TotalEnergies SE (TTE) and EREN Groupe's joint venture TE H2, along with VERBUND, Austria's leading electricity company, have signed a Memorandum of Understanding with Republic of Tunisia to develop a large green hydrogen project named H2 Notos for export to Central Europe through pipelines. Green hydrogen will be produced using electrolysers, powered by large onshore wind and solar projects, and supplied with desalinated sea water. The project aims to produce 200,000 tons of green hydrogen annually during ...

Financial Data and Key Metrics Changes - TotalEnergies reported an adjusted net income of $5.1 billion for Q1 2024, down only 2% sequentially, with cash flow from operations (excluding working capital) of $8.2 billion [28][12] - The return on average capital employed was 16.5%, and the company maintained a net investment guidance of $17 billion to $18 billion for 2024 [12][11] - The interim dividend was increased by 7% year-on-year to EUR 0.79 per share, reflecting a strong commitment to shareholder returns [17][9] Business Line Data and Key Metrics Changes - Exploration and production reported adjusted net operating income of $2.6 billion and cash flow of $4.5 billion, with upstream production costs at $4.6 per barrel [13][12] - Integrated LNG adjusted net operating income was $1.2 billion, impacted by lower LNG prices, with cash flow totaling $1.3 billion [14][12] - Downstream refinery utilization rate was stable at close to 80%, with cash flow from marketing and services increasing by 5% year-on-year to $480 million [15][16] Market Data and Key Metrics Changes - Brent prices were flat quarter-to-quarter, down only 1% to $83 per barrel, while refining margins increased by 36% [28][12] - European gas prices declined by 35% due to a mild winter and high storage levels [28][12] - First quarter LNG sales decreased by 9% quarter-to-quarter, primarily due to lower demand in Europe [30][12] Company Strategy and Development Direction - The company is advancing its two-pillar strategy focused on oil and gas production and integrated power development, aiming to become net cash positive by 2028 [4][22] - TotalEnergies is making progress on several projects, including the Cameia project in Angola and the Marsa LNG project in Oman, which sets a new low-carbon intensity standard [6][7] - The company is also expanding its LNG position and acquiring assets in Malaysia to enhance its integrated gas business [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production guidance of 2.4 million to 2.5 million barrels of oil equivalent per day for 2024, reflecting a 2% growth year-on-year [29][12] - The company anticipates an increase in refining utilization rates to around 85% in Q2 2024 as operations normalize [32][12] - Management remains optimistic about the LNG market, expecting demand to grow despite potential delays in new capacities [81][12] Other Important Information - The company celebrated its 100th anniversary, emphasizing its commitment to energy transition and sustainable practices [3][21] - TotalEnergies is now the number one company in Europe in terms of employee capital ownership, with over EUR 11 billion owned by employees [27][12] - Gearing increased to around 10% at the end of Q1 2024, compared to 5% at the end of the previous year [33][12] Q&A Session Summary Question: What is the outlook for the LNG market given potential EU sanctions on Russian LNG? - Management indicated that if EU sanctions were imposed on Yamal LNG, it could lead to an increase in LNG prices, benefiting TotalEnergies' portfolio [94][12] Question: Can you provide details on the FID for Namibia and the size of resources? - Management stated that they are comfortable with the FID in Namibia and expect to be the first to produce oil there, with ongoing exploration to capture additional resources [67][69] Question: What is the rationale behind the acquisition of SapuraOMV? - The acquisition strengthens TotalEnergies' position in Malaysia and is seen as a strategic move to enhance its gas business, particularly in relation to LNG pricing [110][12] Question: How does the company view the potential for a U.S. listing? - Management confirmed that the Board is considering a U.S. listing to better access U.S. shareholders and will report back by September [104][12] Question: What are the expectations for share buybacks in the current environment? - Management indicated that share buybacks would be considered if cash flows exceed the base case, but no specific formula is in place [86][12]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Commission file number: 1-10888 TotalEnergies SE (Exact Name of Registrant as Specified in Its Charter) N/A (Translation of Registrant's name into English) Republic of France (Jurisdicti ...

3. Effect of changes in fair value These adjustment items include: Due to their unusual nature or particular 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. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may qualify as special ...

TotalEnergies SE (NYSE:TTE) Q4 2023 Earnings Conference Call February 7, 2024 4:30 AM ET Company Participants Renaud Lions - Investor Relations Bernard Pinatel - President, Refining & Chemicals Jean-Pierre Sbraire - Chief Financial Officer Patrick Pouyanné - Chairman, Chief Executive Officer and President Stephane Michel - President, Gas, Renewables & Power Conference Call Participants Irene Himona - Societe Generale Oswald Clint - Bernstein Michele Vigna - Goldman Sachs Martijn Rats - Morgan Stanley Lucas ...

Patrick Pouyanne - Chairman, CEO & President Jean-Pierre Sbraire - CFO Ladies and gentlemen, welcome to the TotalEnergies Third Quarter 2023 Results Conference Call. As explained in our total strategy and outlook presentation end of September, we have stayed the course, and this quarter illustrates all the strategies in motion in all of business segments. Oil and gas first, as you know, we have developed organically a deep portfolio of projects. But our low cost and low emissions, which will offer a growth ...

