UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
October 31, 2013
Commission File Number 001-10888
TOTAL S.A.
(Translation of registrants name into English)
2, place Jean Millier
La Défense 6
92400 Courbevoie
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-180967, 333-180967-01, 333-180967-02 AND 333-180967-03) OF TOTAL S.A., TOTAL CAPITAL INTERNATIONAL, TOTAL CAPITAL CANADA LTD. AND TOTAL CAPITAL AND THE REGISTRATION STATEMENTS ON FORM S-8 (NOS. 333-126463, 333-144415, 333-150365, 333-150366, 333-169828, 333-172832, 333-183144 AND 333-185168) OF TOTAL S.A., AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
TOTAL S.A. is providing on this Form 6-K its results for the third quarter of 2013 and nine months ended September 30, 2013, and a description of certain recent developments relating to its business, as well as a capitalization table as of September 30, 2013, and a ratio of earnings to fixed charges for the nine months ended September 30, 2013 and 2012, and each of the five years ended December 31, 2012, 2011, 2010, 2009 and 2008, together with the computation of the ratio of earnings to fixed charges.
EX-99.1: Results for the Third Quarter of 2013 and Nine Months Ended September 30, 2013 |
EX-99.2: Recent Developments |
EX-99.3: Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
EX-99.4: Computation of Ratio of Earnings to Fixed Charges |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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TOTAL S.A. | |
|
|
|
Date: October 31, 2013 |
By: |
/s/ HUMBERT DE WENDEL |
|
|
Name: Humbert de WENDEL |
|
|
Title: Treasurer |
Exhibit 99.1 |
|
Results for the Third Quarter of 2013 and Nine Months Ended September 30, 2013 |
Exhibit 99.2 |
|
Recent Developments |
Exhibit 99.3 |
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Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
Exhibit 99.4 |
|
Computation of Ratio of Earnings to Fixed Charges |
Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information in this Form 6-K concerning TOTAL S.A. and its subsidiaries and affiliates (collectively, TOTAL or the Group) with respect to the third quarter of 2013 and nine months ended September 30, 2013, has been derived from TOTALs unaudited consolidated financial statements for the third quarter of 2013 and nine months ended September 30, 2013. Following the application of revised accounting standard IAS 19 effective January 1, 2013, the information for 2012 and 2011 in this exhibit has been restated; however, the impact on such restated results is not significant (for further information concerning this restatement, see note 1 of the notes to the unaudited interim consolidated financial statements provided elsewhere in this Form 6-K).
The following discussion should be read in conjunction with the unaudited interim consolidated financial statements and the related notes provided elsewhere in this Form 6-K and with the information, including the audited financial statements and related notes, for the year ended December 31, 2012, in TOTALs Annual Report on Form 20-F for the year ended December 31, 2012, filed with the Securities and Exchange Commission (SEC) on March 28, 2013.
· Key figures and consolidated accounts of TOTAL*
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
in millions of euros |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
46,686 |
|
46,973 |
|
49,890 |
|
-6 |
% |
|
Sales |
|
141,789 |
|
150,193 |
|
-6 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income from business segments** |
|
|
|
|
|
|
|
|
2,329 |
|
2,325 |
|
2,897 |
|
-20 |
% |
|
· Upstream |
|
7,120 |
|
8,459 |
|
-16 |
% |
|
330 |
|
370 |
|
567 |
|
-42 |
% |
|
· Refining & Chemicals |
|
1,083 |
|
1,009 |
|
+7 |
% |
|
330 |
|
330 |
|
245 |
|
+35 |
% |
|
· Marketing & Services |
|
925 |
|
563 |
|
+64 |
% |
|
1.21 |
|
1.12 |
|
1.36 |
|
-11 |
% |
|
Fully-diluted earnings per share (euros) |
|
3.01 |
|
3.65 |
|
-18 |
% |
|
2,275 |
|
2,274 |
|
2,268 |
|
|
|
|
Fully-diluted weighted-average shares (millions) |
|
2,269 |
|
2,265 |
|
|
|
|
2,761 |
|
2,537 |
|
3,082 |
|
-10 |
% |
|
Net income (Group share) |
|
6,835 |
|
8,268 |
|
-17 |
% |
|
5,852 |
|
5,712 |
|
5,416 |
|
+8 |
% |
|
Investments*** |
|
17,548 |
|
16,320 |
|
+8 |
% |
|
2,188 |
|
1,334 |
|
1,635 |
|
+34 |
% |
|
Divestments |
|
4,138 |
|
4,305 |
|
-4 |
% |
|
3,664 |
|
4,378 |
|
3,781 |
|
-3 |
% |
|
Net investments |
|
13,410 |
|
12,015 |
|
+12 |
% |
|
6,954 |
|
3,706 |
|
5,163 |
|
+35 |
% |
|
Cash flow from operations |
|
14,378 |
|
16,597 |
|
-13 |
% |
|
* Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See Analysis of business segment results below for further details.
** For a discussion of the segment reorganizations effective as of January 1, 2012 and July 1, 2012, see Analysis of business segments below.
*** Including acquisitions.
· Third quarter 2013 results
Ø Sales
In the third quarter 2013, the Brent price averaged $110.3/b, an increase of 1% compared to the third quarter 2012. The European refining margin indicator (ERMI) averaged $10.6/t, a decrease of 79% compared to the third quarter 2012. The environment for petrochemicals improved compared to the same period last year.
The euro-dollar exchange rate averaged $1.32/ in the third quarter 2013 compared to $1.25/ in the third quarter 2012.
In this environment, sales were 46,686 million in the third quarter 2013, a decrease of 6% compared to 49,890 million in the third quarter 2012.
Ø Net income
Net income (Group share) in the third quarter 2013 decreased by 10% to 2,761 million from 3,082 million in the third quarter 2012, mainly due to a lower contribution from Upstream, which reflects an unfavorable production mix and higher exploration charges, and a lower contribution from Refining & Chemicals, partially offset by the robust performance from Marketing & Services. The after-tax inventory valuation effect (as defined below under Analysis of business segment results) had a negative impact on net income
(Group share) of 24 million in the third quarter 2013. Such effect had a positive impact of 524 million in the third quarter 2012, primarily as a result of the increase in the price of Brent during the period. The changes in fair value of trading inventories and storage contracts (as defined below under Analysis of business segment results) had a negative impact on net income (Group share) of 7 million in the third quarter 2013 and a negative impact of 6 million in the third quarter 2012. Special items had a positive impact on net income (Group share) of 76 million in the third quarter 2013, comprised mainly of the gain on the sale of TIGF in France essentially offset by impairments, including on assets in the Barnett field in the United States and in Syria, compared to a negative impact of 800 million in the third quarter 2012, comprised essentially of an impairment to the value of assets in the Barnett field in the United States and a one-off tax of 4% on crude and refined product inventories partially offset by gains on the sale of Sanofi shares.
Fully-diluted earnings per share, based on 2,275 million fully-diluted weighted-average shares, was 1.21 in the third quarter 2013 compared to 1.36 in the third quarter 2012, a decrease of 11%.
Ø Investments divestments(1)
Investments, excluding acquisitions and including changes in non-current loans of 176 million, were 5.0 billion in the third quarter 2013, compared to 4.9 billion in the third quarter 2012.
Acquisitions in the third quarter 2013 were 549 million, comprised essentially of the bonus for exploration licenses in South Africa and Brazil and the carry on the Utica gas and condensate field in the United States. Acquisitions were 294 million in the third quarter 2012.
Asset sales in the third quarter 2013 were 1,849 million, comprised essentially of the sale of TIGF in France and the Groups exploration and production assets in Trinidad & Tobago. Asset sales were 1,416 million in the third quarter 2012.
Net investments(2) were 3.7 billion in the third quarter 2013 compared to 3.8 billion in the third quarter 2012.
Ø Cash flow
Cash flow from operations was 6,954 million in the third quarter 2013, an increase of 35% compared to 5,163 million in the third quarter 2012. The increase was due mainly to favorable changes in working capital.
The Groups net cash flow(3) was 3,290 million in the third quarter 2013 compared to 1,382 million in the third quarter 2012, reflecting essentially the favorable evolution of changes in working capital.
· Results for the first nine months of 2013
Ø Sales
Compared to the first nine months of 2012, the average Brent price decreased by 3% to $108.5/b in the first nine months of 2013. The European refining margin indicator (ERMI) averaged $20.5/t in the first nine months of 2013 compared to $36.7/t in the first nine months of 2012, a decrease of 44%. In contrast, the petrochemicals environment on average improved, particularly in Asia and the United States, between the two periods.
The euro-dollar exchange rate averaged $1.32/ compared to $1.28/ in the first nine months of 2012.
In this environment, sales were 141,789 million in the first nine months of 2013, a decrease of 6% compared to 150,193 million in the first nine months of 2012.
Ø Net income
Net income (Group share) in the first nine months of 2013 decreased by 21% to 6,835 million from 8,268 million in the first nine months of 2012, mainly due to a lower contribution from Upstream, which was partially offset by better performance in the downstream segments. The after-tax inventory valuation effect (as defined below under Analysis of business segment results) had a negative impact on net income (Group share) of 475 million in the first nine months of 2013, primarily as a result of the decrease in
(1) Detail shown on page 12 of this exhibit.
(2) Net investments = investments including acquisitions and changes in non-current loans - asset sales.
(3) Net cash flow = cash flow from operations - net investments.
the price of Brent during the period, compared to a positive impact of 155 million in the first nine months of 2012. The changes in fair value of trading inventories and storage contracts (as defined below under Analysis of business segment results) had a negative impact on net income (Group share) of 30 million in the first nine months of 2013 and a negative impact of 17 million in the first nine months of 2012. Special items had a negative impact on net income (Group share) of 938 million in the first nine months of 2013, comprised mainly of the loss on the sale of the Voyageur upgrader project in Canada and the impairment of assets in the Barnett field in the United States, partially offset by the gain on the sale of TIGF in France and Upstream assets in Italy. Special items had a negative impact on net income (Group share) of 1,105 million in the first nine months of 2012, including, essentially, the third quarter 2012 impairment and one-off tax described above in Third quarter 2013 results Net income and the second quarter 2012 provision related to the settlement between the Department of Justice, the SEC and TOTAL to resolve issues arising from an investigation concerning gas contracts awarded in Iran in the 1990s, as described in TOTALs Annual Reports on Form 20-F and Form 6-K filed with the SEC on July 29, 2013.
Fully-diluted earnings per share, based on 2,269 million fully-diluted weighted-average shares, was 3.01 in the first nine months of 2013 compared to 3.65 in the first nine months of 2012, a decrease of 18%.
Ø Investments divestments(4)
Investments, excluding acquisitions and including changes in non-current loans of 462 million, were 14.8 billion in the first nine months of 2013 compared to 13.2 billion in the first nine months of 2012.
Acquisitions in the first nine months of 2013 were 2.0 billion, comprised essentially of the acquisition of an additional 6% interest in the Ichthys project in Australia, an additional 0.8% interest in Novatek(5), the carry on the Utica gas and condensate field in the United States and the bonus for exploration licenses in South Africa and Brazil. Acquisitions in the first nine months of 2012 were 2.6 billion.
Asset sales in the first nine months of 2013 were 3.3 billion(6), comprised essentially of the sale of TIGF in France , an interest in the Tempa Rossa field in Italy, the Groups 49% interest in the Voyageur upgrader project in Canada and the exploration and production assets in Trinidad & Tobago. Asset sales in the first nine months of 2012 were 3.7 billion.
Net investments were 13.4 billion in the first nine months of 2013 compared to 12.0 billion in the first nine months of 2012.
Ø Cash flow
Cash flow from operations in the first nine months of 2013 was 14,378 million, a decrease of 13% compared to the first nine months of 2012, mainly due to lower results and unfavorable changes in working capital.
The Groups net cash flow in the first nine months of 2013 was 968 million compared to 4,582 million in the first nine months of 2012, mainly due to higher net investments and unfavorable changes in working capital.
The net-debt-to-equity ratio was 23.0% on September 30, 2013 compared to 21.2% on September 30, 2012(7).
· Analysis of business segment results
In October 2011, the Group announced a proposed reorganization of its Downstream and Chemicals segments. The procedure for informing and consulting with employee representatives took place and the reorganization became effective on January 1, 2012. This led to organizational changes, with the creation of: a Refining & Chemicals segment, a large industrial center that encompasses refining, petrochemicals, fertilizers and specialty chemicals operations, as well as oil trading and shipping activities; and a Supply & Marketing segment (renamed the Marketing & Services segment on November 13, 2012), which is dedicated to worldwide supply and marketing activities in the oil products field. A further reorganization of the Groups Upstream and Marketing & Services segments became effective as of July 1, 2012, with the Upstream segment now consisting of the activities of Gas & Power in addition to the exploration and production of hydrocarbons, and the Marketing & Services segment now consisting of the activities of New Energies in addition to the Groups worldwide businesses of supplying and marketing petroleum products. Historical numbers contained herein have been restated on this basis.
(4) Detail shown on page 12 of this exhibit.
(5) As of September 30, 2013, the Group owns 16.2% of the share capital of Novatek.
(6) This amount does not include the sale of an interest in Block 14 in Angola, which was reported in the cash flow statement of the first quarter 2013 as a transaction involving a non-controlling interest.
(7) Detail shown on page 12 of this exhibit.
The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision maker in assessing segment performance and the allocation of segment resources. 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 asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, the Group values inventories of petroleum products in the financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Groups results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
As from January 1, 2011, the effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTALs management and the accounting for these transactions under IFRS. IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Groups internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding (as from January 1, 2011) the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTALs consolidated interim financial statements, see pages 23-29 and 31-33 of this exhibit.
The Group measures performance at the segment level on the basis of net operating income and adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
Ø UPSTREAM SEGMENT
○ Environment liquids and gas price realizations*
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
|
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
110.3 |
|
102.4 |
|
109.5 |
|
+1 |
% |
|
Brent $(/b) |
|
108.5 |
|
112.2 |
|
-3 |
% |
|
107.2 |
|
96.6 |
|
107.6 |
|
|
|
|
Average liquids price $(/b) |
|
103.5 |
|
108.1 |
|
-4 |
% |
|
7.18 |
|
6.62 |
|
6.00 |
|
+20 |
% |
|
Average gas price $(/Mbtu) |
|
7.04 |
|
6.68 |
|
+5 |
% |
|
77.3 |
|
69.8 |
|
75.8 |
|
+2 |
% |
|
Average hydrocarbons price $(/boe) |
|
74.8 |
|
77.4 |
|
-3 |
% |
|
* Consolidated subsidiaries, excluding fixed margins.
○ Production
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
Hydrocarbon production |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
2,299 |
|
2,290 |
|
2,272 |
|
+1 |
% |
|
Combined production (kboe/d) |
|
2,304 |
|
2,302 |
|
|
|
|
1,174 |
|
1,160 |
|
1,225 |
|
-4 |
% |
|
· Liquids (kb/d) |
|
1,175 |
|
1,224 |
|
-4 |
% |
|
6,167 |
|
6,169 |
|
5,680 |
|
+9 |
% |
|
· Gas (Mcf/d) |
|
6,158 |
|
5,875 |
|
+5 |
% |
|
Hydrocarbon production was 2,299 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2013, an increase of 1% compared to the third quarter 2012, essentially as a result of:
· +1.5% for growth from new projects;
· -0.5% for normal decline, partially offset by lower maintenance;
· +2% for the restart of production from Elgin/Franklin in the UK North Sea and Ibewa in Nigeria; and
· -2% for security issues in Nigeria and Libya in the third quarter 2013, partially offset by improved security conditions in Yemen.
In the first nine months of 2013, hydrocarbon production was 2,304 kboe/d, stable compared to the first nine months of 2012, essentially as a result of:
· +2.5% for growth from new projects;
· -1.5% for normal decline and scheduled maintenance; and
· -1% for security issues in Nigeria and Libya, partially offset by improved security conditions in Yemen.
○ Results
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
in millions of euros |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
4,479 |
|
4,781 |
|
5,001 |
|
-10 |
% |
|
Non-Group sales |
|
14,712 |
|
16,155 |
|
-9 |
% |
|
3,740 |
|
4,276 |
|
4,412 |
|
-15 |
% |
|
Operating income |
|
12,978 |
|
15,836 |
|
-18 |
% |
|
746 |
|
32 |
|
1,139 |
|
-35 |
% |
|
Adjustments affecting operating income |
|
776 |
|
1,171 |
|
-34 |
% |
|
4,486 |
|
4,308 |
|
5,551 |
|
-19 |
% |
|
Adjusted operating income* |
|
13,754 |
|
17,007 |
|
-19 |
% |
|
2,329 |
|
2,325 |
|
2,897 |
|
-20 |
% |
|
Adjusted net operating income* |
|
7,120 |
|
8,459 |
|
-16 |
% |
|
499 |
|
527 |
|
578 |
|
-14 |
% |
|
· Includes adjusted income from equity affiliates |
|
1,659 |
|
1,506 |
|
+10 |
% |
|
5,064 |
|
5,056 |
|
4,567 |
|
+11 |
% |
|
Investments |
|
15,375 |
|
14,100 |
|
+9 |
% |
|
2,114 |
|
1,112 |
|
401 |
|
x5.3 |
|
|
Divestments |
|
3,769 |
|
1,383 |
|
x2.7 |
|
|
4,765 |
|
2,128 |
|
3,457 |
|
+38 |
% |
|
Cash flow from operating activities |
|
11,043 |
|
14,521 |
|
-24 |
% |
|
* Detail of adjustment items shown on pages 23-29 and 31-33 of this exhibit.
In the third quarter 2013, adjusted net operating income from the Upstream segment was 2,329 million compared to 2,897 million in the third quarter 2012, a decrease of 20% mainly due to an unfavorable production mix and higher exploration charges in line with the more active drilling program.
Adjusted net operating income for the Upstream segment excludes special items. The exclusion of special items had a negative impact of 353 million in the third quarter 2013 on the Upstream segments adjusted net operating income, comprised mainly of the gain on the sale of TIGF in France essentially offset by impairments, including on assets in the Barnett field in the United States and in Syria, and a positive impact of 812 million in the third quarter 2012, consisting essentially of an impairment to the value of assets in the Barnett in the United States.
The effective tax rate for the Upstream segment in the third quarter 2013 was 60.1% compared to 58.8% in the third quarter 2012.
In the first nine months of 2013, adjusted net operating income from the Upstream segment was 7,120 million compared to 8,459 million in the first nine months of 2012, a decrease of 16% explained principally by an unfavorable production mix, higher exploration charges and a decrease in average realized hydrocarbon prices between the two periods.
The return on average capital employed (ROACE(8)) for the Upstream segment was 15% for the twelve months ended September 30, 2013, compared to 16% for the twelve months ended June 30, 2013.
Ø REFINING & CHEMICALS SEGMENT
○ Refinery throughput and utilization rates*
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
|
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
1,759 |
|
1,772 |
|
1,790 |
|
-2 |
% |
|
Total refinery throughput (kb/d) |
|
1,764 |
|
1,833 |
|
-4 |
% |
|
696 |
|
729 |
|
653 |
|
+7 |
% |
|
· France |
|
684 |
|
699 |
|
-2 |
% |
|
784 |
|
781 |
|
864 |
|
-9 |
% |
|
· Rest of Europe |
|
810 |
|
873 |
|
-7 |
% |
|
279 |
|
262 |
|
273 |
|
+2 |
% |
|
· Rest of world |
|
270 |
|
261 |
|
+3 |
% |
|
|
|
|
|
|
|
|
|
|
Utilization rates** |
|
|
|
|
|
|
|
|
81 |
% |
83 |
% |
82 |
% |
|
|
|
· Based on crude only |
|
82 |
% |
83 |
% |
|
|
|
86 |
% |
87 |
% |
86 |
% |
|
|
|
· Based on crude and other feedstock |
|
86 |
% |
88 |
% |
|
|
|
* Includes share of TotalErg. Results for refineries in South Africa, French Antilles and Italy are accounted for in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.
In the third quarter 2013, refinery throughput decreased by 2% compared to the third quarter 2012. The decrease was mainly due to the start of a scheduled turnaround at Lindsey and maintenance at several of the Groups refineries during the third quarter 2013, as well as the closure of the Rome refinery at the end of the third quarter 2012. In addition, there were voluntary throughput reductions at the end third quarter 2013 due to the weakness of the margins.
In the first nine months of 2013, refinery throughput decreased by 4% compared to the first nine months of 2012, reflecting essentially the scheduled turnaround at the Antwerp platform in 2013, increased maintenance at Donges, as well as the closure of the Rome refinery at the end of the third quarter 2012.
○ Results
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
in millions of euros (except ERMI refining margins) |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
10.6 |
|
24.1 |
|
51.0 |
|
-79 |
% |
|
European refining margin indicator - ERMI ($/t) |
|
20.5 |
|
36.7 |
|
-44 |
% |
|
21,260 |
|
21,560 |
|
23,260 |
|
-9 |
% |
|
Non-Group sales |
|
64,438 |
|
68,948 |
|
-7 |
% |
|
143 |
|
(179 |
) |
1,243 |
|
-88 |
% |
|
Operating income |
|
301 |
|
1,203 |
|
-75 |
% |
|
119 |
|
536 |
|
(591 |
) |
n/a |
|
|
Adjustments affecting operating income |
|
728 |
|
(136 |
) |
n/a |
|
|
262 |
|
357 |
|
652 |
|
-60 |
% |
|
Adjusted operating income* |
|
1,029 |
|
1,067 |
|
-4 |
% |
|
330 |
|
370 |
|
567 |
|
-42 |
% |
|
Adjusted net operating income* |
|
1,083 |
|
1,009 |
|
+7 |
% |
|
119 |
|
113 |
|
102 |
|
+17 |
% |
|
· Contribution of Specialty chemicals** |
|
321 |
|
290 |
|
+11 |
% |
|
415 |
|
382 |
|
441 |
|
-6 |
% |
|
Investments |
|
1,330 |
|
1,371 |
|
-3 |
% |
|
8 |
|
208 |
|
55 |
|
-85 |
% |
|
Divestments |
|
243 |
|
203 |
|
+20 |
% |
|
840 |
|
1,303 |
|
1,036 |
|
-19 |
% |
|
Cash flow from operating activities |
|
1,855 |
|
1,625 |
|
+14 |
% |
|
* Detail of adjustment items shown on pages 23-29 and 31-33 of this exhibit.
