REG-TotalEnergies SE Trading Statement

TotalEnergies SEAnnouncement

17/10/2023 07:45

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Trading Statement

 

The main indicators, estimated financial information and key elements
impacting TotalEnergies’ (Paris:TTE) (LSE:TTE) (NYSE:TTE) third quarter 2023
aggregates are shown below:
 Main indicators                                                                                                                    
                                                            3Q23      2Q23            1Q23            4Q22            3Q22          
 €/$                                                        1.09      1.09            1.07            1.02            1.01          
 Brent                                          ($/b)       86.7      78.1            81.2            88.8            100.8         
 Average liquids price * ((1))                  ($/b)       78.9      72.0            73.4            80.6            93.6          
 Average gas price * ((1))                      ($/Mbtu)    5.47      5.98            8.89            12.74           16.83         
 Average LNG price ** ((1))                     ($/Mbtu)    9.56      9.84            13.27           14.83           21.51         
 Variable Cost Margin, European refining ***    ($/t)       95.1      42.7            87.8            73.6            99.2          


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

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

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

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

Main elements impacting the quarter aggregates


 * Hydrocarbon production is expected to be nearly 2.5 Mboe/d, benefiting from
the start-up of Absheron in Azerbaijan and the effective entry into the Ratawi
field (GGIP) in Iraq. The Exploration & Production effective tax rate is
expected to be lower in the third quarter compared to the second quarter,
notably due to the lower seasonal relative weight of North Sea production.

 * The Integrated LNG result is expected to be in line with the previous quarter,
in an overall comparable environment.

 * Integrated Power results are expected to be higher at nearly $500 million.

 * Downstream results will benefit from the increase in European refining
margins. It should be noted that the Port Arthur refinery in the United Stated
was impacted by an unplanned shutdown since August.

2023 Sensitivities*
                                                  Change                 Estimated impact on        Estimated impact on  
                                                                         
adjusted                  
cash flow from      
                                                                         
net operating income      
operations          
 Dollar                                           +/- 0.1 $ per €        -/+ 0.1 B$                 ~0 B$                
 Average liquids price**                          +/- 10 $/b             +/- 2.5 B$                 +/- 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$           


* 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.

** In a 80 $/b Brent environment.

Disclaimer

The terms “TotalEnergies”, “TotalEnergies company” and “Company”
in this document are used to designate TotalEnergies SE and the consolidated
entities directly or indirectly controlled by TotalEnergies SE. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate and independent legal entities.

The data presented in this document is based on TotalEnergies’ internal
preliminary reporting and is not audited. This data is not intended to be a
comprehensive summary of all items that will affect TotalEnergies SE’s
results or to provide an estimate of the third quarter 2023 results. Actual
results may vary. To the extent permitted by law, TotalEnergies SE disclaims
all liability from the use of this data.

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

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

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

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



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