TOTALENERGIES SE The return on average capital employed was 4.6% for the twelve months ended March 31, 2021.
In millions of
dollars April 1, 2020 January 1, 2020 April 1, 2019
March 31, 2021 December 31, 2020 March 31, 2020
Adjusted net
operating income 6,915 5,806 13,032
Average capital
employed 148,777 145,723 150,418
ROACE 4.6% 4.0% 8.7%
Total SE accounts
Net income for Total SE, the parent company, was EUR1,472 million in the first quarter 2021 compared to EUR1,718 in the first quarter 2020.
2021 Sensitivities*
Estimated impact Estimated impact
on adjusted net on cash flow from
Change operating income operations
Dollar +/- 0.1 $ per EUR -/+ 0.1 B$ 0 B$
Average liquids
price** +/- 10 $/b +/- 2.7 B$ +/- 3.2 B$
European gas price
- NBP ($/Mbtu) +/- 1 $/Mbtu +/- 0.3 B$ +/- 0.25 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 the Group's portfolio in 2021. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-EUR sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 19.
** In a 50 $/b Brent environment.
Summary and outlook
Supported by the OPEC+ active policy to reduce inventories by adapting supply to demand, the oil price has remained above $60/b since the beginning of February 2021. However, the oil environment remains volatile and dependent on the global demand recovery, still affected by the Covid-19 pandemic.
The Group maintains its expectation for stable hydrocarbon production in 2021 compared to 2020, benefiting from the resumption of production in Libya.
Total anticipates that the increase in the oil price observed in the first quarter will have a positive impact on its average LNG selling price over the next six months, given the lag effect on pricing formulas.
Given the high level of distillate inventories, European refining margins remain fragile.
Faced with uncertainties in the environment, the Group maintains spending discipline with an operating cost savings target of $0.5 billion in 2021 and production costs close to $5/boe. Net investments are expected to be between $12-13 billion in 2021, half to maintain the Group's activities and half for growth. Nearly 50% of these growth investments will be allocated to renewables and electricity.
The Group's teams are fully committed to the four priorities of HSE including the objectives in terms of CO(2) emission reductions, operational excellence, cost reduction and cash flow generation.
In a 2021 hydrocarbon price environment maintained at the level of the first quarter (Brent at $60/b, European gas at $6/Mbtu), and with European refining margins at $10-15/t, the Group would expect to generate cash flow (DACF) on the order of $24 billion and a return on capital employed of close to 10%.
The Group confirms its priorities in terms of cash flow allocation: investing in profitable projects to implement its strategy to transform the Group into a broad-energy company, supporting the dividend through economic cycles, and maintaining a solid balance sheet with a minimum long-term "A" rating, by deleveraging to anchor the net debt-to-capital ratio sustainably below 20%.
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To listen to the conference call with CFO Jean-Pierre Sbraire today at 13:30 (Paris time) please log on to total.com or call +44 (0) 203 009 5709 in Europe or +1 646 787 1226 in the United States (code: 3046396).
The conference replay will be available on total.com after the event.
