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
November 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 AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 third quarter of 2011 and nine months ended September 30, 2011, and a description of certain recent developments relating to its business, as well as a capitalization table as of September 30, 2011, and a ratio of earnings to fixed charges for the nine months ended September 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 Nine Months Ended September 30, 2011 |
EX-99.2: Recent Developments |
EX-99.3: Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
EX-99.4: Computation of Ratio of Earnings to Fixed Charges |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TOTAL S.A. | ||||||
Date: November 2, 2011 |
By: |
/S/ JEROME SCHMITT | ||||
Name: |
Jérôme SCHMITT | |||||
Title: |
Treasurer |
Exhibit 99.1 |
Results for the Three Months and Nine Months Ended September 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 |
Exhibit 99.1
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 third quarter of 2011 and nine months ended September 30, 2011, has been derived from TOTALs unaudited consolidated financial statements for the third quarter of 2011 and nine months ended September 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* |
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros except earnings per share and number of shares |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
46,163 | 45,009 | 40,180 | +15 | % | Sales |
137,201 | 119,112 | +15 | % | |||||||||||||||||||
Adjusted net operating income from |
||||||||||||||||||||||||||||
2,323 | 2,457 | 2,123 | +9 | % | Upstream |
7,629 | 6,297 | +21 | % | |||||||||||||||||||
388 | 197 | 264 | +47 | % | Downstream |
861 | 902 | -5 | % | |||||||||||||||||||
239 | 247 | 256 | -7 | % | Chemicals |
724 | 687 | +5 | % | |||||||||||||||||||
1.47 | 1.21 | 1.26 | +17 | % | Fully-diluted earnings per share (euros) |
4.43 | 3.81 | +16 | % | |||||||||||||||||||
2,261.0 | 2,255.5 | 2,244.9 | +1 | % | Fully-diluted weighted-average shares (millions) |
2,254.9 | 2,243.3 | +1 | % | |||||||||||||||||||
3,314 | 2,726 | 2,827 | +17 | % | Net income (Group share) |
9,986 | 8,541 | +17 | % | |||||||||||||||||||
3,921 | 7,570 | 4,092 | -4 | % | Investments ** |
17,174 | 11,247 | +53 | % | |||||||||||||||||||
5,082 | 1,338 | 1,074 | x5 | Divestments |
7,083 | 2,972 | x2 | |||||||||||||||||||||
(1,161 | ) | 6,232 | 3,018 | n/a | Net investments |
10,091 | 8,275 | +22 | % | |||||||||||||||||||
5,964 | 5,064 | 4,904 | +22 | % | Cash flow from operations |
16,742 | 15,106 | +11 | % |
* |
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. |
|
Third quarter 2011 results |
> Sales
In the third quarter 2011, the Brent price averaged 113.4 $/b, an increase of 47% compared to the third quarter 2010, but a decrease of 3% compared to the second quarter 2011. The European refining margin indicator (ERMI) averaged 13.4 $/t, a decrease of 18% compared to the third quarter 2010 and the second quarter 2011.
The euro-dollar exchange rate averaged 1.41 $/ in the third quarter 2011, 1.29 $/ in the third quarter 2010 and 1.44 $/ in the second quarter 2011.
In this environment, sales were 46,163 million in the third quarter 2011, an increase of 15% compared to 40,180 million in the third quarter 2010.
1
> Net income (Group share)
Reported net income (Group share) in the third quarter 2011 increased by 17% to 3,314 million from 2,827 million in the third quarter 2010, mainly due to the impact of the increase in 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 87 million in the third quarter 2011 and a negative impact of 48 million in the third 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 10 million in the third quarter 2011. Special items had a positive impact on net income (Group share) of 610 million in the third quarter 2011, comprised essentially of gains on the sales of the Groups interests in CEPSA and the Ocensa pipeline in Colombia, partially offset primarily by asset impairments. Special items had a positive impact of 400 million in the third quarter 2010.
Fully-diluted earnings per share, based on 2,261.0 million fully-diluted weighted-average shares, was 1.47 in the third quarter 2011 compared to 1.26 in the third quarter 2010, an increase of 17%.
> Investments divestments1
Investments, excluding acquisitions of 445 million and including the change in non-current loans of 93 million, were 3.3 billion in the third quarter 2011 compared to 3.0 billion in the third quarter 2010.
Acquisitions were 445 million in the third quarter 2011, including essentially the acquisition of an additional 25% interest in the Tempa Rossa project in Italy and 40% interest in exploration blocks in Kenya.
Asset sales in the third quarter 2011 were 4,955 million, comprised essentially of the sale of the Groups 48.83% interest in CEPSA, part of the Specialty Chemicals resins activities, a 10% interest in the Ocensa pipeline in Colombia and the sale of Sanofi shares. Asset sales in the third quarter 2010 were 987 million, comprised essentially of the sale of the Valhall and Hod fields.
Net investments2 were negative 1.2 billion in the third quarter 2011 compared to positive 3.0 billion in the third quarter 2010.
> Cash flow
Cash flow from operations was 5,964 million in the third quarter 2011 compared to 4,904 million in the third quarter 2010, an increase of 22% due mainly to the increase in net income and the favorable change in working capital. 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 7,125 million in the third quarter 2011 compared to 1,886 million in the third quarter 2010, reflecting essentially the higher cash flow from operations and level of asset sales in the third quarter 2011.
|
Results for the first nine months of 2011 |
> Sales
Compared to the first nine months of 2010, the oil market environment for the first nine months of 2011 was marked by a 45% increase in the average Brent price to 111.9 $/b and the average price of gas increased by 29% to 6.44 $/Mbtu. The European refining margin indicator (ERMI) decreased by 30% to 18.1 $/t.
The average euro-dollar exchange rate was 1.41 $/ compared to 1.31 $/ in the first nine months of 2010.
In this environment, sales in the first nine months of 2011 were 137,201 million, an increase of 15% compared to 119,112 million in the first nine months of 2010.
1 |
Detail shown on page 12 of this exhibit. |
2 |
Net investments = investments including acquisitions and changes in non-current loans asset sales. |
3 |
Net cash flow = cash flow from operationsnet investments. |
2
> Net income (Group share)
Reported net income (Group share) in the first nine months of 2011 increased by 17% to 9,986 million from 8,541 million in the first nine months of 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 785 million in the first nine months of 2011 and a positive impact of 465 million in the first nine months of 2010, in each case due to the increase in prices of oil and oil products. Changes in fair value had a positive impact on net income (Group share) of 12 million in the first nine months of 2011. Special items had a positive impact on net income (Group share) of 490 million in the first nine months of 2011 and a positive impact of 425 million in the first nine months of 2010. In the first nine months of 2010, the Groups share of adjustment items related to Sanofi had a negative impact on net income (Group share) of 81 million.
As of September 30, 2011, there were 2,263.4 million fully-diluted shares compared to 2,246.9 on September 30, 2010.
Fully-diluted earnings per share, based on 2,254.9 million weighted-average shares, was 4.43 in the first nine months of 2011, an increase of 16% compared to 3.81 in the same period of 2010.
> Investments divestments4
Investments, excluding acquisitions and including changes in non-current loans, were in line with the budget at 9.6 billion in the first nine months of 2011 compared to 8.4 billion in the first nine months of 2010.
Acquisitions were 7.0 billion in the first nine months of 2011, comprised essentially of the acquisition of interests in Fort Hills and Voyageur in Canada, 12% of Novatek, an additional 25% interest in Tempa Rossa in Italy and 60% of SunPower.
Asset sales in the first nine months of 2011 were 6.5 billion, comprised essentially of sales of the Groups interests in CEPSA and its E&P Cameroon subsidiary, sales of Sanofi shares, interests in the Joslyn project in Canada, in the Ocensa pipeline in Colombia and part of the Specialty Chemicals resins activities.
Net investments were 10.1 billion in the first nine months of 2011, an increase of 22% compared to 8.3 billion in the first nine months of 2010.
> Cash flow
Cash flow from operations was 16,742 million in the first nine months of 2011, an increase of 11% compared to the first nine months of 2010, essentially due to the increase in net income and more favorable changes in working capital than in 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 6,651 million in the first nine months of 2011 compared to 6,831 million in the first nine months of 2010.
The net-debt-to-equity ratio was 15.2% on September 30, 2011, compared to 24.3% on June 30, 2011, and 18.2% on September 30, 20105.
|
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.
4 |
Detail shown on page 12 of this exhibit. |
5 |
Detail shown on page 12 of this exhibit. |
3
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).
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 23-30, 33-35 and 42-47 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*
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
9M11 | 9M10 | 9M11 vs 9M10 |
||||||||||||||||||||||
113.4 | 117.0 | 76.9 | +47 | % | Brent ($/b) |
111.9 | 77.1 | +45 | % | |||||||||||||||||||
106.8 | 110.6 | 72.8 | +47 | % | Average liquids price ($/b) |
105.3 | 74.0 | +42 | % | |||||||||||||||||||
6.56 | 6.60 | 5.13 | +28 | % | Average gas price ($/Mbtu) |
6.44 | 5.00 | +29 | % | |||||||||||||||||||
75.3 | 76.9 | 54.9 | +37 | % | Average hydrocarbons price ($/boe) |
74.5 | 55.1 | +35 | % |
* |
Consolidated subsidiaries, excluding fixed margin and buy-back contracts. |
> Production
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Hydrocarbon production |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
2,319 | 2,311 | 2,340 | -1 | % | Combined production (kboe/d) |
2,333 | 2,375 | -2 | % | |||||||||||||||||||
1,176 | 1,197 | 1,325 | -11 | % | Liquids (kb/d) |
1,222 | 1,341 | -9 | % | |||||||||||||||||||
6,228 | 6,077 | 5,529 | +13 | % | Gas (Mcf/d) |
6,063 | 5,635 | +8 | % |
4
Hydrocarbon production was 2,319 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2011, a decrease of 0.9% compared to the same quarter last year, essentially as a result of:
|
-1.5% for normal decline, net of production ramp-ups on new projects and lower turnarounds; |
|
+4% for changes in the portfolio, integrating the net share of Novatek production and impact of the sale of interests in CEPSA; |
|
+1% for the end of OPEC reductions; |
|
-2.5% for security conditions in Libya; and |
|
-2% for the price effect6. |
In the first nine months of 2011, hydrocarbon production was 2,333 kboe/d, a decrease of 1.8% compared to the same period last year, essentially as a result of:
|
-1.5% for normal decline, net of production ramp-ups on new projects; |
|
+2.5% for changes in the portfolio, integrating the net share of Novatek production and impact of the sale of interests in CEPSA; |
|
+1% for the end of OPEC reductions; |
|
-2% for security conditions in Libya; and |
|
-2% for the price effect. |
> Results
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
5,272 | 5,166 | 4,410 | +20 | % | Non-Group sales |
16,582 | 13,525 | +23 | % | |||||||||||||||||||
5,119 | 5,335 | 4,175 | +23 | % | Operating income |
16,359 | 12,943 | +26 | % | |||||||||||||||||||
89 | 55 | 15 | x5.9 | Adjustments affecting operating income |
60 | 15 | x4 | |||||||||||||||||||||
5,208 | 5,390 | 4,190 | +24 | % | Adjusted operating income* |
16,419 | 12,958 | +27 | % | |||||||||||||||||||
2,323 | 2,457 | 2,123 | +9 | % | Adjusted net operating income* |
7,629 | 6,297 | +21 | % | |||||||||||||||||||
433 | 366 | 335 | +29 | % | Includes income from equity affiliates |
1,173 | 941 | +25 | % | |||||||||||||||||||
3,289 | 6,868 | 3,400 | -3 | % | Investments |
15,389 | 9,266 | +66 | % | |||||||||||||||||||
953 | 921 | 1,035 | -8 | % | Divestments |
2,209 | 1,296 | +70 | % | |||||||||||||||||||
3,158 | 5,605 | 2,831 | +12 | % | Cash flow from operating activities |
13,406 | 11,665 | +15 | % |
* |
Detail of adjustment items shown in business segment information starting on page 23 and on page 35 of this exhibit. |
Adjusted net operating income from the Upstream segment was 2,323 million in the third quarter 2011 compared to 2,123 million in the third quarter 2010, an increase of 9%, reflecting mainly the impact of higher 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 317 million in the third quarter 2011, consisting essentially of the exclusion of gains on the sales of the Groups interests in CEPSA and part of its interest in the Ocensa pipeline in Colombia, and a negative impact of 261 million in the third quarter 2010, consisting essentially of the exclusion of gains on the sale of the Groups interests in the Valhall and Hod fields partially offset by impairment charges.
The effective tax rate for the Upstream segment was 63.9% compared to 59.5% in the third quarter 2010, essentially due to higher hydrocarbon prices, mix effects and an increase in UK petroleum taxes.
Adjusted net operating income from the Upstream segment in the first nine months of 2011 was 7,629 million compared to 6,297 million for the same period last year, an increase of 21%, essentially due to the impact of higher hydrocarbon prices.
The return on average capital employed (ROACE7) for the Upstream segment was 21% for the twelve months ended September 30, 2011, stable compared to the twelve months ended June 30, 2011, and to the full year 2010. The annualized third quarter 2011 ROACE for the Upstream segment was 19%.
6 |
The price effect refers to the impact of changing hydrocarbon prices on entitlement volumes. |
7 |
Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 13 of this exhibit. |
5
Downstream
> Refinery throughput and utilization rates*
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
1,922 | 1,855 | 2,068 | -7 | % | Total refinery throughput (kb/d) |
1,930 | 2,067 | -7 | % | |||||||||||||||||||
752 | 692 | 773 | -3 | % | France |
731 | 746 | -2 | % | |||||||||||||||||||
904 | 877 | 1,038 | -13 | % | Rest of Europe |
941 | 1,066 | -12 | % | |||||||||||||||||||
266 | 286 | 257 | +4 | % | Rest of world |
258 | 255 | +1 | % | |||||||||||||||||||
Utilization rates** |
||||||||||||||||||||||||||||
77 | % | 75 | % | 74 | % | Based on crude only |
77 | % | 75 | % | ||||||||||||||||||
81 | % | 79 | % | 80 | % | Based on crude and other feedstock |
82 | % | 80 | % |
* |
Includes share of CEPSA through July 31, 2011, and, starting October 2010, of TotalErg. |
** |
Based on distillation capacity at the beginning of the year. |
In the third quarter 2011, refinery throughput decreased by 7% compared to the third quarter 2010 and increased by 4% compared to the second quarter 2011. The decrease compared to the third quarter 2010 was mainly due to the sale of interests in CEPSA and to the higher level of turnarounds (Antwerp, Port Arthur) than in the previous year.
In the first nine months of 2011, refinery throughput decreased by 7% compared to the same period last year, reflecting essentially a higher level of turnarounds in 2011 and work on the Lindsey refinery.
