The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on July 24, 2024, to approve the second quarter 2024 financial statements. On the occasion, Patrick Pouyanné said:
“TotalEnergies generated robust financial results in the second quarter, with adjusted net income of $4.7 billion and cash flow of $7.8 billion resulting in first half adjusted net income and cash flow of close to $10 billion and
$16 billion, respectively.

During the first half of 2024, TotalEnergies has completed important steps in advancing the balanced transition strategy presented to shareholders at our Investor Day in September 2023:
-within the Oil & Gas pillar, TotalEnergies took final investment decision on several Upstream projects that are the stepping stones to achieve its objectives of growing upstream production by 2-3%/year and growing underlying cash flow: Kaminho in Angola, Sépia 2 and Atapu 2 in Brazil, Marsa LNG in Oman and the Ubeta gas project in Nigeria that supplies Nigeria LNG;
-within the Integrated Power pillar, TotalEnergies has fortified its Integrated Power portfolio with the acquisition of several flexible assets that allow the Company to extract maximum value out of its renewable assets in three key markets: CCGTs in Texas and the UK, and a renewables aggregator and battery developer in Germany.

During the second quarter, upstream production was 2.44 Mboe/d, benefiting from high availability of production facilities. Exploration & Production posted $2.7 billion of adjusted net operating income and $4.4 billion of cash flow, in line with the evolution of the oil and gas price environment. The Company further highgraded its portfolio, notably through acquisitions in Malaysia and deep offshore Congo, and divestments of mature assets in Nigeria, Congo, the UK and in Brunei.

Integrated LNG posted adjusted net operating income and cash flow of $1.2 billion this quarter, reflecting the average LNG price. TotalEnergies actively continues to increase medium-term oil exposure within its LNG portfolio by signing two new mid-term Brent-indexed LNG sales contracts in Asia for 1.3 Mt/y.

Integrated Power reported adjusted net operating income of $0.5 billion and cash flow of $0.6 billion with a return on capital employed above 10%. First half 2024 cash flow is $1.3 billion, in line with the annual guidance of more than $2.5 billion.

Downstream posted adjusted net operating income of $1.0 billion and cash flow of $1.8 billion, wherein the less favorable refining margin environment was partially compensated by higher refinery utilization and sequential results from marketing activities benefitting from cheaper supply.

During the quarter, TotalEnergies successfully issued conventional senior bonds on the US market totalling
$4.25 billion, with a 27-year average maturity. The Board of Directors decided to retain flexibility on the format of its senior bonds issuances while also prioritizing long maturity.
Comforted by robust results at mid-year, in line with 2024 objectives, the Board of Directors decided to maintain the second interim dividend at 0.79 €/share for fiscal year 2024, an increase close to 7% compared to 2023, and authorized the Company to buy back shares for up to $2 billion in the third quarter of 2024.

The Board also highlighted the recent success of the Capital increase reserved for employees, which brings TotalEnergies’ employee ownership to more than 8% of the Company’s share capital, and the strong shareholder support for all the resolutions submitted to vote at the Annual General Meeting.”

1.Highlights (2)
Social and environmental responsibility
•Ambition of giving access to clean cooking to 100 million people in Africa and India by 2030, announced at the Clean Cooking Summit organized by the IEA in Paris,
•Partnership with SLB on digital innovation and solarization, for a more sustainable energy

Upstream
•Production start-up of Eldfisk North and Kristin South in Norway
•Launch of Kaminho, a 70,000 b/d oil project in the Kwanza basin, in Angola
•Launch of Sépia 2 and Atapu 2, two 225,000 b/d oil projects in Brazil
•Agreement on field development areas and securing of the FPSO hull in Block 58 in Suriname, key milestones toward a Final Investment Decision that is expected in the second half of 2024
•Agreements with OMV and Sapura Upstream Assets to acquire 100% of SapuraOMV, an independent gas producer and operator, in Malaysia
•Agreement with Trident Energy for the acquisition of an additional 10% interest in the Moho field and disposal of Nkossa in Congo
•Agreement with Chappal Energies for the divestment from the 10% interest in the SPDC JV in Nigeria, while retaining gas economical interest to ensure NLNG gas supply
•Agreement with Hibiscus Petroleum Berhad for the divestment of the subsidiary in Brunei
•Agreement with The Prax Group for the divestment from the West of Shetland gas assets in the United Kingdom
•Acquisition of an interest in an offshore exploration block, in Sao Tome and Principe

Downstream
•Acquisition of Tecoil, a lubricant used oil regeneration specialist based in Finland

Integrated LNG
•Launch of the 1 Mt/y Marsa LNG project, a fully electrified and very low-emission (3 kg CO2/boe) LNG plant in Oman, supplied by a 300 MW solar farm
•Entry in Ruwais LNG, a low-emission LNG project in the United Arab Emirates
•Launch of the Ubeta onshore gas development to supply Nigeria LNG
•Acquisition of interests in the Dorado leases in the Eagle Ford shale gas play in Texas
•Signature of two LNG contracts to Asia: 0.8 Mt/y over 10 years to IOCL in India and 0.5 Mt/y over 5 years to Korea South East

