0001193125-11-238591.txt : 20110901 0001193125-11-238591.hdr.sgml : 20110901 20110901084937 ACCESSION NUMBER: 0001193125-11-238591 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20110831 FILED AS OF DATE: 20110901 DATE AS OF CHANGE: 20110901 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOTAL SA CENTRAL INDEX KEY: 0000879764 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10888 FILM NUMBER: 111069732 BUSINESS ADDRESS: STREET 1: 2 PLACE DE LA COUPOLE STREET 2: LA DEFENSE 92078 CITY: PARIS FRANCE STATE: I0 ZIP: 00000 BUSINESS PHONE: 2129693300 MAIL ADDRESS: STREET 1: 2 PLACE DE LA COUPOLE STREET 2: LA DEFENSE 92078 CITY: PARIS FRANCE STATE: I0 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: TOTAL FINA ELF SA DATE OF NAME CHANGE: 20001010 FORMER COMPANY: FORMER CONFORMED NAME: TOTAL FINA SA DATE OF NAME CHANGE: 19990713 FORMER COMPANY: FORMER CONFORMED NAME: TOTAL DATE OF NAME CHANGE: 19960103 6-K 1 d6k.htm FORM 6-K FORM 6-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13-a16 OR 15-d16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the months of: June 18, 2011 to August 30, 2011

Commission File Number: 1-10888

 

 

TOTAL S.A.

(Translation of registrant’s 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 registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s 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 registrant’s 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 the registrant by furnishing the information contained in this Form 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-            .

 

 

 


Table of Contents

TABLE OF CONTENTS

 

Signatures   
EXHIBIT INDEX   
EX 99.1:    Search and rescue organization SNSM opens national training center in Saint-Nazaire, France: The Total Foundation strengthens its support, France   
EX 99.2:    Total continues to rationalize its European downstream portfolio (refining and marketing), France   
EX 99.3:    Summer School 2011: Generation Y debates with Total, France   
EX 99.4:    Total strengthens its presence in Exploration-Production, Italy   
EX 99.5:    Danish Institute for Human Rights and Total Formalize Cooperation to Promote Human Rights, Denmark   
EX 99.6:    Second Quarter 2011 Results, France    1
EX 99.7:    Total confirms the sale of its 48.83% interest in Spain’s CEPSA for €3.7 billion, Spain   
EX 99.8:    Pazflor, one of the world’s largest ever deepwater development, comes on stream in Angola, Angola   


Table of Contents

SIGNATURES

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 31, 2011

 

By:

 

/s/ Jérôme Schmitt

   

Name: Jérôme SCHMITT

   

Title: Treasurer


Table of Contents

EXHIBIT INDEX

 

 

•       EXHIBIT 99.1:

   France: Search and rescue organization SNSM opens national training center in Saint-Nazaire, France: The Total Foundation strengthens its support (June 20, 2011)
 

•       EXHIBIT 99.2:

   France: Total continues to rationalize its European downstream portfolio (refining and marketing) (June 21, 2011)
 

•       EXHIBIT 99.3:

   France: Summer School 2011: Generation Y debates with Total (July 4, 2011)
 

•       EXHIBIT 99.4:

   Italy: Total strengthens its presence in Exploration-Production (July 5, 2011)
 

•       EXHIBIT 99.5:

   Denmark: Danish Institute for Human Rights and Total Formalize Cooperation to Promote Human Rights (July 6, 2011)
 

•       EXHIBIT 99.6:

   France: Second Quarter 2011 Results (July 29, 2011)
 

•       EXHIBIT 99.7:

   Spain: Total confirms the sale of its 48.83% interest in Spain’s CEPSA for €3.7 billion (August 2, 2011)
 

•       EXHIBIT 99.8:

   Angola: Pazflor, one of the world’s largest ever deepwater development, comes on stream in Angola (August 26, 2011)
EX-99.1 2 dex991.htm EXHIBIT 99.1 Exhibit 99.1

 

LOGO

       LOGO

 

Exhibit 99.1

 

 

      

 

Total Foundation

2, place Jean Millier

La Défense 6

92400 Courbevoie, France

Fax: +33 (0)1 47 44 30 56

 

Contacts:

 

Hortense OURY

Tél. : 01 47 44 23 34

 

 

 

 

Search and rescue organization SNSM opens national

training center in Saint-Nazaire, France:

 

The Total Foundation strengthens its support

 

 
   
 

 

 

 

Paris, June 20, 2011 - The Total Foundation’s ongoing support for search and rescue workers has been stepped up with the creation of a national training center for “Société Nationale des Sauveteurs en Mer”1 (SNSM) in Saint-Nazaire, France.

 

Inaugurated on June 18, 2011, the center will improve the training provided to volunteer search and rescue workers.

 

The Foundation helped SNSM create the center with a 500,000 donation that was used to:

 Acquire a navigation and search and rescue operation simulator.

 Convert a working rescue boat into a training boat, to supplement simulator training with training in real conditions.

 Provide personal rescue gear and technical equipment for boats.

 

The Total Foundation has supported search and rescue workers since 2007, focusing on innovation and safety to protect people at sea. For instance, it financed new rescue gear incorporating cutting-edge technology for 6,000 volunteer search and rescue workers.

 

The Foundation has also provided latest-generation technical equipment for rescue boats, such as semi-automatic defibrillators, night vision goggles, hands-free communication systems and equipment to rescue people in the water.

 

*****

 

About the Total Foundation

Created in 1992, since 2008 the Total Foundation has supported initiatives in four main areas: community support, health, culture (heritage and major exhibitions) and marine biodiversity. At home and abroad, it funds projects developed with partner associations, institutions and NGOs, as well as public interest initiatives championed by non-profit associations with which Total employees volunteer on a personal basis. http://foundation.total.com

 

 

 

 

1 Search and rescue at sea organization

EX-99.2 3 dex992.htm EXHIBIT 99.2 Exhibit 99.2

 

LOGO

 

Exhibit 99.2

   LOGO

 

TOTAL

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Fax: + 33 (0) 1 47 44 68 21

 

 

 

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

 

 

Media contacts:

 

Total UK Press Office

Claire Elliot

Tel.: 0870 241 4337

 

Iain Cracknell

Tel.: 0870 241 4337

 

Headquarter Press Office

Michaël Crochet-Vourey

Tel.: +33 (0) 1 47 44 81 33

 

TOTAL S.A.

