Financial structure and financial costs

12 Months Ended

Dec. 31, 2025

Financial structure and financial costs

Note 15 Financial structure and financial costs

15.1 FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS

A) Non-current financial debt and related financial instruments


As of December 31, 2025
(M$)
(Assets) / Liabilities		Secured		Unsecured		Total
Non-current financial debt		8,699		40,296		48,995
of which hedging instruments of non-current financial debt (liabilities)		–		962		962
Non-current financial assets		(1,279)		(1,991)		(3,270)
of which hedging instruments of non-current financial debt (assets)		–		(812)		(812)
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,420		38,305		45,725
Variable rate bonds or bonds after fair value hedge		–		9,305		9,305
Fixed rate bonds or bonds after cash flow hedge		–		28,740		28,740
Other floating rate debt		136		722		858
Other fixed rate debt		512		460		972
Lease obligations		8,051		–		8,051
Non-current financial assets excluding derivative financial instruments		(1,279)		(925)		(2,204)
Non-current instruments held for trading		–		3		3
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,420		38,305		45,725


As of December 31, 2024
(M$)
(Assets) / Liabilities		Secured		Unsecured		Total
Non-current financial debt		8,518		35,015		43,533
of which hedging instruments of non-current financial debt (liabilities)		–		2,313		2,313
Non-current financial assets		(1,278)		(1,027)		(2,305)
of which hedging instruments of non-current financial debt (assets)		–		(546)		(546)
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,240		33,988		41,228
Variable rate bonds or bonds after fair value hedge		43		9,712		9,755
Fixed rate bonds or bonds after cash flow hedge		–		23,446		23,446
Other floating rate debt		305		304		609
Other fixed rate debt		348		726		1,074
Lease obligations		7,822		–		7,822
Non-current financial assets excluding derivative financial instruments		(1,278)		(134)		(1,412)
Non-current instruments held for trading		–		(66)		(66)
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,240		33,988		41,228


As of December 31, 2023
(M$)
(Assets) / Liabilities		Secured		Unsecured		Total
Non-current financial debt		8,427		32,051		40,478
of which hedging instruments of non-current financial debt (liabilities)		–		2,198		2,198
Non-current financial assets		(1,166)		(1,229)		(2,395)
of which hedging instruments of non-current financial debt (assets)		–		(673)		(673)
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,261		30,822		38,083
Variable rate bonds or bonds after fair value hedge		–		7,051		7,051
Fixed rate bonds or bonds after cash flow hedge		–		22,839		22,839
Other floating rate debt		430		408		838
Other fixed rate debt		241		840		1,081
Lease obligations		7,756		–		7,756
Non-current financial assets excluding derivative financial instruments		(1,166)		(142)		(1,308)
Non-current instruments held for trading		–		(174)		(174)
NON-CURRENT NET FINANCIAL DEBT AND RELATED FINANCIAL INSTRUMENTS		7,261		30,822		38,083

The bonds, as of December 31, 2025, after taking into account currency and interest rates swaps fair value, are detailed as follows:


				Amount		Amount		Amount
Bonds after fair value hedge or variable rate				after		after		after
bonds		Currency of		December 31,		December 31,		December 31,
(M$)		issuance		2025		2024		2023^(a)
Bond		USD		5,299		6,332		3,542
Bond		EUR		2,611		2,636		3,209
Bond		Others		903		1,542		1,539
Current portion (less than one year)				(204)		(1,648)		(2,118)
Principal financing entities^(b)				8,609		8,862		6,172
Other consolidated subsidiaries				696		893		879
TOTAL VARIABLE RATE BONDS OR BONDS AFTER FAIR VALUE HEDGE				9,305		9,755		7,051


				Amount		Amount		Amount
Bonds after cash flow hedge or				after		after		after
fixed rate bonds		Currency of		December 31,		December 31,		December 31,
(M$)		issuance		2025		2024		2023
Bond		EUR		19,584		13,768		15,448
Bond		USD		10,402		10,523		8,301
Bond		Others		1,044		1,048		2,254
Current portion (less than one year)				(2,341)		(1,909)		(3,175)
Principal financing entities^(b)				28,689		23,430		22,828
Other consolidated subsidiaries				51		16		11
TOTAL BONDS AFTER CASH FLOW HEDGE OR FIXED RATE BONDS				28,740		23,446		22,839

(a)

The IBOR rate reform mainly impacted the bonds after fair value hedge, on principal financing entities and TotalEnergies SE, indexed on the USD LIBOR rate. At December 31, 2023, the amount of the bonds after fair value hedge (both non-current and current portions) on principal financing entities and TotalEnergies SE was $ 8,290 million.

(b)	All debt securities issued through the following subsidiaries are fully and unconditionally guaranteed by TotalEnergies SE as to payment of principal, premium, if any, interest and any other amounts due:

TotalEnergies Capital is a wholly and directly owned subsidiary of TotalEnergies SE (except for one share held by each director). It acts as a financing vehicle for TotalEnergies. The repayment of its financial debt (capital, premium and interest) is fully and unconditionally guaranteed by TotalEnergies SE;

TotalEnergies Capital Canada Ltd. is a wholly and directly owned subsidiary of TotalEnergies SE. It acted as a financing vehicle for the activities of TotalEnergies in Canada. The repayment of its financial debt (capital, premium and interest) is fully and unconditionally guaranteed by TotalEnergies SE;

TotalEnergies Capital International is a wholly and directly owned subsidiary of TotalEnergies SE (except for one share held by each director). It acts as a financing vehicle for TotalEnergies. The repayment of its financial debt (capital, premium and interest) is fully and unconditionally guaranteed by TotalEnergies SE.

Loan repayment schedule (excluding current portion)


			of which hedging			of which hedging
			instruments			instruments	Non-current net
As of December 31,			of non‑current	Non-current		of non-current	financial debt and
2025	Non‑current		financial debt	financial		financial debt	related financial
(M$)	financial debt		(liabilities)	assets		(assets)	instruments	%
2027	4,476		11	(635)		(169)	3,841	8	%
2028	4,607		63	(218)		(71)	4,389	10	%
2029	5,778		369	(379)		(150)	5,399	12	%
2030	2,971		62	(287)		(12)	2,684	6	%
2031 and beyond	31,163		457	(1,751)		(410)	29,412	64	%
TOTAL	48,995		962	(3,270)		(812)	45,725	100	%


				of which hedging			of which hedging
				instruments			instruments	Non-current net
As of December 31,				of non‑current	Non-current		of non-current	financial debt and
2024		Non‑current		financial debt	financial		financial debt	related financial
(M$)		financial debt		(liabilities)	assets		(assets)	instruments	%
2026		4,498		411	(572)		(71)	3,926	10	%
2027		3,906		173	(292)		(14)	3,614	9	%
2028		4,596		391	(267)		(135)	4,329	11	%
2029		5,755		723	(348)		(233)	5,407	13	%
2030 and beyond		24,778		615	(826)		(93)	23,952	57	%
TOTAL		43,533		2,313	(2,305)		(546)	41,228	100	%


			of which hedging			of which hedging
			instruments			instruments	Non-current net
As of December 31,			of non‑current	Non-current		of non-current	financial debt and
2023	Non‑current		financial debt	financial		financial debt	related financial
(M$)	financial debt		(liabilities)	assets		(assets)	instruments	%
2025	5,381		369	(434)		(110)	4,947	13	%
2026	4,013		323	(304)		(102)	3,709	10	%
2027	3,720		85	(349)		(55)	3,371	9	%
2028	4,502		304	(246)		(142)	4,256	11	%
2029 and beyond	22,862		1,117	(1,062)		(264)	21,800	57	%
TOTAL	40,478		2,198	(2,395)		(673)	38,083	100	%

Analysis by currency and interest rate

These analyses take into account interest rate and foreign currency swaps to hedge non-current financial net debt.