> Results
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros (except ERMI refining margins) |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
13.4 | 16.3 | 16.4 | -18 | % | European refining margin indicator - ERMI ($/t) |
18.1 | 25.7 | -30 | % | |||||||||||||||||||
36,220 | 34,551 | 31,307 | +16 | % | Non-Group sales |
105,540 | 92,305 | +14 | % | |||||||||||||||||||
141 | 93 | 166 | -13 | % | Operating income |
1,746 | 1,491 | +17 | % | |||||||||||||||||||
341 | 135 | 71 | x4.8 | Adjustments affecting operating income |
(750 | ) | (514 | ) | n/a | |||||||||||||||||||
482 | 228 | 237 | x2 | Adjusted operating income* |
996 | 977 | +2 | % | ||||||||||||||||||||
388 | 197 | 264 | +47 | % | Adjusted net operating income* |
861 | 902 | -5 | % | |||||||||||||||||||
(2 | ) | 23 | 60 | n/a | Includes income from equity affiliates |
45 | 118 | -62 | % | |||||||||||||||||||
440 | 462 | 568 | -23 | % | Investments |
1,166 | 1,586 | -26 | % | |||||||||||||||||||
2,691 | 28 | 28 | x96 | Divestments |
2,742 | 66 | x42 | |||||||||||||||||||||
1,775 | 7 | 900 | +97 | % | Cash flow from operating activities |
2,940 | 2,396 | +23 | % |
* |
Detail of adjustment items shown in business segment information starting on page 23 and on page 35 of this exhibit. |
The European refining margin indicator (ERMI) averaged 13.4 $/t in the third quarter 2011, a decrease of 18% compared to the third quarter 2010. In the first nine months of 2011, the ERMI averaged 18.1 $/t, a decrease of 30% compared to the same period in 2010.
Adjusted net operating income from the Downstream segment was 388 million in the third quarter 2011, an increase of 47% compared to the third quarter 2010 despite an environment that remained difficult, due in particular to improved operational performance in refining in the third quarter 2011, as well as more favorable conditions for supply optimization.
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 83 million in the third quarter 2011 and a positive impact of 24 million in the third quarter 2010. The exclusion of special items had a negative impact on Downstream adjusted net operating income of 125 million in the third quarter 2011, consisting essentially of the exclusion of gains on the sale of the Groups interests in CEPSA net of certain restructuring and asset impairment charges, and no impact in the third quarter 2010.
In the first nine months of 2011, adjusted net operating income from the Downstream segment was 861 million, a decrease of 5% compared to the same period last year, essentially due to the decrease of refining margins in Europe.
6
The ROACE for the Downstream segment was 8% for the twelve months ended September 30, 2011, compared to 6% for the twelve months ended June 30, 2011, and 8% for the full year 2010. The annualized third quarter 2011 ROACE for the Downstream segment was 11%.
Chemicals
3Q11 |
2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
4,669 | 5,291 | 4,460 | +5 | % | Non-Group sales |
15,065 | 13,272 | +14 | % | |||||||||||||||||||
3,096 | 3,400 | 2,748 | +13 | % | Base chemicals |
9,815 | 8,074 | +22 | % | |||||||||||||||||||
1,572 | 1,891 | 1,710 | -8 | % | Specialties |
5,249 | 5,185 | +1 | % | |||||||||||||||||||
169 | 263 | 268 | -37 | % | Operating income |
824 | 768 | +7 | % | |||||||||||||||||||
22 | 15 | 33 | -13 | % | Adjustments affecting operating income |
(93 | ) | (8 | ) | n/a | ||||||||||||||||||
191 | 278 | 301 | -37 | % | Adjusted operating income* |
731 | 760 | -4 | % | |||||||||||||||||||
239 | 247 | 256 | -7 | % | Adjusted net operating income* |
724 | 687 | +5 | % | |||||||||||||||||||
137 | 132 | 133 | +3 | % | Base chemicals |
388 | 326 | +19 | % | |||||||||||||||||||
109 | 118 | 125 | -13 | % | Specialties |
348 | 366 | -5 | % | |||||||||||||||||||
168 | 209 | 111 | +51 | % | Investments |
548 | 349 | +57 | % | |||||||||||||||||||
1,094 | 12 | (10 | ) | n/a | Divestments |
1,120 | 324 | x3 | ||||||||||||||||||||
359 | 138 | 215 | +67 | % | Cash flow from operating activities |
353 | 602 | -41 | % |
* |
Detail of adjustment items shown in business segment information starting on page 23 and on page 35 of this exhibit. |
In the third quarter 2011, the environment remained globally favorable for specialty chemicals but deteriorated for petrochemicals due to softer demand.
Sales for the Chemicals segment were 4.7 billion in the third quarter 2011, an increase of 5% compared to the third quarter 2010.
The adjusted net operating income for the Chemicals segment was 239 million in the third quarter 2011, a decrease of 7% compared to the third quarter 2010. The impact of lower petrochemical margins in Europe and the United States was offset mainly by stronger results from Qatar and South Korea. The slight decrease in specialty chemical results was mainly due to the sale of part of the resins activities at the beginning of the quarter.
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 7 million in the third quarter 2011 and a positive impact of 30 million in the third quarter 2010. The exclusion of special items had a negative impact on the Chemicals segments adjusted net operating income of 211 million in the third quarter of 2011, consisting essentially of the exclusion of gains on the sales of the Groups interests in CEPSA and part of its resins activities, and a negative impact of 3 million in the third quarter 2010.
In the first nine months of 2011, adjusted net operating income for the Chemicals segment was 724 million, an increase of 5% compared to 687 million for the same period last year.
The ROACE for the Chemicals segment was 12% for the twelve months ended September 30, 2011, stable compared to the twelve months ended June 30, 2011, and to the full year 2010. The annualized third quarter 2011 ROACE for the Chemicals segment was 13%.
|
Summary and outlook |
The net-debt-to-equity ratio as of September 30, 2011, was 15.2% compared to 24.3% at the end of the second quarter 2011. Supported by its strong results, the Groups net-debt-to-equity ratio is expected to be in the lower end of its 20-30% range at year-end 2011.
Pursuant to the October 27, 2011 decision of the Board of Directors, TOTAL will pay the third quarter interim dividend of 0.57 per share on March 22, 20128.
8 |
Ex-dividend date will be March 19, 2012. |
7
In the fourth quarter 2011, the production ramp-up from the Pazflor field in Angola and the progressive recovery of production in Libya are expected to be partially offset by turnarounds at Snovhit and Yemen LNG.
Pending partner approvals, TOTAL expects to launch in the coming months a series of major new projects, including Ofon 2 and Egina in Nigeria, Ichthys in Australia, and Tempa Rossa in Italy. Launching the Shtokman project in Russia remains contingent on an improvement in the fiscal regime and the agreement of the partners.
TOTAL is in the notification / consultation process with labor representatives for a project to reorganize the Downstream and Chemicals segments that should allow the company to put in place a dynamic and more competitive organization at the start of 2012.
The Group begins the fourth quarter confident in an environment where conditions remains favorable for the Upstream and refining margins have slightly improved.
Forward-looking statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTALs future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTALs ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
|
material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; |
|
changes in currency exchange rates and currency devaluations; |
|
the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL; |
|
uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities; |
|
uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals; |
|
changes in the current capital expenditure plans of TOTAL; |
|
the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies; |
|
the financial resources of competitors; |
|
changes in laws and regulations, including tax and environmental laws and industrial safety regulations; |
|
the quality of future opportunities that may be presented to or pursued by TOTAL; |
|
the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; |
|
the ability to obtain governmental or regulatory approvals; |
|
the ability to respond to challenges in international markets, including political or economic conditions, 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; |
8
|
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.
9
Operating information by segment
Third quarter and first nine months of 2011
|
Upstream |
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Combined liquids and gas production by region (kboe/d) |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
474 | 475 | 521 | -9 | % | Europe |
510 | 581 | -12 | % | |||||||||||||||||||
623 | 628 | 765 | -19 | % | Africa |
647 | 754 | -14 | % | |||||||||||||||||||
581 | 571 | 534 | +9 | % | Middle East |
578 | 522 | +11 | % | |||||||||||||||||||
68 | 66 | 65 | +5 | % | North America |
67 | 65 | +3 | % | |||||||||||||||||||
194 | 190 | 179 | +8 | % | South America |
190 | 178 | +7 | % | |||||||||||||||||||
232 | 241 | 253 | -8 | % | Asia-Pacific |
238 | 251 | -5 | % | |||||||||||||||||||
147 | 140 | 23 | x6 | CIS |
103 | 24 | x4 | |||||||||||||||||||||
2,319 | 2,311 | 2,340 | -1 | % | Total production |
2,333 | 2,375 | -2 | % | |||||||||||||||||||
600 | 605 | 455 | +32 | % | Includes equity and non-consolidated affiliates |
569 | 435 | +31 | % |
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Liquids production by region (kb/d) |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
234 | 240 | 251 | -7 | % | Europe |
246 | 270 | -9 | % | |||||||||||||||||||
481 | 484 | 617 | -22 | % | Africa |
505 | 616 | -18 | % | |||||||||||||||||||
316 | 321 | 313 | +1 | % | Middle East |
321 | 308 | +4 | % | |||||||||||||||||||
28 | 26 | 29 | -3 | % | North America |
29 | 30 | -3 | % | |||||||||||||||||||
67 | 73 | 72 | -7 | % | South America |
74 | 73 | +1 | % | |||||||||||||||||||
26 | 28 | 30 | -13 | % | Asia-Pacific |
27 | 31 | -13 | % | |||||||||||||||||||
24 | 25 | 13 | +85 | % | CIS |
20 | 13 | +54 | % | |||||||||||||||||||
1,176 | 1,197 | 1,325 | -11 | % | Total production |
1,222 | 1,341 | -9 | % | |||||||||||||||||||
312 | 331 | 304 | +3 | % | Includes equity and non-consolidated affiliates |
323 | 295 | +9 | % |
10
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Gas production by region (Mcf/d) |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
1,299 | 1,284 | 1,464 | -11 | % | Europe |
1,441 | 1,696 | -15 | % | |||||||||||||||||||
720 | 734 | 758 | -5 | % | Africa |
724 | 703 | +3 | % | |||||||||||||||||||
1,430 | 1,355 | 1,207 | +18 | % | Middle East |
1,392 | 1,164 | +20 | % | |||||||||||||||||||
228 | 226 | 203 | +12 | % | North America |
219 | 194 | +13 | % | |||||||||||||||||||
707 | 650 | 593 | +19 | % | South America |
643 | 581 | +11 | % | |||||||||||||||||||
1,173 | 1,209 | 1,249 | -6 | % | Asia-Pacific |
1,194 | 1,239 | -4 | % | |||||||||||||||||||
671 | 619 | 55 | x12 | CIS |
450 | 58 | x8 | |||||||||||||||||||||
6,228 | 6,077 | 5,529 | +13 | % | Total production |
6,063 | 5,635 | +8 | % | |||||||||||||||||||
1,560 | 1,478 | 820 | +90 | % | Includes equity and non-consolidated affiliates |
1,331 | 756 | +76 | % | |||||||||||||||||||
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Liquefied natural gas |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
3.36 | 3.34 | 3.35 | | LNG sales* (Mt) |
10.08 | 9.20 | +10 | % |
* |
Sales, Group share, excluding trading; 2010 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2010 SEC coefficient. |
|
Downstream |
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
Refined products sales by region (kb/d)* |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
1,888 | 1,855 | 1,920 | -2 | % | Europe |
1,903 | 1,917 | -1 | % | |||||||||||||||||||
307 | 310 | 286 | +7 | % | Africa |
304 | 290 | +5 | % | |||||||||||||||||||
101 | 104 | 102 | -1 | % | Americas |
102 | 121 | -16 | % | |||||||||||||||||||
174 | 169 | 161 | +8 | % | Rest of world |
170 | 157 | +8 | % | |||||||||||||||||||
2,470 | 2,438 | 2,469 | | Total consolidated sales |
2,479 | 2,485 | | |||||||||||||||||||||
1,270 | 1,341 | 1,300 | -2 | % | Trading |
1,266 | 1,272 | | ||||||||||||||||||||
3,740 | 3,779 | 3,769 | -1 | % | Total refined product sales |
3,745 | 3,757 | |
* |
Includes trading, share of CEPSA through July 31, 2011, and, starting October 1, 2010, of TotalErg. |
11
Investments Divestments
3Q11 | 2Q11 | 3Q10 | 3Q11 vs 3Q10 |
in millions of euros |
9M11 | 9M10 | 9M11 vs 9M10 |
|||||||||||||||||||||
3,349 | 3,467 | 2,982 | +12 | % | Investments excluding acquisitions* |
9,603 | 8,440 | +14 | % | |||||||||||||||||||
287 | 242 | 160 | +79 | % | Capitalized exploration |
746 | 580 | +29 | % | |||||||||||||||||||
93 | 210 | 151 | -38 | % | Change in non-current loans** |
95 | 396 | -76 | % | |||||||||||||||||||
445 | 4,008 | 1,023 | -57 | % | Acquisitions |
6,982 | 2,545 | x3 | ||||||||||||||||||||
3,794 | 7,475 | 4,005 | -5 | % | Investments including acquisitions* |
16,585 | 10,985 | +51 | % | |||||||||||||||||||
4,955 | 1,243 | 987 | x5 | Asset sales |
6,494 | 2,710 | x2 | |||||||||||||||||||||
(1,161 | ) | 6,232 | 3,018 | na | Net investments |
10,091 | 8,275 | +22 | % |
* |
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 |
9/30/2011 | 6/30/2011 | 9/30/2010 | |||||||||
Current borrowings |
10,406 | 12,289 | 10,201 | |||||||||
Net current financial assets |
(923 | ) | (2,737 | ) | (1,351 | ) | ||||||
Non-current financial debt |
22,415 | 20,410 | 21,566 | |||||||||
Hedging instruments of non-current debt |
(2,012 | ) | (1,756 | ) | (1,760 | ) | ||||||
Cash and cash equivalents |
(19,942 | ) | (13,387 | ) | (18,247 | ) | ||||||
Net debt |
9,944 | 14,819 | 10,409 | |||||||||
Shareholders equity |
65,290 | 61,371 | 57,583 | |||||||||
Estimated dividend payable |
(1,254 | ) | (1,248 | ) | (1,273 | ) | ||||||
Minority interests |
1,467 | 934 | 838 | |||||||||
Equity |
65,503 | 61,057 | 57,148 | |||||||||
Net-debt-to-equity ratio |
15.2 | % | 24.3 | % | 18.2 | % |
12
Return on average capital employed
|
Twelve months ended September 30, 2011 |
in millions of euros |
Upstream | Downstream | Chemicals | |||||||||
Adjusted net operating income |
9,929 | 1,127 | 894 | |||||||||
Capital employed at 9/30/2010* |
41,629 | 15,379 | 7,232 | |||||||||
Capital employed at 9/30/2011* |
51,851 | 12,691 | 7,194 | |||||||||
ROACE |
21.2 | % | 8.0 | % | 12.4 | % |
* |
At replacement cost (excluding after-tax inventory effect). |
|
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 September 30, 2010 |
in millions of euros |
Upstream | Downstream | Chemicals | |||||||||
Adjusted net operating income |
8,245 | 953 | 759 | |||||||||
Capital employed at 9/30/2009* |
35,514 | 13,513 | 6,845 | |||||||||
Capital employed at 9/30/2010* |
41,629 | 15,379 | 7,232 | |||||||||
ROACE |
21.4 | % | 6.6 | % | 10.8 | % |
* |
At replacement cost (excluding after-tax inventory effect). |
13
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)*** |
||||||||||||||||
Third quarter 2011 |
1.41 | 13.4 | 113.4 | 106.8 | 6.56 | |||||||||||||||
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 |
* |
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.
