REG-TotalEnergies SE Half-year Report
16/09/2021 12:10
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Half-year Report
TOTAL ENERGIES
Financial report
1(st) half 2021
Certification of the person responsible for the half-year financial report
This translation is a non binding translation into English of the Chairman and
Chief Executive Officer’s certification issued in French, and is provided
solely for the convenience of English-speaking readers.
“I certify, to the best of my knowledge, that the condensed Consolidated
Financial Statements of TotalEnergies SE (the Corporation) for the first half
of 2021 have been prepared in accordance with the applicable set of accounting
standards and give a fair view of the assets, liabilities, financial position
and profit or loss of the Corporation and all the entities included in the
consolidation, and that the half-year financial report on pages to
herein includes a fair review of the important events that have occurred
during the first six months of the financial year and their impact on the
financial statements, major related parties transactions and the principal
risks and uncertainties for the remaining six months of the financial year.
The statutory auditors’ report on the limited review of the above-mentioned
condensed Consolidated Financial Statements is included on page of this
half-year financial report.”
Courbevoie, July 29, 2021
Patrick Pouyanné
Chairman and Chief Executive Officer
Glossary
The terms “TotalEnergies” and “TotalEnergies company” as used in this
document refer to TotalEnergies SE collectively with all of its direct and
indirect consolidated companies located in or outside of France. The term
“Corporation” as used in this document exclusively refers to TotalEnergies
SE, which is the parent company of TotalEnergies company.
Abbreviations
€ : euro
$ or dollar : US dollar
ADR : American depositary receipt (evidencing an ADS)
ADS : American depositary share (representing a share of a company)
AMF : Autorité des marchés financiers (French Financial Markets Authority)
API : American Petroleum Institute
CO(2) : carbon dioxide
DACF : debt adjusted cash flow is defined as operating cash flow before working
capital changes without financial charges
EV : electric vehicle
FLNG : floating liquefied natural gas
FPSO : floating production, storage and offloading
FSRU : floating storage and regasification unit
GHG : greenhouse gas
HSE : health, safety and the environment
IFRS : International Financial Reporting Standards
IPIECA : International Petroleum Industry Environmental Conservation Association
LNG : liquefied natural gas
LPG : liquefied petroleum gas
NGL : natural gas liquids
NGV : natural gas vehicle
OML : oil mining lease
PPA : Power Purchase Agreement
ROACE : return on average capital employed
ROE : return on equity
SEC : United States Securities and Exchange Commission
VCM : variable cost margin – Refining Europe
This indicator represents the average margin on variable costs realized by
TotalEnergies’ European refining business. It is 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.
Units of measurement
b = barrel((1))
b = billion
Bcm = billion of cubic meters
boe = barrel of oil equivalent
btu = British thermal unit
cf = cubic feet
CO(2)e = CO(2) equivalent
/d = per day
GtCO(2) = billion of CO(2) tons
GW = gigawatt
GWh = gigawatt hour
k = thousand
km = kilometer
m = meter
m³ = cubic meter((1))
M = million
MW = megawatt
PJ = petajoule
t = (Metric) ton
toe = ton of oil equivalent
TWh = terawatt hour
W = watt
Wac = AC watt
Wp = watt-peak or watt of peak power
/y = per year
Conversion table
1 acre ≈ 0.405 hectares
1 b = 42 gallons US ≈ 159 liters
1 b/d of crude oil ≈ 50 t/y of crude oil
1 km ≈ 0.62 miles
1 m³ ≈ 35.3 cf
1 Mt de LNG ≈ 48 Bcf of gas
1 Mt/y of LNG ≈ 131 Mcf/d of gas
1 t of oil ≈ 7.5 b of oil (assuming a specific gravity of 37° API)
1 boe = 1 b of crude oil ≈ 5,399 cf of gas in 2020((2)) (5,395 cf in 2019
and 5,387 cf in 2018)
(1) Liquid and gas volumes are reported at international standard metric
conditions (15°C and 1 atm).
(2) Natural gas is converted to barrels of oil equivalent using a ratio of
cubic feet of natural gas per one barrel. This ratio is based on the actual
average equivalent energy content of TotalEnergies’ natural gas reserves
during the applicable periods and is subject to change. The tabular conversion
rate is applicable to TotalEnergies natural gas reserves on a Company-wide
basis.
01 HALF YEAR FINANCIAL REPORT
1.1 Highlights since the beginning of 2021((1)
)Sustainability
* Total transforms and becomes TotalEnergies, with a new visual identity
* TotalEnergies’ Board of Directors takes the initiative to submit a
resolution on the Company’s ambition for sustainable development and energy
transition toward carbon neutrality
* Consistent with its climate policy, TotalEnergies withdraws from the American
Petroleum Institute
* Inauguration of L’Industreet, a campus for training young people in the
industry profession, TotalEnergies’ flagship action for social
responsibility in France
* 3(rd) place globally and 1(st) place for the sector Oil and Gas in the
BloombergNEF ranking on the alignment of corporate strategies with the United
Nations’ Sustainable Development Goals
* TotalEnergies and Chevron decide to suspend distribution of dividends from gas
transport company in Myanmar
* Partnership with Novatek to reduce emissions from LNG production, develop
large-scale carbon capture and storage, and study carbon-free hydrogen and
ammonia projects
* Partnership with GHGSat for satellite-based monitoring of methane emissions at
sea
Renewables and Electricity
* Acquired in India 20% of Adani Green Energy Limited (AGEL), the largest solar
developer in the world
* Secured with Macquarie rights to seabed lease to jointly develop 1.5 GW
offshore wind project in the UK
* Acquired 4 GW portfolio of solar and energy storage projects in the US
* Farmed down 50% of two renewables portfolios in France representing close to
340 MW
* Acquired 23% stake in 640 MW offshore wind project under construction in
Taiwan
* Acquisition by Adani Green Energy Ltd., in which TotalEnergies has a 20%
stake, of a portfolio of 5 GW of renewable electricity generation capacity in
operation and under construction in India that will contribute 1 GW to
TotalEnergies’ target of 35 GW in 2025
* Signed major green power sale agreement to Orange to develop 80 MW of solar
farms in France
* Signed contract with Merck & Co. for the sale of 90 GWh/y renewable
electricity in Spain for 10 years
* Sales contract for 50GWh/y over 15 years with Air Liquide in Belgium
* Partnered with Microsoft to support digital innovation and carbon neutrality
goals
* Partnership with Amazon to supply (474 MW) renewable electricity to its data
centers in Europe and the United States, and to accelerate TotalEnergies
digital transformation
LNG
* Declaration of force majeure on Mozambique LNG project considering the
security situation in the northern Cabo Delgado
* Remobilization of the Papua LNG project with a view to final investment
decision in 2023
* Agreement with Novatek to acquire 10% of Arctic Transshipment LLC, which will
operate two LNG transshipment terminals under construction in Russia
* Tolling agreement with GIP, for more than $750 million, for Gladstone LNG
infrastructure in Australia
* Withdrew from the Driftwood LNG project and sold TotalEnergies’ stake in
Tellurian Inc.
* Signed agreements with Shenergy Group for the supply of up to 1.4 Mt/y of LNG
in China
* Signed contract with ArcelorMittal Nippon Steel for a 5-year supply of up to
0.5 Mt/y of LNG in India
* Obtained supplier license for marine bunker LNG in Singapore
* Technical collaboration agreements with Siemens Energy and Technip Energies to
develop low-carbon LNG technologies
Upstream
* Signed definitive agreements enabling the launch of Tilenga and Kingfisher
upstream oil projects and construction of East African Crude Oil Pipeline in
Uganda and Tanzania
* Published societal and environmental studies relating to the Tilenga and EACOP
projects in Uganda and Tanzania
* Started production of Zinia Phase 2, short-cycle development project on Block
17 in Angola
* Significant new discovery on the Sapakara South well in Suriname
* Awarded two new conventional offshore exploration permits in Suriname with
partner Qatar Petroleum
* Entry on Block 29 exploration permit in Angola as operator
* Agreed to divest TotalEnergies 18% interest in the Sarsang block, in Iraqi
Kurdistan
* Divested TotalEnergies’ interest in Petrocedeño to PDVSA in Venezuela which
led to the recognition of an exceptional capital loss of $1.38 billion during
the second quarter 2021
Downstream
* Started production of sustainable aviation biofuels in France and made, in
partnership with Air France-KLM, Groupe ADP and Airbus, the first long-haul
flight with sustainable air fuel (SAF) in France
* Obtained concession for the expansion of the public charging network for
electric vehicles of the City of Amsterdam, with 2,200 new charging points
* Global partnership in the field of lubricants and electric mobility with
Peugeot, Citroën, DS Automobiles, Opel and Vauxhall
* Partnership agreement with Uber to accelerate transition of VTC drivers to
electric mobility in France
* Acquired 20% stake in Hysetco, a French company owning the world’s first
fleet of hydrogen taxis, operated under the Hype brand, as well as hydrogen
charging stations
Carbon sinks
* Investment to plant 40,000-hectare forest in Republic of Congo that will
create a carbon sink to sequester more than 10 million tons of CO(2) over 20
years
* Creation of the joint-venture development of the Northern Lights CO(2)
sequestration project in the northern North Sea
(1) Certain transactions referred to in the highlights are subject to approval
by authorities or to conditions as per the agreements.
1.2 Key figures from TotalEnergies’ consolidated financial statements((1))
In millions of dollars, except effective tax rate, earnings per share and 1S21 1S20 1S21 vs 1S20
number of shares
Adjusted EBITDA((2)) 16,837 10,583 +59%
Adjusted net operating income from business segments 7,519 3,121 x2.4
Exploration & Production 4,188 494 x8.5
Integrated Gas, Renewables & Power 1,876 1,239 +51%
Refining & Chemicals 754 957 -21%
Marketing & Services 701 431 +63%
Contribution of equity affiliates to adjusted net income 1,260 669 +88%
Effective tax rate((3)) 34.4% 24.3% –
Adjusted net income (TotalEnergies share) 6,466 1,907 x3.4
Adjusted fully-diluted earnings per share (dollars)((4)) 2.38 0.68 x3.5
Adjusted fully-diluted earnings per share (euros)* 1.97 0.62 x3.2
Fully-diluted weighted-average shares (millions) 2,644 2,598 +2%
Net income (TotalEnergies share) 5,550 (8,335) ns
Organic investments((5)) 5,181 4,724 +10%
Net acquisitions((6)) 1,986 1,823 +9%
Net investments((7)) 7,167 6,547 +9%
Operating cash flow before working capital changes**((8)) 11,718 7,409 +58%
Operating cash flow before working capital changes w/o financial charges 12,511 8,420 +49%
(DACF)((9))
Cash flow from operations 13,149 4,778 x2.8
* Average €-$ exchange rate: 1.2053 in the first half 2021.
** 1H20 data restated.
(1) 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 ■.
(2) 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.
(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 bond.
(5) Organic investments = net investments excluding acquisitions, asset sales
and other operations with non-controlling interests.
(6) Net acquisitions = acquisitions – assets sales – other transactions
with non-controlling interests (see page ■).
(7) Net investments = organic investments + net acquisitions (see page ■).
(8) 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 ■. The reconciliation
table for different cash flow figures is on page ■.
(9) DACF = debt adjusted cash flow, is defined as operating cash flow before
working capital changes and financial charges.
