TotalEnergies SE UK Regulatory Announcement: 1st Quarter Results
TotalEnergies once again demonstrates its ability to generate strong results in a softening oil & gas price environment
As part of its multi-energy strategy, TotalEnergies presents for the first time the results of the Integrated Power segment
PARIS–(BUSINESS WIRE)–
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE):
| 1Q23 | 4Q22 | Change | 1Q22 | Change | |
| Net income (TotalEnergies share) (B$) | 5.6 | 3.3 | +70% | 4.9 | +12% |
| Adjusted net income (TotalEnergies share)(1) |
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| – in billions of dollars (B$) | 6.5 | 7.6 | -13% | 9.0 | -27% |
| – in dollars per share | 2.61 | 2.97 | -12% | 3.40 | -23% |
| Adjusted EBITDA(1) (B$) | 14.2 | 16.0 | -11% | 17.4 | -19% |
| DACF(1) (B$) | 9.8 | 9.4 | +4% | 12.0 | -19% |
| Cash Flow from operations (B$) | 5.1 | 5.6 | -9% | 7.6 | -33% |
| Net-debt-to-capital ratio(2) of 11.5% at March 31, 2023 vs. 7.0% at December 31, 2022 | |||||
| First 2023 interim dividend set at 0.74 €/share | |||||
(1) Definition on page 3.
(2) Excluding leases
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné, met on April 26, 2023, to approve the first quarter 2023 financial statements. On the occasion, Patrick Pouyanné said:
“TotalEnergies once again demonstrates its ability to generate strong results, posting in the first quarter 2023 adjusted net income of $6.5 billion, cash flow of $9.6 billion, and return on average capital employed of 25%, in an environment of lower oil and gas prices. IFRS net income was $5.6 billion for the quarter.
In an environment with Brent prices averaging $81/b, Exploration & Production generated adjusted net operating income of $2.7 billion and cash flow of $4.9 billion with production growth of 2% compared to the previous quarter*, benefiting in particular from the start-up of gas production on Block 10 in Oman and the acquisition of a 20% interest in the SARB / Umm Lulu oil fields in the United Arab Emirates.
Integrated LNG delivered adjusted net operating income and cash flow of $2.1 billion, leveraging its integrated global portfolio, in an environment of European and Asian gas prices returning to levels close to Brent parity at $16-17/Mbtu, given the mild winter and high inventories in Europe. The Company launched this quarter the integrated engineering studies (FEED) on the Papua LNG project, which will contribute to the future growth of the LNG portfolio.
The Integrated Power segment generated adjusted net operating income and cash flow of $0.4 billion in the first quarter. ROACE was nearly 10% over 12 months, confirming the Company’s ability to profitably grow this business. TotalEnergies closed this quarter the acquisition of a 34% interest in Casa Dos Ventos in Brazil, contributing to the growth of its installed renewable power generation capacity to 18 GW.
Downstream posted adjusted net operating income of $1.9 billion and cash flow of $2.2 billion, benefiting from strong refining margins. TotalEnergies announced the sale for €3.1 billion to Alimentation Couche-Tard of its retail networks in Germany and the Netherlands as well as a 40%/60% partnership with them to operate the stations in Belgium and Luxembourg.
Given these strong results, the Board of Directors confirmed the increase of 7.25% in the first interim dividend for the 2023 financial year, to €0.74 per share, as well as the repurchase of up to $2 billion of shares in the second quarter of 2023.”
