EX-99.1 2 d136603dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The financial information in this Form 6-K concerning TOTAL S.A. and its subsidiaries and affiliates (collectively, “TOTAL” or the “Group”) with respect to the fourth quarter of 2015 and the year ended December 31, 2015, has been derived from TOTAL’s unaudited consolidated financial statements for the fourth quarter of 2015 and year ended December 31, 2015. The following discussion should be read in conjunction with the unaudited interim consolidated financial statements provided elsewhere in this exhibit and with the information, including the audited financial statements and related notes, in TOTAL’s Annual Report on Form 20-F for the year ended December 31, 2014, filed with the Securities and Exchange Commission (“SEC”) on March 26, 2015, as amended on March 27, 2015.

A.   KEY FIGURES FROM THE CONSOLIDATED ACCOUNTS OF TOTAL*

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
    

in millions of dollars
(except earnings per share and number of shares)

  2015     2014     2015 vs
2014
 
      37,749               40,580               52,511               -28%          

Sales

        165,357               236,122               -30%       
        

Adjusted net operating income from business segments

     
  748           1,107           1,596           -53%          

• Upstream

    4,774           10,504           -55%       
  1,007           1,433           956           +5%         

• Refining & Chemicals

    4,889           2,489           +96%      
  530           423           245           x2.2         

• Marketing & Services

    1,699           1,254           +35%      
  600           486           464           +29%         

Equity in net income (loss) of affiliates

    2,361           2,662           -11%       
  (0.71)           0.45           (2.47)           +71%         

Fully-diluted earnings per share ($)

    2.16           1.86           +16%      
  2,329           2,312           2,287           +2%         

Fully-diluted weighted-average shares (millions)

    2,304           2,281           +1%      
  (1,626)           1,079           (5,658)           +71%         

Net income (Group share)

    5,087           4,244           +20%      
  6,594           6,040           8,152           -19%          

Investments**

    28,033           30,509           -8%       
  2,297           410           1,689           +36%         

Divestments

    7,584           6,190           +23%      
  4,289           5,630           6,409           -33%          

Net investments***

    20,360           24,140           -16%       
  4,838           5,989           7,354           -34%          

Cash flow from operations

    19,946           25,608           -22%       

 

  *  Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See “Analysis of business segment results” below for further details.
  **  Including acquisitions.
  ***  Net investments = investments including acquisitions – asset sales – other transactions with non-controlling interests.

B.   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, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may also be qualified as special items although they may have occurred in prior years or are likely to recur in following years.

In accordance with IAS 2, the Group values inventories of petroleum products in the financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.

 

1


The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Group’s internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.

The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s consolidated interim financial statements, see pages 21-27 of this exhibit.

The Group measures performance at the segment level on the basis of net operating income and adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.

 

  B.1. Upstream segment

 

  Ø Environment — liquids and gas price realizations*

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
         2015     2014     2015 vs
2014
 
      43.8                  50.5                  76.6                -43%          

Brent ($/b)

          52.4                99.0                -47%       
  38.1            44.0            61.7            -38%          

Average liquids price ($/b)

    47.4            89.4            -47%       
  4.45            4.47            6.29            -29%          

Average gas price ($/Mbtu)

    4.75            6.57            -28%       
  33.1            36.6            50.5            -34%          

Average hydrocarbons price ($/boe)

    39.2            66.2            -41%       

 

  * Consolidated subsidiaries, excluding fixed margins.

 

  Ø Production

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
    

hydrocarbon production

   2015     2014     2015 vs
2014
 
      2,352                2,342                2,229                +6%         

Combined production (kboe/d)

         2,347                2,146                +9%      
  1,251            1,241            1,077            +16%         

• Liquids (kb/d)

     1,237            1,034            +20%      
  5,993            6,003            6,219            -4%          

• Gas (Mcf/d)

     6,054            6,063            –      

In the fourth quarter 2015, hydrocarbon production was 2,352 thousand barrels of oil equivalent per day (kboe/d), an increase of 5.5% compared to the fourth quarter 2014, due to the following:

 

   

+4% for new project start ups and ramp ups, notably GLNG, West Franklin Phase 2, Eldfisk II and Termokarstovoye;

   

+6% due to portfolio changes, mainly the extension of the ADCO concession in the United Arab Emirates, partially offset by asset sales in the North Sea, Nigeria and Azerbaijan;

   

-5% due to shutdowns in Yemen and in Libya; and

   

the price effect(1) offset natural field decline.

 

 

(1) The “price effect” refers to the impact of changing hydrocarbon prices on entitlement volumes from production sharing and buyback contracts. For example, as the price of oil or gas increases above certain pre-determined levels, TOTAL’s share of production normally decreases.

 

2


For the full-year 2015, hydrocarbon production was 2,347 kboe/d, an increase of 9.4% compared to 2014, due to the following:

 

   

+6% for new project start ups and ramp ups, notably CLOV, West Franklin Phase 2, Eldfisk II and Termokarstovoye;

   

+6% due to portfolio changes mentioned above;

   

-4% due to shutdowns in Yemen and in Libya; and

   

+1% due to the price effect and field performance, net of natural field decline.

