Loading...
Docoh

TotalEnergies SE (TTE)

Filed: 10 Feb 22, 10:05am

 

 

Exhibit 99.1

 

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

 

The financial information on pages 1-20 of this exhibit concerning TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE (collectively, “TotalEnergies”) with respect to the fourth quarter 2021 and year ended December 31, 2021 has been derived from TotalEnergies’ unaudited consolidated balance sheets as of December 31, 2021, unaudited statements of income, comprehensive income, cash flow and business segment information for the fourth quarter 2021 and year ended December 31, 2021 and unaudited consolidated statements of changes in shareholders’ equity for the year ended December 31, 2021 on pages 22 et seq. of this exhibit.

 

The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TotalEnergies’ audited consolidated financial statements and related notes, provided in TotalEnergies’ Annual Report on Form 20-F for the year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021.

 

A.KEY FIGURES

 

      4Q21   4Q21 in millions of dollars       2021
      vs   vs (except earnings per share and number of     vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 shares) 2021 2020 2020
60,348 54,729 37,943 +59% 49,280 +22% Sales 205,863 140,685 +46%
14,285 11,180 5,208 x2.7 8,949 +60% Adjusted EBITDA1 42,302 21,112 x2
7,316 5,374 1,824 x4 3,879 +89% Adjusted net operating income2 from business segments 20,209 6,404 x3.2
3,525 2,726 1,068 x3.3 2,031 +74% Exploration & Production 10,439 2,363 x4.4
2,759 1,608 254 x10.9 794 x3.5 Integrated Gas, Renewables & Power 6,243 1,778 x3.5
553 602 170 x3.3 580 -5% Refining & Chemicals 1,909 1,039 +84%
479 438 332 +44% 474 +1% Marketing & Services 1,618 1,224 +32%
1,860 1,377 73 x25.4 502 x3.7 Net income (loss) from equity affiliates 3,438 452 x7.6
2.17 1.71 0.31 x7 0.97 x2.2 Fully-diluted earnings per share ($) 5.92 (2.90) ns
2,644 2,655 2,645 - 2,607 +1% Fully-diluted weighted-average shares (millions) 2,647 2,621 +1%
5,837 4,645 891 x6.6 2,600 x2.2 Net income (TotalEnergies share) 16,032 (7,242) ns
4,681 2,813 3,432 +36% 4,291 +9% Organic investments3 12,675 10,339 +23%
(396) (958) 1,099 ns (80) ns Net acquisitions4 632 2,650 -76%
4,285 1,855 4,531 -5% 4,211 +2% Net investments5 13,307 12,989 +2%
11,621 5,640 5,674 x2 6,599 x1.8 Cash flow from operating activities6 30,410 14,803 x2.1
               Of which:      
2,232 (2,698) 1,342 x1.7 46 x48.5 (increase) decrease in working capital (616) 1,869 ns
(398) (330) (436) ns (533) ns financial charges (1,520) (1,938) ns

 

 

 

1Adjusted 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. The reconciliation of adjusted EBITDA with the consolidated financial statements is set forth under “Reconciliation of adjusted EBITDA with consolidated financial statements” on page 18 of this exhibit.

2Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See pages 4 et seq. “Analysis of business segment results” below for further details.

3“Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.

4“Net acquisitions” = acquisitions - assets sales - other transactions with non-controlling interests (see page 19).

5“Net investments” = organic investments + net acquisitions (see “Investments – Divestments’” on page 19).

6See also “C. TotalEnergies results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.

 

 1 

 

 

Environment* — liquids and gas price realizations, refining margins

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19   2021 2020 2020
79.8 73.5 44.2 +80% 63.1 +26% Brent ($/b) 70.9 41.8 +69%
4.8 4.3 2.8 +74% 2.4 +100% Henry Hub ($/Mbtu) 3.7 2.1 +75%
32.8 16.9 5.6 x5.9 5.1 x6.4 NBP** ($/Mbtu) 16.4 3.3 x4.9
35.0 18.6 8.0 x4.4 5.8 x6.1 JKM*** ($/Mbtu) 18.5 4.4 x4.2
72.6 67.1 41.0 +77% 59.1 +23% Average price of liquids ($/b)
Consolidated subsidiaries
 65.0 37.0 +76%
11.38 6.33 3.31 x3.4 3.76 x3 Average price of gas ($/Mbtu)
Consolidated subsidiaries
 6.60 2.96 x2.2
13.12 9.10 4.90 x2.7 6.52 x2 Average price of LNG ($/Mbtu)
Consolidated subsidiaries and equity affiliates
 8.80 4.83 +82%
16.7 8.8 4.6 x3.6 30.2 -45% Variable cost margin – Refining Europe, VCM ($/t)**** 10.5 11.5 -9%

 

 

* The indicators are shown on page 21.

** NBP (National Balancing Point) is a virtual natural gas trading point in the United Kingdom for transferring rights in respect of physical gas and which is widely used as a price benchmark for the natural gas markets in Europe. NBP is operated by National Grid Gas plc, the operator of the UK transmission network.

*** JKM (Japan-Korea Marker) measures the prices of spot LNG trades in Asia. It is based on prices reported in spot market trades and/or bids and offers collected after the close of the Asian trading day at 16:30 Singapore time.

**** This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons). Data restated in 2Q21 environment for energy costs were 35.7 $/t in 4Q21 and 20.5 $/t in 3Q21.

 

The average LNG selling price was $13.12/Mbtu in the fourth quarter 2021, up 44% compared to the previous quarter, benefiting on a lagged basis from the increase in oil and gas indices on long-term contracts as well as high spot gas prices in the quarter.

 

Greenhouse gas emissions (GHG)1

 

4Q21*3Q21*GHG emissions (MtCO2e)20212021
(excluding
Covid effect)
20202020
(excluding
Covid effect)
109Scope 1+2 from operated facilities235.737.038.441.5
9694Scope 3 from energy product sales3370400350400
5349Scope 1+2+3 in Europe4195215212239
4744of which Scope 3 in Europe175193190215

* Estimated emissions.

 

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 TotalEnergies’ emissions or are considered as non-material and are therefore not counted.

2           Scope 1+2 GHG emissions of operated facilities are defined as the sum of direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting (as defined in TotalEnergies’ 2020 Form 20-F filed on March 31, 2021) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2).

3          TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use by customers of energy products, i.e., combustion of the products to obtain energy. TotalEnergies follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil and gas value chain, i.e., the higher of the two production volumes or sales to end customers. For TotalEnergies, in 2021, the calculation of Scope 3 GHG emissions for the oil value chain considers oil products and biofuels sales (higher than production) and for the gas value chain, marketable gas production (higher than marketing sales).

4         Scope 1+2+3 GHG emissions in Europe are defined as the sum of Scope 1+2 GHG emissions of facilities operated by TotalEnergies and indirect GHG emissions related to the use by customers of energy products (Scope 3) in the EU, Norway, United Kingdom and Switzerland.

 

 2 

 

 

Production*

 

      4Q21   4Q21       2021 
      vs   vs       vs 
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Hydrocarbon production 2021 2020 2020 
2,852 2,814 2,841 - 3,113 -8% Hydrocarbon production (kboe/d) 2,819 2,871 -2% 
1,278 1,288 1,238 +3% 1,452 -12% Oil (including bitumen) (kb/d) 1,274 1,298 -2% 
1,574 1,526 1,603 -2% 1,661 -5% Gas (including condensates and associated NGL) (kboe/d) 1,545 1,573 -2% 

 

      4Q21   4Q21       2021 
      vs   vs       vs 
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Hydrocarbon production 2021 2020 2020 
2,852 2,814 2,841 - 3,113 -8% Hydrocarbon production (kboe/d) 2,819 2,871 -2% 
1,509 1,517 1,483 +2% 1,714 -12%   Liquids (kb/d) 1,500 1,543 -3% 
7,328 7,070 7,406 -1% 7,563 -3%   Gas (Mcf/d) 7,203 7,246 -1% 
                    

 

 

*   TotalEnergies production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).

 

Hydrocarbon production was 2,852 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter 2021, stable compared to a year ago, comprised of:

·+2% due to start-ups and ramp-ups, including CLOV Phase 2 and Zinia Phase 2 in Angola, Yamal LNG train 4, and the resumption of production in Libya,

·+3% due to the increase in OPEC+ quotas,

·-1% due to portfolio effect, notably the Utica sale in the United States and the divestment of non-operated assets, particularly in Gabon,

·-1% due to the price effect,

·-1% due to planned maintenance and unplanned downtime, notably in Canada, Nigeria and the UK,

·-2% due to natural field decline.

 

Hydrocarbon production was 2,819 kboe/d in 2021, down 2% year-on-year, comprised of:

·+3% due to start-ups and ramp-ups, including North Russkoye in Russia, Iara in Brazil and Johan Sverdrup in Norway, as well as the resumption of production in Libya,

·+3% due to the increase in gas demand and OPEC+ quotas,

·-1% due to portfolio effect, notably the disposals of assets in the UK and the CA1 block in Brunei,

·-1% due to the price effect,

·-3% due to planned maintenance and unplanned downtime, particularly in the UK and Norway (Snøhvit),

·-3% due to the natural field decline.

 

 3 

 

 

B.ANALYSIS OF BUSINESS SEGMENT RESULTS

 

The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.

 

In accordance with IAS 2, TotalEnergies values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of TotalEnergies’ results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.

 

The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TotalEnergies’ management and the accounting for these transactions under IFRS, which 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 recorded at their fair value based on forward prices. TotalEnergies, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in TotalEnergies’ internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, 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 business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TotalEnergies’ interim consolidated financial statements, see pages 30 et seq. of this exhibit.

 

TotalEnergies measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.

 

 4 

 

 

B.1.    Integrated Gas, Renewables & Power segment (iGRP)

 

Production and sales of Liquefied Natural Gas (LNG) and electricity

 

   4Q21 4Q21     2021
   vs vs     vs
4Q213Q214Q204Q204Q194Q19 Hydrocarbon production for LNG 202120202020
562533532+6%624-10% iGRP (kboe/d) 529530-
686765+4%74-8% Liquids (kb/d) 6369-9%
2,6972,5272,549+6%2,939-8% Gas (Mcf/d) 2,5412,519+1%

 

   4Q21 4Q21     2021
   vs vs     vs
4Q213Q214Q204Q204Q194Q19 Liquefied Natural Gas in Mt 202120202020
11.610.010.0+16%10.6+10% Overall LNG sales 42.038.3+10%
4.64.34.3+6%4.2+9%  including sales from equity production* 17.417.6-1%
10.18.38.0+27%9.6+5% including sales by TotalEnergies from equity production and third party purchases 35.131.1+13%

 

 

* TotalEnergies’ equity production may be sold by TotalEnergies or by joint ventures.

 

Hydrocarbon production for LNG increased 6% year-on-year in the fourth quarter 2021, due to the impact of unplanned maintenance on fourth quarter 2020 production. Full-year 2021 was stable compared to 2020.

 

Total LNG sales increased sharply on higher production from Cameron LNG and Freeport LNG in the United States, up 16% in the fourth quarter 2021 compared to a year ago and up 10% for full-year 2021 versus 2020.

