EX-99.1 2 y01771exv99w1.htm EX 99.1: 1ST QUARTER 2007 RESULTS EX-99.1
 

(TOTAL LOGO)
EXHIBIT 99.1
TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
Philippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
News Release
Communiqué de Presse
 
Paris, May 4, 2007
Total reports strong first quarter 2007 results
Main results for the first quarter 20071
 
             
• Adjusted net income2-3
  3.0 billion euros     -11%  
 
   3.9 billion dollars     -3%  
 
 
   1.31 euros per share     -9%  
 
   1.72 dollars per share     -1%  
Highlights since the start of the first quarter 2007
 
•   Upstream production of 2,431 kboe/d in the first quarter 2007
  §   Dalia successfully reached 240 kb/d plateau in mid-April
 
  §   OPEC reduction impact of -37 kb/d
•   Launching development of the Jura field as a satellite to Alwyn
•   Successful exploration
  §   Promising discoveries and launching of development studies for Egina, a new pole in deep-offshore Nigeria
 
  §   Two major discoveries near Moho Bilondo in deep-offshore Congo
 
  §   Four new oil discoveries on ultra-deep offshore Block 32 and deep-offshore Block 14 in Angola
 
  §   New exploration blocks in Indonesia, Australia, Alaska and the UK North Sea
•   Finalized negotiations to acquire interests in Blocks 15/06 and 17/06 in Angola
 
1   percent changes are relative to the first quarter 2006.
 
2   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. First quarter net income (Group share) was 3,049 million euros.
 
3   dollar amounts represent euro amounts converted at the average exchange rate for the period (1.3106 $/€ in the first quarter 2007, 1.2023 $/€ in the first quarter 2006, 1.2887 $/€ in the fourth quarter 2006).


 

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
The Board of Directors of Total, led by Chairman Thierry Desmarest, met on May 3, 2007 to review the first quarter 2007 accounts. Commenting on the results, CEO Christophe de Margerie said:
« In the first quarter 2007, the average Brent oil price decreased by 6% compared to the same quarter a year ago and gas prices fell sharply in the UK. The Downstream and Chemicals segments benefited from strong demand while refinery throughput was constrained by a number of maintenance shut-downs.
In this context, the adjusted earnings per share expressed in dollars showed only a limited decrease of 1% compared to the first quarter 2006 and an increase of 12% compared to the fourth quarter 2006. Profitability at the business segment level remained strong at 28%.
This performance, which is among the best in the industry, shows that Total managed to maintain the quality of its portfolio and its investment and project management discipline while accelerating its growth effort and facing continued pressure from rising costs.
The successful ramp-up of the Dalia field in Angola, which is already at its plateau, and the start-ups of Rosa in Angola and Dolphin in Qatar, planned for the second and third quarters of this year, confirm that we are returning to a period of growth.
Total is pursuing its strategy of profitable growth over the long term, supported by continued exploration success, improvements to its refining and petrochemical facilities, and increased efforts in research and development to meet the new challenges facing the energy industry and the environment. »
• Key figures and consolidated accounts of Total4
                                 
in millions of euros,               1Q07 vs 
except earnings per share and number of shares   1Q07   4Q06   1Q06   1Q06
Sales
     37,043       36,433       38,103       -3 %
Adjusted operating income from business segments
     5,729       5,454       6,688       -14 %
Adjusted net operating income from business segments
     2,948       2,689       3,240       -9 %
 
•     Upstream
     1,961       1,885       2,400       -18 %
•     Downstream
     708       549       650       +9 %
•     Chemicals
     279       255       190       +47 %
Adjusted net income
     2,992       2,737       3,376       -11 %
Adjusted fully-diluted earnings per share (euros)
     1.31       1.20       1.45       -9 %
Fully-diluted weighted-average shares (millions)
     2,280.9       2,288.1       2,335.8       -2 %
 
Net income (Group share)
     3,049       2,225       3,683       -17 %
 
Investments
     2,414       3,656       2,750       -12 %
Divestments (at selling price)
     244       1,071       397       -39 %
Cash flow from operations
     6,388       2,123       4,839       +32 %
Adjusted cash flow from operations
     4,116       3,454       4,287       - 4 %
 
4   adjusted income (adjusted operating income, adjusted net operating income and adjusted net 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 13; first quarter 2006 results, with the exception of net income, have been restated for the Arkema spin-off per IFRS.


2

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
• First quarter 2007 results
     > Operating income
In the first quarter 2007, the average Brent price was 57.8 $/b, a decrease of 6% compared to the first quarter 2006 and 3% compared to the fourth quarter 2006.
The European refining margin indicator (TRCV) averaged 33 $/t in the first quarter 2007, an increase of 28% compared to the first quarter 2006 and 45% compared to the fourth quarter 2006.
Petrochemical margins in Europe were higher relative to the first quarter 2006 but slightly lower relative to the fourth quarter 2006. In the US, first quarter 2007 margins were sharply lower compared to both periods.
The euro/dollar exchange rate was 1.31 $/€ compared to 1.20 $/€ in the first quarter 2006 and 1.29 $/€ in the fourth quarter 2006.
In this context, adjusted operating income from the business segments was 5,729 million euros (M€), a 14% decrease compared to the first quarter 20065.
Adjusted net operating income from the business segments was 2,948 M€, a 9% decrease compared to the first quarter 2006. The lower percentage decrease relative to the decrease in operating income is mainly due to the Upstream segment, which has a higher effective tax rate, representing a smaller proportion of the results compared to a year ago.
     > Net income
Adjusted net income was 2,992 M€, an 11% decrease compared to the first quarter 2006. This excludes the after-tax inventory effect, special items, and the Group’s equity share of the amortization of intangibles related to the Sanofi-Aventis merger.
The after-tax inventory effect had a positive impact on net income of 133 M€ in the first quarter 2007 and of 280 M€ in the first quarter 2006.
There were no special items in the first quarter 2007. In the first quarter 2006, special items had a positive impact on net income of 110 M€ and were composed mainly of gains on the sale of Upstream assets in the US.
The Group’s share of the amortization of intangibles related to the Sanofi-Aventis merger had an impact on net income of -76 M€ in the first quarter 2007 and -83 M€ in the first quarter 2006.
Reported net income was 3,049 M€ compared to 3,683 M€ in the first quarter 2006.
The effective tax rate6 for the Group was 54% in the first quarter 2007, a decrease compared to 55% in the first quarter 2006 and close to 57% in the fourth quarter 2006.
In the first quarter 2007, the Group bought back 6 million of its shares for 306 M€. The number of fully-diluted shares at March 31, 2007 was 2,278.1 million compared to 2,285.2 million at December 31, 2006 and 2,333.7 million at March 31, 2006.
Adjusted fully-diluted earnings per share, based on 2,280.9 million fully-diluted weighted-average shares was 1.31 euros, a decrease of 9% compared to the first quarter 2006, which is a smaller decrease than shown for adjusted net income due to the accretive effect of the share buybacks. Adjusted fully-diluted earnings per share, expressed in dollars, decreased by 1%.
 
