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1st Quarter Results
With $5.1B adjusted net income and $8.2B CFFO,
TotalEnergies delivers strong results
in line with its ambitious 2024 objectives
TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):
1Q24 4Q23 Change 1Q23 Change
vs 4Q23
vs 4Q23
Net income (TotalEnergies share) (B$) 5.7 5.1 +13% 5.6 +3%
Adjusted net income (TotalEnergies share)((1))
- in billions of dollars (B$) 5.1 5.2 -2% 6.5 -22%
- in dollars per share 2.14 2.16 -1% 2.61 -18%
Adjusted EBITDA((1)) (B$) 11.5 11.7 -2% 14.2 -19%
Cash flow from operations 8.2 8.5 -4% 9.6 -15%
excluding working capital (CFFO)((1)) (B$)
Cash flow from operating activities (B$) 2.2 16.2 -87% 5.1 -58%
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné,
met on April 25, 2024, to approve the first quarter 2024 financial statements.
On the occasion, Patrick Pouyanné said:
“Celebrating its 100(th) year anniversary in 2024, TotalEnergies
demonstrates once again this quarter the relevance of its balanced transition
strategy that is anchored on two pillars, hydrocarbons and power, delivering
strong results and an attractive shareholder return. In a context of sustained
oil prices and refining margins but softening gas prices, the Company
announced first quarter 2024 adjusted net income of $5.1 billion and cash flow
of $8.2 billion, in line with its ambitious 2024 objectives.
During the first quarter, Oil & Gas production was 2.46 Mboe/d, benefiting
from 6% quarter-to-quarter production growth in LNG and from start-ups at Mero
2 in Brazil and Akpo West in Nigeria. The Company positively appraised the
Venus discovery in Namibia and Cronos in Cyprus. Exploration & Production
delivered adjusted net operating income of $2.6 billion and cash flow of $4.5
billion, and confirms its leadership as a low-cost operator with upstream
production costs below 5 $/boe.
Integrated LNG achieved adjusted net operating income of $1.2 billion and cash
flow of $1.3 billion for the quarter in a softening and less volatile price
environment. The Company strengthened its integration in the LNG value chain
with the acquisition of Lewis Energy Group’s upstream natural gas assets in
the Eagle Ford Basin in the United States, and with the signature of an LNG
sales agreement to Sembcorp in Asia. The Company further deployed its
multi-energy strategy in Oman, launching the fully-electric and very low
emissions (3 kg/boe) Marsa LNG project that targets in priority the marine
fuels market and developing an 800 MW portfolio of wind and solar projects,
including the 300 MW solar project that will supply Marsa LNG.
During the first quarter, Integrated Power generated sequentially higher
adjusted net operating income of $0.6 billion and $0.7 billion of cash flow,
with a return on average capital employed reaching 10%, confirming the
Company's ability to profitability grow across the electricity value chain.
TotalEnergies enhanced its integrated position in Texas through a 1.5 GW
flexible gas capacity acquisition that closed this quarter.
Downstream adjusted net operating income was $1.2 billion and cash flow was
$1.8 billion, benefiting from strong refining margins. The Company finalized
the divestment of part of its European retail network to Alimentation
Couche-Tard and advanced its development in Sustainable Aviation Fuels (SAF)
through partnerships with Airbus and SINOPEC.
Given these strong results, in line with TotalEnergies’ ambitious 2024
objectives, the Board of Directors decided the distribution of a first interim
dividend of 0.79 €/share for fiscal year 2024, an increase close to 7%
compared to 2023, and authorized the Company to buy back shares for $2 billion
in the second quarter of 2024.”
((1)) Refer to Glossary pages 23 & 24 for the definitions and further
information on alternative performance measures (Non-GAAP measures) and to
page 19 and following for reconciliation tables.
1. Highlights ((2))
* 100(th) anniversary of TotalEnergies on March 28, 2024, and launch of the
“100 for 100” operation:
* 100 TotalEnergies free shares allocation plan to the 100,000 employees of
the
Company*
* €100 offer to the first new 100,000 electricity customers and to 100,000
individual gas station customers in France subject to conditions
Social and environmental responsibility
* Publication of the Sustainability & Climate – 2024 Progress Report
presenting the progress made by the Company in 2023 in the implementation of
its strategy and its climate ambition
* TotalEnergies ranks #1 in the Net Zero Standard for Oil & Gas benchmark
published by Climate Action 100+
* Launch of Care Together by TotalEnergies program, reflecting the Company’s
commitment to social responsibility towards its employees
* Continuation of the €1.99/L gas price cap in France
* Launch of the 2024 annual share capital increase reserved for employees,
TotalEnergies ranking #1 in employee share ownership in Europe according to
the European Federation of Employee Share Ownership
* Deployment of a generative artificial intelligence tool for all
TotalEnergies’ employees
Upstream
* Production start-up of the second phase of the Mero field in Brazil
* Production start-up from the Akpo West field in Nigeria
* Gas production restart at the Tyra offshore hub in Denmark after a major
redevelopment
* Agreements with OMV and Sapura Upstream Assets to acquire 100% of SapuraOMV
shares, an independent gas producer and operator, in Malaysia
* Acquisition of an interest in block 3B/4B, offshore South Africa
* Positive appraisal of the Cronos gas discovery in block 6, in Cyprus
* Expansion of the partnership with Sonatrach in the Timimoun region in Algeria
* Creation of a joint venture with Vantage (75%/25%) to acquire the Tungsten
Explorer drillship
* Launch of an innovative subsea technology to separate and reinject CO(2)-rich
gas at the Mero field in Brazil
Downstream
* Closing of the divestment of retail networks in Belgium, Luxemburg and the
Netherlands to Couche-Tard
* Partnership with Bapco Energies in Bahrain in petroleum products trading
* Strategic partnership with Airbus in Sustainable Aviation Fuels (SAF)
* Partnership with SINOPEC to jointly develop a SAF production unit at
SINOPEC’s refinery in China
Integrated LNG
* Launch of the 1 Mt/y Marsa LNG project, which is a fully electrified and very
low emissions (3 kg CO(2)/boe) LNG plant in Oman, supplied by a 300 MW solar
farm
* Acquisition of the 20% interest held by Lewis Energy Group in the Dorado
leases in the Eagle Ford shale gas play in Texas
* Signature of a long-term LNG contract to supply 0.8 Mt/y to Sembcorp in
Singapore for 16 years
* Extension of the 2 Mt/y LNG supply contract with Sonatrach in Algeria until
2025
Integrated Power
* Closing of the 1.5 GW acquisition of flexible power generation capacity in
Texas
* Launch of a new 75 MWh battery storage project, in Belgium
* Over 1.5 GW of PPAs signed with 600 industrial and commercial customers
worldwide
Decarbonization and low-carbon molecules
* Acquisition of carbon storage projects from Talos Low Carbon Solutions, in the
United States
* Creation of a joint-venture with Vanguard Renewables (50%/50%), a BlackRock
subsidiary, to produce biomethane in the United States
* Founding member of the international “e-NG Coalition” to support the
development of production and use of synthetic methane
((2)) 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.
(*) Designates TotalEnergies SE and the companies in which TotalEnergies holds
more that 50% of the share capital and which are directly and indirectly
controlled by TotalEnergies SE or under joint control, with the exception of a
limited number of companies co-managed with other oil players, as well as
those registered or incorporated in a country under economic sanctions.
2. Key figures from TotalEnergies’ consolidated financial statements ((1))
In millions of dollars, except effective tax rate, 1Q24 4Q23 1Q24 1Q23 1Q24
earnings per share and number of shares
vs
vs
4Q23
1Q23
Adjusted EBITDA ((1)) 11,493 11,696 -2% 14,167 -19%
Adjusted net operating income from business segments 5,600 5,724 -2% 6,993 -20%
Exploration & Production 2,550 2,802 -9% 2,653 -4%
Integrated LNG 1,222 1,456 -16% 2,072 -41%
Integrated Power 611 527 +16% 370 +65%
Refining & Chemicals 962 633 +52% 1,618 -41%
Marketing & Services 255 306 -17% 280 -9%
Contribution of equity affiliates to adjusted net income 621 597 +4% 1,079 -42%
Effective tax rate ((3)) 37.8% 37.7% - 41.4% -
Adjusted net income (TotalEnergies share)( (1)) 5,112 5,226 -2% 6,541 -22%
Adjusted fully-diluted earnings per share (dollars) ((4)) 2.14 2.16 -1% 2.61 -18%
Adjusted fully-diluted earnings per share (euros) ((5)) 1.97 2.02 -2% 2.43 -19%
Fully-diluted weighted-average shares (millions) 2,352 2,387 -1% 2,479 -5%
Net income (TotalEnergies share) 5,721 5,063 +13% 5,557 +3%
Organic investments ((1)) 4,072 6,139 -34% 3,433 +19%
Acquisitions net of assets sales ((1)) (500) (5,404) ns 2,987 ns
Net investments ((1)) 3,572 735 x4,9 6,420 -44%
Cash flow from operations excluding working capital (CFFO) ((1)) 8,168 8,500 -4% 9,621 -15%
Debt Adjusted Cash Flow (DACF) ((1)) 8,311 8,529 -3% 9,774 -15%
Cash flow from operating activities 2,169 16,150 -87% 5,133 -58%
Gearing ((1)) of 10.5% at March 31, 2024 vs.5.0% at December 31, 2023 and 11.5% at March, 31 2023.
((3)) Effective tax rate = (tax on adjusted net operating income) / (adjusted net
operating income – income from equity affiliates – dividends received from
investments – impairment of goodwill + tax on adjusted net operating
income).
((4)) In accordance with IFRS rules, adjusted fully-diluted earnings per share is
calculated from the adjusted net income less the interest on the perpetual
subordinated bonds.
((5)) Average €-$ exchange rate: 1.0858 in the first quarter 2024, 1.0751 in the
fourth quarter 2023 and 1.0730 in the first quarter 2023.
