EXHIBIT 99.6
Press
Release
Fourth quarter and full-year 2020 results
Total resists crisis and accelerates
its transformation
Total will propose to shareholders changing
its name to TotalEnergies
| |
4Q20 |
Change
vs 4Q19 |
2020 |
Change
vs 2019 |
| Oil
price - Brent ($/b) |
44.2 |
-30% |
41.8 |
-35% |
| European
gas price - NBP ($/Mbtu) |
5.6 |
+10% |
3.3 |
-31% |
| Adjusted
net income (Group share)1 |
|
|
|
|
| -
in billions of dollars (B$) |
1.30 |
-59% |
4.06 |
-66% |
| -
in dollars per share |
0.46 |
-61% |
1.43 |
-67% |
| |
|
|
|
|
| DACF1
(B$) |
4.9 |
-33% |
17.6 |
-37% |
| Cash
Flow from operations (B$) |
5.7 |
-14% |
14.8 |
-40% |
Net income (Group share) of 891 M$ in 4Q20
Net-debt-to-capital
ratio of 21.7% at December 31, 2020 vs. 22.0% at September 30, 20202
Hydrocarbon
production of 2,841 kboe/d in 4Q20, a decrease of 9% compared to 4Q19
Fourth quarter 2020 dividend set at 0.66 €/share |
Paris,
February 9, 2021 – Total SE’s Board of Directors met on February 8, 2021, under the chairmanship
of CEO Patrick Pouyanné to approve the Group’s 2020 financial statements. On this occasion, Patrick Pouyanné
said:
“The Group’s fourth quarter
results rebounded from the previous quarter in a context where oil prices stabilized above $40 per barrel, thanks to strong OPEC+
discipline, and where gas prices rose sharply in Europe and Asia, but where refining margins remained depressed, still affected
by low demand and high inventories. In this context, the Group demonstrates its ability to benefit from an overall more favorable
environment with adjusted net income up by more than 50% to $1.3 billion and cash flow (DACF) of $4.9 billion.
Total faced two major crises in 2020:
the Covid-19 pandemic that severely affected global energy demand, and the oil crisis that drove the Brent price below $20 per
barrel in the second quarter. In this particularly difficult context, the Group implemented an immediate action plan and proved
its resilience thanks to the quality of its portfolio (production cost of $5.1 per boe, the lowest among its peers) and its integrated
model with cash flow (DACF) generation of nearly $18 billion. It posted adjusted net income of $4.1 billion and, thanks to strong
discipline on investments ($13 billion, down 26%) and costs ($1.1 billion in savings), the organic cash breakeven was $26 per barrel.
Consistent with its climate ambition, the Group recorded exceptional asset impairments of $10 billion, notably on Canadian oil
sands assets, most of which were recorded in its accounts at the end of June, leading to an IFRS loss for the year of $7.2 billion.
2020 represents a pivoting year for the
Group’s strategy with the announcement of its ambition to get to Net Zero, together with society. The Group affirms its plan
to transform itself into a broad energy company to meet the dual challenge of the energy transition: more energy, less emissions.
Thus, the Group’s profile will be transformed over the 2020-30 decade: the growth of energy production will be based on two
pillars, LNG and Renewables & Electricity, while oil products are expecting to fall from 55% to 30% of sales. To anchor
this transformation, the Group will propose to its shareholders at the Annual General Meeting on May 28, 2021, changing its
name to TotalEnergies. They will hence have the opportunity to endorse this strategy and the underlying ambition to transition
to carbon neutrality.
In 2020, Total secured its investments
in Renewables & Electricity ($2 billion) and accelerated the implementation of its strategy to grow renewables, adding
10 GW to its portfolio. With the acquisition at the start of 2021 of a 20% stake in Adani Green Energy Limited (AGEL), the largest
solar developer in the world, and of portfolios of projects in the United States, the Group now has a portfolio of gross installed
capacity, under construction and in development of 35 GW by 2025 with more than 20 GW already benefiting from long-term power purchase
agreements.
Total preserves
its financial strength with a gearing of 21.7% at the end of 2020. Confident in the Group’s fundamentals, the Board of Directors
confirms its policy of supporting the dividend through economic cycles. Therefore, it will propose at the Annual General Meeting
of Shareholders on May 28, 2021, the distribution of a final dividend of 0.66 € per share, equal to the previous three
quarters, and set the dividend for 2020 at 2.64 € per share.”
1 Definition page 3.
2 Excluding leases.
Highlights3
Sustainability
| · | Strengthened the Group’s commitment
to reduce methane emissions with initiative OGMP 2.0 |
| · | Withdrew from the American Petroleum Institute |
| · | Total once again selected in 2020 in the
Dow Jones Sustainability Indices |
Renewables and electricity
Renewables
| · | Acquired in India a 20% minority interest
in Adani Green Energy Limited (AGEL), the largest solar developer in the world |
| · | Acquired Fonroche Biogaz in France, making
Total the leader in renewable gas production in France |
| · | Agreed with 174 Power Global, a subsidiary
of Hanwha, to develop a portfolio of 1.6 GW of solar and energy storage projects in the United States |
| · | Acquired a 2.2 GW portfolio of solar and
energy storage projects in Texas |
| · | Developing the largest site in France for
the production of green hydrogen based 100% on renewable electricity with Engie |
| · | Issued € 3 billion of hybrid bonds
dedicated to financing the strategy to grow renewables |
Electricity
| · | Acquired portfolio of 2 million residential
customers and 2 CCGT with cumulative capacity of 850 MW from Energías de Portugal in Spain |
| · | Won the City of Paris concession tender
to operate 2,300 charge points of the Bélib’ network |
| · | Acquired Charging Solutions to become operator
of 2,000 charge point network in Germany |
LNG
