EX-99.9 10 y01581exv99w9.htm EX-99.9: 3RD QUARTER 2006 RESULTS EX-99.9
 

(TOTAL LOGO)
Exhibit 99.9
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. : 33 (1) 47 44 37 76
Patricia MARIE
Tel. : 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel. : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
(NEWS RELEASE)
Third quarter 2006 results stable at 3.1 billion euros
Interim dividend of 0.87 euro per share,
an increase of 16% (+25% expressed in dollars)1
Main results
 
         
• Third quarter 2006 adjusted net income2
  3.11 billion euros   —
 
  3.96 billion dollars3   +4%
 
 
  1.35 euros per share   +2%
 
  1.72 dollars per share   +6%
 
• Nine months 2006 adjusted net income4
  9.85 billion euros   +10%
 
  12.3 billion dollars   +8%
 
 
  4.24 euros per share   +12%
 
   5.28 dollars per share   +11%
         

 

Highlights since the start of the third quarter 2006
  •   Continuing exploration success
    •   Positive results in the Gulf of Mexico, Congo, Libya, Nigeria, Angola, Indonesia and UK North Sea
 
    •   New acreage in Nigeria, Indonesia, Colombia, Gulf of Mexico and the Netherlands
  •   Entry in two major LNG projects : Brass LNG in Nigeria and Ichthys LNG in Australia
 
  •   Launched development of the Tempa Rossa field in Italy
 
  •   Start-up of Phase I Joslyn field SAGD (steam-assisted gravity drain)
 
  •   Acquisition of 4.35% of Cepsa for 4.54 €/share as per the agreement with Santander to settle the arbitration process
 
  •   Agreement on new contractual framework in Bolivia and an increase in the share of Block XX to 75%
 
Paris, November 8, 2006 -— The Board of Directors of Total, chaired by CEO Thierry Desmarest, met on November 7, 2006 to review the consolidated accounts for the third quarter 2006. Adjusted net income was 3,111 million euros (M€) in the third quarter 2006, in line with the level of the third quarter 2005. Commenting on the results, Thierry Desmarest said :
« After a long period of advances, oil prices lost ground during the third quarter, following a slowdown in demand growth and as perceptions in the market about the risks related to
 
1   adjusted net income = net income using replacement cost (Group share) adjusted for special items and excluding Total’s share of amortization of intangibles related to the Sanofi-Aventis merger ; the changes in the adjusted net income and the interim dividend are relative to the third quarter 2005 ; assumes an exchange rate of 1€ = $1.27 on the payment date to calculate the change in the interim dividend expressed in dollars
 
2   percent changes are relative to the third quarter 2005
 
3   dollar amounts represent euro amounts converted at the average €/$ exchange rate for the period (1.2743 $/€ in the third quarter 2006, 1.2199 $/€ in the third quarter 2005, 1.2582 $/€ in the second quarter 2006, 1.2447 $/€ in the first nine months of 2006, and 1.2626 $/€ in the first nine months of 2005)
 
4   percent changes are relative to the first nine months of 2005


 

 

2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. : 33 (1) 47 44 37 76
Patricia MARIE
Tel. : 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel. : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
global oil supplies eased. Refining margins were lower than the very high levels reached in 2005 following hurricanes in the Gulf of Mexico, but market conditions for petrochemicals improved as the cost of naphtha fell near the end of the quarter.
Expressed in dollars, the 4% increase in adjusted net income reflects the benefits of a slightly more favorable environment, which were partially offset by an increase in UK petroleum taxes and lower production volumes. Nonetheless, the profitability of Total, 29% for the 12 months ended September 30, is still at the level of the best among the majors. This performance reflects the quality of the Group’s portfolio of activities and the benefit of continued capital discipline.
Total is continuing to implement its investment program, designed in particular to generate production growth of close to 4% per year on average for the period 2005 to 2010. Notably with the start-up of the giant Dalia field in Angola anticipated next month, the return to a period of strong growth is confirmed for 2007. The interim dividend was raised by 16%, a larger increase than the increase in net income, and this demonstrates that the company is confident of its ability to return to sustainable long-term strong production growth.»
•   Key figures from the consolidated accounts of Total5
                                                         
                        3Q06                         9M06  
                        vs     in millions of euros,                   vs  
3Q06     2Q06     3Q05     3Q05     except earnings per share and number of shares   9M06     9M05     9M05  
 
  38,357       40,909       37,055       +4 %  
Sales
     117,369       99,042       +19 %
 
  6,352       6,672       6,288       +1 %  
Adjusted operating income from business segments
     19,712       17,100       +15 %
 
  3,079       3,369       3,008       +2 %  
Adjusted net operating income from business segments
     9,688       8,659       +12 %
 
  2,033       2,391       2,202       -8 %  
• Upstream
     6,824       5,897       +16 %
  798       787       706       +13 %  
• Downstream
     2,235       2,117       +6 %
  248       191       100       +148 %  
• Chemicals
     629       645       -2 %
 
  3,111       3,361       3,126       —    
Adjusted net income
     9,848       8,951       +10 %
 
  1,35       1.45       1.33       +2 %  
Adjusted fully-diluted earnings per share (euros)6
     4.24       3.78       +12 %
 
  2,302.3       2,323.0       2,351.8       -2 %  
Fully-diluted weighted-average shares (millions)6
     2,320.4       2,366.9       -2 %
 
 
  2,419       3,441       3,645       -34 %  
Net income (Group share)
     9,543       9,932       -4 %
 
 
  2,667       2,779       3,357       -21 %  
Investments
     8,196       7,396       +11 %
 
  186       624       248       -25 %  
Divestments (at selling price)
     1,207       838       +44 %
 
  5,053       4,046       4,764       +6 %  
Cash flow from operations
     13,938       11,498       +21 %
 
  4,397       4,678       4,154       +6 %  
Adjusted cash flow from operations
     13,362       12,947       +3 %
 
•   Third quarter 2006 results
  >   Operating income
In the third quarter 2006, the average Brent price rose to 69.5 $/b, an increase of 13% compared to the third quarter 2005 and stable compared to the second quarter 2006. The TRCV European refining margin indicator fell to 28.7 $/t on average over the quarter, a
 
5   adjusted income is defined as income using replacement cost, adjusted for special items and excluding Total’s equity share of amortization of intangibles related to the Sanofi-Aventis merger ; adjusted cash flow from operations is defined as cash flow from operations before changes in working capital at replacement cost ; adjustment items are listed on page 14.
 
    Reminder : under IFRS rules for discontinued operations, the historical statements (3Q05 and 9M05) of income with the exception of net income, have been restated to exclude the contribution of Arkema.
 
6   adjusted retroactively to take into account the 4-for-1 stock split completed on May 18, 2006


 

2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. : 33 (1) 47 44 37 76
Patricia MARIE
Tel. : 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel. : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
decrease of 35% compared to the third quarter 2005 and 25% compared to the second quarter 2006.
Petrochemical margins in the Atlantic Basin moved higher relative to the same quarter last year and the previous quarter.
The euro/dollar exchange rate was 1.27 $/€ in the third quarter 2006 compared to 1.22 $/€ in the third quarter 2005 and 1.26 $/€ in the second quarter 2006.
In this context, the adjusted operating income from the business segments was 6,352 M€, an increase of 1% compared to the third quarter 20057.
Adjusted net operating income from the business segments was 3,079 M€ compared to 3,008 M€ in the third quarter 2005, or an increase of 2%. These results include charges in the third quarter 2006 related to the increase in UK petroleum taxes retroactive to January 1, 2006, of which 143 € is related to the first half of 2006. Excluding this 143 M€ charge, the increase in the adjusted net operating income from the business segments is 7%.
This increase, which is higher than the percentage increase in operating income, is due notably to the greater contribution of Chemicals in the results and to the performance of the equity affiliates.
  >   Net income
Adjusted net income was 3,111 M€ compared to 3,126 M€ in the third quarter 2005. This excludes the after-tax inventory effect, special items, and the Group’s equity share of amortization of intangibles related to the Sanofi-Aventis merger. Excluding the 143 M€ charge for the increase in UK petroleum taxes related to the first half of 2006, the increase in the adjusted net income is 4%.
The after-tax inventory effect (FIFO vs. replacement cost) had a negative effect of 478 M€ in the third quarter 2006 compared to a positive effect of 729 M€ in the third quarter 2005.
Special items had a negative impact on net income of 132 M€ in the third quarter 2006 and were composed mainly of the impact on deferred taxes related to the UK petroleum tax increase (a charge of 71 M€) and restructuring charges in the Chemicals segment. In the third quarter 2005, special items had a negative effect of 98 M€ and were composed mainly of Group’s equity share of special items recorded by Sanofi-Aventis.
The Group’s equity share of amortization of intangibles related to the Sanofi-Aventis merger had a negative impact on net income of 82 M€ in the third quarter 2006 and 112 M€ in the third quarter 2005.
Reported net income was 2,419 M€ compared to 3,645 M€ in the third quarter 2005.
The effective tax rate 8 for the Group increased to 56% in the third quarter 2006 from 55% in the third quarter 2005, mainly due to the increase in UK petroleum taxes. In the second quarter 2006, which did not include the increase in UK petroleum taxes, the effective tax rate was 55%.
In the third quarter 2006, the Group bought back 20 million of its shares9 for 1,035 M€.
Adjusted fully-diluted earnings per share, based on 2,302.3 million fully-diluted weighted-average shares, was 1.35 euros in the third quarter 2006 compared to 1.33 euros in the third quarter 2005, an increase of 2%. Excluding the charge for the increase in UK petroleum taxes related to the first half of 2006, the increase is 6%; expressed in dollars, it is 11%.
  >   Investments — divestments
Investments in the third quarter 2006 were 2,667 M€ (or approximately 3.4 billion dollars) compared to 3,357 M€ in the third quarter 2005. Excluding the 890 M€ acquisition of 82%
 