1.3 Key figures of environment, greenhouse gas emissions and production
1.3.1 Environment – liquids and gas price realizations, refining margins
1S21 1S20 1S21 vs 1S20
Brent ($/b) 65.0 40.1 +62%
Henry Hub ($/Mbtu) 2.9 1.8 +57%
NBP ($/Mbtu) 7.7 2.4 x3.2
JKM ($/Mbtu) 10.0 2.9 x3.5
Average price of liquids ($/b) Consolidated subsidiaries 59.7 33.8 +77%
Average price of gas ($/Mbtu) Consolidated subsidiaries 4.23 2.99 +41%
Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates 6.33 5.42 +17%
Variable cost margin – Refining Europe, VCM ($/t) 7.6 21.0 -64%
1.3.2 Greenhouse gas emissions((1))
GHG emissions (MtCO(2)e) 1S21
Scope 1+2 from operated oil & gas facilities((2)) 15
Scope 3((3)) 159
Scope 1+2+3 in Europe((4)) 95
1.3.3 Production*
Hydrocarbon production 1S21 1S20 1S21 vs 1S20
Hydrocarbon production (kboe/d) 2,805 2,966 -5%
Oil (including bitumen) (kb/d) 1,265 1,381 -8%
Gas (including condensates and associated NGL) (kboe/d) 1,540 1,584 -3%
Hydrocarbon production (kboe/d) 2,805 2,966 -5%
Liquids (kb/d) 1,486 1,626 -9%
Gas (Mcf/d) 7,208 7,302 -1%
* Company production = E&P production + iGRP production
Hydrocarbon production was 2,805 kboe/d in the first half 2021, a decrease of
5%, comprised of:
* +2% due to the start-up and ramp-up of projects, including North Russkoye in
Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and Iara in
Brazil,
* -1% portfolio effect, notably asset sales in the United Kingdom and Block CA1
in Brunei,
* -2% due to planned maintenance and unplanned outages, notably in the United
Kingdom, Australia, Norway and Nigeria,
* -1% due to the price effect,
* -3% due to the natural decline of the fields.
(1) 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.
(2) Scope 1+2 GHG emissions of operated oil & gas 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 2020 Universal Registration Document) and
indirect emissions attributable to brought-in energy (electricity, heat,
steam), excluding purchased industrial gases (H(2)). They do not include
facilities for power generation from renewable sources or natural gas, such as
combined cycle natural gas power plants (CCGT) and sites with GHG emissions
and activities of less than 30 kt CO(2)e/year.
(3) Scope 3 GHG emissions are defined as the indirect emissions of greenhouse
gases related to the use by customers of energy products sold for end-use,
i.e. combustion of the products to obtain energy. A stoichiometric emission
(oxidation of molecules to carbon dioxide) factor is applied to these sales to
obtain an emission volume. The Company usually follows the oil & gas
industry reporting guidelines published by IPIECA, which comply with the GHG
Protocol methodologies. Only item 11 of Scope 3 (use of sold products), which
is the most significant, is reported.
(4) 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 sold for end-use (Scope 3)
in the EU, Norway, United Kingdom and Switzerland.
1.4 Analysis of business segments
1.4.1 Integrated Gas, Renewables & Power (iGRP)
1.4.1.1 Production and sales of Liquefied natural gas (LNG) and electricity
Hydrocarbon production for LNG 1S21 1S20 1S21 vs 1S20
iGRP (kboe/d) 510 536 -5%
Liquids (kb/d) 58 69 -17%
Gas (Mcf/d) 2,470 2,541 -3%
Liquefied Natural Gas in Mt 1S21 1S20 1S21 vs 1S20
Overall LNG sales 20.4 20.2 +1%
incl. Sales from equity production* 8.5 9.0 -5%
incl. Sales by TotalEnergies from equity production and third party purchases 16.7 16.5 +1%
* The Company’s equity production may be sold by TotalEnergies or by the
joint ventures.
Hydrocarbon production for LNG decreased year-on-year by 5% in the first half
2021, notably due to the shutdown of the Snøhvit LNG plant following a fire
at the end of September 2020 and the planned maintenance shutdown in the
second quarter 2021 on Ichthys LNG’s liquefaction trains in Australia.
Total LNG sales were stable year-on-year in the first half 2021.
Renewables & Electricity 1S21 1S20 1S21 vs 1S20
Portfolio of renewable power generation gross capacity (GW)((1)(2)) 41.7 20.4 x2
o/w installed capacity 8.3 5.1 +63%
o/w capacity in construction 5.4 2.9 +89%
o/w capacity in development 28.0 12.4 x2.3
Gross renewables capacity with PPA (GW)((1)(2)) 22.6 11.2 x2
Portfolio of renewable power generation net capacity (GW)((1)(2)) 30.7 13.6 x2.3
o/w installed capacity 4.0 2.3 +76%
o/w capacity in construction 3.1 1.1 x3
o/w capacity in development 23.6 10.3 x2.3
Net power production (TWh)((3)) 9.8 5.9 +67%
incl. Power production from renewables 3.2 1.8 +79%
Clients power – BtB and BtC (Million)((2)) 5.8 4.2 +38%
Clients gas – BtB and BtC (Million)((2)) 2.7 1.7 +58%
Sales power – BtB and BtC (TWh) 28.8 23.6 +22%
Sales gas – BtB and BtC (TWh) 56.8 50.9 +12%
Proportional adjusted EBITDA Renewables and Electricity (M$)((4)) 635 340 +87%
incl. from renewables business 210 184 +14%
Gross installed capacity of renewable electricity generation grew to 8.3 GW at
the end of first semester 2021.
Net electricity production was 9.8 TWh in the first half 2021, an increase of
67% year-on-year, notably due to strong growth in renewable electricity
generation and the acquisition of four CCGT plants in France and Spain in the
fourth quarter of 2020.
Electricity and gas sales increased by 22% and 12% respectively in the first
half 2021 compared to last year thanks to the growing number of customers,
with TotalEnergies notably surpassing the 5 million customer mark (B2C and
B2B) in France.
TotalEnergies’ share of the EBITDA of the Renewables and Electricity
activities was $635 million in the first half 2021, an increase of 87% over
one year, driven by growing electricity production, particularly renewable
electricity, and the number of gas and electricity customers.
(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 and Electricity affiliates,
regardless of consolidation method.
1.4.1.2 Results
In millions of dollars 1S21 1S20 1S21 vs 1S20
Adjusted net operating income* 1,876 1,239 +51%
including income from equity affiliates 620 179 x3.5
Organic investments 1,512 1,264 +20%
Net acquisitions 2,059 1,570 +31%
Net investments 3,571 2,834 +26%
Operating cash flow before working capital changes** 1,963 1,652 +19%
Cash flow from operations*** 1,347 900 +50%
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial expenses, 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. 1H20 data restated
(see note 8 on page ■).
*** Excluding financial charges, except those related to leases.
Adjusted net operating income for the iGRP sector was 1,876 million in the
first half 2021, an increase of 51% year-on-year, thanks to higher LNG prices,
growing contribution from Renewables and Electricity as well as good
performance by the trading activities in the first quarter 2021.
Operating cash flow before working capital changes increased 19% year-on-year
to $1,963 million in the first half 2021, in line with the rise in LNG prices
and the growing contribution of Renewables and Electricity.
1.4.2 Exploration-Production
1.4.2.1 Production
Hydrocarbon production 1S21 1S20 1S21 vs 1S20
EP (kboe/d) 2,295 2,430 -6%
Liquids (kb/d) 1,428 1,557 -8%
Gas (Mcf/d) 4,738 4,761 –
1.4.2.2 Results
In millions of dollars, except effective tax rate 1S21 1S20 1S21 vs 1S20
Adjusted net operating income* 4,188 494 x8.5
including income from equity affiliates 549 438 +25%
Effective tax rate** 39.5% 69.6% –
Organic investments 2,838 2,684 +6%
Net acquisitions 29 305 -90%
Net investments 2,867 2,989 -4%
Operating cash flow before working capital changes*** 8,086 4,386 +84%
Cash flow from operations*** 8,571 4,833 +77%
* 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 Exploration & Production was $4,188
million in the first half 2021, more than eight times higher in the first half
2020, thanks to the sharp rebound in oil and gas prices.
Operating cash flow before working capital changes increased by 84% to $8,086
million in the first half 2021, in line with higher oil and gas prices.
1.4.3 Downstream (Refining & Chemicals and Marketing & Services)
1.4.3.1 Results
In millions of dollars 1S21 1S20 1S21 vs 1S20
Adjusted net operating income* 1,455 1,388 +5%
Organic investments 803 734 +9%
Net acquisitions (104) (50) ns
Net investments 699 684 +2%
Operating cash flow before working capital changes** 2,332 2,552 -9%
Cash flow from operations** 4,330 317 x13.7
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to leases.
1.4.3.2 Refining & Chemicals
1.4.3.2.1 Refinery and petrochemicals throughput and utilization rates
Refinery throughput and utilization rate* 1S21 1S20 1S21 vs 1S20
Total refinery throughput (kb/d) 1,109 1,347 -18%
France 131 230 -43%
Rest of Europe 578 676 -14%
Rest of world 400 441 -9%
Utlization rate based on crude only** 58% 64%
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year, excluding
Grandpuits (definitively shut down first quarter 2021) from 2021 and Lindsey
refinery (divested) from second quarter 2021.
Petrochemicals production and utilization rate 1S21 1S20 1S21 vs 1S20
Monomers* (kt) 2,829 2,778 +2%
Polymers (kt) 2,377 2,395 -1%
Vapocracker utilization rate** 88% 83%
* Olefins.
** Based on olefins production from steamcrackers and their treatment capacity
at the start of the year.
Refinery throughput decreased 18% in the first half 2021 compared to the
previous year, mainly due to the prolonged voluntary economic shutdown of the
Donges refinery given the low European margins, the planned major shutdown of
the Leuna refinery in Germany, the shutdown of the Grandpuits refinery in the
first quarter 2021 for its conversion to a zero-oil platform, and the sale of
the Lindsey refinery in the United Kingdom. The decrease was partially offset
by the restart of the Feyzin refinery, in France, and the distillation unit at
the Normandy platform, following a fire at the end of 2019.
Monomer production increased slightly in the first half 2021 compared to a
year ago thanks to the restart of the Feyzin refinery, in France, after a
major shutdown in 2020.
Polymer production also increased slightly in the first half 2021 compared to
a year ago, despite the major shutdown in the second quarter 2021 of the Feluy
plant in Belgium.
1.4.3.2.2 Results
In millions of dollars 1S21 1S20 1S21 vs 1S20
Adjusted net operating income* 754 957 -21%
Organic investments 501 470 +7%
Net acquisitions (55) (51) ns
Net investments 446 419 +6%
Operating cash flow before working capital changes** 1,147 1,670 -31%
Cash flow from operations** 3,228 (103) ns
* 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-Chemicals segment decreased 21%
year-on-year to $754 million in the first half of 2021, due to still-depressed
European refining margins that reflect the recovery in oil prices and the
continued weak product demand, notably for distillates, linked to the reduced
air transport, and to the outperformance of trading activities in the first
half 2020. The first half 2021 results nevertheless benefited from the very
good performance of petrochemicals.
Operating cash flow before working capital changes decreased by 31% to 1,147
M$ in the first half 2021.
Cash flow from operations increased to $3,228 million in the first half 2021
from $(103) million in the first half 2020, mainly due to a decrease in
working capital requirements and a positive stock effect.
