EXHIBIT 99.8
|  | PRESS
RELEASE |
First
quarter 2022 results
TotalEnergies
records a $4.1 billion impairment for Russia
and
reports IFRS net income of $4.9 billion
Paris,
April 28, 2022
- The Board of Directors of TotalEnergies SE, meeting on April 27, 2022, led by Chairman
and CEO Patrick Pouyanné, approved the Company's financial statements for the first quarter of 2022. On this occasion, Patrick
Pouyanné said:
"The
rebound in energy prices seen since the second half of 2021 amplified
after Russia’s military aggression against Ukraine in the first quarter of 2022, sending oil prices to more than $100/b and gas
prices in Europe and Asia to historic highs above $30/Mbtu during the quarter.
In
this context of strong geopolitical tensions, the Company outlined clear principles of conduct for managing its Russian activities: beyond
ensuring strict compliance with current and future European sanctions, TotalEnergies SE decided to provide no further capital
for the development of projects in Russia and initiated the gradual suspension
of its activities, including the planned end of its activities related to Russian oil and petroleum products. Taking into account notably
the impact of new sanctions prohibiting the export of LNG technologies benefiting a Russian company on the execution ability of the Arctic
LNG 2 project, TotalEnergies took an impairment of $4.1 billion in its accounts as of March 31.
In
the first quarter of 2022, the Company reported adjusted net income
of $9 billion and IFRS net income of $4.9 billion. It generated cash flow of $11.6 billion (including $0.3 billion from Russian Upstream
assets) and free cash flow of $5.8* billion. Its gearing ratio decreased to 12.5% and its return on average capital employed
is 18%.
The
iGRP (integrated Gas, Renewables & Power) segment
posted adjusted net operating income of $3.1 billion, up 11% over the previous quarter, and cash flow of $2.6 billion in the first
quarter of 2022. Notably, TotalEnergies leveraged its integrated midstream LNG to saturate its European regasification capacity
thanks to record spot LNG purchases (4.7 Mt) and posted a very good performance in gas, LNG and electricity trading activities.
TotalEnergies launched with its partners the Cameron LNG expansion project that will contribute to Europe's security of supply.
Investments in Renewables & Electricity amounted to $0.9 billion, in line with the annual target of $3.5 billion. In
particular, TotalEnergies strengthened its offshore wind portfolio by obtaining concessions to develop 3 GW in the United States and
2 GW in Scotland.
Exploration
and Production benefited from stable production and high oil and
gas costs to post adjusted net operating income of $5 billion and cash flow of $7.3 billion in the first quarter of 2022. TotalEnergies
has announced a promising discovery in deep-offshore Namibia.
Downstream
benefited from high distillate margins in Europe despite higher energy prices and outperformance by
its oil trading activities to post adjusted net operating income of
$1.4 billion and cash flow of $1.9 billion.
TotalEnergies launched feasibility studies for two sustainable aviation fuel (SAF) projects in China with Sinopec and in Japan with Eneos.
Given
the strong cash flow generation and solid balance sheet, the Board
of Directors decided to give priority to countercyclical opportunities to accelerate the Company's transformation. It confirmed the increase
by 5% of the first 2022 interim dividend to €0.69 per share and authorized the Company to buyback up to $3 billion of its shares
in the first half of 2022.”
| * | Operating
cash flow before working capital changes minus net investments, minus dividends paid and shares buybacks. |
Social
and environmental responsibility
| ● | Statement
of principles of conduct for managing its Russian activities |
| ● | Publication
of the Sustainability & Climate – 2022 Progress Report presenting the
advances made on TotalEnergies' transformation strategy and the update of its climate ambition |
| ● | Publication
of TotalEnergies' first tax transparency report |
| ● | Solidarity
measures taken by TotalEnergies in France aimed at reducing its customers' gas and fuel bills
with a discount of 10 cts on each liter of fuel sold at its service stations and the implementation
of a "gas cheque" of €100 for its gas customers in a precarious energy situation |
| ● | Implementation
of the responsible withdrawal of TotalEnergies from Myanmar: transfer of the operatorship
to PTTEP by ensuring a fair transition for key stakeholders, employees and communities. |
Renewables
and Electricity
| o | Award
of leases to develop offshore wind farms for 3 GW on the east coast of the United States,
off New York and New Jersey, and 2 GW in Scotland with Green Investment Group (GIG) and RIDG |
| o | Partnership
with KGHM in Poland to participate in the Polish government tender for the development of
offshore wind projects |
| o | Acquisition
of SunPower's industrial and commercial solar business in the United States |
| o | Creation
of a joint venture with Eneos to develop onsite B2B solar distributed generation across Asia,
with a target capacity of 2 GW in the next 5 years |
| o | Core
Solar: acquisition of a 4 GW pipeline of projects in the United States |
| ● | Launch
of the start-up acceleration program dedicated to the electricity business |
LNG
| ● | Expansion
of the strategic alliance with Sempra to develop the Vista Pacifico LNG project in Mexico
