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TotalEnergies SE (TTE)

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Thursday 16 September, 2021

TotalEnergies SE

Half-year Report

Half-year Report

TotalEnergies SE

 

TOTAL ENERGIES

Financial report
1
st half 2021

Certification of the person responsible for the half-year financial report

This translation is a non binding translation into English of the Chairman and Chief Executive Officer’s certification issued in French, and is provided solely for the convenience of English-speaking readers.

“I certify, to the best of my knowledge, that the condensed Consolidated Financial Statements of TotalEnergies SE (the Corporation) for the first half of 2021 have been prepared in accordance with the applicable set of accounting standards and give a fair view of the assets, liabilities, financial position and profit or loss of the Corporation and all the entities included in the consolidation, and that the half-year financial report on pages to herein includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements, major related parties transactions and the principal risks and uncertainties for the remaining six months of the financial year.

The statutory auditors’ report on the limited review of the above-mentioned condensed Consolidated Financial Statements is included on page of this half-year financial report.”

Courbevoie, July 29, 2021

Patrick Pouyanné
Chairman and Chief Executive Officer


Glossary
The terms “TotalEnergies” and “TotalEnergies company” as used in this document refer to TotalEnergies SE collectively with all of its direct and indirect consolidated companies located in or outside of France. The term “Corporation” as used in this document exclusively refers to TotalEnergies SE, which is the parent company of TotalEnergies company.

Abbreviations

€ :

euro

$ or dollar :

US dollar

ADR :

American depositary receipt (evidencing an ADS)

ADS :

American depositary share (representing a share of a company)

AMF :

Autorité des marchés financiers (French Financial Markets Authority)

API :

American Petroleum Institute

CO 2 :

carbon dioxide

DACF :

debt adjusted cash flow is defined as operating cash flow before working capital changes without financial charges

EV :

electric vehicle

FLNG :

floating liquefied natural gas

FPSO :

floating production, storage and offloading

FSRU :

floating storage and regasification unit

GHG :

greenhouse gas

HSE :

health, safety and the environment

IFRS :

International Financial Reporting Standards

IPIECA :

International Petroleum Industry Environmental Conservation Association

LNG :

liquefied natural gas

LPG :

liquefied petroleum gas

NGL :

natural gas liquids

NGV :

natural gas vehicle

OML :

oil mining lease

PPA :

Power Purchase Agreement

ROACE :

return on average capital employed

ROE :

return on equity

SEC :

United States Securities and Exchange Commission

VCM :

variable cost margin – Refining Europe

This indicator represents the average margin on variable costs realized by TotalEnergies’ European refining business. It is 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.

Units of measurement

b = barrel(1)

b = billion

Bcm = billion of cubic meters

boe = barrel of oil equivalent

btu = British thermal unit

cf = cubic feet

CO 2 e = CO2 equivalent

/d = per day

GtCO 2 = billion of CO2 tons

GW = gigawatt

GWh = gigawatt hour

k = thousand

km = kilometer

m = meter

= cubic meter(1)

M = million

MW = megawatt

PJ = petajoule

t = (Metric) ton

toe = ton of oil equivalent

TWh = terawatt hour

W = watt

Wac = AC watt

Wp = watt-peak or watt of peak power

/y = per year

 

Conversion table

1 acre ≈ 0.405 hectares

1 b = 42 gallons US ≈ 159 liters

1 b/d of crude oil ≈ 50 t/y of crude oil

1 km ≈ 0.62 miles

1 m³ ≈ 35.3 cf

1 Mt de LNG ≈ 48 Bcf of gas

1 Mt/y of LNG ≈ 131 Mcf/d of gas

1 t of oil ≈ 7.5 b of oil (assuming a specific gravity of 37° API)

1 boe = 1 b of crude oil ≈ 5,399 cf of gas in 2020(2) (5,395 cf in 2019 and 5,387 cf in 2018)

(1) Liquid and gas volumes are reported at international standard metric conditions (15°C and 1 atm).
(2) Natural gas is converted to barrels of oil equivalent using a ratio of cubic feet of natural gas per one barrel. This ratio is based on the actual average equivalent energy content of TotalEnergies’ natural gas reserves during the applicable periods and is subject to change. The tabular conversion rate is applicable to TotalEnergies natural gas reserves on a Company-wide basis.


01 HALF YEAR FINANCIAL REPORT
1.1 Highlights since the beginning of 2021
(1)
Sustainability

  • Total transforms and becomes TotalEnergies, with a new visual identity
  • TotalEnergies’ Board of Directors takes the initiative to submit a resolution on the Company’s ambition for sustainable development and energy transition toward carbon neutrality
  • Consistent with its climate policy, TotalEnergies withdraws from the American Petroleum Institute
  • Inauguration of L’Industreet, a campus for training young people in the industry profession, TotalEnergies’ flagship action for social responsibility in France
  • 3rd place globally and 1st place for the sector Oil and Gas in the BloombergNEF ranking on the alignment of corporate strategies with the United Nations’ Sustainable Development Goals
  • TotalEnergies and Chevron decide to suspend distribution of dividends from gas transport company in Myanmar
  • Partnership with Novatek to reduce emissions from LNG production, develop large-scale carbon capture and storage, and study carbon-free hydrogen and ammonia projects
  • Partnership with GHGSat for satellite-based monitoring of methane emissions at sea

Renewables and Electricity

  • Acquired in India 20% of Adani Green Energy Limited (AGEL), the largest solar developer in the world
  • Secured with Macquarie rights to seabed lease to jointly develop 1.5 GW offshore wind project in the UK
  • Acquired 4 GW portfolio of solar and energy storage projects in the US
  • Farmed down 50% of two renewables portfolios in France representing close to 340 MW
  • Acquired 23% stake in 640 MW offshore wind project under construction in Taiwan
  • Acquisition by Adani Green Energy Ltd., in which TotalEnergies has a 20% stake, of a portfolio of 5 GW of renewable electricity generation capacity in operation and under construction in India that will contribute 1 GW to TotalEnergies’ target of 35 GW in 2025
  • Signed major green power sale agreement to Orange to develop 80 MW of solar farms in France
  • Signed contract with Merck & Co. for the sale of 90 GWh/y renewable electricity in Spain for 10 years
  • Sales contract for 50GWh/y over 15 years with Air Liquide in Belgium
  • Partnered with Microsoft to support digital innovation and carbon neutrality goals
  • Partnership with Amazon to supply (474 MW) renewable electricity to its data centers in Europe and the United States, and to accelerate TotalEnergies digital transformation

LNG

  • Declaration of force majeure on Mozambique LNG project considering the security situation in the northern Cabo Delgado
  • Remobilization of the Papua LNG project with a view to final investment decision in 2023
  • Agreement with Novatek to acquire 10% of Arctic Transshipment LLC, which will operate two LNG transshipment terminals under construction in Russia
  • Tolling agreement with GIP, for more than $750 million, for Gladstone LNG infrastructure in Australia
  • Withdrew from the Driftwood LNG project and sold TotalEnergies’ stake in Tellurian Inc.
  • Signed agreements with Shenergy Group for the supply of up to 1.4 Mt/y of LNG in China
  • Signed contract with ArcelorMittal Nippon Steel for a 5-year supply of up to 0.5 Mt/y of LNG in India
  • Obtained supplier license for marine bunker LNG in Singapore
  • Technical collaboration agreements with Siemens Energy and Technip Energies to develop low-carbon LNG technologies

Upstream

  • Signed definitive agreements enabling the launch of Tilenga and Kingfisher upstream oil projects and construction of East African Crude Oil Pipeline in Uganda and Tanzania
  • Published societal and environmental studies relating to the Tilenga and EACOP projects in Uganda and Tanzania
  • Started production of Zinia Phase 2, short-cycle development project on Block 17 in Angola
  • Significant new discovery on the Sapakara South well in Suriname
  • Awarded two new conventional offshore exploration permits in Suriname with partner Qatar Petroleum
  • Entry on Block 29 exploration permit in Angola as operator
  • Agreed to divest TotalEnergies 18% interest in the Sarsang block, in Iraqi Kurdistan
  • Divested TotalEnergies’ interest in Petrocedeño to PDVSA in Venezuela which led to the recognition of an exceptional capital loss of $1.38 billion during the second quarter 2021

Downstream

  • Started production of sustainable aviation biofuels in France and made, in partnership with Air France-KLM, Groupe ADP and Airbus, the first long-haul flight with sustainable air fuel (SAF) in France
  • Obtained concession for the expansion of the public charging network for electric vehicles of the City of Amsterdam, with 2,200 new charging points
  • Global partnership in the field of lubricants and electric mobility with Peugeot, Citroën, DS Automobiles, Opel and Vauxhall
  • Partnership agreement with Uber to accelerate transition of VTC drivers to electric mobility in France
  • Acquired 20% stake in Hysetco, a French company owning the world’s first fleet of hydrogen taxis, operated under the Hype brand, as well as hydrogen charging stations

Carbon sinks

  • Investment to plant 40,000-hectare forest in Republic of Congo that will create a carbon sink to sequester more than 10 million tons of CO2 over 20 years
  • Creation of the joint-venture development of the Northern Lights CO2 sequestration project in the northern North Sea

(1) Certain transactions referred to in the highlights are subject to approval by authorities or to conditions as per the agreements.


1.2 Key figures from TotalEnergies’ consolidated financial statements (1)

In millions of dollars, except effective tax rate, earnings per share and
number of shares

1S21

1S20

1S21 vs 1S20

Adjusted EBITDA(2)

16,837

10,583

+59%

Adjusted net operating income from business segments

7,519

3,121

x2.4

Exploration & Production

4,188

494

x8.5

Integrated Gas, Renewables & Power

1,876

1,239

+51%

Refining & Chemicals

754

957

-21%

Marketing & Services

701

431

+63%

Contribution of equity affiliates to adjusted net income

1,260

669

+88%

Effective tax rate(3)

34.4%

24.3%

Adjusted net income (TotalEnergies share)

6,466

1,907

x3.4

Adjusted fully-diluted earnings per share (dollars)(4)

2.38

0.68

x3.5

Adjusted fully-diluted earnings per share (euros)*

1.97

0.62

x3.2

Fully-diluted weighted-average shares (millions)

2,644

2,598

+2%

Net income (TotalEnergies share)

5,550

(8,335)

ns

Organic investments(5)

5,181

4,724

+10%

Net acquisitions(6)

1,986

1,823

+9%

Net investments(7)

7,167

6,547

+9%

Operating cash flow before working capital changes**(8)

11,718

7,409

+58%

Operating cash flow before working capital changes w/o financial charges (DACF)(9)

12,511

8,420

+49%

Cash flow from operations

13,149

4,778

x2.8

* Average €-$ exchange rate: 1.2053 in the first half 2021.

