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
August 2, 2011
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 ¨
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): ¨
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): ¨
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 ¨ 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. 333-159335, 333-159335-01 AND 333-159335-02) OF TOTAL S.A., TOTAL CAPITAL AND TOTAL CAPITAL CANADA LTD. AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 second quarter and six months ended June 30, 2011, and a description of certain recent developments relating to its business, as well as a capitalization table as of June 30, 2011, and a ratio of earnings to fixed charges for the six months ended June 30, 2011 and 2010 and each of the five years ended December 31, 2010, 2009, 2008, 2007 and 2006, together with the computation of the ratio of earnings to fixed charges.
EX-99.1: Results for the Three Months and Six Months Ended June 30, 2011 |
||
EX-99.3: Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
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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.
TOTAL S.A. | ||||
Date: August 2, 2011 | By: | /s/ JEROME SCHMITT | ||
Name: Jérôme SCHMITT | ||||
Title: Treasurer |
Exhibit 99.1 | Results for the Three Months and Six Months Ended June 30, 2011 | |
Exhibit 99.2 | Recent Developments | |
Exhibit 99.3 | Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness | |
Exhibit 99.4 | Computation of Ratio of Earnings to Fixed Charges |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information in this Form 6-K concerning TOTAL S.A. (TOTAL) and its subsidiaries and affiliates (collectively, the Group) with respect to the second quarter and first six months ended June 30, 2011, has been derived from TOTALs unaudited consolidated financial statements for the second quarter and first six months ended June 30, 2011.
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, 2010, in TOTALs Annual Report on Form 20-F for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 28, 2011.
| Key figures and consolidated accounts of TOTAL* |
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
in millions of euros except earnings per share and number of shares |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
45,009 | 46,029 | 41,329 | +9 | % | Sales |
91,038 | 78,932 | +15 | % | |||||||||||||||||||
Adjusted net operating income from business segments |
||||||||||||||||||||||||||||
2,457 | 2,849 | 2,203 | +12 | % | Upstream |
5,306 | 4,174 | +27 | % | |||||||||||||||||||
197 | 276 | 483 | -59 | % | Downstream |
473 | 638 | -26 | % | |||||||||||||||||||
247 | 238 | 274 | -10 | % | Chemicals |
485 | 431 | +13 | % | |||||||||||||||||||
1.21 | 1.75 | 1.38 | -12 | % | Fully-diluted earnings per share (euros) |
2.96 | 2.55 | +16 | % | |||||||||||||||||||
2,255.5 | 2,251.1 | 2,242.5 | +1 | % | Fully-diluted weighted-average shares (millions) |
2,252.3 | 2,242.6 | | ||||||||||||||||||||
2,726 | 3,946 | 3,101 | -12 | % | Net income (Group share) |
6,672 | 5,714 | +17 | % | |||||||||||||||||||
7,570 | 5,683 | 3,446 | x2.2 | Investments ** |
13,253 | 7,155 | +85 | % | ||||||||||||||||||||
1,338 | 663 | 850 | +57 | % | Divestments |
2,001 | 1,898 | +5 | % | |||||||||||||||||||
6,232 | 5,020 | 2,596 | x2.4 | Net investments |
11,252 | 5,257 | x2.1 | |||||||||||||||||||||
5,064 | 5,714 | 4,942 | +2 | % | Cash flow from operations |
10,778 | 10,202 | +6 | % |
* | Adjusted net operating income is defined as income using replacement cost, adjusted for special items affecting operating income and excluding the impact of changes for fair value from January 1, 2011, and, through June 30, 2010, excluding TOTALs equity share of adjustments related to Sanofi. See Analysis of business segment results below for further details. |
** | Including acquisitions. |
| Second quarter 2011 results |
> Sales
In the second quarter 2011, the Brent price averaged 117 $/b, an increase of 50% compared to the second quarter 2010 and 11% compared to the first quarter 2011. The European refining margin indicator (ERMI) averaged 16.3 $/t, a decrease of 48% compared to the second quarter 2010 and 34% compared to the first quarter 2011. The environment for the petrochemicals and specialty chemicals remained satisfactory.
The euro-dollar exchange rate averaged 1.44 $/ in the second quarter 2011, 1.27 $/ in the second quarter 2010 and 1.37 $/ in the first quarter 2011. Expressed in euros, the Brent price averaged 81.3 /b, an increase of 32% compared to the second quarter 2010.
In this environment, sales were 45,009 million in the second quarter 2011, an increase of 9% compared to 41,329 million in the second quarter 2010.
> Net income
Reported net income (Group share) in the second quarter 2011 decreased by 12% to 2,726 million from 3,101 million in the second quarter 2010, mainly due to weak Downstream segment results and the variation of the after-tax inventory valuation effect on the Downstream segments results more than offsetting the impact of increased hydrocarbon prices on the Upstream segments results. 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 74 million in the second quarter 2011 and a positive impact of 169 million in the second quarter 2010. As from January 1, 2011, the Group accounts for changes in fair value of trading inventories and storage contracts (as defined below under Analysis of business segment results). The changes in fair value had a negative impact on net income (Group share) of 41 million in the second quarter 2011. Special items had a positive impact on net income (Group share) of 47 million in the second quarter 2011 and a positive impact of 11 million in the second quarter 2010. Effective July 1, 2010, the Group no longer accounts for its interest in Sanofi as an equity affiliate, but treats such interest as a financial asset available for sale in the line Other investments of the balance sheet. In the second quarter 2011, the Group received dividend income of 115 million after taxes from Sanofi. In the second quarter 2010, the contribution to the Groups net income from its interest in Sanofi was 101 million. In the second quarter 2010, the Groups share of adjustment items related to Sanofi had a negative impact on net income (Group share) of 40 million.
1
Fully-diluted earnings per share, based on 2,255.5 million fully-diluted weighted-average shares, was 1.21 in the second quarter 2011 compared to 1.38 in the second quarter 2010, a decrease of 12%.
> Investments divestments1
Investments, excluding acquisitions and including changes in non-current loans, were 3.5 billion in the second quarter 2011 compared to 3.1 billion in the second quarter 2010.
Acquisitions were 4.0 billion in the second quarter 2011, comprised essentially of the acquisition of 12% of Novatek and 60% of SunPower.
Asset sales in the second quarter 2011 were 1.2 billion, including mainly the Groups interest in its Cameroon E&P subsidiary, part of the Joslyn project in Canada and the sale of Sanofi shares.
Net investments2 were 6.2 billion in the second quarter 2011 compared to 2.6 billion in the second quarter 2010.
> Cash flow
Cash flow from operations was 5,064 million in the second quarter 2011 compared to 4,942 million in the second quarter 2010. Cash flow from operating activities was affected by changes in oil and oil products prices on the Groups working capital requirement. As IFRS rules account for inventories of petroleum products according to the FIFO method, an increase in oil and oil products prices at the end of the relevant period compared to the beginning of the same period generates, all other factors remaining equal, an increase in inventories and accounts receivable net of an increase in accounts payable, resulting in an increase in working capital requirements. Similarly, a decrease in oil and oil products prices generates a decrease in working capital requirements.
The Groups net cash flow3 was negative 1,168 million in the second quarter 2011 compared to positive 2,346 million in the second quarter 2010, reflecting essentially the significant level of acquisitions finalized during the quarter.
| First half 2011 results |
> Sales
Compared to the first half 2010, the average Brent price increased by 44% to 111.1 $/b. The European refining margin indicator (ERMI) averaged 20.4 $/t compared to 30.4 $/t in the first half 2010. The environment for the petrochemicals and specialty chemicals remained generally favorable.
The euro-dollar exchange rate averaged 1.40 $/ compared to 1.33 $/ in the first half 2010. Expressed in euros, the Brent price averaged 79.2 /b, an increase of 36% compared to the second half 2010.
In this environment, sales in the first half 2011 were 91,038 million, an increase of 15% compared to 78,932 million in the first half 2010.
> Net income (Group share)
Reported net income (Group share) in the first half 2011 increased by 17% to 6,672 million from 5,714 million in the first half 2010, mainly due to the impact of the increase in hydrocarbon prices on the Upstream segments results. The after-tax inventory effect had a positive impact on net income (Group share) of 872 million in the first half 2011 and a positive impact of 513 million in the first half 2010, in each case due to the increase in prices of oil and oil products. Special items had a negative impact on net income (Group share) of 120 million in the first half 2011, comprised essentially of the increase in the deferred tax liability due to the change in UK taxes, and a positive impact of 25 million in the first half 2010. In the first half 2011, the Group received dividend income of 115 million after taxes from Sanofi. In the first half 2010, the contribution to the Groups net income from its interest in Sanofi was 209 million. In the first half 2010, the Groups share of adjustment items related to Sanofi had a negative impact on net income (Group share) of 81 million.
1 | Detail shown on page 11 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. |
2
The Group did not buy back shares in the first half 2011. On June 30, 2011, there were 2,258.3 million fully-diluted shares compared to 2,243.6 on June 30, 2010.
Fully-diluted earnings per share, based on 2,252.3 million weighted-average shares, was 2.96 in the first half 2011 compared to 2.55 in the first half 2010, an increase of 16%.
> Investments divestments4
Investments, excluding acquisitions and including changes in non-current loans, were 6.3 billion in the first half 2011 compared to 5.5 billion in the first half 2010.
Acquisitions were 6.5 billion in the first half 2011, comprised essentially of the acquisition of interests in Fort Hills and Voyageur in Canada, an additional 7.5% interest in the GLNG project in Australia, a 12% stake in Novatek and 60% of SunPower.
Asset sales in the first half 2011 were 1.5 billion, essentially comprised of sales of Sanofi shares, the Groups interest in its Cameroon E&P subsidiary and part of the Joslyn project in Canada.
Net investments were 11.3 billion in the first half 2011, compared to 5.3 billion in the first half 2010.
> Cash flow
Cash flow from operations was 10,778 million in the first half 2011, an increase of 6% compared to the first half 2010. Cash flow from operating activities was affected by changes in oil and oil products prices on the Groups working capital requirement. As IFRS rules account for inventories of petroleum products according to the FIFO method, an increase in oil and oil products prices at the end of the relevant period compared to the beginning of the same period generates, all other factors remaining equal, an increase in inventories and accounts receivable net of an increase in accounts payable, resulting in an increase in working capital requirements. Similarly, a decrease in oil and oil products prices generates a decrease in working capital requirements.
The Groups net cash flow was negative 474 million in the first half 2011 compared to positive 4,945 million in the first half 2010, reflecting essentially the significant level of acquisitions finalized during the first half 2011.
The net-debt-to-equity ratio was 24.3% on June 30, 2011, compared to 22.7% on June 30, 20105, in line with the Groups target range.
| Analysis of business segment results |
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 FIFO (First-In, First-Out) 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 Downstream segment and Chemicals segment 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 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. The inventory valuation effect is the difference between the results according to FIFO and the replacement cost.
As from January 1, 2011, the effect of changes in fair value presented as an adjustment item reflects for some transactions 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 based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, future effects of which are recorded at fair value in the Groups internal economic performance. IFRS precludes recognition of this fair value effect.
Until June 30, 2010, the Group also adjusted for its equity share of adjustment items related to Sanofi. As of July 1, 2010, Sanofi is no longer accounted for as an equity affiliate (but is instead treated as a financial asset available for sale in the line Other investments of the balance sheet).
4 | Detail shown on page 11 of this exhibit. |
5 | Detail shown on page 11 of this exhibit. |
3
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value as from January 1, 2011. 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 the Companys consolidated interim financial statements, see pages 22-29, 32-34 and 40-45 of this exhibit.
In addition, 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, 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 only 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 minority interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
Upstream
> Environment liquids and gas price realizations*
2Q11 |
1Q11 | 2Q10 | 2Q11 vs 2Q10 |
1H10 | 1H10 | 1H11 vs 1H10 |
||||||||||||||||||||
117.0 | 105.4 | 78.2 | +50% | Brent ($/b) |
111.1 | 77.3 | +44% | |||||||||||||||||||
110.6 | 99.5 | 74.8 | +48% | Average liquids price ($/b) |
104.6 | 74.5 | +40% | |||||||||||||||||||
6.60 | 6.19 | 4.82 | +37% | Average gas price ($/Mbtu) |
6.39 | 4.94 | +29% | |||||||||||||||||||
76.9 | 71.7 | 54.8 | +40% | Average hydrocarbons price ($/boe) |
74.1 | 55.2 | +34% |
* | Consolidated subsidiaries, excluding fixed margin and buy-back contracts. |
> Production
2Q11 |
1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Hydrocarbon production |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||
2,311 | 2,371 | 2,359 | -2% | Combined production (kboe/d) |
2,341 | 2,393 | -2% | |||||||||||||||||||
1,197 | 1,293 | 1,327 | -10% | Liquids (kb/d) |
1,245 | 1,350 | -8% | |||||||||||||||||||
6,077 | 5,880 | 5,549 | +10% | Gas (Mcf/d) |
5,979 | 5,689 | +5% |
Hydrocarbon production was 2,311 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2011, a decrease of 2% compared to the second quarter 2010, essentially as a result of:
| -3% for normal decline and scheduled maintenance, net of production ramp-ups on new projects; |
| +4.5% for changes in the portfolio, integrating net share of Novatek production and impact of various asset sales; |
| -2% for the price effect6; |
| -2.5% for disruptions related to security conditions, mainly in Libya; and |
| +1% for the end of OPEC reductions. |
In the first half 2011, hydrocarbon production was 2,341 kboe/d, a decrease of 2% compared to the first half 2010, essentially as a result of:
| -1.5% for normal decline and scheduled maintenance, net of production ramp-ups on new projects; |
| +2% for changes in the portfolio, integrating net share of Novatek production and impact of various asset sales; |
| -2% for the price effect; |
| -2% for disruptions related to security conditions, mainly in Libya; and |
| +1.5% for the end of OPEC reductions. |
6 | The price effect refers to the impact of changing hydrocarbon prices on entitlement volumes. |
4
> Results
2Q11 |
1Q11 | 2Q10 | 2Q10 vs 2Q09 |
in millions of euros |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||
5,166 | 6,144 | 4,546 | +14 | % | Non-Group sales |
11,310 | 9,115 | +24 | % | |||||||||||||||||
5,335 | 5,905 | 4,607 | +16 | % | Operating income |
11,240 | 8,768 | +28 | % | |||||||||||||||||
55 | (84 | ) | | n/a | Adjustments affecting operating income |
(29 | ) | | n/a | |||||||||||||||||
5,390 | 5,821 | 4,607 | +17 | % | Adjusted operating income* |
11,211 | 8,768 | +28 | % | |||||||||||||||||
2,457 | 2,849 | 2,203 | +12 | % | Adjusted net operating income* |
5,306 | 4,174 | +27 | % | |||||||||||||||||
366 | 374 | 271 | +35 | % | Includes income from equity affiliates |
740 | 606 | +22 | % | |||||||||||||||||
6,868 | 5,232 | 2,723 | x2.5 | Investments |
12,100 | 5,866 | x2.1 | |||||||||||||||||||
921 | 335 | 174 | x5.3 | Divestments |
1,256 | 261 | x4.8 | |||||||||||||||||||
5,605 | 4,643 | 4,154 | +35 | % | Cash flow from operating activities |
10,248 | 8,834 | +16 | % |
* | Detail of adjustment items shown in business segment information starting on page 22 and on page 34 of this exhibit. |
Adjusted net operating income from the Upstream segment was 2,457 million in the second quarter 2011 compared to 2,203 million in the second quarter 2010, an increase of 12%, reflecting mainly the increase in hydrocarbon prices.
Adjusted net operating income for the Upstream segment excludes special items. The exclusion of special items had a negative impact on Upstream adjusted net operating income of 76 million in the second quarter 2011 and a positive impact of 27 million in the second quarter 2010.
The effective tax rate for the Upstream segment was 61.6% compared to 58.3% in the second quarter 2010, essentially due to income contribution mix effects as well as higher UK petroleum taxes. The effective tax rate for the Upstream segment was 57.6% in the first quarter 2011.
Adjusted net operating income from the Upstream segment in the first half 2011 was 5,306 million compared to 4,174 million in the first half 2010, an increase of 27%, reflecting essentially the increase in hydrocarbon prices.
The return on average capital employed (ROACE7) for the Upstream segment was 21% for the twelve months ended June 30, 2011, compared to 22% for the twelve months ended March 31, 2011, and 21% for the full year 2010. The annualized second quarter 2011 ROACE for the Upstream segment was 22%.
Downstream
> Refinery throughput and utilization rates*
2Q11 |
1Q11 | 2Q10 | 2Q11 vs 2Q10 |
in millions of euros |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||
1,855 | 2,012 | 2,141 | -13% | Total refinery throughput (kb/d) |
1,934 | 2,067 | -6% | |||||||||||||||||||
692 | 745 | 784 | -12% | France |
719 | 732 | -2% | |||||||||||||||||||
877 | 1,047 | 1,110 | -21% | Rest of Europe |
962 | 1,080 | -11% | |||||||||||||||||||
286 | 220 | 247 | +16% | Rest of world |
253 | 255 | -1% | |||||||||||||||||||
Utilization rates** |
||||||||||||||||||||||||||
75% | 79% | 78% | Based on crude only |
77% | 75% | |||||||||||||||||||||
79% | 85% | 83% | Based on crude and other feedstock |
82% | 80% |
* | Includes share of CEPSA and, starting October 2010, of TotalErg. |
** | Based on distillation capacity at the beginning of the year. |
In the second quarter 2011, refinery throughput decreased by 13% compared to the second quarter 2010 and by 8% compared to the first quarter 2011, mainly due to scheduled turnarounds at the Grandpuits, Leuna and Antwerp refineries.