14
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
3rd
quarter 2011 |
2nd
quarter 2011 |
3rd
quarter 2010 |
|||||||||
Sales |
46,163 | 45,009 | 40,180 | |||||||||
Excise taxes |
(4,638 | ) | (4,544 | ) | (4,952 | ) | ||||||
Revenues from sales |
41,525 | 40,465 | 35,228 | |||||||||
Purchases, net of inventory variation |
(29,018 | ) | (28,386 | ) | (23,918 | ) | ||||||
Other operating expenses |
(5,061 | ) | (4,804 | ) | (4,841 | ) | ||||||
Exploration costs |
(242 | ) | (179 | ) | (160 | ) | ||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,873 | ) | (1,531 | ) | (1,805 | ) | ||||||
Other income |
1,334 | 246 | 540 | |||||||||
Other expense |
(212 | ) | (138 | ) | (61 | ) | ||||||
Financial interest on debt |
(262 | ) | (159 | ) | (126 | ) | ||||||
Financial income from marketable securities & cash equivalents |
114 | 55 | 40 | |||||||||
Cost of net debt |
(148 | ) | (104 | ) | (86 | ) | ||||||
Other financial income |
108 | 335 | 111 | |||||||||
Other financial expense |
(115 | ) | (104 | ) | (103 | ) | ||||||
Equity in net income (loss) of affiliates |
497 | 444 | 401 | |||||||||
Income taxes |
(3,448 | ) | (3,432 | ) | (2,426 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,347 | 2,812 | 2,880 | |||||||||
|
|
|
|
|
|
|||||||
Group share |
3,314 | 2,726 | 2,827 | |||||||||
Minority interests |
33 | 86 | 53 | |||||||||
|
|
|
|
|
|
|||||||
Earnings per share () |
1.47 | 1.21 | 1.27 | |||||||||
|
|
|
|
|
|
|||||||
Fully-diluted earnings per share () |
1.47 | 1.21 | 1.26 | |||||||||
|
|
|
|
|
|
(a) Except for per share amounts.
15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
3rd
quarter 2011 |
2nd
quarter 2011 |
3rd
quarter 2010 |
|||||||||
Consolidated net income |
3,347 | 2,812 | 2,880 | |||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
||||||||||||
Currency translation adjustment |
2,309 | (666 | ) | (3,527 | ) | |||||||
Available for sale financial assets |
(389 | ) | 315 | 4 | ||||||||
Cash flow hedge |
(54 | ) | (11 | ) | (38 | ) | ||||||
Share of other comprehensive income of associates, net amount |
(131 | ) | (16 | ) | (200 | ) | ||||||
Other |
(2 | ) | (4 | ) | (9 | ) | ||||||
Tax effect |
82 | (35 | ) | 13 | ||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (net amount) |
1,815 | (417 | ) | (3,757 | ) | |||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
5,162 | 2,395 | (877 | ) | ||||||||
|
|
|
|
|
|
|||||||
- Group share |
5,077 | 2,326 | (865 | ) | ||||||||
- Minority interests |
85 | 69 | (12 | ) |
16
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M) (a) |
9 months 2011 |
9 months 2010 |
||||||
Sales |
137,201 | 119,112 | ||||||
Excise taxes |
(13,609 | ) | (14,396 | ) | ||||
Revenues from sales |
123,592 | 104,716 | ||||||
Purchases, net of inventory variation |
(84,659 | ) | (69,548 | ) | ||||
Other operating expenses |
(14,567 | ) | (14,386 | ) | ||||
Exploration costs |
(680 | ) | (667 | ) | ||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(5,090 | ) | (5,261 | ) | ||||
Other income |
1,665 | 814 | ||||||
Other expense |
(409 | ) | (387 | ) | ||||
Financial interest on debt |
(557 | ) | (339 | ) | ||||
Financial income from marketable securities & cash equivalents |
216 | 88 | ||||||
Cost of net debt |
(341 | ) | (251 | ) | ||||
Other financial income |
518 | 324 | ||||||
Other financial expense |
(327 | ) | (293 | ) | ||||
Equity in net income (loss) of affiliates |
1,447 | 1,438 | ||||||
Income taxes |
(10,952 | ) | (7,773 | ) | ||||
|
|
|
|
|||||
Consolidated net income |
10,197 | 8,726 | ||||||
|
|
|
|
|||||
Group share |
9,986 | 8,541 | ||||||
Minority interests |
211 | 185 | ||||||
|
|
|
|
|||||
Earnings per share () |
4.45 | 3.82 | ||||||
|
|
|
|
|||||
Fully-diluted earnings per share () |
4.43 | 3.81 | ||||||
|
|
|
|
(a) Except for per share amounts.
17
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M) |
9 months 2011 |
9 months 2010 |
||||||
Consolidated net income |
10,197 | 8,726 | ||||||
|
|
|
|
|||||
Other comprehensive income |
||||||||
Currency translation adjustment |
(335 | ) | 1,469 | |||||
Available for sale financial assets |
41 | (48 | ) | |||||
Cash flow hedge |
(89 | ) | (89 | ) | ||||
Share of other comprehensive income of associates, net amount |
(234 | ) | 275 | |||||
Other |
(4 | ) | (6 | ) | ||||
Tax effect |
53 | 31 | ||||||
|
|
|
|
|||||
Total other comprehensive income (net amount) |
(568 | ) | 1,632 | |||||
|
|
|
|
|||||
Comprehensive income |
9,629 | 10,358 | ||||||
|
|
|
|
|||||
- Group share |
9,433 | 10,179 | ||||||
- Minority interests |
196 | 179 |
18
CONSOLIDATED BALANCE SHEET
TOTAL
(M) |
September 30, 2011 (unaudited) |
June 30, 2011 (unaudited) |
December 31, 2010 |
September 30, 2010 (unaudited) |
||||||||||||
ASSETS |
||||||||||||||||
Non-current assets |
||||||||||||||||
Intangible assets, net |
10,280 | 8,961 | 8,917 | 9,214 | ||||||||||||
Property, plant and equipment, net |
59,729 | 55,323 | 54,964 | 54,341 | ||||||||||||
Equity affiliates : investments and loans |
11,455 | 11,054 | 11,516 | 11,322 | ||||||||||||
Other investments |
3,767 | 5,287 | 4,590 | 4,825 | ||||||||||||
Hedging instruments of non-current financial debt |
2,012 | 1,756 | 1,870 | 1,760 | ||||||||||||
Other non-current assets |
4,248 | 3,727 | 3,655 | 3,210 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current assets |
91,491 | 86,108 | 85,512 | 84,672 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current assets |
||||||||||||||||
Inventories, net |
16,024 | 15,950 | 15,600 | 14,171 | ||||||||||||
Accounts receivable, net |
18,786 | 18,267 | 18,159 | 17,435 | ||||||||||||
Other current assets |
7,938 | 8,474 | 7,483 | 8,332 | ||||||||||||
Current financial assets |
1,172 | 3,122 | 1,205 | 1,686 | ||||||||||||
Cash and cash equivalents |
19,942 | 13,387 | 14,489 | 18,247 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
63,862 | 59,200 | 56,936 | 59,871 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Assets classified as held for sale |
1,630 | 5,211 | 1,270 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
156,983 | 150,519 | 143,718 | 144,543 | ||||||||||||
LIABILITIES & SHAREHOLDERS EQUITY |
||||||||||||||||
Shareholders equity |
||||||||||||||||
Common shares |
5,909 | 5,903 | 5,874 | 5,872 | ||||||||||||
Paid-in surplus and retained earnings |
65,862 | 64,148 | 60,538 | 58,569 | ||||||||||||
Currency translation adjustment |
(3,091 | ) | (5,177 | ) | (2,495 | ) | (3,286 | ) | ||||||||
Treasury shares |
(3,390 | ) | (3,503 | ) | (3,503 | ) | (3,572 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity-Group Share |
65,290 | 61,371 | 60,414 | 57,583 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Minority interests |
1,467 | 934 | 857 | 838 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity |
66,757 | 62,305 | 61,271 | 58,421 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||||||
Deferred income taxes |
10,601 | 9,619 | 9,947 | 9,757 | ||||||||||||
Employee benefits |
2,180 | 2,111 | 2,171 | 2,125 | ||||||||||||
Provisions and other non-current liabilities |
8,920 | 8,419 | 9,098 | 8,693 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
21,701 | 20,149 | 21,216 | 20,575 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current financial debt |
22,415 | 20,410 | 20,783 | 21,566 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current liabilities |
||||||||||||||||
Accounts payable |
18,753 | 18,395 | 18,450 | 16,191 | ||||||||||||
Other creditors and accrued liabilities |
16,361 | 16,191 | 11,989 | 17,254 | ||||||||||||
Current borrowings |
10,406 | 12,289 | 9,653 | 10,201 | ||||||||||||
Other current financial liabilities |
249 | 385 | 159 | 335 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current liabilities |
45,769 | 47,260 | 40,251 | 43,981 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities directly associated with the assets classified as held for sale |
341 | 395 | 197 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities and shareholders equity |
156,983 | 150,519 | 143,718 | 144,543 |
19
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
3rd
quarter 2011 |
2nd
quarter 2011 |
3rd
quarter 2010 |
|||||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||||||
Consolidated net income |
3,347 | 2,812 | 2,880 | |||||||||
Depreciation, depletion and amortization |
2,062 | 1,641 | 1,912 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes |
312 | 283 | 34 | |||||||||
Impact of coverage of pension benefit plans |
| | | |||||||||
(Gains) losses on sales of assets |
(1,282 | ) | (229 | ) | (445 | ) | ||||||
Undistributed affiliates equity earnings |
(34 | ) | 59 | (154 | ) | |||||||
(Increase) decrease in working capital |
1,501 | 476 | 649 | |||||||||
Other changes, net |
58 | 22 | 28 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow from operating activities |
5,964 | 5,064 | 4,904 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||||||
Intangible assets and property, plant and equipment additions |
(3,802 | ) | (3,215 | ) | (2,913 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired |
170 | (979 | ) | (856 | ) | |||||||
Investments in equity affiliates and other securities |
(69 | ) | (3,071 | ) | (85 | ) | ||||||
Increase in non-current loans |
(220 | ) | (305 | ) | (238 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenditures |
(3,921 | ) | (7,570 | ) | (4,092 | ) | ||||||
Proceeds from disposal of intangible assets and property, plant and equipment |
213 | 620 | 873 | |||||||||
Proceeds from disposal of subsidiaries, net of cash sold |
399 | 171 | (11 | ) | ||||||||
Proceeds from disposal of non-current investments |
4,343 | 452 | 125 | |||||||||
Repayment of non-current loans |
127 | 95 | 87 | |||||||||
|
|
|
|
|
|
|||||||
Total divestments |
5,082 | 1,338 | 1,074 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow used in investing activities |
1,161 | (6,232 | ) | (3,018 | ) | |||||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||||||
Issuance (repayment) of shares: |
||||||||||||
- Parent company shareholders |
77 | 354 | 3 | |||||||||
- Treasury shares |
| | | |||||||||
- Minority shareholders |
| | | |||||||||
Dividends paid: |
||||||||||||
- Parent company shareholders |
(1,283 | ) | (2,572 | ) | | |||||||
- Minority shareholders |
(35 | ) | (61 | ) | (8 | ) | ||||||
Other transactions with minority shareholders |
| 59 | | |||||||||
Net issuance (repayment) of non-current debt |
1,034 | 678 | 1,690 | |||||||||
Increase (decrease) in current borrowings |
(2,541 | ) | (200 | ) | 383 | |||||||
Increase (decrease) in current financial assets and liabilities |
1,999 | (1,123 | ) | (341 | ) | |||||||
Cash flow used in financing activities |
(749 | ) | (2,865 | ) | 1,727 | |||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and cash equivalents |
6,376 | (4,033 | ) | 3,613 | ||||||||
Effect of exchange rates |
179 | 93 | (198 | ) | ||||||||
Cash and cash equivalents at the beginning of the period |
13,387 | 17,327 | 14,832 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period |
19,942 | 13,387 | 18,247 | |||||||||
|
|
|
|
|
|
20
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M) |
9 months 2011 |
9 months 2010 |
||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||
Consolidated net income |
10,197 | 8,726 | ||||||
Depreciation, depletion and amortization |
5,591 | 5,779 | ||||||
Non-current liabilities, valuation allowances and deferred taxes |
1,160 | 328 | ||||||
Impact of coverage of pension benefit plans |
| | ||||||
(Gains) losses on sales of assets |
(1,517 | ) | (617 | ) | ||||
Undistributed affiliates equity earnings |
(157 | ) | (337 | ) | ||||
(Increase) decrease in working capital |
1,390 | 1,162 | ||||||
Other changes, net |
78 | 65 | ||||||
|
|
|
|
|||||
Cash flow from operating activities |
16,742 | 15,106 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||
Intangible assets and property, plant and equipment additions |
(12,391 | ) | (9,335 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired |
(809 | ) | (856 | ) | ||||
Investments in equity affiliates and other securities |
(3,290 | ) | (398 | ) | ||||
Increase in non-current loans |
(684 | ) | (658 | ) | ||||
|
|
|
|
|||||
Total expenditures |
(17,174 | ) | (11,247 | ) | ||||
Proceeds from disposal of intangible assets and property, plant and equipment |
839 | 996 | ||||||
Proceeds from disposal of subsidiaries, net of cash sold |
570 | 310 | ||||||
Proceeds from disposal of non-current investments |
5,085 | 1,404 | ||||||
Repayment of non-current loans |
589 | 262 | ||||||
|
|
|
|
|||||
Total divestments |
7,083 | 2,972 | ||||||
|
|
|
|
|||||
Cash flow used in investing activities |
(10,091 | ) | (8,275 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||
Issuance (repayment) of shares: |
||||||||
- Parent company shareholders |
481 | 14 | ||||||
- Treasury shares |
| 49 | ||||||
- Minority shareholders |
| | ||||||
Dividends paid: |
||||||||
- Parent company shareholders |
(3,855 | ) | (2,548 | ) | ||||
- Minority shareholders |
(97 | ) | (90 | ) | ||||
Other transactions with minority shareholders |
59 | (450 | ) | |||||
Net issuance (repayment) of non-current debt |
3,940 | 3,732 | ||||||
Increase (decrease) in current borrowings |
(2,253 | ) | 759 | |||||
Increase (decrease) in current financial assets and liabilities |
365 | (1,291 | ) | |||||
Cash flow used in financing activities |
(1,360 | ) | 175 | |||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
5,291 | 7,006 | ||||||
Effect of exchange rates |
162 | (421 | ) | |||||
Cash and cash equivalents at the beginning of the period |
14,489 | 11,662 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at the end of the period |
19,942 | 18,247 | ||||||
|
|
|
|
21
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 nine months |
| | 8,541 | | | | 8,541 | 185 | 8,726 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (155 | ) | 1,793 | | | 1,638 | (6 | ) | 1,632 | |||||||||||||||||||||||||
Comprehensive Income |
| | 8,386 | 1,793 | | | 10,179 | 179 | 10,358 | |||||||||||||||||||||||||||
Dividend |
| | (5,096 | ) | | | | (5,096 | ) | (90 | ) | (5,186 | ) | |||||||||||||||||||||||
Issuance of common shares |
408,017 | 1 | 13 | | | | 14 | | 14 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (1 | ) | | 1,270,478 | 50 | 49 | | 49 | ||||||||||||||||||||||||||
Share-based payments |
| | 97 | | | | 97 | | 97 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Other operations with minority interests |
| | (202 | ) | (10 | ) | | | (212 | ) | (238 | ) | (450 | ) | ||||||||||||||||||||||
Other items |
| | | | | | | | | |||||||||||||||||||||||||||
As of September 30, 2010 |
2,348,830,901 | 5,872 | 58,569 | (3,286 | ) | (114,136,712 | ) | (3,572 | ) | 57,583 | 838 | 58,421 | ||||||||||||||||||||||||
Net income of the fourth quarter |
| | 2,030 | | | | 2,030 | 51 | 2,081 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (61 | ) | 788 | | | 727 | 15 | 742 | ||||||||||||||||||||||||||