[Operating and Financial Review and Prospects](index=1&type=section&id=OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) [Key Figures](index=1&type=section&id=A.%20KEY%20FIGURES) TotalEnergies reported a 15% YoY sales decrease to $59.0 billion in Q3 2023, with adjusted net operating income down 34% to $6.8 billion, alongside a 5% rise in hydrocarbon production (excl. Novatek) and an 18% reduction in GHG emissions Q3 2023 and 9M 2023 Key Financial Figures (in millions of dollars) | | 3Q23 | 3Q22 | 3Q23 vs 3Q22 | 9M23 | 9M22 | 9M23 vs 9M22 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Sales** | 59,017 | 69,037 | -15% | 177,891 | 212,417 | -16% | | **Net income (TotalEnergies share)** | 6,676 | 6,626 | +1% | 16,321 | 17,262 | -5% | | **Adjusted EBITDA** | 13,062 | 19,420 | -33% | 38,334 | 55,581 | -31% | | **Adjusted net operating income** | 6,808 | 10,279 | -34% | 19,383 | 30,237 | -36% | | **Cash flow from operating activities** | 9,496 | 17,848 | -47% | 24,529 | 41,749 | -41% | | **Net investments** | 5,091 | 4,703 | +8% | 16,102 | 12,501 | +29% | Environment - Price Realizations | | 3Q23 | 3Q22 | 3Q23 vs 3Q22 | 9M23 | 9M22 | 9M23 vs 9M22 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Brent ($/b)** | 86.7 | 100.8 | -14% | 82.1 | 105.5 | -22% | | **Average price of liquids ($/b)** | 78.9 | 93.6 | -16% | 74.9 | 95.4 | -22% | | **Average price of gas ($/Mbtu)** | 5.47 | 16.83 | -67% | 6.80 | 13.28 | -49% | | **Average price of LNG ($/Mbtu)** | 9.56 | 21.51 | -56% | 10.92 | 16.26 | -33% | - Scope 1+2 GHG emissions from operated facilities decreased by **18% YoY** in Q3 2023, attributed to reduced flaring in Exploration & Production and lower utilization of gas-fired power plants in Europe[9](index=9&type=chunk)[12](index=12&type=chunk) - Total hydrocarbon production was **2,476 thousand barrels of oil equivalent per day** in Q3 2023, with production excluding Novatek increasing by **5% YoY** due to portfolio additions and project ramp-ups[15](index=15&type=chunk)[16](index=16&type=chunk)[23](index=23&type=chunk) [Analysis of Business Segment Results](index=3&type=section&id=B.%20ANALYSIS%20OF%20BUSINESS%20SEGMENT%20RESULTS) Effective January 1, 2023, TotalEnergies restructured its reporting into five business segments, utilizing adjusted financial indicators to measure performance by excluding special items and valuation effects - TotalEnergies' performance is measured using adjusted financial indicators like Adjusted Net Operating Income, which exclude special items, inventory valuation effects, and changes in fair value for trading activities[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - As of January 1, 2023, the company implemented a new reporting structure with five business segments: Exploration-Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services[27](index=27&type=chunk)[30](index=30&type=chunk) [Exploration & Production](index=5&type=section&id=B.1%20Exploration%20%26%20Production) The Exploration & Production segment's adjusted net operating income was **$3.14 billion** in Q3 2023, down 26% YoY but up 34% QoQ, driven by higher oil prices and a favorable portfolio mix, with production (excl. Novatek) rising 3% YoY Exploration & Production Financial and Operational Highlights | Indicator | 3Q23 | 3Q22 | % Change | 9M23 | 9M22 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Operating Income (M$)** | 3,138 | 4,217 | -26% | 8,140 | 13,951 | -42% | | **Hydrocarbon Production (kboe/d)** | 2,043 | 2,251 | -9% | 2,045 | 2,292 | -11% | | **Production excl. Novatek (kboe/d)** | 2,043 | 1,988 | +3% | 2,045 | 2,023 | +1.1% | | **Organic Investments (M$)** | 2,557 | 1,989 | +29% | 7,115 | 5,288 | +35% | - Adjusted net operating income increased **34% quarter-over-quarter** to **$3,138 million**, primarily due to higher oil prices and a lower effective tax rate[36](index=36&type=chunk) [Integrated LNG](index=6&type=section&id=B.2%20Integrated%20LNG) The Integrated LNG segment's adjusted net operating income was **$1.34 billion** in Q3 2023, a **61% YoY decrease** primarily due to lower LNG prices and exceptional Q3 2022 trading results, despite an 18% YoY growth in hydrocarbon production (excl. Novatek) Integrated LNG Financial and Operational Highlights | Indicator | 3Q23 | 3Q22 | % Change | 9M23 | 9M22 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Operating Income (M$)** | 1,342 | 3,413 | -61% | 4,744 | 8,761 | -46% | | **Hydrocarbon Production for LNG (kboe/d)** | 433 | 418 | +4% | 445 | 458 | -3% | | **Overall LNG Sales (Mt)** | 10.5 | 10.4 | - | 32.5 | 35.4 | -8% | | **Organic Investments (M$)** | 495 | 213 | x2.3 | 1,273 | 324 | x3.9 | - The **53% YoY decrease** in adjusted