   -- $5,606 million in the first half 2022, tripling over one year, for the 
      same reasons. 
 

Cash flow is:

   -- 2.6 times higher over one year to $2,360 million in the second quarter 
      2022, thanks to the increase in LNG prices, the performance of gas, LNG 
      and electricity trading activities, and the increasing contribution of 
      the Renewables & Electricity activities, 
 
   -- 2.5 times higher over one year to $4,945 million in the first half 2022, 
      for the same reasons. 
 

Cash flow from operations was $3,970 million for the quarter, mainly due to margin call reductions and the positive impact on working capital requirements linked to the seasonality of the gas and electricity supply business.

 

4.2 Exploration & Production

 

4.2.1 Production

 
                           2Q22                                          1H22 
                            vs      Hydrocarbon                            vs 
2Q22     1Q22     2Q21      2Q21    production         1H22     1H21      1H21 
2,276    2,351    2,245    +1%      EP (kboe/d)        2,314    2,295    +1% 
1,430    1,467    1,412    +1%      Liquids (kb/d)     1,449    1,428    +1% 
4,602    4,813    4,553    +1%      Gas (Mcf/d)        4,706    4,738    -1% 
 

4.2.2 Results

 
                                    In millions of 
                                    dollars, 
                           2Q22     except                               1H22 
                            vs      effective tax                          vs 
2Q22     1Q22     2Q21      2Q21    rate              1H22      1H21      1H21 
                                    Adjusted net 
                                    operating 
4,719    5,015    2,213    x2.1     income*           9,734     4,188    x2.3 
                                    including 
                                    adjusted 
                                    income from 
                                    equity 
287      355      279      +3%      affiliates        642       549      +17% 
                                    Effective tax 
47.2%    47.0%    38.2%    -        rate**            47.1%     39.5%    - 
 
                                    Organic 
1,873    1,426    1,559    +20%     investments       3,299     2,838    +16% 
                                    Net 
2,225    316      231      x9.6     acquisitions      2,541     29       x87.6 
                                    Net 
4,098    1,742    1,790    x2.3     investments       5,840     2,867    x2 
 
                                    Operating cash 
                                    flow before 
                                    working 
                                    capital 
7,383    7,303    4,262    +73%     changes ***       14,686    8,086    +82% 
                                    Cash flow from 
                                    operations 
8,768    5,768    4,835    +81%     ***               14,536    8,571    +70% 
 

* 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 from Exploration & Production was:

   -- $4,719 million in the second quarter 2022, double the second quarter 
      2021, thanks to the sharp increase in oil and gas prices, 
 
   -- $9,734 million in the first half of 2022, 2.3 times higher than the first 
      half 2021, for the same reasons. 
 

Compared to the first quarter, adjusted net operating income decreased by $296 million due to the decline in production and the impact of sanctions on the results of Russian assets.

 

Cash flow was $7,383 million in the second quarter 2022 compared to $4,262 million a year earlier and is up 82% to $14,686 million in the first half 2022, in line with higher oil and gas prices.

 

4.3 Downstream (Refining & Chemicals and Marketing & Services)

 

4.3.1 Results

 
                           2Q22                                          1H22 
                            vs      In millions of                         vs 
2Q22     1Q22     2Q21      2Q21    dollars            1H22     1H21      1H21 
                                    Adjusted net 
                                    operating 
3,226    1,392    928      x3.5     income*            4,618    1,455    x3.2 
 
                                    Organic 
586      292      468      +25%     investments        878      803      +9% 
                                    Net 
(91)     (34)     (1)      ns       acquisitions       (125)    (104)    ns 
495      258      467      +6%      Net investments    753      699      +8% 
 
                                    Operating cash 
                                    flow before 
                                    working capital 
3,548    1,896    1,460    x2.4     changes **         5,444    2,332    x2.3 
                                    Cash flow from 
4,106    2,005    2,669    +54%     operations **      6,111    4,330    +41% 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

 

** Excluding financial charges, except those related to leases.

 

4.4 Refining & Chemicals

 

4.4.1 Refinery and petrochemicals throughput and utilization rates

 
                                    Refinery 
                           2Q22     throughput and                       1H22 
                            vs      utilization                            vs 
2Q22     1Q22     2Q21      2Q21    rate*              1H22     1H21      1H21 
                                    Total refinery 
                                    throughput 
1,575    1,317    1,070    +47%     (kb/d)             1,448    1,109    +31% 
395      252      148      x2.7     France             324      131      x2.5 
648      605      495      +31%     Rest of Europe     627      578      +8% 
532      460      427      +25%     Rest of world      497      400      +24% 
                                    Utlization rate 
                                    based on crude 
88%      74%      58%               only**             81%      58% 
 

* Includes refineries in Africa reported in the Marketing & Services segment.

 

** Based on distillation capacity at the beginning of the year, excluding Grandpuits (shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021.

 
                                    Petrochemicals 
                           2Q22     production and                       1H22 
                            vs      utilization                            vs 
2Q22     1Q22     2Q21      2Q21    rate               1H22     1H21      1H21 
1,206    1,404    1,424    -15%     Monomers* (kt)     2,611    2,829    -8% 
1,187    1,274    1,212    -2%      Polymers  (kt)     2,461    2,377    +4% 
                                    Vapocracker 
                                    utilization 
71%      86%      88%               rate**             78%      88% 
 

* Olefins.

 

** Based on olefins production from steam crackers and their treatment capacity at the start of the year.

 

Refinery throughput:

   -- Increased by 47% year-on-year in the second quarter 2022, due to the 
      recovery in demand, particularly in Europe and the United States, the 
      restart this quarter of the Donges refinery in France and the Leuna 
      refinery in Germany, which was scheduled for a major turnaround in the 
      second quarter 2021; 
 
   -- Increased by 31% in the first half 2022 over one year for the same 
      reasons as well as the restart, in 2021, of the distillation unit of the 
      Normandy refinery in France. 
 

Monomer production was down 15% in the second quarter 2022 and 8% in the first half 2022 year-on-year, mainly due to planned turnarounds at the Antwerp in Belgium and Feyzin in France as well as construction affecting sites in the U.S.

 

4.4.2 Results

 
                           2Q22                                          1H22 
                            vs      In millions of                         vs 
2Q22     1Q22     2Q21      2Q21    dollars            1H22     1H21      1H21 
                                    Adjusted net 
                                    operating 
2,760    1,120    511      x5.4     income*            3,880    754      x5.1 
 
                                    Organic 
313      197      279      +12%     investments        510      501      +2% 
                                    Net 
(34)     -        2        -100%    acquisitions       (34)     (55)     ns 
279      197      281      -1%      Net investments    476      446      +7% 
 
                                    Operating cash 
                                    flow before 
                                    working capital 
2,963    1,433    753      x3.9     changes **         4,396    1,147    x3.8 
                                    Cash flow from 
3,526    1,107    2,232    +58%     operations **      4,633    3,228    +44% 
 

* 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 and Chemicals segment was exceptional:

   -- $2,760 million in the second quarter 2022, compared to $511 million in 
      the second quarter 2021, due to higher refined volumes in response to the 
      recovery in demand in Europe and the United States, very high margins on 
      distillates and gasoline in the context of reduced imports of Russian 
      petroleum products, as well as the outperformance of crude oil and 
      petroleum product trading activities, 
 
   -- $3,880 million in the first half 2022 compared to a year ago, for the 
      same reasons. 
 

Cash flow also increased sharply to $2,963 million in the second quarter 2022, 3.9 times higher than in the second quarter 2021, and to $4,396 million in the first half 2022.

 

4.5 Marketing & Services

 

4.5.1 Petroleum product sales

 
                           2Q22                                          1H22 
                            vs                                             vs 
2Q22     1Q22     2Q21      2Q21    Sales in kb/d*     1H22     1H21      1H21 
                                    Total Marketing 
                                    & Services 
1,477    1,452    1,473    -        sales              1,464    1,458    - 
817      790      791      +3%      Europe             804      783      +3% 
660      662      682      -3%      Rest of world      661      674      -2% 
 

* Excludes trading and bulk refining sales.

 

Sales of petroleum products were stable in the second quarter 2022 and the first half 2022 compared to the same periods last year, as the recovery in aviation and network activities worldwide offset the decline in sales to commercial and industrial customers, particularly in Europe.

 

4.5.2 Results

 
                        2Q22                                             1H22 
                         vs      In millions of                            vs 
2Q22    1Q22    2Q21     2Q21    dollars               1H22     1H21      1H21 
                                 Adjusted net 
466     272     417     +12%     operating income*     738      701      +5% 
 
                                 Organic 
273     95      189     +44%     investments           368      302      +22% 
(57)    (34)    (3)     ns       Net acquisitions      (91)     (49)     ns 
216     61      186     +16%     Net investments       277      253      +9% 
 
                                 Operating cash 
                                 flow before 
                                 working capital 
585     463     707     -17%     changes **            1,048    1,185    -12% 
                                 Cash flow from 
580     898     437     +33%     operations **         1,478    1,102    +34% 
 

* 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 Marketing & Services segment was $466 million, up 12% year-on-year, and $738 million in the first half, up 5% year-on-year, thanks mainly to the recovery of the network and aviation activities.

 

Cash flow was down 17% year-on-year to $585 million in the second quarter 2022, and 12% to $1,048 million in the first half, mainly due to the fiscal effect of higher prices on the valuation of petroleum product inventories.

 

5. TotalEnergies results

 

5.1 Adjusted net operating income from business segments

 

Segment adjusted net operating income was:

   -- $10,500 million in the second quarter 2022, compared to $4,032 million a 
      year earlier, due to higher oil and gas prices, refining margins and the 
      good performance of trading activities, 
 
   -- $19,958 million in the first half 2022, compared to $7,519 million a year 
      earlier, for the same reasons. 
 

5.2 Adjusted net income (TotalEnergies share)

 

TotalEnergies adjusted net income was $9,796 million in the second quarter 2022 compared to $3,463 million in the second quarter 2021, due to higher oil and gas prices, refining margins and the good performance of trading activities.

 

Adjusted net income excludes the after-tax inventory effect, non-recurring items and the impact of changes in fair value(19) .