 

  Ø Reserves

 

Year-end reserves

  2015     2014     2015 vs
2014
 

Hydrocarbon reserves (Mboe)

        11,580                11,523                —         

• Liquids (Mb)

    5,605            5,303            +6%       

• Gas (Bcf)

    32,206            33,590            -4%       

Proved reserves based on the SEC rules (based on Brent at $54.17/b) were 11,580 Mboe on December 31, 2015. Based on the 2015 average production rate, the reserve life is more than thirteen years.

The 2015 proved reserve replacement rate(1), based on SEC rules, was 107%, notably due to the extension of the ADCO concession.

 

  Ø Results

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
    

in millions of dollars

  2015     2014     2015 vs
2014
 
      3,457                3,660                5,415                -36%          

Non-Group sales

        16,840                23,484                -28%       
  (5,106)            325            (4,191)            -22%          

Operating income

    (2,941)            10,494            n/a      
  5,511            669            6,365            -13%          

Adjustments affecting operating income

    7,866            6,662            +18%      
  405            994            2,174            -81%          

Adjusted operating income*

    4,925            17,156            -71%       
  55.1%            33.8%            57.0%            

Effective tax rate**

    45.5%            57.1%         
  748            1,107            1,596            -53%          

Adjusted net operating income*

    4,774            10,504            -55%       
  415            316            533            -22%          

• Includes adjusted income from equity affiliates

    1,723            2,859            -40%       
  5,293            5,173            6,287            -16%          

Investments

    24,270            26,520            -8%       
  1,402            272            1,473            -5%          

Divestments

    3,215            5,764            -44%       
  2,624            2,320            2,608            +1%         

Cash flow from operating activities

    11,182            16,666            -33%       

 

  * Detail of adjustment items shown in the business segment information starting on page 21 of this exhibit.
  ** Defined as: tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

Adjusted net operating income from the Upstream segment was:

 

   

$748 million in the fourth quarter 2015, a decrease of 53% compared to the fourth quarter 2014, essentially due to the lower price of hydrocarbons, partially offset by an increase in production and a decrease in operating costs; and

   

$4,774 million for the full-year 2015, a decrease of 55% compared to 2014, essentially due to the lower price of hydrocarbons, partially offset by an increase in production, a decrease in operating costs, and a lower effective tax rate.

Adjusted net operating income for the Upstream segment excludes special items. In the fourth quarter 2015, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $3,955 million, which includes an impairment on Gladstone LNG in Australia, an adjustment to depreciation on Usan in Nigeria following the cancellation of the sale process and the impairment of exploration projects that will not be developed, compared to a positive impact of $5,038 million in the fourth quarter 2014, consisting essentially of asset impairments of oil sands in Canada, unconventional gas notably in the United States and certain other assets in the Upstream segment.

Technical costs for consolidated subsidiaries, calculated in accordance with ASC 932(2), were $23.0/boe in 2015 compared to $28.3/boe in 2014. This reduction is essentially due to the execution of the Group’s program to reduce operating costs (which decreased from $9.9/boe to $7.4/boe) and lower depreciation (portfolio effect).

 

 

(1) Change in reserves excluding production, i.e., (revisions + discoveries, extensions + acquisitions – divestments) / production for the period.
(2) FASB Accounting Standards Codification Topic 932, Extractive industries – Oil and Gas.

 

3


  B.2. Refining & Chemicals segment

 

  Ø Refinery throughput and utilization rates*

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
         2015     2014     2015 vs
2014
 
      1,931                1,973                1,887                +2%         

Total refinery throughput (kb/d)

        1,938                1,775                +9%      
  682            662            632            +8%         

• France

    674            639            +5%      
  831            891            852            -2%          

• Rest of Europe

    849            794            +7%      
  418            420            403            +4%         

• Rest of world

    415            342            +21%      
        

Utilization rates**

     
  87%            87%            82%            

• Based on crude only

    86%            77%         
  88%            90%            86%            

• Based on crude and other feedstock

    89%            81%         

 

  *  Includes share of TotalErg. Results for refineries in South Africa, French Antilles and Italy are reported in the Marketing & Services segment.
  **  Based on distillation capacity at the beginning of the year.

Refinery throughput:

 

   

increased by 2% in the fourth quarter 2015 compared to the fourth quarter 2014, due to strong industrial performance, despite the partial shutdown of the Antwerp platform for planned maintenance; and

   

increased by 9% in 2015 compared to 2014. Measures to improve availability in Europe resulted in a high utilization rate of 89%. The segment also benefited from the ramp up of the SATORP refinery in Saudi Arabia.

 

  Ø Results

 

4Q15     3Q15     4Q14     4Q15 vs
4Q14
    

in millions of dollars

except European refining margin indicator (ERMI)

  2015     2014     2015 vs
2014
 
  38.1            54.8            27.6                +38%         

ERMI ($/t)

    48.5            18.7            x2.6      
      15,969                17,397            23,025            -31%          

Non-Group sales

        70,623                106,124                -33%       
  529            790            (2,756)            n/a         

Operating income

    4,544            (1,691)            n/a      
  468            923                3,825            -88%          

Adjustments affecting operating income

    1,105            4,430            -75%       
  997            1,713            1,069            -7%          

Adjusted operating income*

    5,649            2,739            x2.1      
  1,007            1,433            956            +5%         

Adjusted net operating income*

    4,889            2,489            x2.0      
  117            128            155            -25%          

• Contribution of Specialty chemicals**

    496            629            -21%       
  586            358            875            -33%          

Investments

    1,843            2,022            -9%       
  836            12            157            x5.3         

Divestments

    3,488            192            x18      
  2,127            2,291            3,113            -32%          

Cash flow from operating activities

    6,432            6,302            +2%      

 

  *  Detail of adjustment items shown in the business segment information starting on page 21 of this exhibit.
  **  Hutchinson and Atotech; Bostik until February 2015.

