REG-TotalEnergies SE Half-year Report
26/07/2024 14:00
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Half-year Report
TOTALENERGIES
Financial report
First half 2024
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 2024 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 5 to 34 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 36 of this
half-year financial report.”
Courbevoie, July 25, 2024
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
ATEX: explosive atmosphere
CCS: carbon capture and storage
CCUS: carbon capture utilization and storage (refer to the definition of carbon
capture and storage below)
CNG: compressed natural gas
CO2: carbon dioxide
CO2e: equivalent CO2
CSR: corporate and social responsibility
DACF: debt adjusted cash flow (refer to the definition of operating cash flow before
working capital changes without financial charges below)
ESG: Environment, Social and Governance
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
IEA (SDS): International Energy Agency (Sustainable Development Scenario)
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 (refer to the definition below)
ROACE: return on average capital employed
ROE: return on equity
SDG: Sustainable development goal
SEC: United States Securities and Exchange Commission
TCFD: task force on climate-related financial disclosures
WHRS: Worldwide Human Resources Survey
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
/d = per day
Gt CO2 = billion of CO2 tons
GW = gigawatt
GWac = AC gigawatt
GWh = gigawatt hour
k = thousand
km = kilometer
m = meter
m³ = cubic meter(1)
M = million
Mtpa = million ton per annum
MW = megawatt
PJ = petajoule
t = (Metric) ton
toe= ton of oil equivalent
TWh = terawatt hour
W = watt
Wac = AC (alternating current) watt
Wp = watt-peak or watt of peak power
/y = per year
CONVERSION TABLE
1 acre ≈ 0.405 hectares
1 b = 42 US gallons ≈ 159 liters
1 b/d of crude oil ≈ 50 t/y of crude oil
1 Bcm/y ≈ 0.1 Bcf/d
1 km ≈ 0.62 miles
1 m³ ≈ 35.3 cf
1 Mt of 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 ≈ 5,419 cf of gas in 2023(2) (5,387 cf in 2022 and 5,378 cf in 2021)
Acquisitions net of assets sales is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow used in investing activities.
Acquisitions net of assets sales refer to acquisitions minus assets sales
(including other operations with non-controlling interests). This indicator
can be a valuable tool for decision makers, analysts and shareholders alike
because it illustrates the allocation of cash flow used for growing the
Company’s asset base via external growth opportunities.
Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)
is a non-GAAP financial measure and its most directly comparable IFRS measure
is Net Income. It refers to the adjusted earnings before depreciation,
depletion and impairment of tangible and intangible assets and mineral
interests, income tax expense and cost of net debt, i.e., all operating income
and contribution of equity affiliates to net income. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to measure
and compare the Company’s profitability with utility companies (energy
sector).
Adjusted net income (TotalEnergies share) is a non-GAAP financial measure and
its most directly comparable IFRS measure is Net Income (TotalEnergies share).
Adjusted Net Income (TotalEnergies share) refers to Net Income (TotalEnergies
share) less adjustment items to Net Income (TotalEnergies share). Adjustment
items are inventory valuation effect, effect of changes in fair value, and
special items. This indicator can be a valuable tool for decision makers,
analysts and shareholders alike to evaluate the Company’s operating results
and to understand its operating trends by removing the impact of
non-operational results and special items.
Adjusted net operating income is a non-GAAP financial measure and its most
directly comparable IFRS measure is Net Income. Adjusted Net Operating Income
refers to Net Income before net cost of net debt, i.e., cost of net debt net
of its tax effects, less adjustment items. Adjustment items are inventory
valuation effect, effect of changes in fair value, and special items. Adjusted
Net Operating Income can be a valuable tool for decision makers, analysts and
shareholders alike to evaluate the Company’s operating results and
understanding its operating trends, by removing the impact of non-operational
results and special items and is used to evaluate the Return on Average
Capital Employed (ROACE) as explained below.
Capital Employed is a non-GAAP financial measure. They are calculated at
replacement cost and refer to capital employed (balance sheet) less inventory
valuations effect. Capital employed (balance sheet) refers to the sum of the
following items: (i) Property, plant and equipment, intangible assets, net,
(ii) Investments & loans in equity affiliates, (iii) Other non-current
assets, (iv) Working capital which is the sum of: Inventories, net, Accounts
receivable, net, other current assets, Accounts payable, Other creditors and
accrued liabilities(v) Provisions and other non-current liabilities and (vi)
Assets and liabilities classified as held for sale. Capital Employed can be a
valuable tool for decision makers, analysts and shareholders alike to provide
insight on the amount of capital investment used by the Company or its
business segments to operate. Capital Employed is used to calculate the Return
on Average Capital Employed (ROACE).
Cash Flow From Operations excluding working capital (CFFO) is a non-GAAP
financial measure and its most directly comparable IFRS measure is Cash flow
from operating activities. Cash Flow From Operations excluding working capital
is defined as cash flow from operating activities before changes in working
capital at replacement cost, excluding the mark-to-market effect of Integrated
LNG and Integrated Power contracts, including capital gain from renewable
projects sales and including organic loan repayments from equity affiliates.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to help understand changes in cash flow from operating
activities, excluding the impact of working capital changes across periods on
a consistent basis and with the performance of peer companies in a manner
that, when viewed in combination with the Company’s results prepared in
accordance with GAAP, provides a more complete understanding of the factors
and trends affecting the Company’s business and performance. This
performance indicator is used by the Company as a base for its cash flow
allocation and notably to guide on the share of its cash flow to be allocated
to the distribution to shareholders.
Debt adjusted cash flow (DACF) is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow from operating activities. DACF
is defined as Cash Flow From Operations excluding working capital (CFFO)
without financial charges. This indicator can be a valuable tool for decision
makers, analysts and shareholders alike because it corresponds to the funds
theoretically available to the Company for investments, debt repayment and
distribution to shareholders, and therefore facilitates comparison of the
Company’s results of operations with those of other registrants, independent
of their capital structure and working capital requirements.
Free cash flow after Organic Investments is a non-GAAP financial measure and
its most directly comparable IFRS measure is Cash flow from operating
activities. Free cash flow after Organic Investments, refers to Cash Flow From
Operations excluding working capital minus Organic Investments. Organic
Investments refer to Net Investments excluding acquisitions, asset sales and
other transactions with non-controlling interests. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates operating cash flow generated by the business post allocation of
cash for Organic Investments.
Gearing is a non-GAAP financial measure and its most directly comparable IFRS
measure is the ratio of total financial liabilities to total equity. Gearing
is a Net-debt-to-capital ratio, which is calculated as the ratio of Net debt
excluding leases to (Equity + Net debt excluding leases). This indicator can
be a valuable tool for decision makers, analysts and shareholders alike to
assess the strength of the Company’s balance sheet.
Net cash flow is a non-GAAP financial measure and its most directly comparable
IFRS measure is Cash flow from operating activities. Net cash flow refers to
Cash Flow From Operations excluding working capital minus Net Investments. Net
cash flow can be a valuable tool for decision makers, analysts and
shareholders alike because it illustrates cash flow generated by the
operations of the Company post allocation of cash for Organic Investments and
Acquisitions net of assets sales (acquisitions - assets sales - other
operations with non-controlling interests). This performance indicator
corresponds to the cash flow available to repay debt and allocate cash to
shareholder distribution or share buybacks.
Net investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Net
Investments refer to Cash flow used in investing activities including other
transactions with non-controlling interests, including change in debt from
renewable projects financing, including expenditures related to carbon
credits, including capex linked to capitalized leasing contracts and excluding
organic loan repayment from equity affiliates. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to
illustrate the cash directed to growth opportunities, both internal and
external, thereby showing, when combined with the Company’s cash flow
statement prepared under IFRS, how cash is generated and allocated for uses
within the organization. Net Investments are the sum of Organic Investments
and Acquisitions net of assets sales each of which is described in the
Glossary.
Organic investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Organic
investments refers to Net Investments, excluding acquisitions, asset sales and
other operations with non-controlling interests. Organic Investments can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates cash flow used by the Company to grow its asset base, excluding
sources of external growth.
Payout is a non-GAAP financial measure. Payout is defined as the ratio of the
dividends and share buybacks for cancellation to the Cash Flow From Operations
excluding working capital. This indicator can be a valuable tool for decision
makers, analysts and shareholders as it provides the portion of the Cash Flow
From Operations excluding working capital distributed to the shareholder.
Return on Average Capital Employed (ROACE) is a non-GAAP financial measure.
ROACE is the ratio of Adjusted Net Operating Income to average Capital
Employed at replacement cost between the beginning and the end of the period.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to measure the profitability of the Company’s average
Capital Employed in its business operations and is used by the Company to
benchmark its performance internally and externally with its peers.
1. Half year financial report
1.1 Highlights since the beginning of 2024(1)
* 100th anniversary of TotalEnergies on March 28, 2024, and launch of the “100
for 100” operation:
* 100 TotalEnergies free shares allocation plan to the 100,000 employees of
the
Company*
* €100 offer to the first new 100,000 electricity customers and to 100,000
individual gas station customers in France subject to conditions
Social and environmental responsibility
* Publication of the Sustainability & Climate – 2024 Progress Report
presenting the progress made by the Company in 2023 in the implementation of
its strategy and its climate ambition
* TotalEnergies ranks #1 in the Net Zero Standard for Oil & Gas benchmark
published by Climate Action 100+
* Launch of Care Together by TotalEnergies program, reflecting the Company’s
commitment to social responsibility towards its employees
* Continuation of the €1.99/L gas price cap in France
* Launch of the 2024 annual share capital increase reserved for employees,
TotalEnergies ranking #1 in employee share ownership in Europe according to
the European Federation of Employee Share Ownership
* Deployment of a generative artificial intelligence tool for all
TotalEnergies’ employees
* Ambition of giving access to clean cooking to 100 million people in Africa and
India by 2030, announced at the Clean Cooking Summit organized by the IEA in
Paris
* Partnership with SLB on digital innovation and solarization, for a more
sustainable energy
Upstream
* Production start-up of the second phase of the Mero field in Brazil
* Production start-up from the Akpo West field in Nigeria
* Gas production restart at the Tyra offshore hub in Denmark after a major
redevelopment
* Agreements with OMV and Sapura Upstream Assets to acquire 100% of SapuraOMV
shares, an independent gas producer and operator, in Malaysia
* Acquisition of an interest in block 3B/4B, offshore South Africa
* Positive appraisal of the Cronos gas discovery in block 6, in Cyprus
* Expansion of the partnership with Sonatrach in the Timimoun region in Algeria
* Creation of a joint venture with Vantage (75%/25%) to acquire the Tungsten
Explorer drillship
* Launch of an innovative subsea technology to separate and reinject CO2-rich
gas at the Mero field in Brazil
* Production start-up of Eldfisk North and Kristin South in Norway
* Launch of Kaminho, a 70,000 b/d oil project in the Kwanza basin, in Angola
* Launch of Sépia 2 and Atapu 2, two 225,000 b/d oil projects in Brazil
* Agreement on field development areas and securing of the FPSO hull in Block 58
in Suriname, key milestones toward a Final Investment Decision that is
expected in the second half of 2024
* Agreement with Trident Energy for the acquisition of an additional 10%
interest in the Moho field and disposal of Nkossa in Congo
* Agreement with Chappal Energies for the divestment from the 10% interest in
the SPDC JV in Nigeria, while retaining gas economical interest to ensure NLNG
gas supply
* Agreement with Hibiscus Petroleum Berhad for the divestment of the subsidiary
in Brunei
* Agreement with The Prax Group for the divestment from the West of Shetland gas
assets in the United Kingdom
* Acquisition of an interest in an offshore exploration block, in Sao Tome and
Principe
Downstream
* Closing of the divestment of retail networks in Belgium, Luxemburg and the
Netherlands to Couche-Tard
* Partnership with Bapco Energies in Bahrain in petroleum products trading
* Strategic partnership with Airbus in Sustainable Aviation Fuels (SAF)
* Partnership with SINOPEC to jointly develop a SAF production unit at
SINOPEC’s refinery in China
* Acquisition of Tecoil, a lubricant used oil regeneration specialist based in
Finland
Integrated LNG
* Launch of the 1 Mt/y Marsa LNG project, which is a fully electrified and very
low emissions (3 kg CO2/boe) LNG plant in Oman, supplied by a 300 MW solar
farm
* Acquisition of the 20% interest held by Lewis Energy Group in the Dorado
leases in the Eagle Ford shale gas play in Texas
* Signature of a long-term LNG contract to supply 0.8 Mt/y to Sembcorp in
Singapore for 16 years
* Extension of the 2 Mt/y LNG supply contract with Sonatrach in Algeria until
2025
* Entry in Ruwais LNG, a low-emission LNG project in the United Arab Emirates
* Launch of the Ubeta onshore gas development to supply Nigeria LNG
* Acquisition of interests in the Dorado leases in the Eagle Ford shale gas play
in Texas
* Signature of two LNG contracts to Asia: 0.8 Mt/y over 10 years to IOCL in
India and 0.5 Mt/y over 5 years to Korea South East Power in South Korea
Integrated Power
* Closing of the 1.5 GW acquisition of flexible power generation capacity in
Texas
* Launch of a new 75 MWh battery storage project, in Belgium
* Over 1.5 GW of PPAs signed with 600 industrial and commercial customers
worldwide
* Acquisition of a 1.3 GW gross capacity CCGT in the United Kingdom
* Award of a maritime lease to develop a 1.5 GW offshore wind farm in Germany
* Launch of a 100 MW battery storage project developed by Kyon Energy in Germany
* Launch of a joint-venture with SSE to grow electric mobility in the UK and
Ireland
Decarbonization & low-carbon molecules
* Acquisition of carbon storage projects from Talos Low Carbon Solutions, in the
United States
* Creation of a joint-venture with Vanguard Renewables (50%/50%), a BlackRock
subsidiary, to produce biomethane in the United States
* Founding member of the international “e-NG Coalition” to support the
development of production and use of synthetic methane
* Agreement with Air Products for delivery of 70 kt/y of green hydrogen over 15
years, in the large-scale tender launched by the Company to decarbonize its
European refineries
* Acquisition of 50% of a 795 MW offshore wind farm in the Netherlands, to
produce green hydrogen to decarbonize TotalEnergies’ European refineries
1.2 Key figures from TotalEnergies’ consolidated financial statements(2)
(in millions of dollars, except effective tax rate, earnings per share and 1H24 1H23 1H24 vs 1H23
number of shares)
Adjusted EBITDA(2) 22,566 25,272 -11%
Adjusted net operating income from business segments 10,939 12,575 -13%
Exploration & Production 5,217 5,002 +4%
Integrated LNG 2,374 3,402 -30%
Integrated Power 1,113 820 +36%
Refining & Chemicals 1,601 2,622 -39%
Marketing & Services 634 729 -13%
Contribution of equity affiliates to adjusted net income 1,257 1,741 -28%
Effective tax rate(3) 39.0% 39.7% –
Adjusted net income (TotalEnergies share)(2) 9,784 11,497 -15%
Adjusted fully-diluted earnings per share (dollars)(4) 4.14 4.61 -10%
Adjusted fully-diluted earnings per share (euros)(5) 3.82 4.27 -11%
Fully-diluted weighted-average shares (millions) 2,333 2,460 -5%
Net income (TotalEnergies share) 9,508 9,645 -1%
Organic investments(2) 8,482 7,704 +10%
Acquisitions net of asset sales(2) (280) 3,307 ns
Net investments(2) 8,202 11,011 -26%
Cash flow from operations excluding working capital (CFFO)(2) 15,945 18,106 -12%
Debt Adjusted Cash Flow (DACF)(2) 16,207 18,371 -12%
Cash flow from operating activities 11,176 15,033 -26%
Gearing(2) of 10.2% at June 30, 2024 vs.10.5% at March 31, 2024 and 11.1% at
June 30, 2023.