The utilization rate based on crude and other feedstock was 79% in the second quarter 2011 compared to 85% in the first quarter 2011 and 83% in the second quarter 2010.
In the first half 2011, refinery throughput decreased by 6% compared to the first half 2010, reflecting essentially the work at the Lindsey and Port Arthur refineries as well as the scheduled turnarounds in the second quarter.
7 | Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 12 of this exhibit. |
5
> Results
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
in millions of euros (except ERMI refining margins) |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
16.3 | 24.6 | 31.2 | -48 | % | European refining margin indicator - ERMI ($/t) |
20.4 | 30.4 | -33 | % | |||||||||||||||||||
34,551 | 34,769 | 32,190 | +7 | % | Non-Group sales |
69,320 | 60,998 | +14 | % | |||||||||||||||||||
93 | 1,512 | * | 804 | -88 | % | Operating income |
1,605 | 1,325 | +21 | % | ||||||||||||||||||
135 | (1,226 | ) | 255 | -47 | % | Adjustments affecting operating income |
(1,091 | ) | 585 | n/a | ||||||||||||||||||
228 | 286 | 549 | -58 | % | Adjusted operating income** |
514 | 740 | -31 | % | |||||||||||||||||||
197 | 276 | 483 | -59 | % | Adjusted net operating income** |
473 | 638 | -26 | % | |||||||||||||||||||
23 | 24 | 44 | -48 | % | Includes income from equity affiliates |
47 | 58 | -19 | % | |||||||||||||||||||
462 | 264 | 562 | -18 | % | Investments |
726 | 1,018 | -29 | % | |||||||||||||||||||
28 | 23 | 11 | x2.5 | Divestments |
51 | 38 | +34 | % | ||||||||||||||||||||
7 | 1,158 | 1,042 | n/a | Cash flow from operating activities |
1,165 | 1,496 | -22 | % |
* | Corrected 1Q11 data. |
** | Detail of adjustment items shown in business segment information starting on page 22 and on page 34 of this exhibit. |
The European refining margin indicator (ERMI) averaged 16.3 $/t in the second quarter 2011, or approximately one-half of the 31.2 $/t average of the second quarter 2010.
Adjusted net operating income from the Downstream segment was 197 million in the second quarter 2011, compared to 483 million in the second quarter 2010.
Adjusted net operating income for the Downstream segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a positive impact on Downstream adjusted net operating income of 42 million in the second quarter 2011 and a negative impact of 195 million in the second quarter 2010. The exclusion of special items had a positive impact on Downstream adjusted net operating income of 45 million in the second quarter 2011 and no impact in the second quarter 2010.
Adjusted net operating income from the Downstream segment in the first half 2011 was 473 million, a decrease of 26% compared to the first half 2010. This decrease reflects essentially the unfavorable market conditions for refining and the reduced capacity of European refining during the second quarter due to maintenance.
The ROACE for the Downstream segment was 6% for the twelve months ended June 30, 2011, compared to 9% for the twelve months ended March 31, 2011, and 8% for the full year 2010. The annualized second quarter 2011 ROACE for the Downstream segment was 5%.
Chemicals
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
in millions of euros |
1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
5,291 | 5,105 | 4,589 | +15 | % | Non-Group sales |
10,396 | 8,812 | +18 | % | |||||||||||||||||||
3,400 | 3,319 | 2,794 | +22 | % | Base chemicals |
6,719 | 5,326 | +26 | % | |||||||||||||||||||
1,891 | 1,786 | 1,784 | +6 | % | Specialties |
3,677 | 3,475 | +6 | % | |||||||||||||||||||
263 | 392 | 240 | +10 | % | Operating income |
655 | 500 | +31 | % | |||||||||||||||||||
15 | (130 | ) | (65 | ) | n/a | Adjustments affecting operating income |
(115 | ) | 41 | n/a | ||||||||||||||||||
278 | 262 | 305 | -9 | % | Adjusted operating income* |
540 | 459 | +18 | % | |||||||||||||||||||
247 | 238 | 274 | -10 | % | Adjusted net operating income* |
485 | 431 | +13 | % | |||||||||||||||||||
132 | 119 | 149 | -11 | % | Base chemicals |
251 | 193 | +30 | % | |||||||||||||||||||
118 | 121 | 124 | -5 | % | Specialties |
239 | 241 | -1 | % | |||||||||||||||||||
209 | 171 | 144 | +45 | % | Investments |
380 | 238 | +60 | % | |||||||||||||||||||
12 | 14 | 328 | -96 | % | Divestments |
26 | 334 | -92 | % | |||||||||||||||||||
138 | (144 | ) | 477 | -71 | % | Cash flow from operating activities |
(6 | ) | 387 | n/a |
* | Detail of adjustment items shown in business segment information starting on page 22 and on page 34 of this exhibit. |
In the second quarter 2011, the environment for Chemicals remained favorable, in line with the second quarter 2010.
Sales for the Chemical segment were 5.3 billion, an increase of 15% compared to the second quarter 2010.
The adjusted net operating income for the Chemicals segment in the second quarter 2011 was 247 million compared to 274 million in the second quarter 2010, which reflected strong petrochemical margins in Europe and the United States. Results for Specialty chemicals were in line with the strong results shown over recent quarters in a still favorable environment.
Adjusted net operating income for the Chemicals segment excludes any after-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a positive impact on the Chemicals segments adjusted net operating income of 17 million in the second quarter 2011 and a positive impact of 25 million in the second quarter 2010. The exclusion of special items had a positive impact on the Chemicals segments adjusted net operating income of 66 million in the second quarter of 2011 and a negative impact of 4 million in the second quarter 2010.
6
In the first half 2011, adjusted net operating income for the Chemicals segment was 485 million compared to 431 million in the first half 2010. The increase reflects essentially the progress made by Base chemicals in a generally favorable environment with, in particular, an increased contribution from activities in Qatar.
The ROACE for the Chemicals segment was 12% for the twelve months ended June 30, 2011, stable compared to the twelve months ended March 31, 2011, and the full year 2010. The annualized second quarter 2011 ROACE for the Chemicals segment was 13%.
| Summary and outlook |
In October 2010, TOTAL announced that starting in 2011 the interim dividend would be paid on a quarterly basis. For the interim dividend related to the second quarter 2011, the Board of Directors at its meeting on July 28, 2011, decided to pay on December 22, 20119 an interim dividend of 0.57 per share.
TOTAL announced that it would not seek a renewal of its Global Tax Consolidation status in France. Effective 2011, the Group will use the prevailing French tax law.
Since the start of the third quarter 2011, the Brent price has continued to trade around 110 $/b but the environment for European refining has remained difficult.
In the Upstream, while the first results from high-potential exploration wells are expected in the second half, the Group plans to sanction several major projects, notably in Australia and Russia, to pursue the development of major new producing areas. At the same time, the fourth quarter start-up of Pazflor in Angola is expected to contribute substantially to near-term production growth.
In the Downstream and Chemicals, the Group expects to benefit fully from its new deep-conversion unit at the Port Arthur refinery in the United States that was started up in the second quarter, while continuing to improve the competitiveness of its main Downstream-Chemicals platforms.
In the coming months, TOTAL expects to finalize the pending acquisitions and asset sales in all of its operating segments, confirming its strategy of rebalancing its activities while maintaining the strength of its balance sheet.
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; |
9 | Ex-dividend date will be December 19, 2011. |
7
| 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, armed conflict, trade and regulatory matters and actual or proposed sanctions on companies that conduct business in certain countries; |
| 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, 2010.
8
Operating information by segment
Second quarter and first half 2010
| UPSTREAM |
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Combined liquids and gas production by region (kboe/d) | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
475 | 582 | 577 | -18 | % | Europe |
528 | 612 | -14 | % | |||||||||||||||||||
628 | 691 | 752 | -16 | % | Africa |
659 | 749 | -12 | % | |||||||||||||||||||
571 | 581 | 515 | +11 | % | Middle East |
576 | 515 | +12 | % | |||||||||||||||||||
66 | 68 | 63 | +5 | % | North America |
67 | 65 | +3 | % | |||||||||||||||||||
190 | 185 | 184 | +3 | % | South America |
188 | 178 | +6 | % | |||||||||||||||||||
241 | 242 | 246 | -2 | % | Asia-Pacific |
241 | 250 | -4 | % | |||||||||||||||||||
140 | 22 | 22 | x6.4 | CIS |
82 | 24 | x3.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2,311 | 2,371 | 2,359 | -2 | % | Total production |
2,341 | 2,393 | -2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
605 | 500 | 434 | +39 | % | Includes equity and non-consolidated affiliates |
552 | 425 | +30 | % | |||||||||||||||||||
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Liquids production by region (kb/d) | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
240 | 263 | 258 | -7 | % | Europe |
251 | 280 | -10 | % | |||||||||||||||||||
484 | 551 | 611 | -21 | % | Africa |
517 | 616 | -16 | % | |||||||||||||||||||
321 | 325 | 309 | +4 | % | Middle East |
323 | 305 | +6 | % | |||||||||||||||||||
26 | 32 | 30 | -13 | % | North America |
29 | 31 | -6 | % | |||||||||||||||||||
73 | 82 | 76 | -4 | % | South America |
78 | 74 | +5 | % | |||||||||||||||||||
28 | 28 | 30 | -7 | % | Asia-Pacific |
28 | 31 | -10 | % | |||||||||||||||||||
25 | 12 | 13 | +92 | % | CIS |
19 | 13 | +46 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,197 | 1,293 | 1,327 | -10 | % | Total production |
1,245 | 1,350 | -8 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
331 | 325 | 298 | +11 | % | Includes equity and non-consolidated affiliates |
328 | 291 | +13 | % |
9
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Gas production by region (Mcf/d) | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
1,284 | 1,743 | 1,689 | -24 | % | Europe |
1,512 | 1,814 | -17 | % | |||||||||||||||||||
734 | 717 | 704 | +4 | % | Africa |
726 | 675 | +8 | % | |||||||||||||||||||
1,355 | 1,390 | 1,098 | +23 | % | Middle East |
1,372 | 1,143 | +20 | % | |||||||||||||||||||
226 | 204 | 191 | +18 | % | North America |
215 | 190 | +13 | % | |||||||||||||||||||
650 | 571 | 594 | +9 | % | South America |
611 | 574 | +6 | % | |||||||||||||||||||
1,209 | 1,202 | 1,220 | -1 | % | Asia-Pacific |
1,206 | 1,234 | -2 | % | |||||||||||||||||||
619 | 53 | 53 | x11.7 | CIS |
337 | 59 | x5.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
6,077 | 5,880 | 5,549 | +10 | % | Total production |
5,979 | 5,689 | +5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,478 | 947 | 737 | x2.0 | Includes equity and non-consolidated affiliates |
1,214 | 723 | +68 | % | ||||||||||||||||||||
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Liquefied natural gas | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
3.34 | 3.38 | 3.00 | +11 | % | LNG sales* (Mt) |
6.73 | 5.85 | +15 | % |
* | Sales, Group share, excluding trading ; 2010 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2010 SEC coefficient. |
| DOWNSTREAM |
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
Refined products sales by region (kb/d)* | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
1,855 | 1,967 | ** | 1,881 | -1 | % | Europe |
1,910 | 1,915 | | |||||||||||||||||||
310 | 294 | 301 | +3 | % | Africa |
302 | 294 | +3 | % | |||||||||||||||||||
104 | 102 | 115 | -10 | % | Americas |
103 | 131 | -21 | % | |||||||||||||||||||
169 | 167 | 163 | +4 | % | Rest of world |
169 | 154 | +10 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2,438 | 2,530 | 2,460 | -1 | % | Total consolidated sales |
2,484 | 2,494 | | ||||||||||||||||||||
1,341 | 1,187 | 1,526 | -12 | % | Trading |
1,264 | 1,258 | | ||||||||||||||||||||
3,779 | 3,717 | 3,986 | -5 | % | Total refined product sales |
3,748 | 3,752 | |
* | Includes share of CEPSA and, starting October 2010, of TotalErg. |
** | Corrected 1Q11 data. |
10
Investments Divestments
2Q11 | 1Q11 | 2Q10 | 2Q11 vs 2Q10 |
in millions of euros | 1H11 | 1H10 | 1H11 vs 1H10 |
|||||||||||||||||||||
3,467 | 2,787 | 3,067 | +13 | % | Investments excluding acquisitions* |
6,254 | 5,494 | +14 | % | |||||||||||||||||||
242 | 217 | 221 | +10 | % | Capitalized exploration |
459 | 420 | +9 | % | |||||||||||||||||||
210 | (208 | ) | 170 | +24 | % | Changes in non-current loans** |
2 | 281 | n/a | |||||||||||||||||||
4,008 | 2,529 | 305 | x13.1 | Acquisitions |
6,537 | 1,522 | x4.3 | |||||||||||||||||||||
7,475 | 5,316 | 3,372 | x2.2 | Investments including acquisitions* |
12,791 | 7,016 | +82 | % | ||||||||||||||||||||
1,243 | 296 | 758 | +64 | % | Asset sales |
1,539 | 1,723 | -11 | % | |||||||||||||||||||
6,232 | 5,020 | 2,596 | x2.4 | Net investments |
11,252 | 5,257 | x2.1 |
* | Includes changes in non-current loans. |
** | Includes net investments in equity affiliates and non-consolidated companies + net financing for employees related stock purchase plans. |
Net-debt-to-equity ratio
in millions of euros | 6/30/2011 | 3/31/2011 | 6/30/2010 | |||||||||
Current borrowings |
12,289 | 11,674 | 8,521 | |||||||||
Net current financial assets |
(2,737 | ) | (1,709 | ) | (1,225 | ) | ||||||
Non-current financial debt |
20,410 | 20,215 | 22,813 | |||||||||
Hedging instruments of non-current debt |
(1,756 | ) | (1,352 | ) | (1,812 | ) | ||||||
Cash and cash equivalents |
(13,387 | ) | (17,327 | ) | (14,832 | ) | ||||||
Net debt |
14,819 | 11,501 | 13,465 | |||||||||
Shareholders equity |
61,371 | 62,535 | 60,955 | |||||||||
Estimated dividend payable |
(1,248 | ) | (3,832 | ) | (2,547 | ) | ||||||
Minority interests |
934 | 898 | 858 | |||||||||
Equity |
61,057 | 59,601 | 59,266 | |||||||||
Net-debt-to-equity ratio |
24.3 | % | 19.3 | % | 22.7 | % |
11
Return on average capital employed
| Twelve months ended June 30, 2011 |
in millions of euros | Upstream | Downstream | Chemicals | |||||||||
Adjusted net operating income |
9,729 | 1,003 | 911 | |||||||||
Capital employed at 6/30/2010* |
43,908 | 16,010 | 7,286 | |||||||||
Capital employed at 6/30/2011* |
46,671 | 14,921 | 7,938 | |||||||||
ROACE |
21.5 | % | 6.5 | % | 12.0 | % |
* | At replacement cost (excluding after-tax inventory effect). |
| Twelve months ended March 31, 2011 |
in millions of euros | Upstream | Downstream | Chemicals | |||||||||
Adjusted net operating income |
9,475 | 1,289 | 938 | |||||||||
Capital employed at 3/31/2010* |
39,925 | 15,634 | 7,412 | |||||||||
Capital employed at 3/31/2011* |
44,528 | 14,527 | 7,681 | |||||||||
ROACE |
22.4 | % | 8.5 | % | 12.4 | % |
* | At replacement cost (excluding after-tax inventory effect). |
| Twelve months ended December 31, 2010 |
in millions of euros | Upstream | Downstream | Chemicals | |||||||||
Adjusted net operating income |
8,597 | 1,168 | 857 | |||||||||
Capital employed at 12/31/2009* |
37,397 | 15,299 | 6,898 | |||||||||
Capital employed at 12/31/2010* |
43,972 | 15,561 | 7,312 | |||||||||
ROACE |
21.1 | % | 7.6 | % | 12.1 | % |
* | At replacement cost (excluding after-tax inventory effect). |
12
MAIN INDICATORS
Chart updated around the middle of the month following the end of each quarter.
/ $ | European refining margins ERMI* ($/t) ** |
Brent ($/b) | Average liquids price*** ($/b) |
Average gas price ($/Mbtu)*** |
||||||||||||||||
Second quarter 2011 |
1.44 | 16.3 | 117.0 | 110.6 | 6.60 | |||||||||||||||
First quarter 2011 |
1.37 | 24.6 | 105.4 | 99.5 | 6.19 | |||||||||||||||
Fourth quarter 2010 |
1.36 | 32.3 | 86.5 | 83.7 | 5.62 | |||||||||||||||
Third quarter 2010 |
1.29 | 16.4 | 76.9 | 72.8 | 5.13 | |||||||||||||||
Second quarter 2010 |
1.27 | 31.2 | 78.2 | 74.8 | 4.82 |
* | 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 and buy-back contracts. |
Disclaimer: these data are based on TOTALs reporting and are not audited. They are subject to change.