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment – liquids and gas price realizations, refining margins
1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Brent ($/b) 83.2 84.3 -1% 81.2 +3%
Henry Hub ($/Mbtu) 2.1 2.9 -28% 2.7 -22%
NBP ($/Mbtu) 8.7 13.3 -35% 16.1 -46%
JKM ($/Mbtu) 9.3 15.2 -39% 16.5 -44%
Average price of liquids ((6),(7)) ($/b) 78.9 80.2 -2% 73.4 +7%
Consolidated subsidiaries
Average price of gas ((6),(8)) ($/Mbtu) 5.11 6.17 -17% 8.89 -43%
Consolidated subsidiaries
Average price of LNG ((6),(9)) ($/Mbtu) 9.58 10.28 -7% 13.27 -28%
Consolidated subsidiaries and equity affiliates
Variable cost margin - Refining Europe, VCM ((6),(10)) ($/t) 71.7 52.6 +36% 90.7 -21%
3.2 Greenhouse gas emissions ((11))
GHG emissions (MtCO(2e)) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Scope 1+2 from operated facilities ((12)) 8.2 7.9 +4% 9.1 -10%
of which Oil & Gas 7.1 7.2 -1% 7.6 -7%
of which CCGT 1.1 0.7 +57% 1.5 -27%
Scope 1+2 - equity share 11.6 11.5 +1% 12.8 -9%
Estimated quarterly emissions.
Scope 1+2 emissions from operated installations were up 4% quarter-to-quarter,
given the perimeter effect related to gas-fired capacity acquisition in Texas
for 1.5 GW. They were nevertheless down 10% year-on-year thanks to the lower
gas-fired power plants utilization rate in Europe, continuous decline in
flaring emissions on Exploration & Production facilities and carbon
footprint reduction initiatives in Refining & Chemicals.
Methane emissions (ktCH(4)) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Methane emissions from operated facilities 8 9 -11% 9 -11%
Methane emissions - equity share 9 11 -18% 11 -18%
Estimated quarterly emissions.
Scope 3 emissions (MtCO(2)e) 1Q24 2023
Scope 3 from Oil, Biofuels and Gas Worldwide ((13)) est. 85 355
((6)) Does not include oil, gas and LNG trading activities, respectively.
((7)) Sales in $ / Sales in volume for consolidated affiliates.
((8)) Sales in $ / Sales in volume for consolidated affiliates.
((9)) Sales in $ / Sales in volume for consolidated and equity affiliates.
((10)) This market indicator for European refining, calculated based on public market
prices ($/t), uses a basket of crudes, petroleum product yields and variable
costs representative of the European refining system of TotalEnergies.
((11)) 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.
((12)) 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 2023
Universal Registration Document) and indirect emissions attributable to
brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H(2)).
((13)) TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to
indirect GHG emissions related to the end use of energy products sold to the
Company’s customers, i.e., from their combustion, i.e., combustion of the
products to obtain energy. The Company follows the oil & gas industry
reporting guidelines published by IPIECA, which comply with the GHG Protocol
methodologies. In order to avoid double counting, this methodology accounts
for the largest volume in the oil, biofuels and gas value chains, i.e., the
higher of the two production volumes or sales. The highest point for each
value chain for 2024 will be evaluated considering realizations over the full
year, TotalEnergies gradually providing quarterly estimates.
3.3 Production ((14))
Hydrocarbon production 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Hydrocarbon production (kboe/d) 2,461 2,462 - 2,524 -2%
Oil (including bitumen) (kb/d) 1,322 1,341 -1% 1,398 -5%
Gas (including condensates and associated NGL) (kboe/d) 1,139 1,121 +2% 1,126 +1%
Hydrocarbon production (kboe/d) 2,461 2,462 - 2,524 -2%
Liquids (kb/d) 1,482 1,506 -2% 1,562 -5%
Gas (Mcf/d) 5,249 5,158 +2% 5,191 +1%
Hydrocarbon production was 2,461 thousand barrels of oil equivalent per day in
the first quarter 2024, stable quarter-to-quarter thanks to production growth
in LNG and from start-ups at Mero 2 in Brazil and Akpo West in Nigeria, which
were partially compensated by the Canadian oil sands assets disposals that
were effective this quarter. Hydrocarbon production excluding Canada was up
1%.
Hydrocarbon production was up 1.5% year-on-year (excluding Canada) and was
comprised of:
* +2% due to projects ramp-ups, including Mero 2 in Brazil, Block 10 in Oman,
Tommeliten Alpha in Norway, and Absheron in Azerbaijan,
* +1% due to lower planned maintenance and unplanned shutdowns,
* +1% portfolio effect related to the entry in the producing fields of SARB Umm
Lulu in the United Arab Emirates, partially offset by the end of the Bongkot
operating licenses in Thailand,
* -2.5% due to the natural decline of the fields.
When taking into account the Canadian oil sands assets disposals, production
was down 2% year-on-year.
((14)) Company production = E&P production + Integrated LNG production.
4. Analysis of business segments
4.1 Exploration & Production
4.1.1 Production
Hydrocarbon production 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
EP (kboe/d) 1,969 1,998 -1% 2,061 -4%
Liquids (kb/d) 1,419 1,448 -2% 1,500 -5%
Gas (Mcf/d) 2,937 2,946 - 3,012 -2%
4.1.2 Results
In millions of dollars, except effective tax rate 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 2,550 2,802 -9% 2,653 -4%
including adjusted income from equity affiliates 145 130 +12% 135 +7%
Effective tax rate ((15)) 48.5% 47.7% - 57.1% -
Organic investments( (1)) 2,041 3,117 -35% 2,134 -4%
Acquisitions net of assets sales ((1)) 36 (4,306) ns 1,938 -98%
Net investments( (1)) 2,077 (1,189) ns 4,072 -49%
Cash flow from operations excluding working capital (CFFO) ((1)) 4,478 4,690 -5% 4,907 -9%
Cash flow from operating activities 3,590 5,708 -37% 4,536 -21%
Exploration & Production adjusted net operating income was $2,550 million
in the first quarter 2024, down 9% quarter-to-quarter and down 4%
year-on-year, primarily driven by lower gas prices and production.
Cash flow from operations excluding working capital (CFFO) was $4,478 million
in the first quarter 2024, down 5% quarter-to-quarter and down 9%
year-on-year, for the same reasons.
((15)) Effective tax rate = (tax on adjusted net operating income) / (adjusted net
operating income – income from equity affiliates – dividends received from
investments – impairment of goodwill + tax on adjusted net operating
income).
4.2 Integrated LNG
4.2.1 Production
Hydrocarbon production for LNG 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Integrated LNG (kboe/d) 492 464 +6% 463 +6%
Liquids (kb/d) 63 58 +9% 62 +1%
Gas (Mcf/d) 2,312 2,212 +5% 2,179 +6%
Liquefied Natural Gas in Mt 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Overall LNG sales 10.7 11.8 -9% 11.0 -3%
incl. Sales from equity production* 4.2 4.0 +5% 4.0 +5%
incl. Sales by TotalEnergies from equity production and third party purchases 9.3 10.8 -14% 9.9 -6%
* The Company’s equity production may be sold by TotalEnergies or by the joint
ventures.
Hydrocarbon production for LNG was up 6% quarter-to-quarter, thanks to higher
installations availability, mainly on Ichthys in Australia and QatarEnergy LNG
N(2) in Qatar, as well as the increased supply of NLNG in Nigeria.
In the first quarter 2024, LNG sales decreased by 9% quarter-to-quarter,
mainly due to lower demand in Europe as a result of milder winter weather and
high inventories. Volumes were also impacted by partial downtime at Freeport
LNG in the United States this quarter.
4.2.2 Results
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 1,222 1,456 -16% 2,072 -41%
including adjusted income from equity affiliates 494 500 -1% 786 -37%
Organic investments( (1)) 540 790 -32% 396 +36%
Acquisitions net of assets sales ((1)) (12) 48 ns 759 ns
Net investments( (1)) 528 838 -37% 1,155 -54%
Cash flow from operations excluding working capital (CFFO) ((1)) 1,348 1,763 -24% 2,081 -35%
Cash flow from operating activities 1,710 2,702 -37% 3,536 -52%
Integrated LNG adjusted net operating income was $1,222 million in the first
quarter 2024, down 16% quarter-to-quarter, reflecting lower LNG prices and
sales. Due to the low price volatility observed this quarter, the LNG trading
result was in line with the historical average.
Cash flow from operations excluding working capital (CFFO) for Integrated LNG
was $1,348 million in the first quarter 2024, down 24% quarter-to-quarter, for
the same reasons and due to the timing effect in dividend payments from some
equity affiliates.
4.3 Integrated Power
4.3.1 Productions, capacities, clients and sales
Integrated Power 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Net power production (TWh) * 9.6 8.0 +20% 8.4 +14%
o/w production from renewables 6.0 5.5 +10% 3.8 +56%
o/w production from gas flexible capacities 3.6 2.5 +42% 4.5 -21%
Portfolio of power generation net installed capacity (GW) ** 19.5 17.3 +13% 12.7 +54%
o/w renewables 13.7 13.0 +5% 8.4 +64%
o/w gas flexible capacities 5.8 4.3 +35% 4.3 +35%
Portfolio of renewable power generation gross capacity (GW) **,*** 84.1 80.1 +5% 70.4 +19%
o/w installed capacity 23.5 22.4 +5% 17.9 +31%
Clients power - BtB and BtC (Million) ** 6.0 5.9 +1% 6.0 -1%
Clients gas - BtB and BtC (Million) ** 2.8 2.8 - 2.8 -
Sales power - BtB and BtC (TWh) 14.9 13.9 +7% 15.5 -4%
Sales gas - BtB and BtC (TWh) 35.7 30.7 +16% 37.3 -4%
* Solar, wind, hydroelectric and gas flexible capacities.
** End of period data.
*** Includes 20% of Adani Green Energy Ltd’s gross capacity, 50% of Clearway
Energy Group’s gross capacity and 49% of Casa dos Ventos’ gross capacity.
Net power production was 9.6 TWh in the first quarter 2024, up 20%
quarter-to-quarter. Renewable production is up 10% quarter-to-quarter and gas
flexible capacities production growth benefited from the 1.5 GW gas flexible
capacity acquisition in Texas that closed during the first quarter.