** Made up of Hutchinson, Bostik and Atotech.
The European refining margin indicator (ERMI) averaged $10.6/t in the third quarter, a decrease of 79% compared to the third quarter 2012. Petrochemical margins improved globally (Europe, United States, Asia) compared to the same period last year, reflecting the impact of lower raw material prices (naphtha in Europe and Asia, ethane and LPG in the United States).
In the third quarter 2013, adjusted net operating income from the Refining & Chemicals segment was 330 million compared to 567 million in the third quarter 2012. The implementation of operational efficiencies and synergies as well as a more favorable petrochemicals environment partially offset the sharp decrease in European refining margins.
(8) Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 13 of this exhibit.
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a positive impact of 63 million in the third quarter 2013 on the Refining & Chemicals segments adjusted net operating income and a negative impact of 444 million in the third quarter 2012. The exclusion of special items had a positive impact of 223 million in the third quarter 2013 on the Refining & Chemicals segments adjusted net operating income, consisting essentially of a write-down of deferred tax assets in Belgium, and a positive impact of 78 million in the third quarter 2012, consisting essentially of a one-off tax of 4% on crude and refined product inventories.
As part of its downstream strategy, the Group announced in the third quarter 2013 a project to adapt and modernize its Carling petrochemicals platform and restore its competitiveness. In addition, the integrated SATORP platform in Saudi Arabia shipped its initial cargoes of refined products after successfully starting up the first units of the refinery.
In the first nine months of 2013, adjusted net operating income from the Refining & Chemicals segment was 1,083 million, an increase of 7% compared to the first nine months of 2012 despite the sharply lower refining margins. The increase was due partly to the more favorable petrochemicals environment and partly to the effectiveness of the Groups planned synergies and operational efficiency programs. Specialty Chemicals performed well despite a less favorable environment in Europe.
The ROACE for the Refining & Chemicals segment for the twelve months ended September 30, 2013, was 9% compared to 11% for the twelve months ended June 30, 2013.
Ø MARKETING & SERVICES SEGMENT
○ Refined product sales
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
Sales in kb/d* |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
1,144 |
|
1,150 |
|
1,143 |
|
|
|
|
Europe |
|
1,134 |
|
1,173 |
|
-3 |
% |
|
599 |
|
633 |
|
563 |
|
+6 |
% |
|
Rest of world |
|
613 |
|
539 |
|
+14 |
% |
|
1,743 |
|
1,783 |
|
1,706 |
|
+2 |
% |
|
Total Marketing & Services sales |
|
1,747 |
|
1,712 |
|
+2 |
% |
|
* Excludes trading and bulk refining sales, which are reported under the Refining & Chemicals segment (see page 11 of this exhibit); includes share of TotalErg.
In the third quarter 2013, sales increased by 2% compared to the third quarter last year. This increase was driven by sales in the Americas, Africa and Asia.
In the first nine months of 2013, sales volumes increased by 2% compared to the first nine months of 2012, mainly due to net increases in sales in the Americas, Africa and Asia. Sales in Europe declined by 3%, with a marked decrease in Italy that was related directly to the closure of the Rome refinery.
○ Results
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 vs |
|
in millions of euros |
|
9M13 |
|
9M12 |
|
9M13 vs |
| ||
21,074 |
|
20,561 |
|
21,574 |
|
-2 |
% |
|
Non-Group sales |
|
62,634 |
|
64,945 |
|
-4 |
% |
|
439 |
|
337 |
|
302 |
|
+45 |
% |
|
Operating income |
|
1,164 |
|
786 |
|
+48 |
% |
|
(41 |
) |
82 |
|
56 |
|
n/a |
|
|
Adjustments affecting operating income |
|
62 |
|
187 |
|
-67 |
% |
|
398 |
|
419 |
|
358 |
|
+11 |
% |
|
Adjusted operating income* |
|
1,226 |
|
973 |
|
+26 |
% |
|
330 |
|
330 |
|
245 |
|
+35 |
% |
|
Adjusted net operating income* |
|
925 |
|
563 |
|
+64 |
% |
|
(7 |
) |
|
|
(8 |
) |
n/a |
|
|
· Contribution of New Energies |
|
(20 |
) |
(183 |
) |
n/a |
|
|
326 |
|
242 |
|
383 |
|
-15 |
% |
|
Investments |
|
755 |
|
793 |
|
-5 |
% |
|
44 |
|
12 |
|
41 |
|
+7 |
% |
|
Divestments |
|
94 |
|
106 |
|
-11 |
% |
|
1,287 |
|
414 |
|
692 |
|
+86 |
% |
|
Cash flow from operating activities |
|
1,608 |
|
108 |
|
x14.9 |
|
|
* Detail of adjustment items shown on pages 23-29 and 31-33 of this exhibit.
The Marketing & Services segments non-group sales were 21.1 billion in the third quarter 2013, a decrease of 2% compared to the third quarter 2012.
In the third quarter 2013, adjusted net operating income from the Marketing & Services segment was 330 million, an increase of 35% compared to the third quarter 2012, mainly due to higher margins and volumes, particularly in the lubricants and retail network.
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a negative impact of 49 million in the third quarter 2013 on the Marketing & Services segments adjusted net operating income and a negative impact of 94 million in the third quarter 2012. The exclusion of special items had a negative impact of 11 million in the third quarter 2013 on the Marketing & Services segments adjusted net operating income and a positive impact of 110 million in the third quarter 2012, consisting essentially of a one-off tax of 4% on crude and refined product inventories.
In the first nine months of 2013, adjusted net operating income from the Marketing & Services segment was 925 million, an increase of 64% compared to the first nine months of 2012. The increase was due mainly to the improved performance of New Energies, which had a significant net loss for the first nine months of 2012, as well as overall improvements for marketing of refined products, particularly in emerging markets.
The ROACE for the Marketing & Services segment for the twelve months ended September 30, 2013, was 17% compared to 14% for the twelve months ended June 30, 2013.
· Summary and outlook
With the recent launch and start-up of several projects, TOTAL is progressing toward its objectives for 2015-2017, while laying the foundation for longer term growth.
In the Upstream segment, after launching the major Fort Hills mining project in Canada, the Group is continuing to evaluate the Kaombo project in Angola and the Yamal LNG project in Russia.
In the downstream segments, the progressive start-up of the SATORP platform in Jubail, Saudi Arabia should be achieved in early 2014.
Following the sale of TIGF in France, the Group is continuing to actively manage and optimize its asset portfolio to achieve its 2012-14 objective of selling $15-20 billion (approximately 12-15 billion) of assets.
While the Brent price has remained robust since the start of the fourth quarter, refining margins in Europe weakened to very low levels and the environment for petrochemicals appears less favorable than in the third quarter, due to seasonally lower demand.
As approved by the Board of Directors on October 30, 2013, TOTAL will pay a third quarter 2013 interim dividend of 0.59 /share on March 27, 2014 (9).
Forward-looking statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTALs future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTALs ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
(9) The ex-dividend date for the interim dividend will be March 24, 2014, and the payment date will be March 27, 2014.
· material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals;
· changes in currency exchange rates and currency devaluations;
· the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL;
· uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;
· uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals;
· changes in the current capital expenditure plans of TOTAL;
· the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;
· the financial resources of competitors;
· changes in laws and regulations, including tax and environmental laws and industrial safety regulations;
· the quality of future opportunities that may be presented to or pursued by TOTAL;
· the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally;
· the ability to obtain governmental or regulatory approvals;
· the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters;
· the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;
· changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities;
· the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and
· the risk that TOTAL will inadequately hedge the price of crude oil or finished products.
For additional factors, you should read the information set forth under Item 3. Risk Factors, Item 4. Information on the Company Other Matters, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures about Market Risk in TOTALs Form 20-F for the year ended December 31, 2012.
Operating information by segment for
third quarter and first nine months of 2013
· Upstream
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
Combined liquids and gas production by |
|
9M13 |
|
9M12 |
|
9M13 |
|
386 |
|
383 |
|
361 |
|
+7 |
% |
Europe |
|
387 |
|
430 |
|
-10 |
% |
656 |
|
688 |
|
737 |
|
-11 |
% |
Africa |
|
678 |
|
717 |
|
-5 |
% |
553 |
|
527 |
|
501 |
|
+10 |
% |
Middle East |
|
541 |
|
496 |
|
+9 |
% |
77 |
|
70 |
|
71 |
|
+8 |
% |
North America |
|
73 |
|
69 |
|
+6 |
% |
172 |
|
171 |
|
182 |
|
-5 |
% |
South America |
|
172 |
|
184 |
|
-7 |
% |
235 |
|
229 |
|
230 |
|
+2 |
% |
Asia-Pacific |
|
233 |
|
219 |
|
+6 |
% |
220 |
|
222 |
|
190 |
|
+16 |
% |
CIS |
|
220 |
|
187 |
|
+18 |
% |
2,299 |
|
2,290 |
|
2,272 |
|
+1 |
% |
Total production |
|
2,304 |
|
2,302 |
|
|
|
697 |
|
678 |
|
615 |
|
+13 |
% |
Includes equity affiliates |
|
685 |
|
607 |
|
+13 |
% |
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
Liquids production by region (kboe/d) |
|
9M13 |
|
9M12 |
|
9M13 |
|
170 |
|
154 |
|
179 |
|
-5 |
% |
Europe |
|
164 |
|
201 |
|
-18 |
% |
527 |
|
542 |
|
587 |
|
-10 |
% |
Africa |
|
540 |
|
575 |
|
-6 |
% |
335 |
|
320 |
|
323 |
|
+4 |
% |
Middle East |
|
328 |
|
311 |
|
+5 |
% |
29 |
|
27 |
|
25 |
|
+16 |
% |
North America |
|
28 |
|
25 |
|
+12 |
% |
53 |
|
55 |
|
56 |
|
-5 |
% |
South America |
|
55 |
|
60 |
|
-8 |
% |
30 |
|
29 |
|
28 |
|
+7 |
% |
Asia-Pacific |
|
30 |
|
26 |
|
+15 |
% |
30 |
|
33 |
|
27 |
|
+11 |
% |
CIS |
|
30 |
|
26 |
|
+15 |
% |
1,174 |
|
1,160 |
|
1,225 |
|
-4 |
% |
Total production |
|
1,175 |
|
1,224 |
|
-4 |
% |
331 |
|
323 |
|
316 |
|
+5 |
% |
Includes equity affiliates |
|
326 |
|
309 |
|
+6 |
% |
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
Gas production by region (Mcf/d) |
|
9M13 |
|
9M12 |
|
9M13 |
|
1,185 |
|
1,285 |
|
1,011 |
|
+17 |
% |
Europe |
|
1,228 |
|
1,255 |
|
-2 |
% |
654 |
|
741 |
|
763 |
|
-14 |
% |
Africa |
|
701 |
|
722 |
|
-3 |
% |
1,212 |
|
1,105 |
|
971 |
|
+25 |
% |
Middle East |
|
1,161 |
|
1,010 |
|
+15 |
% |
269 |
|
242 |
|
260 |
|
+3 |
% |
North America |
|
254 |
|
252 |
|
+1 |
% |
667 |
|
649 |
|
650 |
|
+3 |
% |
South America |
|
651 |
|
691 |
|
-6 |
% |
1,151 |
|
1,121 |
|
1,135 |
|
+1 |
% |
Asia-Pacific |
|
1,141 |
|
1,076 |
|
+6 |
% |
1,029 |
|
1,026 |
|
890 |
|
+16 |
% |
CIS |
|
1,022 |
|
869 |
|
+18 |
% |
6,167 |
|
6,169 |
|
5,680 |
|
+9 |
% |
Total production |
|
6,158 |
|
5,875 |
|
+5 |
% |
2,002 |
|
1,900 |
|
1,618 |
|
+24 |
% |
Includes equity affiliates |
|
1,942 |
|
1,612 |
|
+20 |
% |
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
Liquefied natural gas |
|
9M13 |
|
9M12 |
|
9M13 |
|
3.01 |
|
2.86 |
|
2.94 |
|
+2 |
% |
LNG sales* (Mt) |
|
8.77 |
|
8.77 |
|
|
|
* Sales, Group share, excluding trading; 2012 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2012 SEC coefficient.
· Downstream (Refining & Chemicals and Marketing & Services)
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
Refined product sales by region (kb/d)* |
|
9M13 |
|
9M12 |
|
9M13 |
|
2,004 |
|
1,973 |
|
1,979 |
|
+1 |
% |
Europe |
|
1,985 |
|
2,030 |
|
-2 |
% |
430 |
|
442 |
|
411 |
|
+5 |
% |
Africa |
|
440 |
|
401 |
|
+10 |
% |
490 |
|
544 |
|
535 |
|
-8 |
% |
Americas |
|
505 |
|
495 |
|
+2 |
% |
397 |
|
520 |
|
399 |
|
-1 |
% |
Rest of world |
|
474 |
|
497 |
|
-5 |
% |
3,321 |
|
3,479 |
|
3,324 |
|
|
|
Total consolidated sales |
|
3,404 |
|
3,423 |
|
-1 |
% |
496 |
|
534 |
|
539 |
|
-8 |
% |
Includes bulk sales |
|
517 |
|
527 |
|
-2 |
% |
1,082 |
|
1,162 |
|
1,080 |
|
|
|
Includes trading |
|
1,140 |
|
1,184 |
|
-4 |
% |
* Includes share of TotalErg.
Investments - Divestments
3Q13 |
|
2Q13 |
|
3Q12 |
|
3Q13 |
|
in millions of euros |
|
9M13 |
|
9M12 |
|
9M13 |
|
4,964 |
|
4,939 |
|
4,903 |
|
+1 |
% |
Investments excluding acquisitions* |
|
14,757 |
|
13,156 |
|
+12 |
% |
328 |
|
397 |
|
303 |
|
+8 |
% |
· Capitalized exploration |
|
1,086 |
|
972 |
|
+12 |
% |
176 |
|
9 |
|
455 |
|
-61 |
% |
· Change in non-current loans** |
|
462 |
|
845 |
|
-45 |
% |
549 |
|
500 |
|
294 |
|
+87 |
% |
Acquisitions |
|
1,983 |
|
2,564 |
|
-23 |
% |
5,513 |
|
5,439 |
|
5,197 |
|
+6 |
% |
Investments including acquisitions* |
|
16,740 |
|
15,720 |
|
+6 |
% |
1,849 |
|
1,061 |
|
1,416 |
|
+31 |
% |
Asset sales |
|
3,330 |
|
3,705 |
|
-10 |
% |
3,664 |
|
4,378 |
|
3,781 |
|
-3 |
% |
Net investments** |
|
13,410 |
|
12,015 |
|
+12 |
% |
* Includes changes in non-current loans.
** Includes net investments in equity affiliates and non-consolidated companies + net financing for employee-related stock purchase plans.
Net-debt-to-equity ratio
in millions of euros |
|
9/30/2013 |
|
6/30/2013 |
|
9/30/2012 |
|
Current borrowings |
|
8,209 |
|
10,030 |
|
10,647 |
|
Net current financial assets |
|
(297 |
) |
(465 |
) |
(1,493 |
) |
Net financial assets classified as held for sale |
|
(42 |
) |
775 |
|
|
|
Non-current financial debt |
|
25,128 |
|
22,595 |
|
24,606 |
|
Hedging instruments of non-current debt |
|
(1,362 |
) |
(1,306 |
) |
(1,796 |
) |
Cash and cash equivalents |
|
(14,891 |
) |
(11,558 |
) |
(16,833 |
) |
Net debt |
|
16,745 |
|
20,071 |
|
15,131 |
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
72,484 |
|
72,461 |
|
71,338 |
|
Estimated dividend payable |
|
(1,313 |
) |
(1,313 |
) |
(1,291 |
) |
Non-controlling interests |
|
1,724 |
|
1,701 |
|
1,275 |
|
Equity |
|
72,895 |
|
72,849 |
|
71,322 |
|
|
|
|
|
|
|
|
|
Net-debt-to-equity ratio |
|
23.0 |
% |
27.6 |
% |
21.2 |
% |
Return on average capital employed
· Twelve months ended September 30, 2013
in millions of euros |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Adjusted net operating income |
|
9,806 |
|
1,450 |
|
1,192 |
|
Capital employed at 9/30/2012* |
|
62,707 |
|
15,857 |
|
7,600 |
|
Capital employed at 9/30/2013* |
|
67,487 |
|
15,443 |
|
6,833 |
|
ROACE |
|
15.1 |
% |
9.3 |
% |
16.5 |
% |
· Twelve months ended June 30, 2013
in millions of euros |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Adjusted net operating income |
|
10,374 |
|
1,687 |
|
1,107 |
|
Capital employed at 06/30/2012* |
|
58,668 |
|
16,014 |
|
8,003 |
|
Capital employed at 06/30/2013* |
|
69,644 |
|
15,998 |
|
7,511 |
|
ROACE |
|
16.2 |
% |
10.5 |
% |
14.3 |
% |
· Full-year 2012
in millions of euros |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Adjusted net operating income |
|
11,145 |
|
1,376 |
|
830 |
|
Capital employed at 12/31/2011* |
|
56,910 |
|
15,454 |
|
6,852 |
|
Capital employed at 12/31/2012* |
|
63,862 |
|
15,726 |
|
6,986 |
|
ROACE |
|
18.5 |
% |
8.8 |
% |
12.0 |
% |
* At replacement cost (excluding after-tax inventory effect).
MAIN INDICATORS
Chart updated around the middle of the month following the end of each quarter.
|
|
/ $ |
|
European |
|
Brent ($/b) |
|
Average liquids |
|
Average gas |
|
Third quarter 2013 |
|
1.32 |
|
10.6 |
|
110.3 |
|
107.2 |
|
7.18 |
|
Second quarter 2013 |
|
1.31 |
|
24.1 |
|
102.4 |
|
96.6 |
|
6.62 |
|
First quarter 2013 |
|
1.32 |
|
26.9 |
|
112.6 |
|
106.7 |
|
7.31 |
|
Fourth quarter 2012 |
|
1.30 |
|
33.9 |
|
110.1 |
|
106.4 |
|
6.94 |
|
Third quarter 2012 |
|
1.25 |
|
51.0 |
|
109.5 |
|
107.6 |
|
6.00 |
|
* European Refining Margin Indicator (ERMI) is an indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by the Group in any period because of the Groups particular refinery configurations, product mix effects or other company-specific operating conditions.
** 1 $/t = 0.136 $/b.
*** Consolidated subsidiaries, excluding fixed margin contracts.
Disclaimer: data is based on TOTALs reporting, is not audited and is subject to change.