Capital 5.896.359.120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

 

 

Paris, June 21, 2011 - Total has 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 Total’s 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 Group’s strategy of rationalising its downstream portfolio in Europe.

 

The sale process for Total’s 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 has been a major player in the energy supply chain in the UK for many years, through its strong presence in both exploration and production and gas and power. Total Exploration and Production UK is one of the most active oil and gas operators on the Continental Shelf, where it continues to invest heavily. Three projects were launched in 2010: Laggan Tormore, Islay and West Franklin Phase 2, in which more than US$5 billion will be invested in total.

 

*******

 

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow. www.total.com

EX-99.3 4 dex993.htm EXHIBIT 99.3 Exhibit 99.3

 

LOGO

 

Exhibit 99.3

   LOGO

 

 

 

 

 

TOTAL

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Fax: + 33 (0) 1 47 44 68 21

 

Isabelle DESMET

Tel.: + 33 (0) 1 47 44 37 76

 

Charles-Etienne LEBATARD

Tel.: + 33 (0) 1 47 44 45 91

 

Michaël CROCHET-VOUREY

Tel.: + 33 (0) 1 47 44 81 33

 

Sandra DANTE

Tel.: + 33 (0) 1 47 44 46 07

 

Hortense OURY

Tel.: + 33 (0) 1 47 44 23 34

 

Florent SEGURA

Tel.: + 33 (0) 1 47 44 31 38

 

Phénélope SEMAVOINE

Tel.: + 33 (0) 1 47 44 76 29

 

Frédéric TEXIER

Tel.: + 33 (0) 1 47 44 38 16

 

TOTAL S.A.

Capital 5.896.359.120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

  

Summer School 2011: Generation Y debates with Total

 

Paris, July 4, 2011 – The sixth Total Summer School organized in Paris from July 3-8 welcomes 120 international students enrolled in highly competitive graduate programs to discuss the major challenges in the energy industry and Total’s strategic vision. The students, ranging in age from 19 to 23, are from 24 countries in Asia, Africa, Europe and the Americas.

 

Summer School 2011 is emphasizing the program’s participative aspect, by providing a platform for discussing Total’s strategic issues and values with an important panel of future managers.

 

Throughout the week, Total executives and guest experts will talk with the students about the Group’s business environment, the future of energy, industrial safety, R&D, technology, sustainable development and other topics.

 

The students, organized along the lines of a think tank, will be asked to address three major issues that directly concern their generation and are crucial for Total: Human Resources policy, culture 2.0 in the workplace and corporate social responsibility. Each team’s mission over three days will be to come up with new ideas and approaches that they will present to Jean-Jacques Guilbaud, Chief Administrative Officer.

 

“We want to hear what tomorrow’s managers have to say,” explains Jean-Jacques Guilbaud. “Total Summer School provides a unique opportunity to bring together young people from around the world and listen to their aspirations and expectations in relation to a company like ours. This week of discussion and debate will give us valuable input as we look at the challenges ahead.”

 

*******

 

About Total Summer School

Total Summer School is a program of Université Total. The Group founded its corporate university in 2005 to create forums for reflection and discussion on issues that can have an impact on the future of its businesses and to strengthen its ties with the academic world. To find out more, visit us at www.universite.total.com or http://www.facebook.com/totalsummerschool

 

About Total

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow. www.total.com

EX-99.4 5 dex994.htm EXHIBIT 99.4 Exhibit 99.4

 

LOGO

Exhibit 99.4

   LOGO

 

 

 

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Tel. : 33 (1) 47 44 58 53

Fax : 33 (1) 47 44 58 24

 

Bertrand DE LA NOUE

Martin DEFFONTAINES

Karine KACZKA

Laurent KETTENMEYER

Matthieu GOT

 

Robert HAMMOND (U.S.)

Tel. : (1) 713-483-5070

Fax : (1) 713-483-5629

 

TOTAL S.A.

Capital 5 896 359 120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

  

Italy – Total strengthens its presence in Exploration-Production

 

 

Paris, July 5, 2011 - Today, Total announced the acquisition of Esso Italiana’s 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 Total’s 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 end 2011 which would lead to start of production in 2015 with a plateau level of 50,000 barrels of oil per day.

 

This acquisition strengthens Total’s position in the Exploration-Production sector in Italy and its commitment as a major player in the economic development of the Basilicata Region. The Total Group strives to reduce its environmental footprint as part of its commitment to sustainable development. Safety and environmental protection are core concerns for the Group wherever it operates.

 

*******

 

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow. www.total.com

EX-99.5 6 dex995.htm EXHIBIT 99.5 Exhibit 99.5

LOGO

      Exhibit 99.5

PRESSE RELEASE

Danish Institute for Human Rights and Total

Formalize Cooperation to Promote Human Rights

Paris, July 6, 2011 - Total and the Danish Institute for Human Rights (DIHR) will commence a two-year relationship agreement to intensify their collaboration and support effective implementation of human rights principles in Total operations and in the wider corporate sector.

The agreement involves a number of human rights workstreams aimed at helping Total deepen and strengthen its approach to human rights.

‘Human rights have a universal value and are fundamental to sustainable economic development. As a significant long-term economic actor in a number of countries transitioning to democracy, Total has a key human rights role to play in those societies as well. With this collaboration we have the opportunity to work together with Total to further address the many opportunities and challenges that come with that role,’ said Margaret Jungk, director of the Human Rights and Business Department at DIHR.