7   special items affecting operating income from business segments in the third quarter 2006 included restructuring charges in the Chemicals segment ; there were no special items affecting operating income from business segments in the third quarter 2005
 
8   defined as : (tax on adjusted net operating income) / (adjusted net operating income — income from equity affiliates, dividends received from investments and impairments of acquisition goodwill + tax on adjusted net operating income)
 
9   excludes 2.3 million shares which are reserved for share grants as per decision of the Board on July 18, 2006


 

2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. : 33 (1) 47 44 37 76
Patricia MARIE
Tel. : 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel. : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
of Deer Creek from the third quarter 2005, investments expressed in dollars increased by 13% between the third quarter 2005 and the third quarter 2006.
Divestments in the third quarter 2006 were 186 M€.
  >   Cash flow
Cash flow from operations was 5,053 M€, an increase of 6% compared to the third quarter 2005. Adjusted cash flow (cash flow from operations before changes in working capital at replacement cost) was 4,397 M€, an increase of 6%.
Net cash flow10 was 2,572 M€ compared to 1,655 M€ in the third quarter 2005.
 
 
10   net cash flow = cash flow from operations + divestments — investments


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Results for the first nine months of 2006
    > Operating income
Compared to the first nine months of 2005, the average oil market environment for the first nine months of 2006 was marked by a strong increase in oil prices (+25% for Brent to 67 $/b) and by a decrease in refining margins (-24% for the TRCV European refining margin indicator to 30.9 $/t).
The environment for Chemicals is generally comparable for the two periods.
The euro/dollar exchange rate was 1.24 $/€ compared to 1.26 $/€ in the first nine months of 2005.
In this context, the adjusted operating income from the business segments rose to 19,712 M€, an increase of 15% compared to the first nine months of 2005.
Special items affecting operating income from the business segments had a negative impact of 177 M€11 for the first nine months of 2006 and a negative impact of 11 M€11 for the same period last year.
Adjusted net operating income from the business segments rose to 9,688 M€ from 8,659 M€ in the first nine months of 2005, an increase of 12%. The lower percentage increase relative to the increase in operating income is mainly a function of the Upstream segment having a higher effective tax rate and representing a larger proportion of the results in the first nine months of 2006 compared to the first nine months of 2005.
    > Net income
Adjusted net income increased by 10% to 9,848 M€ from 8,951 M€ in the first nine months of 2005. This excludes the after-tax inventory effect, special items, and the Group’s equity share of amortization of intangibles related to the Sanofi-Aventis merger.
The after-tax inventory effect (FIFO vs. replacement cost) had a positive impact of 78 M€ in the first nine months of 2006 and a positive impact of 1,502 M€ in the first nine months of 2005. Special items had a negative impact on net income of 132 M€ in the first nine months of 2006 and a negative impact of 274 M€ in first nine months of 200511. The Group’s equity share of amortization of intangibles related to the Sanofi-Aventis merger had a negative impact on net income of 251 M€ in the first nine months of 2006 and a negative impact of 247 M€ in the first nine months of 2005.
Reported net income was 9,543 M€ versus 9,932 M€ in the first nine months of 2005.
The effective tax rate for the Group was 56% in the first nine months of 2006 and 53% in the first nine months of 2005. The increase in the UK petroleum taxes accounts for half of the increase. The large share of the Upstream in the results accounts for most of the remainder.
In the first nine months of 2006, the Group bought back 62 million of its shares12 for 3,229 M€. The number of fully-diluted shares as of September 30, 2006 was 2,294.6 million compared to 2,312.9 million on June 30, 2006 and 2,352.2 million on September 30, 2005. In October 2006, the Group bought back 4.7 million shares for 246 M€.
Adjusted fully-diluted earnings per share, based on 2,320.4 million fully-diluted weighted-average shares rose to 4.24 euros from 3.78 euros in the first nine months of 2005, an increase of 12%, which is a higher percentage increase than shown for the adjusted net income thanks to the accretive effect of the share buybacks.
 
11   details of these elements shown on page 14
 
12   excludes 2.3 million shares which are reserved for share grants as per decision of the Board on July 18, 2006


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
    > Investments — divestments
Investments were 8,196 M€ compared to 7,396 M€ in the first nine months of 2005. Investments expressed in dollars increased by 9% to 10.2 billion.
Divestments in the first nine months of 2006 were 1,207 M€ compared to 838 M€ for the first nine months of 2005 and include the sale of Upstream assets in the US and in France as well as the reimbursement of carried investments on Akpo in Nigeria.
    > Cash flow
Cash flow from operations was 13,938 M€, an increase of 21% compared to the first nine months of 2005.
Adjusted cash flow (cash flow from operations before changes in working capital at replacement cost) was 13,362 M€, an increase of 3%.
Net cash flow was 6,949 M€ compared to 4,940 M€ in the first nine months of 2005.
The net-debt-to-equity ratio was 26% at September 30, 2006 compared to 30% at June 30, 2006 and 26% at September 30, 200513, in line with the target range of the Group.
 
13   calculations detailed on page 15


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Analysis of segments results
Upstream
    > Environment — liquids and gas price realizations*
                                                         
                        3Q06                       9M06
                        vs                       vs
3Q06   2Q06   3Q05   3Q05       9M06   9M05   9M05
 
  69.5       69.6       61.5       +13 %  
Brent ($/b)
     67.0       53.7       +25 %
 
  65.4       66.2       57.8       +13 %  
Average liquids price ($/b)
     63.4       49.9       +27 %
 
  5.59       5.75       4.65       +20 %  
Average gas price ($/Mbtu)
     5.84       4.47       +31 %
 
• consolidated subsidiaries, excluding fixed margin and buy-back contracts
The increase in Total’s average liquids price was in line with the increase in the Brent price for both the third quarter and first nine months comparisons.
Total’s average gas price was lower in the third quarter 2006 than in the second quarter 2006 due to a decrease in spot prices. For the first nine months of 2006, gas prices have benefited from the lag effect on long-term contracts, essentially in Europe.
    > Production
                                                         
                        3Q06                       9M06
                        vs                       vs
3Q06   2Q06   3Q05   3Q05   Hydrocarbon production   9M06   9M05   9M05
 
  2,294       2,290       2,428       -6 %  
Combined production (kboe/d)
     2,341       2,498       -6 %
 
  1,485       1,466       1,607       -8 %  
• Liquids (kb/d)
     1,503       1,631       -8 %
  4,411       4,501       4,491       -2 %  
• Gas (Mcfd)
     4,568       4,742       -4 %
 
Hydrocarbon production was 2,294 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2006 compared to 2,428 kboe/d in the third quarter 2005, a decrease of 5.5%, mainly as a result of :
  •   -2.5% due to the price effect14,
 
  •   -1% due to divestments of onshore US assets,
 
  •   -2% due to production shut-downs in the Niger Delta area due to safety issues.
Excluding these elements, the positive impact of new field start-ups were offset by the effects of normal declines, unscheduled maintenance and the termination of the Jusepin field contract in Venezuela.
Production volumes were stable from the second to the third quarter 2006. The level of maintenance programs was generally unchanged. The re-start of the Girassol field was offset by production shut-downs and lower off-takes in the Netherlands.
 
14   impact of hydrocarbon prices on entitlement volumes from production sharing and buy-back contracts


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
    > Results
                                                         
                        3Q06                       9M06
                        vs                       vs
3Q06   2Q06   3Q05   3Q05   in millions of euros   9M06   9M05   9M05
 
  5,000       5,376       5,199       -4 %  
Adjusted operating income*
     15,977       13,421       +19 %
 
  2,033       2,391       2,202       -8 %  
Adjusted net operating income*
     6,824       5,897       +16 %
  172       155       113       +52 %  
• Income from equity affiliates
     470       328       +43 %
 
                               
 
                        
 
  2,073       2,209       2,589       -20 %  
Investments
     6,363       5,590       +14 %
 
  80       502       161       -50 %  
Divestments at selling price
     935       551       +70 %
 
  2,534       3,371       2,818       -10 %  
Cash flow
     9,736       7,737       +26 %
 
* detail of adjustment items shown in business segment information
Adjusted net operating income for the Upstream segment was 2,033 M€ in the third quarter 2006 compared to 2,202 M€ in the third quarter 2005, a decrease of 8%.
The third quarter 2006 includes a charge of 143 M€ for the increase in the UK petroleum taxes related to the first half of 2006 and 60 M€ for the third quarter 2006. Excluding the charge for the increase in UK petroleum taxes related to the first half of 2006, the decrease would be limited to 1%.
Excluding the increase in UK petroleum taxes in its entirety, the adjusted net operating income for the Upstream segment would have increased by 2%. This increase corresponds to the improvement in the equity affiliates, which reflects the stronger oil market environment and in particular includes the growing contribution from trains 4 and 5 at Nigeria LNG.
The positive effect of higher oil and gas prices was offset by the negative impact of lower sales volumes, a decline in the value of the dollar and higher exploration and production expenses.
The average Upstream tax rate increased to 64% in the third quarter 2006 from 60% in the third quarter 2005 and the second quarter 2006, essentially due to higher oil and gas prices and the increase in the UK petroleum taxes. The impact of including the charge for the increase in the UK petroleum taxes related to the first half of 2006 in the third quarter 2006 is about 3%.
The recurring effect on the tax rate of the Upstream segment caused by the increase in the UK petroleum tax is expected to be approximately 1.5%.
The return on average capital employed (ROACE15) for the Upstream segment for the twelve months ended September 30, 2006 was 39% compared to 37% for the twelve months ended September 30, 2005 and 40% for the full year 2005.
 