13
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
2nd
quarter 2011 |
1st
quarter 2011 |
2nd
quarter 2010 |
|||||||||
Sales |
45,009 | 46,029 | 41,329 | |||||||||
Excise taxes |
(4,544 | ) | (4,427 | ) | (5,002 | ) | ||||||
Revenues from sales |
40,465 | 41,602 | 36,327 | |||||||||
Purchases, net of inventory variation |
(28,386 | ) | (27,255 | ) | (23,929 | ) | ||||||
Other operating expenses |
(4,804 | ) | (4,702 | ) | (4,833 | ) | ||||||
Exploration costs |
(179 | ) | (259 | ) | (292 | ) | ||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,531 | ) | (1,686 | ) | (1,757 | ) | ||||||
Other income |
246 | 85 | 114 | |||||||||
Other expense |
(138 | ) | (59 | ) | (114 | ) | ||||||
Financial interest on debt |
(159 | ) | (136 | ) | (113 | ) | ||||||
Financial income from marketable securities & cash equivalents |
55 | 47 | 24 | |||||||||
Cost of net debt |
(104 | ) | (89 | ) | (89 | ) | ||||||
Other financial income |
335 | 75 | 142 | |||||||||
Other financial expense |
(104 | ) | (108 | ) | (95 | ) | ||||||
Equity in income (loss) of affiliates |
444 | 506 | 513 | |||||||||
Income taxes |
(3,432 | ) | (4,072 | ) | (2,819 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,812 | 4,038 | 3,168 | |||||||||
|
|
|
|
|
|
|||||||
Group share |
2,726 | 3,946 | 3,101 | |||||||||
Minority interests |
86 | 92 | 67 | |||||||||
|
|
|
|
|
|
|||||||
Earnings per share () |
1.21 | 1.76 | 1.39 | |||||||||
|
|
|
|
|
|
|||||||
Fully-diluted earnings per share () |
1.21 | 1.75 | 1.38 | |||||||||
|
|
|
|
|
|
(a) | Except for per share amounts. |
14
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
2nd
quarter 2011 |
1st
quarter 2011 |
2nd
quarter 2010 |
|||||||||
Consolidated net income |
2,812 | 4,038 | 3,168 | |||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
||||||||||||
Currency translation adjustment |
(666 | ) | (1,978 | ) | 3,149 | |||||||
Available for sale financial assets |
315 | 115 | (49 | ) | ||||||||
Cash flow hedge |
(11 | ) | (24 | ) | (75 | ) | ||||||
Share of other comprehensive income of associates, net amount |
(16 | ) | (87 | ) | 242 | |||||||
Other |
(4 | ) | 2 | 2 | ||||||||
Tax effect |
(35 | ) | 6 | 26 | ||||||||
Total other comprehensive income (net amount) |
(417 | ) | (1,966 | ) | 3,295 | |||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
2,395 | 2,072 | 6,463 | |||||||||
|
|
|
|
|
|
|||||||
- Group share |
2,326 | 2,030 | 6,368 | |||||||||
- Minority interests |
69 | 42 | 95 |
15
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
1st half 2011 |
1st half 2010 |
||||||
Sales |
91,038 | 78,932 | ||||||
Excise taxes |
(8,971 | ) | (9,444 | ) | ||||
Revenues from sales |
82,067 | 69,488 | ||||||
Purchases, net of inventory variation |
(55,641 | ) | (45,630 | ) | ||||
Other operating expenses |
(9,506 | ) | (9,545 | ) | ||||
Exploration costs |
(438 | ) | (507 | ) | ||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,217 | ) | (3,456 | ) | ||||
Other income |
331 | 274 | ||||||
Other expense |
(197 | ) | (326 | ) | ||||
Financial interest on debt |
(295 | ) | (213 | ) | ||||
Financial income from marketable securities & cash equivalents |
102 | 48 | ||||||
Cost of net debt |
(193 | ) | (165 | ) | ||||
Other financial income |
410 | 213 | ||||||
Other financial expense |
(212 | ) | (190 | ) | ||||
Equity in income (loss) of affiliates |
950 | 1,037 | ||||||
Income taxes |
(7,504 | ) | (5,347 | ) | ||||
|
|
|
|
|||||
Consolidated net income |
6,850 | 5,846 | ||||||
|
|
|
|
|||||
Group share |
6,672 | 5,714 | ||||||
Minority interests |
178 | 132 | ||||||
|
|
|
|
|||||
Earnings per share () |
2.98 | 2.56 | ||||||
|
|
|
|
|||||
Fully-diluted earnings per share () |
2.96 | 2.55 | ||||||
|
|
|
|
(a) | Except for per share amounts. |
16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
1st half 2011 |
1st half 2010 |
||||||
Consolidated net income |
6,850 | 5,846 | ||||||
|
|
|
|
|||||
Other comprehensive income |
||||||||
Currency translation adjustment |
(2,644 | ) | 4,996 | |||||
Available for sale financial assets |
430 | (52 | ) | |||||
Cash flow hedge |
(35 | ) | (51 | ) | ||||
Share of other comprehensive income of associates, net amount |
(103 | ) | 475 | |||||
Other |
(2 | ) | 3 | |||||
Tax effect |
(29 | ) | 18 | |||||
|
|
|
|
|||||
Total other comprehensive income (net amount) |
(2,383 | ) | 5,389 | |||||
|
|
|
|
|||||
Comprehensive income |
4,467 | 11,235 | ||||||
|
|
|
|
|||||
- Group share |
4,356 | 11,044 | ||||||
- Minority interests |
111 | 191 |
17
CONSOLIDATED BALANCE SHEET
TOTAL
(M) |
June 30, 2011 (unaudited) |
March 31, 2011 (unaudited) |
December 31, 2010 |
June 30, 2010 (unaudited) |
||||||||||||
ASSETS |
||||||||||||||||
Non-current assets |
||||||||||||||||
Intangible assets, net |
8,961 | 9,211 | 8,917 | 8,767 | ||||||||||||
Property, plant and equipment, net |
55,323 | 54,955 | 54,964 | 57,825 | ||||||||||||
Equity affiliates : investments and loans |
11,054 | 8,143 | 11,516 | 15,363 | ||||||||||||
Other investments |
5,287 | 4,458 | 4,590 | 1,220 | ||||||||||||
Hedging instruments of non-current financial debt |
1,756 | 1,352 | 1,870 | 1,812 | ||||||||||||
Other non-current assets |
3,727 | 3,466 | 3,655 | 3,437 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current assets |
86,108 | 81,585 | 85,512 | 88,424 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current assets |
||||||||||||||||
Inventories, net |
15,950 | 15,516 | 15,600 | 15,130 | ||||||||||||
Accounts receivable, net |
18,267 | 19,758 | 18,159 | 18,193 | ||||||||||||
Other current assets |
8,474 | 8,766 | 7,483 | 8,289 | ||||||||||||
Current financial assets |
3,122 | 2,026 | 1,205 | 1,603 | ||||||||||||
Cash and cash equivalents |
13,387 | 17,327 | 14,489 | 14,832 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
59,200 | 63,393 | 56,936 | 58,047 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Assets classified as held for sale |
5,211 | 4,914 | 1,270 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
150,519 | 149,892 | 143,718 | 146,471 | ||||||||||||
LIABILITIES & SHAREHOLDERS EQUITY |
||||||||||||||||
Shareholders equity |
||||||||||||||||
Common shares |
5,903 | 5,878 | 5,874 | 5,872 | ||||||||||||
Paid-in surplus and retained earnings |
64,148 | 64,677 | 60,538 | 58,274 | ||||||||||||
Currency translation adjustment |
(5,177 | ) | (4,517 | ) | (2,495 | ) | 381 | |||||||||
Treasury shares |
(3,503 | ) | (3,503 | ) | (3,503 | ) | (3,572 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity - Group Share |
61,371 | 62,535 | 60,414 | 60,955 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Minority interests |
934 | 898 | 857 | 858 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity |
62,305 | 63,433 | 61,271 | 61,813 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||||||
Deferred income taxes |
9,619 | 10,204 | 9,947 | 10,328 | ||||||||||||
Employee benefits |
2,111 | 2,103 | 2,171 | 2,181 | ||||||||||||
Provisions and other non-current liabilities |
8,419 | 8,584 | 9,098 | 9,418 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
20,149 | 20,891 | 21,216 | 21,927 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current financial debt |
20,410 | 20,215 | 20,783 | 22,813 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current liabilities |
||||||||||||||||
Accounts payable |
18,395 | 18,383 | 18,450 | 17,557 | ||||||||||||
Other creditors and accrued liabilities |
16,191 | 14,812 | 11,989 | 13,462 | ||||||||||||
Current borrowings |
12,289 | 11,674 | 9,653 | 8,521 | ||||||||||||
Other current financial liabilities |
385 | 317 | 159 | 378 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current liabilities |
47,260 | 45,186 | 40,251 | 39,918 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities directly associated with the assets classified as held for sale |
395 | 167 | 197 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities and shareholders equity |
150,519 | 149,892 | 143,718 | 146,471 |
18
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
2nd
quarter 2011 |
1st
quarter 2011 |
2nd
quarter 2010 |
|||||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||||||
Consolidated net income |
2,812 | 4,038 | 3,168 | |||||||||
Depreciation, depletion and amortization |
1,641 | 1,888 | 1,996 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes |
283 | 565 | 239 | |||||||||
Impact of coverage of pension benefit plans |
| | | |||||||||
(Gains) losses on sales of assets |
(229 | ) | (6 | ) | (24 | ) | ||||||
Undistributed affiliates equity earnings |
59 | (182 | ) | 79 | ||||||||
(Increase) decrease in working capital |
476 | (587 | ) | (522 | ) | |||||||
Other changes, net |
22 | (2 | ) | 6 | ||||||||
|
|
|
|
|
|
|||||||
Cash flow from operating activities |
5,064 | 5,714 | 4,942 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||||||
Intangible assets and property, plant and equipment additions |
(3,215 | ) | (5,374 | ) | (2,958 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired |
(979 | ) | | | ||||||||
Investments in equity affiliates and other securities |
(3,071 | ) | (150 | ) | (244 | ) | ||||||
Increase in non-current loans |
(305 | ) | (159 | ) | (244 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenditures |
(7,570 | ) | (5,683 | ) | (3,446 | ) | ||||||
Proceeds from disposal of intangible assets and property, plant and equipment |
620 | 6 | 89 | |||||||||
Proceeds from disposal of subsidiaries, net of cash sold |
171 | | 321 | |||||||||
Proceeds from disposal of non-current investments |
452 | 290 | 348 | |||||||||
Repayment of non-current loans |
95 | 367 | 92 | |||||||||
|
|
|
|
|
|
|||||||
Total divestments |
1,338 | 663 | 850 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow used in investing activities |
(6,232 | ) | (5,020 | ) | (2,596 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||||||
Issuance (repayment) of shares: |
||||||||||||
- Parent company shareholders |
354 | 50 | 6 | |||||||||
- Treasury shares |
| | 31 | |||||||||
- Minority shareholders |
| | | |||||||||
Dividends paid: |
||||||||||||
- Parent company shareholders |
(2,572 | ) | | (2,548 | ) | |||||||
- Minority shareholders |
(61 | ) | (1 | ) | (82 | ) | ||||||
Other transactions with minority shareholders |
59 | | (450 | ) | ||||||||
Net issuance (repayment) of non-current debt |
678 | 2,228 | 1,979 | |||||||||
Increase (decrease) in current borrowings |
(200 | ) | 488 | 977 | ||||||||
Increase (decrease) in current financial assets and liabilities |
(1,123 | ) | (511 | ) | (453 | ) | ||||||
Cash flow used in financing activities |
(2,865 | ) | 2,254 | (540 | ) | |||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and cash equivalents |
(4,033 | ) | 2,948 | 1,806 | ||||||||
Effect of exchange rates |
93 | (110 | ) | 72 | ||||||||
Cash and cash equivalents at the beginning of the period |
17,327 | 14,489 | 12,954 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period |
13,387 | 17,327 | 14,832 | |||||||||
|
|
|
|
|
|
19
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
1st
half 2011 |
1st
half 2010 |
||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||
Consolidated net income |
6,850 | 5,846 | ||||||
Depreciation, depletion and amortization |
3,529 | 3,867 | ||||||
Non-current liabilities, valuation allowances and deferred taxes |
848 | 294 | ||||||
Impact of coverage of pension benefit plans |
| | ||||||
(Gains) losses on sales of assets |
(235 | ) | (172 | ) | ||||
Undistributed affiliates equity earnings |
(123 | ) | (183 | ) | ||||
(Increase) decrease in working capital |
(111 | ) | 513 | |||||
Other changes, net |
20 | 37 | ||||||
|
|
|
|
|||||
Cash flow from operating activities |
10,778 | 10,202 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||
Intangible assets and property, plant and equipment additions |
(8,589 | ) | (6,422 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired |
(979 | ) | | |||||
Investments in equity affiliates and other securities |
(3,221 | ) | (313 | ) | ||||
Increase in non-current loans |
(464 | ) | (420 | ) | ||||
|
|
|
|
|||||
Total expenditures |
(13,253 | ) | (7,155 | ) | ||||
Proceeds from disposal of intangible assets and property, plant and equipment |
626 | 123 | ||||||
Proceeds from disposal of subsidiaries, net of cash sold |
171 | 321 | ||||||
Proceeds from disposal of non-current investments |
742 | 1,279 | ||||||
Repayment of non-current loans |
462 | 175 | ||||||
|
|
|
|
|||||
Total divestments |
2,001 | 1,898 | ||||||
|
|
|
|
|||||
Cash flow used in investing activities |
(11,252 | ) | (5,257 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||
Issuance (repayment) of shares: |
||||||||
- Parent company shareholders |
404 | 11 | ||||||
- Treasury shares |
| 49 | ||||||
- Minority shareholders |
| | ||||||
Dividends paid: |
||||||||
- Parent company shareholders |
(2,572 | ) | (2,548 | ) | ||||
- Minority shareholders |
(62 | ) | (82 | ) | ||||
Other transactions with minority shareholders |
59 | (450 | ) | |||||
Net issuance (repayment) of non-current debt |
2,906 | 2,042 | ||||||
Increase (decrease) in current borrowings |
288 | 376 | ||||||
Increase (decrease) in current financial assets and liabilities |
(1,634 | ) | (950 | ) | ||||
Cash flow used in financing activities |
(611 | ) | (1,552 | ) | ||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
(1,085 | ) | 3,393 | |||||
Effect of exchange rates |
(17 | ) | (223 | ) | ||||
Cash and cash equivalents at the beginning of the period |
14,489 | 11,662 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at the end of the period |
13,387 | 14,832 | ||||||
|
|
|
|
20
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
TOTAL
(unaudited)
Common shares issued | Paid-in surplus and retained earnings |
Currency translation adjustment |
Treasury shares | Shareholders equity Group Share |
Minority interests |
Total shareholders equity |
||||||||||||||||||||||||||||||
(M) |
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||
As of January 1, 2010 |
2,348,422,884 | 5,871 | 55,372 | (5,069 | ) | (115,407,190 | ) | (3,622 | ) | 52,552 | 987 | 53,539 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income of the first half |
| | 5,714 | | | | 5,714 | 132 | 5,846 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (130 | ) | 5,460 | | | 5,330 | 59 | 5,389 | ||||||||||||||||||||||||||
Comprehensive Income |
| | 5,584 | 5,460 | | | 11,044 | 191 | 11,235 | |||||||||||||||||||||||||||
Dividend |
| | (2,548 | ) | | | | (2,548 | ) | (82 | ) | (2,630 | ) | |||||||||||||||||||||||
Issuance of common shares |
306,577 | 1 | 10 | | | | 11 | | 11 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (1 | ) | | 1,258,812 | 50 | 49 | | 49 | ||||||||||||||||||||||||||
Share-based payments |
| | 59 | | | | 59 | | 59 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Other operations with minority interests |
| | (202 | ) | (10 | ) | | | (212 | ) | (238 | ) | (450 | ) | ||||||||||||||||||||||
Other items |
| | | | | | | | | |||||||||||||||||||||||||||
As of June 30, 2010 |
2,348,729,461 | 5,872 | 58,274 | 381 | (114,148,378 | ) | (3,572 | ) | 60,955 | 858 | 61,813 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income from July 1 to December 31, 2010 |
| | 4,857 | | | | 4,857 | 104 | 4,961 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (86 | ) | (2,879 | ) | | | (2,965 | ) | (50 | ) | (3,015 | ) | ||||||||||||||||||||||
Comprehensive Income |
| | 4,771 | (2,879 | ) | | | 1,892 | 54 | 1,946 | ||||||||||||||||||||||||||
Dividend |
| | (2,550 | ) | | | | (2,550 | ) | (70 | ) | (2,620 | ) | |||||||||||||||||||||||
Issuance of common shares |
911,470 | 2 | 28 | | | | 30 | | 30 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (69 | ) | | 1,660,699 | 69 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 81 | | | | 81 | | 81 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Other operations with minority interests |
| | 3 | 3 | | | 6 | 15 | 21 | |||||||||||||||||||||||||||
Other items |
| | | | | | | | | |||||||||||||||||||||||||||
As of December 31, 2010 |
2,349,640,931 | 5,874 | 60,538 | (2,495 | ) | (112,487,679 | ) | (3,503 | ) | 60,414 | 857 | 61,271 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income of the first half |
| | 6,672 | | | | 6,672 | 178 | 6,850 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | 368 | (2,684 | ) | | | (2,316 | ) | (67 | ) | (2,383 | ) | |||||||||||||||||||||||
Comprehensive Income |
| | 7,040 | (2,684 | ) | | | 4,356 | 111 | 4,467 | ||||||||||||||||||||||||||
Dividend |
| | (3,888 | ) | | | | (3,888 | ) | (62 | ) | (3,950 | ) | |||||||||||||||||||||||
Issuance of common shares |
11,749,578 | 29 | 375 | | | | 404 | | 404 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 3,804 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 83 | | | | 83 | | 83 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Other operations with minority interests |
| | | 2 | | | 2 | 57 | 59 | |||||||||||||||||||||||||||
Other items |
| | | | | | | (29 | ) | (29 | ) | |||||||||||||||||||||||||
As of June 30, 2011 |
2,361,390,509 | 5,903 | 64,148 | (5,177 | ) | (112,483,875 | ) | (3,503 | ) | 61,371 | 934 | 62,305 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Treasury shares related to the stock option purchase plans and restricted stock grants |
21
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,166 | 34,551 | 5,291 | 1 | | 45,009 | ||||||||||||||||||
Intersegment sales |
6,341 | 1,535 | 345 | 43 | (8,264 | ) | | |||||||||||||||||
Excise taxes |
| (4,544 | ) | | | | (4,544 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,507 | 31,542 | 5,636 | 44 | (8,264 | ) | 40,465 | |||||||||||||||||
Operating expenses |
(5,072 | ) | (31,149 | ) | (5,251 | ) | (161 | ) | 8,264 | (33,369 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,335 | 93 | 263 | (126 | ) | | 5,565 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
473 | 37 | 18 | 255 | | 783 | ||||||||||||||||||
Tax on net operating income |
(3,275 | ) | (20 | ) | (117 | ) | (53 | ) | | (3,465 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,533 | 110 | 164 | 76 | | 2,883 | ||||||||||||||||||
Net cost of net debt |
(71 | ) | ||||||||||||||||||||||
Minority interests |
(86 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,726 | |||||||||||||||||||||||
2nd quarter 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(55 | ) | | | | (55 | ) | |||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(55 | ) | | | | (55 | ) | |||||||||||||||||
Operating expenses |
