REG-TotalEnergies SE Trading Statement

TotalEnergies SEAnnouncement

16/04/2024 07:45

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Trading Statement

 

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

The main indicators, estimated financial information and key elements
impacting TotalEnergies’ first quarter 2024 aggregates are shown below:
 Main indicators                                                                       
                                                      1Q24  4Q23   3Q23   2Q23  1Q23   
 €/$                                                  1.09  1.08   1.09   1.09  1.07   
 Brent                                      ($/b)     83.2  84.3   86.7   78.1  81.2   
 Average liquids price * ((1))              ($/b)     78.9  80.2   78.9   72.0  73.4   
 Average gas price * ((1))                  ($/Mbtu)  5.11  6.17   5.47   5.98  8.89   
 Average LNG price ** ((1))                 ($/Mbtu)  9.58  10.28  9.56   9.84  13.27  
 European Refining Margin Marker (ERM) ***  ($/t)     71.7  52.6   100.6  40.1  90.7   


* Sales in $ / Sales in volume for consolidated affiliates.

** Sales in $ / Sales in volume for consolidated and equity affiliates.

***( )This market indicator for European refining, calculated based on public
market prices ($/t), uses a basket of crudes, petroleum product yields and
variable costs representative of the European refining system of
TotalEnergies.

((1) )Does not include oil, gas and LNG trading activities, respectively.

Main elements impacting the quarter aggregates


 * Hydrocarbon production is expected to be stable quarter-on-quarter, above 2.45
Mboe/d, despite the Canadian oil sands assets disposals effective during the
fourth quarter 2023, thanks to the growth in LNG production and the startups
of Mero 2 in Brazil and Akpo West in Nigeria.

 * Integrated Power results are expected to be up quarter-on-quarter, thanks to
growth in the business.

 * Downstream results will reflect the increase in refining margins, as the
utilization rate of refineries during the first quarter 2024 was relatively
stable compared to the fourth quarter 2023.

 * Due to the low volatility during the first quarter 2024, oil and LNG trading
results are expected to be in line with their historical averages.
 2024 Sensitivities*                                                                                                                                                   
                                        Change             Estimated impact on adjusted net operating income     Estimated impact on cash flow from operations         
 Dollar                                 +/- 0.1 $ per €    -/+ 0.1 B$                                            ~0 B$                                                 
 Average liquids price **               +/- 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$                                            
                                                                                                                                                                       


* 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.

** In a 80 $/b Brent environment.

Disclaimer

Unless otherwise stated, 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.

The data presented in this document is based on TotalEnergies’ internal
preliminary reporting and is not audited. This data is not intended to be a
comprehensive summary of all items that will affect TotalEnergies SE’s
results or to provide an estimate of the first quarter 2024 results. Actual
results may vary. To the extent permitted by law, TotalEnergies SE disclaims
all liability from the use of this data.

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

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

Readers are cautioned not to consider forward-looking statements as accurate,
but as an expression of the Company’s views only as of the date this
document is published. TotalEnergies SE and its subsidiaries have no
obligation, make no commitment and expressly disclaim any responsibility to
investors or any stakeholder to update or revise, particularly as a result of
new information or future events, any forward-looking information or
statement, objectives or trends contained in this document. In addition, the
Company has not verified, and is under no obligation to verify any third-party
data contained in this document or used in the estimates and assumptions or,
more generally, forward-looking statements published in this document.

The information on risk factors that could have a significant adverse effect
on TotalEnergies’ business, financial condition, including its operating
income and cash flow, reputation, outlook or the value of financial
instruments issued by TotalEnergies is provided in the most recent version of
the Universal Registration Document which is filed by TotalEnergies SE with
the French Autorité des Marchés Financiers and the annual report on Form
20-F filed with the United States Securities and Exchange Commission
(“SEC”).

Additionally, the developments of environmental and climate change-related
issues in this document are based on various frameworks and the interests of
various stakeholders which are subject to evolve independently of our will.
Moreover, our disclosures on such issues, including climate-related
disclosures, may include information that is not necessarily "material" under
US securities laws for SEC reporting purposes or under applicable securities
law.

Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding certain 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. 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. For further
details on the adjustment items, please refer to the last published earnings
statement and notes to the consolidated financial statements.

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 US 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 document, such as “potential reserves” or
“resources”, that the SEC’s guidelines strictly prohibit us from
including in filings with the SEC. US investors are urged to consider closely
the disclosure in the Form 20-F of TotalEnergies SE, File N° 1-10888,
available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault –
92078 Paris-La Défense Cedex, France, or at the Company website
totalenergies.com. You can also obtain this form from the SEC by calling
1-800-SEC-0330 or on the SEC’s website sec.gov.



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