As of December 31,
(M$)		2025		%		2024		%		2023		%
U.S. dollar		36,225		79	%	38,002		92	%	34,789		91	%
Euro		8,682		19	%	2,206		5	%	2,322		6	%
Other currencies		818		2	%	1,020		3	%	972		3	%
TOTAL		45,725		100	%	41,228		100	%	38,083		100	%


As of December 31,
(M$)	2025	%		2024	%		2023	%
Fixed rate	35,740	78	%	30,922	75	%	30,311	80	%
Floating rate	9,985	22	%	10,306	25	%	7,772	20	%
TOTAL	45,725	100	%	41,228	100	%	38,083	100	%

B) Current financial assets and liabilities

Current borrowings consist mainly of drawings on commercial papers or treasury bills and of bank loans. Current deposits beyond three months include initial margins held as part of the Company’s activities on organized markets.


As of December 31,
(M$)
(Assets) / Liabilities	2025	2024	2023
Current financial debt^(a)	7,622	4,462	2,377
Current lease obligations	1,876	2,095	1,721
Current portion of non-current financial debt	2,540	3,467	5,492
Current borrowings (note 14)	12,038	10,024	9,590
Current portion of hedging instruments of debt (liabilities)	218	425	268
Other current financial instruments (liabilities)	170	239	178
Other current financial liabilities (note 14)	388	664	446
Current deposits beyond three months	(2,136)	(5,476)	(5,450)
Marketable securities	(707)	(683)	(519)
Financial receivables on sub-lease, current	(239)	(378)	(329)
Current portion of hedging instruments of debt (assets)	(81)	(29)	(91)
Other current financial instruments (assets)	(169)	(348)	(196)
Current financial assets (note 14)	(3,332)	(6,914)	(6,585)
NET CURRENT BORROWINGS	9,094	3,774	3,451

(a)	As of December 31, 2025, December 31, 2024 and December 31, 2023, current financial debt includes notably short-term negotiable debt security issued through programs fully and unconditionally secured by TotalEnergies SE.

C) Cash flow from (used in) financing activities

The variations of financial debt are detailed as follows:


			Non-cash changes
	As of		Change in scope,			Reclassification		As of
	January 1,	Cash	including IFRS 5	Foreign	Changes in	Non-current /		December 31,
(M$)	2025	changes	reclassification	currency	fair value	Current	Other	2025
Non-current financial instruments - assets^(a) and non-current financial assets	(2,305)	(16)	40	(105)	(159)	350	(1,075)	(3,270)
Non-current financial debt	43,533	7,981	(1,216)	720	593	(4,941)	2,325	48,995
Non-current financial debt and related financial instruments	41,228	7,965	(1,176)	615	434	(4,591)	1,250	45,725

Current financial instruments - assets^(a)	(755)	593	30	(40)	164	(350)	(131)	(489)
Current borrowings	10,024	(4,746)	(172)	1,395	264	4,941	332	12,038
Current financial instruments - liabilities^(a)	664	–	(1)	27	(302)	–	–	388
Current financial debt and related financial instruments	9,933	(4,153)	(143)	1,382	126	4,591	201	11,937

Financial debt and financial assets classified as held for sale	44	–	118	3	–	–	–	165
NET FINANCIAL DEBT	51,205	3,812	(1,201)	2,000	560	–	1,451	57,827

(a)	Fair value or cash flow hedge instruments and other non-hedge debt-related derivative instruments.


			Non-cash changes
	As of		Change in scope,			Reclassification		As of
	January 1,	Cash	including IFRS 5	Foreign	Changes in	Non-current /		December 31,
(M$)	2024	changes	reclassification	currency	fair value	Current	Other	2024
Non-current financial instruments - assets^(a) and non-current financial assets	(2,395)	–	37	37	132	340	(456)	(2,305)
Non-current financial debt	40,478	7,532	(299)	(241)	(453)	(6,080)	2,596	43,533
Non-current financial debt and related financial instruments	38,083	7,532	(262)	(204)	(321)	(5,740)	2,140	41,228

Current financial instruments - assets^(a)	(616)	609	(2)	20	(107)	(340)	(319)	(755)
Current borrowings	9,590	(5,751)	321	(760)	(138)	6,080	682	10,024
Current financial instruments - liabilities^(a)	446	–	(3)	(17)	238	–	–	664
Current financial debt and related financial instruments	9,420	(5,142)	316	(757)	(7)	5,740	363	9,933

Financial debt and financial assets classified as held for sale	310	–	(261)	(5)	–	–	–	44
NET FINANCIAL DEBT	47,813	2,390	(207)	(966)	(328)	–	2,503	51,205

(a)	Fair value or cash flow hedge instruments and other non-hedge debt-related derivative instruments.


			Non-cash changes
	As of		Change in scope,			Reclassification		As of
	January 1,	Cash	including IFRS 5	Foreign	Changes in	Non-current /		December 31,
(M$)	2023	changes	reclassification	currency	fair value	Current	Other	2023
Non-current financial instruments - assets ^(a) and non-current financial assets	(2,731)	–	(96)	(21)	353	387	(287)	(2,395)
Non-current financial debt	45,264	130	667	65	(343)	(7,573)	2,268	40,478
Non-current financial debt and related financial instruments	42,533	130	571	44	10	(7,186)	1,981	38,083

Current financial instruments - assets^(a)	(401)	383	(1)	(8)	(68)	(387)	(134)	(616)
Current borrowings	15,502	(14,660)	181	389	121	7,573	484	9,590
Current financial instruments - liabilities^(a)	488	–	6	11	(59)	–	–	446
Current financial debt and related financial instruments	15,589	(14,277)	186	392	(6)	7,186	350	9,420

Financial debt and financial assets classified as held for sale	(38)	–	341	7	–	–	–	310
NET FINANCIAL DEBT	58,084	(14,147)	1,098	443	4	–	2,331	47,813

(a)Fair value or cash flow hedge instruments and other non-hedge debt-related derivative instruments.

Monetary changes in non-current financial debt are detailed as follows:


For the year ended December 31,
(M$)	2025	2024	2023
Issuance of non-current debt	8,163	7,563	189
Repayment of non-current debt	(182)	(31)	(59)
NET AMOUNT	7,981	7,532	130

D) Cash and cash equivalents

Accounting principles

Cash and cash equivalents are composed of cash on hand and highly liquid short-term investments that are easily convertible into known amounts of cash and are subject to insignificant risks of changes in value.