5   there were no special items affecting operating income from the business segments in the first quarter 2007; in the first quarter 2006, special items were composed of a 5 M€ charge related to the spin-off of Arkema.
 
6   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).


3

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
     > Investments – divestments
Investments were 2,414 M€ (or 3,164 M$) in the first quarter 2007 compared to 2,750 M€ (or 3,306 M$) in the first quarter 2006.
Divestments in the first quarter 2007 were 244 M€ and included the sale of Upstream assets among which Canyon Express and the Aconcagua field in the Gulf of Mexico. Divestments in the first quarter 2006 were 397 M€.
Net investments in the first quarter 2007 were 2,844 M$ compared to 2,829 M$ in the first quarter 2006.
     > Cash flow
Cash flow from operations was 6,388 M€, an increase of 32% compared to the first quarter 2006. This includes a 2,098 M€ reduction in working capital in the first quarter 2007, mainly due to a temporary increase in liabilities related to the timing of payments for taxes on refined products and income.
Adjusted cash flow from operations (cash flow from operations before changes in working capital at replacement cost) decreased by 4% to 4,116 M€.
Net cash flow 7 was 4,218 M€ compared to 2,486 M€ in the first quarter 2006.
The net-debt-to-equity ratio was 23% at March 31, 2007 compared to 34% at December 31, 2006 and 26% at March 31, 20068.
 
7   net cash flow = cash flow from operations + divestments – investments.
 
8   calculation shown on page 14.


4

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
• Upstream
     > Liquids and gas price realizations*
                                 
                1Q07 vs
    1Q07   4Q06   1Q06   1Q06
Brent ($/b)
     57.8       59.6       61.8       -6 %
Average liquids price ($/b)
     55.0       57.1       58.8       -6 %
Average gas price ($/MBtu)
     5.69       6.16       6.16       -8 %
 
*   consolidated subsidiaries, excluding fixed margin and buy-back contracts
The decrease in Total’s average realized price for liquids was in line with the decrease in the Brent price. However, with the exception of the UK market, gas price realizations were higher in the Group’s main gas producing zones in the first quarter 2007 compared to the first quarter 2006.
     > Production
                                 
                1Q07 vs
Hydrocarbon production   1Q07   4Q06   1Q06   1Q06
Combined production (kboe/d)
     2,431       2,403       2,440       —  
 
•     Liquids (kb/d)
     1,551       1,513       1,560       -1 %
•     Gas (Mcf/d)
     4,781       4,989       4,795       —  
Hydrocarbon production was 2,431 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2007 compared to 2,440 kboe/d in the first quarter 2006, mainly as a result of:
  •   +3% due to the positive impact of new field start-ups, partially offset by normal declines on mature fields,
 
  •   -1.5% due to OPEC reductions in Libya, Abu Dhabi and Venezuela,
 
  •   -1% due to divestments and other portfolio changes,
 
  •   -1% due to the impact of shut-downs in the Niger Delta because of security issues.
Excluding the effects of portfolio changes and OPEC reductions, underlying production growth was 2%.
Compared to the fourth quarter 2006, production increased by 1.2%, mainly due to production ramp-up at the Dalia field. Excluding the impact of OPEC reductions imposed by Venezuela on heavy-oil projects, the underlying growth was more than 2%. There were no significant portfolio changes between the fourth quarter 2006 and the first quarter 2007.


5

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
     > Results
                                 
                1Q07 vs
in millions of euros   1Q07   4Q06   1Q06   1Q06
Adjusted operating income*
     4,375       4,330       5,601       -22 %
Adjusted net operating income*
     1,961       1,885       2,400       -18 %
•     Income from equity affiliates
     175       176       143       +22 %
 
Investments
     1,989       2,638       2,081       -4 %
Divestments at selling price
     173       523       353       -51 %
Cash flow
     4,335       1,788       3,831       +13 %
Adjusted cash flow (M€)
     2,966       2,371       3,266       -9 %
 
*   detail of adjustment items shown in business segment information
Adjusted net operating income for the Upstream segment was 1,961 M€, a decrease of 18% compared to the first quarter 2006.
Expressed in dollars, the decrease in adjusted net operating income for the Upstream segment was 11%, reflecting mainly the lower hydrocarbon prices and, to a lesser extent, the increase in production costs and exploration activity.
The average Upstream segment tax rate was 60% in the first quarter 2007, stable compared to the first quarter 2006. The increase in tax rates in the UK and Venezuela was offset by a favorable mix effect and by the impact of lower hydrocarbon prices.
The increase in income from equity affiliates reflects mainly the growth from Trains 4 and 5 at Nigeria LNG.
Compared to the fourth quarter 2006, adjusted net operating income for the Upstream segment expressed in dollars increased by 6%, essentially due to the increase in production and the decrease in the effective tax rate.
The return on average capital employed (ROACE9) for the Upstream segment was 34% for the twelve months ended March 31, 2007 compared to 35% for the full year 2006.
The 2007 investment program for the Upstream segment is proceeding as planned.
 
9   calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 15.


6

 






TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Downstream
     > Refinery throughput and utilization rates*
                                 
                1Q07 vs
    1Q07   4Q06   1Q06   1Q06
Total refinery throughput (kb/d)
     2,421       2,435       2,421       —  
         
•  France
     988       971       899       +10 %
•  Rest of Europe
    1,167       1,210       1,217       -4 %
•  Rest of world
    266       254       305       -13 %
Utilization rates
                                
 
•  Based on crude only
    87 %     86 %     86 %     ns  
•  Based on crude and other feedstock
    90 %     90 %     89 %     ns  
 
* includes share of CEPSA
The first quarter 2007 included three partial turnarounds: the distillation unit at Port Arthur and the catalytic crackers at the Donges and Antwerp refineries.
 