Since 1999, DIHR has engaged directly with corporate actors to address their positive and negative human rights impacts. This includes developing a Total-specific tool designed to assess how the company’s policies, procedures and practices impact human rights. The tool was tested in Angola and South Africa, and will continue to be applied in Total operations throughout 2011, and will be fully integrated into Total’s ethical assessment processes.

‘Total is committed to respecting human rights and is implementing rules and processes to assess the impact of its activities,’ said Bernard Claude, Chairman of Total’s Ethics Committee. ‘In 2009, Total EP Myanmar and DIHR piloted a training program on human rights awareness which proved a success and paved the way for further collaboration.’

DIHR will also help in the assessment of Total’s human rights provisions in regard to suppliers, including contractual requirements, supplier classification and monitoring.

Total will support the development of the DIHR Human Rights and Business Country Portal, devised to assess human rights conditions in high-risk business environments around the world. Throughout the collaboration, DIHR will provide training to address human rights issues in sensitive environments.

The collaboration will be subject to internal evaluation to ensure that the shared goal of promoting human rights is achieved.


ABOUT THE DANISH INSTITUTE FOR HUMAN RIGHTS

The Danish Institute for Human Rights (DIHR) is an independent National Human Rights Institution established by an act of Danish Parliament in 1987 and modelled in accordance with the UN Paris Principles.

The chief objective of DIHR is to promote human rights and develop knowledge, tools, training and projects which effect direct impact on human rights realization on a national, regional and international basis. Since 1999, DIHR has become a leader in addressing the impacts of the private-sector, and has conducted projects with transnational corporations worldwide.

www.Humanrights.dk

www.Humanrightsbusiness.org

DIHR media contact:

Martin Lassen-Vernal

E-mail: mlv@humanrights.dk

ABOUT TOTAL

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow.

Since 2002, Total has been a member of the UN Global Compact and commits to support and respect the protection of internationally recognized human rights.

www.total.com

TOTAL media contact:

Sandra Dante

Tel: +33 (0)1 47 44 46 07

E-mail: sandra.dante@total.com

EX-99.6 7 dex996.htm EXHIBIT 99.6 Exhibit 99.6

LOGO

Exhibit 99.6

 

 

 

 

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Tel. : 33 (1) 47 44 58 53

Fax : 33 (1) 47 44 58 24

Bertrand DE LA NOUE

Martin DEFFONTAINES

Karine KACZKA

Laurent KETTENMEYER

Matthieu GOT

Robert HAMMOND (U.S.)

Tel. : (1) 713-483-5070

Fax : (1) 713-483-5629

TOTAL S.A.

Capital 5 896 359 120 euros

542 051 180 R.C.S. Nanterre

www.total.com

Paris, July 29, 2011

 

   LOGO

Second quarter and first half 2011 results

 

     2Q11     

Change

vs 2Q10

    1H11     

Change

vs 1H10

 

Adjusted net income1

          

- in billion euros (B)

     2.8         -6     5.9         +12

- in billion dollars (B$)

     4.0         +7     8.3         +19

- in euros per share

     1.24         -6     2.62         +12

- in dollars per share

     1.78         +6     3.67         +18

Net income (Group share) (B)

     2.7         -12     6.7         +17
Net-debt-to-equity ratio of 24.3% at June 30, 2011   
Hydrocarbon production of 2,311 kboe/d in 2Q 2011   
Interim dividend for 2Q11 of 0.57 per share payable in December 20112   

Commenting on the results, Chairman and CEO Christophe de Margerie said :

« The combination of sustained global demand and geopolitical troubles increased tensions in the oil market during the second quarter. In this environment, Total continued to develop and rebalance its portfolio in accordance with its commitment to sustainable growth.

The net result for the quarter increased by 7% in dollars compared to the second quarter 2010, reflecting the benefit of a more favorable environment, which more than offset the negative impacts of portfolio changes, higher maintenance, shutdowns in Libya, and continued weak refining margins in Europe.

Exploration success in Bolivia and Angola, a new permit in Qatar, a larger stake for Total in the Tempa Rossa field in Italy, entry into shale gas concessions in Poland and the launch of two offshore projects in Norway open new perspectives for growth. In addition, the acquisition of California-based SunPower delivers on the commitment to new energies, placing Total among the world leaders in the fast-growing solar sector. At the same time, the Group finalized agreements to sell several non-core assets, including its interest in the Gassled pipeline network in Norway and the bulk of its UK marketing assets.

With a strong balance sheet and a dynamic pace of execution in all of the Group’s segments, Total begins the second half of 2011 very confident in its outlook for profitable growth to benefit all of its stakeholders »

 

 

1 Adjusted results defined on page 2 - dollar amounts represent euro amounts converted at the average -$ exchange rate for the period : 1.4391 $/ for the 2nd quarter 2011, 1.2708 $/ for the 2nd quarter 2010, 1.3680 $/ for the 1st quarter 2011, 1.4032 $/ for the 1st half 2011 and 1.3268 $/ for the 1st half 2010.

2 The ex-dividend date for the interim dividend will be December 19, 2011 and the payment date will be December 22, 2011.