and to co-develop several onshore and offshore renewable projects in North America |
| ● | Signature
of Heads of Agreement with Sempra, Mitsui, Mitsubishi and NYK for the launch of the Cameron
LNG expansion project with a maximum production capacity of 6.75 Mtpa and a 5% increase of
the current 13.5 Mtpa capacity |
Upstream
| ● | Withdrawal
from the North Platte deep-water project in the Gulf of Mexico |
| ● | Significant
new oil and associated gas discovery at the Krabdagu-1 well located on Block 58 in Suriname |
| ● | Significant
discovery of light oil and associated gas on the Venus prospect located on Block 2913B in
Namibia |
Downstream
and new molecules
| ● | Sustainable
aviation fuel : |
| o | Start
of sustainable aviation fuel production at the Normandy platform, in France |
| o | Collaboration
with Eneos to jointly conduct a feasibility study of a sustainable aviation fuel production
unit with 300 kt/y capacity at their Negishi refinery in Japan |
| ● | Circular
economy: signature of an agreement with Honeywell to promote the development of advanced
plastic recycling in Europe |
Carbon
sinks
| ● | $50
million contribution in the Tropical Asia Forest Fund 2 to invest in sustainable forestry
projects in Southeast Asia |
| ● | Start-up
of the "3D" carbon capture industrial pilot at the ArcelorMittal site in Dunkirk |
| (3) | Some
of the transactions mentioned in the highlights remain subject to the agreement of the authorities or to the fulfilment of conditions
precedent under the terms of the agreements. |
| 2. | Key
figures from TotalEnergies’ consolidated financial statements(4) |
| * | Average
€-$ exchange rate: 1.1217 in the first quarter 2022, 1.1435 in the fourth quarter 2021,
1.2048 in the first quarter 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 17. |
| (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 19). |
| (10) | Net investments = organic investments + net acquisitions
(see page 19). |
| (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 21. The reconciliation table for different cash flow figures is on page 19. |
| (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 22. |
| ** | 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). |
The
average LNG selling price at $13.60/Mbtu is up 4% this quarter compared to the previous quarter, benefiting on a lagged basis from the
increase in oil and gas indexes on long-term contracts as well as high spot gas prices in the quarter.
| 3.2 | Greenhouse
gas emissions(13) |
Estimated
1Q22 emissions
*
Excluding Covid effect
Estimated
1Q22 emissions. Equity share quarterly 2021 data is not available.
| (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 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 2021 Universal Registration Document) and indirect emissions attributable
to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2). |
| (15) | 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 and gas value chain, i.e., the higher
of the two production volumes or sales to end customers. For TotalEnergies, in 2021 and 2022,
the calculation of Scope 3 GHG emissions for the oil value chain considers oil products and
biofuels sales (higher than production) and for the gas value chain, gas sales either as
LNG or as part of direct sales to B2B/B2C customers (higher than or equivalent to marketable
gas production). |
| (16) | Scope
3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the sale
of petroleum products (including biofuels). |
| (17) | 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 (Scope 3) in the EU, Norway, United Kingdom and Switzerland. |
| * | Company
production = E&P production + iGRP production. |
Hydrocarbon
production was 2,843 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2022, down 1% year-on-year, comprised of:
| ● | +2%
due to the start-up and ramp-up of projects, including the CLOV Phase 2 and Zinia Phase 2
projects in Angola, as well as Iara in Brazil, |
| ● | +2%
due to the increase in production quotas of OPEC+ countries, |
| ● | -2%
due to portfolio effect, in particular related to the end of the Qatargas 1 operating license
and the Utica asset sale in the United States, |
| ● | -1%
due to the price effect, |
| ● | -2%
due to the 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 in the first quarter 2022 is down 5% year-on-year, mainly due to the end of the Qatargas 1 operating license.
Total
LNG sales in the first quarter 2022 are up 34% year-on-year, supported by strong European LNG demand.
| (1) | Includes
20% of Adani Green Energy Ltd gross capacity effective first quarter 2021. |
| (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 & Electricity affiliates, regardless of consolidation method. |
Gross
installed renewable power generation capacity grew to 10.7 GW at the end of the first quarter 2022, up 400 MW from the previous quarter,
thanks in part to the continued increase of start-ups in India.
Gross
power generation capacity under development increased mainly due to award of concessions to develop offshore wind farms, including 3
GW on the east coast of the United States, off New York and New Jersey, and 2 GW in Scotland.
Net
electricity generation stood at 7.6 TWh in the first quarter 2022, up 61% year-on-year, thanks to higher utilization rates of flexible
power plants (CCGT) to capture higher margins as well as growth in electricity generation from renewable sources.