The first quarter 2006 included a major turnaround for maintenance at the Provence refinery and a 3-week shutdown of the Flanders refinery.
 
In the fourth quarter 2006, there was a major shut-down of the cracker at Port Arthur.
The utilization rate for the distillate hydro-cracker in Normandy, which started up in 2006, was close to 90% on average in the first quarter 2007.
     > Results
                                 
in millions of euros,               1Q07 vs
except European refining margin indicator   1Q07   4Q06   1Q06   1Q06
 
European refining margin indicator — TRCV ($/t)
     33.0       22.8       25.8       +28 %
 
Adjusted operating income* (M€)
     973       750       856       +14 %
 
Adjusted net operating income* (M€)
     708       549       650       +9 %
•  Income from equity affiliates
     63       63       61       +3 %
 
 
                                
Investments (M€)
     244       703       321       -24 %
 
Divestments (M€) at selling price
     22       275       13       +69 %
 
Cash flow (M€)
     1,905       261       1,201       +59 %
 
Adjusted cash flow (M€)
     1,039       844       831       +25 %
 
 
*  detail of adjustment items shown in business segment information
Adjusted net operating income for the Downstream segment was 708 M€ in the first quarter 2007 compared to 650 M€ in the first quarter 2006, an increase of 9%. Expressed in dollars, the increase was 19%. This reflects mainly the stronger European refining margins, which were fueled by higher gasoline prices in the Atlantic Basin in a context of heavy maintenance activity that limited available supplies. The Downstream also benefited from the start-up of the distillate hydro-cracker in Normandy as well as good performance from Marketing and ongoing productivity programs.
The Downstream segment ROACE for the twelve months ended March 31, 2007 was 25% compared to 23% for the full year 2006.


7

 







TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Chemicals
     > Results
                                 
                1Q07 vs
in millions of euros   1Q07   4Q06   1Q06   1Q06
Sales
     4,995       4,610       4,689       +7 %
 
•  Base chemicals
     3,151       2,891       2,863       +10 %
•  Specialties
     1,844       1,719       1,826       +1 %
 
                                
Adjusted operating income*
     381       374       231       +65 %
Adjusted net operating income*
     279       255       190       +47 %
 
•  Base chemicals
     189       168       78       +142 %
•  Specialties
     93       82       103       -10 %
 
                                
Investments
     173       293       324       -47 %
Divestments at selling price
     47       29       28       +68 %
Cash flow
     107       725       (37 )   ns  
Adjusted cash flow
     329       331       305       +8 %
 
*  detail of adjustment items shown in business segment information
Sales for the Chemicals segment increased by 7% to 4,995 M€ in the first quarter 2007 from 4,689 M€ in the first quarter 2006.
Adjusted net operating income for the Chemicals segment was 279 M€, an increase of 47% compared to the first quarter 2006.
Petrochemicals performed well, benefiting from higher cracker utilization rates and more favorable market conditions in Europe than in the US, due to stronger demand for polymers.
The Chemicals segment ROACE for the twelve months ended March 31, 2007 was nearly 14% compared to 13% for the full year 2006.


8

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
l Summary and outlook
The ROACE for the Group was 26% for the twelve months ended March 31, 2007, stable compared to the Group ROACE for the full year 2006.
 
Return on equity for the same periods was 31% and 33%, respectively.
Implementation of the investment program is proceeding as planned.
The Group confirms its objective to maintain its net-debt-to-equity ratio at around 25% to 30%.
Pending approval at the shareholder’s meeting on May 11, 2007, Total S.A. will pay the remaining 1 euro per share of the 2006 dividend10 on May 18, 2007.
Since the start of the second quarter 2007, oil prices have moved higher due to market concerns over global supplies and the impact of OPEC reductions on production. Refining margins have been on average higher than in the first quarter.
The Group’s production growth is expected to be substantial in 2007, mainly due to the start-up of Dalia, to be followed by Rosa and Dolphin; however, it should be lower than 6%, because of the now lower-than-expected contributions from Azerbaijan and Venezuela as well as the persistent uncertainties surrounding the situation in Nigeria.
The Group is confident of achieving its target of more than 5% production growth on average through 201011 and is continuing to improve visibility for the longer term thanks to the satisfactory progress on Total-operated development projects, continued exploration success, particularly in West Africa, and ongoing negotiations to secure major new projects.
¨   ¨   ¨
To listen to the conference call with CFO Robert Castaigne and financial analysts today at 15:00 (Paris time) please call +44 (0)161 601 89 18 in Europe or +1 866 793 42 77 in the US (access code : Total) or log on to the company website www.total.com. For a replay, dial +44 (0)207 075 32 14 in Europe or 1 866 828 22 61 in the US (code : 195703).
 
10   including the interim dividend of 0.87 euros per share paid in November 2006, the 2006 dividend will be 1.87 euros per share.
 
11   based on Brent at 60 $/b in 2007 and 40 $/b thereafter.


9

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
The March 31, 2007 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.


10

 






TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
Operating information by segment
First quarter 2007
l Upstream
                                 
Combined liquids and gas production               1Q07 vs  
by region (kboe/d)   1Q07   4Q06   1Q06   1Q06
 
Europe
     746       752       778       -4 %
Africa
     784       729       742       +6 %
North America
     26       28       13       +100 %
Far East
     256       258       253       +1 %
Middle East
     402       416       411       -2 %
South America
     206       211       236       -13 %
Rest of world
     11       9       7       +57 %
 
Total production
     2,431       2,403       2,440       —  
                                 
                            1Q07 vs
Liquids production by region (kb/d)   1Q07   4Q06   1Q06   1Q06
Europe
     373       371       378       -1 %
Africa
     679       633       656       +4 %
North America
     17       17       2       +750 %
Far East
     30       28       29       +3 %
Middle East
     341       353       357       -4 %
South America
     102       103       131       -22 %
Rest of world
     9       8       7       +29 %
 
Total production
     1,551       1,513       1,560       -1 %


11

 

TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
                                 
                            1Q07 vs
Gas production by region (Mcfd)   1Q07     4Q06     1Q06     1Q06
Europe
     2,019       2,073       2,172       -7 %
Africa
     541       510       457       +18 %
North America
     45       55       63       -29 %
Far East
     1,260       1,417       1,238       +2 %
Middle East
     326       334       284       +15 %
South America
     580       598       579       —  
Rest of world
     10       2       2       +400 %
 