** 1H20 data restated.

(1) 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 ■.

(2) 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.

(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 bond.

(5) Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.

(6) Net acquisitions = acquisitions – assets sales – other transactions with non-controlling interests (see page ■).

(7) Net investments = organic investments + net acquisitions (see page ■).

(8) 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 ■. The reconciliation table for different cash flow figures is on page ■.

(9) DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.

1.3 Key figures of environment, greenhouse gas emissions and production
1.3.1 Environment – liquids and gas price realizations, refining margins

 

1S21

1S20

1S21 vs 1S20

Brent ($/b)

65.0

40.1

+62%

Henry Hub ($/Mbtu)

2.9

1.8

+57%

NBP ($/Mbtu)

7.7

2.4

x3.2

JKM ($/Mbtu)

10.0

2.9

x3.5

Average price of liquids ($/b) Consolidated subsidiaries

59.7

33.8

+77%

Average price of gas ($/Mbtu) Consolidated subsidiaries

4.23

2.99

+41%

Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates

6.33

5.42

+17%

Variable cost margin – Refining Europe, VCM ($/t)

7.6

21.0

-64%

1.3.2 Greenhouse gas emissions (1)

GHG emissions (MtCO 2 e)

1S21

Scope 1+2 from operated oil & gas facilities(2)

15

Scope 3(3)

159

Scope 1+2+3 in Europe(4)

95

1.3.3 Production*

Hydrocarbon production

1S21

1S20

1S21 vs 1S20

Hydrocarbon production (kboe/d)

2,805

2,966

-5%

Oil (including bitumen) (kb/d)

1,265

1,381

-8%

Gas (including condensates and associated NGL) (kboe/d)

1,540

1,584

-3%

 

 

 

 

Hydrocarbon production (kboe/d)

2,805

2,966

-5%

Liquids (kb/d)

1,486

1,626

-9%

Gas (Mcf/d)

7,208

7,302

-1%

* Company production = E&P production + iGRP production

Hydrocarbon production was 2,805 kboe/d in the first half 2021, a decrease of 5%, comprised of:

  • +2% due to the start-up and ramp-up of projects, including North Russkoye in Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and Iara in Brazil,
  • -1% portfolio effect, notably asset sales in the United Kingdom and Block CA1 in Brunei,
  • -2% due to planned maintenance and unplanned outages, notably in the United Kingdom, Australia, Norway and Nigeria,
  • -1% due to the price effect,
  • -3% due to the natural decline of the fields.

(1) 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.

(2) 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.

(3) 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.

(4) 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.

1.4 Analysis of business segments
1.4.1 Integrated Gas, Renewables & Power (iGRP)
1.4.1.1 Production and sales of Liquefied natural gas (LNG) and electricity

Hydrocarbon production for LNG

1S21

1S20

1S21 vs 1S20

iGRP (kboe/d)

510

536

-5%

Liquids (kb/d)

58

69

-17%

Gas (Mcf/d)

2,470

2,541

-3%

Liquefied Natural Gas in Mt

1S21

1S20

1S21 vs 1S20

Overall LNG sales

20.4

20.2

+1%

incl. Sales from equity production*

8.5

9.0

-5%

incl. Sales by TotalEnergies from equity production and third party purchases

16.7

16.5

+1%

* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.

Hydrocarbon production for LNG decreased year-on-year by 5% in the first half 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG’s liquefaction trains in Australia.

Total LNG sales were stable year-on-year in the first half 2021.

Renewables & Electricity

1S21

1S20

1S21 vs 1S20

Portfolio of renewable power generation gross capacity (GW)(1)(2)

41.7

20.4

x2

o/w installed capacity

8.3

5.1

+63%

o/w capacity in construction

5.4

2.9

+89%

o/w capacity in development

28.0

12.4

x2.3

Gross renewables capacity with PPA (GW)(1)(2)

22.6

11.2

x2

Portfolio of renewable power generation net capacity (GW)(1)(2)

30.7

13.6

x2.3

o/w installed capacity

4.0

2.3

+76%

o/w capacity in construction

3.1

1.1

x3

o/w capacity in development

23.6

10.3

x2.3

Net power production (TWh)(3)

9.8

5.9

+67%

incl. Power production from renewables

3.2

1.8

+79%

Clients power – BtB and BtC (Million)(2)

5.8

4.2

+38%

Clients gas – BtB and BtC (Million)(2)

2.7

1.7

+58%

Sales power – BtB and BtC (TWh)

28.8

23.6

+22%

Sales gas – BtB and BtC (TWh)

56.8

50.9

+12%

 

 

 

 

Proportional adjusted EBITDA Renewables and Electricity (M$)(4)

635

340

+87%

incl. from renewables business

210

184

+14%

Gross installed capacity of renewable electricity generation grew to 8.3 GW at the end of first semester 2021.

Net electricity production was 9.8 TWh in the first half 2021, an increase of 67% year-on-year, notably due to strong growth in renewable electricity generation and the acquisition of four CCGT plants in France and Spain in the fourth quarter of 2020.

Electricity and gas sales increased by 22% and 12% respectively in the first half 2021 compared to last year thanks to the growing number of customers, with TotalEnergies notably surpassing the 5 million customer mark (B2C and B2B) in France.

TotalEnergies’ share of the EBITDA of the Renewables and Electricity activities was $635 million in the first half 2021, an increase of 87% over one year, driven by growing electricity production, particularly renewable electricity, and the number of gas and electricity customers.

(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.

1.4.1.2 Results

In millions of dollars

1S21

1S20

1S21 vs 1S20

Adjusted net operating income*

1,876

1,239

+51%

including income from equity affiliates

620

179

x3.5

Organic investments

1,512

1,264

+20%

Net acquisitions

2,059

1,570

+31%

Net investments

3,571

2,834

+26%

Operating cash flow before working capital changes**

1,963

1,652

+19%

Cash flow from operations***

1,347

900

+50%

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial expenses, 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. 1H20 data restated (see note 8 on page ■).

*** Excluding financial charges, except those related to leases.

Adjusted net operating income for the iGRP sector was 1,876 million in the first half 2021, an increase of 51% year-on-year, thanks to higher LNG prices, growing contribution from Renewables and Electricity as well as good performance by the trading activities in the first quarter 2021.

Operating cash flow before working capital changes increased 19% year-on-year to $1,963 million in the first half 2021, in line with the rise in LNG prices and the growing contribution of Renewables and Electricity.

1.4.2 Exploration-Production
1.4.2.1 Production

Hydrocarbon production

1S21

1S20

1S21 vs 1S20

EP (kboe/d)

2,295

2,430

-6%

Liquids (kb/d)

1,428

1,557

-8%

Gas (Mcf/d)

4,738

4,761

1.4.2.2 Results

In millions of dollars, except effective tax rate

1S21

1S20

1S21 vs 1S20

Adjusted net operating income*

4,188

494

x8.5

including income from equity affiliates

549

438

+25%

Effective tax rate**

39.5%

69.6%

Organic investments

2,838

2,684

+6%

Net acquisitions

29

305

-90%

Net investments

2,867

2,989

-4%

Operating cash flow before working capital changes***

8,086

4,386

+84%

Cash flow from operations***

8,571

4,833

+77%

* 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 $4,188 million in the first half 2021, more than eight times higher in the first half 2020, thanks to the sharp rebound in oil and gas prices.

Operating cash flow before working capital changes increased by 84% to $8,086 million in the first half 2021, in line with higher oil and gas prices.

1.4.3 Downstream (Refining & Chemicals and Marketing & Services)
1.4.3.1 Results

In millions of dollars

1S21

1S20

1S21 vs 1S20

Adjusted net operating income*

1,455

1,388

+5%

Organic investments

803

734

+9%

Net acquisitions

(104)

(50)

ns

Net investments

699

684

+2%

Operating cash flow before working capital changes**

2,332

2,552

-9%

Cash flow from operations**

4,330

317

x13.7

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges, except those related to leases.

1.4.3.2 Refining & Chemicals
1.4.3.2.1 Refinery and petrochemicals throughput and utilization rates

Refinery throughput and utilization rate*

1S21

1S20

1S21 vs 1S20

Total refinery throughput (kb/d)

1,109

1,347

-18%

France

131

230

-43%

Rest of Europe

578

676

-14%

Rest of world

400

441

-9%

Utlization rate based on crude only**

58%

64%

 

* 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.

Petrochemicals production and utilization rate

1S21

1S20

1S21 vs 1S20

Monomers* (kt)

2,829

2,778

+2%

Polymers (kt)

2,377

2,395

-1%

Vapocracker utilization rate**

88%

83%

 

* Olefins.

** Based on olefins production from steamcrackers and their treatment capacity at the start of the year.

Refinery throughput decreased 18% in the first half 2021 compared to the previous year, mainly due to the prolonged voluntary economic shutdown of the Donges refinery given the low European margins, the planned major shutdown of the Leuna refinery in Germany, the shutdown of the Grandpuits refinery in the first quarter 2021 for its conversion to a zero-oil platform, and the sale of the Lindsey refinery in the United Kingdom. The decrease was partially offset by the restart of the Feyzin refinery, in France, and the distillation unit at the Normandy platform, following a fire at the end of 2019.

Monomer production increased slightly in the first half 2021 compared to a year ago thanks to the restart of the Feyzin refinery, in France, after a major shutdown in 2020.

Polymer production also increased slightly in the first half 2021 compared to a year ago, despite the major shutdown in the second quarter 2021 of the Feluy plant in Belgium.


1.4.3.2.2 Results

In millions of dollars

1S21

1S20

1S21 vs 1S20

Adjusted net operating income*

754

957

-21%

Organic investments

501

470

+7%

Net acquisitions

(55)

(51)

ns

Net investments

446

419

+6%

Operating cash flow before working capital changes**

1,147

1,670

-31%

Cash flow from operations**

3,228

(103)

ns

* 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-Chemicals segment decreased 21% year-on-year to $754 million in the first half of 2021, due to still-depressed European refining margins that reflect the recovery in oil prices and the continued weak product demand, notably for distillates, linked to the reduced air transport, and to the outperformance of trading activities in the first half 2020. The first half 2021 results nevertheless benefited from the very good performance of petrochemicals.