| (135 | ) | (15 | ) | | (150 | ) | ||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(55 | ) | (135 | ) | (15 | ) | | (205 | ) | |||||||||||||||
Equity in income (loss) of affiliates and other items |
121 | (2 | ) | (37 | ) | 43 | 125 | |||||||||||||||||
Tax on net operating income |
10 | 50 | (31 | ) | (2 | ) | 27 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
76 | (87 | ) | (83 | ) | 41 | (53 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(15 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(68 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| (72 | ) | (15 | ) | | ||||||||||||||||||
On net operating income |
| (42 | ) | (17 | ) | |
2nd quarter 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,221 | 34,551 | 5,291 | 1 | | 45,064 | ||||||||||||||||||
Intersegment sales |
6,341 | 1,535 | 345 | 43 | (8,264 | ) | | |||||||||||||||||
Excise taxes |
| (4,544 | ) | | | | (4,544 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,562 | 31,542 | 5,636 | 44 | (8,264 | ) | 40,520 | |||||||||||||||||
Operating expenses |
(5,072 | ) | (31,014 | ) | (5,236 | ) | (161 | ) | 8,264 | (33,219 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,390 | 228 | 278 | (126 | ) | | 5,770 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
352 | 39 | 55 | 212 | | 658 | ||||||||||||||||||
Tax on net operating income |
(3,285 | ) | (70 | ) | (86 | ) | (51 | ) | | (3,492 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,457 | 197 | 247 | 35 | | 2,936 | ||||||||||||||||||
Net cost of net debt |
(71 | ) | ||||||||||||||||||||||
Minority interests |
(71 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,794 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for per share amounts. |
2nd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
6,868 | 462 | 209 | 31 | 7,570 | |||||||||||||||||
Total divestments |
921 | 28 | 12 | 377 | 1,338 | |||||||||||||||||
Cash flow from operating activities |
5,605 | 7 | 138 | (686 | ) | 5,064 |
22
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,144 | 34,769 | 5,105 | 11 | | 46,029 | ||||||||||||||||||
Intersegment sales |
6,939 | 1,582 | 297 | 41 | (8,859 | ) | | |||||||||||||||||
Excise taxes |
| (4,427 | ) | | | | (4,427 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
13,083 | 31,924 | 5,402 | 52 | (8,859 | ) | 41,602 | |||||||||||||||||
Operating expenses |
(5,938 | ) | (30,093 | ) | (4,891 | ) | (153 | ) | 8,859 | (32,216 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,240 | ) | (319 | ) | (119 | ) | (8 | ) | | (1,686 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,905 | 1,512 | 392 | (109 | ) | | 7,700 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
343 | 59 | 82 | 15 | | 499 | ||||||||||||||||||
Tax on net operating income |
(3,527 | ) | (451 | ) | (124 | ) | | | (4,102 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,721 | 1,120 | 350 | (94 | ) | | 4,097 | |||||||||||||||||
Net cost of net debt |
(59 | ) | ||||||||||||||||||||||
Minority interests |
(92 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,946 | |||||||||||||||||||||||
1st quarter 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
84 | | | | 84 | |||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
84 | | | | 84 | |||||||||||||||||||
Operating expenses |
| 1,226 | 130 | | 1,356 | |||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
84 | 1,226 | 130 | | 1,440 | |||||||||||||||||||
Equity in income (loss) of affiliates and other items |
| 14 | 25 | 11 | 50 | |||||||||||||||||||
Tax on net operating income |
(212 | ) | (396 | ) | (43 | ) | | (651 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(128 | ) | 844 | 112 | 11 | 839 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
3 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
842 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 1,226 | 130 | | ||||||||||||||||||||
On net operating income |
| 844 | 112 | |
1st quarter 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,060 | 34,769 | 5,105 | 11 | | 45,945 | ||||||||||||||||||
Intersegment sales |
6,939 | 1,582 | 297 | 41 | (8,859 | ) | | |||||||||||||||||
Excise taxes |
| (4,427 | ) | | | | (4,427 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
12,999 | 31,924 | 5,402 | 52 | (8,859 | ) | 41,518 | |||||||||||||||||
Operating expenses |
(5,938 | ) | (31,319 | ) | (5,021 | ) | (153 | ) | 8,859 | (33,572 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,240 | ) | (319 | ) | (119 | ) | (8 | ) | | (1,686 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,821 | 286 | 262 | (109 | ) | | 6,260 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
343 | 45 | 57 | 4 | | 449 | ||||||||||||||||||
Tax on net operating income |
(3,315 | ) | (55 | ) | (81 | ) | | | (3,451 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,849 | 276 | 238 | (105 | ) | | 3,258 | |||||||||||||||||
Net cost of net debt |
(59 | ) | ||||||||||||||||||||||
Minority interests |
(95 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
3,104 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.38 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for per share amounts. |
1st quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,232 | 264 | 171 | 16 | | 5,683 | ||||||||||||||||||
Total divestments |
335 | 23 | 14 | 291 | | 663 | ||||||||||||||||||
Cash flow from operating activities |
4,643 | 1,158 | (144 | ) | 57 | | 5,714 |
23
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,546 | 32,190 | 4,589 | 4 | | 41,329 | ||||||||||||||||||
Intersegment sales |
5,717 | 1,394 | 270 | 45 | (7,426 | ) | | |||||||||||||||||
Excise taxes |
| (5,002 | ) | | | | (5,002 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,263 | 28,582 | 4,859 | 49 | (7,426 | ) | 36,327 | |||||||||||||||||
Operating expenses |
(4,364 | ) | (27,460 | ) | (4,483 | ) | (173 | ) | 7,426 | (29,054 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,292 | ) | (318 | ) | (136 | ) | (11 | ) | | (1,757 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
4,607 | 804 | 240 | (135 | ) | | 5,516 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
190 | 124 | 78 | 168 | | 560 | ||||||||||||||||||
Tax on net operating income |
(2,621 | ) | (250 | ) | (65 | ) | 85 | | (2,851 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,176 | 678 | 253 | 118 | | 3,225 | ||||||||||||||||||
Net cost of net debt |
(57 | ) | ||||||||||||||||||||||
Minority interests |
(67 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,101 | |||||||||||||||||||||||
2nd quarter 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| 255 | (57 | ) | | 198 | ||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | (8 | ) | | (8 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
| 255 | (65 | ) | | 190 | ||||||||||||||||||
Equity in income (loss) of affiliates and other items (c) |
(40 | ) | 25 | 18 | (7 | ) | (4 | ) | ||||||||||||||||
Tax on net operating income |
13 | (85 | ) | 26 | | (46 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(27 | ) | 195 | (21 | ) | (7 | ) | 140 | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
| |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
140 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, until June 30,2010, equity share of adjustments related to Sanofi. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 255 | (41 | ) | | |||||||||||||||||||
On net operating income |
| 195 | (25 | ) | | |||||||||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (40 | ) |
2nd quarter 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,546 | 32,190 | 4,589 | 4 | | 41,329 | ||||||||||||||||||
Intersegment sales |
5,717 | 1,394 | 270 | 45 | (7,426 | ) | | |||||||||||||||||
Excise taxes |
| (5,002 | ) | | | | (5,002 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,263 | 28,582 | 4,859 | 49 | (7,426 | ) | 36,327 | |||||||||||||||||
Operating expenses |
(4,364 | ) | (27,715 | ) | (4,426 | ) | (173 | ) | 7,426 | (29,252 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,292 | ) | (318 | ) | (128 | ) | (11 | ) | | (1,749 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,607 | 549 | 305 | (135 | ) | | 5,326 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
230 | 99 | 60 | 175 | | 564 | ||||||||||||||||||
Tax on net operating income |
(2,634 | ) | (165 | ) | (91 | ) | 85 | | (2,805 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,203 | 483 | 274 | 125 | | 3,085 | ||||||||||||||||||
Net cost of net debt |
(57 | ) | ||||||||||||||||||||||
Minority interests |
(67 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,961 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.32 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
||||||||||||||||||||||||
2nd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
2,723 | 562 | 144 | 17 | 3,446 | |||||||||||||||||||
Total divestments |
174 | 11 | 328 | 337 | 850 | |||||||||||||||||||
Cash flow from operating activities |
4,154 | 1,042 | 477 | (731 | ) | 4,942 |
24
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st half 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
11,310 | 69,320 | 10,396 | 12 | | 91,038 | ||||||||||||||||||
Intersegment sales |
13,280 | 3,117 | 642 | 84 | (17,123 | ) | | |||||||||||||||||
Excise taxes |
| (8,971 | ) | | | | (8,971 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
24,590 | 63,466 | 11,038 | 96 | (17,123 | ) | 82,067 | |||||||||||||||||
Operating expenses |
(11,010 | ) | (61,242 | ) | (10,142 | ) | (314 | ) | 17,123 | (65,585 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,340 | ) | (619 | ) | (241 | ) | (17 | ) | | (3,217 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
11,240 | 1,605 | 655 | (235 | ) | | 13,265 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
816 | 96 | 100 | 270 | | 1,282 | ||||||||||||||||||
Tax on net operating income |
(6,802 | ) | (471 | ) | (241 | ) | (53 | ) | | (7,567 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
5,254 | 1,230 | 514 | (18 | ) | | 6,980 | |||||||||||||||||
Net cost of net debt |
(130 | ) | ||||||||||||||||||||||
Minority interests |
(178 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
6,672 | |||||||||||||||||||||||
1st half 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
29 | | | | 29 | |||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
29 | | | | 29 | |||||||||||||||||||
Operating expenses |
| 1,091 | 115 | | 1,206 | |||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
29 | 1,091 | 115 | | 1,235 | |||||||||||||||||||
Equity in income (loss) of affiliates and other items |
121 | 12 | (12 | ) | 54 | 175 | ||||||||||||||||||
Tax on net operating income |
(202 | ) | (346 | ) | (74 | ) | (2 | ) | (624 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(52 | ) | 757 | 29 | 52 | 786 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(12 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
774 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 1,154 | 115 | | ||||||||||||||||||||
On net operating income |
| 802 | 95 | |
1st half 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
11,281 | 69,320 | 10,396 | 12 | | 91,009 | ||||||||||||||||||
Intersegment sales |
13,280 | 3,117 | 642 | 84 | (17,123 | ) | | |||||||||||||||||
Excise taxes |
| (8,971 | ) | | | | (8,971 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
24,561 | 63,466 | 11,038 | 96 | (17,123 | ) | 82,038 | |||||||||||||||||
Operating expenses |
(11,010 | ) | (62,333 | ) | (10,257 | ) | (314 | ) | 17,123 | (66,791 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,340 | ) | (619 | ) | (241 | ) | (17 | ) | | (3,217 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
11,211 | 514 | 540 | (235 | ) | | 12,030 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
695 | 84 | 112 | 216 | | 1,107 | ||||||||||||||||||
Tax on net operating income |
(6,600 | ) | (125 | ) | (167 | ) | (51 | ) | | (6,943 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
5,306 | 473 | 485 | (70 | ) | | 6,194 | |||||||||||||||||
Net cost of net debt |
(130 | ) | ||||||||||||||||||||||
Minority interests |
(166 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,898 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
2.62 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for per share amounts. |
1st half 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
12,100 | 726 | 380 | 47 | 13,253 | |||||||||||||||||
Total divestments |
1,256 | 51 | 26 | 668 | 2,001 | |||||||||||||||||
Cash flow from operating activities |
10,248 | 1,165 | (6 | ) | (629 | ) | 10,778 |
25
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st half 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,115 | 60,998 | 8,812 | 7 | | 78,932 | ||||||||||||||||||
Intersegment sales |
11,019 | 2,475 | 507 | 87 | (14,088 | ) | | |||||||||||||||||
Excise taxes |
| (9,444 | ) | | | | (9,444 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
20,134 | 54,029 | 9,319 | 94 | (14,088 | ) | 69,488 | |||||||||||||||||
Operating expenses |
(8,818 | ) | (52,081 | ) | (8,553 | ) | (318 | ) | 14,088 | (55,682 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,548 | ) | (623 | ) | (266 | ) | (19 | ) | | (3,456 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
8,768 | 1,325 | 500 | (243 | ) | | 10,350 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
298 | 155 | 123 | 432 | | 1,008 | ||||||||||||||||||
Tax on net operating income |
(4,995 | ) | (414 | ) | (138 | ) | 142 | | (5,405 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
4,071 | 1,066 | 485 | 331 | | 5,953 | ||||||||||||||||||
Net cost of net debt |
(107 | ) | ||||||||||||||||||||||
Minority interests |
(132 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,714 | |||||||||||||||||||||||
1st half 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| 585 | 49 | | 634 | |||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | (8 | ) | | (8 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
| 585 | 41 | | 626 | |||||||||||||||||||
Equity in income (loss) of affiliates and other items (c) |
(146 | ) | 41 | 22 | 84 | 1 | ||||||||||||||||||
Tax on net operating income |
43 | (198 | ) | (9 | ) | (2 | ) | (166 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(103 | ) | 428 | 54 | 82 | 461 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(4 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
457 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, until June 30,2010, equity share of adjustments related to Sanofi. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 635 | 65 | | ||||||||||||||||||||
On net operating income |
| 467 | 50 | | ||||||||||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (81 | ) |
1st half 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,115 | 60,998 | 8,812 | 7 | | 78,932 | ||||||||||||||||||
Intersegment sales |
11,019 | 2,475 | 507 | 87 | (14,088 | ) | | |||||||||||||||||
Excise taxes |
| (9,444 | ) | | | | (9,444 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
20,134 | 54,029 | 9,319 | 94 | (14,088 | ) | 69,488 | |||||||||||||||||
Operating expenses |
(8,818 | ) | (52,666 | ) | (8,602 | ) | (318 | ) | 14,088 | (56,316 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,548 | ) | (623 | ) | (258 | ) | (19 | ) | | (3,448 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
8,768 | 740 | 459 | (243 | ) | | 9,724 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
444 | 114 | 101 | 348 | | 1,007 | ||||||||||||||||||
Tax on net operating income |
(5,038 | ) | (216 | ) | (129 | ) | 144 | | (5,239 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
4,174 | 638 | 431 | 249 | | 5,492 | ||||||||||||||||||
Net cost of net debt |
(107 | ) | ||||||||||||||||||||||
Minority interests |
(128 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,257 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
2.34 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for per share amounts. |
1st half 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
5,866 | 1,018 | 238 | 33 | 7,155 | |||||||||||||||||
Total divestments |
261 | 38 | 334 | 1,265 | 1,898 | |||||||||||||||||
Cash flow from operating activities |
8,834 | 1,496 | 387 | (515 | ) | 10,202 |
26
Consolidated Financial Statements as of June 30, 2011
Adjustments by business segment
(M)
ADJUSTMENTS TO OPERATING INCOME
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
2nd quarter 2011 |
Inventory valuation effect |
| (72 | ) | (15 | ) | | (87 | ) | |||||||||||||
Effect of changes in fair value |
(55 | ) | | | | (55 | ) | |||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Other items |
| (63 | ) | | | (63 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(55 | ) | (135 | ) | (15 | ) | | (205 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2010 |
Inventory valuation effect |
| 255 | (41 | ) | | 214 | |||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | (8 | ) | | (8 | ) | |||||||||||||||
Other items |
| | (16 | ) | | (16 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
| 255 | (65 | ) | | 190 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2011 |
Inventory valuation effect |
| 1,154 | 115 | | 1,269 | ||||||||||||||||
Effect of changes in fair value |
29 | | | | 29 | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Other items |
| (63 | ) | | | (63 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
29 | 1,091 | 115 | | 1,235 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2010 |
Inventory valuation effect |
| 635 | 65 | | 700 | ||||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | (8 | ) | | (8 | ) | |||||||||||||||
Other items | | (50 | ) | (16 | ) | | (66 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
| 585 | 41 | | 626 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ADJUSTMENTS TO NET INCOME GROUP SHARE
|
| |||||||||||||||||||||
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
2nd quarter 2011 |
Inventory valuation effect |
| (57 | ) | (17 | ) | | (74 | ) | |||||||||||||
Effect of changes in fair value |
(41 | ) | | | | (41 | ) | |||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
(47 | ) | | | | (47 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
164 | | | 41 | 205 | |||||||||||||||||
Other items |
| (45 | ) | (66 | ) | | (111 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
76 | (102 | ) | (83 | ) | 41 | (68 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2010 |
Inventory valuation effect |
| 194 | (25 | ) | | 169 | |||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | (40 | ) | (40 | ) | |||||||||||||||
Restructuring charges |
| | (10 | ) | | (10 | ) | |||||||||||||||
Asset impairment charges |