Total production
     4,781       4,989       4,795       —  
l Downstream
                                 
                            1Q07 vs
Refined product sales by region (kb/d)*   1Q07     4Q06     1Q06     1Q06
Europe
     2,655       2,720       2,689       -1 %
Africa
     333       343       319       +4 %
Americas
     597       480       626       -5 %
Rest of world
     221       185       230       -4 %
 
Total
     3,806       3,728       3,864       -2 %
 
*   includes trading and equity share of CEPSA


12

 




TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
Adjustment items
l Adjustments to operating income from the business segments
                         
in millions of euros   1Q07   4Q06   1Q06
Special items affecting operating income from the business segments
     —       —       (5 )
 
•   Restructuring charges
     —       8       —  
•   Impairments
     —       (11 )     —  
•   Other
     —       3       (5 )
Pre-tax inventory effect : FIFO vs. replacement cost
     174       (389 )     373  
 
Total adjustments affecting operating income from the business segments
     174       (389 )     368  
l Adjustments to net income (Group share)
                         
in millions of euros   1Q07   4Q06   1Q06
Special items affecting net income (Group share)
     —       (18 )     110  
 
•   Equity share of special items recorded by Sanofi-Aventis
     —       (46 )     2  
•   Gain on asset sales
     —       174       130  
•   Restructuring charges
     —       (15 )     (15 )
•   Impairments
     —       (8 )     —  
•   Other
     —       (123 )     (7 )
Adjustment related to the Sanofi-Aventis merger* (share of amortization of intangible assets)
     (76 )     (58 )     (83 )
After-tax inventory effect : FIFO vs. replacement cost
     133       (436 )     280  
 
Total adjustments to net income
     57       (512 )     307  
 
*     based on 13% participation in Sanofi-Aventis at 3/31/2007, 12/31/2006, and 3/31/2006


13

 





TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
Net-debt-to-equity ratio
                         
in millions of euros   3/31/07   12/31/06   3/31/06
Current borrowings
     9,625       5,858       12,618  
Net current financial assets
     (10,918 )     (3,833 )     (10,598 )
Non-current financial debt
     13,836       14,174       13,491  
Hedging instruments of non-current debt
     (291 )     (486 )     (453 )
Cash and cash equivalents
     (2,962 )     (2,493 )     (4,313 )
Net debt
     9,290       13,220       10,745  
 
Shareholders equity
     42,866       40,321       43,170  
Estimated dividend payable
     (3,305 )     (2,258 )     (2,941 )
Minority interests
     868       827       913  
Equity
     40,429       38,890       41,142  
 
Net-debt-to-equity ratio
     23.0 %     34.0 %     26.1 %
Effective tax rates
                         
Effective tax rates *   1Q07   4Q06   1Q06
Upstream
     60.3 %     62.1 %     60.3 %
Group
     54.0 %     56.6 %     55.5 %
 
*  tax on adjusted net operating income / (adjusted net operating income — income from affiliates, dividends received from investments, and impairments of acquisition goodwill + tax on adjusted net operating income)
2007 Sensitivities*
                 
            Impact on operating   Impact on net
    Scenario   Change   income (e)   operating income (e)
€/$
   1.25 $/€   +0.1 $ per €   -2.2 B€   -1.1 B€
Brent
   60 $/b   +1 $/b   +0.38 B€   +0.15 B€
European refining margin indicator TRCV
   30 $/t   +1 $/t   +0.09 B€   +0.06 B€
 
*  sensitivities revised once per year upon publication of the previous year fourth quarter results


14

 




TOTAL
2, place de la Coupole
La Défense 6
92 400 Courbevoie France
Fax : + 33 (0) 1 47 44 68 21
Catherine ENCK
Tel. : + 33 (0) 1 47 44 37 76
Patricia MARIE
Tel. : + 33 (0) 1 47 44 45 90
Paul FLOREN
Tel. : + 33 (0) 1 47 44 45 91
Christine de CHAMPEAUX
Tel : + 33 (0) 1 47 44 47 49
Bertille ARON
Tel. : + 33 (0) 1 47 44 67 12
IPhilippe GATEAU
Tel. : + 33 (0) 1 47 44 47 05
Burkhard REUSS
Tel. : + 33 (0) 147 44 21 19
Lisa WYLER
Tel. +33 (0) 1 47 44 38 16
TOTAL S.A.
Capital 5 981 907 382,50 euros
542 051 180 R.C.S. Nanterre
www.total.com
Return on average capital employed
l For the twelve months ended March 31, 2007
                                         
in millions of euros   Upstream   Downstream   Chemicals **   Segments   Group
Adjusted net operating income
     8,270       2,842       973       12,085       12,855  
Capital employed at 3/31/06*
     23,282       11,296       7,187       41,765       49,615  
Capital employed at 3/31/07*
     24,808       11,442       7,129       43,379       50,773  
ROACE
     34.4 %     25.0 %     13.6 %     28.4 %     25.6 %
 
*   at replacement cost (excluding after-tax inventory effect)
**  capital employed for Chemicals reduced for the Toulouse-AZF provision of 122 M€ pre-tax at 3/31/06 and 153 M€ pre-tax at 3/31/07 and for the Arkema capital employed by 2,406 M€ at 3/31/2006
l For the twelve months ended March 31, 2006
                                         
in millions of euros   Upstream   Downstream   Chemicals**   Segments   Group
Adjusted net operating income
     8,621       2,888       828       12,337       13,075  
Capital employed at 3/31/05*
     17,877       8,735       6,603       33,215       39,703  
Capital employed at 3/31/06*
     23,282       11,296       7,187       41,765       49,615  
ROACE
     41.9 %     28.8 %     12.0 %     32.9 %     29.3 %
 
*   at replacement cost (excluding after-tax inventory effect)
**  capital employed for Chemicals reduced for the Toulouse-AZF provision of 100 M€ pre-tax at 3/31/05 and 122 M€ pre-tax at 3/31/06 and for the Arkema capital employed by 2,204 M€ at 3/31/05 and 2,406 M€ at 3/31/2006
l For the full year 2006
                                         
in millions of euros   Upstream   Downstream   Chemicals **   Segments   Group
Adjusted net operating income
     8,709       2,784       884       12,377       13,162  
Capital employed at 12/31/05*
     23,522       11,421       6,885       41,828       49,341  
Capital employed at 12/31/06*
     25,543       12,384       6,920       44,847       52,263  
ROACE
     35.5 %     23.4 %     12.8 %     28.6 %     25.9 %
 
