EXHIBIT
99.10
 |
PRESS
RELEASE |
Third
quarter 2021 results
TotalEnergies
benefits from favorable environment
leveraging leading position in LNG to generate
$4.8
billion adjusted net income and $8.4 billion cash flow
Paris,
October 28, 2021 - The Board of Directors of TotalEnergies SE,
meeting on October 27, 2021, under the Chairmanship of Chief Executive Officer Patrick Pouyanné, approved the Company's third
quarter 2021 accounts. On the occasion, Patrick Pouyanné said:
"The
global economic recovery, notably in Asia, drove all energy prices sharply higher in the third quarter due to the interconnection of
energy systems. Gas prices in Asia and Europe, up more than 85% from the previous quarter, reached unprecedented levels, and oil prices
gained 7%, continuing their steady year-long rise.
TotalEnergies
reported adjusted net income of $4.8 billion, up 38% compared to the second quarter 2021, fully benefiting from its multi-energy model,
and, particularly this quarter, from its position as a world leader in LNG. The Company generated cash flow (DACF) of $8.4 billion, up
nearly 25% compared to the previous quarter, and adjusted EBITDA of $11.2 billion.
The
integrated Gas Renewables & Power (iGRP) segment generated adjusted net income of $1.6 billion and cash flow of $1.7 billion,
both new record highs, thanks to an outperformance of its trading activities, which leveraged its integrated worldwide LNG portfolio.
The renewables and electricity activities continued to grow, with gross renewable electricity generation capacity reaching nearly 10
GW, thanks mainly to the addition of 1 GW during the quarter from India. The number of electricity customers grew to six million.
Exploration &
Production, benefiting from a 2% production increase during the quarter, thanks to the evolution of OPEC+ quotas, and from higher Brent
and natural gas prices, reported $2.7 billion of adjusted net operating income, up more than 20% from the previous quarter, and cash
flow of $4.9 billion.
Downstream
took advantage of petrochemical margins that remained high and of the improvement in refining margins in Europe, although impacted by
the rise in energy costs. Marketing & Services confirmed its return to pre-crisis level results. The Downstream generated adjusted
net operating income and cash flow that were up by approximately 10% over the quarter to $1 billion and $1.6 billion, respectively.
Maintaining
discipline on investments, TotalEnergies reported net cash flow of $6.2 billion in the third quarter, covering the interim dividend of
$2.1 billion and allowing it to continue to reduce its net debt, with gearing of 17.7% as of September 30, 2021. The return on equity
was 12% over the past twelve months. Strong cash generation from oil and gas makes it possible to invest in profitable growth projects
in renewables & electricity, and thus to build a sustainable multi-energy company, combining energy transition and shareholder
returns.
The
Board of Directors decided to distribute a third interim dividend for the 2021 financial year of €0.66/share and confirms the completion
of $1.5 billion share repurchases in the fourth quarter 2021.”