 

   4Q21   2021
4Q213Q214Q20vsRenewables & Electricity20212020vs
   4Q20   2020
43.042.728.6+50%Portfolio of renewable power generation gross capacity (GW) (1),(2)43.028.6+50%
10.39.57.0+47%o/w installed capacity10.37.0+47%
6.56.14.1+61%o/w capacity in construction6.54.1+61%
26.227.117.5+49%o/w capacity in development26.217.5+49%
28.026.617.5+60%Gross renewables capacity with PPA (GW) (1),(2)28.017.5+60%
31.731.719.2+65%Portfolio of renewable power generation net capacity (GW) (1),(2)31.719.2+65%
5.14.73.1+65%o/w installed capacity5.13.1+65%
4.64.02.3x2o/w capacity in construction4.62.3x2
22.023.013.8+59%o/w capacity in development22.013.8+59%
6.74.74.3+57%Net power production (TWh) (3)21.214.1+50%
1.91.71.2+61%incl. power production from renewables6.84.0+71%
6.16.05.6+9%Clients power - BtB and BtC (Million) (2)6.15.6+9%
2.72.72.7+2%Clients gas - BtB and BtC (Million) (2)2.72.7+2%
16.111.713.5+19%Sales power - BtB and BtC (TWh)56.647.3+20%
31.213.231.5-1%Sales gas - BtB and BtC (TWh)101.295.8+6%
        
447291179x2.5Proportional adjusted EBITDA Renewables and Electricity (M$) (4)1,393583x2.4
84104102-18%incl. from renewables business418352+19%

 

 

 

1 Includes 20% of Adani Green Energy Limited 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.

 

Gross installed renewable power generation capacity grew to 10.3 GW at the end of the fourth quarter 2021, up 800 MW, notably due to continued increase in start-ups in India and the commissioning of the Dunkirk battery-powered storage site in France.

 

 5 

 

 

Net electricity production stood at 6.7 TWh in the fourth quarter 2021, up 57% year-on-year, due to strong growth in electricity production from renewable sources as well as combined cycle gas turbine (CCGT) power plants, strengthened by the acquisition of four CCGT plants in France and Spain in the fourth quarter 2020.

 

TotalEnergies’ adjusted EBITDA of the Renewables & Electricity business was $447 million in the fourth quarter 2021, an increase of 2.5 times year-on-year, driven by strong growth in electricity generation, and took full advantage of integration into the electricity value chain in Europe.

 

Results

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 in millions of dollars 2021 2020 2020
11,634 8,482 5,231 x2.2 4,292 x2.7 External sales 30,704 15,629 x2
1,414 876 (64) ns 326 x4.3 Operating income 3,350 (527) ns
1,281 782 149 x8.6 391 x3.3 Net income (loss) from equity affiliates and other items 2,745 794 x3.5
(237) (208) 7 ns 104 ns Tax on net operating income (602) 71 ns
2,458 1,450 92 x26.7 821 x3 Net operating income 5,493 338 x16.3
301 158 162 +86% (27) ns Adjustments affecting net operating income 750 1,440 -48%
2,759 1,608 254 x10.9 794 x3.5 Adjusted net operating income* 6,243 1,778 x3.5
1,321 755 97 x13.6 353 x3.7 including adjusted income from equity affiliates 2,696 375 x7.2
1,190 639 1,007 +18% 684 +74% Organic investments 3,341 2,720 +23%
47 (941) 577 -92% (13) ns Net acquisitions 1,165 2,183 -47%
1,237 (302) 1,584 -22% 671 +84% Net investments 4,506 4,903 -8%

 

 

 

*Detail of adjustment items shown in the business segment information starting on page 30 of this exhibit.

 

Adjusted net operating income for the iGRP segment was:

·$2,759 million in the fourth quarter 2021, a 10.9-fold increase from a year ago, due to higher LNG prices and the very good performance of the gas, LNG and electricity trading activities,

·$6,243 million for the full-year 2021, a 3.5-fold increase from 2020, for the same reasons.

 

Adjusted net operating income for the iGRP segment excludes special items and the impact of changes in fair value. In the fourth quarter 2021, the exclusion of special items had a positive impact of $301 million on the segment’s adjusted net operating income, compared to a positive impact of $162 million in the fourth quarter 2020. For the full-year 2021, the exclusion of special items had a positive impact of $750 million on the segment’s adjusted net operating income, compared to a positive impact of $1,440 million for the full-year 2020.

 

The segment’s operating cash flow before working capital changes1 excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects was:

 

·$2,440 million in the fourth quarter 2021, a 2.3-fold increase from a year ago, due to higher LNG prices and the very good performance of the gas, LNG and electricity trading activities,

·$6,124 million in 2021, up 79% compared to 2020, for the same reasons.

 

The segment’s cash flow from operations excluding financial charges, except those related to leases was:

·-$57 million for the fourth quarter 2021, compared to $575 million in the fourth quarter 2020, and

·$827 million for 2021, a decrease of 61% from $2,129 million for 2020,

mainly due to variations in margin calls related to hedging mechanisms in a context of high volatility in the gas and electricity markets.

 

 

 

 

 

 

 

 

1 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). For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.

 

 6 

 

 

B.2.   Exploration & Production segment

 

Production

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Hydrocarbon production 2021 2020 2020
2,290 2,281 2,309 -1% 2,489 -8% EP (kboe/d) 2,290 2,341 -2%
1,441 1,450 1,418 +2% 1,640 -12% Liquids (kb/d) 1,437 1,474 -3%
4,631 4,543 4,857 -5% 4,624 - Gas (Mcf/d) 4,662 4,727 -1%

 

Results

 

      

4Q21

vs

4Q20

   

4Q21

vs

4Q19

       

2021

vs

2020

                
4Q21 3Q21 4Q20  4Q19  in millions of dollars, except effective tax
rate
 2021 2020 
2,068 1,921 1,257 x1.6 1,563 x1.3 External Sales 7,246 4,973 x1.5
5,894 4,395 842 x7 2,366 x2.5 Operating income 16,310 (5,514) ns
74 139 6 x12.3 166 -55% Net income (loss) from equity affiliates and other items (760) 697 ns
49.7% 46.4% 19.8%   38.0%   Effective tax rate* 45.2% 29.4%  
(3,124) (2,007) 91 ns (893) ns Tax on net operating income (7,506) (208) ns
2,844 2,527 939 x3 1,639 x1.7 Net operating income 8,044 (5,025) ns
681 32 129 x5.3 392 x1.7 Adjustments affecting net operating income 2,395 7,388 -68%
3,525 2,726 1,068 x3.3 2,031 +74% Adjusted net operating income** 10,439 2,363 x4.4
366 315 222 +65% 247 +48% including adjusted income from equity affiliates 1,230 928 +33%
2,196 1,656 1,569 +40% 2,617 -16% Organic investments 6,690 5,519 +21%
(162) (34) 548 ns (224) ns Net acquisitions (167) 544 ns
2,034 1,622 2,117 -4% 2,393 -15% Net investments 6,523 6,063 +8%

 

 

 

 *“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).

 **Detail of adjustment items shown in the business segment information starting on page 30 of this exhibit.

 

The Exploration & Production segment’s adjusted net operating income was:

·$3,525 million in the fourth quarter 2021, more than three times higher than in the fourth quarter 2020, thanks to the sharp increase in oil and gas prices,

·$10,439 million in 2021, more than four times higher than in 2020, for the same reasons.

 

Adjusted net operating income for the Exploration & Production segment excludes special items. In the fourth quarter 2021, the exclusion of special items had a positive impact of $681 million on the segment’s adjusted net operating income, compared to a positive impact of $129 million in the fourth quarter 2020. For the full-year 2021, the exclusion of special items had a positive impact of $2,395 million on the segment’s adjusted net operating income, compared to a positive impact of $7,388 million for the full-year 2020.

 

The segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was:

·$5,688 million in the fourth quarter 2021, 2.1 times greater than $2,652 million in the fourth quarter 2020, and

·$18,717 million for the full-year 2021, an increase of 93% compared to $9,684 million for the full-year 2020, in line with higher oil and gas prices.

 

The segment’s cash flow from operations excluding financial charges, except those related to leases was:

 $8,624 million in the fourth quarter 2021, 2.8 times greater than $3,046 million in the fourth quarter 2020, and

 $22,009 million for the full-year 2021, 2.2 times greater than $9,922 million for the full-year 2020.

 

 

 

 

2 Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.

 

 7 

 

 

B.3.   Downstream (Refining & Chemicals and Marketing & Services segments)

 

Results

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 in millions of dollars 2021 2020 2020
46,635 44,319 31,445 x1.5 43,419 x1.1 External sales 167,888 120,066 x1.4
1,153 1,682 690 x1.7 1,054 x1.1 Operating income 5,923 627 x18.1
311 81 (63) ns 72 x4.3 Net income (loss) from equity affiliates and other items 626 (356) ns
(398) (495) (262) ns (103) ns Tax on net operating income (1,806) (456) ns
1,066 1,268 365 x2.9 1,023 +4% Net operating income 4,743 (185) ns
(34) (228) 137 ns 31 ns Adjustments affecting net operating income (1,216) 2,448 ns
1,032 1,040 502 x2.1 1,054 -2% Adjusted net operating income* 3,527 2,263 +56%
1,267 506 840 x1.5 950 x1.3 Organic investments 2,576 2,023 +27%
(281) 17 80 ns 158 ns Net acquisitions (368) 32 ns
986 523 920 +7% 1,108 -11% Net investments 2,208 2,055 +7%

 

 

 

* Detail of adjustment items shown in the business segment information starting on page 30 of this exhibit.

 

The Downstream segment’s operating cash flow before working capital changes2 excluding financial charges, except those related to leases was:

 $1,559 million in the fourth quarter 2021, an increase of 38% compared to $1,129 million in the fourth quarter 2020, and

 $5,502 million for the full-year 2021, an increase of 18% compared to $4,652 million for the full-year 2020.

 

The Downstream segment’s cash flow from operations excluding financial charges, except those related to leases was:

 $2,832 million in the fourth quarter 2021, an increase of 31% compared to $2,162 million in the fourth quarter 2020, and

 $8,806 million for the full-year 2021, an increase of 94% compared to $4,539 million for the full-year 2020.

 

B.4 Refining & Chemicals segment

 

Refinery and petrochemicals throughput and utilization rates

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Refinery throughput and utilization rate* 2021 2020 2020
1,279 1,225 1,262 +1% 1,509 -15% Total refinery throughput (kb/d) 1,180 1,292 -9%
223 274 247 -10% 282 -21% France 190 244 -22%
612 505 582 +5% 756 -19% Rest of Europe 568 618 -8%
444 446 433 +3% 471 -6% Rest of world 423 430 -2%
73% 69% 60%   71%   Utilization rate based on crude only** 64% 61%  

 

 

 

*  Includes refineries in Africa reported in the Marketing & Services segment.

**Based on distillation capacity at the beginning of the year, excluding Grandpuits (shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021.

 

 8 

 

 

 

      

4Q21

vs

4Q20

   

4Q21

vs

4Q19

       

2021

vs

2020

                
4Q21 3Q21 4Q20  4Q19  Petrochemicals production and utilization rate 2021 2020 
1,460 1,486 1,486 -2% 1,431 +2% Monomers* (kt) 5,775 5,519 +5%
1,231 1,330 1,291 -5% 1,169 +5% Polymers (kt) 4,938 4,934 -
90% 93% 90%   92%   Vapocracker utilization rate** 90% 83%  

 

 

 

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

 

Refinery throughput:

·increased by 1% year-on-year in the fourth quarter 2021, due to the demand recovery partially offset by the prolonged shutdown of the Donges refinery for economic reasons, the shutdown of the Grandpuits refinery for conversion to a zero-oil platform and the sale of the Lindsey refinery in the United Kingdom.

·decreased by 9% in 2021 compared to 2020 for the same reasons as well as the planned major shutdown of the Leuna refinery in Germany in the second quarter 2021.

 

Monomer production:

·decreased by 2% year-on-year in the fourth quarter 2021, notably due to a planned maintenance shutdown on the Qapco platform in Qatar and unplanned shutdowns at several sites in Europe, partially offset by the restart of the Port Arthur steam cracker in the United States, in maintenance in 2020.

·increased 5% in 2021 compared to 2020, supported by demand, and notably due to the restart of the Port Arthur steam cracker in the United States, in maintenance in 2020.

 

Polymer production decreased 5% year-on-year in the fourth quarter 2021, given the decline in demand, particularly in Asia, and was stable in 2021 compared to 2020.