In 2015, the Refining & Chemicals segment benefited from a favorable environment, notably in Europe. The Group’s European refining margin indicator (“ERMI”) averaged $48.5/t in 2015 compared to $18.7/t in 2014, mainly due to strong demand for gasoline. Petrochemical margins in Europe increased in 2015 due to strong demand for polymers and the decrease in raw material costs.

Adjusted net operating income from the Refining & Chemicals segment was:

 

   

$1,007 million in the fourth quarter 2015, an increase of 5% compared to the fourth quarter 2014 in a globally favorable environment; and

   

$4,889 million for the full-year 2015, twice the level of 2014, due to strong industrial performance during a period of high margins and cost reduction programs.

Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter 2015, the exclusion of the inventory valuation effect had a positive impact on the segment’s adjusted net operating income of $247 million, compared to a positive impact in the fourth quarter 2014 of $1,710 million, which was mainly due a reduction in stock. The exclusion of special items in the fourth quarter 2015 had a negative impact on the segment’s adjusted net operating income of $454 million compared to a positive impact of $1,466 million in the fourth quarter 2014, consisting essentially of impairments of European refining assets.

 

4


  B.3. Marketing & Services segment

 

  Ø Petroleum product sales

 

4Q15      3Q15      4Q14     

4Q15 vs
4Q14

  

sales in kb/d*

   2015      2014     

2015 vs
2014

      1,797                 1,825                 1,810           -1%       

Total Marketing & Services sales

         1,818             1,769               +3%    
  1,065             1,103             1,132           -6%       

• Europe

     1,092                 1,100           -1%    
  732             722             678           +8%       

• Rest of world

     726             669           +9%    

 

  * Excludes trading and bulk refining sales, which are reported under the Refining & Chemicals segment (see page 8 of this exhibit); includes share of TotalErg.

Petroleum product sales were:

 

   

Stable in the fourth quarter 2015 compared to the fourth quarter 2014. The strong sales in growth markets were partially offset by portfolio changes in Europe due to the sale of Totalgaz and Total Suisse; and

   

3% higher in 2015 compared to 2014. In addition to strong growth in Africa, the sector benefited from its strategic repositioning in Europe and a market stimulated by lower prices.

 

  Ø Results

 

4Q15      3Q15      4Q14     

4Q15 vs
4Q14

  

in millions of dollars

   2015      2014     

2015 vs
2014

    18,326             19,522               24,079               -24%       

Non-Group sales

       77,887               106,509             -27%    
  529             298             22           x24       

Operating income

     1,758             1,158           +52%    
  162             199             440           -63%       

Adjustments affecting operating income

     340             551           -38%    
  691             497             462           +50%       

Adjusted operating income*

     2,098             1,709           +23%    
  530             423             245           x2.2       

Adjusted net operating income*

     1,699             1,254           +35%    
  277             (82)             (15)           n/a       

• Contribution of New Energies

     108             10           x10.8    
  689             501             941           -27%       

Investments

     1,841             1,818           +1%    
  56             121             53           +6%       

Divestments

     856             163           x5.3    
  289             1,011             1,627           -82%       

Cash flow from operating activities

     2,323             2,721           -15%    

 

  * Detail of adjustment items shown in the business segment information starting on page 21 of this exhibit.

Adjusted net operating income from the Marketing & Services segment was:

 

   

$530 million in the fourth quarter 2015, more than double compared to the fourth quarter 2014, mainly due to the contribution of New Energies, related to the completion of the Quinto solar farm in the United States; and

   

$1,699 million for the full-year 2015, an increase of 35% compared to 2014, benefiting from the increase in sales and margins in a favorable environment and the contribution of SunPower.

Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter 2015, the exclusion of the inventory valuation effect had a positive impact on the segment’s adjusted net operating income of $68 million, compared to a positive impact of $321 million in the fourth quarter 2014, which was mainly due a reduction in stock. The exclusion of special items in the fourth quarter 2015 had a positive impact on the segment’s adjusted net operating income of $165 million compared to a positive impact of $110 million in the fourth quarter 2014.

 

5


C. GROUP RESULTS

 

  Ø Net income (Group share)

Net income (Group share) was:

 

   

-$1,626 million in the fourth quarter 2015 compared to -$5,658 million in the fourth quarter 2014, an increase of 71% mainly due to less negative impacts on net income (Group share) of special items and the after-tax inventory valuation effect (as detailed below), with the weaker Upstream performance, due to lower hydrocarbon prices, being partially offset by solid Downstream results; and

   

$5,087 million for the full-year 2015 compared to $4,244 million in 2014, an increase of 20% mainly due to less negative impacts on net income (Group share) of special items and the after-tax inventory valuation effect (as detailed below), with the strong performance of the Group’s integrated model and its cost reduction program being demonstrated despite the 47% drop in the Brent price.