1.3 Key figures of environment, greenhouse gas emissions and production
1.3.1 Environment – liquids and gas price realizations, refining margins
1H24 1H23 1H24 vs 1H23
Brent ($/b) 84.1 79.7 +6%
Henry Hub ($/Mbtu) 2.2 2.5 -13%
NBP ($/Mbtu) 9.2 13.3 -31%
JKM ($/Mbtu) 10.3 13.7 -25%
Average price of liquids ($/b)(6,7 )Consolidated subsidiaries 79.9 72.7 +10%
Average price of gas ($/Mbtu)(6,8 )Consolidated subsidiaries 5.08 7.48 -32%
Average price of LNG ($/Mbtu)(6,9 )Consolidated subsidiaries and equity 9.46 11.59 -18%
affiliates
European Refining Margin Marker (ERM) ($/t)(6,10) 58.3 65.5 -11%
1.3.2 Greenhouse gas emissions(11)
Scope 1+2 emissions (MtCO(2)e) 1H24 1H23
Scope 1+2 from operated facilities(12) 15.9 18.2
of which Oil & Gas 14.1 15.6
of which CCGT 1.8 2.6
Scope 1+2 - equity share 22.5 25.3
Estimated 1H24 emissions.
Methane emissions (ktCH(4)) 1H24 1H23
Methane emissions from operated facilities 15 18
Methane emissions - equity share 17 21
Estimated 1H24 emissions.
Scope 3 emissions (MtCO(2)e) 1H24 1H23
Scope 3 from Oil, Biofuels and Gas Worldwide(13) est. 170 355
Scope 1+2 emissions from operated installations in the first half 2024 were
down 13% year-on-year, thanks to the continuous decline in flaring emissions
on Exploration & Production facilities, carbon footprint reduction
initiatives in Refining & Chemical, lower gas-fired power plants
utilization rate in Europe, and despite the perimeter effect related to the
acquisition of gas-fired power generation capacity in Texas.
1.3.3 Production(14)
Hydrocarbon production 1H24 1H23 1H24 vs 1H23
Hydrocarbon production (kboe/d) 2,451 2,498 -2%
Oil (including bitumen) (kb/d) 1,320 1,407 -6%
Gas (including condensates and associated NGL) (kboe/d) 1,131 1,091 +4%
Hydrocarbon production (kboe/d) 2,451 2,498 -2%
Liquids (kb/d) 1,480 1,567 -6%
Gas (Mcf/d) 5,215 5,017 +4%
Hydrocarbon production in the first semester 2024 was up 3% year-on-year
(excluding Canada) and was comprised of:
* +2% due to projects start-ups and ramp-ups, including Mero 2 in Brazil, Block
10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria
and Absheron in Azerbaijan,
* +1% portfolio effect related to entry in the producing fields of Ratawi in
Iraq and Dorado in the United States, partially offset by the end of the
Bongkot operating licenses in Thailand and the divestment from Dunga in
Kazakhstan,
* +3% due to the higher availability of production facilities ,
* -3% due to the natural field decline.
When taking into account the Canadian oil sands assets disposals, production
in the first semester 2024 was down 2% year-on-year.
1.4 Analysis of business segments
1.4.1 Exploration & Production
1.4.1.1 PRODUCTION
Hydrocarbon production 1H24 1H23 1H24 vs 1H23
EP (kboe/d) 1,956 2,047 -4%
Liquids (kb/d) 1,416 1,506 -6%
Gas (Mcf/d) 2,883 2,895 –
1.4.1.2 RESULTS
(in millions of dollars, except effective tax rate) 1H24 1H23 1H24 vs 1H23
Adjusted net operating income 5,217 5,002 +4%
including adjusted income from equity affiliates 352 284 +24%
Effective tax rate(15) 47.7% 53.9% –
Organic investments(2) 4,626 4,558 +1%
Acquisitions net of assets sales(2) 93 2,114 -96%
Net investments(2) 4,719 6,672 -29%
Cash flow from operations excluding working capital (CFFO)(2) 8,831 9,271 -5%
Cash flow from operating activities 8,125 8,583 -5%
Exploration & Production adjusted net operating income was $5,217 million
in the first half 2024, up 4% year-on-year, driven by higher oil prices, lower
gas prices, and the effects of the Canadian assets disposal (notably on
production and production costs).
Cash flow from operations excluding working capital (CFFO) was $8,831 million
in the first half 2024, down 5% year-on-year. The difference in yearly
variation between income and CFFO is notably linked to the tax impact of an
overlift position at the end of the second quarter 2024 in Norway.
1.4.2 Integrated LNG
1.4.2.1 PRODUCTION
Hydrocarbon production for LNG 1H24 1H23 1H24 vs 1H23
Integrated LNG (kboe/d) 495 451 +10%
Liquids (kb/d) 64 61 +5%
Gas (Mcf/d) 2,332 2,122 +10%
Liquefied Natural Gas (Mt) 1H24 1H23 1H24 vs 1H23
Overall LNG sales 19.5 22.0 -12%
incl. Sales from equity production* 7.8 7.6 +3%
incl. Sales by TotalEnergies from equity production and third party purchases 16.9 19.9 -15%
* The Company's equity production may be sold by Total Energies or by the
joint ventures.
Hydrocarbon production for LNG in the first half 2024 was up 10% year-on-year,
thanks to higher installations availability, notably at Ichthys in Australia
and Snøhvit in Norway.
LNG sales decreased by 12% year-on-year, in a context of lower LNG demand in
Europe.
1.4.2.2 RESULTS
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Average price of LNG ($/Mbtu)*Consolidated subsidiaries and equity affiliates 9.5 11.6 -18%
Adjusted net operating income 2 374 3 402 -30%
including adjusted income from equity affiliates 915 1,218 -25%
Organic investments(2) 1,164 779 +49%
Acquisitions net of assets sales(2) 186 964 -81%
Net investments(2) 1,350 1,743 -23%
Cash flow from operations excluding working capital (CFFO)(2) 2,568 3,882 -34%
Cash flow from operating activities 2,141 4,868 -56%
* Sales in $ / Sales in volume for consolidated and equity affiliates. Does
not include oil, gas and LNG trading activities, respectively.
Integrated LNG adjusted net operating income was $2,374 million in the first
half 2024, down 30% year-on-year, linked to lower LNG prices and sales.
Moreover, gas trading did not fully benefit in markets characterized by lower
volatility than during first half of 2023.
Cash flow from operations excluding working capital (CFFO) was $2,568 million
in the first half 2024, down 34% year-on-year, for the same reasons.
1.4.3 Integrated Power
1.4.3.1 PRODUCTIONS, CAPACITIES, CLIENTS AND SALES
Integrated Power 1H24 1H23 1H24 vs 1H23
Net power production (TWh)* 18.6 16.6 +12%
o/w production from renewables 12.8 8.1 +59%
o/w production from gas flexible capacities 5.8 8.5 -32%
Portfolio of power generation net installed capacity (GW)** 19.6 13.2 +48%
o/w renewables 13.8 8.9 +54%
o/w gas flexible capacities 5.8 4.3 –
Portfolio of renewable power generation gross capacity (GW)**(,)*** 87.4 74.7 +17%
o/w installed capacity 24.0 19.0 +26%
Clients power - BtB and BtC (Million)** 6.0 6.0 –
Clients gas - BtB and BtC (Million)** 2.8 2.8 –
Sales power - BtB and BtC (TWh) 26.0 27.0 -4%
Sales gas – BtB and BtC (TWh) 54.6 56.4 -3%
* Solar, wind, hydroelectric and gas flexible capacities.
** End of period data.
*** Includes 20% of Adani Green Energy Ltd’s gross capacity, 50% of Clearway
Energy Group’s gross capacity and 49% of Casa dos Ventos’ gross capacity.
Net power production was 18.6 TWh in the first half 2024, up 12% year-on-year
and linked to higher production from renewable sources, despite lower
production from flexible gas asset in Europe.
Gross installed renewable power generation capacity reached 24.0 GW at the end
of the first half 2024, up 5 GW year-on-year, reflecting activity growth,
notably in the United States.
1.4.3.2 RESULTS
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Adjusted net operating income 1,113 820 +36%
including adjusted income from equity affiliates (4) 79 ns
Organic investments(2) 1,539 1,330 +16%
Acquisitions net of assets sales(2) 647 477 +36%
Net investments(2) 2,186 1,807 +21%
Cash flow from operations excluding working capital (CFFO)(2) 1,315 931 +41%
Cash flow from operating activities 1,398 999 +40%
Integrated Power adjusted net operating income was $1,113 million in the first
half 2024, up 36% year-on-year, reflecting activity growth.
Cash flow from operations excluding working capital (CFFO) was $1,315 million,
up 41% year-on-year, for the same reason.
1.4.4 Downstream (Refining & Chemicals and Marketing & Services)
1.4.4.1 RESULTS
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Adjusted net operating income 2,235 3,351 -33%
Organic investments(2) 1,088 976 +11%
Acquisitions net of assets sales(2) (1,202) (248) ns
Net investments(2) (114) 728 ns
Cash flow from operations excluding working capital (CFFO)(2) 3,546 4,274 -17%
Cash flow from operating activities 954 1,064 -10%
1.4.4.2 REFINING & CHEMICALS
1.4.4.2.1 REFINERY AND PETROCHEMICALS THROUGHPUT AND UTILIZATION RATES
Refinery throughput and utilization rate* 1H24 1H23 1H24 vs 1H23
Total refinery throughput (kb/d) 1,468 1,437 +2%
France 406 360 +13%
Rest of Europe 627 598 +5%
Rest of world 435 479 -9%
Utilization rate based on crude only** 82% 80% –
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year.
Petrochemicals production and utilization rate 1H24 1H23 1H24 vs 1H23
Monomers* (kt) 2,535 2,452 +3%
Polymers (kt) 2,185 2,074 +5%
Vapocracker utilization rate** 76% 71% –
* Olefins.
** Based on olefins production from steam crackers and their treatment
capacity at the start of the year, excluding Lavera (divested) from 2nd
quarter 2024.
Refining throughput was up 2% year-on-year in the first half 2024, mainly due
to the impact of last year’s turnarounds and unplanned shutdowns at the
Antwerp refinery in Belgium and the Normandy refinery in France. Utilization
rate was 82% in the first half 2024.
Petrochemicals production in the first half 2024 was up 3% year-on-year for
monomers and up 5% for polymers, as the increase in production of the ethane
cracker in Port Arthur and of Baystar, both in the United States, were only
partially offset by the disposal of Lavera assets during first half 2024.
1.4.4.2.2 RESULTS
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
European Refining Margin Marker (ERM) ($/t)* 58.3 65.5 -11%
Adjusted net operating income 1,601 2,622 -39%
Organic investments(2) 801 652 +23%
Acquisitions net of assets sales(2) (115) (10) ns
Net investments(2) 686 642 +7%
Cash flow from operations excluding working capital (CFFO)(2) 2,408 3,062 -21%
Cash flow from operating activities (588) 1,072 ns
* This market indicator for European refining, calculated based on public
market prices ($/t), uses a basket of crudes, petroleum product yields and
variable costs representative of the European refining system of
TotalEnergies. Does not include oil, gas and LNG trading activities,
respectively.
Refining & Chemicals adjusted net operating income was $1,601 million in
the first half 2024, down 39% year-on-year, due to lower refining margins.
Cash flow from operations excluding working capital (CFFO) was $2,408 million
in the first half of 2024, down 21% year-on-year, for the same reason.
1.4.4.3 MARKETING & SERVICES
1.4.4.3.1 PETROLEUM PRODUCT SALES
Sales (in kb/d)* 1H24 1H23 1H24 vs 1H23
Total Marketing & Services sales 1,338 1,379 -3%
Europe 744 778 -4%
Rest of world 594 600 -1%
* Excludes trading and bulk refining sales.
Sales of petroleum products in the first half 2024 were down year-on-year by
3%, mainly due to lower diesel demand in Europe that was partially compensated
by higher activity in the aviation business.
1.4.4.3.2 RESULTS
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Adjusted net operating income 634 729 -13%
Organic investments(2) 287 324 -11%
Acquisitions net of assets sales(2) (1,087) (238) ns
Net investments(2) (800) 86 ns
Cash flow from operations excluding working capital (CFFO)(2) 1,138 1,212 -6%
Cash flow from operating activities 1,542 (8) ns
Marketing & Services adjusted net operating income was $634 million for
the first half 2024, down 13% year-on-year due to lower sales and the disposal
of part of the European retail network to Alimentation Couche-Tard.