1.4.3.3 Marketing & Services
1.4.3.3.1 Petroleum product sales
Sales in kb/d* 1S21 1S20 1S21 vs 1S20
Total Marketing & Services sales 1,458 1,478 -1%
Europe 783 823 -5%
Rest of world 674 656 +3%
* Excludes trading and bulk refining sales.
In the first half 2021, petroleum products sales were stable overall
year-on-year, as the slowdown in global activity due to the Covid-19 pandemic
and the 50% decline in the aviation activity were offset by the global
economic rebound seen in the second quarter of 2021.
1.4.3.3.2 Results
In millions of dollars 1S21 1S20 1S21 vs 1S20
Adjusted net operating income* 701 431 +63%
Organic investments 302 264 +14%
Net acquisitions (49) 1 ns
Net investments 253 265 -5%
Operating cash flow before working capital changes** 1,185 882 +34%
Cash flow from operations** 1,102 420 x2.6
* Detail of adjustment items shown in the business segment information annex
to financial statements.
** Excluding financial charges, except those related to leases.
In first half 2021, adjusted net operating income was $701 million compared to
$431 million a year earlier. This increase was mainly related to the increase
in global sales volumes in a context of rising margins.
Operating cash flow before working capital changes was $1,185 million in the
first half 2021.
1.5 TotalEnergies results
1.5.1 Adjusted net operating income from business segments
Adjusted net operating income for the sectors was $7,519 million in the first
half 2021, compared to $3,121 million a year earlier, due to higher oil and
gas prices.
1.5.2 Adjusted net income (TotalEnergies share)
Adjusted net income (TotalEnergies share) was $6,466 million in the first half
2021 compared to $1,907 million a year earlier, due to the increase in oil and
gas prices.
Adjusted net income excludes the after-tax inventory effect, special items and
impact of changes in fair value((1)).
Total net income adjustments((2)) were $(916) million in the first half 2021,
mainly comprised of the effect of the sale of TotalEnergies’ participation
in Petrocedeño to PDVSA in Venezuela for an amount of $(1,379) million, a
$1,064 million positive inventory effect, restructuring charges related to
voluntary departures in France and Belgium and an impairment related to end of
the Qatargas 1 contract.
The effective tax rate for TotalEnergies was 34.4% in the first half 2021,
compared to 24.3% in the first half 2020.
1.5.3 Adjusted earnings per share
Adjusted fully-diluted earnings per share was $2.38 in the first half 2021,
calculated based on 2,644 million weighted-average diluted shares, compared to
$0.68 a year earlier.
As of June 30, 2021, the number of fully-diluted shares was 2,654 million.
1.5.4 Acquisitions – asset sales
Acquisitions were $2,870 million in the first half 2021 and included notably
the acquisition, for $2 billion, of a 20% interest in the renewable projects
developer in India, Adani Green Energy Limited, the 23% stake in a 640 MW
offshore wind project in Taiwan, the Fonroche Biogas in France and Repsol’s
interest in the Tin Fouyé Tabankort II field in Algeria.
Asset sales were $884 million in the first half 2021 and included notably the
sale in France of a 50% interest in a portfolio of renewable projects with a
total capacity of 285 MW (100%), the sale of the 10% interest in onshore block
OML 17 in Nigeria, a price supplement relating to the sale of Block CA1 in
Brunei, the sale of the Lindsey refinery in the United Kingdom, the sale of
TotalEnergies’ interest in the TBG pipeline in Brazil, the sale of shares in
Clean Energy Fuels Corp, and the sale of its interest in Tellurian Inc. in the
United States.
1.5.5 Net cash flow
TotalEnergies’ net cash flow((3)) was $4,551 million in the first half 2021
compared to $862 million a year earlier, which takes into account the $4.3
billion increase in operating cash flow before changes in working capital,
partially offset by a $620 million increase in net investments to $7,167
million in the first half 2021.
1.5.6 Profitability
The return on equity was 8.4% for the twelve months ended June 30, 2021.
In millions of dollars July 1, 2020 April 1, 2020 July 1, 2019
June 30, 2021
March 31, 2021 June 30, 2020
Adjusted net income 8,786 5,330 8,214
Average adjusted shareholders' equity 105,066 109,135 109,448
Return on equity (ROE) 8.4% 4.9% 7.5%
The return on average capital employed was 7.2% for the twelve months ended
June 30, 2021.
In millions of dollars July 1, 2020 April 1, 2020 July 1, 2019
June 30, 2021
March 31, 2021 June 30, 2020
Adjusted net operating income 10,252 6,915 10,125
Average capital employed 142,172 148,777 145,621
ROACE 7.2% 4.6% 7.0%
(1) Adjustment items shown on page ■.
(2) Details shown on page ■ and in the appendix to the financial statements
(3) Net cash flow = cash flow - net investments (including other transactions
with non-controlling interest).
1.6 TotalEnergies SE accounts
Net income for TotalEnergies SE, the parent company, was €4,568 million in
the first half 2021 compared to €4,710 in the first half 2020.
1.7 2021 Sensitivities*
Change Estimated Estimated
impact on adjusted net operating income
impact on
cash flow from operations
Dollar +/- 0,1 $ par € -/+ 0,1 G$ ~0 G$
Average liquids price** +/- 10 $/b +/- 2,7 G$ +/- 3,2 G$
European gas price – NBP +/- 1 $/Mbtu +/- 0,3 G$ +/- 0,25 G$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0,4 G$ +/- 0,5 G$
* 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 2021. 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 50 $/b Brent environment.
1.8 Summary and outlook
In a context of rebounding global demand for petroleum products, OPEC+ quotas
in the first half 2021 contributed to a rapid drawdown of crude oil
inventories, which fell below the average of the past five years. The price of
oil has remained above $60/b since the beginning of February 2021 and broke
through $70/b at the end of June. Recent OPEC+ decisions reinforce its
collective discipline to adapt supply step by step to the growth in demand.
Given the outlook for OPEC+ quotas in the second half 2021, TotalEnergies
anticipates its full-year 2021 hydrocarbon production to be around 2.85
Mboe/d. The start-up and ramp-up of new projects, including Zinia Phase 2 in
Angola, North Russkoye in Russia and Iara in Brazil, will contribute to
increased production in the second half 2021.
TotalEnergies anticipates that the higher oil prices observed in the first
half 2021 will have a positive impact on its average realized price of LNG for
the coming six months, given the lag effect on price formulas. It is expected
to be more than $7.5/Mbtu in the third quarter 2021. In addition, gas markets
in Asia and Europe are benefiting from the strong growth in demand linked to
the global economic recovery.
TotalEnergies maintains discipline on expenses, with net investments expected
to be between $12-13 billion in 2021, with half dedicated to future growth.
For those growth investments, 50% will be dedicated to renewables and
electricity.
In an environment of hydrocarbon prices that would remain in the second half
of the year at the level of the first half ($65/b for Brent, $8/Mbtu for gas
in Europe) and European refining margins of $10-15/t, TotalEnergies expects
cash flow generation (DACF) of more than $25 billion in 2021 and a return on
capital employed of more than 10%.
In this favorable context, the Company confirms its priorities in terms of
cash flow allocation: invest in profitable projects to implement
TotalEnergies’ transformation strategy to a broad energy company, support
the dividend through economic cycles, maintain a solid balance sheet and a
minimum “A” long-term debt rating by sustainably anchoring the Company’s
gearing below 20%, and share additional revenues with its shareholders through
share buybacks in the event of high prices.
1.9 Other information
1.9.1 Operating information by segment
1.9.1.1 Company’s production (Exploration & Production + iGRP)
Combined liquids and gas production by region (kboe/d) 1S21 1S20 1S21 vs 1S20
Europe and Central Asia 1,018 1,064 -4%
Africa 542 677 -20%
Middle East and North Africa 652 661 -1%
Americas 377 343 +10%
Asia-Pacific 216 220 -2%
Total production 2,805 2,966 -5%
includes equity affiliates 740 726 +2%
Liquids production by region (kb/d) 1S21 1S20 1S21 vs 1S20
Europe and Central Asia 363 392 -8%
Africa 407 534 -24%
Middle East and North Africa 500 505 -1%
Americas 181 153 +19%
Asia-Pacific 35 42 -17%
Total production 1,486 1,626 -9%
includes equity affiliates 207 207 –
Gas production by region (Mcf/d) 1S21 1S20 1S21 vs 1S20
Europe and Central Asia 3,523 3,620 -3%
Africa 686 726 -6%
Middle East and North Africa 845 865 -2%
Americas 1,098 1,069 +3%
Asia-Pacific 1,056 1,022 +3%
Total production 7,208 7,302 -1%
includes equity affiliates 2,875 2,802 +3%
1.9.1.2 Downstream (Refining & Chemicals and Marketing & Services)
Petroleum product sales by region (kb/d) 1S21 1S20 1S21 vs 1S20
Europe* 1,540 1,610 -4%
Africa 665 573 +16%
Americas 785 814 -3%
Rest of world 493 439 +12%
Total consolidated sales 3,483 3,435 +1%
includes bulk sales* 368 432 -15%
includes trading 1,658 1,525 +9%
Petrochemicals production* (kt) 1S21 1S20 1S21 vs 1S20
Europe 2,512 2,547 -1%
Americas 1,235 1,301 -5%
Middle East and Asia 1,459 1,324 +10%
* Olefins, polymers
1.9.1.3 Renewables
Installed power generation gross capacity 1S21
(GW)((1) (2))
Solar Onshore Wind Offshore Wind Other Total
France 0.5 0.5 0.0 0.1 1.0
Rest of Europe 0.1 1.0 0.0 0.1 1.1
Africa 0.1 0.0 0.0 0.0 0.1
Middle East 0.3 0.0 0.0 0.0 0.3
North America 0.8 0.0 0.0 0.0 0.9
South America 0.4 0.1 0.0 0.0 0.5
India 3.5 0.1 0.0 0.0 3.6
Asia-Pacific 0.7 0.0 0.0 0.0 0.7
Total 6.4 1.8 0.0 0.1 8.3
Power generation gross capacity from 1S21
renewables in construction (GW)((1) (2))
Solar Onshore Wind Offshore Wind Other Total
France 0.3 0.1 0.0 0.1 0.5
Rest of Europe 0.1 0.1 1.1 0.0 1.3
Africa 0.0 0.0 0.0 0.0 0.0
Middle East 0.8 0.0 0.0 0.0 0.8
North America 0.3 0.0 0.0 0.0 0.3
South America 0.0 0.2 0.0 0.0 0.2
India 0.9 0.2 0.0 0.0 1.1
Asia-Pacific 0.5 0.0 0.6 0.0 1.1
Total 2.8 0.6 1.8 0.1 5.4
(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first
quarter 2021.
(2) End-of-period data.
Power generation gross capacity from 1S21
renewables in development (GW)((1) (2))
Solar Onshore Wind Offshore Wind Other Total
France 3.2 0.8 0.0 0.0 4.0
Rest of Europe 5.3 0.3 2.3 0.0 7.9
Africa 0.4 0.1 0.0 0.2 0.6
Middle East 0.1 0.0 0.0 0.0 0.1
North America 3.5 0.2 0.0 0.7 4.3
South America 0.6 1.0 0.0 0.0 1.7
India 6.2 0.1 0.0 0.0 6.3
Asia-Pacific 1.1 0.0 2.1 0.0 3.2
Total 20.3 2.5 4.4 0.8 28.0
(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first
quarter 2021.
(2) End-of-period data.
