REG-TotalEnergies SE TotalEnergies: Third Quarter 2023 Results
26/10/2023 11:15
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TotalEnergies: Third Quarter 2023 Results
TotalEnergies once again demonstrates the relevance of its strategy,
fully leveraging supportive energy prices
with increasing adjusted net income of 6.5 B$ and cash flow of 9.3 B$
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE):
3Q23 Change 9M23 Change
vs 2Q23
vs 9M22
Net income (TotalEnergies share) (B$) 6.7 +63% 16.3 -5%
Adjusted net income (TotalEnergies share)((1) )
- in billions of dollars (B$) 6.5 +30% 18.0 -37%
- in dollars per share 2.63 +32% 7.24 -34%
Adjusted EBITDA((1)) (B$) 13.1 +18% 38.3 -31%
Cash flow from operations 9.3 +10% 27.4 -25%
excluding working capital (CFFO)((1) )(B$)
Cash flow from operating activities (B$) 9.5 -4% 24.5 -41%
Gearing((1)) of 12.3% at September 30, 2023 vs.11.1% at June 30, 2023
Third 2023 interim dividend set at 0.74 €/share
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné,
met on October 25, 2023, to approve the third quarter 2023 financial
statements. On the occasion, Patrick Pouyanné said:
“While implementing its balanced transition strategy that combines Oil &
Gas and Integrated Power, TotalEnergies demonstrates once again this quarter
its ability to leverage a supportive price environment, generating adjusted
net income of $6.5 billion and return on average capital employed of over 20%.
Cash flow from operations (CFFO) increased to $9.3 billion in the third
quarter and totaled $27.4 billion in the first nine months of 2023.
In the Oil & Gas business, production at nearly 2.5 Mboe/d is up 5%
year-on-year, thanks to the start-up of several oil projects in Brazil (Mero
1), Nigeria (Ikike) and Iraq (Ratawi) and gas projects in Oman (Block 10) and
Azerbaijan (Absheron). During the quarter, confirmation of exploration
successes in Suriname and Namibia opened the way to new oil developments
contributing to future cash flow growth.
Exploration & Production delivered a strong quarter, with adjusted net
operating income and cash flow both increasing by $0.8 billion
quarter-to-quarter to $3.1 billion and $5.2 billion, respectively. Integrated
LNG confirms the robustness of its global integrated portfolio, with adjusted
net operating income of $1.3 billion and cash flow of $1.6 billion. Downstream
adjusted net operating income and cash flow increased sequentially to $1.8
billion and $2.2 billion, respectively, due to good availability of European
refining assets.
This quarter again demonstrates the relevance of TotalEnergies’ profitable
transition strategy. For the first time, Integrated Power adjusted net
operating income and cash flow both exceed $500 million. Year-to-date cash
flow at the end of the third quarter is close to $1.5 billion, in line with
Integrated Power’s objective to generate around $2 billion of cash flow in
2023. TotalEnergies commissioned its 1 GW Seagreen offshore wind farm, which
was delivered within budget, and its 380 MW Myrtle Solar project in the US,
which includes battery storage, and acquired 100% of Total Eren.
Based on the strength of both these results, the Board of Directors decided
the distribution of the third interim dividend for the 2023 financial year in
the amount of €0.74/share, up 7.25% year-on-year. Additionally, the Company
is executing a $9 billion share buyback program in 2023, as announced on
September 27. Year-to-date shareholder distribution is close to 43% at the end
of September, in line with the recently increased annual guidance of more than
40%.”
1. Highlights((2))
Multi-energy strategy
* Launch of GGIP in Iraq: effective entry in the producing Ratawi field on
August 16, 2023
* Partnership with SONATRACH to increase the production of the Tin Fouyé
Tabankort fields, extend to 2024 2 Mt/y of LNG deliveries in France, and
develop renewable energy projects in Algeria
* Partnership with Petrobras and Casa dos Ventos in renewable energies in Brazil
Upstream
* Production start-up of Absheron gas and condensate field, in Azerbaijan
* Acquisition of an interest in the Cash-Maple gas discoveries, in Australia, to
ensure long-term supply of Ichthys LNG
* Launch of development studies of a 200,000 b/d oil project in Block 58 in
Suriname with targeted FID at the end of 2024
* Closing of the sale of Surmont to ConocoPhillips for up to $3.3 billion and
disposal of other Canadian assets to Suncor for around $1.1 billion
* Sale to Petronas of a 40% interest in Block 20 in Angola
* Sale to ADNOC of a 15% interest in Absheron field in Azerbaijan
Downstream
* Start-up of a new polyethylene unit on the Baystar plant, in the US
Integrated LNG
* Signature of 27-year LNG offtake contracts with QatarEnergy LNG for 3.5 Mtpa
* Launch of the Rio Grande LNG project, in Texas: acquisition of a 16.67% stake
in the JV in charge of developing the 17.5 Mt/y project, acquisition of a
17.5% stake in NextDecade, and signature of a 5.4 Mt/y offtake agreement for
20 years
Integrated Power
* Commissioning of Myrtle Solar in the US, first large solar farm including
battery storage
* Signature with Saint-Gobain of a Power Purchase Agreement over 15 years, in
the US
* Commissioning of Seagreen in Scotland, the first offshore windfarm of the
Company
* Partial farm downs to Corio Generation and Rise Light & Power in a 3 GW
wind project offshore New York and New Jersey, in the US
* Agreement with European Energy to develop more than 4 GW of onshore renewable
projects
* Acquisition of a 50% interest in Rönesans Enerji to develop renewable
projects in Turkey
* Investment with AGEL in a joint venture in India with more than 1,400 MW of
renewable assets
* Award of a contract for the installation and operation of 1,100 EV HPC points
in Germany
Low carbon molecules
* Agreement with Air Liquide for the supply of green and low carbon hydrogen to
the Normandy platform
* Call for tenders launch for the supply of 500,000 t/y of green hydrogen to
decarbonize TotalEnergies’ European refining
* Acquisition of an interest in a CO2 storage exploration license, in Norway
* Circular economy: first conversion of plastic waste derived oil into certified
circular polymers, in Saudi Arabia, and FID of a new mechanical recycling unit
for plastic waste at Grandpuits biorefinery, in France
2. Key figures from TotalEnergies’ consolidated financial statements((1))
3Q23 2Q23 3Q22 3Q23 In millions of dollars, except effective tax rate, 9M23 9M22 9M23
vs earnings per share and number of shares
vs
3Q22
9M22
13,062 11,105 19,420 -33% Adjusted EBITDA ((1)) 38,334 55,581 -31%
6,808 5,582 10,279 -34% Adjusted net operating income from business segments 19,383 30,237 -36%
3,138 2,349 4,217 -26% Exploration & Production 8,140 13,951 -42%
1,342 1,330 3,413 -61% Integrated LNG 4,744 8,761 -46%
506 450 236 x2,1 Integrated Power 1,326 494 x2,7
1,399 1,004 1,935 -28% Refining & Chemicals 4,021 5,815 -31%
423 449 478 -12% Marketing & Services 1,152 1,216 -5%
662 662 2,576 -74% Contribution of equity affiliates to adjusted net income 2,403 6,381 -62%
33.4% 37.3% 44.1% Effective tax rate ((3)) 37.5% 40.8%
6,453 4,956 9,863 -35% Adjusted net income (TotalEnergies share)( (1)) 17,950 28,636 -37%
2.63 1.99 3.83 -31% Adjusted fully-diluted earnings per share (dollars) ((4)) 7.24 10.96 -34%
2.41 1.84 3.78 -36% Adjusted fully-diluted earnings per share (euros) ((5)) 6.68 10.31 -35%
2,423 2,448 2,560 -5% Fully-diluted weighted-average shares (millions) 2,448 2,589 -5%
6,676 4,088 6,626 +1% Net income (TotalEnergies share) 16,321 17,262 -5%
4,283 4,271 3,116 +37% Organic investments ((1)) 11,987 7,916 +51%
808 320 1,587 -49% Net acquisitions ((1)) 4,115 4,585 -10%
5,091 4,591 4,703 +8% Net investments ((1)) 16,102 12,501 +29%
9,340 8,485 11,736 -20% Cash flow from operations excluding working capital (CFFO) ((1)) 27,446 36,595 -25%
9,551 8,596 12,040 -21% Debt Adjusted Cash Flow (DACF) ((1)) 27,922 37,665 -26%
9,496 9,900 17,848 -47% Cash flow from operating activities 24,529 41,749 -41%
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment – liquids and gas price realizations, refining margins
3Q23 2Q23 3Q22 3Q23 9M23 9M22 9M23
vs
vs
3Q22
9M22
86.7 78.1 100.8 -14% Brent ($/b) 82.1 105.5 -22%
2.7 2.3 7.9 -66% Henry Hub ($/Mbtu) 2.6 6.7 -61%
10.6 10.5 42.5 -75% NBP ($/Mbtu) 12.4 32.4 -62%
12.5 10.9 46.5 -73% JKM ($/Mbtu) 13.3 34.9 -62%
78.9 72.0 93.6 -16% Average price of liquids ((6),(7)) ($/b) 74.9 95.4 -22%
Consolidated subsidiaries
5.47 5.98 16.83 -67% Average price of gas ((6),(8)) ($/Mbtu) 6.80 13.28 -49%
Consolidated subsidiaries
9.56 9.84 21.51 -56% Average price of LNG ((6),(9)) ($/Mbtu) 10.92 16.26 -33%
Consolidated subsidiaries and equity affiliates
95.1 42.7 99.3 -4% Variable cost margin - Refining Europe, VCM ((6),(10)) ($/t) 75.9 100.3 -24%
3.2 Greenhouse gas emissions ((11))
3Q23 2Q23 3Q22 3Q23 Scope 1+2 emissions (MtCO(2)e) 9M23 9M22 9M23
vs
vs
3Q22
9M22
8.5 9.1 10.3 -18% Scope 1+2 from operated facilities ((12)) 26.6 29.6 -10%
7.5 7.9 8.2 -9% of which Oil & Gas 23.1 24.2 -5%
1.0 1.1 2.1 -54% of which CCGT 3.6 5.4 -33%
12.1 12.5 14.0 -14% Scope 1+2 - equity share 37.4 41.4 -10%
Estimated 3Q23 and 2Q23 emissions.
Scope 1+2 emissions from operated installations were down 18% year-on-year in
the third quarter 2023, thanks to the continuous decline in flaring emissions
on Exploration & Production facilities and the decrease in the use of
gas-fired power plants in Europe.
3Q23 2Q23 3Q22 3Q23 Methane emissions (ktCH(4)) 9M23 9M22 9M23
vs
vs
3Q22
9M22
7 8 10 -30% Methane emissions from operated facilities 25 31 -19%
9 10 14 -32% Methane emissions - equity share 30 38 -21%
Estimated 3Q23 and 2Q23 emissions.
