TotalEnergies(TTE) - 2024 Q2 - Quarterly Report

Emissions and Environmental Performance - Scope 1+2 emissions decreased by 15% in 2Q24 compared to 2Q23, from 9.1 MtCO2e to 7.7 MtCO2e[1] - Methane emissions decreased by 13% in 2Q24 compared to 2Q23, with operated facilities emissions down by 17% and equity share emissions down by 19%[12] Production and Operations - Hydrocarbon production in 2Q24 was 2,441 kboe/d, a 1% decrease compared to 2Q23[3] - Gas production increased by 6% in 2Q24 compared to 2Q23, reaching 1,123 kboe/d[3] - Total production for 2Q24 was 2,441 kb/d, a 1% decrease compared to 2Q23[78] - Liquids production for 2Q24 was 1,477 kb/d, a 6% decrease compared to 2Q23[78] - Gas production for 2Q24 was 359 Mcf/d, a 6% increase compared to 2Q23[78] - Combined liquids and gas production in Europe increased by 5% year-on-year in Q2 2024, while production in the Americas decreased by 19%[52] - Total consolidated petroleum product sales increased by 3% year-on-year in Q2 2024, with a 14% increase in the Americas and a 9% increase in Europe[53] Financial Performance - Sales in 2Q24 were $53.743 billion, a 4% decrease compared to 2Q23[9] - Net income (TotalEnergies share) in 2Q24 was $3.787 billion, a 7% decrease compared to 2Q23[9] - Adjusted EBITDA in 2Q24 was $11.073 billion, a 0.3% decrease compared to 2Q23[9] - Adjusted net operating income increased by 14% in 2Q24 compared to 2Q23, reaching $2,667 million, with a 4% increase in 1H24 compared to 1H23[16] - Net income for 2Q24 was $3,787 million, a decrease of 7% compared to 2Q23[55] - Adjusted net income for 2Q24 was $4,672 million, slightly lower than 1Q24's $5,112 million[55] - Revenues from sales in 2Q24 were $49,183 million, down 4% compared to 2Q23[56] - Adjusted EBITDA for 2Q24 was $11,073 million, showing a slight decline from 1Q24's $11,493 million[56] - Net income for the first half of 2024 was $9.508 billion, with comprehensive income at $10.004 billion[74] - Consolidated net income for the first half of 2024 was $9,651 million, slightly down from $9,783 million in the same period of 2023[68] - Earnings per share (EPS) for the first half of 2024 increased to $4.04 from $3.88 in the first half of 2023[68] - Comprehensive income for the first half of 2024 was $10,127 million, down from $11,314 million in the first half of 2023[69] - Net income for the first half of 2023 was $9.645 billion, with comprehensive income reaching $11.226 billion[74] - Net income for the second half of 2023 increased to $11.739 billion, with comprehensive income at $11.308 billion[74] - Sales for the first half of 2024 decreased to $110,021 million from $118,874 million in the first half of 2023, representing a 7.4% decline[68] - Consolidated net income for Q2 2024 was $3,847 million, down from $5,804 million in Q1 2024 but up from $4,152 million in Q2 2023[90] - TotalEnergies share of net income for Q2 2024 was $3,787 million, compared to $5,721 million in Q1 2024 and $4,088 million in Q2 2023[90] - Earnings per share for Q2 2024 were $1.61, down from $2.42 in Q1 2024 but up from $1.65 in Q2 2023[90] - Comprehensive income for Q2 2024 was $4,201 million, compared to $5,926 million in Q1 2024 and $4,700 million in Q2 2023[91] - Adjusted EBITDA for Q2 2024 was not explicitly stated, but the company emphasizes its importance as a non-GAAP measure for evaluating profitability[89] - Consolidated net income for the first half of 2024 was $9,651 million, slightly down from $9,783 million in the same period of 2023[97] - Cash flow from operating activities decreased to $11,176 million in the first half of 2024, compared to $15,033 million in the first half of 2023[97] - Total expenditures for investing activities were $10,257 million in the first half of 2024, down from $11,677 million in the same period of 2023[97] - Cash flow used in financing activities was $7,063 million in the first half of 2024, compared to $11,849 million in the first half of 2023[97] - Adjusted net income for 2Q24 was $4.672 billion, a 6% decrease compared to 2Q23, while 1H24 adjusted net income was $9.784 billion, down 15% year-over-year[81] - Adjusted EBITDA for 2Q24 was $11.073 billion, flat compared to 2Q23, while 1H24 adjusted EBITDA was $22.566 billion, down 11% year-over-year[81] Segment Performance - Exploration & Production segment's adjusted net operating income increased by 14% in 2Q24 compared to 2Q23, reaching $2.667 billion[9] - Integrated LNG segment's adjusted net operating income decreased by 13% in 2Q24 compared to 2Q23, reaching $1.152 billion[9] - Integrated Power segment's adjusted net operating income increased by 12% in 2Q24 compared to 2Q23, reaching $502 million[9] - Refining & Chemicals segment's adjusted net operating income decreased by 36% in 2Q24 compared