| | (6 | ) | | (6 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
| | 29 | 34 | 63 | |||||||||||||||||
Other items |
(27 | ) | | (9 | ) | | (36 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(27 | ) | 194 | (21 | ) | (6 | ) | 140 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2011 |
Inventory valuation effect |
| 777 | 95 | | 872 | ||||||||||||||||
Effect of changes in fair value |
22 | | | | 22 | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
(47 | ) | | | | (47 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
164 | | | 52 | 216 | |||||||||||||||||
Other items |
(178 | ) | (45 | ) | (66 | ) | | (289 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(39 | ) | 732 | 29 | 52 | 774 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2010 |
Inventory valuation effect |
| 463 | 50 | | 513 | ||||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | (81 | ) | (81 | ) | |||||||||||||||
Restructuring charges |
| | (10 | ) | | (10 | ) | |||||||||||||||
Asset impairment charges |
(59 | ) | | (6 | ) | | (65 | ) | ||||||||||||||
Gains (losses) on disposals of assets |
| | 29 | 163 | 192 | |||||||||||||||||
Other items |
(44 | ) | (39 | ) | (9 | ) | | (92 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(103 | ) | 424 | 54 | 82 | 457 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
27
CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
2nd quarter 2011 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
45,064 | (55 | ) | 45,009 | ||||||||
Excise taxes |
(4,544 | ) | | (4,544 | ) | |||||||
Revenues from sales |
40,520 | (55 | ) | 40,465 | ||||||||
Purchases net of inventory variation |
(28,299 | ) | (87 | ) | (28,386 | ) | ||||||
Other operating expenses |
(4,741 | ) | (63 | ) | (4,804 | ) | ||||||
Exploration costs |
(179 | ) | | (179 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,531 | ) | | (1,531 | ) | |||||||
Other income |
35 | 211 | 246 | |||||||||
Other expense |
(70 | ) | (68 | ) | (138 | ) | ||||||
Financial interest on debt |
(159 | ) | | (159 | ) | |||||||
Financial income from marketable securities & cash equivalents |
55 | | 55 | |||||||||
Cost of net debt |
(104 | ) | | (104 | ) | |||||||
Other financial income |
335 | | 335 | |||||||||
Other financial expense |
(104 | ) | | (104 | ) | |||||||
Equity in income (loss) of affiliates |
462 | (18 | ) | 444 | ||||||||
Income taxes |
(3,459 | ) | 27 | (3,432 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,865 | (53 | ) | 2,812 | ||||||||
Group share |
2,794 | (68 | ) | 2,726 | ||||||||
Minority interests |
71 | 15 | 86 | |||||||||
2nd quarter 2010 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
41,329 | | 41,329 | |||||||||
Excise taxes |
(5,002 | ) | | (5,002 | ) | |||||||
Revenues from sales |
36,327 | | 36,327 | |||||||||
Purchases net of inventory variation |
(24,143 | ) | 214 | (23,929 | ) | |||||||
Other operating expenses |
(4,817 | ) | (16 | ) | (4,833 | ) | ||||||
Exploration costs |
(292 | ) | | (292 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,749 | ) | (8 | ) | (1,757 | ) | ||||||
Other income |
52 | 62 | 114 | |||||||||
Other expense |
(61 | ) | (53 | ) | (114 | ) | ||||||
Financial interest on debt |
(113 | ) | | (113 | ) | |||||||
Financial income from marketable securities & cash equivalents |
24 | | 24 | |||||||||
Cost of net debt |
(89 | ) | | (89 | ) | |||||||
Other financial income |
142 | | 142 | |||||||||
Other financial expense |
(95 | ) | | (95 | ) | |||||||
Equity in income (loss) of affiliates |
526 | (13 | ) | 513 | ||||||||
Income taxes |
(2,773 | ) | (46 | ) | (2,819 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,028 | 140 | 3,168 | |||||||||
Group share |
2,961 | 140 | 3,101 | |||||||||
Minority interests |
67 | | 67 |
28
CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
1st half 2011 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
91,009 | 29 | 91,038 | |||||||||
Excise taxes |
(8,971 | ) | | (8,971 | ) | |||||||
Revenues from sales |
82,038 | 29 | 82,067 | |||||||||
Purchases net of inventory variation |
(56,910 | ) | 1,269 | (55,641 | ) | |||||||
Other operating expenses |
(9,443 | ) | (63 | ) | (9,506 | ) | ||||||
Exploration costs |
(438 | ) | | (438 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,217 | ) | | (3,217 | ) | |||||||
Other income |
109 | 222 | 331 | |||||||||
Other expense |
(129 | ) | (68 | ) | (197 | ) | ||||||
Financial interest on debt |
(295 | ) | | (295 | ) | |||||||
Financial income from marketable securities & cash equivalents |
102 | | 102 | |||||||||
Cost of net debt |
(193 | ) | | (193 | ) | |||||||
Other financial income |
410 | | 410 | |||||||||
Other financial expense |
(212 | ) | | (212 | ) | |||||||
Equity in income (loss) of affiliates |
929 | 21 | 950 | |||||||||
Income taxes |
(6,880 | ) | (624 | ) | (7,504 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
6,064 | 786 | 6,850 | |||||||||
Group share |
5,898 | 774 | 6,672 | |||||||||
Minority interests |
166 | 12 | 178 | |||||||||
1st half 2010 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
78,932 | | 78,932 | |||||||||
Excise taxes |
(9,444 | ) | | (9,444 | ) | |||||||
Revenues from sales |
69,488 | | 69,488 | |||||||||
Purchases net of inventory variation |
(46,330 | ) | 700 | (45,630 | ) | |||||||
Other operating expenses |
(9,479 | ) | (66 | ) | (9,545 | ) | ||||||
Exploration costs |
(507 | ) | | (507 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,448 | ) | (8 | ) | (3,456 | ) | ||||||
Other income |
80 | 194 | 274 | |||||||||
Other expense |
(167 | ) | (159 | ) | (326 | ) | ||||||
Financial interest on debt |
(213 | ) | | (213 | ) | |||||||
Financial income from marketable securities & cash equivalents |
48 | | 48 | |||||||||
Cost of net debt |
(165 | ) | | (165 | ) | |||||||
Other financial income |
213 | | 213 | |||||||||
Other financial expense |
(190 | ) | | (190 | ) | |||||||
Equity in income (loss) of affiliates |
1,071 | (34 | ) | 1,037 | ||||||||
Income taxes |
(5,181 | ) | (166 | ) | (5,347 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
5,385 | 461 | 5,846 | |||||||||
Group share |
5,257 | 457 | 5,714 | |||||||||
Minority interests |
128 | 4 | 132 |
29
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST SIX MONTHS OF 2011
(unaudited)
1) Accounting policies
Ø | Accounting policies applicable in 2011 |
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of June 30, 2011 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 June 30, 2011 do not differ significantly from those applied for the consolidated financial statements as of December 31, 2010 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). The new accounting standards and amendments mandatory for the annual period beginning January 1, 2011 are described in Note 1W to the consolidated financial statements as of December 31, 2010 and have no material effect on the Groups consolidated financial statements for the first six months of 2011.
The preparation of financial statements in accordance with IFRS requires the 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 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, 2010.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the 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 amortized cost. Financial assets and liabilities are usually measured at fair value.
Ø | Accounting policies not yet applicable |
In May 2011, the IASB issued a package of standards on consolidation : standard IFRS 10 Consolidated financial statements, standard IFRS 11 Joint arrangements, standard IFRS 12 Disclosure of interests in other entities, revised standard IAS 27 Separate financial statements and revised standard IAS 28 Investments in associates and joint ventures. These standards are applicable for annual periods beginning on or after January 1, 2013.
In June 2011, the IASB issued revised standard IAS 19 Employee benefits, which leads in particular to the full recognition of the net position in respect of employee benefits obligations (liabilities net of assets) in the balance sheet and the elimination of the corridor approach currently used by the Group. This standard is applicable for annual periods beginning on or after January 1, 2013.
In addition, the IASB published in May 2011 standard IFRS 13 Fair value measurement, applicable for annual periods beginning on or after January 1, 2013, and in June 2011 revised standard IAS 1 Presentation of financial statements, applicable for annual periods beginning on or after July 1, 2012.
The impact of the application of these standards is currently assessed by the Group.
30
2) Changes in the Group structure, main acquisitions and divestments
Ø | Upstream |
| TOTAL finalized in March 2011 the acquisition from Santos of an additional 7.5% interest in Australias GLNG project. This increases TOTALs overall stake in the project to 27.5%. |
The acquisition cost amounts to 200 million ($281 million) and mainly corresponds to the value of mineral interests that have been recognized as intangible assets on the face of the consolidated balance sheet for 203 million.
| In March 2011, Total E&P Canada Ltd., a TOTAL subsidiary, and Suncor Energy Inc. (Suncor) have finalized a strategic oil sands alliance encompassing the Suncor-operated Fort Hills mining project, the TOTAL-operated Joslyn mining project and the Suncor-operated Voyageur upgrader project. All three assets are located in the Athabasca region of the province of Alberta, in Canada. |
TOTAL acquired 19.2% of Suncors interest in the Fort Hills project, increasing TOTALs overall interest in the project to 39.2%. Suncor, as operator, holds 40.8%. TOTAL also acquired a 49% stake in the Suncor-operated Voyageur upgrader project. For those two acquisitions, the Group paid 1,945 million (CAD 2,666 million) mainly representing the value of mineral interests for 445 million and the value of tangible assets for 1,473 million.
Furthermore, TOTAL sold to Suncor 36.75% interest in the Joslyn project for 614 million (CAD 842 million), and received the cash payment in April 2011. The Group, as operator, retains a 38.25% interest in the project.
| TOTAL finalized in April 2011 the sale of its 75.8% interest in its upstream Cameroonian affiliate Total E&P Cameroun to Perenco, for an amount of 171 million ($244 million), net of cash sold. |
| TOTAL and the Russian company Novatek signed in March 2011 two Memorandums of Cooperation to develop the cooperation between TOTAL on one side, and Novatek and its main shareholders on the other side. |
This cooperation is developed around two transactions:
| TOTAL took a 12.09% shareholding in Novatek. This transaction has been effective since April 1, 2011 and amounted to 2,901 million ($4,108 million). TOTAL considers that it has a significant influence through its representation on the Board of Directors of Novatek and its participation in the Yamal LNG project. Therefore, the interest in Novatek is accounted for by the equity method as from the second quarter 2011. |
| TOTAL will become the main international partner on the Yamal LNG project holding a 20% share, and Novatek will hold a 51% interest in the project. The signature of definitive agreements should occur during the third quarter of 2011. |
| After the all-cash tender of $23.25 per share launched on April 28, 2011 and completed on June 21, 2011, TOTAL has acquired a 60% stake in SunPower Corp., a U.S. company listed on Nasdaq with headquarters in San Jose (California), one of the most established players in the American solar industry. Shares of SunPower Corp. continue to be traded on the Nasdaq. |
As of completion date (June 21, 2011), the public offer has led, on the basis of acceptances received, to a cash settlement of $1,394 million (974 million).
As part of the transaction, various agreements were signed, including a financial guarantee agreement through which TOTAL guarantees up to $1 billion SunPowers repayments obligations under letters of credit that would be issued during the next five years for the development of solar power plants and large roofs activities.
Furthermore, after the closing of the offer, antitrust authorities of the European Commission have given their approval to the transaction on June 28, 2011; U.S. antitrust authorities had, on their side, given their approval to the transaction at the end of May 2011.
The composition of SunPowers Board of Directors has been modified (on July 1, 2011), with the appointment of six members representing TOTAL among eleven directors.
As TOTAL took control of SunPower after the closing of the offer, at a date very close to the balance sheet date of June 30, 2011, the Group could not carry out the usual diligences on the accounts of acquired companies for their inclusion in the consolidated financial statements as of June 30, 2011.
As a result, acquired shares have been temporarily classified as Other investments on the face of the consolidated balance sheet for 974 million. The purchase price allocation, the measurement of goodwill,
31
of assets acquired and liabilities assumed at acquisition date and of fair value adjustments determined temporarily will be presented in the second half of 2011.
The carrying amount of the main balance sheet indicators as they appear in the latest quarterly statements prepared under U.S. GAAP (before fair value adjustments and restatements to TOTALs standards) and published by SunPower Corp. (unaudited figures) as of March 31, 2011 is as follows:
In million $ | In million | |||||||
Non current assets |
1,661 | 1,169 | ||||||
Current assets |
1,804 | 1,270 | ||||||
|
|
|
|
|||||
Total Assets |
3,465 | 2,439 | ||||||
|
|
|
|
|||||
Equity |
1,627 | 1,145 | ||||||
Non current liabilities |
791 | 557 | ||||||
Current liabilities |
1,047 | 737 | ||||||
|
|
|
|
|||||
Total Liabilities |
3,465 | 2,439 | ||||||
|
|
|
|
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.
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 Downstream and Chemicals 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
As from January 1, 2011, 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.
(iv) Until June 30, 2010, TOTALs equity share of adjustment items reconciling Business net income to Net income attributable to equity holders of Sanofi
32
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 as from January 1, 2011 and excluding TOTALs equity share of adjustment items related to Sanofi until June 30, 2010.
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
2nd quarter 2011 |
Inventory valuation effect |
| (72 | ) | (15 | ) | | (87 | ) | |||||||||||||
Effect of changes in fair value |
(55 | ) | | | | (55 | ) | |||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Other items |
| (63 | ) | | | (63 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(55 | ) | (135 | ) | (15 | ) | | (205 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2010 |
Inventory valuation effect |
| 255 | (41 | ) | | 214 | |||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | (8 | ) | | (8 | ) | |||||||||||||||
Other items |
| | (16 | ) | | (16 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
| 255 | (65 | ) | | 190 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2011 |
Inventory valuation effect |
| 1,154 | 115 | | 1,269 | ||||||||||||||||
Effect of changes in fair value |
29 | | | | 29 | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Other items |
| (63 | ) | | | (63 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
29 | 1,091 | 115 | | 1,235 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2010 |
Inventory valuation effect |
| 635 | 65 | | 700 | ||||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
| | (8 | ) | | (8 | ) | |||||||||||||||
Other items |
| (50 | ) | (16 | ) | | (66 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
| 585 | 41 | | 626 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
33
ADJUSTMENTS TO NET INCOME GROUP SHARE
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
2nd quarter 2011 |
Inventory valuation effect |
| (57 | ) | (17 | ) | | (74 | ) | |||||||||||||
Effect of changes in fair value |
(41 | ) | | | | (41 | ) | |||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
(47 | ) | | | | (47 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
164 | | | 41 | 205 | |||||||||||||||||
Other items |
| (45 | ) | (66 | ) | | (111 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
76 | (102 | ) | (83 | ) | 41 | (68 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2010 |
Inventory valuation effect |
| 194 | (25 | ) | | 169 | |||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | (40 | ) | (40 | ) | |||||||||||||||
Restructuring charges |
| | (10 | ) | | (10 | ) | |||||||||||||||
Asset impairment charges |
| | (6 | ) | | (6 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
| | 29 | 34 | 63 | |||||||||||||||||
Other items |
(27 | ) | | (9 | ) | | (36 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(27 | ) | 194 | (21 | ) | (6 | ) | 140 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2011 |
Inventory valuation effect |
| 777 | 95 | | 872 | ||||||||||||||||
Effect of changes in fair value |
22 | | | | 22 | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | | | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
(47 | ) | | | | (47 | ) | |||||||||||||||
Gains (losses) on disposals of assets |
164 | | | 52 | 216 | |||||||||||||||||
Other items |
(178 | ) | (45 | ) | (66 | ) | | (289 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(39 | ) | 732 | 29 | 52 | 774 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2010 |
Inventory valuation effect |
| 463 | 50 | | 513 | ||||||||||||||||
Effect of changes in fair value |
| | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi |
| | | (81 | ) | (81 | ) | |||||||||||||||
Restructuring charges |
| | (10 | ) | | (10 | ) | |||||||||||||||
Asset impairment charges |
(59 | ) | | (6 | ) | | (65 | ) | ||||||||||||||
Gains (losses) on disposals of assets |
| | 29 | 163 | 192 | |||||||||||||||||
Other items |
(44 | ) | (39 | ) | (9 | ) | | (92 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(103 | ) | 424 | 54 | 82 | 457 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
In the first half of 2011, the heading Other items includes the impact of the change in taxation in the United Kingdom on the deferred tax liability for (178) million. The House of Commons voted provisionally the increase of the Supplementary charge applicable to oil activities from 20% to 32%, pending a final vote of the Finance Act 2011.