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
|
3rd quarter |
|
2nd quarter |
|
3rd quarter |
|
Sales |
|
46,686 |
|
46,973 |
|
49,890 |
|
Excise taxes |
|
(4,658 |
) |
(4,469 |
) |
(4,411 |
) |
Revenues from sales |
|
42,028 |
|
42,504 |
|
45,479 |
|
|
|
|
|
|
|
|
|
Purchases, net of inventory variation |
|
(29,368 |
) |
(30,344 |
) |
(30,609 |
) |
Other operating expenses |
|
(5,070 |
) |
(5,635 |
) |
(5,500 |
) |
Exploration costs |
|
(568 |
) |
(272 |
) |
(317 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,778 |
) |
(1,941 |
) |
(3,246 |
) |
Other income |
|
1,144 |
|
352 |
|
474 |
|
Other expense |
|
(161 |
) |
(94 |
) |
(129 |
) |
|
|
|
|
|
|
|
|
Financial interest on debt |
|
(159 |
) |
(182 |
) |
(154 |
) |
Financial income from marketable securities & cash equivalents |
|
9 |
|
14 |
|
8 |
|
Cost of net debt |
|
(150 |
) |
(168 |
) |
(146 |
) |
|
|
|
|
|
|
|
|
Other financial income |
|
138 |
|
157 |
|
141 |
|
Other financial expense |
|
(153 |
) |
(137 |
) |
(135 |
) |
|
|
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
625 |
|
609 |
|
641 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
(2,863 |
) |
(2,456 |
) |
(3,499 |
) |
Consolidated net income |
|
2,824 |
|
2,575 |
|
3,154 |
|
Group share |
|
2,761 |
|
2,537 |
|
3,082 |
|
Non-controlling interests |
|
63 |
|
38 |
|
72 |
|
Earnings per share () |
|
1.22 |
|
1.12 |
|
1.37 |
|
Fully-diluted earnings per share () |
|
1.21 |
|
1.12 |
|
1.36 |
|
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
|
3rd quarter |
|
2nd quarter |
|
3rd quarter |
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
2,824 |
|
2,575 |
|
3,154 |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses |
|
33 |
|
(188 |
) |
(51 |
) |
Tax effect |
|
(8 |
) |
72 |
|
16 |
|
Items not potentially reclassifiable to profit and loss |
|
25 |
|
(116 |
) |
(35 |
) |
Currency translation adjustment |
|
(1,086 |
) |
(1,111 |
) |
(1,004 |
) |
Available for sale financial assets |
|
5 |
|
6 |
|
(183 |
) |
Cash flow hedge |
|
28 |
|
61 |
|
33 |
|
Share of other comprehensive income of equity affiliates, net amount |
|
(271 |
) |
(430 |
) |
86 |
|
Other |
|
(4 |
) |
|
|
|
|
Tax effect |
|
(11 |
) |
(25 |
) |
37 |
|
Items potentially reclassifiable to profit and loss |
|
(1,339 |
) |
(1,499 |
) |
(1,031 |
) |
Total other comprehensive income (net amount) |
|
(1,314 |
) |
(1,615 |
) |
(1,066 |
) |
|
|
|
|
|
|
|
|
Comprehensive income |
|
1,510 |
|
960 |
|
2,088 |
|
- Group share |
|
1,504 |
|
978 |
|
2,048 |
|
- Non-controlling interests |
|
6 |
|
(18 |
) |
40 |
|
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
|
9 months |
|
9 months |
|
Sales |
|
141,789 |
|
150,193 |
|
Excise taxes |
|
(13,323 |
) |
(13,363 |
) |
Revenues from sales |
|
128,466 |
|
136,830 |
|
|
|
|
|
|
|
Purchases, net of inventory variation |
|
(90,242 |
) |
(94,944 |
) |
Other operating expenses |
|
(16,057 |
) |
(16,507 |
) |
Exploration costs |
|
(1,147 |
) |
(942 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(6,879 |
) |
(7,112 |
) |
Other income |
|
1,527 |
|
988 |
|
Other expense |
|
(1,787 |
) |
(676 |
) |
|
|
|
|
|
|
Financial interest on debt |
|
(510 |
) |
(511 |
) |
Financial income from marketable securities & cash equivalents |
|
45 |
|
67 |
|
Cost of net debt |
|
(465 |
) |
(444 |
) |
|
|
|
|
|
|
Other financial income |
|
398 |
|
435 |
|
Other financial expense |
|
(418 |
) |
(389 |
) |
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
1,952 |
|
1,618 |
|
|
|
|
|
|
|
Income taxes |
|
(8,361 |
) |
(10,478 |
) |
Consolidated net income |
|
6,987 |
|
8,379 |
|
Group share |
|
6,835 |
|
8,268 |
|
Non-controlling interests |
|
152 |
|
111 |
|
Earnings per share () |
|
3.02 |
|
3.67 |
|
Fully-diluted earnings per share () |
|
3.01 |
|
3.65 |
|
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
|
9 months |
|
9 months |
|
|
|
|
|
|
|
Consolidated net income |
|
6,987 |
|
8,379 |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses |
|
14 |
|
(474 |
) |
Tax effect |
|
(2 |
) |
172 |
|
Items not potentially reclassifiable to profit and loss |
|
12 |
|
(302 |
) |
Currency translation adjustment |
|
(1,246 |
) |
285 |
|
Available for sale financial assets |
|
7 |
|
(342 |
) |
Cash flow hedge |
|
100 |
|
36 |
|
Share of other comprehensive income of equity affiliates, net amount |
|
(607 |
) |
191 |
|
Other |
|
(12 |
) |
(14 |
) |
Tax effect |
|
(38 |
) |
72 |
|
Items potentially reclassifiable to profit and loss |
|
(1,796 |
) |
228 |
|
Total other comprehensive income (net amount) |
|
(1,784 |
) |
(74 |
) |
|
|
|
|
|
|
Comprehensive income |
|
5,203 |
|
8,305 |
|
- Group share |
|
5,131 |
|
8,203 |
|
- Non-controlling interests |
|
72 |
|
102 |
|
CONSOLIDATED BALANCE SHEET
TOTAL
(M) |
|
September 30, |
|
June 30, 2013 |
|
December 31, |
|
September 30, |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
Intangible assets, net |
|
12,595 |
|
13,322 |
|
12,858 |
|
12,964 |
|
Property, plant and equipment, net |
|
71,924 |
|
71,397 |
|
69,332 |
|
70,583 |
|
Equity affiliates : investments and loans |
|
14,624 |
|
14,555 |
|
13,759 |
|
14,413 |
|
Other investments |
|
1,315 |
|
1,210 |
|
1,190 |
|
1,181 |
|
Hedging instruments of non-current financial debt |
|
1,362 |
|
1,306 |
|
1,626 |
|
1,796 |
|
Deferred income taxes |
|
2,756 |
|
2,842 |
|
2,279 |
|
2,003 |
|
Other non-current assets |
|
2,910 |
|
2,914 |
|
2,663 |
|
2,669 |
|
Total non-current assets |
|
107,486 |
|
107,546 |
|
103,707 |
|
105,609 |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Inventories, net |
|
15,897 |
|
15,441 |
|
17,397 |
|
17,266 |
|
Accounts receivable, net |
|
18,426 |
|
19,563 |
|
19,206 |
|
20,331 |
|
Other current assets |
|
11,244 |
|
11,353 |
|
10,086 |
|
11,377 |
|
Current financial assets |
|
339 |
|
510 |
|
1,562 |
|
1,726 |
|
Cash and cash equivalents |
|
14,891 |
|
11,558 |
|
15,469 |
|
16,833 |
|
Assets classified as held for sale |
|
2,304 |
|
3,902 |
|
3,797 |
|
|
|
Total current assets |
|
63,101 |
|
62,327 |
|
67,517 |
|
67,533 |
|
Total assets |
|
170,587 |
|
169,873 |
|
171,224 |
|
173,142 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
|
Common shares |
|
5,943 |
|
5,942 |
|
5,915 |
|
5,915 |
|
Paid-in surplus and retained earnings |
|
73,144 |
|
71,785 |
|
70,116 |
|
69,280 |
|
Currency translation adjustment |
|
(3,224 |
) |
(1,924 |
) |
(1,504 |
) |
(515 |
) |
Treasury shares |
|
(3,379 |
) |
(3,342 |
) |
(3,342 |
) |
(3,342 |
) |
|
|
|
|
|
|
|
|
|
|
Total shareholders equity - Group Share |
|
72,484 |
|
72,461 |
|
71,185 |
|
71,338 |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
1,724 |
|
1,701 |
|
1,280 |
|
1,275 |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
74,208 |
|
74,162 |
|
72,465 |
|
72,613 |
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
12,917 |
|
12,800 |
|
12,132 |
|
12,649 |
|
Employee benefits |
|
3,554 |
|
3,633 |
|
3,744 |
|
3,413 |
|
Provisions and other non-current liabilities |
|
10,949 |
|
11,059 |
|
11,585 |
|
11,170 |
|
Non-current financial debt |
|
25,128 |
|
22,595 |
|
22,274 |
|
24,606 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
52,548 |
|
50,087 |
|
49,735 |
|
51,838 |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
20,594 |
|
20,168 |
|
21,648 |
|
20,869 |
|
Other creditors and accrued liabilities |
|
14,347 |
|
13,901 |
|
14,698 |
|
16,942 |
|
Current borrowings |
|
8,209 |
|
10,030 |
|
11,016 |
|
10,647 |
|
Other current financial liabilities |
|
42 |
|
45 |
|
176 |
|
233 |
|
Liabilities directly associated with the assets classified as held for sale |
|
639 |
|
1,480 |
|
1,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
43,831 |
|
45,624 |
|
49,024 |
|
48,691 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
170,587 |
|
169,873 |
|
171,224 |
|
173,142 |
|
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
|
3rd quarter |
|
2nd quarter |
|
3rd quarter |
|
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
2,824 |
|
2,575 |
|
3,154 |
|
Depreciation, depletion and amortization |
|
3,169 |
|
2,114 |
|
3,413 |
|
Non-current liabilities, valuation allowances and deferred taxes |
|
585 |
|
(101 |
) |
786 |
|
Impact of coverage of pension benefit plans |
|
|
|
|
|
|
|
(Gains) losses on disposals of assets |
|
(1,073 |
) |
(271 |
) |
(419 |
) |
Undistributed affiliates equity earnings |
|
(228 |
) |
70 |
|
(135 |
) |
(Increase) decrease in working capital |
|
1,576 |
|
(732 |
) |
(1,661 |
) |
Other changes, net |
|
101 |
|
51 |
|
25 |
|
Cash flow from operating activities |
|
6,954 |
|
3,706 |
|
5,163 |
|
|
|
|
|
|
|
|
|
CASH FLOW USED IN INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets and property, plant and equipment additions |
|
(5,136 |
) |
(5,232 |
) |
(4,512 |
) |
Acquisitions of subsidiaries, net of cash acquired |
|
|
|
|
|
(74 |
) |
Investments in equity affiliates and other securities |
|
(201 |
) |
(198 |
) |
(156 |
) |
Increase in non-current loans |
|
(515 |
) |
(282 |
) |
(674 |
) |
Total expenditures |
|
(5,852 |
) |
(5,712 |
) |
(5,416 |
) |
Proceeds from disposals of intangible assets and property, plant and equipment |
|
39 |
|
844 |
|
274 |
|
Proceeds from disposals of subsidiaries, net of cash sold |
|
1,793 |
|
200 |
|
1 |
|
Proceeds from disposals of non-current investments |
|
17 |
|
17 |
|
1,141 |
|
Repayment of non-current loans |
|
339 |
|
273 |
|
219 |
|
Total divestments |
|
2,188 |
|
1,334 |
|
1,635 |
|
Cash flow used in investing activities |
|
(3,664 |
) |
(4,378 |
) |
(3,781 |
) |
|
|
|
|
|
|
|
|
CASH FLOW USED IN FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance (repayment) of shares: |
|
|
|
|
|
|
|
- Parent company shareholders |
|
17 |
|
329 |
|
1 |
|
- Treasury shares |
|
(179 |
) |
|
|
(68 |
) |
Dividends paid: |
|
|
|
|
|
|
|
- Parent company shareholders |
|
(1,340 |
) |
(1,356 |
) |
(1,282 |
) |
- Non-controlling interests |
|
(9 |
) |
(70 |
) |
(2 |
) |
Other transactions with non-controlling interests |
|
36 |
|
(3 |
) |
|
|
Net issuance (repayment) of non-current debt |
|
3,382 |
|
575 |
|
2,062 |
|
Increase (decrease) in current borrowings |
|
(1,855 |
) |
(698 |
) |
(98 |
) |
Increase (decrease) in current financial assets and liabilities |
|
48 |
|
9 |
|
(31 |
) |
Cash flow used in financing activities |
|
100 |
|
(1,214 |
) |
582 |
|
Net increase (decrease) in cash and cash equivalents |
|
3,390 |
|
(1,886 |
) |
1,964 |
|
Effect of exchange rates |
|
(57 |
) |
29 |
|
(129 |
) |
Cash and cash equivalents at the beginning of the period |
|
11,558 |
|
13,415 |
|
14,998 |
|
Cash and cash equivalents at the end of the period |
|
14,891 |
|
11,558 |
|
16,833 |
|
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
|
9 months |
|
9 months |
|
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
6,987 |
|
8,379 |
|
Depreciation, depletion and amortization |
|
7,589 |
|
7,680 |
|
Non-current liabilities, valuation allowances and deferred taxes |
|
561 |
|
1,112 |
|
Impact of coverage of pension benefit plans |
|
|
|
(362 |
) |
(Gains) losses on disposals of assets |
|
74 |
|
(865 |
) |
Undistributed affiliates equity earnings |
|
(511 |
) |
92 |
|
(Increase) decrease in working capital |
|
(559 |
) |
448 |
|
Other changes, net |
|
237 |
|
113 |
|
Cash flow from operating activities |
|
14,378 |
|
16,597 |
|
|
|
|
|
|
|
CASH FLOW USED IN INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Intangible assets and property, plant and equipment additions |
|
(15,281 |
) |
(13,867 |
) |
Acquisitions of subsidiaries, net of cash acquired |
|
(16 |
) |
(199 |
) |
Investments in equity affiliates and other securities |
|
(981 |
) |
(809 |
) |
Increase in non-current loans |
|
(1,270 |
) |
(1,445 |
) |
Total expenditures |
|
(17,548 |
) |
(16,320 |
) |
Proceeds from disposals of intangible assets and property, plant and equipment |
|
1,303 |
|
936 |
|
Proceeds from disposals of subsidiaries, net of cash sold |
|
1,993 |
|
35 |
|
Proceeds from disposals of non-current investments |
|
34 |
|
2,734 |
|
Repayment of non-current loans |
|
808 |
|
600 |
|
Total divestments |
|
4,138 |
|
4,305 |
|
Cash flow used in investing activities |
|
(13,410 |
) |
(12,015 |
) |
|
|
|
|
|
|
CASH FLOW USED IN FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Issuance (repayment) of shares: |
|
|
|
|
|
- Parent company shareholders |
|
346 |
|
32 |
|
- Treasury shares |
|
(179 |
) |
(68 |
) |
Dividends paid: |
|
|
|
|
|
- Parent company shareholders |
|
(4,029 |
) |
(3,852 |
) |
- Non controlling interests |
|
(81 |
) |
(100 |
) |
Other transactions with non-controlling interests |
|
390 |
|
1 |
|
Net issuance (repayment) of non-current debt |
|
6,807 |
|
5,135 |
|
Increase (decrease) in current borrowings |
|
(5,785 |
) |
(1,892 |
) |
Increase (decrease) in current financial assets and liabilities |
|
949 |
|
(970 |
) |
Cash flow used in financing activities |
|
(1,582 |
) |
(1,714 |
) |
Net increase (decrease) in cash and cash equivalents |
|
(614 |
) |
2,868 |
|
Effect of exchange rates |
|
36 |
|
(60 |
) |
Cash and cash equivalents at the beginning of the period |
|
15,469 |
|
14,025 |
|
Cash and cash equivalents at the end of the period |
|
14,891 |
|
16,833 |
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
TOTAL
|
|
Common shares issued |
|
Paid-in |
|
Currency |
|
Treasury shares |
|
Shareholders |
|
Non- |
|
Total |
| ||||
(M) |
|
Number |
|
Amount |
|
earnings |
|
adjustment |
|
Number |
|
Amount |
|
Share |
|
interests |
|
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1, 2012 |
|
2,363,767,313 |
|
5,909 |
|
65,430 |
|
(1,004 |
) |
(109,554,173 |
) |
(3,390 |
) |
66,945 |
|
1,352 |
|
68,297 |
|
Net income of the first nine months |
|
|
|
|
|
8,268 |
|
|
|
|
|
|
|
8,268 |
|
111 |
|
8,379 |
|
Other comprehensive Income |
|
|
|
|
|
(548 |
) |
483 |
|
|
|
|
|
(65 |
) |
(9 |
) |
(74 |
) |
Comprehensive Income |
|
|
|
|
|
7,720 |
|
483 |
|
|
|
|
|
8,203 |
|
102 |
|
8,305 |
|
Dividend |
|
|
|
|
|
(3,913 |
) |
|
|
|
|
|
|
(3,913 |
) |
(100 |
) |
(4,013 |
) |
Issuance of common shares |
|
2,151,933 |
|
6 |
|
26 |
|
|
|
|
|
|
|
32 |
|
|
|
32 |
|
Purchase of treasury shares |
|
|
|
|
|
|
|
|
|
(1,800,000 |
) |
(68 |
) |
(68 |
) |
|
|
(68 |
) |
Sale of treasury shares (1) |
|
|
|
|
|
(116 |
) |
|
|
2,960,542 |
|
116 |
|
|
|
|
|
|
|
Share-based payments |
|
|
|
|
|
114 |
|
|
|
|
|
|
|
114 |
|
|
|
114 |
|
Share cancellation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operations with non-controlling interests |
|
|
|
|
|
13 |
|
6 |
|
|
|
|
|
19 |
|
(18 |
) |
1 |
|
Other items |
|
|
|
|
|
6 |
|
|
|
|
|
|
|
6 |
|
(61 |
) |
(55 |
) |
As of Sepember 30, 2012 |
|
2,365,919,246 |
|
5,915 |
|
69,280 |
|
(515 |
) |
(108,393,631 |
) |
(3,342 |
) |
71,338 |
|
1,275 |
|
72,613 |
|
Net income of the fourth quarter |
|
|
|
|
|
2,341 |
|
|
|
|
|
|
|
2,341 |
|
36 |
|
2,377 |
|
Other comprehensive Income |
|
|
|
|
|
(221 |
) |
(989 |
) |
|
|
|
|
(1,210 |
) |
(31 |
) |
(1,241 |
) |
Comprehensive Income |
|
|
|
|
|
2,120 |
|
(989 |
) |
|
|
|
|
1,131 |
|
5 |
|
1,136 |
|
Dividend |
|
|
|
|
|
(1,324 |
) |
|
|
|
|
|
|
(1,324 |
) |
(4 |
) |
(1,328 |
) |
Issuance of common shares |
|
13,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of treasury shares (1) |
|
|
|
|
|
|
|
|
|
1,992 |
|
|
|
|
|
|
|
|
|
Share-based payments |
|
|
|
|
|
32 |
|
|
|
|
|
|
|
32 |
|
|
|
32 |
|
Share cancellation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operations with non-controlling interests |
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
2 |
|
|
|
Other items |
|
|
|
|
|
10 |
|
|
|
|
|
|
|
10 |
|
2 |
|
12 |
|
As of December 31, 2012 |
|
2,365,933,146 |
|
5,915 |
|
70,116 |
|
(1,504 |
) |
(108,391,639 |
) |
(3,342 |
) |
71,185 |
|
1,280 |
|
72,465 |
|
Net income of the first nine months |
|
|
|
|
|
6,835 |
|
|
|
|
|
|
|
6,835 |
|
152 |
|
6,987 |
|
Other comprehensive Income |
|
|
|
|
|
17 |
|
(1,721 |
) |
|
|
|
|
(1,704 |
) |
(80 |
) |
(1,784 |
) |
Comprehensive Income |
|
|
|
|
|
6,852 |
|
(1,721 |
) |
|
|
|
|
5,131 |
|
72 |
|
5,203 |
|
Dividend |
|
|
|
|
|
(4,024 |
) |
|
|
|
|
|
|
(4,024 |
) |
(81 |
) |
(4,105 |
) |
Issuance of common shares |
|
11,263,033 |
|
28 |
|
318 |
|
|
|
|
|
|
|
346 |
|
|
|
346 |
|
Purchase of treasury shares |
|
|
|
|
|
|
|
|
|
(4,414,200 |
) |
(179 |
) |
(179 |
) |
|
|
(179 |
) |
Sale of treasury shares (1) |
|
|
|
|
|
(142 |
) |
|
|
3,590,641 |
|
142 |
|
|
|
|
|
|
|
Share-based payments |
|
|
|
|
|
112 |
|
|
|
|
|
|
|
112 |
|
|
|
112 |
|
Share cancellation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operations with non-controlling interests |
|
|
|
|
|
(91 |
) |
1 |
|
|
|
|
|
(90 |
) |
446 |
|
356 |
|
Other items |
|
|
|
|
|
3 |
|
|
|
|
|
|
|
3 |
|
7 |
|
10 |
|
As of September 30, 2013 |
|
2,377,196,179 |
|
5,943 |
|
73,144 |
|
(3,224 |
) |
(109,215,198 |
) |
(3,379 |
) |
72,484 |
|
1,724 |
|
74,208 |
|
(1) Treasury shares related to the restricted stock grants.
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,479 |
|
21,260 |
|
21,074 |
|
(127 |
) |
|
|
46,686 |
|
Intersegment sales |
|
6,974 |
|
10,068 |
|
431 |
|
13 |
|
(17,486 |
) |
|
|
Excise taxes |
|
|
|
(975 |
) |
(3,683 |
) |
|
|
|
|
(4,658 |
) |
Revenues from sales |
|
11,453 |
|
30,353 |
|
17,822 |
|
(114 |
) |
(17,486 |
) |
42,028 |
|
Operating expenses |
|
(5,364 |
) |
(29,925 |
) |
(17,247 |
) |
44 |
|
17,486 |
|
(35,006 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,349 |
) |
(285 |
) |
(136 |
) |
(8 |
) |
|
|
(2,778 |
) |
Operating income |
|
3,740 |
|
143 |
|
439 |
|
(78 |
) |
|
|
4,244 |
|
Equity in net income (loss) of affiliates and other items |
|
1,506 |
|
75 |
|
64 |
|
(52 |
) |
|
|
1,593 |
|
Tax on net operating income |
|
(2,564 |
) |
(174 |
) |
(113 |
) |
(32 |
) |
|
|
(2,883 |
) |
Net operating income |
|
2,682 |
|
44 |
|
390 |
|
(162 |
) |
|
|
2,954 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(130 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(63 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
2,761 |
|
3rd quarter 2013 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(9 |
) |
|
|
|
|
|
|
|
|
(9 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(9 |
) |
|
|
|
|
|
|
|
|
(9 |
) |
Operating expenses |
|
(86 |
) |
(114 |
) |
41 |
|
|
|
|
|
(159 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(651 |
) |
(5 |
) |
|
|
|
|
|
|
(656 |
) |
Operating income (b) |
|
(746 |
) |
(119 |
) |
41 |
|
|
|
|
|
(824 |
) |
Equity in net income (loss) of affiliates and other items |
|
950 |
|
(5 |
) |
29 |
|
(30 |
) |
|
|
944 |
|
Tax on net operating income |
|
149 |
|
(162 |
) |
(10 |
) |
(34 |
) |
|
|
(57 |
) |
Net operating income (b) |
|
353 |
|
(286 |
) |
60 |
|
(64 |
) |
|
|
63 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(18 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
45 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On operating income |
|
|
|
(114 |
) |
71 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
(63 |
) |
49 |
|
|
|
|
|
|
|
3rd quarter 2013 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,488 |
|
21,260 |
|
21,074 |
|
(127 |
) |
|
|
46,695 |
|
Intersegment sales |
|
6,974 |
|
10,068 |
|
431 |
|
13 |
|
(17,486 |
) |
|
|
Excise taxes |
|
|
|
(975 |
) |
(3,683 |
) |
|
|
|
|
(4,658 |
) |
Revenues from sales |
|
11,462 |
|
30,353 |
|
17,822 |
|
(114 |
) |
(17,486 |
) |
42,037 |
|
Operating expenses |
|
(5,278 |
) |
(29,811 |
) |
(17,288 |
) |
44 |
|
17,486 |
|
(34,847 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,698 |
) |
(280 |
) |
(136 |
) |
(8 |
) |
|
|
(2,122 |
) |
Adjusted operating income |
|
4,486 |
|
262 |
|
398 |
|
(78 |
) |
|
|
5,068 |
|
Equity in net income (loss) of affiliates and other items |
|
556 |
|
80 |
|
35 |
|
(22 |
) |
|
|
649 |
|
Tax on net operating income |
|
(2,713 |
) |
(12 |
) |
(103 |
) |
2 |
|
|
|
(2,826 |
) |
Adjusted net operating income |
|
2,329 |
|
330 |
|
330 |
|
(98 |
) |
|
|
2,891 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(130 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(45 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
2,716 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
1.19 |
|
(a) Except for earnings per share.