| • | Signed
major agreements in Iraq covering investments in four projects (gas treatment for electricity
generation, solar power, optimization of an existing field, seawater treatment) for the sustainable
development of natural resources in the Basra area |
Sustainability
| • | TotalEnergies
contributed to energy transition dialog in view of COP26 with the publication of "Energy
Panorama" and "TotalEnergies Energy Outlook 2021" |
| • | Methane
emissions: deployed innovative technology developed by Qnergy to significantly reduce methane
emissions and partnered with GHGSat to monitor methane emissions at sea by satellite |
| • | CCS:
Aramis partnership with Shell, EBN and Gasunie, for the development of CO2 transport
infrastructure for storage in depleted gas fields in the Netherlands |
Renewables
and Electricity
| • | Adani
Green Energy Limited (TotalEnergies 20%) acquired SB Energy India's portfolio of 5 GW of
renewable power generation capacity in operation and under construction in India |
| o | Submitted
bid with Green Investment Group (GIG) and RIDG for a 2 GW project in Scotland and study of
associated industrial-scale green hydrogen project |
| o | Associations
with Simply Blue Group for floating wind development in the U.S., and with GIG and Qair for
floating wind development in France |
| o | Renewable
electricity sales contract of 50 GWh/year over 15 years with Air Liquide in Belgium |
| o | Partnership
with Amazon to supply its data centers with renewable electricity (474 MW), in Europe and
the U.S. |
| o | Mercedes-Benz
entered as an equal partner with TotalEnergies and Stellantis in Automotive Cell Company
(ACC), targeting at least 120 GWh EV battery manufacturing capacity by 2030 |
| o | Acquired
a network of 1500 EV charging stations in Singapore |
| o | Obtained
concession for Antwerp's EV public charging network |
| o | Partnered
with China Three Gorges Corporation to develop more than 11,000 EV fast-charging stations
in Hubei Province, China |
| o | Launched
with other industrial players the world's largest fund dedicated to the development of carbon-free
hydrogen infrastructure, with an investment target of €1.5 billion |
| o | Agreement
with Air Liquide for the development of low-carbon hydrogen production in the Normandy industrial
basin, backed by technologies such as CCS and electrolysis |
Upstream
| • | Launched
the fourth development phase of the giant Mero field in Brazil |
Downstream
| • | Expanded
Synova in Normandy to double TotalEnergies' recycled plastics production capacity |
| • | Partnered
with Safran in the field of decarbonization of the aviation sector |
| (3) | Certain
transactions referred to in the highlights are subject to approval by authorities or to conditions
as per the agreements. |
| 2. | Key
figures from TotalEnergies’ consolidated financial statements(4) |
| * | Average
€-$ exchange rate: 1.1788 in the third quarter 2021 and 1.1962 in the first nine months
2021. |
| (4) | Adjusted
results are defined as income using replacement cost, adjusted for special items, excluding
the impact of changes for fair value; adjustment items are on page 16. |
| (5) | Adjusted
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) corresponds 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. |
| (6) | 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). |
| (7) | In
accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from
the adjusted net income less the interest on the perpetual subordinated bond |
| (8) | Organic
investments = net investments excluding acquisitions, asset sales and other operations with
non-controlling interests. |
| (9) | Net
acquisitions = acquisitions – assets sales – other transactions with non-controlling
interests (see page 17). |
| (10) | Net
investments = organic investments + net acquisitions (see page 17). |
| (11) | Operating
cash flow before working capital changes, is defined as cash flow from operating activities
before changes in working capital at replacement cost, excluding the mark-to-market effect
of iGRP’s contracts and including capital gain from renewable projects sale (effective
first quarter 2020). The inventory valuation effect is explained on page 19. The reconciliation
table for different cash flow figures is on page 17. |
| (12) | DACF
= debt adjusted cash flow, is defined as operating cash flow before working capital changes
and financial charges |
| 3. | Key figures of environment, greenhouse
gas emissions and production |
| 3.1 | Environment* – liquids and gas price
realizations, refining margins |
| * | The
indicators are shown on page 20 |
| ** | This
indicator represents TotalEnergies’ average margin on variable cost for refining in
Europe (equal to the difference between TotalEnergies European refined product sales and
crude oil purchases with associated variable costs divided by volumes refined in tons) –
3Q21 data restated to reflect 2Q21 environment for energy costs. |
The
average LNG selling price increased by 38% this quarter compared to the previous quarter, benefiting on a lagged basis from the increase
in the oil and gas price indexes on long-term contracts.