 

Results

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 in millions of dollars 2021 2020 2020
24,781 22,765 15,052 x1.6 22,040 x1.1 External sales 87,600 56,615 x1.5
610 1,006 183 x3.3 579 +5% Operating income 3,564 (814) ns
228 79 (54) ns 57 4 Net income (loss) from equity affiliates and other items 518 (393) ns
(234) (273) (93) ns (3) ns Tax on net operating income (1,068) 59 ns
604 812 36 x16.8 633 -5% Net operating income 3,014 (1,148) ns
(51) (210) 134 ns (53) ns Adjustments affecting net operating income (1,105) 2,187 ns
553 602 170 x3.3 580 -5% Adjusted net operating income* 1,909 1,039 +84%
680 321 448 +52% 479 +42% Organic investments 1,502 1,209 +24%
(156) (6) (2) ns 118 ns Net acquisitions (217) (54) ns
524 315 446 +17% 597 -12% Net investments 1,285 1,155 +11%

 

 

* Detail of adjustment items shown in the business segment information starting on page 30 of this exhibit.

 

Adjusted net operating income for the Refining & Chemicals segment:

·increased sharply to $553 million in the fourth quarter 2021, compared to $170 million in the fourth quarter 2020. The increase is linked to the very good performance of petrochemicals and the increase in European and American refining margins, despite the increase in energy costs, and

·increased 84% to $1,909 million in 2021, compared to $1,039 million in 2020, for the same reasons.

 

Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter 2021, the exclusion of the inventory valuation effect had a negative impact of $74 million on the segment’s adjusted net operating income, compared to a negative impact of $192 million in the fourth quarter 2020. In the fourth quarter 2021 the exclusion of special items had a positive impact of $23 million on the segment’s adjusted net operating income, compared to a positive impact of $326 million in the fourth quarter 2020. For the full-year 2021, the exclusion of the inventory valuation effect had a negative impact of $1,296 million on the segment’s adjusted net operating income, compared to a positive impact of $1,165 million for the full-year 2020. For the full-year 2021, the exclusion of special items had a positive impact of $191 million on the segment’s adjusted net operating income, compared to a positive impact of $1,022 million for the full-year 2020.

 

 9 

 

 

The segment’s operating cash flow before working capital changes3 excluding financial charges, except those related to leases was:

·$865 million in the fourth quarter 2021, an increase of 54% year-on-year compared to $560 million in the fourth quarter 2020, and

·$2,946 million for the full-year 2021, an increase of 19% year-on-year compared to $2,472 million for the full-year 2020,

in line with the very good performance of petrochemicals and refining margins that increased, although still low, at the end of 2021.

 

The segment’s cash flow from operations excluding financial charges, except those related to leases was:

 $2,446 million in the fourth quarter 2021, an increase of 62% compared to $1,514 million in the fourth quarter 2020, and
 $6,473 million for the full-year 2021, 2.7 times greater than $2,438 million for the full-year 2020.

 

B.5.   Marketing & Services segment

 

Petroleum product sales

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Sales in kb/d* 2021 2020 2020
1,553 1,542 1,509 +3% 1,835 -15% Total Marketing & Services sales 1,503 1,477 +2%
868 867 828 +5% 1,033 -16% Europe 826 823 -
684 675 681 +1% 801 -15% Rest of world 677 654 +4%

 

 

*  Excludes trading and bulk refining sales.

 

Petroleum product sales showed year-on-year growth of 3% in the fourth quarter 2021 and 2% for the full-year 2021, due to the improvement in the health situation and the global economic rebound. This increase reflects mainly the recovery in retail activity and, at the end of 2021, of the aviation activity.

 

Results

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 in millions of dollars 2021 2020 2020
21,854 21,554 16,393 x1.3 21,379 +2.2% External sales 80,288 63,451 x1.3
543 676 507 +7% 475 +14% Operating income 2,359 1,441 x1.6
83 2 (9) ns 15 x5.5 Net income (loss) from equity affiliates and other items 108 37 x2.9
(164) (222) (169) ns (100) ns Tax on net operating income (738) (515) ns
462 456 329 +40% 390 +18% Net operating income 1,729 963 +80%
17 (18) 3 x5.7 84 -80% Adjustments affecting net operating income (111) 261 ns
479 438 332 +44% 474 +1% Adjusted net operating income* 1,618 1,224 +32%
587 185 392 +50% 471 +25% Organic investments 1,074 814 +32%
(125) 23 82 ns 40 ns Net acquisitions (151) 86 ns
462 208 474 -3% 511 -10% Net investments 923 900 +3%

 

 

*Detail of adjustment items shown in the business segment information starting on page 30 of this exhibit.

 

Adjusted net operating income for the Marketing & Services segment was:

 

 $479 million in the fourth quarter 2021, an increase of 44% compared to $332 million in fourth quarter 2020, and

 

 $1,618 million for the full-year 2021, an increase of 32% compared to $1,224 million for the full-year 2020.

 

Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter 2021, the exclusion of the inventory valuation effect had a negative impact of $47 million on the segment’s adjusted net operating income, compared to a negative impact of $32 million in the fourth quarter 2020. In the fourth quarter 2021, the exclusion of special items had a positive impact of $64 million on the segment’s adjusted net operating income, compared to a positive impact of $35 million in the fourth quarter 2020. For the full-year 2021, the exclusion of the inventory valuation effect had a negative impact of $236 million on the segment’s adjusted net operating income, compared to a positive impact of $137

 

 

3 Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.

 

 10 

 

 

million for the full-year 2020. For the full-year 2021, the exclusion of special items had a positive impact of $125 million on the segment’s adjusted net operating income, compared to a positive impact of $124 million for the full-year 2020.

 

The segment’s operating cash flow before working capital changes3 excluding financial charges, except those related to leases was:

 

 $694 million in the fourth quarter 2021, an increase of 22% compared to $569 million in the fourth quarter 2020, and

 

 $2,556 million for the full-year 2021, an increase of 17% compared to $2,180 million for the full-year 2020.

 

These results are back to levels comparable to those of the pre-crisis period, despite a 19% drop in sales in 2021 compared to 2019 (most of which is linked to the strategy to arbitrage low margin sales).

 

The segment’s cash flow from operations excluding financial charges, except those related to leases was:

 $386 million in the fourth quarter 2021, a decrease of 40% compared to $648 million in the fourth quarter 2020, and

 

 $2,333 million for the full-year 2021, an increase of 11% compared to $2,101 million for the full-year 2020.

 

C.TOTALENERGIES RESULTS

 

Net income (TotalEnergies share)

 

In the fourth quarter 2021, net income (TotalEnergies share) was $5,837 million, 6.6 times greater than $891 million in the fourth quarter 2020. For the full-year 2021, net income (TotalEnergies share) was $16,032 million, compared to -$7,242 million for the full-year 2020.

 

Adjusted net income (TotalEnergies share) was:

 $6,825 million in the fourth quarter 2021, 5.2 times greater than $1,304 million in the fourth quarter 2020, due to higher oil and gas prices,

 $18,060 million for the full-year 2021, 4.4 times greater than $4,059 million for the full-year 2020, for the same reason.

 

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value4.

 

Total adjustments affecting net income5 were:

·-$988 million in the fourth quarter 2021, mainly comprised of -$670 million for impairments, including -$305 million for the withdrawal of TotalEnergies from Myanmar and -$170 million for the loss on the sale of TotalEnergies' interest in Yucal Placer in Venezuela,

·-$2,028 million for the full-year 2021, comprised of the elements above as well as notably the -$1,379 million loss on the sale of TotalEnergies' stake in Petrocedeño S.A. to Corporation Venezolana de Petróleos (CVP), an affiliate of Petróleos de Venezuela (PDVSA) in Venezuela and the -$177 million loss on the Utica sale in the United States, the -$89 million impairment related to the end of the Qatargas 1 contract, restructuring charges related to the voluntary departure plan in France and Belgium, and a positive inventory effect of $1,495 million for the year.

 

Fully-diluted shares

 

As of December 31, 2021, the number of fully-diluted shares was 2,626 million.

 

Share repurchase

 

As part of its shareholder return policy, TotalEnergies repurchased 30.7 million shares for cancellation in the fourth quarter 2021 for $1.5 billion.

 

 

4 Details shown on page 18 of this exhibit.

5 Details shown on pages 18 and 30 et seq. of this exhibit.

 

 11 

 

 

Acquisitions - Asset sales

 

Acquisitions were:

·$288 million in the fourth quarter 2021, including the acquisition of Blue Raven Solar by SunPower in the United States,

·$3,284 million in 2021, including the acquisition above as well as notably the acquisition of a 20% interest for $2 billion in Adani Green Energy Limited, the renewable project developer in India, the acquisition of Fonroche Biogaz in France, the interest in the Yunlin wind project in Taiwan and the 10% increase in the interest in the Lapa block in Brazil.

 

Asset sales were:

·$684 million in the fourth quarter 2021, including the sale of TotalEnergies' interests in 7 mature non-operated offshore fields and the Cap Lopez oil terminal in Gabon and the sale of a 30% interest in TRAPIL in France,

·$2,652 million in 2021, including the elements above as well as the payment by GIP of more than $750 million as part of the tolling agreement for the infrastructure of the Gladstone LNG project in Australia, 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% stake in onshore block OML 17 in Nigeria, the price supplement related to the sale of Block CA1 in Brunei, the sale of the Lindsey refinery in the United Kingdom, the sale of interests in the TBG pipeline in Brazil, the sale of shares in Clean Energy Fuels Corp. (Nasdaq: CLNE) and the sale of interests in Tellurian Inc. (Nasdaq: TELL) in the United States.

 

Cash flow

 

TotalEnergies’ cash flow from operating activities was:

 $11,621 million in the fourth quarter 2021, 2 times greater than $5,674 million in the fourth quarter 2020, and

 $30,410 million for the full-year 2021, 2.1 times greater than $14,803 million for the full-year 2020.

 

Cash flow from operations of $11,621 million in the fourth quarter 2021, compared to operating cash flow before working capital changes6 of $9,361 million, was positively impacted by a decrease in working capital requirements of $2.7 billion, which was driven by an increase in tax liabilities and by a reduction in net receivables, and negatively impacted by variations in margin calls, related to hedging mechanisms in a context of high volatility in the gas and electricity markets.

 

The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sales (effective first quarter 2020) and including organic loan repayment from equity affiliates was a decrease of $2,259 million in the fourth quarter 2021, compared to a decrease of $1,176 million in the fourth quarter 2020.

 

In the fourth quarter 2021, the change in working capital was a decrease of $2,232 million in accordance with IFRS. The difference of $27 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $85 million, (ii) plus the mark-to-market effect of iGRP’s contracts of $359 million, (iii) less the capital gains from renewables project sale of $19 million and (iv) less the organic loan repayments from equity affiliates of $398 million.

 

The change in working capital as determined using the replacement cost method excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sales (effective first quarter 2020) and including organic loan repayment from equity affiliates was a decrease of $1,269 million for the full-year 2021, compared to an increase of $894 million for the full-year 2020.

 

For the full-year 2021, the change in working capital was an increase of $616 million in accordance with IFRS. The difference of $1,885 million between IFRS and replacement cost method corresponds to the following adjustments: (i) the pre-tax inventory valuation effect of $1,796 million, (ii) plus the mark-to-market effect of iGRP’s contracts of $804 million, (iii) less the capital gains from renewables project sale of $89 million and (iv) less the organic loan repayments from equity affiliates of $626 million.

 

 

6 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). For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 19 of this exhibit.

 

 12 

 

 

Operating cash flow before working capital changes6 totaled:

 $9,361 million in the fourth quarter 2021, 2.1 times greater than $4,498 million in the fourth quarter 2020, and

 $29,140 million for the full-year 2021, an increase of 86% compared to $15,697 million for the full-year 2020.

 

Operating cash flow before working capital changes without financial charges (DACF)7 totaled:

 

 $9,759 million in the fourth quarter 2021, an increase of 98% compared to $4,933 million in the fourth quarter 2020, and

 $30,660 million for the full-year 2021, an increase of 74% compared to $17,635 million for the full-year 2020.