EBITDA
from renewables increased in the first quarter 2022 due to production growth compared to the fourth quarter 2021. The first quarter
2021 included a capital gain on the partial sale of a portfolio of projects. TotalEnergies adjusted EBITDA of the
Renewables and Electricity business was $175 million in the first quarter 2022, down 49% year-on-year due to the seasonality of
electricity supply activities in the context of power prices volatility and the mechanism for setting the regulated electricity
sales tariff in France.
| * | 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 $3,051 million in the first quarter 2022, a 3.1-fold increase year-on-year, thanks to higher
LNG prices and the very good performance of the gas, LNG and electricity trading activities.
Operating
cash flow before working capital changes was $2,585 million in the first quarter 2022, 2.4 times higher than the first quarter 2021 for
the same reasons.
Cash
flow from operations was $315 million for the first quarter 2022, mainly due to the working capital impact linked to the seasonality
of the gas and power marketing activities and to price effect on receivables.
| 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 the Exploration & Production segment was $5,015 million in the first quarter 2022, 2.5 times higher
than in the first quarter 2021, due to higher oil and gas prices.
Operating
cash flow before working capital changes was $7,303 million in the first quarter 2022, up 91% year-on-year for the same reason.
| 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 (shut down first
quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021. |
| ** | Based
on olefins production from steam crackers and their treatment capacity at the start of the
year. |
Refinery
throughput increased 15% year-on-year in the first quarter 2022, due to demand recovery, particularly in Europe and the United States,
and the 2021 restart of the distillation unit at the Normandy refinery in France.
Monomer
production was stable year-on-year in the first quarter 2022.
Polymer
production increased 9% year-on-year in the first quarter 2022, thanks in particular to the commissioning of a new polypropylene line
in the second quarter 2021 on the integrated refining and petrochemical platform in Daesan, South Korea. Production in the first quarter
2021 was negatively impacted by the temporary shutdown of facilities in the United States due to Storm Uri in Texas.
| * | 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 in the first quarter 2022 increased sharply to $1,120 million from $243 million
in the first quarter 2021, due to higher distillate margins in Europe in the context of reduced imports of Russian petroleum products
as well as the overperformance of crude oil and petroleum products trading activities.
Operating
cash flow before working capital changes was $1,433 million in the first quarter 2022, 3.6 times higher than the first quarter 2021 for
the same reasons.
| 4.5.1 | Petroleum
product sales |
| * | Excludes
trading and bulk refining sales. |
Sales
of petroleum products in the first quarter of 2022 were up by 1% year-on-year, as the recovery in aviation activity worldwide was notably
offset by lower sales in Asia, due to the pandemic lockdowns.
| * | 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 segment amounted to $272 million and operating cash flow before working capital
changes was $463 million in the first quarter 2022, down 4% and 3% respectively year-on-year due to the margin squeeze related to high
petroleum products prices.
| 5.1 | Adjusted
net operating income from business segments |
Adjusted
net operating income from the business segments was $9,458 million in the first quarter 2022, compared to $3,487 million in the first
quarter 2021, due to higher oil and gas prices and the strong performance of trading activities.
| 5.2 | Adjusted
net income (TotalEnergies share) |
Adjusted
net income (TotalEnergies share) was $8,977 million in the first quarter 2022 compared to $3,003 million in the first quarter 2021, due
to higher oil and gas prices and the strong performance of trading activities.
Adjusted
net income excludes the after-tax inventory effect, special items and the impact of changes in fair value(18).
Total
net income adjustment items(19) were $4,033 million in the first quarter 2022, mainly consisting of $4,095 million for impairments
notably concerning Arctic LNG 2, the $957 million impairment related to the withdrawal from the North Platte project in the United States,
partially offset by a positive inventory effect of $1,040 million.
TotalEnergies'
effective tax rate was 38.7% in the first quarter 2022, compared to 34.6% in the first quarter 2021 due to the increase in the contribution
of Exploration & Production to the Company's results.
| 5.3 | Adjusted
earnings per share |
Adjusted
fully-diluted earnings per share was $3.40 in the first quarter 2022, calculated based on 2,614 million weighted-average diluted shares
compared to $1.10 a year ago.
As
of March 31, 2022, the number of fully-diluted shares was 2,607 million.
As
part of its shareholder return policy, TotalEnergies repurchased 19.2 million shares for cancellation in the first quarter 2022 for $1
billion.
| 5.4 | Acquisitions
- asset sales |
Acquisitions
were $1,400 million in the first quarter 2022, including the bonus related to the award of the Production Sharing Contracts of Atapu
and Sépia in Brazil as well as the bonus related to the New York Bight offshore wind concession in the United States.