 

 

1


Key figures3

 

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
  5,896        6,369        5,461        +8  

Adjusted operating income from business segments

    12,265        9,967        +23
  2,901        3,363        2,960        -2  

Adjusted net operating income from business segments

    6,264        5,243        +19
  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
  2,794        3,104        2,961        -6  

Adjusted net income

    5,898        5,257        +12
  1.24        1.38        1.32        -6  

Adjusted fully-diluted earnings per share (euros)

    2.62        2.34        +12
  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     

Investments4

    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
  4,675        4,945        5,250        -11  

Adjusted cash flow from operations

    9,620        8,989        +7
2Q11     1Q11     2Q10     2Q11
vs
2Q10
   

in millions of dollars 5

except earnings per share and number of shares

  1H11     1H10     1H11
vs
1H10
 
  64,772        62,968        52,521        +23  

Sales

    127,745        104,727        +22
  8,485        8,713        6,940        +22  

Adjusted operating income from business segments

    17,210        13,224        +30
  4,175        4,601        3,762        +11  

Adjusted net operating income from business segments

    8,790        6,956        +26
  3,536        3,897        2,800        +26  

•    Upstream

    7,445        5,538        +34
  284        378        614        -54  

•    Downstream

    664        846        -22
  355        326        348        +2  

•    Chemicals

    681        572        +19
  4,021        4,246        3,763        +7  

Adjusted net income

    8,276        6,975        +19
  1.78        1.89        1.68        +6  

Adjusted fully-diluted earnings per share (euros)

    3.67        3.11        +18
  2,255.5        2,251.1        2,242.5        +1  

Fully-diluted weighted-average shares (millions)

    2,252.3        2,242.6        —     
  3,923        5,398        3,941        —       

Net income (Group share)

    9,362        7,581        +23
  10,894        7,774        4,379        X2.5     

Investments4

    18,597        9,493        X2.0   
  1,926        907        1,080        +78  

Divestments

    2,808        2,518        +12
  8,968        6,867        3,299        X2.7     

Net investments

    15,789        6,975        X2.3   
  7,288        7,817        6,280        +16  

Cash flow from operations

    15,124        13,536        +12
  6,728        6,765        6,672        +1  

Adjusted cash flow from operations

    13,499        11,927        +13

 

 

3 Adjusted results (adjusted operating income, adjusted net operating income and adjusted net income) are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value from January 1, 2011, and, through June 30, 2010, excluding Total’s equity share of adjustments related to Sanofi. Adjusted cash flow from operations is defined as cash flow from operations before changes in working capital at replacement cost; adjustment items are on page 17 and the inventory valuation effect are explained on page 14.

4 Including acquisitions.

5 Dollar amounts represent euro amounts converted at the average -$ exchange rate for the period.

 

 

2


Highlights since the beginning of the second quarter 2011

 

   

First production from phase 2 of the Greater Angostura gas field in Trinidad & Tobago

 

   

Launched Ekofisk South and Eldfisk II projects in the Norwegian North Sea

 

   

New gas and condensate discovery on the Aquio block in Bolivia

 

   

Third oil discovery on deep-offshore Block 17/06 in Angola

 

   

Acquired 25% share of the BC exploration permit in Qatar

 

   

Acquired 49% share of the Chelm and Werbkowice shale gas concessions in Poland

 

   

Acquired an additional 25% share of the Gorgoglione concession and two exploration licenses located in the same zone, increasing Total’s share to 75% of the Tempa Rossa field in Italy

 

   

Signed an agreement to sell most of Total’s UK marketing assets

 

   

Signed an agreement to sell Total’s interests in Gassled, a gas pipeline network in Norway

 

   

Successful public offer to acquire 60% of SunPower in the U.S.

Results for the second quarter 2011

> Operating income

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, the adjusted operating income6 from the business segments was 5,896 M, an increase of 8% compared to the second quarter 2010. Expressed in dollars, the increase was 22%.

The effective tax rate7 for the business segments was 59.3% in the second quarter 2011 compared to 53.7% in the second quarter 2010, essentially due to the lower weight of Downstream in the results, an increase in the effective tax rate for the Upstream related to income contribution mix effects, and an increase in UK petroleum taxes.

Adjusted net operating income from the business segments was 2,901 M compared to 2,960 M in the second quarter 2010, a decrease of 2%.

Expressed in dollars, adjusted net operating income from the business segments was 4.2 billion dollars (B$), an increase of 11% compared to the second quarter 2010.

 

 

 

 

6 Special items affecting operating income from the business segments had a negative impact of 63 M in the 2nd quarter 2011.

7 Defined as: (tax on adjusted net operating income) / (adjusted net operating income – income from equity affiliates, dividends received from investments and impairments of acquisition goodwill + tax on adjusted net operating income).

 

 

3


> Net income (Group share)

Adjusted net income was 2,794 M in the second quarter 2011 compared to 2,961 M in the second quarter 2010, a decrease of 6%. Expressed in dollars, adjusted net income increased by 7%.

Effective July 1, 2010, the Group no longer accounts for its interest in Sanofi as an equity affiliate. In the second quarter 2011, the Group received dividend income of 115 M after taxes from Sanofi. In the second quarter 2010, the contribution to the Group’s adjusted net income from its interest in Sanofi was 141 M.

Adjusted net income excludes the after-tax inventory effect, special items and from January 1, 2011, the effect of changes in fair value8:

 

 

The after-tax inventory effect had a negative impact on net income of 74 M in the second quarter 2011 and a positive impact of 169 M in the second quarter 2010.

 

 

Changes in fair value had a negative impact on net income of 41 M in the second quarter 2011.

 

 

Special items had a positive impact on net income of 47 M in the second quarter 2011 and a positive impact on net income of 11 M in the second quarter 2010.

 

 

In the second quarter 2010, the Group’s share of adjustment items related to Sanofi had a negative impact on net income of 40 M.

Net income (Group share) was 2,726 M compared to 3,101 M in the second quarter 2010.

The effective tax rate for the Group was 59.4% in the second quarter 2011.

Adjusted fully-diluted earnings per share, based on 2,255.5 million fully-diluted weighted-average shares, was 1.24 compared to 1.32 in the second quarter 2010, a decrease of 6%.

Expressed in dollars, adjusted fully-diluted earnings per share increased 6% to $1.78.

> Investments – divestments9

Investments, excluding acquisitions and including changes in non-current loans, were 3.5 B (5.0 B$) in the second quarter 2011 compared to 3.1 B (3.9 B$) in the second quarter 2010.

Acquisitions were 4.0 B (5.8 B$) 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 B (1.8 B$), including mainly the Group’s interest in its Cameroon E&P subsidiary, part of the Joslyn project in Canada and the sale of Sanofi shares.