Operating cash flow before working capital changes decreased by 31% to 1,147 M$ in the first half 2021.

Cash flow from operations increased to $3,228 million in the first half 2021 from $(103) million in the first half 2020, mainly due to a decrease in working capital requirements and a positive stock effect.

1.4.3.3 Marketing & Services
1.4.3.3.1 Petroleum product sales

Sales in kb/d*

1S21

1S20

1S21 vs 1S20

Total Marketing & Services sales

1,458

1,478

-1%

Europe

783

823

-5%

Rest of world

674

656

+3%

* Excludes trading and bulk refining sales.

In the first half 2021, petroleum products sales were stable overall year-on-year, as the slowdown in global activity due to the Covid-19 pandemic and the 50% decline in the aviation activity were offset by the global economic rebound seen in the second quarter of 2021.

1.4.3.3.2 Results

In millions of dollars

1S21

1S20

1S21 vs 1S20

Adjusted net operating income*

701

431

+63%

Organic investments

302

264

+14%

Net acquisitions

(49)

1

ns

Net investments

253

265

-5%

Operating cash flow before working capital changes**

1,185

882

+34%

Cash flow from operations**

1,102

420

x2.6

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges, except those related to leases.

In first half 2021, adjusted net operating income was $701 million compared to $431 million a year earlier. This increase was mainly related to the increase in global sales volumes in a context of rising margins.

Operating cash flow before working capital changes was $1,185 million in the first half 2021.

1.5 TotalEnergies results
1.5.1 Adjusted net operating income from business segments
Adjusted net operating income for the sectors was $7,519 million in the first half 2021, compared to $3,121 million a year earlier, due to higher oil and gas prices.

1.5.2 Adjusted net income (TotalEnergies share)
Adjusted net income (TotalEnergies share) was $6,466 million in the first half 2021 compared to $1,907 million a year earlier, due to the increase in oil and gas prices.

Adjusted net income excludes the after-tax inventory effect, special items and impact of changes in fair value(1).

Total net income adjustments(2) were $(916) million in the first half 2021, mainly comprised of the effect of the sale of TotalEnergies’ participation in Petrocedeño to PDVSA in Venezuela for an amount of $(1,379) million, a $1,064 million positive inventory effect, restructuring charges related to voluntary departures in France and Belgium and an impairment related to end of the Qatargas 1 contract.

The effective tax rate for TotalEnergies was 34.4% in the first half 2021, compared to 24.3% in the first half 2020.

1.5.3 Adjusted earnings per share
Adjusted fully-diluted earnings per share was $2.38 in the first half 2021, calculated based on 2,644 million weighted-average diluted shares, compared to $0.68 a year earlier.

As of June 30, 2021, the number of fully-diluted shares was 2,654 million.

1.5.4 Acquisitions – asset sales
Acquisitions were $2,870 million in the first half 2021 and included notably the acquisition, for $2 billion, of a 20% interest in the renewable projects developer in India, Adani Green Energy Limited, the 23% stake in a 640 MW offshore wind project in Taiwan, the Fonroche Biogas in France and Repsol’s interest in the Tin Fouyé Tabankort II field in Algeria.

Asset sales were $884 million in the first half 2021 and included notably the sale in France of a 50% interest in a portfolio of renewable projects with a total capacity of 285 MW (100%), the sale of the 10% interest in onshore block OML 17 in Nigeria, a price supplement relating to the sale of Block CA1 in Brunei, the sale of the Lindsey refinery in the United Kingdom, the sale of TotalEnergies’ interest in the TBG pipeline in Brazil, the sale of shares in Clean Energy Fuels Corp, and the sale of its interest in Tellurian Inc. in the United States.

1.5.5 Net cash flow
TotalEnergies’ net cash flow(3) was $4,551 million in the first half 2021 compared to $862 million a year earlier, which takes into account the $4.3 billion increase in operating cash flow before changes in working capital, partially offset by a $620 million increase in net investments to $7,167 million in the first half 2021.

1.5.6 Profitability
The return on equity was 8.4% for the twelve months ended June 30, 2021.

In millions of dollars

July 1, 2020
June 30, 2021

April 1, 2020

March 31, 2021

July 1, 2019

June 30, 2020

Adjusted net income

8,786

5,330

8,214

Average adjusted shareholders' equity

105,066

109,135

109,448

Return on equity (ROE)

8.4%

4.9%

7.5%

The return on average capital employed was 7.2% for the twelve months ended June 30, 2021.

In millions of dollars

July 1, 2020
June 30, 2021

April 1, 2020

March 31, 2021

July 1, 2019

June 30, 2020

Adjusted net operating income

10,252

6,915

10,125

Average capital employed

142,172

148,777

145,621

ROACE

7.2%

4.6%

7.0%

(1) Adjustment items shown on page ■.

(2) Details shown on page ■ and in the appendix to the financial statements

(3) Net cash flow = cash flow - net investments (including other transactions with non-controlling interest).

1.6 TotalEnergies SE accounts
Net income for TotalEnergies SE, the parent company, was €4,568 million in the first half 2021 compared to €4,710 in the first half 2020.

1.7 2021 Sensitivities*

 

Change

Estimated
impact on adjusted net operating income

Estimated
impact on
cash flow from operations

Dollar

+/- 0,1 $ par €

-/+ 0,1 G$

~0 G$

Average liquids price**

+/- 10 $/b

+/- 2,7 G$

+/- 3,2 G$

European gas price – NBP

+/- 1 $/Mbtu

+/- 0,3 G$

+/- 0,25 G$

Variable cost margin, European refining (VCM)

+/- 10 $/t

+/- 0,4 G$

+/- 0,5 G$

* 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.

** In a 50 $/b Brent environment.

1.8 Summary and outlook
In a context of rebounding global demand for petroleum products, OPEC+ quotas in the first half 2021 contributed to a rapid drawdown of crude oil inventories, which fell below the average of the past five years. The price of oil has remained above $60/b since the beginning of February 2021 and broke through $70/b at the end of June. Recent OPEC+ decisions reinforce its collective discipline to adapt supply step by step to the growth in demand.

Given the outlook for OPEC+ quotas in the second half 2021, TotalEnergies anticipates its full-year 2021 hydrocarbon production to be around 2.85 Mboe/d. The start-up and ramp-up of new projects, including Zinia Phase 2 in Angola, North Russkoye in Russia and Iara in Brazil, will contribute to increased production in the second half 2021.

TotalEnergies anticipates that the higher oil prices observed in the first half 2021 will have a positive impact on its average realized price of LNG for the coming six months, given the lag effect on price formulas. It is expected to be more than $7.5/Mbtu in the third quarter 2021. In addition, gas markets in Asia and Europe are benefiting from the strong growth in demand linked to the global economic recovery.

TotalEnergies maintains discipline on expenses, with net investments expected to be between $12-13 billion in 2021, with half dedicated to future growth. For those growth investments, 50% will be dedicated to renewables and electricity.

In an environment of hydrocarbon prices that would remain in the second half of the year at the level of the first half ($65/b for Brent, $8/Mbtu for gas in Europe) and European refining margins of $10-15/t, TotalEnergies expects cash flow generation (DACF) of more than $25 billion in 2021 and a return on capital employed of more than 10%.

In this favorable context, the Company confirms its priorities in terms of cash flow allocation: invest in profitable projects to implement TotalEnergies’ transformation strategy to a broad energy company, support the dividend through economic cycles, maintain a solid balance sheet and a minimum “A” long-term debt rating by sustainably anchoring the Company’s gearing below 20%, and share additional revenues with its shareholders through share buybacks in the event of high prices.

1.9 Other information
1.9.1 Operating information by segment
1.9.1.1 Company’s production (Exploration & Production + iGRP)

Combined liquids and gas production by region (kboe/d)

1S21

1S20

1S21 vs 1S20

Europe and Central Asia

1,018

1,064

-4%

Africa

542

677

-20%

Middle East and North Africa

652

661

-1%

Americas

377

343

+10%

Asia-Pacific

216

220

-2%

Total production

2,805

2,966

-5%

includes equity affiliates

740

726

+2%

Liquids production by region (kb/d)

1S21

1S20

1S21 vs 1S20

Europe and Central Asia

363

392

-8%

Africa

407

534

-24%

Middle East and North Africa

500

505

-1%

Americas

181

153

+19%

Asia-Pacific

35

42

-17%

Total production

1,486

1,626

-9%

includes equity affiliates

207

207

Gas production by region (Mcf/d)

1S21

1S20

1S21 vs 1S20

Europe and Central Asia

3,523

3,620

-3%

Africa

686

726

-6%

Middle East and North Africa

845

865

-2%

Americas

1,098

1,069

+3%

Asia-Pacific

1,056

1,022

+3%

Total production

7,208

7,302

-1%

includes equity affiliates

2,875

2,802

+3%

1.9.1.2 Downstream (Refining & Chemicals and Marketing & Services)

Petroleum product sales by region (kb/d)

1S21

1S20

1S21 vs 1S20

Europe*

1,540

1,610

-4%

Africa

665

573

+16%

Americas

785

814

-3%

Rest of world

493

439

+12%

Total consolidated sales

3,483

3,435

+1%

includes bulk sales*

368

432

-15%

includes trading

1,658

1,525

+9%

Petrochemicals production* (kt)

1S21

1S20

1S21 vs 1S20

Europe

2,512

2,547

-1%

Americas

1,235

1,301

-5%

Middle East and Asia

1,459

1,324

+10%

* Olefins, polymers

1.9.1.3 Renewables

Installed power generation gross capacity
(GW)
(1) (2)

1S21

Solar

Onshore Wind

Offshore Wind

Other

Total

France

0.5

0.5

0.0

0.1

1.0

Rest of Europe

0.1

1.0

0.0

0.1

1.1

Africa

0.1

0.0

0.0

0.0

0.1

Middle East

0.3

0.0

0.0

0.0

0.3

North America

0.8

0.0

0.0

0.0

0.9

South America

0.4

0.1

0.0

0.0

0.5

India

3.5

0.1

0.0

0.0

3.6

Asia-Pacific

0.7

0.0

0.0

0.0

0.7

Total

6.4

1.8

0.0

0.1

8.3

Power generation gross capacity from
renewables in construction (GW)
(1) (2)

1S21

Solar

Onshore Wind

Offshore Wind

Other

Total

France

0.3

0.1

0.0

0.1

0.5

Rest of Europe

0.1

0.1

1.1

0.0

1.3

Africa

0.0

0.0

0.0

0.0

0.0

Middle East

0.8

0.0

0.0

0.0

0.8

North America

0.3

0.0

0.0

0.0

0.3

South America

0.0

0.2

0.0

0.0

0.2

India

0.9

0.2

0.0

0.0

1.1

Asia-Pacific

0.5

0.0

0.6

0.0

1.1

Total

2.8

0.6

1.8

0.1

5.4

(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.