Investments with maturity greater than three months and less than twelve months are shown under “Current financial assets”.

Changes in current financial assets and liabilities are included in the financing activities section of the consolidated statement of cash flows.

Cash and cash equivalents are detailed as follows:


For the year ended December 31,
(M$)	2025	2024	2023
Cash	15,618	17,475	16,956
Cash equivalents	10,584	8,369	10,307
TOTAL	26,202	25,844	27,263

Cash equivalents are mainly composed of deposits with a maturity of less than three months, deposited in government institutions or deposit banks selected in accordance with strict criteria.

As of December 31, 2025, the cash and cash equivalents include $2,050 million subject to restrictions, notably due to regulatory framework or to the fact they are owned by affiliates located in countries with exchange controls.

E) Net-debt-to-capital ratio

For its internal and external communication needs, TotalEnergies calculates a debt ratio by dividing its net financial debt excluding leases by its equity.

The ratio is calculated as follows: Net debt excluding leases / (Equity + Net debt excluding leases)


As of December 31,
(M$)
(Assets) / Liabilities		2025		2024		2023
Current borrowings^(a)		10,162		7,929		7,869
Other current financial liabilities		388		664		446
Current financial assets^(a)		(3,093)		(6,536)		(6,256)
Net financial assets and liabilities held for sale or exchange^(a)		7		33		17
Non-current financial debt^(a)		40,944		35,711		32,722
Non-current financial assets^(a)		(1,991)		(1,027)		(1,229)
Cash and cash equivalents		(26,202)		(25,844)		(27,263)
Net financial debt excluding leases		20,215		10,930		6,306

Shareholders’ equity – TotalEnergies share		114,883		117,858		116,753
Distribution of the income based on existing shares at the closing date		2,640		2,397		2,700
Shareholders’ equity		117,523		120,255		119,453

NET-DEBT-TO-CAPITAL RATIO EXCLUDING LEASES		14.7	%	8.3	%	5.0	%

(a)	Excluding lease receivables & lease debts.

15.2 FAIR VALUE OF FINANCIAL INSTRUMENTS (EXCLUDING COMMODITY CONTRACTS)

Accounting principles

TotalEnergies uses derivative instruments to manage its exposure to risks of changes in interest rates, foreign exchange rates and commodity prices. These financial instruments are accounted for in accordance with IFRS 9, changes in fair value of derivative instruments are recognized in the income statement or in other comprehensive income and are recognized in the balance sheet in the accounts corresponding to their nature, according to the risk management strategy. The derivative instruments used by TotalEnergies are the following:

- Cash management

Financial instruments used for cash management purposes are part of a hedging strategy of currency and interest rate risks within global limits set by TotalEnergies and are considered to be held for trading. Changes in fair value are systematically recorded in the income statement. The balance sheet value of those instruments is included in “Current financial assets” or “Other current financial liabilities”.

- Long-term financing

When an external long-term financing is set up, specifically to finance subsidiaries, and when this financing involves currency and interest rate derivatives, these instruments are qualified as:

1) Fair value hedge of the interest rate and currency risks on the external debt financing the loans to subsidiaries. Changes in fair value of derivatives are recognized in the income statement, as are changes in fair value of underlying financial debts and loans to subsidiaries.

The fair value of those hedging instruments of long-term financing is included in assets under “Non-current financial assets” or in liabilities under “Non-current financial debt” for the non-current portion. The current portion (less than one year) is accounted for in “Current financial assets” or “Other current financial liabilities”.

In case of the anticipated termination of derivative instruments accounted for as fair value hedges, the amount paid or received is recognized in the income statement and:

● If this termination is due to an early cancellation of the hedged items, the adjustment previously recorded as revaluation of those hedged items is also recognized in the income statement;

● If the hedged items remain in the balance sheet, the adjustment previously recorded as a revaluation of those hedged items is amortized over the remaining life of those items.

In case of a change in the strategy of the hedge (fair value hedge to cash flow hedge), if the components of the initial aggregated exposure had already been designated in a hedging relationship (FVH), TotalEnergies designates the new instrument as a hedging instrument of an aggregated position (CFH) without having to end the initial hedging relationship.

2) Cash flow hedge when TotalEnergies implements a strategy of fixing interest rate and/or currency rate on the external debt. Changes in fair value are recorded in other comprehensive income for the effective portion of the hedging and in the income statement for the ineffective portion of the hedging. When the hedged transaction affects profit or loss, the fair value variations of the hedging instrument recorded in equity are also symmetrically recycled to the income statement.

If the hedging instrument expires, is sold or terminated by anticipation, gains or losses previously recognized in equity remain in equity. Amounts are recycled to the income statement only when the hedged transaction affects profit or loss.

3) In compliance with IFRS 9, TotalEnergies has decided to recognize in a separate component of the comprehensive income the variation of foreign currency basis spread (Cross Currency Swaps) identified in the hedging relationships qualified as fair value hedges and cash flow hedges.

- Foreign subsidiaries’ equity hedge

Certain financial instruments hedge against risks related to the equity of foreign subsidiaries whose functional currency is not the euro (mainly the dollar). These instruments qualify as “net investment hedges” and changes in fair value are recorded in other comprehensive income under “Currency translation” for the effective portion of the hedging and in the income statement for the ineffective portion of the hedging. Gains or losses on hedging instruments previously recorded in equity, are reclassified to the income statement in the same period as the total or partial disposal of the foreign activity.

The fair value of these instruments is recorded under “Current financial assets” and “Other current financial liabilities”.

- Commitments to purchase shares held by non-controlling interests (put options written on minority interests)

Put options granted to non-controlling-interest shareholders are initially recognized as financial liabilities at the present value of the exercise price of the options with a corresponding reduction in shareholders’ equity – TotalEnergies share. The financial liability is subsequently measured at fair value at each balance sheet date in accordance with contractual clauses and any variation is recorded in the income statement (cost of debt).

A) Impact on the income statement per nature of financial instruments

Assets and liabilities from financing activities

The impact on the income statement of financing assets and liabilities mainly includes:

●

Financial income on cash, cash equivalents, and current financial assets (notably current deposits beyond three months) classified as “Loans and receivables”;

●

Financial expense of long-term subsidiaries financing, associated hedging instruments (excluding ineffective portion of the hedge detailed below) and financial expense of short-term financing classified as “Financing liabilities and associated hedging instruments”;

●

Ineffective portion of bond hedging;

●

Financial income and financial expense on lease contracts and,

●

Financial income, financial expense and fair value of derivative instruments used for cash management purposes classified as “Assets and liabilities held for trading”.

Financial derivative instruments used for cash management purposes (interest rate and foreign exchange) are considered to be held for trading. Based on practical documentation issues, TotalEnergies did not elect to set up hedge accounting for such instruments. The impact on income statement of the derivatives is offset by the impact of loans and current liabilities they are related to. Therefore these transactions taken as a whole do not have a significant impact on the Consolidated Financial Statements.


