REG-TotalEnergies SE 1st Quarter Results
28/04/2022 11:45
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1st Quarter Results
TotalEnergies records a $4.1 billion impairment for Russia and reports IFRS
net income of $4.9 billion
TotalEnergies: First Quarter 2022 Results
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE):
1Q22 4Q21 Change 1Q21 Change
vs 4Q21
vs 1Q21
Adjusted net income (TotalEnergies share)((1))
- in billions of dollars (B$) 9.0 6.8 +32% 3.0 x3
- in dollars per share 3.40 2.55 +33% 1.10 x3,1
Net income (TotalEnergies share) 4.9 5.8 -15% 3.3 +48%
Adjusted EBITDA((1)) (B$) 17.4 14.3 +22% 8.2 x2,1
DACF((1)) (B$) 12.0 9.8 +23% 5.8 x2,1
Cash Flow from operations (B$) 7.6 11.6 -34% 5.6 +36%
Net-debt-to-capital ratio((2)) of 12.5% at March 31, 2022 vs. 15.3% at December 31, 2021
First 2022 interim dividend set at 0.69 €/share
The Board of Directors of TotalEnergies SE, meeting on April 27, 2022, led by
Chairman and CEO Patrick Pouyanné, approved the Company's financial
statements for the first quarter of 2022. On this occasion, Patrick Pouyanné
said:
"The rebound in energy prices seen since the second half of 2021 amplified
after Russia’s military aggression against Ukraine in the first quarter of
2022, sending oil prices to more than $100/b and gas prices in Europe and Asia
to historic highs above $30/Mbtu during the quarter.
In this context of strong geopolitical tensions, the Company outlined clear
principles of conduct for managing its Russian activities: beyond ensuring
strict compliance with current and future European sanctions, TotalEnergies SE
decided to provide no further capital for the development of projects in
Russia and initiated the gradual suspension of its activities, including the
planned end of its activities related to Russian oil and petroleum products.
Taking into account notably the impact of new sanctions prohibiting the export
of LNG technologies benefiting a Russian company on the execution ability of
the Arctic LNG 2 project, TotalEnergies took an impairment of $4.1 billion in
its accounts as of March 31.
In the first quarter of 2022, the Company reported adjusted net income of $9
billion and IFRS net income of $4.9 billion. It generated cash flow of $11.6
billion (including $0.3 billion from Russian Upstream assets) and free cash
flow of $5.8(1) billion. Its gearing ratio decreased to 12.5% and its return
on average capital employed is 18%.
The iGRP (integrated Gas, Renewables & Power) segment posted adjusted net
operating income of $3.1 billion, up 11% over the previous quarter, and cash
flow of $2.6 billion in the first quarter of 2022. Notably, TotalEnergies
leveraged its integrated midstream LNG to saturate its European regasification
capacity thanks to record spot LNG purchases (4.7 Mt) and posted a very good
performance in gas, LNG and electricity trading activities. TotalEnergies
launched with its partners the Cameron LNG expansion project that will
contribute to Europe's security of supply. Investments in Renewables &
Electricity amounted to $0.9 billion, in line with the annual target of $3.5
billion.
In particular, TotalEnergies strengthened its offshore wind portfolio by
obtaining concessions to develop 3 GW in the United States and 2 GW in
Scotland.
Exploration and Production benefited from stable production and high oil and
gas costs to post adjusted net operating income of $5 billion and cash flow of
$7.3 billion in the first quarter of 2022. TotalEnergies has announced a
promising discovery in deep-offshore Namibia.
Downstream benefited from high distillate margins in Europe despite higher
energy prices and outperformance by its oil trading activities to post
adjusted net operating income of $1.4 billion and cash flow of $1.9 billion.
TotalEnergies launched feasibility studies for two sustainable aviation fuel
(SAF) projects in China with Sinopec and in Japan with Eneos.
Given the strong cash flow generation and solid balance sheet, the Board of
Directors decided to give priority to countercyclical opportunities to
accelerate the Company's transformation. It confirmed the increase by 5% of
the first 2022 interim dividend to €0.69 per share and authorized the
Company to buyback up to $3 billion of its shares in the first half of
2022.”
1. Highlights((3))
Social and environmental responsibility
* Statement of principles of conduct for managing its Russian activities
* Publication of the Sustainability & Climate – 2022 Progress Report
presenting the advances made on TotalEnergies' transformation strategy and the
update of its climate ambition
* Publication of TotalEnergies' first tax transparency report
* Solidarity measures taken by TotalEnergies in France aimed at reducing its
customers' gas and fuel bills with a discount of 10 cts on each liter of fuel
sold at its service stations and the implementation of a "gas cheque" of
€100 for its gas customers in a precarious energy situation
* Implementation of the responsible withdrawal of TotalEnergies from Myanmar:
transfer of the operatorship to PTTEP by ensuring a fair transition for key
stakeholders, employees and communities.
Renewables and Electricity
* Offshore wind:
* Award of leases to develop offshore wind farms for 3 GW on the east coast of
the United States, off New York and New Jersey, and 2 GW in Scotland with
Green Investment Group (GIG) and RIDG
* Partnership with KGHM in Poland to participate in the Polish government tender
for the development of offshore wind projects
* Solar:
* Acquisition of SunPower's industrial and commercial solar business in the
United States
* Creation of a joint venture with Eneos to develop onsite B2B solar distributed
generation across Asia, with a target capacity of 2 GW in the next 5 years
* Core Solar: acquisition of a 4 GW pipeline of projects in the United States
* Launch of the start-up acceleration program dedicated to the electricity
business
LNG
* Expansion of the strategic alliance with Sempra to develop the Vista Pacifico
LNG project in Mexico and to co-develop several onshore and offshore renewable
projects in North America
* Signature of Heads of Agreement with Sempra, Mitsui, Mitsubishi and NYK for
the launch of the Cameron LNG expansion project with a maximum production
capacity of 6.75 Mtpa and a 5% increase of the current 13.5 Mtpa capacity
Upstream
* Withdrawal from the North Platte deep-water project in the Gulf of Mexico
* Significant new oil and associated gas discovery at the Krabdagu-1 well
located on Block 58 in Suriname
* Significant discovery of light oil and associated gas on the Venus prospect
located on Block 2913B in Namibia
Downstream and new molecules
* Sustainable aviation fuel :
* Start of sustainable aviation fuel production at the Normandy platform, in
France
* Collaboration with Eneos to jointly conduct a feasibility study of a
sustainable aviation fuel production unit with 300 kt/y capacity at their
Negishi refinery in Japan
* Circular economy: signature of an agreement with Honeywell to promote the
development of advanced plastic recycling in Europe
Carbon sinks
* $50 million contribution in the Tropical Asia Forest Fund 2 to invest in
sustainable forestry projects in Southeast Asia
* Start-up of the "3D" carbon capture industrial pilot at the ArcelorMittal site
in Dunkirk
2. Key figures from TotalEnergies’ consolidated financial statements((4))
In millions of dollars, except effective tax rate, 1Q22 4Q21 1Q22 1Q21 1Q22
earnings per share and number of shares vs vs
4Q21 1Q21
Adjusted EBITDA ((5)) 17,424 14,285 +22% 8,170 x2,1
Adjusted net operating income from business segments 9,458 7,316 +29% 3,487 x2,7
Exploration & Production 5,015 3,525 +42% 1,975 x2,5
Integrated Gas, Renewables & Power 3,051 2,759 +11% 985 x3,1
Refining & Chemicals 1,120 553 x2 243 x4,6
Marketing & Services 272 479 -43% 284 -4%
Contribution of equity affiliates to adjusted net income 1,861 1,787 +4% 520 x3,6
Effective tax rate ((6)) 38.7% 40.2% 34.6%
Adjusted net income (TotalEnergies share) 8,977 6,825 +32% 3,003 x3
Adjusted fully-diluted earnings per share (dollars) ((7)) 3.40 2.55 +33% 1.10 x3,1
Adjusted fully-diluted earnings per share (euros)* 3.03 2.19 +38% 0.91 x3,3
Fully-diluted weighted-average shares (millions) 2,614 2,644 -1% 2,645 -1%
Net income (TotalEnergies share) 4,944 5,837 -15% 3,344 +48%
Organic investments ((8)) 1,981 4,681 -58% 2,379 -17%
Net acquisitions ((9)) 922 (396) ns 1,590 -42%
Net investments ((10)) 2,903 4,285 -32% 3,969 -27%
Operating cash flow before working capital changes ((11)) 11,626 9,361 +24% 5,366 x2,2
Operating cash flow before working capital changes 11,995 9,759 +23% 5,750 x2,1
w/o financial charges (DACF) ((12))
Cash flow from operations 7,617 11,621 -34% 5,598 +36%
* Average €-$ exchange rate: 1.1217 in the first quarter 2022, 1.1435 in the
fourth quarter 2021, 1.2048 in the first quarter 2021.