Net investments10 were 6.2 B (9.0 B$) in the second quarter 2011 compared to 2.6 B (3.3 B$) in the second quarter 2010.

 

 

 

 

8 Adjustment items explained on page 14.

9 Detail shown on page 18.

10 Net investments = investments including acquisitions and changes in non-current loans – asset sales.

 

 

4


> Cash flow

Cash flow from operations was 5,064 M in the second quarter 2011 compared to 4,942 M the second quarter 2010. Expressed in dollars, cash flow from operations was 7.3 B$.

Adjusted cash flow from operations 11 was 4,675 M, a decrease of 11% compared to the second quarter 2010. Expressed in dollars, adjusted cash flow from operations was 6.7 B$, an increase of 1%.

The Group’s net cash flow12 was a negative 1,168 M compared to a positive 2,346 M in the second quarter 2010. Expressed in dollars, the Group’s net cash flow was a negative 1.7 B$ in the second quarter 2011 compared to a positive 3.0 B$ in the second quarter 2010, reflecting essentially the significant level of acquisitions finalized during the quarter.

 

 

 

 

 

 

 

 

11 Cash flow from operations at replacement cost before changes in working capital.

12 Net cash flow = cash flow from operations - net investments.

 

 

5


First half 2011 results

> Operating income

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, the adjusted operating income from the business segments was 12,265 M, an increase of 23% compared to the first half 201013.

The effective tax rate for the business segments was 56.9% in the first half 2011 compared to 55.4% in the first half 2010.

Adjusted net operating income from the business segments was 6,264 M compared to 5,243 M in the first half 2010, an increase of 19%.

Expressed in dollars, adjusted net operating income from the business segments increased by 26%.

> Net income (Group share)

Adjusted net income was 5,898 M in the first half 2011, an increase of 12% compared to the 5,257 M in the first half 2010. Expressed in dollars, adjusted net income increased by 19%.

Effective July 1, 2010, the Group no longer accounts for its interest in Sanofi as an equity affiliate. In the first half 2011, the Group received dividend income of 115 M after taxes from Sanofi. In the first half 2010, the contribution to the Group’s adjusted net income from its interest in Sanofi was 290 M.

Adjusted net income excludes the after-tax inventory effect, special items and from January 1, 2011, the effect of changes in fair value 14:

 

   

The after-tax inventory effect had a positive impact on net income of 872 M in the first half 2011 and a positive impact of 513 M in the first half 2010.

   

Changes in fair value had a positive impact on net income of 22 M in the first half 2011.

   

Special items had a negative impact on net income of 120 M in the first half 2011, comprised essentially of the increase in the deferred tax liability due to the change in UK taxes. Special items had a positive impact on net income of 25 M in the first half 2010.

   

In the first half 2010, the Group’s share of adjustment items related to Sanofi had a negative impact on net income of 81 M.

Net income (Group share) was 6,672 M compared to 5,714 M in the first half 2010.

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.

Adjusted fully-diluted earnings per share, based on 2,252.3 million fully-diluted weighted-average shares, was 2.62 compared to 2.34 in the first half 2010, an increase of 12%.

Expressed in dollars, adjusted fully-diluted earnings per share was $3.67 compared to $3.11 in the first half 2010, an increase of 18%.

 

 

 

13 Special items affecting operating income from the business segments had a negative impact of 63 M in the first half 2011 and a negative impact of 74 M in the first half 2010.

14 Adjustment items explained on page 14.

 

 

6


> Investments – divestments15

Investments, excluding acquisitions and including changes in non-current loans, were 6.3 B (8.8 B$) in the first half 2011 compared to 5.5 B (7.3 B$) in the first half 2010.

Acquisitions were 6.5 B (9.2 B$) 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 B (2.2 B$), essentially comprised of sales of Sanofi shares, the Group’s interest in its Cameroon E&P subsidiary and part of the Joslyn project in Canada.

Net investments were 11.3 B (15.8 B$) in the first half 2011, compared to 5.3 B (7.0 B$) in the first half 2010.

> Cash flow

Cash flow from operations was 10,778 M in the first half 2011, an increase of 6% compared to the first half 2010.

Adjusted cash flow from operations 16 was 9,620 M, an increase of 7%. Expressed in dollars, adjusted cash flow from operations was 13.5 B$, an increase of 13%.

The Group’s net cash flow 17 was a negative 474 M compared to a positive 4,945 M in the first half 2010. Expressed in dollars, the Group’s net cash flow was a negative 0.7 B$ in the first half 2011.

The net-debt-to-equity ratio was 24.3% on June 30, 2011 compared to 22.7% on June 30, 201018, in line with the Group’s target range.

 

 

 

 

 

15 Detail shown on page 18.

16 Cash flow from operations at replacement cost before changes in working capital.

17 Net cash flow = cash flow from operations - net investments.

18 Detail shown on page 19.

 

 

7


Analysis of business segment results

Upstream

> Environment – liquids and gas price realizations*

 

2Q11      1Q11      2Q10      2Q11
vs
2Q10
         1H11      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 effect19,

 

 

-2.5% for disruptions related to security conditions, mainly in Libya,

 

 

+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 effect19,

 

 

-2% for disruptions related to security conditions, mainly in Libya,

 

 

+1.5% for the end of OPEC reductions.

 

 

 

 

19 Impact of changing hydrocarbon prices on entitlement volumes.

 

 

8


Results

 

2Q11      1Q11      2Q10      2Q11
vs
2Q10
    In millions of euros    1H11      1H10      1H11
vs
1H10
 
  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
  4,010         4,271         3,895         +3   Adjusted cash flow      8,281         7,019         +18

* detail of adjustment items shown in the business segment information annex to financial statements.

Adjusted net operating income from the Upstream segment was 2,457 M in the second quarter 2011 compared to 2,203 M in the second quarter 2010, an increase of 12%.

Expressed in dollars, the increase was 26%, reflecting mainly the increase in hydrocarbon prices.