Scope 3 emissions (MtCO(2)e) 9M23 2022
Scope 3 from Oil, Biofuels and Gas Worldwide ((13)) est. 270 389
3.3 Production((14))
3Q23 2Q23 3Q22 3Q23 Hydrocarbon production 9M23 9M22 9M23
vs
vs
3Q22
9M22
2,476 2,471 2,669 -7% Hydrocarbon production (kboe/d) 2,490 2,750 -9%
1,399 1,416 1,298 +8% Oil (including bitumen) (kb/d) 1,404 1,291 +9%
1,077 1,055 1,371 -21% Gas (including condensates and associated NGL) (kboe/d) 1,086 1,459 -26%
2,476 2,471 2,669 -7% Hydrocarbon production (kboe/d) 2,490 2,750 -9%
1,561 1,571 1,494 +4% Liquids (kb/d) 1,565 1,501 +4%
4,921 4,845 6,367 -23% Gas (Mcf/d) 4,985 6,785 -27%
2,476 2,471 2,356 +5% Hydrocarbon production excluding Novatek (kboe/d) 2,490 2,425 +3%
Hydrocarbon production was 2,476 thousand barrels of oil equivalent per day
(kboe/d) in the third quarter 2023, up 5% year-on-year (excluding Novatek) and
comprised of:
* +5% due to start-ups and ramp-ups, including Absheron in Azerbaijan, Johan
Sverdrup Phase 2 in Norway, Mero 1 in Brazil, Ikike in Nigeria and Bloc 10 in
Oman
* +2% due to a decrease of planned maintenance, notably on Ichthys in Australia
and lower unplanned outages, notably at the Kashagan field in Kazakhstan
* +1% due to improved security conditions in Nigeria and Libya
* -3% due to natural field declines
Between the third quarters of 2022 and 2023, portfolio additions, such as
entry into SARB Umm Lulu in the United Arab Emirates, the Ratawi field in Iraq
and the increase in interest in Waha concessions in Libya, offset negative
portfolio changes such as the end of the Bongkot operating licenses in
Thailand and the exit from Termokarstovoye in Russia.
4. Analysis of business segments
4.1 Exploration & Production
4.1.1 Production
3Q23 2Q23 3Q22 3Q23 Hydrocarbon production 9M23 9M22 9M23
vs
vs
3Q22
9M22
2,043 2,033 2,251 -9% EP (kboe/d) 2,045 2,292 -11%
1,507 1,512 1,454 +4% Liquids (kb/d) 1,506 1,450 +4%
2,865 2,778 4,300 -33% Gas (Mcf/d) 2,885 4,569 -37%
2,043 2,033 1,988 +3% EP excluding Novatek (kboe/d) 2,045 2,023 1.1%
4.1.2 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars, except effective tax rate 9M23 9M22 9M23
vs
vs
3Q22
9M22
3,138 2,349 4,217 -26% Adjusted net operating income 8,140 13,951 -42%
125 149 377 -67% including adjusted income from equity affiliates 409 1,019 -60%
44.6% 49.7% 55.4% Effective tax rate ((15)) 50.7% 49.9%
2,557 2,424 1,989 +29% Organic investments( (1)) 7,115 5,288 +35%
(514) 176 (126) ns Net acquisitions ((1)) 1,600 2,415 -34%
2,043 2,600 1,863 +10% Net investments( (1)) 8,715 7,703 +13%
5,165 4,364 6,406 -19% Cash flow from operations excluding working capital (CFFO) ((1)) 14,436 21,092 -32%
4,240 4,047 9,083 -53% Cash flow from operating activities 12,823 23,619 -46%
Exploration & Production adjusted net operating income was $3,138 million
in the third quarter 2023 up 34% quarter-to-quarter, primarily driven by
higher oil prices and a lower effective tax rate due to the North Sea, which
carries higher tax rates, comprising a lower percentage of the overall
portfolio mix.
Cash flow from operations excluding working capital (CFFO) was $5,165 million
in the third quarter 2023, up 18% quarter-to-quarter, for the same reasons.
4.2 Integrated LNG
4.2.1 Production
3Q23 2Q23 3Q22 3Q23 Hydrocarbon production for LNG 9M23 9M22 9M23
vs
vs
3Q22
9M22
433 438 418 +4% Integrated LNG (kboe/d) 445 458 -3%
54 59 40 +37% Liquids (kb/d) 59 51 +15%
2,056 2,067 2,067 -1% Gas (Mcf/d) 2,100 2,216 -5%
433 438 368 +18% Integrated LNG excluding Novatek (kboe/d) 445 402 +11%
3Q23 2Q23 3Q22 3Q23 Liquefied Natural Gas in Mt 9M23 9M22 9M23
vs
vs
3Q22
9M22
10.5 11.0 10.4 - Overall LNG sales 32.5 35.4 -8%
3.7 3.6 4.0 -9% incl. Sales from equity production* 11.2 12.6 -11%
9.4 10.0 9.2 +2% incl. Sales by TotalEnergies from equity production and third 29.3 31.4 -7%
party purchases
* The Company’s equity production may be sold by TotalEnergies or by the
joint ventures.
Hydrocarbon production for LNG (excluding Novatek) stabilized
quarter-to-quarter and was up by 18% year-on-year mainly due to a planned
maintenance impacting production at Ichthys field in the third quarter 2022.
In the third quarter 2023, LNG sales stabilized year-on-year and decreased
quarter-to-quarter, due to the decrease in spot traded volumes in a less
volatile environment.
4.2.2 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,342 1,330 3,413 -61% Adjusted net operating income 4,744 8,761 -46%
385 432 1,828 -79% including adjusted income from equity affiliates 1,603 4,424 -64%
495 382 213 x2,3 Organic investments( (1)) 1,273 324 x3,9
84 205 (10) ns Net acquisitions ((1)) 1,048 (66) ns
579 587 203 x2,9 Net investments( (1)) 2,321 258 x9
1,648 1,801 2,492 -34% Cash flow from operations excluding working capital (CFFO) ((1)) 5,530 7,096 -22%
872 1,332 3,449 -75% Cash flow from operating activities 5,740 9,470 -39%
Integrated LNG adjusted net operating income was $1,342 million in the third
quarter 2023, down 53% year-on-year (excluding Novatek), mainly due to lower
LNG prices, as well as exceptional trading results in the third quarter 2022,
partially offset by higher production.
Cash flow from operations excluding working capital (CFFO) for Integrated LNG
was $1,648 million in the third quarter 2023, down 34% year-on-year (excluding
Novatek), mainly due to lower LNG prices, partially offset by the high margins
captured in 2022 on LNG cargoes to be delivered in 2023.
4.3 Integrated Power
4.3.1 Capacities, productions, clients and sales
3Q23 2Q23 3Q22 3Q23 Integrated Power 9M23 9M22 9M23
vs
vs
3Q22
9M22
8.9 8.2 8.5 +4% Net power production (TWh) * 25.5 23.7 +7%
5.4 4.2 2.4 x2,3 o/w power production from renewables 13.5 7.1 +90%
3.5 4.0 6.1 -43% o/w CCGT 12.0 16.6 -28%
15.9 13.2 11.7 +36% Portfolio of power generation net installed capacity (GW) ** 15.9 11.7 +36%
11.6 8.9 7.4 +57% o/w renewables 11.6 7.4 +57%
4.3 4.3 4.3 - o/w CCGT 4.3 4.3 -
80.5 74.7 67.8 +19% Portfolio of renewable power generation gross capacity (GW) **,*** 80.5 67.8 +19%
20.2 19.0 16.0 +26% o/w installed capacity 20.2 16.0 +26%
6.0 6.0 6.3 -5% Clients power - BtB and BtC (Million) ** 6.0 6.3 -5%
2.8 2.8 2.8 - Clients gas - BtB and BtC (Million) ** 2.8 2.8 -
11.2 11.5 12.1 -7% Sales power - BtB and BtC (TWh) 38.2 40.7 -6%
13.8 19.2 14.2 -2% Sales gas - BtB and BtC (TWh) 70.2 68.3 +3%
* Solar, wind, hydroelectric and combined-cycle gas turbine (CCGT) plants.
** End of period data.
*** Includes 20% of Adani Green Energy Ltd’s gross capacity effective first
quarter 2021, 50% of Clearway Energy Group’s gross capacity effective third
quarter 2022 and 49% of Casa dos Ventos’ gross capacity effective first
quarter 2023.
Net power production was 8.9 TWh in the third quarter 2023, up 7%
quarter-to-quarter, due to growing power generation from renewables following
the integration at 100% of Total Eren and the start-up of Myrtle Solar and
Danish Fields in the US.
Gross installed renewable power generation capacity reached more than 20 GW at
the end of the third quarter 2023, up by more than 1 GW quarter-to-quarter,
including 0.5 GW installed in the US (Myrtle Solar, Danish) and the connection
of 0.3 GW from the Seagreen offshore wind project in the UK.
4.3.2 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
506 450 236 x2,1 Adjusted net operating income 1,326 494 x2,7
37 23 60 -38% including adjusted income from equity affiliates 116 113 +3%
578 753 440 +31% Organic investments( (1)) 1,908 929 x2,1
1,354 (42) 1,728 -22% Net acquisitions ((1)) 1,831 2,367 -23%
1,932 711 2,168 -11% Net investments( (1)) 3,739 3,296 +13%
516 491 191 x2,7 Cash flow from operations excluding working capital (CFFO) ((1)) 1,447 532 x2,7
1,936 2,284 941 x2,1 Cash flow from operating activities 2,935 (795) ns
Integrated Power adjusted net operating income was $506 million and cash flow
from operations excluding working capital (CFFO) was $516 million in the third
quarter 2023, up 12% and 5% respectively quarter-to-quarter, due to the growth
in power generation from renewables and the performance of its profitable
Integrated Power model.
Cash flow from operating activities is $1,936 million in the third quarter
2023, due to the positive impact on working capital of the seasonality in the
gas and power marketing business.
4.4 Downstream (Refining & Chemicals and Marketing & Services)
4.4.1 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,822 1,453 2,413 -24% Adjusted net operating income 5,173 7,031 -26%
625 686 453 +38% Organic investments( (1)) 1,601 1,332 +20%
(115) (19) (6) ns Net acquisitions ((1)) (363) (131) ns
510 667 447 +14% Net investments( (1)) 1,238 1,201 +3%
2,205 2,085 2,944 -25% Cash flow from operations excluding working capital (CFFO) ((1)) 6,479 8,388 -23%
2,266 2,588 4,737 -52% Cash flow from operating activities 3,330 10,848 -69%
4.5 Refining & Chemicals
4.5.1 Refinery and petrochemicals throughput and utilization rates
3Q23 2Q23 3Q22 3Q23 Refinery throughput and utilization rate* 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,489 1,472 1,599 -7% Total refinery throughput (kb/d) 1,456 1,497 -3%
489 364 431 +14% France 404 359 +12%
589 601 656 -10% Rest of Europe 596 637 -6%
410 507 512 -20% Rest of world 456 501 -9%
84% 82% 88% Utilization rate based on crude only** 81% 84%
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year.