Asset
sales were $478 million in the first quarter 2022, including an additional
payment related to the sale of interests in the CA1 offshore block in Brunei and the sale by SunPower of its Enphase shares.
| 5.5 | Cash
flow from operations |
Cash
flow from operations was $7,617 million in the first quarter 2022, compared to operating cash flow before working capital changes of
$11,626 million, was negatively impacted by an increase in working capital requirements of $3,520 million mainly related to the price
effect on inventories, an increase in inventories to ensure the security of supply for refineries and the seasonality of the gas and
electricity business.
Return
on equity was 21.8% for the 12 months ended March 31, 2022.
(18) These adjustment elements
are explained page 21.
(19) Total adjustment items
in net income are detailed page 17 as well as in the annexes to the accounts
The
return on average capital employed was 18.0% for the 12 months ended March 31, 2022.
| 6. | TotalEnergies
SE statutory accounts |
Net
income for TotalEnergies SE, the parent company, was €1,035 million in the first quarter 2022, compared to €1,472 million in
the first quarter 2021.
| * | Sensitivities
are revised once per year upon publication of the previous year’s fourth quarter results.
Sensitivities are estimates based on assumptions about TotalEnergies’ portfolio in
2022. Actual results could vary significantly from estimates based on the application of
these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income
is essentially attributable to Refining & Chemicals. Please find the indicators
detailed page [22]. |
| ** | In
a 60 $/b Brent environment. |
Russia's
military aggression against Ukraine on February 24, 2022 and its consequences, have pushed oil prices to more than $100/b, exacerbating
the upward trend seen since the second half of 2021 that stems from a lack of investment in hydrocarbons. These prices could remain at
high levels if the mobilization of additional production capacity from OPEC countries and the growth of unconventional oil production
in the United States fail to compensate for the anticipated loss of Russian crude oil production on the order of 2-3 Mb/d as well as
the lower production from Russian refining. The effect could be mitigated by a drop in demand caused by the higher prices, the impact
of the crisis and the pandemic lockdowns in China on global growth.
Gas
prices have remained very high and volatile in Europe and Asia since the start of 2022, driven by global demand and the need for Europe
to rebuild inventories. Futures markets indicate average gas prices in Europe and Asia in 2022 around $30/Mbtu. In this context and in
line with its investment criteria, TotalEnergies is mobilizing additional investments to support short-term gas production in the North
Sea.
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 remain at a high level above $14/Mbtu in the second quarter of 2022.
In
the second quarter, TotalEnergies will benefit from the increase in its production in Brazil from May 2022 with the start-up of
Mero 1 and the entry into Atapu and Sépia (30 kb/d in the second
quarter growing to 60 kb/d in the fourth quarter)
The
Company maintains its capital discipline with net investments trending toward $15 billion in 2022, of which 25% will be in renewables
and electricity.
The
Company's priorities in terms of cash flow allocation are reaffirmed in this context of higher oil and gas prices: investing in profitable
projects to implement the strategy to transform TotalEnergies into a sustainable multi-energy company, linking dividend growth to structural
cash flow growth, maintaining a strong balance sheet and a long-term debt rating with a minimum "A" level by permanently anchoring
gearing below 20%, and allocating a share of the surplus cash flow from high hydrocarbon prices to share buybacks.
*
* * *
To
listen to the conference call with CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 12:00 (Paris time) please log on
to totalenergies.com or call +44 (0) 207 192 8338 in Europe or +1 (646) 7413-167 in the United States (code: 4169200).
The conference replay will be available on totalenergies.com after the event.
*
* * *
TotalEnergies
contacts
Media
Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
l @TotalEnergiesPress
Investor
Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
| 9. | Results
from Russian assets |
Capital Employed
by TotalEnergies in Russia as at March 31, 2022 was $9,976 million.
10.
Operating information by segment
| 10.1 | Company’s
production (Exploration & Production + iGRP) |
| 10.2 | 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. |
| X | not
specified, PPA relating to a capacity < 0.2 GW. |
| 11. | Adjustment
items to net income (TotalEnergies share) |
| 12. | Reconciliation
of adjusted EBITDA with consolidated financial statements |
| 12.1 | Reconciliation
of net income (TotalEnergies share) to adjusted EBITDA |
| 12.2 | Reconciliation
of revenues from sales to adjusted EBITDA and net income (TotalEnergies share) |
| 13. | 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. |
| (1) | Excludes
leases receivables and leases debts. |
| (2) | Including
initial margins held as part of the Company's activities on organized markets. |
| 16. | Return
on average capital employed |
Twelve
months ended March 31, 2022
Twelve
months ended December 31, 2021
Twelve
months ended March 31, 2021
| * | 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.
This
press release presents the results for the first quarter 2022 from the consolidated financial statements of TotalEnergies SE as of March 31,
2022. 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 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 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 TotalEnergies’ principal 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 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.
@TotalEnergiesPR