3rd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
5,064 |
|
415 |
|
326 |
|
47 |
|
|
|
5,852 |
|
Total divestments |
|
2,114 |
|
8 |
|
44 |
|
22 |
|
|
|
2,188 |
|
Cash flow from operating activities |
|
4,765 |
|
840 |
|
1,287 |
|
62 |
|
|
|
6,954 |
|
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,781 |
|
21,560 |
|
20,561 |
|
71 |
|
|
|
46,973 |
|
Intersegment sales |
|
6,519 |
|
9,807 |
|
806 |
|
27 |
|
(17,159 |
) |
|
|
Excise taxes |
|
|
|
(835 |
) |
(3,634 |
) |
|
|
|
|
(4,469 |
) |
Revenues from sales |
|
11,300 |
|
30,532 |
|
17,733 |
|
98 |
|
(17,159 |
) |
42,504 |
|
Operating expenses |
|
(5,512 |
) |
(30,413 |
) |
(17,273 |
) |
(212 |
) |
17,159 |
|
(36,251 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,512 |
) |
(298 |
) |
(123 |
) |
(8 |
) |
|
|
(1,941 |
) |
Operating income |
|
4,276 |
|
(179 |
) |
337 |
|
(122 |
) |
|
|
4,312 |
|
Equity in net income (loss) of affiliates and other items |
|
774 |
|
52 |
|
38 |
|
23 |
|
|
|
887 |
|
Tax on net operating income |
|
(2,421 |
) |
80 |
|
(100 |
) |
(44 |
) |
|
|
(2,485 |
) |
Net operating income |
|
2,629 |
|
(47 |
) |
275 |
|
(143 |
) |
|
|
2,714 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(139 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(38 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
2,537 |
|
2nd quarter 2013 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(32 |
) |
|
|
|
|
|
|
|
|
(32 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(32 |
) |
|
|
|
|
|
|
|
|
(32 |
) |
Operating expenses |
|
|
|
(536 |
) |
(82 |
) |
|
|
|
|
(618 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (b) |
|
(32 |
) |
(536 |
) |
(82 |
) |
|
|
|
|
(650 |
) |
Equity in net income (loss) of affiliates and other items |
|
252 |
|
(32 |
) |
1 |
|
|
|
|
|
221 |
|
Tax on net operating income |
|
84 |
|
151 |
|
26 |
|
|
|
|
|
261 |
|
Net operating income (b) |
|
304 |
|
(417 |
) |
(55 |
) |
|
|
|
|
(168 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
6 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
(162 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On operating income |
|
|
|
(499 |
) |
(82 |
) |
|
|
|
|
|
|
On net operating income |
|
|
|
(351 |
) |
(55 |
) |
|
|
|
|
|
|
2nd quarter 2013 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,813 |
|
21,560 |
|
20,561 |
|
71 |
|
|
|
47,005 |
|
Intersegment sales |
|
6,519 |
|
9,807 |
|
806 |
|
27 |
|
(17,159 |
) |
|
|
Excise taxes |
|
|
|
(835 |
) |
(3,634 |
) |
|
|
|
|
(4,469 |
) |
Revenues from sales |
|
11,332 |
|
30,532 |
|
17,733 |
|
98 |
|
(17,159 |
) |
42,536 |
|
Operating expenses |
|
(5,512 |
) |
(29,877 |
) |
(17,191 |
) |
(212 |
) |
17,159 |
|
(35,633 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,512 |
) |
(298 |
) |
(123 |
) |
(8 |
) |
|
|
(1,941 |
) |
Adjusted operating income |
|
4,308 |
|
357 |
|
419 |
|
(122 |
) |
|
|
4,962 |
|
Equity in net income (loss) of affiliates and other items |
|
522 |
|
84 |
|
37 |
|
23 |
|
|
|
666 |
|
Tax on net operating income |
|
(2,505 |
) |
(71 |
) |
(126 |
) |
(44 |
) |
|
|
(2,746 |
) |
Adjusted net operating income |
|
2,325 |
|
370 |
|
330 |
|
(143 |
) |
|
|
2,882 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(139 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(44 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
2,699 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
1.19 |
|
(a) Except for earnings per share.
2nd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
5,056 |
|
382 |
|
242 |
|
32 |
|
|
|
5,712 |
|
Total divestments |
|
1,112 |
|
208 |
|
12 |
|
2 |
|
|
|
1,334 |
|
Cash flow from operating activities |
|
2,128 |
|
1,303 |
|
414 |
|
(139 |
) |
|
|
3,706 |
|
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
5,001 |
|
23,260 |
|
21,574 |
|
55 |
|
|
|
49,890 |
|
Intersegment sales |
|
7,455 |
|
11,168 |
|
154 |
|
47 |
|
(18,824 |
) |
|
|
Excise taxes |
|
|
|
(956 |
) |
(3,455 |
) |
|
|
|
|
(4,411 |
) |
Revenues from sales |
|
12,456 |
|
33,472 |
|
18,273 |
|
102 |
|
(18,824 |
) |
45,479 |
|
Operating expenses |
|
(5,265 |
) |
(31,908 |
) |
(17,835 |
) |
(242 |
) |
18,824 |
|
(36,426 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,779 |
) |
(321 |
) |
(136 |
) |
(10 |
) |
|
|
(3,246 |
) |
Operating income |
|
4,412 |
|
1,243 |
|
302 |
|
(150 |
) |
|
|
5,807 |
|
Equity in net income (loss) of affiliates and other items |
|
642 |
|
41 |
|
7 |
|
302 |
|
|
|
992 |
|
Tax on net operating income |
|
(2,969 |
) |
(351 |
) |
(80 |
) |
(120 |
) |
|
|
(3,520 |
) |
Net operating income |
|
2,085 |
|
933 |
|
229 |
|
32 |
|
|
|
3,279 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(125 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(72 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
3,082 |
|
3rd quarter 2012 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(8 |
) |
|
|
|
|
|
|
|
|
(8 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(8 |
) |
|
|
|
|
|
|
|
|
(8 |
) |
Operating expenses |
|
3 |
|
593 |
|
(42 |
) |
|
|
|
|
554 |
|
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,134 |
) |
(2 |
) |
(14 |
) |
|
|
|
|
(1,150 |
) |
Operating income (b) |
|
(1,139 |
) |
591 |
|
(56 |
) |
|
|
|
|
(604 |
) |
Equity in net income (loss) of affiliates and other items |
|
|
|
5 |
|
33 |
|
293 |
|
|
|
331 |
|
Tax on net operating income |
|
327 |
|
(230 |
) |
7 |
|
(90 |
) |
|
|
14 |
|
Net operating income (b) |
|
(812 |
) |
366 |
|
(16 |
) |
203 |
|
|
|
(259 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(23 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
(282 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On operating income |
|
|
|
627 |
|
139 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
444 |
|
94 |
|
|
|
|
|
|
|
3rd quarter 2012 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
5,009 |
|
23,260 |
|
21,574 |
|
55 |
|
|
|
49,898 |
|
Intersegment sales |
|
7,455 |
|
11,168 |
|
154 |
|
47 |
|
(18,824 |
) |
|
|
Excise taxes |
|
|
|
(956 |
) |
(3,455 |
) |
|
|
|
|
(4,411 |
) |
Revenues from sales |
|
12,464 |
|
33,472 |
|
18,273 |
|
102 |
|
(18,824 |
) |
45,487 |
|
Operating expenses |
|
(5,268 |
) |
(32,501 |
) |
(17,793 |
) |
(242 |
) |
18,824 |
|
(36,980 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,645 |
) |
(319 |
) |
(122 |
) |
(10 |
) |
|
|
(2,096 |
) |
Adjusted operating income |
|
5,551 |
|
652 |
|
358 |
|
(150 |
) |
|
|
6,411 |
|
Equity in net income (loss) of affiliates and other items |
|
642 |
|
36 |
|
(26 |
) |
9 |
|
|
|
661 |
|
Tax on net operating income |
|
(3,296 |
) |
(121 |
) |
(87 |
) |
(30 |
) |
|
|
(3,534 |
) |
Adjusted net operating income |
|
2,897 |
|
567 |
|
245 |
|
(171 |
) |
|
|
3,538 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(125 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(49 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
3,364 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
1.48 |
|
(a) Except for earnings per share.
3rd quarter 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
4,567 |
|
441 |
|
383 |
|
25 |
|
|
|
5,416 |
|
Total divestments |
|
401 |
|
55 |
|
41 |
|
1,138 |
|
|
|
1,635 |
|
Cash flow from operating activities |
|
3,457 |
|
1,036 |
|
692 |
|
(22 |
) |
|
|
5,163 |
|
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
14,712 |
|
64,438 |
|
62,634 |
|
5 |
|
|
|
141,789 |
|
Intersegment sales |
|
20,828 |
|
29,789 |
|
1,345 |
|
91 |
|
(52,053 |
) |
|
|
Excise taxes |
|
|
|
(2,640 |
) |
(10,683 |
) |
|
|
|
|
(13,323 |
) |
Revenues from sales |
|
35,540 |
|
91,587 |
|
53,296 |
|
96 |
|
(52,053 |
) |
128,466 |
|
Operating expenses |
|
(16,991 |
) |
(90,405 |
) |
(51,728 |
) |
(375 |
) |
52,053 |
|
(107,446 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,571 |
) |
(881 |
) |
(404 |
) |
(23 |
) |
|
|
(6,879 |
) |
Operating income |
|
12,978 |
|
301 |
|
1,164 |
|
(302 |
) |
|
|
14,141 |
|
Equity in net income (loss) of affiliates and other items |
|
1,434 |
|
199 |
|
70 |
|
(31 |
) |
|
|
1,672 |
|
Tax on net operating income |
|
(7,881 |
) |
(173 |
) |
(328 |
) |
(55 |
) |
|
|
(8,437 |
) |
Net operating income |
|
6,531 |
|
327 |
|
906 |
|
(388 |
) |
|
|
7,376 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(389 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(152 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
6,835 |
|
9 months 2013 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(39 |
) |
|
|
|
|
|
|
|
|
(39 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(39 |
) |
|
|
|
|
|
|
|
|
(39 |
) |
Operating expenses |
|
(86 |
) |
(719 |
) |
(62 |
) |
|
|
|
|
(867 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(651 |
) |
(9 |
) |
|
|
|
|
|
|
(660 |
) |
Operating income (b) |
|
(776 |
) |
(728 |
) |
(62 |
) |
|
|
|
|
(1,566 |
) |
Equity in net income (loss) of affiliates and other items |
|
(218 |
) |
(47 |
) |
20 |
|
(30 |
) |
|
|
(275 |
) |
Tax on net operating income |
|
405 |
|
19 |
|
23 |
|
(34 |
) |
|
|
413 |
|
Net operating income (b) |
|
(589 |
) |
(756 |
) |
(19 |
) |
(64 |
) |
|
|
(1,428 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(15 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
(1,443 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On operating income |
|
|
|
(680 |
) |
(32 |
) |
|
|
|
|
|
|
On net operating income |
|
|
|
(448 |
) |
(20 |
) |
|
|
|
|
|
|
9 months 2013 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
14,751 |
|
64,438 |
|
62,634 |
|
5 |
|
|
|
141,828 |
|
Intersegment sales |
|
20,828 |
|
29,789 |
|
1,345 |
|
91 |
|
(52,053 |
) |
|
|
Excise taxes |
|
|
|
(2,640 |
) |
(10,683 |
) |
|
|
|
|
(13,323 |
) |
Revenues from sales |
|
35,579 |
|
91,587 |
|
53,296 |
|
96 |
|
(52,053 |
) |
128,505 |
|
Operating expenses |
|
(16,905 |
) |
(89,686 |
) |
(51,666 |
) |
(375 |
) |
52,053 |
|
(106,579 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(4,920 |
) |
(872 |
) |
(404 |
) |
(23 |
) |
|
|
(6,219 |
) |
Adjusted operating income |
|
13,754 |
|
1,029 |
|
1,226 |
|
(302 |
) |
|
|
15,707 |
|
Equity in net income (loss) of affiliates and other items |
|
1,652 |
|
246 |
|
50 |
|
(1 |
) |
|
|
1,947 |
|
Tax on net operating income |
|
(8,286 |
) |
(192 |
) |
(351 |
) |
(21 |
) |
|
|
(8,850 |
) |
Adjusted net operating income |
|
7,120 |
|
1,083 |
|
925 |
|
(324 |
) |
|
|
8,804 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(389 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(137 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
8,278 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
3.65 |
|
(a) Except for earnings per share.
9 months 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
15,375 |
|
1,330 |
|
755 |
|
88 |
|
|
|
17,548 |
|
Total divestments |
|
3,769 |
|
243 |
|
94 |
|
32 |
|
|
|
4,138 |
|
Cash flow from operating activities |
|
11,043 |
|
1,855 |
|
1,608 |
|
(128 |
) |
|
|
14,378 |
|
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
16,155 |
|
68,948 |
|
64,945 |
|
145 |
|
|
|
150,193 |
|
Intersegment sales |
|
23,440 |
|
33,457 |
|
607 |
|
140 |
|
(57,644 |
) |
|
|
Excise taxes |
|
|
|
(2,634 |
) |
(10,729 |
) |
|
|
|
|
(13,363 |
) |
Revenues from sales |
|
39,595 |
|
99,771 |
|
54,823 |
|
285 |
|
(57,644 |
) |
136,830 |
|
Operating expenses |
|
(18,074 |
) |
(97,614 |
) |
(53,590 |
) |
(759 |
) |
57,644 |
|
(112,393 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,685 |
) |
(954 |
) |
(447 |
) |
(26 |
) |
|
|
(7,112 |
) |
Operating income |
|
15,836 |
|
1,203 |
|
786 |
|
(500 |
) |
|
|
17,325 |
|
Equity in net income (loss) of affiliates and other items |
|
1,633 |
|
156 |
|
(76 |
) |
263 |
|
|
|
1,976 |
|
Tax on net operating income |
|
(9,840 |
) |
(308 |
) |
(298 |
) |
(130 |
) |
|
|
(10,576 |
) |
Net operating income |
|
7,629 |
|
1,051 |
|
412 |
|
(367 |
) |
|
|
8,725 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(346 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(111 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
8,268 |
|
9 months 2012 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(22 |
) |
|
|
|
|
|
|
|
|
(22 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(22 |
) |
|
|
|
|
|
|
|
|
(22 |
) |
Operating expenses |
|
(15 |
) |
138 |
|
(127 |
) |
(88 |
) |
|
|
(92 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,134 |
) |
(2 |
) |
(60 |
) |
|
|
|
|
(1,196 |
) |
Operating income (b) |
|
(1,171 |
) |
136 |
|
(187 |
) |
(88 |
) |
|
|
(1,310 |
) |
Equity in net income (loss) of affiliates and other items |
|
|
|
(12 |
) |
4 |
|
159 |
|
|
|
151 |
|
Tax on net operating income |
|
341 |
|
(82 |
) |
32 |
|
(106 |
) |
|
|
185 |
|
Net operating income (b) |
|
(830 |
) |
42 |
|
(151 |
) |
(35 |
) |
|
|
(974 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
(967 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Of which inventory valuation effect |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On operating income |
|
|
|
172 |
|
56 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
120 |
|
35 |
|
|
|
|
|
|
|
9 months 2012 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
16,177 |
|
68,948 |
|
64,945 |
|
145 |
|
|
|
150,215 |
|
Intersegment sales |
|
23,440 |
|
33,457 |
|
607 |
|
140 |
|
(57,644 |
) |
|
|
Excise taxes |
|
|
|
(2,634 |
) |
(10,729 |
) |
|
|
|
|
(13,363 |
) |
Revenues from sales |
|
39,617 |
|
99,771 |
|
54,823 |
|
285 |
|
(57,644 |
) |
136,852 |
|
Operating expenses |
|
(18,059 |
) |
(97,752 |
) |
(53,463 |
) |
(671 |
) |
57,644 |
|
(112,301 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(4,551 |
) |
(952 |
) |
(387 |
) |
(26 |
) |
|
|
(5,916 |
) |
Adjusted operating income |
|
17,007 |
|
1,067 |
|
973 |
|
(412 |
) |
|
|
18,635 |
|
Equity in net income (loss) of affiliates and other items |
|
1,633 |
|
168 |
|
(80 |
) |
104 |
|
|
|
1,825 |
|
Tax on net operating income |
|
(10,181 |
) |
(226 |
) |
(330 |
) |
(24 |
) |
|
|
(10,761 |
) |
Adjusted net operating income |
|
8,459 |
|
1,009 |
|
563 |
|
(332 |
) |
|
|
9,699 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(346 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(118 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
9,235 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
4.08 |
|
(a) Except for earnings per share.
9 months 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
14,100 |
|
1,371 |
|
793 |
|
56 |
|
|
|
16,320 |
|
Total divestments |
|
1,383 |
|
203 |
|
106 |
|
2,613 |
|
|
|
4,305 |
|
Cash flow from operating activities |
|
14,521 |
|
1,625 |
|
108 |
|
343 |
|
|
|
16,597 |
|
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
3rd quarter 2013 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
46,695 |
|
(9 |
) |
46,686 |
|
Excise taxes |
|
(4,658 |
) |
|
|
(4,658 |
) |
Revenues from sales |
|
42,037 |
|
(9 |
) |
42,028 |
|
|
|
|
|
|
|
|
|
Purchases net of inventory variation |
|
(29,325 |
) |
(43 |
) |
(29,368 |
) |
Other operating expenses |
|
(4,954 |
) |
(116 |
) |
(5,070 |
) |
Exploration costs |
|
(568 |
) |
|
|
(568 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,122 |
) |
(656 |
) |
(2,778 |
) |
Other income |
|
139 |
|
1,005 |
|
1,144 |
|
Other expense |
|
(90 |
) |
(71 |
) |
(161 |
) |
|
|
|
|
|
|
|
|
Financial interest on debt |
|
(159 |
) |
|
|
(159 |
) |
Financial income from marketable securities & cash equivalents |
|
9 |
|
|
|
9 |
|
Cost of net debt |
|
(150 |
) |
|
|
(150 |
) |
|
|
|
|
|
|
|
|
Other financial income |
|
138 |
|
|
|
138 |
|
Other financial expense |
|
(153 |
) |
|
|
(153 |
) |
|
|
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
615 |
|
10 |
|
625 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
(2,806 |
) |
(57 |
) |
(2,863 |
) |
Consolidated net income |
|
2,761 |
|
63 |
|
2,824 |
|
Group share |
|
2,716 |
|
45 |
|
2,761 |
|
Non-controlling interests |
|
45 |
|
18 |
|
63 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
3rd quarter 2012 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
49,898 |
|
(8 |
) |
49,890 |
|
Excise taxes |
|
(4,411 |
) |
|
|
(4,411 |
) |
Revenues from sales |
|
45,487 |
|
(8 |
) |
45,479 |
|
|
|
|
|
|
|
|
|
Purchases net of inventory variation |
|
(31,375 |
) |
766 |
|
(30,609 |
) |
Other operating expenses |
|
(5,288 |
) |
(212 |
) |
(5,500 |
) |
Exploration costs |
|
(317 |
) |
|
|
(317 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,096 |
) |
(1,150 |
) |
(3,246 |
) |
Other income |
|
142 |
|
332 |
|
474 |
|
Other expense |
|
(114 |
) |
(15 |
) |
(129 |
) |
|
|
|
|
|
|
|
|
Financial interest on debt |
|
(154 |
) |
|
|
(154 |
) |
Financial income from marketable securities & cash equivalents |
|
8 |
|
|
|
8 |
|
Cost of net debt |
|
(146 |
) |
|
|
(146 |
) |
|
|
|
|
|
|
|
|
Other financial income |
|
141 |
|
|
|
141 |
|
Other financial expense |
|
(135 |
) |
|
|
(135 |
) |
|
|
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
627 |
|
14 |
|
641 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
(3,513 |
) |
14 |
|
(3,499 |
) |
Consolidated net income |
|
3,413 |
|
(259 |
) |
3,154 |
|
Group share |
|
3,364 |
|
(282 |
) |
3,082 |
|
Non-controlling interests |
|
49 |
|
23 |
|
72 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
9 months 2013 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
141,828 |
|
(39 |
) |
141,789 |
|
Excise taxes |
|
(13,323 |
) |
|
|
(13,323 |
) |
Revenues from sales |
|
128,505 |
|
(39 |
) |
128,466 |
|
|
|
|
|
|
|
|
|
Purchases net of inventory variation |
|
(89,530 |
) |
(712 |
) |
(90,242 |
) |
Other operating expenses |
|
(15,902 |
) |
(155 |
) |
(16,057 |
) |
Exploration costs |
|
(1,147 |
) |
|
|
(1,147 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(6,219 |
) |
(660 |
) |
(6,879 |
) |
Other income |
|
270 |
|
1,257 |
|
1,527 |
|
Other expense |
|
(264 |
) |
(1,523 |
) |
(1,787 |
) |
|
|
|
|
|
|
|
|
Financial interest on debt |
|
(510 |
) |
|
|
(510 |
) |
Financial income from marketable securities & cash equivalents |
|
45 |
|
|
|
45 |
|
Cost of net debt |
|
(465 |
) |
|
|
(465 |
) |
|
|
|
|
|
|
|
|
Other financial income |
|
398 |
|
|
|
398 |
|
Other financial expense |
|
(418 |
) |
|
|
(418 |
) |
|
|
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
1,961 |
|
(9 |
) |
1,952 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
(8,774 |
) |
413 |
|
(8,361 |
) |
Consolidated net income |
|
8,415 |
|
(1,428 |
) |
6,987 |
|
Group share |
|
8,278 |
|
(1,443 |
) |
6,835 |
|
Non-controlling interests |
|
137 |
|
15 |
|
152 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
9 months 2012 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
150,215 |
|
(22 |
) |
150,193 |
|
Excise taxes |
|
(13,363 |
) |
|
|
(13,363 |
) |
Revenues from sales |
|
136,852 |
|
(22 |
) |
136,830 |
|
|
|
|
|
|
|
|
|
Purchases net of inventory variation |
|
(95,172 |
) |
228 |
|
(94,944 |
) |
Other operating expenses |
|
(16,187 |
) |
(320 |
) |
(16,507 |
) |
Exploration costs |
|
(942 |
) |
|
|
(942 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,916 |
) |
(1,196 |
) |
(7,112 |
) |
Other income |
|
447 |
|
541 |
|
988 |
|
Other expense |
|
(314 |
) |
(362 |
) |
(676 |
) |
|
|
|
|
|
|
|
|
Financial interest on debt |
|
(511 |
) |
|
|
(511 |
) |
Financial income from marketable securities & cash equivalents |
|
67 |
|
|
|
67 |
|
Cost of net debt |
|
(444 |
) |
|
|
(444 |
) |
|
|
|
|
|
|
|
|
Other financial income |
|
435 |
|
|
|
435 |
|
Other financial expense |
|
(389 |
) |
|
|
(389 |
) |
|
|
|
|
|
|
|
|
Equity in net income (loss) of affiliates |
|
1,646 |
|
(28 |
) |
1,618 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
(10,663 |
) |
185 |
|
(10,478 |
) |
Consolidated net income |
|
9,353 |
|
(974 |
) |
8,379 |
|
Group share |
|
9,235 |
|
(967 |
) |
8,268 |
|
Non-controlling interests |
|
118 |
|
(7 |
) |
111 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS OF 2013
(unaudited)
1) Accounting policies
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of September 30, 2013 are presented in Euros and have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. The accounting policies applied for the consolidated financial statements as of September 30, 2013 do not differ significantly from those applied for the consolidated financial statements as of December 31, 2012 which have been prepared on the basis of IFRS (International Financial Reporting Standards) as adopted by the European Union and IFRS as issued by the IASB (International Accounting Standard Board), with the exception of those texts or amendments that must be applied for periods beginning the January 1st 2013 described in note 1X of the Notes to the consolidated financial statements for the year ended December 31, 2012:
· The revised standard IAS 19 Employee benefits applicable retrospectively from January 1st, 2013, led in particular to the full recognition of the net position in respect of employee benefits obligations (liabilities net of assets) in the balance sheet, to the elimination of the corridor approach previously used by the Group, the elimination of the depreciation of past services costs, and to the obligation to evaluate the expected return on plan assets on a normative basis (via the discount rate used to value the debt).