Gross installed renewable power generation capacity reached 23.5 GW at the end
of the first quarter 2024, up by more than 1 GW quarter-to-quarter, including
0.5 GW installed in the United States (Clearway, Danish Fields) and 0.4 GW in
India.
4.3.2 Results
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 611 527 +16% 370 +65%
including adjusted income from equity affiliates (39) 21 ns 56 ns
Organic investments( (1)) 943 674 +40% 577 +63%
Acquisitions net of assets sales ((1)) 735 532 +38% 519 +42%
Net investments( (1)) 1,678 1,206 +39% 1,096 +53%
Cash flow from operations excluding working capital (CFFO) ((1)) 692 705 -2% 440 +57%
Cash flow from operating activities (249) 638 ns (1,285) ns
Integrated Power adjusted net operating income was $611 million in the first
quarter 2024, up 16% quarter-to-quarter, reflecting activity growth.
Cash flow from operations excluding working capital (CFFO) for Integrated
Power was $692 million, as fourth quarter 2023 benefited from higher dividends
from equity affiliates.
4.4 Downstream (Refining & Chemicals and Marketing & Services)
4.4.1 Results
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 1,217 939 +30% 1,898 -36%
Organic investments( (1)) 520 1,504 -65% 290 +79%
Acquisitions net of assets sales ((1)) (1,258) (1,679) ns (229) ns
Net investments( (1)) (738) (175) ns 61 ns
Cash flow from operations excluding working capital (CFFO) ((1)) 1,770 1,692 +5% 2,189 -19%
Cash flow from operating activities (2,237) 6,584 ns (1,524) ns
4.5 Refining & Chemicals
4.5.1 Refinery and petrochemicals throughput and utilization rates
Refinery throughput and utilization rate* 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Total refinery throughput (kb/d) 1,424 1,381 +3% 1,403 +2%
France 382 444 -14% 357 +7%
Rest of Europe 618 582 +6% 596 +4%
Rest of world 424 355 +19% 450 -6%
Utilization rate based on crude only** 79% 79% - 78% -
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year.
Petrochemicals production and utilization rate 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Monomers* (kt) 1,287 1,114 +16% 1,295 -1%
Polymers (kt) 1,076 985 +9% 1,111 -3%
Steam cracker utilization rate** 73% 60% - 75% -
* Olefins.
** Based on olefins production from steam crackers and their treatment capacity
at the start of the year.
Refining throughput was up 3% quarter-to-quarter mainly due to the restart of
Satorp in Saudi Arabia, despite an unplanned shutdown at the Donges refinery
in France.
Petrochemicals production was up 16% quarter-to-quarter for monomers and 9%
for polymers thanks to better steam cracker utilization rates in Europe and
the United States.
4.5.2 Results
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 962 633 +52% 1,618 -41%
Organic investments( (1)) 419 1,002 -58% 198 x2,1
Acquisitions net of assets sales ((1)) (20) (11) ns 5 ns
Net investments( (1)) 399 991 -60% 203 +97%
Cash flow from operations excluding working capital (CFFO) ((1)) 1,291 1,173 +10% 1,733 -26%
Cash flow from operating activities (2,129) 4,825 ns (851) ns
Refining & Chemicals adjusted net operating income was $962 million in the
first quarter 2024, up 52% quarter-to-quarter thanks to higher refining
margins and higher refinery throughput.
Cash flow from operations excluding working capital (CFFO) of $1,291 million
in the first quarter 2024 grew less than adjusted net operating income (+10%
quarter-to-quarter) due to the timing effect in dividend payments from equity
affiliates.
4.6 Marketing & Services
4.6.1 Petroleum product sales
Sales in kb/d* 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Total Marketing & Services sales 1,312 1,341 -2% 1,360 -4%
Europe 715 755 -5% 757 -6%
Rest of world 597 587 +2% 602 -1%
* Excludes trading and bulk refining sales.
Sales of petroleum products were down year-on-year by 4% in the first quarter
2024, mainly due to the lower industrial and commercial demand in Europe.
4.6.2 Results
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted net operating income 255 306 -17% 280 -9%
Organic investments( (1)) 101 502 -80% 92 +10%
Acquisitions net of assets sales ((1)) (1,238) (1,668) ns (234) ns
Net investments( (1)) (1,137) (1,166) ns (142) ns
Cash flow from operations excluding working capital (CFFO) ((1)) 479 519 -8% 456 +5%
Cash flow from operating activities (108) 1,759 ns (673) ns
Marketing & Services adjusted net operating income was $255 million for
the first quarter 2024, down 9% year-on-year, due to lower sales of petroleum
products.
Cash flow from operations excluding working capital (CFFO) increased by 5%
year-on-year to $479 million in the first quarter 2024, the growth of
high-value activities, notably lubricants, compensating the disposal of part
of the European retail network.
5. TotalEnergies results
5.1 Adjusted net operating income from business segments
Adjusted net operating income from business segments was $5,600 million in the
first quarter of 2024:
* versus $5,724 million in the fourth quarter 2023, mainly due to softening gas
prices but was partially compensated by higher refining margins,
* versus $6,993 million in the first quarter 2023, mainly due to softening gas
prices and refining margins.
5.2 Adjusted net income ((1) )(TotalEnergies share)
TotalEnergies adjusted net income was $5,112 million in the first quarter 2024
versus $5,226 million in the fourth quarter 2023, mainly due to softening gas
prices, partially compensated by higher refining margins.
Adjustments to net income( )were $0.6 billion in the first quarter 2024
consisting mainly of:
* $1.5 billion capital gain on disposal and revaluation of shares held and
consolidated under the equity method, after the partial divestment of retail
network in Belgium and Luxembourg and the full divestment in the Netherlands,
* ($0.2) billion in inventory effects and effects of changes in fair value,
* ($0.7) billion impairment of the Company’s minority stake in Sunpower and
Maxeon, based on their market value.
TotalEnergies’ average tax rate was stable at 37.8% in the first quarter
2024 versus 37.7% in the fourth quarter 2023.
5.3 Adjusted earnings per share
Adjusted diluted net earnings per share were $2.14 in the first quarter 2024,
based on 2,352 million weighted average diluted shares, compared to $2.16 in
the fourth quarter 2023.
As of March 31, 2024, the number of diluted shares was 2,344 million.
As part of its shareholder return policy, TotalEnergies repurchased 30.6
million shares in the first quarter 2024 for $2 billion.
5.4 Acquisitions – asset sales
Acquisitions were $1,074 million in the first quarter 2024, primarily related
to:
* the acquisition of 1.5 GW gas flexible capacity in Texas,
* the acquisition of battery storage developer Kyon in Germany,
* the acquisition of Talos Low Carbon Solutions, in the carbon storage industry
in the United States.
Divestments were $1,574 million in the first quarter 2024, primarily related
to:
* the closing of the retail network transaction with Alimentation Couche-Tard in
Belgium, Luxemburg, and the Netherlands,
* The sale of a 15% interest in Absheron, in Azerbaijan, to ADNOC.
5.5 Net cash flow ((1))
TotalEnergies' net cash flow( )was $4,596 million in the first quarter 2024
compared to $7,765 million in the fourth quarter 2023, reflecting the $332
million decrease in CFFO and the $2,837 million increase in net investments to
$3,572 million.
2024 first quarter cash flow from operating activities was $2,169 million
versus CFFO of $8,168 million, and was impacted by increased working capital
of $6.0 billion, mainly due to:
* The reversal of the exceptional working capital release of $2 billion in the
fourth quarter 2023,
* $1.5 billion effect of higher oil and petroleum products prices on inventories
at the end of the quarter,
* $1 billion seasonal effect on tax liabilities,
* $1 billion seasonal effect on gas and power distribution activities.
5.6 Profitability
Return on equity was 19.0% for the twelve months ended March 31, 2024.
In millions of dollars April 1, 2023 January 1, 2023 April 1, 2022
March 31, 2024 December 31, 2023 Ma
rc
h
31
,
20
23
Adjusted net income ((1)) 22,047 23,450 34,219
Average adjusted shareholders' equity 115,835 115,006 115,233
Return on equity (ROE) 19.0% 20.4% 29.7%
Return on average capital employed ((1)) was 16.5% for the twelve months ended
March 31,2024.
In millions of dollars April 1, 2023 January 1, 2023 April 1, 2022
March 31, 2024 December 31, 2023 Ma
rc
h
31
,
20
23
Adjusted net operating income ((1)) 23,278 24,684 35,712
Average capital employed ((1)) 140,662 130,517 140,842
ROACE( (1)) 16.5% 18.9% 25.4%
6. TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, amounted to €3,410
million in the first quarter 2024, compared to €2,189 million in the first
quarter 2023.
7. Annual 2024 Sensitivities ((16))
Change Estimated impact on Estimated impact on
adjusted cash flow from
net operating income operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids price ((17)) +/- 10 $/b +/- 2.3 B$ +/- 2.8 B$
European gas price - NBP / TTF +/- 2 $/Mbtu +/- 0.4 B$ +/- 0.4 B$
European Refining Margin Marker (ERM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$
((16)) 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 2024. Actual results could
vary significantly from estimates based on the application of these
sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals.
((17)) In a 80 $/b Brent environment.
8. Outlook
Brent prices are strong at around $90/b at the start of the second quarter
2024, supported by elevated geopolitical tensions and by the OPEC+ decision to
maintain production quotas through the second quarter 2024.
These elevated prices are impacting refining margins, which had been elevated
since the beginning of the year.
Despite exiting winter at high gas storage levels, European gas prices have
been trading within a range of $8 to $10/Mbtu at the beginning of the second
quarter 2024. Recovering Asian LNG demand and limited global LNG capacity
additions in 2024 support forward prices above $11/Mbtu for the 2024-2025
winter period.
Given the evolution of oil and gas prices in recent months and the lag effect
on price formulas, TotalEnergies anticipates that its average LNG selling
price should be between $9 and $10/Mbtu in the second quarter 2024.