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment* – liquids and gas price realizations, refining margins
1Q22 4Q21 1Q22 1Q21 1Q22
vs
vs
4Q21
1Q21
Brent ($/b) 102.2 79.8 +28% 61.1 +67%
Henry Hub ($/Mbtu) 4.6 4.8 -5% 2.7 +69%
NBP ($/Mbtu) 32.3 32.8 -2% 6.8 x4,8
JKM ($/Mbtu) 31.1 35.0 -11% 10.0 x3,1
Average price of liquids ($/b) 90.1 72.6 +24% 56.4 +60%
Consolidated subsidiaries
Average price of gas ($/Mbtu) 12.27 11.38 +8% 4.06 x3
Consolidated subsidiaries
Average price of LNG ($/Mbtu) 13.60 13.12 +4% 6.08 x2,2
Consolidated subsidiaries and equity affiliates
Variable cost margin - Refining Europe, VCM ($/t)** 46.3 16.7 x2,8 5.3 x8,7
* The indicators are shown on page 22.
** This indicator represents TotalEnergies’ average margin on variable cost
for refining in Europe (equal to the difference between TotalEnergies European
refined product sales and crude oil purchases with associated variable costs
divided by volumes refined in tons).
The average LNG selling price at $13.60/Mbtu is up 4% this quarter compared to
the previous quarter, benefiting on a lagged basis from the increase in oil
and gas indexes on long-term contracts as well as high spot gas prices in the
quarter.
3.2 Greenhouse gas emissions((13))
GHG emissions (MtCO(2)e) 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Scope 1+2 from operated facilities ((14)) 9.6 9.9* -3% 9.2* +5%
Scope 1+2 - equity share 14.0 - - - -
Scope 3 Oil & Gas Worldwide ((15)) 98* 108* -9% 98* -
of which Scope 3 Oil Worlwide ((16)) 66* 75* -12% 69* -4%
Scope 1+2+3 in Europe ((17)) 66* 69* -4% 64* +3%
of which Scope 3 in Europe 60* 63* -4% 58* +3%
Estimated 1Q22 emissions
* Excluding Covid effect
Methane emissions (ktCH4) 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Methane emissions from operated facilities 10.0 12.0 -17% 13.0 -23%
Methane emissions - equity share 12.0 - - - -
Estimated 1Q22 emissions. Equity share quarterly 2021 data is not available.
3.3 Production*
Hydrocarbon production 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Hydrocarbon production (kboe/d) 2,843 2,852 - 2,863 -1%
Oil (including bitumen) (kb/d) 1,305 1,278 +2% 1,272 +3%
Gas (including condensates and associated NGL) (kboe/d) 1,538 1,574 -2% 1,591 -3%
Hydrocarbon production (kboe/d) 2,843 2,852 - 2,863 -1%
Liquids (kb/d) 1,527 1,509 +1% 1,508 +1%
Gas (Mcf/d) 7,162 7,328 -2% 7,400 -3%
* Company production = E&P production + iGRP production.
Hydrocarbon production was 2,843 thousand barrels of oil equivalent per day
(kboe/d) in the first quarter 2022, down 1% year-on-year, comprised of:
* +2% due to the start-up and ramp-up of projects, including the CLOV Phase 2
and Zinia Phase 2 projects in Angola, as well as Iara in Brazil,
* +2% due to the increase in production quotas of OPEC+ countries,
* -2% due to portfolio effect, in particular related to the end of the Qatargas
1 operating license and the Utica asset sale in the United States,
* -1% due to the price effect,
* -2% due to the natural decline of fields.
4. Analysis of business segments
4.1 Integrated Gas, Renewables & Power (iGRP)
4.1.1 Production and sales of Liquefied Natural Gas (LNG) and electricity
Hydrocarbon production for LNG 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
iGRP (kboe/d) 492 562 -13% 518 -5%
Liquids (kb/d) 60 68 -11% 64 -5%
Gas (Mcf/d) 2,349 2,697 -13% 2,476 -5%
Liquefied Natural Gas in Mt 1Q22 4Q21 1Q22 1Q21 1Q22
vs
vs
4Q21
1Q21
Overall LNG sales 13.3 11.6 +15% 9.9 +34%
incl. Sales from equity production* 4.4 4.6 -4% 4.4 +2%
incl. Sales by TotalEnergies from equity production and third party purchases 11.9 10.1 +18% 7.9 +51%
* The Company’s equity production may be sold by TotalEnergies or by the
joint ventures.
Hydrocarbon production for LNG in the first quarter 2022 is down 5%
year-on-year, mainly due to the end of the Qatargas 1 operating license.
Total LNG sales in the first quarter 2022 are up 34% year-on-year, supported
by strong European LNG demand.
Renewables & Electricity 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Portfolio of renewable power generation gross capacity 46.8 43.0 +9% 40.2 +16%
(GW) ((1),(2))
o/w installed capacity 10.7 10.3 +4% 7.8 +37%
o/w capacity in construction 6.1 6.5 -7% 5.1 +19%
o/w capacity in development 30.1 26.2 +15% 27.3 +10%
Gross renewables capacity with PPA (GW) ((1),(2)) 26.8 28.0 -4% 21.2 +26%
Portfolio of renewable power generation net capacity 34.4 31.7 +8% 30.1 +14%
(GW) ((1),(2))
o/w installed capacity 5.4 5.1 +6% 3.8 +45%
o/w capacity in construction 4.2 4.6 -9% 3.1 +33%
o/w capacity in development 24.8 22.0 +13% 23.2 +7%
Net power production (TWh) ((3)) 7.6 6.7 +14% 4.7 +61%
incl. power production from renewables 2.2 1.9 +18% 1.6 +43%
Clients power - BtB and BtC (Million) ((2)) 6.1 6.1 - 5.7 +6%
Clients gas - BtB and BtC (Million) ((2)) 2.7 2.7 - 2.7 +2%
Sales power - BtB and BtC (TWh) 16.3 16.1 +1% 16.1 +2%
Sales gas - BtB and BtC (TWh) 35.0 31.2 +12% 36.2 -3%
Proportionnal adjusted EBITDA Renewables & Electricity (M$) ((4)) 175 447 -61% 344 -49%
incl. from renewables business 91 84 +9% 148 -39%
((1) )Includes 20% of Adani Green Energy Ltd gross capacity effective first
quarter 2021.
((2)) End of period data.
((3)) Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT)
plants.
((4)) TotalEnergies share (% interest) of EBITDA (Earnings Before Interest,
Tax, Depreciation and Amortization) in Renewables & Electricity
affiliates, regardless of consolidation method.
Gross installed renewable power generation capacity grew to 10.7 GW at the end
of the first quarter 2022, up 400 MW from the previous quarter, thanks in part
to the continued increase of start-ups in India.
Gross power generation capacity under development increased mainly due to
award of concessions to develop offshore wind farms, including 3 GW on the
east coast of the United States, off New York and New Jersey, and 2 GW in
Scotland.
Net electricity generation stood at 7.6 TWh in the first quarter 2022, up 61%
year-on-year, thanks to higher utilization rates of flexible power plants
(CCGT) to capture higher margins as well as growth in electricity generation
from renewable sources.
EBITDA from renewables increased in the first quarter 2022 due to production
growth compared to the fourth quarter 2021. The first quarter 2021 included a
capital gain on the partial sale of a portfolio of projects.
TotalEnergies adjusted EBITDA of the Renewables and Electricity business was
$175 million in the first quarter 2022, down 49% year-on-year due to the
seasonality of electricity supply activities in the context of power prices
volatility and the mechanism for setting the regulated electricity sales
tariff in France.
4.1.2 Results
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted net operating income* 3,051 2,759 +11% 985 x3,1
including adjusted income from equity affiliates 1,430 1,321 +8% 264 x5,4
Organic investments 258 1,190 -78% 753 -66%
Net acquisitions 641 47 x13,7 1,893 -66%
Net investments 899 1,237 -27% 2,646 -66%
Operating cash flow before working capital changes ** 2,585 2,440 +6% 1,059 x2,4
Cash flow from operations *** 315 (57) ns 780 -60%
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to lease contracts,
excluding the impact of contracts recognized at fair value for the sector and
including capital gains on the sale of renewable projects.
*** Excluding financial charges, except those related to leases.
Adjusted net operating income for the iGRP segment was $3,051 million in the
first quarter 2022, a 3.1-fold increase year-on-year, thanks to higher LNG
prices and the very good performance of the gas, LNG and electricity trading
activities.
Operating cash flow before working capital changes was $2,585 million in the
first quarter 2022, 2.4 times higher than the first quarter 2021 for the same
reasons.
Cash flow from operations was $315 million for the first quarter 2022, mainly
due to the working capital impact linked to the seasonality of the gas and
power marketing activities and to price effect on receivables.
4.2 Exploration & Production
4.2.1 Production
Hydrocarbon production 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
EP (kboe/d) 2,351 2,290 +3% 2,345 -
Liquids (kb/d) 1,467 1,441 +2% 1,444 +2%
Gas (Mcf/d) 4,813 4,631 +4% 4,924 -2%
4.2.2 Results
In millions of dollars, except effective tax rate 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted net operating income* 5,015 3,525 +42% 1,975 x2,5
including adjusted income from equity affiliates 355 366 -3% 270 +31%
Effective tax rate** 47.0% 49.7% 41.0%
Organic investments 1,426 2,196 -35% 1,279 +11%
Net acquisitions 316 (162) ns (202) ns
Net investments 1,742 2,034 -14% 1,077 +62%
Operating cash flow before working capital changes *** 7,303 5,688 +28% 3,824 +91%
Cash flow from operations *** 5,768 8,624 -33% 3,736 +54%
* Details on adjustment items are shown in the business segment information
annex to financial statements.