Gross renewables capacity In operation In construction In development
covered by PPA at 06/30/2021
(GW)
Solar Onshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
Europe 0.6 1.5 X 2.2 0.3 X 0.8 X 1.4 4.0 0.3 X X 4.3
Asia 4.5 X X 4.6 2.2 0.3 0.6 – 3.1 3.9 X – – 4.0
North America 0.8 X X 0.8 0.3 X – X 0.3 0.3 X – X 0.4
Rest of World 0.5 X X 0.7 X X – X X 0.4 X – X 0.7
Total 6.3 1.8 X 8.2 2.8 0.6 1.4 X 5.0 8.6 0.5 X 0.2 9.3
PPA average price at 06/30/2021 In operation In construction In development
($/MWh)
Solar Onshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
Europe 239 120 X 154 68 X 61 X 64 42 73 X X 46
Asia 85 X X 84 47 56 187 – 77 40 X – – 40
North America 155 X X 158 26 X – X 31 31 X – X 49
Rest of World 82 X X 82 X X – X X 97 X – X 97
Total 107 112 X 108 48 66 106 X 70 43 79 X 145 45
1.9.2 Adjustment items to net income (TotalEnergies share)
In millions of dollars 1S21 1S20
Special items affecting net income (TotalEnergies share) (1,930) (8,655)
Gain (loss) on asset sales* (1,379) –
Restructuring charges (271) (100)
Impairments (193) (8,101)
Other (87) (454)
After-tax inventory effect: FIFO vs. replacement cost 1,064 (1,508)
Effect of changes in fair value (50) (79)
Total adjustments affecting net income (916) (10,242)
* Related to the effect of the sale of TotalEnergies’ participation in
Petrocedeño to PDVSA in Venezuela.
1.9.3 Reconciliation of adjusted EBITDA with consolidated financial statements
1.9.3.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
In millions of dollars 1S21 1S20 1S21 vs 1S20
Net income – TotalEnergies share 5,550 (8,335) ns
Less: adjustment items to net income (TotalEnergies share) 916 10,242 -91%
Adjusted net income – TotalEnergies share 6,466 1,907 x3.4
Adjusted items
Add: non-controlling interests 147 (13) ns
Add: income taxes 2,931 490 x6
Add: depreciation, depletion and impairment of tangible assets and mineral 6,285 6,937 -9%
interests
Add: amortization and impairment of intangible assets 197 155 +27%
Add: financial interest on debt 967 1,094 -12%
Less: financial income and expense from cash & cash equivalents (156) 13 ns
Adjusted EBITDA 16,837 10,583 +59%
1.9.3.2 Reconciliation of revenues from sales to adjusted EBITDA and net
income (TotalEnergies share)
In millions of dollars 1S21 1S20 1S21 vs 1S20
Adjusted items
Revenues from sales 80,310 60,155 +34%
Purchases, net of inventory variation (51,397) (37,949) ns
Other operating expenses (13,576) (12,985) ns
Exploration costs (290) (254) ns
Other income 554 820 -32%
Other expense, excluding amortization and impairment of intangible assets (137) (139) ns
Other financial income 374 607 -38%
Other financial expense (261) (341) ns
Net income (loss) from equity affiliates 1,260 669 +88%
Adjusted EBITDA 16,837 10,583 +59%
Adjusted items
Less: depreciation, depletion and impairment of tangible assets and mineral (6,285) (6,937) ns
interests
Less: amortization of intangible assets (197) (155) ns
Less: financial interest on debt (967) (1,094) ns
Add: financial income and expense from cash & cash equivalents 156 (13) ns
Less: income taxes (2,931) (490) ns
Less: non-controlling interests (147) 13 ns
Add: adjustment – TotalEnergies share (916) (10,242) ns
Net income – TotalEnergies share 5,550 (8,335) ns
1.9.4 Investments – Divestments
In millions of dollars 1S21 1S20 1S21 vs 1S20
Organic investments (a) 5,181 4,724 +10%
Capitalized exploration 488 297 +64%
Increase in non-current loans 672 1,012 -34%
Repayment of non-current loans, excluding organic loan repayment from equity (185) (175) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) (171) (152) ns
Acquisitions (b) 2,870 2,501 +15%
Asset sales (c) 884 678 +30%
Change in debt from renewable projects (partner share) 105 83 +27%
Other transactions with non-controlling interests (d) – – ns
Net investments (a + b - c - d) 7,167 6,547 +9%
Organic loan repayment from equity affiliates (e) (108) (34) ns
Change in debt from renewable projects financing* (f) 276 235 +17%
Capex linked to capitalized leasing contracts (g) 47 46 +2%
Cash flow used in investing activities (a + b - c + e + f - g) 7,288 6,702 +9%
* Change in debt from renewable projects (TotalEnergies share and partner
share).
1.9.5 Cash-flow
In millions of dollars 1S21 1S20 1S21 vs 1S20
Operating cash flow before working capital changes w/o financials charges 12,511 8,420 +49%
(DACF)
Financial charges (793) (1,011) ns
Operating cash flow before working capital changes (a)* 11,718 7,409 +58%
(Increase) decrease in working capital** 259 (698) ns
Inventory effect 1,346 (1,838) ns
Capital gain from renewable projects sale (66) (61) ns
Organic loan repayment from equity affiliates (108) (34) ns
Cash flow from operations 13,149 4,778 x2.8
Organic investments (b) 5,181 4,724 +10%
Free cash flow after organic investments, w/o net asset sales (a - b) 6,537 2,685 x2.4
Net investments (c) 7,167 6,547 +9%
Net cash flow (a - c) 4,551 862 x5.3
* 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.
1.9.6 Gearing ratio
In millions of dollars 30/06/2021 31/03/2021 30/06/2020
Current borrowings* 15,796 19,279 14,894
Other current financial liabilities 322 351 411
Current financial assets* (4,326) (4,492) (6,383)
Net financial assets classified as held for sale – – –
Non-current financial debt* 44,687 44,842 54,214
Non-current financial assets* (2,726) (2,669) (1,415)
Cash and cash equivalents (28,643) (30,285) (29,727)
Net debt (a) 25,109 27,026 31,994
Shareholders’ equity – TotalEnergies share 108,096 109,295 101,205
Non-controlling interests 2,480 2,390 2,334
Shareholders' equity (b) 110,576 111,685 103,539
Net-debt-to-capital ratio = a / (a + b) 18.5% 19.5% 23.6%
Leases (c) 7,702 7,747 7,383
Net-debt-to-capital ratio including leases (a + c) / (a + b + c) 22.9% 23.7% 27.6%
* Excludes leases receivables and leases debts.
1.9.7 Return on average capital employed
1.9.7.1 Twelve months ended June 30, 2021
In millions of dollars Integrated Gas, Renewables Exploration & Production Refining & Chemicals Marketing & Services Company
& Power
Adjusted net operating income 2,415 6,057 836 1,494 10,252
Capital employed at 06/30/2020* 43,527 79,096 12,843 8,366 142,625
Capital employed at 06/30/2021* 49,831 76,013 9,285 8,439 141,720
ROACE 5.2% 7.8% 7.6% 17.8% 7.2%
1.9.7.2
Twelve months ended March 31, 2021
In millions of dollars Integrated Gas, Renewables Exploration & Production Refining & Chemicals Marketing & Services Company
& Power
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).
1.10 Principal risks and uncertainties for the remaining six months of 2021
The Company and its businesses are subject to various risks relating to
changing political, economic, monetary, legal, environmental, social,
industrial, competitive, operating and financial conditions. A description of
such risk factors is provided in TotalEnergies’ 2021 Universal Registration
Document filed with the Autorité des marchés financiers (French Financial
Markets Authority) on March 31, 2021. These conditions are subject to change
not only in the six months remaining in the current financial year, but also
in the years to come.
Additionally, a description of certain risks is included in the Notes to the
condensed Consolidated Financial Statements for the first half of 2021 (page
of this half-year financial report).
1.11 Major related parties’ transactions
Information concerning the major related parties’ transactions for the first
six months of 2021 is provided in Note 6 to the condensed Consolidated
Financial Statements for the first half of 2021 (page of this half-year
financial report).
Disclaimer:
The entities in which TotalEnergies SE directly or indirectly owns a
shareholding are separate and independent legal entities. The terms
“TotalEnergies”, “TotalEnergies company” and “Company” used in
this document are generic and used for convenience to designate TotalEnergies
SE and the entities included in its scope of consolidation. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees.
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 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 its 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, 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.
02 CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021
2.1 Statutory Auditors’ Review Report on the half-yearly Financial
Information
This is a free translation into English of the statutory auditors’ review
report on the half-yearly financial information issued in French and is
provided solely for the convenience of English-speaking users. This report
includes information relating to the specific verification of information
given in TotalEnergies’ half-yearly management report. This report should be
read in conjunction with, and construed in accordance with, French law and
professional standards applicable in France.
For the period from January 1 to June 30, 2021
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual General
Meeting and in accordance with the requirements of article L. 451-1-2 III of
the French Monetary and Financial Code (“Code monétaire et financier”),
we hereby report to you on:
* the review of the accompanying condensed half-yearly consolidated financial
statements of TotalEnergies SE for the period from January 1 to June 30, 2021,
* the verification of the information presented in the half-yearly management
report.
Due to the global crisis related to the Covid-19 pandemic, the condensed
half-yearly consolidated financial statements have been prepared and reviewed
under specific conditions. Indeed, this crisis and the exceptional measures
taken in the context of the state of sanitary emergency have had numerous
consequences for companies, particularly on their operations and their
financing, and have led to greater uncertainties on their future prospects.
Those measures, such as travel restrictions and remote working, have also had
an impact on the companies’ internal organization and the performance of our
review procedures.
These condensed half-yearly consolidated financial statements were prepared
under the Chairman and Chief Executive Officer’s responsibility on July 28,
2021, and are reviewed by your Board of Directors. Our role is to express a
conclusion on these financial statements based on our review.
I – Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable
in France.
A review of interim financial information consists of making inquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with professional
standards applicable in France and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying condensed half-yearly consolidated financial
statements are not prepared, in all material respects, in accordance with IAS
34 - standard of the IFRSs as adopted by the European Union applicable to
interim financial information.
II – Specific verification
We have also verified the information presented in the half-yearly management
report on the condensed
half-yearly consolidated financial statements subject to our review. We have
no matters to report as to its fair presentation and consistency with the
condensed half-yearly consolidated financial statements.
Paris La Défense, July 28, 2021
The Statutory Auditors French original signed by
KPMG Audit – A division de KPMG S.A. ERNST & YOUNG Audit
Jacques-François Lethu Eric Jacquet Laurent Vitse Céline Eydieu-Boutté
Partner Partner Partner Partner
2.2 Consolidated statement of income – half-yearly
TotalEnergies
(unaudited)
(M$)((a)) 1st half 1st half
2021 2020
Sales 90,786 69,600
Excise taxes (10,520) (9,461)
Revenues from sales 80,266 60,139
Purchases, net of inventory variation (50,117) (40,093)
Other operating expenses (13,597) (13,265)
Exploration costs (290) (254)
Depreciation, depletion and impairment of tangible assets and mineral (6,446) (15,228)
interests
Other income 581 942
Other expense (957) (528)
Financial interest on debt (967) (1,099)
Financial income and expense from cash & cash equivalents 172 (105)
Cost of net debt (795) (1,204)
Other financial income 374 607
Other financial expense (261) (342)
Net income (loss) from equity affiliates 201 285
Income taxes (3,248) 521
Consolidated net income 5,711 (8,420)
TotalEnergies share 5,550 (8,335)
Non-controlling interests 161 (85)
Earnings per share ($) 2.04 (3.29)
Fully-diluted earnings per share ($) 2.03 (3.29)
(a) Except for per share amounts.