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 M compared to 4,174 M in the first half 2010, an increase of 27%.

Expressed in dollars, adjusted net operating income from the Upstream segment was 7.4 B$, an increase of 34% compared to the first half 2010, reflecting essentially the increase in hydrocarbon prices.

The return on average capital employed (ROACE20) 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%.

 

 

 

 

 

 

20 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

 

 

9


Downstream

> Refinery throughput and utilization rates*

 

2Q11     1Q11     2Q10     2Q11
vs
2Q10
         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.

> Results

 

2Q11      1Q11      2Q10      2Q11
vs
2Q10
   

in millions of euros

(except the ERMI)

   1H11      1H10      1H11
vs
1H10
 
  16.3         24.6         31.2         -48  

European refining margin indicator - ERMI ($/t)

     20.4         30.4         -33
  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
  398         360         774         -49  

Adjusted cash flow

     758         1,097         -31

* detail of adjustment items shown in the business segment information annex to financial statements.

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 M in the second quarter 2011, compared to 483 M in the second quarter 2010. Expressed in dollars, adjusted net operating income from the Downstream segment was 284 M$ compared to 614 M$ in the second quarter 2010.

 

 

10


Adjusted net operating income from the Downstream segment in the first half 2011 was 473 M, a decrease of 26% compared to the first half 2010. Expressed in dollars, adjusted net operating income from the Downstream segment in the first half 2011 was 664 M$, a decrease of 22% 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 ROACE21 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%.

 

 

 

 

 

 

21 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

 

 

11


Chemicals

 

2Q11      1Q11     2Q10      2Q11
vs
2Q10
  in millions of euros    1H11     1H10      1H11
vs
1H10
 
  5,291         5,105        4,589       +15%   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
  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   
  336         289        418       -20%   Adjusted cash flow      625        646         -3

* detail of adjustment items shown in the business segment information annex to financial statements.

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 B, an increase of 15% compared to the second quarter 2010.

The adjusted net operating income for the Chemicals segment was 247 M compared to 274 M in the second quarter 2010, which reflected strong petrochemical margins in Europe and the U.S. Results for the Specialty chemicals were in line with the strong results shown over recent quarters in a still favorable environment.

In the first half 2011, adjusted net operating income for the Chemicals segment was 485 M compared to 431 M in the first half 2010. The increase reflects essentially the progress made by the Base chemicals in a generally favorable environment with, in particular, an increased contribution from activities in Qatar.

The ROACE22 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%.

 

 

 

22 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

 

 

12


· TOTAL S.A. parent company accounts

Net income for TOTAL S.A., the parent company, was 3,157 M in the first half 2011, compared to 2,941 M in the first half 2010.

· Summary and outlook

The ROACE23 for the Group for the twelve months ended June 30, 2011, was 16% compared to 17% for the twelve months ended March 31, 2011 and 16% for the full year 2010. The annualized second quarter 2011 ROACE for the Group was 16%.

Return on equity for the twelve months ended June 30, 2011, was 19%.

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, 201124 an interim dividend of 0.57 euros 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 U.S. 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.

¿ ¿ ¿

 

To listen to CFO Patrick de la Chevardière’s conference call with financial analysts today at 15:00 (Paris time) please log on to www.total.com or call +44 (0)207 162 0177 in Europe or +1 334 323 6203 in the U.S. For a replay, please consult the website or call +44 207 031 4064 in Europe or 1 954 334 0342 in the US (code : 897 455).

 

 

 

 

23 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

24 Ex-dividend date will be December 19, 2011.

 

 

13


This document does not constitute the Financial Report for the first half which will be separately published, in accordance with article L.451-1-2 III of the French Code monétaire et financier, and is available on our web site www.total.com or upon request at the company’s headquarters.

The June 30, 2011 notes to the consolidated financial statements are available on the Total web site (www.total.com).This document may contain forward-looking statements, including within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business, strategy and plans of TOTAL.

Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the company’s financial results is provided in documents filed by the Group with the French Autorité des Marchés Financiers and the U.S. Securities and Exchange Commission (“SEC”).

Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL.

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 an adjustment item reflects for some transactions differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS.

IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.

Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.

(iv) Until June 30, 2010, TOTAL’s equity share of adjustment items reconciling “Business net income” to Net income attributable to equity holders of Sanofi

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 1st, 2011 and excluding TOTAL’s equity share of adjustment items related to Sanofi until June 30, 2010.

Dollar amounts presented herein represent euro amounts converted at the average euro-dollar exchange rate for the applicable period and are not the result of financial statements prepared in dollars.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this presentation, such as resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File N° 1-10888, available from us at 2, place Jean Millier – La Défense 6 – 92078 Paris – La Défense Cedex, France, or at our Web site: www.total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s Web site: www.sec.gov.

 

 

14


Second quarter and first half 2011 operating

information by segment

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
 

 

15


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

 

 

16


Adjustment items

· Adjustments to operating income from business segments

 

2Q11      1Q11      2Q10     in millions of euros    1H11     1H10  
  (63)         —           (24  

Special items affecting operating income from the business segments

     (63     (74
  —           —           —       

•      Restructuring charges

     —          —     
  —           —           (8  

•      Impairments

     —          (8
  (63)         —           (16  

•      Other

     (63     (66
  (87)         1,356         214     

Pre-tax inventory effect : FIFO vs. replacement cost

     1,269        700   
  (55)         84         —       

Effect of changes in fair value

     29        —     

 

 

    

 

 

    

 

 

      

 

 

   

 

 

 
  (205)         1,440         190     

Total adjustments affecting operating income from the business segments

     1,235        626   

 

 

    

 

 

    

 

 

      

 

 

   

 

 

 

· Adjustments to net income (Group share)

 

2Q11      1Q11     2Q10     in millions of euros    1H11     1H10  
  47         (167     11     

Special items affecting net income (Group share)

     (120     25   
  205         11        63     

•      Gain on asset sales

     216        192   
  —           —          (10  

•      Restructuring charges

     —          (10
  (47)         —          (6  

•      Impairments

     (47     (65
  (111)         (178     (36  

•      Other

     (289     (92
  (74)         946        169     

After-tax inventory effect : FIFO vs. replacement cost

     872        513   
  (41)         63        —       

Effect of changes in fair value

     22        —     
  —           —          (40  

Equity share of adjustment items related to Sanofi*

     —          (81

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (68)         842        140     

Total adjustments to net income

     774        457   

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 

* based on Total’s share in Sanofi of 5.7% at June 30, 2010. Effective July 1, 2010, Sanofi is no longer treated as an equity affiliate.