3Q23 2Q23 3Q22 3Q23 Petrochemicals production and utilization rate 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,330 1,157 1,299 +2% Monomers* (kt) 3,782 3,910 -3%
1,070 963 1,171 -9% Polymers (kt) 3,145 3,632 -13%
75% 67% 80% Steamcracker utilization rate** 72% 79%
* Olefins.
** Based on olefins production from steam crackers and their treatment
capacity at the start of the year.
Refining throughput was down 7% year-on-year in the third quarter 2023,
notably due to planned maintenance and unplanned shutdowns at the Port Arthur
refinery in the US and the Antwerp refinery in Belgium, despite an increase in
refinery throughput in France.
The utilization rate on processed crude increased sequentially over the
quarter to 84% thanks to higher availability of French refining.
4.5.2 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,399 1,004 1,935 -28% Adjusted net operating income 4,021 5,815 -31%
386 454 224 +72% Organic investments( (1)) 1,038 735 +41%
(97) (15) 1 ns Net acquisitions ((1)) (107) (33) ns
289 439 225 +28% Net investments( (1)) 931 702 +33%
1,618 1,329 2,164 -25% Cash flow from operations excluding working capital (CFFO) ((1)) 4,680 6,560 -29%
2,060 1,923 3,798 -46% Cash flow from operating activities 3,132 8,431 -63%
Refining & Chemicals adjusted net operating income was $1,399 million in
the third quarter 2023, up 39% quarter-to-quarter, reflecting higher refining
margins in Europe and a higher utilization rate.
Cash flow from operations excluding working capital (CFFO) was $1,618 million
in the third quarter 2023, up 22% quarter-to-quarter for the same reasons.
4.6 Marketing & Services
4.6.1 Petroleum product sales
3Q23 2Q23 3Q22 3Q23 Sales in kb/d* 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,399 1,397 1,495 -6% Total Marketing & Services sales 1,386 1,475 -6%
792 799 873 -9% Europe 783 827 -5%
608 598 622 -2% Rest of world 603 648 -7%
* Excludes trading and bulk refining sales.
Sales of petroleum products were down year-on-year by 6% in the third quarter
due to the portfolio effect linked to the disposal of 50% of the fuel
distribution business in Egypt, partially offset by the recovery in the
aviation business.
4.6.2 Results
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
423 449 478 -12% Adjusted net operating income 1,152 1,216 -5%
239 232 229 +4% Organic investments( (1)) 563 597 -6%
(18) (4) (7) ns Net acquisitions ((1)) (256) (98) ns
221 228 222 - Net investments( (1)) 307 499 -38%
587 756 780 -25% Cash flow from operations excluding working capital (CFFO) ((1)) 1,799 1,828 -2%
206 665 939 -78% Cash flow from operating activities 198 2,417 -92%
Marketing & Services adjusted net operating income was $423 million in the
third quarter 2023, down 12% year-on-year, due to lower sales.
Cash flow from operations excluding working capital (CFFO) decreased by 25%
year-on-year to $587 million in the third quarter 2023, negatively impacted by
the tax effect of higher prices on the valuation of petroleum product
inventories.
5. TotalEnergies results
5.1 Adjusted net operating income from business segments
Adjusted net operating income from business segments was:
* $6,808 million in the third quarter 2023, compared to $5,582 million in the
second quarter 2023, due to higher oil prices and refining margins and a lower
effective tax rate for Exploration-Production,
* $19,383 million in the first nine months of 2023, compared to $30,237 million
in the first nine months of 2022, due to lower prices of oil, gas and refining
margins.
5.2 Adjusted net income((1) )(TotalEnergies share)
TotalEnergies adjusted net income was $6,453 million in the third quarter 2023
versus $4,956 million in the second quarter 2023, mainly due to higher oil
prices and refining margins.
Adjustments to net income((1)) were $223 million in the third quarter 2023,
consisting mainly of:
* $1 billion of inventory and changes in fair value effects,
* ($0.6) billion related to asset impairments notably due to divestments
projects of Naphtachimie to INEOS and the Natref refinery in South Africa as
well as client portfolios-related goodwills from gas & power marketing
activities in Belgium, Spain and France.
TotalEnergies’ average tax rate was:
* 33.4% in the third quarter 2023 versus 37.3% in the second quarter 2023,
mainly as a result of the lower tax rate for Exploration & Production
related to the lower relative weight of highly taxed North Sea assets,
* 37.5% in the first nine months of 2023 versus 40.8% in the first nine months
of 2022, mainly as a result of the lower relative weight of Exploration &
Production in Company results, in line with oil and gas prices evolution.
5.3 Adjusted earnings per share
Adjusted diluted net earnings per share were:
* $2.63 in the third quarter 2023, based on 2,423 million weighted average
diluted shares, compared to $1.99 in the second quarter 2023,
* $7.24 in the first nine months of 2023, based on 2,448 million weighted
average diluted shares, compared to $10.96 a year earlier.
As of September 30, 2023, the number of diluted shares was 2,417 million.
As part of its shareholder return policy, TotalEnergies repurchased:
* 33.9 million shares for cancellation in the third quarter 2023 for $2.1
billion,
* 98.9 million shares for cancellation in the first nine months of 2023 for $6.1
billion.
5.4 Acquisitions – asset sales
Acquisitions were:
* $1,992 million in the third quarter 2023, mainly related to the acquisition of
the remaining 70.4% in Total Eren and the acquisition of an additional 12.4%
stake in NextDecade in line with the launch of Rio Grande LNG project in the
US,
* $5,730 million in the first nine months of 2023, mainly related to the above
items, as well as the acquisition of a 20% interest in the SARB and Umm Lulu
concession in the United Arab Emirates, the acquisition of a 6.25% stake in
the NFE LNG project and 9.375% in NFS LNG project in Qatar, and a 34% stake in
a joint venture with Casa dos Ventos in Brazil.
Divestments were:
* $1,184 million in the third quarter 2023, notably for the sale of a 40%
interest to ADNOC in Bloc 20 in Angola, of a number of non-conventional assets
in Argentina and a partial farm down in an offshore wind project of the coast
of New York and New Jersey in the US,
* $1,615 million in the first nine months of 2023, notably for the above items
as well as the sale of 50% of the Marketing & Services subsidiary in
Egypt.
5.5 Net cash flow((1))
TotalEnergies' net cash flow( )was:
* $4,249 million in the third quarter 2023 compared to $3,894 million in the
second quarter, reflecting the $856 million increase in CFFO offset partially
by the $500 million increase in net investments to $5,091 million in the third
quarter 2023,
* $11,344 million in the first nine months of 2023 compared to $24,094 million a
year earlier, reflecting the $9,149 million decrease in CFFO and the $3,601
million increase in net investments to $16,102 million in the first nine
months of 2023.
In the third quarter, cash flow from operating activities was $9,496 million,
versus $9,340 million of CFFO.
5.6 Profitability
Return on equity was 22.3% for the twelve months ended September 30, 2023.
In millions of dollars October 1, 2022 July 1, 2022 October 1, 2021
September 30, 2023 June 30, 2023 September 30, 2022
Adjusted net income ((1)) 25,938 29,351 35,790
Average adjusted shareholders' equity 116,529 116,329 113,861
Return on equity (ROE) 22.3% 25.2% 31.4%
Return on average capital employed((1)) was 20.1% for the twelve months ended
September 30, 2023.
In millions of dollars October 1, 2022 July 1, 2022 October 1, 2021
September 30, 2023 June 30, 2023 September 30, 2022
Adjusted net operating income ((1)) 27,351 30,776 37,239
Average capital employed ( (1)) 135,757 137,204 136,902
ROACE( (1)) 20.1% 22.4% 27.2%
6. TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, amounted to €8,388
million in first nine months of 2023, compared to €5,205 million in first
nine months of 2022.
7. Annual 2023 Sensitivities((16))
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 ((17)) +/- 10 $/b +/- 2.5 B$ +/- 3.0 B$
European gas price - NBP / TTF +/- 2 $/Mbtu +/- 0.4 B$ +/- 0.4 B$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$
8. Outlook
Oil prices remain buoyant at around $90/b at the beginning of the fourth
quarter, supported by OPEC+ actions on supply and a tense geopolitical
context. The 2 Mb/d increase in petroleum products this year is driven by
emerging countries, notably due to the recovery of the aviation sector and
demand from the petrochemical industry in China.
Despite entering the winter period with high natural gas inventories in
Europe, in a tense market, gas prices remain very reactive to production
disruptions.
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 above $10/Mbtu in the fourth quarter 2023.
TotalEnergies expects hydrocarbon production to range between 2.4 and 2.5
Mboe/d in the fourth quarter 2023, which reflects the impact of the sale of
its oil sands assets in Canada.
The utilization rate in refineries should be above 80% during the fourth
quarter 2023, with the restart of Port Arthur expected in mid-November.
In the fourth quarter 2023, TotalEnergies anticipates cash proceeds of around
$4.1 billion((18)) from the Canadian assets divestments, which could bring
back the gearing below 8%. The Company confirms 2023 net investment guidance
between $16 and $17 billion.
* * * *
To listen to the conference call with CEO Patrick Pouyanné and CFO
Jean-Pierre Sbraire today at 13:30 (Paris time), please log on to
totalenergies.com or dial +44 (0) 121 281 8004 or +1 (718) 705-8796. The
conference replay will be available on the Company's website totalenergies.com
after the event.