net operating income (excluding Novatek) was primarily driven by lower LNG prices and exceptionally strong trading results in Q3 2022, partly mitigated by higher production[42](index=42&type=chunk) - Cash flow from operations excluding working capital (CFFO) was **$1,648 million** in Q3 2023, down **34% YoY** (excluding Novatek), mainly due to lower LNG prices, partially offset by high margins captured in 2022[42](index=42&type=chunk) [Integrated Power](index=7&type=section&id=B.3%20Integrated%20Power) The Integrated Power segment's adjusted net operating income more than doubled to **$506 million** in Q3 2023, driven by a 2.3x YoY increase in renewables production and gross installed renewable capacity surpassing **20 GW** Integrated Power Financial and Operational Highlights | Indicator | 3Q23 | 3Q22 | % Change | 9M23 | 9M22 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Operating Income (M$)** | 506 | 236 | x2.1 | 1,326 | 494 | x2.7 | | **Net Power Production (TWh)** | 8.9 | 8.5 | +4% | 25.5 | 23.7 | +7% | | **o/w Renewables Production (TWh)** | 5.4 | 2.4 | x2.3 | 13.5 | 7.1 | +90% | | **Gross Installed Renewable Capacity (GW)** | 20.2 | 16.0 | +26% | 20.2 | 16.0 | +26% | - Net power production rose **7% quarter-over-quarter** to **8.9 TWh**, driven by growing renewable generation following the full integration of Total Eren and new solar project start-ups[45](index=45&type=chunk) - Adjusted net operating income for the first nine months of 2023 was **$1,326 million**, **2.7 times higher** than the prior year, reflecting the success of its profitable Integrated Power model[50](index=50&type=chunk) [Refining & Chemicals](index=9&type=section&id=B.5%20Refining%20%26%20Chemicals) The Refining & Chemicals segment's adjusted net operating income was **$1.40 billion** in Q3 2023, down 28% YoY but up 39% QoQ, driven by higher European refining margins and an 84% utilization rate, despite a 7% YoY decrease in throughput Refining & Chemicals Financial and Operational Highlights | Indicator | 3Q23 | 3Q22 | % Change | 9M23 | 9M22 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Operating Income (M$)** | 1,399 | 1,935 | -28% | 4,021 | 5,815 | -31% | | **Total Refinery Throughput (kb/d)** | 1,489 | 1,599 | -7% | 1,456 | 1,497 | -3% | | **Refinery Utilization Rate** | 84% | 88% | - | 81% | 84% | - | - Refinery throughput decreased **7% YoY** in Q3 2023, primarily due to planned maintenance and unplanned shutdowns at the Port Arthur (US) and Antwerp (Belgium) refineries[54](index=54&type=chunk) - Adjusted net operating income rose **39% quarter-over-quarter**, reflecting higher refining margins in Europe and an increased refinery utilization rate[58](index=58&type=chunk) [Marketing & Services](index=11&type=section&id=B.6%20Marketing%20%26%20Services) The Marketing & Services segment reported an adjusted net operating income of **$423 million** in Q3 2023, down **12% YoY**, primarily due to a **6% YoY decrease** in petroleum product sales from the Egypt divestment, partially offset by aviation sector recovery Marketing & Services Financial and Operational Highlights | Indicator | 3Q23 | 3Q22 | % Change | 9M23 | 9M22 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Operating Income (M$)** | 423 | 478 | -12% | 1,152 | 1,216 | -5% | | **Petroleum Product Sales (kb/d)** | 1,399 | 1,495 | -6% | 1,386 | 1,475 | -6% | - The **6% YoY decrease** in petroleum product sales was mainly due to the portfolio effect from the disposal of 50% of the fuel distribution business in Egypt, partly offset by the recovery in aviation fuel demand[60](index=60&type=chunk) [TotalEnergies Results](index=12&type=section&id=C.%20TOTALENERGIES%20RESULTS) In Q3 2023, TotalEnergies' net income remained stable at **$6.7 billion**, with adjusted net income at **$6.5 billion**, while the company repurchased **$2.1 billion** in shares and generated **$9.3 billion** in cash flow from operations - Adjusted net income was **$6.5 billion** in Q3 2023, up from **$5.0 billion** in Q2 2023, mainly due to higher oil prices and refining margins, with total adjustments of **$223 million**[65](index=65&type=chunk)[66](index=66&type=chunk) - Shareholder returns in Q3 2023 included the repurchase of **33.9 million shares** for **$2.1 billion**[66](index=66&type=chunk) - Key acquisitions in Q3 2023 totaled **$2.0 billion**, primarily for Total Eren and the Rio Grande LNG project, while divestments amounted to **$1.2 billion**[66](index=66&type=chunk) - Cash flow from operations excluding working capital (CFFO) was **$9.3 billion** in Q3 2023, down **20% YoY**, resulting in a net cash flow of **$4.2 billion** after **$5.1 billion** in net investments[69](index=69&type=chunk)[70](index=70&type=chunk) [Profitability](index=14&type=section&id=D.