 

TotalEnergies’ net cash flow8 totaled:

·$5,076 million in the fourth quarter 2021 compared to -$33 million a year earlier, reflecting the $4.9 billion increase in operating cash flow before working capital changes6 and the $246 million decrease in net investments9 to $4,285 million in the fourth quarter 2021, and

·$15,833 million in 2021 compared to $2,708 million in 2020, reflecting the $13.4 billion increase in operating cash flow before working capital changes6 and a $318 million increase in net investments9 to $13,307 million in 2021.

 

D. PROFITABILITY

 

Return on equity was 16.9% for the twelve months ended December 31, 2021.

 

  01/01/2021- 10/01/2020- 01/01/2020-
in millions of dollars   12/31/2021 09/30/2021 12/31/2020
Adjusted net income 18,391 12,827 4,067
Average adjusted shareholders' equity 108,504 106,794 110,643
Return on equity (ROE) 16.9% 12.0% 3.7%

 

Return on average capital employed was 13.9% for the twelve months ended December 31, 2021.

 

  01/01/2021- 10/01/2020- 01/01/2020-
in millions of dollars   12/31/2021 09/30/2021 12/31/2020
Adjusted net operating income 19,766 14,237 5,806
Average capital employed 142,215 142,180 145,723
ROACE 13.9% 10.0% 4.0%

 

E. 2022 SENSITIVITIES*

 

      Estimated
    Estimated impact impact on cash
    on adjusted net flow from
  Change operating income operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids price** +/- 10$/b +/- 2.7 B$ +/- 3.2 B$
European gas price – NBP +/- 10 $/Mbtu +/- 3.0 B$ +/- 3.0 B$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$

 

 

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about TotalEnergies’ portfolio in 2022. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed on page 21.

** In a 60 $/b Brent environment.

 

 

7 DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.

8 Net cash flow = cash flow from operating activities before changes in working capital at replacement cost - net investments (including other transactions with non-controlling interests).

9 Net investments = organic investments + net acquisitions (see “Investments – Divestments” on page 19).

 

 13 

 

 

F. SUMMARY AND OUTLOOK

 

The prices of oil rose above $90/b for the first time since 2014 at the beginning of 2022. This increase in price is driven by the global demand recovery and OPEC+ discipline in a context of constrained supply, given the low level of investment in hydrocarbons since 2015. It is exacerbated in the short term by low oil inventories. Prices could therefore remain at high levels, depending on the mobilization of OPEC+ production and the growth of unconventional oil production in the United States.

 

After reaching all-time highs in the fourth quarter 2021, gas prices have remained very high in Europe and Asia since the beginning of 2022, driven by geopolitical uncertainties in Europe despite a mild winter season. In this context, futures markets anticipate gas prices that may remain above $20/Mbtu in 2022.

 

TotalEnergies anticipates 2022 hydrocarbon production growth of around 2%, driven by the start-ups of Mero 1 in Brazil and Ikike in Nigeria, the entry into the Atapu and Sépia PSCs in Brazil effective May 2022 but impacted by the sales of mature assets completed in 2021 as well as the exit from Myanmar effective July 2022.

 

Continuing the momentum that has been underway for several years, TotalEnergies is implementing its strategy of integrated growth in LNG, which is expected to generate structural cash flow growth in 2022. In addition, given the evolution of oil and gas prices in recent months and the lag effect on price formulas, TotalEnergies anticipates that its average LNG selling price should remain at a high level of at least $12/Mbtu in the first half of 2022.

 

In Renewables & Electricity, TotalEnergies plans to have more than 16 GW of renewable gross capacity in operation by year-end 2022. Electricity generation is expected to increase by more than 25% in 2022. To implement its profitable growth strategy in the electricity value chain, TotalEnergies expects to allocate, in 2022, $3.5 billion of net investments to Renewables & Electricity, or 25% of its net investments10.

 

Downstream will continue to strengthen its industrial competitiveness and invest in petrochemicals and in new markets, such as biofuels and electric mobility.

 

Confident in its ability to transform itself into a sustainable multi-energy company and increase the return to shareholders, TotalEnergies confirms its cash flow allocation priorities: investing in profitable projects to implement its transformation strategy, linking dividend growth to structural cash flow growth, maintaining a strong balance sheet and a long-term debt rating with a minimum "A" level by anchoring gearing11 below 20%, and allocating a share of the surplus cash flow from high hydrocarbon prices to share buybacks.

 

In accordance with this policy, TotalEnergies expects net investments of $14-15 billion in 2022, of which 50% will be allocated to growth and 50% to maintaining the base of its activity.

 

 

10 Net investments = organic investments + net acquisitions.

11 Gearing = net debt / (net debt +shareholders equity TotalEnergies share + non-controlling interests); excludes leases receivables and leases debts. See “Gearing Ratio” on page 20.

 

 14 

 

 

FORWARD-LOOKING STATEMENTS

 

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.

 

Except for its ongoing obligations to disclose material information as required by applicable securities laws, TotalEnergies does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.

 

For additional factors, you should read the information set forth under “Item 3. -3.2 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TotalEnergies’ Form 20-F for the year ended December 31, 2020.

 

 15 

 

 

 

OPERATING INFORMATION BY SEGMENT

 

TotalEnergies’ production (Exploration & Production + iGRP)

 

      4Q21   4Q21       2021
      vs   vs Combined liquids and gas      vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 production by region (kboe/d) 2021 2020 2020
1,063 989 1,059 - 1,102 -4% Europe and Central Asia 1,022 1,039 -2%
508 537 566 -10% 703 -28% Africa 532 629 -15%
682 681 598 +14% 701 -3% Middle East and North Africa 667 624 +7%
363 372 382 -5% 368 -1% Americas 372 353 +5%
235 235 236 - 239 -2% Asia-Pacific 226 226 -
2,852 2,814 2,841 - 3,113 -8% Total production 2,819 2,871 -2%
739 711 727 +2% 768 -4% includes equity affiliates 732 712 +3%

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Liquids production by region (kb/d) 2021 2020 2020
378 362 378 - 373 +1% Europe and Central Asia 366 380 -4%
379 401 427 -11% 560 -32% Africa 398 488 -18%
534 530 454 +18% 560 -5% Middle East and North Africa 516 474 +9%
174 179 181 -4% 171 +2% Americas 179 158 +13%
45 45 43 +3% 50 -11% Asia-Pacific 40 43 -7%
1,509 1,517 1,483 +2% 1,714 -12% Total production 1,500 1,543 -3%
205 205 200 +2% 212 -4% includes equity affiliates 206 202 +2%

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Gas production by region (Mcf/d) 2021 2020 2020
3,683 3,366 3,666 - 3,887 -5% Europe and Central Asia 3,524 3,547 -1%
664 689 701 -5% 686 -3% Africa 681 717 -5%
825 838 809 +2% 792 +4% Middle East and North Africa 838 835 -
1,064 1,086 1,126 -6% 1,109 -4% Americas 1,086 1,095 -1%
1,092 1,091 1,104 -1% 1,089 - Asia-Pacific 1,074 1,052 +2%
7,328 7,070 7,406 -1% 7,563 -3% Total production 7,203 7,246 -1%
2,889 2,730 2,851 +1% 2,961 -2% includes equity affiliates 2,842 2,748 +3%

 

Downstream (Refining & Chemicals and Marketing & Services)

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Petroleum product sales by region (kb/d) 2021 2020 2020
1,668 1,579 1,651 +1% 1,993 -16% Europe 1,582 1,586 -
780 693 628 +24% 737 +6% Africa 701 579 +21%
817 811 794 +3% 763 +7% Americas 800 773 +3%
526 486 547 -4% 526 - Rest of world 500 471 +6%
3,791 3,568 3,619 +5% 4,019 -6% Total consolidated sales 3,581 3,410 +5%
437 360 458 -5% 508 -14% Includes bulk sales 383 434 -12%
1,801 1,666 1,652 +9% 1,676 +7% Includes trading 1,696 1,498 +13%

 

      4Q21   4Q21       2021
      vs   vs       vs
4Q21 3Q21 4Q20 4Q20 4Q19 4Q19 Petrochemicals production* (kt) 2021 2020 2020
1,249 1,308 1,381 -10% 1,253 - Europe 5,069 5,202 -3%
689 705 662 +4% 630 +9% Americas 2,629 2,475 +6%
753 802 735 +2% 717 +5% Middle-East and Asia 3,014 2,775 +9%

 

 

* Olefins, polymers

 

 16 

 

 

Renewables

 

  4Q21 4Q20
Installed power                    
generation gross   Onshore Offshore       Onshore Onshore    
capacity (GW)1,2 Solar Wind Wind Other Total Solar Wind Wind Other Total
France 0.6 0.5  0.0  0.1 1.2  0.4  0.5  0.0  0.1 1.0
Rest of Europe 0.2 1.0  0.0  0.1 1.3  0.1  0.8 0.0  0.1 1.0
Africa 0.1 0.0  0.0  0.0 0.1  0.1  0.0  0.0  0.0 0.1
Middle East 0.3 0.0  0.0  0.0 0.3  0.3  0.0  0.0  0.0 0.3
North America 0.9 0.0  0.0  0.0 0.9  0.6  0.0  0.0  0.0 0.6
South America 0.4 0.3  0.0  0.0 0.7  0.2  0.1  0.0  0.0 0.2
India 4.5 0.2  0.0  0.0 4.7  3.3  0.0  0.0  0.0 3.3
Asia-Pacific 1.0 0.0  0.0  0.0 1.0  0.5  0.0  0.0  0.0 0.5
Total 8.0 2.0  0.0  0.2 10.3  5.6  1.3 0.0  0.1 7.0

 

  4Q21 4Q20
Power generation gross                    
capacity from                    
renewables in   Onshore Offshore       Onshore Offshore    
construction (GW)1,2 Solar Wind Wind Other Total Solar Wind Wind Other Total
France 0.2 0.2  0.0  0.1 0.4  0.3  0.0  0.0  0.0 0.3
Rest of Europe 0.0 0.1  1.1  0.0 1.2  0.1  0.3 1.1  0.0 1.5
Africa 0.0 0.0  0.0  0.0 0.0  0.0  0.0  0.0  0.0 0.0
Middle East 0.8 0.0  0.0  0.0 0.8  0.8  0.0  0.0  0.0 0.8
North America 1.5 0.0  0.0  0.0 1.5  0.0  0.0  0.0  0.0 0.1
South America 0.0 0.0  0.0  0.0 0.0  0.2  0.3  0.0  0.0 0.4
India 1.2 0.4  0.0  0.0 1.6  0.5  0.0  0.0  0.0 0.5
Asia-Pacific 0.3 0.0  0.6  0.0 1.0  0.5  0.0  0.0  0.0 0.5
Total 4.0 0.6  1.7  0.1 6.5  2.3  0.6 1.1  0.1 4.1

 

  4Q21 4Q20
Power generation gross                    
capacity from                    
renewables in   Onshore Offshore       Onshore Offshore    
development (GW)1,2 Solar Wind Wind Other Total Solar Wind Wind Other Total
France 3.1 0.8 0.0 0.0 3.9 3.5 1.0 0.0 0.1 4.6
Rest of Europe 5.2 0.3 2.3 0.0 7.8 5.1 0.3 0.4 0.0 5.7
Africa 0.4 0.0 0.0 0.1 0.5 0.1 0.1 0.0 0.0 0.2
Middle East 1.6 0.0 0.0 0.0 1.6 0.1 0.0 0.0 0.0 0.1
North America 2.3 0.1 0.0 0.7 3.1 0.6 0.3 0.0 0.0 0.9
South America 0.6 0.4 0.0 0.1 1.2 0.5 0.3 0.0 0.0 0.9
India 4.4 0.1 0.0 0.0 4.5 1.6 0.0 0.0 0.0 1.6
Asia-Pacific 1.2 0.0 2.1 0.1 3.5 0.9 0.0 0.0 0.0 0.9
Total 18.9 1.7 4.4 1.1 26.2 12.5 2.0 0.4 0.1 15.0

 

 

1 Includes 20% of gross capacity of Adani Green Energy Limited effective first quarter 2021.

2 End-of-period data.

 

  In operation In construction In development
Gross renewables
capacity covered by
PPA at 31
December 2021
(GW)
                            
   Onshore       Onshore Offshore       Onshore Offshore    
 Solar Wind Other Total Solar Wind Wind Other Total Solar Wind Wind Other Total
Europe  0.8  1.5 X  2.5 X 0.2  0.8 X  1.2  4.0  0.3 X X  4.3
Asia  5.7 X X  5.9  2.4  0.4  0.6  —  3.4  6.2 X  —  X  6.4
North America  0.8 X X  0.9  1.5 X  — X  1.5  X   — X  X
Rest of World  0.6 0.3 X  0.9 X X  — X X  0.5 X  — X  0.7
Total  8.0 2.0 X  10.2  4.0  0.6  1.4 X  6.2  10.8  0.5 X  0.3  11.6

 

“X” means not specified, capacity < 0.2 GW.