* * * *
TotalEnergies contacts
Media Relations: +33 (0)1 47 44 46 99 l
presse@totalenergies.com (mailto:presse@totalenergies.com) l @TotalEnergiesPR
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FTotalEnergiesPR&esheet=53693380&newsitemid=20231025785330&lan=en-US&anchor=%40TotalEnergiesPR&index=1&md5=88784ef59cb9dda76ce1dc67c0208a50)
Investor Relations: +33 (0)1 47 44 46 46 l
ir@totalenergies.com (mailto:ir@totalenergies.com)
9. Operating information by segment
9.1 Company’s production (Exploration & Production + Integrated LNG)
3Q23 2Q23 3Q22 3Q23 Combined liquids and gas 9M23 9M22 9M23
vs production by region (kboe/d)
vs
3Q22
9M22
550 537 889 -38% Europe 556 918 -39%
459 481 463 -1% Africa 478 473 +1%
781 767 692 +13% Middle East and North Africa 756 681 +11%
445 443 449 -1% Americas 443 419 +6%
241 243 176 +37% Asia-Pacific 257 259 -1%
2,476 2,471 2,669 -7% Total production 2,490 2,750 -9%
327 338 656 -50% includes equity affiliates 336 687 -51%
3Q23 2Q23 3Q22 3Q23 Liquids production by region (kb/d) 9M23 9M22 9M23
vs
vs
3Q22
9M22
229 227 275 -17% Europe 230 280 -18%
335 359 352 -5% Africa 354 358 -1%
627 615 557 +12% Middle East and North Africa 607 547 +11%
268 268 260 +3% Americas 267 231 +15%
102 102 50 x2,1 Asia-Pacific 107 85 +26%
1,561 1,571 1,494 +4% Total production 1,565 1,501 +4%
156 153 202 -23% includes equity affiliates 153 204 -25%
3Q23 2Q23 3Q22 3Q23 Gas production by region (Mcf/d) 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,733 1,671 3,300 -47% Europe 1,760 3,431 -49%
619 610 559 +11% Africa 615 582 +6%
844 834 740 +14% Middle East and North Africa 817 736 +11%
989 976 1,061 -7% Americas 986 1,055 -7%
736 754 707 +4% Asia-Pacific 807 981 -18%
4,921 4,845 6,367 -23% Total production 4,985 6,785 -27%
933 1,004 2,444 -62% includes equity affiliates 996 2,596 -62%
9.2 Downstream (Refining & Chemicals and Marketing & Services)
3Q23 2Q23 3Q22 3Q23 Petroleum product sales by region (kb/d) 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,838 1,709 1,816 +1% Europe 1,716 1,755 -2%
621 599 690 -10% Africa 629 728 -14%
946 918 907 +4% Americas 904 868 +4%
624 665 569 +10% Rest of world 637 602 +6%
4,029 3,892 3,982 +1% Total consolidated sales 3,886 3,953 -2%
407 424 438 -7% Includes bulk sales 406 419 -3%
2,222 2,070 2,049 +8% Includes trading 2,095 2,060 +2%
3Q23 2Q23 3Q22 3Q23 Petrochemicals production* (kt) 9M23 9M22 9M23
vs
vs
3Q22
9M22
1,018 1,026 1,078 -6% Europe 3,091 3,361 -8%
611 619 670 -9% Americas 1,837 1,910 -4%
771 475 722 +7% Middle East and Asia 1,999 2,271 -12%
* Olefins, polymers.
9.3 Integrated Power
9.3.1 Net power production
3Q23 2Q23
Net power production (TWh) Solar Onshore Offshore Gas Others Total Solar Onshore Offshore Gas Others Total
Wind
Wind
Wind
Wind
France 0.2 0.1 - 2.0 0.0 2.3 0.2 0.1 - 2.6 0.0 2.9
Rest of Europe 0.1 0.4 0.1 1.1 0.0 1.7 0.0 0.1 0.2 1.1 0.0 1.4
Africa 0.0 0.0 - - - 0.0 0.0 0.0 - - - 0.0
Middle East 0.2 - - 0.5 - 0.7 0.2 - - 0.3 - 0.5
North America 0.6 0.4 - - - 1.1 0.4 0.5 - - - 1.0
South America 0.1 0.9 - - - 1.0 0.0 0.4 - - - 0.5
India 1.4 0.4 - - - 1.7 1.4 0.3 - - - 1.8
Pacific Asia 0.4 0.0 0.0 - - 0.4 0.2 0.0 0.0 - - 0.2
Total 3.0 2.2 0.2 3.5 0.0 8.9 2.5 1.5 0.2 4.0 0.0 8.2
9.3.2 Installed power generation net capacity
3Q23 2Q23
Installed power generation net capacity (GW) ((19)) Solar Onshore Wind Offshore Wind Gas Others Total Solar Onshore Wind Offshore Wind Gas Others Total
France 0.5 0.3 - 2.6 0.1 3.5 0.4 0.3 - 2.6 0.1 3.4
Rest of Europe 0.2 0.9 0.6 1.4 0.0 3.1 0.1 0.3 0.4 1.4 0.0 2.2
Africa 0.1 0.0 - - 0.0 0.1 0.0 0.0 - - 0.0 0.1
Middle East 0.4 - - 0.3 - 0.7 0.3 - - 0.3 - 0.6
North America 1.5 0.8 - - 0.0 2.3 1.2 0.8 - - 0.0 2.0
South America 0.5 0.7 - - - 1.2 0.2 0.5 - - - 0.7
India 3.5 0.4 - - - 3.9 3.2 0.4 - - - 3.7
Pacific Asia 1.0 0.0 0.1 - 0.0 1.0 0.6 0.0 0.0 - 0.0 0.6
Total 7.6 3.2 0.6 4.3 0.2 15.9 6.0 2.3 0.5 4.3 0.2 13.2
9.3.3 Power generation gross capacity from renewables
3Q23 2Q23
Installed power generation gross capacity from Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
renewables (GW) ((20),(21))
France 0.8 0.6 - 0.1 1.6 0.8 0.6 - 0.1 1.6
Rest of Europe 0.2 1.1 1.1 0.0 2.4 0.2 1.1 0.8 0.0 2.1
Africa 0.1 0.0 - 0.0 0.2 0.1 0.0 - 0.0 0.2
Middle East 1.2 - - - 1.2 1.2 - - - 1.2
North America 3.9 2.1 - 0.1 6.2 3.5 2.1 - 0.1 5.6
South America 0.4 1.2 - - 1.6 0.4 1.0 - - 1.4
India 5.1 0.4 - - 5.5 5.1 0.4 - - 5.5
Asia-Pacific 1.4 0.0 0.2 0.0 1.6 1.4 0.0 0.1 0.0 1.5
Total 13.1 5.5 1.3 0.3 20.2 12.5 5.2 1.0 0.3 19.0
3Q23 2Q23
Power generation gross capacity from Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
renewables in construction (GW) ((20),(21))
France 0.2 0.0 0.0 0.0 0.3 0.2 0.1 0.0 0.0 0.3
Rest of Europe 0.4 0.0 - 0.0 0.5 0.1 0.0 0.3 0.0 0.5
Africa 0.0 - - 0.0 0.0 0.0 - - 0.0 0.0
Middle East 0.1 - - - 0.1 0.1 - - - 0.1
North America 2.3 0.1 - 0.5 3.0 2.8 0.1 - 0.5 3.4
South America 0.1 0.1 - - 0.2 0.1 0.2 - - 0.3
India 0.4 0.1 - - 0.4 0.4 0.1 - - 0.5
Asia-Pacific 0.1 0.0 0.5 - 0.6 0.0 0.0 0.5 - 0.6
Total 3.8 0.3 0.5 0.6 5.2 3.8 0.5 0.9 0.6 5.7
3Q23 2Q23
Power generation gross capacity from Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
renewables in development (GW) ((20),(21))
France 0.9 0.5 - 0.0 1.4 1.0 0.6 - 0.0 1.6
Rest of Europe 4.6 0.5 7.4 0.1 12.6 5.4 0.4 4.4 0.1 10.3
Africa 1.2 0.3 - 0.0 1.5 0.6 0.3 - 0.1 1.0
Middle East 1.7 0.7 - - 2.4 0.4 - - - 0.4
North America 8.3 3.3 4.1 5.2 20.9 9.0 3.2 4.1 5.1 21.3
South America 1.4 1.3 - 0.4 3.0 1.6 1.6 - 0.4 3.6
India 4.0 0.1 - - 4.1 4.2 0.1 - - 4.3
Asia-Pacific 3.4 1.3 2.9 1.6 9.2 3.2 0.4 2.9 0.9 7.5
Total 25.6 7.9 14.4 7.2 55.2 25.5 6.6 11.4 6.5 50.0
10. Alternative Performance Measures (Non-GAAP measures)
10.1 Adjustment items to net income (TotalEnergies share)
3Q23 2Q23 3Q22 In millions of dollars 9M23 9M22
6,676 4,088 6,626 Net income (TotalEnergies share) 16,321 17,262
(749) (377) (2,186) Special items affecting net income (TotalEnergies share) (1,285) (11,725)
- - 1,391 Gain (loss) on asset sales 203 1,391
- (5) (17) Restructuring charges (5) (28)
(614) (469) (3,118) Impairments (1,143) (11,898)
(135) 97 (442) Other * (340) (1,190)
607 (380) (827) After-tax inventory effect : FIFO vs. replacement cost (164) 1,206
365 (111) (224) Effect of changes in fair value (180) (855)
223 (868) (3,237) Total adjustments affecting net income (1,629) (11,374)
6,453 4,956 9,863 Adjusted net income (TotalEnergies share) 17,950 28,636
* Other adjustment items for net income in the third quarter amounted to
($135) million, including $388 million of revaluation of Total Eren’s
previously held equity interest and ($523) million mainly due to the impact of
the European solidarity contribution and of the Electricity Generation
Infra-Marginal Income Contribution in France and of the devaluation of the
Argentine peso. Other adjustment items for net income in the first nine months
of the year amounted to ($340) million including $388 million of revaluation
of Total Eren’s previously held equity interest and ($728) million mainly
due to the impact of the European solidarity contribution and of the
Electricity Generation Infra-Marginal Income Contribution in France and of the
devaluation of the Argentine peso.
