REG-TotalEnergies SE TotalEnergies SE: Fourth Quarter and Full-Year 2023 Results
07/02/2024 14:15
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TotalEnergies SE: Fourth Quarter and Full-Year 2023 Results
TotalEnergies delivers robust results in line with its objectives and confirms
the relevance of its strategy in an uncertain environment
7.1% ordinary dividend increase - 46% Payout
19% ROACE in 2023, at the top of the majors
TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):
4Q23 Change 2023 Change
vs 3Q23
vs 2022
Net income (TotalEnergies share) (B$) 5.1 -24% 21.4 +4%
Adjusted net income (TotalEnergies share)((1))
- in billions of dollars (B$) 5.2 -19% 23.2 -36%
- in dollars per share 2.16 -18% 9.40 -33%
Adjusted EBITDA((1)) (B$) 11.7 -10% 50.0 -30%
Cash flow from operations 8.5 -9% 35.9 -21%
excluding working capital (CFFO)((1)) (B$)
Cash flow from operating activities (B$) 16.2 +70% 40.7 -14%
Gearing((1)) of 5.0% at December 31, 2023 vs.12.3% at September 30, 2023
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné,
met on February 6, 2024, to approve the fourth quarter 2023 financial
statements. On the occasion, Patrick Pouyanné said:
“In an uncertain environment, TotalEnergies’ balanced transition strategy,
which combines growth in Oil & Gas, in particular in LNG, and Integrated
Power, delivered strong results in 2023, in line with its objectives. During
the fourth quarter, TotalEnergies generated adjusted net income of $5.2
billion and cash flow of $8.5 billion. IFRS net income was $5.1 billion.
In 2023 TotalEnergies reported adjusted net income of $23.2 billion and cash
flow of $35.9 billion. 2023 IFRS net income was $21.4 billion (€19.8
billion), up 4% year-on-year. This year the Company once again achieved top
tier 20% return on equity and 19% return on average capital employed.
TotalEnergies invested $16.8 billion, including 35% for low-carbon energies
mainly in power. Ordinary dividends increased by 7.1% and the Company
completed $9 billion in buybacks of its shares, of which $1.5 billion was
linked to the Canadian asset disposals. The Company further reduced net debt,
achieving 5% gearing, including a $5 billion positive contribution of working
capital. Payout increased to an attractive 46.0% in 2023. In addition,
TotalEnergies ensured balanced profit sharing with its employees around the
world and in particular in France (average 5% wage increase*, value sharing
bonus* of at least €2k and support for employees in their energy
transition**) and with its customers through rebates (€1.99 per liter price
cap and renewal of the rebate on gas and power prices to private customers).
In the Oil & Gas business, fourth quarter production was 2.46 Mboe/d,
which benefited from 7% LNG production growth quarter-to-quarter. In a
softening Brent environment, Exploration & Production delivered a strong
quarter, with adjusted net operating income of $2.8 billion and cash flow of
$4.7 billion. Operating costs decreased to 5.1 $/boe thanks to the divestment
of high-cost Canadian oil sands assets. Full-year 2023 total production
increased 2% year-on-year (excluding Novatek), driven by strong LNG production
growth of 9%, and Exploration & Production generated strong adjusted net
operating income of $10.9 billion and cash flow of $19.1 billion.
TotalEnergies’ exploration successes continued in Namibia, Suriname, and
Nigeria. The Company reports a reserves replacement ratio of 141% in 2023 and
a proved reserves life index of 12 years as of December 31, demonstrating the
strength of its project portfolio.
Integrated LNG results remain robust with fourth quarter adjusted net
operating income of $1.5 billion and cash flow of $1.8 billion, up 8% and 7%
quarter-over-quarter, respectively, and driven by higher production and
strengthening prices. For full year 2023, Integrated LNG generated annual
adjusted net operating income of $6.2 billion and cash flow of $7.3 billion,
which is lower than the exceptional results in 2022 but higher than 2021
thanks to growth in its portfolio.
During the fourth quarter, Integrated Power continued its profitable growth
with higher adjusted net operating income and cash flow of $527 million and
$705 million, respectively. Full-year 2023 cash flow totaled $2.2 billion,
which is more than double compared to 2022. Integrated Power achieved an ROACE
of 9.8% in 2023, demonstrating the relevance of the Company’s integrated
business model. TotalEnergies announced several acquisitions, further
enhancing its Integrated Power business model in the US and in Europe: 1.5 GW
of flexible CCGT capacity in Texas and a renewable energy aggregator (9 GW)
and a battery storage developer (2 GW) in Germany.
Downstream adjusted net operating income was $939 million and cash-flow was
$1.7 billion in the fourth quarter, which reflects the decrease in refining
margins and weak chemicals demand in Europe. Full-year 2023 adjusted net
operating income of $6.1 billion and cash flow of $8.2 billion were supported
by good availability in Europe and still attractive refining margins, although
lower compared to historic levels in 2022.
In view of the structural cash flow growth and share buybacks executed in 2023
(5.9% of the share capital), the Board of Directors will propose at the
Shareholders’ Meeting to be held on May 24, 2024, the distribution of a
final 2023 dividend of €0.79/share, resulting in an increase of 7.1% for the
ordinary 2023 dividend, compared to the ordinary 2022 dividend, to
€3.01/share. Furthermore, the Board of Directors confirmed a shareholder
return policy for 2024 targeting >40% CFFO payout, which will combine an
increase in interim dividends of 6.8% to €0.79/share and $2 billion of share
buybacks in the first quarter of 2024, which will remain the base level for
quarterly buybacks in the current environment.”
1. Highlights((2))
Social and environmental responsibility
* Release of the TotalEnergies Energy Outlook 2023 on the evolution of the
global energy system
* COP28
* Support from TotalEnergies to the objectives of tripling the amount of
renewable energies production capacity and doubling energy efficiency by 2030,
as well as slashing methane emissions within that time frame.
* Membership in the Oil & Gas Decarbonization Charter (OGDC)
* Backing of the World Bank’s Global Flaring and Methane Reduction Trust Fund
* AUSEA technology sharing initiative with Petrobras (Brazil), SOCAR
(Azerbaijan), Sonangol (Angola) and NNPC (Nigeria) to measure methane
emissions
* Release of the third edition of the Human Rights Briefing Paper
* Launch of third-party assessment of the land acquisition program related to
Tilenga and EACOP projects
* Sharing value with employees in France
* Approval of a wage agreement for 2024 to share value with employees in
France
(5% raise and more than 2k€ value sharing bonus) applicable to employees
covered by the Common Corpus of Employee Relations Agreements (SSC)
* Commitment to support the Company’s employees with their energy transition*
Upstream
* Closing of the sale of Surmont to ConocoPhillips for up to $3.3 billion and
other Canadian assets to Suncor for around $1.3 billion
* Production start-up of the second phase of the Mero field, in Brazil
* Acquisition of additional interest in Namibia block 2913B and block 2912
* Award of a new offshore exploration license in Suriname
* Launch of an innovative subsea technology to separate and reinject CO(2)-rich
gas at the Mero field in Brazil
* Agreement with OMV to acquire 50% of SapuraOMV, an independent gas producer,
in Malaysia
Downstream
* Closing of divestment of retail networks in Europe to Couche-Tard for around
$3.8 billion
* Sale to Prax Group of a minority stake in Natref refinery in South Africa
Integrated LNG
* Commissioning of an LNG floating regasification terminal in the Port of Le
Havre, in France
* Extension of partnership with Oman LNG by 10 years and with Qalhat LNG by 5
years
Integrated Power
* US
* Acquisition of 1.5 GW of flexible power generation capacity in Texas
* Attentive Energy One project awarded a 25-year contract to supply 1.4 GW of
renewable electricity to New York and Attentive Energy Two awarded a 20-year
contract to supply 1.3 GW of renewable electricity to New Jersey
* Signature with LyondellBasell of a 15 year-Power Purchase Agreement
* Europe
* Acquisition of Quadra Energy, a German renewable energy aggregator
* Acquisition of Kyon Energy, a leading German battery storage developer
* Partial farm down to PTTEP of 25.5% of the Seagreen offshore wind farm for
$689 million, in the UK
* Expansion of collaboration with European Energy to develop offshore wind in
three Nordic countries
* Acquisition of 200 high power charging sites from Wenea in Spain
* Acquisition of three start-ups in the electricity business as part of the
TotalEnergies On program
2. Key figures from TotalEnergies’ consolidated financial statements((1))
4Q23 3Q23 4Q22 4Q23 In millions of dollars, except effective tax rate, 2023 2022 2023
vs earnings per share and number of shares
vs
4Q22
2022
11,696 13,062 15,997 -27% Adjusted EBITDA ((1)) 50,030 71,578 -30%
5,724 6,808 8,238 -31% Adjusted net operating income from business segments 25,107 38,475 -35%
2,802 3,138 3,528 -21% Exploration & Production 10,942 17,479 -37%
1,456 1,342 2,408 -40% Integrated LNG 6,200 11,169 -44%
527 506 481 +10% Integrated Power 1,853 975 +90%
633 1,399 1,487 -57% Refining & Chemicals 4,654 7,302 -36%
306 423 334 -8% Marketing & Services 1,458 1,550 -6%
597 662 1,873 -68% Contribution of equity affiliates to adjusted net income 3,000 8,254 -64%
37.7% 33.4% 41.4% Effective tax rate ((3)) 37.5% 40.9%
5,226 6,453 7,561 -31% Adjusted net income (TotalEnergies share)( (1)) 23,176 36,197 -36%
2.16 2.63 2.97 -27% Adjusted fully-diluted earnings per share (dollars) ((4)) 9.40 13.94 -33%
2.02 2.41 2.93 -31% Adjusted fully-diluted earnings per share (euros) ((5)) 8.70 13.24 -34%
2,387 2,423 2,522 -5% Fully-diluted weighted-average shares (millions) 2,434 2,572 -5%
5,063 6,676 3,264 +55% Net income (TotalEnergies share) 21,384 20,526 +4%
6,139 4,283 3,935 +56% Organic investments ((1)) 18,126 11,852 +53%
(5,404) 808 (133) ns Net acquisitions ((1)) (1,289) 4,451 ns
735 5,091 3,802 -81% Net investments ((1)) 16,837 16,303 +3%
8,500 9,340 9,135 -7% Cash flow from operations excluding working capital (CFFO) ((1)) 35,946 45,729 -21%
8,529 9,551 9,361 -9% Debt Adjusted Cash Flow (DACF) ((1)) 36,451 47,025 -22%
16,150 9,496 5,618 x2.9 Cash flow from operating activities 40,679 47,367 -14%
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment – liquids and gas price realizations, refining margins
4Q23 3Q23 4Q22 4Q23 2023 2022 2023
vs
vs
4Q22
2022
84.3 86.7 88.8 -5% Brent ($/b) 82.6 101.3 -18%
2.9 2.7 6.1 -52% Henry Hub ($/Mbtu) 2.7 6.5 -59%
13.3 10.6 32.3 -59% NBP ($/Mbtu) 12.6 32.4 -61%
15.2 12.5 30.5 -50% JKM ($/Mbtu) 13.8 33.8 -59%
80.2 78.9 80.6 -1% Average price of liquids ((6),(7)) ($/b) 76.2 91.3 -17%
Consolidated subsidiaries
6.17 5.47 12.74 -52% Average price of gas ((6),(8)) ($/Mbtu) 6.64 13.15 -50%
Consolidated subsidiaries
10.28 9.56 14.83 -31% Average price of LNG ((6),(9)) ($/Mbtu) 10.76 15.90 -32%
Consolidated subsidiaries and equity affiliates
50.1 95.1 73.6 -32% Variable cost margin - Refining Europe, VCM ((6),(10)) ($/t) 69.3 94.1 -26%
3.2 Greenhouse gas emissions ((11))
4Q23 3Q23 4Q22 4Q23 Scope 1+2 emissions (MtCO2e) 2023 2022 2023
vs
vs
4Q22
2022
7.9 8.5 10.1 -22% Scope 1+2 from operated facilities ((12)) 34.6 39.7 -13%
7.2 7.5 8.3 -13% of which Oil & Gas 30.3 32.5 -7%
0.7 1.0 1.8 -62% of which CCGT 4.3 7.2 -40%
11.5 12.1 14.7 -22% Scope 1+2 - equity share 48.9 56.1 -13%
Estimated quarterly emissions.