| 3.2 | Greenhouse
gas emissions(13) |
| (13) | The
six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O,
HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described
in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from the Company’s
emissions or are considered as non-material and are therefore not counted. |
| (14) | Scope
1+2 GHG emissions of operated oil & gas 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 2020 Universal Registration Document) and indirect emissions
attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H2). They do not include facilities for power generation from renewable
sources or natural gas, such as combined cycle natural gas power plants (CCGT) and sites
with GHG emissions and activities of less than 30 kt CO2e/year. |
| (15) | Scope
3 GHG emissions are defined as the indirect emissions of greenhouse gases related to the
use by customers of energy products sold for end-use, i.e. combustion of the products to
obtain energy. A stoichiometric emission (oxidation of molecules to carbon dioxide) factor
is applied to these sales to obtain an emission volume. The Company usually follows the oil
& gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol
methodologies. Only item 11 of Scope 3 (use of sold products), which is the most significant,
is reported. |
| (16) | Scope
1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 GHG emissions of facilities
operated by the Company and indirect GHG emissions related to the use by customers of energy
products sold for end-use (Scope 3) in the EU, Norway, United Kingdom and Switzerland. |
| * | Company
production = E&P production + iGRP production |
Hydrocarbon
production was 2,814 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2021, up 4% year-on-year, comprised of:
| • | +6%
due to project start-ups and ramp-ups, including North Russkoye in Russia and Iara in Brazil,
and the resumption of production in Libya, |
| • | +5%
due to the increase in gas demand and OPEC+ production quotas, |
| • | -1%
due to the price effect, |
| • | -3%
due to planned maintenance and unplanned downtime, notably in Norway (Snøhvit) |
| • | -3%
due to natural decline of fields. |
Hydrocarbon
production was 2,814 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2021, up 2% quarter-on-quarter, due to
the end of summer maintenance programs and the increase in OPEC+ production quotas.
For
the first nine months of 2021 hydrocarbon production was 2,808 kboe/d, down 3% year-on-year, comprised of:
.
| • | +3%
due to project start-ups and ramp-ups, including North Russkoye in Russia, Iara in Brazil
and Johan Sverdrup in Norway, and the resumption of production in Libya, |
| • | +2%
due to the increase in gas demand, particularly in Norway, and OPEC+ production quotas, |
| • | -1%
due to portfolio effect, in particular the disposals of assets in the United Kingdom and
the CA1 block in Brunei, |
| • | -1%
due to the price effect, |
| • | -3%
due planned maintenance and unplanned downtime, notably in the United Kingdom and Norway
(Snøhvit), |
| • | -3%
due to natural decline of fields. |
| 4. | Analysis
of business segments |
| 4.1 | Integrated
Gas, Renewables & Power (iGRP) |
| 4.1.1 | Production
and sales of Liquefied natural gas (LNG) and electricity |
| * | The
Company’s equity production may be sold by TotalEnergies or by the joint ventures |
Hydrocarbon
production for LNG increased by 6% compared to the previous quarter, in particular due to the end of planned maintenance at Ichthys in
Australia.
Total
LNG sales increased sharply compared to 2020, up 24% for the quarter and 7% for the first nine months.
| (1) | Includes
20% of Adani Green Energy Ltd gross capacity effective first quarter 2021. |
| (2) | End
of period data. |
| (3) | Solar,
wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants. |
| (4) | TotalEnergies
share (% interest) of EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)
in Renewables and Electricity affiliates, regardless of consolidation method. |
| * | 2Q21
data corrected for estimated results of AGEL. |
Gross
installed renewable power generation capacity grew to 9.5 GW at the end of the third quarter 2021, up 1.2 GW thanks in particular to
the acquisition by AGEL (TotalEnergies 20%) during the quarter of the operating assets of SB Energy India's 5 GW renewable portfolio.
Total gross capacity increased by 1 GW over the quarter to 42.7 GW, mainly due to the addition of a 1 GW solar power plant project in
Iraq.
Net
electricity generation stood at 4.7 TWh in the third quarter 2021, up 17% year-on-year, mainly due to strong growth in renewable electricity
generation and the acquisition of four natural gas power plants (CCGT) in France and Spain in the fourth quarter 2020.
TotalEnergies’
Renewables and Electricity business adjusted EBITDA was $291 million in the third quarter 2021, a 4.6-fold increase over one year, driven
by growing electricity production, particularly from renewables, and the number of gas and electricity customers.