** Tax on adjusted net operating income / (adjusted net operating income -
income from equity affiliates - dividends received from investments -
impairment of goodwill + tax on adjusted net operating income).
*** Excluding financial charges, except those related to leases.
Adjusted net operating income for the Exploration & Production segment was
$5,015 million in the first quarter 2022, 2.5 times higher than in the first
quarter 2021, due to higher oil and gas prices.
Operating cash flow before working capital changes was $7,303 million in the
first quarter 2022, up 91% year-on-year for the same reason.
4.3 Downstream (Refining & Chemicals and Marketing & Services)
4.3.1 Results
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted net operating income* 1,392 1,032 +35% 527 x2,6
Organic investments 292 1,267 -77% 335 -13%
Net acquisitions (34) (281) ns (103) ns
Net investments 258 986 -74% 232 +11%
Operating cash flow before working capital changes ** 1,896 1,559 +22% 872 x2,2
Cash flow from operations ** 2,005 2,832 -29% 1,661 +21%
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to leases.
4.4 Refining & Chemicals
4.4.1 Refinery and petrochemicals throughput and utilization rates
Refinery throughput and utilization rate* 1Q22 4Q21 1Q22 1Q21 1Q22
vs
vs
4Q21
1Q21
Total refinery throughput (kb/d) 1,317 1,279 +3% 1,147 +15%
France 252 223 +13% 114 x2,2
Rest of Europe 605 612 -1% 660 -8%
Rest of world 460 444 +4% 373 +23%
Utlization rate based on crude only** 74% 73% 58%
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year, excluding
Grandpuits (shut down first quarter 2021) from 2021 and Lindsey refinery
(divested) from second quarter 2021.
Petrochemicals production and utilization rate 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Monomers* (kt) 1,404 1,460 -4% 1,405 -
Polymers (kt) 1,274 1,231 +4% 1,165 +9%
Vapocracker utilization rate** 86% 90% 87%
* Olefins.
** Based on olefins production from steam crackers and their treatment
capacity at the start of the year.
Refinery throughput increased 15% year-on-year in the first quarter 2022, due
to demand recovery, particularly in Europe and the United States, and the 2021
restart of the distillation unit at the Normandy refinery in France.
Monomer production was stable year-on-year in the first quarter 2022.
Polymer production increased 9% year-on-year in the first quarter 2022, thanks
in particular to the commissioning of a new polypropylene line in the second
quarter 2021 on the integrated refining and petrochemical platform in Daesan,
South Korea. Production in the first quarter 2021 was negatively impacted by
the temporary shutdown of facilities in the United States due to Storm Uri in
Texas.
4.4.2 Results
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted net operating income* 1,120 553 x2 243 x4,6
Organic investments 197 680 -71% 222 -11%
Net acquisitions - (156) -100% (57) -100%
Net investments 197 524 -62% 165 +19%
Operating cash flow before working capital changes ** 1,433 865 +66% 394 x3,6
Cash flow from operations ** 1,107 2,446 -55% 996 +11%
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to leases.
Adjusted net operating income for the Refining and Chemicals segment in the
first quarter 2022 increased sharply to $1,120 million from $243 million in
the first quarter 2021, due to higher distillate margins in Europe in the
context of reduced imports of Russian petroleum products as well as the
overperformance of crude oil and petroleum products trading activities.
Operating cash flow before working capital changes was $1,433 million in the
first quarter 2022, 3.6 times higher than the first quarter 2021 for the same
reasons.
4.5 Marketing & Services
4.5.1 Petroleum product sales
Sales in kb/d* 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Total Marketing & Services sales 1,452 1,553 -7% 1,442 +1%
Europe 790 868 -9% 776 +2%
Rest of world 662 684 -3% 666 -1%
* Excludes trading and bulk refining sales.
Sales of petroleum products in the first quarter of 2022 were up by 1%
year-on-year, as the recovery in aviation activity worldwide was notably
offset by lower sales in Asia, due to the pandemic lockdowns.
4.5.2 Results
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted net operating income* 272 479 -43% 284 -4%
Organic investments 95 587 -84% 113 -16%
Net acquisitions (34) (125) ns (46) ns
Net investments 61 462 -87% 67 -9%
Operating cash flow before working capital changes ** 463 694 -33% 478 -3%
Cash flow from operations ** 898 386 x2,3 665 +35%
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to leases.
Adjusted net operating income for the Marketing & Services segment
amounted to $272 million and operating cash flow before working capital
changes was $463 million in the first quarter 2022, down 4% and 3%
respectively year-on-year due to the margin squeeze related to high petroleum
products prices.
5. TotalEnergies results
5.1 Adjusted net operating income from business segments
Adjusted net operating income from the business segments was $9,458 million in
the first quarter 2022, compared to $3,487 million in the first quarter 2021,
due to higher oil and gas prices and the strong performance of trading
activities.
5.2 Adjusted net income (TotalEnergies share)
Adjusted net income (TotalEnergies share) was $8,977 million in the first
quarter 2022 compared to $3,003 million in the first quarter 2021, due to
higher oil and gas prices and the strong performance of trading activities.
Adjusted net income excludes the after-tax inventory effect, special items and
the impact of changes in fair value((18)).
Total net income adjustment items((19)) were $4,033 million in the first
quarter 2022, mainly consisting of $4,095 million for impairments notably
concerning Arctic LNG 2, the $957 million impairment related to the withdrawal
from the North Platte project in the United States, partially offset by a
positive inventory effect of $1,040 million.
TotalEnergies' effective tax rate was 38.7% in the first quarter 2022,
compared to 34.6% in the first quarter 2021 due to the increase in the
contribution of Exploration & Production to the Company's results.
5.3 Adjusted earnings per share
Adjusted fully-diluted earnings per share was $3.40 in the first quarter 2022,
calculated based on 2,614 million weighted-average diluted shares compared to
$1.10 a year ago.
As of March 31, 2022, the number of fully-diluted shares was 2,607 million.
As part of its shareholder return policy, TotalEnergies repurchased 19.2
million shares for cancellation in the first quarter 2022 for $1 billion.
5.4 Acquisitions - asset sales
Acquisitions were $1,400 million in the first quarter 2022, including the
bonus related to the award of the Production Sharing Contracts of Atapu and
Sépia in Brazil as well as the bonus related to the New York Bight offshore
wind concession in the United States.
Asset sales were $478 million in the first quarter 2022, including an
additional payment related to the sale of interests in the CA1 offshore block
in Brunei and the sale by SunPower of its Enphase shares.
5.5 Cash flow from operations
Cash flow from operations was $7,617 million in the first quarter 2022,
compared to operating cash flow before working capital changes of $11,626
million, was negatively impacted by an increase in working capital
requirements of $3,520 million mainly related to the price effect on
inventories, an increase in inventories to ensure the security of supply for
refineries and the seasonality of the gas and electricity business.
5.6 Profitability
Return on equity was 21.8% for the 12 months ended March 31, 2022.
In millions of dollars April 1, 2021 January 1, 2021 April 1, 2020
March 31, 2022 December 31, 2021 Ma
rc
h
31
,
20
21
Adjusted net income 24,382 18,391 5,330
Average adjusted shareholders' equity 111,794 108,504 109,135
Return on equity (ROE) 21.8% 16.9% 4.9%
The return on average capital employed was 18.0% for the 12 months ended March
31, 2022.
In millions of dollars April 1, 2021 January 1, 2021 April 1, 2020
March 31, 2022 December 31, 2021 Ma
rc
h
31
,
20
21
Adjusted net operating income 25,803 19,766 6,915
Average capital employed 143,517 142,215 148,777
ROACE 18.0% 13.9% 4.6%
6. TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, was €1,035 million in
the first quarter 2022, compared to €1,472 million in the first quarter
2021.
7. 2022 Sensitivities*
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** +/- 10 $/b +/- 2.7 B$ +/- 3.2 B$
European gas price - NBP +/- 10 $/Mbtu +/- 3.0 B$ +/- 3.0 B$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$
* Sensitivities are revised once per year upon publication of the previous
year’s fourth quarter results. Sensitivities are estimates based on
assumptions about TotalEnergies’ portfolio in 2022. Actual results could
vary significantly from estimates based on the application of these
sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals. Please find
the indicators detailed page 22 .
** In a 60 $/b Brent environment.
8. Summary and outlook
Russia's military aggression against Ukraine on February 24, 2022 and its
consequences, have pushed oil prices to more than $100/b, exacerbating the
upward trend seen since the second half of 2021 that stems from a lack of
investment in hydrocarbons. These prices could remain at high levels if the
mobilization of additional production capacity from OPEC countries and the
growth of unconventional oil production in the United States fail to
compensate for the anticipated loss of Russian crude oil production on the
order of 2-3 Mb/d as well as the lower production from Russian refining. The
effect could be mitigated by a drop in demand caused by the higher prices, the
impact of the crisis and the pandemic lockdowns in China on global growth.