*   at replacement cost (excluding after-tax inventory effect)
**  capital employed for Chemicals reduced for the Toulouse-AZF provision of 133 M€ pre-tax at 12/31/05 and 176 M€ pre-tax at 12/31/06 and for the Arkema capital employed by 2,235 M€ at 12/31/2005


15

 

CONSOLIDATED BALANCE SHEET
TOTAL
                         
    Amounts in millions of euros  
    March 31, 2007     December 31,     March 31, 2006  
    (unaudited)     2006     (unaudited)  
 
ASSETS
                        
 
                        
NON-CURRENT ASSETS
                        
Intangible assets, net
     4,685       4,705       4,836  
Property, plant and equipment, net
     41,049       40,576       40,244  
Equity affiliates : investments and loans
     13,667       13,331       13,059  
Other investments
     1,342       1,250       1,689  
Hedging instruments of non-current financial debt
     291       486       453  
Other non-current assets
     1,837       2,088       3,180  
 
TOTAL NON-CURRENT ASSETS
     62,871       62,436       63,461  
 
 
                        
CURRENT ASSETS
                        
Inventories, net
     11,377       11,746       12,672  
Accounts receivable, net
     18,132       17,393       19,642  
Prepaid expenses and other current assets
     6,414       7,247       6,969  
Current financial assets
     10,929       3,908       10,707  
Cash and cash equivalents
     2,962       2,493       4,313  
 
TOTAL CURRENT ASSETS
     49,814       42,787       54,303  
 
TOTAL ASSETS
     112,685       105,223       117,764  
 
 
                        
LIABILITIES & SHAREHOLDERS’ EQUITY
                        
 
                        
SHAREHOLDERS’ EQUITY
                        
Common shares
     5,982       6,064       6,179  
Paid-in surplus and retained earnings
     42,963       41,460       41,809  
Cumulative translation adjustment
     (1,716 )     (1,383 )     744  
Treasury shares
     (4,363 )     (5,820 )     (5,562 )
 
SHAREHOLDERS’ EQUITY — GROUP SHARE
     42,866       40,321       43,170  
 
Minority interests
     868       827       913  
 
TOTAL SHAREHOLDERS’ EQUITY
     43,734       41,148       44,083  
 
 
                        
NON-CURRENT LIABILITIES
                        
Deferred income taxes
     7,118       7,139       7,228  
Employee benefits
     2,841       2,773       3,269  
Other non-current liabilities
     6,360       6,467       7,030  
 
TOTAL NON-CURRENT LIABILITIES
     16,319       16,379       17,527  
 
NON-CURRENT FINANCIAL DEBT
     13,836       14,174       13,491  
 
 
                        
CURRENT LIABILITIES
                        
Accounts payable
     14,972       15,080       15,559  
Other creditors and accrued liabilities
     14,188       12,509       14,377  
Current borrowings
     9,625       5,858       12,618  
Other current financial liabilities
     11       75       109  
 
TOTAL CURRENT LIABILITIES
     38,796       33,522       42,663  
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
     112,685       105,223       117,764  
 
The comparative balance sheet as of March 31, 2006 includes the sub group Arkema which was spun-off as of May 18, 2006.

 

 

CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
                         
    1st quarter     4th quarter     1st quarter  
Amounts in millions of euros (1)   2007     2006     2006  
 
Sales
     37,043       36,433       38,103  
Excise taxes
     (5,366 )     (6,536 )     (4,607 )
Revenues from sales
     31,677       29,897       33,496  
 
Purchases, net of inventory variation
     (19,709 )     (18,863 )     (20,442 )
Other operating expenses
     (4,652 )     (4,613 )     (4,750 )
Exploration costs
     (214 )     (214 )     (115 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (1,300 )     (1,313 )     (1,231 )
 
 
                        
Operating income
                        
Corporate
     (101 )     (171 )     (98 )
Business segments *
     5,903       5,065       7,056  
 
Total operating income
     5,802       4,894       6,958  
 
 
                        
Other income
     96       400       261  
Other expense
     (64 )     (299 )     (85 )
 
                        
Financial interest on debt
     (430 )     (471 )     (328 )
Financial income from marketable securities and cash equivalents
     294       375       271  
Cost of net debt
     (136 )     (96 )     (57 )
 
                        
Other financial income
     128       141       106  
Other financial expense
     (67 )     (83 )     (51 )
Income taxes
     (3,090 )     (3,001 )     (3,813 )
Equity in income (loss) of affiliates
     469       344       444  
 
Consolidated net income from continuing operations (Group without Arkema)
     3,138       2,300       3,763  
 
Consolidated net income from discontinued operations (Arkema)
     —       —       8  
 
Consolidated net income
     3,138       2,300       3,771  
 
Group share **
     3,049       2,225       3,683  
Minority interests
     89       75       88  
 
Earnings per share (euros)
     1,35       0,98       1,59  
 
Fully-diluted earnings per share (euros) ***
     1,34       0,97       1,58  
 
 
                        
 
* Adjusted operating income from business segments
     5,729       5,454       6,688  
 
Adjusted net operating income from business segments
     2,948       2,689       3,240  
 
** Adjusted net income
     2,992       2,737       3,376  
 
*** Adjusted fully-diluted earnings per share (euros)
     1,31       1,20       1,45  
 
(1) Except for earnings per share

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
TOTAL
(unaudited)
                         
    1st quarter     4th quarter     1st quarter  
Amounts in millions of euros   2007     2006     2006  
 
CASH FLOW FROM OPERATING ACTIVITIES
                        
 
                        
Consolidated net income
     3,138       2,300       3,771  
Depreciation, depletion and amortization
     1,438       1,210       1,444  
Non-current liabilities, valuation allowances and deferred taxes
     (27 )     357       94  
Impact of coverage of pension benefit plans
     —       (142 )     —  
(Gains) Losses on sales of assets
     (75 )     (400 )     (261 )
Undistributed affiliates’ equity earnings
     (330 )     (308 )     (375 )
(Increase) Decrease in operating assets and liabilities
     2,098       (942 )     179  
Other changes, net
     146       48       (13 )
 
