TotalEnergies : Financial report 1st half 2021 (pdf - 987 KB)

Financial report

First half 2021

Table of contents

Certification of the person responsible for the
half-year financial report	1
Glossary	2

01		02
Half year financial report	3	Consolidated Financial Statements as of June 30, 2021	21

1.1 Highlights since the beginning of 2021

1.2  Key figures from TotalEnergies' consolidated financial statements 1.3  Key figures of environment, greenhouse gas emissions and production

1. 1. Environment - liquids and gas price realizations, refining margins
   2. Greenhouse gas emissions
   3. Production
2. Analysis of business segments
3. 1. Integrated Gas, Renewables & Power (iGRP)
   2. Exploration-Production
   3. Downstream (Refining & Chemicals and Marketing & Services)
4. TotalEnergiesresults
5. 1. Adjusted net operating income from business segments
   2. Adjusted net income (TotalEnergies share)
   3. Adjusted earnings per share
   4. Acquisitions - asset sales
   5. Net cash flow
   6. Profitability
6. TotalEnergies SE accounts
7. 2021 Sensitivities
8. Summary and outlook
9. Other information
10. 1. Operating information by segment

1.9.2  Adjustment items to net income (TotalEnergies share)

1. 1. Reconciliation of adjusted EBITDA with consolidated financial statements
   2. Investments - Divestments
   3. Cash-flow
   4. Gearing ratio
   5. Return on average capital employed
2. Principal risks and uncertainties for the remaining six months of 2021
3. Major related parties' transactions

3 2.1 Statutory Auditors' Review Report on the half-yearly Financial Information 21

5	2.2	Consolidated statement of income - half-yearly	22
6	2.3	Consolidated statement of comprehensive income - half-yearly	23
6	2.4	Consolidated statement of income - quarterly	24
6	2.5	Consolidated statement of comprehensive income - quarterly	25
6	2.6	Consolidated balance sheet	26
7
2.7	Consolidated statement of cash flow - half-yearly	27
7
2.8	Consolidated statement of cash flow - quarterly	28
8
2.9	Consolidated statement of changes in shareholders' equity	29
9

2.10 Notes to the Consolidated Financial Statements for the first

11	six months 2021		30
11
1)	Accounting policies	30
11
2)	Changes in the Company structure	30
11
3)	Business segment information	31
11
4)	Shareholders' equity	42
11
5)	Financial debt	44
11
6)	Related parties	44
12
7)	Other risks and contingent liabilities	44
12	8)	Subsequent	events	44
12

13

13

15

15

16

17

17

18

18

18

The French language version of this Rapport financier semestriel (half-year financial report) was filed with the French Financial Markets Authority (Autorité des marchés financiers) on July 30, 2021 pursuant to paragraph III of Article L. 451-1-2 of the French Monetary and Financial Code

Financial report 1st half 2021

Certification of the person responsible for the half-year financial report

This translation is a non binding translation into English of the Chairman and Chief Executive Officer's certification issued in French, and is provided solely for the convenience of English-speaking readers.

"I certify, to the best of my knowledge, that the condensed Consolidated Financial Statements of TotalEnergies SE (the Corporation) for the first half of 2021 have been prepared in accordance with the applicable set of accounting standards and give a fair view of the assets, liabilities, financial position and profit or loss of the Corporation and all the entities included in the consolidation, and that the half-year financial report on pages 3 to 20 herein includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements, major related parties transactions and the principal risks and uncertainties for the remaining six months of the financial year.

The statutory auditors' report on the limited review of the above-mentioned condensed Consolidated Financial Statements is included on page 21 of this half-year financial report."

Courbevoie, July 29, 2021

Patrick Pouyanné

Chairman and Chief Executive Officer

1

Glossary

The terms "TotalEnergies" and "TotalEnergies company" as used in this document refer to TotalEnergies SE collectively with all of its direct and indirect consolidated companies located in or outside of France. The term "Corporation" as used in this document exclusively refers to TotalEnergies SE, which is the parent company of TotalEnergies company.

Abbreviations

€ :	euro
$ or dollar : US dollar
ADR :	American depositary receipt (evidencing an ADS)
ADS :	American depositary share (representing a share of a
	company)
AMF :	Autorité des marchés financiers (French Financial Markets
	Authority)
API :	American Petroleum Institute
CO2 :	carbon dioxide
DACF :	debt adjusted cash flow is defined as operating cash flow
	before working capital changes without financial charges
EV :	electric vehicle
FLNG :	floating liquefied natural gas
FPSO :	floating production, storage and offloading
FSRU :	floating storage and regasification unit
GHG :	greenhouse gas
HSE :	health, safety and the environment
IFRS :	International Financial Reporting Standards
IPIECA :	International Petroleum Industry Environmental
	Conservation Association
LNG :	liquefied natural gas
LPG :	liquefied petroleum gas
NGL :	natural gas liquids
NGV :	natural gas vehicle
OML :	oil mining lease
PPA :	Power Purchase Agreement
ROACE :	return on average capital employed
ROE :	return on equity
SEC :	United States Securities and Exchange Commission
VCM :	variable cost margin - Refining Europe

This indicator represents the average margin on variable costs realized by TotalEnergies' European refining busines. It is 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.