(2) End-of-period data.

Power generation gross capacity from
renewables in development (GW)
(1) (2)

1S21

Solar

Onshore Wind

Offshore Wind

Other

Total

France

3.2

0.8

0.0

0.0

4.0

Rest of Europe

5.3

0.3

2.3

0.0

7.9

Africa

0.4

0.1

0.0

0.2

0.6

Middle East

0.1

0.0

0.0

0.0

0.1

North America

3.5

0.2

0.0

0.7

4.3

South America

0.6

1.0

0.0

0.0

1.7

India

6.2

0.1

0.0

0.0

6.3

Asia-Pacific

1.1

0.0

2.1

0.0

3.2

Total

20.3

2.5

4.4

0.8

28.0

(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.

(2) End-of-period data.

Gross renewables capacity
covered by PPA at 06/30/2021
(GW)

In operation

In construction

In development

Solar

Onshore Wind

Other

Total

Solar

Onshore Wind

Offshore Wind

Other

Total

Solar

Onshore Wind

Offshore Wind

Other

Total

Europe

0.6

1.5

X

2.2

0.3

X

0.8

X

1.4

4.0

0.3

X

X

4.3

Asia

4.5

X

X

4.6

2.2

0.3

0.6

3.1

3.9

X

4.0

North America

0.8

X

X

0.8

0.3

X

X

0.3

0.3

X

X

0.4

Rest of World

0.5

X

X

0.7

X

X

X

X

0.4

X

X

0.7

Total

6.3

1.8

X

8.2

2.8

0.6

1.4

X

5.0

8.6

0.5

X

0.2

9.3

PPA average price at 06/30/2021

($/MWh)

In operation

In construction

In development

Solar

Onshore Wind

Other

Total

Solar

Onshore Wind

Offshore Wind

Other

Total

Solar

Onshore Wind

Offshore Wind

Other

Total

Europe

239

120

X

154

68

X

61

X

64

42

73

X

X

46

Asia

85

X

X

84

47

56

187

77

40

X

40

North America

155

X

X

158

26

X

X

31

31

X

X

49

Rest of World

82

X

X

82

X

X

X

X

97

X

X

97

Total

107

112

X

108

48

66

106

X

70

43

79

X

145

45

1.9.2 Adjustment items to net income (TotalEnergies share)

In millions of dollars

1S21

1S20

Special items affecting net income (TotalEnergies share)

(1,930)

(8,655)

Gain (loss) on asset sales*

(1,379)

Restructuring charges

(271)

(100)

Impairments

(193)

(8,101)

Other

(87)

(454)

After-tax inventory effect: FIFO vs. replacement cost

1,064

(1,508)

Effect of changes in fair value

(50)

(79)

Total adjustments affecting net income

(916)

(10,242)

* Related to the effect of the sale of TotalEnergies’ participation in Petrocedeño to PDVSA in Venezuela.

1.9.3 Reconciliation of adjusted EBITDA with consolidated financial statements
1.9.3.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA

In millions of dollars

1S21

1S20

1S21 vs 1S20

Net income – TotalEnergies share

5,550

(8,335)

ns

Less: adjustment items to net income (TotalEnergies share)

916

10,242

-91%

Adjusted net income – TotalEnergies share

6,466

1,907

x3.4

Adjusted items

 

 

 

Add: non-controlling interests

147

(13)

ns

Add: income taxes

2,931

490

x6

Add: depreciation, depletion and impairment of tangible assets and mineral interests

6,285

6,937

-9%

Add: amortization and impairment of intangible assets

197

155

+27%

Add: financial interest on debt

967

1,094

-12%

Less: financial income and expense from cash & cash equivalents

(156)

13

ns

Adjusted EBITDA

16,837

10,583

+59%

1.9.3.2 Reconciliation of revenues from sales to adjusted EBITDA and net income (TotalEnergies share)

In millions of dollars

1S21

1S20

1S21 vs 1S20

Adjusted items

 

 

 

Revenues from sales

80,310

60,155

+34%

Purchases, net of inventory variation

(51,397)

(37,949)

ns

Other operating expenses

(13,576)

(12,985)

ns

Exploration costs

(290)

(254)

ns

Other income

554

820

-32%

Other expense, excluding amortization and impairment of intangible assets

(137)

(139)

ns

Other financial income

374

607

-38%

Other financial expense

(261)

(341)

ns

Net income (loss) from equity affiliates

1,260

669

+88%

Adjusted EBITDA

16,837

10,583

+59%

Adjusted items

 

 

 

Less: depreciation, depletion and impairment of tangible assets and mineral interests

(6,285)

(6,937)

ns

Less: amortization of intangible assets

(197)

(155)

ns

Less: financial interest on debt

(967)

(1,094)

ns

Add: financial income and expense from cash & cash equivalents

156

(13)

ns

Less: income taxes

(2,931)

(490)

ns

Less: non-controlling interests

(147)

13

ns

Add: adjustment – TotalEnergies share

(916)

(10,242)

ns

Net income – TotalEnergies share

5,550

(8,335)

ns

1.9.4 Investments – Divestments

In millions of dollars

1S21

1S20

1S21 vs 1S20

Organic investments (a)

5,181

4,724

+10%

Capitalized exploration

488

297

+64%

Increase in non-current loans

672

1,012

-34%

Repayment of non-current loans, excluding organic loan repayment from equity affiliates

(185)

(175)

ns

Change in debt from renewable projects (TotalEnergies share)

(171)

(152)

ns

Acquisitions (b)

2,870

2,501

+15%

Asset sales (c)

884

678

+30%

Change in debt from renewable projects (partner share)

105

83

+27%

Other transactions with non-controlling interests (d)

ns

Net investments (a + b - c - d)

7,167

6,547

+9%

Organic loan repayment from equity affiliates (e)

(108)

(34)

ns

Change in debt from renewable projects financing* (f)

276

235

+17%

Capex linked to capitalized leasing contracts (g)

47

46

+2%

Cash flow used in investing activities (a + b - c + e + f - g)

7,288

6,702

+9%

* Change in debt from renewable projects (TotalEnergies share and partner share).

1.9.5 Cash-flow

In millions of dollars

1S21

1S20

1S21 vs 1S20

Operating cash flow before working capital changes w/o financials charges (DACF)

12,511

8,420

+49%

Financial charges

(793)

(1,011)

ns

Operating cash flow before working capital changes (a)*

11,718

7,409

+58%

(Increase) decrease in working capital**

259

(698)

ns

Inventory effect

1,346

(1,838)

ns

Capital gain from renewable projects sale

(66)

(61)

ns

Organic loan repayment from equity affiliates

(108)

(34)

ns

Cash flow from operations

13,149

4,778

x2.8

Organic investments (b)

5,181

4,724

+10%

Free cash flow after organic investments, w/o net asset sales (a - b)

6,537

2,685

x2.4

Net investments (c)

7,167

6,547

+9%

Net cash flow (a - c)

4,551

862

x5.3

* 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.

1.9.6 Gearing ratio

In millions of dollars

30/06/2021

31/03/2021

30/06/2020

Current borrowings*

15,796

19,279

14,894

Other current financial liabilities

322

351

411

Current financial assets*

(4,326)

(4,492)

(6,383)

Net financial assets classified as held for sale

Non-current financial debt*

44,687

44,842

54,214

Non-current financial assets*

(2,726)

(2,669)

(1,415)

Cash and cash equivalents

(28,643)

(30,285)

(29,727)

Net debt (a)

25,109

27,026

31,994

Shareholders’ equity – TotalEnergies share

108,096

109,295

101,205

Non-controlling interests

2,480

2,390

2,334

Shareholders' equity (b)

110,576

111,685

103,539

Net-debt-to-capital ratio = a / (a + b)

18.5%

19.5%

23.6%

Leases (c)

7,702

7,747

7,383

Net-debt-to-capital ratio including leases (a + c) / (a + b + c)

22.9%

23.7%

27.6%

* Excludes leases receivables and leases debts.

1.9.7 Return on average capital employed
1.9.7.1 Twelve months ended June 30, 2021

In millions of dollars

Integrated Gas, Renewables

& Power

Exploration & Production

Refining & Chemicals

Marketing & Services

Company

Adjusted net operating income

2,415

6,057

836

1,494

10,252

Capital employed at 06/30/2020*

43,527

79,096

12,843

8,366

142,625

Capital employed at 06/30/2021*

49,831

76,013

9,285

8,439

141,720

ROACE

5.2%

7.8%

7.6%

17.8%

7.2%

1.9.7.2

Twelve months ended March 31, 2021

In millions of dollars

Integrated Gas, Renewables

& Power

Exploration & Production

Refining & Chemicals

Marketing & Services

Company

Adjusted net operating income

1,850

3,635

900

1,206

6,915

Capital employed at 03/31/2020*

44,236

85,622

12,878

8,764

152,374

Capital employed at 03/31/2021*

48,423

78,170

10,403

8,198

145,180

ROACE

4.0%

4.4%

7.7%

14.2%

4.6%

* At replacement cost (excluding after-tax inventory effect).

1.10 Principal risks and uncertainties for the remaining six months of 2021
The Company and its businesses are subject to various risks relating to changing political, economic, monetary, legal, environmental, social, industrial, competitive, operating and financial conditions. A description of such risk factors is provided in TotalEnergies’ 2021 Universal Registration Document filed with the Autorité des marchés financiers (French Financial Markets Authority) on March 31, 2021. These conditions are subject to change not only in the six months remaining in the current financial year, but also in the years to come.

Additionally, a description of certain risks is included in the Notes to the condensed Consolidated Financial Statements for the first half of 2021 (page of this half-year financial report).

1.11 Major related parties’ transactions
Information concerning the major related parties’ transactions for the first six months of 2021 is provided in Note 6 to the condensed Consolidated Financial Statements for the first half of 2021 (page of this half-year financial report).

Disclaimer:
The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities. The terms “TotalEnergies”, “TotalEnergies company” and “Company” used in this document are generic and used for convenience to designate TotalEnergies SE and the entities included in its scope of consolidation. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or their employees.

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.