The application of this standard had an impact on January 1st, 2013 and as of September 30, 2012 (the first comparative period presented) of an increase in employee benefit provisions of 2.8 billion and 2.4 billion respectively, and a decrease in equity of 2.8 billion and 2.4 billion before tax (1.7 billion and 1.5 billion after tax). The impact on the profit for 2012 is not significant. In accordance with the transitional rules of IAS 19 revised, the comparative periods were restated to take into account the retrospective application of the standard.
· Application of standards on consolidation: IFRS 10 Consolidated financial statements, IFRS 11 Joint arrangements, IFRS 12 Disclosure of interests in other entities, IAS 27 revised Separate financial statements and IAS 28 revised Investments in associates and joint ventures. The application of these standards did not have a material effect on the Groups consolidated balance sheet, income statement and shareholders equity as of September 30, 2013.
· The application of standards IFRS 13 Fair value measurement and IAS 1 revised Presentation of financial statements did not have a material effect on the Groups consolidated balance sheet, statement of income and shareholders equity as of September 30, 2013.
The preparation of financial statements in accordance with IFRS requires the executive management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of preparation of the financial statements and reported income and expenses for the period. The executive management reviews these estimates and assumptions on an ongoing basis, by reference to past experience and various other factors considered as reasonable which form the basis for assessing the carrying amount of assets and liabilities. Actual results may differ significantly from these estimates, if different assumptions or circumstances apply. These judgments and estimates relate principally to the application of the successful efforts method for the oil and gas accounting, the valuation of long-lived assets, the provisions for asset retirement obligations and environmental remediation, the pensions and post-retirement benefits and the income tax computation. These estimates and assumptions are described in the Notes to the consolidated financial statements as of December 31, 2012.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the executive management applies its judgment to define and apply accounting policies that will lead to relevant and reliable information, so that the financial statements:
· give a true and fair view of the Groups financial position, financial performance and cash flows;
· reflect the substance of transactions;
· are neutral;
· are prepared on a prudent basis; and
· are complete in all material aspects.
Pursuant to the accrual basis of accounting followed by the Group, the financial statements reflect the effects of transactions and other events when they occur. Assets and liabilities such as property, plant and equipment and intangible assets are usually measured at cost. Financial assets and liabilities are usually measured at fair value.
2) Changes in the Group structure, main acquisitions and divestments
Ø Upstream
· TOTAL finalized in February 2013 the acquisition of an additional 6% interest in the Ichthys liquefied natural gas (LNG) project from its partner INPEX. TOTALs overall equity stake in the Ichthys LNG project will increase from 24% to 30%.
· TOTAL finalized in February 2013 the sale to INPEX of a 9.99% indirect interest in offshore Angola Block 14.
· On March 27, 2013, TOTAL entered into an agreement for the sale to Suncor Energy Inc. of its 49% interest in the Voyageur upgrader project, which is located in the Canadian province of Alberta and intended to upgrade bitumen from the Fort Hills and Joslyn mines. The transaction amounted to US$506 million (384 million). The mining development projects of Fort Hills and Joslyn continue according to the production evacuation logistics studies jointly conducted with Suncor. The sale entails a net loss of 1,247 million.
· TOTAL finalized in June 2013 the sale of a 25% interest in the Tempa Rossa field in Italy to Mitsui.
· TOTAL finalized in July 2013 the sale of 100% of Transport et Infrastructures Gaz France (TIGF) to a consortium comprising Snam, EDF and GIC (Government of Singapore Investment Corporation) for an amount of 1,558 million, net of cash sold.
· TOTAL finalized in September 2013 the sale of its Upstream interests in Trinidad & Tobago to The National Gas Company of Trinidad & Tobago for an amount of 235 million (US$ 317 million), net of cash sold.
Ø Refining & Chemicals
· TOTAL finalized in June 2013 the sale of its fertilizing businesses in Europe.
3) Adjustment items
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL and which is reviewed by the main operational decision-making body of the Group, namely the Executive committee.
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
Adjustment items include:
(i) Special items
Due to their unusual nature or particular 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, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments performance and facilitate the comparability of the segments performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period
rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment item reflects for some transactions differences between internal measure of performance used by TOTALs management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Groups internal economic performance. IFRS precludes recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
(M) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Total |
| ||
3rd quarter 2013 |
|
Inventory valuation effect |
|
|
|
(114 |
) |
71 |
|
|
|
(43 |
) |
|
|
Effect of changes in fair value |
|
(9 |
) |
|
|
|
|
|
|
(9 |
) |
|
|
Restructuring charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment charges |
|
(651 |
) |
(5 |
) |
|
|
|
|
(656 |
) |
|
|
Other items |
|
(86 |
) |
|
|
(30 |
) |
|
|
(116 |
) |
Total |
|
|
|
(746 |
) |
(119 |
) |
41 |
|
|
|
(824 |
) |
3rd quarter 2012 |
|
Inventory valuation effect |
|
|
|
627 |
|
139 |
|
|
|
766 |
|
|
|
Effect of changes in fair value |
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
|
|
Restructuring charges |
|
|
|
(4 |
) |
(12 |
) |
|
|
(16 |
) |
|
|
Asset impairment charges |
|
(1,134 |
) |
|
|
|
|
|
|
(1,134 |
) |
|
|
Other items |
|
3 |
|
(32 |
) |
(183 |
) |
|
|
(212 |
) |
Total |
|
|
|
(1,139 |
) |
591 |
|
(56 |
) |
|
|
(604 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months 2013 |
|
Inventory valuation effect |
|
|
|
(680 |
) |
(32 |
) |
|
|
(712 |
) |
|
|
Effect of changes in fair value |
|
(39 |
) |
|
|
|
|
|
|
(39 |
) |
|
|
Restructuring charges |
|
|
|
(2 |
) |
|
|
|
|
(2 |
) |
|
|
Asset impairment charges |
|
(651 |
) |
(9 |
) |
|
|
|
|
(660 |
) |
|
|
Other items |
|
(86 |
) |
(37 |
) |
(30 |
) |
|
|
(153 |
) |
Total |
|
|
|
(776 |
) |
(728 |
) |
(62 |
) |
|
|
(1,566 |
) |
9 months 2012 |
|
Inventory valuation effect |
|
|
|
172 |
|
56 |
|
|
|
228 |
|
|
|
Effect of changes in fair value |
|
(22 |
) |
|
|
|
|
|
|
(22 |
) |
|
|
Restructuring charges |
|
|
|
(4 |
) |
(60 |
) |
|
|
(64 |
) |
|
|
Asset impairment charges |
|
(1,134 |
) |
|
|
|
|
|
|
(1,134 |
) |
|
|
Other items |
|
(15 |
) |
(32 |
) |
(183 |
) |
(88 |
) |
(318 |
) |
Total |
|
|
|
(1,171 |
) |
136 |
|
(187 |
) |
(88 |
) |
(1,310 |
) |
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Total |
| ||
3rd quarter 2013 |
|
Inventory valuation effect |
|
|
|
(63 |
) |
39 |
|
|
|
(24 |
) |
|
|
Effect of changes in fair value |
|
(7 |
) |
|
|
|
|
|
|
(7 |
) |
|
|
Restructuring charges |
|
|
|
(9 |
) |
(7 |
) |
|
|
(16 |
) |
|
|
Asset impairment charges |
|
(442 |
) |
(5 |
) |
|
|
|
|
(447 |
) |
|
|
Gains (losses) on disposals of assets |
|
888 |
|
|
|
|
|
|
|
888 |
|
|
|
Other items |
|
(86 |
) |
(209 |
) |
10 |
|
(64 |
) |
(349 |
) |
Total |
|
|
|
353 |
|
(286 |
) |
42 |
|
(64 |
) |
45 |
|
3rd quarter 2012 |
|
Inventory valuation effect |
|
|
|
444 |
|
80 |
|
|
|
524 |
|
|
|
Effect of changes in fair value |
|
(6 |
) |
|
|
|
|
|
|
(6 |
) |
|
|
Restructuring charges |
|
|
|
(18 |
) |
(15 |
) |
|
|
(33 |
) |
|
|
Asset impairment charges |
|
(737 |
) |
|
|
|
|
|
|
(737 |
) |
|
|
Gains (losses) on disposals of assets |
|
|
|
|
|
|
|
202 |
|
202 |
|
|
|
Other items |
|
(69 |
) |
(60 |
) |
(104 |
) |
1 |
|
(232 |
) |
Total |
|
|
|
(812 |
) |
366 |
|
(39 |
) |
203 |
|
(282 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months 2013 |
|
Inventory valuation effect |
|
|
|
(448 |
) |
(27 |
) |
|
|
(475 |
) |
|
|
Effect of changes in fair value |
|
(30 |
) |
|
|
|
|
|
|
(30 |
) |
|
|
Restructuring charges |
|
|
|
(25 |
) |
(17 |
) |
|
|
(42 |
) |
|
|
Asset impairment charges |
|
(442 |
) |
(8 |
) |
|
|
|
|
(450 |
) |
|
|
Gains (losses) on disposals of assets |
|
(31 |
) |
(41 |
) |
|
|
|
|
(72 |
) |
|
|
Other items |
|
(86 |
) |
(234 |
) |
10 |
|
(64 |
) |
(374 |
) |
Total |
|
|
|
(589 |
) |
(756 |
) |
(34 |
) |
(64 |
) |
(1,443 |
) |
9 months 2012 |
|
Inventory valuation effect |
|
|
|
120 |
|
35 |
|
|
|
155 |
|
|
|
Effect of changes in fair value |
|
(17 |
) |
|
|
|
|
|
|
(17 |
) |
|
|
Restructuring charges |
|
|
|
(18 |
) |
(55 |
) |
|
|
(73 |
) |
|
|
Asset impairment charges |
|
(737 |
) |
|
|
(20 |
) |
(18 |
) |
(775 |
) |
|
|
Gains (losses) on disposals of assets |
|
|
|
|
|
|
|
355 |
|
355 |
|
|
|
Other items |
|
(76 |
) |
(60 |
) |
(104 |
) |
(372 |
) |
(612 |
) |
Total |
|
|
|
(830 |
) |
42 |
|
(144 |
) |
(35 |
) |
(967 |
) |
On September 30th, 2013, due to the continuing weakness of US market prices for gas (Henry Hub), the Group reviewed the value of its shale gas assets in the basin of the Barnett in the US and impaired 526 million ($693 million) before tax (342 million after tax).
In addition, in the 3rd quarter 2013 Other Items includes a charge of 243 million following a write-down of deferred tax assets in Belgium due to economic and financial conditions and due to the change in fiscal legislation that occurred in 2012.
Finally, due to the prolonged degradation of security conditions, the Groups assets in Syria were depreciated, resulting in a charge of 137 million ($180 million).
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of September 30, 2013, TOTAL S.A. held 8,883,930 of its own shares, representing 0.37% of its share capital, detailed as follows:
· 8,764,020 shares allocated to TOTAL restricted shares plans for Group employees; and
· 119,910 shares intended to be allocated to new TOTAL share purchase option plans or to new restricted shares plans.
These 8,883,930 shares are deducted from the consolidated shareholders equity.
Treasury shares (TOTAL shares held by Group subsidiaries)
As of September 30, 2013, TOTAL S.A. held indirectly through its subsidiaries 100,331,268 of its own shares, representing 4.22% of its share capital, detailed as follows:
· 2,023,672 shares held by a consolidated subsidiary, Total Nucléaire, 100% indirectly controlled by TOTAL S.A.;
· 98,307,596 shares held by subsidiaries of Elf Aquitaine (Financière Valorgest, Sogapar and Fingestval), 100% indirectly controlled by TOTAL S.A.
These 100,331,268 shares are deducted from the consolidated shareholders equity.
Dividend
The shareholders meeting on May 17, 2013 approved the payment of a cash dividend of 2.34 per share for the 2012 fiscal year. Taking into account the first quarterly dividend of 0.57 per share and the two following quarterly dividends of 0.59 per share that have already been paid on September 27, 2012, December 20, 2012, and March 21, 2013, the remaining balance of 0.59 per share was paid on June 27, 2013.
A first quarterly dividend for the fiscal year 2013 of 0.59 per share, decided by the Board of Directors on April 25, 2013, was paid on September 27, 2013 (the ex-dividend date was September 24, 2013).
A second quarterly dividend for the fiscal year 2013 of 0.59 per share, decided by the Board of Directors on July 25, 2013, will be paid on December 19, 2013 (the ex-dividend date will be December 16, 2013).
A third quarterly dividend for the fiscal year 2013 of 0.59 per share, decided by the Board of Directors on October 30, 2013, will be paid on March 27, 2014 (the ex-dividend date will be March 24, 2014).
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
(M) |
|
9 months 2013 |
|
9 months 2012 |
| ||||
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses |
|
|
|
14 |
|
|
|
(474 |
) |
Tax effect |
|
|
|
(2 |
) |
|
|
172 |
|
Items not potentially reclassifiable to profit or loss |
|
|
|
12 |
|
|
|
(302 |
) |
|
|
|
|
|
|
|
|
|
|
Currency translation adjustment |
|
|
|
(1,246 |
) |
|
|
285 |
|
- unrealized gain/(loss) of the period |
|
(1,261 |
) |
|
|
282 |
|
|
|
- less gain/(loss) included in net income |
|
(15 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale financial assets |
|
|
|
7 |
|
|
|
(342 |
) |
- unrealized gain/(loss) of the period |
|
7 |
|
|
|
69 |
|
|
|
- less gain/(loss) included in net income |
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge |
|
|
|
100 |
|
|
|
36 |
|
- unrealized gain/(loss) of the period |
|
129 |
|
|
|
87 |
|
|
|
- less gain/(loss) included in net income |
|
29 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other comprehensive income of equity affiliates, net amount |
|
|
|
(607 |
) |
|
|
191 |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
(12 |
) |
|
|
(14 |
) |
- unrealized gain/(loss) of the period |
|
(12 |
) |
|
|
(14 |
) |
|
|
- less gain/(loss) included in net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect |
|
|
|
(38 |
) |
|
|
72 |
|
Items potentially reclassifiable to profit or loss |
|
|
|
(1,796 |
) |
|
|
228 |
|
Total other comprehensive income, net amount |
|
|
|
(1,784 |
) |
|
|
(74 |
) |
Tax effects relating to each component of other comprehensive income are as follows:
|
|
9 months 2013 |
|
9 months 2012 |
| ||||||||
(M) |
|
Pre-tax |
|
Tax effect |
|
Net amount |
|
Pre-tax |
|
Tax effect |
|
Net amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses |
|
14 |
|
(2 |
) |
12 |
|
(474 |
) |
172 |
|
(302 |
) |
Items not potentially reclassifiable to profit or loss |
|
14 |
|
(2 |
) |
12 |
|
(474 |
) |
172 |
|
(302 |
) |
Currency translation adjustment |
|
(1,246 |
) |
|
|
(1,246 |
) |
285 |
|
|
|
285 |
|
Available for sale financial assets |
|
7 |
|
(1 |
) |
6 |
|
(342 |
) |
88 |
|
(254 |
) |
Cash flow hedge |
|
100 |
|
(37 |
) |
63 |
|
36 |
|
(16 |
) |
20 |
|
Share of other comprehensive income of equity affiliates, net amount |
|
(607 |
) |
|
|
(607 |
) |
191 |
|
|
|
191 |
|
Other |
|
(12 |
) |
|
|
(12 |
) |
(14 |
) |
|
|
(14 |
) |
Items potentially reclassifiable to profit or loss |
|
(1,758 |
) |
(38 |
) |
(1,796 |
) |
156 |
|
72 |
|
228 |
|
Total other comprehensive income |
|
(1,744 |
) |
(40 |
) |
(1,784 |
) |
(318 |
) |
244 |
|
(74 |
) |
5) Financial debt
The Group issued bonds through its subsidiaries Total Capital International, Total Capital and Total Capital Canada during the first nine months of 2013:
Bond 1.450% 2013-2018 (1,000 million USD)
Bond US Libor 3 months + 38 bp 2013-2016 (1,000 million USD)
Bond 2.750% 2013-2023 (1,000 million USD)
Bond 0.750% 2013-2016 (250 million USD increase of an existing 2012-2016 Bond)
Bond 4.000% 2013-2018 (150 million AUD)
Bond 2.125% 2013-2023 (250 million EUR increase of an existing 2012-2023 Bond)
Bond Euribor 3 months + 31 bp 2013-2020 (300 million EUR)
Bond 2.500% 2013-2018 (600 million NOK)
Bond 1.875% 2013-2020 (750 million EUR)
Bond US Libor 3 months + 75 bp 2013-2020 (300 million USD)
Bond 1.000% 2013-2016 (500 million USD)
Bond US Libor 3 months + 57 bp 2013-2018 (500 million USD)
Bond 2.125% 2013-2018 (1,000 million USD)
Bond 3.700% 2013-2024 (1,000 million USD)
Bond 3.750% 2013-2018 (1,065 million CNY)
The Group reimbursed bonds during the first nine months of 2013:
Bond 4.125% 2007-2013 (600 million EUR)
Bond 5.500% 2007-2013 (350 million GBP)
Bond 7.500% 2008-2013 (200 million AUD)
Bond 4.500% 2003-2013 (30 million USD)
Bond 5.500% 2009-2013 (200 million AUD)
Bond 3.125% 2008-2013 (300 million CHF)
Bond Libor 3 month + 9 bp 2011-2013 (1,000 million USD)
Bond 4.000% 2008-2013 (400 million USD)
Bond JPY Libor 3 months + 12 bp 2008-2013 (25 billion JPY)
Bond 5.000% 1998-2013 (1 billion FRF)
In the context of its active cash management, the Group may temporarily increase its current borrowings, particularly in the form of commercial paper. The changes in current borrowings, cash and cash equivalents and current financial assets resulting from this cash management in the quarterly financial statements are not necessarily representative of a longer-term position.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments. There were no major changes concerning transactions with related parties during the first nine months of 2013.
7) Other risks and contingent liabilities
TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group.
Antitrust investigations
The principal antitrust proceedings in which the Groups companies are involved are described thereafter.
Refining & Chemicals segment
As part of the spin-off of Arkema(1) in 2006, TOTAL S.A. or certain other Group companies agreed to grant Arkema a guarantee for potential monetary consequences related to antitrust proceedings arising from events prior to the spin-off.