| · | Finalized 16.6% participation in Energia
Costa Azul LNG project on the Pacific coast of Mexico |
| · | Delivered first carbon neutral LNG cargo
to CNOOC (China) |
| · | Completed first LNG bunkering for CMA CGM
in Port of Rotterdam |
| · | Chartered four new LNG-powered Aframax
vessels to reduce maritime transport emissions |
Upstream
| · | Fourth hydrocarbon discovery on Block 58
in Suriname |
| · | Second gas and condensate discovery on
Block 11B/12B in South Africa |
| · | Entered new offshore exploration permit
as operator in Egypt |
| · | Sold Group’s 10% interest in onshore
OML 17 block in Nigeria |
CCUS
| · | Approval from Norwegian government of final
investment decision for Northern Lights CO2 sequestration project in Northern North Sea |
| · | Signed with ADNOC strategic framework agreement
on CO2 emission reduction and CCUS in Abu Dhabi |
| · | Announced world first sustainable packaging
from captured and recycled carbon emissions by Lanzatech, Total and L’Oréal in France |
3 Certain transactions
referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
Key figures from Total’s
consolidated financial statements4
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
In
millions of dollars, except effective tax rate,
earnings per share and number of shares |
2020 |
2019 |
2020
vs
2019 |
| 1,824 |
1,459 |
3,879 |
-53% |
Adjusted
net operating income from business segments |
6,404 |
14,554 |
-56% |
| 1,068
|
801
|
2,031
|
-47% |
Exploration
& Production |
2,363
|
7,509
|
-69% |
| 254
|
285
|
794
|
-68% |
Integrated
Gas, Renewables & Power |
1,778
|
2,389
|
-26% |
| 170
|
(88)
|
580
|
-71% |
Refining
& Chemicals |
1,039
|
3,003
|
-65% |
| 332 |
461 |
474 |
-30% |
Marketing
& Services |
1,224 |
1,653 |
-26% |
| 367 |
352 |
668 |
-45% |
Contribution
of equity affiliates to adjusted net income |
1,388 |
2,260 |
-39% |
| 14.9% |
45.7% |
31.8% |
|
Group
effective tax rate5 |
27.8% |
34.1% |
|
| 1,304 |
848 |
3,165 |
-59% |
Adjusted
net income (Group share) |
4,059 |
11,828 |
-66% |
| 0.46 |
0.29 |
1.19 |
-61% |
Adjusted
fully-diluted earnings per share (dollars)6 |
1.43 |
4.38 |
-67% |
| 0.39 |
0.24 |
1.07 |
-64% |
Adjusted
fully-diluted earnings per share (euros)* |
1.25 |
3.92 |
-68% |
| 2,645 |
2,637 |
2,607 |
+1% |
Fully-diluted
weighted-average shares (millions) |
2,621 |
2,618 |
- |
| |
| 891 |
202 |
2,600 |
-66% |
Net
income (Group share) |
(7,242) |
11,267 |
ns |
| |
| 3,432 |
2,184 |
4,291 |
-20% |
Organic
investments7 |
10,339 |
13,397
|
-23% |
| 1,099 |
(272) |
(80) |
ns |
Net acquisitions8 |
2,650 |
4,052
|
-35% |
| 4,531 |
1,912 |
4,211 |
+8% |
Net investments9 |
12,989 |
17,449
|
-26% |
| 4,498 |
3,791 |
6,793 |
-34% |
Operating
cash flow before working capital changes**10 |
15,697 |
26,111 |
-40% |
| 4,933 |
4,281 |
7,326 |
-33% |
Operating
cash flow before working capital changes w/o financial charges (DACF)11 |
17,635 |
28,180 |
-37% |
| 5,674 |
4,351 |
6,599 |
-14% |
Cash
flow from operations |
14,803 |
24,685 |
-40% |
Data
take into account the impact of the IFRS16 “Leases” rule, effective January 1, 2019.
* Average €-$ exchange rate: 1.1929 in the fourth quarter 2020 and 1.1422 in 2020.
** 4Q19 and 2019 data restated10 |
|
|
|
| 4 | Adjusted
results are defined as income using replacement cost, adjusted for special items, excluding
the impact of changes for fair value; adjustment items are on page 13. |
| 5 | Group
effective tax rate = (tax on adjusted net operating income) / (adjusted net operating
income – income from equity affiliates – dividends received from investments
– impairment of goodwill + tax on adjusted net operating income). |
| 6 | In
accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from
the adjusted net income less the interest on the perpetual subordinated bond |
| 7 | Organic
investments = net investments excluding acquisitions, asset sales and other operations
with non-controlling interests. |
| 8 | Net
acquisitions = acquisitions – assets sales – other transactions with non-controlling
interests (see page 13). |
| 9 | Net
investments = organic investments + net acquisitions (see page 13). |
| 10 | Operating
cash flow before working capital changes, is defined as cash flow from operating activities
before changes in working capital at replacement cost, excluding the mark-to-market effect
of iGRP’s contracts and including capital gain from renewable projects sale (effective
first quarter 2020). The inventory valuation effect is explained on page 15. The reconciliation
table for different cash flow figures is on page 13. |
| 11 | DACF
= debt adjusted cash flow, is defined as operating cash flow before working capital changes
and financial charges. |
Key
figures of environment and Group production
>
Environment* – liquids and gas price realizations, refining margins
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
|
2020 |
2019 |
2020
vs
2019 |
| 44.2 |
42.9 |
63.1 |
-30% |
Brent ($/b) |
41.8 |
64.2 |
-35% |
| 2.8 |
2.1 |
2.4 |
+15% |
Henry Hub ($/Mbtu) |
2.1 |
2.5 |
-16% |
| 5.6 |
2.9 |
5.1 |
+10% |
NBP ($/Mbtu) |
3.3 |
4.9 |
-31% |
| 8.0 |
3.6 |
5.8 |
+39% |
JKM
($/Mbtu) |
4.4 |
5.5 |
-20% |
| 41.0 |
39.9 |
59.1 |
-31% |
Average price of liquids
($/b)
Consolidated subsidiaries |
37.0 |
59.8 |
-38% |
| 3.31 |
2.52 |
3.76 |
-12% |
Average price of gas
($/Mbtu)
Consolidated subsidiaries |
2.96 |
3.88 |
-24% |
| 4.90 |
3.57 |
6.52 |
-25% |
Average
price of LNG ($/Mbtu)
Consolidated subsidiaries and equity affiliates |
4.83 |
6.31 |
-24% |
| |
| 4.6 |
-2.7 |
30.2 |
-85% |
Variable
cost margin - Refining Europe, VCM ($/t) |
11.5 |
34.9 |
-67% |
| * | The
indicators are shown on page 16. |
The
average LNG sales price rebounded by 37% in the quarter compared to the previous quarter, due to the seasonality of demand and
the delayed impact of higher oil prices in the third quarter 2020 on long-term LNG contracts.