to 2Q23, reaching $639 million[9] - LNG sales decreased by 20% in 2Q24 compared to 2Q23, with overall sales at 8.8 Mt, and a 24% decrease in sales from equity production and third-party purchases[17] - Net power production increased by 10% in 2Q24 compared to 2Q23, with renewable power production up by 61% and gas flexible capacities down by 44%[18] - Refinery throughput increased by 3% in 2Q24 compared to 2Q23, with France showing an 18% increase and the rest of Europe a 6% increase[19] - Petrochemicals production increased by 8% in 2Q24 compared to 2Q23, with monomers up by 8% and polymers up by 15%[19] - Marketing & Services sales in 2Q24 were 1,363 kb/d, down 2% year-on-year, primarily due to lower diesel demand in Europe[21] - Marketing & Services adjusted net operating income in 2Q24 was $379 million, up 49% quarter-to-quarter[22] - Exploration & Production adjusted net operating income in 2Q24 was $2,667 million, a 5% increase quarter-to-quarter[38] - LNG sales in 2Q24 decreased by 18% quarter-to-quarter, primarily due to lower spot purchases[40] - Integrated LNG adjusted net operating income in 2Q24 was $1,152 million, a 6% decrease quarter-to-quarter[40] - Net power production in Q2 2024 was 9.1 TWh, down 5% quarter-to-quarter due to lower demand in Europe, partially offset by a 13% increase in renewable energy production[42] - Integrated Power adjusted net operating income was $502 million in Q2 2024, up 12% year-on-year, but decreased quarter-to-quarter due to seasonality in European electricity demand[42] - Downstream adjusted net operating income was $1,018 million in Q2 2024, down 30% year-on-year, with a 33% decline in the first half of 2024 compared to the same period in 2023[43] - Refining & Chemicals adjusted net operating income was $639 million in Q2 2024, down 34% quarter-to-quarter due to lower refining margins in Europe and the Middle East[44] - ROACE for Exploration & Production was 16.6%, while Refining & Chemicals had the highest ROACE at 39.4%[63] - The Exploration & Production segment operates in about 50 countries, focusing on oil and natural gas exploration and production[105] - The Integrated Power segment covers generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity[105] - The Integrated LNG segment's operating income was impacted by changes in the fair value of gas and LNG positions, which are allocated to its operating income[133] - External sales for the first half of 2024 totaled $110,021 million, with the Refining & Chemicals segment contributing the highest at $49,049 million[137] - Operating expenses for the first half of 2024 amounted to $81,454 million, with the Refining & Chemicals segment accounting for $62,535 million[137] - Adjusted net operating income for the first half of 2024 was $10,596 million, with the Exploration & Production segment contributing $5,217 million[137] - The Integrated LNG segment includes the management of balance sheet positions related to centralized markets access for LNG, gas, and power activities, with fair value changes allocated to operating income[180] Investments and Cash Flow - Cash flow from operating activities decreased by 5% in 1H24 compared to 1H23, totaling $8,125 million, with a 12% increase in 2Q24 compared to 2Q23[16] - Organic investments increased by 63% in 2Q24 compared to 2Q23, reaching $624 million, with a 49% increase in 1H24 compared to 1H23[17] - TotalEnergies repurchased 28.1 million shares in 2Q24 for $2 billion[23] - Cash flow from operating activities in 2Q24 was $9,007 million, impacted by a $1.2 billion decrease in working capital[24] - Cash flow from operating activities for Exploration & Production in 2Q24 was $4,535 million, a 12% increase compared to 2Q23[60] - Cash flow from operations excluding working capital (CFFO) for Exploration & Production in 2Q24 was $4,353 million, showing stability compared to 2Q23[60] - Cash flow from operating activities (CFFO) for 2Q24 was $1,647 million, a decrease of 28% compared to 2Q23[61] - Cash flow from operations excluding working capital (CFFO) for 2Q24 was $623 million, an increase of 27% compared to 2Q23[61] - Net debt as of 06/30/2024 was $13,682 million, a decrease from $14,536 million in 06/30/2023[62] - Gearing ratio as of 06/30/2024 was 10.2%, down from 11.1% in 06/30/2023[62] - Capital employed at 06/30/2024 was $140,180 million, up from $137,372 million in 06/30/2023[63] - Dividend paid to parent company shareholders in 1H24 was $3,756 million, up from $3,686 million in 1H23[62] - Payout ratio for 1H24 was 45%, compared to 42% in 1H23[62] - Working capital as of 06/30/2024 was $(9,041) million, compared to $(7,402) million in 06/30/2023[63] - Cash flow from operating activities in the second quarter of 2024 was $9,007 million, compared