1. Highlights(3)
Social and environmental responsibility
- Publication of the Sustainability & Climate – 2023 Progress Report presenting the progress made on TotalEnergies’ transformation strategy and the update of its climate ambition
- TotalEnergies ranked Number 2 in employee share ownership in Europe according to the report of the European Federation of Employee Share Ownership
- TotalEnergies guarantees customers that its fuel price will not exceed 1.99 €/l in its stations in France
Upstream
- Acquisition of CEPSA’s upstream assets in the United Arab Emirates, representing a share of 50 kboe/d
- Agreement with the Iraqi Government to move forward with the multi-energy project in Iraq
- Launch of the Lapa South-West project in Brazil
Downstream
- Sale to Alimentation Couche-Tard of retail networks in Germany and the Netherlands and 40%/60% partnership in Belgium and Luxembourg
- Agreement with waste recycling company Paprec to develop chemical plastic recycling projects in France
- Creation of a joint venture with Air Liquide to develop a network of more than 100 hydrogen stations for trucks in Europe
Integrated LNG
- Production start-up on Block 10 and signed a long-term LNG contract for 0.8 Mt/year in Oman
- Launch of Papua LNG Integrated Engineering Studies in Papua New Guinea
- Delivery of the first LNG cargo to the Dhamra LNG terminal in India
- Commissioning of the floating LNG regasification terminal in Lubmin, Germany
- Authorization by the French and European authorities for the installation of the floating LNG regasification terminal in Le Havre in France
Integrated Power
- Closing of the acquisition of a 34% interest in Casa dos Ventos, leading renewable developer in Brazil
- Acquisition from Corio Generation a 50% interest (minus 10 shares) in the 600 MW Formosa 3 offshore wind project in Taiwan
- Signature of renewable power purchase agreements with Sasol and Air Liquide in South Africa
Decarbonization & new molecules
- Acquisition of PGB, Poland’s leading biogas producer
- Entry on two permits for the storage of CO2 in the North Sea, Denmark
(3) Some of the transactions mentioned in the highlights remain subject to the agreement of the authorities or to the fulfilment of conditions precedent under the terms of the agreements.
2. Key figures from TotalEnergies’ consolidated financial statements(4)
| In millions of dollars, except effective tax rate, earnings per share and number of shares | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Adjusted EBITDA (5) | 14,167 | 15,997 | -11% | 17,424 | -19% |
| Adjusted net operating income from business segments | 6,993 | 8,238 | -15% | 9,458 | -26% |
| Exploration & Production | 2,653 | 3,528 | -25% | 5,015 | -47% |
| Integrated LNG | 2,072 | 2,408 | -14% | 3,133 | -34% |
| Integrated Power | 370 | 481 | -23% | (82) | ns |
| Refining & Chemicals | 1,618 | 1,487 | +9% | 1,120 | +44% |
| Marketing & Services | 280 | 334 | -16% | 272 | +3% |
| Contribution of equity affiliates to adjusted net income | 1,079 | 1,873 | -42% | 1,861 | -42% |
| Effective tax rate (6) | 41.4% | 41.4% | 38.7% | ||
| Adjusted net income (TotalEnergies share) | 6,541 | 7,561 | -13% | 8,977 | -27% |
| Adjusted fully-diluted earnings per share (dollars) (7) | 2.61 | 2.97 | -12% | 3.40 | -23% |
| Adjusted fully-diluted earnings per share (euros)* | 2.43 | 2.93 | -17% | 3.03 | -20% |
| Fully-diluted weighted-average shares (millions) | 2,479 | 2,522 | -2% | 2,614 | -5% |
| Net income (TotalEnergies share) | 5,557 | 3,264 | +70% | 4,944 | +12% |
| Organic investments (8) | 3,433 | 3,935 | -13% | 1,981 | +73% |
| Net acquisitions (9) | 2,987 | (133) | ns | 922 | x3.2 |
| Net investments (10) | 6,420 | 3,802 | +69% | 2,903 | x2.2 |
| Operating cash flow before working capital changes (11) | 9,621 | 9,135 | +5% | 11,626 | -17% |
| Operating cash flow before working capital changes w/o financial charges (DACF) (12) | 9,774 | 9,361 | +4% | 11,995 | -19% |
| Cash flow from operations | 5,133 | 5,618 | -9% | 7,617 | -33% |
*Average €-$ exchange rate: 1.0730 in the first quarter 2023, 1.0205 in the fourth quarter 2022 and 1.1217 in the first quarter 2022.
(4) Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 19.
(5) Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) corresponds to the adjusted earnings before depreciation, depletion and impairment of tangible and intangible assets and mineral interests, income tax expense and cost of net debt, i.e., all operating income and contribution of equity affiliates to net income.