2.3 Consolidated statement of comprehensive income – half-yearly
TotalEnergies
(unaudited)
(M$) 1st half 1st half
2021 2020
Consolidated net income 5,711 (8,420)
Other comprehensive income
Actuarial gains and losses 449 (223)
Change in fair value of investments in equity instruments 68 (74)
Tax effect (154) 86
Currency translation adjustment generated by the parent company (2,934) (196)
Items not potentially reclassifiable to profit and loss (2,571) (407)
Currency translation adjustment 1,777 (940)
Cash flow hedge 80 (1,293)
Variation of foreign currency basis spread (4) 70
Share of other comprehensive income of equity affiliates, net amount 451 (927)
Other – 3
Tax effect (57) 367
Items potentially reclassifiable to profit and loss 2,247 (2,720)
Total other comprehensive income (net amount) (324) (3,127)
Comprehensive income 5,387 (11,547)
TotalEnergies share 5,212 (11,424)
Non-controlling interests 175 (123)
2.4 Consolidated statement of income – quarterly
TotalEnergies
(unaudited)
(M$)((a)) 2nd quarter 1st quarter 2nd quarter
2021 2021 2020
Sales 47,049 43,737 25,730
Excise taxes (5,416) (5,104) (4,168)
Revenues from sales 41,633 38,633 21,562
Purchases, net of inventory variation (26,719) (23,398) (12,025)
Other operating expenses (6,717) (6,880) (6,321)
Exploration costs (123) (167) (114)
Depreciation, depletion and impairment of tangible assets and mineral (3,121) (3,325) (11,593)
interests
Other income 223 358 362
Other expense (298) (659) (108)
Financial interest on debt (501) (466) (530)
Financial income and expense from cash & cash equivalents 77 95 50
Cost of net debt (424) (371) (480)
Other financial income 265 109 419
Other financial expense (131) (130) (161)
Net income (loss) from equity affiliates (680) 881 (447)
Income taxes (1,609) (1,639) 484
Consolidated net income 2,299 3,412 (8,422)
TotalEnergies share 2,206 3,344 (8,369)
Non-controlling interests 93 68 (53)
Earnings per share ($) 0.80 1.24 (3.27)
Fully-diluted earnings per share ($) 0.80 1.23 (3.27)
(a) Except for per share amounts.
2.5 Consolidated statement of comprehensive income – quarterly
TotalEnergies
(unaudited)
(M$) 2nd quarter 1st quarter 2nd quarter
2021 2021 2020
Consolidated net income 2,299 3,412 (8,422)
Other comprehensive income
Actuarial gains and losses 449 – (356)
Change in fair value of investments in equity instruments 56 12 90
Tax effect (142) (12) 101
Currency translation adjustment generated by the parent company 1,239 (4,173) 1,780
Items not potentially reclassifiable to profit and loss 1,602 (4,173) 1,615
Currency translation adjustment (746) 2,523 (919)
Cash flow hedge (424) 504 231
Variation of foreign currency basis spread (4) – 14
Share of other comprehensive income of equity affiliates, net amount (18) 469 296
Other (1) 1 –
Tax effect 100 (157) (78)
Items potentially reclassifiable to profit and loss (1,093) 3,340 (456)
Total other comprehensive income (net amount) 509 (833) 1,159
Comprehensive income 2,808 2,579 (7,263)
TotalEnergies share 2,670 2,542 (7,253)
Non-controlling interests 138 37 (10)
2.6 Consolidated balance sheet
TotalEnergies
(M$) June 30, 2021 March 31, 2021 December 31, June 30, 2020
2020
(unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,359 33,239 33,528 33,114
Property, plant and equipment, net 106,791 106,859 108,335 104,925
Equity affiliates: investments and loans 29,712 30,727 27,976 27,470
Other investments 2,247 2,062 2,007 1,627
Non-current financial assets 3,778 3,700 4,781 2,431
Deferred income taxes 6,578 6,619 7,016 7,257
Other non-current assets 2,800 2,638 2,810 2,539
Total non-current assets 185,265 185,844 186,453 179,363
Current assets 19,162 16,192 14,730 12,688
Inventories, net
Accounts receivable, net 17,192 17,532 14,068 13,481
Other current assets 17,585 14,304 13,428 17,155
Current financial assets 4,404 4,605 4,630 6,570
Cash and cash equivalents 28,643 30,285 31,268 29,727
Assets classified as held for sale 456 396 1,555 421
Total current assets 87,442 83,314 79,679 80,042
Total assets 272,707 269,158 266,132 259,405
LIABILITIES & SHAREHOLDERS’ EQUITY
Shareholders’ equity
Common shares 8,224 8,193 8,267 8,159
Paid-in surplus and retained earnings 110,967 112,676 107,078 107,934
Currency translation adjustment (11,087) (11,566) (10,256) (13,265)
Treasury shares (8) (8) (1,387) (1,623)
Total shareholders’ equity – TotalEnergies share 108,096 109,295 103,702 101,205
Non-controlling interests 2,480 2,390 2,383 2,334
Total shareholders’ equity 110,576 111,685 106,085 103,539
Non-current liabilities 10,596 10,387 10,326 10,346
Deferred income taxes
Employee benefits 3,305 3,644 3,917 3,612
Provisions and other non-current liabilities 20,716 20,893 20,925 19,487
Non-current financial debt 52,331 52,541 60,203 61,540
Total non-current liabilities 86,948 87,465 95,371 94,985
Current liabilities 29,752 26,959 23,574 19,198
Accounts payable
Other creditors and accrued liabilities 27,836 22,066 22,465 24,790
Current borrowings 16,983 20,471 17,099 16,154
Other current financial liabilities 322 351 203 411
Liabilities directly associated with the assets classified as held for sale 290 161 1,335 328
Total current liabilities 75,183 70,008 64,676 60,881
Total liabilities & shareholders’ equity 272,707 269,158 266,132 259,405
2.7 Consolidated statement of cash flow – half-yearly
TotalEnergies
(unaudited)
(M$) 1st half 1st half
2021 2020
CASH FLOW FROM OPERATING ACTIVITIES 5,711 (8,420)
Consolidated net income
Depreciation, depletion, amortization and impairment 6,760 15,431
Non-current liabilities, valuation allowances and deferred taxes 331 (1,457)
(Gains) losses on disposals of assets (370) (340)
Undistributed affiliates’ equity earnings 682 391
(Increase) decrease in working capital (150) (453)
Other changes, net 185 (374)
Cash flow from operating activities 13,149 4,778
CASH FLOW USED IN INVESTING ACTIVITIES (5,085) (4,773)
Intangible assets and property, plant and equipment additions
Acquisitions of subsidiaries, net of cash acquired (170) (188)
Investments in equity affiliates and other securities (2,433) (1,670)
Increase in non-current loans (680) (1,028)
Total expenditures (8,368) (7,659)
Proceeds from disposals of intangible assets and property, plant and equipment 271 263
Proceeds from disposals of subsidiaries, net of cash sold 229 154
Proceeds from disposals of non-current investments 279 315
Repayment of non-current loans 301 225
Total divestments 1,080 957
Cash flow used in investing activities (7,288) (6,702)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
Parent company shareholders 381 374
Treasury shares (165) (611)
Dividends paid:
Parent company shareholders (4,184) (3,810)
Non-controlling interests (63) (76)
Net issuance (repayment) of perpetual subordinated notes 3,248 –
Payments on perpetual subordinated notes (234) (231)
Other transactions with non-controlling interests (55) (70)
Net issuance (repayment) of non-current debt (839) 15,472
Increase (decrease) in current borrowings (6,031) (3,819)
Increase (decrease) in current financial assets and liabilities (215) (2,546)
Cash flow from (used in) financing activities (8,157) 4,683
Net increase (decrease) in cash and cash equivalents (2,296) 2,759
Effect of exchange rates (329) (384)
Cash and cash equivalents at the beginning of the period 31,268 27,352
Cash and cash equivalents at the end of the period 28,643 29,727
2.8 Consolidated statement of cash flow – quarterly
TotalEnergies
(unaudited)
(M$) 2nd quarter 1st quarter 2nd quarter
2021 2021 2020
CASH FLOW FROM OPERATING ACTIVITIES 2,299 3,412 (8,422)
Consolidated net income
Depreciation, depletion, amortization and impairment 3,287 3,473 11,701
Non-current liabilities, valuation allowances and deferred taxes 210 121 (796)
(Gains) losses on disposals of assets (85) (285) (131)
Undistributed affiliates’ equity earnings 1,255 (573) 978
(Increase) decrease in working capital 669 (819) 431
Other changes, net (84) 269 (282)
Cash flow from operating activities 7,551 5,598 3,479
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (2,675) (2,410) (2,409)
Acquisitions of subsidiaries, net of cash acquired (170) – –
Investments in equity affiliates and other securities (307) (2,126) (136)
Increase in non-current loans (380) (300) (733)
Total expenditures (3,532) (4,836) (3,278)
Proceeds from disposals of intangible assets and property, plant and equipment 45 226 219
Proceeds from disposals of subsidiaries, net of cash sold – 229 12
Proceeds from disposals of non-current investments 216 63 20
Repayment of non-current loans 167 134 99
Total divestments 428 652 350
Cash flow used in investing activities (3,104) (4,184) (2,928)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
Parent company shareholders 381 – 374
Treasury shares – (165) (2)
Dividends paid:
Parent company shareholders (2,094) (2,090) (1,928)
Non-controlling interests (53) (10) (76)
Net issuance (repayment) of perpetual subordinated notes – 3,248 –
Payments on perpetual subordinated notes (147) (87) (134)
Other transactions with non-controlling interests – (55) (22)
Net issuance (repayment) of non-current debt 51 (890) 15,430
Increase (decrease) in current borrowings (4,369) (1,662) (6,604)
Increase (decrease) in current financial assets and liabilities (67) (148) 449
Cash flow from (used in) financing activities (6,298) (1,859) 7,487
Net increase (decrease) in cash and cash equivalents (1,851) (445) 8,038
Effect of exchange rates 209 (538) 55
Cash and cash equivalents at the beginning of the period 30,285 31,268 21,634
Cash and cash equivalents at the end of the period 28,643 30,285 29,727
2.9 Consolidated statement of changes in shareholders’ equity
TotalEnergies
(unaudited)
(M$) Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders’ equity – TotalEnergies Share Non-controlling interests Total shareholders’ equity
Number Amount Number Amount
As of January 1, 2020 2,601,881,075 8,123 121,170 (11,503) (15,474,234) (1,012) 116,778 2,527 119,305
Net income of the first half 2020 – – (8,335) – – – (8,335) (85) (8,420)
Other comprehensive income – – (1,327) (1,762) – – (3,089) (38) (3,127)
Comprehensive Income – – (9,662) (1,762) – – (11,424) (123) (11,547)
Dividend – – (3,799) – – – (3,799) (76) (3,875)
Issuance of common shares 13,179,262 36 338 – – – 374 – 374
Purchase of treasury shares – – – – (13,236,044) (611) (611) – (611)
Sale of treasury shares((a)) – – – – 3,680 – – – –
Share-based payments – – 96 – – – 96 – 96
Share cancellation – – – – – – – – –
Net issuance (repayment) – – – – – – – – –
of perpetual subordinated notes
Payments on perpetual – – (143) – – – (143) – (143)
subordinated notes
Other operations with – – (63) – – – (63) (7) (70)
non-controlling interests
Other items – – (3) – – – (3) 13 10
As of June 30, 2020 2,615,060,337 8,159 107,934 (13,265) (28,706,598) (1,623) 101,205 2,334 103,539
Net income of the second half 2020 – – 1,093 – – – 1,093 (9) 1,084
Other comprehensive income – – 1,006 3,013 – – 4,019 338 4,357
Comprehensive Income – – 2,099 3,013 – – 5,112 329 5,441
Dividend – – (4,100) – – – (4,100) (158) (4,258)
Issuance of common shares 38,063,688 108 1,132 – – – 1,240 – 1,240
Purchase of treasury shares – – – – – – – – –
Sale of treasury shares((a)) – – (236) – 4,313,895 236 – – –
Share-based payments – – 92 – – – 92 – 92
Share cancellation – – – – – – – – –
Net issuance (repayment) – – 331 – – – 331 – 331
of perpetual subordinated notes
Payments on perpetual – – (165) – – – (165) – (165)
subordinated notes
Other operations with – – 2 (4) – – (2) (110) (112)
non-controlling interests
Other items – – (11) – – – (11) (12) (23)
As of December 31, 2020 2,653,124,025 8,267 107,078 (10,256) (24,392,703) (1,387) 103,702 2,383 106,085
Net income of the first half 2021 – – 5,550 – – – 5,550 161 5,711
Other comprehensive income – – 485 (823) – – (338) 14 (324)
Comprehensive Income – – 6,035 (823) – – 5,212 175 5,387
Dividend – – (4,189) – – – (4,189) (63) (4,252)
Issuance of common shares 10,589,713 31 350 – – – 381 – 381
Purchase of treasury shares – – – – (3,636,351) (165) (165) – (165)
Sale of treasury shares((a)) – – (216) – 4,570,220 216 – – –
Share-based payments – – 61 – – – 61 – 61
Share cancellation (23,284,409) (74) (1,254) – 23,284,409 1,328 – – –
Net issuance (repayment) – – 3,254 – – – 3,254 – 3,254
of perpetual subordinated notes
Payments on perpetual – – (184) – – – (184) – (184)
subordinated notes
Other operations with – – 26 (6) – – 20 (20) –
non-controlling interests
Other items – – 6 (2) – – 4 5 9
As of June 30, 2021 2,640,429,329 8,224 110,967 (11,087) (174,425) (8) 108,096 2,480 110,576
(a) Treasury shares related to the performance share grants.