Second quarter 2024 hydrocarbon production is expected to be between 2.4 and
2.45 Mboe/d, impacted by planned maintenance that is partially compensated by
ramp-ups of Mero 2 in Brazil and Tyra in Denmark.
The second quarter 2024 refining utilization rate is anticipated to be above
85%, notably as the Donges refinery progressively restarts.
The Company confirms net investments guidance of $17-$18 billion in 2024, of
which $5 billion is dedicated to Integrated Power.
* * * *
To listen to the conference call with Chairman & CEO Patrick Pouyanné and
CFO Jean-Pierre Sbraire today at 1:00pm (Paris time), please log on to
totalenergies.com or dial +33 (0) 1 70 91 87 04, +44 (0) 12 1281 8004 or +1
718 705 8796. The conference replay will be available on the Company's website
totalenergies.com after the event.
* * * *
9. Operating information by segment
9.1 Company’s production (Exploration & Production + Integrated LNG)
Upstream
Production
Combined liquids and gas 1Q24 4Q23 1Q24 1Q23 1Q24
production by region (kboe/d)
vs
vs
4Q23
1Q23
Europe 570 592 -4% 583 -2%
Africa 463 451 +3% 494 -6%
Middle East and North Africa 815 788 +3% 718 +13%
Americas 352 376 -6% 441 -20%
Asia-Pacific 261 256 +2% 288 -9%
Total production 2,461 2,462 - 2,524 -2%
includes equity affiliates 346 331 +5% 344 +1%
Liquids production by region (kb/d) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Europe 224 236 -5% 235 -4%
Africa 331 328 +1% 371 -11%
Middle East and North Africa 652 629 +4% 578 +13%
Americas 171 207 -17% 263 -35%
Asia-Pacific 104 106 -1% 116 -10%
Total production 1,482 1,506 -2% 1,562 -5%
includes equity affiliates 154 141 +9% 150 +3%
Gas production by region (Mcf/d) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Europe 1,869 1,921 -3% 1,879 -1%
Africa 648 612 +6% 615 +5%
Middle East and North Africa 896 881 +2% 772 +16%
Americas 1,003 941 +7% 994 +1%
Asia-Pacific 833 803 +4% 931 -11%
Total production 5,249 5,158 +2% 5,191 +1%
includes equity affiliates 1,043 1,027 +2% 1,054 -1%
9.2 Downstream (Refining & Chemicals and Marketing & Services)
Petroleum product sales by region (kb/d) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Europe 1,774 1,789 -1% 1,600 +11%
Africa 591 610 -3% 667 -11%
Americas 1,033 1,055 -2% 849 +22%
Rest of world 711 697 +2% 623 +14%
Total consolidated sales 4,109 4,151 -1% 3,739 +10%
Includes bulk sales 401 402 - 387 +4%
Includes trading 2,397 2,408 - 1,992 +20%
Petrochemicals production* (kt) 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Europe 990 845 +17% 1,047 -5%
Americas 645 528 +22% 607 +6%
Middle East and Asia 727 725 - 753 -3%
* Olefins, polymers.
9.3 Integrated Power
9.3.1 Net power production
1Q24 4Q23
Net power production (TWh) Solar Onshore Offshore Gas Others Total Solar Onshore Offshore Gas Others Total
Wind Wind Wind Wind
France 0.1 0.2 - 1.8 0.0 2.2 0.1 0.3 - 1.6 0.0 2.0
Rest of Europe 0.1 0.6 0.6 0.7 0.1 2.0 0.0 0.5 0.6 0.6 0.1 1.8
Africa 0.0 0.0 - - - 0.0 0.0 0.0 - - - 0.0
Middle East 0.2 - - 0.3 - 0.5 0.2 - - 0.3 - 0.4
North America 0.5 0.5 - 0.7 - 1.8 0.4 0.5 - - - 0.9
South America 0.2 0.7 - - - 0.8 0.1 0.9 - - - 1.0
India 1.6 0.2 - - - 1.8 1.3 0.2 - - - 1.5
Pacific Asia 0.3 0.0 0.1 - - 0.4 0.3 0.0 0.1 - - 0.4
Total 2.9 2.3 0.7 3.6 0.1 9.6 2.4 2.3 0.7 2.5 0.1 8.0
9.3.2 Installed power generation net capacity
1Q24 4Q23
Installed power generation net capacity (GW) ((18)) Solar Onshore Offshore Gas Others Total Solar Onshore Offshore Gas Others Total
Wind
Wind
Wind
Wind
France 0.6 0.4 - 2.6 0.1 3.7 0.5 0.3 - 2.6 0.1 3.6
Rest of Europe 0.3 0.9 0.6 1.4 0.1 3.2 0.2 0.9 0.6 1.4 0.1 3.2
Africa 0.1 0.0 - - 0.0 0.1 0.1 0.0 - - 0.0 0.1
Middle East 0.4 - - 0.3 - 0.7 0.4 - - 0.3 - 0.7
North America 2.2 0.8 - 1.5 0.3 4.9 2.0 0.8 - - 0.2 3.0
South America 0.4 0.9 - - - 1.2 0.4 0.8 - - - 1.2
India 4.0 0.5 - - - 4.5 3.8 0.5 - - - 4.3
Pacific Asia 1.0 0.0 0.1 - 0.0 1.1 1.0 0.0 0.1 - 0.0 1.1
Total 9.0 3.5 0.7 5.8 0.6 19.5 8.5 3.4 0.7 4.3 0.5 17.3
((18)) End-of-period data.
9.3.3 Power generation gross capacity from renewables
1Q24 4Q23
Installed power generation gross capacity from renewables (GW) ((19),(20)) Solar Onshore Offshore Other Total Solar Onshore Offshore Other Total
Wind
Wind
Wind
Wind
France 0.9 0.7 - 0.1 1.7 0.9 0.6 - 0.1 1.6
Rest of Europe 0.3 1.1 1.1 0.2 2.7 0.2 1.1 1.1 0.2 2.6
Africa 0.1 0.0 - 0.0 0.2 0.1 0.0 - 0.0 0.2
Middle East 1.2 - - - 1.2 1.2 - - - 1.2
North America 5.2 2.2 - 0.6 8.0 4.9 2.1 - 0.5 7.5
South America 0.4 1.2 - - 1.6 0.4 1.2 - - 1.6
India 5.8 0.5 - - 6.3 5.4 0.5 - - 5.9
Asia-Pacific 1.5 0.0 0.3 0.0 1.8 1.5 0.0 0.3 0.0 1.8
Total 15.4 5.7 1.4 1.0 23.5 14.6 5.5 1.4 0.8 22.4
1Q24 4Q23
Power generation gross capacity from renewables in construction (GW) ((19),(20)) Solar Onshore Offshore Other Total Solar Onshore Offshore Other Total
Wind Wind Wind Wind
France 0.1 - 0.0 0.0 0.2 0.2 0.0 0.0 0.0 0.2
Rest of Europe 0.4 0.0 - 0.1 0.5 0.4 0.0 - 0.1 0.5
Africa 0.3 - - 0.1 0.4 0.0 - - 0.0 0.0
Middle East 0.1 - - - 0.1 0.1 - - - 0.1
North America 1.6 0.0 - 0.2 1.8 1.4 0.1 - 0.2 1.7
South America 0.0 0.7 - 0.0 0.7 0.0 0.4 - 0.0 0.4
India 0.6 0.1 - - 0.6 0.6 - - - 0.6
Asia-Pacific 0.1 0.0 0.4 - 0.4 0.0 0.0 0.4 - 0.4
Total 3.1 0.8 0.4 0.4 4.8 2.8 0.6 0.4 0.3 4.1
1Q24 4Q23
Power generation gross capacity from renewables in development (GW) ((19),(20)) Solar Onshore Offshore Other Total Solar Onshore Offshore Other Total
Wind Wind Wind Wind
France 1.2 0.4 - 0.0 1.6 0.7 0.4 - 0.0 1.2
Rest of Europe 4.4 0.5 7.4 1.8 14.2 4.6 0.3 7.4 0.1 12.4
Africa 1.4 0.3 - 0.0 1.7 1.1 0.3 - 0.3 1.7
Middle East 1.7 - - - 1.7 1.5 0.7 - - 2.2
North America 10.3 3.1 4.1 4.8 22.3 8.2 3.4 4.1 5.4 21.1
South America 1.5 1.2 - 0.1 2.8 1.4 0.8 - 0.4 2.6
India 4.5 0.2 - - 4.7 4.7 0.2 - - 4.9
Asia-Pacific 3.2 0.1 2.6 1.0 6.9 2.9 0.4 2.9 1.3 7.5
Total 28.2 5.8 14.1 7.7 55.9 25.3 6.5 14.4 7.5 53.7
((19)) Includes 20% of the gross capacities of Adani Green Energy Limited, 50% of
Clearway Energy Group and 49% of Casa dos Ventos.
((20)) End-of-period data.