Power in South Korea
Integrated Power
•Acquisition of a 1.3 GW gross capacity CCGT in the United Kingdom
•Award of a maritime lease to develop a 1.5 GW offshore wind farm in Germany
•Launch of a 100 MW battery storage project developed by Kyon Energy in Germany
•Launch of a joint-venture with SSE to grow electric mobility in the UK and Ireland

Decarbonization and low-carbon molecules
•Agreement with Air Products for delivery of 70 kt/y of green hydrogen over 15 years, in the large-scale tender launched by the Company to decarbonize its European refineries
•Acquisition of 50% of a 795 MW offshore wind farm in the Netherlands, to produce green hydrogen to decarbonize TotalEnergies’ European refineries

3.3Production (14)
Hydrocarbon production was 2,441 thousand barrels of oil equivalent per day in the second quarter 2024, down 1% quarter-to-quarter, due to higher planned maintenance, notably in the North Sea.

Hydrocarbon production in the second quarter 2024 was up 3% year-on-year (excluding Canada) and was comprised of:
• +2% due to projects start-ups and ramp-ups, including Mero 2 in Brazil, Block 10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria and Absheron in Azerbaijan,
• +1% portfolio effect related to entry in the producing fields of Ratawi in Iraq and Dorado in the United States, partially offset by the divestment from Dunga in Kazakhstan,
• +3% due to the higher availability of production facilities,
•-3% due to the natural field decline.

When taking into account the Canadian oil sands assets disposals, production was down 1% year-on-year.

4.Analysis of business segments
4.1Exploration & Production
Exploration & Production adjusted net operating income was $2,667 million in the second quarter 2024, up 5% quarter-to-quarter, driven by higher oil prices that were partially compensated by lower gas realizations and production.
Cash flow from operations excluding working capital (CFFO) was $4,353 million in the second quarter 2024, down 3% quarter-to-quarter. The difference in quarterly variation between adjusted net operating income and CFFO is mainly linked to the tax impact of an overlift position at the end of the quarter in Norway.

4.2Integrated LNG
4.2.1Production
Hydrocarbon production for LNG in the second quarter 2024 was up 1% quarter-to-quarter, notably linked to the entry into the Dorado gas field (Eagle Ford basin) in the United States early in the second quarter 2024.

LNG sales decreased by 18% quarter-to-quarter, notably due to lower spot purchases, in a context of lower LNG demand in Europe.

Integrated LNG adjusted net operating income was $1,152 million in the second quarter 2024, down 6% quarter-to-quarter, linked to lower LNG prices and sales. Moreover, gas trading did not fully benefit in markets characterized by lower volatility than during first half of 2023.

Cash flow from operations excluding working capital (CFFO) was $1,220 million in the second quarter 2024, down 9% quarter-to-quarter, for the same reasons.

4.3Integrated Power
4.3.1Productions, capacities, clients and sales
Net power production was 9.1 TWh in the second quarter 2024, down 5% quarter-to-quarter and linked to lower production from flexible gas assets due to lower demand in Europe, partially compensated by production from renewable sources, which was up 13%.

Gross installed renewable power generation capacity reached 24.0 GW at the end of the second quarter 2024, up 0.5 GW quarter-to-quarter and including 0.2 GW installed in the United States and 0.2 GW in India.

Integrated Power adjusted net operating income was $502 million in the second quarter 2024, up 12% year- on-year, reflecting activity growth. The decrease in adjusted net operating income quarter-to-quarter reflects in particular the seasonality of electricity demand in Europe.

Cash flow from operations excluding working capital (CFFO) was $623 million, up 27% year-on-year and down 10% quarter-to-quarter, for the same reasons.

Integrated Power adjusted net operating income was $1,113 million in the first half 2024, up 36% year-on-year reflecting activity growth.
Cash flow from operations excluding working capital (CFFO) was $1,315 million, up 41% year-on-year, for the same reason.

4.5Refining & Chemicals
4.5.1Refinery and petrochemicals throughput and utilization rates
Refining throughput was up 6% quarter-to-quarter in the second quarter, mainly due to lower planned maintenance. Utilization rate was 84.5% in the second quarter 2024.

4.5.2Results
Refining & Chemicals adjusted net operating income was $639 million in the second quarter 2024, down 34% quarter-to-quarter, due to lower refining margins mainly in Europe (ERM was down 37% quarter-to-quarter) and the Middle East that were partially compensated by the increase in the refineries’ utilization rate.

Cash flow from operations excluding working capital (CFFO) was $1,117 million, down 13% quarter-to-quarter, for the same reasons.

4.6Marketing & Services
4.6.1Petroleum product sales
Sales of petroleum products in the second quarter 2024 were down year-on-year by 2%, mainly due to lower diesel demand in Europe that was partially compensated by higher activity in the aviation business.