Adjustment items(1) had a negative impact on net income (Group share) of $3,701 million in the fourth quarter 2015. This includes an impairment on Gladstone LNG in Australia, an adjustment to depreciation on Usan in Nigeria following the cancellation of the sale process, the impairment of exploration projects that will not be developed and a negative inventory effect. In the fourth quarter 2014, total adjustments affecting net income (Group share) were -$8,459 million, including impairments of oil sands in Canada, unconventional gas notably in the United States, refining in Europe and certain other assets in the Upstream and a negative inventory effect.

The adjustment items had a negative impact on net income (Group share) of $5,431 million in 2015. This includes impairments on Fort Hills in Canada and Gladstone LNG in Australia as well as in Libya, an adjustment to depreciation on Usan in Nigeria following the cancellation of the sale process, the impairment of exploration projects that will not be developed and a negative inventory effect. In 2014, total adjustments affecting net income (Group share) were -$8,593 million, including impairments of oil sands in Canada, unconventional gas notably in the United States, refining in Europe and certain other assets in the Upstream, and a negative inventory effect, which were partially offset by a gain on asset sales, including for the Group’s interests in Shah Deniz in Azerbaijan and GTT.

The number of fully-diluted shares was 2,336 million on December 31, 2015, compared to 2,285 million on December 31, 2014.

 

  Ø Divestments — acquisitions

Asset sales were:

 

   

$2,101 million in the fourth quarter 2015, comprised notably of the sales of the Schwedt refinery, the Géosel oil storage facility and partial interests in Laggan-Tormore and Fort Hills, compared to $1,269 million in the fourth quarter 2014; and

   

$5,968 million for the full-year 2015, comprised mainly of the sales of Bostik, interests in onshore blocks in Nigeria, Totalgaz, the Schwedt refinery, the Géosel oil storage facility, coal mining assets in South Africa, and partial interests in Laggan-Tormore and Fort Hills, compared to $4,650 million for the full-year 2014.

Acquisitions were:

 

   

$33 million in the fourth quarter 2015, compared to $730 million in the fourth quarter 2014; and

   

$3,441 million for the full-year 2015, comprised mainly of the extension of the ADCO concession in the United Arab Emirates, the acquisition of a further 0.7% in the capital of Novatek in Russia, bringing the participation to 18.9%, and the carry on the Utica gas and condensate field in the United States, compared to $2,539 million for the full-year 2014.

 

  Ø Cash flow

The Group’s net cash flow(2) was:

 

    $549 million in the fourth quarter 2015 compared to $945 million in the fourth quarter 2014. This decrease was due to the decline in the Upstream results, partially offset by strong Downstream results and the decrease in investments; and

 

 

(1) Details shown on page 10 of this exhibit.
(2) Net cash flow = cash flow from operations – net investments (including other transactions with non-controlling interests).

 

6


    -$414 million for the full-year 2015 compared to $1,468 million for the full-year 2014. The decrease in net investments partially offset the decrease in cash flow from operations in the context of a 47% lower Brent price.

 

D. PROPOSED DIVIDEND

After closing the 2015 accounts, the Board of Directors decided on February 10, 2016, to propose to the Annual Shareholders’ Meeting on May 24, 2016 an annual dividend of €2.44/share for 2015, stable compared to 2014.

Taking into account the interim dividends of €0.61/share for the first three quarters of 2015, a remaining dividend of the same amount of €0.61/share is therefore proposed. The Board of Directors will also propose to the Annual Shareholders’ Meeting that shareholders have the option of receiving the remaining 2015 dividend payment in cash or in new shares of the company, benefiting from a 10% discount, consistent with the first three 2015 interim dividends. Pending approval at the Annual Shareholders’ Meeting, the ex-dividend date would be June 6, 2016, and the payment date for the cash dividend or the delivery of the new shares, depending on the election of the shareholder, would be set for June 23, 2016.

 

E. SUMMARY AND OUTLOOK

In 2015, the return on equity for the Group was 11.5%. TOTAL resisted the drop in prices by leveraging the effectiveness of its integrated model and its strong operational performance. The Group will further pursue this strategy and all of the necessary actions will continue to be implemented to reduce costs and maintain a solid balance sheet, demonstrating once again the Group’s capacity to adapt.

In 2016, the Group will reduce its organic Capex to around $19 billion, a reduction of more than 15% compared to 2015. This marks a transition to a sustainable level of investments of $17-19 billion from 2017 onwards. The cost reduction program launched in 2014 will be reinforced, enabling Opex savings of $2.4 billion in 2016 and underpinning the objective of more than $3 billion in 2017. The asset sales program will continue in line with the plan, with $4 billion expected in 2016, the same level as 2015.

In the Upstream, five major start ups are planned in 2016. The first of these, Laggan-Tormore, took place on February 8. Production is expected to grow by 4% in 2016 compared to 2015, following more than 9% in 2015 compared to 2014, confirming the growth target of 5% per year on average between 2014 and 2019.