For the year ended December 31,
(M$)		2025		2024		2023
Loans and receivables		770		1,335		1,420
Financing liabilities and associated hedging instruments		(2,424)		(2,321)		(2,190)
Fair value hedge (ineffective portion)		13		1		2
Lease assets and obligations		(628)		(552)		(499)
Assets and liabilities held for trading		202		307		248
IMPACT ON THE COST OF NET DEBT		(2,067)		(1,230)		(1,019)

B) Impact of the hedging strategies

Fair value hedge instruments

The impact on the income statement of the bond hedging instruments which is recorded in the item “Financial interest on debt” in the Consolidated Statement of Income is detailed as follows:


For the year ended December 31,
(M$)		2025		2024		2023
Revaluation impact at market value of bonds		(1,372)		(568)		(765)
Swaps hedging bonds		1,385		569		767
INEFFECTIVE PORTION OF THE FAIR VALUE HEDGE		13		1		2

The ineffective portion is not representative of TotalEnergies’ performance considering its objective to hold swaps to maturity. The current portion of the swaps valuation is not subject to active management.

Net investment hedge

As of December 31, 2025, 2024 and 2023 TotalEnergies had no open forward contracts held in respect of net investment hedge strategies.

Cash flow hedge

The impact on the income statement and other comprehensive income of the bonds hedging instruments qualified as cash flow hedges is detailed as follows:


For the year ended December 31,
(M$)	2025	2024	2023
Profit (Loss) recorded in other comprehensive income of the period	(330)	448	128
Recycled amount from other comprehensive income to the income statement of the period	158	(260)	140

As of December 31, 2025, 2024 and 2023, the ineffective portion of these financial instruments is nil.

Hedging instruments and hedged items by strategy

Fair Value Hedge

The following charts regarding Fair Value Hedge, disclose by nature of hedging instruments (Interest Rate Swaps and Cross Currency Swaps):

The nominal amounts and carrying amounts of hedging instruments;

The carrying amounts of hedged items and cumulative FVH adjustments included in the carrying amounts of the hedged items;

The hedged items that have ceased to be adjusted for hedging gains and losses.

For the year ended December 31, 2025

(M$)

Cumulative FVH

Nominal

adjustments included

amount of

Carrying amount of

in the carrying amount

Line items in the

Hedging

hedging

hedging instruments

hedged items

of the hedged items

statement of

Hedged items

instruments

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

financial position

Interest Rate

Financial debt /

Bonds

Swaps

5,250

(295)

–

(5,028)

222

–

Financial assets

Cross Currency

Financial debt /

Bonds

Swaps

3,454

(216)

–

(3,391)

–

Financial assets

End of hedging (before 2018)

–

For the year ended December 31, 2024

(M$)

Cumulative FVH

Nominal

adjustments included

amount of

Carrying amount of

in the carrying amount

Line items in the

Hedging

hedging

hedging instruments

hedged items

of the hedged items

statement of

Hedged items

instruments

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

financial position

Interest Rate

Financial debt /

Bonds

Swaps

6,250

–

(230)

–

(6,103)

–

147

Financial assets

Cross Currency

Financial debt /

Bonds

Swaps

4,084

(618)

–

(3,588)

–

496

Financial assets

End of hedging (before 2018)

–

For the year ended December 31, 2023

Cumulative FVH

(M$)

Nominal

adjustments included

amount of

Carrying amount of

in the carrying amount

Line items in the

Hedging

hedging

hedging instruments

hedged items

of the hedged items

statement of

Hedged items

instruments

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

financial position

Bonds

Interest Rate
Swaps

3,500

–

(86)

–

(3,457)

–

Financial debt /
Financial assets

Bonds

Cross Currency
Swaps

4,671

(559)

–

(4,232)

–

439

Financial debt /
Financial assets

End of hedging (before 2018)

–

Cash flow hedge

The following charts regarding cash flow hedge disclose the nominal amounts and carrying amounts by nature of hedging instruments (interest rate swaps and cross currency swaps).

According to IFRS 9, there is no accounting entry related to cash flow hedge on hedged items.


				Nominal
		Nature of		amount of		Carrying amount of			Line items in the
For the year ended December 31, 2025		hedging		hedging		hedging instruments			statement of
(M$)		instruments		instruments		Assets		Liabilities	financial position
		Interest Rate							Financial debt /
Bonds		Swaps		11,998		411		(28)	Financial assets
		Cross Currency							Financial debt /
Bonds		Swaps		13,126		365		(641)	Financial assets


				Nominal
		Nature of		amount of		Carrying amount of			Line items in the
For the year ended December 31, 2024		hedging		hedging		hedging instruments			statement of
(M$)		instruments		instruments		Assets		Liabilities	financial position
		Interest Rate							Financial debt /
Bonds		Swaps		12,577		543		–	Financial assets
		Cross Currency							Financial debt /
Bonds		Swaps		15,055		5		(1,890)	Financial assets


				Nominal
		Nature of		amount of		Carrying amount of			Line items in the
For the year ended December 31, 2023		hedging		hedging		hedging instruments			statement of
(M$)		instruments		instruments		Assets		Liabilities	financial position
		Interest Rate							Line items in the statement of
Bonds		Swaps		12,023		611		–	financial position
		Cross Currency							Financial debt /
Bonds		Swaps		17,511		108		(1,821)	Financial assets

C) Maturity of derivative instruments

The maturity of the notional amounts of derivative instruments, excluding the commodity contracts, is detailed in the following table:

For the year ended December 31, 2025

2026

2027 and beyond

Notional value schedule 2027 and beyond

(M$)

Fair

Notional

Fair

Notional

2031

Assets / (Liabilities)

value

2027

2028

2029

2030

and beyond

Fair value hedge

Swaps hedging bonds (assets)

202

1,451

Swaps hedging bonds (liabilities)

–

(511)

7,051

Total swaps hedging bonds - fair value hedge

202

(443)

8,502

820

1,000

789

875

5,018

Cash flow hedge

Swaps hedging bonds (assets)

823

744

14,879

Swaps hedging bonds (liabilities)

(218)

3,245

(451)

6,177

Total swaps hedging bonds - cash flow hedge

(186)

4,068

293

21,056

2,070

4,672

5,643

450

8,221

Forward exchange contracts related to operating activities (assets)

358

328

Forward exchange contracts related to operating activities (liabilities)

(1)

(3)

325

Total forward exchange contracts related to operating activities

457

653

328

325

–

Held for trading

Other interest rate swaps (assets)

137

50,776

250

30,186

Other interest rate swaps (liabilities)

(124)

41,730

(252)

31,207

Total other interest rate swaps

92,506

(2)

61,393

31,266

7,141

3,878

2,983

16,124

Currency swaps and forward exchange contracts (assets)

7,052

360

Currency swaps and forward exchange contracts (liabilities)

(46)

9,860

(6)

515

Total currency swaps and forward exchange contracts

(14)

16,912

(1)

875

735

140

–

Notional amounts set the levels of commitment and are indicative nor of a contingent gain or loss neither of a related debt.