>
Production*
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
|
2020 |
2019 |
2020
vs
2019 |
| 2,841 |
2,715 |
3,113 |
-9% |
Hydrocarbon
production (kboe/d) |
2,871 |
3,014 |
-5% |
| 1,238
|
1,196 |
1,452
|
-15% |
Oil
(including bitumen) (kb/d) |
1,298
|
1,431
|
-9%
|
| 1,603 |
1,519 |
1,661 |
-3% |
Gas
(including condensates and associated NGL) (kboe/d) |
1,573 |
1,583 |
-1% |
| |
| 2,841 |
2,715 |
3,113 |
-9% |
Hydrocarbon
production (kboe/d) |
2,871 |
3,014 |
-5% |
| 1,483
|
1,437 |
1,714
|
-13% |
Liquids (kb/d) |
1,543 |
1,672 |
-8% |
| 7,406 |
6,973 |
7,563 |
-2% |
Gas
(Mcf/d)** |
7,246 |
7,309 |
-1% |
| * | Group
production = EP production + iGRP production. |
| ** | 4Q19
and 2019 data restated |
Hydrocarbon
production was 2,841 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter 2020, a decrease of 9% year-on-year,
comprised of:
| • | -5%
due to compliance with OPEC+ quotas, notably in Nigeria, the United Arab Emirates and
Kazakhstan, as well as voluntary reductions in Canada and disruptions in Libya. |
| • | -1%
due to portfolio effect, notably linked to the sale of assets in the United Kingdom and
Block CA1 in Brunei. |
| • | +3%
due to the start-up and ramp-up of new projects, notably North Russkoye in Russia, Tempa
Rossa in Italy, Johan Sverdrup in Norway, Iara in Brazil and Culzean in the United
Kingdom. |
| • | -3%
due to the natural decline of fields. |
| • | -3%
due to maintenance and unplanned outages, notably in Norway. |
Hydrocarbon
production was 2,871 kboe/d for the year 2020, a decrease of 5% compared to the previous year, comprised of:
| • | -5%
due to compliance with OPEC+ quotas, notably in Nigeria, the United Arab Emirates and
Kazakhstan, as well as voluntary reductions in Canada and disruptions in Libya. |
| • | +5%
due to the ramp-up of recently started projects, notably Culzean in the United Kingdom,
Johan Sverdrup in Norway, Iara in Brazil, Tempa Rossa in Italy and North Russkoye
in Russia. |
| • | -3%
due to the natural decline of fields. |
| • | -2%
due to maintenance, and unplanned outages, notably in Norway. |
Analysis
of business segments
Integrated
Gas, Renewables & Power (iGRP)
| > | Production
and sales of Liquefied natural gas (LNG) and electricity |
| 4Q20
|
3Q20
|
4Q19
|
4Q20
vs
4Q19 |
Hydrocarbon
production for LNG |
2020 |
2019 |
2020
vs
2019 |
| 532 |
518 |
624 |
-15% |
iGRP
(kboe/d) |
530 |
560 |
-5% |
| 65 |
70 |
74 |
-12% |
Liquids
(kb/d) |
69 |
71 |
-4% |
| 2,549 |
2,445 |
2,939 |
-13% |
Gas
(Mcf/d)* |
2,519 |
2,656 |
-5% |
| |
|
|
|
|
|
|
|
| 4Q20
|
3Q20
|
4Q19
|
4Q20
vs
4Q19 |
Liquefied
Natural Gas in Mt |
2020
|
2019
|
2020
vs
2019 |
| 10.0 |
8.1 |
10.6 |
-6% |
Overall
LNG sales |
38.3 |
34.3 |
+12% |
| 4.3 |
4.3 |
4.2 |
+2% |
incl.
Sales from equity production** |
17.6 |
16.3 |
+8% |
| 8.0 |
6.6 |
9.6 |
-17% |
incl.
Sales by Total from equity production and third party purchases |
31.1 |
27.9 |
+12% |
| * | 4Q19
and 2019 data restated |
| ** | The
Group's equity production may be sold by Total or by the joint ventures. |
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
Renewables
& Electricity |
2020 |
2019 |
2020
vs
2019 |
| 7.0 |
5.1 |
3.0 |
x2.4 |
Gross
renewables installed capacity (GW)* |
7.0 |
3.0 |
x2.4 |
| 17.5 |
14.2 |
|
|
Gross
renewables installed or in development capacity with PPA (GW)* |
17.5 |
|
|
| 4.3 |
4.1 |
3.5 |
+20% |
Net
power production (TWh)** |
14.1 |
11.4 |
+24% |
| 1.2 |
1.0 |
0.6 |
+87% |
incl.
Power production from renewables |
4.0 |
2.0 |
+97% |
| 5.6 |
4.4 |
4.1 |
+37% |
Clients
power - BtB and BtC (Million)* |
5.6 |
4.1 |
+37% |
| 2.7 |
1.7 |
1.7 |
+59% |
Clients
gas - BtB and BtC (Million)* |
2.7 |
1.7 |
+59% |
| 13.5 |
10.2 |
12.9 |
+5% |
Sales
power - BtB and BtC (TWh) |
47.3 |
46.0 |
+3% |
| 31.5 |
13.5 |
29.4 |
+7% |
Sales
gas - BtB and BtC (TWh) |
95.8 |
95.0 |
+1% |
| * | Capacity
at end of period. |
| ** | Solar,
wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants. |
Hydrocarbon
production for LNG in the fourth quarter decreased by 15% compared to a year ago, notably due to the shutdown of Snøhvit
LNG following a fire at the end of September 2020.
Total
LNG sales increased by 12% in 2020 compared to 2019 thanks to the start-up of three trains at Cameron LNG in the United States,
the ramp-up of Yamal LNG in Russia and Ichthys LNG in Australia and the increase in trading activities.
Gross
installed renewable power generation capacity more than doubled during the year to reach 7 GW at the end of the fourth quarter,
notably thanks to the acquisition in India of 50% of a 3 GWp portfolio from the Adani Group.
The
Group continues to implement its strategy to integrate along the electricity and gas chain in Europe and has increased the number
of its electricity and gas customers by 1.5 million and 1 million, respectively, notably thanks to the finalization of the acquisition
in the fourth quarter of a portfolio of customers from Energías de Portugal in Spain.
Net
electricity production was 4.3 TWh in the fourth quarter, an increase of 20% compared to last year, notably due to the doubling
of renewable electricity production and the acquisition of four CCGT (combined cycle gas turbine) power stations in France and
Spain.
Sales
of electricity and gas in the fourth quarter increased by 5% and 7%, respectively, compared to a year ago thanks to the growth
in the number of customers.
| 4Q20
|
3Q20
|
4Q19
|
4Q20
vs
4Q19 |
In
millions of dollars |
2020 |
2019 |
2020
vs
2019 |
| 254 |
285 |
794 |
-68% |
Adjusted
net operating income* |
1,778 |
2,389 |
-26% |
| 97 |
99 |
353 |
-73% |
including
income from equity affiliates |
375 |
1,009 |
-63% |
| |
|
|
|
|
|
|
|
| 1,007 |
450 |
684 |
+47% |
Organic
investments |
2,720 |
2,259 |
+20% |
| 577 |
36 |
(13) |
ns |
Net
acquisitions |
2,183 |
3,921 |
-44% |
| |
|
|
|
|
|
|
|
| 1,584 |
486 |
671 |
x2.4 |
Net
investments |
4,903 |
6,180 |
-21% |
| 1,072 |
695 |
1,356 |
-21% |
Operating
cash flow before working capital changes ** |
3,418 |
3,409 |
- |
| 575 |
654 |
1,527 |
-62% |
Cash
flow from operations *** |
2,129 |
3,461 |
-38% |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases. 4Q19 and 2019 data restated. (see
note 10 page 3) |
| *** | Excluding
financial charges, except those related to leases. |
Adjusted
net operating income for the iGRP segment was $254 million in the
fourth quarter 2020 compared to $794 million in the fourth quarter 2019, and $1,778 million for 2020, a decrease of 26% for the
year, mainly due to the decrease in the LNG price.