15   calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 16


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Downstream
    > Refinery throughout
                                                         
 
                        3Q06                       9M06
                        vs                       vs
3Q06   2Q06   3Q05   3Q05   Refinery throughput (kb/d)   9M06   9M05   9M05
 
  2,533       2,432       2,379       +6 %  
Total refinery throughput*
     2,462       2,407       +2 %
 
  976       888       951       +3 %  
• France
     922       944       -2 %
  1,257       1,214       1,124       +12 %  
• Rest of Europe*
     1,228       1,143       +7 %
  300       330       304       -1 %  
• Rest of world
     312       321       -3 %
 
* includes share of Cepsa
The refinery utilization rate was 92% in the third quarter 2006 compared to 88% in the third quarter 2005 and 86% in the second quarter 2006.
A major turnaround of the steam-cracker at the Port Arthur refinery began at the end of the third quarter 2006.
In the third quarter 2005, there were turnarounds at the Antwerp and Normandy refineries.
The utilization rate in the second quarter 2006 was affected by the completion of a turnaround at the Provence refinery.
    > Results
                                                         
 
                        3Q06               9M06
                        vs   in millions of euros           vs
3Q06   2Q06   3Q05   3Q05   (except the TRCV refining margin index)   9M06   9M05   9M05
 
  28.7       38.3       44.3       -35 %  
TRCV — European refining margin indicator ($/t)
     30.9       40.4       -24 %
 
  1,002       1,036       981       +2 %  
Adjusted operating income *
     2,894       2,816       +3 %
 
  798       787       706       +13 %  
Adjusted net operating income *
     2,235       2,117       +6 %
 
                               
 
                        
 
  64       81       71       -10 %  
• Income from equity affiliates
     206       211       -2 %
 
  383       368       493       -22 %  
Investments
     1,072       1,069       —  
 
  90       50       21       +329 %  
Divestments at selling price
     153       124       +23 %
 
  1,180       984       893       +32 %  
Cash flow
     3,365       2,512       +34 %
 
  1,142       1,087       796       +43 %  
Adjusted cash flow
     3,060       2,520       +21 %
 
* detail of adjustment items shown in business segment information
Adjusted net operating income for the Downstream segment was 798 M€ compared to 706 M€ in the third quarter 2005, an increase of 13%.
The negative impact of the less favorable refining environment was more than offset by improved conditions in the marketing sector as well as by the increase in refinery throughput and other favorable market effects.
The ROACE for the Downstream segment for the twelve months ended September 30, 2006 was 28% compared to 32% for the twelve months ended September 30, 2005 and 28% for the full year 2005.


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Chemicals
    > Results
Under IFRS rules for discontinued operations, the historical statements on income, with the exception of net income, have been restated to exclude the contribution of Arkema.
                                                         
 
                        3Q06                       9M06
                        vs                       vs
3Q06   2Q06   3Q05   3Q05   in millions of euros   9M06   9M05   9M05
 
  4,849       4,965       4,042       +20 %  
Sales
     14,503       12,471       +16 %
  3,135       3,122       2,402       +31 %  
• Base chemicals
     9,120       7,604       +20 %
  1,713       1,843       1,640       +4 %  
• Specialties
     5,382       4,867       +11 %
 
                               
 
                        
 
  350       260       108       +224 %  
Adjusted operating income*
     841       863       -3 %
 
  248       191       100       +148 %  
Adjusted net operating income*
     629       645       -2 %
  155       85       1       x155    
• Base chemicals
     318       369       -14 %
  87       109       88       -1 %  
• Specialties
     299       261       +15 %
 
                               
 
                        
 
  202       176       275       -27 %  
Investments
     702       678       +4 %
 
  4       67       —     ns  
Divestments at selling price
     99       30       +230 %
 
  291       (7 )     498       -42 %  
Cash flow
     247       785       -69 %
 
  329       255       213       +54 %  
Adjusted cash flow
     889       1,107       -20 %
 
*   detail of adjustment items shown in business segment information
Sales for the Chemicals segment increased by 20% to 4,849 M€ in the third quarter 2006 from 4,042 M€ in the third quarter 2005.
Adjusted net operating income for the Chemicals segment rose to 248 M€, a sharp increase from the third quarter 2005.
In a context of solid market demand, petrochemical margins benefited from a decrease in naphtha prices at the end of the quarter.
Specialties continue to benefit from global economic growth and have performed well taking into account the seasonality of certain activities.
The ROACE for the Chemicals segment for the twelve months ended September 30, 2006 was 13.5%, the same level as for the twelve months ended September 30, 2005. For the full year 2005, the ROACE for the Chemicals segment was 15%.


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Interim dividend
Net income for Total S.A., the parent company, was 3,429 M€ for the first nine months of 2006, compared to 2,763 M€ for the first nine months of 2005.
The Board of Directors met on November 7, 2006, and, after reviewing the accounts, approved an interim 2006 dividend of 0.87 euro per share, an increase of 16% compared to the interim dividend paid in November 2005.
Expressed in dollars, the increase is 25%16.
The payment date will be November 17, 2006.
l Summary and Outlook
For the twelve months ended September 30, 2006, the ROACE was 29% at the Group level and 32% at the level of the business segments, compared to 29% and 31% respectively for the twelve months ended September 30, 2005.
The return on equity for the twelve months ended September 30, 2006 was 34%.
The Group maintains its target range of around 25-30% for the net-debt-to-equity ratio.
Since the beginning of the fourth quarter 2006, oil prices have remained high, albeit at a level below the year-to-date average, and refining margins have maintained a level close to that of the third quarter 2006.
¨ ¨ ¨
To listen to the conference call with CFO Robert Castaigne and financial analysts today at 15:30 (Paris time), 14:30 (UK time) please call +44 (0)207 162 0025 in Europe or +1 334 323 6201 in the US (access code : Total) or log on to the company website www.total.com. For a replay, dial +44 (0)207 031 4064 in Europe or 1 954 334 0342 (code : 722207).
The September 30, 2006 notes to the consolidated accounts are available on the Total web site (www.total.com). This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business, strategy and plans of Total. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. Total does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the company’s financial results is provided in documents filed by the Group and its affiliates with the French Autorité des Marchés Financiers and the US Securities and Exchange Commission.
The business segment information is presented in accordance with the Group internal reporting system used by the Chief operating decision maker to measure performance and allocate resources internally. Due to their particular nature or significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, certain transactions such as restructuring costs or assets disposals, which are not considered to be representative of normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to recur within following years.
In accordance with IAS 2, the Group values inventories of crude oil and petroleum products in the financial statements in accordance with the FIFO (First in, First out) method and other inventories using the weighted-average cost method. However, in the note setting forth information by business segment, the Group continues to present the results for the Downstream segment according to the replacement cost method and those of the Chemicals segment according to the LIFO (Last in, First out) method in order to ensure the comparability of the Group’s results with those of its main competitors, notably from North America. The inventory valuation effect is the difference between the results according to the FIFO method and the results according to the replacement cost or LIFO method.
In this framework, performance measures such as adjusted operating income, adjusted net operating income and adjusted net income are defined as incomes using replacement cost, adjusted for special items and excluding Total’s equity share of the amortization of intangibles related to the Sanofi-Aventis merger. They are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
 
16   based on an exchange rate of 1€ = $1.27 on the date of payment


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Operating information by segment
Third quarter and first nine months of 2006
l Upstream
                                                         
 
                        3Q06                       9M06
                        vs   Combined liquids and gas production                   vs
3Q06   2Q06   3Q05   3Q05   by region (kboe/d)   9M06   9M05   9M05
 
  674       708       698       -3 %  
Europe
     720       773       -7 %
  716       692       753       -5 %  
Africa
     717       783       -8 %
  17       7       40       -58 %  
North America
     12       44       -73 %
  250       250       255       -2 %  
Far East
     251       248       +1 %
  396       402       407       -3 %  
Middle East
     403       394       +2 %
  234       225       266       -12 %  
South America
     231       247       -6 %
  7       6       9       -22 %  
Rest of world
     7       9       -22 %
 
  2,294       2,290       2,428       -6 %  
Total production
     2,341       2,498       -6 %
 
 
 
                        3Q06                       9M06
3Q06   2Q06   3Q05   vs   Liquids production by region (kb/d) 9M06 9M05   vs  
                        3Q05                       9M05
 