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to lease contracts, excluding the impact of contracts
recognized at fair value for the sector and including capital gains on the sale of renewable
projects. |
| *** | Excluding
financial charges, except those related to leases. |
Adjusted
net operating income for the iGRP segment was:
| • | $1,608
million in the third quarter 2021, a 5.6-fold increase from a year ago, thanks to the increase
in LNG prices and the strong performance of gas and electricity trading activities, |
| • | $3,484
million for the first nine months of 2021, an increase of 2.3-times compared to last year,
for the same reasons. |
Operating
cash flow before working capital changes was:
| • | $1,720
million in the third quarter 2021, an increase of 2.5-times compared to the third quarter
2020, thanks to the rise in LNG prices and the strong performance of gas and electricity
trading activities, |
| • | $3,683
million for the first nine months of 2021, up 57% year-on-year, for the same reasons. |
Cash
flow from operations was -$463 million for the third quarter due to variations in margin calls related to hedging contracts in a context
of highly volatile gas and electricity markets.
| 4.2 | Exploration &
Production |
| * | Details
on adjustment items are shown in the business segment information annex to financial statements. |
| ** | 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). |
| *** | Excluding
financial charges, except those related to leases. |
Adjusted
net operating income for Exploration & Production was:
| • | $2,726
million in the third quarter 2021, more than three times higher than in the third quarter
2020, thanks to the sharp increase in oil and gas prices, |
| • | $6,914
million in the first nine months of 2021, more than five times higher than in the first nine
months of 2020, for the same reasons. |
Operating
cash flow before working capital changes was $4,943 million in the third quarter 2021, up 87% year-on-year, and $13,029 million in the
first nine months of 2021, up 85% year-on-year, in line with higher oil and gas prices.
| 4.3 | Downstream
(Refining & Chemicals and Marketing & Services) |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases. |
| 4.4.1 | Refinery
and petrochemicals throughput and utilization rates |
| * | Includes
refineries in Africa reported in the Marketing & Services segment. |
| ** | Based
on distillation capacity at the beginning of the year, excluding Grandpuits (definitively
shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter
2021. |
| * | Olefins. |
| ** | Based
on olefins production from steamcrackers and their treatment capacity at the start of the
year. |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases. |
Adjusted
net operating income for the Refining and Chemicals segment:
| • | Increased
sharply year-on-year to $602 million in the third quarter 2021, compared to -$88 million
in the third quarter 2020. This increase is due to the strong performance of petrochemicals
and European refining margins, which were negative in 2020 due to weak demand, |
| • | Increased
by 56% year-on-year to $1,356 million in the first nine months of 2021, compared to $869
million, for the same reasons. |
Operating
cash flow before working capital changes increased year-on-year by 3.9-times in the third quarter 2021 to $934 million and by 9% in the
first nine months of 2021 to $2,081 million.
| 4.5.1 | Petroleum
product sales |
| * | Excludes
trading and bulk refining sales |
Sales
of petroleum products grew by 7% year-on-year in the third quarter 2021, thanks to the improvement in the pandemic situation and the
global economic rebound. This increase is supported notably by the recovery in network sales activity.
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases |
Adjusted
net operating income for the Marketing & Services sector was $438 million in the third quarter 2021 compared to $461 million
a year earlier.
Operating
cash flow before working capital changes was $677 million in the third quarter 2021 and $1,862 million in the first nine months of the
year.
| 5.1 | Adjusted net
operating income from business segments |
Adjusted
net operating income for the sectors was:
| • | $5,374
million in the third quarter 2021, compared to $1,459 million a year earlier, due to higher
oil and gas prices, |
| • | $12,893
million for the first nine months of 2021, compared to $4,580 million last year, for the
same reason. |
| 5.2 | Adjusted net
income (TotalEnergies share) |
Adjusted
net income (TotalEnergies share) was:
| • | $4,769
million in the third quarter 2021 compared to $848 million a year earlier, due to higher
oil and gas prices, |
| • | $11,235
million for the first nine months of 2021, compared to $2,755 million last year, for the
same reason. |
Adjusted
net income excludes the after-tax inventory effect, special items and impact of changes in fair value(17).