 

The net income adjustment items(20) represented an amount of -$4,104 million in the second quarter 2022, notably due to the fact that TotalEnergies recorded in its accounts a new $3.5 billion impairment charge related mainly to the potential impact of international sanctions on the value of its Novatek stake.

 

TotalEnergies' effective tax rate was 39.4% in the second quarter 2022, compared to 38.7% in the first quarter and 34.3% a year earlier due to the increase in the Exploration & Production tax rate in line with the increase in hydrocarbon prices.

 

5.3 Adjusted earnings per share

 

Adjusted diluted net earnings per share were:

   -- $3.75 in the second quarter 2022, calculated based on 2,592 million 
      weighted-average diluted shares, compared to $1.27 a year earlier; 
 
   -- $7.14 in the first half 2022, calculated based on 2,602 million 
      weighted-average diluted shares, compared to $2.38 a year earlier. 
 

As of June 30, 2022, the number of fully-diluted shares was 2,578 million.

 

As part of its shareholder return policy, as announced in April 2022, TotalEnergies repurchased 36.1 million shares for cancellation in the second quarter of 2022 for $2 billion. Share buybacks amounted to $3 billion in the first half of the year.

 

5.4 Acquisitions - asset sales

 

Acquisitions were:

   -- $2,464 million in the second quarter 2022, including notably $2,232 
      million in payments to Petrobras related to the award of the Atapu and 
      Sepia Production Sharing Contracts in Brazil as well as the bonus related 
      to the offshore wind concession in North Carolina in the U.S., 
 
   -- $3,864 million in the first half 2022, including the above items as well 
      as the bonus paid to the State of Brazil for the award of the Atapu and 
      Sepia Production Sharing Contracts and the bonus related to the New York 
      Bight offshore wind concession in the United States. 
 

Asset sales were:

   -- $388 million in the second quarter 2022, including the partial sale of 
      the Landivisiau power generation plant in France, 
 
   -- $866 million in the first half 2022, including the above items as well as 
      a payment related to the sale of interests in the CA1 offshore block in 
      Brunei and the sale by SunPower of its Enphase shares. 
 

5.5 Net cash flow

 

TotalEnergies' net cash flow(21) is as follows:

   -- $8,338 million in the second quarter 2022 compared to $3,154 million a 
      year earlier, reflecting the $6.9 billion increase in cash flow and the 
      $1.7 billion increase in net investments to $4,895 million in the second 
      quarter 2022, 
 
   -- $17,061 million in the first half 2022 compared to $4,551 million a year 
      earlier, reflecting the $13.1 billion increase in cash flow and the $631 
      million increase in net investments to $7,798 million in the first half 
      2022. 
 

Cash flow from operations was $16,284 million in the second quarter, compared to cash flow of $13,233 million, reflecting the positive impact of a $3.3 billion decrease in working capital requirements, mainly due to changes in margin calls, an increase in tax liabilities related to higher prices, and the seasonality of the gas and electricity supply activity.

 

5.6 Profitability

 

Return on equity was 27.1% for the twelve months ended June 30, 2022.

 
In millions of 
dollars               July 1, 2021   April 1, 2021   July 1, 2020 
                      June 30, 2022  March 31, 2022  June 30, 2021 
Adjusted net income   30,716         24,382          8,786 
Average adjusted 
 shareholders' 
 equity               113,333        111,794         105,066 
Return on equity 
 (ROE)                27.1%          21.8%           8.4% 
 

The return on average capital employed was 23.1% for the twelve months ended June 30, 2022.

 
In millions of 
dollars               July 1, 2021   April 1, 2021   July 1, 2020 
                      June 30, 2022  March 31, 2022  June 30, 2021 
Adjusted net 
 operating income     32,177         25,803          10,252 
Average capital 
 employed             139,377        143,517         142,172 
ROACE                 23.1%          18.0%           7.2% 
 

6. TotalEnergies SE statutory accounts

 

Net income for TotalEnergies SE, the parent company, was EUR3,702 million in the first half 2022, compared to EUR4,568 million in the first quarter 2021.

 

7. 2022 Sensitivities*

 
2022 
sensitivities* 
                                      Estimated impact 
                                      on adjusted net   Estimated impact 
                                      operating         on cash flow 
                    Change            income            from operations 
                    +/- 0.1 $ per 
Dollar              EUR               -/+ 0.1 B$        0 B$ 
Average liquids 
 price**            +/- 10 $/b        +/- 2.7 B$        +/- 3.2 B$ 
European gas price 
 - NBP              +/- 10 $/Mbtu     +/- 3.0 B$        +/- 3.0 B$ 
Variable cost 
 margin, European 
 refining (VCM)     +/- 10 $/t        +/- 0.4 B$        +/- 0.5 B$ 
 

* Sensitivities are revised once per year upon publication of the previous year's fourth quarter results. Sensitivities are estimates based on assumptions about TotalEnergies' portfolio in 2022. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-EUR sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 21.

 

** In a 60 $/b Brent environment.

 

8. Summary and outlook

 

Oil and gas prices, while volatile, have remained at high levels since the beginning of the third quarter. Due to the limited additional spare capacity of production and refining at the global level, market disruptions linked to the sanctions against Russia and the counter-sanctions implemented by Russia, the supply-demand balance of energy markets are expected to remain fragile and support prices, especially gas.

 

In the oil markets however, the price of Brent retreated to a level close to $100/bbl in July, due to negative expectations on global growth, and therefore on oil demand, in response to high energy prices and inflation.

 

Gas prices are expected to remain high, particularly in Europe where gas indices exceeded $50/Mbtu in early July for winter 2022-23 futures contracts, due to fears of a shutdown in pipeline exports from Russia to Europe. Local electricity markets are also impacted by gas prices.

 

The Company is mobilizing its human and financial resources to contribute to the diversification of Europe's gas supply by maximizing the use of its LNG regasification capacity. Given the evolution of oil and gas prices in recent months and the lag effect on pricing formulas, TotalEnergies anticipates that its average LNG selling price should be more than $15/Mbtu in the third quarter of 2022. However, the Company's LNG operations will be affected by the outage of the Freeport LNG plant in the third quarter.

 

Despite the approximately 40 kboe/d increase in planned maintenance in the third quarter compared to the second quarter, TotalEnergies expects production to be stable compared to the second quarter due to the contribution of new projects, notably in Brazil with the production ramp-up of Mero 1 and the entry into Sépia and Atapu. The Refining business aims to maintain a high utilization rate.

 

With nearly $8 billion in investments recorded at the end of June, TotalEnergies anticipates net investments of around $16 billion in 2022, 25% of which will be in Renewables & Electricity.

 

Given the strong cash flow generation and strong balance sheet, the Board of Directors has decided to prioritize countercyclical opportunities to accelerate the Company's transformation. The shareholder return policy is reinforced through dividend growth of 5% and the continuation of the share buyback program of $2 billion in the third quarter.

 

* * * *

 

To listen to the conference call with CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 13:30 (Paris time) please log on to totalenergies.com or call +44 (0) 207 194 3759 in Europe or +1 (646) 722-4916 in the United States (code: 47289312). The conference replay will be available on totalenergies.com after the event.

 

* * * *

 

9. Results from Russian assets

 
Russian Upstream Assets (M$)                 2Q22  1Q22   1H22   2021 
Adjusted net operating income                707   1,021  1,727  2,092 
Operating cash flow before working capital 
 changes                                     857   288    1,144  1,613 
 

Capital Employed by TotalEnergies in Russia as at June 30, 2022 was $8,760 million, after taking into account the $3,513 million impairment and the impact of the evolution of the ruble/dollar exchange rate between March 31, 2022 and June 30, 2022, which leads to a $2,066 million revaluation of Capital Employed on the balance sheet as at June 30, 2022.

 

10. Operating information by segment

 

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

 
                                    Combined 
                                    liquids and gas 
                           2Q22     production by                        1H22 
                            vs      region                                 vs 
2Q22     1Q22     2Q21      2Q21    (kboe/d)           1H22     1H21      1H21 
                                    Europe and 
965      1,050    985      -2%      Central Asia       1,007    1,018    -1% 
460      498      533      -14%     Africa             479      542      -12% 
                                    Middle East and 
680      670      654      +4%      North Africa       675      652      +3% 
420      386      378      +11%     Americas           403      377      +7% 
213      240      197      +8%      Asia-Pacific       227      216      +5% 
                                    Total 
2,738    2,843    2,747    -        production         2,791    2,805    - 
                                    includes equity 
690      715      750      -8%      affiliates         702      740      -5% 
 
                           2Q22     Liquids                              1H22 
                            vs      production by                          vs 
2Q22     1Q22     2Q21      2Q21    region (kb/d)      1H22     1H21      1H21 
                                    Europe and 
315      373      351      -10%     Central Asia       343      363      -5% 
351      371      399      -12%     Africa             362      407      -11% 
                                    Middle East and 
546      538      502      +9%      North Africa       542      500      +8% 
231      201      183      +26%     Americas           216      181      +19% 
40       45       29       +36%     Asia-Pacific       42       35       +21% 
                                    Total 
1,483    1,527    1,464    +1%      production         1,505    1,486    +1% 
                                    includes equity 
201      210      213      -6%      affiliates         206      207      -1% 
 
                           2Q22     Gas production                       1H22 
                            vs      by region                              vs 
2Q22     1Q22     2Q21      2Q21    (Mcf/d)            1H22     1H21      1H21 
                                    Europe and 
3,492    3,635    3,411    +2%      Central Asia       3,563    3,523    +1% 
545      643      680      -20%     Africa             594      686      -13% 
                                    Middle East and 
742      727      847      -12%     North Africa       734      845      -13% 
1,063    1,041    1,095    -3%      Americas           1,052    1,098    -4% 
993      1,116    984      +1%      Asia-Pacific       1,054    1,056    - 
                                    Total 
6,835    7,162    7,017    -3%      production         6,997    7,208    -3% 
                                    includes equity 
2,633    2,714    2,895    -9%      affiliates         2,673    2,875    -7% 
 

10.2 Downstream (Refining & Chemicals and Marketing & Services)

 
                                    Petroleum 
                           2Q22     product sales                        1H22 
                            vs      by region                              vs 
2Q22     1Q22     2Q21      2Q21    (kb/d)             1H22     1H21      1H21 
1,814    1,635    1,521    +19%     Europe             1,724    1,540    +12% 
734      761      663      +11%     Africa             747      665      +12% 
922      775      799      +15%     Americas           849      785      +8% 
705      531      492      +44%     Rest of world      618      493      +25% 
                                    Total 
                                    consolidated 
4,176    3,701    3,475    +20%     sales              3,939    3,483    +13% 
                                    Includes bulk 
409      409      334      +22%     sales              409      368      +11% 
                                    Includes 
2,290    1,840    1,668    +37%     trading            2,065    1,658    +25% 
 
                           2Q22     Petrochemicals                       1H22 
                            vs      production*                            vs 
2Q22     1Q22     2Q21      2Q21    (kt)               1H22     1H21      1H21 
1,023    1,260    1,166    -12%     Europe             2,282    2,512    -9% 
603      638      725      -17%     Americas           1,240    1,235    - 
                                    Middle East and 
768      781      744      +3%      Asia               1,549    1,459    +6% 
 

* Olefins, polymers.