Operating
cash flow before working capital changes was $1,072 million in the fourth quarter, a decrease of 21% compared to a year ago, due
to the decrease in the price of LNG partially offset by a positive and increasing contribution from Renewables & Electricity.
For the year, operating cash flow before working capital changes was stable in 2020 compared to the previous year at $3,418 million.
Exploration &
Production
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
Hydrocarbon
production |
2020 |
2019 |
2020
vs
2019 |
| 2,309 |
2,197 |
2,489 |
-7% |
EP
(kboe/d) |
2,341 |
2,454 |
-5% |
| 1,418 |
1,367 |
1,640 |
-14% |
Liquids
(kb/d) |
1,474 |
1,601 |
-8% |
| 4,857 |
4,528 |
4,624 |
+5% |
Gas
(Mcf/d) |
4,727 |
4,653 |
+2% |
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
In
millions of dollars, except effective tax rate |
2020 |
2019 |
2020
vs
2019 |
| 1,068 |
801 |
2,031 |
-47% |
Adjusted
net operating income* |
2,363 |
7,509 |
-69% |
| 222 |
268 |
247 |
-10% |
including
income from equity affiliates |
928 |
996 |
-7% |
| 19.8% |
32.9% |
38.0% |
|
Effective
tax rate** |
29.4% |
41.5% |
|
| |
|
|
|
|
|
|
|
| 1,569 |
1,266 |
2,617 |
-40% |
Organic
investments |
5,519 |
8,635 |
-36% |
| 548 |
(309) |
(224) |
ns |
Net
acquisitions |
544 |
14 |
x38.9 |
| 2,117 |
957 |
2,393 |
-12% |
Net
investments |
6,063 |
8,649 |
-30% |
| |
|
|
|
|
|
|
|
| 2,652 |
2,646 |
4,451 |
-40% |
Operating
cash flow before working capital changes *** |
9,684 |
18,030 |
-46% |
| 3,046 |
2,043 |
4,206 |
-28% |
Cash
flow from operations *** |
9,922 |
16,917 |
-41% |
| * | Details
on adjustment items are shown in the business segment information annex to financial
statements. |
| ** | Tax
on adjusted net operating income / (adjusted net operating income - income from equity
affiliates - dividends received from investments - impairment of goodwill + tax on adjusted
net operating income). |
| *** | Excluding
financial charges, except those related to leases. |
Exploration &
Production adjusted net operating income was:
| • | $1,068
million in the fourth quarter compared to $2,031 million a year ago due to the sharp
drop in oil and gas prices and lower production. |
| • | $2,363
million in 2020 versus $7,509 million in
2019 for the same reasons. |
Operating
cash flow before working capital changes
was $2,652 million in the fourth quarter, down 40% year-on-year, and $9,684 million in 2020, down 46%.
Downstream
(Refining & Chemicals and Marketing & Services)
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
In
millions of dollars |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 502 |
373 |
1,054 |
-52% |
Adjusted
net operating income* |
2,263 |
4,656 |
-51% |
| |
|
|
|
|
|
|
|
| 840 |
449 |
950 |
-12% |
Organic
investments |
2,023 |
2,395 |
-16% |
| 80 |
2 |
158 |
-49% |
Net
acquisitions |
32 |
118 |
-73% |
| 920 |
451 |
1,108 |
-17% |
Net
investments |
2,055 |
2,513 |
-18% |
| |
|
|
|
|
|
|
|
| 1,129 |
971 |
1,505 |
-25% |
Operating
cash flow before working capital changes ** |
4,652 |
6,617 |
-30% |
| 2,162 |
2,060 |
1,420 |
+52% |
Cash
flow from operations ** |
4,539 |
6,441 |
-30% |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases. |
Refining &
Chemicals
| > | Refinery
and petrochemicals throughput and utilization rates |
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
Refinery
throughput and utilization rate* |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 1,262 |
1,212 |
1,509 |
-16% |
Total
refinery throughput (kb/d) |
1,292 |
1,671 |
-23% |
| 247 |
267 |
282 |
-12% |
France |
244 |
456 |
-46% |
| 582 |
540 |
756 |
-23% |
Rest
of Europe |
618 |
754 |
-18% |
| 433 |
405 |
471 |
-8% |
Rest
of world |
430 |
462 |
-7% |
| 60% |
57% |
71% |
|
Utlization
rate based on crude only** |
61% |
80% |
|
| * | Includes
refineries in Africa reported in the Marketing & Services segment. |
| ** | Based
on distillation capacity at the beginning of the year. |
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
Petrochemicals
production and utilization rate |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 1,486 |
1,255 |
1,431 |
+4% |
Monomers*
(kt) |
5,519 |
5,219 |
+6% |
| 1,291 |
1,248 |
1,169 |
+10% |
Polymers (kt) |
4,934 |
4,862 |
+1% |
| 90% |
75% |
92% |
|
Vapocracker
utilization rate** |
83% |
83% |
|
| ** | Based
on olefins production from steamcrackers and their treatment capacity at the start of
the year. |
Refinery
throughput volumes:
| ● | Decreased
by 16% in the fourth quarter 2020 compared to the previous year, mainly due to high inventories
of refined products and the drop in demand which notably led to the economic shutdown
of the Donges refinery. |
| ● | Decreased
by 23% in 2020 year-on-year for the same reasons as well as the prolonged shutdown of
the distillation unit at the Normandy platform following the incident that occurred at
the end of 2019. |
Monomer
production:
| ● | Increased
4% in the fourth quarter 2020 year-on-year to 1,486 kt |
| ● | Increased
6% in 2020 year-on-year, supported by demand, and notably as a result of 2019 planned
maintenance on the steamcracker at Daesan in South Korea. |
Polymer
production:
| ● | Increased
by 10% in the fourth quarter 2020 year-on-year to 1,291 kt, supported by demand, and
due to planned maintenance in the fourth quarter 2019. |
| ● | Stable
in 2020 compared to 2019 |
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
In
millions of dollars |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 170 |
(88) |
580 |
-71% |
Adjusted
net operating income* |
1,039 |
3,003 |
-65% |
| |
|
|
|
|
|
|
|
| 448 |
291 |
479 |
-6% |
Organic
investments |
1,209 |
1,426 |
-15% |
| (2) |
(1) |
118 |
ns |
Net
acquisitions |
(54) |
(44) |
ns |
| 446 |
290 |
597 |
-25% |
Net
investments |
1,155 |
1,382 |
-16% |
| |
|
|
|
|
|
|
|
| 560 |
242 |
789 |
-29% |
Operating
cash flow before working capital changes ** |
2,472 |
4,072 |
-39% |
| 1,514 |
1,027 |
1,142 |
+33% |
Cash
flow from operations ** |
2,438 |
3,837 |
-36% |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases. |
Refining &
Chemicals adjusted net operating income was:
| ● | Down
year-on-year to $170 million in the fourth
quarter 2020. The decrease was due to depressed refining margins resulting from weak
demand, notably for distillates as a result of reduced air traffic. |
| ● | Down
65% year-on-year to $1,039 million in 2020,
due to refining margin deterioration, partially offset by resilient petrochemical margins
and outperformance of the trading activities. |
Operating
cash flow before working capital changes fell to $560 million in the fourth quarter
2020, down 29% compared to a year ago, and to $2,472 million in 2020, down
by 39%.