Scope 1+2 emissions from operated installations were down 22% year-on-year in
the fourth quarter 2023, thanks to the continuous decline in flaring emissions
on Exploration & Production facilities and the exceptional use of
gas-fired power plants in 2022.
2023 methane emissions from operated facilities were down 19% compared to 2022
mainly due continuous decrease in flaring and of fugitive emissions on
Exploration & Production and were down 47% compared to the 2020 reference
level.
4Q23 3Q23 4Q22 4Q23 Methane emissions (ktCH4) 2023 2022 2023
vs
vs
4Q22
2022
9 7 11 -21% Methane emissions from operated facilities 34 42 -19%
11 9 10 +12% Methane emissions - equity share 40 47 -14%
Estimated quarterly emissions.
Scope 3 emissions (MtCO2e) 2023 2022
Scope 3 from Oil, Biofuels and Gas Worldwide ((13)) 355 389
3.3 Production((14))
4Q23 3Q23 4Q22 4Q23 Hydrocarbon production 2023 2022 2023
vs
vs
4Q22
2022
2,462 2,476 2,812 -12% Hydrocarbon production (kboe/d) 2,483 2,765 -10%
1,341 1,399 1,357 -1% Oil (including bitumen) (kb/d) 1,388 1,307 +6%
1,121 1,077 1,455 -23% Gas (including condensates and associated NGL) (kboe/d) 1,095 1,458 -25%
2,462 2,476 2,812 -12% Hydrocarbon production (kboe/d) 2,483 2,765 -10%
1,506 1,561 1,570 -4% Liquids (kb/d) 1,550 1,519 +2%
5,158 4,921 6,681 -23% Gas (Mcf/d) 5,028 6,759 -26%
2,462 2,476 2,475 -1% Hydrocarbon production excluding Novatek (kboe/d) 2,483 2,437 +2%
Hydrocarbon production was 2,462 thousand barrels of oil equivalent per day in
the fourth quarter 2023, down 1% quarter-over-quarter. Fourth quarter
benefited from LNG production growth, which partially compensated for the
Canadian oil sands assets disposals that were effective this quarter.
Hydrocarbon production was 2,483 thousand barrels of oil equivalent per day in
2023, up 2% year-on-year (excluding Novatek) and was comprised of:
* +4% due to start-ups and ramp-ups, including Johan Sverdrup Phase 2 in Norway,
Mero 1 in Brazil, Ikike in Nigeria, Block 10 in Oman, and Absheron in
Azerbaijan,
* +1% due to improved security conditions in Nigeria and Libya,
* +1% due to lower planned maintenance and unplanned shutdowns, including at the
Kashagan field in Kazakhstan,
* -1% portfolio effect related to the end of the Bongkot operating licenses in
Thailand, exit from Termokarstovoye in Russia, disposal of the Canadian oil
sands assets and effective withdrawal from Myanmar, partially offset by the
entries in the producing fields of SARB Umm Lulu in the United Arab Emirates,
of Sépia and Atapu in Brazil, of Ratawi in Iraq, and the increased
participation in the Waha concessions in Libya,
* -3% due to the natural field declines.
4. Analysis of business segments
4.1 Exploration & Production
4.1.1 Production
4Q23 3Q23 4Q22 4Q23 Hydrocarbon production 2023 2022 2023
vs
vs
4Q22
2022
1,998 2,043 2,309 -13% EP (kboe/d) 2,034 2,296 -11%
1,448 1,507 1,512 -4% Liquids (kb/d) 1,492 1,466 +2%
2,946 2,865 4,261 -31% Gas (Mcf/d) 2,900 4,492 -35%
1,998 2,043 2,030 -2% EP excluding Novatek (kboe/d) 2,034 2,025 -
4.1.2 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars, except effective tax rate 2023 2022 2023
vs
vs
4Q22
2022
2,802 3,138 3,528 -21% Adjusted net operating income 10,942 17,479 -37%
130 125 316 -59% including adjusted income from equity affiliates 539 1,335 -60%
47.7% 44.6% 54.4% Effective tax rate ((15)) 50.0% 50.8%
3,117 2,557 2,219 +40% Organic investments( (1)) 10,232 7,507 +36%
(4,306) (514) 105 ns Net acquisitions ((1)) (2,706) 2,520 ns
(1,189) 2,043 2,324 ns Net investments( (1)) 7,526 10,027 -25%
4,690 5,165 4,988 -6% Cash flow from operations excluding working capital (CFFO) ((1)) 19,126 26,080 -27%
5,708 4,240 4,035 +41% Cash flow from operating activities 18,531 27,654 -33%
Exploration & Production adjusted net operating income was:
* $2,802 million in the fourth quarter 2023, down 11% quarter-to-quarter
primarily driven by lower oil prices,
* $10,942 million in 2023, down 37% year-on-year, mainly due to lower oil and
gas prices.
Cash flow from operations excluding working capital (CFFO) was:
* $4,690 million in the fourth quarter 2023, down 9% quarter-to-quarter,
primarily driven by lower oil prices,
* $19,126 million in 2023, down 27% year-on-year, mainly due to lower oil and
gas prices.
4.2 Integrated LNG
4.2.1 Production
4Q23 3Q23 4Q22 4Q23 Hydrocarbon production for LNG 2023 2022 2023
vs
vs
4Q22
2022
464 433 503 -8% Integrated LNG (kboe/d) 449 469 -4%
58 54 58 -2% Liquids (kb/d) 58 53 +10%
2,212 2,056 2,420 -9% Gas (Mcf/d) 2,128 2,267 -6%
464 433 445 +4% Integrated LNG excluding Novatek (kboe/d) 449 413 +9%
4Q23 3Q23 4Q22 4Q23 Liquefied Natural Gas in Mt 2023 2022 2023
vs
vs
4Q22
2022
11.8 10.5 12.7 -7% Overall LNG sales 44.3 48.1 -8%
4.0 3.7 4.4 -10% incl. Sales from equity production* 15.2 17.0 -10%
10.8 9.4 11.4 -6% incl. Sales by TotalEnergies from equity production and third party purchases 40.1 42.8 -6%
* The Company’s equity production may be sold by TotalEnergies or by the
joint ventures.
Hydrocarbon production for LNG (excluding Novatek) was up 7%
quarter-to-quarter, reflecting lower unplanned shutdowns. For full-year 2023,
hydrocarbon production for LNG (excluding Novatek) was up 9% compared to 2022
due to increased supply to NLNG in Nigeria and higher availability of Ichthys
LNG in Australia and Snøvhit in Norway.
In the fourth quarter 2023, LNG sales increased 13% quarter-to-quarter, mainly
due to higher production and higher spot volumes.
For full-year 2023, LNG sales were down 8% compared to 2022, mainly due to
lower spot volumes related to lower demand in Europe as a result of a milder
winter weather and high inventories.
4.2.2 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
1,456 1,342 2,408 -40% Adjusted net operating income 6,200 11,169 -44%
500 385 1,213 -59% including adjusted income from equity affiliates 2,103 5,637 -63%
790 495 195 x4.1 Organic investments( (1)) 2,063 519 x4
48 84 19 x2.5 Net acquisitions ((1)) 1,096 (47) ns
838 579 214 x3.9 Net investments( (1)) 3,159 472 x6.7
1,763 1,648 2,688 -34% Cash flow from operations excluding working capital (CFFO) ((1)) 7,293 9,784 -25%
2,702 872 134 x20.2 Cash flow from operating activities 8,442 9,604 -12%
Integrated LNG adjusted net operating income was $1,456 million in the fourth
quarter 2023, up 8% quarter-to-quarter, reflecting the evolution of prices and
production volumes. For full-year 2023, Integrated LNG adjusted net operating
income was $6,200 million, down 37% year-on-year (excluding Novatek), mainly
due to the exceptional environment in 2022 linked to the energy crisis in
Europe resulting from the Russia-Ukraine conflict.
Cash flow from operations excluding working capital (CFFO) for Integrated LNG
was $1,763 million in the fourth quarter 2023, up 7% quarter-to-quarter,
reflecting the evolution of prices and production volumes.
Integrated LNG CFFO was down 25% year-on-year (excluding Novatek), mainly due
to lower LNG prices that were partially offset by high margins captured in
2022 on LNG cargoes delivered in 2023.
4.3 Integrated Power
4.3.1 Capacities, productions, clients and sales
4Q23 3Q23 4Q22 4Q23 Integrated Power 2023 2022 2023
vs
vs
4Q22
2022
8.0 8.9 9.4 -16% Net power production (TWh) * 33.4 33.2 +1%
5.5 5.4 3.3 +65% o/w power production from renewables 18.9 10.4 +82%
2.5 3.5 6.1 -59% o/w CCGT 14.5 22.8 -36%
17.3 15.9 12.0 +44% Portfolio of power generation net installed capacity (GW) ** 17.3 12.0 +44%
13.0 11.6 7.7 +69% o/w renewables 13.0 7.7 +69%
4.3 4.3 4.3 - o/w CCGT 4.3 4.3 -
80.1 80.5 69.0 +16% Portfolio of renewable power generation gross capacity (GW) **,*** 80.1 69.0 +16%
22.4 20.2 16.8 +33% o/w installed capacity 22.4 16.8 +33%
5.9 6.0 6.1 -3% Clients power - BtB and BtC (Million) ** 5.9 6.1 -3%
2.8 2.8 2.7 +1% Clients gas - BtB and BtC (Million) ** 2.8 2.7 +1%
13.9 11.2 14.6 -5% Sales power - BtB and BtC (TWh) 52.1 55.3 -6%
30.7 13.8 28.1 +9% Sales gas - BtB and BtC (TWh) 100.9 96.3 +5%
* Solar, wind, hydroelectric and combined-cycle gas turbine (CCGT) plants.
** End of period data.
*** Includes 20% of Adani Green Energy Ltd’s gross capacity effective first
quarter 2021, 50% of Clearway Energy Group’s gross capacity effective third
quarter 2022 and 49% of Casa dos Ventos’ gross capacity effective first
quarter 2023.