Comprehensive Income |
| | 1,969 | 788 | | | 2,757 | 66 | 2,823 | |||||||||||||||||||||||||||
Dividend |
| | (2 | ) | | | | (2 | ) | (62 | ) | (64 | ) | |||||||||||||||||||||||
Issuance of common shares |
810,030 | 2 | 25 | | | | 27 | | 27 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (69 | ) | | 1,649,033 | 69 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 43 | | | | 43 | | 43 | |||||||||||||||||||||||||||
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 nine months |
| | 9,986 | | | | 9,986 | 211 | 10,197 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | 45 | (598 | ) | | | (553 | ) | (15 | ) | (568 | ) | |||||||||||||||||||||||
Comprehensive Income |
| | 10,031 | (598 | ) | | | 9,433 | 196 | 9,629 | ||||||||||||||||||||||||||
Dividend |
| | (5,173 | ) | | | | (5,173 | ) | (97 | ) | (5,270 | ) | |||||||||||||||||||||||
Issuance of common shares |
14,112,010 | 35 | 446 | | | | 481 | | 481 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (113 | ) | | 2,931,034 | 113 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 124 | | | | 124 | | 124 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Other operations with minority interests |
| | | 2 | | | 2 | 57 | 59 | |||||||||||||||||||||||||||
Other items |
| | 9 | | | | 9 | 454 | 463 | |||||||||||||||||||||||||||
As of September 30, 2011 |
2,363,752,941 | 5,909 | 65,862 | (3,091 | ) | (109,556,645 | ) | (3,390 | ) | 65,290 | 1,467 | 66,757 |
(1) |
Treasury shares related to the stock option purchase plans and restricted stock grants |
22
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,272 | 36,220 | 4,669 | 2 | | 46,163 | ||||||||||||||||||
Intersegment sales |
6,571 | 1,582 | 243 | 45 | (8,441 | ) | | |||||||||||||||||
Excise taxes |
| (4,638 | ) | | | | (4,638 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,843 | 33,164 | 4,912 | 47 | (8,441 | ) | 41,525 | |||||||||||||||||
Operating expenses |
(5,443 | ) | (32,559 | ) | (4,624 | ) | (136 | ) | 8,441 | (34,321 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(1,281 | ) | (464 | ) | (119 | ) | (9 | ) | | (1,873 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,119 | 141 | 169 | (98 | ) | | 5,331 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
922 | 347 | 319 | 24 | | 1,612 | ||||||||||||||||||
Tax on net operating income |
(3,401 | ) | (58 | ) | (45 | ) | 41 | | (3,463 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,640 | 430 | 443 | (33 | ) | | 3,480 | |||||||||||||||||
Net cost of net debt |
(133 | ) | ||||||||||||||||||||||
Minority interests |
(33 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,314 | |||||||||||||||||||||||
3rd quarter 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(14 | ) | | | | (14 | ) | |||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(14 | ) | | | | (14 | ) | |||||||||||||||||
Operating expenses |
| (173 | ) | (19 | ) | | (192 | ) | ||||||||||||||||
Depreciation, depletion and amortization of |
(75 | ) | (168 | ) | (3 | ) | | (246 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(89 | ) | (341 | ) | (22 | ) | | (452 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
530 | 339 | 243 | 15 | 1,127 | |||||||||||||||||||
Tax on net operating income |
(124 | ) | 44 | (17 | ) | (71 | ) | (168 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
317 | 42 | 204 | (56 | ) | 507 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
6 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
513 |
(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 |
| (100 | ) | (12 | ) | | ||||||||||
On net operating income |
| (83 | ) | (7 | ) | |
3rd quarter 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,286 | 36,220 | 4,669 | 2 | | 46,177 | ||||||||||||||||||
Intersegment sales |
6,571 | 1,582 | 243 | 45 | (8,441 | ) | | |||||||||||||||||
Excise taxes |
| (4,638 | ) | | | | (4,638 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,857 | 33,164 | 4,912 | 47 | (8,441 | ) | 41,539 | |||||||||||||||||
Operating expenses |
(5,443 | ) | (32,386 | ) | (4,605 | ) | (136 | ) | 8,441 | (34,129 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(1,206 | ) | (296 | ) | (116 | ) | (9 | ) | | (1,627 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,208 | 482 | 191 | (98 | ) | | 5,783 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
392 | 8 | 76 | 9 | | 485 | ||||||||||||||||||
Tax on net operating income |
(3,277 | ) | (102 | ) | (28 | ) | 112 | | (3,295 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,323 | 388 | 239 | 23 | | 2,973 | ||||||||||||||||||
Net cost of net debt |
(133 | ) | ||||||||||||||||||||||
Minority interests |
(39 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
2,801 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
|
|||||||||||||||||||||||
3rd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
3,289 | 440 | 168 | 24 | 3,921 | |||||||||||||||||||
Total divestments |
953 | 2,691 | 1,094 | 344 | 5,082 | |||||||||||||||||||
Cash flow from operating activities |
3,158 | 1,775 | 359 | 672 | 5,964 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
23
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 |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,335 | 93 | 263 | (126 | ) | | 5,565 | |||||||||||||||||
Equity in net 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 |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(55 | ) | (135 | ) | (15 | ) | | (205 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and |
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 |
(1,100 | ) | (300 | ) | (122 | ) | (9 | ) | | (1,531 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,390 | 228 | 278 | (126 | ) | | 5,770 | |||||||||||||||||
Equity in net income (loss) of affiliates |
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 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
2,794 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
||||||||||||||||||||||||
2nd quarter
2011 |
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
24
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,410 | 31,307 | 4,460 | 3 | | 40,180 | ||||||||||||||||||
Intersegment sales |
5,660 | 1,149 | 243 | 44 | (7,096 | ) | | |||||||||||||||||
Excise taxes |
| (4,952 | ) | | | | (4,952 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,070 | 27,504 | 4,703 | 47 | (7,096 | ) | 35,228 | |||||||||||||||||
Operating expenses |
(4,562 | ) | (27,002 | ) | (4,308 | ) | (143 | ) | 7,096 | (28,919 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(1,333 | ) | (336 | ) | (127 | ) | (9 | ) | | (1,805 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
4,175 | 166 | 268 | (105 | ) | | 4,504 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
595 | 101 | 43 | 149 | | 888 | ||||||||||||||||||
Tax on net operating income |
(2,386 | ) | (27 | ) | (82 | ) | 44 | | (2,451 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,384 | 240 | 229 | 88 | | 2,941 | ||||||||||||||||||
Net cost of net debt |
(61 | ) | ||||||||||||||||||||||
Minority interests |
(53 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,827 | |||||||||||||||||||||||
3rd quarter 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| (71 | ) | (33 | ) | | (104 | ) | ||||||||||||||||
Depreciation, depletion and amortization of |
(15 | ) | | | | (15 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(15 | ) | (71 | ) | (33 | ) | | (119 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and |
85 | 25 | (6 | ) | 139 | 243 | ||||||||||||||||||
Tax on net operating income |
191 | 22 | 12 | (3 | ) | 222 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
261 | (24 | ) | (27 | ) | 136 | 346 | |||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
6 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
352 |
(a) |
Adjustments include special items and inventory valuation effect. |
(b) |
Of which inventory valuation effect |
On operating income |
| (71 | ) | (33 | ) | | ||||||||||||||
On net operating income |
| (24 | ) | (30 | ) | |
3rd quarter 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,410 | 31,307 | 4,460 | 3 | | 40,180 | ||||||||||||||||||
Intersegment sales |
5,660 | 1,149 | 243 | 44 | (7,096 | ) | | |||||||||||||||||
Excise taxes |
| (4,952 | ) | | | | (4,952 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,070 | 27,504 | 4,703 | 47 | (7,096 | ) | 35,228 | |||||||||||||||||
Operating expenses |
(4,562 | ) | (26,931 | ) | (4,275 | ) | (143 | ) | 7,096 | (28,815 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(1,318 | ) | (336 | ) | (127 | ) | (9 | ) | | (1,790 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,190 | 237 | 301 | (105 | ) | | 4,623 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
510 | 76 | 49 | 10 | | 645 | ||||||||||||||||||
Tax on net operating income |
(2,577 | ) | (49 | ) | (94 | ) | 47 | | (2,673 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,123 | 264 | 256 | (48 | ) | | 2,595 | |||||||||||||||||
Net cost of net debt |
(61 | ) | ||||||||||||||||||||||
Minority interests |
(59 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
2,475 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.10 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Except for per share amounts. |
3rd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
3,400 | 568 | 111 | 13 | 4,092 | |||||||||||||||||
Total divestments |
1,035 | 28 | (10 | ) | 21 | 1,074 | ||||||||||||||||
Cash flow from operating activities |
2,831 | 900 | 215 | 958 | 4,904 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
25
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
16,582 | 105,540 | 15,065 | 14 | | 137,201 | ||||||||||||||||||
Intersegment sales |
19,851 | 4,699 | 885 | 129 | (25,564 | ) | | |||||||||||||||||
Excise taxes |
| (13,609 | ) | | | | (13,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
36,433 | 96,630 | 15,950 | 143 | (25,564 | ) | 123,592 | |||||||||||||||||
Operating expenses |
(16,453 | ) | (93,801 | ) | (14,766 | ) | (450 | ) | 25,564 | (99,906 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(3,621 | ) | (1,083 | ) | (360 | ) | (26 | ) | | (5,090 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
16,359 | 1,746 | 824 | (333 | ) | | 18,596 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
1,738 | 443 | 419 | 294 | | 2,894 | ||||||||||||||||||
Tax on net operating income |
(10,203 | ) | (529 | ) | (286 | ) | (12 | ) | | (11,030 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
7,894 | 1,660 | 957 | (51 | ) | | 10,460 | |||||||||||||||||
Net cost of net debt |
(263 | ) | ||||||||||||||||||||||
Minority interests |
(211 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
9,986 | |||||||||||||||||||||||
9 months 2011 (adjustments)
(a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
15 | | | | 15 | |||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
15 | | | | 15 | |||||||||||||||||||
Operating expenses |
| 918 | 96 | | 1,014 | |||||||||||||||||||
Depreciation, depletion and amortization of |
(75 | ) | (168 | ) | (3 | ) | | (246 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(60 | ) | 750 | 93 | | 783 | ||||||||||||||||||
Equity in net income (loss) of affiliates and |
651 | 351 | 231 | 69 | 1,302 | |||||||||||||||||||
Tax on net operating income |
(326 | ) | (302 | ) | (91 | ) | (73 | ) | (792 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
265 | 799 | 233 | (4 | ) | 1,293 | ||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
(6 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,287 | |||||||||||||||||||||||
(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 |
| 1,054 | 103 | | ||||||||||||||||
On net operating income |
| 719 | 88 | |
9 months 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
16,567 | 105,540 | 15,065 | 14 | | 137,186 | ||||||||||||||||||
Intersegment sales |
19,851 | 4,699 | 885 | 129 | (25,564 | ) | | |||||||||||||||||
Excise taxes |
| (13,609 | ) | | | | (13,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
36,418 | 96,630 | 15,950 | 143 | (25,564 | ) | 123,577 | |||||||||||||||||
Operating expenses |
(16,453 | ) | (94,719 | ) | (14,862 | ) | (450 | ) | 25,564 | (100,920 | ) | |||||||||||||
Depreciation, depletion and amortization |
(3,546 | ) | (915 | ) | (357 | ) | (26 | ) | | (4,844 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
16,419 | 996 | 731 | (333 | ) | | 17,813 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
1,087 | 92 | 188 | 225 | | 1,592 | ||||||||||||||||||
Tax on net operating income |
(9,877 | ) | (227 | ) | (195 | ) | 61 | | (10,238 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
7,629 | 861 | 724 | (47 | ) | | 9,167 | |||||||||||||||||
Net cost of net debt |
(263 | ) | ||||||||||||||||||||||
Minority interests |
(205 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
8,699 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
3.86 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
|
|||||||||||||||||||||||
9 months 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
15,389 | 1,166 | 548 | 71 | 17,174 | |||||||||||||||||||
Total divestments |
2,209 | 2,742 | 1,120 | 1,012 | 7,083 | |||||||||||||||||||
Cash flow from operating activities |
13,406 | 2,940 | 353 | 43 | 16,742 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
26
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,525 | 92,305 | 13,272 | 10 | | 119,112 | ||||||||||||||||||
Intersegment sales |
16,679 | 3,624 | 750 | 131 | (21,184 | ) | | |||||||||||||||||
Excise taxes |
| (14,396 | ) | | | | (14,396 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
30,204 | 81,533 | 14,022 | 141 | (21,184 | ) | 104,716 | |||||||||||||||||
Operating expenses |
(13,380 | ) | (79,083 | ) | (12,861 | ) | (461 | ) | 21,184 | (84,601 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(3,881 | ) | (959 | ) | (393 | ) | (28 | ) | | (5,261 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
12,943 | 1,491 | 768 | (348 | ) | | 14,854 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
893 | 256 | 166 | 581 | | 1,896 | ||||||||||||||||||
Tax on net operating income |
(7,381 | ) | (441 | ) | (220 | ) | 186 | | (7,856 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
6,455 | 1,306 | 714 | 419 | | 8,894 | ||||||||||||||||||
Net cost of net debt |
(168 | ) | ||||||||||||||||||||||
Minority interests |
(185 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
8,541 | |||||||||||||||||||||||
9 months 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
||||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
||||||||||||||||||||||||
Operating expenses |
| 514 | 16 | | 530 | |||||||||||||||||||
Depreciation, depletion and amortization of |
(15 | ) | | (8 | ) | | (23 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(15 | ) | 514 | 8 | | 507 | ||||||||||||||||||
Equity in net income (loss) of affiliates and |
(61 | ) | 66 | 16 | 223 | 244 | ||||||||||||||||||
Tax on net operating income |