CASH FLOW FROM OPERATING ACTIVITIES
     6,388       2,123       4,839  
 
 
                        
CASH FLOW USED IN INVESTING ACTIVITIES
                        
 
                        
Intangible assets and property, plant and equipment additions
     (2,123 )     (3,041 )     (2,161 )
Acquisitions of subsidiaries, net of cash acquired
     (20 )     (22 )     (69 )
Investments in equity affiliates and other securities
     (100 )     (202 )     (59 )
Increase in non-current loans
     (171 )     (391 )     (461 )
 
Total expenditures
     (2,414 )     (3,656 )     (2,750 )
Proceeds from sale of intangible assets and property, plant and equipment
     72       84       260  
Proceeds from sale of subsidiaries, net of cash sold
     —       18       —  
Proceeds from sale of non-current investments
     19       535       3  
Repayment of non-current loans
     153       434       134  
 
Total divestitures
     244       1,071       397  
 
CASH FLOW USED IN INVESTING ACTIVITIES
     (2,170 )     (2,585 )     (2,353 )
 
 
                        
CASH FLOW USED IN FINANCING ACTIVITIES
                        
 
                        
Issuance (repayment) of shares:
                        
Parent company’s shareholders
     5       23       471  
Treasury shares
     (273 )     (659 )     (1,118 )
Minority shareholders
     —       2       12  
Cash dividends paid:
                        
- Parent company’s shareholders
     —       (1,977 )     (10 )
- Minority shareholders
     (29 )     (96 )     (6 )
Net issuance (repayment) of non-current debt
     1,104       1,915       730  
Increase (Decrease) in current borrowings
     2,642       (5,917 )     8,204  
Increase (Decrease) in current financial assets and liabilities
     (7,106 )     7,295       (10,503 )
Other changes, net
     —       —       —  
 
CASH FLOW USED IN FINANCING ACTIVITIES
     (3,657 )     586       (2,220 )
 
Net increase (decrease) in cash and cash equivalents
     561       124       266  
Effect of exchange rates and changes in reporting entity
     (92 )     (206 )     (271 )
Cash and cash equivalents at the beginning of the period
     2,493       2,575       4,318  
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
     2,962       2,493       4,313  
 
The first quarter 2006 comparative consolidated statement of cash flows includes the sub-group Arkema which was spun-off on May 18, 2006.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
                                                                         
                    Paid-in                                
                    surplus and     Cumulative                          
    Common shares issued     retained     translation     Treasury shares     Shareholders’     Minority     Total  
(Amounts in millions of euros)   Number     Amount     earnings     adjustment     Number     Amount     equity     interests     equity  
 
As of January 1, 2006
     615,116,296       6,151       37,504       1,421       (34,249,332 )     (4,431 )     40,645       838       41,483  
 
Net income for the first quarter
     —       —       3,683       —       —       —       3,683       88       3,771  
Items recognized directly in equity
     —       —       155       (677 )     —       —       (522 )     (7 )     (529 )
Total excluding transactions with shareholders
     —       —       3,838       (677 )     —       —       3,161       81       3,242  
Cash dividend
     —       —       (10 )     —       —       —       (10 )     (6 )     (16 )
Issuance of common shares
     2,827,663       28       439       —       —       —       467       —       467  
Purchase of treasury shares
     —       —       —       —       (5,500,000 )     (1,190 )     (1,190 )     —       (1,190 )
Sale of treasury shares (1)
     —       —       4       —       502,932       59       63       —       63  
Share-based payments
     —       —       34       —       —       —       34       —       34  
Transactions with shareholders
     2,827,663       28       467       —       (4,997,068 )     (1,131 )     (636 )     (6 )     (642 )
Cancellation of repurchased shares
     —       —       —       —       —       —       —       —       —  
As of March 31, 2006
     617,943,959       6,179       41,809       744       (39,246,400 )     (5,562 )     43,170       913       44,083  
 
Net income from April 1, 2006 to December 31, 2006
     —       —       8,085       —       —       —       8,085       279       8,364  
Items recognized directly in equity
     —       —       (192 )     (1,918 )     —       —       (2,110 )     (37 )     (2,147 )
Total excluding transactions with shareholders
     —       —       7,893       (1,918 )     —       —       5,975       242       6,217  
Four-for-one split of shares par value
     1,845,348,888       —       —       —       (102,747,996 )     —       —       —       —  
Spin-off of Arkema
     —       —       (2,061 )     (209 )     —       16       (2,254 )     (8 )     (2,262 )
Cash dividend
     —       —       (3,989 )     —       —       —       (3,989 )     (320 )     (4,309 )
Issuance of common shares
     9,495,106       2       30       —       —       —       32       —       32  
Purchase of treasury shares
     —       —       —       —       (72,720,684 )     (2,905 )     (2,905 )     —       (2,905 )
Sale of treasury shares (1)
     —       —       (4 )     —       6,494,373       173       169       —       169  
Share-based payments
     —       —       123       —       —       —       123       —       123  
Transactions with shareholders
     1,854,843,994       2       (5,901 )     (209 )     (168,974,307 )     (2,716 )     (8,824 )     (328 )     (9,152 )
Cancellation of repurchased shares
     (47,020,000 )     (117 )     (2,341 )     —       47,020,000       2,458       —       —       —  
As of December 31, 2006
     2,425,767,953       6,064       41,460       (1,383 )     (161,200,707 )     (5,820 )     40,321       827       41,148  
 
Net income for the first quarter
     —       —       3,049       —       —       —       3,049       89       3,138  
Items recognized directly in equity
     —       —       57       (333 )     —       —       (276 )     (19 )     (295 )
Total excluding transactions with shareholders
     —       —       3,106       (333 )     —       —       2,773       70       2,843  
Cash dividend
     —       —       —       —       —       —       —       (29 )     (29 )
Issuance of common shares
     149,331       —       4       —       —       —       4       —       4  
Purchase of treasury shares
     —       —       —       —       (6,000,000 )     (306 )     (306 )     —       (306 )
Sale of treasury shares (1)
     —       —       4       —       886,836       29       33       —       33  
Share-based payments
     —       —       41       —       —       —       41       —       41  
Transactions with shareholders
     149,331       —       49       —       (5,113,164 )     (277 )     (228 )     (29 )     (257 )
Cancellation of repurchased shares
     (33,005,000 )     (82 )     (1,652 )     —       33,005,000       1,734       —       —       —  
As of March 31, 2007
     2,392,912,284       5,982       42,963       (1,716 )     (133,308,871 )     (4,363 )     42,866       868       43,734  
 