 

 17 

 

 

  In operation In construction In development

PPA average price
at

31 December 2021

($/MWh)

                            
   Onshore       Onshore Offshore       Onshore Offshore    
 Solar Wind Other Total Solar Wind Wind Other Total Solar Wind Wind Other Total
Europe  196  118 X  143  X 66  64 X  66  42  96 X X  46
Asia  80 X X  80  40  50  214  —  72  38 X  — X  38
North America  153 X X  156  28 X  — X  28  X  —  — X X
Rest of World  80 54 X  72 X X  — X X  77 X  — X 77
Total  99  103 X  100  37  63  116 X  61  42  81 X  144  44

 

“X” means not specified, PPA relating to a capacity < 0.2 GW

 

ADJUSTMENT ITEMS TO NET INCOME (TOTALENERGIES SHARE)

 

4Q213Q214Q204Q19 in millions of dollars 20212020
(1,074)(325)(683)(666) Special items affecting net income (TotalEnergies share) (3,329)(10,044)
(170)(177)104-  Gain (loss) on asset sales (1,726)104
6(43)(194)(5)  Restructuring charges (308)(364)
(670)(47)(71)(248)  Impairments (910)(8,465)
(240)(58)(522)(413)  Other (385)(1,319)
11132022457 After-tax inventory effect: FIFO vs. replacement cost 1,495(1,280)
(25)(119)4644 Effect of changes in fair value (194)23
(988)(124)(413)(565) Total adjustments affecting net income (2,028)(11,301)

 

RECONCILIATION OF ADJUSTED EBITDA WITH CONSOLIDATED FINANCIAL STATEMENTS

 

Reconciliation of net income (TotalEnergies share) to adjusted EBITDA

 

   4Q21 vs   4Q21 vs       2021 vs  
4Q213Q214Q204Q204Q194Q19 in millions of dollars 202120202020
5,8374,645891x6.62,600x2.2 Net income - TotalEnergies share 16,032(7,242)ns
988124413x2.4565+75% Less: adjustment items to net income (TotalEnergies share) 2,02811,301-82%
6,8254,7691,304x5.23,165x2.2 Adjusted net income - TotalEnergies share 18,0604,059x4.4
       Adjusted items    
7910536x2.268+16% Add: non-controlling interests 3318x41.4
3,6062,674135x26.71,329x2.7 Add: income taxes 9,2111,309x7
3,2783,1723,172+3%3,761-13% Add: depreciation, depletion and impairment of tangible assets and mineral interests 12,73513,312-4%
1198596+24%74+61% Add: amortization and impairment of intangible assets 401352+14%
483454497-3%603-20% Add: financial interest on debt 1,9042,140-11%
(105)(79)(32)ns(51)ns Less: financial income and expense from cash & cash equivalents (340)(68)ns
14,28511,1805,208x2.78,949+60% Adjusted EBITDA 42,30221,112x2

 

 18 

 

 

INVESTMENTS – DIVESTMENTS

 

   4Q21 4Q21   2021
4Q213Q214Q20vs4Q19vsIn millions of dollars20212020vs
   4Q20 4Q19   2020
4,6812,8133,432+36%4,291+9%Organic investments ( a )12,67510,339+23%
182172214-15%136+34%Capitalized exploration841659+28%
348211355-2%319+9%Increase in non-current loans1,2311,657-26%
(234)(112)(212)ns(102)nsRepayment of non-current loans, excluding organic loan repayment from equity affiliates(531)(717)ns
(52)1(46)ns-nsChange in debt from renewable projects (TotalEnergies share)(222)(209)ns
2881261,538-81%277+4%Acquisitions ( b )3,2844,189-22%
6841,084439+56%357+92%Asset sales ( c )2,6521,539+72%
34(5)15x2,3-nsChange in debt from renewable projects (partner share)134105+28%
(396)(958)1,099ns(80)nsNet acquisitions6322 650-76%
4,2851,8554,531-5%4,211+2%Net investments ( a + b - c )13,30712,989+2%
-757-ns(11)-100%Other transactions with non-controlling interests ( d )757-ns
(398)(120)(77)ns(275)nsOrganic loan repayment from equity affiliates ( e )(626)(111)ns
86(6)61+41%-nsChange in debt from renewable projects financing * ( f )356314+13%
343039-13%-nsCapex linked to capitalized leasing contracts ( g )111113-2%
27--ns-nsExpenditures related to carbon credit ( h )27-ns
3,9122,4564,476-13%3,925-

Cash flow used in investing activities

( a + b - c + d + e + f – g - h )

13,65613,079+4%

 

 

 

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

 

CASH FLOW

 

   4Q21 4Q21   2021
4Q213Q214Q20vs4Q19vsIn millions of dollars20212020vs
   4Q20 4Q19   2020
9,7598,3904,933+98%7,326+33%Operating cash flow before working capital changes
w/o financial charges (DACF)
30,66017,635+74%
(398)(330)(436)ns(533)nsFinancial charges(1,520)(1,938)ns
9,3618,0604,498x2.16,793+38%Operating cash flow before working capital changes ( a ) *29,14015,697+86%
2,591(2,662)976x2.792x28.2(Increase) decrease in working capital **188753-75%
85365308-72%(11)nsInventory effect1,796(1,440)ns
(19)(3)(32)ns-nsCapital gain from renewable projects sale(89)(96)ns
(398)(120)(77)ns(275)nsOrganic loan repayment from equity affiliates(626)(111)ns
11,6215,6405,674x26,599+76%Cash flow from operations30,41014,803x2.1
          
4,6812,8133,432+36%4,291+9%Organic investments ( b )12,67510,339+23%
4,6805,2471,066x4.42,502+87%Free cash flow after organic investments, w/o net asset sales ( a - b )16,4655,358x3.1
          
4,2851,8554,531-5%4,211+2%Net investments ( c )13,30712,989+2%
5,0766,205(33)ns2,582+97%Net cash flow ( a - c )15,8332,708x5.8

 

 

* 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 the sale of renewable projects (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.

 

 19 

 

 

GEARING RATIO

 

In millions of dollars 12/31/2021 09/30/2021 12/31/2020 12/31/2019 
Current borrowings(1) 13,645 15,184 15,893 13,617 
Other current financial liabilities 372 504 203 487 
Current financial assets(1)(2) (12,183) (3,821) (4,519) (3,847) 
Net financial assets classified as held for sale (4) (1) 313 301 
Non-current financial debt(1) 41,868 43,350 52,467 41,510 
Non-current financial assets(1) (1,557) (1,927) (3,762) (748) 
Cash and cash equivalents (21,342) (28,971) (31,268) (27,352) 
Net debt (a) 20,799 24,318 29,327 23,968 
Shareholders’ equity – TotalEnergies share 111,736 110,016 103,702 116,778 
Non-controlling interests 3,263 3,211 2,383 2,527 
Shareholders’ equity (b) 114,999 113,227 106,085 119,305 
Net-debt-to-capital ratio = a / (a+b) 15.3% 17.7% 21.7% 16.7% 
Leases (c) 8,055 7,786 7,812 7,156 
Net-debt-to-capital ratio including leases (a+c) / (a+b+c) 20.1% 22.1% 25.9% 20.7% 

 

 

(1) Excludes leases receivables and leases debts.

(2) Including initial margins held as part of TotalEnergies' activities on organized markets.

 

RETURN ON AVERAGE CAPITAL EMPLOYED

 

Twelve months ended December 31, 2021

 

  Integrated Gas,      
  Renewables & Exploration & Refining & Marketing
in millions of dollars Power Production Chemicals & Services
Adjusted net operating income 6,243 10,439 1,909 1,618
Capital employed at 12/31/2020* 45,611 78,928 11,375 8,793
Capital employed at 12/31/2021* 55,978 71,675 8,069 8,783
ROACE 12.3% 13.9% 19.6% 18.4%

 

Twelve months ended September 30, 2021

 

  Integrated      
  Gas,      
  Renewables & Exploration & Refining & Marketing
in millions of dollars Power Production Chemicals & Services
Adjusted net operating income 3,738 7,982 1,526 1,471
Capital employed at 9/30/2020* 43,799 78,548 11,951 8,211
Capital employed at 9/30/2021* 52,401 75,499 9,156 8,281
ROACE 7.8% 10.4% 14.5% 17.8%

 

Twelve months ended December 31, 2020

 

  Integrated Gas,       
  Renewables &  Exploration &  Refining &  Marketing & 
in millions of dollars Power Production Chemicals Services
Adjusted net operating income 1,778 2,363 1,039 1,224
Capital employed at 12/31/2019* 41,549 88,844 12,228 8,371
Capital employed at 12/31/2020* 45,611 78,928 11,375 8,793
ROACE 4.1% 2.8% 8.8% 14.3%

 

 

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

 

 20 

 

 

MAIN INDICATORS

 

  4Q213Q212Q211Q214Q20
/$ 1.141.181.211.201.19
Brent($/b)79.873.569.061.144.2
Average liquids price*($/b)72.667.162.956.441.0
Average gas price* (1)($/Mbtu)11.386.334.434.063.31
Average LNG price** (1)($/Mbtu)13.129.106.596.084.90
Variable Cost Margin, European refining***($/t)16.78.810.25.34.6

 

 

* Sales in $ / sales in volume for consolidated affiliates (excluding stock value variation).

** Sales in $ / sales in volume for consolidated and equity affiliates (excluding stock value variation).

(1) Does not take into account gas and LNG trading activities, which results are expected to be significantly higher compared to the third quarter 2021, capturing optimization opportunities generated by large LNG trading portfolio in the prevailing high gas spot price environment.

*** This indicator represents the average margin on variable costs realized by TotalEnergies’ European refining business (equal to the difference between the sales of refined products realized by TotalEnergies’ European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons). Data restated in 2Q21 environment for energy costs were 35.7 $/t in 4Q21 and 20.5 $/t in 3Q21.

 

Disclaimer: Data is based on TotalEnergies’ reporting and is not audited.

 

 21 

 

 

CONSOLIDATED STATEMENT OF INCOME

 

TotalEnergies

 

(unaudited)

 

 4th quarter3rd quarter4th quarter 
(M$) (a)202120212020 
     
Sales60,34854,72937,943 
Excise taxes(5,050)(5,659)(5,595) 
Revenues from sales55,29849,07032,348 
     
Purchases, net of inventory variation(36,161)(32,344)(20,508) 
Other operating expenses(6,680)(6,617)(6,663) 
Exploration costs(323)(127)(338) 
Depreciation, depletion and impairment of tangible assets and mineral interests(3,919)(3,191)(3,543) 
Other income536195838 
Other expense(755)(605)(697) 
     
Financial interest on debt(483)(454)(501) 
Financial income and expense from cash & cash equivalents1208753 
Cost of net debt(363)(367)(448) 
     
Other financial income195193173 
Other financial expense(138)(140)(183) 
     
Net income (loss) from equity affiliates1,8601,37773 
     
Income taxes(3,647)(2,692)(149) 
Consolidated net income5,9034,752903 
TotalEnergies share5,8374,645891 
Non-controlling interests6610712 
Earnings per share ($)2.191.720.31 
Fully-diluted earnings per share ($)2.171.710.31 

(a) Except for per share amounts. 