 

10.3 Renewables

 
Installed 
power 
generation 
gross 
capacity (GW)          Onshore  Offshore                       Onshore  Offshore 
(1),(2)         Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total 
France          0.7    0.5      0.0       0.1    1.3    0.7    0.5      0.0       0.1    1.3 
Rest of Europe  0.2    1.1      0.0       0.0    1.3    0.2    1.0      0.0       0.0    1.3 
Africa          0.1    0.0      0.0       0.0    0.1    0.1    0.0      0.0       0.0    0.1 
Middle East     0.7    0.0      0.0       0.0    0.7    0.3    0.0      0.0       0.0    0.3 
North America   1.1    0.0      0.0       0.0    1.1    0.9    0.0      0.0       0.0    0.9 
South America   0.4    0.3      0.0       0.0    0.7    0.4    0.3      0.0       0.0    0.7 
India           4.9    0.2      0.0       0.0    5.1    4.8    0.2      0.0       0.0    5.0 
Asia-Pacific    1.2    0.0      0.1       0.0    1.2    1.0    0.0      0.1       0.0    1.1 
Total           9.2    2.1      0.1       0.2    11.6   8.4    2.1      0.1       0.1    10.7 
 
                2Q22                                    1Q22 
Power 
generation 
gross 
capacity from 
renewables in 
construction           Onshore  Offshore                       Onshore  Offshore 
(GW) (1),(2)    Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total 
France          0.2    0.2      0.0       0.1    0.4    0.1    0.2      0.0       0.1    0.4 
Rest of Europe  0.0    0.0      1.1       0.0    1.1    0.0    0.0      1.1       0.0    1.2 
Africa          0.0    0.0      0.0       0.0    0.0    0.0    0.0      0.0       0.0    0.0 
Middle East     0.4    0.0      0.0       0.0    0.4    0.8    0.0      0.0       0.0    0.8 
North America   1.3    0.0      0.0       0.0    1.3    1.5    0.0      0.0       0.0    1.5 
South America   0.0    0.0      0.0       0.0    0.0    0.0    0.0      0.0       0.0    0.0 
India           0.9    0.3      0.0       0.0    1.2    1.0    0.3      0.0       0.0    1.3 
Asia-Pacific    0.1    0.0      0.6       0.0    0.7    0.3    0.0      0.6       0.0    0.9 
Total           2.8    0.5      1.7       0.1    5.2    3.7    0.6      1.7       0.1    6.1 
 
                2Q22                                    1Q22 
Power 
generation 
gross 
capacity from 
renewables in 
development            Onshore  Offshore                       Onshore  Offshore 
(GW) (1),(2)    Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total 
France          2.3    0.5      0.0       0.0    2.8    2.8    0.5      0.0       0.0    3.3 
Rest of Europe  4.8    0.3      4.4       0.1    9.5    4.7    0.3      4.4       0.0    9.3 
Africa          0.6    0.1      0.0       0.1    0.8    0.7    0.1      0.0       0.1    0.9 
Middle East     1.8    0.0      0.0       0.0    1.8    1.6    0.0      0.0       0.0    1.6 
North America   6.2    0.1      4.0       0.8    11.0   2.0    0.1      3.0       0.7    5.9 
South America   0.6    0.0      0.0       0.2    0.8    0.7    0.3      0.0       0.2    1.2 
India           3.9    0.1      0.0       0.0    4.0    4.0    0.1      0.0       0.0    4.1 
Asia-Pacific    1.7    0.2      1.2       0.1    3.2    1.4    0.0      2.1       0.1    3.6 
Total           21.7   1.3      9.6       1.3    33.9   17.9   1.5      9.5       1.2    30.1 
 

(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.

 

(2) End-of-period data.

 
              In operation                            In construction                         In development 
Gross 
renewables 
capacity 
covered by 
PPA at 
06/30/2022           Onshore  Offshore                       Onshore  Offshore                       Onshore  Offshore 
(GW)          Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total 
Europe        0.9    1.6      -         X      2.6    X      X        0.8       X      1.2    3.4    0.2      -         X      3.6 
Asia          6.0    0.2      X         X      6.4    0.9    0.3      0.6       -      1.8    4.3    X        -         X      4.5 
North 
 America      1.0    X        -         X      1.1    1.3    -        -         X      1.3    X      X        -         X      X 
Rest of 
 World        1.2    0.3      -         X      1.5    0.4    -        -         X      0.5    1.9    -        -         0.3    2.2 
Total         9.2    2.1      X         X      11.5   2.8    0.5      1.4       X      4.8    9.7    0.3      -         0.5    10.5 
 

X not specified, capacity < 0.2 GW.

 
              In operation                            In construction                         In development 
PPA average 
price at 
06/30/2022           Onshore  Offshore                       Onshore  Offshore                       Onshore  Offshore 
($/MWh)       Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total  Solar   Wind     Wind     Other  Total 
Europe        201    115      -         X      145    X      X        72        X      75     44     85       -         X      46 
Asia          70     43       X         X      70     55     51       254       -      115    39     X        -         X      39 
North 
 America      121    X        -         X      125    28     -        -         X      28     X      X        -         X      X 
Rest of 
 World        90     54       -         X      82     18     -        -         X      18     76     -        -         -      76 
Total         90     100      X         X      93     38     64       146       X      73     43     81       -         145    45 
 

X not specified, PPA relating to a capacity < 0.2 GW.

 

11. Adjustment items to net income (TotalEnergies share)

 
2Q22       1Q22       2Q21       In millions of dollars     1H22       1H21 
                                 Special items affecting 
                                 net income 
(4,546)    (4,993)    (1,588)    (TotalEnergies share)      (9,539)    (1,930) 
                                 Gain (loss) on asset 
-          -          (1,379)    sales                      -          (1,379) 
(8)        (3)        (110)      Restructuring charges      (11)       (271) 
(3,719)    (5,061)    (49)       Impairments                (8,780)    (193) 
(819)      71         (50)       Other                      (748)      (87) 
                                 After-tax inventory 
                                 effect : FIFO vs. 
993        1,040      375        replacement cost           2,033      1,064 
                                 Effect of changes in 
(551)      (80)       (44)       fair value                 (631)      (50) 
                                 Total adjustments 
(4,104)    (4,033)    (1,257)    affecting net income       (8,137)    (916) 
 

12. Reconciliation of adjusted EBITDA with consolidated financial statements

 

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

 
                             2Q22                                           1H22 
                             vs      In millions of                          vs 
2Q22      1Q22      2Q21     2Q21    dollars            1H22      1H21      1H21 
                                     Net income - 
                                     TotalEnergies 
5,692     4,944     2,206    x2.6    share              10,636    5,550     +92% 
                                     Less: 
                                     adjustment 
                                     items to net 
                                     income 
                                     (TotalEnergies 
4,104     4,033     1,257    x3.3    share)             8,137     916       x8.9 
                                     Adjusted net 
                                     income - 
                                     TotalEnergies 
9,796     8,977     3,463    x2.8    share              18,773    6,466     x2.9 
                                     Adjusted items     -         -         - 
                                     Add: 
                                     non-controlling 
89        76        88       +1%     interests          165       147       +12% 
                                     Add: income 
5,274     4,724     1,485    x3.6    taxes              9,998     2,931     x3.4 
                                     Add: 
                                     depreciation, 
                                     depletion and 
                                     impairment of 
                                     tangible assets 
                                     and mineral 
3,038     3,148     3,105    -2%     interests          6,186     6,285     -2% 
                                     Add: 
                                     amortization 
                                     and impairment 
                                     of intangible 
98        96        94       +4%     assets             194       197       -2% 
                                     Add: financial 
                                     interest on 
572       462       501      +14%    debt               1,034     967       +7% 
                                     Less: financial 
                                     income and 
                                     expense from 
                                     cash & cash 
(130)     (59)      (69)     ns      equivalents        (189)     (156)     ns 
18,737    17,424    8,667    x2.2    Adjusted EBITDA    36,161    16,837    x2.1 
 