Net power production was 8.0 TWh in the fourth quarter 2023, down 10%
quarter-to-quarter due to lower CCGT generation. For the full-year 2023, net
power production was 33.4 TWh, up 1% year-on-year as lower generation from
flexible capacity, whose utilization rate was exceptional in 2022 due to the
energy crisis in Europe, was more than compensated by growing electricity
generation from renewables that is related to the integration of 100% of Total
Eren and contribution from Clearway in the US and Casa dos Ventos in Brazil.
Gross installed renewable power generation capacity reached more than 22 GW at
the end of the fourth quarter 2023, up by more than 2 GW quarter-to-quarter,
including 1.3 GW installed in the US (Clearway, Danish) and 0.5 GW from the
creation of a new 50/50 JV with AGEL in India. In 2023, gross installed
renewable capacity grew by nearly 6 GW.
4.3.2 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
527 506 481 +10% Adjusted net operating income 1,853 975 +90%
21 37 88 -76% including adjusted income from equity affiliates 137 201 -32%
674 578 455 +48% Organic investments( (1)) 2,582 1,385 +86%
532 1,354 (230) ns Net acquisitions ((1)) 2,363 2,136 +11%
1,206 1,932 225 x5.4 Net investments( (1)) 4,945 3,521 +40%
705 516 439 +61% Cash flow from operations excluding working capital (CFFO) ((1)) 2,152 970 x2.2
638 1,936 861 -26% Cash flow from operating activities 3,573 66 x54.1
Integrated Power adjusted net operating income was:
* $527 million in the fourth quarter 2023, up 10% year-on-year and up 4%
quarter-to-quarter due to performance of its integrated electricity portfolio,
* $1,853 million in 2023, up 90% year-on-year, demonstrating the performance of
its integrated business model along the power value chain: renewables, CCGT,
trading, and B2B & B2C marketing.
Integrated Power cash flow from operations excluding working capital (CFFO)
was:
* $705 million in the fourth quarter 2023, up 61% year-on-year and 37%
quarter-to-quarter, as the fourth quarter further benefited from dividend
distributions from equity affiliates,
* $2,152 million in 2023, more than twice 2022 CFFO, with all the segments of
the value chain contributing to growth.
4.4 Downstream (Refining & Chemicals and Marketing & Services)
4.4.1 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
939 1,822 1,821 -48% Adjusted net operating income 6,112 8,852 -31%
1,504 625 1,023 +47% Organic investments( (1)) 3,105 2,354 +32%
(1,679) (115) (28) ns Net acquisitions ((1)) (2,042) (159) ns
(175) 510 995 ns Net investments( (1)) 1,063 2,195 -52%
1,692 2,205 1,681 +1% Cash flow from operations excluding working capital (CFFO) ((1)) 8,171 10,069 -19%
6,584 2,266 939 x7 Cash flow from operating activities 9,914 11,787 -16%
4.5 Refining & Chemicals
4.5.1 Refinery and petrochemicals throughput and utilization rates
4Q23 3Q23 4Q22 4Q23 Refinery throughput and utilization rate* 2023 2022 2023
vs
vs
4Q22
2022
1,381 1,489 1,389 -1% Total refinery throughput (kb/d) 1,436 1,472 -2%
444 489 312 +42% France 414 348 +19%
582 589 580 - Rest of Europe 592 623 -5%
355 410 497 -29% Rest of world 431 501 -14%
79% 84% 77% Utilization rate based on crude only** 81% 82%
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year.
4Q23 3Q23 4Q22 4Q23 Petrochemicals production and utilization rate 2023 2022 2023
vs
vs
4Q22
2022
1,114 1,330 1,095 +2% Monomers* (kt) 4,896 5,005 -2%
985 1,070 917 +7% Polymers (kt) 4,130 4,549 -9%
60% 75% 66% Steam cracker utilization rate** 69% 76%
* Olefins.
** Based on olefins production from steam crackers and their treatment
capacity at the start of the year.
Refining throughput was:
* down 7% quarter-on-quarter mainly due to turnarounds at Satorp and Antwerp and
the gradual restart of the Port Arthur refinery,
* down 2% year-on-year in 2023 mainly due to a slightly lower refinery
utilization rate reflecting the major turnaround schedule of the year.
Petrochemicals production was:
* down 16% quarter-on-quarter for monomers and 8% for polymers due to weak
demand for chemicals mainly in Europe impacting steam cracker utilization
rate,
* down 2% year-on-year in 2023 for monomers and 9% for polymers for the same
reasons, with monomers partially compensated by the ramp up of ethane cracker
unit in Port Arthur in the US.
4.5.2 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
633 1,399 1,487 -57% Adjusted net operating income 4,654 7,302 -36%
1,002 386 585 +71% Organic investments( (1)) 2,040 1,319 +55%
(11) (97) (5) ns Net acquisitions ((1)) (118) (38) ns
991 289 580 +71% Net investments( (1)) 1,922 1,281 +50%
1,173 1,618 1,144 +3% Cash flow from operations excluding working capital (CFFO) ((1)) 5,853 7,704 -24%
4,825 2,060 232 x20.8 Cash flow from operating activities 7,957 8,663 -8%
Refining & Chemicals adjusted net operating income was
* $633 million in the fourth quarter 2023, down 55% sequentially due to lower
refining margins, turnarounds at Satorp in Saudi Arabia, the Port Arthur
refinery in the US and at the Antwerp refinery in Belgium, and weak
petrochemical demand, particularly in Europe,
* $4,654 million in full-year 2023, down 36% year-on-year, due to the decrease
in refining margins and refining throughput.
Cash flow from operations excluding working capital (CFFO) was
* $1,173 million in the fourth quarter 2023, down 28% sequentially for the same
reasons as above, although partially offset by dividends received from equity
affiliates during the fourth quarter,
* $5,853 million in full-year 2023 down 24% year-on-year for the same reasons.
4.6 Marketing & Services
4.6.1 Petroleum product sales
4Q23 3Q23 4Q22 4Q23 Sales in kb/d* 2023 2022 2023
vs
vs
4Q22
2022
1,341 1,399 1,450 -7% Total Marketing & Services sales 1,375 1,468 -6%
755 792 816 -8% Europe 776 824 -6%
587 608 634 -7% Rest of world 599 644 -7%
* Excludes trading and bulk refining sales.
Sales of petroleum products were down year-on-year by 7% in the fourth quarter
and by 6% in full-year 2023 due to the lower industrial and commercial demand
mainly in Europe and the disposal of 50% of the fuel distribution business in
Egypt, which were partially offset by recovery in the aviation business.
4.6.2 Results
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
306 423 334 -8% Adjusted net operating income 1,458 1,550 -6%
502 239 438 +15% Organic investments( (1)) 1,065 1,035 +3%
(1,668) (18) (23) ns Net acquisitions ((1)) (1,924) (121) ns
(1,166) 221 415 ns Net investments( (1)) (859) 914 ns
519 587 537 -3% Cash flow from operations excluding working capital (CFFO) ((1)) 2,318 2,365 -2%
1,759 206 707 x2.5 Cash flow from operating activities 1,957 3,124 -37%
Marketing & Services adjusted net operating income was $306 million for
the fourth quarter and $1,458 million for the full-year 2023, decreasing 8%
and 6%, respectively, year-on-year due to lower sales.
Cash flow from operations excluding working capital (CFFO) decreased by 3%
year-on-year to $519 million in the fourth quarter 2023 and by 2% year-on-year
to $2,318 million in full-year 2023.
5. TotalEnergies results
5.1 Adjusted net operating income from business segments
Adjusted net operating income from business segments was:
* $5,724 million in the fourth quarter 2023, compared to $6,808 million in the
third quarter 2023 mainly due to lower oil prices and refining margins,
* $25,107 million in 2023, compared to $38,475 million in 2022 due to lower oil
& gas prices and lower refining margins compared to the exceptional
environment in 2022.
5.2 Adjusted net income((1) )(TotalEnergies share)
TotalEnergies adjusted net income was $5,226 million in the fourth quarter
2023 versus $6,453 million in the third quarter 2023, for the same reasons.
Adjustments to net income((1)) were ($163) million in the fourth quarter 2023,
consisting mainly of:
* $1.8 billion gain on asset sales, including the sale of our retail network in
Germany and of our Canadian assets,
* ($1.0) billion related to asset impairments, primarily related to mature
upstream assets in Congo and timing effect of taxes at Al Shaheen in Qatar,
* ($0.3) billion in inventory effects and effects of changes in fair value,
* ($0.6) billion in other adjustments, primarily related to the devaluation of
the Argentine peso and the CCGT Infra-Marginal Income Contribution in France
For the full-year 2023, these items amounted to ($1,792) million, consisting
mainly of:
* $2.0 billion gain on asset sales, including the sale of our retail network in
Germany and of our Canadian assets,
* ($2.2) billion related to asset impairments, primarily related to upstream
assets in Kenya and upstream mature assets in Congo, as well as Al Shaheen in
Qatar for timing effect of taxes, the Yunlin offshore wind project in Taiwan,
divestment projects of Naphtachimie to INEOS and the Natref refinery in South
Africa, as well as client portfolios related to goodwills from gas & power
marketing activities in Belgium, Spain, and France,
* ($0.7) billion in inventory effects and effects of changes in fair value,
* ($0.9) billion in other adjustments, notably the revaluation of Total Eren’s
previously held equity interest, the devaluation of the Argentine peso, the
CCGT Infra-Marginal Income Contribution in France and the exceptional European
solidarity contribution.
TotalEnergies’ average tax rate was:
* 37.7% in the fourth quarter 2023 versus 33.4% in the third quarter 2023,
mainly related to the Canadian oil sands assets disposals and to the higher
relative weight of highly taxed North Sea assets in Exploration &
Production,
* 37.5% in 2023 versus 40.9% in 2022, mainly due to the lower relative weight of
Exploration & Production in Company results, in line with the evolution of
oil and gas prices.
5.3 Adjusted earnings per share
Adjusted diluted net earnings per share were:
* $2.16 in the fourth quarter 2023, based on 2,387 million weighted average
diluted shares, compared to $2.63 in the third quarter 2023,
* $9.40 in 2023, based on 2,434 million weighted average diluted shares,
compared to $13.94 in 2022.
As of December 31, 2023, the number of diluted shares was 2,373 million.
As part of its shareholder return policy, TotalEnergies repurchased:
* 43.7 million shares for cancellation in the fourth quarter 2023 for $2.9
billion,
* 142.6 million shares for cancellation in 2023 for $9.0 billion.
5.4 Acquisitions – asset sales
Acquisitions were:
* $698 million in the fourth quarter 2023, primarily related to Integrated
Power, including the creation of a new joint venture with AGEL in India and
the acquisition of 50% of Rönesans Enerji in Turkey,
* $6,428 million in 2023, mainly related to the above items, as well as the
acquisition of the remaining 70.4% of Total Eren, a 20% interest in the SARB
and Umm Lulu concession in the United Arab Emirates, the acquisition of a
6.25% stake in the NFE LNG project and 9.375% in NFS LNG project in Qatar, and
a 34% stake in a joint venture with Casa dos Ventos in Brazil.