  354       358       367       -4 %  
Europe
     363       392       -7 %
  620       604       682       -9 %  
Africa
     626       703       -11 %
  7       1       9       -22 %  
North America
     3       10       -70 %
  28       29       30       -7 %  
Far East
     29       30       -3 %
  345       350       354       -3 %  
Middle East
     351       342       +3 %
  124       118       157       -21 %  
South America
     124       146       -15 %
  7       6       8       -13 %  
Rest of world
     7       8       -13 %
 
  1,485       1,466       1,607       -8 %  
Total production
     1,503       1,631       -8 %
 


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
                                                         
 
                        3Q06                       9M06  
3Q06   2Q06   3Q05   vs   Gas production by region (Mcfd)   9M06   9M05   vs  
                        3Q05                       9M05  
 
  1,738       1,900       1,798       -3 %  
Europe
     1,935       2,068       -6 %
  509       469       377       +35 %  
Africa
     478       426       +12 %
  48       31       159       -70 %  
North America
     48       180       -73 %
  1,240       1,231       1,252       -1 %  
Far East
     1,237       1,218       +2 %
  272       279       288       -6 %  
Middle East
     278       280       -1 %
  602       589       615       -2 %  
South America
     590       568       +4 %
  2       2       2       —    
Rest of world
     2       2       —  
 
  4,411       4,501       4,491       -2 %  
Total production
     4,568       4,742       -4 %
 
 
•   Downstream
 
 
                        3Q06                       9M06
3Q06   2Q06   3Q05   vs   Refined product sales by region (kb/d)*   9M06   9M05   vs
                        3Q05                       9M05
 
  2,688       2,658       2,702       -1 %  
Europe
     2,677       2,636       +2 %
  353       318       346       +2 %  
Africa
     329       335       -2 %
  583       603       714       -18 %  
Americas
     604       640       -6 %
  147       198       48       +206 %  
Rest of world
     192       176       +9 %
 
  3,771       3,777       3,810       -1 %  
Total
     3,802       3,787       —  
 
*   includes trading and equity share of Cepsa


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Adjustment items
l Adjustments to operating income from business segments
                                         
 
3Q06   2Q06   3Q05   in millions of euros   9M06   9M05
 
                       
Special items affecting operating income from
                
  (122 )     (50 )     —    
business segments
     (177 )     (11 )
 
  (10 )     (23 )     —    
• Restructuring charges
     (33 )     —  
  (50 )     —       —    
• Impairments
     (50 )     (11 )
  (62 )     (27 )     —    
• Other
     (94 )     —  
 
  (681 )     383       1,066    
Pre-tax inventory effect : FIFO vs. replacement cost
     75       2,179  
 
                       
 
                
 
                       
Total adjustments affecting operating income from
                
  (803 )     333       1,066    
business segments
     (102 )     2,168  
 
 
l Adjustments to net income (Group share)
 
 
3Q06   2Q06   3Q05   in millions of euros   9M06   9M05
 
  (132 )     (110 )     (98 )  
Special items affecting net income (Group share)
     (132 )     (274 )
 
  (2 )     (35 )     (87 )  
• Equity share of special items recorded by Sanofi-Aventis
     (35 )     (165 )
  —       —       —    
• Gain on asset sales
     130       —  
  (80 )     (44 )     —    
• Restructuring charges
     (139 )     (90 )
  (32 )     —       —    
• Impairments
     (32 )     (8 )
  (18 )     (31 )     (11 )  
• Other
     (56 )     (11 )
 
                       
Adjustment related to the Sanofi-Aventis merger*
                
  (82 )     (86 )     (112 )  
(share of amortization of intangible assets)
     (251 )     (247 )
 
  (478 )     276       729    
After-tax inventory effect : FIFO vs. replacement cost
     78       1,502  
 
                       
 
                
 
  (692 )     80       519    
Total adjustments to net income
     (305 )     981  
 
*   based on 13% participation in Sanofi-Aventis at 9/30/2006, 6/30/2006 and 9/30/2005


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Net-debt-to-equity ratio
                         
 
in millions of euros   9/30/2006     6/30/2006     9/30/2005  
 
Current borrowings
     11,426       13,707       12,856  
Net current financial instruments
     (108 )     45       (806 )
Non-current financial debt
     12,994       13,256       13,377  
Hedging instruments of non-current debt
     (526 )     (588 )     (599 )
Cash and cash equivalents
     (13,366 )     (14,602 )     (14,989 )
 
Net debt
     10,420       11,818       9,839  
 
 
                        
 
Shareholders equity
     41,761       40,272       39,725  
Accrued dividend payable based on shares at the close of the period*
     (2,756 )     (1,860 )     (2,362 )
Minority interests
     863       783       1,015  
 
Equity
     39,868       39,195       38,378  
 
Net-debt-to-equity ratio
     26.1 %     30.2 %     25.6 %
 
*   as of September 30, 2006, this represents a dividend of 1.62 €/share for each 2.5 € par value share
2006 Sensitivities*
                 
 
            Impact on operating   Impact on net
    Scenario   Change   income (e)   operating income (e)
 
€/$
  1.20 $/€   +0.1 € per $   +1.6 B€   +0.8 B€
 
Brent
  40-50 $/b   +1 $/b   +0.41 B€   +0.17 B€
 
TRCV — European refining margin indicator
  25 $/t   +1 $/t   +0.09 B€   +0.06 B€
 
*   sensitivities revised once per year upon publication of the previous year fourth quarter results


 

 
 
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : 33 (1) 47 44 68 21
Catherine ENCK
Tel. 33 (1) 47 44 37 76
Patricia MARIE
Tel. 33 (1) 47 44 45 90
Paul FLOREN
Tel. : 33 (1) 47 44 45 91
Christine de CHAMPEAUX
Tel : 33 (1) 47 44 47 49
Bertille ARON
Tel. : 33 (1) 47 44 67 12
Isabelle CABROL
Tel. : 33 (1) 47 44 64 24
Charles-Edouard ANFRAY
Tel. : 33 (1) 47 44 65 55
Franklin BOITIER
Tel. : 33 (1) 47 44 59 81
Philippe GATEAU
Tel. : 33 (1) 47 44 47 05
Burkhard REUSS
Tel. : 33 (1) 47 44 21 19
TOTAL S.A.
Capital 6 062 233 950 euros
542 051 180 R.C.S. Nanterre
www.total.com
Return on average capital employed
l For the 12 months ended September 30, 2006
                                         
 
in millions of euros   Upstream   Downstream   Chemicals**   Segments   Group
 
Adjusted net operating income
     8,956       3,034       951       12,941       13,680  
Capital employed at September 30, 2005*
     21,663       10,017       6,837       38,517       45,273  
Capital employed at September 30, 2006*
     24,561       11,431       7,257       43,249       50,371  
 
ROACE
     38.8 %     28.3 %     13.5 %     31.7 %     28.6 %
 
*   at replacement cost (excluding after-tax inventory effect)
 
**   capital employed for Chemicals reduced for Arkema by 2,268 M€ at 9/30/2005 and for the Toulouse-AZF provision of 45 M€ pre-tax at 9/30/2005 and 85 M€ pre-tax at 9/30/2006
l For the 12 months ended September 30, 2005
                                         
 
in millions of euros   Upstream   Downstream   Chemicals**   Segments   Group
 
Adjusted net operating income
     7,302       2,955       917       11,174       11,943  
Capital employed at September 30, 2004*
     17,700       8,451       6,776       32,927       37,157  
Capital employed at September 30, 2005*
     21,663       10,017       6,837       38,517       45,274  
 
ROACE
     37.1 %     32.0 %     13.5 %     31.3 %     29.0 %
 
*   at replacement cost (excluding after-tax inventory effect)
 
**   capital employed for Chemicals reduced for Arkema by 2,411 M€ at 9/30/2004 and by 2,268 M€ at 9/30/2005 and for the Toulouse-AZF provision of 139 M€ pre-tax at 9/30/2004 and 45 M€ pre-tax at 9/30/2005
l For the full year 2005
                                         
 
in millions of euros   Upstream   Downstream   Chemicals**   Segments   Group
 
Adjusted net operating income
     8,029       2,916       967       11,912       12,586  
Capital employed at December 31, 2004*
     16,280       9,654       6,205       32,139       38,314  
Capital employed at December 31, 2005*
     23,522       11,421       6,885       41,828       49,341  
 
ROACE
     40.3 %     27.7 %     14.8 %     32.2 %     28.7 %
 
*   at replacement cost (excluding after-tax inventory effect)
 
**   capital employed for Chemicals reduced by 2,058 M€ for Arkema at 12/31/2004 and 2,235 M€ at 12/31/2005 and for the Toulouse-AZF provision of 110 M€ pre-tax at 12/31/2004 and 133 M€ pre-tax at 12/31/2005

 

CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
                         
    3rd quarter     2nd quarter     3rd quarter  
Amounts in millions of euros (1)   2006     2006     2005  
 
Sales
     38,357       40,909       37,055  
Excise taxes
     (4,829 )     (5,141 )     (5,206 )
Revenues from sales
     33,528       35,768       31,849  
 
Purchases, net of inventory variation
     (21,642 )     (22,387 )     (19,537 )
Other operating expenses
     (5,001 )     (5,172 )     (3,721 )
Unsuccessful exploration costs
     (159 )     (146 )     (113 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (1,299 )     (1,212 )     (1,213 )
 
 
Operating income
                        
Corporate
     (122 )     (154 )     (89 )
Business segments *
     5,549       7,005       7,354  
 