%20PROFITS) TotalEnergies' profitability metrics, while declining from prior year highs, remained strong with a Return on Equity (ROE) of **22.3%** and a Return on Average Capital Employed (ROACE) of **20.1%** for the twelve months ending September 30, 2023 Profitability Ratios (Twelve months ended) | In millions of dollars | Oct 1, 2022 - Sep 30, 2023 | Oct 1, 2021 - Sep 30, 2022 | | :--- | :--- | :--- | | **Adjusted net income** | 25,938 | 35,790 | | **Return on equity (ROE)** | 22.3% | 31.4% | | **Adjusted net operating income** | 27,351 | 37,239 | | **Return on average capital employed (ROACE)** | 20.1% | 27.2% | [Annual 2023 Sensitivities](index=14&type=section&id=E.%20Annual%202023%20Sensitivities) The company's financial performance is sensitive to commodity price and exchange rate changes, with a **$10 per barrel** shift in average liquids price estimated to impact annual adjusted net operating income by **$2.5 billion** and cash flow from operations by **$3.0 billion** Annual 2023 Sensitivities | | Change | Estimated impact on adjusted net operating income | Estimated impact on cash flow from operations | | :--- | :--- | :--- | :--- | | **Average liquids price** | +/- 10$/b | +/- 2.5 B$ | +/- 3.0 B$ | | **European gas price – NBP / TTF** | +/- 2 $/Mbtu | +/- 0.4 B$ | +/- 0.4 B$ | | **Dollar** | +/- 0.1 $ per € | -/+ 0.1 B$ | ~0 B$ | [Summary and Outlook](index=14&type=section&id=F.%20SUMMARY%20AND%20OUTLOOK) For Q4 2023, TotalEnergies anticipates oil prices around **$90/b** and average LNG selling prices above **$10/Mbtu**, with hydrocarbon production projected between **2.4 and 2.5 Mboe/d**, while confirming **$16-$17 billion** in net investment guidance - The company anticipates its average LNG selling price to be above **$10 per Mbtu** in Q4 2023, given the evolution of oil and gas prices and lag effects on price formulas[77](index=77&type=chunk) - Guidance for Q4 2023 includes hydrocarbon production expected between **2.4 and 2.5 million barrels of oil equivalent per day**, reflecting the Canadian oil sands asset sale, and a refinery utilization rate above **80%**[78](index=78&type=chunk) - The company confirms its 2023 net investment guidance of **$16 billion to $17 billion**, anticipating **$4.1 billion** in cash from Canadian asset divestments in Q4 2023, potentially lowering gearing below **8%**[79](index=79&type=chunk) [Financial Statements and Reconciliations](index=16&type=section&id=FINANCIAL%20STATEMENTS%20AND%20RECONCILIATIONS) This section provides detailed financial data, including segment operating information, non-GAAP reconciliations, and core consolidated financial statements, highlighting a **12.3%** gearing ratio and a **42.7%** payout ratio for the first nine months of 2023 Gearing Ratio as of September 30, 2023 | In millions of dollars | 09/30/2023 | | :--- | :--- | | **Net debt (a)** | 16,676 | | **Shareholders' equity (b)** | 118,424 | | **Gearing = a / (a+b)** | **12.3%** | | **Leases (c)** | 8,277 | | **Gearing including leases (a+c) / (a+b+c)** | **17.4%** | Payout Ratio | In millions of dollars | 9M23 | 9M22 | | :--- | :--- | :--- | | **Dividend paid (a)** | 5,648 | 5,630 | | **Share buy-backs (b)** | 6,082 | 4,979 | | **CFFO (c)** | 27,446 | 36,595 | | **Payout ratio = (a+b) / c** | **42.7%** | **29.0%** | [Consolidated Statement of Income](index=30&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20INCOME) For the nine months ended September 30, 2023, TotalEnergies' revenues from sales decreased to **$164.2 billion**, with consolidated net income at **$16.5 billion** and fully-diluted earnings per share remaining stable at **$6.57** Consolidated Statement of Income (9 Months Ended) | (M$) | 9 months 2023 | 9 months 2022 | | :--- | :--- | :--- | | **Revenues from sales** | 164,180 | 199,357 | | **Consolidated net income** | 16,473 | 17,603 | | **Net income (TotalEnergies share)** | **16,321** | **17,262** | | **Fully-diluted earnings per share ($)** | **6.57** | **6.57** | [Consolidated Balance Sheet](index=34&type=section&id=CONSOLIDATED%20BALANCE%20SHEET) As of September 30, 2023, TotalEnergies reported total assets of **$290.0 billion** and total shareholders' equity of **$118.4 billion**, while net debt (excluding leases) increased to **$16.7 billion** due to share buybacks and dividends Consolidated Balance Sheet Highlights (in millions of dollars) | | Sep 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | **Total Assets** | 290,004 | 303,864 | 349,715 | | **Total Liabilities** | 171,580 | 189,294 | 229,043 | | **Total Shareholders' Equity** | 118,424 | 114,570 | 120,672 | | **Cash and cash