Cash flow from operations excluding working capital (CFFO) was $1,138 million
in the first half 2024, down 6% year-on-year for the same reasons.
1.5 TotalEnergies results
1.5.1 Adjusted net operating income from business segments
Adjusted net operating income for the sectors was $10,939 million in the first
half 2024 versus $12,575 million in the first half 2023, linked to lower
refining margins, and lower gas and LNG prices.
1.5.2 Adjusted net income(2) (TotalEnergies share)
Adjusted net income (TotalEnergies share) was $9,784 million in the first half
2024 compared to $11,497 million a year earlier, mainly due to lower refining
margins, and lower gas and LNG prices.
Adjusted net income excludes the after-tax inventory effect, special items and
impact of changes in fair value.
Total net income adjustments were ($276) million in the first half 2024,
consisting mainly of:
* $1.4 billion capital gain on disposal and revaluation of shares held and
consolidated under the equity method, after the partial divestment of retail
network in Belgium and Luxembourg and the full divestment in the Netherlands,
* ($0.6) billion impairment of the Company’s minority stake in Sunpower and
Maxeon, based on their market value,
* ($0.6) billion effects of changes in fair value, and
* ($0.2) billion in inventory effects.
The effective tax rate for TotalEnergies was 39.0% in the first half 2024
versus 39.7% a year ago, notably due to a lower Exploration & Production
tax rate that is linked to lower European gas prices
1.5.3 Adjusted earnings per share
Adjusted fully-diluted earnings per share was $4.14 in the first half 2024,
based on 2,333 million weighted average diluted shares, compared to $4.61 a
year ago.
As of June 30, 2024, the number of diluted shares was 2,328 million.
TotalEnergies repurchased 58.7 million shares in the first half 2024 for $4
billion.
1.5.4 Acquisitions – asset sales
Acquisitions were $1,618 million in the first half 2024, related to the
acquisitions of a 20% interest in the Dorado gas field in the United States,
of the German renewable energy aggregator Quadra Energy, the acquisition of
1.5 GW of flexible gas capacity in Texas, the battery storage developer Kyon
in Germany, and Talos Low Carbon Solutions, in the carbon storage industry in
the United States.
Divestments were $1,898 million in the first half 2024, related to the
farmdown of the Seagreen offshore wind farm in the United Kingdom, the sale of
petrochemical assets in Lavera, France, the closing of the retail network
transaction with Alimentation Couche-Tard in Belgium, Luxemburg, and the
Netherlands, and the sale of a 15% interest in Absheron, in Azerbaijan.
1.5.5 Net cash flow(2)
TotalEnergies’ net cash flow was $7,743 million in the first half 2024
compared to $7,095 million a year ago, reflecting the $2,161 million decrease
in CFFO and the $2,809 million decrease in net investments to $8,202 million
in the first half 2024.
In the first half 2024, cash flow from operations was $11,176 million compared
to CFFO of $15,945 million, reflecting a $4.8 billion increase in working
capital requirements, mainly due to the reversal of an exceptional working
capital release in the fourth quarter 2023, the price and seasonal effect on
tax liabilities and the effect of higher oil and petroleum products prices on
inventories at the end of the first half of the year.
1.5.6 Profitability
The return on equity was 18.7% for the twelve months ended June 30, 2024.
(in millions of dollars) July 1, 2023 April 1, 2023 July 1, 2022
June 30, 2024
March 31, 2024
June 30, 2023
Adjusted net income(2) 21,769 22,047 29,351
Average adjusted shareholders' equity 116,286 115,835 116,329
Return on equity (ROE) 18.7% 19.0% 25.2%
The return on average capital employed(2) was 16.6% for the twelve months
ended June 30, 2023.
(in millions of dollars) July 1, 2023 April 1, 2023 July 1, 2022
June 30, 2024
March 31, 2024
June 30, 2023
Adjusted net operating income(2) 23,030 23,278 30,776
Average capital employed(2) 138,776 140,662 137,204
ROACE(2) 16.6% 16.5% 22.4%
1.6 TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, was €7,965 million in
the first half 2024 compared to €7,040 in the first half 2023.
1.7 Annual 2024 Sensitivities(16)
Change Estimated impact on adjusted net operating income Estimated impact on cash flow from operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids price(17) +/- 10 $/b +/- 2.3 B$ +/- 2.8 B$
European gas price - NBP / TTF +/- 2 $/Mbtu +/- 0.4 B$ +/- 0.4 B$
European Refining Margin Marker (ERM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$
1.8 Outlook
Brent prices remain above $80/b at the start of the third quarter, with the
OPEC+ countries having declared in early June 2024 the intention to continue
their policy to sustain a stable oil market.
Global refining margins, which have sharply decreased since the end of the
first quarter 2024, remain impacted by low diesel demand in Europe, as well as
by the market normalization following the disruption in Russian supply.
Given the lower seasonal demand in Europe, European gas prices are expected to
be between $8 and $10/Mbtu in the third quarter 2024. However, in a context of
supply tensions, Asian LNG prices are above $12/Mbtu, supported by higher
demand, notably in China and India. Given the evolution of oil and gas prices
in recent months and the lag effect on price formulas, TotalEnergies
anticipates that its average LNG selling price should be around $10/Mbtu in
the third quarter 2024.
Third quarter 2024 hydrocarbon production is expected to be between 2.4 and
2.45 Mboe/d. Start-up of Anchor, in the US Gulf of Mexico, is expected in the
third quarter.
The third quarter 2024 refining utilization rate is anticipated to be above
85%, benefiting from the restart of the Donges refinery in France.
The Company confirms net investments guidance of $17-$18 billion in 2024, of
which $5 billion are dedicated to Integrated Power.
1.9 Operating information by segment
1.9.1 Company’s production (Exploration & Production + Integrated LNG)
Combined liquids and gas production by region (kboe/d) 1H24 1H23 1H24 vs 1H23
Europe 566 559 +1%
Africa 456 488 -6%
Middle East and North Africa 820 743 +10%
Americas 355 442 –
Asia-Pacific 254 266 -4%
Total production 2,451 2,498 -2%
includes equity affiliates 352 341 +3%
Liquids production by region (kb/d) 1H24 1H23 1H24 vs 1H23
Europe 225 231 -3%
Africa 328 365 -10%
Middle East and North Africa 656 596 +10%
Americas 168 266 -37%
Asia-Pacific 103 109 -6%
Total production 1,480 1,567 -6%
includes equity affiliates 152 152 –
Gas production by region (Mcf/d) 1H24 1H23 1H24 vs 1H23
Europe 1,841 1,774 +4%
Africa 634 612 +4%
Middle East and North Africa 900 803 +12%
Americas 1,032 985 +5%
Asia-Pacific 808 843 -4%
Total production 5,215 5,017 +4%
includes equity affiliates 1,085 1,029 +5%
1.9.2 Downstream (Refining & Chemicals and Marketing & Services)
Petroleum product sales by region (kb/d) 1H24 1H23 1H24 vs 1H23
Europe 1,807 1,655 –
Africa 575 633 -9%
Americas 1,011 883 +14%
Rest of world 675 644 +5%
Total consolidated sales 4,068 3,815 +7%
Includes bulk sales 399 405 -2%
Includes trading 2,331 2,031 +15%
Petrochemicals production* (kt) 1H24 1H23 1H24 vs 1H23
Europe 1,890 2,073 -9%
Americas 1,401 1,226 +14%
Middle East and Asia 1,430 1,228 +16%
* Olefins, polymers
1.9.3 Integrated power
1.9.3.1 NET POWER PRODUCTION
Net power production (TWh) 1H24 1H23
Solar Onshore Wind Offshore Wind Gas Other Total Solar Onshore Wind Offshore Wind Gas Other Total
France 0.2 0.2 – 0.4 0.0 0.8 0.1 0.2 – 1.8 0.0 2.2
Rest of Europe 0.1 0.4 0.4 0.4 0.1 1.4 0.1 0.6 0.6 0.7 0.1 2.0
Africa 0.0 0.0 – – – 0.0 0.0 0.0 – – – 0.0
Middle East 0.3 – – 0.2 – 0.5 0.2 – – 0.3 – 0.5
North America 0.9 0.6 – – – 2.8 0.5 0.5 – – – 1.8
South America 0.1 0.8 – – – 0.9 0.2 0.7 – – – 0.8
India 1.9 0.4 – – – 2.2 1.6 0.2 – – – 1.8
Pacific Asia 0.4 0.0 0.0 – – 0.5 0.3 0.0 0.1 – – 0.4
Total 3.9 2.3 0.5 2.2 0.1 9.1 2.9 2.3 0.7 3.6 0.1 9.6
1.9.3.2 INSTALLED POWER GENERATION NET CAPACITY
Installed power generation net capacity (GW)(18) 1H24 1H23
Solar Onshore Wind Offshore Wind Gas Other Total Solar Onshore Wind Offshore Wind Gas Other Total
France 0.6 0.4 – 2.6 0.1 3.7 0.6 0.4 – 2.6 0.1 3.7
Rest of Europe 0.3 0.9 0.3 1.4 0.1 2.9 0.3 0.9 0.6 1.4 0.1 3.2
Africa 0.1 0.0 – – 0.0 0.1 0.1 0.0 – – 0.0 0.1
Middle East 0.4 – – 0.3 – 0.8 0.4 – – 0.3 – 0.7
North America 2.3 0.8 – – 0.4 5.0 2.2 0.8 – – 0.3 4.9
South America 0.4 0.9 – – – 1.2 0.4 0.9 – – – 1.2
India 4.2 0.5 – – – 4.7 4.0 0.5 – – – 4.5
Pacific Asia 1.1 0.0 0.1 – 0.0 1.2 1.0 0.0 0.1 – 0.0 1.1
Total 9.3 3.5 0.4 5.8 0.7 19.6 9.0 3.5 0.7 5.8 0.6 19.5
1.9.3.3 POWER GENERATION GROSS CAPACITY FROM RENEWABLES
Installed power generation gross capacity from renewables (GW)(19,20) 1H24 1H23
Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 1.1 0.7 – 0.2 2.0 0.9 0.7 – 0.1 1.7
Rest of Europe 0.3 1.1 1.1 0.2 2.7 0.3 1.1 1.1 0.2 2.7
Africa 0.1 – – 0.0 0.1 0.1 0.0 – 0.0 0.2
Middle East 1.2 – – – 1.2 1.2 – – – 1.2
North America 5.2 2.2 – 0.7 8.1 5.2 2.2 – 0.6 8.0
South America 0.4 1.3 – – 1.6 0.4 1.2 – – 1.6
India 5.9 0.5 – – 6.5 5.8 0.5 – – 6.3
Asia-Pacific 1.5 – 0.3 – 1.8 1.5 0.0 0.3 0.0 1.8
Total 15.7 5.8 1.4 1.1 24.0 15.4 5.7 1.4 1.0 23.5
Power generation gross capacity from renewables in construction (GW)(19,20) 1H24 1H23
Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.1 0.0 0.0 0.0 0.2 0.1 – 0.0 0.0 0.2
Rest of Europe 0.4 0.2 – 0.1 0.6 0.4 0.0 – 0.1 0.5
Africa 0.3 – – 0.1 0.4 0.3 – – 0.1 0.4
Middle East 0.1 – – – 0.1 0.1 – – – 0.1
North America 1.7 0.0 – 0.3 2.0 1.6 0.0 – 0.2 1.8
South America 0.0 0.6 – – 0.7 0.0 0.7 – – 0.7
India 0.5 – – – 0.5 0.6 0.1 – – 0.6
Asia-Pacific 0.0 0.0 0.4 – 0.4 0.1 0.0 0.4 – 0.4
Total 3.2 0.9 0.4 0.4 5.0 3.1 0.8 0.4 0.4 4.8
Power generation gross capacity from renewables in development (GW)(19,20) 1H24 1H23
Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 1.4 0.4 – 0.1 1.9 1.2 0.4 – 0.0 1.6
Rest of Europe 4.4 0.8 8.9 2.2 16.4 4.4 0.5 7.4 1.8 14.2
Africa 0.7 0.3 – – 1.0 1.4 0.3 – 0.0 1.7
Middle East 1.8 – – – 1.8 1.7 – – – 1.7
North America 9.7 2.9 4.1 4.4 21.1 10.3 3.1 4.1 4.8 22.3
South America 2.1 1.2 – 0.2 3.4 1.5 1.2 – 0.1 2.8
India 4.5 0.2 – – 4.7 4.5 0.2 – – 4.7
Asia-Pacific 3.4 1.1 2.6 1.1 8.2 3.2 0.1 2.6 1.0 6.9
Total 28.0 6.8 15.6 8.0 58.5 28.2 5.8 14.1 7.7 55.9
1.10 Alternative Performance Measures (Non-GAAP measures)
1.10.1 Adjustment items to net income (TotalEnergies share)
(in millions of dollars) 1H24 1H23
Net income (TotalEnergies share) 9,508 9,645
Special items affecting net income (TotalEnergies share) 531 (536)
Gain (loss) on asset sales 1,397 203
Restructuring charges (11) (5)
Impairments (644) (529)
Other (211) (205)
After-tax inventory effect : FIFO vs. replacement cost (196) (771)
Effect of changes in fair value (611) (545)
Total adjustments affecting net income (276) (1,852)
Adjusted net income (TotalEnergies share) 9,784 11,497
1.10.2 Reconciliation of adjusted EBITDA with consolidated financial
statements
1.10.2.1 RECONCILIATION OF NET INCOME (TotalEnergies SHARE) TO ADJUSTED EBITDA
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Net income (TotalEnergies share) 9,508 9,645 -1%
Less: adjustment items to net income (TotalEnergies share) 276 1,852 -85%
Adjusted net income (TotalEnergies share) 9,784 11,497 -15%
Adjusted items
Add: non-controlling interests 167 135 +24%
Add: income taxes 5,968 6,805 -12%
Add: depreciation, depletion and impairment of tangible assets and mineral 5,904 5,985 -1%
interests
Add: amortization and impairment of intangible assets 179 191 -6%
Add: financial interest on debt 1,433 1434 –
Less: financial income and expense from cash & cash equivalents (869) (775) ns
Adjusted EBITDA 22,566 25,272 -11%
1.10.2.2 RECONCILIATION OF REVENUES FROM SALES TO ADJUSTED EBITDA AND NET
INCOME (TOTALENERGIES SHARE)
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Adjusted items
Revenues from sales 101,066 109,767 -8%
Purchases, net of inventory variation (64,839) (70,858) ns
Other operating expenses (15,244) (15,506) ns
Exploration costs (185) (156) ns
Other income 386 193 +100%
Other expense, excluding amortization and impairment of intangible assets (162) (202) ns
Other financial income 715 649 +10%
Other financial expense (428) (356) ns
Net income (loss) from equity affiliates 1,257 1,741 -28%
Adjusted EBITDA 22,566 25,272 -11%
Adjusted items
Less: depreciation, depletion and impairment of tangible assets and mineral (5,904) (5,985) ns
interests
Less: amortization of intangible assets (179) (191) ns
Less: financial interest on debt (1,433) (1,434) ns
Add: financial income and expense from cash & cash equivalents 869 775 +12%
Less: income taxes (5,968) (6,805) ns
Less: non-controlling interests (167) (135) ns
Add: adjustment (TotalEnergies share) (276) (1,852) ns
Net income (TotalEnergies share) 9,508 9,645 -1%
1.10.3 Investments – Divestments (TotalEnergies share)
Reconciliation of Cash flow used in investing activities to Net investments
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Cash flow used in investing activities (a) 8,025 10,835 -26%
Other transactions with non-controlling interests (b) – – ns
Organic loan repayment from equity affiliates (c) (26) 12 ns
Change in debt from renewable projects financing (d)* – 38 -100%
Capex linked to capitalized leasing contracts (e) 200 124 +61%
Expenditures related to carbon credits (f) 3 2 +50%
Net investments (a + b + c + d + e + f = g - i + h) 8,202 11,011 -26%
of which acquisitions net of assets sales (g - i) (280) 3,307 ns
Acquisitions (g) 1,618 3,738 -57%
Asset sales (i) 1,898 431 x4,4
Change in debt from renewable projects (partner share) – (38) -100%
of which organic investments (h) 8,482 7,704 +10%
Capitalized exploration 247 533 -54%
Increase in non-current loans 1,127 740 +52%
Repayment of non-current loans, excluding organic loan repayment from equity (324) (313) ns
affiliates
Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share).