(6) Effective tax rate = (tax on adjusted net operating income) / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income).
(7) In accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bonds.
(8) Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
(9) Net acquisitions = acquisitions – assets sales – other transactions with non-controlling interests (see page 21).
(10) Net investments = organic investments + net acquisitions (see page 21).
(11) Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of Integrated LNG and Integrated Power contracts and including capital gains from renewable projects sale.
The inventory valuation effect is explained on page 25. The reconciliation table for different cash flow figures is on page 21.
(12) DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment* – liquids and gas price realizations, refining margins
| 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 | |
| Brent ($/b) | 81.2 | 88.8 | -9% | 102.2 | -21% |
| Henry Hub ($/Mbtu) | 2.7 | 6.1 | -55% | 4.6 | -40% |
| NBP ($/Mbtu) | 16.1 | 32.3 | -50% | 32.3 | -50% |
| JKM ($/Mbtu) | 16.5 | 30.5 | -46% | 31.1 | -47% |
| Average price of liquids ($/b) Consolidated subsidiaries | 73.4 | 80.6 | -9% | 90.1 | -19% |
| Average price of gas ($/Mbtu) Consolidated subsidiaries | 8.89 | 12.74 | -30% | 12.27 | -28% |
| Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates | 13.27 | 14.83 | -11% | 13.60 | -2% |
| Variable cost margin – Refining Europe, VCM ($/t)** | 87.8 | 73.6 | +19% | 46.3 | +90% |
* The indicators are shown on page 26.
** This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons).
3.2 Greenhouse gas emissions(13)
| GHG emissions (MtCO2e) | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Scope 1+2 from operated facilities (14) | 9.1 | 10.1 | -10% | 9.6 | -6% |
| of which Oil & Gas | 7.6 | 8.3 | -8% | 7.9 | -4% |
| of which CCGT | 1.5 | 1.8 | -17% | 1.7 | -15% |
| Scope 1+2 – equity share | 12.8 | 14.7 | -13% | 14.0 | -9% |
Estimated 1Q23 emissions.
Scope 1+2 emissions from operated installations were down in the first quarter 2023, as a result of the decrease in the use of gas-fired power plants in a context of lower demand in Europe and given the decline in flaring on Exploration & Production facilities.
| Methane emissions (ktCH4) | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Methane emissions from operated facilities | 9 | 11 | -17% | 10 | -8% |
| Methane emissions – equity share | 11 | 10 | +12% | 12 | -7%
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Estimated 1Q23 emissions.
| Scope 3 emissions (MtCO2e) | 1Q23 | 2022 |
| Scope 3 from Oil, Biofuels and Gas Worldwide (15) | est. 90 | 389 |
(13) The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from the Company’s emissions or are considered as non-material and are therefore not counted.
(14) Scope 1+2 GHG emissions of operated facilities are defined as the sum of direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting (as defined in the Company’s 2022 Universal Registration Document) and indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2).
(15) TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use by customers of energy products, i.e., combustion of the products to obtain energy. The Company follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil, biofuels and gas value chains, i.e., the higher of the two production volumes or sales to end customers. The highest point for each value chain for 2023 will be evaluated considering realizations over the full year, TotalEnergies gradually providing quarterly estimates.
3.3 Production*
| Hydrocarbon production | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Hydrocarbon production (kboe/d) | 2,524 | 2,812 | -10% | 2,843 | -11% |
| Oil (including bitumen) (kb/d) | 1,398 | 1,357 | +3% | 1,305 | +7% |
| Gas (including condensates and associated NGL) (kboe/d) | 1,126 | 1,455 | -23% | 1,538 | -27% |
| Hydrocarbon production (kboe/d) | 2,524 | 2,812 | -10% | 2,843 | -11% |
| Liquids (kb/d) | 1,562 | 1,570 | – | 1,527 | +2% |
| Gas (Mcf/d) | 5,191 | 6,681 | -22% | 7,162 | -28% |
| Hydrocarbon production excluding Novatek (kboe/d) | 2,524 | 2,475 | +2% | 2,508 | +1% |
* Company production = E&P production + Integrated LNG production.