Total
net income adjustments(18) were -$124 million and include the
capital loss of -$177 million on the disposal of TotalEnergies' interest in the Utica asset in the United States.
TotalEnergies'
effective tax rate was 39.6% in the third quarter of 2021, compared to 34.3% in the previous quarter and 45.7% in the third quarter of
2020. The high rate in 2020 was due to a negative adjusted net operating income in Refining & Chemicals, which reduced the base
for calculating the rate at the Company level.
| 5.3 | Adjusted earnings
per share |
Adjusted
fully-diluted earnings per share was:
| • | $1.76
in the third quarter 2021, calculated based on 2,655 million weighted-average diluted shares,
compared to $0.29 a year earlier, |
| • | $4.14
for the first nine months of 2021, calculated based on 2,648 million weighted-average diluted
shares, compared to $0.97 a year earlier. |
As
of September 30, 2021, the number of fully-diluted shares was 2,660 million.
| 5.4 | Acquisitions
- asset sales |
Acquisitions
were:
| • | $126
million in the third quarter 2021 and include notably a 10% increase in the Lapa block in
Brazil, |
| • | $2,996
million in the first nine months of 2021 and include the item above as well as the acquisitions
of a 20% interest for $2 billion in the renewable project developer in India, Adani Green
Energy Limited, of Fonroche Biogaz in France and of the interest in the Yunlin wind project
in Taiwan. |
Asset
sales were:
| • | $1,084
million in the third quarter 2021 and includes notably the payment by GIP of more than $750
million as part of the tolling agreement for the infrastructure of the Gladstone LNG project
in Australia, |
| • | $1,967
million in the first nine months of 2021, including the above item as well as the sale in
France of a 50% interest in a portfolio of renewable projects with total capacity of 285
MW (100%), the sale of the 10% interest in onshore block OML 17 in Nigeria, a price supplement
related to the sale of Block CA1 in Brunei, the sale of the Lindsey refinery in the United
Kingdom, the sale of interests in the TBG pipeline in Brazil, the sale of shares in Clean
Energy Fuels Corp., and the sale of interests in Tellurian Inc. in the United States. |
| (17) | Adjustment
items shown on page 19. |
| (18) | Details
shown on page 16 and in the appendix to the financial statements. |
TotalEnergies’
net cash flow(19)
was:
| • | $6,205
million in the third quarter 2021 compared to $1,879 million a year ago, reflecting the $4.3
billion increase in operating cash flow before working capital changes and the slight decrease
of $57 million in net investments to $1,855 million in the third quarter 2021, |
| • | $10,756
million in the first nine months of 2021 compared to $2,740 million in the same period a
year ago, reflecting the $8.6 billion increase in operating cash flow before working capital
changes, slightly offset by a $563 million increase in net investments to $9,022 million
in the first nine months of 2021. |
Cash
flow from operations of $5,640 million for the quarter, compared to operating cash flow before working capital changes of $8,060 million,
was negatively impacted for an amount of $2.1 billion by variations in margin calls related to hedging contracts in a context of highly
volatile natural gas and electricity markets, as well as by a negative inventory effect of $1.2 billion and an increase in tax liabilities
of $0.9 billion.
The
return on equity was 12.0% for the twelve months ended September 30, 2021.
The
return on average capital employed was 10.0% for the twelve months ended September 30, 2021.
| 6. | TotalEnergies
SE statutory accounts |
Net
income for TotalEnergies SE, the parent company, was €5,635 million for the first nine months of 2021 compared to €4,727 for
the same period in 2020.
| * | 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
2021. 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. Please find the indicators
detailed page 20. |
| ** | In
a 50 $/b Brent environment. |
| (19) | Net
cash flow = operating cash flow before working capital changes - net investments (including
other transactions with non-controlling interest). |
The
steady recovery in oil demand to pre-crisis levels, except for aviation fuel, led to nearly continuous price increases that reached $85/b
in mid-October, close to a 7-year high. Controlled production increases from OPEC+, the continued draw-down of crude inventories and
the strong investment discipline in oil & gas supported the increase. In addition, an increase in fuel demand from the aviation
sector is beginning to materialize, also supporting high prices.