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of June 30, 2011, TOTAL S.A. held 12,152,607 of its own shares, representing 0.51% of its share capital, detailed as follows:
| 6,009,532 shares allocated to TOTAL restricted shares plans for Group employees; and |
| 6,143,075 shares intended to be allocated to new TOTAL share purchase option plans or to new restricted shares plans. |
These 12,152,607 shares are deducted from the consolidated shareholders equity.
Treasury shares (TOTAL shares held by Group subsidiaries)
As of June 30, 2011, TOTAL S.A. held indirectly through its subsidiaries 100,331,268 of its own shares, representing 4.25% of its share capital, detailed as follows:
| 2,023,672 shares held by a consolidated subsidiary, Total Nucléaire, 100% indirectly held by TOTAL S.A.; |
| 98,307,596 shares held by subsidiaries of Elf Aquitaine (Financière Valorgest, Sogapar and Fingestval). |
These 100,331,268 shares are deducted from the consolidated shareholders equity.
34
Dividend
The shareholders meeting of May 13, 2011 approved the payment of a cash dividend of 2.28 per share for the fiscal year 2010. Taking into account an interim dividend of 1.14 per share paid on November 17, 2010, the remaining balance of 1.14 per share was paid on May 26, 2011.
The Board of Directors of October 28, 2010 decided to pay interim dividends on a quarterly basis beginning in fiscal year 2011. The Board of Directors of April 28, 2011 and the one of July 28, 2011 approved interim dividends of 0.57 per share for first quarter 2011 and 0.57 per share for second quarter 2011, that will be paid on September 22 and December 22, 2011 respectively.
Other Comprehensive Income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M) |
1st half 2011 | 1st half 2010 | ||||||||||||||
Currency translation adjustment |
(2,644 | ) | 4,996 | |||||||||||||
- unrealized gain/(loss) of the period |
(2,633 | ) | 4,999 | |||||||||||||
- less gain/(loss) included in net income |
11 | 3 | ||||||||||||||
Available for sale financial assets |
430 | (52 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
433 | (3 | ) | |||||||||||||
- less gain/(loss) included in net income |
3 | 49 | ||||||||||||||
Cash flow hedge |
(35 | ) | (51 | ) | ||||||||||||
- unrealized gain/(loss) of the period |
38 | (347 | ) | |||||||||||||
- less gain/(loss) included in net income |
73 | (296 | ) | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(103 | ) | 475 | |||||||||||||
Other |
(2 | ) | 3 | |||||||||||||
- unrealized gain/(loss) of the period |
(2 | ) | 3 | |||||||||||||
- less gain/(loss) included in net income |
| | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Tax effect |
(29 | ) | 18 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net amount |
(2,383 | ) | 5,389 | |||||||||||||
|
|
|
|
|
|
|
|
Tax effects relating to each component of other comprehensive income are as follows:
1st half 2011 | 1st half 2010 | |||||||||||||||||||||||
(M) |
Pre-tax amount |
Tax effect | Net amount | Pre-tax amount |
Tax effect | Net amount | ||||||||||||||||||
Currency translation adjustment |
(2,644 | ) | (2,644 | ) | 4,996 | 4,996 | ||||||||||||||||||
Available for sale financial assets |
430 | (41 | ) | 389 | (52 | ) | 1 | (51 | ) | |||||||||||||||
Cash flow hedge |
(35 | ) | 12 | (23 | ) | (51 | ) | 17 | (34 | ) | ||||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(103 | ) | (103 | ) | 475 | 475 | ||||||||||||||||||
Other |
(2 | ) | (2 | ) | 3 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income |
(2,354 | ) | (29 | ) | (2,383 | ) | 5,371 | 18 | 5,389 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
35
5) Financial debt
The Group issued bonds through its subsidiaries Total Capital and Total Capital Canada Ltd. during the first six months of 2011:
| Bond 6.500% 2011-2016 (150 million AUD) |
| Bond 3.875% 2011-2018 (500 million GBP) |
| Bond 4.125% 2011-2021 (500 million USD) |
| Bond 1.625% 2011-2014 (750 million USD) |
| Bond Libor USD 3 months + 0.380% 2011-2014 (750 million USD) |
| Bond 5.750% 2011-2014 (100 million AUD) |
| Bond Libor USD 3 months + 0.09% 2011-2013 (1,000 million USD) |
The Group reimbursed bonds during the first six months of 2011:
| Bond 5.750% 2005-2011 (100 million AUD) |
| Bond 4.000% 2005-2011 (100 million CAD) |
| Bond 5.750% 2004-2011 (100 million AUD) |
| Bond 7.500% 2008-2011 (150 million AUD) |
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 six months of 2011.
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
During the first half of 2011, the Group has not been fined pursuant to a Court ruling. The principal antitrust proceedings in which the Groups companies are involved are described thereafter.
Chemicals segment
| As part of the spin-off of Arkema1 in 2006, TOTAL S.A. or certain other Group companies agreed to grant Arkema guarantees for potential monetary consequences related to antitrust proceedings arising from events prior to the spin-off. |
These guarantees cover, for a period of ten years, 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 these guarantees.
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, these guarantees will become void.
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. |
36
| In the United States, investigations into certain commercial practices of some subsidiaries of the Arkema group have been closed since 2007; no charges have been brought against Arkema. Civil liability lawsuits, for which TOTAL S.A. has been named as the parent company, are about to be closed and are not expected to have a 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 an overall amount of 385.47 million, of which Elf Aquitaine and/or TOTAL S.A. were held jointly liable for 280.17 million, Elf Aquitaine being personally fined 23.6 million for deterrence. These fines are entirely settled as of today. |
As a result, since the spin-off, the Group has paid the overall amount of 188.07 million2, corresponding to 90% of the fines overall amount once the threshold provided for by the guarantee is deducted.
The European Commission imposed these fines following investigations between 2000 and 2004 into commercial practices involving eight products sold by Arkema. Five of these investigations resulted in prosecutions from the European Commission for which Elf Aquitaine has been named as the parent company, and two of these investigations named TOTAL S.A. as the ultimate parent company of the Group.
TOTAL S.A. and Elf Aquitaine are contesting their liability based solely on their status as parent companies and appealed for cancellation and reformation of the rulings that are still pending before the relevant EU court of appeals or supreme court of appeals. Within the framework of one of these proceedings, the General Court of the European Union, in a decision dated June 7, 2011, partially accepted Arkemas appeal, reducing the fine pronounced against it by the amount of 105.79 million. On the same day, the General Court rejected the appeal lodged by TOTAL S.A. and Elf Aquitaine. Considering the latter remain liable for Arkemas infringement, the European Commission demanded the payment of 105.79 million (plus interest of 31.31 million). Elf Aquitaine paid these amounts in July 2011. Lodging an appeal is being considered.
Besides, civil proceedings against Arkema and other groups of companies were initiated before German and Dutch courts by third parties for alleged damages pursuant to two of the above described legal proceedings engaged by the European Commission. TOTAL S.A. was summoned to serve notice of the dispute before the German court. At this point, the probability to have a favorable verdict and the financial impacts of these procedures are uncertain due to the number of legal difficulties they gave rise to, the lack of documented claims and the complex evaluation of the alleged damages.
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 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.
Within the framework of the legal proceedings described above, a 17 million reserve remains booked in the Groups consolidated financial statements as of June 30, 2011.
Downstream 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 in 2006 20.25 million, which has been paid, and for which TOTAL S.A. was held jointly liable for 13.5 million. TOTAL S.A. appealed this decision before the relevant court and this appeal is still pending. |
In addition, pursuant to a statement of objections received by Total Raffinage Marketing (formerly Total France) and TOTAL S.A. from the European Commission regarding another product line of the Refining & Marketing division, Total Raffinage Marketing 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. TOTAL S.A. also appealed this decision before the relevant court and this appeal is still pending.
| Finally, TotalGaz and Total Raffinage Marketing received a statement of objections in July 2009 from the French Antitrust Authority (Autorité de la concurrence française) regarding alleged antitrust practices concerning another product line of the Refining & Marketing division. The case was dismissed by decision of the French antitrust authorities on December 17, 2010. |
Whatever the evolution of the investigations and proceedings described above, the Group believes that their outcome should not have a material adverse effect on the Groups financial situation or consolidated results.
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. |
37
Buncefield
On December 11, 2005, several explosions, followed by a major fire, occurred at an oil storage depot at Buncefield, north of London. This depot was operated by Hertfordshire Oil Storage Limited (HOSL), a company in which TOTALs UK subsidiary holds 60% and another oil group holds 40%.
The explosion caused injuries, most of which were minor injuries, to a number of people and caused property damage to the depot and the buildings and homes located nearby. The official Independent Investigation Board has indicated that the explosion was caused by the overflow of a tank at the depot. The Boards final report was released on December 11, 2008. The civil procedure for claims, which had not yet been settled, took place between October and December 2008. The Courts decision of March 20, 2009, declared TOTALs UK subsidiary liable for the accident and solely liable for indemnifying the victims. The subsidiary appealed the decision. The appeal trial took place in January 2010. The Court of Appeals, by a decision handed down on March 4, 2010, confirmed the prior judgment. The Supreme Court of United Kingdom has partially authorized TOTALs UK subsidiary to contest the decision. TOTALs UK subsidiary finally decided to withdraw from this recourse due to settlement agreements reached in mid-February 2011.
The Group carries insurance for damage to its interests in these facilities, business interruption and civil liability claims from third parties. The provision for the civil liability that appears in the Groups consolidated financial statements as of June 30, 2011, stands at 96 million after taking into account the payments previously made.
The Group believes that, based on the information currently available, on a reasonable estimate of its liability and on provisions recognized, this accident should not have a significant impact on the Groups financial situation or consolidated results.
In addition, on December 1, 2008, the Health and Safety Executive (HSE) and the Environment Agency (EA) issued a Notice of prosecution against five companies, including TOTALs UK subsidiary. By a judgment on July 16, 2010, the subsidiary was fined £3.6 million and paid it. The decision takes into account a number of elements that have mitigated the impact of the charges brought against it.
Erika
Following the sinking in December 1999 of the Erika, a tanker that was transporting products belonging to one of the Group companies, the Tribunal de grande instance of Paris convicted TOTAL S.A. of marine pollution pursuant to a judgment issued on January 16, 2008, finding that TOTAL S.A. was negligent in its vetting procedure for vessel selection, and ordering TOTAL S.A. to pay a fine of 375,000. The court also ordered compensation to be paid to those affected by the pollution from the Erika up to an aggregate amount of 192 million, declaring TOTAL S.A. jointly and severally liable for such payments together with the Erikas inspection and classification firm, the Erikas owner and the Erikas manager.
TOTAL has appealed the verdict of January 16, 2008. In the meantime, it nevertheless proposed to pay third parties who so requested definitive compensation as determined by the court. Forty-two third parties have been compensated for an aggregate amount of 171.5 million.
By a decision dated March 30, 2010, the Court of Appeal of Paris upheld the lower court verdict pursuant to which TOTAL S.A. was convicted of marine pollution and fined 375,000. TOTAL appealed this decision to the French Supreme Court (Cour de cassation).
However, the Court of Appeal ruled that TOTAL S.A. bears no civil liability according to the applicable international conventions and consequently ruled that TOTAL S.A. be not convicted.
TOTAL S.A. believes that, based on the information currently available, the case should not have a significant impact on the Groups financial situation or consolidated results.
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 contracts termination.
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 which were not even parties to the contract, have 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
38
Russian Olympic Committee, the Group considers this claim to be unfounded as to a matter of law or fact. The Group has lodged a criminal complaint to denounce the fraudulent claim which the Group believes it is a victim of 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 concerns an agreement concluded by the Company with a consultant concerning a gas field in Iran and aims 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.
Investigations are still pending and the Company is cooperating with the SEC and the DoJ. In 2010, the Company opened talks with U.S. authorities, without any acknowledgement of facts, to consider an out-of-court settlement. Generally, out-of-court settlements with U.S. authorities include payment of fines and the obligation to improve internal compliance systems or other measures.
In this same case, a judicial inquiry related to TOTAL was initiated in France in 2006. In 2007, the Companys Chief Executive Officer was placed under formal investigation in relation to this inquiry, as the former President of the Middle East department of the Groups Exploration & Production division. The Company has not been notified of any significant developments in the proceedings since the formal investigation was launched.
At this point, the Company cannot determine when these investigations will terminate, and cannot predict their results, or the outcome of the talks that have been initiated, or the costs of a potential out-of-court settlement. Resolving this case is not expected to have a significant impact on the Groups financial situation or any impact on its future planned operations.
Libya
Having regard to the context in Libya, the Groups production in Libya has been stopped since early March. The Group continues mitigating the consequences of such situation on its operations and projects in Libya.
In addition, since February 2011, several embargo and sanction regimes have been imposed by the United Nations, as well as the EU and US authorities prohibiting certain financial and assets transactions with respect to a list of individuals and to various Libyan banks and other entities linked with the regime. TOTAL has taken all necessary steps not to contravene with these measures and believes that it does not carry out any activities in contravention of these measures.
Lastly, 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. TOTAL is cooperating with this non public investigation.
Syria
Since May 10, 2011, the European Union adopted measures prohibiting the supply of certain equipment to Syria, as well as prohibiting certain financial and asset transactions with respect to a list of named individuals and entities. These measures apply to European persons and to entities constituted under the laws of a EU Member State. TOTAL does not believe that its current business activities in Syria are in contravention of these measures.
During the first half of 2011, the Groups activities have not been significantly impacted by the deterioration of the security context in Syria.
Yemen
During the first half of 2011, the Groups activities have not been significantly impacted by the deterioration of the security context in Yemen.
Commitments
In the Upstream, the Group has signed during the first half of 2011 guarantees in respect of construction contracts for an amount of about 2.9 billion.