10.2 Reconciliation of adjusted EBITDA with consolidated financial statements
10.2.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
6,676 4,088 6,626 +1% Net income (TotalEnergies share) 16,321 17,262 -5%
(223) 868 3,237 ns Less: adjustment items to net income (TotalEnergies share) 1,629 11,374 -86%
6,453 4,956 9,863 -35% Adjusted net income (TotalEnergies share) 17,950 28,636 -37%
Adjusted items
82 61 85 -4% Add: non-controlling interests 217 250 -13%
3,130 2,715 6,037 -48% Add: income taxes 9,935 16,035 -38%
2,967 2,959 2,926 +1% Add: depreciation, depletion and impairment of tangible assets and mineral interests 8,952 9,112 -2%
88 92 95 -7% Add: amortization and impairment of intangible assets 279 289 -3%
726 724 633 +15% Add: financial interest on debt 2,160 1,667 +30%
(384) (402) (219) ns Less: financial income and expense from cash & cash equivalents (1,159) (408) ns
13,062 11,105 19,420 -33% Adjusted EBITDA 38,334 55,581 -31%
10.2.2 Reconciliation of revenues from sales to adjusted EBITDA and net income
(TotalEnergies share)
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
Adjusted items
54,413 51,458 64,924 -16% Revenues from sales 164,180 199,322 -18%
(34,738) (33,379) (41,509) ns Purchases, net of inventory variation (105,596) (128,294) ns
(7,346) (7,754) (6,689) ns Other operating expenses (22,852) (21,718) ns
(245) (62) (71) ns Exploration costs (401) (324) ns
142 116 163 -13% Other income 335 713 -53%
64 (164) (58) ns Other expense, excluding amortization and impairment of intangible assets (138) (662) ns
296 401 196 +51% Other financial income 945 546 +73%
(186) (173) (112) ns Other financial expense (542) (383) ns
662 662 2,576 -74% Net income (loss) from equity affiliates 2,403 6,381 -62%
13,062 11,105 19,420 -33% Adjusted EBITDA 38,334 55,581 -31%
Adjusted items
(2,967) (2,959) (2,926) ns Less: depreciation, depletion and impairment of tangible assets and mineral interests (8,952) (9,112) ns
(88) (92) (95) ns Less: amortization of intangible assets (279) (289) ns
(726) (724) (633) ns Less: financial interest on debt (2,160) (1,667) ns
384 402 219 +75% Add: financial income and expense from cash & cash equivalents 1,159 408 x2.8
(3,130) (2,715) (6,037) ns Less: income taxes (9,935) (16,035) ns
(82) (61) (85) ns Less: non-controlling interests (217) (250) ns
223 (868) (3,237) ns Add: adjustment (TotalEnergies share) (1,629) (11,374) ns
6,676 4,088 6,626 +1% Net income (TotalEnergies share) 16,321 17,262 -5%
10.3 Investments – Divestments (TotalEnergies share)
Reconciliation of Cash flow used in investing activities to Net investments
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
4,987 4,473 4,075 +22% Cash flow used in investing activities ( a ) 15,822 11,435 +38%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
(17) 18 570 ns Organic loan repayment from equity affiliates ( c ) (5) 1,295 ns
43 35 8 x5.4 Change in debt from renewable projects financing ( d ) * 81 (356) ns
64 64 43 +49% Capex linked to capitalized leasing contracts ( e ) 188 116 +62%
14 1 7 +100% Expenditures related to carbon credits ( f ) 16 11 +45%
5,091 4,591 4,703 +8% Net investments ( a + b + c + d + e + f = g - i + h ) 16,102 12,501 +29%
808 320 1,587 -49% of which net acquisitions ( g-i ) 4,115 4,585 -10%
1,992 482 1,716 +16% Acquisitions ( g ) 5,730 5,580 +3%
1,184 162 129 x9.2 Asset sales ( i ) 1,615 995 +62%
(43) (35) (4) ns Change in debt from renewable projects (partner share) (81) 170 ns
4,283 4,271 3,116 +37% of which organic investments ( h ) 11,987 7,916 +51%
346 328 169 x2 Capitalized exploration 879 381 x2.3
422 366 233 +81% Increase in non-current loans 1,162 744 +56%
(120) (84) (214) ns Repayment of non-current loans, excluding organic loan repayment from equity affiliates (433) (823) ns
- - 4 -100% Change in debt from renewable projects (TotalEnergies share) - (186) -100%
* Change in debt from renewable projects (TotalEnergies share and partner
share).
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
3Q23 2Q23 3Q22 3Q23 In millions of dollars 9M23 9M22 9M23
vs
vs
3Q22
9M22
9,496 9,900 17,848 -47% Cash flow from operating activities ( a ) 24,529 41,749 -41%
(582) 1,720 7,692 ns (Increase) decrease in working capital ( b ) * (2,851) 5,078 ns
764 (252) (1,010) ns Inventory effect ( c ) 10 1,396 -99%
43 35 (0) ns Capital gain from renewable project sales ( d ) 81 25 x3.3
(17) 18 570 ns Organic loan repayments from equity affiliates ( e ) (5) 1,295 ns
9,340 8,485 11,736 -20% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d + e ) 27,446 36,595 -25%
(211) (112) (304) ns Financial charges (476) (1,071) ns
9,551 8,596 12,040 -21% Debt Adjusted Cash Flow (DACF) 27,922 37,665 -26%
4,283 4,271 3,116 +37% Organic investments ( g ) 11,987 7,916 +51%
5,058 4,214 8,620 -41% Free cash flow after organic investments ( f - g ) 15,459 28,679 -46%
5,091 4,591 4,703 +8% Net investments ( h ) 16,102 12,501 +29%
4,249 3,894 7,033 -40% Net cash flow ( f - h ) 11,344 24,094 -53%
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
10.5 Gearing ratio
In millions of dollars 09/30/2023 06/30/2023 09/30/2022
Current borrowings * 15,193 13,980 15,556
Other current financial liabilities 415 443 861
Current financial assets * (, )** (6,585) (6,397) (11,532)
Net financial assets classified as held for sale * (44) (41) (36)
Non-current financial debt * 33,947 33,387 37,506
Non-current financial assets * (1,519) (1,264) (1,406)
Cash and cash equivalents (24,731) (25,572) (35,941)
Net debt ( a ) 16,676 14,536 5,008
Shareholders’ equity (TotalEnergies share) 115,767 113,682 117,821
Non-controlling interests 2,657 2,770 2,851
Shareholders' equity (b) 118,424 116,452 120,672
Gearing = a / ( a+b ) 12.3% 11.1% 4.0%
Leases (c) 8,277 8,090 7,669
Gearing including leases ( a+c ) / ( a+b+c ) 17.4% 16.3% 9.5%
* Excludes leases receivables and leases debts.
** Including initial margins held as part of the Company's activities on
organized markets.
10.6 Return on average capital employed
Twelve months ended September 30, 2023
In millions of dollars Exploration & Integrated Integrated Refining & Marketing & Company
Production
LNG
Power
Chemicals
Services
Adjusted net operating income 11,668 7,152 1,807 5,508 1,486 27,351
Capital employed at 09/30/2022 65,041 37,742 17,181 5,801 7,141 130,420
Capital employed at 09/30/2023 69,392 36,033 20,043 9,002 9,025 141,093
ROACE 17.4% 19.4% 9.7% 74.4% 18.4% 20.1%
10.7 Payout
In millions of dollars 9M23 9M22 2022
Dividend paid (parent company shareholders) ( a ) 5,648 5,630 9,986
Repayment of treasury shares 6,203 5,160 7,711
of which buy-backs ( b ) 6,082 4,979 7,019
Cash flow from operations excluding working capital (CFFO) (c) 27,446 36,595 45,729
Payout ratio = ( a+b ) / c 42.7% 29.0% 37.2%
GLOSSARY
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 acquisitions is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Net
Acquisitions 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.
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
Net Acquisitions (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 Net Acquisitions 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 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.
Disclaimer:
The terms “TotalEnergies”, “TotalEnergies company” and “Company”
in this document are used to designate TotalEnergies SE and the consolidated
entities directly or indirectly controlled by TotalEnergies SE. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate and independent legal entities.
This press release presents the results for the third quarter of 2023 and
first nine month of 2023 from the consolidated financial statements of
TotalEnergies SE as of September 30, 2023 (unaudited). The limited review
procedures by the Statutory Auditors are underway. The notes to the
consolidated financial statements (unaudited) are available on the website
totalenergies.com.
This document may contain forward-looking statements (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 industrial strategy
of TotalEnergies. This document may also contain statements regarding the
perspectives, objectives, areas of improvement and goals of TotalEnergies,
including with respect to climate change and carbon neutrality (net zero
emissions). An ambition expresses an outcome desired by TotalEnergies, it
being specified that the means to be deployed do not depend solely on
TotalEnergies. These forward-looking statements may generally be identified by
the use of the future or conditional tense or forward-looking words such as
“envisions”, “intends”, “anticipates”, “believes”,
“considers”, “plans”, “expects”, “thinks”, “targets”,
“aims” or similar terminology. Such forward-looking statements included in
this document are based on economic data, estimates and assumptions prepared
in a given economic, competitive and regulatory environment and considered to
be reasonable by TotalEnergies as of the date of this document. These
forward-looking statements are not historical data and should not be
interpreted as assurances that the perspectives, objectives, or goals
announced will be achieved. They may prove to be inaccurate in the future, and
may evolve or be modified with a significant difference between the actual
results and those initially estimated, due to the uncertainties notably
related to the economic, financial, competitive and regulatory environment, or
due to the occurrence of risk factors, such as, notably, the price
fluctuations in crude oil and natural gas, the evolution of the demand and
price of petroleum products, the changes in production results and reserves
estimates, the ability to achieve cost reductions and operating efficiencies
without unduly disrupting business operations, changes in laws and regulations
including those related to the environment and climate, currency fluctuations,
as well as economic and political developments, changes in market conditions,
loss of market share and changes in consumer preferences, or pandemics such as
the COVID-19 pandemic. Additionally, certain financial information is based on
estimates particularly in the assessment of the recoverable value of assets
and potential impairments of assets relating thereto. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. The information on risk factors that could have a significant
adverse effect on TotalEnergies’ business, financial condition, including
its operating income and cash flow, reputation, outlook or the value of
financial instruments issued by TotalEnergies is provided in the most recent
version of the Universal Registration Document which is filed by TotalEnergies
SE with the French Autorité des Marchés Financiers and the annual report on
Form 20-F filed with the United States Securities and Exchange Commission
(“SEC”).
Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described below
(adjusted operating income, adjusted net operating income, adjusted net
income), return on equity (ROE), return on average capital employed (ROACE),
gearing ratio, operating cash flow before working capital changes, the
shareholder rate of return. These indicators are meant to facilitate the
analysis of the financial performance of TotalEnergies and the comparison of
income between periods. They allow investors to track the measures used
internally to manage and measure the performance of TotalEnergies.
These adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions
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 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 our website
totalenergies.com. You can also obtain this form from the SEC by calling
1-800-SEC-0330 or on the SEC’s website sec.gov.
((1)) Refer to Glossary page 23 & 24 for the definitions and further
information on alternative performance measures (Non-GAAP measures) and to
pages 19 and following for reconciliation tables.
((2) )Some of the transactions mentioned in the highlights remain subject to
the agreement of the authorities or to the fulfilment of conditions precedent
under the terms of the agreements.
((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 bonds.
((5)) Average €-$ exchange rate: 1.0884 in the third quarter 2023, 1.0833 in
the first nine months of 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 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).
((11) )The six greenhouse gases in the Kyoto protocol, namely CO(2), CH(4),
N(2)O, HFCs, PFCs and SF(6), with their respective GWP (Global Warming
Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF(6) are
virtually absent from the Company’s emissions or are considered as
non-material and are therefore not counted.
((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 2022
Universal Registration Document) and indirect emissions attributable to
brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H(2)).
((13) )TotalEnergies reports Scope 3 GHG emissions, category 11, which
correspond to indirect GHG emissions related to the use by customers of energy
products, i.e., combustion of the products to obtain energy. The Company
follows the oil & gas industry reporting guidelines published by IPIECA,
which comply with the GHG Protocol methodologies. In order to avoid double
counting, this methodology accounts for the largest volume in the oil,
biofuels and gas value chains, i.e., the higher of the two production volumes
or sales to end customers. The highest point for each value chain for 2023
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 2023. 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 $/b Brent environment.
((18) )Excluding adjustments and contingent payments.
((19)) End-of-period data.
((20) )Includes 20% of the gross capacities of Adani Green Energy Limited, 50%
of Clearway Energy Group and, from 1Q23, 49% of Casa dos Ventos.
((21) )End-of-period data.