The
increase in gas markets, which began in the first half of the year, accelerated considerably in the third quarter, reaching record levels
in Europe and Asia. Barring an exceptionally mild winter, the low inventory level for gas and expected sustained demand are likely to
keep gas prices in Europe and Asia at high levels until the second quarter 2022.
Given
the outlook for OPEC+ quotas and seasonal gas demand in the fourth quarter of 2021, TotalEnergies expects fourth quarter 2021 hydrocarbon
production to be in the range of 2.85-2.9 Mboe/d.
TotalEnergies
anticipates that 2021 oil price increases will positively impact its average LNG selling price for the next six months, given the lag
effect on price formulas. It is expected to be above $12/Mbtu in the fourth quarter 2021.
TotalEnergies
maintains its cost discipline, with net investments expected to be close to $13 billion in 2021, including $3 billion dedicated to renewables
and electricity.
The
Company confirms its cash flow allocation priorities: investing in profitable projects to implement TotalEnergies' transformation strategy
into a sustainable multi-energy company, linking the growth of its dividend to its underlying cash flow growth, maintaining a strong
balance sheet and a long-term debt rating with a minimum "A" level by anchoring gearing below 20%, and allocating up to 40%
of the surplus cash generated above $60/b to share buybacks.
*
* * *
To
listen to the conference call with CFO Jean-Pierre Sbraire today at 13:30 (Paris time) please log on to totalenergies.com
or call +44 (0) 203 009 5709 in Europe or +1 646 787 1226 in the United States (code: 4496213).
The
conference replay will be available on totalenergies.com after the event.
*
* * *
TotalEnergies
contacts
Media Relations:
+33 1 47 44 46 99 | presse@totalenergies.com | @TotalEnergiesPress
Investor Relations:
+44 (0)207 719 7962 | ir@totalenergies.com
| 9. | Operating
information by segment |
| 9.1 | Company’s
production (Exploration & Production + iGRP) |
| 9.2 | Downstream
(Refining & Chemicals and Marketing & Services) |
| (1) | Includes
20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021. |
| (2) | End-of-period
data. |
| X | not
specified, capacity < 0.2 GW |
| 10. | Adjustment
items to net income (TotalEnergies share) |
| 11. | Reconciliation
of adjusted EBITDA with consolidated financial statements |
| 11.1 | Reconciliation
of net income (TotalEnergies share) to adjusted EBITDA |
| 11.2 | Reconciliation
of revenues from sales to adjusted EBITDA and net income (TotalEnergies share) |
| 12. | Investments
- Divestments |
| * | Change
in debt from renewable projects (TotalEnergies share and partner share). |
| * | Operating
cash flow before working capital changes, is defined as cash flow from operating activities
before changes in working capital at replacement cost, excluding the mark-to-market effect
of iGRP’s contracts and including capital gain from renewable projects sale (effective
first quarter 2020). |
Historical
data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
| ** | Changes
in working capital are presented excluding the mark-to-market effect of iGRP’s contracts. |
| * | Excludes
leases receivables and leases debts |
| 15. | Return
on average capital employed |
Twelve
months ended September 30, 2021
Twelve
months ended June 30, 2021
Twelve
months ended September 30, 2020
| * | At
replacement cost (excluding after-tax inventory effect).
|
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. TotalEnergies SE has no liability for the
acts or omissions of these entities.
This
press release presents the results for the third quarter of 2021 and first nine months of 2021 from the consolidated financial statements
of TotalEnergies SE as of September 30, 2021. 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 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 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 qualified 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 asset disposals, which are not considered to be representative of the normal course
of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within
the coming years.
(ii) Inventory
valuation effect
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 competitors.
In
the replacement cost method, which approximates the LIFO (Last-In, First-Out) 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 price differentials 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 according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect
of changes in fair value
The
effect of changes in fair value presented as an adjustment item reflects, for some transactions, differences between internal measures
of performance used by TotalEnergies’ management 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, 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.
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