For the year ended December 31, 2024

2025

2026 and beyond

Notional value schedule 2026 and beyond

(M$)

Fair

Notional

Fair

Notional

2030

Assets / (Liabilities)

value

2026

2027

2028

2029

and beyond

Fair value hedge

Swaps hedging bonds (assets)

–

403

Swaps hedging bonds (liabilities)

(45)

1,630

(803)

8,301

Total swaps hedging bonds - fair value hedge

(45)

1,630

(776)

8,704

202

820

1,000

789

5,893

Cash flow hedge

Swaps hedging bonds (assets)

2,428

519

11,317

Swaps hedging bonds (liabilities)

(380)

2,059

(1,510)

11,828

Total swaps hedging bonds - cash flow hedge

(351)

4,487

(991)

23,145

4,116

2,143

4,740

5,667

6,479

Forward exchange contracts related to operating activities (assets)

–

Forward exchange contracts related to operating activities (liabilities)

(13)

271

(23)

634

Total forward exchange contracts related to operating activities

(13)

365

(23)

634

307

327

–

Held for trading

Other interest rate swaps (assets)

154

50,861

342

36,851

Other interest rate swaps (liabilities)

(124)

59,075

(281)

36,220

Total other interest rate swaps

109,936

73,071

52,496

8,714

2,739

2,821

6,300

Currency swaps and forward exchange contracts (assets)

196

17,698

322

Currency swaps and forward exchange contracts (liabilities)

(115)

5,212

–

(45)

Total currency swaps and forward exchange contracts

22,910

277

116

161

–

Notional amounts set the levels of commitment and are indicative nor of a contingent gain or loss neither of a related debt.

For the year ended December 31, 2023

2024

2025 and beyond

Notional value schedule 2025 and beyond

(M$)

Fair

Notional

Fair

Notional

2029

Assets / (Liabilities)

value

2025

2026

2027

2028

and beyond

Fair value hedge

Swaps hedging bonds (assets)

–

250

403

Swaps hedging bonds (liabilities)

(75)

1,837

(570)

5,681

Total swaps hedging bonds - fair value hedge

(75)

2,087

(525)

6,084

1,630

202

820

1,000

2,432

Cash flow hedge

Swaps hedging bonds (assets)

2,114

628

14,830

Swaps hedging bonds (liabilities)

(193)

1,574

(1,628)

11,016

Total swaps hedging bonds - cash flow hedge

(102)

3,688

(1,000)

25,846

4,509

4,153

2,135

4,686

10,363

Forward exchange contracts related to operating activities (assets)

311

Forward exchange contracts related to operating activities (liabilities)

(14)

234

(2)

240

Total forward exchange contracts related to operating activities

(12)

317

551

285

266

–

Held for trading

Other interest rate swaps (assets)

149

38,415

393

7,690

Other interest rate swaps (liabilities)

(94)

37,170

(208)

7,407

Total other interest rate swaps

75,585

185

15,097

8,692

1,580

1,500

1,908

1,417

Currency swaps and forward exchange contracts (assets)

10,325

1,071

Currency swaps and forward exchange contracts (liabilities)

(84)

8,513

(32)

773

Total currency swaps and forward exchange contracts

(18)

18,838

(11)

1,844

1,840

(2)

–

Notional amounts set the levels of commitment and are indicative nor of a contingent gain or loss neither of a related debt.

D) Fair value hierarchy

Accounting principles

According to IFRS 13, fair values are estimated for the majority of TotalEnergies’ financial instruments, with the exception of publicly traded equity securities and marketable securities for which the market price is used.

Estimations of fair value, which are based on principles such as discounting future cash flows to present value, must be weighted by the fact that the value of a financial instrument at a given time may be influenced by the market environment (liquidity especially), and also the fact that subsequent changes in interest rates and exchange rates are not taken into account.

As a consequence, the use of different estimates, methodologies and assumptions could have a material effect on the estimated fair value amounts.

The methods used are as follows:

- Financial debts, swaps

The market value of swaps and of bonds that are hedged by those swaps has been determined on an individual basis by discounting future cash flows with the market curves existing at year-end.

- Other financial instruments

The fair value of interest rate swaps and of FRA’s (Forward Rate Agreements) is calculated by discounting future cash flows on the basis of market curves existing at year-end after adjustment for interest accrued but unpaid. Forward exchange contracts and currency swaps are valued on the basis of a comparison of the negotiated forward rates with the rates in effect on the financial markets at year-end for similar maturities.

Exchange options are valued based on models commonly used by the market.

The fair value hierarchy for financial instruments, excluding commodity contracts, is as follows:


	Quoted prices in
	active markets	Prices based	Prices based on
	for identical	on observable	non observable
As of December 31, 2025	assets	data	data
(M$)	(level 1)	(level 2)	(level 3)	Total
Fair value hedge instruments	–	(394)	–	(394)
Cash flow hedge instruments	–	142	–	142
Assets and liabilities held for trading	–	(6)	–	(6)
Equity instruments	290	–	–	290
TOTAL	290	(258)	–	32


		Quoted prices in
		active markets		Prices based		Prices based on
		for identical		on observable		non observable
As of December 31, 2024		assets		data		data
(M$)		(level 1)		(level 2)		(level 3)		Total
Fair value hedge instruments		–		(821)		–		(821)
Cash flow hedge instruments		–		(1,375)		–		(1,375)
Assets and liabilities held for trading		–		174		–		174
Equity instruments		391		–		–		391
TOTAL		391		(2,022)		–		(1,631)


	Quoted prices in
	active markets	Prices based	Prices based on
	for identical	on observable	non observable
As of December 31, 2023	assets	data	data
(M$)	(level 1)	(level 2)	(level 3)	Total
Fair value hedge instruments	–	(600)	–	(600)
Cash flow hedge instruments	–	(1,104)	–	(1,104)
Assets and liabilities held for trading	–	207	–	207
Equity instruments	255	–	–	255
TOTAL	255	(1,497)	–	(1,242)

15.3 FINANCIAL RISKS MANAGEMENT

Financial markets related risks

As part of its financing and cash management activities, TotalEnergies uses derivative instruments to manage its exposure to changes in interest rates and foreign exchange rates. These instruments are mainly interest rate and currency swaps. TotalEnergies may also occasionally use futures contracts and options. These operations and their accounting treatment are detailed in Notes 14, 15.1 and 15.2 to the Consolidated Financial Statements.

Risks relative to cash management operations and to interest rate and foreign exchange financial instruments are managed according to rules set by TotalEnergies’ General Management, which provide for regular pooling of available cash balances, open positions and management of the financial instruments by the Treasury Department. Excess cash of TotalEnergies is deposited mainly in government institutions, banking institutions, or major companies through deposits, reverse repurchase agreements and purchase of commercial paper. Liquidity positions and the management of financial instruments are centralized by the Treasury Department, where they are managed by a team specialized in foreign exchange and interest rate market transactions.