TotalEnergies financial statements
______________________
Third quarter and nine months 2023 consolidated accounts, IFRS
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
3(rd) quarter 2(nd) quarter 3(rd) quarter
(M$)((a)) 2023 2023 2022
Sales 59,017 56,271 69,037
Excise taxes (4,604) (4,737) (4,075)
Revenues from sales 54,413 51,534 64,962
Purchases, net of inventory variation (33,676) (33,864) (42,802)
Other operating expenses (7,562) (7,906) (6,771)
Exploration costs (245) (62) (71)
Depreciation, depletion and impairment of tangible assets and mineral (3,055) (3,106) (2,935)
interests
Other income 535 116 1,693
Other expense (928) (366) (921)
Financial interest on debt (726) (724) (633)
Financial income and expense from cash & cash equivalents 459 510 327
Cost of net debt (267) (214) (306)
Other financial income 311 413 196
Other financial expense (186) (173) (112)
Net income (loss) from equity affiliates 754 267 (108)
Income taxes (3,404) (2,487) (6,077)
Consolidated net income 6,690 4,152 6,748
TotalEnergies share 6,676 4,088 6,626
Non-controlling interests 14 64 122
Earnings per share ($) 2.74 1.65 2.58
Fully-diluted earnings per share ($) 2.73 1.64 2.56
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
3(rd) quarter 2(nd) quarter 3(rd) quarter
(M$) 2023 2023 2022
Consolidated net income 6,690 4,152 6,748
Other comprehensive income
Actuarial gains and losses (1) 135 (17)
Change in fair value of investments in equity instruments 3 (1) 131
Tax effect (2) (43) 2
Currency translation adjustment generated by the parent company (1,861) (57) (4,639)
Items not potentially reclassifiable to profit and loss (1,861) 34 (4,523)
Currency translation adjustment 1,204 (49) 1,871
Cash flow hedge 306 689 1,258
Variation of foreign currency basis spread (3) 11 9
share of other comprehensive income of equity affiliates, net amount 31 3 191
Other (4) (4) (18)
Tax effect (46) (136) (424)
Items potentially reclassifiable to profit and loss 1,488 514 2,887
Total other comprehensive income (net amount) (373) 548 (1,636)
Comprehensive income 6,317 4,700 5,112
TotalEnergies share 6,313 4,676 4,969
Non-controlling interests 4 24 143
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
9( )months 9( )months
(M$)((a)) 2023 2022
Sales 177,891 212,417
Excise taxes (13,711) (13,060)
Revenues from sales 164,180 199,357
Purchases, net of inventory variation (105,891) (127,893)
Other operating expenses (23,253) (22,435)
Exploration costs (399) (1,049)
Depreciation, depletion and impairment of tangible assets and mineral (9,223) (9,716)
interests
Other income 992 2,265
Other expense (1,594) (4,516)
Financial interest on debt (2,160) (1,667)
Financial income and expense from cash & cash equivalents 1,362 786
Cost of net debt (798) (881)
Other financial income 982 630
Other financial expense (542) (383)
Net income (loss) from equity affiliates 1,981 (1,611)
Income taxes (9,962) (16,165)
Consolidated net income 16,473 17,603
TotalEnergies share 16,321 17,262
Non-controlling interests 152 341
Earnings per share ($) 6.61 6.61
Fully-diluted earnings per share ($) 6.57 6.57
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
9( )months 9( )months
(M$) 2023 2022
Consolidated net income 16,473 17,603
Other comprehensive income
Actuarial gains and losses 137 187
Change in fair value of investments in equity instruments 6 114
Tax effect (53) (40)
Currency translation adjustment generated by the parent company (452) (11,776)
Items not potentially reclassifiable to profit and loss (362) (11,515)
Currency translation adjustment (95) 5,406
Cash flow hedge 2,197 4,217
Variation of foreign currency basis spread 5 79
share of other comprehensive income of equity affiliates, net amount (64) 2,655
Other (5) (19)
Tax effect (518) (1,483)
Items potentially reclassifiable to profit and loss 1,520 10,855
Total other comprehensive income (net amount) 1,158 (660)
Comprehensive income 17,631 16,943
TotalEnergies share 17,539 16,627
Non-controlling interests 92 316
CONSOLIDATED BALANCE SHEET
TotalEnergies
September 30, June 30, December 31, September 30,
2023
2023
2022
2022
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 32,911 31,717 31,931 36,376
Property, plant and equipment, net 106,721 104,174 107,101 99,700
Equity affiliates : investments and loans 30,153 30,425 27,889 28,743
Other investments 1,342 1,190 1,051 1,149
Non-current financial assets 2,710 2,494 2,731 2,341
Deferred income taxes 3,535 3,649 5,049 4,434
Other non-current assets 3,991 2,573 2,388 2,930
Total non-current assets 181,363 176,222 178,140 175,673
Current assets
Inventories, net 22,512 18,785 22,936 24,420
Accounts receivable, net 23,598 22,163 24,378 28,191
Other current assets 22,252 23,111 36,070 73,453
Current financial assets 6,892 6,725 8,746 11,688
Cash and cash equivalents 24,731 25,572 33,026 35,941
Assets classified as held for sale 8,656 8,441 568 349
Total current assets 108,641 104,797 125,724 174,042
Total assets 290,004 281,019 303,864 349,715
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 7,616 7,850 8,163 8,163
Paid-in surplus and retained earnings 123,506 123,511 123,951 131,382
Currency translation adjustment (13,461) (12,859) (12,836) (16,720)
Treasury shares (1,894) (4,820) (7,554) (5,004)
Total shareholders' equity - TotalEnergies share 115,767 113,682 111,724 117,821
Non-controlling interests 2,657 2,770 2,846 2,851
Total shareholders' equity 118,424 116,452 114,570 120,672
Non-current liabilities
Deferred income taxes 11,633 11,237 11,021 12,576
Employee benefits 1,837 1,872 1,829 2,207
Provisions and other non-current liabilities 22,657 21,295 21,402 22,133
Non-current financial debt 41,022 40,427 45,264 44,899
Total non-current liabilities 77,149 74,831 79,516 81,815
Current liabilities
Accounts payable 37,268 32,853 41,346 48,942
Other creditors and accrued liabilities 37,405 38,609 52,275 80,468
Current borrowings 16,876 15,542 15,502 16,923
Other current financial liabilities 415 443 488 861
Liabilities directly associated with the assets classified as held for sale 2,467 2,289 167 34
Total current liabilities 94,431 89,736 109,778 147,228
Total liabilities & shareholders' equity 290,004 281,019 303,864 349,715
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
3(rd) quarter 2(nd) quarter 3(rd) quarter
(M$) 2023 2023 2022
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 6,690 4,152 6,748
Depreciation, depletion, amortization and impairment 3,621 3,195 3,032
Non-current liabilities, valuation allowances and deferred taxes 686 81 704
(Gains) losses on disposals of assets (521) (70) (1,645)
Undistributed affiliates' equity earnings (325) 383 1,290
(Increase) decrease in working capital (923) 2,125 7,407
Other changes, net 268 34 312
Cash flow from operating activities 9,496 9,900 17,848
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (3,808) (3,870) (2,986)
Acquisitions of subsidiaries, net of cash acquired (1,607) (19) (8)
Investments in equity affiliates and other securities (482) (522) (2,557)
Increase in non-current loans (451) (366) (246)
Total expenditures (6,348) (4,777) (5,797)
Proceeds from disposals of intangible assets and property, plant and equipment 914 31 97
Proceeds from disposals of subsidiaries, net of cash sold 7 38 524
Proceeds from disposals of non-current investments 308 133 304
Repayment of non-current loans 132 102 797
Total divestments 1,361 304 1,722
Cash flow used in investing activities (4,987) (4,473) (4,075)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders - 383 (1)
- Treasury shares (2,098) (2,002) (1,996)
Dividends paid:
- Parent company shareholders (1,962) (1,842) (1,877)
- Non-controlling interests (168) (105) (405)
Net issuance (repayment) of perpetual subordinated notes - (1,081) -
Payments on perpetual subordinated notes (22) (80) (14)
Other transactions with non-controlling interests (11) (13) 38
Net issuance (repayment) of non-current debt 47 (14) 141
Increase (decrease) in current borrowings (446) (4,111) (527)
Increase (decrease) in current financial assets and liabilities (182) 990 (4,473)
Cash flow from (used in) financing activities (4,842) (7,875) (9,114)
Net increase (decrease) in cash and cash equivalents (333) (2,448) 4,659
Effect of exchange rates (508) 35 (1,566)
Cash and cash equivalents at the beginning of the period 25,572 27,985 32,848
Cash and cash equivalents at the end of the period 24,731 25,572 35,941
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
9( )months 9( )months
(M$) 2023 2022
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 16,473 17,603
Depreciation, depletion, amortization and impairment 10,003 10,931
Non-current liabilities, valuation allowances and deferred taxes 1,081 4,669
(Gains) losses on disposals of assets (843) (1,823)
Undistributed affiliates' equity earnings (291) 4,551
(Increase) decrease in working capital (2,217) 4,982
Other changes, net 323 836
Cash flow from operating activities 24,529 41,749
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (12,646) (11,593)
Acquisitions of subsidiaries, net of cash acquired (1,762) (90)
Investments in equity affiliates and other securities (2,411) (2,782)
Increase in non-current loans (1,206) (765)
Total expenditures (18,025) (15,230)
Proceeds from disposals of intangible assets and property, plant and equipment 1,013 427
Proceeds from disposals of subsidiaries, net of cash sold 228 675
Proceeds from disposals of non-current investments 490 554
Repayment of non-current loans 472 2,139
Total divestments 2,203 3,795
Cash flow used in investing activities (15,822) (11,435)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 383 370
- Treasury shares (6,203) (5,160)
Dividends paid:
- Parent company shareholders (5,648) (5,630)
- Non-controlling interests (294) (524)
Net issuance (repayment) of perpetual subordinated notes (1,081) -
Payments on perpetual subordinated notes (260) (288)
Other transactions with non-controlling interests (110) 33
Net issuance (repayment) of non-current debt 151 683
Increase (decrease) in current borrowings (5,831) (2,573)
Increase (decrease) in current financial assets and liabilities 2,202 390
Cash flow from (used in) financing activities (16,691) (12,699)
Net increase (decrease) in cash and cash equivalents (7,984) 17,615
Effect of exchange rates (311) (3,016)
Cash and cash equivalents at the beginning of the period 33,026 21,342
Cash and cash equivalents at the end of the period 24,731 35,941
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(unaudited)
Common shares issued Paid-in Currency Treasury shares Shareholders' Non- Total
surplus and
translation
equity -
controlling
shareholders'
retained
adjustment
TotalEnergies
interests
equity
Share
earnings
(M$) Number Amount Number Amount
As of January 1, 2022 2,640,429,329 8,224 117,849 (12,671) (33,841,104) (1,666) 111,736 3,263 114,999
Net income of the first nine months 2022 - - 17,262 - - - 17,262 341 17,603
Other comprehensive income - - 3,421 (4,056) - - (635) (25) (660)
Comprehensive Income - - 20,683 (4,056) - - 16,627 316 16,943
Dividend - - (5,653) - - - (5,653) (524) (6,177)
Issuance of common shares 9,367,482 26 344 - - - 370 - 370
Purchase of treasury shares - - - - (97,376,124) (5,160) (5,160) - (5,160)
Sale of treasury shares((a)) - - (317) - 6,193,921 317 - - -
Share-based payments - - 191 - - - 191 - 191
Share cancellation (30,665,526) (87) (1,418) - 30,665,526 1,505 - - -
Net issuance (repayment) of perpetual subordinated notes - - (44) - - - (44) - (44)
Payments on perpetual subordinated notes - - (255) - - - (255) - (255)
Other operations with - - 41 7 - - 48 124 172
non-controlling interests
Other items - - (39) - - - (39) (328) (367)
As of September 30, 2022 2,619,131,285 8,163 131,382 (16,720) (94,357,781) (5,004) 117,821 2,851 120,672
Net income of the fourth quarter 2022 - - 3,264 - - - 3,264 177 3,441
Other comprehensive income - - (6,354) 3,882 - - (2,472) 23 (2,449)
Comprehensive Income - - (3,090) 3,882 - - 792 200 992
Dividend - - (4,336) - - - (4,336) (12) (4,348)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (42,831,619) (2,551) (2,551) - (2,551)
Sale of treasury shares((a)) - - (1) - 1,733 1 - - -
Share-based payments - - 38 - - - 38 - 38
Share cancellation - - - - - - - - -
Net issuance (repayment) of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (76) - - - (76) - (76)
Other operations with - - 4 2 - - 6 (87) (81)
non-controlling interests
Other items - - 30 - - - 30 (106) (76)
As of December 31, 2022 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 nine months 2023 - - 16,321 - - - 16,321 152 16,473
Other comprehensive income - - 1,815 (597) - - 1,218 (60) 1,158
Comprehensive Income - - 18,136 (597) - - 17,539 92 17,631
Dividend - - (5,765) - - - (5,765) (294) (6,059)
Issuance of common shares 8,002,155 22 361 - - - 383 - 383
Purchase of treasury shares - - - - (100,511,783) (7,024) (7,024) - (7,024)
Sale of treasury shares((a)) - - (396) - 6,463,426 396 - - -
Share-based payments - - 232 - - - 232 - 232
Share cancellation (214,881,605) (569) (11,720) - 214,881,605 12,289 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,107) - - - (1,107) - (1,107)
Payments on perpetual subordinated notes - - (223) - - - (223) - (223)
Other operations with - - 39 (28) - - 11 12 23
non-controlling interests
Other items - - (2) - - (1) (3) 1 (2)
As of September 30, 2023 2,412,251,835 7,616 123,506 (13,461) (16,354,419) (1,894) 115,767 2,657 118,424
((a))Treasury shares related to the performance share grants.