1.10.4 Cash-flow (TotalEnergies share)
Reconciliation of Cash flow from operating activities to Cash flow from
operations excluding working capital (CFFO), to DACF and to Net cash flow
(in millions of dollars) 1H24 1H23 1H24 vs 1H23
Cash flow from operating activities (a) 11,176 15,033 -26%
(Increase) decrease in working capital (b)* (4,452) (2,269) ns
Inventory effect (c) (343) (754) ns
Capital gain from renewable project sales (d) – 38 -100%
Organic loan repayments from equity affiliates (e) (26) 12 ns
Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 15,945 18,106 -12%
+ e)
Financial charges (262) (265) ns
Debt Adjusted Cash Flow (DACF) 16,207 18,371 -12%
Organic investments (g) 8 482 7 704 +10%
Free cash flow after organic investments (f - g) 7 463 10 402 -28%
Net investments (h) 8 202 11 011 -26%
Net cash flow (f - h) 7 743 7 095 +9%
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
1.10.5 Gearing ratio
(in millions of dollars) 30/06/2024 31/03/2024 30/06/2023
Current borrowings* 9,358 16,068 13,980
Other current financial liabilities 461 481 443
Current financial assets*(,)** (6,425) (5,969) (6,397)
Net financial assets classified as held for sale* (61) (11) (41)
Non-current financial debt* 34,726 30,452 33,387
Non-current financial assets* (1,166) (1,165) (1,264)
Cash and cash equivalents (23,211) (25,640) (25,572)
Net debt (a) 13,682 14,216 14,536
Shareholders’ equity (TotalEnergies share) 117,379 118,409 113,682
Non-controlling interests 2,648 2,734 2,770
Shareholders' equity (b) 120,027 121,143 116,452
Gearing = a / (a + b) 10.2% 10.5% 11.1%
Leases (c) 8,012 8,013 8,090
Gearing including leases (a + c) / (a + b + c) 15.3% 15.5% 16.3%
* Excludes leases receivables and leases debts.
** Including initial margins held as part of the Company's activities on
organized markets.
1.10.6 Return on average capital employed
Twelve months ended June 30, 2024
(in millions of dollars) Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Company
Adjusted net operating income 11,157 5,172 2,146 3,633 1,363 23,030
Capital employed at 06/30/2023 68,530 34,598 17,804 9,698 8,796 137,372
Capital employed at 06/30/2024 65,809 38,708 21,861 8,728 6,954 140,180
ROACE 16.6% 14.1% 10.8% 39.4% 17.3% 16.6%
1.10.7 Pay-out
(in millions of dollars) 1H24 1H23 2023
Dividend paid (parent company shareholders) 3,756 3,686 7,517
Repayment of treasury shares 4,013 4,105 9,167
Payout ratio 45% 42% 46%
1.10.8 Reconciliation of cash flow used in investing activities to Net
investments
1.10.8.1 EXPLORATION & PRODUCTION
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
2,548 1,988 2,543 ns Cash flow used in investing activities (a) 4,536 6,564 -31%
– – – ns Other transactions with non-controlling interests (b) – – ns
– – – ns Organic loan repayment from equity affiliates (c) – – ns
– – – ns Change in debt from renewable projects financing (d)* – – ns
90 90 56 61% Capex linked to capitalized leasing contracts (e) 180 106 70%
4 (1) 1 x4 Expenditures related to carbon credits (f) 3 2 50%
2,642 2,077 2,600 2% Net investments (a + b + c + d + e + f = g - i + h) 4,719 6,672 -29%
57 36 176 -68% of which net acquisitions of assets sales (g - i) 93 2,114 -96%
160 327 179 -11% Acquisitions (g) 487 2,125 -77%
103 291 3 x34.3 Assets sales (i) 394 11 x35.8
– – – ns Change in debt from renewable projects (partner share) – – ns
2,585 2,041 2,424 7% of which organic investments (h) 4,626 4,558 1%
88 136 325 -73% Capitalized exploration 225 529 -58%
67 42 17 x3.9 Increase in non-current loans 109 61 79%
(46) (15) (23) ns Repayment of non-current loans, excluding organic loan repayment from equity (61) (46) ns
affiliates
– – – ns Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share)
1.10.8.2 INTEGRATED LNG
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
815 515 581 40% Cash flow used in investing activities (a) 1,330 1,727 -23%
– – – ns Other transactions with non-controlling interests (b) – – ns
– 1 – ns Organic loan repayment from equity affiliates (c) 1 2 -50%
– – – ns Change in debt from renewable projects financing (d)* – – ns
7 12 6 17% Capex linked to capitalized leasing contracts (e) 19 14 36%
– – – ns Expenditures related to carbon credits (f) – – ns
822 528 587 40% Net investments (a + b + c + d + e + f = g - i + h) 1,350 1,743 -23%
198 (12) 205 -3% of which net acquisitions of assets sales (g - i) 186 964 -81%
199 – 224 -11% Acquisitions (g) 199 993 -80%
1 12 19 -95% Assets sales (i) 13 29 -0.55
– – – ns Change in debt from renewable projects (partner share) – – ns
624 540 382 63% of which organic investments (h) 1,164 779 49%
13 9 3 x4.3 Capitalized exploration 22 4 x5.5
153 173 95 61% Increase in non-current loans 326 238 37%
(42) (37) (26) ns Repayment of non-current loans, excluding organic loan repayment from equity (79) (64) ns
affiliates
– – – ns Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share)
1.10.8.3 INTEGRATED POWER
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
508 1,677 658 -23% Cash flow used in investing activities (a) 2,185 1,743 25%
– – – ns Other transactions with non-controlling interests (b) – – ns
– – 16 ns Organic loan repayment from equity affiliates (c) – 22 ns
– – 35 ns Change in debt from renewable projects financing (d)* – 38 ns
– 1 2 ns Capex linked to capitalized leasing contracts (e) 1 4 -75%
– – – ns Expenditures related to carbon credits (f) – – ns
508 1,678 711 -29% Net investments (a + b + c + d + e + f = g - i + h) 2,186 1,807 21%
(88) 735 (42) ns of which net acquisitions of assets sales (g - i) 647 477 36%
142 736 45 x3.2 Acquisitions (g) 878 582 51%
230 1 87 x2.6 Assets sales (i) 231 105 x2.2
– – (35) ns Change in debt from renewable projects (partner share) – (38) ns
596 943 753 -21% of which organic investments (h) 1,539 1,330 16%
– – – ns Capitalized exploration – – ns
239 305 182 31% Increase in non-current loans 544 345 58%
(31) (61) (11) ns Repayment of non-current loans, excluding organic loan repayment from equity (92) (132) ns
affiliates
– – – ns Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share)
1.10.8.4 REFINING & CHEMICALS
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
316 397 437 -28% Cash flow used in investing activities (a) 713 654 9%
– – – ns Other transactions with non-controlling interests (b) – – ns
(29) 2 2 ns Organic loan repayment from equity affiliates (c) (27) (12) ns
– – – ns Change in debt from renewable projects financing (d)* – – ns
– – – ns Capex linked to capitalized leasing contracts (e) – – ns
– – – ns Expenditures related to carbon credits (f) – – ns
287 399 439 -35% Net investments (a + b + c + d + e + f = g - i + h) 686 642 7%
(95) (20) (15) ns of which net acquisitions of assets sales (g - i) (115) (10) ns
26 9 27 -4% Acquisitions (g) 35 31 13%
121 29 42 x2.9 Assets sales i) 150 41 x3.7
– – – ns Change in debt from renewable projects (partner share) – – ns
382 419 454 -16% of which organic investments (h) 801 652 23%
– – – ns Capitalized exploration – – ns
58 7 27 x2.1 Increase in non-current loans 65 38 71%
(3) (7) (8) ns Repayment of non-current loans, excluding organic loan repayment from equity (10) (16) ns
affiliates
– – – ns Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share)
1.10.8.5 MARKETING & SERVICES
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
337 (1,137) 228 48% Cash flow used in investing activities (a) (800) 86 ns
– – – ns Other transactions with non-controlling interests (b) – – ns
– – – ns Organic loan repayment from equity affiliates (c) – – ns
– – – ns Change in debt from renewable projects financing (d)* – – ns
– – – ns Capex linked to capitalized leasing contracts (e) – – ns
– – – ns Expenditures related to carbon credits (f) – – ns
337 (1,137) 228 48% Net investments (a + b + c + d + e + f = g - i + h) (800) 86 ns
151 (1,238) (4) ns of which net acquisitions of assets sales (g - i) (1,087) (238) ns
17 2 7 x2.4 Acquisitions (g) 19 7 x2.7
(134) 1,240 11 ns Assets sales (i) 1,106 245 x4.5
– – – ns Change in debt from renewable projects (partner share) – – ns
186 101 232 -20% of which organic investments (h) 287 324 -11%
– – – ns Capitalized exploration – – ns
57 11 26 x2.2 Increase in non-current loans 68 37 84%
(53) (26) (12) ns Repayment of non-current loans, excluding organic loan repayment from equity (79) (51) ns
affiliates
– – – ns Change in debt from renewable projects (TotalEnergies share) – – ns
* Change in debt from renewable projects (TotalEnergies share and partner
share)
1.10.9 Reconciliation of cash flow from operating activities to CFFO
1.10.9.1 EXPLORATION & PRODUCTION
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
4,535 3,590 4,047 12% Cash flow from operating activities (a) 8,125 8,583 -5%
182 (888) (317) ns (Increase) decrease in working capital (b) (706) (688) ns
– – – ns Inventory effect (c) – – ns
– – – ns Capital gain from renewable project sales (d) – – ns
– – – ns Organic loan repayments from equity affiliates (e) – – ns
4,353 4,478 4,364 ns Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 8,831 9,271 -5%
+ e)
1.10.9.2 INTEGRATED LNG
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
431 1,710 1,332 -68% Cash flow from operating activities (a) 2,141 4,868 -56%
(789) 363 (469) ns (Increase) decrease in working capital (b)* (426) 987 ns
– – – ns Inventory effect (c) – – ns
– – – ns Capital gain from renewable project sales (d) – – ns
– 1 – ns Organic loan repayments from equity affiliates (e) 1 2 -50%
1,220 1,348 1,801 -32% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 2,568 3,882 -34%
+ e)
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
1.10.9.3 INTEGRATED POWER
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
1,647 (249) 2,284 -28% Cash flow from operating activities (a) 1,398 999 40%
1,024 (941) 1,844 -44% (Increase) decrease in working capital (b)* 83 129 -36%
– – – ns Inventory effect (c) – – ns
– – 35 ns Capital gain from renewable project sales (d) – 38 ns
– – 16 ns Organic loan repayments from equity affiliates (e) – 22 ns
623 692 491 27% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 1,315 931 41%
+ e)
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
1.10.9.4 REFINING & CHEMICALS
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
1,541 (2,129) 1,923 -20% Cash flow from operating activities (a) (588) 1,072 ns
788 (3,526) 788 ns (Increase) decrease in working capital (b) (2,738) (1,395) ns
(393) 108 (192) ns Inventory effect (c) (285) (607) ns
– – – ns Capital gain from renewable project sales (d) – – ns
(29) 2 2 ns Organic loan repayments from equity affiliates (e) (27) (12) ns
1,117 1,291 1,329 -16% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 2,408 3,062 -21%
+ e)
1.10.9.5 MARKETING & SERVICES
2(nd) quarter 2024 1(st) quarter 2024 2(nd )quarter 2023 2(nd )quarter 2024 (in millions of dollars) 6 months 2024 6 months 2023 6 months 2024
Vs
Vs
2(nd )quarter 2023
6 months 2023
1,650 (108) 665 x2.5 Cash flow from operating activities (a) 1,542 (8) ns
1,066 (604) (31) ns (Increase) decrease in working capital (b) 462 (1,073) ns
(75) 17 (60) ns Inventory effect (c) (58) (147) ns
– – – ns Capital gain from renewable project sales (d) – – ns
– – – ns Organic loan repayments from equity affiliates (e) – – ns
659 479 756 -13% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 1,138 1,212 -6%
+ e)
1.10.10 Reconciliation of capital employed (balance sheet) and calculation of
ROACE
(In millions of dollars) Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Inter Company Company
Adjusted net operating income 2n(d) quarter 2024 2,667 1,152 502 639 379 (253) – 5,086
Adjusted net operating income 1(st )quarter 2024 2,550 1,222 611 962 255 (90) – 5,510
Adjusted net operating income (4th) quarter 2023 2,802 1,456 527 633 306 (178) – 5,546
Adjusted net operating income 3(rd) quarter 2023 3,138 1,342 506 1,399 423 80 – 6,888
Adjusted net operating income (a) 11,157 5,172 2,146 3,633 1,363 (441) – 23,030
Balance sheet as of June 30, 2024 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Inter Company Company
Property plant and equipment intangible assets net 84,754 24,936 14,078 11,987 6,476 649 – 142,880
Investments & loans in equity affiliates 3,463 15,294 8,921 4,122 1,000 – – 32,800
Other non-current assets 3,803 2,424 1,147 731 1,224 214 – 9,543
Inventories, net 1,486 1,495 577 12,822 3,809 – – 20,189
Accounts receivable, net 6,432 5,526 4,766 20,755 8,940 1,073 (26,845) 20,647
Other current assets 6,497 7,876 4,797 2,146 3,141 7,313 (11,756) 20,014
Accounts payable (6,984) (6,429) (5,653) (33,025) (10,387) (775) 26,804 (36,449)
Other creditors and accrued liabilities (8,785) (8,614) (4,989) (6,082) (5,762) (11,007) 11,797 (33,442)
Working capital (1,354) (146) (502) (3,384) (259) (3,396) – (9,041)
Provisions and other non-current liabilities (24,947) (3,800) (1,807) (3,467) (1,207) 653 – (34,575)
Assets and liabilities classified as held for sale - Capital employed 90 – 24 – – – – 114
Capital Employed (Balance sheet) 65,809 38,708 21,861 9,989 7,234 (1,880) – 141,721
Less inventory valuation effect – – – (1,261) (280) – – (1,541)
Capital Employed at replacement cost (b) 65,809 38,708 21,861 8,728 6,954 (1,880) – 140,180
Balance sheet as of June 30, 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Inter Company Company
Property plant and equipment intangible assets net 85,184 24,341 7,587 11,637 6,518 624 – 135,891