10. Alternative Performance Measures (Non-GAAP measures)
10.1 Adjustment items to net income (TotalEnergies share)
In millions of dollars 1Q24 4Q23 1Q23
Net income (TotalEnergies share) 5,721 5,063 5,557
Special items affecting net income (TotalEnergies share) 805 180 (159)
Gain (loss) on asset sales 1,507 1,844 203
Restructuring charges - (51) -
Impairments (644) (1,023) (60)
Other * (58) (590) (302)
After-tax inventory effect : FIFO vs. replacement cost 124 (535) (391)
Effect of changes in fair value (320) 192 (434)
Total adjustments affecting net income 609 (163) (984)
Adjusted net income (TotalEnergies share) 5,112 5,226 6,541
10.2 Reconciliation of adjusted EBITDA with consolidated financial statements
10.2.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Net income (TotalEnergies share) 5,721 5,063 +13% 5,557 +3%
Less: adjustment items to net income (TotalEnergies share) (609) 163 ns 984 ns
Adjusted net income (TotalEnergies share) 5,112 5,226 -2% 6,541 -22%
Adjusted items
Add: non-controlling interests 100 57 +75% 74 +35%
Add: income taxes 2,991 3,004 - 4,090 -27%
Add: depreciation, depletion and impairment of tangible assets and mineral interests 2,942 3,060 -4% 3,026 -3%
Add: amortization and impairment of intangible assets 92 115 -20% 99 -7%
Add: financial interest on debt 708 660 +7% 710 -
Less: financial income and expense from cash & cash equivalents (452) (426) ns (373) ns
Adjusted EBITDA 11,493 11,696 -2% 14,167 -19%
10.2.2 Reconciliation of revenues from sales to adjusted EBITDA and net income
(TotalEnergies share)
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Adjusted items
Revenues from sales 51,883 54,765 -5% 58,309 -11%
Purchases, net of inventory variation (33,525) (36,651) ns (37,479) ns
Other operating expenses (7,580) (6,956) ns (7,752) ns
Exploration costs (88) (174) ns (94) ns
Other income 240 169 +42% 77 x3,1
Other expense, excluding amortization and impairment of intangible assets (125) (150) ns (38) ns
Other financial income 282 276 +2% 248 +14%
Other financial expense (215) (180) ns (183) ns
Net income (loss) from equity affiliates 621 597 +4% 1,079 -42%
Adjusted EBITDA 11,493 11,696 -2% 14,167 -19%
Adjusted items
Less: depreciation, depletion and impairment of tangible assets and mineral interests (2,942) (3,060) ns (3,026) ns
Less: amortization of intangible assets (92) (115) ns (99) ns
Less: financial interest on debt (708) (660) ns (710) ns
Add: financial income and expense from cash & cash equivalents 452 426 +6% 373 +21%
Less: income taxes (2,991) (3,004) ns (4,090) ns
Less: non-controlling interests (100) (57) ns (74) ns
Add: adjustment (TotalEnergies share) 609 (163) ns (984) ns
Net income (TotalEnergies share) 5,721 5,063 +13% 5,557 +3%
10.3 Investments – Divestments (TotalEnergies share)
Reconciliation of Cash flow used in investing activities to Net investments
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Cash flow used in investing activities ( a ) 3,467 632 x5,5 6,362 -46%
Other transactions with non-controlling interests ( b ) - - ns - ns
Organic loan repayment from equity affiliates ( c ) 3 3 - (6) ns
Change in debt from renewable projects financing ( d ) * - (3) -100% 3 -100%
Capex linked to capitalized leasing contracts ( e ) 103 71 +45% 60 +72%
Expenditures related to carbon credits ( f ) (1) 32 ns 1 ns
Net investments ( a + b + c + d + e + f = g - i + h ) 3,572 735 x4,9 6,420 -44%
of which acquisitions net of assets sales ( g-i ) (500) (5,404) ns 2,987 ns
Acquisitions ( g ) 1,074 698 +54% 3,256 -67%
Asset sales ( i ) 1,574 6,102 -74% 269 x5,9
Change in debt from renewable projects (partner share) - - ns (3) -100%
of which organic investments ( h ) 4,072 6,139 -34% 3,433 +19%
Capitalized exploration 145 214 -32% 205 -29%
Increase in non-current loans 538 683 -21% 374 +44%
Repayment of non-current loans, excluding organic loan repayment from equity affiliates (146) (91) ns (229) ns
Change in debt from renewable projects (TotalEnergies share) - (3) -100% - ns
* Change in debt from renewable projects (TotalEnergies share and partner
share).
10.4 Cash flow (TotalEnergies share)
Reconciliation of Cash flow from operating activities to Cash flow from
operations excluding working capital (CFFO), to DACF and to Net cash flow
In millions of dollars 1Q24 4Q23 1Q24 1Q23 1Q24
vs
vs
4Q23
1Q23
Cash flow from operating activities ( a ) 2,169 16,150 -87% 5,133 -58%
(Increase) decrease in working capital ( b ) * (6,121) 8,377 ns (3,989) ns
Inventory effect ( c ) 125 (724) ns (502) ns
Capital gain from renewable project sales ( d ) - (0) -100% 3 -100%
Organic loan repayments from equity affiliates ( e ) 3 3 - (6) ns
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d + e ) 8,168 8,500 -4% 9,621 -15%
Financial charges (143) (29) ns (153) ns
Debt Adjusted Cash Flow (DACF) 8,311 8,529 -3% 9,774 -15%
Organic investments ( g ) 4,072 6,139 -34% 3,433 +19%
Free cash flow after organic investments ( f - g ) 4,096 2,361 +73% 6,188 -34%
Net investments ( h ) 3,572 735 x4,9 6,420 -44%
Net cash flow ( f - h ) 4,596 7,765 -41% 3,201 +44%
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power segments’ contracts.
10.5 Gearing ratio
In millions of dollars 03/31/2024 12/31/2023 03/31/2023
Current borrowings * 16,068 7,869 16,280
Other current financial liabilities 481 446 597
Current financial assets * , ** (5,969) (6,256) (7,223)
Net financial assets classified as held for sale * (11) 17 (38)
Non-current financial debt * 30,452 32,722 34,820
Non-current financial assets * (1,165) (1,229) (1,101)
Cash and cash equivalents (25,640) (27,263) (27,985)
Net debt ( a ) 14,216 6,306 15,350
Shareholders’ equity (TotalEnergies share) 118,409 116,753 115,581
Non-controlling interests 2,734 2,700 2,863
Shareholders' equity (b) 121,143 119,453 118,444
Gearing = a / ( a+b ) 10.5% 5.0% 11.5%
Leases (c) 8,013 8,275 8,131
Gearing including leases ( a+c ) / ( a+b+c ) 15.5% 10.9% 16.5%
* Excludes leases receivables and leases debts.
** Including initial margins held as part of the Company's activities on
organized markets.
10.6 Return on average capital employed
Twelve months ended March 31, 2024
In millions of dollars Exploration & Integrated Integrated Refining & Marketing & Company
Production
LNG
Power
Chemicals
Services
Adjusted net operating income 10,839 5,350 2,094 3,998 1,433 23,278
Capital employed at 03/31/2023 67,658 34,183 18,982 10,115 8,811 139,830
Capital employed at 03/31/2024 64,968 36,678 22,890 9,360 8,013 141,494
ROACE 16.3% 15.1% 10.0% 41.1% 17.0% 16.5%
GLOSSARY
Acquisitions net of assets sales is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow used in investing activities.
Net Acquisitions refer to acquisitions minus assets sales (including other
operations with non-controlling interests). This indicator can be a valuable
tool for decision makers, analysts and shareholders alike because it
illustrates the allocation of cash flow used for growing the Company’s asset
base via external growth opportunities.
Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)
is a non-GAAP financial measure and its most directly comparable IFRS measure
is Net Income. It refers 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. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to measure
and compare the Company’s profitability with utility companies (energy
sector).
Adjusted net income (TotalEnergies share) is a non-GAAP financial measure and
its most directly comparable IFRS measure is Net Income (TotalEnergies share).
Adjusted Net Income (TotalEnergies share) refers to Net Income (TotalEnergies
share) less adjustment items to Net Income (TotalEnergies share). Adjustment
items are inventory valuation effect, effect of changes in fair value, and
special items. This indicator can be a valuable tool for decision makers,
analysts and shareholders alike to evaluate the Company’s operating results
and to understand its operating trends by removing the impact of
non-operational results and special items.
Adjusted net operating income is a non-GAAP financial measure and its most
directly comparable IFRS measure is Net Income. Adjusted Net Operating Income
refers to Net Income before net cost of net debt, i.e., cost of net debt net
of its tax effects, less adjustment items. Adjustment items are inventory
valuation effect, effect of changes in fair value, and special items. Adjusted
Net Operating Income can be a valuable tool for decision makers, analysts and
shareholders alike to evaluate the Company’s operating results and
understanding its operating trends, by removing the impact of non-operational
results and special items and is used to evaluate the Return on Average
Capital Employed (ROACE) as explained below.
Capital Employed is a non-GAAP financial measure. They are calculated at
replacement cost and refer to capital employed (balance sheet) less inventory
valuations effect. Capital employed (balance sheet) refers to the sum of the
following items: (i) Property, plant and equipment, intangible assets, net,
(ii) Investments & loans in equity affiliates, (iii) Other non-current
assets, (iv) Working capital which is the sum of: Inventories, net, Accounts
receivable, net, other current assets, Accounts payable, Other creditors and
accrued liabilities(v) Provisions and other non-current liabilities and (vi)
Assets and liabilities classified as held for sale. Capital Employed can be a
valuable tool for decision makers, analysts and shareholders alike to provide
insight on the amount of capital investment used by the Company or its
business segments to operate. Capital Employed is used to calculate the Return
on Average Capital Employed (ROACE).
Cash Flow From Operations excluding working capital (CFFO) is a non-GAAP
financial measure and its most directly comparable IFRS measure is Cash flow
from operating activities. Cash Flow From Operations excluding working capital
is defined as cash flow from operating activities before changes in working
capital at replacement cost, excluding the mark-to-market effect of Integrated
LNG and Integrated Power contracts, including capital gain from renewable
projects sales and including organic loan repayments from equity affiliates.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to help understand changes in cash flow from operating
activities, excluding the impact of working capital changes across periods on
a consistent basis and with the performance of peer companies in a manner
that, when viewed in combination with the Company’s results prepared in
accordance with GAAP, provides a more complete understanding of the factors
and trends affecting the Company’s business and performance. This
performance indicator is used by the Company as a base for its cash flow
allocation and notably to guide on the share of its cash flow to be allocated
to the distribution to shareholders.
Debt adjusted cash flow (DACF) is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow from operating activities. DACF
is defined as Cash Flow From Operations excluding working capital (CFFO)
without financial charges. This indicator can be a valuable tool for decision
makers, analysts and shareholders alike because it corresponds to the funds
theoretically available to the Company for investments, debt repayment and
distribution to shareholders, and therefore facilitates comparison of the
Company’s results of operations with those of other registrants, independent
of their capital structure and working capital requirements.
Free cash flow after Organic Investments is a non-GAAP financial measure and
its most directly comparable IFRS measure is Cash flow from operating
activities. Free cash flow after Organic Investments, refers to Cash Flow From
Operations excluding working capital minus Organic Investments. Organic
Investments refer to Net Investments excluding acquisitions, asset sales and
other transactions with non-controlling interests. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates operating cash flow generated by the business post allocation of
cash for Organic Investments.