Divestments were:
* $6,102 million in the fourth quarter 2023, primarily due to the sale of our
Canadian assets to ConocoPhillips and Suncor and the sale of our retail
network in Germany to Alimentation Couche-Tard,
* $7,717 million in 2023, due to the above items as well as the sale of a 40%
interest to ADNOC in Block 20 in Angola and a partial farm down in an offshore
wind project off the coast of New York and New Jersey in the US.
5.5 Net cash flow((1))
TotalEnergies' net cash flow( )was:
* $7,765 million in the fourth quarter 2023 compared to $4,249 million in the
third quarter, reflecting the $840 million decrease in CFFO that was more than
offset by the $4,356 million decrease in net investments to $735 million in
the fourth quarter 2023,
* $19,109 million in 2023 compared to $29,426 million in 2022, reflecting the
$9,783 million decrease in CFFO and the $534 million increase in net
investments to $16,837 million in 2023.
2023 cash flow from operating activities was $40,679 million versus CFFO of
$35,946 million, which reflects positive variation from a working capital
release of $4.8 billion, of which around $2 billion is related to exceptional
fiscal debt variations that are mainly due to the change of the gas and power
price cap compensation system in France and the disposal of our German retail
network to Alimentation Couche Tard.
5.6 Profitability
Return on equity was 20.4% for the twelve months ended December 31, 2023.
In millions of dollars January 1, 2023 October 1, 2022 January 1, 2022
December 31, 2023 September 30, 2023 De
ce
mb
er
31
,
20
22
Adjusted net income ((1)) 23,450 25,938 36,657
Average adjusted shareholders' equity 115,006 116,529 112,831
Return on equity (ROE) 20.4% 22.3% 32.5%
Return on average capital employed((1)) was 18.9% for the twelve months ended
December 31, 2023.
In millions of dollars January 1, 2023 October 1, 2022 January 1, 2022
December 31, 2023 September 30, 2023 De
ce
mb
er
31
,
20
22
Adjusted net operating income ((1)) 24,684 27,351 38,212
Average capital employed ((1)) 130,517 135,757 135,312
ROACE( (1)) 18.9% 20.1% 28.2%
6. TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, amounted to €11,232
million in 2023, compared to €7,835 million in 2022.
7. Annual 2024 Sensitivities((16))
Change Estimated impact on adjusted Estimated impact on cash flow from operations
net operating income
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$
8. Outlook
At the start of 2024, Brent prices are navigating around 80 $/b in an
uncertain economic environment. Oil markets are facing geopolitical tensions
in the Middle East on one hand and non-OPEC production growth balanced by
OPEC+ policy on the other hand. According to the IEA, global oil demand is
anticipated to grow 1.2 Mb/d in 2024, which is in line with the average annual
demand growth rate during 2000-2023 of 1.2%/yr.
LNG markets should remain in tension due to very limited LNG capacity
additions expected in 2024 (2%) and growing demand thanks to lower LNG prices.
TotalEnergies expects LNG sales above 40 Mt over the year. 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 stable
around $10/Mbtu in the first quarter 2024.
First quarter 2024 expected hydrocarbon production should be above 2.4 Mboe/d
due to the start-up of Mero 2 in Brazil and the disposals of Canadian upstream
assets, effective during fourth quarter 2023. For 2024, TotalEnergies
anticipates hydrocarbon production will grow 2% compared to 2023 excluding
Canada. Production will benefit from several additional project start-ups,
including Tyra in Denmark and Anchor in the US.
Full-year refining utilization rate is expected to increase to above 85% in
2024 with no major turnarounds planned.
Momentum continues in Integrated Power growth in 2024 with cash flow before
working capital (CFFO) forecasted to increase to between $2.5 and $3 billion.
The increase is supported by net electricity generation increase to >45 TWh
in the context of renewables gross installed capacity increasing by ~6 GW to
28 GW.
In 2024, TotalEnergies expects net investments of $17-18 billion, of which $5
billion dedicated to Integrated Power.
Confident in the strong fundamentals of the Company, which celebrates its 100
year anniversary in 2024, the Board of Directors confirmed a shareholder
return policy for 2024 targeting >40% CFFO payout, which will combine an
increase in interim dividends of 6.8% to €0.79/share and $2 billion of share
buybacks in the first quarter of 2024, in line with the following cash flow
allocation priorities:
* a sustainable ordinary dividend through cycles, that was not cut during the
Covid crisis, and whose increase is supported by underlying cash flow growth,
* investments to support of a strategy balanced between the various energies,
* maintaining a strong balance sheet,
* buybacks to share surplus cash flow generated at high prices.
* * * *
To listen to the conference call with CEO Patrick Pouyanné and CFO
Jean-Pierre Sbraire today at 10:30am (Paris time), please log on to
totalenergies.com or dial +33 (0) 1 70 37 71 66, +44 (0) 33 0551 0200 or +1
786 697 3501. 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)
4Q23 3Q23 4Q22 4Q23 Combined liquids and gas 2023 2022 2023
vs production by region (kboe/d)
vs
4Q22
2022
592 550 918 -35% Europe 565 918 -38%
451 459 477 -5% Africa 471 474 -1%
788 781 703 +12% Middle East and North Africa 764 687 +11%
376 445 442 -15% Americas 426 425 -
256 241 272 -6% Asia-Pacific 257 262 -2%
2,462 2,476 2,812 -12% Total production 2,483 2,765 -10%
331 327 670 -51% includes equity affiliates 335 682 -51%
4Q23 3Q23 4Q22 4Q23 Liquids production by region (kb/d) 2023 2022 2023
vs
vs
4Q22
2022
236 229 282 -16% Europe 232 280 -17%
328 335 358 -8% Africa 348 358 -3%
629 627 565 +11% Middle East and North Africa 612 552 +11%
207 268 259 -20% Americas 251 238 +6%
106 102 106 -1% Asia-Pacific 107 91 +18%
1,506 1,561 1,570 -4% Total production 1,550 1,519 +2%
141 156 199 -29% includes equity affiliates 150 203 -26%
4Q23 3Q23 4Q22 4Q23 Gas production by region (Mcf/d) 2023 2022 2023
vs
vs
4Q22
2022
1,921 1,733 3,412 -44% Europe 1,801 3,426 -47%
612 619 592 +3% Africa 614 584 +5%
881 844 745 +18% Middle East and North Africa 833 739 +13%
941 989 1,030 -9% Americas 975 1,049 -7%
803 736 902 -11% Asia-Pacific 805 961 -16%
5,158 4,921 6,681 -23% Total production 5,028 6,759 -26%
1,027 933 2,535 -60% includes equity affiliates 1,004 2,581 -61%
9.2 Downstream (Refining & Chemicals and Marketing & Services)
4Q23 3Q23 4Q22 4Q23 Petroleum product sales by region (kb/d) 2023 2022 2023
vs
vs
4Q22
2022
1,789 1,838 1,665 +7% Europe 1,734 1,732 -
610 621 743 -18% Africa 624 732 -15%
1,055 946 740 +43% Americas 942 836 +13%
697 624 558 +25% Rest of world 652 591 +10%
4,151 4,029 3,706 +12% Total consolidated sales 3,953 3,891 +2%
402 407 388 +4% Includes bulk sales 405 411 -1%
2,408 2,222 1,868 +29% Includes trading 2,173 2,012 +8%
4Q23 3Q23 4Q22 4Q23 Petrochemicals production* (kt) 2023 2022 2023
vs
vs
4Q22
2022
845 1,018 835 +1% Europe 3,936 4,196 -6%
528 611 477 +11% Americas 2,366 2,387 -1%
725 771 700 +4% Middle East and Asia 2,724 2,971 -8%
* Olefins, polymers.
9.3 Integrated Power
9.3.1 Net power production
4Q23 3Q23
Net power production (TWh) Solar Onshore Wind Offshore Wind Gas Others Total Solar Onshore Wind Offshore Wind Gas Others Total
France 0.1 0.3 - 1.6 0.0 2.0 0.2 0.1 - 2.0 0.0 2.3
Rest of Europe 0.0 0.5 0.6 0.6 0.1 1.8 0.1 0.4 0.1 1.1 0.0 1.7
Africa 0.0 0.0 - - - 0.0 0.0 0.0 - - - 0.0
Middle East 0.2 - - 0.3 - 0.4 0.2 - - 0.5 - 0.7
North America 0.4 0.5 - - - 0.9 0.6 0.4 - - - 1.1
South America 0.1 0.9 - - - 1.0 0.1 0.9 - - - 1.0
India 1.3 0.2 - - - 1.5 1.4 0.4 - - - 1.7
Pacific Asia 0.3 0.0 0.1 - - 0.4 0.4 0.0 0.0 - - 0.4
Total 2.4 2.3 0.7 2.5 0.1 8.0 3.0 2.2 0.2 3.5 0.0 8.9
9.3.2 Installed power generation net capacity
4Q23 3Q23
Installed power generation net capacity (GW) ((19)) Solar Onshore Wind Offshore Wind Gas Others Total Solar Onshore Wind Offshore Wind Gas Others Total
France 0.5 0.3 - 2.6 0.1 3.6 0.5 0.3 - 2.6 0.1 3.5
Rest of Europe 0.2 0.9 0.6 1.4 0.1 3.2 0.2 0.9 0.6 1.4 0.0 3.1
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 2.0 0.8 - - 0.2 3.0 1.5 0.8 - - 0.0 2.3
South America 0.4 0.8 - - - 1.2 0.5 0.7 - - - 1.2
India 3.8 0.5 - - - 4.3 3.5 0.4 - - - 3.9
Pacific Asia 1.0 0.0 0.1 - 0.0 1.1 1.0 0.0 0.1 - 0.0 1.0
Total 8.5 3.4 0.7 4.3 0.5 17.3 7.6 3.2 0.6 4.3 0.2 15.9
9.3.3 Power generation gross capacity from renewables
4Q23 3Q23
Installed power generation gross capacity from renewables (GW) ((20),(21)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.9 0.6 - 0.1 1.6 0.8 0.6 - 0.1 1.6
Rest of Europe 0.2 1.1 1.1 0.2 2.6 0.2 1.1 1.1 0.0 2.4
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 4.9 2.1 - 0.5 7.5 3.9 2.1 - 0.1 6.2
South America 0.4 1.2 - - 1.6 0.4 1.2 - - 1.6
India 5.4 0.5 - - 5.9 5.1 0.4 - - 5.5
Asia-Pacific 1.5 0.0 0.3 0.0 1.8 1.4 0.0 0.2 0.0 1.6
Total 14.6 5.5 1.4 0.8 22.4 13.1 5.5 1.3 0.3 20.2
4Q23 3Q23
Power generation gross capacity from renewables in construction (GW) ((20),(21)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.2 0.0 0.0 0.0 0.2 0.2 0.0 0.0 0.0 0.3
Rest of Europe 0.4 0.0 - 0.1 0.5 0.4 0.0 - 0.0 0.5
Africa 0.0 - - 0.0 0.0 0.0 - - 0.0 0.0
Middle East 0.1 - - - 0.1 0.1 - - - 0.1
North America 1.4 0.1 - 0.2 1.7 2.3 0.1 - 0.5 3.0
South America 0.0 0.4 - 0.0 0.4 0.1 0.1 - - 0.2
India 0.6 - - - 0.6 0.4 0.1 - - 0.4
Asia-Pacific 0.0 0.0 0.4 - 0.4 0.1 0.0 0.5 - 0.6
Total 2.8 0.6 0.4 0.3 4.1 3.8 0.3 0.5 0.6 5.2
4Q23 3Q23
Power generation gross capacity from renewables in development (GW) ((20),(21)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.7 0.4 - 0.0 1.2 0.9 0.5 - 0.0 1.4
Rest of Europe 4.6 0.3 7.4 0.1 12.4 4.6 0.5 7.4 0.1 12.6
Africa 1.1 0.3 - 0.3 1.7 1.2 0.3 - 0.0 1.5
Middle East 1.5 0.7 - - 2.2 1.7 0.7 - - 2.4
North America 8.2 3.4 4.1 5.4 21.1 8.3 3.3 4.1 5.2 20.9
South America 1.4 0.8 - 0.4 2.6 1.4 1.3 - 0.4 3.0
India 4.7 0.2 - - 4.9 4.0 0.1 - - 4.1
Asia-Pacific 2.9 0.4 2.9 1.3 7.5 3.4 1.3 2.9 1.6 9.2
Total 25.3 6.5 14.4 7.5 53.7 25.6 7.9 14.4 7.2 55.2
10. Alternative Performance Measures (Non-GAAP measures)
10.1 Adjustment items to net income (TotalEnergies share)
4Q23 3Q23 4Q22 In millions of dollars 2023 2022
5,063 6,676 3,264 Net income (TotalEnergies share) 21,384 20,526
180 (749) (5,585) Special items affecting net income (TotalEnergies share) (1,105) (17,310)
1,844 - - Gain (loss) on asset sales 2,047 1,391
(51) - (14) Restructuring charges (56) (42)
(1,023) (614) (3,845) Impairments (2,166) (15,743)
(590) (135) (1,726) Other * (930) (2,916)
(535) 607 (705) After-tax inventory effect : FIFO vs. replacement cost (699) 501
192 365 1,993 Effect of changes in fair value 12 1,138
(163) 223 (4,297) Total adjustments affecting net income (1,792) (15,671)
5,226 6,453 7,561 Adjusted net income (TotalEnergies share) 23,176 36,197
* Other adjustment items for net income in the fourth quarter amounted to
($590) million mainly due to the impact of the European solidarity
contribution and of the Electricity Generation Infra-Marginal Income
Contribution in France and of the devaluation of the Argentine peso. Other
adjustment items for net income for the year amounted to ($930) million
including $388 million of revaluation of Total Eren’s previously held equity
interest and ($1,318) million mainly due to the impact of the European
solidarity contribution and of the Electricity Generation Infra-Marginal
Income Contribution in France and of the devaluation of the Argentine peso.