Investments & loans in equity affiliates 2,589 13,441 9,599 4,237 559 – – 30,425
Other non-current assets 2,051 2,978 433 702 1,109 140 – 7,413
Inventories, net 1,550 1,202 678 11,483 3,872 – – 18,785
Accounts receivable, net 6,291 8,030 5,838 18,170 8,717 1,741 (26,624) 22,163
Other current assets 5,685 11,503 8,197 2,310 3,130 5,344 (13,058) 23,111
Accounts payable (6,242) (9,086) (5,149) (27,385) (10,090) (1,372) 26,471 (32,853)
Other creditors and accrued liabilities (9,381) (13,998) (8,224) (6,440) (4,743) (9,033) 13,211 (38,608)
Working capital (2,097) (2,349) 1,340 (1,862) 886 (3,320) – (7,402)
Provisions and other non-current liabilities (24,793) (3,917) (1,282) (3,723) (1,191) 502 – (34,404)
Assets and liabilities classified as held for sale - Capital employed 5,596 104 127 87 1,243 – – 7,157
Capital Employed (Balance sheet) 68,530 34,598 17,804 11,078 9,124 (2,054) – 139,080
Less inventory valuation effect – – – (1,380) (328) – – (1,708)
Capital Employed at replacement cost (c) 68,530 34,598 17,804 9,698 8,796 (2,054) – 137,372
Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Inter Company Company
ROACE as a percentage (a / average (b + c)) 16.6% 14.1% 10.8% 39.4% 17.3% 16.6%
1.10.11 Reconciliation of consolidated net income to adjusted net operating
income
(in millions of dollars) 2(nd) quarter 2024 1(st) quarter 2024 2(nd) quarter 2023 6 months 2024 6 months 2023
Consolidated net income (a) 3,847 5,804 4,152 9,651 9,783
Net cost of net debt (b) (365) (285) (245) (650) (538)
Special items affecting net operating income (256) 792 (449) 536 (616)
Gain (loss) on asset sales (110) 1,507 – 1,397 203
Restructuring charges (11) – (5) (11) (5)
Impairments – (644) (469) (644) (529)
Other (135) (71) 25 (206) (285)
After-tax inventory effect : FIFO vs. replacement cost (327) 107 (377) (220) (768)
Effect of changes in fair value (291) (320) (111) (611) (545)
Total adjustments affecting net operating income (c) (874) 579 (937) (295) (1,929)
Adjusted net operating income (a - b - c) 5,086 5,510 5,334 10,596 12,250
1.11 Principal risks and uncertainties for the remaining six months of 2024
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’ 2023 Universal Registration
Document filed with the Autorité des marchés financiers (French Financial
Markets Authority) on March 29, 2024. 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 2024 (page
52 of this half-year financial report).
1.12 Major related parties’ transactions
Information concerning the major related parties’ transactions for the first
six months of 2024 is provided in Note 6 to the condensed Consolidated
Financial Statements for the first half of 2024 (page 52 of this half-year
financial report).
Disclaimer
The terms “TotalEnergies”, “TotalEnergies company” and “Company”
in this document are used to designate TotalEnergies SE and the consolidated
entities directly or indirectly controlled by TotalEnergies SE. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate and independent legal entities.
This document may contain forward-looking statements (including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995), notably with respect to the financial
condition, results of operations, business activities and strategy of
TotalEnergies. This document may also contain statements regarding the
perspectives, objectives, areas of improvement and goals of TotalEnergies,
including with respect to climate change and carbon neutrality (net zero
emissions). An ambition expresses an outcome desired by TotalEnergies, it
being specified that the means to be deployed do not depend solely on
TotalEnergies. These forward-looking statements may generally be identified by
the use of the future or conditional tense or forward-looking words such as
“will”, “should”, “could”, “would”, “may”, “likely”,
“might”, “envisions”, “intends”, “anticipates”,
“believes”, “considers”, “plans”, “expects”, “thinks”,
“targets”, “aims” or similar terminology. Such forward-looking
statements included in this document are based on economic data, estimates and
assumptions prepared in a given economic, competitive and regulatory
environment and considered to be reasonable by TotalEnergies as of the date of
this document. These forward-looking statements are not historical data and
should not be interpreted as assurances that the perspectives, objectives or
goals announced will be achieved. They may prove to be inaccurate in the
future, and may evolve or be modified with a significant difference between
the actual results and those initially estimated, due to the uncertainties
notably related to the economic, financial, competitive and regulatory
environment, or due to the occurrence of risk factors, such as, notably, the
price fluctuations in crude oil and natural gas, the evolution of the demand
and price of petroleum products, the changes in production results and
reserves estimates, the ability to achieve cost reductions and operating
efficiencies without unduly disrupting business operations, changes in laws
and regulations including those related to the environment and climate,
currency fluctuations, technological innovations, meteorological conditions
and events, as well as socio-demographic, economic and political developments,
changes in market conditions, loss of market share and changes in consumer
preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain
financial information is based on estimates particularly in the assessment of
the recoverable value of assets and potential impairments of assets relating
thereto. Readers are cautioned not to consider forward-looking statements as
accurate, but as an expression of the Company’s views only as of the date
this document is published. TotalEnergies SE and its subsidiaries have no
obligation, make no commitment and expressly disclaim any responsibility to
investors or any stakeholder to update or revise, particularly as a result of
new information or future events, any forward-looking information or
statement, objectives or trends contained in this document. In addition, the
Company has not verified, and is under no obligation to verify any third-party
data contained in this document or used in the estimates and assumptions or,
more generally, forward-looking statements published in this document. The
information on risk factors that could have a significant adverse effect on
TotalEnergies’ business, financial condition, including its operating income
and cash flow, reputation, outlook or the value of financial instruments
issued by TotalEnergies is provided in the most recent version of the
Universal Registration Document which is filed by TotalEnergies SE with the
French Autorité des Marchés Financiers and the annual report on Form 20-F
filed with the United States Securities and Exchange Commission (“SEC”).
Additionally, the developments of environmental and climate change-related
issues in this document are based on various frameworks and the interests of
various stakeholders which are subject to evolve independently of our will.
Moreover, our disclosures on such issues, including climate-related
disclosures, may include information that is not necessarily "material" under
US securities laws for SEC reporting purposes or under applicable securities
law.
Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described below
(adjusted operating income, adjusted net operating income, adjusted net
income), return on equity (ROE), return on average capital employed (ROACE),
gearing ratio, operating cash flow before working capital changes, the
shareholder rate of return. These indicators are meant to facilitate the
analysis of the financial performance of TotalEnergies and the comparison of
income between periods. They allow investors to track the measures used
internally to manage and measure the performance of TotalEnergies.
These adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions
qualifying as "special items" are excluded from the business segment figures.
In general, special items relate to transactions that are significant,
infrequent, or unusual. However, in certain instances, transactions such as
restructuring costs or assets disposals, which are not considered to be
representative of the normal course of business, may qualify as special items
although they may have occurred in prior years or are likely to occur in
following years.
(ii) Inventory valuation effect
In accordance with IAS 2, TotalEnergies values inventories of petroleum
products in its financial statements according to the First-In, First-Out
(FIFO) method and other inventories using the weighted-average cost method.
Under the FIFO method, the cost of inventory is based on the historic cost of
acquisition or manufacture rather than the current replacement cost. In
volatile energy markets, this can have a significant distorting effect on the
reported income. Accordingly, the adjusted results of the Refining &
Chemicals and Marketing & Services segments are presented according to the
replacement cost method. This method is used to assess the segments’
performance and facilitate the comparability of the segments’ performance
with those of its main competitors.
In the replacement cost method, which approximates the Last-In, First-Out
(LIFO) method, the variation of inventory values in the statement of income
is, depending on the nature of the inventory, determined using either the
month-end prices differential between one period and another or the average
prices of the period rather than the historical value. The inventory valuation
effect is the difference between the results under the FIFO and the
replacement cost methods.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects,
for trading inventories and storage contracts, differences between internal
measures of performance used by TotalEnergies’ Executive Committee and the
accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using
period-end spot prices. In order to best reflect the management of economic
exposure through derivative transactions, internal indicators used to measure
performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, whose
future effects are recorded at fair value in TotalEnergies’ internal
economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage
certain operational contracts or assets. Under IFRS, these derivatives are
recorded at fair value while the underlying operational transactions are
recorded as they occur. Internal indicators defer the fair value on
derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating
income, adjusted net income) are defined as replacement cost results, adjusted
for special items, excluding the effect of changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings per share
represent dollar amounts converted at the average euro-dollar (€-$) exchange
rate for the applicable period and are not the result of financial statements
prepared in euros.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies,
in their filings with the SEC, to separately disclose proved, probable and
possible reserves that a company has determined in accordance with SEC rules.
We may use certain terms in this press release, such as “potential
reserves” or “resources”, that the SEC’s guidelines strictly prohibit
us from including in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in the Form 20-F of TotalEnergies SE, File N°
1-10888, available from us at 2, place Jean Millier – Arche Nord
Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at the Company
website totalenergies.com. You can also obtain this form from the SEC by
calling 1-800-SEC-0330 or on the SEC’s website sec.gov.
2. Consolidated Financial Statements as of June 30, 2024
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 the Group’s 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(st) to June 30, 2024
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(st) to June 30,
2024,
* the verification of the information presented in the half-yearly management
report.
These condensed half-yearly consolidated financial statements are the
responsibility of the 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.
Neuilly-sur-Seine and Paris-La Défense, July 24, 2024
The Statutory Auditors
French original signed by
PricewaterhouseCoopers Audit ERNST & YOUNG Audit
Olivier Lotz Cécile Saint-Martin Yvon Salaün Stéphane Pédron
Partner
Partner
Partner
Partner
2.2 Consolidated statement of income – half-yearly
TotalEnergies
(unaudited)
(M$)((a)) 1(st) half 2024 1(st) half 2023
Sales 110,021 118,874
Excise taxes (8,955) (9,107)
Revenues from sales 101,066 109,767
Purchases, net of inventory variation (65,897) (72,215)
Other operating expenses (15,372) (15,691)
Exploration costs (185) (154)
Depreciation, depletion and impairment of tangible assets and mineral (5,918) (6,168)
interests
Other income 1,761 457
Other expense (566) (666)
Financial interest on debt (1,433) (1,434)
Financial income and expense from cash & cash equivalents 880 903
Cost of net debt (553) (531)
Other financial income 765 671
Other financial expense (428) (356)
Net income (loss) from equity affiliates 645 1,227
Income taxes (5,667) (6,558)
Consolidated net income 9,651 9,783
TotalEnergies share 9,508 9,645
Non-controlling interests 143 138
Earnings per share ($) 4.04 3.88
Fully-diluted earnings per share ($) 4.02 3.86
(a) Except for per share amounts.