This guarantee covers, for a period of ten years from the date of the spin-off, 90% of amounts paid by Arkema related to (i) fines imposed by European authorities or European member-states for competition law violations, (ii) fines imposed by U.S. courts or antitrust authorities for federal antitrust violations or violations of the competition laws of U.S. states, (iii) damages awarded in civil proceedings related to the government proceedings mentioned above, and (iv) certain costs related to these proceedings. The guarantee related to anti-competition violations in Europe applies to amounts above a 176.5 million threshold. On the other hand, the agreements provide that Arkema will indemnify TOTAL S.A. or any Group company for 10% of any amount that TOTAL S.A. or any Group company are required to pay under any of the proceedings covered by this guarantee, in Europe.
If one or more individuals or legal entities, acting alone or together, directly or indirectly holds more than one-third of the voting rights of Arkema, or if Arkema transfers more than 50% of its assets (as calculated under the enterprise valuation method, as of the date of the transfer) to a third party or parties acting together, irrespective of the type or number of transfers, this guarantee will become void.
- In the United States, civil liability lawsuits, for which TOTAL S.A. has been named as the parent company, are closed without significant impact on the Groups financial position.
- In Europe, since 2006, the European Commission has fined companies of the Group in its configuration prior to the spin-off following five investigations launched by the European Commission between 2000 and 2004, four of which are closed, the fifth is on hold pending a decision following the appeal of Arkema and the concerned companies of the Group.
In financial terms, the fines imposed by the European Commission following the five investigations reach an overall amount of 385.47 million, entirely settled as of today. As a result, once the threshold provided for by the guarantee is deducted, the overall amount assumed and paid by the Group since the spin-off in accordance with the guarantee amounted to 188.07 million(2), to which an amount of 31.31 million of interest has been added. These amounts were not modified during the third quarter of 2013 financial year.
- In addition, civil proceedings against Arkema and other groups of companies were initiated in 2009 and 2011, respectively, before German and Dutch courts by third parties for alleged damages pursuant to two of the above mentioned legal proceedings. TOTAL S.A. was summoned to serve notice of the dispute before the German court. These procedures were settled between the claimants and Arkema in early July 2013 and the corresponding amounts paid during the third quarter of 2013 financial year.
Arkema began implementing compliance procedures in 2001 that are designed to prevent its employees from violating antitrust provisions. However, it is not possible to exclude the possibility that the relevant authorities could
(1) Arkema is used in this section to designate those companies of the Arkema group whose ultimate parent company is Arkema S.A. Arkema became an independent company after being spun-off from TOTAL S.A. in May 2006.
(2) This amount does not take into account a case that led to Arkema, prior to Arkemas spin-off from TOTAL, and Elf Aquitaine being fined jointly 45 million and Arkema being fined 13.5 million.
commence additional proceedings involving Arkema regarding events prior to the spin-off, as well as Elf Aquitaine and/or TOTAL S.A. based on their status as parent company.
All of the legal proceedings described above having been resolved, the 17 million reserve previously booked in the Groups consolidated financial statements was fully released in the third quarter 2013.
Marketing & Services segment
- Pursuant to a statement of objections received by Total Nederland N.V. and TOTAL S.A. (based on its status as parent company) from the European Commission, Total Nederland N.V. was fined 20.25 million in 2006, for which TOTAL S.A. was held jointly liable for 13.5 million. TOTAL S.A. lodged an appeal against this decision that was dismissed at the end of September 2012. The fine and interest were paid during the first quarter of 2013.
- In addition, pursuant to a statement of objections received by Total Marketing Services (formerly Total France and then Total Raffinage Marketing) and TOTAL S.A. from the European Commission regarding a product line of the Marketing & Services segment, Total Marketing Services was fined 128.2 million in 2008, which has been paid, and for which TOTAL S.A. was held jointly liable based on its status as parent company. Following the appeal against this decision lodged by the Groups companies, the relevant European court decided during the third quarter of 2013 to reduce the fine imposed on Total Marketing Services to 125.5 million without modifying the liability of TOTAL S.A. as parent company.
- In addition, the civil proceedings against TOTAL S.A., Total Marketing Services and other companies initiated before UK and Dutch courts by third parties for alleged damages in connection with the prosecutions brought by the European Commission continued. The probability to have a favorable verdict and the financial impacts of the procedure before the Dutch court remains uncertain due to a number of difficulties associated with legal aspects of the case and the evaluations of the alleged damages. The proceeding before the UK court was settled during the third quarter of 2013.
Within this framework, the 6 million reserve previously booked in the Groups consolidated financial statements was fully released.
In early 2013, a civil proceeding was initiated against TOTAL S.A. and its subsidiary Total Aviazione Italia Srl before the competent Italian civil courts. The plaintiff claims against TOTAL S.A., its subsidiary and other third parties, damages that it estimates to be nearly 908 million. This procedure initiated by the plaintiff follows practices that had been sanctioned by the Italian competition authority in 2006. Given the multiple defendants engaged in these proceedings and the disproportionate nature of the alleged damages in view of the justifications provided, this proceeding is not expected to have a material effect on the Groups financial situation, even if it is not possible at this stage to precisely determine the financial impact of the demand on the Group.
Whatever the evolution of the proceedings described above, the Group believes that their outcome should not have a material adverse effect on the Groups financial situation or consolidated results.
Grande Paroisse
An explosion occurred at the Grande Paroisse industrial site in the city of Toulouse in France on September 21, 2001. Grande Paroisse, a former subsidiary of Atofina which became a subsidiary of Elf Aquitaine Fertilisants on December 31, 2004, as part of the reorganization of the Chemicals segment, was principally engaged in the production and sale of agricultural fertilizers. The explosion, which involved a stockpile of ammonium nitrate pellets, destroyed a portion of the site and caused the death of thirty-one people, including twenty-one workers at the site, and injured many others. The explosion also caused significant damage to certain property in part of the city of Toulouse.
This plant has been closed and individual assistance packages have been provided for employees. The site has been rehabilitated.
On December 14, 2006, Grande Paroisse signed, under the supervision of the city of Toulouse, the deed whereby it donated the former site of the AZF plant to the greater agglomeration of Toulouse (CAGT) and the Caisse des dépôts et consignations and its subsidiary ICADE. Under this deed, TOTAL S.A. guaranteed the site remediation obligations of Grande Paroisse and granted a 10 million endowment to the InNaBioSanté research foundation as part of the setting up of a cancer research center at the site by the city of Toulouse.
After having articulated several hypotheses, the Court-appointed experts did not maintain in their final report filed on May 11, 2006, that the accident was caused by pouring a large quantity of a chlorine compound over ammonium nitrate. Instead, the experts have retained a scenario where a container of chlorine compound sweepings was poured between a layer of wet ammonium nitrate covering the floor and a quantity of dry agricultural nitrate at a location not far from the principal storage site. This is claimed to have caused an explosion which then spread into the main storage site. Grande Paroisse was investigated based on this new hypothesis in 2006; Grande Paroisse is contesting this explanation, which it believes to be based on elements that are not factually accurate.
On July 9, 2007, the investigating magistrate brought charges against Grande Paroisse and the former Plant Manager before the criminal chamber of the Court of Appeal of Toulouse. In late 2008, TOTAL S.A. and Mr. Thierry Desmarest were summoned to appear in Court pursuant to a request by a victims association.
On November 19, 2009, the Toulouse Criminal Court acquitted both the former Plant Manager, and Grande Paroisse due to the lack of reliable evidence for the explosion. The Court also ruled that the summonses against TOTAL S.A. and Mr. Thierry Desmarest, Chairman and CEO at the time of the disaster were inadmissible.
Due to the presumption of civil liability that applied to Grande Paroisse, the Court declared Grande Paroisse civilly liable for the damages caused by the explosion to the victims in its capacity as custodian and operator of the plant.
The Prosecutors office, together with certain third parties, has appealed the Toulouse Criminal Court verdict. In order to preserve its rights, Grande Paroisse lodged a cross-appeal with respect to civil charges.
By its decision of September 24, 2012, the Court of Appeal of Toulouse (Cour dappel de Toulouse) upheld the lower court verdict pursuant to which the summonses against TOTAL S.A. and Mr. Thierry Desmarest were determined to be inadmissible. This element of the decision has been appealed by certain third parties before the French Supreme Court (Cour de cassation).
The Court of Appeal considered, however, that the explosion was the result of the chemical accident described by the court-appointed experts. Accordingly, it convicted the former Plant Manager and Grande Paroisse. This element of the decision has been appealed by the former Plant Manager and Grande Paroisse before the French Supreme Court (Cour de cassation), which has the effect of suspending their criminal sentences.
A compensation mechanism for victims was set up immediately following the explosion. 2.3 billion was paid for the compensation of claims and related expenses amounts. A 14.3 million reserve remains booked in the Groups consolidated financial statements as of September 30, 2013.
Blue Rapid and the Russian Olympic Committee Russian regions and Interneft
Blue Rapid, a Panamanian company, and the Russian Olympic Committee filed a claim for damages with the Paris Commercial Court against Elf Aquitaine, alleging a so-called non-completion by a former subsidiary of Elf Aquitaine of a contract related to an exploration and production project in Russia negotiated in the early 1990s. Elf Aquitaine believed this claim to be unfounded and opposed it. On January 12, 2009, the Commercial Court of Paris rejected Blue Rapids claim against Elf Aquitaine and found that the Russian Olympic Committee did not have standing in the matter. Blue Rapid and the Russian Olympic Committee appealed this decision. On June 30, 2011, the Court of Appeal of Paris dismissed as inadmissible the claim of Blue Rapid and the Russian Olympic Committee against Elf Aquitaine, notably on the grounds of the contract having lapsed. Blue Rapid and the Russian Olympic Committee appealed this decision to the French Supreme Court.
In connection with the same facts, and fifteen years after the termination of the exploration and production contract, a Russian company, which was held not to be the contracting party to the contract, and two regions of the Russian Federation that were not even parties to the contract, launched an arbitration procedure against the aforementioned former subsidiary of Elf Aquitaine that was liquidated in 2005, claiming alleged damages of U.S.$ 22.4 billion. For the same reasons as those successfully adjudicated by Elf Aquitaine against Blue Rapid and the Russian Olympic Committee, the Group considers this claim to be unfounded as a matter of law and fact. The Group has lodged a criminal complaint to denounce the fraudulent claim of which the Group believes it is a victim and, has taken and reserved its rights to take other actions and measures to defend its interests.
Iran
In 2003, the United States Securities and Exchange Commission (SEC) followed by the Department of Justice (DoJ) issued a formal order directing an investigation in connection with the pursuit of business in Iran by certain oil companies including, among others, TOTAL.
The inquiry concerned an agreement concluded by the Company with consultants concerning gas fields in Iran and aimed to verify whether certain payments made under this agreement would have benefited Iranian officials in violation of the Foreign Corrupt Practices Act (FCPA) and the Companys accounting obligations.
In late May 2013, and after years of discussions, TOTAL reached settlements with the U.S. authorities (a Deferred Prosecution Agreement with the DoJ and a Cease and Desist Order with the SEC). These settlements, which put an end to these investigations, were concluded without admission of guilt and in exchange for TOTAL respecting a number of obligations, including the payment of a fine ($245.2 million) and a civil compensation ($153 million) that occurred during the second quarter of 2013. The reserve of $398.2 million that was booked in the financial statements as of June 30, 2012, has been fully released. By virtue of these settlements, TOTAL also accepted to appoint a French independent compliance monitor to review the Groups compliance program and to recommend possible improvements.
With respect to the same facts, TOTAL and its Chief Executive Officer, who was President of the Middle East at the time of the facts, were placed under formal investigation in France following a judicial inquiry initiated in 2006. In late May 2013, the Prosecutors office recommended that the case be sent to trial. The investigating magistrate has not yet issued his decision.
At this point, the Company considers that the resolution of these cases is not expected to have a significant impact on the Groups financial situation or consequences on its future planned operations.
Libya
In June 2011, the United States Securities and Exchange Commission (SEC) issued to certain oil companies - including, among others, TOTAL - a formal request for information related to their operations in Libya. In April 2013, the SEC notified TOTAL of the closure of the investigation while stating that it does not intend to take further action as far as TOTAL is concerned.
Oil-for-Food Program
Several countries have launched investigations concerning possible violations related to the United Nations (UN) Oil-for-Food Program in Iraq.
Pursuant to a French criminal investigation, certain current or former Group Employees were placed under formal criminal investigation for possible charges as accessories to the misappropriation of Corporate assets and as accessories to the corruption of foreign public agents. The Chairman and Chief Executive Officer of the Company, formerly President of the Groups Exploration & Production division, was also placed under formal investigation in October 2006. In 2007, the criminal investigation was closed and the case was transferred to the Prosecutors office. In 2009, the Prosecutors office recommended to the investigating magistrate that the case against the Groups current and former employees and TOTALs Chairman and Chief Executive Officer not be pursued.
In early 2010, despite the recommendation of the Prosecutors office, a new investigating magistrate, having taken over the case, decided to indict TOTAL S.A. on bribery charges as well as complicity and influence peddling. The indictment was brought eight years after the beginning of the investigation without any new evidence being introduced.
In October 2010, the Prosecutors office recommended to the investigating magistrate that the case against TOTAL S.A., the Groups former employees and TOTALs Chairman and Chief Executive Officer not be pursued. However, by ordinance notified in early August 2011, the investigating magistrate on the matter decided to send the case to trial. On July 8, 2013, TOTAL S.A., the Groups former employees and TOTALs Chairman and Chief Executive Officer were cleared of all charges by the Criminal Court, which found that none of the offenses for which they had been prosecuted were established. On July 18, 2013, the Prosecutors office appealed the parts of the Criminal Courts decision acquitting TOTAL S.A. and certain of the Groups former employees. TOTALs Chairman and Chief Executive Officers acquittal issued on July 8, 2013 is irrevocable since the Prosecutors office did not appeal such part of the Criminal Courts decision.
Italy
As part of an investigation led by the Prosecutor of the Republic of the Potenza Court, Total Italia and certain Group employees were the subject of an investigation related to certain calls for tenders that Total Italia made for the preparation and development of an oil field. On February 16, 2009, as a preliminary measure before the proceedings went before the Court, the preliminary investigation judge of Potenza served notice to Total Italia of a decision that would have suspended the concession for this field for one year. Total Italia appealed the decision by the preliminary investigation judge before the Court of Appeal of Potenza. In a decision dated April 8, 2009, the Court reversed the suspension of the concession and appointed for one year, i.e. until February 16, 2010, a judicial administrator to supervise the operations related to the development of the concession, allowing the Tempa Rossa project to continue.
The criminal investigation was closed in the first half of 2010. In May 2012, the Judge of the preliminary hearing decided to dismiss the charges for some of the Groups employees and refer the case for trial on a reduced number of charges. The trial started on September 26, 2012.
In 2010, Total Italias exploration and production operations were transferred to Total E&P Italia and refining and marketing operations were merged with those of Erg Petroli.
Rivunion
On July 9, 2012, the Swiss Tribunal Fédéral (Switzerlands Supreme Court) rendered its decision against Rivunion, a wholly-owned subsidiary of Elf Aquitaine, confirming a tax reassessment in the amount of CHF 171 million (excluding interest for late payment). According to the Tribunal, Rivunion was held liable as tax collector of withholding taxes owed by the beneficiaries of taxable services. Rivunion, in liquidation since March 13, 2002 and
unable to recover the amounts corresponding to the withholding taxes in restitution from said beneficiaries in order to meet its fiscal obligations, has been subject to insolvency proceedings since November 1, 2012. On August 29, 2013, the Swiss federal tax administration stated a claim as part of the insolvency proceedings of Rivunion, for an amount of CHF 284 million, including CHF 171 million of principal and interest for late payment.
Nigeria
In the second and third quarter 2013, TOTALs equity production in Nigeria was impacted by repeated oil theft and sabotage on oil and gas pipelines used to transport the Groups production. Despite the completion of multiple repairs, production remained impacted at the end of September 2013, mainly from the onshore acreage of the joint venture in which TOTAL holds a 10% interest that is operated by the Shell Petroleum Development Company (SPDC).
The Group estimates its equity production in Nigeria to be reduced by about 37 kboe/d during third quarter 2013.
8) Information by business segment
9 months 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
14,712 |
|
64,438 |
|
62,634 |
|
5 |
|
|
|
141,789 |
|
Intersegment sales |
|
20,828 |
|
29,789 |
|
1,345 |
|
91 |
|
(52,053 |
) |
|
|
Excise taxes |
|
|
|
(2,640 |
) |
(10,683 |
) |
|
|
|
|
(13,323 |
) |
Revenues from sales |
|
35,540 |
|
91,587 |
|
53,296 |
|
96 |
|
(52,053 |
) |
128,466 |
|
Operating expenses |
|
(16,991 |
) |
(90,405 |
) |
(51,728 |
) |
(375 |
) |
52,053 |
|
(107,446 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,571 |
) |
(881 |
) |
(404 |
) |
(23 |
) |
|
|
(6,879 |
) |
Operating income |
|
12,978 |
|
301 |
|
1,164 |
|
(302 |
) |
|
|
14,141 |
|
Equity in net income (loss) of affiliates and other items |
|
1,434 |
|
199 |
|
70 |
|
(31 |
) |
|
|
1,672 |
|
Tax on net operating income |
|
(7,881 |
) |
(173 |
) |
(328 |
) |
(55 |
) |
|
|
(8,437 |
) |
Net operating income |
|
6,531 |
|
327 |
|
906 |
|
(388 |
) |
|
|
7,376 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(389 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(152 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
6,835 |
|
9 months 2013 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(39 |
) |
|
|
|
|
|
|
|
|
(39 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(39 |
) |
|
|
|
|
|
|
|
|
(39 |
) |
Operating expenses |
|
(86 |
) |
(719 |
) |
(62 |
) |
|
|
|
|
(867 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(651 |
) |
(9 |
) |
|
|
|
|
|
|
(660 |
) |
Operating income (b) |
|
(776 |
) |
(728 |
) |
(62 |
) |
|
|
|
|
(1,566 |
) |
Equity in net income (loss) of affiliates and other items |
|
(218 |
) |
(47 |
) |
20 |
|
(30 |
) |
|
|
(275 |
) |
Tax on net operating income |
|
405 |
|
19 |
|
23 |
|
(34 |
) |
|
|
413 |
|
Net operating income (b) |
|
(589 |
) |
(756 |
) |
(19 |
) |
(64 |
) |
|
|
(1,428 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(15 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
(1,443 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
On operating income |
|
|
|
(680) |
|
(32) |
|
|
|
|
|
|
|
On net operating income |
|
|
|
(448) |
|
(20) |
|
|
|
|
|
|
|
9 months 2013 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
14,751 |
|
64,438 |
|
62,634 |
|
5 |
|
|
|
141,828 |
|
Intersegment sales |
|
20,828 |
|
29,789 |
|
1,345 |
|
91 |
|
(52,053 |
) |
|
|
Excise taxes |
|
|
|
(2,640 |
) |
(10,683 |
) |
|
|
|
|
(13,323 |
) |
Revenues from sales |
|
35,579 |
|
91,587 |
|
53,296 |
|
96 |
|
(52,053 |
) |
128,505 |
|
Operating expenses |
|
(16,905 |
) |
(89,686 |
) |
(51,666 |
) |
(375 |
) |
52,053 |
|
(106,579 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(4,920 |
) |
(872 |
) |
(404 |
) |
(23 |
) |
|
|
(6,219 |
) |
Adjusted operating income |
|
13,754 |
|
1,029 |
|
1,226 |
|
(302 |
) |
|
|
15,707 |
|
Equity in net income (loss) of affiliates and other items |
|
1,652 |
|
246 |
|
50 |
|
(1 |
) |
|
|
1,947 |
|
Tax on net operating income |
|
(8,286 |
) |
(192 |
) |
(351 |
) |
(21 |
) |
|
|
(8,850 |
) |
Adjusted net operating income |
|
7,120 |
|
1,083 |
|
925 |
|
(324 |
) |
|
|
8,804 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(389 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(137 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
8,278 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
3.65 |
|
(a) Except for earnings per share.