(1) Treasury shares related to the stock option purchase plans

 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
1st quarter 2007   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,234       26,801       4,995       13               37,043  
Intersegment sales
     4,743       1,243       232       42       (6,260 )     —  
Excise taxes
     —       (5,366 )     —       —               (5,366 )
 
Revenues from sales
     9,977       22,678       5,227       55       (6,260 )     31,677  
 
Operating expenses
     (4,724 )     (21,307 )     (4,655 )     (149 )     6,260       (24,575 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (878 )     (291 )     (124 )     (7 )             (1,300 )
 
Operating income
     4,375       1,080       448       (101 )     —       5,802  
 
Equity in income (loss) of affiliates and other items
     270       54       23       215               562  
Tax on net operating income
     (2,684 )     (337 )     (148 )     32               (3,137 )
 
Net operating income
     1,961       797       323       146               3,227  
 
Net cost of net debt
                                             (89 )
Minority interests
                                             (89 )
 
Net income from continuing operations Group share
                                             3,049  
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             3,049  
 
                                                 
1st quarter 2007                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     —       —       —       —               —  
Intersegment sales
     —       —       —       —               —  
Excise taxes
     —       —       —       —               —  
 
Revenues from sales
                                             —  
 
Operating expenses
     —       107       67       —               174  
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       —       —               —  
 
Operating income (1)
     —       107       67       —               174  
 
Equity in income (loss) of affiliates and other items (2)
     —       18       (1 )     (76 )             (59 )
Tax on net operating income
     —       (36 )     (22 )     —               (58 )
 
Net operating income (1)
     —       89       44       (76 )             57  
 
Net cost of net debt
                                             —  
Minority interests
                                             —  
 
Net income from continuing operations Group share
                                             57  
 
Net income from discontinued operations Group share
                                             —  
 
Net income Group share
                                             57  
 
(*)   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
     —       107       67       —  
      On net operating income
     —       89       44       —  
 
(2) Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger
     —       —       —       (76 )
                                                 
1st quarter 2007                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,234       26,801       4,995       13               37,043  
Intersegment sales
     4,743       1,243       232       42       (6,260 )     —  
Excise taxes
     —       (5,366 )     —       —               (5,366 )
 
Revenues from sales
     9,977       22,678       5,227       55       (6,260 )     31,677  
 
Operating expenses
     (4,724 )     (21,414 )     (4,722 )     (149 )     6,260       (24,749 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (878 )     (291 )     (124 )     (7 )             (1,300 )
 
Operating income
     4,375       973       381       (101 )             5,628  
 
Equity in income (loss) of affiliates and other items
     270       36       24       291               621  
Tax on net operating income
     (2,684 )     (301 )     (126 )     32               (3,079 )
 
Net operating income
     1,961       708       279       222               3,170  
 
Net cost of net debt
     —       —       —       —               (89 )
Minority interests
     —       —       —       —               (89 )
Net income from continuing operations Group share
     —       —       —       —               2,992  
 
Net income from discontinued operations Group share
     —       —       —       —               —  
 
Net income Group share
     —       —       —       —               2,992  
 
                                                 
1st quarter 2007   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     1,989       244       173       8               2,414  
Divestitures at selling price
     173       22       47       2               244  
Cash flow from operating activities
     4,335       1,905       107       41               6,388  
 

 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
1st quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,714       27,692       4,689       8       —       38,103  
Intersegment sales
     5,400       1,335       152       43       (6,930 )     —  
Excise taxes
     —       (4,607 )     —       —       —       (4,607 )
 
Revenues from sales
     11,114       24,420       4,841       51       (6,930 )     33,496  
 
Operating expenses
     (4,680 )     (22,931 )     (4,486 )     (140 )     6,930       (25,307 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (833 )     (260 )     (129 )     (9 )     —       (1,231 )
 
Operating income
     5,601       1,229       226       (98 )     —       6,958  
 
Equity in income (loss) of affiliates and other items
     383       74       17       201       —       675  
Tax on net operating income
     (3,454 )     (373 )     (55 )     53       —       (3,829 )
 
Net operating income
     2,530       930       188       156       —       3,804  
 
Net cost of net debt
     —       —       —       —       —       (41 )
Minority interests
     —       —       —       —       —       (88 )
 
Net income from continuing operations Group share
     —       —       —       —       —       3,675  
 
Consolidated net income from discontinued operations
     —       —       —       —       —       8  
 
Net income Group share
     —       —       —       —       —       3,683  
 
                                                 
1st quarter 2006                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     —       —       —       —       —       —  
Intersegment sales
     —       —       —       —       —       —  
Excise taxes
     —       —       —       —       —       —  
 
Revenues from sales
     —       —       —       —       —       —  
 
Operating expenses
     —       373       (5 )     —       —       368  
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       —       —       —       —  
 
Operating income (1)
     —       373       (5 )     —       —       368  
 
Equity in income (loss) of affiliates and other items (2)
     195       18       1       (81 )     —       133  
Tax on net operating income
     (65 )     (111 )     2       —       —       (174 )
 
Net operating income (1)
     130       280       (2 )     (81 )     —       327  
 
Net cost of net debt
     —       —       —       —       —       —  
Minority interests
     —       —       —       —       —       (1 )
 
Net income from continuing operations Group share
     —       —       —       —       —       326  
 
Consolidated net income from discontinued operations
     —       —       —       —       —       (19 )
 
Net income Group share
     —       —       —       —       —       307  
 
                                 
(*)   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   —     373       —       —  
 
        On net operating income   —     280       1       —  
 
(2)
  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger   —     —       —       (83 )
                                                 
1st quarter 2006                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     5,714       27,692       4,689       8       —       38,103  
Intersegment sales
     5,400       1,335       152       43       (6,930 )     —  
Excise taxes
     —       (4,607 )     —       —       —       (4,607 )
 
Revenues from sales
     11,114       24,420       4,841       51       (6,930 )     33,496  
 
Operating expenses
     (4,680 )     (23,304 )     (4,481 )     (140 )     6,930       (25,675 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (833 )     (260 )     (129 )     (9 )     —       (1,231 )
 