2.3 Consolidated statement of comprehensive income – half-yearly
TotalEnergies
(unaudited)
(M$) 1(st) half 2024 1(st) half 2023
Consolidated net income 9,651 9,783
Other comprehensive income
Actuarial gains and losses 20 138
Change in fair value of investments in equity instruments 143 3
Tax effect (19) (51)
Currency translation adjustment generated by the parent company (2,189) 1,409
Sub-total items not potentially reclassifiable to profit and loss (2,045) 1,499
Currency translation adjustment 1,622 (1,299)
Cash flow hedge 1,400 1,891
Variation of foreign currency basis spread (15) 8
Share of other comprehensive income of equity affiliates, net amount (114) (95)
Other – (1)
Tax effect (372) (472)
Sub-total items potentially reclassifiable to profit and loss 2,521 32
Total other comprehensive income (net amount) 476 1,531
Comprehensive income 10,127 11,314
– TotalEnergies share 10,004 11,226
– Non-controlling interests 123 88
2.4 Consolidated statement of income – quarterly
TotalEnergies
(unaudited)
(M$)((a)) 2(nd) quarter 2024 1(st) quarter 2024 2(nd) quarter 2023
Sales 53,743 56,278 56,271
Excise taxes (4,560) (4,395) (4,737)
Revenues from sales 49,183 51,883 51,534
Purchases, net of inventory variation (32,117) (33,780) (33,864)
Other operating expenses (7,729) (7,643) (7,906)
Exploration costs (97) (88) (62)
Depreciation, depletion and impairment of tangible assets and mineral (2,976) (2,942) (3,106)
interests
Other income 3 1,758 116
Other expense (251) (315) (366)
Financial interest on debt (725) (708) (724)
Financial income and expense from cash & cash equivalents 408 472 510
Cost of net debt (317) (236) (214)
Other financial income 459 306 413
Other financial expense (213) (215) (173)
Net income (loss) from equity affiliates 627 18 267
Income taxes (2,725) (2,942) (2,487)
Consolidated net income 3,847 5,804 4,152
TotalEnergies share 3,787 5,721 4,088
Non-controlling interests 60 83 64
Earnings per share ($) 1.61 2.42 1.65
Fully-diluted earnings per share ($) 1.60 2.40 1.64
(a) Except for per share amounts.
2.5 Consolidated statement of comprehensive income – quarterly
TotalEnergies
(unaudited)
(M$) 2(nd) quarter 2024 1(st) quarter 2024 2(nd) quarter 2023
Consolidated net income 3,847 5,804 4,152
Other comprehensive income
Actuarial gains and losses 22 (2) 135
Change in fair value of investments in equity instruments 103 40 (1)
Tax effect (11) (8) (43)
Currency translation adjustment generated by the parent company (683) (1,506) (57)
Sub-total items not potentially reclassifiable to profit and loss (569) (1,476) 34
Currency translation adjustment 523 1,099 (49)
Cash flow hedge 593 807 689
Variation of foreign currency basis spread – (15) 11
Share of other comprehensive income of equity affiliates, net amount (38) (76) 3
Other (2) 2 (4)
Tax effect (153) (219) (136)
Sub-total items potentially reclassifiable to profit and loss 923 1,598 514
Total other comprehensive income (net amount) 354 122 548
Comprehensive income 4,201 5,926 4,700
– TotalEnergies share 4,134 5,870 4,676
– Non-controlling interests 67 56 24
2.6 Consolidated balance sheet
TotalEnergies
(M$) June 30, 2024 (unaudited) March 31, 2024 (unaudited) December 31, 2023 June 30, 2023 (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,477 33,193 33,083 31,717
Property, plant and equipment, net 109,403 109,462 108,916 104,174
Equity affiliates: investments and loans 32,800 31,256 30,457 30,425
Other investments 1,740 1,895 1,543 1,190
Non-current financial assets 2,469 2,308 2,395 2,494
Deferred income taxes 3,568 3,165 3,418 3,649
Other non-current assets 4,235 4,328 4,313 2,573
Total non-current assets 187,692 185,607 184,125 176,222
Current assets
Inventories, net 20,189 20,229 19,317 18,785
Accounts receivable, net 20,647 24,198 23,442 22,163
Other current assets 20,014 20,615 20,821 23,111
Current financial assets 6,823 6,319 6,585 6,725
Cash and cash equivalents 23,211 25,640 27,263 25,572
Assets classified as held for sale 912 525 2,101 8,441
Total current assets 91,796 97,526 99,529 104,797
Total assets 279,488 283,133 283,654 281,019
LIABILITIES & SHAREHOLDERS’ EQUITY
Shareholders’ equity
Common shares 7,577 7,548 7,616 7,850
Paid-in surplus and retained earnings 130,688 129,937 126,857 123,511
Currency translation adjustment (14,415) (14,167) (13,701) (12,859)
Treasury shares (6,471) (4,909) (4,019) (4,820)
Total shareholders’ equity – TotalEnergies share 117,379 118,409 116,753 113,682
Non-controlling interests 2,648 2,734 2,700 2,770
Total shareholders’ equity 120,027 121,143 119,453 116,452
Non-current liabilities
Deferred income taxes 12,461 11,878 11,688 11,237
Employee benefits 1,819 1,941 1,993 1,872
Provisions and other non-current liabilities 20,295 20,961 21,257 21,295
Non-current financial debt 42,526 38,053 40,478 40,427
Total non-current liabilities 77,101 72,833 75,416 74,831
Current liabilities
Accounts payable 36,449 37,647 41,335 32,853
Other creditors and accrued liabilities 33,442 32,949 36,727 38,609
Current borrowings 11,271 17,973 9,590 15,542
Other current financial liabilities 461 481 446 443
Liabilities directly associated with the assets classified as held for sale 737 107 687 2,289
Total current liabilities 82,360 89,157 88,785 89,736
Total liabilities & shareholders’ equity 279,488 283,133 283,654 281,019
2.7 Consolidated statement of cash flow – half-yearly
TotalEnergies
(unaudited)
(M$) 1(st) half 2024 1(st) half 2023
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 9,651 9,783
Depreciation, depletion, amortization and impairment 6,116 6,382
Non-current liabilities, valuation allowances and deferred taxes 239 395
(Gains) losses on disposals of assets (1,428) (322)
Undistributed affiliates’ equity earnings 38 34
(Increase) decrease in working capital (3,673) (1,294)
Other changes, net 233 55
Cash flow from operating activities 11,176 15,033
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (7,119) (8,838)
Acquisitions of subsidiaries, net of cash acquired (1,010) (155)
Investments in equity affiliates and other securities (969) (1,929)
Increase in non-current loans (1,159) (755)
Total expenditures (10,257) (11,677)
Proceeds from disposals of intangible assets and property, plant and equipment 381 99
Proceeds from disposals of subsidiaries, net of cash sold 1,431 221
Proceeds from disposals of non-current investments 90 182
Repayment of non-current loans 330 340
Total divestments 2,232 842
Cash flow used in investing activities (8,025) (10,835)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
– Parent company shareholders 521 383
– Treasury shares (4,013) (4,105)
Dividends paid:
– Parent company shareholders (3,756) (3,686)
– Non-controlling interests (133) (126)
Net issuance (repayment) of perpetual subordinated notes (1,622) (1,081)
Payments on perpetual subordinated notes (209) (238)
Other transactions with non-controlling interests (36) (99)
Net issuance (repayment) of non-current debt 4,361 104
Increase (decrease) in current borrowings (1,917) (5,385)
Increase (decrease) in current financial assets and liabilities (259) 2,384
Cash flow from (used in) financing activities (7,063) (11,849)
Net increase (decrease) in cash and cash equivalents (3,912) (7,651)
Effect of exchange rates (140) 197
Cash and cash equivalents at the beginning of the period 27,263 33,026
Cash and cash equivalents at the end of the period 23,211 25,572
2.8 Consolidated statement of cash flow – quarterly
TotalEnergies
(unaudited)
(M$) 2(nd) quarter 2024 1(st) quarter 2024 2(nd) quarter 2023
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 3,847 5,804 4,152
Depreciation, depletion, amortization and impairment 3,080 3,036 3,195
Non-current liabilities, valuation allowances and deferred taxes (53) 292 81
(Gains) losses on disposals of assets 182 (1,610) (70)
Undistributed affiliates’ equity earnings (250) 288 383
(Increase) decrease in working capital 2,013 (5,686) 2,125
Other changes, net 188 45 34
Cash flow from operating activities 9,007 2,169 9,900
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (3,699) (3,420) (3,870)
Acquisitions of subsidiaries, net of cash acquired (251) (759) (19)
Investments in equity affiliates and other securities (481) (488) (522)
Increase in non-current loans (621) (538) (366)
Total expenditures (5,052) (5,205) (4,777)
Proceeds from disposals of intangible assets and property, plant and equipment 44 337 31
Proceeds from disposals of subsidiaries, net of cash sold 213 1,218 38
Proceeds from disposals of non-current investments 56 34 133
Repayment of non-current loans 181 149 102
Total divestments 494 1,738 304
Cash flow used in investing activities (4,558) (3,467) (4,473)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
– Parent company shareholders 521 – 383
– Treasury shares (2,007) (2,006) (2,002)
Dividends paid:
– Parent company shareholders (1,853) (1,903) (1,842)
– Non-controlling interests (127) (6) (105)
Net issuance (repayment) of perpetual subordinated notes (1,622) – (1,081)
Payments on perpetual subordinated notes (50) (159) (80)
Other transactions with non-controlling interests (19) (17) (13)
Net issuance (repayment) of non-current debt 4,319 42 (14)
Increase (decrease) in current borrowings (5,453) 3,536 (4,111)
Increase (decrease) in current financial assets and liabilities (530) 271 990
Cash flow from (used in) financing activities (6,821) (242) (7,875)
Net increase (decrease) in cash and cash equivalents (2,372) (1,540) (2,448)
Effect of exchange rates (57) (83) 35
Cash and cash equivalents at the beginning of the period 25,640 27,263 27,985
Cash and cash equivalents at the end of the period 23,211 25,640 25,572
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, 2023 2,619,131,285 8,163 123,951 (12,836) (137,187,667) (7,554) 111,724 2,846 114,570
Net income of the first half 2023 – – 9,645 – – – 9,645 138 9,783
Other comprehensive income – – 1,576 5 – – 1,581 (50) 1,531
Comprehensive Income – – 11,221 5 – – 11,226 88 11,314
Dividend – – (3,868) – – – (3,868) (126) (3,994)
Issuance of common shares 8,002,155 22 361 – – – 383 – 383
Purchase of treasury shares – – – – (66,647,852) (4,705) (4,705) – (4,705)
Sale of treasury shares((a)) – – (396) – 6,461,256 396 – – –
Share-based payments – – 172 – – – 172 – 172
Share cancellation (128,869,261) (335) (6,708) – 128,869,261 7,043 – – –
Net issuance (repayment) of perpetual subordinated notes – – (1,107) – – – (1,107) – (1,107)
Payments on perpetual subordinated notes – – (151) – – – (151) – (151)
Other operations with non-controlling interests – – 39 (28) – – 11 (38) (27)
Other items – – (3) – – – (3) – (3)
As of June 30, 2023 2,498,264,179 7,850 123,511 (12,859) (68,505,002) (4,820) 113,682 2,770 116,452
Net income of the second half 2023 – – 11,739 – – – 11,739 (12) 11,727
Other comprehensive income – – 411 (842) – – (431) 7 (424)
Comprehensive Income – – 12,150 (842) – – 11,308 (5) 11,303
Dividend – – (3,743) – – – (3,743) (185) (3,928)
Issuance of common shares – – – – – – – – –
Purchase of treasury shares – – – – (78,052,725) (4,462) (4,462) – (4,462)
Sale of treasury shares((a)) – – – – 2,170 – – – –
Share-based payments – – 119 – – – 119 – 119
Share cancellation (86,012,344) (234) (5,029) – 86,012,344 5,263 – – –
Net issuance (repayment) of perpetual subordinated notes – – – – – – – – –
Payments on perpetual subordinated notes – – (143) – – – (143) – (143)
Other operations with non-controlling interests – – (9) – – – (9) 123 114
Other items – – 1 – – – 1 (3) (2)
As of December 31, 2023 2,412,251,835 7,616 126,857 (13,701) (60,543,213) (4,019) 116,753 2,700 119,453
Net income of the first half 2024 – – 9,508 – – – 9,508 143 9,651
Other comprehensive income – – 1,210 (714) – – 496 (20) 476
Comprehensive Income – – 10,718 (714) – – 10,004 123 10,127
Dividend – – (3,929) – – – (3,929) (133) (4,062)
Issuance of common shares 10,833,187 29 492 – – – 521 – 521
Purchase of treasury shares – – – – (58,719,028) (4,513) (4,513) – (4,513)
Sale of treasury shares((a)) – – (397) – 6,065,491 397 – – –
Share-based payments – – 356 – – – 356 – 356
Share cancellation (25,405,361) (68) (1,596) – 25,405,361 1,664 – – –
Net issuance (repayment) of perpetual subordinated notes – – (1,679) – – – (1,679) – (1,679)
Payments on perpetual subordinated notes – – (135) – – – (135) – (135)
Other operations with non-controlling interests – – – – – – – (36) (36)
Other items – – 1 – – – 1 (6) (5)
As of June 30, 2024 2,397,679,661 7,577 130,688 (14,415) (87,791,389) (6,471) 117,379 2,648 120,027
(a) Treasury shares related to the performance share grants.
2.10 Notes to the Consolidated Financial Statements for the first six months
2024 (unaudited)
1) Basis of preparation of the consolidated financial statements
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, 2024, 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, 2024, are consistent with those used for the financial statements at
December 31, 2023.
The preparation of financial statements in accordance with IFRS for the
closing as of June 30, 2024 requires the General 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 General
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, 2023.
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 General 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
Exploration & Production
In February 2024, TotalEnergies and its partner SOCAR (State Oil Company of
the Republic of Azerbaijan) have completed the sale of 15% interest each in
the Absheron gas field to ADNOC (Abu Dhabi National Oil Company). Following
the completion of this transaction, TotalEnergies holds a 35% stake in the
Absheron gas field alongside SOCAR (35%) and ADNOC (30%).
Integrated Power
In February 2024, TotalEnergies has finalized the acquisition of three
gas-fired power plants with a total capacity of 1.5 GW in Texas from TexGen, a
U.S.-based company for a net investment of $635 million.
Marketing & services
In January 2024, TotalEnergies has finalized the partial divestment of retail
network in Belgium and Luxembourg and the full divestment in the Netherlands
to Alimentation Couche-Tard for 1.4 billion dollars.