Hydrocarbon production was 2,524 thousand barrels of oil equivalent per day (kboe/d) in the first quarter of 2023, up 1% year-on-year (excluding Novatek), comprised of:
- +4% due to start-ups and ramp-ups, notably Mero 1 in Brazil and Ikike in Nigeria,
- +1% due to the increase in OPEC+ production quotas,
- -1% portfolio effect, notably related to the end of the Bongkot operating licenses in Thailand, the exit from Termokarstovoye and Kharyaga in Russia and the effective withdrawal from Myanmar, partially offset by the entry into the producing fields of Sépia and Atapu in Brazil and SARB / Umm Lulu in the United Arab Emirates, as well as the increased participation in the Waha concessions in Libya,
- -3% due to the natural decline of the fields.
Production was up 2% quarter-on-quarter (excluding Novatek), benefiting in particular from the start-up of gas production from Block 10 in Oman, the acquisition of an interest in the SARB / Umm Lulu oil fields in the United Arab Emirates, and the ramp-up of Johan Sverdrup Phase 2 project in Norway.
4. Analysis of business segments
4.1 Integrated LNG
4.1.1 Production
| Hydrocarbon production for LNG | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Integrated LNG (kboe/d) | 463 | 503 | -8% | 492 | -6% |
| Liquids (kb/d) | 62 | 58 | +6% | 60 | +3% |
| Gas (Mcf/d) | 2,179 | 2,420 | -10% | 2,349 | -7% |
| Integrated LNG excluding Novatek (kboe/d) | 463 | 445 | +4% | 433 | +7% |
| Liquefied Natural Gas in Mt | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Overall LNG sales | 11.0 | 12.7 | -13% | 13.3 | -17% |
| incl. Sales from equity production* | 4.0 | 4.4 | -11% | 4.4 | -11% |
| incl. Sales by TotalEnergies from equity production and third party purchases | 9.9 | 11.4 | -14% | 11.9 | -17% |
* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.
Hydrocarbon production for LNG was up 7% year-on-year (excluding Novatek), due to the restart of Snøhvit in Norway during the second quarter 2022.
Overall LNG sales in the first quarter of 2023 were down 17% year-on-year, mainly as a result of lower spot volumes, linked to lower demand for LNG in Europe due to the mild winter weather and high inventories.
4.1.2 Results
| In millions of dollars | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Adjusted net operating income* | 2,072 | 2,408 | -14% | 3,133 | -34% |
| including adjusted income from equity affiliates | 786 | 1,213 | -35% | 1,404 | -44% |
| Organic investments | 396 | 195 | x2 | (61) | ns |
| Net acquisitions | 759 | 19 | x39.9 | (20) | ns |
| Net investments | 1,155 | 214 | x5.4 | (81) | ns |
| Operating cash flow before working capital changes ** | 2,081 | 2,688 | -23% | 2,492 | -16% |
| Cash flow from operations *** | 3,536 | 134 | x26.4 | 2,219 | +59% |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value.
*** Excluding financial charges, except those related to leases.
Integrated LNG adjusted net operating income was $2,072 million in the first quarter 2023:
- down 10% quarter-on-quarter (excluding Novatek), mainly due to lower hydrocarbon prices;
- down 25% year-on-year (excluding Novatek) due to lower LNG sales and prices, as well as exceptional trading results in the first quarter of 2022.
Operating cash flow before working capital changes for Integrated LNG was $2,081 million in the first quarter 2023:
- down 23% quarter-on-quarter (excluding Novatek), due to lower prices and a lag effect on dividend payments received from equity affiliates;
- down 16% year-on-year (excluding Novatek), due to lower prices.
Cash flow from operations was $3,536 million for the quarter, linked to the positive impact on working capital of the decrease in margin calls and receivables.