Total operating income
     5,427       6,851       7,265  
 
 
                        
Other income
     56       72       3  
Other expense
     (161 )     (158 )     (28 )
 
                        
Financial interest on debt
     (545 )     (387 )     (314 )
Financial income from marketable securities and cash equivalents
     381       340       254  
Cost of net debt
     (164 )     (47 )     (60 )
 
                        
Other financial income
     144       201       98  
Other financial expense
     (74 )     (69 )     (76 )
Income taxes
     (3,262 )     (3,644 )     (3,751 )
Equity in income (loss) of affiliates
     529       376       278  
 
Consolidated net income from continuing operations (Group without Arkema)
     2,495       3,582       3,729  
 
Consolidated net income from discontinued operations (Arkema)
     (13 )     —       20  
 
Consolidated net income
     2,482       3,582       3,749  
 
Group share **
     2,419       3,441       3,645  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
     63       141       104  
 
Earnings per share (euro)
     1.06       1.49       1.56  
 
Fully-diluted earnings per share (euro) ***
     1.05       1.48       1.55  
 
 
                        
 
* Adjusted operating income from business segments
     6,352       6,672       6,288  
 
Adjusted net operating income from business segments
     3,079       3,369       3,008  
 
** Adjusted net income
     3,111       3,361       3,126  
 
*** Adjusted fully-diluted earnings per share (euro)
     1.35       1.45       1.33  
 
(1)   Except for earnings per share

 

 

CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
                 
    9 months     9 months  
Amounts in millions of euros (1)   2006     2005  
 
Sales
     117,369       99,042  
Excise taxes
     (14,577 )     (15,503 )
Revenues from sales
     102,792       83,539  
 
                
Purchases, net of inventory variation
     (64,471 )     (48,220 )
Other operating expenses
     (14,923 )     (12,424 )
Unsuccessful exploration costs
     (420 )     (277 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (3,742 )     (3,604 )
 
 
                
Operating income
                
Corporate
     (374 )     (254 )
Business segments *
     19,610       19,268  
 
Total operating income
     19,236       19,014  
 
 
                
Other income
     389       88  
Other expense
     (404 )     (105 )
 
                
Financial interest on debt
     (1,260 )     (844 )
Financial income from marketable securities and cash equivalents
     992       650  
Cost of net debt
     (268 )     (194 )
 
                
Other financial income
     451       297  
Other financial expense
     (194 )     (194 )
Income taxes
     (10,719 )     (9,623 )
Equity in income (loss) of affiliates
     1,349       888  
 
Consolidated net income from continuing operations (Group without Arkema)
     9,840       10,171  
 
Consolidated net income from discontinued operations (Arkema)
     (5 )     31  
 
Consolidated net income
     9,835       10,202  
 
Group share **
     9,543       9,932  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
     292       270  
 
Earnings per share (euro)
     4.15       4.22  
 
Fully-diluted earnings per share (euro) ***
     4.11       4.20  
 
 
                
 
* Adjusted operating income from business segments
     19,712       17,100  
 
Adjusted net operating income from business segments
     9,688       8,659  
 
** Adjusted net income
     9,848       8,951  
 
*** Adjusted fully-diluted earnings per share (euro)
     4.24       3.78  
 
(1)   Except for earnings per share

 

 

CONSOLIDATED BALANCE SHEET
TOTAL
                                 
    Amounts in millions of euros  
    September 30,     June 30,     December 31,     September 30,  
    2006     2006     2005     2005  
    (unaudited)     (unaudited)           (unaudited)  
 
ASSETS
                                
 
                                
NON-CURRENT ASSETS
                                
Intangible assets, net
     4,608       4,658       4,384       4,305  
Property, plant and equipment, net
     39,809       38,920       40,568       39,264  
Equity affiliates : investments and loans
     13,275       12,702       12,652       12,167  
Other investments
     1,635       1,656       1,516       1,302  
Hedging instruments of non-current financial debt
     526       588       477       599  
Other non-current assets
     2,204       2,186       2,794       1,905  
 
TOTAL NON-CURRENT ASSETS
     62,057       60,710       62,391       59,542  
 
 
                                
CURRENT ASSETS
                                
Inventories, net
     11,531       12,215       12,690       12,951  
Accounts receivable, net
     16,981       17,715       19,612       17,740  
Prepaid expenses and other current assets
     7,182       6,632       6,799       6,295  
Current financial instruments
     139       159       334       908  
Cash and cash equivalents
     13,366       14,602       4,318       14,989  
 
TOTAL CURRENT ASSETS
     49,199       51,323       43,753       52,883  
 
TOTAL ASSETS
     111,256       112,033       106,144       112,425  
 
 
                                
LIABILITIES & SHAREHOLDERS’ EQUITY
                                
 
                                
SHAREHOLDERS’ EQUITY
                                
Common shares
     6,063       6,179       6,151       6,226  
Paid-in surplus and retained earnings
     41,367       41,279       37,504       37,882  
Cumulative translation adjustment
     (501 )     (650 )     1,421       998  
Treasury shares
     (5,168 )     (6,536 )     (4,431 )     (5,381 )
 
SHAREHOLDERS’ EQUITY — GROUP SHARE
     41,761       40,272       40,645       39,725  
 
Minority interests and subsidiaries’ redeemable preferred shares
     863       783       838       1,015  
 
TOTAL SHAREHOLDERS’ EQUITY
     42,624       41,055       41,483       40,740  
 
 
                                
NON-CURRENT LIABILITIES
                                
Deferred income taxes
     7,133       6,909       6,976       7,653  
Employee benefits
     3,076       2,976       3,413       3,574  
Other non-current liabilities
     6,108       6,187       7,051       6,589  
 
TOTAL NON-CURRENT LIABILITIES
     16,317       16,072       17,440       17,816  
 
NON-CURRENT FINANCIAL DEBT
     12,994       13,256       13,793       13,377  
 
 
                                
CURRENT LIABILITIES
                                
Accounts payable
     13,338       14,149       16,406       13,473  
Other creditors and accrued liabilities
     14,526       13,590       13,069       14,061  
Current borrowings
     11,426       13,707       3,920       12,856  
Current financial instruments
     31       204       33       102  
 
TOTAL CURRENT LIABILITIES
     39,321       41,650       33,428       40,492  
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
     111,256       112,033       106,144       112,425  
 
The comparative balance sheets until December 31, 2005 include the sub group Arkema which was spun-off on May 12, 2006.

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
TOTAL
(unaudited)
                         
    3rd quarter     2nd quarter     3rd quarter  
Amounts in millions of euros   2006     2006     2005  
 
CASH FLOW FROM OPERATING ACTIVITIES
                        
 
                                
Consolidated net income
     2,482       3,582       3,749  
Depreciation, depletion and amortization
     1,343       1,253       1,315  
Non-current liabilities, valuation allowances and deferred taxes
     67       83       206  
Impact of coverage of pension benefit plans
     —       (37 )     —  
Unsuccessful exploration costs
     159       146       113  
(Gains) Losses on sales of assets
     (56 )     (72 )     (31 )
Undistributed affiliates equity earnings
     (380 )     111       (159 )
(Increase) Decrease in operating assets and liabilities
     1,337       (1,015 )     (456 )
Other changes, net
     101       (5 )     27  
 
CASH FLOW FROM OPERATING ACTIVITIES
     5,053       4,046       4,764  
 
 
                                
CASH FLOW USED IN INVESTING ACTIVITIES
                        
 
                        
Intangible assets and property, plant and equipment additions
     (2,157 )     (2,288 )     (2,178 )
Exploration costs charged directly to expense
     (118 )     (145 )     (84 )
Acquisitions of subsidiaries, net of cash acquired
     (25 )     (11 )     (903 )
Investments in equity affiliates and other securities
     (77 )     (64 )     (62 )
Increase in non-current loans
     (290 )     (271 )     (130 )
 
Total expenditures
     (2,667 )     (2,779 )     (3,357 )
Proceeds from sale of intangible assets and property, plant and equipment
     20       49       31  
Proceeds from sale of subsidiaries, net of cash sold
     —       —       —  
Proceeds from sale of non-current investments
     75       86       69  
Repayment of non-current loans
     91       489       148  
 
Total divestitures
     186       624       248  
 
CASH FLOW USED IN INVESTING ACTIVITIES
     (2,481 )     (2,155 )     (3,109 )
 
 
                        
CASH FLOW FROM FINANCING ACTIVITIES
                        
 
                        
Issuance (repayment) of shares:
                        
Parent company’s shareholders
     10       7       9  
Treasury shares
     (1,085 )     (968 )     (655 )
Minority shareholders
     2       1       8  
Subsidiaries’ redeemable preferred shares
     —       —       —  
Cash dividends paid:
                        
- Parent company’s shareholders
     —       (2,012 )     —  
- Minority shareholders
     —       (224 )     —  
Net issuance (repayment) of non-current debt
     682       395       1,197  
Increase (Decrease) in current borrowings
     (3,662 )     1,369       (759 )
Other changes, net
     —       —       —  
 
CASH FLOW FROM FINANCING ACTIVITIES
     (4,053 )     (1,432 )     (200 )
 
Net increase (decrease) in cash and cash equivalents
     (1,481 )     459       1,455  
Effect of exchange rates and changes in reporting entity
     245       (673 )     (43 )
Cash and cash equivalents at the beginning of the period
     14,602       14,816       13,577  
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
     13,366       14,602       14,989  
 
Third quarter 2005 cash flow statement includes the sub-group Arkema which was spun-off on May 12, 2006.