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Operating information by segment
> Group production (Exploration & Production + iGRP)
1Q21 1Q21
Combined liquids and gas vs vs
production by region (kboe/d) 1Q21 4Q20 1Q20 1Q20 1Q19 1Q19
Europe and Central Asia 1,050 1,059 1,097 -4% 990 +6%
Africa 551 566 701 -21% 697 -21%
Middle East and North Africa 651 598 681 -4% 686 -5%
Americas 376 382 372 +1% 373 +1%
Asia-Pacific 235 236 235 - 201 +17%
Total production 2,863 2,841 3,086 -7% 2,946 -3%
includes equity affiliates 729 727 753 -3% 709 +3%
1Q21 1Q21
vs vs
Liquids production by region (kb/d) 1Q21 4Q20 1Q20 1Q20 1Q19 1Q19
Europe and Central Asia 374 378 404 -7% 352 +6%
Africa 415 427 555 -25% 540 -23%
Middle East and North Africa 499 454 516 -3% 522 -4%
Americas 179 181 178 +1% 177 +1%
Asia-Pacific 41 43 47 -13% 39 +5%
Total production 1,508 1,483 1,699 -11% 1,629 -7%
includes equity affiliates 201 200 214 -6% 217 -7%
1Q21 1Q21
vs vs
Gas production by region (Mcf/d) 1Q21 4Q20 1Q20 1Q20 1Q19 1Q19
Europe and Central Asia 3,636 3,666 3,734 -3% 3,426 +6%
Africa 693 701 746 -7% 795 -13%
Middle East and North Africa 843 809 912 -8% 905 -7%
Americas 1,100 1,126 1,092 +1% 1,101 -
Asia-Pacific 1,128 1,104 1,076 +5% 940 +20%
Total production 7,400 7,406 7,560 -2% 7,167 +3%
includes equity affiliates 2,855 2,851 2,905 -2% 2,656 +8%
> Downstream (Refining & Chemicals and Marketing & Services)
1Q21 1Q21
Petroleum product sales by region vs vs
(kb/d) 1Q21 4Q20 1Q20 1Q20 1Q19 1Q19
Europe 1,488 1,651 1,771 -16% 2,022 -26%
Africa 667 628 683 -2% 658 +1%
Americas 772 794 766 +1% 839 -8%
Rest of world 495 547 444 +11% 616 -20%
Total consolidated sales 3,422 3,619 3,663 -7% 4,135 -17%
Includes bulk sales 331 458 497 -33% 557 -41%
Includes trading 1,648 1,652 1,510 +9% 1,742 -5%
1Q21 1Q21
vs vs
Petrochemicals production* (kt) 1Q21 4Q20 1Q20 1Q20 1Q19 1Q19
Europe 1,346 1,381 1,272 6% 1,416 -5%
Americas 510 662 664 -23% 614 -17%
Middle East and Asia 714 735 652 +9% 660 +8%
* Olefins, polymers
> Renewables
1Q21 4Q20
Installed
power
generation
gross
capacity (GW) Onshore Onshore
(1,2) Solar Wind Other Total Solar Wind Other Total
France 0.4 0.5 0.1 1.0 0.4 0.5 0.1 1.0
Rest of
Europe 0.1 0.8 0.1 1.0 0.1 0.8 0.1 1.0
Africa 0.1 0.0 0.0 0.1 0.1 0.0 0.0 0.1
Middle East 0.3 0.0 0.0 0.3 0.3 0.0 0.0 0.3
North America 0.8 0.0 0.0 0.8 0.6 0.0 0.0 0.6
South America 0.2 0.1 0.0 0.3 0.2 0.1 0.0 0.2
India 3.4 0.1 0.0 3.5 3.3 0.0 0.0 3.3
Asia-Pacific 0.7 0.0 0.0 0.7 0.5 0.0 0.0 0.5
Total 6.1 1.5 0.1 7.8 5.6 1.3 0.1 7.0
1Q21 4Q20
Power
generation
gross
capacity from
renewables in
construction
to 2025 (GW) Onshore Offshore Onshore Offshore
(1,2) Solar Wind Wind Other Total Solar Wind Wind Other Total
France 0.3 0.0 0.0 0.1 0.4 0.3 0.0 0.0 0.0 0.3
Rest of
Europe 0.1 0.3 1.1 0.0 1.5 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 0.3 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.1
South America 0.2 0.2 0.0 0.0 0.3 0.2 0.3 0.0 0.0 0.4
India 0.9 0.4 0.0 0.0 1.3 0.5 0.0 0.0 0.0 0.5
Asia-Pacific 0.4 0.0 0.0 0.0 0.5 0.5 0.0 0.0 0.0 0.5
Total 2.9 0.9 1.1 0.1 5.1 2.3 0.6 1.1 0.1 4.1
1Q21 4Q20
Power
generation
gross
capacity from
renewables in
development (MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0610ET