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

 
                                    2Q22                                               1H22 
                                    vs      In millions of                              vs 
2Q22        1Q22        2Q21        2Q21    dollars            1H22        1H21        1H21 
                                            Adjusted items 
                                            Revenues from 
70,460      63,938      41,642      +69%    sales              134,398     80,310      +67% 
                                            Purchases, net 
                                            of inventory 
(46,023)    (40,762)    (27,108)    ns      variation          (86,785)    (51,397)    ns 
                                            Other operating 
(7,620)     (7,409)     (6,708)     ns      expenses           (15,029)    (13,576)    ns 
                                            Exploration 
(117)       (136)       (123)       ns      costs              (253)       (290)       ns 
429         121         138         x3.1    Other income       550         554         -1% 
                                            Other expense, 
                                            excluding 
                                            amortization 
                                            and impairment 
                                            of intangible 
(431)       (173)       (48)        ns      assets             (604)       (137)       ns 
                                            Other financial 
231         119         265         -13%    income             350         374         -6% 
                                            Other financial 
(136)       (135)       (131)       ns      expense            (271)       (261)       ns 
                                            Net income 
                                            (loss) from 
                                            equity 
1,944       1,861       740         x2.6    affiliates         3,805       1,260       x3 
18,737      17,424      8,667       x2.2    Adjusted EBITDA    36,161      16,837      x2.1 
                                            Adjusted items 
                                            Less: 
                                            depreciation, 
                                            depletion and 
                                            impairment of 
                                            tangible assets 
                                            and mineral 
(3,038)     (3,148)     (3,105)     ns      interests          (6,186)     (6,285)     ns 
                                            Less: 
                                            amortization of 
                                            intangible 
(98)        (96)        (94)        ns      assets             (194)       (197)       ns 
                                            Less: financial 
                                            interest on 
(572)       (462)       (501)       ns      debt               (1,034)     (967)       ns 
                                            Add: financial 
                                            income and 
                                            expense from 
                                            cash & cash 
130         59          69          +88%    equivalents        189         156         +21% 
                                            Less: income 
(5,274)     (4,724)     (1,485)     ns      taxes              (9,998)     (2,931)     ns 
                                            Less: 
                                            non-controlling 
(89)        (76)        (88)        ns      interests          (165)       (147)       ns 
                                            Add: adjustment 
                                            - TotalEnergies 
(4,104)     (4,033)     (1,257)     ns      share              (8,137)     (916)       ns 
                                            Net income - 
                                            TotalEnergies 
5,692       4,944       2,206       x2.6    share              10,636      5,550       +92% 
 

13. Investments - Divestments

 
                           2Q22                                          1H22 
                            vs      In millions of                         vs 
2Q22     1Q22     2Q21      2Q21    dollars            1H22     1H21      1H21 
                                    Organic 
                                    investments ( a 
2,819    1,981    2,802    +1%      )                  4,800    5,181    -7% 
                                    Capitalized 
98       114      245      -60%     exploration        212      488      -57% 
                                    Increase in 
                                    non-current 
277      234      380      -27%     loans              511      672      -24% 
                                    Repayment of 
                                    non-current 
                                    loans, 
                                    excluding 
                                    organic loan 
                                    repayment from 
                                    equity 
(174)    (435)    (89)     ns       affiliates         (609)    (185)    ns 
                                    Change in debt 
                                    from renewable 
                                    projects 
                                    (TotalEnergies 
(190)    -        (4)      -100%    share)             (190)    (171)    ns 
                                    Acquisitions ( 
2,464    1,400    662      x3.7     b )                3,864    2,870    +35% 
                                    Asset sales ( c 
388      478      266      +46%     )                  866      884      -2% 
                                    Change in debt 
                                    from renewable 
                                    projects 
                                    (partner 
176      (2)      5        x35.2    share)             174      105      +66% 
                                    Net 
2,076    922      396      x5.2     acquisitions       2,998    1,986    +51% 
                                    Net investments 
4,895    2,903    3,198    +53%     ( a + b - c )      7,798    7,167    +9% 
-        -        -        ns       Other              -        -        ns 
                                    transactions 
                                    with 
                                    non-controlling 
                                    interests ( d 
                                    ) 
(238)    (487)    (78)     ns       Organic loan       (725)    (108)    ns 
                                    repayment from 
                                    equity 
                                    affiliates ( e 
                                    ) 
366      (2)      9        x40.7    Change in debt     364      276      +32% 
                                    from renewable 
                                    projects 
                                    financing * ( f 
                                    ) 
37       36       25       +48%     Capex linked to    73       47       +55% 
                                    capitalized 
                                    leasing 
                                    contracts ( g 
                                    ) 
4        -        -        ns       Expenditures       4        -        ns 
                                    related to 
                                    carbon credits 
                                    ( h ) 
4,982    2,378    3,104    +61%     Cash flow used     7,360    7,288    +1% 
                                    in investing 
                                    activities ( a 
                                    + b - c + d + e 
                                    + f - g - h ) 
 

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

 

14. Cash flow

 
                              2Q22                                         1H22 
                              vs      In millions                           vs 
2Q22      1Q22       2Q21     2Q21    of dollars      1H22       1H21      1H21 
                                      Operating 
                                      cash flow 
                                      before 
                                      working 
                                      capital 
                                      changes w/o 
                                      financial 
                                      charges 
13,631    11,995     6,761    x2      (DACF)          25,626     12,511    x2 
                                      Financial 
(399)     (369)      (409)    ns      charges         (767)      (793)     ns 
                                      Operating 
                                      cash flow 
                                      before 
                                      working 
                                      capital 
                                      changes ( a 
13,233    11,626     6,352    x2.1    ) *             24,859     11,718    x2.1 
                                      (Increase) 
                                      decrease in 
                                      working 
2,161     (4,775)    814      x2.7    capital **      (2,614)    259       ns 
                                      Inventory 
1,151     1,255      463      x2.5    effect          2,406      1,346     +79% 
                                      Capital gain 
                                      from 
                                      renewable 
                                      project 
(23)      (2)        (0)      ns      sales           (25)       (66)      ns 
                                      Organic loan 
                                      repayments 
                                      from equity 
(238)     (487)      (78)     ns      affiliates      (725)      (108)     ns 
                                      Cash flow 
                                      from 
16,284    7,617      7,551    x2.2    operations      23,901     13,149    +82% 
 
                                      Organic 
                                      investments 
2,819     1,981      2,802    +1%     ( b )           4,800      5,181     -7% 
                                      Free cash 
                                      flow after 
                                      organic 
                                      investments, 
                                      w/o net 
                                      asset sales 
10,414    9,645      3,550    x2.9    ( a - b )       20,059     6,537     x3.1 
 
                                      Net 
                                      investments 
4,895     2,903      3,198    +53%    ( c )           7,798      7,167     +9% 
                                      Net cash 
                                      flow ( a - c 
8,338     8,723      3,154    x2.6    )               17,061     4,551     x3.7 
 

* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP's contracts and including capital gain from renewable projects sale.

Historical data have been restated to cancel the impact of fair valuation of iGRP sector's contracts.

 

** Changes in working capital are presented excluding the mark-to-market effect of iGRP's contracts.

 

15. Gearing ratio

 
In millions of dollars                06/30/2022  03/31/2022  06/30/2021 
Current borrowings (1)                14,589      16,759      15,795 
Other current financial liabilities   401         502         322 
Current financial assets (1),(2)      (7,697)     (7,231)     (4,326) 
Net financial assets classified as 
 held for sale                        (14)        (38)        - 
Non-current financial debt (1)        39,233      38,924      44,687 
Non-current financial assets (1)      (692)       (587)       (2,726) 
Cash and cash equivalents             (32,848)    (31,276)    (28,643) 
Net debt (a)                          12,972      17,053      25,109 
 
Shareholders' equity - TotalEnergies 
 share                                116,688     116,480     108,096 
Non-controlling interests             3,309       3,375       2,480 
Shareholders' equity (b)              119,997     119,855     110,576 
 
Net-debt-to-capital ratio = a / 
 (a+b)                                9.8%        12.5%       18.5% 
 
Leases (c)                            7,963       8,028       7,702 
Net-debt-to-capital ratio including 
 leases (a+c) / (a+b+c)               14.9%       17.3%       22.9% 
 

(1) Excludes leases receivables and leases debts.

 

(2) Including initial margins held as part of the Company's activities on organized markets.

 

16. Return on average capital employed

 

Twelve months ended June 30, 2022

 
               Integrated 
               Gas,        Exploration  Refining   Marketing 
In millions    Renewables  &            &          & 
of dollars     & Power     Production   Chemicals  Services   Company 
Adjusted net 
 operating 
 income        9,973       15,985       5,035      1,655      32,177 
Capital 
 employed at 
 06/30/2021*   49,831      76,013       9,285      8,439      141,720 
Capital 
 employed at 
 06/30/2022*   54,174      70,248       7,958      7,475      137,035 
ROACE          19.2%       21.9%        58.4%      20.8%      23.1% 
 

Twelve months ended March 31, 2022

 
               Integrated 
               Gas,        Exploration  Refining   Marketing 
In millions    Renewables  &            &          & 
of dollars     & Power     Production   Chemicals  Services   Company 
Adjusted net 
 operating 
 income        8,309       13,479       2,786      1,606      25,803 
Capital 
 employed at 
 03/31/2021*   48,423      78,170       10,403     8,198      145,180 
Capital 
 employed at 
 03/31/2022*   54,740      71,518       8,847      7,751      141,853 
ROACE          16.1%       18.0%        28.9%      20.1%      18.0% 
 

Twelve months ended June 30, 2021

 
               Integrated 
               Gas,        Exploration  Refining   Marketing 
In millions    Renewables  &            &          & 
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% 
 

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

 

Disclaimer:

 

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

 

This document does not constitute the half-year financial report, which will be separately published in accordance with article L. 451-1-2-III of the French Code monétaire et financier and applicable UK law, and available on the website totalenergies.com. This press release presents the results for the second quarter of 2022 and half-year 2022 from the consolidated financial statements of TotalEnergies SE as of June 30, 2022. The limited review procedures by the Statutory Auditors are underway. The notes to the consolidated financial statements (unaudited) are available on the website totalenergies.com.

 

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business activities and industrial strategy of TotalEnergies. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of TotalEnergies, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by TotalEnergies, it being specified that the means to be deployed do not depend solely on TotalEnergies. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as "envisions", "intends", "anticipates", "believes", "considers", "plans", "expects", "thinks", "targets", "aims" or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by TotalEnergies as of the date of this document.

 

These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.

 

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

 

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

 

These adjustment items include:

 

(i) Special items

 

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

 

(ii) Inventory valuation effect

 

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

 

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

 

(iii) Effect of changes in fair value

 

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

 

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

 

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

 

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

 

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

 

Euro amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar (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 SE, 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.

(1) Definition on page 3.

(2) Excluding leases.

(3) Cash flow less net investments, less dividends paid and share buybacks.

(4) Some of the transactions mentioned in the highlights remain subject to the agreement of the authorities or to the fulfilment of conditions precedent under the terms of the agreements.

(5) 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 16.