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
TOTAL
(unaudited)
                 
    9 months     9 months  
Amounts in millions of euros   2006     2005  
 
CASH FLOW FROM OPERATING ACTIVITIES
                
 
                                
Consolidated net income
     9,835       10,202  
Depreciation, depletion and amortization
     3,925       3,915  
Non-current liabilities, valuation allowances and deferred taxes
     244       1,070  
Impact of coverage of pension benefit plans
     (37 )     —  
Unsuccessful exploration costs
     420       277  
(Gains) Losses on sales of assets
     (389 )     (73 )
Undistributed affiliates equity earnings
     (644 )     (335 )
(Increase) Decrease in operating assets and liabilities
     501       (3,628 )
Other changes, net
     83       70  
 
CASH FLOW FROM OPERATING ACTIVITIES
     13,938       11,498  
 
 
                
CASH FLOW USED IN INVESTING ACTIVITIES
                
 
                
Intangible assets and property, plant and equipment additions
     (6,496 )     (5,674 )
Exploration costs charged directly to expense
     (373 )     (223 )
Acquisitions of subsidiaries, net of cash acquired
     (105 )     (903 )
Investments in equity affiliates and other securities
     (200 )     (134 )
Increase in non-current loans
     (1,022 )     (462 )
 
Total expenditures
     (8,196 )     (7,396 )
Proceeds from sale of intangible assets and property, plant and equipment
     329       225  
Proceeds from sale of subsidiaries, net of cash sold
     —       11  
Proceeds from sale of non-current investments
     164       112  
Repayment of non-current loans
     714       490  
 
Total divestitures
     1,207       838  
 
CASH FLOW USED IN INVESTING ACTIVITIES
     (6,989 )     (6,558 )
 
 
                
CASH FLOW FROM FINANCING ACTIVITIES
                
 
                
Issuance (repayment) of shares:
                
Parent company’s shareholders
     488       9  
Treasury shares
     (3,171 )     (2,674 )
Minority shareholders
     15       79  
Subsidiaries’ redeemable preferred shares
     —       (156 )
Cash dividends paid:
                
- Parent company’s shareholders
     (2,022 )     (1,765 )
- Minority shareholders
     (230 )     (152 )
Net issuance (repayment) of non-current debt
     1,807       2,235  
Increase (Decrease) in current borrowings
     5,911       7,433  
Other changes, net
     —       (1 )
 
CASH FLOW FROM FINANCING ACTIVITIES
     2,798       5,008  
 
Net increase (decrease) in cash and cash equivalents
     9,747       9,948  
Effect of exchange rates and changes in reporting entity
     (699 )     1,181  
Cash and cash equivalents at the beginning of the period
     4,318       3,860  
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
     13,366       14,989  
 
Nine months 2005 cash flow statement includes the sub-group Arkema which was spun-off on May 12, 2006.

 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
                                                                                 
                    Paid-in                                     Subsidiaries'              
                    surplus and     Cumulative                     Shareholders'     redeemable              
    Common shares issued     retained     Translation     Treasury shares     equity Groupe     preferred     Minority     Total  
(Amounts in millions of euros)   Number     Amount     earnings     adjustment     Number     Amount     share     shares     interests     equity  
 
As of January 1, 2005
     635,015,108       6,350       31,717       (1,429 )     (39,072,487 )     (5,030 )     31,608       147       663       32,418  
 
Net income for the first nine months
     —       —       9,932       —       —       —       9,932       1       269       10,202  
 
Items recognized directly in equity
     —       —       63       2,427       —       —       2,490       8       235       2,733  
 
Total excluding transactions with shareholders
     —       —       9,995       2,427       —       —       12,422       9       504       12,935  
 
Cash dividend
     —       —       (1,765 )     —       —       —       (1,765 )     —       (152 )     (1,917 )
 
Issuance of common shares
     1,076,359       11       77       —       —       —       88       —       —       88  
 
Purchase of treasury shares
     —       —       —       —       (15,693,500 )     (2,927 )     (2,927 )     —       —       (2,927 )
 
Sale of treasury shares (1)
     —       —       30       —       1,774,063       193       223       —       —       223  
 
Repayment of subsidiaries’ redeemable preferred shares
     —       —       —       —       —       —       —       (156 )     —       (156 )
 
Share-based payments
     —       —       76       —       —       —       76       —       —       76  
 
Transactions with shareholders
     1,076,359       11       (1,582 )     —       (13,919,437 )     (2,734 )     (4,305 )     (156 )     (152 )     (4,613 )
 
Cancellation of repurchased shares
     (13,527,578 )     (135 )     (2,248 )     —       13,527,578       2,383       —       —       —       —  
 
As of September 30, 2005
     622,563,889       6,226       37,882       998       (39,464,346 )     (5,381 )     39,725       —       1,015       40,740  
 
Net income for the fourth quarter
     —       —       2,341       —       —       —       2,341       —       100       2,441  
 
Items recognized directly in equity
     —       —       355       423       —       —       778       —       (192 )     586  
 
Total excluding transactions with shareholders
     —       —       2,696       423       —       —       3,119       —       (92 )     3,027  
 
Cash dividend
     —       —       (1,745 )     —       —       —       (1,745 )     —       (85 )     (1,830 )
 
Issuance of common shares
     100,397       1       11       —       —       —       12       —       —       12  
 
Purchase of treasury shares
     —       —       —       —       (2,625,000 )     (558 )     (558 )     —       —       (558 )
 
Sale of treasury shares (1)
     —       —       4       —       292,024       33       37       —       —       37  
 
Share-based payments
     —       —       55       —       —       —       55       —       —       55  
 
Transactions with shareholders
     100,397       1       (1,675 )     —       (2,332,976 )     (525 )     (2,199 )     —       (85 )     (2,284 )
 
Cancellation of repurchased shares
     (7,547,990 )     (76 )     (1,399 )     —       7,547,990       1,475       —       —       —       —  
 
As of December 31, 2005
     615,116,296       6,151       37,504       1,421       (34,249,332 )     (4,431 )     40,645       —       838       41,483  
 
Net income for the first nine months
     —       —       9,543       —       —       —       9,543       —       292       9,835  
 
Items recognized directly in equity
     —       —       159       (1,713 )     —       —       (1,554 )     —       (29 )     (1,583 )
 
Total excluding transactions with shareholders
     —       —       9,702       (1,713 )     —       —       7,989       —       263       8,252  
 
Four-for-one split of shares par value (2)
     1,845,348,888       —       —       —       (102,747,996 )     —       —       —       —       —  
 
Spin-off of Arkema
     —       —       (2,045 )     (209 )     —       —       (2,254 )     —       (8 )     (2,262 )
 
Cash dividend
     —       —       (2,022 )     —       —       —       (2,022 )     —       (230 )     (2,252 )
 
Issuance of common shares
     11,750,640       29       453       —       —       —       482       —       —       482  
 
Purchase of treasury shares
     —       —       —       —       (64,295,684 )     (3,346 )     (3,346 )     —       —       (3,346 )
 
Sale of treasury shares (1)
     —       —       —       —       4,678,367       151       151       —       —       151  
 
Share-based payments
     —       —       116       —       —       —       116       —       —       116  
 
Transactions with shareholders
     1,857,099,528       29       (3,498 )     (209 )     (162,365,313 )     (3,195 )     (6,873 )     —       (238 )     (7,111 )
 
Cancellation of repurchased shares
     (47,020,000 )     (117 )     (2,341 )     —       47,020,000       2,458       —       —       —       —  
 
As of September 30, 2006
     2,425,195,824       6,063       41,367       (501 )     (149,594,645 )     (5,168 )     41,761       —       863       42,624  
 
     
(1)
  Treasury shares related to the stock option purchase plans
(2)
  Annual Meeting of shareholders, May 12, 2006

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros
3rd quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     4,684       28,818       4,849       6               38,357  
Intersegment sales
     4,782       1,292       362       40       (6,476 )     —  
Excise taxes
     —       (4,829 )     —       —       —       (4,829 )
 
Revenues from sales
     9,466       25,281       5,211       46       (6,476 )     33,528  
 
Operating expenses
     (3,631 )     (24,665 )     (4,823 )     (159 )     6,476       (26,802 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (835 )     (272 )     (183 )     (9 )             (1,299 )
 
Operating income
     5,000       344       205       (122 )             5,427  
 
Equity in income (loss) of affiliates and other items
     252       84       (94 )     252               494  
Tax on net operating income
     (3,304 )     (94 )     (25 )     108               (3,315 )
 
Net operating income
     1,948       334       86       238               2,606  
 
Net cost of net debt
                                             (111 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (63 )
 
Net income from continuing operations Group share
                                             2,432  
 
Net income from discontinued operations Group share
                                             (13 )
 
Net income Group share
                                             2,419  
 
 
                                                
                                                 
3rd quarter 2006                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
                                                
Intersegment sales
                                                
Excise taxes
                                                
 
Revenues from sales
                                                
 
Operating expenses
     —       (658 )     (95 )     (9 )             (762 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       (50 )     —               (50 )
 