10.2 Reconciliation of adjusted EBITDA with consolidated financial statements
10.2.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
5,063 6,676 3,264 +55% Net income (TotalEnergies share) 21,384 20,526 +4%
163 (223) 4,297 -96% Less: adjustment items to net income (TotalEnergies share) 1,792 15,671 -89%
5,226 6,453 7,561 -31% Adjusted net income (TotalEnergies share) 23,176 36,197 -36%
Adjusted items
57 82 210 -73% Add: non-controlling interests 274 460 -40%
3,004 3,130 4,530 -34% Add: income taxes 12,939 20,565 -37%
3,060 2,967 3,204 -4% Add: depreciation, depletion and impairment of tangible assets and mineral interests 12,012 12,316 -2%
115 88 111 +4% Add: amortization and impairment of intangible assets 394 400 -2%
660 726 719 -8% Add: financial interest on debt 2,820 2,386 +18%
(426) (384) (338) ns Less: financial income and expense from cash & cash equivalents (1,585) (746) ns
11,696 13,062 15,997 -27% Adjusted EBITDA 50,030 71,578 -30%
10.2.2 Reconciliation of revenues from sales to adjusted EBITDA and net income
(TotalEnergies share)
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
Adjusted items
54,765 54,413 63,884 -14% Revenues from sales 218,945 263,206 -17%
(36,651) (34,738) (42,755) ns Purchases, net of inventory variation (142,247) (171,049) ns
(6,956) (7,346) (7,027) ns Other operating expenses (29,808) (28,745) ns
(174) (245) (250) ns Exploration costs (575) (574) ns
169 142 636 -73% Other income 504 1,349 -63%
(150) 64 (480) ns Other expense, excluding amortization and impairment of intangible assets (288) (1,142) ns
276 296 266 +4% Other financial income 1,221 812 +50%
(180) (186) (150) ns Other financial expense (722) (533) ns
597 662 1,873 -68% Net income (loss) from equity affiliates 3,000 8,254 -64%
11,696 13,062 15,997 -27% Adjusted EBITDA 50,030 71,578 -30%
Adjusted items
(3,060) (2,967) (3,204) ns Less: depreciation, depletion and impairment of tangible assets and mineral interests (12,012) (12,316) ns
(115) (88) (111) ns Less: amortization of intangible assets (394) (400) ns
(660) (726) (719) ns Less: financial interest on debt (2,820) (2,386) ns
426 384 338 +26% Add: financial income and expense from cash & cash equivalents 1,585 746 x2.1
(3,004) (3,130) (4,530) ns Less: income taxes (12,939) (20,565) ns
(57) (82) (210) ns Less: non-controlling interests (274) (460) ns
(163) 223 (4,297) ns Add: adjustment (TotalEnergies share) (1,792) (15,671) ns
5,063 6,676 3,264 +55% Net income (TotalEnergies share) 21,384 20,526 +4%
10.3 Investments – Divestments (TotalEnergies share)
Reconciliation of Cash flow used in investing activities to Net investments
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
632 4,987 3,681 -83% Cash flow used in investing activities ( a ) 16,454 15,116 +9%
- - (50) -100% Other transactions with non-controlling interests ( b ) - (50) -100%
3 (17) 335 -99% Organic loan repayment from equity affiliates ( c ) (2) 1,630 ns
(3) 43 (233) ns Change in debt from renewable projects financing ( d ) * 78 (589) ns
71 64 61 +16% Capex linked to capitalized leasing contracts ( e ) 259 177 +46%
32 14 8 x4 Expenditures related to carbon credits ( f ) 48 19 x2.5
735 5,091 3,802 -81% Net investments ( a + b + c + d + e + f = g - i + h ) 16,837 16,303 +3%
(5,404) 808 (133) ns of which net acquisitions ( g-i ) (1,289) 4,451 ns
698 1,992 292 x2.4 Acquisitions ( g ) 6,428 5,872 +9%
6,102 1,184 425 x14.4 Asset sales ( i ) 7,717 1,421 x5.4
- (43) 109 -100% Change in debt from renewable projects (partner share) (81) 279 ns
6,139 4,283 3,935 +56% of which organic investments ( h ) 18,126 11,852 +53%
214 346 287 -25% Capitalized exploration 1,094 669 +64%
683 422 210 x3.3 Increase in non-current loans 1,845 954 +93%
(91) (120) (259) ns Repayment of non-current loans, excluding organic loan repayment from equity affiliates (524) (1,082) ns
(3) - (124) ns Change in debt from renewable projects (TotalEnergies share) (3) (310) 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
4Q23 3Q23 4Q22 4Q23 In millions of dollars 2023 2022 2023
vs
vs
4Q22
2022
16,150 9,496 5,618 x2.9 Cash flow from operating activities ( a ) 40,679 47,367 -14%
8,377 (582) (2,247) ns (Increase) decrease in working capital ( b ) * 5,526 2,831 +95%
(724) 764 (895) ns Inventory effect ( c ) (714) 501 ns
(0) 43 40 ns Capital gain from renewable project sales ( d ) 81 64 +25%
3 (17) 335 -99% Organic loan repayments from equity affiliates ( e ) (2) 1,630 ns
8,500 9,340 9,135 -7% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d + e ) 35,946 45,729 -21%
(29) (211) (226) ns Financial charges (505) (1,296) ns
8,529 9,551 9,361 -9% Debt Adjusted Cash Flow (DACF) 36,451 47,025 -22%
6,139 4,283 3,935 +56% Organic investments ( g ) 18,126 11,852 +53%
2,361 5,058 5,200 -55% Free cash flow after organic investments ( f - g ) 17,820 33,877 -47%
735 5,091 3,802 -81% Net investments ( h ) 16,837 16,303 +3%
7,765 4,249 5,333 +46% Net cash flow ( f - h ) 19,109 29,426 -35%
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
10.5 Gearing ratio
In millions of dollars 12/31/2023 09/30/2023 12/31/2022
Current borrowings * 7,869 15,193 14,065
Other current financial liabilities 446 415 488
Current financial assets * , ** (6,256) (6,585) (8,556)
Net financial assets classified as held for sale * 17 (44) (38)
Non-current financial debt * 32,722 33,947 36,987
Non-current financial assets * (1,229) (1,519) (1,303)
Cash and cash equivalents (27,263) (24,731) (33,026)
Net debt ( a ) 6,306 16,676 8,617
Shareholders’ equity (TotalEnergies share) 116,753 115,767 111,724
Non-controlling interests 2,700 2,657 2,846
Shareholders' equity (b) 119,453 118,424 114,570
Gearing = a / ( a+b ) 5.0% 12.3% 7.0%
Leases (c) 8,275 8,277 8,096
Gearing including leases ( a+c ) / ( a+b+c ) 10.9% 17.4% 12.7%
* 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
Full-year 2023
In millions of dollars Exploration & Production Integrated Integrated Power Refining & Chemicals Marketing & Services Company
LNG
Adjusted net operating income 10,942 6,200 1,853 4,654 1,458 24,684
Capital employed at 12/31/2022 65,784 33,671 16,225 7,438 7,593 128,811
Capital employed at 12/31/2023 63,870 36,048 21,511 6,043 7,674 132,222
ROACE 16.9% 17.8% 9.8% 69.0% 19.1% 18.9%
10.7 Payout
In millions of dollars 2023 9M23 2022
Dividend paid (parent company shareholders) ( a ) 7,517 5,648 9,986
Repayment of treasury shares 9,167 6,203 7,711
of which buy-backs ( b ) 9,000 6,082 7,019
Cash flow from operations excluding working capital (CFFO) (c) 35,946 27,446 45,729
Payout ratio = ( a+b ) / c 46.0% 42.7% 37.2%
GLOSSARY
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 acquisitions 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.
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 fourth quarter of 2023 and the
full year of 2023 from the consolidated financial statements of TotalEnergies
SE as of December 31, 2023 (unaudited). The audit procedures by the Statutory
Auditors are underway. The consolidated financial statements (unaudited) are
available on the website totalenergies.com. This document does not constitute
the annual financial report (rapport financier annuel) within the meaning of
article L.451.1.2 of the French monetary and financial code (code monétaire
et financier).
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 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
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 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)) Refer to Glossary pages 25 & 26 for the definitions and further
information on alternative performance measures (Non-GAAP measures) and to
page 21 and following for reconciliation tables.