Gearing is a non-GAAP financial measure and its most directly comparable IFRS
measure is the ratio of total financial liabilities to total equity. Gearing
is a Net-debt-to-capital ratio, which is calculated as the ratio of Net debt
excluding leases to (Equity + Net debt excluding leases). This indicator can
be a valuable tool for decision makers, analysts and shareholders alike to
assess the strength of the Company’s balance sheet.
Net cash flow is a non-GAAP financial measure and its most directly comparable
IFRS measure is Cash flow from operating activities. Net cash flow refers to
Cash Flow From Operations excluding working capital minus Net Investments. Net
cash flow can be a valuable tool for decision makers, analysts and
shareholders alike because it illustrates cash flow generated by the
operations of the Company post allocation of cash for Organic Investments and
Net Acquisitions (acquisitions - assets sales - other operations with
non-controlling interests). This performance indicator corresponds to the cash
flow available to repay debt and allocate cash to shareholder distribution or
share buybacks.
Net investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Net
Investments refer to Cash flow used in investing activities including other
transactions with non-controlling interests, including change in debt from
renewable projects financing, including expenditures related to carbon
credits, including capex linked to capitalized leasing contracts and excluding
organic loan repayment from equity affiliates. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to
illustrate the cash directed to growth opportunities, both internal and
external, thereby showing, when combined with the Company’s cash flow
statement prepared under IFRS, how cash is generated and allocated for uses
within the organization. Net Investments are the sum of Organic Investments
and Net Acquisitions each of which is described in the Glossary.
Organic investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Organic
investments refers to Net Investments, excluding acquisitions, asset sales and
other operations with non-controlling interests. Organic Investments can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates cash flow used by the Company to grow its asset base, excluding
sources of external growth.
Payout is a non-GAAP financial measure. Payout is defined as the ratio of the
dividends and share buybacks to the Cash Flow From Operations excluding
working capital. This indicator can be a valuable tool for decision makers,
analysts and shareholders as it provides the portion of the Cash Flow From
Operations excluding working capital distributed to the shareholder.
Return on Average Capital Employed (ROACE) is a non-GAAP financial measure.
ROACE is the ratio of Adjusted Net Operating Income to average Capital
Employed at replacement cost between the beginning and the end of the period.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to measure the profitability of the Company’s average
Capital Employed in its business operations and is used by the Company to
benchmark its performance internally and externally with its peers.
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 press release presents the results for the first quarter of 2024 from the
consolidated financial statements of TotalEnergies SE as of March 31, 2024
(unaudited). 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 (including
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 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
“will”, “should”, “could”, “would”, “may”, “likely”,
“might”, “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, technological innovations, meteorological conditions
and events, as well as socio-demographic, 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. Readers are cautioned not to consider forward-looking statements as
accurate, but as an expression of the Company’s views only as of the date
this document is published. TotalEnergies SE and its subsidiaries have no
obligation, make no commitment and expressly disclaim any responsibility to
investors or any stakeholder to update or revise, particularly as a result of
new information or future events, any forward-looking information or
statement, objectives or trends contained in this document. In addition, the
Company has not verified, and is under no obligation to verify any third-party
data contained in this document or used in the estimates and assumptions or,
more generally, forward-looking statements published in this document. 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”).
Additionally, the developments of environmental and climate change-related
issues in this document are based on various frameworks and the interests of
various stakeholders which are subject to evolve independently of our will.
Moreover, our disclosures on such issues, including climate-related
disclosures, may include information that is not necessarily "material" under
US securities laws for SEC reporting purposes or under applicable securities
law.
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
qualifying as "special items" are excluded from the business segment figures.
In general, special items relate to transactions that are significant,
infrequent, or unusual. However, in certain instances, transactions such as
restructuring costs or assets disposals, which are not considered to be
representative of the normal course of business, may qualify as special items
although they may have occurred in prior years or are likely to occur in
following years.
(ii) The inventory valuation effect
In accordance with IAS 2, TotalEnergies values inventories of petroleum
products in its financial statements according to the First-In, First-Out
(FIFO) method and other inventories using the weighted-average cost method.
Under the FIFO method, the cost of inventory is based on the historic cost of
acquisition or manufacture rather than the current replacement cost. In
volatile energy markets, this can have a significant distorting effect on the
reported income. Accordingly, the adjusted results of the Refining &
Chemicals and Marketing & Services segments are presented according to the
replacement cost method. This method is used to assess the segments’
performance and facilitate the comparability of the segments’ performance
with those of its main competitors.
In the replacement cost method, which approximates the Last-In, First-Out
(LIFO) method, the variation of inventory values in the statement of income
is, depending on the nature of the inventory, determined using either the
month-end prices differential between one period and another or the average
prices of the period rather than the historical value. The inventory valuation
effect is the difference between the results under the FIFO and the
replacement cost methods.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects,
for trading inventories and storage contracts, differences between internal
measures of performance used by TotalEnergies’ Executive Committee and the
accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using
period-end spot prices. In order to best reflect the management of economic
exposure through derivative transactions, internal indicators used to measure
performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, 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 (€-$) 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 N°
1-10888, available from us at 2, place Jean Millier – Arche Nord
Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at the Company
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.
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$)((a)) 2024 2023 2023
Sales 56,278 59,237 62,603
Excise taxes (4,395) (4,472) (4,370)
Revenues from sales 51,883 54,765 58,233
Purchases, net of inventory variation (33,780) (37,150) (38,351)
Other operating expenses (7,643) (7,166) (7,785)
Exploration costs (88) (174) (92)
Depreciation, depletion and impairment of tangible assets and mineral (2,942) (3,539) (3,062)
interests
Other income 1,758 2,685 341
Other expense (315) (802) (300)
Financial interest on debt (708) (660) (710)
Financial income and expense from cash & cash equivalents 472 439 393
Cost of net debt (236) (221) (317)
Other financial income 306 303 258
Other financial expense (215) (189) (183)
Net income (loss) from equity affiliates 18 (136) 960
Income taxes (2,942) (3,339) (4,071)
Consolidated net income 5,804 5,037 5,631
TotalEnergies share 5,721 5,063 5,557
Non-controlling interests 83 (26) 74
Earnings per share ($) 2.42 2.11 2.23
Fully-diluted earnings per share ($) 2.40 2.09 2.21
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2024 2023 2023
Consolidated net income 5,804 5,037 5,631
Other comprehensive income
Actuarial gains and losses (2) (251) 3
Change in fair value of investments in equity instruments 40 (17) 4
Tax effect (8) 42 (8)
Currency translation adjustment generated by the parent company (1,506) 3,025 1,466
Items not potentially reclassifiable to profit and loss (1,476) 2,799 1,465
Currency translation adjustment 1,099 (3,182) (1,250)
Cash flow hedge 807 701 1,202
Variation of foreign currency basis spread (15) (16) (3)
share of other comprehensive income of equity affiliates, net amount (76) (144) (98)
Other 2 3 3
Tax effect (219) (212) (336)
Items potentially reclassifiable to profit and loss 1,598 (2,850) (482)
Total other comprehensive income (net amount) 122 (51) 983
Comprehensive income 5,926 4,986 6,614
TotalEnergies share 5,870 4,995 6,550
Non-controlling interests 56 (9) 64
CONSOLIDATED BALANCE SHEET
TotalEnergies
March 31, 2024 December 31, 2023 March 31, 2023
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,193 33,083 33,234
Property, plant and equipment, net 109,462 108,916 107,499
Equity affiliates : investments and loans 31,256 30,457 29,997
Other investments 1,895 1,543 1,209
Non-current financial assets 2,308 2,395 2,357
Deferred income taxes 3,165 3,418 4,772
Other non-current assets 4,328 4,313 2,709
Total non-current assets 185,607 184,125 181,777
Current assets
Inventories, net 20,229 19,317 22,786
Accounts receivable, net 24,198 23,442 24,128
Other current assets 20,615 20,821 28,153
Current financial assets 6,319 6,585 7,535
Cash and cash equivalents 25,640 27,263 27,985
Assets classified as held for sale 525 2,101 668
Total current assets 97,526 99,529 111,255
Total assets 283,133 283,654 293,032
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 7,548 7,616 7,828
Paid-in surplus and retained earnings 129,937 126,857 123,357