2.10 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST SIX MONTHS
2021 (UNAUDITED)
1) Accounting policies
The consolidated financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union and IFRS as published by the International Accounting Standards Board
(IASB).
The interim consolidated financial statements of TotalEnergies SE and its
subsidiaries (the Company) as of June 30, 2021, are presented in U.S. dollars
and have been prepared in accordance with International Accounting Standard
(IAS) 34 “Interim Financial Reporting”.
The accounting principles applied for the consolidated financial statements at
June 30, 2021, are consistent with those used for the financial statements at
December 31, 2020. Since January 1, 2020, the Company has early adopted the
amendments to IFRS 7 and IFRS 9 relating to the interest rate benchmark reform
phase II. In particular, these amendments allow to maintain the hedge
accounting qualification of interest rate derivatives.
The preparation of financial statements in accordance with IFRS for the
closing as of June 30, 2021 requires the executive management to make
estimates, assumptions and judgments that affect the information reported in
the Consolidated Financial Statements and the Notes thereto.
These estimates, assumptions and judgments are based on historical experience
and other factors believed to be reasonable at the date of preparation of the
financial statements. They are reviewed on an on-going basis by management and
therefore could be revised as circumstances change or as a result of new
information.
The main estimates, judgments and assumptions relate to the estimation of
hydrocarbon reserves in application of the successful efforts method for the
oil and gas activities, asset impairments, employee benefits, asset retirement
obligations and income taxes. These estimates and assumptions are described in
the Notes to the Consolidated Financial Statements as of December 31, 2020.
Different estimates, assumptions and judgments could significantly affect the
information reported, and actual results may differ from the amounts included
in the Consolidated Financial Statements and the Notes thereto.
Furthermore, when the accounting treatment of a specific transaction is not
addressed by any accounting standard or interpretation, the management of the
Company applies its judgment to define and apply accounting policies that
provide information consistent with the general IFRS concepts: faithful
representation, relevance and materiality.
2) Changes in the Company structure
2.1) Main acquisitions and divestments
Integrated Gas, Renewables & Power
* In January 2021, TotalEnergies finalized the acquisition of a 20% minority
interest in Adani Green Energy Limited (AGEL) from Adani Group. Adani Green
Energy Limited (AGEL), a part of the Adani Group, has 14.6 GW of operating,
under-construction and awarded renewable power projects catering to
investment-grade counterparties.
Refining-Chemicals
* In February 2021, TotalEnergies finalized the sale of Lindsey refinery and its
associated logistic assets, as well as all the related rights and obligations,
to the Prax Group.
2.2) Divestment projects
Exploration-Production
* TotalEnergies has initiated the sale process of its 30.323% interest in the
share capital of Petrocedeño in Venezuela. As mentioned in Note 8 Subsequent
Events, this process led to the execution on July 9, 2021 of a Share Purchase
Agreement with PDVSA.
As of June 30, 2021, the assets have been classified as “assets classified
as held for sale” for a null value. These assets are the shares of
Petrocedeño, as consolidated under the equity method and recorded at their
sale price; this transaction triggering a loss of $1.38 billion in the
financial statements of TotalEnergies.
* On July 30, 2020, TotalEnergies announced that its 58% owned affiliate Total
Gabon has signed an agreement with Perenco to divest its interests in seven
mature non-operated offshore fields, along with its interests and operatorship
in the Cap Lopez oil terminal. The transaction remains subject to approval by
the Gabonese authorities.
As of June 30, 2021, the assets and liabilities have been respectively
classified in the consolidated balance sheet as “assets classified as held
for sale” for an amount of $398 million and “liabilities classified as
held for sale” for an amount of $169 million. These assets mainly include
tangible assets.
3) Business segment information
Description of the business segments
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 and which is reviewed
by the main operational decision-making body of the Company, namely the
Executive Committee.
The operational profit and assets are broken down by business segment prior to
the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The organization of the Company’s activities is structured around the four
followings segments:
* an Exploration & Production segment;
* an Integrated Gas, Renewables & Power segment comprising integrated gas
(including LNG) and low carbon electricity businesses. It includes the
upstream and midstream LNG activity;
* a Refining & Chemicals segment constituting a major industrial hub
comprising the activities of refining, petrochemicals and specialty chemicals.
This segment also includes the activities of oil Supply, Trading and marine
Shipping;
* a Marketing & Services segment including the global activities of supply
and marketing in the field of petroleum products.
In addition the Corporate segment includes holdings operating and financial
activities.
Adjustment items
Performance indicators excluding the adjustment items, such as adjusted
operating income, adjusted net operating income, and adjusted net income are
meant to facilitate the analysis of the financial performance and the
comparison of income between periods.
Adjustment items include:
1. 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 assets 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.
2. The 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 its 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 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 according to the FIFO
(First-In, First-Out) and the replacement cost methods.
3. Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for
certain transactions differences between the internal measure 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, which
future effects are recorded at fair value in the Company’s 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 and the effect of changes in fair value.
3.1) Information by business segment
1st half 2021 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
&
& Power
&
(M$)
Production &
Services
Chemicals
External sales 3,257 10,588 40,054 36,880 7 – 90,786
Intersegment sales 14,433 1,555 11,890 186 68 (28,132) –
Excise taxes – – (630) (9,890) – – (10,520)
Revenues from sales 17,690 12,143 51,314 27,176 75 (28,132) 80,266
Operating expenses (7,352) (10,321) (48,579) (25,510) (374) 28,132 (64,004)
Depreciation, depletion and impairment (4,317) (762) (787) (526) (54) – (6,446)
of tangible assets and mineral interests
Operating income 6,021 1,060 1,948 1,140 (353) – 9,816
Net income (loss) from equity affiliates (973) 682 211 23 (5) – (62)
and other items
Tax on net operating income (2,375) (157) (561) (352) 54 – (3,391)
Net operating income 2,673 1,585 1,598 811 (304) – 6,363
Net cost of net debt (652)
Non-controlling interests (161)
Net income – TotalEnergies share 5,550
1st half 2021 (adjustments)((a)) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
&
& Power
&
(M$)
Production &
Services
Chemicals
External sales – (44) – – – – (44)
Intersegment sales – – – – – – –
Excise taxes – – – – – – –
Revenues from sales – (44) – – – – (44)
Operating expenses (23) (62) 1,131 213 – – 1,259
Depreciation, depletion and impairment – (148) (13) – – – (161)
of tangible assets and mineral interests
Operating income((b)) (23) (254) 1,118 213 – – 1,054
Net income (loss) from equity affiliates (1,482) (96) 28 (43) (62) – (1,655)
and other items
Tax on net operating income (10) 59 (302) (60) 2 – (311)
Net operating income((b)) (1,515) (291) 844 110 (60) – (912)
Net cost of net debt 10
Non-controlling interests (14)
Net income – TotalEnergies share (916)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income – – 1,140 206 –
- On net operating income – – 937 148 –
1st half 2021 (adjusted) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 3,257 10,632 40,054 36,880 7 – 90,830
Intersegment sales 14,433 1,555 11,890 186 68 (28,132) –
Excise taxes – – (630) (9,890) – – (10,520)
Revenues from sales 17,690 12,187 51,314 27,176 75 (28,132) 80,310
Operating expenses (7,329) (10,259) (49,710) (25,723) (374) 28,132 (65,263)
Depreciation, depletion and impairment (4,317) (614) (774) (526) (54) – (6,285)
of tangible assets and mineral interests
Adjusted operating income 6,044 1,314 830 927 (353) – 8,762
Net income (loss) from equity affiliates 509 778 183 66 57 – 1,593
and other items
Tax on net operating income (2,365) (216) (259) (292) 52 – (3,080)
Adjusted net operating income 4,188 1,876 754 701 (244) – 7,275
Net cost of net debt (662)
Non-controlling interests (147)
Adjusted net income – TotalEnergies share 6,466
1st half 2021 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
&
& Power
&
(M$)
Production &
Services
Chemicals
Total expenditures 3,195 4,187 578 360 48 8,368
Total divestments 374 452 129 107 18 1,080
Cash flow from operating activities 8,571 1,347 3,228 1,102 (1,099) 13,149
1st half 2020 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
&
& Power
&
(M$)
Production &
Services
Chemicals
External sales 2,574 8,403 27,956 30,661 6 – 69,600
Intersegment sales 8,661 895 9,051 196 59 (18,862) –
Excise taxes – – (1,119) (8,342) – – (9,461)
Revenues from sales 11,235 9,298 35,888 22,515 65 (18,862) 60,139
Operating expenses (6,048) (8,398) (35,736) (21,730) (562) 18,862 (53,612)
Depreciation, depletion and impairment (12,311) (1,616) (788) (473) (40) – (15,228)
of tangible assets and mineral interests
Operating income (7,124) (716) (636) 312 (537) – (8,701)
Net income (loss) from equity affiliates 440 420 (92) 32 164 – 964
and other items
Tax on net operating income (56) 330 203 (159) 2 – 320
Net operating income (6,740) 34 (525) 185 (371) – (7,417)
Net cost of net debt (1,003)
Non-controlling interests 85
Net income – TotalEnergies share (8,335)
1st half 2020 (adjustments)((a)) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales – (16) – – – – (16)
Intersegment sales – – – – – – –
Excise taxes – – – – – – –
Revenues from sales – (16) – – – – (16)
Operating expenses (37) (318) (1,637) (341) (91) – (2,424)
Depreciation, depletion and impairment (7,338) (953) – – – – (8,291)
of tangible assets and mineral interests
Operating income((b)) (7,375) (1,287) (1,637) (341) (91) – (10,731)
Net income (loss) from equity affiliates 71 (292) (271) (5) – – (497)
and other items
Tax on net operating income 70 374 426 100 12 – 982