The Cash Monitoring-Management Unit within the Treasury Department monitors limits and positions per bank on a daily basis and results of the Front Office. This unit also prepares marked-to-market valuations of used financial instruments and, when necessary, performs sensitivity analyses.

Counterparty risk

TotalEnergies has established standards for market transactions under which any banking counterparty must be approved in advance, based on an assessment of the counterparty’s financial solidity (multi-criteria analysis including notably a review of its Credit Default Swap (CDS) level, financial credit ratings, which must be of high standing, and general financial situation).

An overall credit limit is set for each authorised financial counterparty and is allocated amongst the affiliates and TotalEnergies’ central treasury entities, according to TotalEnergies’ financial needs.

Reform of benchmarks risk

The transition to IBOR indices did not have a significant impact on the financial instruments managed by the Treasury Department of TotalEnergies. The USD LIBOR maturities ceased to be published end of June 2023 and was replaced by the SOFR. Furthermore, in Europe, the Eonia rate ceased to be published on January 3, 2022 and was replaced by the ESTR rate.

Bonds and associated derivatives impacted by the IBOR reform are presented in Note 15.1 “Financial debt and related financial instruments”.

Short-term interest rate exposure and cash

Cash balances, primarily composed of euros and dollars, are managed according to the guidelines established by TotalEnergies’ General Management (to maintain an adequate level of liquidity, optimize revenue from investments considering existing interest rate yield curves, and minimize the cost of borrowing) based on a daily interest rate benchmark, primarily through short-term interest rate swaps and short-term currency swaps.

Interest rate risk on non-current debt

TotalEnergies’ policy consists in incurring long-term debt at a floating or fixed rate, depending on TotalEnergies’ general corporate needs and the interest rate environment at the time of issuance, mainly in dollars or euros. Long-term interest rate and currency swaps may be entered into for the purpose of hedging bonds at the time of issuance, synthetically resulting in the incurrence of variable or fixed rate debt. In order to partially alter the interest rate exposure of its long-term indebtedness, TotalEnergies may also enter into long-term interest rate swaps on an ad-hoc basis.

Currency exposure

TotalEnergies generally seeks to minimize the currency exposure of each entity to its functional currency (primarily the dollar, the euro, the pound sterling and the Norwegian krone).

For currency exposure generated by commercial activity, the hedging of revenues and costs in foreign currencies is typically performed using currency operations on the spot market and, in some cases, on the forward market. TotalEnergies rarely hedges future cash flows, although it may use options to do so.

With respect to currency exposure linked to non-current assets, TotalEnergies has a hedging policy of financing these assets in their functional currency.

Net short-term currency exposure is periodically monitored against limits set by TotalEnergies’ General Management.

The non-current debt described in Note 15.1 to the Consolidated Financial Statements is generally raised by the corporate treasury entities either directly in dollars or in euros, or in other currencies which are then exchanged for dollars or euros through swap issuances to appropriately match general corporate needs. The proceeds from these debt issuances are loaned to affiliates whose accounts are kept in dollars or in euros. Thus, the net sensitivity of these positions to currency exposure is not significant.

TotalEnergies’ short-term currency swaps, the notional value of which appears in Note 15.2 to the Consolidated Financial Statements, are used to attempt to optimize the centralized cash management of TotalEnergies. Thus, the sensitivity to currency fluctuations which may be induced is likewise considered negligible.

Sensitivity analysis on interest rate and foreign exchange risk

The tables below present the potential impact of an increase or decrease of 10 basis points on the interest rate yield curves for each of the currencies on the fair value of the current financial instruments as of December 31, 2025, 2024 and 2023.


			Change in fair value due to a change in
			interest rate by
Assets / (Liabilities)	Carrying	Estimated	+ 10 basis	- 10 basis
(M$)	amount	fair value	points	points
As of December 31, 2025
Bonds (non-current portion, before swaps)	(37,895)	(38,347)	343	(343)
Swaps hedging bonds (liabilities)	(962)	(962)	–	–
Swaps hedging bonds (assets)	812	812	–	–
Total swaps hedging bonds (assets and liabilities)	(150)	(150)	(15)	15
Current portion of non-current debt after swaps (excluding lease obligations)	(2,677)	(2,671)	3	(3)
Other interest rates swaps	11	11	3	(3)
Currency swaps and forward exchange contracts	(15)	(15)	–	–
As of December 31, 2024
Bonds (non-current portion, before swaps)	(31,434)	(31,806)	291	(291)
Swaps hedging bonds (liabilities)	(2,313)	(2,313)	–	–
Swaps hedging bonds (assets)	546	546	–	–
Total swaps hedging bonds (assets and liabilities)	(1,767)	(1,767)	(54)	54
Current portion of non-current debt after swaps (excluding lease obligations)	(3,863)	(3,851)	3	(3)
Other interest rates swaps	91	91	3	(3)
Currency swaps and forward exchange contracts	86	86	–	–
As of December 31, 2023
Bonds (non-current portion, before swaps)	(28,365)	(29,216)	162	(162)
Swaps hedging bonds (liabilities)	(2,198)	(2,198)	–	–
Swaps hedging bonds (assets)	673	673	–	–
Total swaps hedging bonds (assets and liabilities)	(1,525)	(1,525)	(12)	12
Current portion of non-current debt after swaps (excluding lease obligations)	(5,669)	(5,680)	(1)	(7)
Other interest rates swaps	240	240	17	(17)
Currency swaps and forward exchange contracts	(29)	(29)	–	–

The impact of changes in interest rates on the cost of net debt before tax is as follows:


For the year ended December 31,
(M$)	2025	2024	2023
Cost of net debt	(2,067)	(1,230)	(1,019)
Interest rate translation of :
+ 10 basis points	17	15	10
‑ 10 basis points	(17)	(15)	(10)

As a result of the policy for the management of currency exposure previously described, TotalEnergies’ sensitivity to currency exposure is primarily influenced by the net equity of the subsidiaries whose functional currency is the euro and to a lesser extent, the pound sterling and the Norwegian krone.

This sensitivity is reflected in the historical evolution of the currency translation adjustment recorded in the statement of changes in consolidated shareholders’ equity which, over the course of the last three years, is essentially related to the fluctuation of the euro and the pound sterling and is set forth in the table below:


	Dollar / Euro exchange	Dollar / Pound sterling
Closing rate	rates	exchange rates
December 31, 2025	0.85	0.74
December 31, 2024	0.96	0.80
December 31, 2023	0.90	0.79


As of December 31, 2025				Pound	Other
(M$)	Total	Euro	Dollar	sterling	currencies
Shareholders’ equity at historical exchange rate	128,916	16,012	93,346	4,116	15,442
Currency translation adjustment before net investment hedge	(14,028)	(7,875)	–	(2,144)	(4,009)
Net investment hedge – open instruments	(5)	(5)	–	–	–
Shareholders’ equity at exchange rate as of December 31, 2025	114,883	8,132	93,346	1,972	11,433