Gas prices have remained very high and volatile in Europe and Asia since the
start of 2022, driven by global demand and the need for Europe to rebuild
inventories. Futures markets indicate average gas prices in Europe and Asia in
2022 around $30/Mbtu. In this context and in line with its investment
criteria, TotalEnergies is mobilizing additional investments to support
short-term gas production in the North Sea.
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 remain at a high level above $14/Mbtu in the second quarter of
2022.
In the second quarter, TotalEnergies will benefit from the increase in its
production in Brazil from May 2022 with the start-up of Mero 1 and the entry
into Atapu and Sépia (30 kb/d in the second quarter growing to 60 kb/d in the
fourth quarter)
The Company maintains its capital discipline with net investments trending
toward $15 billion in 2022, of which 25% will be in renewables and
electricity.
The Company's priorities in terms of cash flow allocation are reaffirmed in
this context of higher oil and gas prices: investing in profitable projects to
implement the strategy to transform TotalEnergies into a sustainable
multi-energy company, linking dividend growth to structural cash flow growth,
maintaining a strong balance sheet and a long-term debt rating with a minimum
"A" level by permanently anchoring gearing below 20%, and allocating a share
of the surplus cash flow from high hydrocarbon prices to share buybacks.
* * * *
To listen to the conference call with CEO Patrick Pouyanné and CFO
Jean-Pierre Sbraire today at 12:00 (Paris time) please log on to
totalenergies.com or call +44 (0) 207 192 8338 in Europe or +1 (646) 7413-167
in the United States (code: 4169200). The conference replay will be available
on totalenergies.com after the event.
* * * *
TotalEnergies contacts
Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
(mailto:presse@totalenergies.com) l @TotalEnergiesPress
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FTotalEnergiesPR&esheet=52700470&newsitemid=20220427006264&lan=en-US&anchor=%40TotalEnergiesPress&index=1&md5=537e5c3b4ca7f2949c38d14813767d46)
Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)
9. Results from Russian assets
In millions of dollars 1Q22 2021
Adjusted net operating income Operating cash flow before Adjusted net operating income Operating cash flow before
working capital changes working capital changes
Russian Upstream Assets 1,021 288 2,092 1,613
Capital Employed by TotalEnergies in Russia as at March 31, 2022 was $9,976
million.
10. Operating information by segment
10.1 Company’s production (Exploration & Production + iGRP)
Combined liquids and gas 1Q22 4Q21 1Q22 1Q21 1Q22
production by region (kboe/d) vs vs
4Q21 1Q21
Europe and Central Asia 1,050 1,063 -1% 1,050 -
Africa 498 508 -2% 551 -10%
Middle East and North Africa 670 682 -2% 651 +3%
Americas 386 363 +6% 376 +3%
Asia-Pacific 240 235 +2% 235 +2%
Total production 2,843 2,852 - 2,863 -1%
includes equity affiliates 715 739 -3% 729 -2%
Liquids production by region (kb/d) 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Europe and Central Asia 373 378 -1% 374 -
Africa 371 379 -2% 415 -11%
Middle East and North Africa 538 534 +1% 499 +8%
Americas 201 174 +15% 179 +12%
Asia-Pacific 45 45 - 41 +10%
Total production 1,527 1,509 +1% 1,508 +1%
includes equity affiliates 210 205 +3% 201 +5%
Gas production by region (Mcf/d) 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Europe and Central Asia 3,635 3,683 -1% 3,636 -
Africa 643 664 -3% 693 -7%
Middle East and North Africa 727 825 -12% 843 -14%
Americas 1,041 1,064 -2% 1,100 -5%
Asia-Pacific 1,116 1,092 +2% 1,128 -1%
Total production 7,162 7,328 -2% 7,400 -3%
includes equity affiliates 2,714 2,889 -6% 2,855 -5%
10.2 Downstream (Refining & Chemicals and Marketing & Services)
Petroleum product sales by region (kb/d) 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Europe 1,635 1,668 -2% 1,558 +5%
Africa 761 780 -3% 667 +14%
Americas 775 817 -5% 772 -
Rest of world 531 526 +1% 495 +7%
Total consolidated sales 3,701 3,791 -2% 3,492 +6%
Includes bulk sales 409 437 -6% 402 +2%
Includes trading 1,840 1,801 +2% 1,648 +12%
Petrochemicals production* (kt) 1Q22 4Q21 1Q22 1Q21 1Q22
vs
vs
4Q21
1Q21
Europe 1,260 1,250 +1% 1,346 -6%
Americas 638 689 -7% 510 +25%
Middle East and Asia 781 753 +4% 714 +9%
* Olefins, polymers.
10.3 Renewables
1Q22 4Q21
Installed power generation gross capacity (GW) ((1),(2)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.7 0.5 0.0 0.1 1.3 0.6 0.5 0.0 0.1 1.2
Rest of Europe 0.2 1.0 0.0 0.0 1.3 0.2 1.0 0.0 0.1 1.3
Africa 0.1 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1
Middle East 0.3 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0 0.3
North America 0.9 0.0 0.0 0.0 0.9 0.9 0.0 0.0 0.0 0.9
South America 0.4 0.3 0.0 0.0 0.7 0.4 0.3 0.0 0.0 0.7
India 4.8 0.2 0.0 0.0 5.0 4.5 0.2 0.0 0.0 4.7
Asia-Pacific 1.0 0.0 0.1 0.0 1.1 1.0 0.0 0.0 0.0 1.0
Total 8.4 2.1 0.1 0.1 10.7 8.0 2.0 0.0 0.2 10.3
1Q22 4Q21
Power generation gross capacity from renewables Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
in construction (GW) ((1),(2))
France 0.1 0.2 0.0 0.1 0.4 0.2 0.2 0.0 0.1 0.4
Rest of Europe 0.0 0.0 1.1 0.0 1.2 0.0 0.1 1.1 0.0 1.2
Africa 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Middle East 0.8 0.0 0.0 0.0 0.8 0.8 0.0 0.0 0.0 0.8
North America 1.5 0.0 0.0 0.0 1.5 1.5 0.0 0.0 0.0 1.5
South America 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
India 1.0 0.3 0.0 0.0 1.3 1.2 0.4 0.0 0.0 1.6
Asia-Pacific 0.3 0.0 0.6 0.0 0.9 0.3 0.0 0.6 0.0 1.0
Total 3.7 0.6 1.7 0.1 6.1 4.0 0.6 1.7 0.1 6.5
1Q22 4Q21
Power generation gross capacity from renewables Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
in development (GW) ((1),(2))
France 2.8 0.5 0.0 0.0 3.3 3.1 0.8 0.0 0.0 3.9
Rest of Europe 4.7 0.3 4.4 0.0 9.3 5.2 0.3 2.3 0.0 7.8
Africa 0.7 0.1 0.0 0.1 0.9 0.4 0.0 0.0 0.1 0.5
Middle East 1.6 0.0 0.0 0.0 1.6 1.6 0.0 0.0 0.0 1.6
North America 2.0 0.1 3.0 0.7 5.9 2.3 0.1 0.0 0.7 3.1
South America 0.7 0.3 0.0 0.2 1.2 0.6 0.4 0.0 0.1 1.2
India 4.0 0.1 0.0 0.0 4.1 4.4 0.1 0.0 0.0 4.5
Asia-Pacific 1.4 0.0 2.1 0.1 3.6 1.2 0.0 2.1 0.1 3.5
Total 17.9 1.5 9.5 1.2 30.1 18.9 1.7 4.4 1.1 26.2
((1)) Includes 20% of gross capacity of Adani Green Energy Ltd effective first
quarter 2021.
((2)) End-of-period data.
In operation In construction In development
Gross renewables capacity covered by PPA Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
at 03/31/2022 (GW)
Europe 0.9 1.5 - X 2.5 X 0.2 0.8 X 1.2 3.6 0.2 X X 3.8
Asia 5.8 0.2 X X 6.1 1.2 0.4 0.6 - 2.2 4.4 X - X 4.6
North America 0.8 - - - 0.8 - - - - - - - - - -
Rest of World 0.8 0.3 - X 1.1 2.3 X - X 2.3 2.0 X - X 2.1
Total 8.3 2.1 X X 10.6 3.7 0.6 1.4 X 5.7 9.9 0.3 X 0.3 10.5
X not specified, capacity < 0.2 GW.
In operation In construction In development
PPA average price at 03/31/2022 Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
($/MWh)
Europe 202 117 - X 146 X 83 64 X 70 44 85 X X 48
Asia 79 43 X X 79 38 50 254 - 81 39 X - X 39
North America 147 - - - 150 - - - - - - - - - -
Rest of World 68 54 - X 63 118 X - X 118 77 X - X 77
Total 97 101 X X 99 36 65 143 X 65 43 81 X 144 46
X not specified, PPA relating to a capacity < 0.2 GW.