In the Downstream, the target to reduce European refining capacity by 20% will be achieved by end-2016, one year ahead of the initial plan announced in 2012. The cessation of traditional refining activities at La Mède in view of its conversion to a bio-refinery, the restructuring of the Lindsey refinery and the modernization of the Antwerp refinery will be finalized before the end of the year, with the first benefits expected from 2017.

The strategy implemented by the Group in 2015 based on its four priorities of Safety, Delivery, Costs and Cash, will continue in 2016, notably for the benefit of its shareholders.

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. TOTAL’s 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 TOTAL’s 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;

 

7


   

changes in currency exchange rates and currency devaluations;

   

the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL;

   

uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;

   

uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals;

   

changes in the current capital expenditure plans of TOTAL;

   

the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;

   

the financial resources of competitors;

   

changes in laws and regulations, including tax and environmental laws and industrial safety regulations;

   

the quality of future opportunities that may be presented to or pursued by TOTAL;

   

the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally;

   

the ability to obtain governmental or regulatory approvals;

   

the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters;

   

the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;

   

changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities;

   

the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and

   

the risk that TOTAL will inadequately hedge the price of crude oil or finished products.

For additional factors, you should read the information set forth under “Item 3. Risk Factors”, “Item 4. Information on the Company — Other Matters”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F for the year ended December 31, 2014.

 

8


OPERATING INFORMATION BY SEGMENT

 

  Upstream

 

    4Q15    

       3Q15            4Q14            4Q15 vs    
4Q14
  

Combined liquids and gas production by
region (kboe/d)

       2015            2014            2015 vs    
2014
  381           364            393            -3%          Europe      374            364            +3%      
  676           685            690            -2%          Africa      678            657            +3%      
  465           486            391            +19%          Middle East      492            391            +26%      
  110           96            99            +11%          North America      103            90            +14%      
  145           153            151            -4%          South America      152            157            -3%      
  275           245            235            +17%          Asia-Pacific      258            238            +8%      
  300           313            270            +11%          CIS      290            249            +16%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  2,352           2,342            2,229            +6%          Total production      2,347            2,146            +9%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  544           574            594            -8%         

• Includes equity affiliates

     559            571            -2%      
4Q15    3Q15    4Q14    4Q15 vs
4Q14
  

Liquids production by region (kb/d)

   2015    2014    2015 vs
2014
  163           159            168            -3%          Europe      161            165            -2%      
  545           542            558            -2%          Africa      542            522            +4%      
  341           359            185            +84%          Middle East      351            192            +83%      
  56           45            45            +24%          North America      48            39            +23%      
  44           46            49            -10%          South America      47            50            -6%      
  37           30            33            +12%          Asia-Pacific      34            30            +13%      
  65           60            39            +67%          CIS      54            36            +50%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  1,251           1,241            1,077            +16%          Total production      1,237            1,034            +20%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  220           230            197            +11%         

• Includes equity affiliates

     219            200            +9%      
4Q15    3Q15    4Q14    4Q15 vs
4Q14
  

Gas production by region (Mcf/d)

   2015    2014    2015 vs
2014
  1,179           1,115            1,224            -4%          Europe      1,161            1,089            +7%      
  639           719            674            -5%          Africa      677            693            -2%      
  686           708            1,113            -38%          Middle East      778            1,084            -28%      
  305           280            305                     North America      308            285            +8%      
  564           598            573            -2%          South America      588            599            -2%      
  1,364           1,240            1,144            +19%          Asia-Pacific      1,290            1,178            +10%      
  1,256           1,343            1,186            +6%          CIS      1,252            1,135            +10%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  5,993           6,003            6,219            -4%          Total production      6,054            6,063                 

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  1,739           1,850            2,064            -16%         

• Includes equity affiliates

     1,828            1,998            -8%      
4Q15    3Q15    4Q14    4Q15 vs
4Q14
  

Liquefied natural gas

   2015    2014    2015 vs
2014
  2.48           2.53            3.06            -19%          LNG sales* (Mt)      10.22            12.15            -16%      

 

  *  Sales, Group share, excluding trading; 2014 and 2015 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2014 and 2015 SEC coefficients, respectively.

 

  Downstream (Refining & Chemicals and Marketing & Services)

 

    4Q15            3Q15*            4Q14            4Q15 vs    
4Q14
  

Refined product sales by region (kb/d)**

       2015            2014            2015 vs    
2014
   2,298           2,264            2,112            +9%          Europe      2,184            2,047            +7%      
  547           611            606            -10%          Africa      619            552            +12%      
  489           585            482            +1%          Americas      570            558            +2%      
  620           612            660            -6%          Rest of world      632            612            +3%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  3,954           4,072            3,860            +2%          Total consolidated sales      4,005            3,769            +6%      

 

 

      

 

 

       

 

 

       

 

 

       

 

  

 

 

       

 

 

       

 

 

    
  688           648            628            +9%         

• Includes bulk sales

     649            615            +6%      
  1,469           1,599            1,421            +3%         

• Includes trading

     1,538            1,385            +11%      

 

 

  *  3Q15 volumes restated.
  **  Includes share of TotalErg.

