REG-TotalEnergies SE TotalEnergies: Third Quarter 2022: Main Indicators

TotalEnergies SEAnnouncement

14/10/2022 08:15

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TotalEnergies: Third Quarter 2022: Main Indicators

 

The main indicators and key elements affecting TotalEnergies’ (Paris:TTE)
(LSE:TTE) (NYSE:TTE) third quarter 2022 results are shown below:
 Main indicators                                                                                                 
                                                               3Q22       2Q22       1Q22       4Q21       3Q21  
 €/$                                                           1.01       1.06       1.12       1.14       1.18  
 Brent                                           ($/b)         100.8      113.9      102.2      79.8       73.5  
 Average liquids price* ((1))                    ($/b)         93.6       102.9      90.1       72.6       67.1  
 Average gas price* ((1))                        ($/Mbtu)      16.83      11.01      12.27      11.38      6.33  
 Average LNG price** ((1))                       ($/Mbtu)      21.51      13.96      13.60      13.12      9.10  
 Variable Cost Margin, European refining***      ($/t)         99.2       145.7      46.3       16.7       8.8   


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

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

*** This indicator represents the average margin on variable costs realized by
TotalEnergies’ European refining business (equal to the difference between
the sales of refined products realized by TotalEnergies’ European refining
and the crude purchases as well as associated variable costs, divided by
refinery throughput in tons).

((1) )Does not take into account oil, gas and LNG trading activities,
respectively.

Main factors impacting the adjusted results of the quarter


 * LNG assets performance is expected to increase strongly as a result of higher
average LNG price, up 50%.

 * Performance of the gas, LNG and power trading activities is expected to remain
high, our integrated portfolio enabling to capture opportunities in a volatile
and dislocated environment.

 * Upstream production is expected to be 70 kboe/d lower than in Q2, mainly due
to unplanned outages in Kashagan.

 * Refining & Chemicals results are expected to remain high thanks to strong
distillate margins, albeit lower than the previous quarter due to the decrease
in gasoline margins in Europe and in the US.
 2022 sensitivities*                                                                                           
                                                Change             Estimated impact on    Estimated impact on  
                                                                   adjusted               cash flow from       
                                                                   net operating income   operations           
 Dollar                                         +/- 0.1 $ per €    -/+ 0.1 B$             ~0 B$                
 Average liquids price**                        +/- 10 $/b         +/- 2.7 B$             +/- 3.2 B$           
 European gas price - NBP / TTF***              +/- 2 $/Mbtu       +/- 0.5 B$             +/- 0.5 B$           
 Variable cost margin, European refining (VCM)  +/- 10 $/t         +/- 0.4 B$             +/- 0.5 B$           


* Sensitivities are revised once per year upon publication of the previous
year’s fourth quarter results. Sensitivities are estimates based on
assumptions about TotalEnergies’ portfolio in 2022. Actual results could
vary significantly from estimates based on the application of these
sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals.

Sensitivity to European gas price has been exceptionally updated during this
quarter (see ***).

** In a 60 $/b Brent environment.

*** Updated sensitivity, including UK Energy Profits Levy.

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.

The data presented in this document is based on TotalEnergies’ internal
preliminary reporting and is not audited. This data is not intended to be a
comprehensive summary of all items that will affect TotalEnergies SE’s
results or to provide an estimate of the third quarter 2022 results. Actual
results may vary. To the extent permitted by law, TotalEnergies SE disclaims
all liability from the use of this data.

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

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

Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to
update publicly any forward-looking information or statement, objectives or
trends contained in this document whether as a result of new information,
future events or otherwise. The information on risk factors that could have a
significant adverse effect on TotalEnergies’ business, financial condition,
including its operating income and cash flow, reputation, outlook or the value
of financial instruments issued by TotalEnergies is provided in the most
recent version of the Universal Registration Document which is filed by
TotalEnergies SE with the French Autorité des Marchés Financiers and the
annual report on Form 20-F filed with the United States Securities and
Exchange Commission (“SEC”).

Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding certain adjustment items (i.e., special
items, inventory valuation effect and effect of changes in fair value)
-adjusted net operating income, adjusted net income). These indicators are
meant to facilitate the analysis of the financial performance of TotalEnergies
and the comparison of income between periods. They allow investors to track
the measures used internally to manage and measure the performance of
TotalEnergies. The adjusted results (adjusted net operating income, adjusted
net income) are defined as replacement cost results, adjusted for special
items, excluding the effect of changes in fair value. For further details on
the adjustment items, please refer to the last published earnings statement
and notes to the consolidated financial statements.



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