Effective tax rates

 

2Q11      1Q11     2Q10     Effective tax rate*    1H11     1H10  
  61.6%         57.6     58.3  

Upstream

     59.5     59.1
  59.4%         55.6     53.3  

Group

     57.5     55.0

* tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates, dividends received from investments, and impairments of acquisition goodwill + tax on adjusted net operating income).

 

 

17


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         +38  

•    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   

 

2Q11      1Q11     2Q10      2Q11
vs
2Q10
    expressed in millions of dollars ***    1H11      1H10      1H11
vs
1H10
 
  4,989         3,813        3,898         +28  

Investments excluding acquisitions*

     8,776         7,289         +20
  348         297        281         +24  

•    Capitalized exploration

     644         557         +16
  302         (285     216         +56  

•    Changes in non-current loans**

     3         373         n/a   
  5,768         3,460        388         x14.9     

Acquisitions

     9,173         2,019         x4.5   
  10,757         7,272        4,285         x2.5     

Investments including acquisitions*

     17,948         9,309         +93
  1,789         405        963         +86  

Asset sales

     2,160         2,286         -6
  8,968         6,867        3,299         x2.7     

Net investments

     15,789         6,975         x2.3   

 

*

includes changes in non-current loans.

**

includes net investments in equity affiliates and non-consolidated companies + net financing for employees related stock purchase plans.

***

dollar amounts represent euro amounts converted at the average -$ exchange rate for the period.

 

 

18


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

2011 Sensitivities*

 

     Scenario   Change   Impact on adjusted
operating
income(e)
  Impact on adjusted
net operating
income(e)

Dollar

   1.30 $/   +0.1 $ per    -1.6 B   -0.8 B

Brent

   80 $/b   +1 $/b   +0.27 B / 0.35  B$   +0.13 B / 0.17  B$

European refining margins ERMI

   30 $/t   +1 $/t   +0.07 B / 0.09  B$   +0.05 B / 0.07  B$

* sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. The impact of the -$ sensitivity on adjusted operating income and adjusted net operating income attributable to the Upstream segment are approximately 80% and 75% respectively, and the remaining impact of the -$ sensitivity is essentially in the Downstream segment.

 

 

19


Return on average capital employed

· Twelve months ended June 30, 2011

 

in millions of euros    Upstream     Downstream     Chemicals     Segments     Group  

Adjusted net operating income

     9,729        1,003        911        11,643        11,450   

Capital employed at 6/30/2010*

     43,908        16,010        7,286        67,204        72,042   

Capital employed at 6/30/2011*

     46,671        14,921        7,938        69,530        72,843   

ROACE

     21.5     6.5     12.0     17.0     15.8

 

* at replacement cost (excluding after-tax inventory effect).

· Twelve months ended March 31, 2011

 

in millions of euros    Upstream     Downstream     Chemicals     Segments     Group  

Adjusted net operating income

     9,475        1,289        938        11,702        11,599   

Capital employed at 3/31/2010*

     39,925        15,634        7,412        62,971        67,099   

Capital employed at 3/31/2011*

     44,528        14,527        7,681        66,736        70,579   

ROACE

     22.4     8.5     12.4     18.0     16.8

 

* at replacement cost (excluding after-tax inventory effect).

· Twelve months ended December 31, 2010

 

in millions of euros    Upstream     Downstream     Chemicals     Segments     Group  

Adjusted net operating income

     8,597        1,168        857        10,622        10,748   

Capital employed at 12/31/2009*

     37,397        15,299        6,898        59,594        64,451   

Capital employed at 12/31/2010*

     43,972        15,561        7,312        66,845        70,866   

ROACE

     21.1     7.6     12.1     16.8     15.9

 

* at replacement cost (excluding after-tax inventory effect).
 

 

20

EX-99.7 8 dex997.htm EXHIBIT 99.7 Exhibit 99.7

LOGO

Exhibit 99.7

   LOGO

 

 

TOTAL

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Fax: + 33 (0) 1 47 44 68 21

 

Isabelle DESMET

Tel.: + 33 (0) 1 47 44 37 76

 

Charles-Etienne LEBATARD

Tel.: + 33 (0) 1 47 44 45 91

 

Michaël CROCHET-VOUREY

Tel.: + 33 (0) 1 47 44 81 33

 

Sandra DANTE

Tel.: + 33 (0) 1 47 44 46 07

 

Hortense OURY

Tel.: + 33 (0) 1 47 44 23 34

 

Florent SEGURA

Tel.: + 33 (0) 1 47 44 31 38

 

Phénélope SEMAVOINE

Tel.: + 33 (0) 1 47 44 76 29

 

Frédéric TEXIER

Tel.: + 33 (0) 1 47 44 38 16

 

TOTAL S.A.

Capital 5.896.359.120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

  

Total confirms the sale of its 48.83% interest

in Spain’s CEPSA for 3.7 billion

  
  

 

Paris, August 1, 2011 - 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 IPIC’s 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 the Group 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.

 

CEPSA is Spain’s second-ranked oil company, with a refining capacity of 528,000 barrels per day, a retail network of around 1,750 service stations in Spain and Portugal, and oil and gas production of around 55,000 barrels of oil equivalent per day. CEPSA is also active in petrochemicals, natural gas marketing and power.

 

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.