 

9


ADJUSTMENT ITEMS

 

  Adjustments to operating income

 

    4Q15    

       3Q15            4Q14       

in millions of dollars

       2015            2014    
  (5,677)           (654)            (7,812)          Special items affecting operating income          (8,182)            (8,205)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  (48)                              

•  Restructuring charges

     (48)                 
  (4,933)           (650)            (7,817)         

•  Impairments

     (6,877)            (7,979)      
  (696)           (4)            5         

•  Other

     (1,257)            (226)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  (464)           (1,127)            (2,842)          Pre-tax inventory effect: FIFO vs. replacement cost      (1,113)            (3,469)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
            (10)            24          Effect of changes in fair value      (16)            31      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  (6,141)           (1,791)            (10,630)          Total adjustments affecting operating income      (9,311)            (11,643)      

 

  Adjustments to net income (Group share)

 

    4Q15    

       3Q15            4Q14       

in millions of dollars

       2015            2014    
  (3,386)           (912)            (6,485)          Special items affecting net income (Group share)      (4,675)            (6,165)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  579           (98)            30         

•  Gain (loss) on asset sales

     1,810            1,209      
  (29)           (12)            (8)         

•  Restructuring charges

     (72)            (20)      
  (3,443)           (650)            (6,450)         

•  Impairments

     (5,447)            (7,063)      
  (493)           (152)            (57)         

•  Other

     (966)            (291)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  (315)           (760)            (1,993)          After-tax inventory effect: FIFO vs. replacement cost      (747)            (2,453)      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
            (5)            19          Effect of changes in fair value      (9)            25      

 

 

      

 

 

       

 

 

       

 

  

 

 

       

 

 

    
  (3,701)           (1,677)            (8,459)          Total adjustments affecting net income      (5,431)            (8,593)      

INVESTMENTS — DIVESTMENTS

 

    4Q15    

         3Q15              4Q14              4Q15 vs    
4Q14
    

in millions of dollars

       2015              2014              2015 vs    
2014
 
  6,365             5,394             7,002             -9%          

Investments excluding acquisitions

     22,976             26,430             -13%       
  232             170             422             -45%          

•  Capitalized exploration

     1,198             1,616             -26%       
  553             523             565             -2%          

•  Increase in non-current loans

     2,260             2,769             -18%       
  (196)             (15)             (420)             -53%          

•  Repayment of non-current loans

       (1,616)             (1,540)             +5%      
  33             631             730             -95%           Acquisitions      3,441             2,539             +36%      
  2,101             395             1,269             +66%          Asset sales      5,968             4,650             +28%      
  8             —            54             -85%          

Other transactions with non-controlling interests

     89             179             -50%       
  4,289             5,630             6,409             -33%           Net investments*      20,360                 24,140             -16%       

 

  * Net investments = investments including acquisitions — asset sales — other transactions with non-controlling interests.

 

10


NET-DEBT-TO-EQUITY RATIO

 

in millions of dollars

       12/31/2015            9/30/2015        12/31/2014    

Current borrowings

     12,488            13,296            10,942      

Net current financial assets

     (6,019)            (3,246)            (1,113)      

Net financial assets classified as held for sale

     141            94            (56)      

Non-current financial debt

               44,464                      42,873                      45,481      

Hedging instruments of non-current debt

     (1,219)            (1,221)            (1,319)      

Cash and cash equivalents

     (23,269)            (25,858)            (25,181)      

 

  

 

 

       

 

 

       

 

 

    

Net debt

     26,586            25,938            28,754      

 

  

 

 

       

 

 

       

 

 

    

Shareholders’ equity

     92,494            96,093            90,330      

Estimated dividend payable

     (1,545)            (1,573)            (1,686)      

Non-controlling interests

     2,915            3,068            3,201      

 

  

 

 

       

 

 

       

 

 

    

Equity

     93,864            97,588            91,845      

 

  

 

 

       

 

 

       

 

 

    

 

  

 

 

       

 

 

       

 

 

    

Net-debt-to-equity ratio

     28.3%            26.6%            31.3%      

 

  

 

 

       

 

 

       

 

 

    

RETURN ON AVERAGE CAPITAL EMPLOYED

 

  Full-year 2015

 

in millions of dollars

   Upstream                Refining &         
         Chemicals        
     Marketing &
Services
 

Adjusted net operating income

     4,774                 4,889                 1,699           

Capital employed at 12/31/2014*

     100,497                 13,451                 8,825           

Capital employed at 12/31/2015*

     105,580                 10,407                 8,415           

ROACE

     4.6%                 41.0%                 19.7%           

 

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

 

•       Twelve months ended September 30, 2015

        

in millions of dollars

   Upstream              Refining &         
         Chemicals        
     Marketing &
Services
 

Adjusted net operating income

     5,622                  4,838                 1,414           

Capital employed at 9/30/2014*

     104,488                  17,611                 9,633           

Capital employed at 9/30/2015*

               108,425                  11,319                 7,865           

ROACE

     5.3%                  33.4%                 16.2%           

 

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

 

•       Full-year 2014

        

in millions of dollars

   Upstream        Refining &
Chemicals
     Marketing &
Services
 

Adjusted net operating income

     10,504                  2,489                 1,254            

Capital employed at 12/31/2013*

     95,529                  19,752                         10,051            

Capital employed at 12/31/2014*

     100,497                  13,451                 8,825            

ROACE

     10.7%                  15.0%                 13.3%            

 

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

 

11


MAIN INDICATORS

Chart updated around the middle of the month following the end of each quarter.