4.2 Integrated Power
4.2.1 Capacities, productions, clients and sales
| Integrated Power | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Portfolio of renewable power generation gross capacity (GW) (1),(2) | 70.4 | 69.0 | +2% | 46.8 | +50% |
| o/w installed capacity | 17.9 | 16.8 | +7% | 10.7 | +68% |
| o/w capacity in construction | 6.2 | 6.1 | +1% | 6.1 | +2% |
| o/w capacity in development | 46.3 | 46.0 | +1% | 30.1 | +54% |
| Portfolio of renewable power generation net capacity (GW) (2) | 44.4 | 45.5 | -2% | 34.4 | +29% |
| o/w installed capacity | 8.4 | 7.7 | +9% | 5.4 | +55% |
| o/w capacity in construction | 4.0 | 4.1 | -2% | 4.2 | -3% |
| o/w capacity in development | 32.0 | 33.6 | -5% | 24.8 | +29% |
| Gas-fired power generation gross installed capacity (GW) (2) | 5.8 | 5.8 | – | 5.8 | – |
| Gas-fired power generation net installed capacity (GW) (2) | 4.3 | 4.3 | – | 4.5 | -5% |
| Net power production (TWh) (3) | 8.4 | 9.4 | -11% | 7.6 | +10% |
| incl. power production from renewables | 3.8 | 3.3 | +16% | 2.2 | +72% |
| Clients power – BtB and BtC (Million) (2) | 6.0 | 6.1 | -2% | 6.1 | -1% |
| Clients gas – BtB and BtC (Million) (2) | 2.8 | 2.7 | – | 2.7 | +1% |
| Sales power – BtB and BtC (TWh) | 15.5 | 14.6 | +6% | 16.3 | -5% |
| Sales gas – BtB and BtC (TWh) | 37.3 | 28.1 | +33% | 35.0 | +7% |
(1) Includes 20% of Adani Green Energy Ltd’s gross capacity effective first quarter 2021, 50% of Clearway Energy Group’s gross capacity effective third quarter 2022 and 49% of Casa dos Ventos’ gross capacity effective first quarter 2023.
(2) End of period data.
(3) Solar, wind, hydroelectric and combined-cycle gas turbine (CCGT) plants.
Gross installed renewable power generation capacity was close to 18 GW at the end of the first quarter 2023, up by more than 1 GW quarter-on-quarter, including 0.6 GW from the acquisition of an interest in the Casa dos Ventos portfolio of renewable projects in Brazil and the connection of 0.3 GW from the Seagreen offshore wind project in the UK.
Net electricity generation was 8.4 TWh in the quarter:
- up 10% year-on-year, due to growing electricity generation from renewables, offsetting the lower generation from flexible capacity,
- down 11% quarter-on-quarter due to lower flexible capacity generation in the context of lower demand, partially offset by growing renewable power generation.
4.2.2 Results
| In millions of dollars | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Adjusted net operating income* | 370 | 481 | -23% | (82) | ns |
| including adjusted income from equity affiliates | 56 | 88 | -36% | 26 | x2.2 |
| Organic investments | 577 | 455 | +27% | 319 | +81% |
| Net acquisitions | 519 | (230) | ns | 661 | -22% |
| Net investments | 1,096 | 225 | x4.9 | 980 | +12% |
| Operating cash flow before working capital changes ** | 440 | 439 | – | 93 | x4.7 |
| Cash flow from operations *** | (1,285) | 861 | ns | (1,904) | ns |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects.
*** Excluding financial charges, except those related to leases. Excluding margin calls, reported in the Integrated LNG segment since the implementation in 2022 of its centralized management.
Integrated Power adjusted net operating income was $370 million in the first quarter 2023:
- up significantly year-on-year, due to the contribution from gas-fired power plants and the performance of power trading, which offset the impact of seasonality in the power marketing business,
- down 23% quarter-on-quarter, notably due to the impact of seasonality in the power marketing business.
Cash flow from operations was ($1,285) million in the first quarter 2023, mainly due to the negative impact on working capital of the seasonality of the power & gas marketing business (gap between a seasonal monthly cost of supply and a fixed monthly B2C clients payment estimated on the year-n-1 consumption).