02 CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

2.1 Statutory Auditors’ Review Report on the half-yearly Financial Information
This is a free translation into English of the statutory auditors’ review report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in TotalEnergies’ half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

For the period from January 1 to June 30, 2021

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code (“Code monétaire et financier”), we hereby report to you on:

  • the review of the accompanying condensed half-yearly consolidated financial statements of TotalEnergies SE for the period from January 1 to June 30, 2021,
  • the verification of the information presented in the half-yearly management report.

Due to the global crisis related to the Covid-19 pandemic, the condensed half-yearly consolidated financial statements have been prepared and reviewed under specific conditions. Indeed, this crisis and the exceptional measures taken in the context of the state of sanitary emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties on their future prospects. Those measures, such as travel restrictions and remote working, have also had an impact on the companies’ internal organization and the performance of our review procedures.

These condensed half-yearly consolidated financial statements were prepared under the Chairman and Chief Executive Officer’s responsibility on July 28, 2021, and are reviewed by your Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I – Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs as adopted by the European Union applicable to interim financial information.

II – Specific verification
We have also verified the information presented in the half-yearly management report on the condensed

half-yearly consolidated financial statements subject to our review. We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.

Paris La Défense, July 28, 2021

The Statutory Auditors French original signed by

KPMG Audit – A division de KPMG S.A.

ERNST & YOUNG Audit

Jacques-François Lethu

Partner

Eric Jacquet

Partner

Laurent Vitse

Partner

Céline Eydieu-Boutté

Partner

2.2 Consolidated statement of income – half-yearly
TotalEnergies
(unaudited)

(M$) (a)

1st half

2021

1st half

2020

Sales

90,786

69,600

Excise taxes

(10,520)

(9,461)

Revenues from sales

80,266

60,139

 

 

 

Purchases, net of inventory variation

(50,117)

(40,093)

Other operating expenses

(13,597)

(13,265)

Exploration costs

(290)

(254)

Depreciation, depletion and impairment of tangible assets and mineral interests

(6,446)

(15,228)

Other income

581

942

Other expense

(957)

(528)

 

 

 

Financial interest on debt

(967)

(1,099)

Financial income and expense from cash & cash equivalents

172

(105)

Cost of net debt

(795)

(1,204)

 

 

 

Other financial income

374

607

Other financial expense

(261)

(342)

 

 

 

Net income (loss) from equity affiliates

201

285

 

 

 

Income taxes

(3,248)

521

Consolidated net income

5,711

(8,420)

TotalEnergies share

5,550

(8,335)

Non-controlling interests

161

(85)

Earnings per share ($)

2.04

(3.29)

Fully-diluted earnings per share ($)

2.03

(3.29)

(a) Except for per share amounts.

2.3 Consolidated statement of comprehensive income – half-yearly
TotalEnergies
(unaudited)

(M$)

1st half

2021

1st half

2020

Consolidated net income

5,711

(8,420)

Other comprehensive income

 

 

Actuarial gains and losses

449

(223)

Change in fair value of investments in equity instruments

68

(74)

Tax effect

(154)

86

Currency translation adjustment generated by the parent company

(2,934)

(196)

Items not potentially reclassifiable to profit and loss

(2,571)

(407)

Currency translation adjustment

1,777

(940)

Cash flow hedge

80

(1,293)

Variation of foreign currency basis spread

(4)

70

Share of other comprehensive income of equity affiliates, net amount

451

(927)

Other

3

Tax effect

(57)

367

Items potentially reclassifiable to profit and loss

2,247

(2,720)

Total other comprehensive income (net amount)

(324)

(3,127)

Comprehensive income

5,387

(11,547)

TotalEnergies share

5,212

(11,424)

Non-controlling interests

175

(123)

2.4 Consolidated statement of income – quarterly
TotalEnergies
(unaudited)

(M$) (a)

2nd quarter

2021

1st quarter

2021

2nd quarter

2020

Sales

47,049

43,737

25,730

Excise taxes

(5,416)

(5,104)

(4,168)

Revenues from sales

41,633

38,633

21,562

 

 

 

 

Purchases, net of inventory variation

(26,719)

(23,398)

(12,025)

Other operating expenses

(6,717)

(6,880)

(6,321)

Exploration costs

(123)

(167)

(114)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,121)

(3,325)

(11,593)

Other income

223

358

362

Other expense

(298)

(659)

(108)

 

 

 

 

Financial interest on debt

(501)

(466)

(530)

Financial income and expense from cash & cash equivalents

77

95

50

Cost of net debt

(424)

(371)

(480)

 

 

 

 

Other financial income

265

109

419

Other financial expense

(131)

(130)

(161)

 

 

 

 

Net income (loss) from equity affiliates

(680)

881

(447)

 

 

 

 

Income taxes

(1,609)

(1,639)

484

Consolidated net income

2,299

3,412

(8,422)

TotalEnergies share

2,206

3,344

(8,369)

Non-controlling interests

93

68

(53)

Earnings per share ($)

0.80

1.24

(3.27)

Fully-diluted earnings per share ($)

0.80

1.23

(3.27)

(a) Except for per share amounts.

2.5 Consolidated statement of comprehensive income – quarterly
TotalEnergies
(unaudited)

(M$)

2nd quarter

2021

1st quarter

2021

2nd quarter

2020

Consolidated net income

2,299

3,412

(8,422)

Other comprehensive income

 

 

 

Actuarial gains and losses

449

(356)

Change in fair value of investments in equity instruments

56

12

90

Tax effect

(142)

(12)

101

Currency translation adjustment generated by the parent company

1,239

(4,173)

1,780

Items not potentially reclassifiable to profit and loss

1,602

(4,173)

1,615

Currency translation adjustment

(746)

2,523

(919)

Cash flow hedge

(424)

504

231

Variation of foreign currency basis spread

(4)

14

Share of other comprehensive income of equity affiliates, net amount

(18)

469

296

Other

(1)

1

Tax effect

100

(157)

(78)

Items potentially reclassifiable to profit and loss

(1,093)

3,340

(456)

Total other comprehensive income (net amount)

509

(833)

1,159

Comprehensive income

2,808

2,579

(7,263)

TotalEnergies share

2,670

2,542

(7,253)

Non-controlling interests

138

37

(10)

2.6 Consolidated balance sheet
TotalEnergies

(M$)

June 30, 2021

(unaudited)

March 31, 2021

(unaudited)

December 31,
2020

June 30, 2020

(unaudited)

ASSETS
Non-current assets

 

 

 

 

Intangible assets, net

33,359

33,239

33,528

33,114

Property, plant and equipment, net

106,791

106,859

108,335

104,925

Equity affiliates: investments and loans

29,712

30,727

27,976

27,470

Other investments

2,247

2,062

2,007

1,627

Non-current financial assets

3,778

3,700

4,781

2,431

Deferred income taxes

6,578

6,619

7,016

7,257

Other non-current assets

2,800

2,638

2,810

2,539

Total non-current assets

185,265

185,844

186,453

179,363

Current assets
Inventories, net

19,162

16,192

14,730

12,688

Accounts receivable, net

17,192

17,532

14,068

13,481

Other current assets

17,585

14,304

13,428

17,155

Current financial assets

4,404

4,605

4,630

6,570

Cash and cash equivalents

28,643

30,285

31,268

29,727

Assets classified as held for sale

456

396

1,555

421

Total current assets

87,442

83,314

79,679

80,042

Total assets

272,707

269,158

266,132

259,405

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

Shareholders’ equity

 

 

 

 

Common shares

8,224

8,193

8,267

8,159

Paid-in surplus and retained earnings

110,967

112,676

107,078

107,934

Currency translation adjustment

(11,087)

(11,566)

(10,256)

(13,265)

Treasury shares

(8)

(8)

(1,387)

(1,623)

Total shareholders’ equity – TotalEnergies share

108,096

109,295

103,702

101,205

Non-controlling interests

2,480

2,390

2,383

2,334

Total shareholders’ equity

110,576

111,685

106,085

103,539

Non-current liabilities
Deferred income taxes

10,596

10,387

10,326

10,346

Employee benefits

3,305

3,644

3,917

3,612

Provisions and other non-current liabilities

20,716

20,893

20,925

19,487

Non-current financial debt

52,331

52,541

60,203

61,540

Total non-current liabilities

86,948

87,465

95,371

94,985

Current liabilities
Accounts payable

29,752

26,959

23,574

19,198

Other creditors and accrued liabilities

27,836

22,066

22,465

24,790

Current borrowings

16,983

20,471

17,099

16,154

Other current financial liabilities

322

351

203

411

Liabilities directly associated with the assets classified as held for sale

290

161

1,335

328

Total current liabilities

75,183

70,008

64,676

60,881

Total liabilities & shareholders’ equity

272,707

269,158

266,132

259,405

2.7 Consolidated statement of cash flow – half-yearly
TotalEnergies
(unaudited)

(M$)

1st half

2021

1st half

2020

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income

5,711

(8,420)

Depreciation, depletion, amortization and impairment

6,760

15,431

Non-current liabilities, valuation allowances and deferred taxes

331

(1,457)

(Gains) losses on disposals of assets

(370)

(340)

Undistributed affiliates’ equity earnings

682

391

(Increase) decrease in working capital

(150)

(453)

Other changes, net

185

(374)

Cash flow from operating activities

13,149

4,778

 

 

 

CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions

(5,085)

(4,773)

Acquisitions of subsidiaries, net of cash acquired

(170)

(188)

Investments in equity affiliates and other securities

(2,433)

(1,670)

Increase in non-current loans

(680)

(1,028)

Total expenditures

(8,368)

(7,659)

Proceeds from disposals of intangible assets and property, plant and equipment

271

263

Proceeds from disposals of subsidiaries, net of cash sold

229

154

Proceeds from disposals of non-current investments

279

315

Repayment of non-current loans

301

225

Total divestments

1,080

957

Cash flow used in investing activities

(7,288)

(6,702)

 

 

 

CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:

 

 

Parent company shareholders

381

374

Treasury shares

(165)

(611)

Dividends paid:

 

 

Parent company shareholders

(4,184)

(3,810)

Non-controlling interests

(63)

(76)

Net issuance (repayment) of perpetual subordinated notes

3,248

Payments on perpetual subordinated notes

(234)

(231)

Other transactions with non-controlling interests

(55)

(70)

Net issuance (repayment) of non-current debt

(839)

15,472

Increase (decrease) in current borrowings

(6,031)

(3,819)

Increase (decrease) in current financial assets and liabilities

(215)