 

             €/$                  ERMI*  ($/t)**              Brent ($/b)              Average liquids     
price  ($/b)***
         Average gas     
price
($/Mbtu)***
 

Fourth quarter 2015

      1.10             38.1             43.8             38.1               4.45       

Third quarter 2015

      1.11             54.8             50.5             44.0               4.47       

Second quarter 2015

      1.11             54.1             61.9             58.2               4.67       

First quarter 2015

      1.13             47.1             53.9             49.5               5.38       

Fourth quarter 2014

      1.25             27.6             76.6             61.7               6.29       

 

  * The European Refining Margin Indicator (“ERMI”) is a Group 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 Group’s particular refinery configurations, product mix effects or other company-specific operating conditions.
  ** $1/t = $0.136/b.
  ***  Consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting/underlifting position valued at market price.

Disclaimer: data is based on TOTAL’s reporting, is not audited and is subject to change.

 

12


CONSOLIDATED STATEMENT OF INCOME

TOTAL

(unaudited)

 

(M$) (a)   

4th quarter

2015

   

3rd quarter

2015

   

4th quarter

2014

 

Sales

     37,749        40,580        52,511   

Excise taxes

     (5,457     (5,683     (5,777

Revenues from sales

     32,292        34,897        46,734   

Purchases, net of inventory variation

     (21,874     (24,240     (35,644

Other operating expenses

     (6,248     (5,794     (6,831

Exploration costs

     (727     (275     (611

Depreciation, depletion and impairment of tangible assets and mineral interests

     (7,672     (3,345     (10,900

Other income

     833        430        740   

Other expense

     (298     (441     (487

Financial interest on debt

     (241     (233     (108

Financial income from marketable securities & cash equivalents

     25        10        28   

Cost of net debt

     (216     (223     (80

Other financial income

     300        185        219   

Other financial expense

     (171     (154     (168

Equity in net income (loss) of affiliates

     600        486        464   

Income taxes

     1,381        (461     722   

Consolidated net income

     (1,800     1,065        (5,842

Group share

     (1,626     1,079        (5,658

Non-controlling interests

     (174     (14     (184

Earnings per share ($)

     (0.72     0.45        (2.49

Fully-diluted earnings per share ($)

     (0.71     0.45        (2.47
(a) Except for per share amounts.

 

13


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

(unaudited)

 

(M$)   

4th quarter

2015

    

3rd quarter

2015

    

4th quarter

2014

 

Consolidated net income

     (1,800)         1,065         (5,842)   

Other comprehensive income

        

Actuarial gains and losses

     358         46         99   

Tax effect

     (140)         (21)         11   

Currency translation adjustment generated by the parent company

     (2,171)         132         (2,562)   

Items not potentially reclassifiable to profit and loss

     (1,953)         157         (2,452)   

Currency translation adjustment

     604         (736)         980   

Available for sale financial assets

     16         (3)         (5)   

Cash flow hedge

     4         (95)         (12)   

Share of other comprehensive income of equity affiliates, net amount

     (95)         (626)         (1,242)   

Other

     -         -         3   

Tax effect

     (7)         31         10   

Items potentially reclassifiable to profit and loss

     522         (1,429)         (266)   

Total other comprehensive income (net amount)

     (1,431)         (1,272)         (2,718)   
                            

Comprehensive income

     (3,231)         (207)         (8,560)   

Group share

     (3,033)         (167)         (8,365)   

Non-controlling interests

     (198)         (40)         (195)   

 

14


CONSOLIDATED STATEMENT OF INCOME

TOTAL    

(unaudited)    

 

(M$) (a)   

Year

2015

 

   

Year

2014

 

 

Sales

     165,357        236,122   

Excise taxes

     (21,936     (24,104

Revenues from sales

     143,421        212,018   

Purchases, net of inventory variation

     (96,671     (152,975

Other operating expenses

     (24,345     (28,349

Exploration costs

     (1,991     (1,964

Depreciation, depletion and impairment of tangible assets and mineral interests

     (17,720     (19,656

Other income

     3,606        2,577   

Other expense

     (1,577     (954

Financial interest on debt

     (967     (748

Financial income from marketable securities & cash equivalents

     94        108   

Cost of net debt

     (873     (640

Other financial income

     882        821   

Other financial expense

     (654     (676

Equity in net income (loss) of affiliates

     2,361        2,662   

Income taxes

     (1,653     (8,614

Consolidated net income

     4,786        4,250   

Group share

     5,087        4,244   

Non-controlling interests

     (301     6   

Earnings per share ($)

     2.17        1.87   

Fully-diluted earnings per share ($)

     2.16        1.86   
(a) Except for per share amounts.