Operating income (1)
     —       (658 )     (145 )     (9 )             (812 )
 
Equity in income (loss) of affiliates and other items (2)
     —       (5 )     (99 )     12               (92 )
Tax on net operating income
     (85 )     199       82       2               198  
 
Net operating income (1)
     (85 )     (464 )     (162 )     5               (706 )
 
Net cost of net debt
                                             —  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             14  
 
Net income from continuing operations Group share
                                             (692 )
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             (692 )
 
 
                                                
(*)  Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger
 
                                                
(1)  Of which inventory valuation effect
On operating income
     —       (658 )     (23 )     —                  
On net operating income
     —       (464 )     (14 )     —                  
(2)  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (83 )                
 
                                                
                                                 
3rd quarter 2006                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     4,684       28,818       4,849       6               38,357  
Intersegment sales
     4,782       1,292       362       40       (6,476 )     —  
Excise taxes
     —       (4,829 )     —       —       —       (4,829 )
 
Revenues from sales
     9,466       25,281       5,211       46       (6,476 )     33,528  
 
Operating expenses
     (3,631 )     (24,007 )     (4,728 )     (150 )     6,476       (26,040 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (835 )     (272 )     (133 )     (9 )             (1,249 )
 
Operating income
     5,000       1,002       350       (113 )             6,239  
 
Equity in income (loss) of affiliates and other items
     252       89       5       240               586  
Tax on net operating income
     (3,219 )     (293 )     (107 )     106               (3,513 )
 
Net operating income
     2,033       798       248       233               3,312  
 
Net cost of net debt
                                             (111 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (77 )
 
Net income from continuing operations Group share
                                             3,124  
 
Net income from discontinued operations Group share
                                             (13 )
 
Net income Group share
                                             3,111  
 
 
                                                
                                                 
3rd quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     2,073       383       202       9       —       2,667  
Divestitures at selling price
     80       90       4       12       —       186  
Cash flow from operating activities
     2,534       1,180       291       1,048       —       5,053  
 

 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
 
2nd quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,424       30,516       4,965       4               40,909  
Intersegment sales
     5,439       1,256       443       44       (7,182 )     —  
Excise taxes
     —       (5,141 )     —       —       —       (5,141 )
 
Revenues from sales
     10,863       26,631       5,408       48       (7,182 )     35,768  
 
Operating expenses
     (4,702 )     (25,021 )     (4,972 )     (192 )     7,182       (27,705 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (785 )     (283 )     (134 )     (10 )             (1,212 )
 
Operating income
     5,376       1,327       302       (154 )             6,851  
 
Equity in income (loss) of affiliates and other items
     252       75       (44 )     139               422  
Tax on net operating income
     (3,237 )     (394 )     (73 )     31               (3,673 )
 
Net operating income
     2,391       1,008       185       16               3,600  
 
Net cost of net debt
                                             (18 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (141 )
 
Net income from continuing operations Group share
                                             3,441  
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             3,441  
 
 
 
2nd quarter 2006                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
                                                
Intersegment sales
                                                
Excise taxes
                                                
 
Revenues from sales
                                                
 
Operating expenses
     —       291       42       (11 )             322  
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       —       —               —  
 
Operating income (1)
     —       291       42       (11 )             322  
 
Equity in income (loss) of affiliates and other items (2)
     —       10       (51 )     (122 )             (163 )
Tax on net operating income
     —       (80 )     3       4               (73 )
 
Net operating income (1)
     —       221       (6 )     (129 )             86  
 
Net cost of net debt
                                             —  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (6 )
 
Net income from continuing operations Group share
                                             80  
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             80  
 
 
(*)  Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger
 
(1)  Of which inventory valuation effect
On operating income
     —       291       92       —                  
On net operating income
     —       221       62       —                  
(2)  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (87 )                
 
 
2nd quarter 2006                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,424       30,516       4,965       4               40,909  
Intersegment sales
     5,439       1,256       443       44       (7,182 )     —  
Excise taxes
     —       (5,141 )     —       —       —       (5,141 )
 
Revenues from sales
     10,863       26,631       5,408       48       (7,182 )     35,768  
 
Operating expenses
     (4,702 )     (25,312 )     (5,014 )     (181 )     7,182       (28,027 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (785 )     (283 )     (134 )     (10 )             (1,212 )
 
Operating income
     5,376       1,036       260       (143 )             6,529  
 
Equity in income (loss) of affiliates and other items
     252       65       7       261               585  
Tax on net operating income
     (3,237 )     (314 )     (76 )     27               (3,600 )
 
Net operating income
     2,391       787       191       145               3,514  
 
Net cost of net debt
                                             (18 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (135 )
 
Net income from continuing operations Group share
                                             3,361  
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             3,361  
 
 
 
2nd quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     2,209       368       176       26       —       2,779  
Divestitures at selling price
     502       50       67       5       —       624  
Cash flow from operating activities
     3,371       984       (7 )     (302 )     —       4,046  
 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
 
3rd quarter 2005   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,065       27,936       4,042       12               37,055  
Intersegment sales
     5,543       1,171       124       30       (6,868 )     —  
Excise taxes
     —       (5,206 )     —       —               (5,206 )
 
Revenues from sales
     10,608       23,901       4,166       42       (6,868 )     31,849  
 
Operating expenses
     (4,592 )     (21,697 )     (3,827 )     (123 )     6,868       (23,371 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (817 )     (265 )     (123 )     (8 )             (1,213 )
 
Operating income
     5,199       1,939       216       (89 )             7,265  
 
Equity in income (loss) of affiliates and other items
     140       67       14       55               276  
Tax on net operating income
     (3,137 )     (640 )     (56 )     61               (3,772 )
 
Net operating income
     2,202       1,366       174       27               3,769  
 
Net cost of net debt
                                             (40 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (103 )
 
Net income from continuing operations Group share
                                             3,626  
 
Net income from discontinued operations Group share
                                             19  
 
Net income Group share
                                             3,645  
 
 
 
3rd quarter 2005                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
                                                
Intersegment sales
                                                
Excise taxes
                                                
 
Revenues from sales
                                                
 
Operating expenses
     —       958       108       —               1,066  
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       —       —               —  
 
Operating income (1)
     —       958       108       —               1,066  
 
Equity in income (loss) of affiliates and other items (2)
     —       18       2       (200 )             (180 )
Tax on net operating income
     —       (316 )     (36 )     —               (352 )
 
Net operating income (1)
     —       660       74       (200 )             534  
 
Net cost of net debt
                                             —  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (4 )
 
Net income from continuing operations Group share
                                             530  
 
Net income from discontinued operations Group share
                                             (11 )
 
Net income Group share
                                             519  
 
 
(*)  Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger
 
(1)  Of which inventory valuation effect
On operating income
     —       958       108       —                  
On net operating income
     —       660       74       —                  
(2)  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (112 )                
 
 
3rd quarter 2005                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,065       27,936       4,042       12               37,055  
Intersegment sales
     5,543       1,171       124       30       (6,868 )     —  
Excise taxes
     —       (5,206 )     —       —               (5,206 )
 
Revenues from sales
     10,608       23,901       4,166       42       (6,868 )     31,849  
 
Operating expenses
     (4,592 )     (22,655 )     (3,935 )     (123 )     6,868       (24,437 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (817 )     (265 )     (123 )     (8 )             (1,213 )
 
Operating income
     5,199       981       108       (89 )             6,199  
 
Equity in income (loss) of affiliates and other items
     140       49       12       255               456  
Tax on net operating income
     (3,137 )     (324 )     (20 )     61               (3,420 )
 
Net operating income
     2,202       706       100       227               3,235  
 
Net cost of net debt
                                             (40 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (99 )
 
Net income from continuing operations Group share
                                             3,096  
 
Net income from discontinued operations Group share
                                             30  
 
Net income Group share
                                             3,126  
 
 
 
3rd quarter 2005   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     2,589       493       275       —               3,357  
Divestitures at selling price
     161       21       —       66               248  
Cash flow from operating activities
     2,818       893       498       555               4,764  
 

 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
 
9 months 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     15,822       87,026       14,503       18               117,369  
Intersegment sales
     15,621       3,883       957       127       (20,588 )     —  
Excise taxes
     —       (14,577 )     —       —               (14,577 )
 
Revenues from sales
     31,443       76,332       15,460       145       (20,588 )     102,792  
 
Operating expenses
     (13,013 )     (72,617 )     (14,281 )     (491 )     20,588       (79,814 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (2,453 )     (815 )     (446 )     (28 )             (3,742 )
 
Operating income
     15,977       2,900       733       (374 )     —       19,236  
 
Equity in income (loss) of affiliates and other items
     887       233       (121 )     592               1,591  
Tax on net operating income
     (9,995 )     (861 )     (153 )     192               (10,817 )
 
Net operating income
     6,869       2,272       459       410               10,010  
 
Net cost of net debt
                                             (170 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (292 )
 
Net income from continuing operations Group share
                                             9,548  
 
Net income from discontinued operations Group share
                                             (5 )
 
Net income Group share
                                             9,543  
 
 
 
9 months 2006                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     —       —       —       —       —       —  
Intersegment sales
     —       —       —       —       —       —  
Excise taxes
     —       —       —       —       —       —  
 
Revenues from sales
                                             —  
 
Operating expenses
     —       6       (58 )     (20 )             (72 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       (50 )     —               (50 )
 