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
3(rd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,551 2,144 5,183 27,127 23,012 - - 59,017
Intersegment sales 11,129 2,361 495 10,094 153 59 (24,291) -
Excise taxes - - - (210) (4,394) - - (4,604)
Revenues from sales 12,680 4,505 5,678 37,011 18,771 59 (24,291) 54,413
Operating expenses (5,347) (3,038) (4,811) (34,598) (17,749) (231) 24,291 (41,483)
Depreciation, depletion and impairment of tangible assets and mineral (1,976) (283) (86) (483) (204) (23) - (3,055)
interests
Net income (loss) from equity affiliates and other items 10 358 (8) 61 (16) 81 - 486
Tax on net operating income (2,437) (251) (86) (502) (247) 157 - (3,366)
Adjustment( (a)) (208) (51) 181 90 132 (37) - 107
Adjusted net operating income 3,138 1,342 506 1,399 423 80 - 6,888
Adjustment( (a)) 107
Net cost of net debt (305)
Non-controlling interests (14)
Net income - TotalEnergies share 6,676
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
3(rd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,677 734 2,215 424 270 28 - 6,348
Total divestments 699 168 331 114 49 - - 1,361
Cash flow from operating activities 4,240 872 1,936 2,060 206 182 - 9,496
2(nd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
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)
Adjustment( (a)) 10 (271) (207) (376) (53) (40) - (937)
Adjusted net operating income 2,349 1,330 450 1,004 449 (248) - 5,334
Adjustment( (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.
2(nd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,569 626 807 489 256 30 - 4,777
Total divestments 26 45 149 52 28 4 - 304
Cash flow from operating activities 4,047 1,332 2,284 1,923 665 (351) - 9,900
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
3(rd) quarter 2022 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 2,670 7,264 4,231 28,899 25,968 5 - 69,037
Intersegment sales 14,701 3,854 537 12,065 176 52 (31,385) -
Excise taxes - - - (160) (3,915) - - (4,075)
Revenues from sales 17,371 11,118 4,768 40,804 22,229 57 (31,385) 64,962
Operating expenses (6,880) (8,591) (4,695) (39,137) (21,513) (213) 31,385 (49,644)
Depreciation, depletion and impairment of tangible assets and mineral (1,999) (249) (46) (371) (243) (27) - (2,935)
interests
Net income (loss) from equity affiliates and other items (2,643) 1,697 1,493 219 (14) (4) - 748
Tax on net operating income (5,071) (752) (25) (255) (153) 162 - (6,094)
Adjustment( (a)) (3,439) (190) 1,259 (675) (172) (59) - (3,276)
Adjusted net operating income 4,217 3,413 236 1,935 478 34 - 10,313
Adjustment( (a)) (3,276)
Net cost of net debt (289)
Non-controlling interests (122)
Net income - TotalEnergies share 6,626
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
3(rd) quarter 2022 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,069 364 2,850 242 251 21 - 5,797
Total divestments 246 745 696 6 29 - - 1,722
Cash flow from operating activities 9,083 3,449 941 3,798 939 (362) - 17,848
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
9( )months 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 4,939 9,036 19,987 76,831 67,083 15 - 177,891
Intersegment sales 31,965 11,138 2,850 27,785 474 180 (74,392) -
Excise taxes - - - (625) (13,086) - - (13,711)
Revenues from sales 36,904 20,174 22,837 103,991 54,471 195 (74,392) 164,180
Operating expenses (15,271) (16,280) (20,976) (98,532) (52,208) (668) 74,392 (129,543)
Depreciation, depletion and impairment of tangible assets and mineral (6,159) (848) (184) (1,291) (669) (72) - (9,223)
interests
Net income (loss) from equity affiliates and other items 63 1,634 (328) 116 291 43 - 1,819
Tax on net operating income (7,724) (593) (238) (1,014) (528) 180 - (9,917)
Adjustment( (a)) (327) (657) (215) (751) 205 (77) - (1,822)
Adjusted net operating income 8,140 4,744 1,326 4,021 1,152 (245) - 19,138
Adjustment( (a)) (1,822)
Net cost of net debt (843)
Non-controlling interests (152)
Net income - TotalEnergies share 16,321
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
9( )months 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 9,298 2,555 4,256 1,138 685 93 - 18,025
Total divestments 756 262 629 174 378 4 - 2,203
Cash flow from operating activities 12,823 5,740 2,935 3,132 198 (299) - 24,529
9( )months 2022 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 7,342 16,672 17,398 94,968 76,024 13 - 212,417
Intersegment sales 42,324 11,292 1,546 34,127 1,159 185 (90,633) -
Excise taxes - - - (538) (12,522) - - (13,060)
Revenues from sales 49,666 27,964 18,944 128,557 64,661 198 (90,633) 199,357
Operating expenses (18,348) (21,621) (19,381) (119,790) (61,807) (1,063) 90,633 (151,377)
Depreciation, depletion and impairment of tangible assets and mineral (6,772) (803) (140) (1,140) (757) (104) - (9,716)
interests
Net income (loss) from equity affiliates and other items (6,069) (172) 1,685 724 42 175 - (3,615)
Tax on net operating income (12,810) (1,305) (26) (1,646) (674) 259 - (16,202)
Adjustment( (a)) (8,284) (4,698) 588 890 249 (297) - (11,552)
Adjusted operating income 13,951 8,761 494 5,815 1,216 (238) - 29,999
Adjustment( (a)) (11,552)
Net cost of net debt (844)
Non-controlling interests (341)
Net income - TotalEnergies share 17,262
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
9( )months 2022 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 8,168 939 4,586 803 679 55 - 15,230
Total divestments 592 1,982 940 89 180 12 - 3,795
Cash flow from operating activities 23,619 9,470 (795) 8,431 2,417 (1,393) - 41,749
Non GAAP Financial Measures
______________________
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1. Reconciliation of cash flow used in investing activities to Net investments
1.1. Exploration & Production
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
1,978 2,543 1,823 9% Cash flow used in investing activities (a) 8,542 7,576 13%
- - - ns Other transactions with non-controlling interests (b) - - ns
- - (1) -100% Organic loan repayment from equity affiliates (c) - 22 -100%
- - - ns Change in debt from renewable projects financing (d) * - - ns
51 56 34 50% Capex linked to capitalized leasing contracts (e) 157 94 67%
14 1 7 100% Expenditures related to carbon credits (f) 16 11 45%
2,043 2,600 1,863 10% Net investments (a + b + c + d + e + f = g - i + h) 8,715 7,703 13%
(514) 176 (126) ns of which net acquisitions (g - i) 1,600 2,415 -34%
156 179 96 63% Acquisitions (g) 2,281 2,893 -21%
670 3 222 x3 Asset sales (i) 681 478 42%
- - - ns Change in debt from renewable projects (partner share) - - ns
2,557 2,424 1,989 29% of which organic investments (h) 7,115 5,288 35%
343 325 169 x2 Capitalized exploration 872 381 x2.3
32 17 12 x2.7 Increase in non-current loans 93 58 60%
(29) (23) (25) ns Repayment of non-current loans, excluding organic loan repayment from equity (75) (92) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share).
1.2. Integrated LNG
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
566 581 (381) ns Cash flow used in investing activities (a) 2,293 (1,043) ns
- - - ns Other transactions with non-controlling interests (b) - - ns
1 - 578 -100% Organic loan repayment from equity affiliates (c) 2 1,282 -100%
- - - ns Change in debt from renewable projects financing (d) * - - ns
12 6 6 100% Capex linked to capitalized leasing contracts (e) 26 19 37%
- - - ns Expenditures related to carbon credits (f) - - ns
579 587 203 x2.9 Net investments (a + b + c + d + e + f = g - i + h) 2,321 258 x9
84 205 (10) ns of which net acquisitions (g - i) 1,048 (66) ns
204 224 - ns Acquisitions (g) 1,197 4 x299.3
120 19 10 x12 Asset sales (i) 149 70 x2.1
- - - ns Change in debt from renewable projects (partner share) - - ns
495 382 213 x2.3 of which organic investments (h) 1,273 324 x3.9
3 3 - ns Capitalized exploration 7 - ns
153 95 133 15% Increase in non-current loans 391 264 48%
(47) (26) (156) ns Repayment of non-current loans, excluding organic loan repayment from equity (111) (592) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share).