Currency translation adjustment (14,167) (13,701) (12,784)
Treasury shares (4,909) (4,019) (2,820)
Total shareholders' equity - TotalEnergies Share 118,409 116,753 115,581
Non-controlling interests 2,734 2,700 2,863
Total shareholders' equity 121,143 119,453 118,444
Non-current liabilities
Deferred income taxes 11,878 11,688 11,300
Employee benefits 1,941 1,993 1,840
Provisions and other non-current liabilities 20,961 21,257 21,270
Non-current financial debt 38,053 40,478 42,915
Total non-current liabilities 72,833 75,416 77,325
Current liabilities
Accounts payable 37,647 41,335 36,037
Other creditors and accrued liabilities 32,949 36,727 42,578
Current borrowings 17,973 9,590 17,884
Other current financial liabilities 481 446 597
Liabilities directly associated with the assets classified as held for sale 107 687 167
Total current liabilities 89,157 88,785 97,263
Total liabilities & shareholders' equity 283,133 283,654 293,032
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2024 2023 2023
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 5,804 5,037 5,631
Depreciation, depletion, amortization and impairment 3,036 3,815 3,187
Non-current liabilities, valuation allowances and deferred taxes 292 (268) 314
(Gains) losses on disposals of assets (1,610) (2,609) (252)
Undistributed affiliates' equity earnings 288 940 (349)
(Increase) decrease in working capital (5,686) 8,308 (3,419)
Other changes, net 45 927 21
Cash flow from operating activities 2,169 16,150 5,133
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (3,420) (5,076) (4,968)
Acquisitions of subsidiaries, net of cash acquired (759) (10) (136)
Investments in equity affiliates and other securities (488) (1,066) (1,407)
Increase in non-current loans (538) (683) (389)
Total expenditures (5,205) (6,835) (6,900)
Proceeds from disposals of intangible assets and property, plant and equipment 337 2,776 68
Proceeds from disposals of subsidiaries, net of cash sold 1,218 3,333 183
Proceeds from disposals of non-current investments 34 - 49
Repayment of non-current loans 149 94 238
Total divestments 1,738 6,203 538
Cash flow used in investing activities (3,467) (632) (6,362)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders - - -
- Treasury shares (2,006) (2,964) (2,103)
Dividends paid:
- Parent company shareholders (1,903) (1,869) (1,844)
- Non-controlling interests (6) (17) (21)
Net issuance (repayment) of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (159) (54) (158)
Other transactions with non-controlling interests (17) (16) (86)
Net issuance (repayment) of non-current debt 42 (21) 118
Increase (decrease) in current borrowings 3,536 (8,458) (1,274)
Increase (decrease) in current financial assets and liabilities 271 360 1,394
Cash flow from (used in) financing activities (242) (13,039) (3,974)
Net increase (decrease) in cash and cash equivalents (1,540) 2,479 (5,203)
Effect of exchange rates (83) 53 162
Cash and cash equivalents at the beginning of the period 27,263 24,731 33,026
Cash and cash equivalents at the end of the period 25,640 27,263 27,985
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(unaudited)
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity - TotalEnergies Non-controlling interests Total shareholders' equity
Share
(M$) Number Amount Number Amount
As of January 1, 2023 2,619,131,285 8,163 123,951 (12,836) (137,187,667) (7,554) 111,724 2,846 114,570
Net income of the first quarter 2023 - - 5,557 - - - 5,557 74 5,631
Other comprehensive income - - 913 80 - - 993 (10) 983
Comprehensive Income - - 6,470 80 - - 6,550 64 6,614
Dividend - - - - - - - (21) (21)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (33,842,858) (2,703) (2,703) - (2,703)
Sale of treasury shares((a)) - - (395) - 6,446,384 395 - - -
Share-based payments - - 54 - - - 54 - 54
Share cancellation (128,869,261) (335) (6,707) - 128,869,261 7,042 - - -
Net issuance (repayment) of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (77) - - - (77) - (77)
Other operations with - - 39 (28) - - 11 (25) (14)
non-controlling interests
Other items - - 22 - - - 22 (1) 21
As of March 31, 2023 2,490,262,024 7,828 123,357 (12,784) (35,714,880) (2,820) 115,581 2,863 118,444
Net income from April 1 to December 31, 2023 - - 15,827 - - - 15,827 52 15,879
Other comprehensive income - - 1,074 (917) - - 157 (33) 124
Comprehensive Income - - 16,901 (917) - - 15,984 19 16,003
Dividend - - (7,611) - - - (7,611) (290) (7,901)
Issuance of common shares 8,002,155 22 361 - - - 383 - 383
Purchase of treasury shares - - - - (110,857,719) (6,464) (6,464) - (6,464)
Sale of treasury shares((a)) - - (1) - 17,042 1 - - -
Share-based payments - - 237 - - - 237 - 237
Share cancellation (86,012,344) (234) (5,030) - 86,012,344 5,264 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,107) - - - (1,107) - (1,107)
Payments on perpetual subordinated notes - - (217) - - - (217) - (217)
Other operations with - - (9) - - - (9) 110 101
non-controlling interests
Other items - - (24) - - - (24) (2) (26)
As of December 31, 2023 2,412,251,835 7,616 126,857 (13,701) (60,543,213) (4,019) 116,753 2,700 119,453
Net income of the first quarter 2024 - - 5,721 - - - 5,721 83 5,804
Other comprehensive income - - 614 (465) - - 149 (27) 122
Comprehensive Income - - 6,335 (465) - - 5,870 56 5,926
Dividend - - - - - - - (6) (6)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (30,581,230) (2,556) (2,556) - (2,556)
Sale of treasury shares((a)) - - - - 2,957 - - - -
Share-based payments - - 59 - - - 59 - 59
Share cancellation (25,405,361) (68) (1,597) - 25,405,361 1,665 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,679) - - - (1,679) - (1,679)
Payments on perpetual subordinated notes - - (71) - - - (71) - (71)
Other operations with - - - - - - - (17) (17)
non-controlling interests
Other items - - 33 (1) - 1 33 1 34
As of March 31, 2024 2,386,846,474 7,548 129,937 (14,167) (65,716,125) (4,909) 118,409 2,734 121,143
((a))Treasury shares related to the performance share grants.
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,318 2,659 7,082 24,533 20,671 15 - 56,278
Intersegment sales 9,735 3,495 790 8,143 269 63 (22,495) -
Excise taxes - - - (170) (4,225) - - (4,395)
Revenues from sales 11,053 6,154 7,872 32,506 16,715 78 (22,495) 51,883
Operating expenses (4,444) (4,784) (7,565) (30,888) (16,096) (229) 22,495 (41,511)
Depreciation, depletion and impairment of tangible assets and mineral (1,917) (321) (97) (376) (206) (25) - (2,942)
interests
Net income (loss) from equity affiliates and other items 97 495 (615) 68 1,480 27 - 1,552
Tax on net operating income (2,261) (284) (40) (255) (108) 55 - (2,893)
Adjustment( (a)) (22) 38 (1,056) 93 1,530 (4) - 579
Adjusted net operating income 2,550 1,222 611 962 255 (90) - 5,510
Adjustment( (a)) 579
Net cost of net debt (285)
Non-controlling interests (83)
Net income - TotalEnergies share 5,721
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,294 565 1,739 435 144 28 - 5,205
Total divestments 306 50 62 38 1,281 1 - 1,738
Cash flow from operating activities 3,590 1,710 (249) (2,129) (108) (645) - 2,169
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
4(th) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,622 3,050 7,350 24,372 22,826 17 - 59,237
Intersegment sales 10,630 3,651 1,276 8,796 157 26 (24,536) -
Excise taxes - - - (216) (4,256) - - (4,472)
Revenues from sales 12,252 6,701 8,626 32,952 18,727 43 (24,536) 54,765
Operating expenses (5,084) (5,289) (7,787) (32,367) (18,289) (210) 24,536 (44,490)
Depreciation, depletion and impairment of tangible assets and mineral (2,334) (440) (97) (394) (236) (38) - (3,539)
interests
Net income (loss) from equity affiliates and other items (370) 560 (17) (158) 1,917 (71) - 1,861
Tax on net operating income (2,371) (217) (156) 76 (718) 91 - (3,295)
Adjustment( (a)) (709) (141) 42 (524) 1,095 (7) - (244)
Adjusted net operating income 2,802 1,456 527 633 306 (178) - 5,546
Adjustment( (a)) (244)
Net cost of net debt (265)
Non-controlling interests 26
Net income - TotalEnergies share 5,063
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
4(th) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 3,080 855 1,241 1,011 588 60 - 6,835
Total divestments 4,362 28 32 22 1,754 5 - 6,203
Cash flow from operating activities 5,708 2,702 638 4,825 1,759 518 - 16,150
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,954 4,872 8,555 24,855 22,359 8 - 62,603
Intersegment sales 10,728 5,999 1,685 9,061 120 57 (27,650) -
Excise taxes - - - (184) (4,186) - - (4,370)
Revenues from sales 12,682 10,871 10,240 33,732 18,293 65 (27,650) 58,233
Operating expenses (4,762) (9,445) (9,831) (31,892) (17,787) (161) 27,650 (46,228)
Depreciation, depletion and impairment of tangible assets and mineral (2,066) (288) (47) (414) (224) (23) - (3,062)
interests
Net income (loss) from equity affiliates and other items 68 804 (70) 52 243 (21) - 1,076
Tax on net operating income (3,398) (205) (111) (325) (119) 63 - (4,095)
Adjustment( (a)) (129) (335) (189) (465) 126 - - (992)
Adjusted net operating income 2,653 2,072 370 1,618 280 (77) - 6,916
Adjustment( (a)) (992)
Net cost of net debt (293)
Non-controlling interests (74)
Net income - TotalEnergies share 5,557
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 4,052 1,195 1,234 225 159 35 - 6,900
Total divestments 31 49 149 8 301 - - 538
Cash flow from operating activities 4,536 3,536 (1,285) (851) (673) (130) - 5,133
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1. Reconciliation of cash flow used in investing activities to Net investments
1.1 Exploration & Production
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow used in investing activities ( a ) 1,988 (1,282) 4,021 -51%
Other transactions with non-controlling interests ( b ) - - - ns
Organic loan repayment from equity affiliates ( c ) - - - ns
Change in debt from renewable projects financing ( d ) * - - - ns
Capex linked to capitalized leasing contracts ( e ) 90 61 50 80%
Expenditures related to carbon credits ( f ) (1) 32 1 ns
Net investments ( a + b + c + d + e + f = g - i + h ) 2,077 (1,189) 4,072 -49%
of which net acquisitions of assets sales ( g - i ) 36 (4,306) 1,938 -98%
Acquisitions ( g ) 327 39 1,946 -83%
Assets sales ( i ) 291 4,345 8 x36.4
Change in debt from renewable projects (partner share) - - - ns
of which organic investments ( h ) 2,041 3,117 2,134 -4%
Capitalized exploration 136 208 204 -33%
Increase in non-current loans 42 61 44 -5%
Repayment of non-current loans, excluding organic loan repayment from equity (15) (17) (23) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) - - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.2 Integrated LNG