(6) 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.

(7) 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).

(8) 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

(9) Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.

(10) Net acquisitions = acquisitions -- assets sales -- other transactions with non-controlling interests (see page 18).

(11) Net investments = organic investments + net acquisitions (see page 18).

(12) 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.

The inventory valuation effect is explained on page 20. The reconciliation table for different cash flow figures is on page 18.

(13) DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges

(14) 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.

(15) Scope 1+2 GHG emissions of operated facilities are defined as the sum of direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting (as defined in the Company's 2021 Universal Registration Document) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H(2) ).

(16) TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use by customers of energy products, i.e., combustion of the products to obtain energy. The Company follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil and gas value chain, i.e., the higher of the two production volumes or sales to end customers. For TotalEnergies, in 2021 and 2022, the calculation of Scope 3 GHG emissions for the oil value chain considers oil products and biofuels sales (higher than production) and for the gas value chain, gas sales either as LNG or as part of direct sales to B2B/B2C customers (higher than or equivalent to marketable gas production).

(17) Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the sale of petroleum products (including biofuels).

(18) Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 GHG emissions of facilities operated by the Company and indirect GHG emissions related to the use by customers of energy products (Scope 3) in the EU, Norway, United Kingdom and Switzerland.

(19) These adjustment elements are explained page 20.

(20) Total adjustment items in net income are detailed page 16 as well as in the annexes to the accounts

 

(21) Net cash fow = cash flow -- net investments (including other transactions with non-controlling interest).

TotalEnergies financial statements

______________________

 

Second quarter and first half 2022 consolidated accounts, IFRS

 
CONSOLIDATED STATEMENT OF INCOME 
TotalEnergies 
(unaudited) 
                           2(nd) quarter  1(st) quarter  2(nd) quarter 
(M$)(a)                    2022           2022           2021 
 
Sales                      74,774         68,606         47,049 
Excise taxes               (4,329)        (4,656)        (5,416) 
 Revenues from sales       70,445         63,950         41,633 
 
Purchases, net of 
 inventory variation       (45,443)       (39,648)       (26,719) 
Other operating expenses   (8,041)        (7,623)        (6,717) 
Exploration costs          (117)          (861)          (123) 
Depreciation, depletion 
 and impairment of 
 tangible assets and 
 mineral interests         (3,102)        (3,679)        (3,121) 
Other income               429            143            223 
Other expense              (1,305)        (2,290)        (298) 
 
Financial interest on 
 debt                      (572)          (462)          (501) 
Financial income and 
 expense from cash & 
 cash equivalents          245            214            77 
 Cost of net debt          (327)          (248)          (424) 
 
Other financial income     231            203            265 
Other financial expense    (136)          (135)          (131) 
 
Net income (loss) from 
 equity affiliates         (1,546)        43             (680) 
 
Income taxes               (5,284)        (4,804)        (1,609) 
Consolidated net income    5,804          5,051          2,299 
TotalEnergies share        5,692          4,944          2,206 
Non-controlling 
 interests                 112            107            93 
Earnings per share ($)     2.18           1.87           0.80 
Fully-diluted earnings 
 per share ($)             2.16           1.85           0.80 
(a) Except for per share 
 amounts. 
 
 
 
CONSOLIDATED STATEMENT OF 
COMPREHENSIVE INCOME 
TotalEnergies 
(unaudited) 
                             2(nd) quarter  1(st) quarter  2(nd) quarter 
(M$)                         2022           2022           2021 
Consolidated net income      5,804          5,051          2,299 
 
Other comprehensive income 
 
Actuarial gains and losses   204            -              449 
Change in fair value of 
 investments in equity 
 instruments                 (20)           3              56 
Tax effect                   (53)           11             (142) 
Currency translation 
 adjustment generated by 
 the parent company          (5,387)        (1,750)        1,239 
Items not potentially 
 reclassifiable to profit 
 and loss                    (5,256)        (1,736)        1,602 
Currency translation 
 adjustment                  2,523          1,012          (746) 
Cash flow hedge              3,222          (263)          (424) 
Variation of foreign 
 currency basis spread       21             49             (4) 
share of other 
 comprehensive income of 
 equity affiliates, net 
 amount                      2,548          (84)           (18) 
Other                        (1)            -              (1) 
Tax effect                   (1,112)        53             100 
Items potentially 
 reclassifiable to profit 
 and loss                    7,201          767            (1,093) 
Total other comprehensive 
 income (net amount)         1,945          (969)          509 
 
Comprehensive income         7,749          4,082          2,808 
TotalEnergies share          7,705          3,953          2,670 
Non-controlling interests    44             129            138 
 
 
 
CONSOLIDATED STATEMENT OF INCOME 
TotalEnergies 
(unaudited) 
                                                  1(st) half  1(st) half 
(M$)(a)                                           2022        2021 
 
Sales                                             143,380     90,786 
Excise taxes                                      (8,985)     (10,520) 
 Revenues from sales                              134,395     80,266 
 
Purchases, net of inventory variation             (85,091)    (50,117) 
Other operating expenses                          (15,664)    (13,597) 
Exploration costs                                 (978)       (290) 
Depreciation, depletion and impairment of 
 tangible assets and mineral interests            (6,781)     (6,446) 
Other income                                      572         581 
Other expense                                     (3,595)     (957) 
 
Financial interest on debt                        (1,034)     (967) 
Financial income and expense from cash & cash 
 equivalents                                      459         172 
 Cost of net debt                                 (575)       (795) 
 
Other financial income                            434         374 
Other financial expense                           (271)       (261) 
 
Net income (loss) from equity affiliates          (1,503)     201 
 
Income taxes                                      (10,088)    (3,248) 
Consolidated net income                           10,855      5,711 
TotalEnergies share                               10,636      5,550 
Non-controlling interests                         219         161 
Earnings per share ($)                            4.04        2.04 
Fully-diluted earnings per share ($)              4.02        2.03 
(a) Except for per share amounts. 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
TotalEnergies 
(unaudited) 
                                                    1(st) half  1(st) half 
(M$)                                                2022        2021 
Consolidated net income                             10,855      5,711 
 
Other comprehensive income 
 
Actuarial gains and losses                          204         449 
Change in fair value of investments in equity 
 instruments                                        (17)        68 
Tax effect                                          (42)        (154) 
Currency translation adjustment generated by the 
 parent company                                     (7,137)     (2,934) 
Items not potentially reclassifiable to profit and 
 loss                                               (6,992)     (2,571) 
Currency translation adjustment                     3,535       1,777 
Cash flow hedge                                     2,959       80 
Variation of foreign currency basis spread          70          (4) 
share of other comprehensive income of equity 
 affiliates, net amount                             2,464       451 
Other                                               (1)         - 
Tax effect                                          (1,059)     (57) 
Items potentially reclassifiable to profit and 
 loss                                               7,968       2,247 
Total other comprehensive income (net amount)       976         (324) 
 
Comprehensive income                                11,831      5,387 
TotalEnergies share                                 11,658      5,212 
Non-controlling interests                           173         175 
 
 
 
CONSOLIDATED 
BALANCE SHEET 
TotalEnergies 
                   June 30,     March 31,    December 31,  June 30, 
                    2022         2022         2021          2021 
(M$)               (unaudited)  (unaudited)                (unaudited) 
 
ASSETS 
 
Non-current 
assets 
Intangible 
 assets, net       37,020       32,504       32,484        33,359 
Property, plant 
 and equipment, 
 net               101,454      104,450      106,559       106,791 
Equity affiliates 
 : investments 
 and loans         28,210       29,334       31,053        29,712 
Other investments  1,383        1,490        1,625         2,247 
Non-current 
 financial 
 assets            1,612        1,490        2,404         3,778 
Deferred income 
 taxes             4,737        5,299        5,400         6,578 
Other non-current 
 assets            3,075        3,033        2,797         2,800 
Total non-current 
 assets            177,491      177,600      182,322       185,265 
 
Current assets 
Inventories, net   28,542       24,456       19,952        19,162 
Accounts 
 receivable, net   30,796       32,000       21,983        17,192 
Other current 
 assets            55,553       50,976       35,144        17,585 
Current financial 
 assets            7,863        7,415        12,315        4,404 
Cash and cash 
 equivalents       32,848       31,276       21,342        28,643 
Assets classified 
 as held for 
 sale              313          856          400           456 
Total current 
 assets            155,915      146,979      111,136       87,442 
Total assets       333,406      324,579      293,458       272,707 
 
LIABILITIES & 
SHAREHOLDERS' 
EQUITY 
 
Shareholders' 
equity 
Common shares      8,163        8,137        8,224         8,224 
Paid-in surplus 
 and retained 
 earnings          125,554      123,008      117,849       110,967 
Currency 
 translation 
 adjustment        (14,019)     (13,643)     (12,671)      (11,087) 
Treasury shares    (3,010)      (1,022)      (1,666)       (8) 
Total 
 shareholders' 
 equity - 
 TotalEnergies 
 share             116,688      116,480      111,736       108,096 
Non-controlling 
 interests         3,309        3,375        3,263         2,480 
Total 
 shareholders' 
 equity            119,997      119,855      114,999       110,576 
 
Non-current 
liabilities 
Deferred income 
 taxes             12,169       11,281       10,904        10,596 
Employee benefits  2,341        2,610        2,672         3,305 
Provisions and 
 other 
 non-current 
 liabilities       23,373       21,649       20,269        20,716 
Non-current 
 financial debt    46,868       46,546       49,512        52,331 
Total non-current 
 liabilities       84,751       82,086       83,357        86,948 
 
Current 
liabilities 
Accounts payable   49,700       46,869       36,837        29,752 
Other creditors 
 and accrued 
 liabilities       62,498       56,972       42,800        27,836 
Current 
 borrowings        16,003       18,252       15,035        16,983 
Other current 
 financial 
 liabilities       401          502          372           322 
Liabilities 
 directly 
 associated with 
 the assets 
 classified as 
 held for sale     56           43           58            290 
Total current 
 liabilities       128,658      122,638      95,102        75,183 
Total liabilities 
 & shareholders' 
 equity            333,406      324,579      293,458       272,707 
 
 
 