11. Adjustment items to net income (TotalEnergies share)
In millions of dollars 1Q22 4Q21 1Q21
Special items affecting net income (TotalEnergies share) (4,993) (1,074) (342)
Gain (loss) on asset sales - (170) -
Restructuring charges (3) 6 (161)
Impairments (5,061) (670) (144)
Other 71 (240) (37)
After-tax inventory effect : FIFO vs. replacement cost 1,040 111 689
Effect of changes in fair value (80) (25) (6)
Total adjustments affecting net income (4,033) (988) 341
12. Reconciliation of adjusted EBITDA with consolidated financial statements
12.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Net income - TotalEnergies share 4,944 5,837 -15% 3,344 +48%
Less: adjustment items to net income (TotalEnergies share) 4,033 988 x4,1 (341) ns
Adjusted net income - TotalEnergies share 8,977 6,825 +32% 3,003 x3
Adjusted items
Add: non-controlling interests 76 79 -4% 59 +29%
Add: income taxes 4,724 3,606 +31% 1,446 x3,3
Add: depreciation, depletion and impairment of tangible assets and mineral interests 3,148 3,278 -4% 3,180 -1%
Add: amortization and impairment of intangible assets 96 119 -19% 103 -7%
Add: financial interest on debt 462 483 -4% 466 -1%
Less: financial income and expense from cash & cash equivalents (59) (105) ns (87) ns
Adjusted EBITDA 17,424 14,285 +22% 8,170 x2,1
12.2 Reconciliation of revenues from sales to adjusted EBITDA and net income
(TotalEnergies share)
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Adjusted items
Revenues from sales 63,938 55,298 +16% 38,668 +65%
Purchases, net of inventory variation (40,762) (36,189) ns (24,289) ns
Other operating expenses (7,409) (6,630) ns (6,868) ns
Exploration costs (136) (215) ns (167) ns
Other income 121 551 -78% 416 -71%
Other expense, excluding amortization and impairment of intangible assets (173) (374) ns (89) ns
Other financial income 119 195 -39% 109 +9%
Other financial expense (135) (138) ns (130) ns
Net income (loss) from equity affiliates 1,861 1,787 +4% 520 x3,6
Adjusted EBITDA 17,424 14,285 +22% 8,170 x2,1
Adjusted items
Less: depreciation, depletion and impairment of tangible assets and mineral interests (3,148) (3,278) ns (3,180) ns
Less: amortization of intangible assets (96) (119) ns (103) ns
Less: financial interest on debt (462) (483) ns (466) ns
Add: financial income and expense from cash & cash equivalents 59 105 -44% 87 -32%
Less: income taxes (4,724) (3,606) ns (1,446) ns
Less: non-controlling interests (76) (79) ns (59) ns
Add: adjustment - TotalEnergies share (4,033) (988) ns 341 ns
Net income - TotalEnergies share 4,944 5,837 -15% 3,344 +48%
13. Investments - Divestments
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Organic investments ( a ) 1,981 4,681 -58% 2,379 -17%
Capitalized exploration 114 182 -37% 243 -53%
Increase in non-current loans 234 348 -33% 292 -20%
Repayment of non-current loans, (435) (234) ns (96) ns
excluding organic loan repayment from equity affiliates
Change in debt from renewable projects - (52) -100% (167) -100%
(TotalEnergies share)
Acquisitions ( b ) 1,400 288 x4,9 2,208 -37%
Asset sales ( c ) 478 684 -30% 618 -23%
Change in debt from renewable projects (partner share) (2) 34 ns 100 ns
Net acquisitions 922 (396) ns 1,590 -42%
Net investments ( a + b - c ) 2,903 4,285 -32% 3,969 -27%
Other transactions with non-controlling interests ( d ) - - ns - ns
Organic loan repayment from equity affiliates ( e ) (487) (398) ns (30) ns
Change in debt from renewable projects financing * ( f ) (2) 86 ns 267 ns
Capex linked to capitalized leasing contracts ( g ) 36 34 +6% 22 +64%
Expenditures related to carbon credits ( h ) - 27 -100% - ns
Cash flow used in investing activities ( a + b - c + d + e + f - g - h ) 2,378 3,912 -39% 4,184 -43%
* Change in debt from renewable projects (TotalEnergies share and partner
share).
14. Cash flow
In millions of dollars 1Q22 4Q21 1Q22 1Q21 1Q22
vs vs
4Q21 1Q21
Operating cash flow before working capital changes w/o financial charges (DACF) 11,995 9,759 +23% 5,750 x2,1
Financial charges (369) (398) ns (384) ns
Operating cash flow before working capital changes ( a ) * 11,626 9,361 +24% 5,366 x2,2
(Increase) decrease in working capital ** (4,775) 2,591 ns (555) ns
Inventory effect 1,255 85 x14,8 883 +42%
Capital gain from renewable project sales (2) (19) ns (66) ns
Organic loan repayments from equity affiliates (487) (398) ns (30) ns
Cash flow from operations 7,617 11,621 -34% 5,598 +36%
Organic investments ( b ) 1,981 4,681 -58% 2,379 -17%
Free cash flow after organic investments, 9,645 4,680 x2,1 2,987 x3,2
w/o net asset sales ( a - b )
Net investments ( c ) 2,903 4,285 -32% 3,969 -27%
Net cash flow ( a - c ) 8,723 5,076 +72% 1,397 x6,2
* Operating cash flow before working capital changes, is defined as cash flow
from operating activities before changes in working capital at replacement
cost, excluding the mark-to-market effect of iGRP’s contracts and including
capital gain from renewable projects sale (effective first quarter 2020).
Historical data have been restated to cancel the impact of fair valuation of
iGRP sector’s contracts.
** Changes in working capital are presented excluding the mark-to-market
effect of iGRP’s contracts.
15. Gearing ratio
In millions of dollars 03/31/2022 12/31/2021 03/31/2021 03/31/2020
Current borrowings ((1)) 16,759 13,645 19,279 17,361
Other current financial liabilities 502 372 351 604
Current financial assets ((1),(2)) (7,231) (12,183) (4,492) (6,870)
Net financial assets classified as held for sale (38) (4) - -
Non-current financial debt ((1)) 38,924 41,868 44,842 42,461
Non-current financial assets ((1)) (587) (1,557) (2,669) (993)
Cash and cash equivalents (31,276) (21,342) (30,285) (21,634)
Net debt (a) 17,053 20,799 27,026 30,929
Shareholders’ equity - TotalEnergies share 116,480 111,736 109,295 112,006
Non-controlling interests 3,375 3,263 2,390 2,428
Shareholders' equity (b) 119,855 114,999 111,685 114,434
Net-debt-to-capital ratio = a / (a+b) 12.5% 15.3% 19.5% 21.3%
Leases (c) 8,028 8,055 7,747 7,309
Net-debt-to-capital ratio including leases (a+c) / (a+b+c) 17.3% 20.1% 23.7% 25.0%
((1)) Excludes leases receivables and leases debts.
((2) )Including initial margins held as part of the Company's activities on
organized markets.
16. Return on average capital employed
Twelve months ended March 31, 2022
In millions of dollars Integrated Gas, Renewables & Power Exploration & Production Refining & Chemicals Marketing & Services Company
Adjusted net operating income 8,309 13,479 2,786 1,606 25,803
Capital employed at 03/31/2021* 48,423 78,170 10,403 8,198 145,180
Capital employed at 03/31/2022* 54,740 71,518 8,847 7,751 141,853
ROACE 16.1% 18.0% 28.9% 20.1% 18.0%
Twelve months ended December 31, 2021
In millions of dollars Integrated Gas, Renewables & Power Exploration & Production Refining & Chemicals Marketing & Services Company
Adjusted net operating income 6,243 10,439 1,909 1,618 19,766
Capital employed at 12/31/2020* 45,611 78,928 11,375 8,793 142,617
Capital employed at 12/31/2021* 55,978 71,675 8,069 8,783 141,813
ROACE 12.3% 13.9% 19.6% 18.4% 13.9%
Twelve months ended March 31, 2021
In millions of dollars Integrated Gas, Renewables & Power Exploration & Production Refining & Chemicals Marketing & Services Company
Adjusted net operating income 1,850 3,635 900 1,206 6,915
Capital employed at 03/31/2020* 44,236 85,622 12,878 8,764 152,374
Capital employed at 03/31/2021* 48,423 78,170 10,403 8,198 145,180
ROACE 4.0% 4.4% 7.7% 14.2% 4.6%
* At replacement cost (excluding after-tax inventory effect).
Disclaimer:
The terms “TotalEnergies”, “TotalEnergies company” and “Company”
in this document are used to designate TotalEnergies SE and the consolidated
entities directly or indirectly controlled by TotalEnergies SE. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate and independent legal entities.
This press release presents the results for the first quarter 2022 from the
consolidated financial statements of TotalEnergies SE as of March 31, 2022.
The limited review procedures by the Statutory Auditors are underway. The
notes to the consolidated financial statements (unaudited) are available on
the website totalenergies.com.
This document may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, notably with respect to the
financial condition, results of operations, business activities and industrial
strategy of TotalEnergies. This document may also contain statements regarding
the perspectives, objectives, areas of improvement and goals of TotalEnergies,
including with respect to climate change and carbon neutrality (net zero
emissions). An ambition expresses an outcome desired by TotalEnergies, it
being specified that the means to be deployed do not depend solely on
TotalEnergies. These forward-looking statements may generally be identified by
the use of the future or conditional tense or forward-looking words such as
“envisions”, “intends”, “anticipates”, “believes”,
“considers”, “plans”, “expects”, “thinks”, “targets”,
“aims” or similar terminology. Such forward-looking statements included in
this document are based on economic data, estimates and assumptions prepared
in a given economic, competitive and regulatory environment and considered to
be reasonable by TotalEnergies as of the date of this document.