Units of measurement

b = barrel(1) b = billion

Bcm = billion of cubic meters boe = barrel of oil equivalent btu = British thermal unit

cf = cubic feet

CO2e = CO2 equivalent /d = per day

GtCO2 = billion of CO2 tons GW = gigawatt

GWh = gigawatt hour k = thousand

km = kilometer m = meter

m³ = cubic meter(1) M = million

MW = megawatt PJ = petajoule t = (Metric) ton

toe = ton of oil equivalent TWh = terawatt hour

W = watt

Wac = AC watt

Wp = watt-peak or watt of peak power /y = per year

Conversion table

1 acre ≈ 0.405 hectares

1 b = 42 gallons US ≈ 159 liters

1 b/d of crude oil ≈ 50 t/y of crude oil 1 km ≈ 0.62 miles

1 m³ ≈ 35.3 cf

1 Mt de LNG ≈ 48 Bcf of gas

1 Mt/y of LNG ≈ 131 Mcf/d of gas

1 t of oil ≈ 7.5 b of oil (assuming a specific gravity of 37° API)

1 boe = 1 b of crude oil ≈ 5,399 cf of gas in 2020(2)

(5,395 cf in 2019 and 5,387 cf in 2018)

1. Liquid and gas volumes are reported at international standard metric conditions (15°C and 1 atm).
2. Natural gas is converted to barrels of oil equivalent using a ratio of cubic feet of natural gas per one barrel. This ratio is based on the actual average equivalent energy content of TotalEnergies' natural gas reserves during the applicable periods and is subject to change. The tabular conversion rate is applicable to TotalEnergies natural gas reserves on a Company-wide basis.

2	Financial report - First half 2021

Half year financial report	01
Highlights since the beginning of 2021

01Half year financial report

1.1 Highlights since the beginning of 2021(1)

Sustainability

• Total transforms and becomes TotalEnergies, with a new visual identity
• TotalEnergies' Board of Directors takes the initiative to submit a resolution on the Company's ambition for sustainable development and energy transition toward carbon neutrality
• Consistent with its climate policy, TotalEnergies withdraws from the American Petroleum Institute
• Inauguration of L'Industreet, a campus for training young people in the industry profession, TotalEnergies' flagship action for social responsibility in France
• 3rd place globally and 1st place for the sector Oil and Gas in the BloombergNEF ranking on the alignment of corporate strategies with the United Nations' Sustainable Development Goals
• TotalEnergies and Chevron decide to suspend distribution of dividends from gas transport company in Myanmar
• Partnership with Novatek to reduce emissions from LNG production, develop large-scale carbon capture and storage, and study carbon-free hydrogen and ammonia projects
• Partnership with GHGSat for satellite-based monitoring of methane emissions at sea

Renewables and Electricity

• Acquired in India 20% of Adani Green Energy
  Limited (AGEL), the largest solar developer in the world
• Secured with Macquarie rights to seabed lease to jointly develop 1.5 GW offshore wind project in the UK
• Acquired 4 GW portfolio of solar and energy storage projects in the US
• Farmed down 50% of two renewables portfolios in France representing close to 340 MW
• Acquired 23% stake in 640 MW offshore wind project under construction in Taiwan
• Acquisition by Adani Green Energy Ltd., in which TotalEnergies has a 20% stake, of a portfolio of 5 GW of renewable electricity generation capacity in operation and under construction in India that will contribute 1 GW to TotalEnergies' target of 35 GW in 2025
• Signed major green power sale agreement to
  Orange to develop 80 MW of solar farms in France
• Signed contract with Merck & Co. for the sale of 90 GWh/y renewable electricity in Spain for 10 years
• Sales contract for 50GWh/y over 15 years with
  Air Liquide in Belgium
• Partnered with Microsoft to support digital innovation and carbon neutrality goals
• Partnership with Amazon to supply (474 MW) renewable electricity to its data centers in Europe and the United States, and to accelerate TotalEnergies digital transformation

	(1) Certain transactions referred to in the highlights are subject to approval by authorities or to conditions as per the agreements.
Financial report - First half 2021	3