REG-TotalEnergies SE Russia: TotalEnergies Decides to Withdraw Its Directors From Novatek And Will No Longer Equity Account for Its Stake in Novatek and Record a 3.7 b$ Impairment in Q4

TotalEnergies SEAnnouncement

09/12/2022 09:00

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Russia: TotalEnergies Decides to Withdraw Its Directors From Novatek And Will
No Longer Equity Account for Its Stake in Novatek and Record a 3.7 b$
Impairment in Q4

 

Further to its principles of conduct defined for its activities in relation to
Russia, published on March 22, 2022, TotalEnergies (Paris:TTE) (LSE:TTE)
(NYSE:TTE) has gradually started to withdraw from its Russian assets while
ensuring that it continues to supply gas to Europe.

TotalEnergies holds a 19.4% stake in the company Novatek, a stake that it
cannot sell given the prevailing shareholders’ agreements, as it is
forbidden for TotalEnergies to sell any asset to one of Novatek's main
shareholders who is under sanction.

In view of the European sanctions in force since the beginning of the war, the
two directors representing TotalEnergies on the board of directors of Novatek
are led to abstain from voting in meetings of the board of directors of this
company, in particular on financial matters. They are therefore no longer in a
position to fully carry out their duties on the board which might become an
issue for the governance of this company.

Under these circumstances, the Board of Directors of TotalEnergies has decided
to withdraw the representatives of the Company from the board of PAO Novatek
with immediate effect.

As a result, the criteria for significant influence no longer being met within
the meaning of the accounting regulations that apply to the Company,
TotalEnergies will no longer equity account for its 19.4% stake in Novatek in
the Company's accounts.

This will lead to record an impairment of approximately $3.7 billion in the
accounts for the 4th quarter of 2022. In addition, TotalEnergies will no
longer book reserves for its interest in Novatek, with an impact on the
Company's reported proved reserves at the end of 2021 of 1.7 billion of
barrels. However, the life duration of the Company's proved reserves will
remain above 11 years of production.

***

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in more than 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

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TotalEnergies Contacts

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Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)

Cautionary Note

This press release, from which no legal consequences may be drawn, is for
information purposes only. The entities in which TotalEnergies SE directly or
indirectly owns investments are separate legal entities. TotalEnergies SE has
no liability for their acts or omissions. The terms “Company” or
“TotalEnergies company” refer collectively to the company TotalEnergies SE
and the companies it controls directly or indirectly. Such terms are used
solely for the sake of convenience for purposes of the present communication.
Likewise, the words “we”, “us” and “our” may also be used to refer
to subsidiaries in general or to those who work for them. This document may
contain forward-looking information and statements that are based on a number
of economic data and assumptions made in a given economic, competitive and
regulatory environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TotalEnergies SE nor any of its
subsidiaries assumes any obligation to update publicly any forward-looking
information or statement, objectives or trends contained in this document
whether as a result of new information, future events or otherwise.



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