 

 22 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

TotalEnergies

 

(unaudited)

 

 4th quarter3rd quarter4th quarter
(M$)202120212020
Consolidated net income5,9034,752903
    
Other comprehensive income   
    
Actuarial gains and losses589(3)17
Change in fair value of investments in equity instruments93(95)386
Tax effect(262)5(21)
Currency translation adjustment generated by the parent company(1,900)(2,368)4,074
Items not potentially reclassifiable to profit and loss(1,480)(2,461)4,456
Currency translation adjustment1,1791,260(1,875)
Cash flow hedge(226)424617
Variation of foreign currency basis spread42(7)
Share of other comprehensive income of equity affiliates, net amount71184(100)
Other(2)1(4)
Tax effect22(100)(180)
Items potentially reclassifiable to profit and loss1,0481,771(1,549)
Total other comprehensive income (net amount)(432)(690)2,907
    
    
Comprehensive income5,4714,0623,810
TotalEnergies share5,3904,0143,576
Non-controlling interests8148234

 

 23 

 

 

CONSOLIDATED STATEMENT OF INCOME

 

TotalEnergies

 

 

 

 YearYear
 20212020
 (unaudited) 
(M$) (a) 
 
  
Sales205,863140,685
Excise taxes(21,229)(20,981)
Revenues from sales184,634119,704
   
Purchases, net of inventory variation(118,622)(77,486)
Other operating expenses(26,894)(25,538)
Exploration costs(740)(731)
Depreciation, depletion and impairment of tangible assets and mineral interests(13,556)(22,264)
Other income1,3122,237
Other expense(2,317)(1,506)
   
Financial interest on debt(1,904)(2,147)
Financial income and expense from cash & cash equivalents37937
Cost of net debt(1,525)(2,110)
   
Other financial income762914
Other financial expense(539)(690)
   
Net income (loss) from equity affiliates3,438452
   
Income taxes(9,587)(318)
Consolidated net income16,366(7,336)
TotalEnergies share16,032(7,242)
Non-controlling interests334(94)
Earnings per share ($)5.95(2.90)
Fully-diluted earnings per share ($)5.92(2.90)

(a) Except for per share amounts.

 

 24 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

TotalEnergies

 

 

 

 

 

 

 YearYear
 20212020
 (unaudited) 
(M$)  
Consolidated net income16,366(7,336)
   
Other comprehensive income  
   
Actuarial gains and losses1,035(212)
Change in fair value of investments in equity instruments66533
Tax effect(411)65
Currency translation adjustment generated by the parent company(7,202)7,541
Items not potentially reclassifiable to profit and loss(6,512)7,927
Currency translation adjustment4,216(4,645)
Cash flow hedge278(313)
Variation of foreign currency basis spread228
Share of other comprehensive income of equity affiliates, net amount706(1,831)
Other(1)(8)
Tax effect(135)72
Items potentially reclassifiable to profit and loss5,066(6,697)
Total other comprehensive income (net amount)(1,446)1,230
   
Comprehensive income14,920(6,106)
TotalEnergies share14,616(6,312)
Non-controlling interests304206

 

 25 

 

 

CONSOLIDATED BALANCE SHEET

 

TotalEnergies

 

 

 

 

 

 

 

December 31,September 30,December 31,
 202120212020
(M$)(unaudited)(unaudited) 
    
ASSETS   
    
Non-current assets   
Intangible assets, net32,48432,89533,528
Property, plant and equipment, net106,559105,902108,335
Equity affiliates : investments and loans31,05330,46727,976
Other investments1,6251,6882,007
Non-current financial assets2,4042,7994,781
Deferred income taxes5,4006,4527,016
Other non-current assets2,7972,5302,810
Total non-current assets182,322182,733186,453
    
Current assets   
Inventories, net19,95219,60114,730
Accounts receivable, net21,98319,86514,068
Other current assets35,14439,96713,428
Current financial assets12,3153,9104,630
Cash and cash equivalents21,34228,97131,268
Assets classified as held for sale4006331,555
Total current assets111,136112,94779,679
Total assets293,458295,680266,132
    
LIABILITIES & SHAREHOLDERS' EQUITY   
    
Shareholders' equity   
Common shares8,2248,2248,267
Paid-in surplus and retained earnings117,849113,795107,078
Currency translation adjustment(12,671)(11,995)(10,256)
Treasury shares(1,666)(8)(1,387)
Total shareholders' equity - TotalEnergies share111,736110,016103,702
Non-controlling interests3,2633,2112,383
Total shareholders' equity114,999113,227106,085
    
Non-current liabilities   
Deferred income taxes10,90411,16110,326
Employee benefits2,6723,2183,917
Provisions and other non-current liabilities20,26920,35520,925
Non-current financial debt49,51250,81060,203
Total non-current liabilities83,35785,54495,371
    
Current liabilities   
Accounts payable36,83734,14923,574
Other creditors and accrued liabilities42,80045,47622,465
Current borrowings15,03516,47117,099
Other current financial liabilities372504203
Liabilities directly associated with the assets classified as held for sale583091,335
Total current liabilities95,10296,90964,676
Total liabilities & shareholders' equity293,458295,680266,132

 

 26 

 

 

CONSOLIDATED STATEMENT OF CASH FLOW

 

TotalEnergies

 

(unaudited)

 

 

 

 

 

 

 4th quarter3rd quarter4th quarter
(M$)202120212020
    
CASH FLOW FROM OPERATING ACTIVITIES   
    
Consolidated net income5,9034,752903
Depreciation, depletion, amortization and impairment4,2223,3613,796
Non-current liabilities, valuation allowances and deferred taxes152479(237)
(Gains) losses on disposals of assets(184)100(260)
Undistributed affiliates' equity earnings(843)(506)379
(Increase) decrease in working capital2,232(2,698)1,342
Other changes, net139152(249)
Cash flow from operating activities11,6215,6405,674
    
CASH FLOW USED IN INVESTING ACTIVITIES   
    
Intangible assets and property, plant and equipment additions(4,540)(2,718)(3,834)
Acquisitions of subsidiaries, net of cash acquired(128)(23)(778)
Investments in equity affiliates and other securities(178)(67)(221)
Increase in non-current loans(348)(219)(355)
Total expenditures(5,194)(3,027)(5,188)
Proceeds from disposals of intangible assets and property, plant and equipment349150114
Proceeds from disposals of subsidiaries, net of cash sold364124
Proceeds from disposals of non-current investments266177186
Repayment of non-current loans631240288
Total divestments1,282571712
Cash flow used in investing activities(3,912)(2,456)(4,476)
    
CASH FLOW USED IN FINANCING ACTIVITIES   
    
Issuance (repayment) of shares:   
- Parent company shareholders---
- Treasury shares(1,658)--
Dividends paid:   
- Parent company shareholders(1,991)(2,053)(2,053)
- Non-controlling interests(20)(41)(5)
Net issuance (repayment) of perpetual subordinated notes---
Payments on perpetual subordinated notes(57)(22)(62)
Other transactions with non-controlling interests(14)721(59)
Net issuance (repayment) of non-current debt347133104
Increase (decrease) in current borrowings(3,368)(1,457)(339)
Increase (decrease) in current financial assets and liabilities(8,373)5131,212
Cash flow from (used in) financing activities(15,134)(2,206)(1,202)
Net increase (decrease) in cash and cash equivalents(7,425)978(4)
Effect of exchange rates(204)(650)679
Cash and cash equivalents at the beginning of the period28,97128,64330,593
Cash and cash equivalents at the end of the period21,34228,97131,268

 

 27 

 

 

CONSOLIDATED STATEMENT OF CASH FLOW

 

TotalEnergies

 

 

 

 

 

 

 

 

 YearYear
 20212020
 (unaudited) 
(M$)  
   
CASH FLOW FROM OPERATING ACTIVITIES  
   
Consolidated net income16,366(7,336)
Depreciation, depletion, amortization and impairment14,34322,861
Non-current liabilities, valuation allowances and deferred taxes962(1,782)
(Gains) losses on disposals of assets(454)(909)
Undistributed affiliates' equity earnings(667)948
(Increase) decrease in working capital(616)1,869
Other changes, net476(848)
Cash flow from operating activities30,41014,803
   
CASH FLOW USED IN INVESTING ACTIVITIES  
   
Intangible assets and property, plant and equipment additions(12,343)(10,764)
Acquisitions of subsidiaries, net of cash acquired(321)(966)
Investments in equity affiliates and other securities(2,678)(2,120)
Increase in non-current loans(1,247)(1,684)
Total expenditures(16,589)(15,534)
Proceeds from disposals of intangible assets and property, plant and equipment770740
Proceeds from disposals of subsidiaries, net of cash sold269282
Proceeds from disposals of non-current investments722578
Repayment of non-current loans1,172855
Total divestments2,9332,455
Cash flow used in investing activities(13,656)(13,079)
   
CASH FLOW USED IN FINANCING ACTIVITIES  
   
Issuance (repayment) of shares:  
- Parent company shareholders381374
- Treasury shares(1,823)(611)
Dividends paid:  
- Parent company shareholders(8,228)(6,688)
- Non-controlling interests(124)(184)
Net issuance (repayment) of perpetual subordinated notes3,248331
Payments on perpetual subordinated notes(313)(315)
Other transactions with non-controlling interests652(204)
Net issuance (repayment) of non-current debt(359)15,800
Increase (decrease) in current borrowings(10,856)(6,501)
Increase (decrease) in current financial assets and liabilities(8,075)(604)
Cash flow from (used in) financing activities(25,497)1,398
Net increase (decrease) in cash and cash equivalents(8,743)3,122
Effect of exchange rates(1,183)794
Cash and cash equivalents at the beginning of the period31,26827,352
Cash and cash equivalents at the end of the period21,34231,268

 

 28 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 

TotalEnergies

 

(Unaudited: Year 2021 )

  

  Common shares issued  Paid-in     Treasury shares Shareholders'       
(M$)  Number  Amount  surplus and
retained
earnings
  Currency translation
adjustment
  Number  Amount  equity -
TotalEnergies
share
  Non-
controlling
interests
 
  Total
shareholders' equity
 
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 2020  -   -   (7,242)  -   -   -   (7,242)  (94)  (7,336)
Other comprehensive income  -   -   (321)  1,251   -   -   930   300   1,230 
Comprehensive Income  -   -   (7,563)  1,251   -   -   (6,312)  206   (6,106)
Dividend  -   -   (7,899)  -   -   -   (7,899)  (234)  (8,133)
Issuance of common shares  51,242,950   144   1,470   -   -   -   1,614   -   1,614 
Purchase of treasury shares  -   -   -   -   (13,236,044)  (611)  (611)  -   (611)
Sale of treasury shares (1)  -   -   (236)  -   4,317,575   236   -   -   - 
Share-based payments  -   -   188   -   -   -   188   -   188 
Share cancellation  -   -   -   -   -   -   -   -   - 
Net issuance (repayment) of perpetual subordinated notes  -   -   331   -   -   -   331   -   331 
Payments on perpetual subordinated notes  -   -   (308)  -   -   -   (308)  -   (308)
Other operations with non-controlling interests  -   -   (61)  (4)  -   -   (65)  (117)  (182)
Other items  -   -   (14)  -   -   -   (14)  1   (13)
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 2021  -   -   16,032   -   -   -   16,032   334   16,366 
Other comprehensive Income  -   -   991   (2,407)  -   -   (1,416)  (30)  (1,446)
Comprehensive Income  -   -   17,023   (2,407)  -   -   14,616   304   14,920 
Dividend  -   -   (8,200)  -   -   -   (8,200)  (124)  (8,324)
Issuance of common shares  10,589,713   31   350   -   -   -   381   -   381 
Purchase of treasury shares  -   -   -   -   (37,306,005)  (1,823)  (1,823)  -   (1,823)
Sale of treasury shares (1)  -   -   (216)  -   4,573,195   216   -   -   - 
Share-based payments  -   -   143   -   -   -   143   -   143 
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  -   -   (368)  -   -   -   (368)  -   (368)
Other operations with non-controlling interests  -   -   30   (6)  -   -   24   689   713 
Other items  -   - �� 9   (2)  -   -   7   11   18 
As of December 31, 2021  2,640,429,329   8,224   117,849   (12,671)  (33,841,104)  (1,666)  111,736   3,263   114,999 