Marketing &
Services
| > | Petroleum
product sales |
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
Sales
in kb/d* |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 1,509 |
1,442 |
1,835 |
-18% |
Total
Marketing & Services sales |
1,477 |
1,845 |
-20% |
| 828 |
819 |
1,033 |
-20% |
Europe |
823 |
1,021 |
-19% |
| 681 |
623 |
801 |
-15% |
Rest
of world |
654 |
824 |
-21% |
| * | Excludes
trading and bulk refining sales |
Petroleum
product sales volumes decreased by 18% in the fourth quarter compared to a year ago and by 20% in 2020 compared to 2019, in response
to the significant slowdown in global activity related to the Covid-19 pandemic. Aviation and marine activities remain severely
affected in this context; however, the decline in retail sales was mitigated by network growth in Angola, Saudi Arabia, Brazil
and Mexico.
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
In
millions of dollars |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 332 |
461 |
474 |
-30% |
Adjusted
net operating income* |
1,224 |
1,653 |
-26% |
| |
|
|
|
|
|
|
|
| 392 |
158 |
471 |
-17% |
Organic
investments |
814 |
969 |
-16% |
| 82 |
3 |
40 |
x2.1 |
Net
acquisitions |
86 |
162 |
-47% |
| 474 |
161 |
511 |
-7% |
Net
investments |
900 |
1,131 |
-20% |
| |
|
|
|
|
|
|
|
| 569 |
729 |
716 |
-21% |
Operating
cash flow before working capital changes ** |
2,180 |
2,546 |
-14% |
| 648 |
1,033 |
278 |
x2.3 |
Cash
flow from operations ** |
2,101 |
2,604 |
-19% |
| * | Detail
of adjustment items shown in the business segment information annex to financial statements. |
| ** | Excluding
financial charges, except those related to leases |
Adjusted
net operating income was $332 million in the fourth quarter 2020, a decrease of 30% compared to a year ago, essentially due to
lower volumes and a revaluation of futures contracts in the fourth quarter 2019. Adjusted net operating income was $1,224 million
for the year 2020.
Operating
cash flow before working capital changes was $569 million in the fourth quarter 2020 and $2,180 million for the full year, decreases
of 21% and 14%, respectively, compared to the previous year.
Group
results
| > | Adjusted
net operating income from business segments |
Adjusted
net operating income from the business segments was:
| ● | $1,824
million in the fourth quarter 2020, a decrease of 53% compared to a year ago, due to
lower Brent prices, natural gas prices and refining margins. |
| ● | $6,404
million in 2020, a decrease of 56% year-on-year for the same reasons. |
| > | Adjusted
net income (Group share) |
Adjusted
net income (Group share) was:
| ● | $1,304
million in the fourth quarter 2020, compared to $3,165 million in the fourth quarter
2019, due to lower Brent prices, natural gas prices and refining margins. |
| ● | $4,059
million in 2020, a decrease of 66% year-on-year, for the same reasons. |
Adjusted
net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value12.
Total
net income adjustments13 were
| ● | -$413
million in the fourth quarter 2020, including close to $200 million related to the conversion
of the Grandpuits refinery in France. |
| ● | -$11,301
million in 2020, including $8.5 billion of impairments, notably on oil sands assets in
Canada. |
| > | Adjusted
earnings per share |
Adjusted
fully-diluted earnings per share was:
| ● | $0.46
in the fourth quarter 2020, calculated based on a weighted average of 2,645 million fully-diluted
shares, compared to $1.19 in the same period last year. |
| ● | $1.43
in 2020, calculated based on a weighted average of 2,621 million fully-diluted shares,
compared to $4.38 in 2019. |
The
number of fully-diluted shares was 2,647 million on December 31, 2020.
| > | Acquisitions
- asset sales |
Finalized
acquisitions were:
| ● | $1,538
million in the fourth quarter 2020, comprised notably of the acquisition of Tullow’s
entire interest in the Lake Albert project in Uganda, and the acquisition of CCGT assets
and of a portfolio of customers from Energías de Portugal in Spain. |
| ● | $4.2
billion in 2020, comprised of the items mentioned above as well as the acquisition in
India of 50% of a portfolio of installed solar activities from Adani Green Energy Limited,
the finalization of the acquisition of 37.4% stake in Adani Gas Ltd, the acquisition
of interests in Blocks 20 and 21 in Angola, and the payment for a second bonus tranche
linked to taking the 10% stake in the Arctic LNG 2 project in Russia. |
Finalized
asset sales were:
| ● | $439
million in the fourth quarter 2020, comprised notably of the sale of Enphase shares by
SunPower and the sale of the Group’s corporate offices in Brussels. |
| ● | $1.5
billion in 2020, comprised notably of the sale mentioned above, as well as notably the
sale of non-strategic assets in the UK North Sea, closing the sale of Block CA1 in Brunei,
the sale of the Group’s interest in the Fos Cavaou regasification terminal in France,
and the sale of 50% of a portfolio of solar and wind assets from Total Quadran in France. |
Net
cash flow14 for the Group was:
| ● | -$33
million in the fourth quarter 2020 compared to $2,582 million in the fourth quarter 2019,
due to a decrease in operating cash flow before working capital changes from $6,793 million
to $4,498 million and stable net investments of $4,531 million versus $4,211 million. |
| ● | $2.7
billion in 2020 compared to $8.7 billion in 2019, due to the decrease of $10.4 billion
in operating cash flow before working capital changes, partially offset by a reduction
in net investments of $4.5 billion. |
| 12 | Adjustment
items shown on page 15. |
| 13 | Details
shown on page 13 and in the appendix to the financial statements. |
| 14 | Net
cash flow = operating cash flow before working capital changes - net investments (including
other transactions with non-controlling interests). |
The return on equity was 3.7% for the twelve
months ended December 31, 2020.