39
8) Information by business segment
1st half 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
11,310 | 69,320 | 10,396 | 12 | | 91,038 | ||||||||||||||||||
Intersegment sales |
13,280 | 3,117 | 642 | 84 | (17,123 | ) | | |||||||||||||||||
Excise taxes |
| (8,971 | ) | | | | (8,971 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
24,590 | 63,466 | 11,038 | 96 | (17,123 | ) | 82,067 | |||||||||||||||||
Operating expenses |
(11,010 | ) | (61,242 | ) | (10,142 | ) | (314 | ) | 17,123 | (65,585 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,340 | ) | (619 | ) | (241 | ) | (17 | ) | | (3,217 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
11,240 | 1,605 | 655 | (235 | ) | | 13,265 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
816 | 96 | 100 | 270 | | 1,282 | ||||||||||||||||||
Tax on net operating income |
(6,802 | ) | (471 | ) | (241 | ) | (53 | ) | | (7,567 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
5,254 | 1,230 | 514 | (18 | ) | | 6,980 | |||||||||||||||||
Net cost of net debt |
(130 | ) | ||||||||||||||||||||||
Minority interests |
(178 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
6,672 | |||||||||||||||||||||||
1st half 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
29 | | | | 29 | |||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
29 | | | | 29 | |||||||||||||||||||
Operating expenses |
| 1,091 | 115 | | 1,206 | |||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
29 | 1,091 | 115 | | 1,235 | |||||||||||||||||||
Equity in income (loss) of affiliates and other items |
121 | 12 | (12 | ) | 54 | 175 | ||||||||||||||||||
Tax on net operating income |
(202 | ) | (346 | ) | (74 | ) | (2 | ) | (624 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(52 | ) | 757 | 29 | 52 | 786 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(12 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
774 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, as from January 1st , 2011, the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 1,154 | 115 | | ||||||||||||||||||||
On net operating income |
| 802 | 95 | | ||||||||||||||||||||
1st half 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
11,281 | 69,320 | 10,396 | 12 | | 91,009 | ||||||||||||||||||
Intersegment sales |
13,280 | 3,117 | 642 | 84 | (17,123 | ) | | |||||||||||||||||
Excise taxes |
| (8,971 | ) | | | | (8,971 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
24,561 | 63,466 | 11,038 | 96 | (17,123 | ) | 82,038 | |||||||||||||||||
Operating expenses |
(11,010 | ) | (62,333 | ) | (10,257 | ) | (314 | ) | 17,123 | (66,791 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,340 | ) | (619 | ) | (241 | ) | (17 | ) | | (3,217 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
11,211 | 514 | 540 | (235 | ) | | 12,030 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
695 | 84 | 112 | 216 | | 1,107 | ||||||||||||||||||
Tax on net operating income |
(6,600 | ) | (125 | ) | (167 | ) | (51 | ) | | (6,943 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
5,306 | 473 | 485 | (70 | ) | | 6,194 | |||||||||||||||||
Net cost of net debt |
(130 | ) | ||||||||||||||||||||||
Minority interests |
(166 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,898 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
2.62 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
| |||||||||||||||||||||||
1st half 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
12,100 | 726 | 380 | 47 | 13,253 | |||||||||||||||||||
Total divestments |
1,256 | 51 | 26 | 668 | 2,001 | |||||||||||||||||||
Cash flow from operating activities |
10,248 | 1,165 | (6 | ) | (629 | ) | 10,778 |
40
1st half 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,115 | 60,998 | 8,812 | 7 | | 78,932 | ||||||||||||||||||
Intersegment sales |
11,019 | 2,475 | 507 | 87 | (14,088 | ) | | |||||||||||||||||
Excise taxes |
| (9,444 | ) | | | | (9,444 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
20,134 | 54,029 | 9,319 | 94 | (14,088 | ) | 69,488 | |||||||||||||||||
Operating expenses |
(8,818 | ) | (52,081 | ) | (8,553 | ) | (318 | ) | 14,088 | (55,682 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,548 | ) | (623 | ) | (266 | ) | (19 | ) | | (3,456 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
8,768 | 1,325 | 500 | (243 | ) | | 10,350 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
298 | 155 | 123 | 432 | | 1,008 | ||||||||||||||||||
Tax on net operating income |
(4,995 | ) | (414 | ) | (138 | ) | 142 | | (5,405 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
4,071 | 1,066 | 485 | 331 | | 5,953 | ||||||||||||||||||
Net cost of net debt |
(107 | ) | ||||||||||||||||||||||
Minority interests |
(132 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,714 | |||||||||||||||||||||||
1st half 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| 585 | 49 | | 634 | |||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | (8 | ) | | (8 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
| 585 | 41 | | 626 | |||||||||||||||||||
Equity in income (loss) of affiliates and other items (c) |
(146 | ) | 41 | 22 | 84 | 1 | ||||||||||||||||||
Tax on net operating income |
43 | (198 | ) | (9 | ) | (2 | ) | (166 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(103 | ) | 428 | 54 | 82 | 461 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(4 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
457 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, until June 30,2010, equity share of adjustments related to Sanofi. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| 635 | 65 | | ||||||||||||||||||||
On net operating income |
| 467 | 50 | | ||||||||||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (81 | ) | |||||||||||||||||||
1st half 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,115 | 60,998 | 8,812 | 7 | | 78,932 | ||||||||||||||||||
Intersegment sales |
11,019 | 2,475 | 507 | 87 | (14,088 | ) | | |||||||||||||||||
Excise taxes |
| (9,444 | ) | | | | (9,444 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
20,134 | 54,029 | 9,319 | 94 | (14,088 | ) | 69,488 | |||||||||||||||||
Operating expenses |
(8,818 | ) | (52,666 | ) | (8,602 | ) | (318 | ) | 14,088 | (56,316 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(2,548 | ) | (623 | ) | (258 | ) | (19 | ) | | (3,448 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
8,768 | 740 | 459 | (243 | ) | | 9,724 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
444 | 114 | 101 | 348 | | 1,007 | ||||||||||||||||||
Tax on net operating income |
(5,038 | ) | (216 | ) | (129 | ) | 144 | | (5,239 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
4,174 | 638 | 431 | 249 | | 5,492 | ||||||||||||||||||
Net cost of net debt |
(107 | ) | ||||||||||||||||||||||
Minority interests |
(128 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,257 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
2.34 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
| |||||||||||||||||||||||
1st half 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,866 | 1,018 | 238 | 33 | 7,155 | |||||||||||||||||||
Total divestments |
261 | 38 | 334 | 1,265 | 1,898 | |||||||||||||||||||
Cash flow from operating activities |
8,834 | 1,496 | 387 | (515 | ) | 10,202 |
41
2nd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,166 | 34,551 | 5,291 | 1 | | 45,009 | ||||||||||||||||||
Intersegment sales |
6,341 | 1,535 | 345 | 43 | (8,264 | ) | | |||||||||||||||||
Excise taxes |
| (4,544 | ) | | | | (4,544 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,507 | 31,542 | 5,636 | 44 | (8,264 | ) | 40,465 | |||||||||||||||||
Operating expenses |
(5,072 | ) | (31,149 | ) | (5,251 | ) | (161 | ) | 8,264 | (33,369 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,335 | 93 | 263 | (126 | ) | | 5,565 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
473 | 37 | 18 | 255 | | 783 | ||||||||||||||||||
Tax on net operating income |
(3,275 | ) | (20 | ) | (117 | ) | (53 | ) | | (3,465 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,533 | 110 | 164 | 76 | | 2,883 | ||||||||||||||||||
Net cost of net debt |
(71 | ) | ||||||||||||||||||||||
Minority interests |
(86 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,726 | |||||||||||||||||||||||
2nd quarter 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(55 | ) | | | | (55 | ) | |||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(55 | ) | | | | (55 | ) | |||||||||||||||||
Operating expenses |
| (135 | ) | (15 | ) | | (150 | ) | ||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(55 | ) | (135 | ) | (15 | ) | | (205 | ) | |||||||||||||||
Equity in income (loss) of affiliates and other items |
121 | (2 | ) | (37 | ) | 43 | 125 | |||||||||||||||||
Tax on net operating income |
10 | 50 | (31 | ) | (2 | ) | 27 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
76 | (87 | ) | (83 | ) | 41 | (53 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(15 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(68 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, as from January 1st , 2011, the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
On operating income |
| (72 | ) | (15 | ) | | ||||||||||||||||||
On net operating income |
| (42 | ) | (17 | ) | | ||||||||||||||||||
2nd quarter 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,221 | 34,551 | 5,291 | 1 | | 45,064 | ||||||||||||||||||
Intersegment sales |
6,341 | 1,535 | 345 | 43 | (8,264 | ) | | |||||||||||||||||
Excise taxes |
| (4,544 | ) | | | | (4,544 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,562 | 31,542 | 5,636 | 44 | (8,264 | ) | 40,520 | |||||||||||||||||
Operating expenses |
(5,072 | ) | (31,014 | ) | (5,236 | ) | (161 | ) | 8,264 | (33,219 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,390 | 228 | 278 | (126 | ) | | 5,770 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
352 | 39 | 55 | 212 | | 658 | ||||||||||||||||||
Tax on net operating income |
(3,285 | ) | (70 | ) | (86 | ) | (51 | ) | | (3,492 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,457 | 197 | 247 | 35 | | 2,936 | ||||||||||||||||||
Net cost of net debt |
(71 | ) | ||||||||||||||||||||||
Minority interests |
(71 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,794 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
| |||||||||||||||||||||||
2nd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
6,868 | 462 | 209 | 31 | 7,570 | |||||||||||||||||||
Total divestments |
921 | 28 | 12 | 377 | 1,338 | |||||||||||||||||||
Cash flow from operating activities |
5,605 | 7 | 138 | (686 | ) | 5,064 |
42
2nd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,546 | 32,190 | 4,589 | 4 | | 41,329 | ||||||||||||||||||
Intersegment sales |
5,717 | 1,394 | 270 | 45 | (7,426 | ) | | |||||||||||||||||
Excise taxes |
| (5,002 | ) | | | | (5,002 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,263 | 28,582 | 4,859 | 49 | (7,426 | ) | 36,327 | |||||||||||||||||
Operating expenses |
(4,364 | ) | (27,460 | ) | (4,483 | ) | (173 | ) | 7,426 | (29,054 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,292 | ) | (318 | ) | (136 | ) | (11 | ) | | (1,757 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
4,607 | 804 | 240 | (135 | ) | | 5,516 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
190 | 124 | 78 | 168 | | 560 | ||||||||||||||||||
Tax on net operating income |
(2,621 | ) | (250 | ) | (65 | ) | 85 | | (2,851 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,176 | 678 | 253 | 118 | | 3,225 | ||||||||||||||||||
Net cost of net debt |
(57 | ) | ||||||||||||||||||||||
Minority interests |
(67 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,101 | |||||||||||||||||||||||
2nd quarter 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
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Excise taxes |
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|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| 255 | (57 | ) | | 198 | ||||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
| | (8 | ) | | (8 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
| 255 | (65 | ) | | 190 | ||||||||||||||||||
Equity in income (loss) of affiliates and other items (c) |
(40 | ) | 25 | 18 | (7 | ) | (4 | ) | ||||||||||||||||
Tax on net operating income |
13 | (85 | ) | 26 | | (46 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(27 | ) | 195 | (21 | ) | (7 | ) | 140 | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
| |||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||
Net income |
140 | |||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and, until June 30, 2010, equity share of adjustments related to Sanofi. (b) Of which inventory valuation effect
|
| |||||||||||||||||||||||
On operating income |
| 255 | (41 | ) | | |||||||||||||||||||
On net operating income |
| 195 | (25 | ) | | |||||||||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (40 | ) | |||||||||||||||||||
2nd quarter 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,546 | 32,190 | 4,589 | 4 | | 41,329 | ||||||||||||||||||
Intersegment sales |
5,717 | 1,394 | 270 | 45 | (7,426 | ) | | |||||||||||||||||
Excise taxes |
| (5,002 | ) | | | | (5,002 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,263 | 28,582 | 4,859 | 49 | (7,426 | ) | 36,327 | |||||||||||||||||
Operating expenses |
(4,364 | ) | (27,715 | ) | (4,426 | ) | (173 | ) | 7,426 | (29,252 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,292 | ) | (318 | ) | (128 | ) | (11 | ) | | (1,749 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,607 | 549 | 305 | (135 | ) | | 5,326 | |||||||||||||||||
Equity in income (loss) of affiliates and other items |
230 | 99 | 60 | 175 | | 564 | ||||||||||||||||||
Tax on net operating income |
(2,634 | ) | (165 | ) | (91 | ) | 85 | | (2,805 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,203 | 483 | 274 | 125 | | 3,085 | ||||||||||||||||||
Net cost of net debt |
(57 | ) | ||||||||||||||||||||||
Minority interests |
(67 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,961 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.32 | |||||||||||||||||||||||
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|
|
|
|
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(a) Except for per share amounts. |
| |||||||||||||||||||||||
2nd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
2,723 | 562 | 144 | 17 | 3,446 | |||||||||||||||||||
Total divestments |
174 | 11 | 328 | 337 | 850 | |||||||||||||||||||
Cash flow from operating activities |
4,154 | 1,042 | 477 | (731 | ) | 4,942 |
43
9) Impact of adjustments on the consolidated statement of income
1st half 2011 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
91,009 | 29 | 91,038 | |||||||||
Excise taxes |
(8,971 | ) | | (8,971 | ) | |||||||
Revenues from sales |
82,038 | 29 | 82,067 | |||||||||
Purchases net of inventory variation |
(56,910 | ) | 1,269 | (55,641 | ) | |||||||
Other operating expenses |
(9,443 | ) | (63 | ) | (9,506 | ) | ||||||
Exploration costs |
(438 | ) | | (438 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,217 | ) | | (3,217 | ) | |||||||
Other income |
109 | 222 | 331 | |||||||||
Other expense |
(129 | ) | (68 | ) | (197 | ) | ||||||
Financial interest on debt |
(295 | ) | | (295 | ) | |||||||
Financial income from marketable securities & cash equivalents |
102 | | 102 | |||||||||
Cost of net debt |
(193 | ) | | (193 | ) | |||||||
Other financial income |
410 | | 410 | |||||||||
Other financial expense |
(212 | ) | | (212 | ) | |||||||
Equity in income (loss) of affiliates |
929 | 21 | 950 | |||||||||
Income taxes |
(6,880 | ) | (624 | ) | (7,504 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
6,064 | 786 | 6,850 | |||||||||
Group share |
5,898 | 774 | 6,672 | |||||||||
Minority interests |
166 | 12 | 178 | |||||||||
1st half 2010 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
78,932 | | 78,932 | |||||||||
Excise taxes |
(9,444 | ) | | (9,444 | ) | |||||||
Revenues from sales |
69,488 | | 69,488 | |||||||||
Purchases net of inventory variation |
(46,330 | ) | 700 | (45,630 | ) | |||||||
Other operating expenses |
(9,479 | ) | (66 | ) | (9,545 | ) | ||||||
Exploration costs |
(507 | ) | | (507 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,448 | ) | (8 | ) | (3,456 | ) | ||||||
Other income |
80 | 194 | 274 | |||||||||
Other expense |
(167 | ) | (159 | ) | (326 | ) | ||||||
Financial interest on debt |
(213 | ) | | (213 | ) | |||||||
Financial income from marketable securities & cash equivalents |
48 | | 48 | |||||||||
Cost of net debt |
(165 | ) | | (165 | ) | |||||||
Other financial income |
213 | | 213 | |||||||||
Other financial expense |
(190 | ) | | (190 | ) | |||||||
Equity in income (loss) of affiliates |
1,071 | (34 | ) | 1,037 | ||||||||
Income taxes |
(5,181 | ) | (166 | ) | (5,347 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
5,385 | 461 | 5,846 | |||||||||
Group share |
5,257 | 457 | 5,714 | |||||||||
Minority interests |
128 | 4 | 132 |
44
2nd quarter 2011 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
45,064 | (55 | ) | 45,009 | ||||||||
Excise taxes |
(4,544 | ) | | (4,544 | ) | |||||||
Revenues from sales |
40,520 | (55 | ) | 40,465 | ||||||||
Purchases net of inventory variation |
(28,299 | ) | (87 | ) | (28,386 | ) | ||||||
Other operating expenses |
(4,741 | ) | (63 | ) | (4,804 | ) | ||||||
Exploration costs |
(179 | ) | | (179 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,531 | ) | | (1,531 | ) | |||||||
Other income |
35 | 211 | 246 | |||||||||
Other expense |
(70 | ) | (68 | ) | (138 | ) | ||||||
Financial interest on debt |
(159 | ) | | (159 | ) | |||||||
Financial income from marketable securities & cash equivalents |
55 | | 55 | |||||||||
Cost of net debt |
(104 | ) | | (104 | ) | |||||||
Other financial income |
335 | | 335 | |||||||||
Other financial expense |
(104 | ) | | (104 | ) | |||||||
Equity in income (loss) of affiliates |
462 | (18 | ) | 444 | ||||||||
Income taxes |
(3,459 | ) | 27 | (3,432 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,865 | (53 | ) | 2,812 | ||||||||
Group share |
2,794 | (68 | ) | 2,726 | ||||||||
Minority interests |
71 | 15 | 86 | |||||||||
2nd quarter 2010 (M) |
Adjusted | Adjustments | Consolidated statement of income |
|||||||||
Sales |
41,329 | | 41,329 | |||||||||
Excise taxes |
(5,002 | ) | | (5,002 | ) | |||||||
Revenues from sales |
36,327 | | 36,327 | |||||||||
Purchases net of inventory variation |
(24,143 | ) | 214 | (23,929 | ) | |||||||
Other operating expenses |
(4,817 | ) | (16 | ) | (4,833 | ) | ||||||
Exploration costs |
(292 | ) | | (292 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,749 | ) | (8 | ) | (1,757 | ) | ||||||
Other income |
52 | 62 | 114 | |||||||||
Other expense |
(61 | ) | (53 | ) | (114 | ) | ||||||
Financial interest on debt |
(113 | ) | | (113 | ) | |||||||
Financial income from marketable securities & cash equivalents |
24 | | 24 | |||||||||
Cost of net debt |
(89 | ) | | (89 | ) | |||||||
Other financial income |
142 | | 142 | |||||||||
Other financial expense |
(95 | ) | | (95 | ) | |||||||
Equity in income (loss) of affiliates |
526 | (13 | ) | 513 | ||||||||
Income taxes |
(2,773 | ) | (46 | ) | (2,819 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,028 | 140 | 3,168 | |||||||||
Group share |
2,961 | 140 | 3,101 | |||||||||
Minority interests |
67 | | 67 |
45
10) Changes in progress in the Group structure
Ø | Upstream |
| TOTAL signed in March 2011 agreements for the acquisition in Uganda of a one-third interest in Blocks 1, 2 and 3A held by Tullow Oil plc for $1,467 million (amount as of January 1, 2010, to which will add costs of interim period). Following this acquisition, TOTAL becomes an equal partner with Tullow and CNOOC in the blocks, each with a one-third interest and each being an operator of one of the blocks. Subject to the decision of the Authorities, TOTAL will be the operator of Block 1. |
| TOTAL announced in June 2011 the signing of an agreement with Silex Gas Norway AS, a wholly owned subsidiary of Allianz, to sell its entire stake in Gassled (6.4%) and related entities for a price of NOK 4.64 billion (approximately $870 million). The transaction is subject to approval by the relevant authorities. |
As of June 30, 2011, the assets and liabilities included in the transaction have been classified respectively as Assets classified as held for sale on the face of the consolidated balance sheet for 510 million and as Liabilities directly associated with the assets classified as held for sale on the face of the consolidated balance sheet for 324 million.
| TOTAL announced in July 2011 the acquisition of Esso Italianas interests respectively in the Gorgoglione concession (25% interest), which contains the Tempa Rossa field, and in two exploration licenses located in the same area (51.7% for each one). The acquisition increases TOTALs interest in the operated Tempa Rossa field to 75%, Shell holding the remaining 25%. The transfer of interests is subject to the approval of Italian authorities. |
Ø | Downstream |
| TOTAL and International Petroleum Investment Company (a company wholly-owned by the Government of Abu Dhabi) have entered into an agreement on February 15, 2011 for the sale, to International Petroleum Investment Company (IPIC), of the 48.83% equity interest held by TOTAL in the share capital of CEPSA, to be completed within the framework of a public tender offer being launched by IPIC for all the CEPSA shares not yet held by IPIC, at a unit purchase price of 28 per CEPSA share. This public tender offer was approved by the Comisión Nacional del Mercado de Valores (CNMV) on July 6, 2011. The acceptance period of the offer, during which the shareholders of CEPSA may decide to tender their CEPSA shares to IPIC, started on July 8, 2011 and terminated on July 22, 2011. In accordance with the agreement of February 15, 2011, TOTAL already tendered to IPIC on July 11 and 12, 2011 all of its equity interest in CEPSA, i.e. 130,668,240 CEPSA shares. Upon final completion of the transaction (settlement of the offer), TOTAL will receive an amount of approximately 3,659 million. |
As of June 30, 2011, CEPSAs equity value is presented as Assets classified as held for sale on the face of the consolidated balance sheet for 2,885 million.
| In the United Kingdom, TOTAL announced that it offered for sale its Marketing business, except for certain specialties, and the Lindsey refinery. |
In June 2011, a sale and purchase agreement has been signed to sell most of its Marketing assets in the United Kingdom, the Channel Islands and the Isle of Man to Rontec Investments LLP, a consortium led by Snax 24, one of the leading independent forecourt operators in the UK. This transaction is expected to be completed later in 2011.