(2,546)

Cash flow from (used in) financing activities

(8,157)

4,683

Net increase (decrease) in cash and cash equivalents

(2,296)

2,759

Effect of exchange rates

(329)

(384)

Cash and cash equivalents at the beginning of the period

31,268

27,352

Cash and cash equivalents at the end of the period

28,643

29,727

2.8 Consolidated statement of cash flow – quarterly
TotalEnergies
(unaudited)

(M$)

2nd quarter

2021

1st quarter

2021

2nd quarter

2020

CASH FLOW FROM OPERATING ACTIVITIES

Consolidated net income

2,299

3,412

(8,422)

Depreciation, depletion, amortization and impairment

3,287

3,473

11,701

Non-current liabilities, valuation allowances and deferred taxes

210

121

(796)

(Gains) losses on disposals of assets

(85)

(285)

(131)

Undistributed affiliates’ equity earnings

1,255

(573)

978

(Increase) decrease in working capital

669

(819)

431

Other changes, net

(84)

269

(282)

Cash flow from operating activities

7,551

5,598

3,479

 

 

 

 

CASH FLOW USED IN INVESTING ACTIVITIES

 

 

 

Intangible assets and property, plant and equipment additions

(2,675)

(2,410)

(2,409)

Acquisitions of subsidiaries, net of cash acquired

(170)

Investments in equity affiliates and other securities

(307)

(2,126)

(136)

Increase in non-current loans

(380)

(300)

(733)

Total expenditures

(3,532)

(4,836)

(3,278)

Proceeds from disposals of intangible assets and property, plant and equipment

45

226

219

Proceeds from disposals of subsidiaries, net of cash sold

229

12

Proceeds from disposals of non-current investments

216

63

20

Repayment of non-current loans

167

134

99

Total divestments

428

652

350

Cash flow used in investing activities

(3,104)

(4,184)

(2,928)

 

 

 

 

CASH FLOW USED IN FINANCING ACTIVITIES

 

 

 

Issuance (repayment) of shares:

 

 

 

Parent company shareholders

381

374

Treasury shares

(165)

(2)

Dividends paid:

 

 

 

Parent company shareholders

(2,094)

(2,090)

(1,928)

Non-controlling interests

(53)

(10)

(76)

Net issuance (repayment) of perpetual subordinated notes

3,248

Payments on perpetual subordinated notes

(147)

(87)

(134)

Other transactions with non-controlling interests

(55)

(22)

Net issuance (repayment) of non-current debt

51

(890)

15,430

Increase (decrease) in current borrowings

(4,369)

(1,662)

(6,604)

Increase (decrease) in current financial assets and liabilities

(67)

(148)

449

Cash flow from (used in) financing activities

(6,298)

(1,859)

7,487

Net increase (decrease) in cash and cash equivalents

(1,851)

(445)

8,038

Effect of exchange rates

209

(538)

55

Cash and cash equivalents at the beginning of the period

30,285

31,268

21,634

Cash and cash equivalents at the end of the period

28,643

30,285

29,727

2.9 Consolidated statement of changes in shareholders’ equity
TotalEnergies
(unaudited)

(M$)

Common shares issued

Paid-in surplus and retained earnings

Currency translation adjustment

Treasury shares

Shareholders’ equity – TotalEnergies Share

Non-controlling interests

Total shareholders’ equity

Number

Amount

Number

Amount

As of January 1, 2020

2,601,881,075

8,123

121,170

(11,503)

(15,474,234)

(1,012)

116,778

2,527

119,305

Net income of the first half 2020

(8,335)

(8,335)

(85)

(8,420)

Other comprehensive income

(1,327)

(1,762)

(3,089)

(38)

(3,127)

Comprehensive Income

(9,662)

(1,762)

(11,424)

(123)

(11,547)

Dividend

(3,799)

(3,799)

(76)

(3,875)

Issuance of common shares

13,179,262

36

338

374

374

Purchase of treasury shares

(13,236,044)

(611)

(611)

(611)

Sale of treasury shares(a)

3,680

Share-based payments

96

96

96

Share cancellation

Net issuance (repayment)
of perpetual subordinated notes

Payments on perpetual
subordinated notes

(143)

(143)

(143)

Other operations with
non-controlling interests

(63)

(63)

(7)

(70)

Other items

(3)

(3)

13

10

As of June 30, 2020

2,615,060,337

8,159

107,934

(13,265)

(28,706,598)

(1,623)

101,205

2,334

103,539

Net income of the second half 2020

1,093

1,093

(9)

1,084

Other comprehensive income

1,006

3,013

4,019

338

4,357

Comprehensive Income

2,099

3,013

5,112

329

5,441

Dividend

(4,100)

(4,100)

(158)

(4,258)

Issuance of common shares

38,063,688

108

1,132

1,240

1,240

Purchase of treasury shares

Sale of treasury shares(a)

(236)

4,313,895

236

Share-based payments

92

92

92

Share cancellation

Net issuance (repayment)
of perpetual subordinated notes

331

331

331

Payments on perpetual
subordinated notes

(165)

(165)

(165)

Other operations with
non-controlling interests

2

(4)

(2)

(110)

(112)

Other items

(11)

(11)

(12)

(23)

As of December 31, 2020

2,653,124,025

8,267

107,078

(10,256)

(24,392,703)

(1,387)

103,702

2,383

106,085

Net income of the first half 2021

5,550

5,550

161

5,711

Other comprehensive income

485

(823)

(338)

14

(324)

Comprehensive Income

6,035

(823)

5,212

175

5,387

Dividend

(4,189)

(4,189)

(63)

(4,252)

Issuance of common shares

10,589,713

31

350

381

381

Purchase of treasury shares

(3,636,351)

(165)

(165)

(165)

Sale of treasury shares(a)

(216)

4,570,220

216

Share-based payments

61

61

61

Share cancellation

(23,284,409)

(74)

(1,254)

23,284,409

1,328

Net issuance (repayment)
of perpetual subordinated notes

3,254

3,254

3,254

Payments on perpetual
subordinated notes

(184)

(184)

(184)

Other operations with
non-controlling interests

26

(6)

20

(20)

Other items

6

(2)

4

5

9

As of June 30, 2021

2,640,429,329

8,224

110,967

(11,087)

(174,425)

(8)

108,096

2,480

110,576

(a) Treasury shares related to the performance share grants.

2.10 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST SIX MONTHS 2021 (UNAUDITED)
1) Accounting policies
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).

The interim consolidated financial statements of TotalEnergies SE and its subsidiaries (the Company) as of June 30, 2021, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.

The accounting principles applied for the consolidated financial statements at June 30, 2021, are consistent with those used for the financial statements at December 31, 2020. Since January 1, 2020, the Company has early adopted the amendments to IFRS 7 and IFRS 9 relating to the interest rate benchmark reform phase II. In particular, these amendments allow to maintain the hedge accounting qualification of interest rate derivatives.

The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2021 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.

These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.

The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2020.

Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.

Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management of the Company applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.

2) Changes in the Company structure
2.1) Main acquisitions and divestments
Integrated Gas, Renewables & Power

  • In January 2021, TotalEnergies finalized the acquisition of a 20% minority interest in Adani Green Energy Limited (AGEL) from Adani Group. Adani Green Energy Limited (AGEL), a part of the Adani Group, has 14.6 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties.

Refining-Chemicals

  • In February 2021, TotalEnergies finalized the sale of Lindsey refinery and its associated logistic assets, as well as all the related rights and obligations, to the Prax Group.

2.2) Divestment projects
Exploration-Production

  • TotalEnergies has initiated the sale process of its 30.323% interest in the share capital of Petrocedeño in Venezuela. As mentioned in Note 8 Subsequent Events, this process led to the execution on July 9, 2021 of a Share Purchase Agreement with PDVSA.

As of June 30, 2021, the assets have been classified as “assets classified as held for sale” for a null value. These assets are the shares of Petrocedeño, as consolidated under the equity method and recorded at their sale price; this transaction triggering a loss of $1.38 billion in the financial statements of TotalEnergies.

  • On July 30, 2020, TotalEnergies announced that its 58% owned affiliate Total Gabon has signed an agreement with Perenco to divest its interests in seven mature non-operated offshore fields, along with its interests and operatorship in the Cap Lopez oil terminal. The transaction remains subject to approval by the Gabonese authorities.

As of June 30, 2021, the assets and liabilities have been respectively classified in the consolidated balance sheet as “assets classified as held for sale” for an amount of $398 million and “liabilities classified as held for sale” for an amount of $169 million. These assets mainly include tangible assets.

3) Business segment information
Description of the business segments
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 and which is reviewed by the main operational decision-making body of the Company, namely the Executive Committee.

The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.

Sales prices between business segments approximate market prices.

The organization of the Company’s activities is structured around the four followings segments:

  • an Exploration & Production segment;
  • an Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity;
  • a Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining, petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping;
  • a Marketing & Services segment including the global activities of supply and marketing in the field of petroleum products.

In addition the Corporate segment includes holdings operating and financial activities.

Adjustment items
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.

Adjustment items include:

  1. 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 assets 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.
  2. The 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 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 according to the FIFO (First-In, First-Out) and the replacement cost methods.
  3. Effect of changes in fair value
    The effect of changes in fair value presented as adjustment items reflects for certain transactions differences between the internal measure 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, which future effects are recorded at fair value in the Company’s 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 and the effect of changes in fair value.

