TotalEnergies Release Third Quarter Results

London, 26 October 2023, (Oilandgaspress) – TotalEnergies posted Q3 adjusted net income of $6.5 billion (a 35% fall in its third quarter adjusted net income compared to a year ago). The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on October 25, 2023, to approve the third quarter 2023 financial statements.. Patrick Pouyanné said:
“While implementing its balanced transition strategy that combines Oil & Gas and Integrated Power, TotalEnergies demonstrates once again this quarter its ability to leverage a supportive price environment, generating adjusted net income of $6.5 billion and return on average capital employed of over 20%. Cash flow from operations (CFFO) increased to $9.3 billion in the third quarter and totaled $27.4 billion in the first nine months of 2023.
In the Oil & Gas business, production at nearly 2.5 Mboe/d is up 5% year-on-year, thanks to the start-up of several oil projects in Brazil (Mero 1), Nigeria (Ikike) and Iraq (Ratawi) and gas projects in Oman (Block 10) and Azerbaijan (Absheron). During the quarter, confirmation of exploration successes in Suriname and Namibia opened the way to new oil developments contributing to future cash flow growth.
Exploration & Production delivered a strong quarter, with adjusted net operating income and cash flow both increasing by $0.8 billion quarter-to-quarter to $3.1 billion and $5.2 billion, respectively. Integrated LNG confirms the robustness of its global integrated portfolio, with adjusted net operating income of $1.3 billion and cash flow of $1.6 billion. Downstream adjusted net operating income and cash flow increased sequentially to $1.8 billion and $2.2 billion, respectively, due to good availability of European refining assets.
This quarter again demonstrates the relevance of TotalEnergies’ profitable transition strategy. For the first time, Integrated Power adjusted net operating income and cash flow both exceed $500 million. Year-to-date cash flow at the end of the third quarter is close to $1.5 billion, in line with Integrated Power’s objective to generate around $2 billion of cash flow in 2023. TotalEnergies commissioned its 1 GW Seagreen offshore wind farm, which was delivered within budget, and its 380 MW Myrtle Solar project in the US, which includes battery storage, and acquired 100% of Total Eren.
Based on the strength of both these results, the Board of Directors decided the distribution of the third interim dividend for the 2023 financial year in the amount of €0.74/share, up 7.25% year-on-year. Additionally, the Company is executing a $9 billion share buyback program in 2023, as announced on September 27. Year-to-date shareholder distribution is close to 43% at the end of September, in line with the recently increased annual guidance of more than 40%.”

1. Highlights⁽²⁾

Multi-energy strategy

• Launch of GGIP in Iraq: effective entry in the producing Ratawi field on August 16, 2023
• Partnership with SONATRACH to increase the production of the Tin Fouyé Tabankort fields, extend to 2024 2 Mt/y of LNG deliveries in France, and develop renewable energy projects in Algeria
• Partnership with Petrobras and Casa dos Ventos in renewable energies in Brazil

Upstream

• Production start-up of Absheron gas and condensate field, in Azerbaijan
• Acquisition of an interest in the Cash-Maple gas discoveries, in Australia, to ensure long-term supply of Ichthys LNG
• Launch of development studies of a 200,000 b/d oil project in Block 58 in Suriname with targeted FID at the end of 2024
• Closing of the sale of Surmont to ConocoPhillips for up to $3.3 billion and disposal of other Canadian assets to Suncor for around $1.1 billion
• Sale to Petronas of a 40% interest in Block 20 in Angola
• Sale to ADNOC of a 15% interest in Absheron field in Azerbaijan

Downstream

• Start-up of a new polyethylene unit on the Baystar plant, in the US

Integrated LNG

• Signature of 27-year LNG offtake contracts with QatarEnergy LNG for 3.5 Mtpa
• Launch of the Rio Grande LNG project, in Texas: acquisition of a 16.67% stake in the JV in charge of developing the 17.5 Mt/y project, acquisition of a 17.5% stake in NextDecade, and signature of a 5.4 Mt/y offtake agreement for 20 years

Integrated Power

• Commissioning of Myrtle Solar in the US, first large solar farm including battery storage
• Signature with Saint-Gobain of a Power Purchase Agreement over 15 years, in the US
• Commissioning of Seagreen in Scotland, the first offshore windfarm of the Company
• Partial farm downs to Corio Generation and Rise Light & Power in a 3 GW wind project offshore New York and New Jersey, in the US
• Agreement with European Energy to develop more than 4 GW of onshore renewable projects
• Acquisition of a 50% interest in Rönesans Enerji to develop renewable projects in Turkey
• Investment with AGEL in a joint venture in India with more than 1,400 MW of renewable assets
• Award of a contract for the installation and operation of 1,100 EV HPC points in Germany

Low carbon molecules

• Agreement with Air Liquide for the supply of green and low carbon hydrogen to the Normandy platform
• Call for tenders launch for the supply of 500,000 t/y of green hydrogen to decarbonize TotalEnergies’ European refining
• Acquisition of an interest in a CO2 storage exploration license, in Norway
• Circular economy: first conversion of plastic waste derived oil into certified circular polymers, in Saudi Arabia, and FID of a new mechanical recycling unit for plastic waste at Grandpuits biorefinery, in France

Key figures from TotalEnergies’ consolidated financial statements⁽¹⁾

3Q23		2Q23		3Q22		3Q23 vs 3Q22		In millions of dollars, except effective tax rate, earnings per share and number of shares		9M23		9M22		9M23  vs 9M22
13,062		11,105		19,420		-33%		Adjusted EBITDA (1)		38,334		55,581		-31%
6,808		5,582		10,279		-34%		Adjusted net operating income from business segments		19,383		30,237		-36%
3,138		2,349		4,217		-26%		Exploration & Production		8,140		13,951		-42%
1,342		1,330		3,413		-61%		Integrated LNG		4,744		8,761		-46%
506		450		236		x2,1		Integrated Power		1,326		494		x2,7
1,399		1,004		1,935		-28%		Refining & Chemicals		4,021		5,815		-31%
423		449		478		-12%		Marketing & Services		1,152		1,216		-5%
662		662		2,576		-74%		Contribution of equity affiliates to adjusted net income		2,403		6,381		-62%
33.4%		37.3%		44.1%				Effective tax rate (3)		37.5%		40.8%
6,453		4,956		9,863		-35%		Adjusted net income (TotalEnergies share) (1)		17,950		28,636		-37%
2.63		1.99		3.83		-31%		Adjusted fully-diluted earnings per share (dollars) (4)		7.24		10.96		-34%
2.41		1.84		3.78		-36%		Adjusted fully-diluted earnings per share (euros) (5)		6.68		10.31		-35%
2,423		2,448		2,560		-5%		Fully-diluted weighted-average shares (millions)		2,448		2,589		-5%
6,676		4,088		6,626		+1%		Net income (TotalEnergies share)		16,321		17,262		-5%
4,283		4,271		3,116		+37%		Organic investments (1)		11,987		7,916		+51%
808		320		1,587		-49%		Net acquisitions (1)		4,115		4,585		-10%
5,091		4,591		4,703		+8%		Net investments (1)		16,102		12,501		+29%
9,340		8,485		11,736		-20%		Cash flow from operations excluding working capital (CFFO) (1)		27,446		36,595		-25%
9,551		8,596		12,040		-21%		Debt Adjusted Cash Flow (DACF) (1)		27,922		37,665		-26%
9,496		9,900		17,848		-47%		Cash flow from operating activities		24,529		41,749		-41%

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