Net operating income((b)) (7,234) (1,205) (1,482) (246) (79) – (10,246)
Net cost of net debt (68)
Non-controlling interests 72
Net income – TotalEnergies share (10,242)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income – – (1,604) (234) –
- On net operating income – – (1,371) (163) –
1st half 2020 (adjusted) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 2,574 8,419 27,956 30,661 6 – 69,616
Intersegment sales 8,661 895 9,051 196 59 (18,862) –
Excise taxes – – (1,119) (8,342) – – (9,461)
Revenues from sales 11,235 9,314 35,888 22,515 65 (18,862) 60,155
Operating expenses (6,011) (8,080) (34,099) (21,389) (471) 18,862 (51,188)
Depreciation, depletion and impairment (4,973) (663) (788) (473) (40) – (6,937)
of tangible assets and mineral interests
Adjusted operating income 251 571 1,001 653 (446) – 2,030
Net income (loss) from equity affiliates 369 712 179 37 164 – 1,461
and other items
Tax on net operating income (126) (44) (223) (259) (10) – (662)
Adjusted net operating income 494 1,239 957 431 (292) – 2,829
Net cost of net debt (935)
Non-controlling interests 13
Adjusted net income – TotalEnergies share 1,907
1st half 2020 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
Total expenditures 3,265 3,461 533 334 66 7,659
Total divestments 325 433 101 72 26 957
Cash flow from operating activities 4,833 900 (103) 420 (1,272) 4,778
2nd quarter 2021 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 1,743 5,086 20,853 19,367 – – 47,049
Intersegment sales 7,855 744 6,369 108 39 (15,115) –
Excise taxes – – (225) (5,191) – – (5,416)
Revenues from sales 9,598 5,830 26,997 14,284 39 (15,115) 41,633
Operating expenses (4,284) (5,103) (25,646) (13,434) (207) 15,115 (33,559)
Depreciation, depletion and impairment (2,134) (291) (396) (271) (29) – (3,121)
of tangible assets and mineral interests
Operating income 3,180 436 955 579 (197) – 4,953
Net income (loss) from equity affiliates (1,243) 419 123 57 23 – (621)
and other items
Tax on net operating income (1,195) (56) (281) (176) 16 – (1,692)
Net operating income 742 799 797 460 (158) – 2,640
Net cost of net debt (341)
Non-controlling interests (93)
Net income – TotalEnergies share 2,206
2nd quarter 2021 (adjustments)((a) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
)
&
& Power
&
(M$)
Production &
Services
Chemicals
External sales – (9) – – – – (9)
Intersegment sales – – – – – – –
Excise taxes – – – – – – –
Revenues from sales – (9) – – – – (9)
Operating expenses (23) (54) 386 71 – – 380
Depreciation, depletion and impairment of tangible assets and mineral – (3) (13) – – – (16)
interests
Operating income((b)) (23) (66) 373 71 – – 355
Net income (loss) from equity affiliates and other items (1,436) (47) 22 (8) (22) – (1,491)
Tax on net operating income (12) 21 (109) (20) – – (120)
Net operating income((b)) (1,471) (92) 286 43 (22) – (1,256)
Net cost of net debt 4
Non-controlling interests (5)
Net income – TotalEnergies share (1,257)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income – – 394 69 –
- On net operating income – – 331 50 –
2nd quarter 2021 (adjusted) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 1,743 5,095 20,853 19,367 – – 47,058
Intersegment sales 7,855 744 6,369 108 39 (15,115) –
Excise taxes – – (225) (5,191) – – (5,416)
Revenues from sales 9,598 5,839 26,997 14,284 39 (15,115) 41,642
Operating expenses (4,261) (5,049) (26,032) (13,505) (207) 15,115 (33,939)
Depreciation, depletion and impairment (2,134) (288) (383) (271) (29) – (3,105)
of tangible assets and mineral interests
Adjusted operating income 3,203 502 582 508 (197) – 4,598
Net income (loss) from equity affiliates 193 466 101 65 45 – 870
and other items
Tax on net operating income (1,183) (77) (172) (156) 16 – (1,572)
Adjusted net operating income 2,213 891 511 417 (136) – 3,896
Net cost of net debt (345)
Non-controlling interests (88)
Adjusted net income – TotalEnergies share 3,463
2nd quarter 2021 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
Total expenditures 1,830 1,167 291 222 22 3,532
Total divestments 63 310 13 36 6 428
Cash flow from operating activities 4,835 567 2,232 437 (520) 7,551
2nd quarter 2020 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 992 3,313 9,433 11,986 6 – 25,730
Intersegment sales 3,097 301 2,956 107 31 (6,492) –
Excise taxes – – (469) (3,699) – – (4,168)
Revenues from sales 4,089 3,614 11,920 8,394 37 (6,492) 21,562
Operating expenses (2,405) (3,406) (10,895) (7,931) (315) 6,492 (18,460)
Depreciation, depletion and impairment (9,667) (1,282) (393) (229) (22) – (11,593)
of tangible assets and mineral interests
Operating income (7,983) (1,074) 632 234 (300) – (8,491)
Net income (loss) from equity affiliates 17 21 (35) 22 40 – 65
and other items
Tax on net operating income 398 322 (132) (127) (26) – 435
Net operating income (7,568) (731) 465 129 (286) – (7,991)
Net cost of net debt (431)
Non-controlling interests 53
Net income – TotalEnergies share (8,369)
2nd quarter 2020 (adjustments)((a) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
)
&
& Power
&
(M$)
Production &
Services
Chemicals
External sales – (18) – – – – (18)
Intersegment sales – – – – – – –
Excise taxes – – – – – – –
Revenues from sales – (18) – – – – (18)
Operating expenses (27) (199) (48) 5 (36) – (305)
Depreciation, depletion and impairment (7,338) (953) – – – – (8,291)
of tangible assets and mineral interests
Operating income((b)) (7,365) (1,170) (48) 5 (36) – (8,614)
Net income (loss) from equity affiliates (57) (217) (63) (5) – – (342)
and other items
Tax on net operating income 63 330 1 – 12 – 406
Net operating income((b)) (7,359) (1,057) (110) – (24) – (8,550)
Net cost of net debt 33
Non-controlling interests 22
Net income – TotalEnergies share (8,495)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income – – (26) (16) –
- On net operating income – – (86) (9) –
2nd quarter 2020 (adjusted) Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
External sales 992 3,331 9,433 11,986 6 – 25,748
Intersegment sales 3,097 301 2,956 107 31 (6,492) –
Excise taxes – – (469) (3,699) – – (4,168)
Revenues from sales 4,089 3,632 11,920 8,394 37 (6,492) 21,580
Operating expenses (2,378) (3,207) (10,847) (7,936) (279) 6,492 (18,155)
Depreciation, depletion and impairment (2,329) (329) (393) (229) (22) – (3,302)
of tangible assets and mineral interests
Adjusted operating income (618) 96 680 229 (264) – 123
Net income (loss) from equity affiliates 74 238 28 27 40 – 407
and other items
Tax on net operating income 335 (8) (133) (127) (38) – 29
Adjusted net operating income (209) 326 575 129 (262) – 559
Net cost of net debt (464)
Non-controlling interests 31
Adjusted net income – TotalEnergies share 126
2nd quarter 2020 Exploration Integrated Gas, Renewables Refining Marketing Corporate Intercompany Total
(M$)
&
& Power
&
Production &
Services
Chemicals
Total expenditures 1,606 1,170 307 174 21 3,278
Total divestments 204 89 22 26 9 350
Cash flow from operating activities 910 1,389 1,080 819 (719) 3,479
3.2) Reconciliation of the information by business segment with consolidated
financial statements
1st half 2021 Adjusted Adjustments((a)) Consolidated
(M$)
statement
of income
Sales 90,830 (44) 90,786
Excise taxes (10,520) – (10,520)
Revenues from sales 80,310 (44) 80,266
Purchases net of inventory variation (51,397) 1,280 (50,117)
Other operating expenses (13,576) (21) (13,597)
Exploration costs (290) – (290)
Depreciation, depletion and impairment of tangible assets and mineral (6,285) (161) (6,446)
interests
Other income 554 27 581
Other expense (334) (623) (957)
Financial interest on debt (967) – (967)
Financial income and expense from cash & cash equivalents 156 16 172
Cost of net debt (811) 16 (795)
Other financial income 374 – 374
Other financial expense (261) – (261)
Net income (loss) from equity affiliates 1,260 (1,059) 201
Income taxes (2,931) (317) (3,248)
Consolidated net income 6,613 (902) 5,711
TotalEnergies share 6,466 (916) 5,550
Non-controlling interests 147 14 161
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
1st half 2020 Adjusted Adjustments((a)) Consolidated
(M$)
statement
of income
Sales 69,616 (16) 69,600
Excise taxes (9,461) – (9,461)
Revenues from sales 60,155 (16) 60,139
Purchases net of inventory variation (37,949) (2,144) (40,093)
Other operating expenses (12,985) (280) (13,265)
Exploration costs (254) – (254)
Depreciation, depletion and impairment of tangible assets and mineral (6,937) (8,291) (15,228)
interests
Other income 820 122 942
Other expense (294) (234) (528)
Financial interest on debt (1,094) (5) (1,099)
Financial income and expense from cash & cash equivalents (13) (92) (105)
Cost of net debt (1,107) (97) (1,204)
Other financial income 607 – 607
Other financial expense (341) (1) (342)
Net income (loss) from equity affiliates 669 (384) 285
Income taxes (490) 1,011 521
Consolidated net income 1,894 (10,314) (8,420)
TotalEnergies share 1,907 (10,242) (8,335)
Non-controlling interests (13) (72) (85)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
2nd quarter 2021 Adjusted Adjustments((a)) Consolidated
(M$)
statement
of income
Sales 47,058 (9) 47,049
Excise taxes (5,416) – (5,416)
Revenues from sales 41,642 (9) 41,633
Purchases net of inventory variation (27,108) 389 (26,719)
Other operating expenses (6,708) (9) (6,717)
Exploration costs (123) – (123)
Depreciation, depletion and impairment of tangible assets and mineral (3,105) (16) (3,121)
interests
Other income 138 85 223
Other expense (142) (156) (298)
Financial interest on debt (501) – (501)
Financial income and expense from cash & cash equivalents 69 8 77
Cost of net debt (432) 8 (424)
Other financial income 265 – 265
Other financial expense (131) – (131)
Net income (loss) from equity affiliates 740 (1,420) (680)
Income taxes (1,485) (124) (1,609)
Consolidated net income 3,551 (1,252) 2,299
TotalEnergies share 3,463 (1,257) 2,206
Non-controlling interests 88 5 93
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
2nd quarter 2020 Adjusted Adjustments((a)) Consolidated
(M$)
statement
of income
Sales 25,748 (18) 25,730
Excise taxes (4,168) – (4,168)
Revenues from sales 21,580 (18) 21,562
Purchases net of inventory variation (11,842) (183) (12,025)
Other operating expenses (6,199) (122) (6,321)
Exploration costs (114) – (114)
Depreciation, depletion and impairment of tangible assets and mineral (3,302) (8,291) (11,593)
interests
Other income 240 122 362
Other expense (103) (5) (108)
Financial interest on debt (527) (3) (530)
Financial income and expense from cash & cash equivalents (3) 53 50
Cost of net debt (530) 50 (480)
Other financial income 419 – 419
Other financial expense (160) (1) (161)
Net income (loss) from equity affiliates 11 (458) (447)
Income taxes 95 389 484
Consolidated net income 95 (8,517) (8,422)
TotalEnergies share 126 (8,495) (8,369)
Non-controlling interests (31) (22) (53)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
3.3) Adjustment items
The detail of the adjustment items is presented in the table below.