3.1) Information by business segment

1st half 2021

(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

3,257

10,588

40,054

36,880

7

90,786

Intersegment sales

14,433

1,555

11,890

186

68

(28,132)

Excise taxes

(630)

(9,890)

(10,520)

Revenues from sales

17,690

12,143

51,314

27,176

75

(28,132)

80,266

Operating expenses

(7,352)

(10,321)

(48,579)

(25,510)

(374)

28,132

(64,004)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(4,317)

(762)

(787)

(526)

(54)

(6,446)

Operating income

6,021

1,060

1,948

1,140

(353)

9,816

Net income (loss) from equity affiliates
and other items

(973)

682

211

23

(5)

(62)

Tax on net operating income

(2,375)

(157)

(561)

(352)

54

(3,391)

Net operating income

2,673

1,585

1,598

811

(304)

6,363

Net cost of net debt

 

 

 

 

 

 

(652)

Non-controlling interests

 

 

 

 

 

 

(161)

Net income – TotalEnergies share

 

 

 

 

 

 

5,550

 

 

 

 

 

 

 

 

1st half 2021 (adjustments) (a)

(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

(44)

(44)

Intersegment sales

Excise taxes

Revenues from sales

(44)

(44)

Operating expenses

(23)

(62)

1,131

213

1,259

Depreciation, depletion and impairment
of tangible assets and mineral interests

(148)

(13)

(161)

Operating income (b)

(23)

(254)

1,118

213

1,054

Net income (loss) from equity affiliates
and other items

(1,482)

(96)

28

(43)

(62)

(1,655)

Tax on net operating income

(10)

59

(302)

(60)

2

(311)

Net operating income (b)

(1,515)

(291)

844

110

(60)

(912)

Net cost of net debt

 

 

 

 

 

 

10

Non-controlling interests

 

 

 

 

 

 

(14)

Net income – TotalEnergies share

 

 

 

 

 

 

(916)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

(b) Of which inventory valuation effect

- On operating income

1,140

206

- On net operating income

937

148

1st half 2021 (adjusted)

(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

3,257

10,632

40,054

36,880

7

90,830

Intersegment sales

14,433

1,555

11,890

186

68

(28,132)

Excise taxes

(630)

(9,890)

(10,520)

Revenues from sales

17,690

12,187

51,314

27,176

75

(28,132)

80,310

Operating expenses

(7,329)

(10,259)

(49,710)

(25,723)

(374)

28,132

(65,263)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(4,317)

(614)

(774)

(526)

(54)

(6,285)

Adjusted operating income

6,044

1,314

830

927

(353)

8,762

Net income (loss) from equity affiliates
and other items

509

778

183

66

57

1,593

Tax on net operating income

(2,365)

(216)

(259)

(292)

52

(3,080)

Adjusted net operating income

4,188

1,876

754

701

(244)

7,275

Net cost of net debt

 

 

 

 

 

 

(662)

Non-controlling interests

 

 

 

 

 

 

(147)

Adjusted net income – TotalEnergies share

 

 

 

 

 

 

6,466

 

 

 

 

 

 

 

 

1st half 2021

(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

Total expenditures

3,195

4,187

578

360

48

 

8,368

Total divestments

374

452

129

107

18

 

1,080

Cash flow from operating activities

8,571

1,347

3,228

1,102

(1,099)

 

13,149

 

 

 

 

 

 

 

 

1st half 2020

(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

2,574

8,403

27,956

30,661

6

69,600

Intersegment sales

8,661

895

9,051

196

59

(18,862)

Excise taxes

(1,119)

(8,342)

(9,461)

Revenues from sales

11,235

9,298

35,888

22,515

65

(18,862)

60,139

Operating expenses

(6,048)

(8,398)

(35,736)

(21,730)

(562)

18,862

(53,612)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(12,311)

(1,616)

(788)

(473)

(40)

(15,228)

Operating income

(7,124)

(716)

(636)

312

(537)

(8,701)

Net income (loss) from equity affiliates
and other items

440

420

(92)

32

164

964

Tax on net operating income

(56)

330

203

(159)

2

320

Net operating income

(6,740)

34

(525)

185

(371)

(7,417)

Net cost of net debt

 

 

 

 

 

 

(1,003)

Non-controlling interests

 

 

 

 

 

 

85

Net income – TotalEnergies share

 

 

 

 

 

 

(8,335)

1st half 2020 (adjustments) (a)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

(16)

(16)

Intersegment sales

Excise taxes

Revenues from sales

(16)

(16)

Operating expenses

(37)

(318)

(1,637)

(341)

(91)

(2,424)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(7,338)

(953)

(8,291)

Operating income (b)

(7,375)

(1,287)

(1,637)

(341)

(91)

(10,731)

Net income (loss) from equity affiliates
and other items

71

(292)

(271)

(5)

(497)

Tax on net operating income

70

374

426

100

12

982

Net operating income (b)

(7,234)

(1,205)

(1,482)

(246)

(79)

(10,246)

Net cost of net debt

 

 

 

 

 

 

(68)

Non-controlling interests

 

 

 

 

 

 

72

Net income – TotalEnergies share

 

 

 

 

 

 

(10,242)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

(b) Of which inventory valuation effect

- On operating income

 

 

 (1,604)

 (234)

 

- On net operating income

(1,371)

 (163)

1st half 2020 (adjusted)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

2,574

8,419

27,956

30,661

6

69,616

Intersegment sales

8,661

895

9,051

196

59

(18,862)

Excise taxes

(1,119)

(8,342)

(9,461)

Revenues from sales

11,235

9,314

35,888

22,515

65

(18,862)

60,155

Operating expenses

(6,011)

(8,080)

(34,099)

(21,389)

(471)

18,862

(51,188)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(4,973)

(663)

(788)

(473)

(40)

(6,937)

Adjusted operating income

251

571

1,001

653

(446)

2,030

Net income (loss) from equity affiliates
and other items

369

712

179

37

164

1,461

Tax on net operating income

(126)

(44)

(223)

(259)

(10)

(662)

Adjusted net operating income

494

1,239

957

431

(292)

2,829

Net cost of net debt

 

 

 

 

 

 

(935)

Non-controlling interests

 

 

 

 

 

 

13

Adjusted net income – TotalEnergies share

 

 

 

 

 

 

1,907

1st half 2020
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

Total expenditures

3,265

3,461

533

334

66

 

7,659

Total divestments

325

433

101

72

26

 

957

Cash flow from operating activities

4,833

900

(103)

420

(1,272)

 

4,778

2nd quarter 2021
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

1,743

5,086

20,853

19,367

47,049

Intersegment sales

7,855

744

6,369

108

39

(15,115)

Excise taxes

(225)

(5,191)

(5,416)

Revenues from sales

9,598

5,830

26,997

14,284

39

(15,115)

41,633

Operating expenses

(4,284)

(5,103)

(25,646)

(13,434)

(207)

15,115

(33,559)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(2,134)

(291)

(396)

(271)

(29)

(3,121)

Operating income

3,180

436

955

579

(197)

4,953

Net income (loss) from equity affiliates
and other items

(1,243)

419

123

57

23

(621)

Tax on net operating income

(1,195)

(56)

(281)

(176)

16

(1,692)

Net operating income

742

799

797

460

(158)

2,640

Net cost of net debt

 

 

 

 

 

 

(341)

Non-controlling interests

 

 

 

 

 

 

(93)

Net income – TotalEnergies share

 

 

 

 

 

 

2,206

2nd quarter 2021 (adjustments) (a)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

(9)

(9)

Intersegment sales

Excise taxes

Revenues from sales

(9)

(9)

Operating expenses

(23)

(54)

386

71

380

Depreciation, depletion and impairment of tangible assets and mineral interests

(3)

(13)

(16)

Operating income (b)

(23)

(66)

373

71

355

Net income (loss) from equity affiliates and other items

(1,436)

(47)

22

(8)

(22)

(1,491)

Tax on net operating income

(12)

21

(109)

(20)

(120)

Net operating income (b)

(1,471)

(92)

286

43

(22)

(1,256)

Net cost of net debt

 

 

 

 

 

 

4

Non-controlling interests

 

 

 

 

 

 

(5)

Net income – TotalEnergies share

 

 

 

 

 

 

(1,257)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

(b) Of which inventory valuation effect

- On operating income

 

394

 69

 

- On net operating income

331

 50

2nd quarter 2021 (adjusted)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

1,743

5,095

20,853

19,367

47,058

Intersegment sales

7,855

744

6,369

108

39

(15,115)

Excise taxes

(225)

(5,191)

(5,416)

Revenues from sales

9,598

5,839

26,997

14,284

39

(15,115)

41,642

Operating expenses

(4,261)

(5,049)

(26,032)

(13,505)

(207)

15,115

(33,939)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(2,134)

(288)

(383)

(271)

(29)

(3,105)

Adjusted operating income

3,203

502

582

508

(197)

4,598

Net income (loss) from equity affiliates
and other items

193

466

101

65

45

870

Tax on net operating income

(1,183)

(77)

(172)

(156)

16

(1,572)

Adjusted net operating income

2,213

891

511

417

(136)

3,896

Net cost of net debt

 

 

 

 

 

 

(345)

Non-controlling interests

 

 

 

 

 

 

(88)

Adjusted net income – TotalEnergies share

 

 

 

 

 

 

3,463

2nd quarter 2021
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

Total expenditures

1,830

1,167

291

222

22

 

3,532

Total divestments

63

310

13

36

6

 

428

Cash flow from operating activities

4,835

567

2,232

437

(520)

 

7,551

2nd quarter 2020
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

992

3,313

9,433

11,986

6

25,730

Intersegment sales

3,097

301

2,956

107

31

(6,492)

Excise taxes

(469)

(3,699)

(4,168)

Revenues from sales

4,089

3,614

11,920

8,394

37

(6,492)

21,562

Operating expenses

(2,405)

(3,406)

(10,895)

(7,931)

(315)

6,492

(18,460)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(9,667)

(1,282)

(393)

(229)

(22)

(11,593)

Operating income

(7,983)

(1,074)

632

234

(300)

(8,491)

Net income (loss) from equity affiliates
and other items

17

21

(35)

22

40

65

Tax on net operating income

398

322

(132)

(127)

(26)

435

Net operating income

(7,568)

(731)

465

129

(286)

(7,991)

Net cost of net debt

 

 

 

 

 

 

(431)

Non-controlling interests

 

 

 

 

 

 

53

Net income – TotalEnergies share

 

 

 

 

 

 

(8,369)

2nd quarter 2020 (adjustments) (a)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

(18)

(18)

Intersegment sales

Excise taxes

Revenues from sales

(18)

(18)

Operating expenses

(27)

(199)

(48)

5

(36)

(305)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(7,338)

(953)

(8,291)

Operating income (b)

(7,365)

(1,170)

(48)

5

(36)

(8,614)

Net income (loss) from equity affiliates
and other items

(57)

(217)

(63)

(5)

(342)

Tax on net operating income

63

330

1

12

406

Net operating income (b)

(7,359)

(1,057)

(110)

(24)

(8,550)

Net cost of net debt

 

 

 

 

 

 

33

Non-controlling interests

 

 

 

 

 

 

22

Net income – TotalEnergies share

 

 

 

 

 

 

(8,495)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

(b) Of which inventory valuation effect

- On operating income

 

(26)

 (16)

 

- On net operating income

 

(86)

 (9)

2nd quarter 2020 (adjusted)
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

External sales

992

3,331

9,433

11,986

6

25,748

Intersegment sales

3,097

301

2,956

107

31

(6,492)