| In
millions of dollars |
January
1, 2020
December 31, 2020 |
October
1, 2019
September 30, 2020 |
January
1, 2019
December 31, 2019 |
|
| Adjusted
net income |
4,067 |
5,960 |
12,090 |
|
| Average
adjusted shareholders' equity |
110,643 |
108,885 |
116,766 |
|
| Return
on equity (ROE) |
3.7% |
5.5% |
10.4% |
|
The return on average capital employed was
4.0% for the twelve months ended December 31, 2020.
| In
millions of dollars |
January
1, 2020
December 31, 2020 |
October
1, 2019
September 30, 2020 |
January
1, 2019
December 31, 2019 |
|
| Adjusted
net operating income |
5,806 |
7,801 |
14,073 |
|
| Average
capital employed |
145,723 |
144,060 |
143,674 |
|
| ROACE |
4.0% |
5.4% |
9.8% |
|
Total SE accounts
Net income for Total SE, the parent company,
was €7,238 million in 2020 compared to €7,039 million a year ago.
2021 Sensitivities*
| |
|
Estimated
impact on |
Estimated
impact on |
| |
Change |
adjusted |
cash
flow from |
| |
|
net
operating income |
operations |
| Dollar |
+/-
0.1 $ per € |
-/+
0.1 B$ |
~0
B$ |
| Average
liquids price** |
+/-
10 $/b |
+/-
2.7 B$ |
+/-
3.2 B$ |
| European
gas price - NBP ($/Mbtu) |
+/-
1 $/Mbtu |
+/-
0.3 B$ |
+/-
0.25 B$ |
| Variable
cost margin, European refining (VCM) |
+/-
10 $/t |
+/-
0.4 B$ |
+/-
0.5 B$ |
| * | Sensitivities
are revised once per year upon publication of the previous year’s fourth quarter
results. Sensitivities are estimates based on assumptions about the Group’s portfolio
in 2021. Actual results could vary significantly from estimates based on the application
of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals. Please find the
indicators detailed page 16. |
| ** | In
a 50 $/b Brent environment. |
Summary and outlook
Supported by OPEC+ quota compliance, oil
prices have remained above 50 $/b since the beginning of 2021. However, the oil environment remains uncertain and dependent on
the recovery of global demand, still affected by the Covid-19 pandemic.
In a context of disciplined OPEC+ quota
implementation, the Group anticipates 2021 production will be stable compared to 2020, benefiting from the resumption of production
in Libya.
The Group continues its profitable growth
in LNG with sales expected to increase by 10% in 2021 compared to 2020, notably due to the ramp-up of Cameron LNG.
European refining margins remain fragile,
with low demand for jet fuel weighing on the recovery of distillates. However, thanks to the resilience of Marketing &
Services, the Group expects Downstream to contribute more than $5 billion of cash flow in 2021, assuming refining margins of 25
$/t.
Faced with uncertainties in the environment,
net investments are projected at $12 billion in 2021, while preserving the flexibility to mobilize additional investments should
the oil and gas environment strengthen. After reducing operating costs by $1.1 billion in 2020 compared to 2019, the Group maintains
strong discipline on spending and targets additional savings of $0.5 billion in 2021.
The Group’s teams are fully committed
to the four priorities of HSE, operational excellence, cost reduction and cash flow generation.
The Group maintains its priorities for cash
flow allocation: investing in profitable projects to implement the Group’s transformation strategy, support the dividend
and maintain a strong balance sheet.
Already in 2021, in renewables, the Group
has announced more than 10 GW of additional projects through the acquisition of a 20% stake in Adani Green Energy Limited (AGEL),
the world’s leading solar developer, a partnership with Hanwha in the United States with a 1.6 GW portfolio, and the acquisition
of a 2.2 GW portfolio of projects in Texas. Total will allocate in 2021 more than 20% of its net investments to Renewables and
Electricity.
* * * * *
To listen
to the presentation in English with CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 14:00 (Paris time) please
log on to total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167 in the United States
(code: 3971718).
The conference replay will be available
on total.com after the event.
* * * * *
Total contacts
| Media Relations: | +33
1 47 44 46 99 l presse@total.com l @TotalPress |
| Investors Relations: | +44
(0) 207 719 7962 l ir@total.com |
Operating information by segment
| > | Group production (Exploration & Production + iGRP) |
| |
|
|
|
|
|
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
Combined
liquids and gas
production by region (kboe/d) |
2020 |
2019 |
2020
vs
2019 |
| 1,059 |
969 |
1,102 |
-4% |
Europe
and Central Asia |
1,039 |
1,023 |
+2% |
| 566 |
598 |
703 |
-19% |
Africa |
629 |
705 |
-11% |
| 598 |
576 |
701 |
-15% |
Middle
East and North Africa |
624 |
702 |
-11% |
| 382 |
343 |
368 |
+4% |
Americas |
353 |
365 |
-3% |
| 236 |
229 |
239 |
-1% |
Asia-Pacific |
226 |
219 |
+3% |
| 2,841 |
2,715 |
3,113 |
-9% |
Total
production |
2,871 |
3,014 |
-5% |
| 727 |
667 |
768 |
-5% |
includes
equity affiliates |
712 |
731 |
-3% |
| |
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
Liquids
production by region (kb/d) |
2020 |
2019 |
2020
vs
2019 |
| 378 |
359 |
373 |
+1% |
Europe
and Central Asia |
380 |
355 |
+7% |
| 427 |
458 |
560 |
-24% |
Africa |
488 |
558 |
-13% |
| 454 |
432 |
560 |
-19% |
Middle
East and North Africa |
474 |
548 |
-13% |
| 181 |
144 |
171 |
+6% |
Americas |
158 |
168 |
-6% |
| 43 |
44 |
50 |
-13% |
Asia-Pacific |
43 |
44 |
-2% |
| 1,483 |
1,437 |
1,714 |
-13% |
Total
production |
1,543 |
1,672 |
-8% |
| 200 |
197 |
212 |
-6% |
includes
equity affiliates |
202 |
216 |
-6% |
| |
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
Gas
production by region (Mcf/d) |
2020 |
2019 |
2020
vs
2019 |
| 3,666 |
3,284 |
3,887 |
-6% |
Europe
and Central Asia |
3,547 |
3,596 |
-1% |
| 701 |
713 |
686 |
+2% |
Africa* |
717 |
737 |
-3% |
| 809 |
801 |
792 |
+2% |
Middle
East and North Africa |
835 |
857 |
-3% |
| 1,126 |
1,115 |
1,109 |
+2% |
Americas |
1,095 |
1,110 |
-1% |
| 1,104 |
1,060 |
1,089 |
+1% |
Asia-Pacific* |
1,052 |
1,009 |
+4% |
| 7,406 |
6,973 |
7,563 |
-2% |
Total
production* |
7,246 |
7,309 |
-1% |
| 2,851 |
2,540 |
2,961 |
-4% |
includes
equity affiliates* |
2,748 |