 

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

 29 

 

 

 

BUSINESS SEGMENT INFORMATION

 

TotalEnergies

 

(unaudited)

 

 

 

 

 

4th quarter 2021 Integrated Gas, Exploration Refining Marketing       
(M$) Renewables & & & Corporate Intercompany Total 
  & Power Production Chemicals Services       
External sales 11,634 2,068 24,781 21,854 11 - 60,348 
Intersegment sales 1,466 11,875 8,716 155 148 (22,360)- 
Excise taxes - - (238)(4,812)- - (5,050)
Revenues from sales 13,100 13,943 33,259 17,197 159 (22,360)55,298 
Operating expenses (11,141)(5,412)(32,250)(16,347)(374)22,360 (43,164)
Depreciation, depletion and impairment of tangible assets and mineral interests (545)(2,637)(399)(307)(31)- (3,919)
Operating income 1,414 5,894 610 543 (246)- 8,215 
Net income (loss) from equity affiliates and other items 1,281 74 228 83 32 - 1,698 
Tax on net operating income (237)(3,124)(234)(164)75 - (3,684)
Net operating income 2,458 2,844 604 462 (139)- 6,229 
Net cost of net debt             (326)
Non-controlling interests             (66)
Net income - TotalEnergies share             5,837 

 

 

 

  

4th quarter 2021 (adjustments) (a)
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate  Intercompany  Total  
External sales - - - - - - - 
Intersegment sales - - - - - - - 
Excise taxes - - - - - - - 
Revenues from sales - - - - - - - 
Operating expenses (57)(132)38 21 - - (130)
Depreciation, depletion and impairment of tangible assets and mineral interests (187)(418)- (36- - (641)
Operating income (b) (244)(550)38 (15- - (771)
Net income (loss) from equity affiliates and other items (116)(111)23 (6)6 - (204)
Tax on net operating income 59 (20)(10)4 (69)- (36)
Net operating income (b) (301)(681)51 (17)(63)- (1,011)
Net cost of net debt             10 
Non-controlling interests             13 
Net income - TotalEnergies share             (988)

 

 (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 - - 32 53 -     
On net operating income - - 74 47 -     

 

 

 

 

4th quarter 2021 (adjusted)
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate  Intercompany  Total 
External sales 11,634 2,068 24,781 21,854 11 - 60,348 
Intersegment sales 1,466 11,875 8,716 155 148 (22,360)- 
Excise taxes - - (238)(4,812)- - (5,050)
Revenues from sales 13,100 13,943 33,259 17,197 159 (22,360)55,298 
Operating expenses (11,084)(5,280)(32,288)(16,368)(374)22,360 (43,034)
Depreciation, depletion and impairment of tangible assets and mineral interests (358)(2,219)(399)(271)(31)- (3,278)
Adjusted operating income 1,658 6,444 572 558 (246)- 8,986 
Net income (loss) from equity affiliates and other items 1,397 185 205 89 26 - 1,902 
Tax on net operating income (296)(3,104)(224)(168)144 - (3,648)
Adjusted net operating income 2,759 3,525 553 479 (76)- 7,240 
Net cost of net debt             (336)
Non-controlling interests             (79)
Adjusted net income - TotalEnergies share             6,825 

 

 

 

4th quarter 2021
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate  Intercompany  Total 
Total expenditures 1,471 2,327 723 643 30 - 5,194 
Total divestments 540 357 202 181 2 - 1,282 
Cash flow from operating activities (57)8,624 2,446 386 222 - 11,621 

 

 

 

 30 

 

 

BUSINESS SEGMENT INFORMATION

 

TotalEnergies

 

(unaudited)

 

 

 

3rd quarter 2021
(M$)
Integrated Gas,
Renewables
& Power

Exploration

&

Production 

Refining

&

Chemicals 

Marketing

&
Services 

CorporateIntercompanyTotal
External sales8,482 1,921 22,765 21,554 7  54,729 
Intersegment sales1,239 8,588 7,031 110 38 (17,006)- 
Excise taxes- - (240)(5,419)-  (5,659)
Revenues from sales9,721 10,509 29,556 16,245 45 (17,006)49,070 
Operating expenses(8,502)(3,958)(28,153)(15,302)(179)17,006 (39,088)
Depreciation, depletion and impairment of tangible assets and mineral interests(343)(2,156)(397)(267)(28) (3,191)
Operating income876 4,395 1,006 676 (162) 6,791 
Net income (loss) from equity affiliates and other items782 139 79 2 18  1,020 
Tax on net operating income(208)(2,007)(273)(222)23  (2,687)
Net operating income1,450 2,527 812 456 (121) 5,124 
Net cost of net debt            (372)
Non-controlling interests            (107)
Net income - TotalEnergies share            4,645 

 

  

 

3rd quarter 2021 (adjustments) (a)
(M$)
Integrated Gas,
Renewables
& Power

Exploration

&

Production 

Refining

&

Chemicals 

Marketing

&
Services 

CorporateIntercompanyTotal
External sales- - - - - - - 
Intersegment sales- - - - - - - 
Excise taxes- - - - - - - 
Revenues from sales- - - - - - - 
Operating expenses(152)(32)301 44 -     - 161 
Depreciation, depletion and impairment of tangible assets and mineral interests(7)- (12)- - - (19)
Operating income (b)(159)(32)289 44 - - 142 
Net income (loss) from equity affiliates and other items(3)(246)5 (12)2 - (254)
Tax on net operating income4 79 (84)(14)- - (15)
Net operating income (b)(158)(199)210 18 2 - (127)
Net cost of net debt            5 
Non-controlling interests            (2)
Net income - TotalEnergies share            (124)

 

 

(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- - 309 56 -     
On net operating income- - 285 41 -     

 

 

 

3rd quarter 2021 (adjusted)
(M$)
Integrated Gas,
Renewables
& Power

Exploration

&

Production 

Refining

&

Chemicals 

Marketing

&
Services 

CorporateIntercompanyTotal
External sales8,482 1,921 22,765 21,554 7  54,729 
Intersegment sales1,239 8,588 7,031 110 38 (17,006) 
Excise taxes- - (240)(5,419)  (5,659)
Revenues from sales9,721 10,509 29,556 16,245 45 (17,006)49,070 
Operating expenses(8,350)(3,926)(28,454)(15,346)(179)17,006 (39,249)
Depreciation, depletion and impairment of tangible assets and mineral interests(336)(2,156)(385)(267)(28) (3,172)
Adjusted operating income1,035 4,427 717 632 (162) 6,649 
Net income (loss) from equity affiliates and other items785 385 74 14 16  1,274 
Tax on net operating income(212)(2,086)(189)(208)23  (2,672)
Adjusted net operating income1,608 2,726 602 438 (123) 5,251 
Net cost of net debt            (377)
Non-controlling interests            (105)
Adjusted net income - TotalEnergies share            4,769 

  

 

 

3rd quarter 2021
(M$)
Integrated Gas,
Renewables
& Power

Exploration

&

Production 

Refining

&

Chemicals 

Marketing

&
Services 

CorporateIntercompanyTotal
Total expenditures683 1,754 337 239 14 - 3,027 
Total divestments358 163 17 31 2      - 571 
Cash flow from operating activities(463)4,814 799 845 (355)- 5,640 

 

 

 31 

 

 

 

BUSINESS SEGMENT INFORMATION

 

TotalEnergies

 

(unaudited)

 

  

 

 

 

4th quarter 2020
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate Intercompany Total 
External sales 5,231 1,257 15,052 16,393 10 - 37,943 
Intersegment sales 628 5,574 4,160 98 140 (10,600)- 
Excise taxes - - (628)(4,967)- - (5,595)
Revenues from sales 5,859 6,831 18,584 11,524 150 (10,600)32,348 
Operating expenses (5,569)(3,489)(17,989)(10,776)(286)10,600 (27,509)
Depreciation, depletion and impairment of tangible assets and mineral interests (354)(2,500)(412)(241)(36)- (3,543)
Operating income (64)842 183 507 (172)- 1,296 
Net income (loss) from equity affiliates and other items 149 6 (54)(9)112 - 204 
Tax on net operating income 7 91 (93)(169)(72)- (236)
Net operating income 92 939 36 329 (132)- 1,264 
Net cost of net debt             (361)
Non-controlling interests             (12)
Net income - TotalEnergies share             891 

 

 

 

 

 

4th quarter 2020 (adjustments) (a)
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate Intercompany Total 
External sales 3 - - - - - 3 
Intersegment sales - - - - - - - 
Excise taxes - - - - - - - 
Revenues from sales 3 - - - - - 3 
Operating expenses (56)(49)133 17 31 - 76 
Depreciation, depletion and impairment of tangible assets and mineral interests - (355)(16) - - (371)
Operating income (b) (53)(404)117 17 31 - (292)
Net income (loss) from equity affiliates and other items (26)(25)(191)(13)107 - (148)
Tax on net operating income (83)300 (60)(7)(157)- (7)
Net operating income (b) (162)(129)(134)(3)(19)- (447)
Net cost of net debt             10 
Non-controlling interests             24 
Net income - TotalEnergies share             (413)
                
                
(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 - - 265 43 -     
On net operating income - - 192 32 -     

 

 

 

 

 

4th quarter 2020 (adjusted)
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate Intercompany Total 
External sales 5,228 1,257 15,052 16,393 10 - 37,940 
Intersegment sales 628 5,574 4,160 98 140 (10,600)- 
Excise taxes - - (628)(4,967) - (5,595)
Revenues from sales 5,856 6,831 18,584 11,524 150 (10,600)32,345 
Operating expenses (5,513)(3,440)(18,122)(10,793)(317)10,600 (27,585)
Depreciation, depletion and impairment of tangible assets and mineral interests (354)(2,145)(396)(241)(36)- (3,172)
Adjusted operating income (11)1,246 66 490 (203)- 1,588 
Net income (loss) from equity affiliates and other items 175 31 137 4 5 - 352 
Tax on net operating income 90 (209)(33)(162)85 - (229)
Adjusted net operating income 254 1,068 170 332 (113)- 1,711 
Net cost of net debt             (371)
Non-controlling interests             (36)
Adjusted net income - TotalEnergies share             1,304 

 

 

 

 

 

 

 

4th quarter 2020
(M$)
 Integrated Gas,
Renewables
& Power
 Exploration
&
Production
 Refining
&
Chemicals
 Marketing
&
Services
 Corporate Intercompany Total 
Total expenditures 1,895 2,226 475 533 59 - 5,188 
Total divestments 339 132 31 61 149 - 712 
Cash flow from operating activities 575 3,046 1,514 648 (109)- 5,674 

 

 32 

 

 

 

 

BUSINESS SEGMENT INFORMATION

 

TotalEnergies

 

 

(unaudited)

 

 