As of December 31, 2024				Pound	Other
(M$)	Total	Euro	Dollar	sterling	currencies
Shareholders’ equity at historical exchange rate	133,117	20,336	93,078	4,439	15,264
Currency translation adjustment before net investment hedge	(15,254)	(8,584)	–	(2,372)	(4,298)
Net investment hedge – open instruments	(5)	(5)	–	–	–
Shareholders’ equity at exchange rate as of December 31, 2024	117,858	11,747	93,078	2,067	10,966


As of December 31, 2023				Pound	Other
(M$)	Total	Euro	Dollar	sterling	currencies
Shareholders’ equity at historical exchange rate	130,454	19,198	92,202	4,732	14,322
Currency translation adjustment before net investment hedge	(13,696)	(7,881)	–	(2,285)	(3,530)
Net investment hedge – open instruments	(5)	(5)	–	–	–
Shareholders’ equity at exchange rate as of December 31, 2023	116,753	11,312	92,202	2,447	10,792

Based on the 2025 financial statements, a conversion using rates different from + or - 10% for each of the currencies below would have the following impact on shareholders equity and net income (TotalEnergies share):


As of December 31, 2025		Pound
(M$)	Euro	sterling
Impact of an increase of 10% of exchange rates on:
– Shareholders’ equity	813	197
– net income (TotalEnergies share)	(53)	25
Impact of a decrease of (10)% of exchange rates on:
– Shareholders’ equity	(813)	(197)
– net income (TotalEnergies share)	53	(25)

Stock market risk

TotalEnergies holds interests in a number of publicly-traded companies (refer to Note 8 to the Consolidated Financial Statements). The market value of these holdings fluctuates due to various factors, including stock market trends, valuations of the sectors in which the companies operate, and the economic and financial condition of each individual company.

Liquidity risk

TotalEnergies SE has committed credit facilities granted by international banks allowing it to benefit from significant liquidity reserves.

As of December 31, 2025, these credit facilities amounted to $19,767 million and were entirely undrawn. The agreements underpinning credit facilities granted to TotalEnergies SE do not contain conditions related to TotalEnergies’ financial ratios, to its credit ratings from specialized agencies, or to the occurrence of events that could have a material adverse effect on its financial position.

As of December 31, 2025, the aggregated amount of the main committed credit facilities granted by international banks to the TotalEnergies’ companies, including TotalEnergies SE, was $20,398 million, of which $20,225 million were unutilized.

Credit facilities granted to the TotalEnergies’ companies other than TotalEnergies SE are not intended to fund TotalEnergies’ general corporate purposes; they are intended to fund either general corporate purposes of the borrowing affiliate, or a specific project.

The following tables show the maturity of the financial assets and liabilities of TotalEnergies as of December 31, 2025, 2024 and 2023 (refer to Note 15.1 to the Consolidated Financial Statements).

As of December 31, 2025

 

Assets/(Liabilities)

Less than

 

More than

(M$)

one year

1-2 years

2-3 years

3-4 years

4-5 years

5 years

Total

Non-current financial debt (notional value excluding interests)

–

(4,242)

(4,526)

(5,614)

(2,948)

(30,599)

(47,929)

Non-current financial assets excluding derivative financial instruments

–

401

138

215

264

1,186

2,204

Current borrowings

(12,038)

–

(12,038)

Other current financial liabilities

(388)

–

(388)

Current financial assets

3,332

–

3,332

Net financial assets and liabilities held for sale or exchange

(165)

–

(165)

Cash and cash equivalents

26,202

–

26,202

Net amount before financial expense

16,943

(3,841)

(4,388)

(5,399)

(2,684)

(29,413)

(28,782)

Financial expense on non-current financial debt

(1,052)

(1,021)

(1,027)

(934)

(885)

(14,193)

(19,112)

Interest differential on swaps

(263)

(211)

(213)

(160)

(90)

(415)

(1,352)

NET AMOUNT

15,628

(5,073)

(5,628)

(6,493)

(3,659)

(44,021)

(49,246)

As of December 31, 2024

 

Assets/(Liabilities)

Less than

 

More than

(M$)

one year

1-2 years

2-3 years

3-4 years

4-5 years

5 years

Total

Non-current financial debt (notional value excluding interests)

–

(4,109)

(3,889)

(4,459)

(5,521)

(24,662)

(42,640)

Non-current financial assets excluding derivative financial instruments

–

183

275

130

114

710

1,412

Current borrowings

(10,024)

–

(10,024)

Other current financial liabilities

(664)

–

(664)

Current financial assets

6,914

–

6,914

Net financial assets and liabilities held for sale or exchange

(44)

–

(44)

Cash and cash equivalents

25,844

–

25,844

Net amount before financial expense

22,026

(3,926)

(3,614)

(4,329)

(5,407)

(23,952)

(19,202)

Financial expense on non-current financial debt

(827)

(822)

(784)

(785)

(608)

(12,802)

(16,628)

Interest differential on swaps

(342)

(295)

(247)

(240)

(183)

(535)

(1,842)

NET AMOUNT

20,857

(5,043)

(4,645)

(5,354)

(6,198)

(37,289)

(37,672)

As of December 31, 2023

 

Assets/(Liabilities)

Less than

More than

(M$)

one year

1-2 years

2-3 years

3-4 years

4-5 years

5 years

Total

Non-current financial debt (notional value excluding interests)

–

(5,079)

(3,816)

(3,615)

(4,356)

(22,525)

(39,391)

Non-current financial assets excluding derivative financial instruments

–

132

107

244

100

725

1,308

Current borrowings

(9,590)

–

(9,590)

Other current financial liabilities

(446)

–

(446)

Current financial assets

6,585

–

6,585

Net financial assets and liabilities held for sale or exchange

(310)

–

(310)

Cash and cash equivalents

27,263

–

27,263

Net amount before financial expense

23,502

(4,947)

(3,709)

(3,371)

(4,256)

(21,800)

(14,581)

Financial expense on non-current financial debt

(469)

(517)

(460)

(430)

(390)

(4,242)

(6,508)

Interest differential on swaps

(355)

(265)

(261)

(216)

(209)

(537)

(1,843)

NET AMOUNT

22,678

(5,729)

(4,430)

(4,017)

(4,855)

(26,579)

(22,932)

The following table sets forth financial assets and liabilities related to operating activities as of December 31, 2025, 2024 and 2023 (refer to Note 14 of the notes to the Consolidated Financial Statements).


As of December 31,
Assets/(Liabilities)
(M$)		2025		2024		2023
Accounts payable		(38,065)		(39,932)		(41,335)
Other operating liabilities		(21,774)		(20,242)		(19,937)
including derivative financial instruments related to commodity contracts (liabilities)		(4,395)		(7,680)		(7,650)
Accounts receivable, net		18,559		19,281		23,442
Other operating receivables		13,932		16,846		14,952
including derivative financial instruments related to commodity contracts (assets)		5,710		9,072		7,012
TOTAL		(27,348)		(24,047)		(22,878)

These financial assets and liabilities mainly have a maturity date below one year.

Credit risk

Credit risk is defined as the risk of the counterparty to a contract failing to perform or pay the amounts due.