These forward-looking statements are not historical data and should not be
interpreted as assurances that the perspectives, objectives or goals announced
will be achieved. They may prove to be inaccurate in the future, and may
evolve or be modified with a significant difference between the actual results
and those initially estimated, due to the uncertainties notably related to the
economic, financial, competitive and regulatory environment, or due to the
occurrence of risk factors, such as, notably, the price fluctuations in crude
oil and natural gas, the evolution of the demand and price of petroleum
products, the changes in production results and reserves estimates, the
ability to achieve cost reductions and operating efficiencies without unduly
disrupting business operations, changes in laws and regulations including
those related to the environment and climate, currency fluctuations, as well
as economic and political developments, changes in market conditions, loss of
market share and changes in consumer preferences, or pandemics such as the
COVID-19 pandemic. Additionally, certain financial information is based on
estimates particularly in the assessment of the recoverable value of assets
and potential impairments of assets relating thereto.
Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to
update publicly any forward-looking information or statement, objectives or
trends contained in this document whether as a result of new information,
future events or otherwise. The information on risk factors that could have a
significant adverse effect on TotalEnergies’ business, financial condition,
including its operating income and cash flow, reputation, outlook or the value
of financial instruments issued by TotalEnergies is provided in the most
recent version of the Universal Registration Document which is filed by
TotalEnergies SE with the French Autorité des Marchés Financiers and the
annual report on Form 20-F filed with the United States Securities and
Exchange Commission (“SEC”).
Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described below
(adjusted operating income, adjusted net operating income, adjusted net
income), return on equity (ROE), return on average capital employed (ROACE),
gearing ratio, operating cash flow before working capital changes, the
shareholder rate of return. These indicators are meant to facilitate the
analysis of the financial performance of TotalEnergies and the comparison of
income between periods. They allow investors to track the measures used
internally to manage and measure the performance of TotalEnergies.
These adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions
qualified as "special items" are excluded from the business segment figures.
In general, special items relate to transactions that are significant,
infrequent or unusual. However, in certain instances, transactions such as
restructuring costs or asset disposals, which are not considered to be
representative of the normal course of business, may be qualified as special
items although they may have occurred within prior years or are likely to
occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing &
Services segments are presented according to the replacement cost method. This
method is used to assess the segments’ performance and facilitate the
comparability of the segments’ performance with those of TotalEnergies’
principal competitors.
In the replacement cost method, which approximates the LIFO (Last-In,
First-Out) method, the variation of inventory values in the statement of
income is, depending on the nature of the inventory, determined using either
the month-end price differentials between one period and another or the
average prices of the period rather than the historical value. The inventory
valuation effect is the difference between the results according to the FIFO
(First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects,
for some transactions, differences between internal measures of performance
used by TotalEnergies’ management and the accounting for these transactions
under IFRS.
IFRS requires that trading inventories be recorded at their fair value using
period-end spot prices. In order to best reflect the management of economic
exposure through derivative transactions, internal indicators used to measure
performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, whose
future effects are recorded at fair value in TotalEnergies’ internal
economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage
certain operational contracts or assets. Under IFRS, these derivatives are
recorded at fair value while the underlying operational transactions are
recorded as they occur. Internal indicators defer the fair value on
derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating
income, adjusted net income) are defined as replacement cost results, adjusted
for special items, excluding the effect of changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings per share
represent dollar amounts converted at the average euro-dollar (€-$) exchange
rate for the applicable period and are not the result of financial statements
prepared in euros.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies,
in their filings with the SEC, to separately disclose proved, probable and
possible reserves that a company has determined in accordance with SEC rules.
We may use certain terms in this press release, such as “potential
reserves” or “resources”, that the SEC’s guidelines strictly prohibit
us from including in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in the Form 20-F of TotalEnergies SE, File N°
1-10888, available from us at 2, place Jean Millier – Arche Nord
Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website
totalenergies.com. You can also obtain this form from the SEC by calling
1-800-SEC-0330 or on the SEC’s website sec.gov.
TotalEnergies financial statements
First quarter 2022 consolidated accounts, IFRS
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$)((a)) 2022 2021 2021
Sales 68,606 60,348 43,737
Excise taxes (4,656) (5,050) (5,104)
Revenues from sales 63,950 55,298 38,633
Purchases, net of inventory variation (39,648) (36,161) (23,398)
Other operating expenses (7,623) (6,680) (6,880)
Exploration costs (861) (323) (167)
Depreciation, depletion and impairment of tangible assets and mineral (3,679) (3,919) (3,325)
interests
Other income 143 536 358
Other expense (2,290) (755) (659)
Financial interest on debt (462) (483) (466)
Financial income and expense from cash & cash equivalents 214 120 95
Cost of net debt (248) (363) (371)
Other financial income 203 195 109
Other financial expense (135) (138) (130)
Net income (loss) from equity affiliates 43 1,860 881
Income taxes (4,804) (3,647) (1,639)
Consolidated net income 5,051 5,903 3,412
TotalEnergies share 4,944 5,837 3,344
Non-controlling interests 107 66 68
Earnings per share ($) 1.87 2.19 1.24
Fully-diluted earnings per share ($) 1.85 2.17 1.23
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2022 2021 2021
Consolidated net income 5,051 5,903 3,412
Other comprehensive income
Actuarial gains and losses - 589 -
Change in fair value of investments in equity instruments 3 93 12
Tax effect 11 (262) (12)
Currency translation adjustment generated by the parent company (1,750) (1,900) (4,173)
Items not potentially reclassifiable to profit and loss (1,736) (1,480) (4,173)
Currency translation adjustment 1,012 1,179 2,523
Cash flow hedge (263) (226) 504
Variation of foreign currency basis spread 49 4 -
share of other comprehensive income of equity affiliates, net amount (84) 71 469
Other - (2) 1
Tax effect 53 22 (157)
Items potentially reclassifiable to profit and loss 767 1,048 3,340
Total other comprehensive income (net amount) (969) (432) (833)
Comprehensive income 4,082 5,471 2,579
TotalEnergies share 3,953 5,390 2,542
Non-controlling interests 129 81 37
CONSOLIDATED BALANCE SHEET
TotalEnergies
March 31, 2022 December 31, 2021 March 31, 2021
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 32,504 32,484 33,239
Property, plant and equipment, net 104,450 106,559 106,859
Equity affiliates : investments and loans 29,334 31,053 30,727
Other investments 1,490 1,625 2,062
Non-current financial assets 1,490 2,404 3,700
Deferred income taxes 5,299 5,400 6,619
Other non-current assets 3,033 2,797 2,638
Total non-current assets 177,600 182,322 185,844
Current assets
Inventories, net 24,456 19,952 16,192
Accounts receivable, net 32,000 21,983 17,532
Other current assets 50,976 35,144 14,304
Current financial assets 7,415 12,315 4,605
Cash and cash equivalents 31,276 21,342 30,285
Assets classified as held for sale 856 400 396
Total current assets 146,979 111,136 83,314
Total assets 324,579 293,458 269,158
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 8,137 8,224 8,193
Paid-in surplus and retained earnings 123,008 117,849 112,676
Currency translation adjustment (13,643) (12,671) (11,566)
Treasury shares (1,022) (1,666) (8)
Total shareholders' equity - TotalEnergies Share 116,480 111,736 109,295
Non-controlling interests 3,375 3,263 2,390
Total shareholders' equity 119,855 114,999 111,685
Non-current liabilities
Deferred income taxes 11,281 10,904 10,387
Employee benefits 2,610 2,672 3,644
Provisions and other non-current liabilities 21,649 20,269 20,893
Non-current financial debt 46,546 49,512 52,541
Total non-current liabilities 82,086 83,357 87,465
Current liabilities
Accounts payable 46,869 36,837 26,959
Other creditors and accrued liabilities 56,972 42,800 22,066
Current borrowings 18,252 15,035 20,471
Other current financial liabilities 502 372 351
Liabilities directly associated with the assets classified as held for sale 43 58 161
Total current liabilities 122,638 95,102 70,008