equivalents** | 24,731 | 33,026 | 35,941 | [Consolidated Statement of Cash Flow](index=35&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOW) For the first nine months of 2023, cash flow from operating activities was **$24.5 billion**, decreasing from **$41.7 billion** in 2022, with **$15.8 billion** used in investing and **$16.7 billion** in financing activities, resulting in an **$8.0 billion** net decrease in cash Consolidated Statement of Cash Flow (9 Months Ended, in millions of dollars) | | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | | **Cash flow from operating activities** | 24,529 | 41,749 | | **Cash flow used in investing activities** | (15,822) | (11,435) | | **Cash flow from (used in) financing activities** | (16,691) | (12,699) | | **Net increase (decrease) in cash** | (7,984) | 17,615 | [Notes to the Consolidated Financial Statements](index=41&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section details the basis of financial statement preparation, significant structural changes including acquisitions and divestments, shareholder equity matters like share cancellations and dividends, and key risks such as geopolitical issues and climate-related litigation [Changes in the Company structure](index=42&type=section&id=2)%20Changes%20in%20the%20Company%20structure) During 2023, TotalEnergies made significant portfolio adjustments, including acquiring a **20%** interest in SARB and Umm Lulu and fully acquiring Total Eren, while divesting its Surmont and Fort Hills oil sands assets and agreeing to sell retail networks in Germany and the Netherlands - Completed the acquisition of a **20% interest** in the SARB and Umm Lulu offshore concession in the UAE in March 2023[154](index=154&type=chunk)[151](index=151&type=chunk) - Completed the acquisition of the remaining shares of Total Eren in July 2023 for a net investment of **€1,467 million**, integrating its **3.5 GW** of operational renewable assets[155](index=155&type=chunk) - Finalized the sale of its **50% interest** in the Surmont oil sands asset to ConocoPhillips for **C$4.03 billion** and agreed to sell the Fort Hills asset to Suncor for **C$1.47 billion**[159](index=159&type=chunk)[160](index=160&type=chunk) - Agreed to sell its retail networks in Germany and the Netherlands to Alimentation Couche-Tard, based on an enterprise value of **€3.1 billion**, with these assets classified as held for sale[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [Shareholders' equity](index=50&type=section&id=4)%20Shareholders'%20equity) The company executed significant share cancellations in 2023, retiring over **214 million** treasury shares, while the Board of Directors established a consistent quarterly interim dividend of **€0.74 per share** for 2023 - The Board of Directors decided to cancel **128.9 million** treasury shares bought back in 2022 and an additional **86.0 million** treasury shares bought back in 2023[188](index=188&type=chunk)[189](index=189&type=chunk) 2023 Interim Dividend Schedule | Dividend 2023 | First interim | Second interim | Third interim | | :--- | :--- | :--- | :--- | | **Amount** | €0.74 | €0.74 | €0.74 | | **Payment date** | Oct 2, 2023 | Jan 12, 2024 | Apr 3, 2024 | [Other risks and contingent liabilities](index=53&type=section&id=7)%20Other%20risks%20and%20contingent%20liabilities) TotalEnergies faces material risks including suspended operations at Yemen LNG and Mozambique LNG due to geopolitical instability, and ongoing climate-related lawsuits in France and the US concerning its vigilance plan, communications, and historical GHG emissions - Operations remain suspended at the Yemen LNG plant (since 2015) and the Mozambique LNG project (since 2021) due to security issues, with force majeure declared at both sites[203](index=203&type=chunk)[204](index=204&type=chunk) - The company is facing several climate-related legal challenges in France and the US, including lawsuits regarding its Vigilance Plan, alleged misleading environmental claims, and liability for historical GHG emissions, which TotalEnergies considers unfounded[205](index=205&type=chunk)[206](index=206&type=chunk)[208](index=208&type=chunk)

TotalEnergies SE (NYSE:TTE) Q2 2023 Earnings Conference Call July 27, 2023 6:00 AM ET Company Participants Patrick Pouyanné - Chief Executive Officer Jean-Pierre Sbraire - Chief Financial Officer Conference Call Participants Oswald Clint - Bernstein Irene Himona - Société Générale Christopher Kuplent - Bank of America Lydia Rainforth - Barclays Biraj Borkhataria - RBC Kim Fustier - HSBC Lucas Herrmann - Exane Jason Gabelman - TD Cowen Henri Patricot - UBS Paul Cheng - Scotiabank Operator Ladies and gentleme ...