Operating income (1)
     —       6       (108 )     (20 )             (122 )
 
Equity in income (loss) of affiliates and other items (2)
     195       23       (149 )     (191 )             (122 )
Tax on net operating income
     (150 )     8       87       6               (49 )
 
Net operating income (1)
     45       37       (170 )     (205 )             (293 )
 
Net cost of net debt
                                             —  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             7  
 
Net income from continuing operations Group share
                                             (286 )
 
Net income from discontinued operations Group share
                                             (19 )
 
Net income Group share
                                             (305 )
 
 
(*)  Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger
 
(1)  Of which inventory valuation effect
On operating income
     —       6       69       —                  
On net operating income
     —       37       49       —                  
(2)  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (253 )                
 
 
9 months 2006                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     15,822       87,026       14,503       18               117,369  
Intersegment sales
     15,621       3,883       957       127       (20,588 )     —  
Excise taxes
     —       (14,577 )     —       —               (14,577 )
 
Revenues from sales
     31,443       76,332       15,460       145       (20,588 )     102,792  
 
Operating expenses
     (13,013 )     (72,623 )     (14,223 )     (471 )     20,588       (79,742 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (2,453 )     (815 )     (396 )     (28 )             (3,692 )
 
Operating income
     15,977       2,894       841       (354 )             19,358  
 
Equity in income (loss) of affiliates and other items
     692       210       28       783               1,713  
Tax on net operating income
     (9,845 )     (869 )     (240 )     186               (10,768 )
 
Net operating income
     6,824       2,235       629       615               10,303  
 
Net cost of net debt
     —       —       —       —               (170 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
     —       —       —       —               (299 )
 
Net income from continuing operations Group share
     —       —       —       —               9,834  
 
Net income from discontinued operations Group share
     —       —       —       —               14  
 
Net income Group share
     —       —       —       —               9,848  
 
 
 
9 months 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     6,363       1,072       702       59               8,196  
Divestitures at selling price
     935       153       99       20               1,207  
Cash flow from operating activities
     9,736       3,365       247       590               13,938  
 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
 
9 months 2005   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     14,080       72,471       12,471       20               99,042  
Intersegment sales
     13,936       3,135       526       108       (17,705 )     —  
Excise taxes
     —       (15,503 )     —       —               (15,503 )
 
Revenues from sales
     28,016       60,103       12,997       128       (17,705 )     83,539  
 
Operating expenses
     (12,184 )     (54,390 )     (11,694 )     (358 )     17,705       (60,921 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (2,411 )     (784 )     (385 )     (24 )             (3,604 )
 
Operating income
     13,421       4,929       918       (254 )             19,014  
 
Equity in income (loss) of affiliates and other items
     393       294       39       248               974  
Tax on net operating income
     (7,917 )     (1,641 )     (271 )     142               (9,687 )
 
Net operating income
     5,897       3,582       686       136               10,301  
 
Net cost of net debt
                                             (130 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (269 )
 
Net income from continuing operations Group share
                                             9,902  
 
Net income from discontinued operations Group share
                                             30  
 
Net income Group share
                                             9,932  
 
 
 
9 months 2005                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
                                                
Intersegment sales
                                                
Excise taxes
                                                
 
Revenues from sales
                                                
 
Operating expenses
     —       2,113       66       —               2,179  
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       (11 )     —               (11 )
 
Operating income (1)
     —       2,113       55       —               2,168  
 
Equity in income (loss) of affiliates and other items (2)
     —       48       5       (414 )             (361 )
Tax on net operating income
     —       (696 )     (19 )     —               (715 )
 
Net operating income (1)
     —       1,465       41       (414 )             1,092  
 
Net cost of net debt
                                             —  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (9 )
 
Net income from continuing operations Group share
                                             1,083  
 
Net income from discontinued operations Group share
                                             (102 )
 
Net income Group share
                                             981  
 
 
(*)  Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger
 
(1)  Of which inventory valuation effect
On operating income
     —       2,113       66       —                  
On net operating income
     —       1,465       48       —                  
(2)  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (249 )                
 
 
9 months 2005                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     14,080       72,471       12,471       20               99,042  
Intersegment sales
     13,936       3,135       526       108       (17,705 )     —  
Excise taxes
     —       (15,503 )     —       —               (15,503 )
 
Revenues from sales
     28,016       60,103       12,997       128       (17,705 )     83,539  
 
Operating expenses
     (12,184 )     (56,503 )     (11,760 )     (358 )     17,705       (63,100 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (2,411 )     (784 )     (374 )     (24 )             (3,593 )
 
Operating income
     13,421       2,816       863       (254 )             16,846  
 
Equity in income (loss) of affiliates and other items
     393       246       34       662               1,335  
Tax on net operating income
     (7,917 )     (945 )     (252 )     142               (8,972 )
 
Net operating income
     5,897       2,117       645       550               9,209  
 
Net cost of net debt
                                             (130 )
Minority interests and dividends on subsidiaries’ redeemable preferred shares
                                             (260 )
 
Net income from continuing operations Group share
                                             8,819  
 
Net income from discontinued operations Group share
                                             132  
 
Net income Group share
                                             8,951  
 
 
 
9 months 2005   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     5,590       1,069       678       59       —       7,396  
Divestitures at selling price
     551       124       30       133       —       838  
Cash flow from operating activities
     7,737       2,512       785       464       —       11,498  
 

 

CONSOLIDATED STATEMENT OF INCOME (impact of adjustments)
TOTAL
(unaudited)
                                 
    9 months     9 months  
    2006     2005  
                    Consolidated        
                    statement        
Amounts in millions of euros   Adjusted     Adjustments     of income     Adjusted  
       
Sales
     117,369       —       117,369       99,042  
Excise taxes
     (14,577 )     —       (14,577 )     (15,503 )
Revenues from sales
     102,792       —       102,792       83,539  
 
                                
Purchases, net of inventory variation
     (64,546 )     75       (64,471 )     (50,399 )
Other operating expenses
     (14,776 )     (147 )     (14,923 )     (12,424 )
Unsuccessful exploration costs
     (420 )     —       (420 )     (277 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (3,692 )     (50 )     (3,742 )     (3,593 )
       
 
                                
Operating income
                                
Corporate
     (354 )     (20 )     (374 )     (254 )
Business segments
     19,712       (102 )     19,610       17,100  
       
Total operating income
     19,358       (122 )     19,236       16,846  
       
Other income
     194       195       389       88  
Other expense
     (202 )     (202 )     (404 )     (105 )
 
                                
Financial interest on debt
     (1,260 )     —       (1,260 )     (844 )
Financial income from marketable securities and cash equivalents
     992       —       992       650  
Cost of net debt
     (268 )     —       (268 )     (194 )
 
                                
Other financial income
     451       —       451       297  
Other financial expense
     (194 )     —       (194 )     (194 )
Income taxes
     (10,670 )     (49 )     (10,719 )     (8,908 )
Equity in income (loss) of affiliates
     1,464       (115 )     1,349       1,249  
       
Consolidated net income from continuing operations (Group without Arkema)
     10,133       (293 )     9,840       9,079  
       
Consolidated net income from discontinued operations (Arkema)
     14       (19 )     (5 )     133  
       
Consolidated net income
     10,147       (312 )     9,835       9,212  
       
Group share
     9,848       (305 )     9,543       8,951  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
     299       (7 )     292       261  
       
 
    3rd quarter     3rd quarter  
    2006     2005  
                    Consolidated        
                    statement        
Amounts in millions of euros   Adjusted     Adjustments     of income     Adjusted  
       
Sales
     38,357       —       38,357       37,055  
Excise taxes
     (4,829 )     —       (4,829 )     (5,206 )
Revenues from sales
     33,528       —       33,528       31,849  
 
                                
Purchases, net of inventory variation
     (20,961 )     (681 )     (21,642 )     (20,603 )
Other operating expenses
     (4,920 )     (81 )     (5,001 )     (3,721 )
Unsuccessful exploration costs
     (159 )     —       (159 )     (113 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (1,249 )     (50 )     (1,299 )     (1,213 )
       
 
                                
Operating income
                                
Corporate
     (113 )     (9 )     (122 )     (89 )
Business segments
     6,352       (803 )     5,549       6,288  
       
Total operating income
     6,239       (812 )     5,427       6,199  
       
Other income
     55       1       56       3  
Other expense
     (9 )     (152 )     (161 )     (28 )
 
                                
Financial interest on debt
     (545 )     —       (545 )     (314 )
Financial income from marketable securities and cash equivalents
     381       —       381       254  
Cost of net debt
     (164 )     —       (164 )     (60 )
 
                                
Other financial income
     144       —       144       98  
Other financial expense
     (74 )     —       (74 )     (76 )
Income taxes
     (3,460 )     198       (3,262 )     (3,399 )
Equity in income (loss) of affiliates
     470       59       529       458  
       
Consolidated net income from continuing operations (Group without Arkema)
     3,201       (706 )     2,495       3,195  
       
Consolidated net income from discontinued operations (Arkema)
     (13 )     —       (13 )     31  
       
Consolidated net income
     3,188       (706 )     2,482       3,226  
       
Group share
     3,111       (692 )     2,419       3,126  
Minority interests and dividends on subsidiaries’ redeemable preferred shares
     77       (14 )     63       100