Total liabilities & shareholders' equity 324,579 293,458 269,158
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2022 2021 2021
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 5,051 5,903 3,412
Depreciation, depletion, amortization and impairment 4,578 4,222 3,473
Non-current liabilities, valuation allowances and deferred taxes 2,538 152 121
(Gains) losses on disposals of assets (13) (184) (285)
Undistributed affiliates' equity earnings 262 (843) (573)
(Increase) decrease in working capital (4,923) 2,232 (819)
Other changes, net 124 139 269
Cash flow from operating activities 7,617 11,621 5,598
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (3,457) (4,540) (2,410)
Acquisitions of subsidiaries, net of cash acquired - (128) -
Investments in equity affiliates and other securities (89) (178) (2,126)
Increase in non-current loans (241) (348) (300)
Total expenditures (3,787) (5,194) (4,836)
Proceeds from disposals of intangible assets and property, plant and equipment 177 349 226
Proceeds from disposals of subsidiaries, net of cash sold 88 36 229
Proceeds from disposals of non-current investments 215 266 63
Repayment of non-current loans 929 631 134
Total divestments 1,409 1,282 652
Cash flow used in investing activities (2,378) (3,912) (4,184)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders - - -
- Treasury shares (1,176) (1,658) (165)
Dividends paid:
- Parent company shareholders (1,928) (1,991) (2,090)
- Non-controlling interests (22) (20) (10)
Net issuance (repayment) of perpetual subordinated notes 1,958 - 3,248
Payments on perpetual subordinated notes (136) (57) (87)
Other transactions with non-controlling interests 5 (14) (55)
Net issuance (repayment) of non-current debt 34 347 (890)
Increase (decrease) in current borrowings 657 (3,368) (1,662)
Increase (decrease) in current financial assets and liabilities 5,594 (8,373) (148)
Cash flow from (used in) financing activities 4,986 (15,134) (1,859)
Net increase (decrease) in cash and cash equivalents 10,225 (7,425) (445)
Effect of exchange rates (291) (204) (538)
Cash and cash equivalents at the beginning of the period 21,342 28,971 31,268
Cash and cash equivalents at the end of the period 31,276 21,342 30,285
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(unaudited)
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity - TotalEnergies Non-controlling interests Total shareholders' equity
Share
(M$) Number Amount Number Amount
As of January 1, 2021 2,653,124,025 8,267 107,078 (10,256) (24,392,703) (1,387) 103,702 2,383 106,085
Net income of the first quarter 2021 - - 3,344 - - - 3,344 68 3,412
Other comprehensive income - - 502 (1,304) - - (802) (31) (833)
Comprehensive Income - - 3,846 (1,304) - - 2,542 37 2,579
Dividend - - - - - - - (10) (10)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (3,636,351) (165) (165) - (165)
Sale of treasury shares((a)) - - (216) - 4,569,755 216 - - -
Share-based payments - - 14 - - - 14 - 14
Share cancellation (23,284,409) (74) (1,254) - 23,284,409 1,328 - - -
Net issuance (repayment) of perpetual subordinated notes - - 3,254 - - - 3,254 - 3,254
Payments on perpetual subordinated notes - - (90) - - - (90) - (90)
Other operations with - - 27 (6) - - 21 (21) -
non-controlling interests
Other items - - 17 - - - 17 1 18
As of March 31, 2021 2,629,839,616 8,193 112,676 (11,566) (174,890) (8) 109,295 2,390 111,685
Net income from April 1 to December 31, 2021 - - 12,688 - - - 12,688 266 12,954
Other comprehensive income - - 489 (1,103) - - (614) 1 (613)
Comprehensive Income - - 13,177 (1,103) - - 12,074 267 12,341
Dividend - - (8,200) - - - (8,200) (114) (8,314)
Issuance of common shares 10,589,713 31 350 - - - 381 - 381
Purchase of treasury shares - - - - (33,669,654) (1,658) (1,658) - (1,658)
Sale of treasury shares((a)) - - - - 3,440 - - - -
Share-based payments - - 129 - - - 129 - 129
Share cancellation - - - - - - - - -
Net issuance (repayment) of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (278) - - - (278) - (278)
Other operations with - - 3 - - - 3 710 713
non-controlling interests
Other items - - (8) (2) - - (10) 10 -
As of December 31, 2021 2,640,429,329 8,224 117,849 (12,671) (33,841,104) (1,666) 111,736 3,263 114,999
Net income of the first quarter 2022 - - 4,944 - - - 4,944 107 5,051
Other comprehensive income - - (19) (972) - - (991) 22 (969)
Comprehensive Income - - 4,925 (972) - - 3,953 129 4,082
Dividend - - - - - - - (22) (22)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (22,378,128) (1,176) (1,176) - (1,176)
Sale of treasury shares((a)) - - (315) - 6,168,047 315 - - -
Share-based payments - - 92 - - - 92 - 92
Share cancellation (30,665,526) (87) (1,418) - 30,665,526 1,505 - - -
Net issuance (repayment) of perpetual subordinated notes - - 1,958 - - - 1,958 - 1,958
Payments on perpetual subordinated notes - - (96) - - - (96) - (96)
Other operations with - - (1) - - - (1) 6 5
non-controlling interests
Other items - - 14 - - - 14 (1) 13
As of March 31, 2022 2,609,763,803 8,137 123,008 (13,643) (19,385,659) (1,022) 116,480 3,375 119,855
((a))Treasury shares related to the performance share grants.
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) quarter 2022 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 12,294 2,151 31,008 23,149 4 - 68,606
Intersegment sales 1,471 13,818 9,277 267 63 (24,896) -
Excise taxes - - (192) (4,464) - - (4,656)
Revenues from sales 13,765 15,969 40,093 18,952 67 (24,896) 63,950
Operating expenses (11,632) (5,708) (37,411) (17,984) (293) 24,896 (48,132)
Depreciation, depletion and impairment of tangible assets and mineral (321) (2,661) (380) (273) (44) - (3,679)
interests
Operating income 1,812 7,600 2,302 695 (270) - 12,139
Net income (loss) from equity affiliates and other items (2,500) 242 156 (42) 108 - (2,036)
Tax on net operating income (294) (3,863) (525) (225) 105 - (4,802)
Net operating income (982) 3,979 1,933 428 (57) - 5,301
Net cost of net debt (250)
Non-controlling interests (107)
Net income - TotalEnergies share 4,944
1(st) quarter 2022 (adjustments)((a)) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 12 - - - - - 12
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales 12 - - - - - 12
Operating expenses (117) (791) 947 268 (132) - 175
Depreciation, depletion and impairment of tangible assets and mineral - (493) - (29) (9) - (531)
interests
Operating income ((b)) (105) (1,284) 947 239 (141) - (344)
Net income (loss) from equity affiliates and other items (3,939) (14) 117 (3) 106 - (3,733)
Tax on net operating income 11 262 (251) (80) 20 - (38)
Net operating income ((b)) (4,033) (1,036) 813 156 (15) - (4,115)
Net cost of net debt 113
Non-controlling interests (31)
Net income - TotalEnergies share (4,033)
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
((b) )Of which inventory valuation effect
- On operating income - - 947 308 -
- On net operating income - - 845 228 -
1(st) quarter 2022 (adjusted) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 12,282 2,151 31,008 23,149 4 - 68,594
Intersegment sales 1,471 13,818 9,277 267 63 (24,896) -
Excise taxes - - (192) (4,464) - - (4,656)
Revenues from sales 13,753 15,969 40,093 18,952 67 (24,896) 63,938
Operating expenses (11,515) (4,917) (38,358) (18,252) (161) 24,896 (48,307)
Depreciation, depletion and impairment of tangible assets and mineral (321) (2,168) (380) (244) (35) - (3,148)
interests
Adjusted operating income 1,917 8,884 1,355 456 (129) - 12,483
Net income (loss) from equity affiliates and other items 1,439 256 39 (39) 2 - 1,697
Tax on net operating income (305) (4,125) (274) (145) 85 - (4,764)
Adjusted net operating income 3,051 5,015 1,120 272 (42) - 9,416
Net cost of net debt (363)
Non-controlling interests (76)
Adjusted net income - TotalEnergies share 8,977
1(st) quarter 2022 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
Total expenditures 1,439 1,971 228 140 9 3,787
Total divestments 1,015 283 27 79 5 1,409
Cash flow from operating activities 315 5,768 1,107 898 (471) 7,617
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
4(th) quarter 2021 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 11,634 2,068 24,781 21,854 11 - 60,348
Intersegment sales 1,466 11,875 8,716 155 148 (22,360) -
Excise taxes - - (238) (4,812) - - (5,050)
Revenues from sales 13,100 13,943 33,259 17,197 159 (22,360) 55,298
Operating expenses (11,141) (5,412) (32,250) (16,347) (374) 22,360 (43,164)
Depreciation, depletion and impairment of tangible assets and mineral (545) (2,637) (399) (307) (31) - (3,919)
interests
Operating income 1,414 5,894 610 543 (246) - 8,215
Net income (loss) from equity affiliates and other items 1,281 74 228 83 32 - 1,698
Tax on net operating income (237) (3,124) (234) (164) 75 - (3,684)
Net operating income 2,458 2,844 604 462 (139) - 6,229
Net cost of net debt (326)
Non-controlling interests (66)
Net income - TotalEnergies share 5,837
4(th) quarter 2021 (adjustments)((a)) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales - - - - - - -
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - - - - - - -
Operating expenses (57) (132) 38 21 - - (130)
Depreciation, depletion and impairment of tangible assets and mineral (187) (418) - (36) - - (641)
interests
Operating income ((b)) (244) (550) 38 (15) - - (771)
Net income (loss) from equity affiliates and other items (116) (111) 23 (6) 6 - (204)
Tax on net operating income 59 (20) (10) 4 (69) - (36)
Net operating income ((b)) (301) (681) 51 (17) (63) - (1,011)
Net cost of net debt 10
Non-controlling interests 13
Net income - TotalEnergies share (988)
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
((b) )Of which inventory valuation effect
- On operating income - - 32 53 -
- On net operating income - - 74 47 -