2,780 |
-1% |
| * | 4Q19
and 2019 data restated |
| > | Downstream (Refining & Chemicals and Marketing & Services) |
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
Petroleum
product sales by region (kb/d) |
2020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 1,651 |
1,475 |
1,993 |
-17% |
Europe |
1,586 |
2,008 |
-21% |
| 628 |
541 |
737 |
-15% |
Africa |
579 |
706 |
-18% |
| 794 |
673 |
763 |
+4% |
Americas |
773 |
842 |
-8% |
| 547 |
460 |
526 |
+4% |
Rest
of world |
471 |
555 |
-15% |
| 3,619 |
3,149 |
4,019 |
-10% |
Total
consolidated sales |
3,410 |
4,110 |
-17% |
| 458 |
417 |
508 |
-10% |
Includes
bulk sales |
434 |
536 |
-19% |
| 1,652 |
1,290 |
1,676 |
-1% |
Includes
trading |
1,498 |
1,730 |
-13% |
| |
|
|
|
|
|
|
|
| |
|
|
4Q20 |
|
|
|
2020 |
| 4Q20 |
3Q20 |
4Q19 |
vs |
Petrochemicals
production* (kt) |
2,020 |
2019 |
vs |
| |
|
|
4Q19 |
|
|
|
2019 |
| 1,381 |
1,274 |
1,253 |
10% |
Europe |
5,202 |
5,364 |
-3% |
| 662 |
513 |
630 |
+5% |
Americas |
2,475 |
2,367 |
+5% |
| 735 |
716 |
717 |
+2% |
Middle-East
and Asia |
2,775 |
2,350 |
+18% |
Adjustment
items to net income (Group share)
| 4Q20 |
3Q20 |
4Q19 |
In
millions of dollars |
2020 |
2019 |
| (683) |
(706) |
(666) |
Special
items affecting net income (Group share) |
(10,044) |
(892) |
| 104 |
- |
- |
Gain
(loss) on asset sales |
104 |
- |
| (194) |
(70) |
(5) |
Restructuring
charges |
(364) |
(58) |
| (71) |
(293) |
(248) |
Impairments |
(8,465) |
(465) |
| (522) |
(343) |
(413) |
Other |
(1,319) |
(369) |
| 224 |
4 |
57 |
After-tax
inventory effect : FIFO vs. replacement cost |
(1,280) |
346 |
| 46 |
56 |
44 |
Effect
of changes in fair value |
23 |
(15) |
| |
|
|
|
|
|
| (413) |
(646) |
(565) |
Total
adjustments affecting net income |
(11,301) |
(561) |
Investments
- Divestments
| 4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
In
millions of dollars |
2020 |
2019 |
2020
vs
2019 |
3,432
|
2,184
|
4,291
|
-20%
|
Organic
investments ( a )
|
10,339
|
13,397
|
-23%
|
| 214 |
148 |
136 |
+58% |
capitalized
exploration |
659 |
705 |
-6% |
| 355 |
290 |
319 |
+11% |
increase
in non-current loans |
1,657 |
1,061 |
+56% |
| (212) |
(330) |
(102)
|
ns |
repayment
of non-current loans, excluding organic loan repayment from equity affiliates* |
(717) |
(551) |
ns |
| (46) |
(11) |
- |
ns |
change
in debt from renewable projects (Group share) |
(209) |
(109) |
ns |
| 1,538 |
150 |
266 |
x5.8 |
Acquisitions
( b ) |
4,189 |
5,980 |
-30% |
| 439
|
422 |
357 |
+23%
|
Asset
sales ( c )
|
1,539
|
1,939
|
-21%
|
| 15 |
7 |
- |
ns |
change
in debt from renewable projects (partner share) |
105 |
105 |
- |
| - |
- |
(11) |
ns |
Other
transactions with non-controlling interests ( d ) |
- |
(11) |
ns |
| 4,531 |
1,912 |
4,211 |
+8% |
Net
investments ( a + b - c - d ) |
12,989 |
17,449 |
-26% |
| (77) |
(1) |
(275) |
ns |
Organic
loan repayment from equity affiliates* ( e ) |
(111) |
(475) |
ns |
| 61 |
18 |
- |
ns |
Change
in debt from renewable projects financing ** ( f ) |
314 |
214 |
+47% |
| 39 |
28 |
- |
ns |
Capex
linked to capitalized leasing contracts ( g ) |
113 |
- |
ns |
| 4,476 |
1,901 |
3,925 |
+14% |
Cash
flow used in investing activities ( a + b - c + e + f -g) |
13,079 |
17,177 |
-24% |
| * | Effective
second quarter 2019, organic loan repayments from equity affiliates are defined as loan
repayments from equity affiliates coming from their cash flow from operations. |
| ** | Change
in debt from renewable projects (Group share and partner share). |
Cash
flow
4Q20 |
3Q20 |
4Q19 |
4Q20
vs
4Q19 |
In millions of dollars |
2020 |
2019 |
2020
vs
2019 |
| 4,933 |
4,281 |
7,326 |
-33% |
Operating
cash flow before working capital changes w/o financials charges (DACF) |
17,635 |
28,180 |
-37% |
| (436) |
(491) |
(533) |
ns |
Financial
charges |
(1,938) |
(2,069) |
ns |
| 4,498 |
3,791 |
6,793 |
-34% |
Operating
cash flow before working capital changes ( a ) * |
15,697 |
26,111 |
-40% |
| 976 |
475 |
92 |
x10.6 |
(Increase)
decrease in working capital ** |
753 |
(1,397) |
ns |
| 308 |
90 |
(11) |
ns |
Inventory
effect |
(1,440) |
446 |
ns |
| (32) |
(4) |
- |
ns |
capital
gain from renewable projects sale |
(96) |
- |
ns |
| (77) |
(1) |
(275) |
ns |
Organic
loan repayment from equity affiliates |
(111) |
(475) |
ns |
| 5,674 |
4,351 |
6,599 |
-14% |
Cash
flow from operations |
14,803 |
24,685 |
-40% |
| |
| 3,432 |
2,184 |
4,291 |
-20% |
Organic
investments ( b ) |
10,339 |
13,397 |
-23% |
| 1,066 |
1,607 |
2,502 |
-57% |
Free
cash flow after organic investments,
w/o net asset sales ( a - b ) |
5,358 |
12,714 |
-58% |
| |
| 4,531 |
1,912 |
4,211 |
+8% |
Net
investments ( c ) |
12,989 |
17,449 |
-26% |
| (33) |
1,879 |
2,582 |
ns |
Net
cash flow ( a - c ) |
2,708 |
8,662 |
-69% |
| * | Operating
cash flow before working capital changes, is defined as cash flow from operating activities
before changes in working capital at replacement cost, excluding the mark-to-market effect
of iGRP’s contracts and including capital gain from renewable projects sale (effective
first quarter 2020). |
| | Historical
data have been restated to cancel the impact of fair valuation of iGRP sector’s
contracts. |
| ** | Changes
in working capital are presented excluding the mark-to-market effect of iGRP’s
contracts. |
Gearing
ratio
| In
millions of dollars |
12/31/2020 |
09/30/2020 |
12/31/2019 |
| Current
borrowings |
17,099 |
14,980 |
14,819 |
| Net
current financial assets |
(4,427) |
(5,815) |
(3,505) |
| Net
financial assets classified as held for sale |
313 |
5 |
301 |
| Non-current
financial debt |
60,203 |
61,477 |
47,773 |
| Non-current
financial assets |
(4,781) |
(3,155) |
(912) |
| Cash
and cash equivalents |
(31,268) |
(30,593) |
(27,352) |
| Net
debt (a) |
37,139 |
36,899 |
31,124 |
| of
which leases |
7,812 |
7,499 |
7,156 |
| |
|
|
|
| Shareholders’
equity - Group share |
103,702 |
102,234 |
116,778 |
| Non-controlling
interests |
2,383 |
2,177 |
2,527 |
| Shareholders'
equity (b) |
106,085 |
104,411 |
119,305 |
| |
|
|
|
| Net-debt-to-capital
ratio = a / (a + b) * |
25.9% |
26.1% |
20.7% |
| |
|
|
|
| Net-debt-to-capital
ratio excluding leases |
21.7% |
22.0% |
16.7% |