[Operating and Financial Review](index=1&type=section&id=Operating%20and%20Financial%20Review) This section details TotalEnergies' financial and operational performance for 1H 2023, highlighting key figures, segment results, and future outlook [Key Financial and Operating Figures](index=1&type=section&id=A.%20KEY%20FIGURES) TotalEnergies reported significant declines in 1H 2023 net income and adjusted EBITDA due to lower commodity prices 1H 2023 Key Financial Metrics (vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Sales (M$) | 118,874 | 143,380 | -17% | | Net Income (TotalEnergies share, M$) | 9,645 | 10,636 | -9% | | Adjusted EBITDA (M$) | 25,272 | 36,161 | -30% | | Adjusted Net Operating Income (M$) | 12,575 | 19,958 | -37% | | Fully-diluted EPS ($) | 3.86 | 4.02 | -4% | | Cash Flow from Operating Activities (M$) | 15,033 | 23,901 | -37% | | Net Investments (M$) | 11,011 | 7,798 | +41% | 1H 2023 Commodity Price Environment (vs 1H 2022) | Indicator | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Brent ($/b) | 79.7 | 107.9 | -26% | | Henry Hub ($/Mbtu) | 2.5 | 6.1 | -58% | | NBP ($/Mbtu) | 13.3 | 27.2 | -51% | | JKM ($/Mbtu) | 13.7 | 29.1 | -53% | | Average LNG Price ($/Mbtu) | 11.59 | 13.77 | -16% | - Hydrocarbon production for 1H23 was **2,498 kboe/d**, a **10% decrease** from 1H22, but increased by **2%** year-over-year excluding Novatek[18](index=18&type=chunk) - Scope 1+2 GHG emissions from operated facilities decreased by **6%** in 1H23, driven by reduced gas-fired power plant usage and lower flaring[12](index=12&type=chunk)[13](index=13&type=chunk) [Analysis of Business Segment Results](index=3&type=section&id=B.%20ANALYSIS%20OF%20BUSINESS%20SEGMENT%20RESULTS) Performance is analyzed across five new segments, with most showing reduced earnings except for Integrated Power's growth - TotalEnergies implemented a new reporting structure effective January 1, 2023, with five business segments to enhance visibility, particularly for Integrated LNG and Integrated Power[27](index=27&type=chunk)[28](index=28&type=chunk) - Adjusted financial indicators are used to measure performance, excluding inventory valuation effects, fair value changes, and special items for better economic comparison[21](index=21&type=chunk)[26](index=26&type=chunk) [Exploration & Production](index=6&type=section&id=B.1%20Exploration%20%26%20Production) Adjusted net operating income for 1H23 decreased by 49% due to lower oil and gas prices, despite stable production excluding Novatek E&P Financial and Production Highlights (1H 2023 vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Operating Income (M$) | 5,002 | 9,734 | -49% | | Net Investments (M$) | 6,672 | 5,840 | +14% | | Hydrocarbon Production (kboe/d) | 2,047 | 2,314 | -12% | | Production excl. Novatek (kboe/d) | 2,047 | 2,040 | 0% | - The **49% decline** in 1H23 adjusted net operating income was primarily attributed to lower oil and gas prices[34](index=34&type=chunk) [Integrated LNG](index=7&type=section&id=B.2%20Integrated%20LNG) Adjusted net operating income fell 36% in 1H23, driven by lower LNG prices, while net investments significantly increased Integrated LNG Financial and Sales Highlights (1H 2023 vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Operating Income (M$) | 3,402 | 5,348 | -36% | | Net Investments (M$) | 1,743 | 54 | x32.3 | | Overall LNG Sales (Mt) | 22.0 | 24.9 | -12% | - The decline in adjusted net operating income was mainly due to lower spot and forward LNG prices, and unrepeated exceptional trading results from Q1 2022[40](index=40&type=chunk) - Hydrocarbon production for LNG, excluding Novatek, increased by **8%** in 1H23, driven by improved security in Nigeria and the restart of Snøhvit[36](index=36&type=chunk) [Integrated Power](index=9&type=section&id=B.3%20Integrated%20Power) This segment achieved strong growth in 1H23, with adjusted net operating income more than tripling, supported by renewable capacity expansion Integrated Power Financial and Capacity Highlights (1H 2023 vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Operating Income (M$) | 820 | 258 | x3.2 | | Net Investments (M$) | 1,807 | 1,128 | +60% | | Gross Installed Renewable Capacity (GW) | 19.0 | 11.6 | +63% | | Net Power Production (TWh) | 16.6 | 15.2 | +9% | - Q2 2023 adjusted net operating income was **$450 million**, up **22%** quarter-on-quarter, due to the integrated electricity portfolio's performance[44](index=44&type=chunk) [Refining & Chemicals](index=11&type=section&id=B.5%20Refining%20%26%20Chemicals) Adjusted net operating income decreased by 32% in 1H23, primarily due to lower European refining margins and reduced polymer production Refining & Chemicals Financial and Throughput Highlights (1H 2023 vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Operating Income (M$) | 2,622 | 3,880 | -32% | | Total Refinery Throughput (kb/d) | 1,437 | 1,448 | -1% | | Polymers Production (kt) | 2,074 | 2,461 | -16% | - The decline in earnings reflects lower refining margins in Europe, impacted by Chinese exports and the reorganization of Russian flows[56](index=56&type=chunk) [Marketing & Services](index=13&type=section&id=B.6%20Marketing%20%26%20Services) Adjusted net operating income remained stable in 1H23 despite a 6% decline in petroleum product sales Marketing & Services Financial and Sales Highlights (1H 2023 vs 1H 2022) | Metric | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Operating Income (M$) | 729 | 738 | -1% | | Petroleum Product Sales (kb/d) | 1,379 | 1,464 | -6% | - The segment's operating cash flow (DACF) increased **16%** year-over-year to **$1.2 billion** in 1H23, as 2022 was negatively impacted by tax effects on inventory valuation[66](index=66&type=chunk) [Consolidated Company Results](index=15&type=section&id=C.