4(th) quarter 2021 (adjusted) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 11,634 2,068 24,781 21,854 11 - 60,348
Intersegment sales 1,466 11,875 8,716 155 148 (22,360) -
Excise taxes - - (238) (4,812) - - (5,050)
Revenues from sales 13,100 13,943 33,259 17,197 159 (22,360) 55,298
Operating expenses (11,084) (5,280) (32,288) (16,368) (374) 22,360 (43,034)
Depreciation, depletion and impairment of tangible assets and mineral (358) (2,219) (399) (271) (31) - (3,278)
interests
Adjusted operating income 1,658 6,444 572 558 (246) - 8,986
Net income (loss) from equity affiliates and other items 1,397 185 205 89 26 - 1,902
Tax on net operating income (296) (3,104) (224) (168) 144 - (3,648)
Adjusted net operating income 2,759 3,525 553 479 (76) - 7,240
Net cost of net debt (336)
Non-controlling interests (79)
Adjusted net income - TotalEnergies share 6,825
4(th) quarter 2021 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
Total expenditures 1,471 2,327 723 643 30 5,194
Total divestments 540 357 202 181 2 1,282
Cash flow from operating activities (57) 8,624 2,446 386 222 11,621
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) quarter 2021 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 5,502 1,514 19,201 17,513 7 - 43,737
Intersegment sales 811 6,578 5,521 78 29 (13,017) -
Excise taxes - - (405) (4,699) - - (5,104)
Revenues from sales 6,313 8,092 24,317 12,892 36 (13,017) 38,633
Operating expenses (5,218) (3,068) (22,933) (12,076) (167) 13,017 (30,445)
Depreciation, depletion and impairment of tangible assets and mineral (471) (2,183) (391) (255) (25) - (3,325)
interests
Operating income 624 2,841 993 561 (156) - 4,863
Net income (loss) from equity affiliates and other items 263 270 88 (34) (28) - 559
Tax on net operating income (101) (1,180) (280) (176) 38 - (1,699)
Net operating income 786 1,931 801 351 (146) - 3,723
Net cost of net debt (311)
Non-controlling interests (68)
Net income - TotalEnergies share 3,344
1(st) quarter 2021 (adjustments)((a)) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales (35) - - - - - (35)
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales (35) - - - - - (35)
Operating expenses (8) - 745 142 - - 879
Depreciation, depletion and impairment of tangible assets and mineral (145) - - - - - (145)
interests
Operating income ((b)) (188) - 745 142 - - 699
Net income (loss) from equity affiliates and other items (49) (46) 6 (35) (40) - (164)
Tax on net operating income 38 2 (193) (40) 2 - (191)
Net operating income ((b)) (199) (44) 558 67 (38) - 344
Net cost of net debt 6
Non-controlling interests (9)
Net income - TotalEnergies share 341
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
((b) )Of which inventory valuation effect
- On operating income - - 746 137 -
- On net operating income - - 606 98 -
1(st) quarter 2021 (adjusted) Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
External sales 5,537 1,514 19,201 17,513 7 - 43,772
Intersegment sales 811 6,578 5,521 78 29 (13,017) -
Excise taxes - - (405) (4,699) - - (5,104)
Revenues from sales 6,348 8,092 24,317 12,892 36 (13,017) 38,668
Operating expenses (5,210) (3,068) (23,678) (12,218) (167) 13,017 (31,324)
Depreciation, depletion and impairment of tangible assets and mineral (326) (2,183) (391) (255) (25) - (3,180)
interests
Adjusted operating income 812 2,841 248 419 (156) - 4,164
Net income (loss) from equity affiliates and other items 312 316 82 1 12 - 723
Tax on net operating income (139) (1,182) (87) (136) 36 - (1,508)
Adjusted net operating income 985 1,975 243 284 (108) - 3,379
Net cost of net debt (317)
Non-controlling interests (59)
Adjusted net income - TotalEnergies share 3,003
1(st) quarter 2021 Integrated Gas, Exploration Refining Marketing Corporate Intercompany Total
Renewables & & &
& Power Production Chemicals Services
(M$)
Total expenditures 3,020 1,365 287 138 26 4,836
Total divestments 142 311 116 71 12 652
Cash flow from operating activities 780 3,736 996 665 (579) 5,598
Reconciliation of the information by business segment with Consolidated
Financial Statements
TotalEnergies
(unaudited)
Consolidated
1(st) quarter 2022 statement
(M$) Adjusted Adjustments((a)) of income
Sales 68,594 12 68,606
Excise taxes (4,656) - (4,656)
Revenues from sales 63,938 12 63,950
Purchases net of inventory variation (40,762) 1,114 (39,648)
Other operating expenses (7,409) (214) (7,623)
Exploration costs (136) (725) (861)
Depreciation, depletion and impairment of tangible assets and mineral (3,148) (531) (3,679)
interests
Other income 121 22 143
Other expense (269) (2,021) (2,290)
Financial interest on debt (462) - (462)
Financial income and expense from cash & cash equivalents 59 155 214
Cost of net debt (403) 155 (248)
Other financial income 119 84 203
Other financial expense (135) - (135)
Net income (loss) from equity affiliates 1,861 (1,818) 43
Income taxes (4,724) (80) (4,804)
Consolidated net income 9,053 (4,002) 5,051
TotalEnergies share 8,977 (4,033) 4,944
Non-controlling interests 76 31 107
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
Consolidated
1(st) quarter 2021 statement
(M$) Adjusted Adjustments((a)) of income
Sales 43,772 (35) 43,737
Excise taxes (5,104) - (5,104)
Revenues from sales 38,668 (35) 38,633
Purchases net of inventory variation (24,289) 891 (23,398)
Other operating expenses (6,868) (12) (6,880)
Exploration costs (167) - (167)
Depreciation, depletion and impairment of tangible assets and mineral (3,180) (145) (3,325)
interests
Other income 416 (58) 358
Other expense (192) (467) (659)
Financial interest on debt (466) - (466)
Financial income and expense from cash & cash equivalents 87 8 95
Cost of net debt (379) 8 (371)
Other financial income 109 - 109
Other financial expense (130) - (130)
Net income (loss) from equity affiliates 520 361 881
Income taxes (1,446) (193) (1,639)
Consolidated net income 3,062 350 3,412
TotalEnergies share 3,003 341 3,344
Non-controlling interests 59 9 68
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
((1)) Definition on page 3.
((2) )Excluding leases.
Operating cash flow before working capital changes minus net investments,
minus dividends paid and shares buybacks.
((3)) 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.
((4)) Adjusted results are defined as income using replacement cost, adjusted
for special items, excluding the impact of changes for fair value; adjustment
items are on page 17.
((5) )Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and
Amortization) corresponds to the adjusted earnings before depreciation,
depletion and impairment of tangible and intangible assets and mineral
interests, income tax expense and cost of net debt, i.e., all operating income
and contribution of equity affiliates to net income.
((6)) 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).
((7)) In accordance with IFRS rules, adjusted fully-diluted earnings per share
is calculated from the adjusted net income less the interest on the perpetual
subordinated bond
((8)) Organic investments = net investments excluding acquisitions, asset
sales and other operations with non-controlling interests.
((9)) Net acquisitions = acquisitions – assets sales – other transactions
with non-controlling interests (see page 19).
((10)) Net investments = organic investments + net acquisitions (see page 19).
((11)) Operating cash flow before working capital changes, is defined as cash
flow from operating activities before changes in working capital at
replacement cost, excluding the mark-to-market effect of iGRP’s contracts
and including capital gain from renewable projects sale (effective first
quarter 2020).
The inventory valuation effect is explained on page 21. The reconciliation
table for different cash flow figures is on page 19.
((12)) DACF = debt adjusted cash flow, is defined as operating cash flow
before working capital changes and financial charges
((13) )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.
((14)) Scope 1+2 GHG emissions of operated facilities are defined as the sum
of direct emissions of greenhouse gases from sites or activities that are
included in the scope of reporting (as defined in the Company’s 2021
Universal Registration Document) and indirect emissions attributable to
brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H(2)).
((15) )TotalEnergies reports Scope 3 GHG emissions, category 11, which
correspond to indirect GHG emissions related to the use by customers of energy
products, i.e., combustion of the products to obtain energy. The Company
follows the oil & gas industry reporting guidelines published by IPIECA,
which comply with the GHG Protocol methodologies. In order to avoid double
counting, this methodology accounts for the largest volume in the oil and gas
value chain, i.e., the higher of the two production volumes or sales to end
customers. For TotalEnergies, in 2021 and 2022, the calculation of Scope 3 GHG
emissions for the oil value chain considers oil products and biofuels sales
(higher than production) and for the gas value chain, gas sales either as LNG
or as part of direct sales to B2B/B2C customers (higher than or equivalent to
marketable gas production).
((16) )Scope 3 GHG emissions, category 11, which correspond to indirect GHG
emissions related to the sale of petroleum products (including biofuels).
((17) )Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2
GHG emissions of facilities operated by the Company and indirect GHG emissions
related to the use by customers of energy products (Scope 3) in the EU,
Norway, United Kingdom and Switzerland.
((18)) These adjustment elements are explained page 21.
((19)) Total adjustment items in net income are detailed page 17 as well as in
the annexes to the accounts
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