The sale process for TOTALs refining assets in the UK is ongoing.
As of June 30, 2011, assets and liabilities of the Marketing businesses included in the transaction and of the Refining business have been classified respectively as Assets classified as held for sale on the face of the consolidated balance sheet for 1,293 million and as Liabilities directly associated with the assets classified as held for sale on the face of the consolidated balance sheet for 3 million.
Ø | Chemicals |
| TOTAL announced in December 2010 a plan to sell its photocure and coatings resins businesses to Arkema for a 550 million enterprise value. This sale has been effective on July 1, 2011. |
As of June 30, 2011, assets and liabilities of the photocure and coatings resins businesses have been classified respectively as Assets classified as held for sale on the face of the consolidated balance sheet for 523 million and as Liabilities directly associated with the assets classified as held for sale on the face of the consolidated balance sheet for 68 million. The assets mainly include a goodwill for 80 million, tangible assets for 196 million and inventories for 160 million.
46
11) Post-closing events
Since 1966, the Group has been taxed in accordance with the consolidated income tax treatment approved on a three-year renewable basis by the French Ministry of Economy, Finance and Industry. The approval for the period 2008-2010 expired on December 31, 2010. In July 2011, TOTAL S.A. decided not to ask for the renewal of this agreement. As a consequence, TOTAL S.A. is taxed in accordance with the common tax regime as from 2011. This change will be accounted for during the third quarter of 2011 and is not expected to have any significant accounting impacts on the consolidated balance sheet, statement of income and shareholders equity of the Group.
47
RECENT DEVELOPMENTS
TOTAL confirms the sale of its 48.83% interest in Spains CEPSA for €3.7 billion
TOTAL S.A. (together with its subsidiaries and affiliates, TOTAL) announced on August 1, 2011, that, in line with the agreement signed by TOTAL and IPIC on February 15, 2011, TOTAL has tendered its entire 48.83% interest in CEPSA following IPICs takeover bid for the company, at a price of €28 per share.
TOTAL received €3.7 billion for its shares on July 29, 2011. Aligned with its active asset management strategy, the transaction allows TOTAL to further reduce its exposure to European refining. It has cut its European refining capacity by nearly 25%, or 550,000 barrels per day, since early 2007.
TOTAL remains active in Spain, expanding its lubricant, specialty product and chemical operations.
Wholly owned by the government of the United Arab Emirates, IPIC held a 47.06% interest in CEPSA before it launched its takeover bid.
IPIC and TOTAL will continue to expand their partnership, especially in the field of exploration and production.
Italy TOTAL strengthens its presence in Exploration-Production
TOTAL announced on July 5, 2011, the acquisition of Esso Italianas interests in the Gorgoglione concession (25% interest), which contains the Tempa Rossa field, and in two exploration licenses located in the same area (51.7% for each one). The acquisition increases TOTALs equity stake in the operated Tempa Rossa field to 75%. The transfer of interests is subject to the approval of Italian authorities.
The Tempa Rossa project, located in Basilicata region, is important for the economic development of this region. The calls for tender for the main development contracts are under way and regional and governmental approvals are expected in summer 2011. A final investment decision on project implementation is planned towards the end of 2011, which would lead to an anticipated start of production in 2015 with a plateau level of 50,000 barrels of oil per day.
1
TOTAL continues to rationalize its European downstream portfolio (refining and marketing) - TOTAL signs a sale and purchase agreement with Rontec Investments LLP for its Retail Marketing and Fuel Distribution assets in the United Kingdom, the Channel Islands & the Isle of Man
TOTAL announced on June 21, 2011, that it had signed a sale and purchase agreement to sell most of its Marketing assets in the United Kingdom, the Channel Islands and the Isle of Man to Rontec Investments LLP, a consortium led by Snax 24, one of the leading independent forecourt operators in the UK.
The assets included within this agreement consist of TOTALs UK retail network, comprising 810 TOTAL-branded service stations, its Butler heating oil business, the associated logistics infrastructure, as well as its Channel Islands and Isle of Man businesses.
The Rontec Investments consortium comprises Snax 24, one of the leading independent forecourt groups in the UK; Grovepoint, a London-based, independent principal investment firm; and Investec, an international specialist bank and asset manager.
This transaction, which is expected to complete later in 2011, is in line with the Groups strategy of rationalising its downstream portfolio in Europe.
The sale process for TOTALs refining assets in the UK is ongoing.
In addition to its exploration and production operations, TOTAL will retain a direct market presence in the UK through its lubricants, aviation fuels, special fluids and chemicals businesses.
TOTAL and SunPower Partner to create a new global leader in the Solar Industry - Success of Friendly Tender Offer
On June 15, 2011, TOTAL and SunPower Corp. (NASDAQ: SPWRA, SPWRB) (SunPower) announced the success of TOTALs all-cash tender on SunPower to create a new global leader in the solar industry.
On June 15, 2011, TOTAL accepted for payment 30,220,701 shares of Class A common stock and 25,220,000 shares of Class B common stock at a purchase price of $23.25 per share for a total cost of approximately $1.3 billion. Following the expiration of the guaranteed delivery period on June 17, 2011, TOTAL accepted for payment an additional 4,535,981 shares of Class A common stock and no additional shares of Class B common stock. In the aggregate, TOTAL accepted for payment 34,756,682 shares of Class A common stock and 25,220,000 shares of Class B common stock at a purchase price of $23.25 per share for a total cost of approximately $1.4 billion.
Transaction details
As of June 15, 2011, based on the preliminary count by Computershare Trust Company, N.A., the depositary for the offer, 30,220,701 shares (approximately 52.2 percent) of Class A common stock and 31,208,640 shares (approximately 74.2 percent) of Class B common stock were validly tendered and not properly withdrawn. In addition, 16,964,440 shares (approximately 29.3 percent) of Class A common stock and 16,690,665 shares (approximately 39.7 percent) of Class B common stock were tendered pursuant to guaranteed delivery procedures, which permit shares to be delivered by the holder to the depositary by the expiration of the guaranteed delivery period on June 17, 2011. The tender offer expired at 12:00 midnight, New York City time, on Tuesday, June 14, 2011.*
Accordingly, on June 15, 2011, TOTAL accepted for payment 30,220,701 shares of Class A common stock and 25,220,000 shares of Class B common stock at a purchase price of $23.25 per share for a total cost of approximately $1.3 billion.
After the expiration of the guaranteed delivery period on June 17, 2011 (at 5:00 p.m., New York time), 37,009,624 shares of Class A common stock and 38,732,300 shares of Class B common stock were validly tendered in accordance with the terms of the offer and not properly withdrawn prior to the expiration of the offer. The tender with respect to SunPowers Class A and Class B common stock is subject to proration, as more than 60 percent of SunPowers Class A and Class B common stock, respectively, was tendered. The proration factor is approximately 93.9 percent for the Class A common stock and 65.1 percent for the Class B common stock.
Following the completion of the transaction, SunPowers shares will continue to trade on NASDAQ under the symbols SPWRA and SPWRB.
2
Forward-Looking Statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the solar energy industry, the tender offer and related transactions and the financial condition, results of operations, business, strategy and plans of TOTAL, including SunPower as a consolidated subsidiary of TOTAL. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. TOTAL does not assume any obligation to update publicly any forward looking statement, whether as a result of new information, future events or otherwise. Factors that could cause actual results to differ materially include the following: the inability to identify and realize the anticipated benefits of the transaction, the risk that our respective businesses will suffer due to the transaction, and the competitive environment in the solar industry and competitive responses to the transaction. Further information on factors which could affect the companys financial results is provided in documents filed by the Group with the French Autorité des Marchés Financiers and the U.S. Securities and Exchange Commission.
* | Shareholders tendering through guaranteed delivery procedures may have also tendered the same shares through the regular tender procedures. This is the reason why preliminary results reflect more than 100 percent of Class B common stock have been tendered. |
Norway: TOTAL launches the Ekofisk South and Eldfisk II projects
On June 9, 2011, TOTAL announced the launch of the Ekofisk South and Eldfisk II projects offshore in the southern Norwegian North Sea on Production Licence (PL) 018. TOTAL holds a 39.90% interest in the licence.
The plan for development and operation for each project has been approved by the Norwegian authorities.
The Ekofisk South project will include a new platform (Ekofisk 2/4Z) and a new subsea facility (Ekofisk 2/4VB) at the Ekofisk complex. The platform is expected to have a 40 years design life and a capacity of 70,000 barrels of oil equivalent (boe) per day. The new facilities are expected to enable the drilling of 35 production and 8 water injection wells to further develop the Ekofisk field and increase oil recovery. Production start-up is expected early 2014.
The Eldfisk II project will include a new platform (Eldfisk 2/7S) at the Eldfisk complex and substantially upgrade the existing facilities on the Eldfisk field. The new platform is expected to have 40 years design life and a capacity of 70,000 boe per day. It will provide accommodation, new process facilities, and is expected to enable the drilling of 30 production and 9 water injection wells to further develop the Eldfisk field and increase oil recovery. Production start-up is expected in 2015.
These two projects are expected to enable the development of around 450 million barrels of oil equivalent of reserves.
The Ekofisk and Eldfisk fields were discovered in 1969 and 1970. First production was achieved from the Ekofisk field in 1971 and Eldfisk came on stream in 1979. The two fields produced around 260,000 boe per day on average in 2010.
PL 018 partners are TOTAL (39.90%), ConocoPhillips (35.11% and Operator), ENI (12.39%), Statoil (7.60%) and Petoro (5.00%).
Norway: TOTAL sells to Silex Gas Norway AS its stake in Gassled, the Norwegian gas transportation network
On June 8, 2011, TOTAL announced the signing of an agreement with Silex Gas Norway AS, a wholly owned subsidiary of Allianz, to sell its entire stake in Gassled (6.4%) and related entities for a price of NOK 4.64 billion (approximately US$ 870 million). The transaction is subject to approval by the relevant authorities.
Gassled is a joint venture formed in 2003 to transport natural gas from fields on the Norwegian Continental Shelf to Continental Europe and the UK. Gassleds infrastructure assets comprise approximately 7,980 kilometers of natural gas pipelines and associated platforms, processing plants and terminals in Norway, Belgium, France, Germany and the UK. Gassled derives its revenues from tariff payments from Shippers using the system, these tariffs being regulated by the Norwegian Ministry of Petroleum and Energy.
TOTAL will continue to be a major user of the Gassled system with long term bookings to transport its equity gas production to customers in European markets.
3
Qatar: TOTAL Farms into Exploration Block BC with a 25% Interest
On May 30, 2011, TOTAL announced that it signed an agreement with CNOOC Middle East (Qatar) Limited, a wholly-owned subsidiary of CNOOC International Limited, to acquire a 25% interest in Qatars Block BC (pre-Khuff) exploration license. CNOOC Middle East (Qatar) Limited will continue to be the operator with a 75% interest.
Located 130 kilometers east of the Qatari coast, the offshore block covers an area of 5,649 square kilometers, with water depths ranging from 15 to 35 meters.
The Block BC Exploration and Production Sharing Agreement (EPSA), entered into with the Government of the State of Qatar, stipulates that 2D and 3D seismic surveys will be conducted and that at least three exploration wells will be drilled by 2014.
TOTAL Extends Cash Tender Offer to Acquire 60% of outstanding shares of SunPower Class A and B common stock
On May 25, 2011, TOTAL announced that it had filed its Form CO with the European Commission relating to its all-cash tender offer to purchase up to 60 percent of the outstanding shares of Class A common stock, and 60 percent of the outstanding shares of Class B common stock, of SunPower for $23.25 per share.
TOTAL announced therefore an extension of its all-cash tender offer. The offering period, previously scheduled to expire on May 31, 2011, was rescheduled to expire at 12:00 midnight, New York City time, on June 14, 2011, consistent with the terms of the previously announced tender offer agreement with SunPower.
Computershare Trust Company, N.A., the depositary for the offer, indicated that, as of 5:00 p.m., New York City time, on May 23, 2011, approximately 614,975 shares of Class A common stock and 284,774 shares of Class B common stock, which represent approximately 1.1% of the shares of Class A common stock and 0.7% of the shares of Class B common stock issued and outstanding as of April 27, 2011, had been validly tendered and not properly withdrawn in the Offer.
Forward-Looking Statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the tender offer and related transactions and the financial condition, results of operations, business, strategy and plans of TOTAL. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. TOTAL does not assume any obligation to update publicly any forward looking statement, whether as a result of new information, future events or otherwise. Factors that could cause actual results of the tender offer to differ materially include the following: costs related to the proposed transaction, the risk of failing to obtain any regulatory approvals or satisfy conditions to the transaction, the risk that the transaction will not close or that closing will be delayed, the risk that our respective businesses will suffer due to uncertainty related to the transaction, and the competitive environment in the solar industry and competitive responses to the transaction. Further information on factors which could affect the companys financial results is provided in documents filed by the Group with the French Autorité des Marchés Financiers and the U.S. Securities and Exchange Commission.
4
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. (TOTAL) and its subsidiaries and affiliates (collectively, 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 six months ended June 30, 2011 and 2010 and the fiscal years ended December 31, 2010, 2009, 2008, 2007 and 2006.
Six Months Ended June 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
For the Group (IFRS) |
33.76 | 33.54 | 29.11 | 21.11 | 20.86 | 14.06 | 13.93 |
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.
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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 June 30, 2011, prepared on the basis of IFRS.
At June 30, 2011 |
||||
(in millions of euros) | ||||
Current financial debt, including current portion of non-current financial debt |
||||
Current portion of non-current financial debt |
5,986 | |||
Current financial debt |
6,303 | |||
Current portion of financial instruments for interest rate swaps liabilities |
141 | |||
Other current financial instruments liabilities |
244 | |||
|
|
|||
Total current financial debt |
12,674 | |||
|
|
|||
Non-current financial debt |
20,410 | |||
Minority interests |
934 | |||
Shareholders equity |
||||
Common shares |
5,903 | |||
Paid-in surplus and retained earnings |
64,148 | |||
Currency translation adjustment |
(5,177 | ) | ||
Treasury shares |
(3,503 | ) | ||
|
|
|||
Total shareholders equity |
61,371 | |||
|
|
|||
Total capitalization and non-current indebtedness |
82,715 | |||
|
|
As of June 30, 2011, TOTAL had an authorized share capital of 3,450,886,483 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,361,390,509 ordinary shares (including 112,483,875 treasury shares from shareholders equity).
As of June 30, 2011, approximately 261 million of TOTALs non-current financial debt was secured and approximately 20,149 million was unsecured, and all of TOTALs current financial debt of 6,303 million was unsecured. As of June 30, 2011, 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, 2010, filed with the SEC on March 28, 2011. Since June 30, 2011, Total Capital Canada Ltd. has issued (after swaps) non-current financial debt of approximately CAN$200 million (or approximately 146 million using the August 1, 2011, European Central Bank reference exchange rate of 1=CAN$1.37).
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since June 30, 2011.
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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of euros) |
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net income |
6,672 | 5,714 | 10,571 | 8,447 | 10,590 | 13,181 | 11,773 | |||||||||||||||||||||
Income tax expenses |
7,504 | 5,347 | 10,228 | 7,751 | 14,146 | 13,575 | 13,720 | |||||||||||||||||||||
Minority interest |
178 | 132 | 236 | 182 | 363 | 354 | 367 | |||||||||||||||||||||
Equity in income of affiliates (in excess of)/ less than dividends received |
(123 | ) | (183 | ) | (470 | ) | (378 | ) | (311 | ) | (821 | ) | (952 | ) | ||||||||||||||
Interest expensed |
256 | 189 | 416 | 450 | 779 | 1,547 | 1,588 | |||||||||||||||||||||
Estimate of the interest within rental expense |
101 | 102 | 202 | 204 | 142 | 128 | 91 | |||||||||||||||||||||
Amortization of capitalized interest |
96 | 69 | 239 | 129 | 115 | 108 | 100 | |||||||||||||||||||||
Total |
14,684 | 11,370 | 21,422 | 16,785 | 25,824 | 28,072 | 26,687 | |||||||||||||||||||||
Interest expensed |
256 | 189 | 416 | 450 | 779 | 1,547 | 1,588 | |||||||||||||||||||||
Capitalized interest |
78 | 48 | 118 | 141 | 317 | 321 | 237 | |||||||||||||||||||||
Estimate of the interest within rental expense |
101 | 102 | 202 | 204 | 142 | 128 | 91 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
| | | | | | | |||||||||||||||||||||
Fixed charges |
435 | 339 | 736 | 795 | 1,238 | 1,996 | 1,916 | |||||||||||||||||||||
Ratio of Earnings to fixed charges |
33.76 | 33.54 | 29.11 | 21.11 | 20.86 | 14.06 | 13.93 | |||||||||||||||||||||
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