* Applicable to employees covered by the Common Corpus of Employee Relations
Agreements (SSC) i.e., around 14,000 employees in France
** Applicable to employees of all fully owned companies in France and of
companies in which TotalEnergies holds more that 50% in France, subject to
agreement by their governing bodies.
((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.
* Applicable to employees of all fully owned companies in France and of
companies in which TotalEnergies holds more that 50% in France, subject to
agreement by their governing bodies.
((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: 1.0751 in the fourth quarter 2023, 1.0813
for 2023.
((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 indicator represents the average margin on variable costs realized
by TotalEnergies’ European refining business (equal to the difference
between the sales of refined products realized by TotalEnergies’ European
refining and the crude purchases as well as associated variable costs, divided
by refinery throughput in tons).
((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 2022
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 use by customers of energy
products, i.e., combustion of the products to obtain energy. The Company
follows the oil & gas industry reporting guidelines published by IPIECA,
which comply with the GHG Protocol methodologies. In order to avoid double
counting, this methodology accounts for the largest volume in the oil,
biofuels and gas value chains, i.e., the higher of the two production volumes
or sales to end customers. For TotalEnergies, in 2023, the calculation of
Scope 3 GHG emissions for the oil and biofuels value chains considers products
sales (higher than production) and for the gas value chain, gas sales either
as LNG or as part of direct sales to B2B/B2C (higher than marketable gas
production).
((14)) Company production = E&P production + Integrated LNG production.
((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).
((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 $/b Brent environment.
((18)) End-of-period data.
((19) )Includes 20% of the gross capacities of Adani Green Energy Limited, 50%
of Clearway Energy Group and, from 1Q23, 49% of Casa dos Ventos.
((20) )End-of-period data.
TotalEnergies financial statements
Fourth quarter and full-year 2023 consolidated account, IFRS
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
(M$) ((a)) 4th quarter 3rd quarter 4th quarter
2023 2023 2022
Sales 59,237 59,017 68,582
Excise taxes (4,472) (4,604) (4,629)
Revenues from sales 54,765 54,413 63,953
Purchases, net of inventory variation (37,150) (33,676) (41,555)
Other operating expenses (7,166) (7,562) (7,354)
Exploration costs (174) (245) (250)
Depreciation, depletion and impairment of tangible assets and mineral interests (3,539) (3,055) (2,505)
Other income 2,685 535 584
Other expense (802) (928) (2,828)
Financial interest on debt (660) (726) (719)
Financial income and expense from cash & cash equivalents 439 459 357
Cost of net debt (221) (267) (362)
Other financial income 303 311 266
Other financial expense (189) (186) (150)
Net income (loss) from equity affiliates (136) 754 (281)
Income taxes (3,339) (3,404) (6,077)
Consolidated net income 5,037 6,690 3,441
TotalEnergies share 5,063 6,676 3,264
Non-controlling interests (26) 14 177
Earnings per share ($) 2.11 2.74 1.27
Fully-diluted earnings per share ($) 2.09 2.73 1.26
((a)) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
(M$) 4th quarter 3rd quarter 4th quarter
2023 2023 2022
Consolidated net income 5,037 6,690 3,441
Other comprehensive income
Actuarial gains and losses (251) (1) 387
Change in fair value of investments in equity instruments (17) 3 (2)
Tax effect 42 (2) (56)
Currency translation adjustment generated by the parent company 3,025 (1,861) 6,800
Items not potentially reclassifiable to profit and loss 2,799 (1,861) 7,129
Currency translation adjustment (3,182) 1,204 (3,672)
Cash flow hedge 701 306 (9,669)
Variation of foreign currency basis spread (16) (3) (14)
Share of other comprehensive income of equity affiliates, net amount (144) 31 842
Other 3 (4) 3
Tax effect (212) (46) 2,932
Items potentially reclassifiable to profit and loss (2,850) 1,488 (9,578)
Total other comprehensive income (net amount) (51) (373) (2,449)
Comprehensive income 4,986 6,317 992
TotalEnergies share 4,995 6,313 792
Non-controlling interests (9) 4 200
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(M$) ((a)) Year Year
2023 2022
(unaudited)
Sales 237,128 280,999
Excise taxes (18,183) (17,689)
Revenues from sales 218,945 263,310
Purchases, net of inventory variation (143,041) (169,448)
Other operating expenses (30,419) (29,789)
Exploration costs (573) (1,299)
Depreciation, depletion and impairment of tangible assets and mineral interests (12,762) (12,221)
Other income 3,677 2,849
Other expense (2,396) (7,344)
Financial interest on debt (2,820) (2,386)
Financial income and expense from cash & cash equivalents 1,801 1,143
Cost of net debt (1,019) (1,243)
Other financial income 1,285 896
Other financial expense (731) (533)
Net income (loss) from equity affiliates 1,845 (1,892)
Income taxes (13,301) (22,242)
Consolidated net income 21,510 21,044
TotalEnergies share 21,384 20,526
Non-controlling interests 126 518
Earnings per share ($) 8.72 7.91
Fully-diluted earnings per share ($) 8.67 7.85
((a) )Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(M$) Year Year
2023 2022
(unaudited)
Consolidated net income 21,510 21,044
Other comprehensive income
Actuarial gains and losses (114) 574
Change in fair value of investments in equity instruments (11) 112
Tax effect (11) (96)
Currency translation adjustment generated by the parent company 2,573 (4,976)
Items not potentially reclassifiable to profit and loss 2,437 (4,386)
Currency translation adjustment (3,277) 1,734
Cash flow hedge 2,898 (5,452)
Variation of foreign currency basis spread (11) 65
Share of other comprehensive income of equity affiliates, net amount (208) 3,497
Other (2) (16)
Tax effect (730) 1,449
Items potentially reclassifiable to profit and loss (1,330) 1,277
Total other comprehensive income (net amount) 1,107 (3,109)
Comprehensive income 22,617 17,935
TotalEnergies share 22,534 17,419
Non-controlling interests 83 516
CONSOLIDATED BALANCE SHEET
TotalEnergies
(unaudited)
(M$) December 31, 2023 September 30, 2023 December 31, 2022
(unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,083 32,911 31,931
Property, plant and equipment, net 108,916 106,721 107,101
Equity affiliates : investments and loans 30,457 30,153 27,889
Other investments 1,543 1,342 1,051
Non-current financial assets 2,395 2,710 2,731
Deferred income taxes 3,418 3,535 5,049
Other non-current assets 4,313 3,991 2,388
Total non-current assets 184,125 181,363 178,140
Current assets
Inventories, net 19,317 22,512 22,936
Accounts receivable, net 23,442 23,598 24,378
Other current assets 20,821 22,252 36,070
Current financial assets 6,585 6,892 8,746
Cash and cash equivalents 27,263 24,731 33,026
Assets classified as held for sale 2,101 8,656 568
Total current assets 99,529 108,641 125,724
Total assets 283,654 290,004 303,864
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 7,616 7,616 8,163
Paid-in surplus and retained earnings 126,857 123,506 123,951
Currency translation adjustment (13,701) (13,461) (12,836)
Treasury shares (4,019) (1,894) (7,554)
Total shareholders' equity - TotalEnergies share 116,753 115,767 111,724
Non-controlling interests 2,700 2,657 2,846
Total shareholders' equity 119,453 118,424 114,570
Non-current liabilities
Deferred income taxes 11,688 11,633 11,021
Employee benefits 1,993 1,837 1,829
Provisions and other non-current liabilities 21,257 22,657 21,402
Non-current financial debt 40,478 41,022 45,264
Total non-current liabilities 75,416 77,149 79,516
Current liabilities
Accounts payable 41,335 37,268 41,346
Other creditors and accrued liabilities 36,727 37,405 52,275
Current borrowings 9,590 16,876 15,502
Other current financial liabilities 446 415 488
Liabilities directly associated with the assets classified as held for sale 687 2,467 167
Total current liabilities 88,785 94,431 109,778
Total liabilities & shareholders' equity 283,654 290,004 303,864
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
(M$) 4th quarter 3rd quarter 4th quarter
2023 2023 2022
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 5,037 6,690 3,441
Depreciation, depletion, amortization and impairment 3,815 3,621 2,749
Non-current liabilities, valuation allowances and deferred taxes (268) 686 (75)
(Gains) losses on disposals of assets (2,609) (521) 2,192
Undistributed affiliates' equity earnings 940 (325) 1,506
(Increase) decrease in working capital 8,308 (923) (3,791)
Other changes, net 927 268 (404)
Cash flow from operating activities 16,150 9,496 5,618
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (5,076) (3,808) (4,097)
Acquisitions of subsidiaries, net of cash acquired (10) (1,607) (4)
Investments in equity affiliates and other securities (1,066) (482) (260)
Increase in non-current loans (683) (451) (211)
Total expenditures (6,835) (6,348) (4,572)
Proceeds from disposals of intangible assets and property, plant and equipment 2,776 914 113
Proceeds from disposals of subsidiaries, net of cash sold 3,333 7 160
Proceeds from disposals of non-current investments - 308 23
Repayment of non-current loans 94 132 595
Total divestments 6,203 1,361 891
Cash flow used in investing activities (632) (4,987) (3,681)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders - - -
- Treasury shares (2,964) (2,098) (2,551)
Dividends paid:
- Parent company shareholders (1,869) (1,962) (4,356)
- Non-controlling interests (17) (168) (12)
Net issuance (repayment) of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (54) (22) (51)
Other transactions with non-controlling interests (16) (11) (82)
Net issuance (repayment) of non-current debt (21) 47 425
Increase (decrease) in current borrowings (8,458) (446) (3,500)
Increase (decrease) in current financial assets and liabilities 360 (182) 3,554
Cash flow from (used in) financing activities (13,039) (4,842) (6,573)
Net increase (decrease) in cash and cash equivalents 2,479 (333) (4,636)
Effect of exchange rates 53 (508) 1,721
Cash and cash equivalents at the beginning of the period 24,731 25,572 35,941
Cash and cash equivalents at the end of the period 27,263 24,731 33,026
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(M$) Year Year
2023 2022
(unaudited)
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 21,510 21,044
Depreciation, depletion, amortization and impairment 13,818 13,680
Non-current liabilities, valuation allowances and deferred taxes 813 4,594
(Gains) losses on disposals of assets (3,452) 369
Undistributed affiliates' equity earnings 649 6,057
(Increase) decrease in working capital 6,091 1,191
Other changes, net 1,250 432
Cash flow from operating activities 40,679 47,367