CONSOLIDATED STATEMENT OF 
CASH FLOW 
TotalEnergies 
(unaudited) 
                             2(nd) quarter  1(st) quarter  2(nd) quarter 
(M$)                         2022           2022           2021 
 
CASH FLOW FROM OPERATING 
ACTIVITIES 
 
Consolidated net income      5,804          5,051          2,299 
Depreciation, depletion, 
 amortization and 
 impairment                  3,321          4,578          3,287 
Non-current liabilities, 
 valuation allowances and 
 deferred taxes              1,427          2,538          210 
(Gains) losses on disposals 
 of assets                   (165)          (13)           (85) 
Undistributed affiliates' 
 equity earnings             2,999          262            1,255 
(Increase) decrease in 
 working capital             2,498          (4,923)        669 
Other changes, net           400            124            (84) 
Cash flow from operating 
 activities                  16,284         7,617          7,551 
 
CASH FLOW USED IN 
INVESTING ACTIVITIES 
 
Intangible assets and 
 property, plant and 
 equipment additions         (5,150)        (3,457)        (2,675) 
Acquisitions of 
 subsidiaries, net of cash 
 acquired                    (82)           -              (170) 
Investments in equity 
 affiliates and other 
 securities                  (136)          (89)           (307) 
Increase in non-current 
 loans                       (278)          (241)          (380) 
Total expenditures           (5,646)        (3,787)        (3,532) 
Proceeds from disposals of 
 intangible assets and 
 property, plant and 
 equipment                   153            177            45 
Proceeds from disposals of 
 subsidiaries, net of cash 
 sold                        63             88             - 
Proceeds from disposals of 
 non-current investments     35             215            216 
Repayment of non-current 
 loans                       413            929            167 
Total divestments            664            1,409          428 
Cash flow used in investing 
 activities                  (4,982)        (2,378)        (3,104) 
 
CASH FLOW USED IN 
FINANCING ACTIVITIES 
 
Issuance (repayment) of 
shares: 
   - Parent company 
 shareholders                371            -              381 
   - Treasury shares         (1,988)        (1,176)        - 
Dividends paid: 
   - Parent company 
 shareholders                (1,825)        (1,928)        (2,094) 
   - Non-controlling 
 interests                   (97)           (22)           (53) 
Net issuance (repayment) of 
 perpetual subordinated 
 notes                       (1,958)        1,958          - 
Payments on perpetual 
 subordinated notes          (138)          (136)          (147) 
Other transactions with 
 non-controlling interests   (10)           5              - 
Net issuance (repayment) of 
 non-current debt            508            34             51 
Increase (decrease) in 
 current borrowings          (2,703)        657            (4,369) 
Increase (decrease) in 
 current financial assets 
 and liabilities             (731)          5,594          (67) 
Cash flow from (used in) 
 financing activities        (8,571)        4,986          (6,298) 
Net increase (decrease) in 
 cash and cash equivalents   2,731          10,225         (1,851) 
Effect of exchange rates     (1,159)        (291)          209 
Cash and cash equivalents 
 at the beginning of the 
 period                      31,276         21,342         30,285 
Cash and cash equivalents 
 at the end of the period    32,848         31,276         28,643 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOW 
TotalEnergies 
(unaudited) 
                                                1(st) half  1(st) half 
(M$)                                            2022        2021 
 
CASH FLOW FROM OPERATING ACTIVITIES 
 
Consolidated net income                         10,855      5,711 
Depreciation, depletion, amortization and 
 impairment                                     7,899       6,760 
Non-current liabilities, valuation allowances 
 and deferred taxes                             3,965       331 
(Gains) losses on disposals of assets           (178)       (370) 
Undistributed affiliates' equity earnings       3,261       682 
(Increase) decrease in working capital          (2,425)     (150) 
Other changes, net                              524         185 
Cash flow from operating activities             23,901      13,149 
 
CASH FLOW USED IN INVESTING ACTIVITIES 
 
Intangible assets and property, plant and 
 equipment additions                            (8,607)     (5,085) 
Acquisitions of subsidiaries, net of cash 
 acquired                                       (82)        (170) 
Investments in equity affiliates and other 
 securities                                     (225)       (2,433) 
Increase in non-current loans                   (519)       (680) 
Total expenditures                              (9,433)     (8,368) 
Proceeds from disposals of intangible assets 
 and property, plant and equipment              330         271 
Proceeds from disposals of subsidiaries, net 
 of cash sold                                   151         229 
Proceeds from disposals of non-current 
 investments                                    250         279 
Repayment of non-current loans                  1,342       301 
Total divestments                               2,073       1,080 
Cash flow used in investing activities          (7,360)     (7,288) 
 
CASH FLOW USED IN FINANCING ACTIVITIES 
 
Issuance (repayment) of shares: 
   - Parent company shareholders                371         381 
   - Treasury shares                            (3,164)     (165) 
Dividends paid: 
   - Parent company shareholders                (3,753)     (4,184) 
   - Non-controlling interests                  (119)       (63) 
Net issuance (repayment) of perpetual 
 subordinated notes                             -           3,248 
Payments on perpetual subordinated notes        (274)       (234) 
Other transactions with non-controlling 
 interests                                      (5)         (55) 
Net issuance (repayment) of non-current debt    542         (839) 
Increase (decrease) in current borrowings       (2,046)     (6,031) 
Increase (decrease) in current financial 
 assets and liabilities                         4,863       (215) 
Cash flow from (used in) financing activities   (3,585)     (8,157) 
Net increase (decrease) in cash and cash 
 equivalents                                    12,956      (2,296) 
Effect of exchange rates                        (1,450)     (329) 
Cash and cash equivalents at the beginning of 
 the period                                     21,342      31,268 
Cash and cash equivalents at the end of the 
 period                                         32,848      28,643 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 
TotalEnergies 
(unaudited) 
                                          Paid-in 
                                          surplus                                       Shareholders' 
                                          and       Currency                            equity -       Non-         Total 
                                          retained  translation                         TotalEnergies  controlling  shareholders' 
                   Common shares issued   earnings  adjustment   Treasury shares        Share          interests    equity 
(M$)               Number         Amount                         Number        Amount 
As of January 1, 
 2021              2,653,124,025  8,267   107,078   (10,256)     (24,392,703)  (1,387)  103,702        2,383        106,085 
Net income 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 
Net income of the 
 second half 
 2021              -              -       10,482    -            -             -        10,482         173          10,655 
Other 
 comprehensive 
 income            -              -       506       (1,584)      -             -        (1,078)        (44)         (1,122) 
Comprehensive 
 Income            -              -       10,988    (1,584)      -             -        9,404          129          9,533 
Dividend           -              -       (4,011)   -            -             -        (4,011)        (61)         (4,072) 
Issuance of 
common shares      -              -       -         -            -             -        -              -            - 
Purchase of 
 treasury shares   -              -       -         -            (33,669,654)  (1,658)  (1,658)        -            (1,658) 
Sale of treasury 
 shares(a)         -              -       -         -            2,975         -        -              -            - 
Share-based 
 payments          -              -       82        -            -             -        82             -            82 
Share 
cancellation       -              -       -         -            -             -        -              -            - 
Net issuance 
(repayment) of 
perpetual 
subordinated 
notes              -              -       -         -            -             -        -              -            - 
Payments on 
 perpetual 
 subordinated 
 notes             -              -       (184)     -            -             -        (184)          -            (184) 
Other operations 
 with 
  non-controlling 
 interests         -              -       4         -            -             -        4              709          713 
Other items        -              -       3         -            -             -        3              6            9 
As of December 
 31, 2021          2,640,429,329  8,224   117,849   (12,671)     (33,841,104)  (1,666)  111,736        3,263        114,999 
Net income of the 
 first half 2022   -              -       10,636    -            -             -        10,636         219          10,855 
Other 
 comprehensive 
 income            -              -       2,370     (1,348)      -             -        1,022          (46)         976 
Comprehensive 
 Income            -              -       13,006    (1,348)      -             -        11,658         173          11,831 
Dividend           -              -       (3,803)   -            -             -        (3,803)        (119)        (3,922) 
Issuance of 
 common shares     9,367,482      26      345       -            -             -        371            -            371 
Purchase of 
 treasury shares   -              -       -         -            (58,458,536)  (3,164)  (3,164)        -            (3,164) 
Sale of treasury 
 shares(a)         -              -       (315)     -            6,168,197     315      -              -            - 
Share-based 
 payments          -              -       157       -            -             -        157            -            157 
Share 
 cancellation      (30,665,526)   (87)    (1,418)   -            30,665,526    1,505    -              -            - 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes             -              -       (44)      -            -             -        (44)           -            (44) 
Payments on 
 perpetual 
 subordinated 
 notes             -              -       (183)     -            -             -        (183)          -            (183) 
Other operations 
 with 
  non-controlling 
 interests         -              -       4         -            -             -        4              (9)          (5) 
Other items        -              -       (44)      -            -             -        (44)           1            (43) 
As of June 30, 
 2022              2,619,131,285  8,163   125,554   (14,019)     (55,465,917)  (3,010)  116,688        3,309        119,997 
(a) Treasury shares related to the performance share grants. 
 