%20TOTALENERGIES%20RESULTS) Q2 2023 adjusted net income significantly declined due to lower gas prices and refining margins, alongside substantial share buybacks - Adjusted net income for Q2 2023 was **$4,956 million**, compared to **$9,796 million** in Q2 2022, primarily due to lower gas prices and refining margins[67](index=67&type=chunk) - TotalEnergies repurchased **32.8 million shares** for **$2 billion** in Q2 2023 and **65.0 million shares** for **$4 billion** in 1H 2023 as part of its shareholder return policy[68](index=68&type=chunk) - Net cash flow for 1H 2023 was **$7,095 million**, a **58% decrease** from **$17,061 million** in 1H 2022, reflecting decreased cash flow and increased net investments[79](index=79&type=chunk) [Profitability Metrics](index=16&type=section&id=D.%20PROFITABILITY) The company maintained strong profitability in the trailing twelve months ending June 30, 2023, with ROE at 25.2% and ROACE at 22.4% Profitability Ratios (Trailing Twelve Months) | Metric | As of June 30, 2023 | As of March 31, 2023 | As of June 30, 2022 | | :--- | :--- | :--- | :--- | | Return on Equity (ROE) | 25.2% | 29.7% | 27.1% | | Return on Average Capital Employed (ROACE) | 22.4% | 25.4% | 23.1% | [Annual 2023 Sensitivities](index=17&type=section&id=E.%20Annual%202023%20Sensitivities) Earnings and cash flow are highly sensitive to commodity price fluctuations, with liquids prices having the largest impact Estimated Annual Impact of Market Changes | Factor | Change | Impact on Adjusted Net Operating Income (B$) | Impact on Cash Flow from Operations (B$) | | :--- | :--- | :--- | :--- | | Average liquids price | +/- $10/b | +/- 2.5 | +/- 3.0 | | European gas price | +/- $2/Mbtu | +/- 0.4 | +/- 0.4 | | European refining VCM | +/- $10/t | +/- 0.4 | +/- 0.5 | [Summary and Outlook](index=17&type=section&id=F.%20SUMMARY%20AND%20OUTLOOK) TotalEnergies forecasts stable Q3 2023 hydrocarbon production and confirms its full-year investment guidance, including low-carbon energy allocation - The company forecasts Q3 2023 hydrocarbon production to be around **2.5 Mboe/d**, supported by the start-up of the Absheron field in Azerbaijan[83](index=83&type=chunk) - The average LNG selling price is anticipated to be between **$9 and $10/Mbtu** in Q3 2023[83](index=83&type=chunk) - Full-year 2023 net investment guidance is confirmed at **$16 to $18 billion**, including **$5 billion** for low-carbon energy projects[84](index=84&type=chunk) [Supplementary Financial Information](index=19&type=section&id=Supplementary%20Financial%20Information) This section provides detailed operational data, non-GAAP reconciliations, and capital structure metrics [Operating Information by Segment](index=19&type=section&id=Operating%20Information%20by%20Segment) Detailed operational data shows 1H23 hydrocarbon production led by MENA, and significant growth in Integrated Power's renewable capacity 1H 2023 Hydrocarbon Production by Region (kboe/d) | Region | 1H 2023 | 1H 2022 | Change | | :--- | :--- | :--- | :--- | | Europe | 559 | 933 | -40% | | Africa | 488 | 479 | +2% | | Middle East & North Africa | 743 | 675 | +10% | | Americas | 442 | 403 | +10% | | Asia-Pacific | 266 | 301 | -12% | | **Total** | **2,498** | **2,791** | **-10%** | Q2 2023 Installed Renewable Power Gross Capacity by Region (GW) | Region | Solar | Onshore Wind | Offshore Wind | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | North America | 3.5 | 2.1 | 0.0 | 0.1 | 5.6 | | India | 5.1 | 0.4 | 0.0 | 0.0 | 5.5 | | Rest of Europe | 0.2 | 1.1 | 0.8 | 0.0 | 2.1 | | France | 0.8 | 0.6 | 0.0 | 0.1 | 1.6 | | Asia-Pacific | 1.4 | 0.0 | 0.1 | 0.0 | 1.5 | | **Total** | **12.5** | **5.2** | **1.0** | **0.3** | **19.0** | [Reconciliation of Non-GAAP Measures](index=22&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP financial metrics like adjusted net income and EBITDA to their IFRS equivalents - For 1H23, total adjustments affecting net income were **$(1,852) million**, including a **$(771) million** after-tax inventory effect, **$(545) million** from fair value changes, and **$(536) million** in special items, primarily impairments[96](index=96&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (1H 2023) | Item | Amount (M$) | | :--- | :--- | | Net income - TotalEnergies share | 9,645 | | Less: adjustment items | 1,852 | | **Adjusted net income** | **11,497** | | Add: non-controlling interests | 135 | | Add: income taxes | 6,805 | | Add: D&A and impairments | 6,176 | | Add: net financial interest | 659 | | **Adjusted EBITDA** | **25,272** | Reconciliation of Cash Flow from Operations (1H 2023) | Item | Amount (M$) | | :--- | :--- | | Cash flow from operating activities (M$) | 15,033 | | Less: (Increase) decrease in working capital (M$) | (2,269) | | Less: Inventory effect & other (M$) | (792) | | **Operating cash flow before working capital changes (M$)** | **18,106** | [Gearing and ROACE](index=30&type=section&id=Gearing%20and%20ROACE) The company's gearing ratio slightly increased to 11.1% as of June 30, 2023, with ROACE at 22.4% for the trailing