2.2) MAJOR BUSINESS COMBINATIONS
integrated power
Acquisition of 1.5 GW Power Generation Capacity in Texas
In accordance with IFRS 3 “Business combinations”, TotalEnergies is
assessing the fair value of identifiable acquired assets, liabilities and
contingent liabilities on the basis of available information. A preliminary
purchase price allocation has been done in the first quarter after the closing
and will be finalized within 12 months following the acquisition date.
2.3) MAJOR DIVESTMENT PROJECTS
Exploration & Production
TotalEnergies announces that its 85%-owned affiliate, TotalEnergies EP Congo,
has signed an agreement with Trident Energy combining the acquisition of an
additional 10% interest in the Moho license from Trident Energy and the sale
to Trident Energy of its 53.5% interest in the Nkossa and Nsoko II licenses.
As of June 30, 2024, the assets and liabilities related to Nkossa and Nsoko II
licenses have been respectively classified in the consolidated balance sheet
as “assets classified as held for sale” for an amount of $432 million and
“liabilities classified as held for sale” for an amount of $302 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 TotalEnergies, 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 for transactions between business segments approximate market
prices.
The reporting structure for the business segments’ financial information is
based on the following five business segments:
* An Exploration & Production segment that encompasses the activities of
exploration and production of oil and natural gas, conducted in about 50
countries;
* An Integrated LNG segment covering the integrated gas chain (including
upstream and midstream LNG activities) as well as biogas, hydrogen and gas
trading activities;
* An Integrated Power segment covering generation, storage, electricity trading
and B2B-B2C distribution of gas and electricity;
* 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.
DEFINITION OF THE INDICATORS
Adjusted Net Operating Income
TotalEnergies measures performance at the segment level on the basis of
adjusted net operating income. Adjusted net operating income comprises
operating income of the relevant segment after deducting the amortization and
the depreciation of intangible assets other than mineral interest, translation
adjustments and gains or losses on the sale of assets, as well as all other
income and expenses related to capital employed (dividends from
non-consolidated companies, income from equity affiliates and capitalized
interest expenses) and after income taxes applicable to the above, excluding
the effect of the adjustments describe below.
The income and expenses not included in net operating income adjusted that are
included in net income TotalEnergies share are interest expenses related to
net financial debt, after applicable income taxes (net cost of net debt),
non-controlling interests, and the adjusted items.
Adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions
qualifying as "special items" are excluded from the business segment figures.
In general, special items relate to transactions that are significant,
infrequent or unusual. However, in certain instances, transactions such as
restructuring costs or assets disposals, which are not considered to be
representative of the normal course of business, may qualify as special items
although they may have occurred in prior years or are likely to occur in
following years.
(ii) The inventory valuation effect
In accordance with IAS 2, TotalEnergies values inventories of petroleum
products in its financial statements according to the First-in, First-Out
(FIFO) method and other inventories using the weighted-average cost method.
Under the FIFO method, the cost of inventory is based on the historic cost of
acquisition or manufacture rather than the current replacement cost. In
volatile energy markets, this can have a significant distorting effect on the
reported income. Accordingly, the adjusted results of the Refining &
Chemicals and Marketing & Services segments are presented according to the
replacement cost method. This method is used to assess the segments’
performance and facilitate the comparability of the segments’ performance
with those of its main competitors.
In the replacement cost method, which approximates the Last-In, First-Out
(LIFO) method, the variation of inventory values in the statement of income
is, depending on the nature of the inventory, determined using either the
month-end prices differential between one period and another or the average
prices of the period rather than the historical value. The inventory valuation
effect is the difference between the results under the FIFO and the
replacement cost method.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects
for trading inventories and storage contracts, differences between internal
measures of performance used by TotalEnergies’ Executive Committee and the
accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using
period end spot prices. In order to best reflect the management of economic
exposure through derivative transactions, internal indicators used to measure
performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, whose
future effects are recorded at fair value in TotalEnergies’ internal
economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage
certain operational contracts or assets. Under IFRS, these derivatives are
recorded at fair value while the underlying operational transactions are
recorded as they occur. Internal indicators defer the fair value on
derivatives to match with the transaction occurrence.
3.1) INFORMATION BY BUSINESS SEGMENT
1(st) half 2024 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 2,734 4,645 11,546 49,049 42,029 18 – 110,021
Intersegment sales 19,531 5,606 1,159 16,346 433 140 (43,215) –
Excise taxes – – – (378) (8,577) – – (8,955)
Revenues from sales 22,265 10,251 12,705 65,017 33,885 158 (43,215) 101,066
Operating expenses (9,113) (7,706) (12,071) (62,535) (32,697) (547) 43,215 (81,454)
Depreciation, depletion and impairment of tangible assets and mineral (3,824) (631) (202) (792) (414) (55) – (5,918)
interests
Net income (loss) from equity affiliates and other items 238 1,021 (589) 55 1,396 56 – 2,177
Tax on net operating income (4,424) (535) (119) (315) (209) 32 – (5,570)
Adjustments((a)) (75) 26 (1,389) (171) 1,327 (13) – (295)
Adjusted net operating income 5,217 2,374 1,113 1,601 634 (343) – 10,596
Adjustments((a)) (295)
Net cost of net debt (650)
Non-controlling interests (143)
Net income – TotalEnergies share 9,508
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) half 2024 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 4,991 1,409 2,508 878 403 68 – 10,257
Total divestments 455 79 323 165 1,203 7 – 2,232
Cash flow from operating activities 8,125 2,141 1,398 (588) 1,542 (1,442) – 11,176
1(st) half 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 3,388 6,892 14,804 49,704 44,071 15 – 118,874
Intersegment sales 20,836 8,777 2,355 17,691 321 121 (50,101) –
Excise taxes – – – (415) (8,692) – – (9,107)
Revenues from sales 24,224 15,669 17,159 66,980 35,700 136 (50,101) 109,767
Operating expenses (9,924) (13,242) (16,165) (63,934) (34,459) (437) 50,101 (88,060)
Depreciation, depletion and impairment of tangible assets and mineral (4,183) (565) (98) (808) (465) (49) – (6,168)
interests
Net income (loss) from equity affiliates and other items 53 1,276 (320) 55 307 (38) – 1,333
Tax on net operating income (5,287) (342) (152) (512) (281) 23 – (6,551)
Adjustments((a)) (119) (606) (396) (841) 73 (40) – (1,929)
Adjusted net operating income 5,002 3,402 820 2,622 729 (325) – 12,250
Adjustments((a)) – – – – – – – (1,929)
Net cost of net debt – – – – – – – (538)
Non-controlling interests – – – – – – – (138)
Net income – TotalEnergies share – – – – – – – 9,645
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) half 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 6,621 1,821 2,041 714 415 65 – 11,677
Total divestments 57 94 298 60 329 4 – 842
Cash flow from operating activities 8,583 4,868 999 1,072 (8) (481) – 15,033
1(st) half 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 6,621 1,821 2,041 714 415 65 – 11,677
Total divestments 57 94 298 60 329 4 – 842
Cash flow from operating activities 8,583 4,868 999 1,072 (8) (481) – 15,033
2(nd) quarter 2024 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 1,416 1,986 4,464 24,516 21,358 3 – 53,743
Intersegment sales 9,796 2,111 369 8,203 164 77 (20,720) –
Excise taxes – – – (208) (4,352) – – (4,560)
Revenues from sales 11,212 4,097 4,833 32,511 17,170 80 (20,720) 49,183
Operating expenses (4,669) (2,922) (4,506) (31,647) (16,601) (318) 20,720 (39,943)
Depreciation, depletion and impairment of tangible assets and mineral (1,907) (310) (105) (416) (208) (30) – (2,976)
interests
Net income (loss) from equity affiliates and other items 141 526 26 (13) (84) 29 – 625
Tax on net operating income (2,163) (251) (79) (60) (101) (23) – (2,677)
Adjustments((a)) (53) (12) (333) (264) (203) (9) – (874)
Adjusted net operating income 2,667 1,152 502 639 379 (253) – 5,086
Adjustments((a)) (874)
Net cost of net debt (365)
Non-controlling interests (60)
Net income – TotalEnergies share 3,787
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
2(nd) quarter 2024 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 2,697 844 769 443 259 40 – 5,052
Total divestments 149 29 261 127 (78) 6 – 494
Cash flow from operating activities 4,535 431 1,647 1,541 1,650 (797) – 9,007
2(nd) quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
External sales 1,434 2,020 6,249 24,849 21,712 7 – 56,271
Intersegment sales 10,108 2,778 670 8,630 201 64 (22,451) –
Excise taxes – – – (231) (4,506) – – (4,737)
Revenues from sales 11,542 4,798 6,919 33,248 17,407 71 (22,451) 51,534
Operating expenses (5,162) (3,797) (6,334) (32,042) (16,672) (276) 22,451 (41,832)
Depreciation, depletion and impairment of tangible assets and mineral (2,117) (277) (51) (394) (241) (26) – (3,106)
interests
Net income (loss) from equity affiliates and other items (15) 472 (250) 3 64 (17) – 257
Tax on net operating income (1,889) (137) (41) (187) (162) (40) – (2,456)
Adjustments ((a)) 10 (271) (207) (376) (53) (40) – (937)
Adjusted net operating income 2,349 1,330 450 1,004 449 (248) – 5,334
Adjustments ((a)) – – – – – – – (937)
Net cost of net debt – – – – – – – (245)
Non-controlling interests – – – – – – – (64)
Net income – TotalEnergies share – – – – – – – 4,088
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
2(nd) quarter 2023 Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Intercompany Total
(M$)
Total expenditures 2,569 626 807 489 256 30 – 4,777
Total divestments 26 45 149 52 28 4 – 304
Cash flow from operating activities 4,047 1,332 2,284 1,923 665 (351) – 9,900
3.2) ADJUSTMENT ITEMS
The main adjustment items for 2024 are the following:
1. An “Inventory valuation effect” amounting to $(220) million in net
operating income for the Refining & Chemicals and Marketing & Services
segments;
2. An “Effect of changes in fair value” amounting to $(611) million in net
operating income for the Integrated LNG and Integrated Power segments;
3. “Asset impairment and provisions charges” of $(644) million in net
operating income of the Company’s minority stake in Sunpower and Maxeon,
based on their market value for the Integrated Power segment;
4. “Gains on disposals of assets” for an amount of $ 1,397 million in net
operating income generated in particular on the partial divestment of retail
network in Belgium and Luxembourg and the full divestment in the Netherlands
for the Marketing & Services segment. This amount includes the revaluation
of shares held and consolidated under the equity method in Belgium and
Luxemburg;
5. “Other items” amounted to $(206) million in net operating income mainly
consisting of the impacts of the contribution on inframarginal annuity in
France.
The detail of the adjustment items is presented in the table below.
Adjustments to Net Operating Income
(M$) Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Corporate Total
2(nd) quarter 2024 Inventory valuation effect – – – (263) (64) – (327)
Effect of changes in fair value – (12) (279) – – – (291)
Restructuring charges – – (11) – – – (11)
Asset impairment and provisions charges – – – – – – –
Gains (losses) on disposals of assets – – 29 – (139) – (110)
Other items (53) – (72) (1) – (9) (135)
Total (53) (12) (333) (264) (203) (9) (874)
2(nd) quarter 2023 Inventory valuation effect – – – (332) (45) – (377)
Effect of changes in fair value – (286) 175 – – – (111)
Restructuring charges – – (5) – – – (5)
Asset impairment and provisions charges (123) – (346) – – – (469)
Gains (losses) on disposals of assets – – – – – – –
Other items 133 15 (31) (44) (8) (40) 25
Total 10 (271) (207) (376) (53) (40) (937)
1(st) half 2024 Inventory valuation effect – – – (170) (50) – (220)
Effect of changes in fair value – 26 (637) – – – (611)
Restructuring charges – – (11) – – – (11)
Asset impairment and provisions charges – – (644) – – – (644)
Gains (losses) on disposals of assets (9) – 29 – 1,377 – 1,397
Other items (66) – (126) (1) – (13) (206)
Total (75) 26 (1,389) (171) 1,327 (13) (295)
1(st) half 2023 Inventory valuation effect – – – (659) (109) – (768)
Effect of changes in fair value – (617) 72 – – – (545)
Restructuring charges – – (5) – – – (5)
Asset impairment and provisions charges (123) – (346) (60) – – (529)
Gains (losses) on disposals of assets – – – – 203 – 203
Other items 4 11 (117) (122) (21) (40) (285)
Total (119) (606) (396) (841) 73 (40) (1,929)
4) Shareholders’ equity
TREASURY SHARES (TotalEnergies shares held directly by TotalEnergies SE)
December 31, 2023 June 30, 2024
Number of treasury shares 60,543,213 87,791,389
Percentage of share capital 2.51% 3.66%
At its meeting on February 6, 2024, the Board of Directors decided, following
the authorization of the Extraordinary Shareholder’s Meeting on May 25,
2022, to cancel 25 405 361 treasury shares bought back between August 25, 2023
and October 26, 2023.
DIVIDEND
The Shareholder’s Meeting of May 24, 2024 approved the distribution of an
ordinary dividend at €3.01 per share. The final dividend for fiscal year
2023 was paid according to the following timetable :
Dividend 2023 First interim Second interim Third interim Final
Amount € 0.74 € 0.74 € 0.74 € 0.79
Set date April 26, 2023 July 26, 2023 October 25, 2023 May 24, 2024
Ex-dividend date September 20, 2023 January 2, 2024 March 20, 2024 June 19, 2024
Payment date October 2, 2023 January 12, 2024 April 3, 2024 July 1, 2024
The Board of Directors, at its meeting on April 25, 2024, set the first
interim dividend for the fiscal year 2024 at €0.79 per share. The
ex-dividend date of this interim dividend will be September 25, 2024 and it
will be paid in cash on October 1(st), 2024.
Furthermore, the Board of Directors, at its meeting on July 24, 2024, set the
second interim dividend for the fiscal year 2024 at €0.79 per share, i.e. an
amount equal to the aforementioned first interim dividend. The ex-dividend
date of this interim dividend will be January 2, 2025 and it will be paid in
cash on January 6, 2025.