234 | (176 | ) | 3 | (5 | ) | 56 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
158 | 404 | 27 | 218 | 807 | |||||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Minority interests |
2 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
809 | |||||||||||||||||||||||
(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 |
| 564 | 32 | | ||||||||||||||||||||
On net operating income |
| 443 | 20 | | ||||||||||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (81 | ) |
9 months 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,525 | 92,305 | 13,272 | 10 | | 119,112 | ||||||||||||||||||
Intersegment sales |
16,679 | 3,624 | 750 | 131 | (21,184 | ) | | |||||||||||||||||
Excise taxes |
| (14,396 | ) | | | | (14,396 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
30,204 | 81,533 | 14,022 | 141 | (21,184 | ) | 104,716 | |||||||||||||||||
Operating expenses |
(13,380 | ) | (79,597 | ) | (12,877 | ) | (461 | ) | 21,184 | (85,131 | ) | |||||||||||||
Depreciation, depletion and amortization of |
(3,866 | ) | (959 | ) | (385 | ) | (28 | ) | | (5,238 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
12,958 | 977 | 760 | (348 | ) | | 14,347 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
954 | 190 | 150 | 358 | | 1,652 | ||||||||||||||||||
Tax on net operating income |
(7,615 | ) | (265 | ) | (223 | ) | 191 | | (7,912 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
6,297 | 902 | 687 | 201 | | 8,087 | ||||||||||||||||||
Net cost of net debt |
(168 | ) | ||||||||||||||||||||||
Minority interests |
(187 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
7,732 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per |
3.45 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Except for per share amounts. |
| |||||||||||||||||||||||
9 months 2010 |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
9,266 | 1,586 | 349 | 46 | 11,247 | |||||||||||||||||||
Total divestments |
1,296 | 66 | 324 | 1,286 | 2,972 | |||||||||||||||||||
Cash flow from operating activities |
11,665 | 2,396 | 602 | 443 | 15,106 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
27
Consolidated Financial Statements as of September 30, 2011
Nature of the elements of adjustment by business segment
(M)
ADJUSTMENTS TO OPERATING INCOME
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
3rd quarter 2011 |
Inventory valuation effect | | (100 | ) | (12 | ) | | (112 | ) | |||||||||||||
Effect of changes in fair value | (14 | ) | | | | (14 | ) | |||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (75 | ) | (168 | ) | (2 | ) | | (245 | ) | |||||||||||||
Other items | | (73 | ) | (8 | ) | | (81 | ) | ||||||||||||||
Total |
(89 | ) | (341 | ) | (22 | ) | | (452 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2010 |
Inventory valuation effect | | (71 | ) | (33 | ) | | (104 | ) | |||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (15 | ) | | | | (15 | ) | |||||||||||||||
Other items | | | | | | |||||||||||||||||
Total |
(15 | ) | (71 | ) | (33 | ) | | (119 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2011 |
Inventory valuation effect | | 1,054 | 103 | | 1,157 | ||||||||||||||||
Effect of changes in fair value | 15 | | | | 15 | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (75 | ) | (168 | ) | (2 | ) | | (245 | ) | |||||||||||||
Other items | | (136 | ) | (8 | ) | | (144 | ) | ||||||||||||||
Total |
(60 | ) | 750 | 93 | | 783 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2010 |
Inventory valuation effect | | 564 | 32 | | 596 | ||||||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (15 | ) | | (8 | ) | | (23 | ) | ||||||||||||||
Other items | | (50 | ) | (16 | ) | | (66 | ) | ||||||||||||||
Total |
(15 | ) | 514 | 8 | | 507 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ADJUSTMENTS TO NET INCOME GROUP SHARE |
| |||||||||||||||||||||
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
3rd quarter 2011 |
Inventory valuation effect | | (80 | ) | (7 | ) | | (87 | ) | |||||||||||||
Effect of changes in fair value | (10 | ) | | | | (10 | ) | |||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | (56 | ) | | | (56 | ) | |||||||||||||||
Asset impairment charges | (75 | ) | (175 | ) | (1 | ) | | (251 | ) | |||||||||||||
Gains (losses) on disposals of assets | 427 | 412 | 212 | 3 | 1,054 | |||||||||||||||||
Other items | (25 | ) | (53 | ) | | (59 | ) | (137 | ) | |||||||||||||
Total |
317 | 48 | 204 | (56 | ) | 513 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2010 |
Inventory valuation effect | | (18 | ) | (30 | ) | | (48 | ) | |||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | | (1 | ) | | (1 | ) | |||||||||||||||
Asset impairment charges | (101 | ) | | | | (101 | ) | |||||||||||||||
Gains (losses) on disposals of assets | 362 | | 4 | 136 | 502 | |||||||||||||||||
Other items | | | | | | |||||||||||||||||
Total |
261 | (18 | ) | (27 | ) | 136 | 352 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2011 |
Inventory valuation effect | | 697 | 88 | | 785 | ||||||||||||||||
Effect of changes in fair value | 12 | | | | 12 | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | (56 | ) | | | (56 | ) | |||||||||||||||
Asset impairment charges | (122 | ) | (175 | ) | (1 | ) | | (298 | ) | |||||||||||||
Gains (losses) on disposals of assets | 591 | 412 | 212 | 55 | 1,270 | |||||||||||||||||
Other items | (203 | ) | (98 | ) | (66 | ) | (59 | ) | (426 | ) | ||||||||||||
Total |
278 | 780 | 233 | (4 | ) | 1,287 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2010 |
Inventory valuation effect | | 445 | 20 | | 465 | ||||||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | (81 | ) | (81 | ) | |||||||||||||||
Restructuring charges | | | (11 | ) | | (11 | ) | |||||||||||||||
Asset impairment charges | (160 | ) | | (6 | ) | | (166 | ) | ||||||||||||||
Gains (losses) on disposals of assets | 362 | | 33 | 299 | 694 | |||||||||||||||||
Other items | (44 | ) | (39 | ) | (9 | ) | | (92 | ) | |||||||||||||
Total |
158 | 406 | 27 | 218 | 809 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
28
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
3rd quarter 2011 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
46,177 | (14 | ) | 46,163 | ||||||||
Excise taxes |
(4,638 | ) | | (4,638 | ) | |||||||
Revenues from sales |
41,539 | (14 | ) | 41,525 | ||||||||
Purchases net of inventory variation |
(28,906 | ) | (112 | ) | (29,018 | ) | ||||||
Other operating expenses |
(4,981 | ) | (80 | ) | (5,061 | ) | ||||||
Exploration costs |
(242 | ) | | (242 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and |
(1,627 | ) | (246 | ) | (1,873 | ) | ||||||
Other income |
69 | 1,265 | 1,334 | |||||||||
Other expense |
(95 | ) | (117 | ) | (212 | ) | ||||||
Financial interest on debt |
(262 | ) | | (262 | ) | |||||||
Financial income from marketable securities & cash equivalents |
114 | | 114 | |||||||||
Cost of net debt |
(148 | ) | | (148 | ) | |||||||
Other financial income |
108 | | 108 | |||||||||
Other financial expense |
(115 | ) | | (115 | ) | |||||||
Equity in net income (loss) of affiliates |
518 | (21 | ) | 497 | ||||||||
Income taxes |
(3,280 | ) | (168 | ) | (3,448 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,840 | 507 | 3,347 | |||||||||
Group share |
2,801 | 513 | 3,314 | |||||||||
Minority interests |
39 | (6 | ) | 33 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. |
3rd quarter 2010 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
40,180 | | 40,180 | |||||||||
Excise taxes |
(4,952 | ) | | (4,952 | ) | |||||||
Revenues from sales |
35,228 | | 35,228 | |||||||||
Purchases net of inventory variation |
(23,814 | ) | (104 | ) | (23,918 | ) | ||||||
Other operating expenses |
(4,841 | ) | | (4,841 | ) | |||||||
Exploration costs |
(160 | ) | | (160 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and |
(1,790 | ) | (15 | ) | (1,805 | ) | ||||||
Other income |
223 | 317 | 540 | |||||||||
Other expense |
(41 | ) | (20 | ) | (61 | ) | ||||||
Financial interest on debt |
(126 | ) | | (126 | ) | |||||||
Financial income from marketable securities & cash equivalents |
40 | | 40 | |||||||||
Cost of net debt |
(86 | ) | | (86 | ) | |||||||
Other financial income |
111 | | 111 | |||||||||
Other financial expense |
(103 | ) | | (103 | ) | |||||||
Equity in net income (loss) of affiliates |
455 | (54 | ) | 401 | ||||||||
Income taxes |
(2,648 | ) | 222 | (2,426 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,534 | 346 | 2,880 | |||||||||
Group share |
2,475 | 352 | 2,827 | |||||||||
Minority interests |
59 | (6 | ) | 53 |
(a) |
Adjustments include special items and inventory valuation effect. |
29
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
9 months 2011 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
137,186 | 15 | 137,201 | |||||||||
Excise taxes |
(13,609 | ) | | (13,609 | ) | |||||||
Revenues from sales |
123,577 | 15 | 123,592 | |||||||||
Purchases net of inventory variation |
(85,816 | ) | 1,157 | (84,659 | ) | |||||||
Other operating expenses |
(14,424 | ) | (143 | ) | (14,567 | ) | ||||||
Exploration costs |
(680 | ) | | (680 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and |
(4,844 | ) | (246 | ) | (5,090 | ) | ||||||
Other income |
178 | 1,487 | 1,665 | |||||||||
Other expense |
(224 | ) | (185 | ) | (409 | ) | ||||||
Financial interest on debt |
(557 | ) | | (557 | ) | |||||||
Financial income from marketable securities & cash equivalents |
216 | | 216 | |||||||||
Cost of net debt |
(341 | ) | | (341 | ) | |||||||
Other financial income |
518 | | 518 | |||||||||
Other financial expense |
(327 | ) | | (327 | ) | |||||||
Equity in net income (loss) of affiliates |
1,447 | | 1,447 | |||||||||
Income taxes |
(10,160 | ) | (792 | ) | (10,952 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
8,904 | 1,293 | 10,197 | |||||||||
Group share |
8,699 | 1,287 | 9,986 | |||||||||
Minority interests |
205 | 6 | 211 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. |
9 months 2010 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
119,112 | | 119,112 | |||||||||
Excise taxes |
(14,396 | ) | | (14,396 | ) | |||||||
Revenues from sales |
104,716 | | 104,716 | |||||||||
Purchases net of inventory variation |
(70,144 | ) | 596 | (69,548 | ) | |||||||
Other operating expenses |
(14,320 | ) | (66 | ) | (14,386 | ) | ||||||
Exploration costs |
(667 | ) | | (667 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and |
(5,238 | ) | (23 | ) | (5,261 | ) | ||||||
Other income |
303 | 511 | 814 | |||||||||
Other expense |
(208 | ) | (179 | ) | (387 | ) | ||||||
Financial interest on debt |
(339 | ) | | (339 | ) | |||||||
Financial income from marketable securities & cash equivalents |
88 | | 88 | |||||||||
Cost of net debt |
(251 | ) | | (251 | ) | |||||||
Other financial income |
324 | | 324 | |||||||||
Other financial expense |
(293 | ) | | (293 | ) | |||||||
Equity in net income (loss) of affiliates |
1,526 | (88 | ) | 1,438 | ||||||||
Income taxes |
(7,829 | ) | 56 | (7,773 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
7,919 | 807 | 8,726 | |||||||||
Group share |
7,732 | 809 | 8,541 | |||||||||
Minority interests |
187 | (2 | ) | 185 |
(a) |
Adjustments include special items, inventory valuation effect and, until June 30,2010, equity share of adjustments related to Sanofi. |
30
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS OF 2011
(unaudited)
1) Accounting policies
|
Accounting policies applicable in 2011 |
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of September 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 September 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 nine 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.
|
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.
31
2) Changes in the Group structure, main acquisitions and divestments
|
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 217 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 1,939 million (CAD 2,666 million) mainly representing the value of intangible assets for 445 million and the value of tangible assets for 1,453 million.
Furthermore, TOTAL sold to Suncor 36.75% interest in the Joslyn project for 612 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 173 million ($254 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. |
- |
In October 2011, TOTAL became the main international partner on the Yamal LNG project holding a 20% share, and Novatek still holds a 51% interest in the project. |
|
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 the 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. |
The acquisition cost, whose cash payment occurred on June 21, 2011, amounts to 974 million ($1,394 million). In accordance with revised IFRS 3, TOTAL is currently assessing the fair value of identifiable acquired assets, liabilities and contingent liabilities. Based on available information, provisional fair value of net assets acquired at 100% amounts to $1,540 million.
Given the estimated fair value of instruments that are likely to confer rights to minority interests, provisional goodwill amounts to $532 million. This goodwill must be allocated within twelve months from the acquisition date.
Provisional allocation of fair value by main categories of assets and liabilities is as follows:
(M$) |
Fair value at acquisition date |
|||
Intangible assets |
476 | |||
Tangible assets |
589 | |||
Net debt |
(427 | ) | ||
Other capital employed |
902 | |||
|
|
|||
Net assets of SunPower (100%) as of June 21, 2011 |
1,540 | |||
|
|
32
Acquisition-related costs recognized in the statement of income for the first nine months of 2011 amounts to 9 million.
As part of the transaction, various agreements were signed, including a financial guarantee agreement through which TOTAL guarantees up to $1 billion SunPowers repayment 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, the contractual obligations of SunPower are now included in TOTALs notes to the consolidated financial statements. As of December 31, 2010, these obligations mainly included purchase commitments for $4.3 billion.
|
TOTAL finalized in July 2011 the sale of 10% of its interest in the Colombian pipeline OCENSA. The Group still holds a 5.2% interest in this asset. |
|
TOTAL finalized in September 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%. |
|
Downstream |
|
TOTAL and International Petroleum Investment Company (a company wholly-owned by the Government of Abu Dhabi) 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 of the CEPSA shares not yet held by IPIC, at a unit purchase price of 28 per CEPSA share. TOTAL sold to IPIC all of its equity interest in CEPSA and received, as of July 29, 2011, an amount of 3,659 million. |
|
Chemicals |
|
TOTAL finalized in July 2011 the sale of its photocure and coatings resins businesses to Arkema for an amount of 520 million, net of cash sold. |
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.