INFORMATION BY BUSINESS SEGMENT

TotalEnergies

 

(unaudited)

 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2022               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     10,281       2,521        35,061     26,907     4          -             74,774 
Intersegment 
 sales             1,889        13,805       12,785     716        70         (29,265)      - 
Excise taxes       -            -            (186)      (4,143)    -          -             (4,329) 
Revenues from 
 sales             12,170       16,326       47,660     23,480     74         (29,265)      70,445 
Operating 
 expenses          (10,997)     (5,760)      (43,242)   (22,310)   (557)      29,265        (53,601) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (327)        (2,112)      (389)      (241)      (33)       -             (3,102) 
Operating income   846          8,454        4,029      929        (516)      -             13,742 
Net income (loss) 
 from equity 
 affiliates and 
 other items       823          (3,668)      349        98         71         -             (2,327) 
Tax on net 
 operating 
 income            (260)        (3,876)      (866)      (296)      (8)        -             (5,306) 
Net operating 
 income            1,409        910          3,512      731        (453)      -             6,109 
Net cost of net 
 debt                                                                                       (305) 
Non-controlling 
 interests                                                                                  (112) 
Net income - 
 TotalEnergies 
 share                                                                                      5,692 
 
                   Integrated 
2(nd) quarter      Gas,         Exploration  Refining   Marketing 
2022               Renewables    &           &           & 
(adjustments)(a)   & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     (15)         -            -          -          -          -             (15) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             (15)         -            -          -          -          -             (15) 
Operating 
 expenses          (606)        (82)         775        373        (301)      -             159 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (14)         (46)         -          (4)        -          -             (64) 
Operating income 
 (b)               (635)        (128)        775        369        (301)      -             80 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (558)        (3,756)      52         (4)        -          -             (4,266) 
Tax on net 
 operating 
 income            47           75           (75)       (100)      78         -             25 
Net operating 
 income (b)        (1,146)      (3,809)      752        265        (223)      -             (4,161) 
Net cost of net 
 debt                                                                                       80 
Non-controlling 
 interests                                                                                  (23) 
Net income - 
 TotalEnergies 
 share                                                                                      (4,104) 
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair 
value. 
(b) Of which 
inventory 
valuation effect 
        - On 
 operating 
 income            -            -            775        376        - 
        - On net 
 operating 
 income            -            -            752        275        - 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2022 (adjusted)    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     10,296       2,521        35,061     26,907     4          -             74,789 
Intersegment 
 sales             1,889        13,805       12,785     716        70         (29,265)      - 
Excise taxes       -            -            (186)      (4,143)    -          -             (4,329) 
Revenues from 
 sales             12,185       16,326       47,660     23,480     74         (29,265)      70,460 
Operating 
 expenses          (10,391)     (5,678)      (44,017)   (22,683)   (256)      29,265        (53,760) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (313)        (2,066)      (389)      (237)      (33)       -             (3,038) 
Adjusted 
 operating 
 income            1,481        8,582        3,254      560        (215)      -             13,662 
Net income (loss) 
 from equity 
 affiliates and 
 other items       1,381        88           297        102        71         -             1,939 
Tax on net 
 operating 
 income            (307)        (3,951)      (791)      (196)      (86)       -             (5,331) 
Adjusted net 
 operating 
 income            2,555        4,719        2,760      466        (230)      -             10,270 
Net cost of net 
 debt                                                                                       (385) 
Non-controlling 
 interests                                                                                  (89) 
Adjusted net 
 income - 
 TotalEnergies 
 share                                                                                      9,796 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2022               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      872          4,128        333        288        25                       5,646 
Total divestments  466          63           56         72         7                        664 
Cash flow from 
 operating 
 activities        3,970        8,768        3,526      580        (560)                    16,284 
 

INFORMATION BY BUSINESS SEGMENT

TotalEnergies

 

(unaudited)

 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) quarter      Renewables    &           &           & 
2022               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     12,294       2,151        31,008     23,149     4          -             68,606 
Intersegment 
 sales             1,471        13,818       9,277      267        63         (24,896)      - 
Excise taxes       -            -            (192)      (4,464)    -          -             (4,656) 
Revenues from 
 sales             13,765       15,969       40,093     18,952     67         (24,896)      63,950 
Operating 
 expenses          (11,632)     (5,708)      (37,411)   (17,984)   (293)      24,896        (48,132) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (321)        (2,661)      (380)      (273)      (44)       -             (3,679) 
Operating income   1,812        7,600        2,302      695        (270)      -             12,139 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (2,500)      242          156        (42)       108        -             (2,036) 
Tax on net 
 operating 
 income            (294)        (3,863)      (525)      (225)      105        -             (4,802) 
Net operating 
 income            (982)        3,979        1,933      428        (57)       -             5,301 
Net cost of net 
 debt                                                                                       (250) 
Non-controlling 
 interests                                                                                  (107) 
Net income - 
 TotalEnergies 
 share                                                                                      4,944 
 
                   Integrated 
1(st) quarter      Gas,         Exploration  Refining   Marketing 
2022               Renewables    &           &           & 
(adjustments)(a)   & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     12           -            -          -          -          -             12 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             12           -            -          -          -          -             12 
Operating 
 expenses          (117)        (791)        947        268        (132)      -             175 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         -            (493)        -          (29)       (9)        -             (531) 
Operating income 
 (b)               (105)        (1,284)      947        239        (141)      -             (344) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (3,939)      (14)         117        (3)        106        -             (3,733) 
Tax on net 
 operating 
 income            11           262          (251)      (80)       20         -             (38) 
Net operating 
 income (b)        (4,033)      (1,036)      813        156        (15)       -             (4,115) 
Net cost of net 
 debt                                                                                       113 
Non-controlling 
 interests                                                                                  (31) 
Net income - 
 TotalEnergies 
 share                                                                                      (4,033) 
 
(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            -            -            947        308        - 
        - On net 
 operating 
 income            -            -            845        228        - 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) quarter      Renewables    &           &           & 
2022 (adjusted)    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     12,282       2,151        31,008     23,149     4          -             68,594 
Intersegment 
 sales             1,471        13,818       9,277      267        63         (24,896)      - 
Excise taxes       -            -            (192)      (4,464)    -          -             (4,656) 
Revenues from 
 sales             13,753       15,969       40,093     18,952     67         (24,896)      63,938 
Operating 
 expenses          (11,515)     (4,917)      (38,358)   (18,252)   (161)      24,896        (48,307) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (321)        (2,168)      (380)      (244)      (35)       -             (3,148) 
Adjusted 
 operating 
 income            1,917        8,884        1,355      456        (129)      -             12,483 
Net income (loss) 
 from equity 
 affiliates and 
 other items       1,439        256          39         (39)       2          -             1,697 
Tax on net 
 operating 
 income            (305)        (4,125)      (274)      (145)      85         -             (4,764) 
Adjusted net 
 operating 
 income            3,051        5,015        1,120      272        (42)       -             9,416 
Net cost of net 
 debt                                                                                       (363) 
Non-controlling 
 interests                                                                                  (76) 
Adjusted net 
 income - 
 TotalEnergies 
 share                                                                                      8,977 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) quarter      Renewables    &           &           & 
2022               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      1,439        1,971        228        140        9                        3,787 
Total divestments  1,015        283          27         79         5                        1,409 
Cash flow from 
 operating 
 activities        315          5,768        1,107      898        (471)                    7,617 
 

INFORMATION BY BUSINESS SEGMENT

TotalEnergies

 

(unaudited)

 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2021               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     5,086        1,743        20,853     19,367     -          -             47,049 
Intersegment 
 sales             744          7,855        6,369      108        39         (15,115)      - 
Excise taxes       -            -            (225)      (5,191)    -          -             (5,416) 
Revenues from 
 sales             5,830        9,598        26,997     14,284     39         (15,115)      41,633 
Operating 
 expenses          (5,103)      (4,284)      (25,646)   (13,434)   (207)      15,115        (33,559) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (291)        (2,134)      (396)      (271)      (29)       -             (3,121) 
Operating income   436          3,180        955        579        (197)      -             4,953 
Net income (loss) 
 from equity 
 affiliates and 
 other items       419          (1,243)      123        57         23         -             (621) 
Tax on net 
 operating 
 income            (56)         (1,195)      (281)      (176)      16         -             (1,692) 
Net operating 
 income            799          742          797        460        (158)      -             2,640 
Net cost of net 
 debt                                                                                       (341) 
Non-controlling 
 interests                                                                                  (93) 
Net income - 
 TotalEnergies 
 share                                                                                      2,206 
 
                   Integrated 
2(nd) quarter      Gas,         Exploration  Refining   Marketing 
2021               Renewables    &           &           & 
(adjustments)(a)   & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     (9)          -            -          -          -          -             (9) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             (9)          -            -          -          -          -             (9) 
Operating 
 expenses          (54)         (23)         386        71         -          -             380 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (3)          -            (13)       -          -          -             (16) 
Operating income 
 (b)               (66)         (23)         373        71         -          -             355 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (47)         (1,436)      22         (8)        (22)       -             (1,491) 
Tax on net 
 operating 
 income            21           (12)         (109)      (20)       -          -             (120) 
Net operating 
 income (b)        (92)         (1,471)      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 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2021 (adjusted)    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     5,095        1,743        20,853     19,367     -          -             47,058 
Intersegment 
 sales             744          7,855        6,369      108        39         (15,115)      - 
Excise taxes       -            -            (225)      (5,191)    -          -             (5,416) 
Revenues from 
 sales             5,839        9,598        26,997     14,284     39         (15,115)      41,642 
Operating 
 expenses          (5,049)      (4,261)      (26,032)   (13,505)   (207)      15,115        (33,939) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (288)        (2,134)      (383)      (271)      (29)       -             (3,105) 
Adjusted 
 operating 
 income            502          3,203        582        508        (197)      -             4,598 
Net income (loss) 
 from equity 
 affiliates and 
 other items       466          193          101        65         45         -             870 
Tax on net 
 operating 
 income            (77)         (1,183)      (172)      (156)      16         -             (1,572) 
Adjusted net 
 operating 
 income            891          2,213        511        417        (136)      -             3,896 
Net cost of net 
 debt                                                                                       (345) 
Non-controlling 
 interests                                                                                  (88) 
Adjusted net 
 income - 
 TotalEnergies 
 share                                                                                      3,463 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
2(nd) quarter      Renewables    &           &           & 
2021               & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      1,167        1,830        291        222        22                       3,532 
Total divestments  310          63           13         36         6                        428 
Cash flow from 
 operating 
 activities        567          4,835        2,232      437        (520)                    7,551 
 

INFORMATION BY BUSINESS SEGMENT

TotalEnergies

 

(unaudited)