Year 2021
(M$)
Integrated Gas,
Renewables
& Power
Exploration
&
Production
Refining
&
Chemicals
Marketing
&
Services
CorporateIntercompanyTotal
External sales30,704 7,246 87,600 80,288 25  205,863 
Intersegment sales4,260 34,896 27,637 451 254 (67,498)- 
Excise taxes - (1,108)(20,121)  (21,229)
Revenues from sales34,964 42,142 114,129 60,618 279 (67,498)184,634 
Operating expenses(29,964)(16,722)(108,982)(57,159)(927)67,498 (146,256)
Depreciation, depletion and impairment of tangible assets and mineral interests(1,650)(9,110)(1,583)(1,100)(113)- (13,556)
Operating income3,350 16,310 3,564 2,359 (761)- 24,822 
Net income (loss) from equity affiliates and other items2,745 (760)518 108 45 - 2,656 
Tax on net operating income(602)(7,506)(1,068)(738)152 - (9,762)
Net operating income5,493 8,044 3,014 1,729 (564)- 17,716 
Net cost of net debt            (1,350)
Non-controlling interests            (334)
Net income - TotalEnergies share            16,032 

 

 

Year 2021 (adjustments) (a)
(M$)
Integrated Gas,
Renewables
& Power
Exploration
&
Production
Refining
&
Chemicals
Marketing
&
Services
CorporateIntercompanyTotal
External sales(44)- - - - - (44)
Intersegment sales- - - - - - - 
Excise taxes- - - - - - - 
Revenues from sales(44)- - - - - (44)
Operating expenses(271)(187)1,470 278 - - 1,290 
Depreciation, depletion and impairment of tangible assets and mineral interests(342)(418)(25)(36)- - (821)
Operating income (b)(657)(605)1,445 242 - - 425 
Net income (loss) from equity affiliates and other items(215)(1,839)56 (61)(54)- (2,113)
Tax on net operating income122 49 (396)(70)(67)- (362)
Net operating income (b)(750)(2,395)1,105 111 (121)- (2,050)
Net cost of net debt- - - - - - 25 
Non-controlling interests- - - - - - (3)
Net income - TotalEnergies share- - - - - - (2,028)

(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- - 1,481 315 -     
On net operating income- - 1,296 236 -     

 

 

Year 2021 (adjusted)
(M$)
Integrated Gas,
Renewables
& Power
Exploration
&
Production
Refining
&
Chemicals
Marketing
&
Services
CorporateIntercompanyTotal
External sales30,748 7,246 87,600 80,288 25 - 205,907 
Intersegment sales4,260 34,896 27,637 451 254 (67,498)- 
Excise taxes- - (1,108)(20,121)- - (21,229)
Revenues from sales35,008 42,142 114,129 60,618 279 (67,498)184,678 
Operating expenses(29,693)(16,535)(110,452)(57,437)(927)67,498 (147,546)
Depreciation, depletion and impairment of tangible assets and mineral interests(1,308)(8,692)(1,558)(1,064)(113)- (12,735)
Adjusted operating income4,007 16,915 2,119 2,117 (761)- 24,397 
Net income (loss) from equity affiliates and other items2,960 1,079 462 169 99 - 4,769 
Tax on net operating income(724)(7,555)(672)(668)219 - (9,400)
Adjusted net operating income6,243 10,439 1,909 1,618 (443)- 19,766 
Net cost of net debt            (1,375)
Non-controlling interests            (331)
Adjusted net income - TotalEnergies share            18,060 

 

 

Year 2021
(M$)
Integrated Gas,
Renewables
& Power
Exploration
&
Production
Refining
&
Chemicals
Marketing
&
Services
CorporateIntercompanyTotal
Total expenditures6,341 7,276 1,638 1,242 92 - 16,589 
Total divestments1,350 894 348 319 22 -2,933 
Cash flow from operating activities827 22,009 6,4732,333(1,232- 30,410

 

 33 

 

 

BUSINESS SEGMENT INFORMATION

TotalEnergies

 

 

 

Year 2020
(M$)
 Integrated Gas,
Renewables
& Power
 

Exploration

&

Production

 

Refining

&

Chemicals

 

Marketing

&
Services

 Corporate Intercompany Total
External sales 15,629  4,973  56,615  63,451  17  -  140,685 
Intersegment sales 2,003  18,483  17,378  357  223  (38,444) - 
Excise taxes -  -  (2,405) (18,576) -  -  (20,981)
Revenues from sales 17,632  23,456  71,588  45,232  240  (38,444) 119,704 
Operating expenses (15,847) (11,972) (70,524) (42,807) (1,049) 38,444  (103,755)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,312) (16,998) (1,878) (984) (92) -  (22,264)
Operating income (527) (5,514) (814) 1,441  (901) -  (6,315)
Net income (loss) from equity affiliates and other items 794  697  (393) 37  272  -  1,407 
Tax on net operating income 71  (208) 59  (515) (67) -  (660)
Net operating income 338  (5,025) (1,148) 963  (696) -  (5,568)
Net cost of net debt                   (1,768)
Non-controlling interests                   94 
Net income - TotalEnergies share                   (7,242)

 

 

Year 2020 (adjustments) (a)
(M$)
 Integrated Gas,
Renewables
& Power
 

Exploration

&

Production

 

Refining

&

Chemicals

 

Marketing

&
Services

 Corporate Intercompany Total
External sales 20  -  -  -  -  -  20 
Intersegment sales -  -  -  -  -  -  - 
Excise taxes -  -  -  -  -  -  - 
Revenues from sales 20  -  -  -  -  -  20 
Operating expenses (423) (137) (1,552) (330) (60) -  (2,502)
Depreciation, depletion and impairment of tangible assets and mineral interests (953) (7,693) (306) -  -   -  (8,952)
Operating income (b) (1,356) (7,830) (1,858) (330) (60) -  (11,434)
Net income (loss) from equity affiliates and other items (382) 54  (677) (24) 107  -  (922)
Tax on net operating income 298  388  348  93  (145) -  982 
Net operating income (b) (1,440) (7,388) (2,187) (261) (98) -  (11,374)
Net cost of net debt                  (29)
Non-controlling interests                  102 
Net income - TotalEnergies share                  (11,301)
                      
(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 -  -  (1,244) (196) -       
On net operating income -  -  (1,165) (137) -       

 

 

Year 2020 (adjusted)
(M$)
 Integrated Gas,
Renewables
& Power
 

Exploration

&

Production

 

Refining

&

Chemicals

 

Marketing

&
Services

 Corporate Intercompany Total
External sales 15,609  4,973  56,615  63,451  17  -  140,665 
Intersegment sales 2,003  18,483  17,378  357  223  (38,444) - 
Excise taxes -  -  (2,405) (18,576) -  -  (20,981)
Revenues from sales 17,612  23,456  71,588  45,232  240  (38,444) 119,684 
Operating expenses (15,424) (11,835) (68,972) (42,477) (989) 38,444  (101,253)
Depreciation, depletion and impairment of tangible assets and mineral interests (1,359) (9,305) (1,572) (984) (92) -  (13,312)
Adjusted operating income 829  2,316  1,044  1,771  (841) -  5,119 
Net income (loss) from equity affiliates and other items 1,176  643  284  61  165  -  2,329 
Tax on net operating income (227) (596) (289) (608) 78  -  (1,642)
Adjusted net operating income 1,778  2,363  1,039  1,224  (598) -  5,806 
Net cost of net debt                   (1,739)
Non-controlling interests                   (8)
Adjusted net income - TotalEnergies share                   4,059 

 

 

Year 2020
(M$)
 Integrated Gas,
Renewables
& Power
 

Exploration

&

Production

 

Refining

&

Chemicals

 

Marketing

&
Services

 Corporate Intercompany Total
Total expenditures 6,230  6,782  1,325  1,052  145  -  15,534 
Total divestments 1,152  819  149  158  177  -  2,455 
Cash flow from operating activities 2,129  9,922  2,438  2,101  (1,787) -  14,803 

 

 34 

 

 

Reconciliation of the information by business segment with consolidated financial statements

 

TotalEnergies

 

(unaudited)

 

 

4th quarter 2021
(M$)
AdjustedAdjustments (a)

Consolidated

 

statement of income

Sales60,348 - 60,348 
Excise taxes(5,050)- (5,050)
  Revenues from sales55,298 - 55,298 
       
       
Purchases, net of inventory variation(36,189)28 (36,161)
Other operating expenses(6,630)(50)(6,680)
Exploration costs(215)(108)(323)
Depreciation, depletion and impairment of tangible assets and mineral interests(3,278)(641)(3,919)
Other income551 (15)536 
Other expense(493)(262)(755)
       
Financial interest on debt(483)- (483)
Financial income and expense from cash & cash equivalents105 15 120 
  Cost of net debt(378)15 (363)
       
Other financial income195  195 
Other financial expense(138) (138)
       
Net income (loss) from equity affiliates1,787 73 1,860 
       
Income taxes(3,606)(41)(3,647)
Consolidated net income6,904 (1,001)5,903 
TotalEnergies share6,825 (988)5,837 
Non-controlling interests79 (13)66 

  

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

 

 

4th quarter 2020
(M$)
AdjustedAdjustments (a)

Consolidated

 

statement of income

Sales37,940 3 37,943 
Excise taxes(5,595)- (5,595)
  Revenues from sales32,345 3 32,348 
       
Purchases, net of inventory variation(20,781)273 (20,508)
Other operating expenses(6,466)(197)(6,663)
Exploration costs(338)- (338)
Depreciation, depletion and impairment of tangible assets and mineral interests(3,172)(371)(3,543)
Other income275 563 838 
Other expense(280)(417)(697)
       
Financial interest on debt(497)(4)(501)
Financial income and expense from cash & cash equivalents32 21 53 
  Cost of net debt(465)17 (448)
       
Other financial income173  173 
Other financial expense(183) (183)
       
Net income (loss) from equity affiliates367 (294)73 
       
Income taxes(135)(14)(149)
Consolidated net income1,340 (437)903 
TotalEnergies share1,304 (413)891 
Non-controlling interests36 (24)12 

 

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

 

 35 

 

 

Reconciliation of the information by business segment with consolidated financial statements

 

TotalEnergies

 

 

Year 2021

(M$)AdjustedAdjustments (a)Consolidated
(unaudited)  statement of income
Sales205,907(44)205,863
Excise taxes(21,229)-(21,229)
Revenues from sales184,678(44)184,634
    
Purchases, net of inventory variation(120,160)1,538(118,622)
Other operating expenses(26,754)(140)(26,894)
Exploration costs(632)(108)(740)
Depreciation, depletion and impairment of tangible assets and mineral interests(12,735)(821)(13,556)
Other income1,300121,312
Other expense(944)(1,373)(2,317)
    
Financial interest on debt(1,904)-(1,904)
Financial income and expense from cash & cash equivalents34039379
Cost of net debt(1,564)39(1,525)
    
Other financial income762-762
Other financial expense(539)-(539)
   
Net income (loss) from equity affiliates4,190(752)3,438
    
Income taxes(9,211)(376)(9,587)
Consolidated net income18,391(2,025)16,366
TotalEnergies share18,060(2,028)16,032
Non-controlling interests3313334
    
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.   

 

 

Year 2020
(M$)
AdjustedAdjustments (a)Consolidated
statement of income
Sales140,66520140,685
Excise taxes(20,981) -(20,981)
Revenues from sales119,68420119,704
    
Purchases, net of inventory variation(75,672)(1,814)(77,486)
Other operating expenses(24,850)(688)(25,538)
Exploration costs(731)-(731)
Depreciation, depletion and impairment of tangible assets and mineral interests(13,312)(8,952)(22,264)
Other income1,4058322,237
Other expense(689)(817)(1,506)
    
Financial interest on debt(2,140)(7)(2,147)
Financial income and expense from cash & cash equivalents68(31)37
Cost of net debt(2,072)(38)(2,110)
    
Other financial income914 -914
Other financial expense(689)(1)(690)
    
Net income (loss) from equity affiliates1,388(936)452
    
Income taxes(1,309)991(318)
Consolidated net income4,067(11,403)(7,336)
TotalEnergies share4,059(11,301)(7,242)
Non-controlling interests8(102)(94)
    
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.   

 

 36