33
(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
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 | |||||||||||||||||
3rd quarter 2011 |
Inventory valuation effect | | (100 | ) | (12 | ) | | (112 | ) | |||||||||||||
Effect of changes in fair value | (14 | ) | | | | (14 | ) | |||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (75 | ) | (168 | ) | (2 | ) | | (245 | ) | |||||||||||||
Other items | | (73 | ) | (8 | ) | | (81 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(89 | ) | (341 | ) | (22 | ) | | (452 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2010 |
Inventory valuation effect | | (71 | ) | (33 | ) | | (104 | ) | |||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (15 | ) | | | | (15 | ) | |||||||||||||||
Other items | | | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(15 | ) | (71 | ) | (33 | ) | | (119 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2011 |
Inventory valuation effect | | 1,054 | 103 | | 1,157 | ||||||||||||||||
Effect of changes in fair value | 15 | | | | 15 | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (75 | ) | (168 | ) | (2 | ) | | (245 | ) | |||||||||||||
Other items | | (136 | ) | (8 | ) | | (144 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(60 | ) | 750 | 93 | | 783 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2010 |
Inventory valuation effect | | 564 | 32 | | 596 | ||||||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (15 | ) | | (8 | ) | | (23 | ) | ||||||||||||||
Other items | | (50 | ) | (16 | ) | | (66 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(15 | ) | 514 | 8 | | 507 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
34
ADJUSTMENTS TO NET INCOME GROUP SHARE
(M) |
Upstream | Downstream | Chemicals | Corporate | Total | |||||||||||||||||
3rd quarter 2011 |
Inventory valuation effect | | (80 | ) | (7 | ) | | (87 | ) | |||||||||||||
Effect of changes in fair value | (10 | ) | | | | (10 | ) | |||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | (56 | ) | | | (56 | ) | |||||||||||||||
Asset impairment charges | (75 | ) | (175 | ) | (1 | ) | | (251 | ) | |||||||||||||
Gains (losses) on disposals of assets | 427 | 412 | 212 | 3 | 1,054 | |||||||||||||||||
Other items | (25 | ) | (53 | ) | | (59 | ) | (137 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
317 | 48 | 204 | (56 | ) | 513 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2010 |
Inventory valuation effect | | (18 | ) | (30 | ) | | (48 | ) | |||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | | (1 | ) | | (1 | ) | |||||||||||||||
Asset impairment charges | (101 | ) | | | | (101 | ) | |||||||||||||||
Gains (losses) on disposals of assets | 362 | | 4 | 136 | 502 | |||||||||||||||||
Other items | | | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
261 | (18 | ) | (27 | ) | 136 | 352 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2011 |
Inventory valuation effect | | 697 | 88 | | 785 | ||||||||||||||||
Effect of changes in fair value | 12 | | | | 12 | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | | | |||||||||||||||||
Restructuring charges | | (56 | ) | | | (56 | ) | |||||||||||||||
Asset impairment charges | (122 | ) | (175 | ) | (1 | ) | | (298 | ) | |||||||||||||
Gains (losses) on disposals of assets | 591 | 412 | 212 | 55 | 1,270 | |||||||||||||||||
Other items | (203 | ) | (98 | ) | (66 | ) | (59 | ) | (426 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
278 | 780 | 233 | (4 | ) | 1,287 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2010 |
Inventory valuation effect | | 445 | 20 | | 465 | ||||||||||||||||
Effect of changes in fair value | | | | | | |||||||||||||||||
TOTALs equity share of adjustments related to Sanofi | | | | (81 | ) | (81 | ) | |||||||||||||||
Restructuring charges | | | (11 | ) | | (11 | ) | |||||||||||||||
Asset impairment charges | (160 | ) | | (6 | ) | | (166 | ) | ||||||||||||||
Gains (losses) on disposals of assets | 362 | | 33 | 299 | 694 | |||||||||||||||||
Other items | (44 | ) | (39 | ) | (9 | ) | | (92 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
158 | 406 | 27 | 218 | 809 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
In the first nine months 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 the increase of the Supplementary charge applicable to oil activities from 20% to 32%, within the framework of the Finance Act 2011 enacted July 19, 2011.
Furthermore, 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 and in July 2011, TOTAL S.A. announced that it took the decision not to ask for the renewal of this agreement.
As a consequence, TOTAL S.A. is taxed in accordance with the French common tax regime as from 2011. The exit from the consolidated income tax treatment has no significant impact, neither on the Groups financial situation nor on the consolidated results.
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of September 30, 2011, TOTAL S.A. held 9,225,377 of its own shares, representing 0.39% of its share capital, detailed as follows:
|
6,712,528 shares allocated to TOTAL restricted shares plans for Group employees; and |
|
2,512,849 shares intended to be allocated to new TOTAL share purchase option plans or to new restricted shares plans. |
These 9,225,377 shares are deducted from the consolidated shareholders equity.
35
Treasury shares (TOTAL shares held by Group subsidiaries)
As of September 30, 2011, TOTAL S.A. held indirectly through its subsidiaries 100,331,268 of its own shares, representing 4.24% 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.
Dividend
The Board of Directors of October 28, 2010 decided to pay interim dividends on a quarterly basis beginning in fiscal year 2011. The interim dividend of 0.57 per share for the first quarter 2011, approved by the Board of Directors of April 28, 2011, was paid on September 22, 2011.
The Board of Directors of July 28, 2011 and the one of October 27, 2011 approved interim dividends of 0.57 per share for the second quarter 2011 and 0.57 per share for the third quarter 2011, that will be paid on December 22, 2011 (ex-dividend date will be December 19, 2011) and March 22, 2012 (ex-dividend date will be March 19, 2012), respectively.
Other Comprehensive Income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M) |
9 months 2011 | 9 months 2010 | ||||||||||||||
Currency translation adjustment |
(335 | ) | 1,469 | |||||||||||||
- unrealized gain/(loss) of the period |
(318 | ) | 1,472 | |||||||||||||
- less gain/(loss) included in net income |
17 | 3 | ||||||||||||||
Available for sale financial assets |
41 | (48 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
79 | 1 | ||||||||||||||
- less gain/(loss) included in net income |
38 | 49 | ||||||||||||||
Cash flow hedge |
(89 | ) | (89 | ) | ||||||||||||
- unrealized gain/(loss) of the period |
(75 | ) | (170 | ) | ||||||||||||
- less gain/(loss) included in net income |
14 | (81 | ) | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(234 | ) | 275 | |||||||||||||
Other |
(4 | ) | (6 | ) | ||||||||||||
- unrealized gain/(loss) of the period |
(4 | ) | (6 | ) | ||||||||||||
- less gain/(loss) included in net income |
| | ||||||||||||||
|
|
|
|
|||||||||||||
Tax effect |
53 | 31 | ||||||||||||||
|
|
|
|
|||||||||||||
Total other comprehensive income, net amount |
(568 | ) | 1,632 | |||||||||||||
|
|
|
|
36
Tax effects relating to each component of other comprehensive income are as follows:
9 months 2011 | 9 months 2010 | |||||||||||||||||||||||
(M) |
Pre-tax amount |
Tax effect | Net amount | Pre-tax amount |
Tax effect | Net amount | ||||||||||||||||||
Currency translation adjustment |
(335 | ) | (335 | ) | 1,469 | 1,469 | ||||||||||||||||||
Available for sale financial assets |
41 | 22 | 63 | (48 | ) | 2 | (46 | ) | ||||||||||||||||
Cash flow hedge |
(89 | ) | 31 | (58 | ) | (89 | ) | 29 | (60 | ) | ||||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(234 | ) | (234 | ) | 275 | 275 | ||||||||||||||||||
Other |
(4 | ) | (4 | ) | (6 | ) | (6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income |
(621 | ) | 53 | (568 | ) | 1,601 | 31 | 1,632 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
5) Financial debt
The Group issued bonds, mainly through its subsidiaries Total Capital and Total Capital Canada Ltd. During the first nine months of 2011, both subsidiaries issued bonds as follows:
|
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) |
|
Bond 4.000% 2011-2016 (600 million NOK) |
|
Bond 3.625% 2011-2016 (600 million SEK) |
The Group reimbursed bonds during the first nine 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) |
|
Bond 4.875% 2004-2011 (200 million CAD) |
|
Bond 1.625% 2005-2011 (550 million CHF) |
|
Bond 3.875% 2006-2011 (1,400 million EUR) |
|
Bond Euribor 3 months + 0.04% 2006-2011 (42 million EUR) |
|
Bond JPY Libor + 0.15% 2008-2011 (10,000 million JPY) |
|
Bond 3.750% 2008-2011 (150 million USD) |
In the context of its active cash management, the Group may temporarily increase its current borrowings, particularly in the form of commercial paper. The changes in current borrowings, cash and cash equivalents and current financial assets resulting from this cash management in the quarterly financial statements are not necessarily representative of a longer-term position.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments. There were no major changes concerning transactions with related parties during the first nine months of 2011.
37
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 third quarter 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.
|
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. An appeal has been lodged by the parent companies against this decision during the third quarter of 2011. Considering the parent companies 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 and lodged an appeal against this recovery.
On September 29, 2011, in another proceeding, the supreme court of the European Union has squashed the European Commissions decision of January 19, 2005, as well as the decision of the General Court of the European Union of September 30, 2009, stating Elf Aquitaines liability, but confirmed the decision vis-à-vis Arkema. Due to the guarantees that benefit to Arkema, this favorable decision has no financial impact for the Group.
1 |
Arkema is used in this section to designate those companies of the Arkema group whose ultimate parent company is Arkema S.A. Arkema became an independent company after being spun-off from TOTAL S.A. in May 2006. |
2 |
This amount does not take into account a case that led to Arkema, prior to Arkemas spin-off from TOTAL, and Elf Aquitaine being fined jointly 45 million and Arkema being fined 13.5 million. |
38
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 mentioned 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 evaluations 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 September 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, 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. Within the framework of this legal proceeding, a 24 million reserve is booked in the Groups consolidated financial statements as of September 30, 2011. |
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.
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 following 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 September 30, 2011, stands at 81 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.
39
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 $ 22.4 billion. For the same reasons as those successfully adjudicated by Elf Aquitaine against Blue Rapid and the Russian Olympic Committee, the Group considers this claim to be unfounded as 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.
40
Oil-for-Food Program
Several countries have launched investigations concerning possible violations related to the United Nations (UN) Oil-for-Food program in Iraq.
Pursuant to a French criminal investigation, certain current or former Group employees were placed under formal criminal investigation for possible charges as accessories to the misappropriation of corporate assets and as accessories to the corruption of foreign public agents. The Chairman and Chief Executive Officer of the Company, formerly President of the Groups Exploration & Production division, was also placed under formal investigation in October 2006. In 2007, the criminal investigation was closed and the case was transferred to the Prosecutors office. In 2009, the Prosecutors office recommended to the investigating judge that the case against the Groups current and former employees and TOTALs Chairman and Chief Executive Officer not be pursued.
In early 2010, despite the recommendation of the Prosecutors office, a new investigating judge, having taken over the case, decided to indict TOTAL S.A. on bribery charges as well as complicity and influence peddling. The indictment was brought eight years after the beginning of the investigation without any new evidence being added to the affair.
In October 2010, the Prosecutors office recommended to the investigating judge that the case against TOTAL S.A. the Groups current and former employees and TOTALs Chairman and Chief Executive Officer not be pursued. However, by ordinance notified in early August 2011, the investigating judge on the matter decided to send the case to trial.
The Company believes that its activities related to the Oil-for-Food program have been in compliance with this program, as organized by the UN in 1996. The Volcker report released by the independent investigating committee set up by the UN had discarded any bribery grievance within the framework of the Oil-For-Food program with respect to TOTAL.
Libya
Stopped since early March 2011 due to the security context in Libya, the Groups production started up again at the end of September 2011 on the offshore Al Jurf field located in contractual areas 15, 16 & 32 (ex C137) at the level existing before the events. The restart of the Groups production on the onshore fields remains subject to the stabilization of the security context.
In addition, 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 has 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. In addition, since September 3, 2011, the European Union has adopted further measures, including, notably, a prohibition on the purchase, import or transportation from Syria of crude oil and petroleum products. TOTAL does not believe that its current business activities in Syria are in contravention of these measures.
During the third quarter of 2011, the Groups production in Syria was not significantly reduced. In addition, in early September 2011, the Group ceased to purchase hydrocarbons from Syria.
Yemen
During the third quarter of 2011, the Groups activities have not been significantly impacted by the security context in Yemen.
Commitments
In the Upstream, the Group has signed during the first nine months of 2011 guarantees in respect of construction contracts for an amount of about 3.1 billion.