twelve months Gearing Ratio | Date | Net Debt (M$) | Shareholders' Equity (M$) | Gearing Ratio | Gearing (incl. leases) | | :--- | :--- | :--- | :--- | :--- | | June 30, 2023 | 14,536 | 116,452 | 11.1% | 16.3% | | March 31, 2023 | 15,350 | 118,444 | 11.5% | 16.5% | | June 30, 2022 | 12,972 | 119,997 | 9.8% | 14.9% | ROACE by Segment (TTM ended June 30, 2023) | Segment | ROACE | | :--- | :--- | | Exploration & Production | 18.4% | | Integrated LNG | 24.2% | | Integrated Power | 10.1% | | Refining & Chemicals | 68.5% | | Marketing & Services | 18.9% | | **Company Total** | **22.4%** | [Consolidated Financial Statements (Unaudited)](index=35&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated income statement, balance sheet, and cash flow statement [Consolidated Statement of Income](index=35&type=section&id=Consolidated%20Statement%20of%20Income) 1H 2023 revenues from sales and consolidated net income both decreased compared to the prior year Consolidated Income Statement Summary (1H 2023 vs 1H 2022) | Metric (M$) | 1H 2023 | 1H 2022 | | :--- | :--- | :--- | | Revenues from sales | 109,767 | 134,395 | | Consolidated net income | 9,783 | 10,855 | | Net income (TotalEnergies share) | 9,645 | 10,636 | | Fully-diluted EPS ($) | 3.86 | 4.02 | [Consolidated Balance Sheet](index=39&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2023, total assets and shareholders' equity decreased compared to the prior year Balance Sheet Summary (as of June 30, 2023) | Item (M$) | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Total Assets | 281,019 | 333,406 | | Cash and cash equivalents | 25,572 | 32,848 | | Total shareholders' equity | 116,452 | 119,997 | | Non-current financial debt | 40,427 | 46,868 | | Total liabilities & shareholders' equity | 281,019 | 333,406 | [Consolidated Statement of Cash Flow](index=40&type=section&id=Consolidated%20Statement%20of%20Cash%20Flow) 1H 2023 saw a significant decrease in operating cash flow and an increase in investing activities, leading to a net cash decrease Consolidated Cash Flow Summary (1H 2023 vs 1H 2022) | Item (M$) | 1H 2023 | 1H 2022 | | :--- | :--- | :--- | | Cash flow from operating activities | 15,033 | 23,901 | | Cash flow used in investing activities | (10,835) | (7,360) | | Cash flow from (used in) financing activities | (11,849) | (3,585) | | Net increase (decrease) in cash | (7,651) | 12,956 | [Notes to the Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details significant changes in company structure, shareholder equity, and contingent liabilities [Changes in Company Structure](index=43&type=section&id=2.%20Changes%20in%20Company%20Structure) TotalEnergies completed key acquisitions in upstream and LNG, while also announcing divestments of Canadian oil sands and retail networks - Acquired a **20% interest** in the SARB and Umm Lulu offshore concession in the UAE from CEPSA, effective January 1, 2023[153](index=153&type=chunk)[156](index=156&type=chunk) - Finalized the acquisition of a **25% interest** in a joint venture with QatarEnergy, holding a **25% stake** in the **32 Mtpa** NFE LNG project[157](index=157&type=chunk) - Announced the sale of its Canadian oil sands assets, including a **50% interest** in the Surmont asset to ConocoPhillips, for approximately **US$3 billion** plus potential additional payments[160](index=160&type=chunk)[162](index=162&type=chunk) [Shareholders' Equity](index=60&type=section&id=4.%20Shareholders%27%20Equity) The company confirmed a €3.81 total dividend for FY2022 and set interim dividends for FY2023 at €0.74 per share - The total dividend for fiscal year 2022 was set at **€3.81 per share**, comprising a **€2.81** ordinary dividend and a **€1.00** exceptional dividend[197](index=197&type=chunk) - The Board of Directors has set the first and second interim dividends for fiscal year 2023 at **€0.74 per share** each[198](index=198&type=chunk)[199](index=199&type=chunk) [Other Risks and Contingent Liabilities](index=63&type=section&id=7.%20Other%20Risks%20and%20Contingent%20Liabilities) Operations in Yemen and Mozambique remain suspended, and the company faces ongoing climate-related legal challenges - Operations at Yemen LNG and Mozambique LNG remain under force majeure due to persistent security concerns in those regions[210](index=210&type=chunk)[211](index=211&type=chunk) - The company is facing several climate-related legal disputes in France and the U.S., considering all such actions to be unfounded[212](index=212&type=chunk)[215](index=215&type=chunk) [Subsequent Events](index=64&type=section&id=8.%20Subsequent%20Events) Post-quarter, TotalEnergies finalized the acquisition of all remaining shares of Total Eren for approximately €1.5 billion - On July 24, 2023, the company finalized the acquisition of all remaining shares of Total Eren Holding and Total Eren SA for a net investment of around **€1.5 billion**[216](index=216&type=chunk)

TotalEnergies SE (NYSE:TTE) Q1 2023 Earnings Conference Call April 27, 2023 7:30 AM ET Company Participants Patrick Pouyanné - Chief Executive Officer Jean-Pierre Sbraire - Chief Financial Officer Conference Call Participants Oswald Clint - Bernstein Christopher Kuplent - Bank of America Irene Himona - Société Générale Martijn Rats - Morgan Stanley Biraj Borkhataria - RBC Michele della Vigna - Goldman Sachs Lydia Rainforth - Barclays Lucas Herrmann - Exane Matt Lofting - JPMorgan Kim Fustier - HSBC Amy Wong ...