 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
                   Renewables    &           &           & 
1(st) half 2022    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     22,575       4,672        66,069     50,056     8          -             143,380 
Intersegment 
 sales             3,360        27,623       22,062     983        133        (54,161)      - 
Excise taxes       -            -            (378)      (8,607)    -          -             (8,985) 
Revenues from 
 sales             25,935       32,295       87,753     42,432     141        (54,161)      134,395 
Operating 
 expenses          (22,629)     (11,468)     (80,653)   (40,294)   (850)      54,161        (101,733) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (648)        (4,773)      (769)      (514)      (77)       -             (6,781) 
Operating income   2,658        16,054       6,331      1,624      (786)      -             25,881 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (1,677)      (3,426)      505        56         179        -             (4,363) 
Tax on net 
 operating 
 income            (554)        (7,739)      (1,391)    (521)      97         -             (10,108) 
Net operating 
 income            427          4,889        5,445      1,159      (510)      -             11,410 
Net cost of net 
 debt                                                                                       (555) 
Non-controlling 
 interests                                                                                  (219) 
Net income - 
 TotalEnergies 
 share                                                                                      10,636 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) half 2022    Renewables    &           &           & 
(adjustments)(a)   & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     (3)          -            -          -          -          -             (3) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             (3)          -            -          -          -          -             (3) 
Operating 
 expenses          (723)        (873)        1,722      641        (433)      -             334 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (14)         (539)        -          (33)       (9)        -             (595) 
Operating income 
 (b)               (740)        (1,412)      1,722      608        (442)      -             (264) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (4,497)      (3,770)      169        (7)        106        -             (7,999) 
Tax on net 
 operating 
 income            58           337          (326)      (180)      98         -             (13) 
Net operating 
 income (b)        (5,179)      (4,845)      1,565      421        (238)      -             (8,276) 
Net cost of net 
 debt                                                                                       193 
Non-controlling 
 interests                                                                                  (54) 
Net income - 
 TotalEnergies 
 share                                                                                      (8,137) 
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair 
value. 
(b) Of which 
inventory 
valuation effect 
        - On 
 operating 
 income            -            -            1,722      684        - 
        - On net 
 operating 
 income            -            -            1,597      503        - 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) half 2022    Renewables    &           &           & 
(adjusted)         & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     22,578       4,672        66,069     50,056     8          -             143,383 
Intersegment 
 sales             3,360        27,623       22,062     983        133        (54,161)      - 
Excise taxes       -            -            (378)      (8,607)    -          -             (8,985) 
Revenues from 
 sales             25,938       32,295       87,753     42,432     141        (54,161)      134,398 
Operating 
 expenses          (21,906)     (10,595)     (82,375)   (40,935)   (417)      54,161        (102,067) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (634)        (4,234)      (769)      (481)      (68)       -             (6,186) 
Adjusted 
 operating 
 income            3,398        17,466       4,609      1,016      (344)      -             26,145 
Net income (loss) 
 from equity 
 affiliates and 
 other items       2,820        344          336        63         73         -             3,636 
Tax on net 
 operating 
 income            (612)        (8,076)      (1,065)    (341)      (1)        -             (10,095) 
Adjusted net 
 operating 
 income            5,606        9,734        3,880      738        (272)      -             19,686 
Net cost of net 
 debt                                                                                       (748) 
Non-controlling 
 interests                                                                                  (165) 
Adjusted net 
 income - 
 TotalEnergies 
 share                                                                                      18,773 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
                   Renewables    &           &           & 
1(st) half 2022    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      2,311        6,099        561        428        34                       9,433 
Total divestments  1,481        346          83         151        12                       2,073 
Cash flow from 
 operating 
 activities        4,285        14,536       4,633      1,478      (1,031)                  23,901 
 

INFORMATION BY BUSINESS SEGMENT

TotalEnergies

 

(unaudited)

 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
                   Renewables    &           &           & 
1(st) half 2021    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     10,588       3,257        40,054     36,880     7          -             90,786 
Intersegment 
 sales             1,555        14,433       11,890     186        68         (28,132)      - 
Excise taxes       -            -            (630)      (9,890)    -          -             (10,520) 
Revenues from 
 sales             12,143       17,690       51,314     27,176     75         (28,132)      80,266 
Operating 
 expenses          (10,321)     (7,352)      (48,579)   (25,510)   (374)      28,132        (64,004) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (762)        (4,317)      (787)      (526)      (54)       -             (6,446) 
Operating income   1,060        6,021        1,948      1,140      (353)      -             9,816 
Net income (loss) 
 from equity 
 affiliates and 
 other items       682          (973)        211        23         (5)        -             (62) 
Tax on net 
 operating 
 income            (157)        (2,375)      (561)      (352)      54         -             (3,391) 
Net operating 
 income            1,585        2,673        1,598      811        (304)      -             6,363 
Net cost of net 
 debt                                                                                       (652) 
Non-controlling 
 interests                                                                                  (161) 
Net income - 
 TotalEnergies 
 share                                                                                      5,550 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
1(st) half 2021    Renewables    &           &           & 
(adjustments)(a)   & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     (44)         -            -          -          -          -             (44) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             (44)         -            -          -          -          -             (44) 
Operating 
 expenses          (62)         (23)         1,131      213        -          -             1,259 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (148)        -            (13)       -          -          -             (161) 
Operating income 
 (b)               (254)        (23)         1,118      213        -          -             1,054 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (96)         (1,482)      28         (43)       (62)       -             (1,655) 
Tax on net 
 operating 
 income            59           (10)         (302)      (60)       2          -             (311) 
Net operating 
 income (b)        (291)        (1,515)      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 
                   Gas,         Exploration  Refining   Marketing 
1(st) half 2021    Renewables    &           &           & 
(adjusted)         & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
External sales     10,632       3,257        40,054     36,880     7          -             90,830 
Intersegment 
 sales             1,555        14,433       11,890     186        68         (28,132)      - 
Excise taxes       -            -            (630)      (9,890)    -          -             (10,520) 
Revenues from 
 sales             12,187       17,690       51,314     27,176     75         (28,132)      80,310 
Operating 
 expenses          (10,259)     (7,329)      (49,710)   (25,723)   (374)      28,132        (65,263) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (614)        (4,317)      (774)      (526)      (54)       -             (6,285) 
Adjusted 
 operating 
 income            1,314        6,044        830        927        (353)      -             8,762 
Net income (loss) 
 from equity 
 affiliates and 
 other items       778          509          183        66         57         -             1,593 
Tax on net 
 operating 
 income            (216)        (2,365)      (259)      (292)      52         -             (3,080) 
Adjusted net 
 operating 
 income            1,876        4,188        754        701        (244)      -             7,275 
Net cost of net 
 debt                                                                                       (662) 
Non-controlling 
 interests                                                                                  (147) 
Adjusted net 
 income - 
 TotalEnergies 
 share                                                                                      6,466 
 
                   Integrated 
                   Gas,         Exploration  Refining   Marketing 
                   Renewables    &           &           & 
1(st) half 2021    & Power       Production  Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      4,187        3,195        578        360        48                       8,368 
Total divestments  452          374          129        107        18                       1,080 
Cash flow from 
 operating 
 activities        1,347        8,571        3,228      1,102      (1,099)                  13,149 
 

Reconciliation of the information by business segment with Consolidated Financial Statements

TotalEnergies

 

(unaudited)

 
                                                            Consolidated 
2(nd) quarter 2022                                          statement 
(M$)                              Adjusted  Adjustments(a)   of income 
Sales                             74,789    (15)            74,774 
Excise taxes                      (4,329)   -               (4,329) 
      Revenues from sales         70,460    (15)            70,445 
 
Purchases net of inventory 
 variation                        (46,023)  580             (45,443) 
Other operating expenses          (7,620)   (421)           (8,041) 
Exploration costs                 (117)     -               (117) 
Depreciation, depletion and 
 impairment of tangible assets 
 and mineral interests            (3,038)   (64)            (3,102) 
Other income                      429       -               429 
Other expense                     (529)     (776)           (1,305) 
 
Financial interest on debt        (572)     -               (572) 
Financial income and expense 
 from cash & cash equivalents     130       115             245 
      Cost of net debt            (442)     115             (327) 
 
Other financial income            231       -               231 
Other financial expense           (136)     -               (136) 
 
Net income (loss) from equity 
 affiliates                       1,944     (3,490)         (1,546) 
 
Income taxes                      (5,274)   (10)            (5,284) 
Consolidated net income           9,885     (4,081)         5,804 
TotalEnergies share               9,796     (4,104)         5,692 
Non-controlling interests         89        23              112 
 
(a) Adjustments include special items, inventory valuation effect and 
the effect of changes in fair value. 
 
                                                            Consolidated 
2(nd) 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. 
 

Reconciliation of the information by business segment with Consolidated Financial Statements

TotalEnergies

 

(unaudited)

 
                                                              Consolidated 
1(st) half 2022                                               statement of 
(M$)                                Adjusted  Adjustments(a)  income 
Sales                               143,383   (3)             143,380 
Excise taxes                        (8,985)   -               (8,985) 
      Revenues from sales           134,398   (3)             134,395 
 
Purchases net of inventory 
 variation                          (86,785)  1,694           (85,091) 
Other operating expenses            (15,029)  (635)           (15,664) 
Exploration costs                   (253)     (725)           (978) 
Depreciation, depletion and 
 impairment of tangible assets and 
 mineral interests                  (6,186)   (595)           (6,781) 
Other income                        550       22              572 
Other expense                       (798)     (2,797)         (3,595) 
 
Financial interest on debt          (1,034)   -               (1,034) 
Financial income and expense from 
 cash & cash equivalents            189       270             459 
      Cost of net debt              (845)     270             (575) 
 
Other financial income              350       84              434 
Other financial expense             (271)     -               (271) 
 
Net income (loss) from equity 
 affiliates                         3,805     (5,308)         (1,503) 
 
Income taxes                        (9,998)   (90)            (10,088) 
Consolidated net income             18,938    (8,083)         10,855 
TotalEnergies share                 18,773    (8,137)         10,636 
Non-controlling interests           165       54              219 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
                                                              Consolidated 
1(st) half 2021                                               statement of 
(M$)                                Adjusted  Adjustments(a)  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. 
 

TotalEnergies contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPress

 

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727006241/en/

 
    CONTACT: 

TotalEnergies SE

 
    SOURCE: TotalEnergies SE 
Copyright Business Wire 2022 
 

(END) Dow Jones Newswires

July 28, 2022 06:25 ET (10:25 GMT)

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