Operating income
     5,601       856       231       (98 )     —       6,590  
 
Equity in income (loss) of affiliates and other items
     188       56       16       282       —       542  
Tax on net operating income
     (3,389 )     (262 )     (57 )     53       —       (3,655 )
 
Net operating income
     2,400       650       190       237       —       3,477  
 
Net cost of net debt
     —       —       —       —       —       (41 )
Minority interests
     —       —       —       —       —       (87 )
 
Net income from continuing operations Group share
     —       —       —       —       —       3,349  
 
Consolidated net income from discontinued operations
     —       —       —       —       —       27  
 
Net income Group share
     —       —       —       —       —       3,376  
 
                                                 
1st quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
             
Total expenditures
     2,081       321       324       24               2,750  
Divestitures at selling price
     353       13       28       3               397  
Cash flow from operating activities
     3,831       1,201       (37 )     (156 )             4,839  
 

 

 

BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                                                 
    Amounts in millions of euros  
4th quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     4,960       26,861       4,610       2               36,433  
Intersegment sales
     4,982       1,044       212       50       (6,288 )     —  
Excise taxes
     —       (6,536 )     —       —       —       (6,536 )
 
Revenues from sales
     9,942       21,369       4,822       52       (6,288 )     29,897  
 
Operating expenses
     (4,746 )     (20,592 )     (4,425 )     (215 )     6,288       (23,690 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (866 )     (305 )     (134 )     (8 )             (1,313 )
 
Operating income
     4,330       472       263       (171 )             4,894  
 
Equity in income (loss) of affiliates and other items
     324       151       (177 )     205               503  
Tax on net operating income
     (2,769 )     (264 )     (38 )     14               (3,057 )
 
Net operating income
     1,885       359       48       48               2,340  
 
Net cost of net debt
                                             (40 )
Minority interests
                                             (75 )
 
Net income from continuing operations Group share
                                             2,225  
 
Consolidated net income from discontinued operations
                                             —  
 
Net income Group share
                                             2,225  
 
                                                 
4th quarter 2006                                    
(adjustments) (*)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
                                               
Intersegment sales
                                               
Excise taxes
                                                
 
Revenues from sales
                                                
 
Operating expenses
     —       (278 )     (100 )     (7 )             (385 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     —       —       (11 )     —               (11 )
 
Operating income (1)
     —       (278 )     (111 )     (7 )             (396 )
 
Equity in income (loss) of affiliates and other items (2)
     —       155       (178 )     (104 )             (127 )
Tax on net operating income
     —       (67 )     82       (11 )             4  
 
Net operating income (1)
     —       (190 )     (207 )     (122 )             (519 )
 
Net cost of net debt
                                             —  
Minority interests
                                             7  
 
Net income from continuing operations Group share
                                             (512 )
 
Consolidated net income from discontinued operations
                                             —  
 
Net income Group share
                                             (512 )
 
                                 
(*)   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   —     (278 )     (111 )   —  
 
        On net operating income   —     (364 )     (77 )   —  
 
(2)
  Of which equity share of amortization of intangible assets related to the Sanofi-Aventis merger   —     —       —       (58 )
                                                 
4th quarter 2006                                    
(adjusted)   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Non-Group sales
     4,960       26,861       4,610       2               36,433  
Intersegment sales
     4,982       1,044       212       50       (6,288 )     —  
Excise taxes
     —       (6,536 )     —       —       —       (6,536 )
 
Revenues from sales
     9,942       21,369       4,822       52       (6,288 )     29,897  
 
Operating expenses
     (4,746 )     (20,314 )     (4,325 )     (208 )     6,288       (23,305 )
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (866 )     (305 )     (123 )     (8 )             (1,302 )
 
Operating income
     4,330       750       374       (164 )             5,290  
 
Equity in income (loss) of affiliates and other items
     324       (4 )     1       309               630  
Tax on net operating income
     (2,769 )     (197 )     (120 )     25               (3,061 )
 
Net operating income
     1,885       549       255       170               2,859  
 
Net cost of net debt
                                             (40 )
Minority interests
                                             (82 )
 
Net income from continuing operations Group share
                                             2,737  
 
Consolidated net income from discontinued operations
                                             —  
 
Net income Group share
                                             2,737  
 
                                                 
4th quarter 2006   Upstream     Downstream     Chemicals     Corporate     Intercompany     Total  
 
Total expenditures
     2,638       703       293       22       —       3,656  
Divestitures at selling price
     523       275       29       244       —       1,071  
Cash flow from operating activities
     1,788       261       725       (651 )     —       2,123  
 

 

 

CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
                                 
                            1st quarter  
    1st quarter 2007     2006  
                    Consolidated        
Amounts in millions of euros   Adjusted     Adjustments     statement of income     Adjusted  
 
Sales
     37,043       —       37,043       38,103  
Excise taxes
     (5,366 )     —       (5,366 )     (4,607 )
Revenues from sales
     31,677       —       31,677       33,496  
 
                                
Purchases, net of inventory variation
     (19,883 )     174       (19,709 )     (20,815 )
Other operating expenses
     (4,652 )     —       (4,652 )     (4,745 )
Exploration costs
     (214 )     —       (214 )     (115 )
 
                                
Depreciation, depletion, and amortization of tangible assets and leasehold rights
     (1,300 )     —       (1,300 )     (1,231 )
 
 
                                
Operating income
                                
Corporate
     (101 )     —       (101 )     (98 )
Business segments
     5,729       174       5,903       6,688  
 
Total operating income
     5,628       174       5,802       6,590  
 
Other income
     96       —       96       66  
Other expense
     (64 )     —       (64 )     (85 )
 
                                
Financial interest on debt
     (430 )     —       (430 )     (328 )
Financial income from marketable securities and cash equivalents
     294       —       294       271  
Cost of net debt
     (136 )     —       (136 )     (57 )
 
                                
Other financial income
     128       —       128       106  
Other financial expense
     (67 )     —       (67 )     (51 )
Income taxes
     (3,032 )     (58 )     (3,090 )     (3,639 )
Equity in income (loss) of affiliates
     528       (59 )     469       506  
 
Consolidated net income from continuing operations (Group without Arkema)
     3,081       57       3,138       3,436  
 
Consolidated net income from discontinued operations (Arkema)
     —       —       —       27  
 
Consolidated net income
     3,081       57       3,138       3,463  
 
Group share
     2,992       57       3,049       3,376  
Minority interests
     89       —       89       87