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (17,722) (15,690)
Acquisitions of subsidiaries, net of cash acquired (1,772) (94)
Investments in equity affiliates and other securities (3,477) (3,042)
Increase in non-current loans (1,889) (976)
Total expenditures (24,860) (19,802)
Proceeds from disposals of intangible assets and property, plant and equipment 3,789 540
Proceeds from disposals of subsidiaries, net of cash sold 3,561 835
Proceeds from disposals of non-current investments 490 577
Repayment of non-current loans 566 2,734
Total divestments 8,406 4,686
Cash flow used in investing activities (16,454) (15,116)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 383 370
- Treasury shares (9,167) (7,711)
Dividends paid:
- Parent company shareholders (7,517) (9,986)
- Non-controlling interests (311) (536)
Net issuance (repayment) of perpetual subordinated notes (1,081) -
Payments on perpetual subordinated notes (314) (339)
Other transactions with non-controlling interests (126) (49)
Net issuance (repayment) of non-current debt 130 1,108
Increase (decrease) in current borrowings (14,289) (6,073)
Increase (decrease) in current financial assets and liabilities 2,562 3,944
Cash flow from (used in) financing activities (29,730) (19,272)
Net increase (decrease) in cash and cash equivalents (5,505) 12,979
Effect of exchange rates (258) (1,295)
Cash and cash equivalents at the beginning of the period 33,026 21,342
Cash and cash equivalents at the end of the period 27,263 33,026
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(Unaudited: Year 2023 )
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity - Non-controlling interests Total shareholders' equity
TotalEnergies share
(M$) Number Amount Number Amount
As of January 1, 2022 2,640,429,329 8,224 117,849 (12,671) (33,841,104) (1,666) 111,736 3,263 114,999
Net income 2022 - - 20,526 - - - 20,526 518 21,044
Other comprehensive Income - - (2,933) (174) - - (3,107) (2) (3,109)
Comprehensive Income - - 17,593 (174) - - 17,419 516 17,935
Dividend - - (9,989) - - - (9,989) (536) (10,525)
Issuance of common shares 9,367,482 26 344 - - - 370 - 370
Purchase of treasury shares - - - - (140,207,743) (7,711) (7,711) - (7,711)
Sale of treasury shares ((1)) - - (318) - 6,195,654 318 - - -
Share-based payments - - 229 - - - 229 - 229
Share cancellation (30,665,526) (87) (1,418) - 30,665,526 1,505 - - -
Net issuance (repayment) of perpetual subordinated notes - - (44) - - - (44) - (44)
Payments on perpetual subordinated notes - - (331) - - - (331) - (331)
Other operations with non-controlling interests - - 45 9 - - 54 37 91
Other items - - (9) - - - (9) (434) (443)
As of December 31, 2022 2,619,131,285 8,163 123,951 (12,836) (137,187,667) (7,554) 111,724 2,846 114,570
Net income 2023 - - 21,384 - - - 21,384 126 21,510
Other comprehensive Income - - 1,987 (837) - - 1,150 (43) 1,107
Comprehensive Income - - 23,371 (837) - - 22,534 83 22,617
Dividend - - (7,611) - - - (7,611) (311) (7,922)
Issuance of common shares 8,002,155 22 361 - - - 383 - 383
Purchase of treasury shares - - - - (144,700,577) (9,167) (9,167) - (9,167)
Sale of treasury shares ((1)) - - (396) - 6,463,426 396 - - -
Share-based payments - - 291 - - - 291 - 291
Share cancellation (214,881,605) (569) (11,737) - 214,881,605 12,306 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,107) - - - (1,107) - (1,107)
Payments on perpetual subordinated notes - - (294) - - - (294) - (294)
Other operations with non-controlling interests - - 30 (28) - - 2 85 87
Other items - - (2) - - - (2) (3) (5)
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
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
4th quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(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 interests (2,334) (440) (97) (394) (236) (38) - (3,539)
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)
Adjustments ((a)) (709) (141) 42 (524) 1,095 (7) - (244)
Adjusted Net operating income 2,802 1,456 527 633 306 (178) - 5,546
Adjustments ((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.
4th quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 3,080 855 1,241 1,011 588 60 - 6,835
Total divestments 4,362 28 32 22 1,754 5 - 6,203
Cash flow from operating activities 5,708 2,702 638 4,825 1,759 518 - 16,150
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
3rd quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 1,551 2,144 5,183 27,127 23,012 - - 59,017
Intersegment sales 11,129 2,361 495 10,094 153 59 (24,291) -
Excise taxes - - - (210) (4,394) - - (4,604)
Revenues from sales 12,680 4,505 5,678 37,011 18,771 59 (24,291) 54,413
Operating expenses (5,347) (3,038) (4,811) (34,598) (17,749) (231) 24,291 (41,483)
Depreciation, depletion and impairment of tangible assets and mineral interests (1,976) (283) (86) (483) (204) (23) - (3,055)
Net income (loss) from equity affiliates and other items 10 358 (8) 61 (16) 81 - 486
Tax on net operating income (2,437) (251) (86) (502) (247) 157 - (3,366)
Adjustments ((a)) (208) (51) 181 90 132 (37) - 107
Adjusted Net operating income 3,138 1,342 506 1,399 423 80 - 6,888
Adjustments ((a)) 107
Net cost of net debt (305)
Non-controlling interests (14)
Net income - TotalEnergies share 6,676
((a)) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
3rd quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 2,677 734 2,215 424 270 28 - 6,348
Total divestments 699 168 331 114 49 - - 1,361
Cash flow from operating activities 4,240 872 1,936 2,060 206 182 - 9,496
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
4th quarter 2022 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 2,600 4,628 10,055 26,650 24,637 12 - 68,582
Intersegment sales 12,866 5,783 1,807 11,730 274 63 (32,523) -
Excise taxes - - - (199) (4,430) - - (4,629)
Revenues from sales 15,466 10,411 11,862 38,181 20,481 75 (32,523) 63,953
Operating expenses (6,173) (8,361) (9,836) (37,107) (19,939) (266) 32,523 (49,159)
Depreciation, depletion and impairment of tangible assets and mineral interests (1,343) (405) (54) (393) (276) (34) - (2,505)
Net income (loss) from equity affiliates and other items (3,874) 1,150 103 161 (62) 113 - (2,409)
Tax on net operating income (4,635) (269) (112) (898) (113) 22 - (6,005)
Adjustments ((a)) (4,087) 118 1,482 (1,543) (243) (65) - (4,338)
Adjusted Net operating income 3,528 2,408 481 1,487 334 (25) - 8,213
Adjustments ((a)) (4,338)
Net cost of net debt (434)
Non-controlling interests (177)
Net income - TotalEnergies share 3,264
((a)) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
4th quarter 2022 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 2,478 310 640 588 507 49 - 4,572
Total divestments 215 319 186 125 42 4 - 891
Cash flow from operating activities 4,035 134 861 232 707 (351) - 5,618
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
Year 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 6,561 12,086 27,337 101,203 89,909 32 - 237,128
Intersegment sales 42,595 14,789 4,126 36,581 631 206 (98,928) -
Excise taxes - - - (841) (17,342) - - (18,183)
Revenues from sales 49,156 26,875 31,463 136,943 73,198 238 (98,928) 218,945
Operating expenses (20,355) (21,569) (28,763) (130,899) (70,497) (878) 98,928 (174,033)
Depreciation, depletion and impairment of tangible assets and mineral interests (8,493) (1,288) (281) (1,685) (905) (110) - (12,762)
Net income (loss) from equity affiliates and other items (307) 2,194 (345) (42) 2,208 (28) - 3,680
Tax on net operating income (10,095) (810) (394) (938) (1,246) 271 - (13,212)
Adjustments ((a)) (1,036) (798) (173) (1,275) 1,300 (84) - (2,066)
Adjusted Net operating income 10,942 6,200 1,853 4,654 1,458 (423) - 24,684
Adjustments ((a)) (2,066)
Net cost of net debt (1,108)
Non-controlling interests (126)
Net income - TotalEnergies share 21,384
((a)) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Year 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 12,378 3,410 5,497 2,149 1,273 153 - 24,860
Total divestments 5,118 290 661 196 2,132 9 - 8,406
Cash flow from operating activities 18,531 8,442 3,573 7,957 1,957 219 - 40,679
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
Year 2022 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 9,942 21,300 27,453 121,618 100,661 25 - 280,999
Intersegment sales 55,190 17,075 3,353 45,857 1,433 248 (123,156) -
Excise taxes - - - (737) (16,952) - - (17,689)
Revenues from sales 65,132 38,375 30,806 166,738 85,142 273 (123,156) 263,310
Operating expenses (24,521) (29,982) (29,217) (156,897) (81,746) (1,329) 123,156 (200,536)
Depreciation, depletion and impairment of tangible assets and mineral interests (8,115) (1,208) (194) (1,533) (1,033) (138) - (12,221)
Net income (loss) from equity affiliates and other items (9,943) 978 1,788 885 (20) 288 - (6,024)
Tax on net operating income (17,445) (1,574) (138) (2,544) (787) 281 - (22,207)
Adjustments ((a)) (12,371) (4,580) 2,070 (653) 6 (362) - (15,890)
Adjusted Net operating income 17,479 11,169 975 7,302 1,550 (263) - 38,212
Adjustments ((a)) (15,890)
Net cost of net debt (1,278)
Non-controlling interests (518)
Net income - TotalEnergies share 20,526
((a)) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Year 2022 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 10,646 1,249 5,226 1,391 1,186 104 - 19,802
Total divestments 807 2,301 1,126 214 222 16 - 4,686
Cash flow from operating activities 27,654 9,604 66 8,663 3,124 (1,744) - 47,367
Non GAAP Financial Measures
ALTERNATIVE PERFORMANCE MEASURES (Non-GAAP)
TotalEnergies
(unaudited)
1. Reconciliation of cash flow used in investing activities to Net investments
1.1. Exploration & Production
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
(1,282) 1,978 2,263 ns Cash flow used in investing activities ( a ) 7,260 9,839 -26%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
- - - ns Organic loan repayment from equity affiliates ( c ) - 22 -100%
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
61 51 53 15% Capex linked to capitalized leasing contracts ( e ) 218 147 48%
32 14 8 x4 Expenditures related to carbon credits ( f ) 48 19 x2.5
(1,189) 2,043 2,324 ns Net investments ( a + b + c + d + e + f = g - i + h ) 7,526 10,027 -25%
(4,306) (514) 105 ns of which net acquisitions ( g - i ) (2,706) 2,520 ns
39 156 241 -84% Acquisitions ( g ) 2,320 3,134 -26%
4,345 670 136 x32 Asset sales ( i ) 5,026 614 x8.2
- - - ns Change in debt from renewable projects (partner share) - - ns
3,117 2,557 2,219 40% of which organic investments ( h ) 10,232 7,507 36%
208 343 287 -27% Capitalized exploration 1,081 669 62%
61 32 20 x3 Increase in non-current loans 154 78 97%
(17) (29) (79) ns Repayment of non-current loans, excluding organic loan repayment from equity (92) (171) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.2. Integrated LNG
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
827 566 (9) ns Cash flow used in investing activities ( a ) 3,120 (1,052) ns
- - - ns Other transactions with non-controlling interests ( b ) - - ns