Excise taxes

(469)

(3,699)

(4,168)

Revenues from sales

4,089

3,632

11,920

8,394

37

(6,492)

21,580

Operating expenses

(2,378)

(3,207)

(10,847)

(7,936)

(279)

6,492

(18,155)

Depreciation, depletion and impairment
of tangible assets and mineral interests

(2,329)

(329)

(393)

(229)

(22)

(3,302)

Adjusted operating income

(618)

96

680

229

(264)

123

Net income (loss) from equity affiliates
and other items

74

238

28

27

40

407

Tax on net operating income

335

(8)

(133)

(127)

(38)

29

Adjusted net operating income

(209)

326

575

129

(262)

559

Net cost of net debt

 

 

 

 

 

 

(464)

Non-controlling interests

 

 

 

 

 

 

31

Adjusted net income – TotalEnergies share

 

 

 

 

 

 

126

2nd quarter 2020
(M$)

Exploration
&
Production

Integrated Gas, Renewables
& Power

Refining

&
Chemicals

Marketing
&
Services

Corporate

Intercompany

Total

Total expenditures

1,606

1,170

307

174

21

 

3,278

Total divestments

204

89

22

26

9

 

350

Cash flow from operating activities

910

1,389

1,080

819

(719)

 

3,479

3.2) Reconciliation of the information by business segment with consolidated financial statements

1st half 2021
(M$)

Adjusted

Adjustments (a)

Consolidated

statement
of income

Sales

90,830

(44)

90,786

Excise taxes

(10,520)

(10,520)

Revenues from sales

80,310

(44)

80,266

Purchases net of inventory variation

(51,397)

1,280

(50,117)

Other operating expenses

(13,576)

(21)

(13,597)

Exploration costs

(290)

(290)

Depreciation, depletion and impairment of tangible assets and mineral interests

(6,285)

(161)

(6,446)

Other income

554

27

581

Other expense

(334)

(623)

(957)

Financial interest on debt

(967)

(967)

Financial income and expense from cash & cash equivalents

156

16

172

Cost of net debt

(811)

16

(795)

Other financial income

374

374

Other financial expense

(261)

(261)

Net income (loss) from equity affiliates

1,260

(1,059)

201

Income taxes

(2,931)

(317)

(3,248)

Consolidated net income

6,613

(902)

5,711

TotalEnergies share

6,466

(916)

5,550

Non-controlling interests

147

14

161

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

1st half 2020
(M$)

Adjusted

Adjustments (a)

Consolidated

statement
of income

Sales

69,616

(16)

69,600

Excise taxes

(9,461)

(9,461)

Revenues from sales

60,155

(16)

60,139

Purchases net of inventory variation

(37,949)

(2,144)

(40,093)

Other operating expenses

(12,985)

(280)

(13,265)

Exploration costs

(254)

(254)

Depreciation, depletion and impairment of tangible assets and mineral interests

(6,937)

(8,291)

(15,228)

Other income

820

122

942

Other expense

(294)

(234)

(528)

Financial interest on debt

(1,094)

(5)

(1,099)

Financial income and expense from cash & cash equivalents

(13)

(92)

(105)

Cost of net debt

(1,107)

(97)

(1,204)

Other financial income

607

607

Other financial expense

(341)

(1)

(342)

Net income (loss) from equity affiliates

669

(384)

285

Income taxes

(490)

1,011

521

Consolidated net income

1,894

(10,314)

(8,420)

TotalEnergies share

1,907

(10,242)

(8,335)

Non-controlling interests

(13)

(72)

(85)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

2nd quarter 2021
(M$)

Adjusted

Adjustments (a)

Consolidated

statement
of income

Sales

47,058

(9)

47,049

Excise taxes

(5,416)

(5,416)

Revenues from sales

41,642

(9)

41,633

Purchases net of inventory variation

(27,108)

389

(26,719)

Other operating expenses

(6,708)

(9)

(6,717)

Exploration costs

(123)

(123)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,105)

(16)

(3,121)

Other income

138

85

223

Other expense

(142)

(156)

(298)

Financial interest on debt

(501)

(501)

Financial income and expense from cash & cash equivalents

69

8

77

Cost of net debt

(432)

8

(424)

Other financial income

265

265

Other financial expense

(131)

(131)

Net income (loss) from equity affiliates

740

(1,420)

(680)

Income taxes

(1,485)

(124)

(1,609)

Consolidated net income

3,551

(1,252)

2,299

TotalEnergies share

3,463

(1,257)

2,206

Non-controlling interests

88

5

93

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

2nd quarter 2020
(M$)

Adjusted

Adjustments (a)

Consolidated

statement
of income

Sales

25,748

(18)

25,730

Excise taxes

(4,168)

(4,168)

Revenues from sales

21,580

(18)

21,562

Purchases net of inventory variation

(11,842)

(183)

(12,025)

Other operating expenses

(6,199)

(122)

(6,321)

Exploration costs

(114)

(114)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,302)

(8,291)

(11,593)

Other income

240

122

362

Other expense

(103)

(5)

(108)

Financial interest on debt

(527)

(3)

(530)

Financial income and expense from cash & cash equivalents

(3)

53

50

Cost of net debt

(530)

50

(480)

Other financial income

419

419

Other financial expense

(160)

(1)

(161)

Net income (loss) from equity affiliates

11

(458)

(447)

Income taxes

95

389

484

Consolidated net income

95

(8,517)

(8,422)

TotalEnergies share

126

(8,495)

(8,369)

Non-controlling interests

(31)

(22)

(53)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

3.3) Adjustment items
The detail of the adjustment items is presented in the table below.

Adjustments to operating income

(M$)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Total

2nd quarter 2021

Inventory valuation effect

394

69

463

Effect of changes in fair value

(49)

(49)

Restructuring charges

(1)

(8)

(9)

Asset impairment charges

(3)

(13)

(16)

Other items

(23)

(13)

2

(34)

TOTAL

 

(23)

(66)

373

71

355

2nd quarter 2020

Inventory valuation effect

(26)

(16)

(42)

Effect of changes in fair value

(100)

(100)

Restructuring charges

(10)

(7)

(17)

Asset impairment charges

(7,338)

(953)

(8,291)

Other items

(27)

(107)

(15)

21

(36)

(164)

TOTAL

 

(7,365)

(1,170)

(48)

5

(36)

(8,614)

1st half 2021

Inventory valuation effect

1,140

206

1,346

Effect of changes in fair value

(58)

(58)

Restructuring charges

(10)

(8)

(18)

Asset impairment charges

(148)

(13)

(161)

Other items

(23)

(38)

(1)

7

(55)

TOTAL

 

(23)

(254)

1,118

213

1,054

1st half 2020

Inventory valuation effect

(1,604)

(234)

(1,838)

Effect of changes in fair value

(98)

(98)

Restructuring charges

(10)

(18)

(7)

(35)

Asset impairment charges

(7,338)

(953)

(8,291)

Other items

(27)

(218)

(26)

(107)

(91)

(469)

TOTAL

 

(7,375)

(1,287)

(1,637)

(341)

(91)

(10,731)

Adjustments to net income, TotalEnergies share

(M$)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Total

2nd quarter 2021

Inventory valuation effect

327

48

375

Effect of changes in fair value

(44)

(44)

Restructuring charges

(44)

(4)

(32)

(8)

(22)

(110)

Asset impairment charges

(36)

(13)

(49)

Gains (losses) on disposals of assets

(1,379)*

(1,379)

Other items

(44)

(7)

1

(50)

TOTAL

 

(1,467)

(91)

282

41

(22)

(1,257)

* Impact of the TotalEnergies’ interest sale of Petrocedeño to PDVSA.

 

 

 

 

 

 

 

 

 

2nd quarter 2020

Inventory valuation effect

(83)

(11)

(94)

Effect of changes in fair value

(80)

(80)

Restructuring charges

(10)

(10)

(20)

Asset impairment charges

(7,272)

(829)

(8,101)

Gains (losses) on disposals of assets

Other items

(77)

(131)

(14)

10

12

(200)

TOTAL

 

(7,349)

(1,050)

(107)

(1)

12

(8,495)

1st half 2021

Inventory valuation effect

926

138

1,064

Effect of changes in fair value

(50)

(50)

Restructuring charges

(85)

(12)

(71)

(43)

(60)

(271)

Asset impairment charges

(180)

(13)

(193)

Gains (losses) on disposals of assets

(1,379)*

(1,379)

Other items

(41)

(42)

(9)

5

(87)

TOTAL

 

(1,505)

(284)

833

100

(60)

(916)

* Impact of the TotalEnergies’ interest sale of Petrocedeño to PDVSA.

 

 

 

 

 

 

 

 

 

1st half 2020

Inventory valuation effect

(1,364)

(144)

(1,508)

Effect of changes in fair value

(79)

(79)

Restructuring charges

(3)

(22)

(75)

(100)

Asset impairment charges

(7,272)

(829)

(8,101)

Gains (losses) on disposals of assets

Other items

51

(256)

(36)

(71)

(142)

(454)

TOTAL

 

(7,224)

(1,186)

(1,475)

(215)

(142)

(10,242)

 

4) Shareholders’ equity
Treasury shares (TotalEnergies shares held directly by TotalEnergies SE)

 

 

Shares to be allocated as part of performance share grant plans

 

including the 2019 Plan

99,750

including other Plans

74,675

Total Treasury shares

174,425

Dividend
The Shareholders’ meeting of May 28, 2021 approved the distribution of a dividend of €2.64 per share for the 2020 fiscal year and the payment of a final dividend of €0.66 per share given the three interim dividends that had already been paid. The dividend for the fiscal year 2020 was paid according to the following timetable:

Dividend 2020

First interim

Second interim

Third interim

Final

Amount

€0.66

€0.66

€0.66

€0.66

Set date

May 4, 2020

July 29, 2020

October 29, 2020

May 28, 2021

Ex-dividend date

September 25, 2020

January 4, 2021

March 25, 2021

June 24, 2021

Payment date

October 2, 2020

January 11, 2021

April 1, 2021

July 1, 2021

Furthermore, on July 28, 2021 the Board of Directors decided to set the second interim dividend for the fiscal year 2021 at €0.66 per share, equal to the first interim dividend. This second interim dividend will be paid in cash on January 13, 2022 (the ex-dividend date will be January 3, 2022).

Dividend 2021

First interim

Second interim

Amount

€0.66

€0.66

Set date

April 28, 2021

July 28, 2021

Ex-dividend date

September 21, 2021