to $9,900 million in the second quarter of 2023[72] - Total expenditures for investing activities in the second quarter of 2024 were $5,052 million, up from $4,777 million in the same quarter of 2023[72] - Cash and cash equivalents at the end of the second quarter of 2024 stood at $23,211 million, down from $25,572 million at the end of the second quarter of 2023[72] - Intangible assets, net, increased to $33,477 million in the first half of 2024 from $31,717 million in the first half of 2023[70] - Property, plant, and equipment, net, rose to $109,403 million in the first half of 2024 from $104,174 million in the first half of 2023[70] - Total current assets decreased to $91,796 million in the first half of 2024 from $104,797 million in the first half of 2023[70] - Total expenditures for the first half of 2024 amounted to $10.257 billion, with the largest contributions from Exploration & Production ($4.991 billion) and Integrated Power ($2.508 billion)[112] - Total divestments in the first half of 2024 reached $2.232 billion, primarily driven by Exploration & Production ($455 million) and Integrated LNG ($79 million)[112] - Cash flow from operating activities for the first half of 2024 was $11.176 billion, with significant contributions from Exploration & Production ($8.125 billion) and Marketing & Services ($1.542 billion)[112] - External sales for the first half of 2023 totaled $118.874 billion, with the Refining & Chemicals segment contributing the largest share at $49.704 billion[112] - In February 2024, TotalEnergies completed the sale of a 15% interest in the Absheron gas field to ADNOC, reducing its stake to 35%[121] - In January 2024, TotalEnergies finalized the divestment of its retail network in Belgium, Luxembourg, and the Netherlands to Alimentation Couche-Tard for $1.4 billion[123] - As of June 30, 2024, assets related to Nkossa and Nsoko II licenses were classified as "held for sale" with a value of $432 million, while liabilities were classified at $302 million[124] - Cash flow used in investing activities for Integrated LNG in 2Q24 was $815 million, a 40% increase compared to 2Q23[57] - Organic investments in Integrated LNG for 2Q24 were $624 million, a 63% increase compared to 2Q23[57] - Cash flow used in investing activities for Refining & Chemicals in 2Q24 was $316 million, a 28% decrease compared to 2Q23[58] - Organic investments in Refining & Chemicals for 2Q24 were $382 million, a 16% decrease compared to 2Q23[58] - Net investments in exploration & production for 2Q24 totaled $2.642 billion, a 2% increase compared to 2Q23, with 1H24 net investments at $4.719 billion, down 29% year-over-year[82] - Capitalized exploration expenses decreased significantly to $88 million in 2Q24, a 73% drop compared to 2Q23[82] - Organic investments in renewable projects financing increased by 7% in 2Q24 compared to 2Q23, reaching $2.585 billion[82] - Cash flow from operating activities in 2Q24 was $9,007 million, a 9% decrease compared to 2Q23[85] - Net investments in 2Q24 were $508 million, a 29% decrease compared to 2Q23[83] - Acquisitions in 2Q24 totaled $142 million, a 3.2x increase compared to 2Q23[83] - Organic investments in 2Q24 were $596 million, a 21% decrease compared to 2Q23[83] - Cash flow used in investing activities for Marketing & Services in 2Q24 was $337 million, a 48% increase compared to 2Q23[84] - Free cash flow after organic investments in 2Q24 was $3,367 million, a 20% decrease compared to 2Q23[85] - Net cash flow in 2Q24 was $3,147 million, a 19% decrease compared to 2Q23[85] - Cash flow from operations excluding working capital (CFFO) for Integrated LNG in 2Q24 was $1,220 million, a 32% decrease compared to 2Q23[86] - Cash flow from operations excluding working capital (CFFO) for Refining & Chemicals in 2Q24 was $1,117 million, a 16% decrease compared to 2Q23[87] - Total organic investments in 1H24 were $8,482 million, a 10% increase compared to 1H23[85] - TotalEnergies finalized the acquisition of three gas-fired power plants in Texas with a total capacity of 1.5 GW for a net investment of $635 million in February 2024[145] - TotalEnergies fully reimbursed €1,500 million of perpetual subordinated notes on April 4th, 2024[169] - TotalEnergies issued perpetual subordinated notes, including a $1,250 million tranche at 5.150% maturing in April 2034 and a €950 million bond at 5.125% maturing in March 2024[188] Renewable Energy and Power Generation - Portfolio of renewable power generation gross capacity increased by 17% in 2Q24 compared to 2Q23, reaching 87.4 GW[18] - Net power production increased by 10% in 2Q24 compared to 2Q23, with renewable power production up by 61% and gas flexible capacities down by 44%[18] - Total installed power generation net capacity in 2Q24 was