TotalEnergies is exposed to credit risks in its operating and financing activities. TotalEnergies’ maximum exposure to credit risk is partially related to financial assets recorded on its balance sheet, including energy derivative instruments that have a positive market value.

The following table presents TotalEnergies’ maximum credit risk exposure:


As of December 31,
Assets/(Liabilities)
(M$)		2025		2024		2023
Loans to equity affiliates (note 8)		7,425		6,533		4,562
Loans and advances (note 6)		2,241		2,175		2,222
Other non-current financial assets related to operational activities (note 6)		386		1,677		1,761
Non-current financial assets (note 15.1)		3,270		2,305		2,395
Accounts receivable (note 5)		18,559		19,281		23,442
Other operating receivables (note 5)		13,932		16,846		14,952
Current financial assets (note 15.1)		3,332		6,914		6,585
Cash and cash equivalents (note 15.1)		26,202		25,844		27,263
TOTAL		75,347		81,575		83,182

The valuation allowance on accounts receivable, other operating receivables and on loans and advances is detailed in Notes 5 and 6 to the Consolidated Financial Statements.

As part of its credit risk management related to operating and financing activities, TotalEnergies has developed margining agreements with certain counterparties. As of December 31, 2025, the net margin call paid amounted to $1,094 million (against $3,002 million paid as of December 31, 2024 and $2,435 million paid as of December 31, 2023).

TotalEnergies has established a number of programs for the sale of receivables, without recourse, with various banks, primarily to reduce its exposure to such receivables. As a result of these programs TotalEnergies retains no risk of payment default after the sale, but may continue to service the customer accounts as part of a service arrangement on behalf of the buyer and is required to pay to the buyer payments it receives from the customers relating to the receivables sold. As of December 31, 2025, the net value of receivables sold amounted to $9,864 million. TotalEnergies has substantially transferred all the risks and rewards related to receivables. No financial asset or liability remains recognized in the consolidated balance sheet after the date of sale.

The Company has also put in place supplier financing arrangements (reverse factoring). Under these arrangements, a bank commits to settle the amounts owed to participating suppliers in respect of the invoices that the Company owes them, and the Company reimburses the bank at a later date.

The Company accounts for these arrangements as trade payables as the original liabilities have not been substantially modified, in particular since the payment terms are not extended beyond the normal conditions agreed with other non‑participating suppliers.

The amount of operating liabilities concerned at year‑end is $842 million.

Credit risk is managed by TotalEnergies’ business segments as follows:

- Exploration & Production segment

Risks arising under contracts with government authorities or other oil companies or under long-term supply contracts necessary for the development of projects are evaluated during the project approval process. The long-term aspect of these contracts and the high-quality of the other parties lead to a low level of credit risk.

Risks related to commercial operations, other than those described above (which are, in practice, directly monitored by subsidiaries), are subject to procedures for establishing credit limits and reviewing outstanding balances.

- Integrated LNG & Integrated Power segments

Gas & Power activities

Trading of gas & power activities deal with counterparties in the energy, industrial and financial sectors throughout the world. Financial institutions providing credit risk coverage are highly rated international banks and insurance groups.

Potential counterparties are subject to credit assessment and approval before concluding transactions and are thereafter subject to regular review, including re-appraisal and approval of the limits previously granted.

The creditworthiness of counterparties is assessed based on an analysis of quantitative and qualitative data regarding financial standing and business risks, together with the review of any relevant third party and market information, such as data published by rating agencies. On this basis, credit limits are defined for each potential counterparty and, where appropriate, transactions are subject to specific authorizations.

Credit exposure, which is essentially an economic exposure or an expected future physical exposure, is permanently monitored and subject to sensitivity measures.

Credit risk is mitigated by the systematic use of industry standard contractual frameworks that permit netting, enable requiring added security in case of adverse change in the counterparty risk, and allow for termination of the contract upon occurrence of certain events of default.

About the professionals and retail gas and power sales activities, credit risk management policy is adapted to the type of customer either through the use of procedures of prepayments and appropriate collection, especially for mass customers or through credit insurances and sureties/guarantees obtaining. For the Professionals segment, the segregation of duties between the commercial and financial teams allows an “a priori” control of risks.

Other activities

Internal procedures include rules on credit risk management. Procedures to monitor customer risk are defined at the local level, especially for Saft Groupe (rules for the approval of credit limits, use of guarantees, monitoring and assessment of the receivables portfolio).

- Refining & Chemicals segment

Refining & Chemicals activities

Credit risk is primarily related to commercial receivables. Internal procedures of Refining & Chemicals include rules for the management of credit describing the fundamentals of internal control in this domain. Each Business Unit implements the procedures of the activity for managing and provisioning credit risk according to the size of the subsidiary and the market in which it operates. The principal elements of these procedures are:

implementation of credit limits with different authorization schemes;

use of insurance policies or specific guarantees (letters of credit);

regular monitoring and assessment of overdue accounts (aging balance), including dunning procedures.

Counterparties are subject to credit assessment and approval prior to any transaction being concluded. Regular reviews are made for all active counterparties including a re-appraisal and renewing of the granted credit limits. The limits of the counterparties are assessed based on quantitative and qualitative data regarding financial standing, together with the review of any relevant third party and market information, such as that provided by rating agencies and insurance companies.

Trading & Shipping activities

Trading & Shipping deals with commercial counterparties and financial institutions located throughout the world. Counterparties to physical and derivative transactions are primarily entities involved in the oil and gas industry or in the trading of energy commodities, or financial institutions. Credit risk coverage is arranged with financial institutions, international banks and insurance groups selected in accordance with strict criteria.

The Trading & Shipping division applies a strict policy of internal delegation of authority in order to set up credit limits by country and counterparty and approval processes for specific transactions. Credit exposures contracted under these limits and approvals are monitored on a daily basis.

Potential counterparties are subject to credit assessment and approval prior to any transaction being concluded and all active counterparties are subject to regular reviews, including re-appraisal and approval of granted limits. The creditworthiness of counterparties is assessed based on an analysis of quantitative and qualitative data regarding financial standing and business risks, together with the review of any relevant third party and market information, such as ratings published by Standard & Poor’s, Moody’s Investors Service and other credit-rating agencies.

Contractual arrangements are structured so as to maximize the risk mitigation benefits of netting between transactions wherever possible and additional protective terms providing for the provision of security in the event of financial deterioration and the termination of transactions on the occurrence of defined default events are used to the greatest permitted extent.

Credit risks in excess of approved levels are secured by means of letters of credit and other guarantees, cash deposits and insurance arrangements. In respect of derivative transactions, risks are secured by margin call contracts wherever possible.

- Marketing & Services segment

Internal procedures for the Marketing & Services division include rules on credit risk that describe the basis of internal control in this domain, including the segregation of duties between commercial and financial operations.

Credit policies are defined at the local level and procedures to monitor customer risk are implemented (credit committees at the subsidiary level, the creation of credit limits for corporate customers, etc.). Each entity also implements monitoring of its outstanding receivables. Risks related to credit may be mitigated or limited by subscription of credit insurance and/or requiring security or guarantees.