Dividend 2024 First interim Second interim
Amount €0.79 €0.79
Set date April 25, 2024 July 24, 2024
Ex-dividend date September 25, 2024 January 2, 2025
Payment date October 1, 2024 January 6, 2025
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 €1.51 per share for the 2(nd) quarter 2024 (€2.23 per share
for the 1(st )quarter 2024 and €1.51 per share for the 2(nd) quarter 2023).
Diluted earnings per share calculated using the same method amounted to
€1.51 per share for the 2(nd) quarter 2024 (€2.21 per share for the 1(st)
quarter 2024 and €1.51 per share for the 2(nd) quarter 2023).
Earnings per share are calculated after remuneration of perpetual subordinated
notes.
PERPETUAL SUBORDINATED NOTES
TotalEnergies SE has not issued any perpetual subordinated notes during the
first half of 2024.
On April 4(th), 2024, TotalEnergies SE has fully reimbursed the nominal amount
of €1,500 million of perpetual subordinated notes carrying a coupon of
1.750%, issued in April 2019, on their first call date.
OTHER COMPREHENSIVE INCOME
Detail of other comprehensive income is presented in the table below:
(M$) 1(st) half 2024 1(st) half 2023
Actuarial gains and losses 20 138
Change in fair value of investments in equity instruments 143 3
Tax effect (19) (51)
Currency translation adjustment generated by the parent company (2,189) 1,409
Sub-total items not potentially reclassifiable to profit and loss (2,045) 1,499
Currency translation adjustment 1,622 (1,299)
Unrealized gain/(loss) of the period 1,634 (1,381)
Less gain/(loss) included in net income 12 (82)
Cash flow hedge 1,400 1,891
Unrealized gain/(loss) of the period 1,346 1,699
Less gain/(loss) included in net income (54) (192)
Variation of foreign currency basis spread (15) 8
Unrealized gain/(loss) of the period (6) (8)
Less gain/(loss) included in net income 9 (16)
Share of other comprehensive income of equity affiliates, net amount (114) (95)
Unrealized gain/(loss) of the period (103) (84)
Less gain/(loss) included in net income 11 11
Other – (1)
Tax effect (372) (472)
Sub-total items potentially reclassifiable to profit and loss 2,521 32
Total other comprehensive income, net amount 476 1,531
Tax effects relating to each component of other comprehensive income are as
follows:
(M$) 1st half 2024 1(st) half 2023
Pre-tax amount Tax effect Net amount Pre-tax amount Tax effect Net amount
Actuarial gains and losses 20 12 32 138 (50) 88
Change in fair value of investments in equity instruments 143 (31) 112 3 (1) 2
Currency translation adjustment generated by the parent company (2,189) – (2,189) 1,409 – 1,409
Sub-total items not potentially reclassifiable to profit and loss (2,026) (19) (2,045) 1,550 (51) 1,499
Currency translation adjustment 1,622 – 1,622 (1,299) – (1,299)
Cash flow hedge 1,400 (376) 1,024 1,891 (470) 1,421
Variation of foreign currency basis spread (15) 4 (11) 8 (2) 6
Share of other comprehensive income of equity affiliates, net amount (114) – (114) (95) – (95)
Other – – – (1) – (1)
Sub-total items potentially reclassifiable to profit and loss 2,893 (372) 2,521 504 (472) 32
Total other comprehensive income 867 (391) 476 2,054 (523) 1,531
5) Financial debt
The Company has issued one senior bond across three tranches in the U.S.
markets during the first half of 2024:
* Tranche 1 at 5.150% issued by TotalEnergies Capital and maturing in April 2034
($1,250 million);
* Tranche 2 at 5.488% issued by TotalEnergies Capital and maturing in April 2054
($1,750 million);
* Tranche 3 at 5.638% issued by TotalEnergies Capital and maturing in April 2064
($1,250 million).
The Company has redeemed three senior bonds during the first half of 2024:
* 5.125% bond issued by TotalEnergies Capital in 2009 and maturing in March 2024
(€950 million);
* 3.700% bond issued by TotalEnergies Capital International in 2013 and maturing
in January 2024 ($1,000 million);
* 3.750% bond issued by TotalEnergies Capital International in 2014 and maturing
in April 2024 ($1,250 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 2024.
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.
LEGAL AND ARBITRATION PROCEEDINGS
– FERC
The Office of Enforcement of the US Federal Energy Regulatory Commission
(FERC) began in 2015 an investigation in connection with the natural gas
trading activities in the United States of TotalEnergies Gas & Power North
America, Inc. (TGPNA), a US subsidiary of TotalEnergies. The investigation
covered transactions made by TGPNA between June 2009 and June 2012 on the
natural gas market. TGPNA received a Notice of Alleged Violations from FERC on
September 21, 2015. On April 28, 2016, FERC issued an order to show cause to
TGPNA and two of its former employees, and to the Corporation and
TotalEnergies Gas & Power Ltd., regarding the same facts. The case was
remanded on July 15, 2021 to the FERC Administrative Judge for hearing and
consideration on the merits. TGPNA brought a claim to the U.S. District Court
for the District of Texas in December 2022 disputing the constitutionality of
FERC's administrative procedure; the U.S. District Court for the District of
Texas ordered a stay of the case in the course of 2023, pending decisions by
the U.S. Supreme Court in other cases involving similar constitutional issues.
On June 27, 2024, the U.S. Supreme Court confirmed that the constitution
guarantees respondents with the right to a jury trial in this type of
administrative procedure and the competence of the U.S. District Court. TGPNA
contests the claims brought against it.
– Disputes relating to Climate
In France, the Corporation was summoned in January 2020 before Nanterre’s
Civil Court of Justice by certain associations and local communities in order
to oblige the Company to complete its Vigilance Plan, by identifying in detail
risks relating to a global warming above 1.5 °C, as well as indicating the
expected amount of future greenhouse gas emissions related to the Company's
activities and its product utilization by third parties and in order to obtain
an injunction ordering the Corporation to cease exploration and exploitation
of new oil or gas fields, to reduce its oil and gas production by 2030 and
2050, and to reduce its net direct and indirect CO(2) emissions by 40% in 2040
compared with 2019. This action was declared inadmissible on July 6, 2023, by
the Paris Civil Court of Justice to which the case was transferred following a
new procedural law. All the claimants appealed this decision before the Paris
Court of Appeal, which struck out 17 out of the 22 plaintiffs on June 18,
2024, and declined to awards any provisional measures. The other demands are
judged as admissible and will now be transferred before the Paris Civil Court
of Justice for trial on the merits. TotalEnergies considers that it has
fulfilled its obligations under the French law on the vigilance duty. A new
action against the Company, with similar requests for injunction, has started
in March 2024 before the commercial court of Tournai in Belgium. Several
associations in France brought civil and criminal actions against
TotalEnergies, with the purpose of proving that since May 2021 – after the
change of name of TotalEnergies – the Corporation’s corporate
communication and its publicity campaign contain environmental claims that are
either false or misleading for the consumer. TotalEnergies considers that
these accusations are unfounded.
In France, on July 4, 2023, nine shareholders (two companies and 7 individuals
holding a small number of the Corporation's shares) brought an action against
the Corporation before the Nanterre Commercial Court, seeking the annulment of
resolution no. 3 passed by the Corporation's Annual Shareholders’ Meeting on
May 26, 2023, recording the results for fiscal year 2022 and setting the
amount of the dividend to be distributed for fiscal year 2022. The plaintiffs
essentially allege an insufficient provision for impairment of the Company's
assets in the financial statements for the fiscal year 2022, due to the
insufficient consideration of future risks and costs related to the
consequences of greenhouse gas emissions emitted by its customers (scope 3)
and carbon cost assumptions presented as too low. The Corporation considers
this action to be unfounded.
In the United States, US subsidiaries of TotalEnergies (TotalEnergies EP USA,
Inc., TotalSpecialties USA, Inc. and TotalEnergies Marketing USA, Inc.) were
summoned, amongst many companies and professional associations, in several
"climate litigation" cases, seeking to establish legal liability for past
greenhouse gas emissions, and to compensate plaintiff public authorities, in
particular for resulting adaptation costs. The Corporation was summoned, along
with these subsidiaries, in three of these litigations. The Corporation and
its subsidiaries consider that the courts lack jurisdiction, and have many
arguments to put forward, and consider that the past and present behavior of
the Corporation and its subsidiaries does not constitute a fault susceptible
to give rise to liability.
– Russia
In France, two associations filed a simple complaint against the Company in
October 2022 with the National Anti-Terrorist Prosecutor’s Office, due to
the continuation of some of the Company’s activities in Russia since the
Russian invasion of Ukraine in 2022. The complaint, which the Corporation has
not been given access to, would accuse the Corporation – due to its 49%(1)
holding in Russian company Terneftegas, at that time 51%-owned by Novatek and
operated by said company – of complicity in war crimes committed by the
Russian Air Force in Ukraine, by aiding or assisting, through the supply of
kerosene to the Russian Air Force. The Corporation – which has no direct or
indirect activity vis-à-vis the sale of kerosene in Russia – has strongly
rejected these accusations, as unfounded in both law and fact(2).
The complaint was dismissed by the National Anti-Terrorist Prosecutor's Office
in early January 2023.
The plaintiffs later lodged a new identical complaint in March 2023 with the
application to join the proceedings as a civil party. In June 2023, the
National Anti-Terrorist Prosecutor’s Office recommended a dismissal. The
Company learned in April 2024 that the Elder Magistrate in charge of criminal
matters had decided on October 19, 2023 the dismissal of the complaint.
– Mozambique
In France, victims and heirs of deceased persons filed a complaint against the
Company in October 2023 with the Nanterre Prosecutor, following the events
perpetrated by terrorists in the city of Palma in March 2021. This complaint
would allege that the Corporation is liable for “unvoluntary manslaughter”
and, “failure to assist people in danger”. The Corporation considers these
accusations as unfounded in both law and fact(3).
– Kazakhstan
On April 1(st), 2024, the Republic of Kazakhstan filed a Statement of Claims
in the context of an arbitration involving TotalEnergies EP Kazakhstan and its
partners under the production sharing contract related to the North Caspian
Sea. TotalEnergies EP Kazakhstan and its partners consider this action to be
unfounded. Therefore, it is not possible at this date to reliably assess the
potential consequences of this claim, particularly financial ones, nor the
date of their implementation.
8) Subsequent events
There are no post-balance sheet events that could have a material impact on
the Company’s financial statements.
TotalEnergies SE Financial Report first half 2024
Registered office:
Published in July 2024
2, place Jean Millier – La Défense 6
Produced by Acolad France
92400 Courbevoie – France
Reception:
+33 (0)1 47 44 45 46
Investor Relations:
+33 (0)1 47 44 46 46
Individual Shareholders Relations:
0800 039 039 from France
+33 (0) 1 47 44 24 02 from other countries
Share capital:€5,994,199,152.50
542 051 180 RCS Nanterre
Notes related to the Glossary :
(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 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.
Notes related to the Half year financial report :
* Designates TotalEnergies SE and the companies in which TotalEnergies holds
more that 50% of the share capital and which are directly and indirectly
controlled by TotalEnergies SE or under joint control, with the exception of a
limited number of companies co-managed with other oil players, as well as
those registered or incorporated in a country under economic sanctions.
(1) Certain transactions referred to in the highlights are subject to approval
by authorities or to conditions as per the agreements.
(2) Refer to Glossary page 4 for the definitions and further information on
alternative performance measures (Non-GAAP measures) and to page 24 and
following for reconciliation tables
(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) Average €-$ exchange rate: 1.0767 in the 2nd quarter 2024, 1.0858 in the
1st quarter 2024, 1.0887 in the 2nd quarter 2023, 1.0813 in the 1st half 2024
and 1.0807 in the 1st half 2023.
(6) Does not include oil, gas and LNG trading activities, respectively.
(7) Sales in $ / Sales in volume for consolidated affiliates.
(8) Sales in $ / Sales in volume for consolidated affiliates.
(9) Sales in $ / Sales in volume for consolidated and equity affiliates.
(10) This market indicator for European refining, calculated based on public
market prices ($/t), uses a basket of crudes, petroleum product yields and
variable costs representative of the European refining system of
TotalEnergies.
(11) The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O,
HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as
described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent
from the Company’s emissions or are considered as non-material and are
therefore not counted.
(12) Scope 1+2 GHG emissions of operated facilities are defined as the sum of
direct emissions of greenhouse gases from sites or activities that are
included in the scope of reporting (as defined in the Company’s 2023
Universal Registration Document) and indirect emissions attributable to
brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H2).
(13) TotalEnergies reports Scope 3 GHG emissions, category 11, which
correspond to indirect GHG emissions related to the end use of energy products
sold to the Company’s customers, i.e., from their combustion, i.e.,
combustion of the products to obtain energy. The Company follows the oil &
gas industry reporting guidelines published by IPIECA, which comply with the
GHG Protocol methodologies. In order to avoid double counting, this
methodology accounts for the largest volume in the oil, biofuels and gas value
chains, i.e., the higher of the two production volumes or sales. The highest
point for each value chain for 2024 will be evaluated considering realizations
over the full year, TotalEnergies gradually providing quarterly estimates.
(14) Company production = E&P production + Integrated LNG production.
(15) Effective tax rate = (tax on adjusted net operating income) / (adjusted
net operating income – income from equity affiliates – dividends received
from investments – impairment of goodwill + tax on adjusted net operating
income).
(16) Sensitivities are revised once per year upon publication of the previous
year’s fourth quarter results. Sensitivities are estimates based on
assumptions about TotalEnergies’ portfolio in 2024. Actual results could
vary significantly from estimates based on the application of these
sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals.
(17) In a 80 $/b Brent environment.
(18) End-of-period data.
(19) Includes 20% of the gross capacities of Adani Green Energy Limited, 50%
of Clearway Energy Group and 49% of Casa dos Ventos.
(20) End-of-period data.
Notes related to the Consolidated Financial Statements as of June 30, 2024 :
(1 )The sale by the Company of the 49% interest in Terneftegaz announced by
the Company on July 18, 2022 was finalized on September 15, 2022.
(2) Refer to the press release published by the Company on August 24, 2022
contesting the accusations made by French newspaper Le Monde.
(3) Refer to the press release published by the Company on October 11, 2023
contesting the accusations.
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