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.3. Integrated Power
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
1,884 658 2,154 -13% Cash flow used in investing activities (a) 3,627 3,646 -1%
- - - ns Other transactions with non-controlling interests (b) - - ns
4 16 3 33% Organic loan repayment from equity affiliates (c) 26 3 x8.7
43 35 8 x5.4 Change in debt from renewable projects financing (d) * 81 (356) ns
1 2 3 -67% Capex linked to capitalized leasing contracts (e) 5 3 67%
- - - ns Expenditures related to carbon credits (f) - - ns
1,932 711 2,168 -11% Net investments (a + b + c + d + e + f = g - i + h) 3,739 3,296 13%
1,354 (42) 1,728 -22% of which net acquisitions (g - i) 1,831 2,367 -23%
1,622 45 1,617 - Acquisitions (g) 2,204 2,647 -17%
268 87 (111) ns Asset sales (i) 373 280 33%
(43) (35) (4) ns Change in debt from renewable projects (partner share) (81) 170 ns
578 753 440 31% of which organic investments (h) 1,908 929 x2.1
- - - ns Capitalized exploration - - ns
207 182 62 x3.3 Increase in non-current loans 552 290 90%
(17) (11) (8) ns Repayment of non-current loans, excluding organic loan repayment from equity (149) (34) ns
affiliates
- - 4 -100% Change in debt from renewable projects (TotalEnergies share) - (186) -100%
*Change in debt from renewable projects (TotalEnergies share and partner
share).
1.4. Refining & Chemicals
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
310 437 236 31% Cash flow used in investing activities (a) 964 714 35%
- - - ns Other transactions with non-controlling interests (b) - - ns
(21) 2 (11) ns Organic loan repayment from equity affiliates (c) (33) (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
289 439 225 28% Net investments (a + b + c + d + e + f = g - i + h) 931 702 33%
(97) (15) 1 ns of which net acquisitions (g - i) (107) (33) ns
- 27 - ns Acquisitions (g) 31 15 x2.1
97 42 (1) ns Asset sales (i) 138 48 x2.9
- - - ns Change in debt from renewable projects (partner share) - - ns
386 454 224 72% of which organic investments (h) 1,038 735 41%
- - - ns Capitalized exploration - - ns
13 27 - ns Increase in non-current loans 51 52 -2%
(9) (8) (5) ns Repayment of non-current loans, excluding organic loan repayment from equity (25) (32) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share).
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.5. Marketing & Services
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
221 228 222 ns Cash flow used in investing activities (a) 307 499 -38%
- - - 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
221 228 222 - Net investments (a + b + c + d + e + f = g - i + h) 307 499 -38%
(18) (4) (7) ns of which net acquisitions (g - i) (256) (98) ns
10 7 2 x5 Acquisitions (g) 17 20 -15%
28 11 9 x3.1 Asset sales (i) 273 118 x2.3
- - - ns Change in debt from renewable projects (partner share) - - ns
239 232 229 4% of which organic investments (h) 563 597 -6%
- - - ns Capitalized exploration - - ns
16 26 24 -33% Increase in non-current loans 53 68 -22%
(19) (12) (20) ns Repayment of non-current loans, excluding organic loan repayment from equity (70) (62) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share).
2. Reconciliation of cash flow from operating activities to CFFO
2.1. Exploration & Production
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
4,240 4,047 9,083 -53% Cash flow from operating activities (a) 12,823 23,619 -46%
(925) (317) 2,676 ns (Increase) decrease in working capital (b) (1,613) 2,549 ns
- - - ns Inventory effect (c) - - ns
- - - ns Capital gain from renewable project sales (d) - - ns
- - (1) -100% Organic loan repayments from equity affiliates (e) - 22 -100%
5,165 4,364 6,406 -19% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 14,436 21,092 -32%
+ e)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.2. Integrated LNG
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
872 1,332 3,449 -75% Cash flow from operating activities (a) 5,740 9,470 -39%
(775) (469) 1,536 ns (Increase) decrease in working capital (b) * 212 3,656 -94%
- - - ns Inventory effect (c) - - ns
- - - ns Capital gain from renewable project sales (d) - - ns
1 - 578 -100% Organic loan repayments from equity affiliates (e) 2 1,282 -100%
1,648 1,801 2,492 -34% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 5,530 7,096 -22%
+ e)
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
2.3. Integrated Power
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
1,936 2,284 941 x2.1 Cash flow from operating activities (a) 2,935 (795) ns
1,466 1,844 753 95% (Increase) decrease in working capital (b) * 1,595 (1,299) ns
- - - ns Inventory effect (c) - - ns
43 35 - ns Capital gain from renewable project sales (d) 81 25 x3.3
4 16 3 33% Organic loan repayments from equity affiliates (e) 26 3 x8.7
516 491 191 x2.7 Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 1,447 532 x2.7
+ e)
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.4. Refining & Chemicals
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
2,060 1,923 3,798 -46% Cash flow from operating activities (a) 3,132 8,431 -63%
(125) 788 2,394 ns (Increase) decrease in working capital (b) (1,520) 908 ns
546 (192) (771) ns Inventory effect (c) (61) 951 ns
- - - ns Capital gain from renewable project sales (d) - - ns
(21) 2 (11) ns Organic loan repayments from equity affiliates (e) (33) (12) ns
1,618 1,329 2,164 -25% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 4,680 6,560 -29%
+ e)
2.5. Marketing & Services
3(rd )quarter 2(nd) quarter 3(rd )quarter 3(rd) quarter 2023 vs 9( )months 9( )months 9 months 2023 vs
2023 2023 2022 3(rd )quarter 2022 (in millions of dollars) 2023 2022 9 months 2022
206 665 939 -78% Cash flow from operating activities (a) 198 2,417 -92%
(599) (31) 398 ns (Increase) decrease in working capital (b) (1,672) 144 ns
218 (60) (239) ns Inventory effect (c) 71 445 -84%
- - - ns Capital gain from renewable project sales (d) - - ns
- - - ns Organic loan repayments from equity affiliates (e) - - ns
587 756 780 -25% Cash flow from operations excluding working capital (CFFO) (f = a - b - c + d 1,799 1,828 -2%
+ e)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
3. Reconciliation of capital employed (balance sheet) and calculation of ROACE
In millions of dollars Exploration & Production Integrated Integrated Power Refining & Chemicals Marketing & Services Corporate Inter- Company Company
LNG
Adjusted net operating income 3(rd )quarter 2023 3,138 1,342 506 1,399 423 80 - 6,888
Adjusted net operating income 2(nd) quarter 2023 2,349 1,330 450 1,004 449 (248) - 5,334
Adjusted net operating income 1(st) quarter 2023 2,653 2,072 370 1,618 280 (77) - 6,916
Adjusted net operating income 4(th) quarter 2022 3,528 2,408 481 1,487 334 (25) - 8,213
Adjusted net operating income (a) 11,668 7,152 1,807 5,508 1,486 (270) - 27,351
Balance sheet as of September 30, 2023
Property plant and equipment intangible assets net 84,906 24,683 11,635 11,350 6,449 609 - 139,632
Investments & loans in equity affiliates 2,823 13,624 8,840 4,293 573 - - 30,153
Other non-current assets 3,473 2,874 711 722 1,124 (35) - 8,869
Inventories, net 1,542 1,768 657 14,337 4,208 - - 22,512
Accounts receivable, net 7,152 8,436 5,415 23,483 9,416 1,734 (32,038) 23,598
Other current assets 5,623 10,327 8,081 2,452 3,531 2,815 (10,577) 22,252
Accounts payable (5,860) (9,514) (5,659) (35,396) (10,972) (1,787) 31,920 (37,268)
Other creditors and accrued liabilities (9,532) (12,307) (8,178) (6,803) (4,919) (6,361) 10,695 (37,405)
Working capital (1,075) (1,290) 316 (1,927) 1,264 (3,598) - (6,310)
Provisions and other non-current liabilities (26,342) (3,858) (1,586) (3,757) (1,207) 623 - (36,127)
Assets and liabilities classified as held for sale 5,607 - 127 130 1,298 - - 7,162
Capital Employed (Balance sheet) 69,392 36,033 20,043 10,811 9,501 (2,402) - 143,378
Less inventory valuation effect - - - (1,809) (476) - - (2,285)
Capital Employed at replacement cost (b) 69,392 36,033 20,043 9,002 9,025 (2,402) - 141,093
Balance sheet as of September 30, 2022
Property plant and equipment intangible assets net 86,341 24,387 6,791 10,670 7,317 570 - 136,076
Investments & loans in equity affiliates 2,874 13,525 7,694 4,228 422 - - 28,743
Other non-current assets 3,782 1,039 2,050 577 1,142 (78) - 8,512
Inventories, net 1,230 2,910 1,217 14,474 4,587 2 - 24,420
Accounts receivable, net 7,827 25,065 3,087 19,382 9,043 1,245 (37 458) 28,191
Other current assets 6,846 63,814 23,448 2,842 4,157 2,558 (30 212) 73,453
Accounts payable (5,818) (22,866) (12,466) (31,969) (12,166) (998) 37 341 (48,942)
Other creditors and accrued liabilities (13,114) (65,868) (12,109) (8,438) (5,535) (5,733) 30 329 (80,468)
Working capital (3,029) 3,055 3,177 (3,709) 86 (2,926) - (3,346)
Provisions and other non-current liabilities (25,051) (4,264) (2,686) (3,566) (1,298) (52) - (36,917)
Assets and liabilities classified as held for sale 124 - 155 - - - - 279
Capital Employed (Balance sheet) 65,041 37 742 17 181 8,200 7,669 (2,486) - 133,347
Less inventory valuation effect - - - (2,399) (528) - - (2,927)
Capital Employed at replacement cost (c) 65,041 37 742 17 181 5,801 7,141 (2,486) - 130,420
ROACE as a percentage (a / average (b + c)) 17.4% 19.4% 9.7% 74.4% 18.4% 20.1%
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
Reconciliation of consolidated net income to adjusted net operating income
3(rd )quarter 2(nd) quarter 3(rd )quarter 9( )months 9( )months
2023 2023 2022 (in millions of dollars) 2023 2022
6,690 4,152 6,748 Consolidated net income (a) 16,473 17,603
(305) (245) (289) Net cost of net debt (b) (843) (844)
(881) (449) (2,205) Special items affecting net operating income (1,497) (11,950)
- - 1,450 Gain (loss) on asset sales 203 1,450
- (5) (19) Restructuring charges (5) (41)
(698) (469) (3,118) Impairments (1,227) (11,898)
(183) 25 (518) Other (468) (1,461)
623 (377) (847) After-tax inventory effect : FIFO vs. replacement cost (145) 1,253
365 (111) (224) Effect of changes in fair value (180) (855)
107 (937) (3,276) Total adjustments affecting net operating income (c) (1,822) (11,552)
6,888 5,334 10,313 Adjusted net operating income (a - b - c) 19,138 29,999
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