| * | The
net-debt-to-capital ratios include the impact of the IFRS 16 rule, effective January 1,
2019. |
Return
on average capital employed
| > | Twelve
months ended December 31, 2020 |
| In
millions of dollars |
Integrated
Gas,
Renewables &
Power |
Exploration
&
Production |
Refining
&
Chemicals |
Marketing
&
Services |
|
Group |
| Adjusted
net operating income |
1,778 |
2,363 |
1,039 |
1,224 |
|
5,806 |
| Capital
employed at 12/31/2019* |
41,549 |
88,844 |
12,228 |
8,371 |
|
148,828 |
| Capital
employed at 12/31/2020* |
45,611 |
78,928 |
11,375 |
8,793 |
|
142,617 |
| ROACE |
4.1% |
2.8% |
8.8% |
14.3% |
|
4.0% |
| > | Twelve
months ended September 30, 2020 |
| In
millions of dollars |
Integrated
Gas,
Renewables &
Power |
Exploration
&
Production |
Refining
&
Chemicals |
Marketing
&
Services |
|
Group |
| Adjusted
net operating income |
2,318 |
3,326 |
1,449 |
1,366 |
|
7,801 |
| Capital
employed at 09/30/2019* |
41,516 |
88,560 |
11,658 |
7,570 |
|
147,145 |
| Capital
employed at 09/30/2020* |
43,799 |
78,548 |
11,951 |
8,211 |
|
140,976 |
| ROACE |
5.4% |
4.0% |
12.3% |
17.3% |
|
5.4% |
| * | At
replacement cost (excluding after-tax inventory effect). |
This
press release presents the results for the full-year 2020 from the consolidated financial statements of TOTAL SE as of December 31,
2020 (unaudited). The audit procedures by the Statutory Auditors are underway. The consolidated financial statements (unaudited)
are available on the Total website total.com. This document does not constitute the annual financial report (rapport financier
annuel) within the meaning of article L.451.1.2 of the French monetary and financial code (code monétaire et financier).
This
document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably
with respect to the financial condition, results of operations, business activities and industrial strategy of TOTAL. This document
may also contain statements regarding the perspectives, objectives and goals of the Group, including with respect to climate change
and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by the Group, it being specified that the
means to be deployed do not depend solely on TOTAL. These forward-looking statements may generally be identified by the use of
the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”,
“believes”, “considers”, “plans”, “expects”, “thinks”, “targets”,
“aims” or similar terminology. Such forward-looking statements included in this document are based on economic data,
estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable
by the Group as of the date of this document.
These
forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives
or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant
difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic,
financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations
in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and
reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations,
changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic
and political developments, changes in market conditions, loss of market share and changes in consumer preferences including those
due to epidemics such as Covid-19. Additionally, certain financial information is based on estimates particularly in the assessment
of the recoverable value of assets and potential impairments of assets relating thereto.
Neither
TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives
or trends contained in this document whether as a result of new information, future events or otherwise. Further information on
factors, risks and uncertainties that could affect the Group’s business, financial condition, including its operating income
and cash flow, reputation or outlook is provided in the most recent version of the Universal Registration Document which is filed
by the Company with the French Autorité des Marchés Financiers and the annual report on Form 20-F/A filed with
the United States Securities and Exchange Commission (“SEC”).
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. In addition to IFRS measures, certain alternative performance indicators
are presented, such as performance indicators excluding the adjustment items described below (adjusted operating income, adjusted
net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE), gearing ratio
and operating cash flow before working capital changes. These indicators are meant to facilitate the analysis of the financial
performance of TOTAL and the comparison of income between periods. They allow investors to track the measures used internally
to manage and measure the performance of the Group.
These
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 price differentials 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 an adjustment item reflects, for some transactions, differences between internal
measures of performance used by TOTAL’s 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.
TOTAL,
in its trading activities, enters into storage contracts, whose future effects are recorded at fair value in Group’s internal
economic performance. IFRS precludes recognition of this fair value effect.
Furthermore,
TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives
are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer
the fair value on derivatives to match with the transaction occurrence.
The
adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost
results, adjusted for special items, excluding the effect of changes in fair value.
Euro
amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar
(€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.
Cautionary
Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved,
probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this press
release, such as “potential reserves” or “resources”, that the SEC’s guidelines strictly prohibit
us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F/A,
File N° 1-10888, available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault - 92078 Paris-La Défense
Cedex, France, or at our website total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s
website sec.gov.