 

*******

 

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow. www.total.com

EX-99.8 9 dex998.htm EXHIBIT 99.8 Exhibit 99.8

LOGO

Exhibit 99.8

   LOGO

 

TOTAL

  

Pazflor, one of the world’s largest ever deepwater development,

comes on stream in Angola

 

 

  

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Fax: + 33 (0) 1 47 44 68 21

 

Isabelle DESMET

Tel.: + 33 (0) 1 47 44 37 76

 

Charles-Etienne LEBATARD

Tel.: + 33 (0) 1 47 44 45 91

 

Michaël CROCHET-VOUREY

Tel.: + 33 (0) 1 47 44 81 33

 

Sandra DANTE

Tel.: + 33 (0) 1 47 44 46 07

 

Hortense OURY

Tel.: + 33 (0) 1 47 44 23 34

 

Florent SEGURA

Tel.: + 33 (0) 1 47 44 31 38

 

Phénélope SEMAVOINE

Tel.: + 33 (0) 1 47 44 76 29

 

Frédéric TEXIER

Tel.: + 33 (0) 1 47 44 38 16

 

TOTAL S.A.

Capital 5.896.359.120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

  

 

Paris, August 26, 2011 – Total, operator of Block 17, today announced that the giant Pazflor field offshore Angola has come on stream ahead of the initial schedule. The Pazflor field lies 150 kilometres off Luanda in water depths ranging from 600 to 1,200 metres and has estimated proved and probable reserves of 590 million barrels. The field will gradually ramp up to its full production capacity of 220,000 barrels per day over the coming months.

 

“Pazflor’s start-up, several weeks ahead of schedule and within budget, is a remarkable achievement of the teams involved. The support and trust of Sonangol, our concession holder and partner, also made an invaluable contribution to our efficiency” says Yves-Louis Darricarrère, President Exploration & Production at Total. “Pazflor required a development effort on the same scale as the field. Paving a way with new technologies, the project showcases Total’s expertise in highly complex environments. The project facilities have been designed and thoroughly tested in accordance with the strictest health, safety and environmental standards. This is another step in the ongoing saga of our deep offshore feats, begun right here in Angola. Deepwater developments are a core driver of our future production growth.”

 

Pazflor comprises a vast subsea gathering network, the most complex ever built in Angola: 180 kilometres of lines tying in 49 subsea wells, 10,000 metric tons of subsea equipment and the giant Pazflor floating production, storage and offloading (FPSO) vessel. Held in position by 16 subsea mooring connectors, with its 325 metres long, 62 metres wide and a weight of more than 120,000 metric tons, the FPSO is the largest in the world. It can store up to 1.9 million barrels of oil that is then exported to tankers via an offloading buoy. The associated gas is reinjected into the reservoir, but could also be exported to the Angola LNG plant once the latter becomes operational.

 

A key technical challenge was producing two very different grades of oil from four separate reservoirs. Producing the heavy, viscous oil from the three Miocene reservoirs, which account for two-thirds of the reserves, and the related flow assurance constraints, represented a major challenge. The gas has to be separated from the liquids on the seabed so that the viscous liquids can then be pumped to the surface. The design and installation of subsea gas-liquid separation units and pumps are a world first on this scale. The pumps were purpose designed and tested for Pazflor.

  


  

Total’s wholly owned subsidiary Total E&P Angola operates Block 17, with a 40% interest, while Sonangol is the concession holder. The other partners are Statoil ASA (23.3%), Esso Exploration Angola (Block 17) Limited (20%) and BP Exploration (Angola) Ltd (16.67%).

 

Total Exploration & Production in Angola

 

Total has been present in Angola since 1953. In 2010, the Group’s operated production in Angola averaged 460,000 barrels of oil equivalent per day (boe/d) and its SEC* equity production amounted to 163,000 boe/d. Most of this production comes from blocks 17, 0 and 14.

 

 

TOTAL

2, place Jean Millier

La Défense 6

92 400 Courbevoie France

Fax: + 33 (0) 1 47 44 68 21

 

Isabelle DESMET

Tel.: + 33 (0) 1 47 44 37 76

 

Charles-Etienne LEBATARD

Tel.: + 33 (0) 1 47 44 45 91

 

Michaël CROCHET-VOUREY

Tel.: + 33 (0) 1 47 44 81 33

 

Sandra DANTE

Tel.: + 33 (0) 1 47 44 46 07

 

Hortense OURY

Tel.: + 33 (0) 1 47 44 23 34

 

Florent SEGURA

Tel.: + 33 (0) 1 47 44 31 38

 

Phénélope SEMAVOINE

Tel.: + 33 (0) 1 47 44 76 29

 

Frédéric TEXIER

Tel.: + 33 (0) 1 47 44 38 16

 

TOTAL S.A.

Capital 5.896.359.120 euros

542 051 180 R.C.S. Nanterre

 

www.total.com

  

Total’s main asset in Angola is deepwater Block 17, which it operates with a 40% interest. The deep offshore block contains four major hubs: in addition to Pazflor, they are Girassol-Rosa and Dalia, which are currently in production, and CLOV (Cravo, Lirio, Orquidea and Violeta), whose development was recently launched. The Pazflor start-up will make Total the leading operator in Angola.

 

The Group also operates the ultra-deepwater Block 32, in which it holds a 30% stake. Twelve discoveries have confirmed the block’s potential for oil production, and conceptual development studies are underway on a first production area in the central southeastern sector of the block.

 

In addition, the Angola LNG project is building a liquefaction plant near Soyo to bring the country’s natural gas reserves to market. Total has a 13.6% interest in the project. The plant is under construction and will be supplied with associated gas from fields on blocks 0, 14, 15, 17 and 18. It is expected to come on stream in 2012.

 

*SEC: U.S. Securities and Exchange Commission.

 

*******

 

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Group is also a first rank player in chemicals. Its 93,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, new energies, trading, and chemicals. Total is working to help satisfy the global demand for energy, both today and tomorrow. www.total.com

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