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow used in investing activities ( a ) 515 827 1,146 -55%
Other transactions with non-controlling interests ( b ) - - - ns
Organic loan repayment from equity affiliates ( c ) 1 - 1 ns
Change in debt from renewable projects financing ( d ) * - - - ns
Capex linked to capitalized leasing contracts ( e ) 12 11 8 50%
Expenditures related to carbon credits ( f ) - - - ns
Net investments ( a + b + c + d + e + f = g - i + h ) 528 838 1,155 -54%
of which net acquisitions of assets sales ( g - i ) (12) 48 759 ns
Acquisitions ( g ) - 56 769 -100%
Assets sales ( i ) 12 8 10 20%
Change in debt from renewable projects (partner share) - - - ns
of which organic investments ( h ) 540 790 396 36%
Capitalized exploration 9 6 1 x9
Increase in non-current loans 173 179 143 21%
Repayment of non-current loans, excluding organic loan repayment from equity (37) (20) (38) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) - - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.3 Integrated Power
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow used in investing activities ( a ) 1,677 1,209 1,085 55%
Other transactions with non-controlling interests ( b ) - - - ns
Organic loan repayment from equity affiliates ( c ) - 1 6 -100%
Change in debt from renewable projects financing ( d ) * - (3) 3 -100%
Capex linked to capitalized leasing contracts ( e ) 1 (1) 2 -50%
Expenditures related to carbon credits ( f ) - - - ns
Net investments ( a + b + c + d + e + f = g - i + h ) 1,678 1,206 1,096 53%
of which net acquisitions of assets sales ( g - i ) 735 532 519 42%
Acquisitions ( g ) 736 535 537 37%
Assets sales ( i ) 1 3 18 -94%
Change in debt from renewable projects (partner share) - - (3) -100%
of which organic investments ( h ) 943 674 577 63%
Capitalized exploration - - - ns
Increase in non-current loans 305 318 163 87%
Repayment of non-current loans, excluding organic loan repayment from equity (61) (28) (121) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) - (3) - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.4 Refining & Chemicals
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow used in investing activities ( a ) 397 989 217 83%
Other transactions with non-controlling interests ( b ) - - - ns
Organic loan repayment from equity affiliates ( c ) 2 2 (14) ns
Change in debt from renewable projects financing ( d ) * - - - ns
Capex linked to capitalized leasing contracts ( e ) - - - ns
Expenditures related to carbon credits ( f ) - - - ns
Net investments ( a + b + c + d + e + f = g - i + h ) 399 991 203 97%
of which net acquisitions of assets sales ( g - i ) (20) (11) 5 ns
Acquisitions ( g ) 9 1 4 x2.3
Assets sales ( i ) 29 12 (1) ns
Change in debt from renewable projects (partner share) - - - ns
of which organic investments ( h ) 419 1,002 198 x2.1
Capitalized exploration - - - ns
Increase in non-current loans 7 28 11 -36%
Repayment of non-current loans, excluding organic loan repayment from equity (7) (8) (8) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) - - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.5 Marketing & Services
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow used in investing activities ( a ) (1,137) (1,166) (142) ns
Other transactions with non-controlling interests ( b ) - - - ns
Organic loan repayment from equity affiliates ( c ) - - - ns
Change in debt from renewable projects financing ( d ) * - - - ns
Capex linked to capitalized leasing contracts ( e ) - - - ns
Expenditures related to carbon credits ( f ) - - - ns
Net investments ( a + b + c + d + e + f = g - i + h ) (1,137) (1,166) (142) ns
of which net acquisitions of assets sales ( g - i ) (1,238) (1,668) (234) ns
Acquisitions ( g ) 2 67 - ns
Assets sales ( i ) 1,240 1,735 234 x5.3
Change in debt from renewable projects (partner share) - - - ns
of which organic investments ( h ) 101 502 92 10%
Capitalized exploration - - - ns
Increase in non-current loans 11 99 11 ns
Repayment of non-current loans, excluding organic loan repayment from equity (26) (12) (39) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) - - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
2. Reconciliation of cash flow from operating activities to CFFO
2.1 Exploration & Production
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow from operating activities ( a ) 3,590 5,708 4,536 -21%
(Increase) decrease in working capital ( b ) (888) 1,018 (371) ns
Inventory effect ( c ) - - - ns
Capital gain from renewable project sales ( d ) - - - ns
Organic loan repayments from equity affiliates ( e ) - - - ns
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 4,478 4,690 4,907 -9%
+ e )
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.2 Integrated LNG
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow from operating activities ( a ) 1,710 2,702 3,536 -52%
(Increase) decrease in working capital ( b ) * 363 939 1,456 -75%
Inventory effect ( c ) - - - ns
Capital gain from renewable project sales ( d ) - - - ns
Organic loan repayments from equity affiliates ( e ) 1 - 1 ns
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 1,348 1,763 2,081 -35%
+ e )
*Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
2.3 Integrated Power
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow from operating activities ( a ) (249) 638 (1,285) ns
(Increase) decrease in working capital ( b ) * (941) (66) (1,715) ns
Inventory effect ( c ) - - - ns
Capital gain from renewable project sales ( d ) - - 3 -100%
Organic loan repayments from equity affiliates ( e ) - 1 6 -100%
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 692 705 440 57%
+ e )
*Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.4 Refining & Chemicals
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow from operating activities ( a ) (2,129) 4,825 (851) ns
(Increase) decrease in working capital ( b ) (3,526) 4,161 (2,183) ns
Inventory effect ( c ) 108 (507) (415) ns
Capital gain from renewable project sales ( d ) - - - ns
Organic loan repayments from equity affiliates ( e ) 2 2 (14) ns
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 1,291 1,173 1,733 -26%
+ e )
2.5 Marketing & Services
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter 1(st) quarter 2024
vs
2024 2023 2023 1(st) quarter 2023
Cash flow from operating activities ( a ) (108) 1,759 (673) ns
(Increase) decrease in working capital ( b ) (604) 1,457 (1,042) ns
Inventory effect ( c ) 17 (217) (87) ns
Capital gain from renewable project sales ( d ) - - - ns
Organic loan repayments from equity affiliates ( e ) - - - ns
Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 479 519 456 5%
+ e )
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
3. Reconciliation of capital employed (balance sheet) and calculation of ROACE
(In millions of dollars) Exploration & Production Integrated Integrated Power Refining Marketing Corporate Inter Company
LNG
&
&
Company
Chemicals
Services
Adjusted net operating income 1 (st) quarter 2024 2,550 1,222 611 962 255 (90) - 5,510
Adjusted net operating income 4 (th) quarter 2023 2,802 1,456 527 633 306 (178) - 5,546
Adjusted net operating income 3 (rd) quarter 2023 3,138 1,342 506 1,399 423 80 - 6,888
Adjusted net operating income 2 (nd) quarter 2023 2,349 1,330 450 1,004 449 (248) - 5,334
Adjusted net operating income ( a ) 10,839 5,350 2,094 3,998 1,433 (436) - 23,278
Balance sheet as of March 31, 2024
Property plant and equipment intangible assets net 84,713 25,054 13,626 12,089 6,508 665 - 142,655
Investments & loans in equity affiliates 2,889 14,387 8,831 4,142 1,007 - 31,256
Other non-current assets 3,626 2,500 1,280 715 1,236 31 - 9,388
Inventories, net 1,428 1,010 657 13,390 3,744 - - 20,229
Accounts receivable, net 6,329 8,061 6,819 20,658 9,822 983 (28,474) 24,198
Other current assets 6,404 8,918 5,939 2,674 3,288 5,024 (11,632) 20,615
Accounts payable (6,347) (9,053) (6,565) (32,774) (10,361) (874) 28,327 (37,647)
Other creditors and accrued liabilities (9,053) (10,425) (6,071) (6,449) (5,656) (7,074) 11,779 (32,949)
Working capital (1,239) (1,489) 779 (2,501) 837 (1,941) - (5,554)
Provisions and other non-current liabilities (25,021) (3,774) (1,902) (3,678) (1,235) 830 - (34,780)
Assets and liabilities classified as held for sale - Capital employed - - 276 131 - - - 407
Capital Employed (Balance sheet) 64,968 36,678 22,890 10,898 8,353 (415) - 143,372
Less inventory valuation effect - - - (1,538) (340) - - (1,878)
Capital Employed at replacement cost ( b ) 64,968 36,678 22,890 9,360 8,013 (415) - 141,494
Balance sheet as of March 31, 2023
Property plant and equipment intangible assets net 88,954 24,420 7,172 11,476 8,036 675 - 140,733
Investments & loans in equity affiliates 2,344 13,013 9,580 4,471 589 - - 29,997
Other non-current assets 3,253 3,034 445 656 1,077 225 - 8,690
Inventories, net 1,486 1,520 883 14,637 4,260 - - 22,786
Accounts receivable, net 6,514 10,988 8,273 18,509 8,777 1,843 (30,776) 24,128
Other current assets 6,131 14,144 9,492 2,732 3,409 2,922 (10,677) 28,153
Accounts payable (5,493) (12,295) (6,951) (29,927) (10,469) (1,751) 30,849 (36,037)
Other creditors and accrued liabilities (10,938) (16,778) (8,855) (7,018) (5,220) (4,373) 10,604 (42,578)
Working capital (2,300) (2,421) 2,842 (1,067) 757 (1,359) - (3,548)
Provisions and other non-current liabilities (24,812) (3,863) (1,213) (3,789) (1,273) 540 - (34,410)
Assets and liabilities classified as held for sale - Capital employed 219 - 156 88 - - - 463
Capital Employed (Balance sheet) 67,658 34,183 18,982 11,835 9,186 81 - 141,925
Less inventory valuation effect - - - (1,720) (375) - - (2,095)
Capital Employed at replacement cost ( c ) 67,658 34,183 18,982 10,115 8,811 81 - 139,830
ROACE as a percentage ( a / average ( b + c )) 16.3% 15.1% 10.0% 41.1% 17.0% 16.5%
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
4. Reconciliation of consolidated net income to adjusted net operating income
(in millions of dollars) 1(st) quarter 4(th) quarter 1(st) quarter
2024 2023 2023
Consolidated net income ( a ) 5,804 5,037 5,631
Net cost of net debt ( b ) (285) (265) (293)
Special items affecting net operating income 792 113 (167)
Gain (loss) on asset sales 1,507 1,844 203
Restructuring charges - (51) -
Impairments (644) (1,070) (60)
Other (71) (610) (310)
After-tax inventory effect: FIFO vs. replacement cost 107 (549) (391)
Effect of changes in fair value (320) 192 (434)
Total adjustments affecting net operating income ( c ) 579 (244) (992)
Adjusted net operating income ( a - b - c ) 5,510 5,546 6,916
TotalEnergies
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