- 1 217 -100% Organic loan repayment from equity affiliates ( c ) 2 1,499 ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
11 12 6 83% Capex linked to capitalized leasing contracts ( e ) 37 25 48%
- - - ns Expenditures related to carbon credits ( f ) - - ns
838 579 214 x3.9 Net investments ( a + b + c + d + e + f = g - i + h ) 3,159 472 x6.7
48 84 19 x2.5 of which net acquisitions ( g - i ) 1,096 (47) ns
56 204 23 x2.4 Acquisitions ( g ) 1,253 27 x46.4
8 120 4 100% Asset sales ( i ) 157 74 x2.1
- - - ns Change in debt from renewable projects (partner share) - - ns
790 495 195 x4 of which organic investments ( h ) 2,063 519 x4
6 3 - ns Capitalized exploration 13 - ns
179 153 64 x2.8 Increase in non-current loans 570 328 74%
(20) (47) (98) ns Repayment of non-current loans, excluding organic loan repayment from equity (131) (690) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.3. Integrated Power
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
1,209 1,884 454 x2.7 Cash flow used in investing activities ( a ) 4,836 4,100 18%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
1 4 2 -50% Organic loan repayment from equity affiliates ( c ) 27 5 x5.4
(3) 43 (233) ns Change in debt from renewable projects financing ( d ) * 78 (589) ns
(1) 1 2 ns Capex linked to capitalized leasing contracts ( e ) 4 5 -20%
- - - ns Expenditures related to carbon credits ( f ) - - ns
1,206 1,932 225 x5.4 Net investments ( a + b + c + d + e + f = g - i + h ) 4,945 3,521 40%
532 1,354 (230) ns of which net acquisitions ( g - i ) 2,363 2,136 11%
535 1,622 14 x38.2 Acquisitions ( g ) 2,739 2,661 3%
3 268 244 -99% Asset sales ( i ) 376 525 -28%
- (43) 109 -100% Change in debt from renewable projects (partner share) (81) 279 ns
674 578 455 48% of which organic investments ( h ) 2,582 1,385 86%
- - - ns Capitalized exploration - - ns
318 207 107 x3 Increase in non-current loans 870 397 x2.2
(28) (17) (49) ns Repayment of non-current loans, excluding organic loan repayment from equity (177) (83) ns
affiliates
-3 - (124) ns Change in debt from renewable projects (TotalEnergies share) (3) (310) ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.4. Refining & Chemicals
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
989 310 463 x2.1 Cash flow used in investing activities ( a ) 1,953 1,177 66%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
2 (21) 117 -98% Organic loan repayment from equity affiliates ( c ) (31) 104 ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
- - - ns Capex linked to capitalized leasing contracts ( e ) - - ns
- - - ns Expenditures related to carbon credits ( f ) - - ns
991 289 580 71% Net investments ( a + b + c + d + e + f = g - i + h ) 1,922 1,281 50%
(11) (97) (5) ns of which net acquisitions ( g - i ) (118) (38) ns
1 - - ns Acquisitions ( g ) 32 15 x2.1
12 97 5 x2.4 Asset sales ( i ) 150 53 x2.8
- - - ns Change in debt from renewable projects (partner share) - - ns
1,002 386 585 71% of which organic investments ( h ) 2,040 1,319 55%
- - - ns Capitalized exploration - - ns
28 13 1 x28 Increase in non-current loans 79 53 49%
(8) (9) (3) ns Repayment of non-current loans, excluding organic loan repayment from equity (33) (35) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.5. Marketing & Services
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
(1,166) 221 465 ns Cash flow used in investing activities ( a ) (859) 964 ns
- - (50) ns Other transactions with non-controlling interests ( b ) - (50) ns
- - - ns Organic loan repayment from equity affiliates ( c ) - - ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
- - - ns Capex linked to capitalized leasing contracts ( e ) - - ns
- - - ns Expenditures related to carbon credits ( f ) - - ns
(1,166) 221 415 ns Net investments ( a + b + c + d + e + f = g - i + h ) (859) 914 ns
(1,668) (18) (23) ns of which net acquisitions ( g - i ) (1,924) (121) ns
67 10 14 x4.8 Acquisitions ( g ) 84 34 x2.5
1,735 28 37 x46.9 Asset sales ( i ) 2,008 155 x13
- - - ns Change in debt from renewable projects (partner share) - - ns
502 239 438 15% of which organic investments ( h ) 1,065 1,035 3%
- - - ns Capitalized exploration - - ns
99 16 15 x6.6 Increase in non-current loans 152 83 83%
(12) (19) (25) ns Repayment of non-current loans, excluding organic loan repayment from equity (82) (87) ns
affiliates
- - - ns 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)
2. Reconciliation of cash flow from operating activities to CFFO
2.1. Exploration & Production
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
5,708 4,240 4,035 41% Cash flow from operating activities ( a ) 18,531 27,654 -33%
1,018 (925) (953) ns (Increase) decrease in working capital ( b ) (595) 1,596 ns
- - - ns Inventory effect ( c ) - - ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- - - ns Organic loan repayments from equity affiliates ( e ) - 22 -100%
4,690 5,165 4,988 -6% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 19,126 26,080 -27%
+ e )
2.2. Integrated LNG
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
2,702 872 134 x20.2 Cash flow from operating activities ( a ) 8,442 9,604 -12%
939 (775) (2,337) ns (Increase) decrease in working capital ( b ) * 1,151 1,319 -13%
- - - ns Inventory effect ( c ) - - ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- 1 217 -100% Organic loan repayments from equity affiliates ( e ) 2 1,499 ns
1,763 1,648 2,688 -34% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 7,293 9,784 -25%
+ 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
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
638 1,936 861 -26% Cash flow from operating activities ( a ) 3,573 66 x54.1
(66) 1,466 464 ns (Increase) decrease in working capital ( b ) * 1,529 (835) ns
- - - ns Inventory effect ( c ) - - ns
- 43 40 -100% Capital gain from renewable project sales ( d ) 81 64 27%
1 4 2 -50% Organic loan repayments from equity affiliates ( e ) 27 5 x5.4
705 516 439 61% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 2,152 970 x2.2
+ e )
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
2.4. Refining and Chemicals
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
4,825 2,060 232 x20.8 Cash flow from operating activities ( a ) 7,957 8,663 -8%
4,161 (125) (85) ns (Increase) decrease in working capital ( b ) 2,641 823 x3.2
(507) 546 (711) ns Inventory effect ( c ) (568) 240 ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
2 (21) 117 -98% Organic loan repayments from equity affiliates ( e ) (31) 104 ns
1,173 1,618 1,144 3% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 5,853 7,704 -24%
+ e )
2.5. Marketing & Services
4(th) quarter 3(rd) quarter 4(th) quarter 4(th) quarter 2023 vs (in millions of dollars) 2023 2022 2023 vs
2023 2023 2022 4(th) quarter 2022 2022
1,759 206 707 x2.5 Cash flow from operating activities ( a ) 1,957 3,124 -37%
1,457 (599) 354 x4.1 (Increase) decrease in working capital ( b ) (215) 498 ns
(217) 218 (184) ns Inventory effect ( c ) (146) 261 ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- - - ns Organic loan repayments from equity affiliates ( e ) - - ns
519 587 537 -3% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 2,318 2,365 -2%
+ 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 Company
LNG
&
&
Chemicals
Services
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 1 (st) quarter 2023 2,653 2,072 370 1,618 280 (77) - 6,916
Adjusted net operating income ( a ) 10,942 6,200 1,853 4,654 1458 (423) - 24,684
Balance sheet as of December 31, 2023
Property plant and equipment intangible assets net 84,876 24,936 12,526 12,287 6,696 678 - 141,999
Investments & loans in equity affiliates 2,630 13,905 9,202 4,167 553 - - 30,457
Other non-current assets 3,451 2,720 1,027 677 1,258 141 - 9,274
Inventories, net 1,463 1,784 689 11,582 3,798 1 - 19,317
Accounts receivable, net 6,849 10,183 7,601 20,010 9,024 683 (30,908) 23,442
Other current assets 6,218 9,782 6,963 2,491 3,517 1,817 (9,807) 20,981
Accounts payable (6,904) (11,732) (8,114) (33,864) (10,693) (798) 30,770 (41,335)
Other creditors and accrued liabilities (9,875) (11,653) (6,985) (6,260) (5,759) (6,300) 9,945 (36,887)
Working capital (2,249) (1,636) 154 (6,041) (113) (4,597) - (14,482)
Provisions and other non-current liabilities (25,152) (3,877) (1,790) (3,706) (1,267) 854 - (34,938)
Assets and liabilities classified as held for sale - Capital employed 314 - 392 137 881 - - 1,724
Capital Employed (Balance sheet) 63,870 36,048 21,511 7,521 8,008 (2,924) - 134,034
Less inventory valuation effect - - - (1,478) (334) - - (1,812)
Capital Employed at replacement cost ( b ) 63,870 36,048 21,511 6,043 7,674 (2,924) - 132,222
Balance sheet as of December 31, 2022
Property plant and equipment intangible assets net 87,833 24,189 6,696 11,525 8,120 669 - 139,032
Investments & loans in equity affiliates 2,138 12,065 8,804 4,431 451 - - 27,889
Other non-current assets 3,069 3,342 327 570 1,050 130 - 8,488
Inventories, net 1,260 2,312 1,836 12,888 4,640 - - 22,936
Accounts receivable, net 7,312 11,110 12,515 19,297 8,482 1,407 (35,745) 24,378
Other current assets 6,347 21,344 12,914 2,410 3,787 2,455 (13,187) 36,070
Accounts payable (6,298) (11,846) (14,881) (30,673) (12,082) (1,313) 35,747 (41,346)
Other creditors and accrued liabilities (11,452) (24,796) (10,940) (7,215) (5,115) (5,942) 13,185 (52,275)
Working capital (2,831) (1,876) 1,444 (3,293) (288) (3,393) - (10,237)
Provisions and other non-current liabilities (24,633) (4,049) (1,201) (3,760) (1,303) 694 - (34,252)
Assets and liabilities classified as held for sale - Capital employed 208 - 155 - - - - 363
Capital Employed (Balance sheet) 65,784 33,671 16,225 9,473 8,030 (1,900) - 131,283
Less inventory valuation effect - - - (2,035) (437) - - (2,472)
Capital Employed at replacement cost ( c ) 65,784 33,671 16,225 7,438 7,593 (1,900) - 128,811
- - - - - - - -
ROACE as a percentage ( a / average ( b + c )) 16.9% 17.8% 9.8% 69.0% 19.1% 18.9%
ALTERNATIVE PERFORMANCE MEASURES (Non-GAAP)
TotalEnergies
(unaudited)
4. Reconciliation of consolidated net income to adjusted net operating income
4(th) quarter 3(rd) quarter 4(th) quarter (in millions of dollars) 2023 2022
2023 2023 2022
5,037 6,690 3,441 Consolidated net income ( a ) 21,510 21,044
(265) (305) (434) Net cost of net debt ( b ) (1,108) (1,278)
113 (881) (5,609) Special items affecting net operating income (1,384) (17,559)
1,844 - - Gain (loss) on asset sales 2,047 1,450
(51) - (14) Restructuring charges (56) (55)
(1,070) (698) (3,861) Impairments (2,297) (15,759)
(610) (183) (1,734) Other (1,078) (3,195)
(549) 623 (722) After-tax inventory effect : FIFO vs. replacement cost (694) 531
192 365 1,993 Effect of changes in fair value 12 1,138
(244) 107 (4,338) Total adjustments affecting net operating income ( c ) (2,066) (15,890)
5,546 6,888 8,213 Adjusted net operating income ( a - b - c ) 24,684 38,212
TotalEnergies
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