4.3 Exploration & Production
4.3.1 Production
| Hydrocarbon production | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| EP (kboe/d) | 2,061 | 2,309 | -11% | 2,351 | -12% |
| Liquids (kb/d) | 1,500 | 1,512 | -1% | 1,467 | +2% |
| Gas (Mcf/d) | 3,012 | 4,261 | -29% | 4,813 | -37% |
| EP excluding Novatek (kboe/d) | 2,061 | 2,030 | +2% | 2,075 | -1% |
4.3.2 Results
| In millions of dollars, except effective tax rate | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Adjusted net operating income* | 2,653 | 3,528 | -25% | 5,015 | -47% |
| including adjusted income from equity affiliates | 135 | 316 | -57% | 355 | -62% |
| Effective tax rate** | 57.1% | 54.4% | – | 47.0% | – |
| Organic investments | 2,134 | 2,219 | -4% | 1,426 | +50% |
| Net acquisitions | 1,938 | 105 | x18.5 | 316 | x6.1 |
| Net investments | 4,072 | 2,324 | +75% | 1,742 | x2.3 |
| Operating cash flow before working capital changes *** | 4,907 | 4,988 | -2% | 7,303 | -33% |
| Cash flow from operations *** | 4,536 | 4,035 | +12% | 5,768 | -21% |
* Details on adjustment items are shown in the business segment information annex to financial statements.
** Tax on adjusted net operating income / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income).
*** Excluding financial charges, except those related to leases.
Exploration & Production adjusted net operating income was $2,653 million in the first quarter 2023:
- down 22% quarter-on-quarter (excluding Novatek), due to lower oil and gas prices,
- down 45% year-on-year (excluding Novatek) for the same reasons, as well as higher taxation, particularly in the UK.
Operating cash flow before working capital changes in the first quarter 2023 was $4,907 million, down 3% quarter-on-quarter (excluding Novatek), reflecting lower gas and oil prices in the first quarter 2023 and exceptional taxes during the fourth quarter 2022, notably taxes related to the European solidarity contribution.
4.4 Downstream (Refining & Chemicals and Marketing & Services)
4.4.1 Results
| In millions of dollars | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Adjusted net operating income* | 1,898 | 1,821 | +4% | 1,392 | +36% |
| Organic investments | 290 | 1,023 | -72% | 292 | -1% |
| Net acquisitions | (229) | (28) | ns | (34) | ns |
| Net investments | 61 | 995 | -94% | 258 | -76% |
| Operating cash flow before working capital changes ** | 2,189 | 1,681 | +30% | 1,896 | +15% |
| Cash flow from operations ** | (1,524) | 939 | ns | 2,005 | ns |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.
4.5 Refining & Chemicals
4.5.1 Refinery and petrochemicals throughput and utilization rates
| Refinery throughput and utilization rate* | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Total refinery throughput (kb/d) | 1,403 | 1,389 | +1% | 1,317 | +6% |
| France | 357 | 312 | +14% | 252 | +42% |
| Rest of Europe | 596 | 580 | +3% | 605 | -1% |
| Rest of world | 450 | 497 | -10% | 460 | -2% |
| Utlization rate based on crude only** | 78% | 77% | 74% |
* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.
| Petrochemicals production and utilization rate | 1Q23 | 4Q22 | 1Q23 vs 4Q22 | 1Q22 | 1Q23 vs 1Q22 |
| Monomers* (kt) | 1,295 | 1,095 | +18% | 1,404 | -8% |
| Polymers (kt) | 1,111 | 917 | +21% | 1,274 | -13% |
| Steamcracker utilization rate** | 75% | 66% | 86% |
* Olefins.
** Based on olefins production from steam crackers and their treatment capacity at the start of the year.
Refined volumes were up 6% year-on-year, notably due to the restart of the Donges refinery in France in the second quarter 2022.
Petrochemical production was down 8% year-on-year for monomers and 13% for polymers, due to slowing global demand.
4.
Contacts
TotalEnergies