41
8) Information by business segment
9 months 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
16,582 | 105,540 | 15,065 | 14 | | 137,201 | ||||||||||||||||||
Intersegment sales |
19,851 | 4,699 | 885 | 129 | (25,564 | ) | | |||||||||||||||||
Excise taxes |
| (13,609 | ) | | | | (13,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
36,433 | 96,630 | 15,950 | 143 | (25,564 | ) | 123,592 | |||||||||||||||||
Operating expenses |
(16,453 | ) | (93,801 | ) | (14,766 | ) | (450 | ) | 25,564 | (99,906 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,621 | ) | (1,083 | ) | (360 | ) | (26 | ) | | (5,090 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
16,359 | 1,746 | 824 | (333 | ) | | 18,596 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,738 | 443 | 419 | 294 | | 2,894 | ||||||||||||||||||
Tax on net operating income |
(10,203 | ) | (529 | ) | (286 | ) | (12 | ) | | (11,030 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
7,894 | 1,660 | 957 | (51 | ) | | 10,460 | |||||||||||||||||
Net cost of net debt |
(263 | ) | ||||||||||||||||||||||
Minority interests |
(211 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
9,986 |
9 months 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Non-Group sales |
15 | | | | 15 | |||||||||||||||||
Intersegment sales |
||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues from sales |
15 | | | | 15 | |||||||||||||||||
Operating expenses |
| 918 | 96 | | 1,014 | |||||||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(75 | ) | (168 | ) | (3 | ) | | (246 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (b) |
(60 | ) | 750 | 93 | | 783 | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
651 | 351 | 231 | 69 | 1,302 | |||||||||||||||||
Tax on net operating income |
(326 | ) | (302 | ) | (91 | ) | (73 | ) | (792 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net operating income (b) |
265 | 799 | 233 | (4 | ) | 1,293 | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||
Minority interests |
(6 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
1,287 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1 st , 2011, the effect of changes in fair value. |
(b) |
Of which inventory valuation effect |
On operating income |
| 1,054 | 103 | | ||||||||||||
On net operating income |
| 719 | 88 | |
9 months 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
16,567 | 105,540 | 15,065 | 14 | | 137,186 | ||||||||||||||||||
Intersegment sales |
19,851 | 4,699 | 885 | 129 | (25,564 | ) | | |||||||||||||||||
Excise taxes |
| (13,609 | ) | | | | (13,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
36,418 | 96,630 | 15,950 | 143 | (25,564 | ) | 123,577 | |||||||||||||||||
Operating expenses |
(16,453 | ) | (94,719 | ) | (14,862 | ) | (450 | ) | 25,564 | (100,920 | ) | |||||||||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(3,546 | ) | (915 | ) | (357 | ) | (26 | ) | | (4,844 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
16,419 | 996 | 731 | (333 | ) | | 17,813 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,087 | 92 | 188 | 225 | | 1,592 | ||||||||||||||||||
Tax on net operating income |
(9,877 | ) | (227 | ) | (195 | ) | 61 | | (10,238 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
7,629 | 861 | 724 | (47 | ) | | 9,167 | |||||||||||||||||
Net cost of net debt |
(263 | ) | ||||||||||||||||||||||
Minority interests |
(205 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
8,699 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
3.86 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Except for per share amounts. |
9 months 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
15,389 | 1,166 | 548 | 71 | 17,174 | |||||||||||||||||
Total divestments |
2,209 | 2,742 | 1,120 | 1,012 | 7,083 | |||||||||||||||||
Cash flow from operating activities |
13,406 | 2,940 | 353 | 43 | 16,742 |
42
9 months 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,525 | 92,305 | 13,272 | 10 | | 119,112 | ||||||||||||||||||
Intersegment sales |
16,679 | 3,624 | 750 | 131 | (21,184 | ) | | |||||||||||||||||
Excise taxes |
| (14,396 | ) | | | | (14,396 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
30,204 | 81,533 | 14,022 | 141 | (21,184 | ) | 104,716 | |||||||||||||||||
Operating expenses |
(13,380 | ) | (79,083 | ) | (12,861 | ) | (461 | ) | 21,184 | (84,601 | ) | |||||||||||||
Depreciation, depletion and amortization |
(3,881 | ) | (959 | ) | (393 | ) | (28 | ) | | (5,261 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
12,943 | 1,491 | 768 | (348 | ) | | 14,854 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
893 | 256 | 166 | 581 | | 1,896 | ||||||||||||||||||
Tax on net operating income |
(7,381 | ) | (441 | ) | (220 | ) | 186 | | (7,856 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
6,455 | 1,306 | 714 | 419 | | 8,894 | ||||||||||||||||||
Net cost of net debt |
(168 | ) | ||||||||||||||||||||||
Minority interests |
(185 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
8,541 |
9 months 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Non-Group sales |
||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||
Revenues from sales |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
| 514 | 16 | | 530 | |||||||||||||||||
Depreciation, depletion and amortization |
(15 | ) | | (8 | ) | | (23 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (b) |
(15 | ) | 514 | 8 | | 507 | ||||||||||||||||
Equity in net income (loss) of affiliates and |
(61 | ) | 66 | 16 | 223 | 244 | ||||||||||||||||
Tax on net operating income |
234 | (176 | ) | 3 | (5 | ) | 56 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net operating income (b) |
158 | 404 | 27 | 218 | 807 | |||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||
Minority interests |
2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
809 |
(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 |
| 564 | 32 | | ||||||||||||
On net operating income |
| 443 | 20 | | ||||||||||||
(c) Of which equity share of adjustments related to Sanofi |
| | | (81 | ) |
9 months 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,525 | 92,305 | 13,272 | 10 | | 119,112 | ||||||||||||||||||
Intersegment sales |
16,679 | 3,624 | 750 | 131 | (21,184 | ) | | |||||||||||||||||
Excise taxes |
| (14,396 | ) | | | | (14,396 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
30,204 | 81,533 | 14,022 | 141 | (21,184 | ) | 104,716 | |||||||||||||||||
Operating expenses |
(13,380 | ) | (79,597 | ) | (12,877 | ) | (461 | ) | 21,184 | (85,131 | ) | |||||||||||||
Depreciation, depletion and amortization |
(3,866 | ) | (959 | ) | (385 | ) | (28 | ) | | (5,238 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
12,958 | 977 | 760 | (348 | ) | | 14,347 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
954 | 190 | 150 | 358 | | 1,652 | ||||||||||||||||||
Tax on net operating income |
(7,615 | ) | (265 | ) | (223 | ) | 191 | | (7,912 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
6,297 | 902 | 687 | 201 | | 8,087 | ||||||||||||||||||
Net cost of net debt |
(168 | ) | ||||||||||||||||||||||
Minority interests |
(187 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
7,732 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
3.45 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Except for per share amounts. |
9 months 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
9,266 | 1,586 | 349 | 46 | 11,247 | |||||||||||||||||
Total divestments |
1,296 | 66 | 324 | 1,286 | 2,972 | |||||||||||||||||
Cash flow from operating activities |
11,665 | 2,396 | 602 | 443 | 15,106 |
43
3rd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,272 | 36,220 | 4,669 | 2 | | 46,163 | ||||||||||||||||||
Intersegment sales |
6,571 | 1,582 | 243 | 45 | (8,441 | ) | | |||||||||||||||||
Excise taxes |
| (4,638 | ) | | | | (4,638 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,843 | 33,164 | 4,912 | 47 | (8,441 | ) | 41,525 | |||||||||||||||||
Operating expenses |
(5,443 | ) | (32,559 | ) | (4,624 | ) | (136 | ) | 8,441 | (34,321 | ) | |||||||||||||
Depreciation, depletion and amortization |
(1,281 | ) | (464 | ) | (119 | ) | (9 | ) | | (1,873 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
5,119 | 141 | 169 | (98 | ) | | 5,331 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
922 | 347 | 319 | 24 | | 1,612 | ||||||||||||||||||
Tax on net operating income |
(3,401 | ) | (58 | ) | (45 | ) | 41 | | (3,463 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,640 | 430 | 443 | (33 | ) | | 3,480 | |||||||||||||||||
Net cost of net debt |
(133 | ) | ||||||||||||||||||||||
Minority interests |
(33 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,314 |
3rd quarter 2011 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Non-Group sales |
(14 | ) | | | | (14 | ) | |||||||||||||||
Intersegment sales |
||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues from sales |
(14 | ) | | | | (14 | ) | |||||||||||||||
Operating expenses |
| (173 | ) | (19 | ) | | (192 | ) | ||||||||||||||
Depreciation, depletion and amortization |
(75 | ) | (168 | ) | (3 | ) | | (246 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (b) |
(89 | ) | (341 | ) | (22 | ) | | (452 | ) | |||||||||||||
Equity in net income (loss) of affiliates and |
530 | 339 | 243 | 15 | 1,127 | |||||||||||||||||
Tax on net operating income |
(124 | ) | 44 | (17 | ) | (71 | ) | (168 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net operating income (b) |
317 | 42 | 204 | (56 | ) | 507 | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||
Minority interests |
6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
513 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1 st , 2011, the effect of changes in fair value. |
(b) |
Of which inventory valuation effect |
On operating income |
| (100 | ) | (12 | ) | | ||||||||||
On net operating income |
| (83 | ) | (7 | ) | |
3rd quarter 2011 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,286 | 36,220 | 4,669 | 2 | | 46,177 | ||||||||||||||||||
Intersegment sales |
6,571 | 1,582 | 243 | 45 | (8,441 | ) | | |||||||||||||||||
Excise taxes |
| (4,638 | ) | | | | (4,638 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,857 | 33,164 | 4,912 | 47 | (8,441 | ) | 41,539 | |||||||||||||||||
Operating expenses |
(5,443 | ) | (32,386 | ) | (4,605 | ) | (136 | ) | 8,441 | (34,129 | ) | |||||||||||||
Depreciation, depletion and amortization |
(1,206 | ) | (296 | ) | (116 | ) | (9 | ) | | (1,627 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
5,208 | 482 | 191 | (98 | ) | | 5,783 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
392 | 8 | 76 | 9 | | 485 | ||||||||||||||||||
Tax on net operating income |
(3,277 | ) | (102 | ) | (28 | ) | 112 | | (3,295 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,323 | 388 | 239 | 23 | | 2,973 | ||||||||||||||||||
Net cost of net debt |
(133 | ) | ||||||||||||||||||||||
Minority interests |
(39 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
2,801 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Except for per share amounts. |
3rd quarter 2011 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
3,289 | 440 | 168 | 24 | 3,921 | |||||||||||||||||
Total divestments |
953 | 2,691 | 1,094 | 344 | 5,082 | |||||||||||||||||
Cash flow from operating activities |
3,158 | 1,775 | 359 | 672 | 5,964 |
44
3rd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,410 | 31,307 | 4,460 | 3 | | 40,180 | ||||||||||||||||||
Intersegment sales |
5,660 | 1,149 | 243 | 44 | (7,096 | ) | | |||||||||||||||||
Excise taxes |
| (4,952 | ) | | | | (4,952 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,070 | 27,504 | 4,703 | 47 | (7,096 | ) | 35,228 | |||||||||||||||||
Operating expenses |
(4,562 | ) | (27,002 | ) | (4,308 | ) | (143 | ) | 7,096 | (28,919 | ) | |||||||||||||
Depreciation, depletion and amortization |
(1,333 | ) | (336 | ) | (127 | ) | (9 | ) | | (1,805 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
4,175 | 166 | 268 | (105 | ) | | 4,504 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
595 | 101 | 43 | 149 | | 888 | ||||||||||||||||||
Tax on net operating income |
(2,386 | ) | (27 | ) | (82 | ) | 44 | | (2,451 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,384 | 240 | 229 | 88 | | 2,941 | ||||||||||||||||||
Net cost of net debt |
(61 | ) | ||||||||||||||||||||||
Minority interests |
(53 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,827 |
3rd quarter 2010 (adjustments) (a) (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Non-Group sales |
||||||||||||||||||||||
Intersegment sales |
||||||||||||||||||||||
Excise taxes |
||||||||||||||||||||||
Revenues from sales |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
| (71 | ) | (33 | ) | | (104 | ) | ||||||||||||||
Depreciation, depletion and amortization |
(15 | ) | | | | (15 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (b) |
(15 | ) | (71 | ) | (33 | ) | | (119 | ) | |||||||||||||
Equity in net income (loss) of affiliates and |
85 | 25 | (6 | ) | 139 | 243 | ||||||||||||||||
Tax on net operating income |
191 | 22 | 12 | (3 | ) | 222 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net operating income (b) |
261 | (24 | ) | (27 | ) | 136 | 346 | |||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||
Minority interests |
6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
352 |
(a) |
Adjustments include special items and inventory valuation effect. |
(b) |
Of which inventory valuation effect |
On operating income |
| (71 | ) | (33 | ) | | ||||||||||
On net operating income |
| (24 | ) | (30 | ) | |
3rd quarter 2010 (adjusted) (M) (a) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,410 | 31,307 | 4,460 | 3 | | 40,180 | ||||||||||||||||||
Intersegment sales |
5,660 | 1,149 | 243 | 44 | (7,096 | ) | | |||||||||||||||||
Excise taxes |
| (4,952 | ) | | | | (4,952 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,070 | 27,504 | 4,703 | 47 | (7,096 | ) | 35,228 | |||||||||||||||||
Operating expenses |
(4,562 | ) | (26,931 | ) | (4,275 | ) | (143 | ) | 7,096 | (28,815 | ) | |||||||||||||
Depreciation, depletion and amortization |
(1,318 | ) | (336 | ) | (127 | ) | (9 | ) | | (1,790 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,190 | 237 | 301 | (105 | ) | | 4,623 | |||||||||||||||||
Equity in net income (loss) of affiliates and |
510 | 76 | 49 | 10 | | 645 | ||||||||||||||||||
Tax on net operating income |
(2,577 | ) | (49 | ) | (94 | ) | 47 | | (2,673 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,123 | 264 | 256 | (48 | ) | | 2,595 | |||||||||||||||||
Net cost of net debt |
(61 | ) | ||||||||||||||||||||||
Minority interests |
(59 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ajusted net income |
2,475 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share () |
1.10 | |||||||||||||||||||||||
|
|
(a) |
Except for per share amounts. |
3rd quarter 2010 (M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||
Total expenditures |
3,400 | 568 | 111 | 13 | 4,092 | |||||||||||||||||
Total divestments |
1,035 | 28 | (10 | ) | 21 | 1,074 | ||||||||||||||||
Cash flow from operating activities |
2,831 | 900 | 215 | 958 | 4,904 |
45
9) Impact of adjustments on the consolidated statement of income
9 months 2011 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
137,186 | 15 | 137,201 | |||||||||
Excise taxes |
(13,609 | ) | | (13,609 | ) | |||||||
Revenues from sales |
123,577 | 15 | 123,592 | |||||||||
Purchases net of inventory variation |
(85,816 | ) | 1,157 | (84,659 | ) | |||||||
Other operating expenses |
(14,424 | ) | (143 | ) | (14,567 | ) | ||||||
Exploration costs |
(680 | ) | | (680 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(4,844 | ) | (246 | ) | (5,090 | ) | ||||||
Other income |
178 | 1,487 | 1,665 | |||||||||
Other expense |
(224 | ) | (185 | ) | (409 | ) | ||||||
Financial interest on debt |
(557 | ) | | (557 | ) | |||||||
Financial income from marketable securities & cash equivalents |
216 | | 216 | |||||||||
Cost of net debt |
(341 | ) | | (341 | ) | |||||||
Other financial income |
518 | | 518 | |||||||||
Other financial expense |
(327 | ) | | (327 | ) | |||||||
Equity in net income (loss) of affiliates |
1,447 | | 1,447 | |||||||||
Income taxes |
(10,160 | ) | (792 | ) | (10,952 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
8,904 | 1,293 | 10,197 | |||||||||
Group share |
8,699 | 1,287 | 9,986 | |||||||||
Minority interests |
205 | 6 | 211 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. |
9 months 2010 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
119,112 | | 119,112 | |||||||||
Excise taxes |
(14,396 | ) | | (14,396 | ) | |||||||
Revenues from sales |
104,716 | | 104,716 | |||||||||
Purchases net of inventory variation |
(70,144 | ) | 596 | (69,548 | ) | |||||||
Other operating expenses |
(14,320 | ) | (66 | ) | (14,386 | ) | ||||||
Exploration costs |
(667 | ) | | (667 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(5,238 | ) | (23 | ) | (5,261 | ) | ||||||
Other income |
303 | 511 | 814 | |||||||||
Other expense |
(208 | ) | (179 | ) | (387 | ) | ||||||
Financial interest on debt |
(339 | ) | | (339 | ) | |||||||
Financial income from marketable securities & cash equivalents |
88 | | 88 | |||||||||
Cost of net debt |
(251 | ) | | (251 | ) | |||||||
Other financial income |
324 | | 324 | |||||||||
Other financial expense |
(293 | ) | | (293 | ) | |||||||
Equity in net income (loss) of affiliates |
1,526 | (88 | ) | 1,438 | ||||||||
Income taxes |
(7,829 | ) | 56 | (7,773 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
7,919 | 807 | 8,726 | |||||||||
Group share |
7,732 | 809 | 8,541 | |||||||||
Minority interests |
187 | (2 | ) | 185 |
(a) |
Adjustments include special items, inventory valuation effect and, until June 30,2010, equity share of adjustments related to Sanofi. |
46
3rd quarter 2011 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
46,177 | (14 | ) | 46,163 | ||||||||
Excise taxes |
(4,638 | ) | | (4,638 | ) | |||||||
Revenues from sales |
41,539 | (14 | ) | 41,525 | ||||||||
Purchases net of inventory variation |
(28,906 | ) | (112 | ) | (29,018 | ) | ||||||
Other operating expenses |
(4,981 | ) | (80 | ) | (5,061 | ) | ||||||
Exploration costs |
(242 | ) | | (242 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,627 | ) | (246 | ) | (1,873 | ) | ||||||
Other income |
69 | 1,265 | 1,334 | |||||||||
Other expense |
(95 | ) | (117 | ) | (212 | ) | ||||||
Financial interest on debt |
(262 | ) | | (262 | ) | |||||||
Financial income from marketable securities & cash equivalents |
114 | | 114 | |||||||||
Cost of net debt |
(148 | ) | | (148 | ) | |||||||
Other financial income |
108 | | 108 | |||||||||
Other financial expense |
(115 | ) | | (115 | ) | |||||||
Equity in net income (loss) of affiliates |
518 | (21 | ) | 497 | ||||||||
Income taxes |
(3,280 | ) | (168 | ) | (3,448 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,840 | 507 | 3,347 | |||||||||
Group share |
2,801 | 513 | 3,314 | |||||||||
Minority interests |
39 | (6 | ) | 33 |
(a) |
Adjustments include special items, inventory valuation effect and, as from January 1st, 2011, the effect of changes in fair value. |
3rd quarter 2010 (M) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
40,180 | | 40,180 | |||||||||
Excise taxes |
(4,952 | ) | | (4,952 | ) | |||||||
Revenues from sales |
35,228 | | 35,228 | |||||||||
Purchases net of inventory variation |
(23,814 | ) | (104 | ) | (23,918 | ) | ||||||
Other operating expenses |
(4,841 | ) | | (4,841 | ) | |||||||
Exploration costs |
(160 | ) | | (160 | ) | |||||||
Depreciation, depletion and amortization of tangible assets and mineral interests |
(1,790 | ) | (15 | ) | (1,805 | ) | ||||||
Other income |
223 | 317 | 540 | |||||||||
Other expense |
(41 | ) | (20 | ) | (61 | ) | ||||||
Financial interest on debt |
(126 | ) | | (126 | ) | |||||||
Financial income from marketable securities & cash equivalents |
40 | | 40 | |||||||||
Cost of net debt |
(86 | ) | | (86 | ) | |||||||
Other financial income |
111 | | 111 | |||||||||
Other financial expense |
(103 | ) | | (103 | ) | |||||||
Equity in net income (loss) of affiliates |
455 | (54 | ) | 401 | ||||||||
Income taxes |
(2,648 | ) | 222 | (2,426 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,534 | 346 | 2,880 | |||||||||
Group share |
2,475 | 352 | 2,827 | |||||||||
Minority interests |
59 | (6 | ) | 53 |
(a) |
Adjustments include special items and inventory valuation effect. |
47
10) Sales by segment
(M) |
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||
1st quarter 2011 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2011 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2011 |
||||||||||||||||||||||||
Non-Group sales |
5,272 | 36,220 | 4,669 | 2 | | 46,163 | ||||||||||||||||||
Intersegment sales |
6,571 | 1,582 | 243 | 45 | (8,441 | ) | | |||||||||||||||||
Excise taxes |
| (4,638 | ) | | | | (4,638 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
11,843 | 33,164 | 4,912 | 47 | (8,441 | ) | 41,525 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2011 |
||||||||||||||||||||||||
Non-Group sales |
16,582 | 105,540 | 15,065 | 14 | | 137,201 | ||||||||||||||||||
Intersegment sales |
19,851 | 4,699 | 885 | 129 | (25,564 | ) | | |||||||||||||||||
Excise taxes |
| (13,609 | ) | | | | (13,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
36,433 | 96,630 | 15,950 | 143 | (25,564 | ) | 123,592 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2010 |
||||||||||||||||||||||||
Non-Group sales |
4,569 | 28,808 | 4,223 | 3 | | 37,603 | ||||||||||||||||||
Intersegment sales |
5,302 | 1,081 | 237 | 42 | (6,662 | ) | | |||||||||||||||||
Excise taxes |
| (4,442 | ) | | | | (4,442 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,871 | 25,447 | 4,460 | 45 | (6,662 | ) | 33,161 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2010 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2010 |
||||||||||||||||||||||||
Non-Group sales |
4,410 | 31,307 | 4,460 | 3 | | 40,180 | ||||||||||||||||||
Intersegment sales |
5,660 | 1,149 | 243 | 44 | (7,096 | ) | | |||||||||||||||||
Excise taxes |
| (4,952 | ) | | | | (4,952 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
10,070 | 27,504 | 4,703 | 47 | (7,096 | ) | 35,228 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2010 |
||||||||||||||||||||||||
Non-Group sales |
13,525 | 92,305 | 13,272 | 10 | | 119,112 | ||||||||||||||||||
Intersegment sales |
16,679 | 3,624 | 750 | 131 | (21,184 | ) | | |||||||||||||||||
Excise taxes |
| (14,396 | ) | | | | (14,396 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
30,204 | 81,533 | 14,022 | 141 | (21,184 | ) | 104,716 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
11) Changes in progress in the Group structure
|
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 would become 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 would 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. The transaction is subject to approval by the relevant authorities. |
As of September 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 529 million and as Liabilities directly associated with the assets classified as held for sale on the face of the consolidated balance sheet for 338 million.