9 months 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
15,375 |
|
1,330 |
|
755 |
|
88 |
|
|
|
17,548 |
|
Total divestments |
|
3,769 |
|
243 |
|
94 |
|
32 |
|
|
|
4,138 |
|
Cash flow from operating activities |
|
11,043 |
|
1,855 |
|
1,608 |
|
(128 |
) |
|
|
14,378 |
|
9 months 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
16,155 |
|
68,948 |
|
64,945 |
|
145 |
|
|
|
150,193 |
|
Intersegment sales |
|
23,440 |
|
33,457 |
|
607 |
|
140 |
|
(57,644 |
) |
|
|
Excise taxes |
|
|
|
(2,634 |
) |
(10,729 |
) |
|
|
|
|
(13,363 |
) |
Revenues from sales |
|
39,595 |
|
99,771 |
|
54,823 |
|
285 |
|
(57,644 |
) |
136,830 |
|
Operating expenses |
|
(18,074 |
) |
(97,614 |
) |
(53,590 |
) |
(759 |
) |
57,644 |
|
(112,393 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,685 |
) |
(954 |
) |
(447 |
) |
(26 |
) |
|
|
(7,112 |
) |
Operating income |
|
15,836 |
|
1,203 |
|
786 |
|
(500 |
) |
|
|
17,325 |
|
Equity in net income (loss) of affiliates and other items |
|
1,633 |
|
156 |
|
(76 |
) |
263 |
|
|
|
1,976 |
|
Tax on net operating income |
|
(9,840 |
) |
(308 |
) |
(298 |
) |
(130 |
) |
|
|
(10,576 |
) |
Net operating income |
|
7,629 |
|
1,051 |
|
412 |
|
(367 |
) |
|
|
8,725 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(346 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(111 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
8,268 |
|
9 months 2012 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(22 |
) |
|
|
|
|
|
|
|
|
(22 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(22 |
) |
|
|
|
|
|
|
|
|
(22 |
) |
Operating expenses |
|
(15 |
) |
138 |
|
(127 |
) |
(88 |
) |
|
|
(92 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,134 |
) |
(2 |
) |
(60 |
) |
|
|
|
|
(1,196 |
) |
Operating income (b) |
|
(1,171 |
) |
136 |
|
(187 |
) |
(88 |
) |
|
|
(1,310 |
) |
Equity in net income (loss) of affiliates and other items |
|
|
|
(12 |
) |
4 |
|
159 |
|
|
|
151 |
|
Tax on net operating income |
|
341 |
|
(82 |
) |
32 |
|
(106 |
) |
|
|
185 |
|
Net operating income (b) |
|
(830 |
) |
42 |
|
(151 |
) |
(35 |
) |
|
|
(974 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
(967 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
On operating income |
|
|
|
172 |
|
56 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
120 |
|
35 |
|
|
|
|
|
|
|
9 months 2012 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
16,177 |
|
68,948 |
|
64,945 |
|
145 |
|
|
|
150,215 |
|
Intersegment sales |
|
23,440 |
|
33,457 |
|
607 |
|
140 |
|
(57,644 |
) |
|
|
Excise taxes |
|
|
|
(2,634 |
) |
(10,729 |
) |
|
|
|
|
(13,363 |
) |
Revenues from sales |
|
39,617 |
|
99,771 |
|
54,823 |
|
285 |
|
(57,644 |
) |
136,852 |
|
Operating expenses |
|
(18,059 |
) |
(97,752 |
) |
(53,463 |
) |
(671 |
) |
57,644 |
|
(112,301 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(4,551 |
) |
(952 |
) |
(387 |
) |
(26 |
) |
|
|
(5,916 |
) |
Adjusted operating income |
|
17,007 |
|
1,067 |
|
973 |
|
(412 |
) |
|
|
18,635 |
|
Equity in net income (loss) of affiliates and other items |
|
1,633 |
|
168 |
|
(80 |
) |
104 |
|
|
|
1,825 |
|
Tax on net operating income |
|
(10,181 |
) |
(226 |
) |
(330 |
) |
(24 |
) |
|
|
(10,761 |
) |
Adjusted net operating income |
|
8,459 |
|
1,009 |
|
563 |
|
(332 |
) |
|
|
9,699 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(346 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(118 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
9,235 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
4.08 |
|
(a) Except for earnings per share.
9 months 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
14,100 |
|
1,371 |
|
793 |
|
56 |
|
|
|
16,320 |
|
Total divestments |
|
1,383 |
|
203 |
|
106 |
|
2,613 |
|
|
|
4,305 |
|
Cash flow from operating activities |
|
14,521 |
|
1,625 |
|
108 |
|
343 |
|
|
|
16,597 |
|
3rd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,479 |
|
21,260 |
|
21,074 |
|
(127 |
) |
|
|
46,686 |
|
Intersegment sales |
|
6,974 |
|
10,068 |
|
431 |
|
13 |
|
(17,486 |
) |
|
|
Excise taxes |
|
|
|
(975 |
) |
(3,683 |
) |
|
|
|
|
(4,658 |
) |
Revenues from sales |
|
11,453 |
|
30,353 |
|
17,822 |
|
(114 |
) |
(17,486 |
) |
42,028 |
|
Operating expenses |
|
(5,364 |
) |
(29,925 |
) |
(17,247 |
) |
44 |
|
17,486 |
|
(35,006 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,349 |
) |
(285 |
) |
(136 |
) |
(8 |
) |
|
|
(2,778 |
) |
Operating income |
|
3,740 |
|
143 |
|
439 |
|
(78 |
) |
|
|
4,244 |
|
Equity in net income (loss) of affiliates and other items |
|
1,506 |
|
75 |
|
64 |
|
(52 |
) |
|
|
1,593 |
|
Tax on net operating income |
|
(2,564 |
) |
(174 |
) |
(113 |
) |
(32 |
) |
|
|
(2,883 |
) |
Net operating income |
|
2,682 |
|
44 |
|
390 |
|
(162 |
) |
|
|
2,954 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(130 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(63 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
2,761 |
|
3rd quarter 2013 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(9 |
) |
|
|
|
|
|
|
|
|
(9 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(9 |
) |
|
|
|
|
|
|
|
|
(9 |
) |
Operating expenses |
|
(86 |
) |
(114 |
) |
41 |
|
|
|
|
|
(159 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(651 |
) |
(5 |
) |
|
|
|
|
|
|
(656 |
) |
Operating income (b) |
|
(746 |
) |
(119 |
) |
41 |
|
|
|
|
|
(824 |
) |
Equity in net income (loss) of affiliates and other items |
|
950 |
|
(5 |
) |
29 |
|
(30 |
) |
|
|
944 |
|
Tax on net operating income |
|
149 |
|
(162 |
) |
(10 |
) |
(34 |
) |
|
|
(57 |
) |
Net operating income (b) |
|
353 |
|
(286 |
) |
60 |
|
(64 |
) |
|
|
63 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(18 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
45 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
On operating income |
|
|
|
(114) |
|
71 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
(63) |
|
49 |
|
|
|
|
|
|
|
3rd quarter 2013 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
4,488 |
|
21,260 |
|
21,074 |
|
(127 |
) |
|
|
46,695 |
|
Intersegment sales |
|
6,974 |
|
10,068 |
|
431 |
|
13 |
|
(17,486 |
) |
|
|
Excise taxes |
|
|
|
(975 |
) |
(3,683 |
) |
|
|
|
|
(4,658 |
) |
Revenues from sales |
|
11,462 |
|
30,353 |
|
17,822 |
|
(114 |
) |
(17,486 |
) |
42,037 |
|
Operating expenses |
|
(5,278 |
) |
(29,811 |
) |
(17,288 |
) |
44 |
|
17,486 |
|
(34,847 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,698 |
) |
(280 |
) |
(136 |
) |
(8 |
) |
|
|
(2,122 |
) |
Adjusted operating income |
|
4,486 |
|
262 |
|
398 |
|
(78 |
) |
|
|
5,068 |
|
Equity in net income (loss) of affiliates and other items |
|
556 |
|
80 |
|
35 |
|
(22 |
) |
|
|
649 |
|
Tax on net operating income |
|
(2,713 |
) |
(12 |
) |
(103 |
) |
2 |
|
|
|
(2,826 |
) |
Adjusted net operating income |
|
2,329 |
|
330 |
|
330 |
|
(98 |
) |
|
|
2,891 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(130 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(45 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
2,716 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
1.19 |
|
(a) Except for earnings per share.
3rd quarter 2013 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
5,064 |
|
415 |
|
326 |
|
47 |
|
|
|
5,852 |
|
Total divestments |
|
2,114 |
|
8 |
|
44 |
|
22 |
|
|
|
2,188 |
|
Cash flow from operating activities |
|
4,765 |
|
840 |
|
1,287 |
|
62 |
|
|
|
6,954 |
|
3rd quarter 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
5,001 |
|
23,260 |
|
21,574 |
|
55 |
|
|
|
49,890 |
|
Intersegment sales |
|
7,455 |
|
11,168 |
|
154 |
|
47 |
|
(18,824 |
) |
|
|
Excise taxes |
|
|
|
(956 |
) |
(3,455 |
) |
|
|
|
|
(4,411 |
) |
Revenues from sales |
|
12,456 |
|
33,472 |
|
18,273 |
|
102 |
|
(18,824 |
) |
45,479 |
|
Operating expenses |
|
(5,265 |
) |
(31,908 |
) |
(17,835 |
) |
(242 |
) |
18,824 |
|
(36,426 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,779 |
) |
(321 |
) |
(136 |
) |
(10 |
) |
|
|
(3,246 |
) |
Operating income |
|
4,412 |
|
1,243 |
|
302 |
|
(150 |
) |
|
|
5,807 |
|
Equity in net income (loss) of affiliates and other items |
|
642 |
|
41 |
|
7 |
|
302 |
|
|
|
992 |
|
Tax on net operating income |
|
(2,969 |
) |
(351 |
) |
(80 |
) |
(120 |
) |
|
|
(3,520 |
) |
Net operating income |
|
2,085 |
|
933 |
|
229 |
|
32 |
|
|
|
3,279 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(125 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(72 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
3,082 |
|
3rd quarter 2012 (adjustments) (a) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
(8 |
) |
|
|
|
|
|
|
|
|
(8 |
) |
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from sales |
|
(8 |
) |
|
|
|
|
|
|
|
|
(8 |
) |
Operating expenses |
|
3 |
|
593 |
|
(42 |
) |
|
|
|
|
554 |
|
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,134 |
) |
(2 |
) |
(14 |
) |
|
|
|
|
(1,150 |
) |
Operating income (b) |
|
(1,139 |
) |
591 |
|
(56 |
) |
|
|
|
|
(604 |
) |
Equity in net income (loss) of affiliates and other items |
|
|
|
5 |
|
33 |
|
293 |
|
|
|
331 |
|
Tax on net operating income |
|
327 |
|
(230 |
) |
7 |
|
(90 |
) |
|
|
14 |
|
Net operating income (b) |
|
(812 |
) |
366 |
|
(16 |
) |
203 |
|
|
|
(259 |
) |
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(23 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
(282 |
) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
On operating income |
|
|
|
627 |
|
139 |
|
|
|
|
|
|
|
On net operating income |
|
|
|
444 |
|
94 |
|
|
|
|
|
|
|
3rd quarter 2012 (adjusted) |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Non-Group sales |
|
5,009 |
|
23,260 |
|
21,574 |
|
55 |
|
|
|
49,898 |
|
Intersegment sales |
|
7,455 |
|
11,168 |
|
154 |
|
47 |
|
(18,824 |
) |
|
|
Excise taxes |
|
|
|
(956 |
) |
(3,455 |
) |
|
|
|
|
(4,411 |
) |
Revenues from sales |
|
12,464 |
|
33,472 |
|
18,273 |
|
102 |
|
(18,824 |
) |
45,487 |
|
Operating expenses |
|
(5,268 |
) |
(32,501 |
) |
(17,793 |
) |
(242 |
) |
18,824 |
|
(36,980 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(1,645 |
) |
(319 |
) |
(122 |
) |
(10 |
) |
|
|
(2,096 |
) |
Adjusted operating income |
|
5,551 |
|
652 |
|
358 |
|
(150 |
) |
|
|
6,411 |
|
Equity in net income (loss) of affiliates and other items |
|
642 |
|
36 |
|
(26 |
) |
9 |
|
|
|
661 |
|
Tax on net operating income |
|
(3,296 |
) |
(121 |
) |
(87 |
) |
(30 |
) |
|
|
(3,534 |
) |
Adjusted net operating income |
|
2,897 |
|
567 |
|
245 |
|
(171 |
) |
|
|
3,538 |
|
Net cost of net debt |
|
|
|
|
|
|
|
|
|
|
|
(125 |
) |
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
(49 |
) |
Ajusted net income |
|
|
|
|
|
|
|
|
|
|
|
3,364 |
|
Adjusted fully-diluted earnings per share () |
|
|
|
|
|
|
|
|
|
|
|
1.48 |
|
(a) Except for earnings per share.
3rd quarter 2012 |
|
Upstream |
|
Refining & |
|
Marketing & |
|
Corporate |
|
Intercompany |
|
Total |
|
Total expenditures |
|
4,567 |
|
441 |
|
383 |
|
25 |
|
|
|
5,416 |
|
Total divestments |
|
401 |
|
55 |
|
41 |
|
1,138 |
|
|
|
1,635 |
|
Cash flow from operating activities |
|
3,457 |
|
1,036 |
|
692 |
|
(22 |
) |
|
|
5,163 |
|
9) Reconciliation of the information by business segment with consolidated financial statements
9 months 2013 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
141,828 |
|
(39 |
) |
141,789 |
|
Excise taxes |
|
(13,323 |
) |
|
|
(13,323 |
) |
Revenues from sales |
|
128,505 |
|
(39 |
) |
128,466 |
|
Purchases net of inventory variation |
|
(89,530 |
) |
(712 |
) |
(90,242 |
) |
Other operating expenses |
|
(15,902 |
) |
(155 |
) |
(16,057 |
) |
Exploration costs |
|
(1,147 |
) |
|
|
(1,147 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(6,219 |
) |
(660 |
) |
(6,879 |
) |
Other income |
|
270 |
|
1,257 |
|
1,527 |
|
Other expense |
|
(264 |
) |
(1,523 |
) |
(1,787 |
) |
Financial interest on debt |
|
(510 |
) |
|
|
(510 |
) |
Financial income from marketable securities & cash equivalents |
|
45 |
|
|
|
45 |
|
Cost of net debt |
|
(465 |
) |
|
|
(465 |
) |
Other financial income |
|
398 |
|
|
|
398 |
|
Other financial expense |
|
(418 |
) |
|
|
(418 |
) |
Equity in net income (loss) of affiliates |
|
1,961 |
|
(9 |
) |
1,952 |
|
Income taxes |
|
(8,774 |
) |
413 |
|
(8,361 |
) |
Consolidated net income |
|
8,415 |
|
(1,428 |
) |
6,987 |
|
Group share |
|
8,278 |
|
(1,443 |
) |
6,835 |
|
Non-controlling interests |
|
137 |
|
15 |
|
152 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
9 months 2012 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
150,215 |
|
(22 |
) |
150,193 |
|
Excise taxes |
|
(13,363 |
) |
|
|
(13,363 |
) |
Revenues from sales |
|
136,852 |
|
(22 |
) |
136,830 |
|
Purchases net of inventory variation |
|
(95,172 |
) |
228 |
|
(94,944 |
) |
Other operating expenses |
|
(16,187 |
) |
(320 |
) |
(16,507 |
) |
Exploration costs |
|
(942 |
) |
|
|
(942 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(5,916 |
) |
(1,196 |
) |
(7,112 |
) |
Other income |
|
447 |
|
541 |
|
988 |
|
Other expense |
|
(314 |
) |
(362 |
) |
(676 |
) |
Financial interest on debt |
|
(511 |
) |
|
|
(511 |
) |
Financial income from marketable securities & cash equivalents |
|
67 |
|
|
|
67 |
|
Cost of net debt |
|
(444 |
) |
|
|
(444 |
) |
Other financial income |
|
435 |
|
|
|
435 |
|
Other financial expense |
|
(389 |
) |
|
|
(389 |
) |
Equity in net income (loss) of affiliates |
|
1,646 |
|
(28 |
) |
1,618 |
|
Income taxes |
|
(10,663 |
) |
185 |
|
(10,478 |
) |
Consolidated net income |
|
9,353 |
|
(974 |
) |
8,379 |
|
Group share |
|
9,235 |
|
(967 |
) |
8,268 |
|
Non-controlling interests |
|
118 |
|
(7 |
) |
111 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
3rd quarter 2013 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
46,695 |
|
(9 |
) |
46,686 |
|
Excise taxes |
|
(4,658 |
) |
|
|
(4,658 |
) |
Revenues from sales |
|
42,037 |
|
(9 |
) |
42,028 |
|
Purchases net of inventory variation |
|
(29,325 |
) |
(43 |
) |
(29,368 |
) |
Other operating expenses |
|
(4,954 |
) |
(116 |
) |
(5,070 |
) |
Exploration costs |
|
(568 |
) |
|
|
(568 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,122 |
) |
(656 |
) |
(2,778 |
) |
Other income |
|
139 |
|
1,005 |
|
1,144 |
|
Other expense |
|
(90 |
) |
(71 |
) |
(161 |
) |
Financial interest on debt |
|
(159 |
) |
|
|
(159 |
) |
Financial income from marketable securities & cash equivalents |
|
9 |
|
|
|
9 |
|
Cost of net debt |
|
(150 |
) |
|
|
(150 |
) |
Other financial income |
|
138 |
|
|
|
138 |
|
Other financial expense |
|
(153 |
) |
|
|
(153 |
) |
Equity in net income (loss) of affiliates |
|
615 |
|
10 |
|
625 |
|
Income taxes |
|
(2,806 |
) |
(57 |
) |
(2,863 |
) |
Consolidated net income |
|
2,761 |
|
63 |
|
2,824 |
|
Group share |
|
2,716 |
|
45 |
|
2,761 |
|
Non-controlling interests |
|
45 |
|
18 |
|
63 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
3rd quarter 2012 |
|
Adjusted |
|
Adjustments (a) |
|
Consolidated |
|
Sales |
|
49,898 |
|
(8 |
) |
49,890 |
|
Excise taxes |
|
(4,411 |
) |
|
|
(4,411 |
) |
Revenues from sales |
|
45,487 |
|
(8 |
) |
45,479 |
|
Purchases net of inventory variation |
|
(31,375 |
) |
766 |
|
(30,609 |
) |
Other operating expenses |
|
(5,288 |
) |
(212 |
) |
(5,500 |
) |
Exploration costs |
|
(317 |
) |
|
|
(317 |
) |
Depreciation, depletion and amortization of tangible assets and mineral interests |
|
(2,096 |
) |
(1,150 |
) |
(3,246 |
) |
Other income |
|
142 |
|
332 |
|
474 |
|
Other expense |
|
(114 |
) |
(15 |
) |
(129 |
) |
Financial interest on debt |
|
(154 |
) |
|
|
(154 |
) |
Financial income from marketable securities & cash equivalents |
|
8 |
|
|
|
8 |
|
Cost of net debt |
|
(146 |
) |
|
|
(146 |
) |
Other financial income |
|
141 |
|
|
|
141 |
|
Other financial expense |
|
(135 |
) |
|
|
(135 |
) |
Equity in net income (loss) of affiliates |
|
627 |
|
14 |
|
641 |
|
Income taxes |
|
(3,513 |
) |
14 |
|
(3,499 |
) |
Consolidated net income |
|
3,413 |
|
(259 |
) |
3,154 |
|
Group share |
|
3,364 |
|
(282 |
) |
3,082 |
|
Non-controlling interests |
|
49 |
|
23 |
|
72 |
|
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
10) Sales by business segment
|
|
|
|
Refining & |
|
Marketing & |
|
|
|
|
|
|
|
(M) |
|
Upstream |
|
Chemicals |
|
Services |
|
Corporate |
|
Intercompany |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st quarter 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
5,452 |
|
21,618 |
|
20,999 |
|
61 |
|
|
|
48,130 |
|
Intersegment sales |
|
7,335 |
|
9,914 |
|
108 |
|
51 |
|
(17,408 |
) |
|
|
Excise taxes |
|
|
|
(830 |
) |
(3,366 |
) |
|
|
|
|
(4,196 |
) |
Revenues from sales |
|
12,787 |
|
30,702 |
|
17,741 |
|
112 |
|
(17,408 |
) |
43,934 |
|
2nd quarter 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
4,781 |
|
21,560 |
|
20,561 |
|
71 |
|
|
|
46,973 |
|
Intersegment sales |
|
6,519 |
|
9,807 |
|
806 |
|
27 |
|
(17,159 |
) |
|
|
Excise taxes |
|
|
|
(835 |
) |
(3,634 |
) |
|
|
|
|
(4,469 |
) |
Revenues from sales |
|
11,300 |
|
30,532 |
|
17,733 |
|
98 |
|
(17,159 |
) |
42,504 |
|
3rd quarter 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
4,479 |
|
21,260 |
|
21,074 |
|
(127 |
) |
|
|
46,686 |
|
Intersegment sales |
|
6,974 |
|
10,068 |
|
431 |
|
13 |
|
(17,486 |
) |
|
|
Excise taxes |
|
|
|
(975 |
) |
(3,683 |
) |
|
|
|
|
(4,658 |
) |
Revenues from sales |
|
11,453 |
|
30,353 |
|
17,822 |
|
(114 |
) |
(17,486 |
) |
42,028 |
|
9 months 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
14,712 |
|
64,438 |
|
62,634 |
|
5 |
|
|
|
141,789 |
|
Intersegment sales |
|
20,828 |
|
29,789 |
|
1,345 |
|
91 |
|
(52,053 |
) |
|
|
Excise taxes |
|
|
|
(2,640 |
) |
(10,683 |
) |
|
|
|
|
(13,323 |
) |
Revenues from sales |
|
35,540 |
|
91,587 |
|
53,296 |
|
96 |
|
(52,053 |
) |
128,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st quarter 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
6,177 |
|
23,096 |
|
21,852 |
|
43 |
|
|
|
51,168 |
|
Intersegment sales |
|
8,234 |
|
11,815 |
|
231 |
|
45 |
|
(20,325 |
) |
|
|
Excise taxes |
|
|
|
(804 |
) |
(3,588 |
) |
(1 |
) |
|
|
(4,393 |
) |
Revenues from sales |
|
14,411 |
|
34,107 |
|
18,495 |
|
87 |
|
(20,325 |
) |
46,775 |
|
2nd quarter 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
4,977 |
|
22,592 |
|
21,519 |
|
47 |
|
|
|
49,135 |
|
Intersegment sales |
|
7,751 |
|
10,474 |
|
222 |
|
48 |
|
(18,495 |
) |
|
|
Excise taxes |
|
|
|
(874 |
) |
(3,686 |
) |
1 |
|
|
|
(4,559 |
) |
Revenues from sales |
|
12,728 |
|
32,192 |
|
18,055 |
|
96 |
|
(18,495 |
) |
44,576 |
|
3rd quarter 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
5,001 |
|
23,260 |
|
21,574 |
|
55 |
|
|
|
49,890 |
|
Intersegment sales |
|
7,455 |
|
11,168 |
|
154 |
|
47 |
|
(18,824 |
) |
|
|
Excise taxes |
|
|
|
(956 |
) |
(3,455 |
) |
|
|
|
|
(4,411 |
) |
Revenues from sales |
|
12,456 |
|
33,472 |
|
18,273 |
|
102 |
|
(18,824 |
) |
45,479 |
|
9 months 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Group sales |
|
16,155 |
|
68,948 |
|
64,945 |
|
145 |
|
|
|
150,193 |
|
Intersegment sales |
|
23,440 |
|
33,457 |
|
607 |
|
140 |
|
(57,644 |
) |
|
|
Excise taxes |
|
|
|
(2,634 |
) |
(10,729 |
) |
|
|
|
|
(13,363 |
) |
Revenues from sales |
|
39,595 |
|
99,771 |
|
54,823 |
|
285 |
|
(57,644 |
) |
136,830 |
|
11) Changes in progress in the Group structure
Ø Upstream
· TOTAL announced in November 2012 the finalization of an agreement for the sale in Nigeria of its 20% interest in block OML 138 to a subsidiary of China Petrochemical Corporation (Sinopec). This transaction remains subject to the approval by the relevant authorities. At September 30, 2013 the assets and liabilities have been respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of 1,838 million and liabilities directly associated with the assets classified as held for sale for an amount of 623 million. The assets concerned mainly include tangible assets for an amount of 1,427 million.