Adjustments to operating income
(M$) Exploration Integrated Gas, Refining Marketing Corporate Total
& Renewables & &
Production & Power Chemicals Services
2nd quarter 2021 Inventory valuation effect – – 394 69 – 463
Effect of changes in fair value – (49) – – – (49)
Restructuring charges – (1) (8) – – (9)
Asset impairment charges – (3) (13) – – (16)
Other items (23) (13) – 2 – (34)
TOTAL (23) (66) 373 71 – 355
2nd quarter 2020 Inventory valuation effect – – (26) (16) – (42)
Effect of changes in fair value – (100) – – – (100)
Restructuring charges – (10) (7) – – (17)
Asset impairment charges (7,338) (953) – – – (8,291)
Other items (27) (107) (15) 21 (36) (164)
TOTAL (7,365) (1,170) (48) 5 (36) (8,614)
1st half 2021 Inventory valuation effect – – 1,140 206 – 1,346
Effect of changes in fair value – (58) – – – (58)
Restructuring charges – (10) (8) – – (18)
Asset impairment charges – (148) (13) – – (161)
Other items (23) (38) (1) 7 – (55)
TOTAL (23) (254) 1,118 213 – 1,054
1st half 2020 Inventory valuation effect – – (1,604) (234) – (1,838)
Effect of changes in fair value – (98) – – – (98)
Restructuring charges (10) (18) (7) – – (35)
Asset impairment charges (7,338) (953) – – – (8,291)
Other items (27) (218) (26) (107) (91) (469)
TOTAL (7,375) (1,287) (1,637) (341) (91) (10,731)
Adjustments to net income, TotalEnergies share
(M$) Exploration Integrated Gas, Refining Marketing Corporate Total
& Renewables & &
Production & Power Chemicals Services
2nd quarter 2021 Inventory valuation effect – – 327 48 – 375
Effect of changes in fair value – (44) – – – (44)
Restructuring charges (44) (4) (32) (8) (22) (110)
Asset impairment charges – (36) (13) – – (49)
Gains (losses) on disposals of assets (1,379)* – – – – (1,379)
Other items (44) (7) – 1 – (50)
TOTAL (1,467) (91) 282 41 (22) (1,257)
* Impact of the TotalEnergies’ interest sale of Petrocedeño to PDVSA.
2nd quarter 2020 Inventory valuation effect – – (83) (11) – (94)
Effect of changes in fair value – (80) – – – (80)
Restructuring charges – (10) (10) – – (20)
Asset impairment charges (7,272) (829) – – – (8,101)
Gains (losses) on disposals of assets – – – – – –
Other items (77) (131) (14) 10 12 (200)
TOTAL (7,349) (1,050) (107) (1) 12 (8,495)
1st half 2021 Inventory valuation effect – – 926 138 – 1,064
Effect of changes in fair value – (50) – – – (50)
Restructuring charges (85) (12) (71) (43) (60) (271)
Asset impairment charges – (180) (13) – – (193)
Gains (losses) on disposals of assets (1,379)* – – – – (1,379)
Other items (41) (42) (9) 5 – (87)
TOTAL (1,505) (284) 833 100 (60) (916)
* Impact of the TotalEnergies’ interest sale of Petrocedeño to PDVSA.
1st half 2020 Inventory valuation effect – – (1,364) (144) – (1,508)
Effect of changes in fair value – (79) – – – (79)
Restructuring charges (3) (22) (75) – – (100)
Asset impairment charges (7,272) (829) – – – (8,101)
Gains (losses) on disposals of assets – – – – – –
Other items 51 (256) (36) (71) (142) (454)
TOTAL (7,224) (1,186) (1,475) (215) (142) (10,242)
4) Shareholders’ equity
Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)
Shares to be allocated as part of performance share grant plans
including the 2019 Plan 99,750
including other Plans 74,675
Total Treasury shares 174,425
Dividend
The Shareholders’ meeting of May 28, 2021 approved the distribution of a
dividend of €2.64 per share for the 2020 fiscal year and the payment of a
final dividend of €0.66 per share given the three interim dividends that had
already been paid. The dividend for the fiscal year 2020 was paid according to
the following timetable:
Dividend 2020 First interim Second interim Third interim Final
Amount €0.66 €0.66 €0.66 €0.66
Set date May 4, 2020 July 29, 2020 October 29, 2020 May 28, 2021
Ex-dividend date September 25, 2020 January 4, 2021 March 25, 2021 June 24, 2021
Payment date October 2, 2020 January 11, 2021 April 1, 2021 July 1, 2021
Furthermore, on July 28, 2021 the Board of Directors decided to set the second
interim dividend for the fiscal year 2021 at €0.66 per share, equal to the
first interim dividend. This second interim dividend will be paid in cash on
January 13, 2022 (the ex-dividend date will be January 3, 2022).
Dividend 2021 First interim Second interim
Amount €0.66 €0.66
Set date April 28, 2021 July 28, 2021
Ex-dividend date September 21, 2021 January 3, 2022
Payment date October 1, 2021 January 13, 2022
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S.
dollars converted at the average Euro/USD exchange rate for the period,
amounted to €0.66 per share for the 2nd quarter 2021 (€1.03 per share for
the 1(st) quarter 2021 and €(2.98) per share for the 2nd quarter 2020).
Diluted earnings per share calculated using the same method amounted to
€0.66 per share for the 2nd quarter 2021 (€1.02 per share for the 1(st)
quarter 2021 and €(2.98) per share for the 2nd quarter 2020).
Earnings per share are calculated after remuneration of perpetual subordinated
notes.
Perpetual subordinated notes
The Company issued perpetual subordinated notes in January 2021:
* Perpetual subordinated notes 1.625% callable in January 2028, or in
anticipation in October 2027 (EUR 1,500 million); and
* Perpetual subordinated notes 2.125% callable in January 2033, or in
anticipation in July 2032 (EUR 1,500 million).
Following the two tender operations on perpetual subordinated notes 2.250%
callable from February 2021 (carried out in April 2019 and September 2020 for
EUR 1,500 million and EUR 703 million respectively), TotalEnergies SE fully
reimbursed the residual nominal amount of this note at its first call date for
an amount of EUR 297 million on February 26, 2021.
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
(M$) 1st half 2021 1st half 2020
Actuarial gains and losses 449 (223)
Change in fair value of investments in equity instruments 68 (74)
Tax effect (154) 86
Currency translation adjustment generated by the parent company (2,934) (196)
Sub-total items not potentially reclassifiable to profit and loss (2,571) (407)
Currency translation adjustment 1,777 (940)
Unrealized gain/(loss) of the period 1,898 (907)
Less gain/(loss) included in net income 121 33
Cash flow hedge 80 (1,293)
Unrealized gain/(loss) of the period (56) (1,317)
Less gain/(loss) included in net income (136) (24)
Variation of foreign currency basis spread (4) 70
Unrealized gain/(loss) of the period (29) 42
Less gain/(loss) included in net income (25) (28)
Share of other comprehensive income of equity affiliates, net amount 451 (927)
Unrealized gain/(loss) of the period 449 (936)
Less gain/(loss) included in net income (2) (9)
Other – 3
Tax effect (57) 367
Sub-total items potentially reclassifiable to profit and loss 2,247 (2,720)
Total other comprehensive income, net amount (324) (3,127)
Tax effects relating to each component of other comprehensive income are as
follows:
1st half 2021 1st half 2020
(M$) Pre-tax amount Tax effect Net amount Pre-tax amount Tax effect Net amount
Actuarial gains and losses 449 (141) 308 (223) 56 (167)
Change in fair value of investments 68 (13) 55 (74) 30 (44)
in equity instruments
Currency translation adjustment (2,934) – (2,934) (196) – (196)
generated by the parent company
Sub-total items not potentially reclassifiable to profit and loss (2,417) (154) (2,571) (493) 86 (407)
Currency translation adjustment 1,777 – 1,777 (940) – (940)
Cash flow hedge 80 (55) 25 (1,293) 389 (904)
Variation of foreign currency basis spread (4) (2) (6) 70 (22) 48
Share of other comprehensive income 451 – 451 (927) – (927)
of equity affiliates, net amount
Other – – – 3 – 3
Sub-total items potentially reclassifiable to profit and loss 2,304 (57) 2,247 (3,087) 367 (2,720)
Total other comprehensive income (113) (211) (324) (3,580) 453 (3,127)
5) Financial debt
The Company has not issued any new senior bond during the first six months of
2021.
The Company reimbursed two senior bonds during the first six months of 2021:
* Bond 4.125% issued in 2011 and maturing in January 2021 (USD 500 million)
* Bond 2.750% issued in 2014 and maturing in June 2021 (USD 1,000 million).
On April 2, 2020, the Company put in place a committed syndicated credit line
with banking counterparties for an initial amount of USD 6,350 million and
with a 12-month tenor (with the option to extend its maturity twice by a
further 6 months at TotalEnergies’ hand).
On April 1, 2021, the Company reimbursed in full the balance of this committed
syndicated credit line for an amount of USD 2,646 million.
6) Related parties
The related parties are mainly equity affiliates and non-consolidated
investments.
There were no major changes concerning transactions with related parties
during the first six months of 2021.
7) Other risks and contingent liabilities
TotalEnergies is not currently aware of any exceptional event, dispute, risks
or contingent liabilities that could have a material impact on the assets and
liabilities, results, financial position or operations of the TotalEnergies,
other than those mentioned below.
Yemen
In Yemen, the deterioration of security conditions in the vicinity of the
Balhaf site caused the company Yemen LNG, in which TotalEnergies holds a stake
of 39.62%, to stop its commercial production and export of LNG and to declare
force majeure to its various stakeholders in 2015. The plant has been put in
preservation mode.
Mozambique
Considering the evolution of the security situation in the north of the Cabo
Delgado province in Mozambique, TotalEnergies has confirmed on April 26, 2021
the withdrawal of all Mozambique LNG project personnel from the Afungi site.
This situation led TotalEnergies, as operator of Mozambique LNG project, to
declare force majeure.
8) Subsequent events
On July 9, 2021, TotalEnergies executed a Share Purchase Agreement with PDVSA
for the sale of its 30.323% interest in the share capital of Petrocedeño in
Venezuela.
The contractual conditions necessary to close this transaction are the
approval of the Venezuelan Ministry of Petroleum (MINPET) and the approval of
the Board of Directors of TotalEnergies SE.
The Board of Directors of TotalEnergies SE approved this transaction on July
28, 2021.
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