48
|
Downstream |
|
TOTAL signed in June 2011, 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. This transaction is expected to be completed later in 2011. |
The sale process for TOTALs refining assets in the UK is ongoing.
As of September 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 1,101 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.
12) Post-closing events
The Group announced in October 2011 a plan of reorganization of its business segments Downstream and Chemicals. This plan would change the current organization through the creation of:
|
a Refining & Chemicals division that would be a major production hub combining all of TOTALs refining, petrochemical, and specialty chemicals operations. |
|
a Supply & Marketing division that would be dedicated to the global supply and marketing of petroleum products. |
The consultation and notification process towards employee representatives is in progress.
49
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL gives new impetus to its Downstream and Chemicals segments with reorganization
TOTAL S.A. (together with its subsidiaries and affiliates, TOTAL) announced on October 10, 2011, that, in response to profound changes in its business and competitive environment, it is giving a new dynamic to its strategy for developing industrial and commercial activities in its refining, marketing and chemicals operations. This shall be accomplished through a reorganization that will create two new divisions. The plan does not entail employee outplacement or layoffs.
|
The new Refining & Chemicals division will be a major production hub combining all of TOTALs refining and petrochemical operations, including specialty chemicals (Atotech, Bostik, Hutchinson) and fertilizers (GPN, Rosier). The division will be headquartered in Brussels and Paris, with senior management based in Brussels. |
|
The new Supply & Marketing division will be dedicated to the global supply and marketing of petroleum products. |
As a result, TOTALs current Downstream and Chemicals operations will be realigned to focus on two core competencies production and marketing in order to reinforce existing activities and strengthen prospects for growth.
Integrating refining and petrochemical operations, which employ similar industrial processes, has a two-fold objective. The first is to strengthen TOTALs production positions in Europe through increasing value of products (raw materials, intermediates, etc.), a coherent overview of development plans and enhancing energy efficiency and reliability at production units, for instance through joint management of major turnarounds. The second is to develop large-scale integrated projects to more effectively meet demand in growth markets.
TOTALs planned reorganization was presented to the Groups European Works Council on October 10, 2011. The employee representative organizations concerned in Belgium and France have been informed and/or consulted in line with procedure.
Russia: TOTAL and Novatek to join forces for development of Yamal LNG
On October 6, 2011, TOTAL announced that it had signed with Novatek the final agreements to jointly develop the Yamal LNG project, becoming the main international partner on this gas liquefaction project with a 20% share. Novatek intends to keep at least a 51% interest in the project.
The relevant Russian authorities authorized this acquisition on August 22, 2011.
The Yamal LNG project will develop the South Tambey field located in the arctic area of the Yamal peninsula. The resources of this condensate and gas field are expected to result in production of more than 15 million tons of LNG per year. Plateau production is expected to be about 90,000 boe per day. The project has been declared of national interest by the Russian authorities.
Novatek, the largest independent gas producer in Russia with whom TOTAL created a strategic alliance earlier in 2011, supplies approximately 13% of the domestic market. Its production reached 25.3 billion cubic meters of gas for the first semester of 2011. Novateks portfolio of resources is made of several giant fields that underlie Novateks strong potential for growth. Since 2009, TOTAL and Novatek are also jointly developing the Termokarstovoye field.
1
TOTAL enters exploration in Kenya by acquiring a 40% stake in five offshore blocks in the Lamu Basin
On September 21, 2011, TOTAL announced its acquisition, through its Total E&P Kenya B.V. subsidiary, of a 40% interest in five offshore exploration blocks in the Lamu Basin, blocks L5, L7, L11a, L11b and L12. Subject to the approval of the Kenyan authorities, TOTAL will acquire:
|
a 20% stake from Anadarko Kenya Company, which will continue to be the operator with a 50% interest in the permits; |
|
a 5% stake from Cove Energy, which will maintain a 10% interest in the permits; and |
|
a 15% stake from Dynamic Global Advisors, which is selling all of its interest to TOTAL. |
Covering an area of more than 30,500 square kilometers, the exploration blocks are located offshore the Lamu Archipelago in water depths of between 100 and 3,000 meters.
A 3,500 square kilometers 3D seismic survey is currently underway. If the results are satisfactory, one or more exploration wells will be drilled once the survey has been completed.
Indonesia: TOTAL acquires interests in three deep-offshore exploration blocks
On September 15, 2011, TOTAL announced that it had signed agreements with Talisman Energy (Talisman) to farm-in into three deep-offshore exploration blocks in the Makassar Strait in Indonesia. TOTAL has acquired from Talisman:
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a 50% interest in the Sageri Production Sharing Contract (PSC), Talisman now holding the remaining 50% interest; |
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a 35% interest in the South Sageri PSC, alongside Talisman (35%) and PTTEP (30%); and |
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a 20% interest in the Sadang PSC, alongside Talisman (40%) and PTTEP (40%). |
The three blocks operated by Talisman are located in the offshore South Makassar Basin, in water depths ranging from 400 to 2,000 meters. They cover a total area of 10,693 square kilometers. The work commitments during the exploration period include acquiring 2D and 3D seismic as well as drilling two exploration wells. The first exploration well is planned to be spudded in the Sageri block by the end of 2011.
Azerbaijan: TOTAL makes a major gas discovery in the Caspian Sea
On September 9, 2011, TOTAL announced a major gas discovery in the Caspian Sea in the Absheron block offshore Azerbaijan.
The Absheron X-2 well has encountered more than 500 feet of cumulated net gas pays within high quality sands on the northern flank of a major 270 square kilometers structure. Reservoirs are expected to extend over the entire northern part of the structure.
The wells first results confirm a potential of several trillion cubic feet of gas and associated condensates.
The well is currently at a depth of approximately 6,550 meters. Drilling will continue to explore further deeper objectives that look attractive. The well will then be tested to better confirm the reservoir potential.
The Absheron discovery is located in 500 meters of water, 100 kilometers southeast of Baku, some 25 kilometers northeast of the Shah Deniz gas and condensate field.
TOTALs subsidiary, Total EP Absheron, is the operator of the Absheron license with a 40% stake. The partners are SOCAR (40%) and GDF SUEZ (20%).
TOTAL announces deep offshore discovery in the Guyane Maritime license in French Guiana
On September 9, 2011, TOTAL announced a hydrocarbon discovery in French Guianas deep offshore Guyane Maritime license. TOTAL has a 25% equity interest in the Tullow-operated acreage.
Located around 150 kilometers northeast of Cayenne, the GM-ES-1 well lies in just over 2,000 meters of water and has so far been drilled to a depth of 5,711 meters below sea level. Measurement while drilling revealed the existence of liquid hydrocarbon-bearing sandstone reservoirs.
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The discovery follows the acquisition in late 2009 and early 2010 of 3D seismic data over a 2,500-square-kilometer area in the eastern section of the license. The area includes the prospect in which GM-ES-1 is being drilled, as well as several other prospects in similar traps in an abrupt margin play.
After intermediate measurements, drilling will resume shortly to reach the planned total depth. The production potential and the scale of resources will then be determined through delineation drilling.
TOTALs partners in the license are Tullow, operator with a 27.5% interest, Shell (45%) and Northpet (2.5%).
Pazflor, one of the worlds largest ever deepwater development, comes on stream in Angola
On August 26, 2011, TOTAL, operator of Block 17, announced that the giant Pazflor field offshore Angola had come on stream ahead of the initial schedule. The Pazflor field lies 150 kilometers off Luanda in water depths ranging from 600 to 1,200 meters. The field will gradually ramp up to its full production capacity of 220,000 barrels per day over the coming months.
Pazflor comprises a vast subsea gathering network, the most complex ever built in Angola: 180 kilometers 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 and measuring 325 meters in length, 62 meters in width and weighing 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.
TOTALs 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%).
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Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. (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 nine months ended September 30, 2011 and 2010 and the fiscal years ended December 31, 2010, 2009, 2008, 2007 and 2006.
Nine Months Ended September 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
For the Group (IFRS) |
28.09 | 31.25 | 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 September 30, 2011, prepared on the basis of IFRS.
At September 30, 2011 |
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(in millions of euros) | ||||
Current financial debt, including current portion of non-current financial debt |
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Current portion of non-current financial debt |
4,371 | |||
Current financial debt |
6,035 | |||
Current portion of financial instruments for interest rate swaps liabilities |
82 | |||
Other current financial instruments liabilities |
167 | |||
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Total current financial debt |
10,655 | |||
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Non-current financial debt |
22,415 | |||
Minority interests |
1,467 | |||
Shareholders equity |
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Common shares |
5,909 | |||
Paid-in surplus and retained earnings |
65,862 | |||
Currency translation adjustment |
(3,091 | ) | ||
Treasury shares |
(3,390 | ) | ||
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Total shareholders equity |
65,290 | |||
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Total capitalization and non-current indebtedness |
89,172 | |||
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As of September 30, 2011, TOTAL had an authorized share capital of 3,446,507,749 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,363,752,941 ordinary shares (including 109,556,645 treasury shares from shareholders equity).
As of September 30, 2011, approximately 261 million of TOTALs non-current financial debt was secured and approximately 22,154 million was unsecured, and all of TOTALs current financial debt of 6,035 million was unsecured. As of September 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.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since September 30, 2011.
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Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of euros) |
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net income |
9,986 | 8,541 | 10,571 | 8,447 | 10,590 | 13,181 | 11,773 | |||||||||||||||||||||
Income tax expenses |
10,952 | 7,773 | 10,228 | 7,751 | 14,146 | 13,575 | 13,720 | |||||||||||||||||||||
Minority interest |
211 | 185 | 236 | 182 | 363 | 354 | 367 | |||||||||||||||||||||
Equity in income of affiliates (in excess of)/ less than dividends received |
(157 | ) | (337 | ) | (470 | ) | (378 | ) | (311 | ) | (821 | ) | (952 | ) | ||||||||||||||
Interest expensed |
505 | 300 | 416 | 450 | 779 | 1,547 | 1,588 | |||||||||||||||||||||
Estimate of the interest within rental expense |
151 | 153 | 202 | 204 | 142 | 128 | 91 | |||||||||||||||||||||
Amortization of capitalized interest |
147 | 104 | 239 | 129 | 115 | 108 | 100 | |||||||||||||||||||||
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Total |
21,795 | 16,719 | 21,422 | 16,785 | 25,824 | 28,072 | 26,687 | |||||||||||||||||||||
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Interest expensed |
505 | 300 | 416 | 450 | 779 | 1,547 | 1,588 | |||||||||||||||||||||
Capitalized interest |
120 | 82 | 118 | 141 | 317 | 321 | 237 | |||||||||||||||||||||
Estimate of the interest within rental expense |
151 | 153 | 202 | 204 | 142 | 128 | 91 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
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Fixed charges |
776 | 535 | 736 | 795 | 1,238 | 1,996 | 1,916 | |||||||||||||||||||||
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Ratio of Earnings to fixed charges |
28.09 | 31.25 | 29.11 | 21.11 | 20.86 | 14.06 | 13.93 | |||||||||||||||||||||
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