· TOTAL has put up for sale its interest in block 15/06 in Angola. At September 30, 2013 the assets and liabilities have been respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of 466 million and liabilities directly associated with the assets classified as held for sale for an amount of 16 million. The assets concerned mainly include tangible assets for an amount of 395 million.
12) Post-closing and other events
· On September 4 Total announced a project to restore the competitiveness of the platform Carling (France). This project plans to make Carling the European center for hydrocarbon resins for the Group (Cray Valley) and a leading European polymers plant. The objective is to adapt Carling to the realities of the market and shut down in the second half of 2015 the activities of the steam cracker that are structurally loss-making.
The project is currently subject to the legal process of notifying and consulting employee representatives of Total. The costs should be recorded in the fourth quarter 2013 financial statements.
· In October, a consortium in which TOTAL holds a 20% interest has been awarded a 35 year production sharing contract to develop the Libra oil field in Brazil. Total will pay a signing bonus of 3 billion Brazilian Reais (approximately $1.4 billion). This contract is expected to be signed in November 2013.
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL announces its interim dividend for the third quarter 2013
On October 31, 2013, TOTAL S.A. (TOTAL) announced that its Board of Directors had approved a third quarter 2013 interim dividend of 0.59 per share, unchanged versus the previous quarter, and payable in euros according to the following timetable:
· Ex-dividend date: March 24, 2014
· Record date: March 26, 2014
· Payment date: March 27, 2014
American Depositary Receipts (ADRs) will receive the third quarter 2013 interim dividend in dollars based on the then-prevailing exchange rate according to the following timetable:
· Ex-dividend date: March 19, 2014
· Record date: March 21, 2014
· Payment date: April 11, 2014
Registered ADR holders may also contact The Bank of New York Mellon for additional information. Non-registered ADR holders should contact their broker, financial intermediary, bank, or financial institution for additional information.
Fort Hills development strengthens TOTALs position in Canada
On October 31, 2013, TOTAL announced that it had reached a final investment decision to develop the Fort Hills oil sands mining project in Alberta, Canada, located some 90 kilometers north of Fort McMurray.
Production from Fort Hills is expected to start by end-2017 and to gradually reach the plateau of 180,000 barrels per day (b/d). The estimated cost to develop the project over the next 4 years is approximately CAD$13.5 billion (approximately 9.4 billion).
TOTAL holds a 39.2% interest in the project with Suncor Energy (40.8%, operator) and Teck Resources (20%).
TOTAL announces the Mirawa discovery in the Kurdistan region of Iraq
On October 30, 2013, TOTAL announced that the Mirawa-1 discovery well, which is located 60 kilometers from the city of Erbil on the Harir Block, was drilled to a depth of 4,260 meters and encountered substantial oil and natural gas columns, with gross intervals of 300 meters of oil shows in the Jurassic and 800 meters of gas shows in the Triassic.
Mirawa-1 encountered light oil of 39-45° API in two Jurassic carbonate reservoirs that were successfully tested. Three drill-stem tests were conducted, with flow rates between 3,200 and 3,900 b/d. Three other formation tests confirmed the presence of gas and condensate reservoirs in the Triassic. Choked drill-stem tests flowed at approximately 20-30 million cubic feet per day and one of the formations also flowed at 1,700 b/d of condensate.
The Mirawa-1 discovery illustrates TOTALs bold strategy of exploring high-risk, high-reward prospects, especially in foothills areas.
TOTAL has a 35% working interest in the Harir Block, with Marathon Oil (45%, operator) and the Kurdistan Regional Government (20%).
Norway: Ekofisk South brought on stream in the North Sea
On October 28, 2013, TOTAL S.A. (TOTAL) announced the start-up of oil production from the Ekofisk South project in the Norwegian part of the North Sea on October 25, 2013, approximately two months ahead of schedule. The project will increase oil recovery in the Ekofisk field, located in the PL 018 license where TOTAL holds a 39.9% interest.
The production capacity at the Ekofisk South platform is 70,000 barrels of oil equivalent per day (boe/d). The project includes the drilling of 35 new production wells and eight injection wells.
The plan for development and operation of the Ekofisk South project was approved by the Norwegian Parliament in June 2011, together with the plan for the nearby Eldfisk II project in the same license, where production start-up is scheduled for early 2015.
Ekofisk was discovered in 1969 and is located approximately 300 kilometers off the Norwegian coast.
The PL 018 partners are TOTAL (39.9%), ConocoPhillips (35.11%, operator), Eni (12.39%), Statoil (7.6%) and Petoro (5%).
TOTAL sanctions Vega Pleyade offshore field development in Tierra Del Fuego, Argentina
On October 24, 2013, TOTAL (operator, 37.5%) announced that it has made the final investment decision to develop the offshore Vega Pleyade gas and condensate field.
Vega Pleyade will produce through three horizontal wells. Together with production from the other TOTAL-operated fields in the area, it is expected to allow the optimization of supply to the existing treatment plants and the continuation of the plateau production of 18 million cubic meters per day (130,000 boe/d).
Vega Pleyade is located offshore Tierra del Fuego in the Cuenca Marina Austral 1 (CMA-1) concession that TOTAL has operated since 1978. The field development plan consists of a wellhead platform in 50 meters of water depth that will be tied in to the TOTAL-operated onshore Rio Cullen and Cañadon Alfa treatment plants by a 77 kilometer pipeline.
Separately, TOTAL plans to begin offshore drilling in 2014, both to boost production from the Carina field, which started up in 2005, and to appraise the CMA-1 block.
Brazil: TOTAL awarded 20% interest in the super-giant Libra field in the Santos basin
On October 21, 2013, TOTAL, as part of a consortium comprised of Petrobras, Shell, CNPC and CNOOC, has been awarded a 35-year production sharing contract to develop the super-giant Libra field with a total gross peak oil production that could reach 1.4 million b/d as per the Brazilian regulator, Agência Nacional do Petróleo (ANP).
The Libra field is the largest pre-salt oil discovery to date in the prolific Santos basin, offshore Brazil. The field is located approximately 170 km off the coast of Rio de Janeiro. It covers an area of 1,550 square kilometers in water depths of around 2,000 meters.
TOTAL holds 20% in the consortium, with Petrobras holding 40% as operator, Shell holding 20%, CNPC holding 10% and CNOOC holding 10%. The project will be developed through a joint project team bringing together Petrobras world class knowledge and experience of pre-salt carbonates and TOTAL and Shells expertise and skills in deep-water and large project management.
As part of the winning bid, TOTAL will pay 3 billion Brazilian reais (approximately 1 billion) as its 20% share of the signing bonus. In addition to the signing bonus, the consortium will have to conduct a minimum work program consisting of 3D seismic, 2 wells and an extended well test to be completed by no later than the end of 2017.
TOTAL acquires offshore exploration interests in South Africa
On September 30, 2013, TOTAL announced that it had received approval from the South African authorities and completed the acquisition of a 50% interest in Block 11B/12B from CNR International (South Africa) Ltd., a wholly owned subsidiary of Canadian Natural Resources Limited.
The asset is located in the Outeniqua basin, around 175 kilometers off the southern coast of the country, and covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
TOTAL also becomes Operator of Block 11B/12B and plans to drill an exploration well on the block in 2014.
TOTAL sells E&P assets to National Gas Company of Trinidad & Tobago
On September 30, 2013, TOTAL announced the transfer to The National Gas Company of Trinidad &Tobago of all of its E&P assets in Trinidad &Tobago through the sale of Total E&P Trinidad B.V and Elf Exploration Trinidad B.V. for a net amount of $317 million (235 million).
These entities hold a 30% working interest in Block 2(c) (which includes the producing Angostura field) and 8.5% in Block 3(a). TOTALs share of production was around 15,000 boe/d.
Following Cameroon, France and Colombia, Trinidad & Tobago is the fourth country in which TOTAL has divested its Upstream producing assets to focus on other areas where the Group sees higher growth potential.
Jubail platform in Saudi Arabia ships first cargo of refined products
On September 26, 2013, SATORP, a joint venture between Saudi Aramco (62.5%) and TOTAL (37.5%), began shipping refined products from the Jubail complex in Saudi Arabia. Saudi Aramco loaded a first shipment of heavy fuel oil at the Jubail oil terminal on September 23. The next shipment will be a cargo of diesel lifted by TOTAL in late September.
Commissioning of the SATORP refinery and petrochemical complex commenced several weeks ago.
SATORP has been producing commercial-grade fuel oil and diesel since September 13. Crude oil is being processed into naphtha, diesel and heavy fuel oil in the first atmospheric distillation units on line.
The facilitys size and complexity mean that commissioning will be a months-long process, during which units will be started up in stages.
As more conversion units come on stream, the products will undergo more complex processes and the amount of crude oil refined will ramp up.
Construction work on Jubail commenced in early April 2010. All units are scheduled to be up and running by end-2013.
The full-conversion Jubail complex is designed to refine 400,000 b/d (or around 20 million tons per year) of oil to produce high-grade automotive fuel.
The complex also includes integrated petrochemical units to produce benzene, paraxylene and propylene. The feedstock is Arab Heavy crude oil from the nearby Safaniya and Manifa fields.
TOTAL and Etrion to build worlds largest solar merchant project in Chile TOTAL, Sunpower and Etrion partner to build, own and operate 70 MWp solar power plant in Chile with financing secured from U.S. Overseas Private Investment Corporation
On September 26, 2013, TOTAL and Etrion Corporation (Etrion) (TSX: ETX / OMX: ETX) announced the planned construction of Project Salvador, the worlds largest solar power project based on spot market electricity (merchant) revenues.
Project Salvador consists of a 70 megawatt-peak (MWp) photovoltaic power plant in the Atacama region of Chile. Pursuant to the terms of the related purchase agreement, Etrion, TOTAL and Solventus Energías Renovables (Solventus) will own 70%, 20%, and 10% interests, respectively, in the project. The total project cost of approximately US$200 million will be financed 70% through non-recourse project debt from the Overseas Private Investment Corporation (OPIC), a development finance institution of the U.S. government. The remaining 30% equity portion will be funded by Etrion, TOTAL and Solventus, based on their respective ownership interests.
Project Salvador will be built by TOTALs affiliate, SunPower Corporation (SunPower) (NASDAQ: SPWR), a U.S. solar energy leader. Project Salvador will also enter into a long-term fixed price operation and maintenance agreement with SunPower.
The company in which Etrion, TOTAL and Solventus will hold their respective ownership interests holds the licenses, land rights and permits necessary to build, own and operate Project Salvador. Project Salvador is expected to initially operate on a merchant basis where the electricity produced will be sold on the spot market and delivered to the Sistema Interconectado Central (SIC) electricity network, with the ability to secure future power purchase agreements (PPAs). The solar power plant will be built on 133 hectares leased from the Chilean government through a long-term concession. The facility will connect through the power infrastructure of Corporación Nacional del Cobre de Chile (Codelco).
Construction is expected to start during the fourth quarter of 2013, and Project Salvador is expected to be operational by the first quarter of 2015. SunPower will install their SunPower Oasis Power Blocks system, a fully integrated solution utilizing SunPowers high efficiency solar panels and single-axis trackers.
Once operational, Project Salvador is expected to produce approximately 200 gigawatt-hours of solar electricity per year, enough to supply electricity to approximately 60,000 people in Chile.
TOTAL launches the development of Incahuasi in Bolivia
On September 25, 2013, TOTAL announced the final investment decision for a first development phase of the Incahuasi gas and condensate field in Bolivia, following the successful drilling results of the ICS-2 exploration well.
Located on the Ipati Block 250 kilometers southwest of Santa Cruz in the Andean foothills, the development, operated by TOTAL, will involve 3 wells (one on the Aquio block and two on the Ipati block), a gas treatment plant with a capacity of 6.5 Mm3/d and associated export pipelines. First gas is expected in 2016, of which a large portion will be exported.
The ICS-2 well, drilled to a depth of 5,636 meters, is the second successful exploration well on the Ipati Block. The results of two recent tests on this well proved a hydrocarbon column of around 1,100 meters in the Devonian Huamampampa fractured sandstones reservoir.
TOTAL plans several more exploration and appraisal wells on the Ipati and Aquio blocks to prove the substantial additional potential of the Incahuasi field. TOTAL also plans to commence exploration activities on the neighboring Azero block following the recent signature of an agreement with national energy company YPFB and Gazprom.
TOTAL, outlook and objectives
On September 23, 2013, Christophe de Margerie, Chairman and CEO of TOTAL, presented to the financial community TOTALs outlook and objectives for the coming years as well as the social and environmental strategy of the Group.
The key messages include:
· Major project start ups and end of intensive investment phase
To grow the company and create value, TOTAL launched a program of intensive Upstream investments several years ago. The programs benefits are being realized through the start up of major projects from now to 2017, like Kashagan in Kazakhstan, which began producing September 11. The Group anticipates investments to trend down starting in 2014 as it enters a growth phase for production and free cash flow.
· Growth of free cash flow
The Group anticipates a strong increase in cash flow from Upstream start-ups and downstream restructuring. This increase in cash flow combined with the decrease in investments to more moderate levels should generate notable growth of free cash flow.
· 2.6 Mboe/d target in 2015 and potential for 3 Mboe/d in 2017
In the Upstream, the Group plans to start up numerous projects in the coming months (Ekofisk South, CLOV, Laggan-Tormore, Ofon 2, ) and confirms its production growth targets. In parallel, the bold exploration program continues with more than 15 high-potential wells planned from now to the end of 2014, notably in the Gulf of Mexico, Iraq, Brazil and Angola.
· First results from restructuring Refining & Chemicals
In Refining & Chemicals, the ongoing restructuring has begun to bear fruit, and profitability is increasing toward the target of 13% return on average capital employed set for 2015, using the 2010 market parameters. TOTAL is optimizing its European portfolio, recently by launching a project to adapt its Carling plant. The Group is also continuing to develop its major integrated platforms, notably SATORP in Jubail, Saudi Arabia, which has recently started up.
· Adaptation and expansion of Marketing & Services
In Marketing & Services, the investment program approved by management will allow the Group to adapt its positions in Europe and expand in growing markets, particularly in Africa and the Middle East, where the Group is a leader today. During this investment phase, the profitability of Marketing & Services is expected to be maintained.
· Corporate social responsibility (CSR), creating opportunities for TOTAL
In addition to improving risk management, the integration of CSR at the heart of TOTALs operations stands out as a source of value creation for the Group and for its stakeholders. The Groups commitment to CSR is recognized by, among others, the Dow Jones Sustainability Indices, which selected TOTAL as the only major oil company to be part of the index for 10 consecutive years.
In keeping with the targets for sustainable growth and the strong visibility on the future, Christophe de Margerie confirms his commitment in favor of a policy of competitive returns to shareholders.
TOTALs project for the Carling platforms future
On September 4, 2013, TOTAL announced that it intends to invest 160 million before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness.
TOTAL plans to develop new activities on the platform in the growing markets for hydrocarbon resins (Cray Valley) and for polymers, while shutting down the acutely loss-making steam cracker in the second half of 2015.
In this way, Carling should become a leading European center in the hydrocarbon resins and polymers market.
TOTAL intends to carry out this industrial redeployment plan without any redundancies. The Group has made a firm commitment to provide each employee concerned with a satisfactory solution tailored to his or her situation. Of the 554 jobs at the Carling site, 344 will be maintained on the platform as from 2016, including 110 created by the new production units.
Under French law, the project is subject to the process of notifying and consulting employee representatives.
Forward-looking statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTALs future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTALs ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
· material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals;
· changes in currency exchange rates and currency devaluations;
· the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL;
· uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;
· uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals;
· changes in the current capital expenditure plans of TOTAL;
· the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;
· the financial resources of competitors;
· changes in laws and regulations, including tax and environmental laws and industrial safety regulations;
· the quality of future opportunities that may be presented to or pursued by TOTAL;
· the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally;
· the ability to obtain governmental or regulatory approvals;
· the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters;
· the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;
· changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities;
· the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and
· the risk that TOTAL will inadequately hedge the price of crude oil or finished products.
For additional factors, you should read the information set forth under Item 3. Risk Factors, Item 4. Information on the Company Other Matters, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures about Market Risk in TOTALs Form 20-F for the year ended December 31, 2012.
Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. and its subsidiaries and affiliates (collectively, TOTAL or the Group), computed in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union, for the nine months ended September 30, 2013 and 2012 and the fiscal years ended December 31, 2012, 2011, 2010, 2009 and 2008.
|
|
Nine Months Ended |
|
Years Ended December 31, |
| ||||||||||
|
|
2013 |
|
2012* |
|
2012* |
|
2011* |
|
2010 |
|
2009 |
|
2008 |
|
For the Group (IFRS) |
|
19.75 |
|
25.93 |
|
24.38 |
|
27.36 |
|
29.11 |
|
21.11 |
|
20.86 |
|
* Figures for 2012 and 2011 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013.
Earnings for the computations above under IFRS were calculated by adding pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, fixed charges and distributed income of equity investees. Fixed charges for the computations above consist of interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense and that portion of rental expense representative of the interest factor.
CAPITALIZATION AND INDEBTEDNESS OF TOTAL
(Unaudited)
The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of the Group as of September 30, 2013, prepared on the basis of IFRS.
|
|
At September 30, |
|
|
|
(in millions of euros) |
|
Current financial debt, including current portion of non-current financial debt |
|
|
|
Current portion of non-current financial debt |
|
4,472 |
|
Current financial debt |
|
3,737 |
|
Current portion of financial instruments for interest rate swaps liabilities |
|
10 |
|
Other current financial instruments liabilities |
|
32 |
|
Financial liabilities directly associated with assets held for sale |
|
0 |
|
|
|
|
|
Total current financial debt |
|
8,251 |
|
|
|
|
|
Non-current financial debt |
|
25,128 |
|
Non-controlling interests |
|
1,724 |
|
Shareholders equity |
|
|
|
Common shares |
|
5,943 |
|
Paid-in surplus and retained earnings |
|
73,144 |
|
Currency translation adjustment |
|
(3,224 |
) |
Treasury shares |
|
(3,379 |
) |
|
|
|
|
Total shareholders equity |
|
72,484 |
|
|
|
|
|
Total capitalization and non-current indebtedness |
|
99,336 |
|
As of September 30, 2013, TOTAL had an authorized share capital of 3,417,510,048 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,377,196,179 ordinary shares (including 109,215,198 treasury shares from shareholders equity).
As of September 30, 2013, approximately 426 million of TOTALs non-current financial debt was secured and approximately 24,702 million was unsecured, and all of TOTALs current financial debt of 3,737 million was unsecured. As of September 30, 2013, TOTAL had no outstanding guarantees from third parties relating to its consolidated indebtedness. For more information about TOTALs commitments and contingencies, see note 23 of the notes to TOTALs audited consolidated financial statements in its Annual Report on Form 20-F for the year ended December 31, 2012, filed with the SEC on March 28, 2013.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since September 30, 2013.
Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
|
|
Nine Months |
|
Years Ended December 31, |
| ||||||||||
(Amounts in millions of euros) |
|
2013 |
|
2012 |
|
2012 |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income* |
|
6, 835 |
|
8,268 |
|
10,609 |
|
12,309 |
|
10,571 |
|
8,447 |
|
10,590 |
|
Income tax expenses* |
|
8,361 |
|
10,478 |
|
13,035 |
|
14,091 |
|
10,228 |
|
7,751 |
|
14,146 |
|
Non-controlling interests |
|
152 |
|
111 |
|
147 |
|
305 |
|
236 |
|
182 |
|
363 |
|
Equity in income of affiliates (in excess of)/ less than dividends received |
|
(511 |
) |
92 |
|
211 |
|
(107 |
) |
(470 |
) |
(378 |
) |
(311 |
) |
Interest expensed |
|
407 |
|
413 |
|
504 |
|
619 |
|
416 |
|
450 |
|
779 |
|
Estimate of the interest within rental expense |
|
195 |
|
161 |
|
260 |
|
215 |
|
202 |
|
204 |
|
142 |
|
Amortization of capitalized interest |
|
126 |
|
133 |
|
177 |
|
201 |
|
239 |
|
129 |
|
115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total* |
|
15,565 |
|
19,656 |
|
24,943 |
|
27,633 |
|
21,422 |
|
16,785 |
|
25,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expensed |
|
407 |
|
413 |
|
504 |
|
619 |
|
416 |
|
450 |
|
779 |
|
Capitalized interest |
|
186 |
|
184 |
|
259 |
|
176 |
|
118 |
|
141 |
|
317 |
|
Estimate of the interest within rental expense |
|
195 |
|
161 |
|
260 |
|
215 |
|
202 |
|
204 |
|
142 |
|
Preference security dividend requirements of consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed charges |
|
788 |
|
758 |
|
1,023 |
|
1,010 |
|
736 |
|
795 |
|
1,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of earnings to fixed charges* |
|
19.75 |
|
25.93 |
|
24.38 |
|
27.36 |
|
29.11 |
|
21.11 |
|
20.86 |
|
* Figures for 2012 and 2011 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013.