4.6.2Results
Marketing & Services adjusted net operating income was $379 million for the second quarter 2024, up 49% quarter-to-quarter, benefiting from higher margins due to lower refining margins.
Cash flow from operations excluding working capital (CFFO) was $659 million in the second quarter 2024, up 38% quarter-to-quarter for the same reason.

5.TotalEnergies results
5.1Adjusted net operating income from business segments

Adjusted net operating income from business segments was:
•$5,339 million in the second quarter 2024 versus $5,600 million in the first quarter 2024, mainly due to lower refining margins,
•$10,939 million in the first half 2024 versus $12,575 million in the first half 2023, linked to lower refining margins, and lower gas and LNG prices.
5.2Adjusted net income (1) (TotalEnergies share)
TotalEnergies adjusted net income was $4,672 million in the second quarter 2024 versus $5,112 million in the first quarter 2024, mainly due to lower refining margins.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value.

Adjustments to net income were ($885) million in the second quarter 2024 consisting mainly of ($0.3) billion in inventory effects and ($0.3) billion in effects of changes in fair value.

TotalEnergies’ average tax rate was:
•40.4% in the second quarter 2024 versus 37.8% in the first quarter 2024, notably due to the increase in the relative weight of Upstream in the Company’s results,
•39.0% in the first half 2024 versus 39.7% a year ago, notably due to a lower Exploration & Production tax rate that is linked to lower European gas prices.

5.3Adjusted earnings per share
Adjusted diluted net earnings per share were:
•$1.98 in the second quarter 2024, based on 2,328 million weighted average diluted shares, compared to
$2.14 in the first quarter 2024,
•$4.14 in the first half 2024, based on 2,333 million weighted average diluted shares, compared to $4.61 a year ago,
As of June 30, 2024, the number of diluted shares was 2,328 million. TotalEnergies repurchased:
•28.1 million shares in the second quarter 2024 for $2 billion,
•58.7 million shares in the first half 2024 for $4 billion.

5.4Acquisitions – asset sales
Acquisitions were:
•$544 million in the second quarter 2024, primarily related to the acquisitions of a 20% interest in the Dorado gas field in the United States and of the German renewable energy aggregator Quadra Energy,
•$1,618 million in the first half 2024, related to the above elements as well as the acquisition of 1.5 GW of flexible gas capacity in Texas, battery storage developer Kyon in Germany, and Talos Low Carbon Solutions, in the carbon storage industry in the United States.

Divestments were
•$324 million in the second quarter 2024, primarily related to the farmdown of the Seagreen offshore wind farm in the United Kingdom and the sale of petrochemical assets in Lavera, France,
•$1,898 million in the first half 2024, related to the above elements as well as the closing of the retail network transaction with Alimentation Couche-Tard in Belgium, Luxemburg, and the Netherlands, and the sale of a 15% interest in Absheron, in Azerbaijan.

5.5Net cash flow (1)
TotalEnergies’ net cash flow was:
•$3,147 million in the second quarter 2024 compared to $4,596 million in the first quarter 2024, reflecting the $391 million decrease in CFFO and the $1,058 million increase in net investments to $4,630 million in the second quarter 2024,
•$7,743 million in the first half 2024 compared to $7,095 million a year ago, reflecting the $2,161 million decrease in CFFO and the $2,809 million decrease in net investments to $8,202 million in the first half 2024,

2024 second quarter cash flow from operating activities was $9,007 million versus CFFO of $7,777 million, and was impacted by a decrease in working capital of $1.2 billion, mainly due to:
•$0.5 billion stock effect at the end of the quarter,
•($1.7) billion decrease in working capital, of which ($0.6) billion linked to the seasonality of the gas and power retail business.

5.6Profitability
Return on equity was 18.7% for the twelve months ended June 30, 2024.

6.TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, amounted to:
•€4,555 million in the second quarter 2024, compared to €4,851 million in the second quarter 2023,
•€7,965 million in the first half 2024, compared to €7,040 million in the first half 2023,

8.Outlook
Brent prices remain above $80/b at the start of the third quarter, with the OPEC+ countries having declared in early June 2024 the intention to continue their policy to sustain a stable oil market.
Global refining margins, which have sharply decreased since the end of the first quarter 2024, remain impacted by low diesel demand in Europe, as well as by the market normalization following the disruption in Russian supply.
Given the lower seasonal demand in Europe, European gas prices are expected to be between $8 and $10/Mbtu in the third quarter 2024. However, in a context of supply tensions, Asian LNG prices are above $12/Mbtu, supported by higher demand, notably in China and India. Given the evolution of oil and gas prices in recent months and the lag effect on price formulas, TotalEnergies anticipates that its average LNG selling price should be around $10/Mbtu in the third quarter 2024.

Third quarter 2024 hydrocarbon production is expected to be between 2.4 and 2.45 Mboe/d. Start-up of Anchor, in the US Gulf of Mexico, is expected in the third quarter.

The third quarter 2024 refining utilization rate is anticipated to be above 85%, benefiting from the restart of the Donges refinery in France.

The Company confirms net investments guidance of $17-$18 billion in 2024, of which $5 billion are dedicated to Integrated Power.
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