 

15


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

(unaudited)

 

(M$)   

Year

2015

 

    

Year

2014

 

 

Consolidated net income

     4,786         4,250   

Other comprehensive income

     

Actuarial gains and losses

     557         (1,526)   

Tax effect

     (278)         580   

Currency translation adjustment generated by the parent company

     (7,268)         (9,039)   

Items not potentially reclassifiable to profit and loss

     (6,989)         (9,985)   

Currency translation adjustment

     2,456         4,245   

Available for sale financial assets

     9         (29)   

Cash flow hedge

     (185)         97   

Share of other comprehensive income of equity affiliates, net amount

     120         (1,538)   

Other

     1         3   

Tax effect

     53         (18)   

Items potentially reclassifiable to profit and loss

     2,454         2,760   

Total other comprehensive income (net amount)

     (4,535)         (7,225)   
                   

Comprehensive income

     251         (2,975)   

Group share

     633         (2,938)   

Non-controlling interests

     (382)         (37)   

 

16


CONSOLIDATED BALANCE SHEET

TOTAL

 

(M$)    December 31,
2015
   

September 30,
2015

(unaudited)

   

December 31,
2014

 

ASSETS

      

Non-current assets

      

Intangible assets, net

     14,549        15,639        14,682   

Property, plant and equipment, net

     109,518        108,886        106,876   

Equity affiliates : investments and loans

     19,384        19,200        19,274   

Other investments

     1,241        1,227        1,399   

Hedging instruments of non-current financial debt

     1,219        1,221        1,319   

Deferred income taxes

     3,982        3,439        4,079   

Other non-current assets

     4,355        4,292        4,192   

Total non-current assets

 

     154,248        153,904        151,821   

Current assets

      

Inventories, net

     13,116        14,773        15,196   

Accounts receivable, net

     10,629        12,306        15,704   

Other current assets

     15,843        15,102        15,702   

Current financial assets

     6,190        3,448        1,293   

Cash and cash equivalents

     23,269        25,858        25,181   

Assets classified as held for sale

     1,189        3,734        4,901   

Total current assets

 

     70,236        75,221        77,977   

Total assets

     224,484        229,125        229,798   

LIABILITIES & SHAREHOLDERS’ EQUITY

      

Shareholders’ equity

      

Common shares

     7,670        7,602        7,518   

Paid-in surplus and retained earnings

     101,528        103,519        94,646   

Currency translation adjustment

     (12,119     (10,443     (7,480

Treasury shares

     (4,585     (4,585     (4,354

Total shareholders’ equity - Group share

 

     92,494        96,093        90,330   

Non-controlling interests

 

     2,915        3,068        3,201   

Total shareholders’ equity

 

     95,409        99,161        93,531   

Non-current liabilities

      

Deferred income taxes

     12,360        12,836        14,810   

Employee benefits

     3,774        4,312        4,758   

Provisions and other non-current liabilities

     17,502        17,053        17,545   

Non-current financial debt

     44,464        42,873        45,481   

Total non-current liabilities

 

     78,100        77,074        82,594   

Current liabilities

      

Accounts payable

     20,928        20,003        24,150   

Other creditors and accrued liabilities

     16,884        17,991        16,641   

Current borrowings

     12,488        13,296        10,942   

Other current financial liabilities

     171        202        180   

Liabilities directly associated with the assets classified as held for sale

     504        1,398        1,760   

Total current liabilities

 

     50,975        52,890        53,673   

Total liabilities and shareholders’ equity

     224,484        229,125        229,798   

 

17


CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

(unaudited)

 

(M$)   

4th quarter

2015

 

   

3rd quarter

2015

 

   

4th quarter

2014

 

 

CASH FLOW FROM OPERATING ACTIVITIES

      

Consolidated net income

     (1,800     1,065        (5,842

Depreciation, depletion, amortization and impairment

     8,278        3,519        11,310   

Non-current liabilities, valuation allowances and deferred taxes

     (1,862     (540     (2,329

Impact of coverage of pension benefit plans

     -        -        -   

(Gains) losses on disposals of assets

     (665     22        (460

Undistributed affiliates’ equity earnings

     39        (61     403   

(Increase) decrease in working capital

     937        2,057        4,475   

Other changes, net

     (89     (73     (203

Cash flow from operating activities

     4,838        5,989        7,354   

CASH FLOW USED IN INVESTING ACTIVITIES

      

Intangible assets and property, plant and equipment additions

     (5,919     (5,266     (7,339

Acquisitions of subsidiaries, net of cash acquired

     (42     (76     (56

Investments in equity affiliates and other securities

     (80     (175     (192

Increase in non-current loans

     (553     (523     (565

Total expenditures

     (6,594     (6,040     (8,152

Proceeds from disposals of intangible assets and property, plant and equipment

     1,437        6        874   

Proceeds from disposals of subsidiaries, net of cash sold

     58        289        136   

Proceeds from disposals of non-current investments

     606        100        259   

Repayment of non-current loans

     196        15        420   

Total divestments

     2,297        410        1,689   

Cash flow used in investing activities

     (4,297     (5,630     (6,463

CASH FLOW USED IN FINANCING ACTIVITIES

      

Issuance (repayment) of shares:

      

- Parent company shareholders

     31        4        30   

- Treasury shares

     -        (237     -   

Dividends paid:

      

- Parent company shareholders

     (592     (681     (1,735

- Non-controlling interests

     (3     (25     (1

Issuance of perpetual subordinated notes

     -        -        -   

Payments on perpetual subordinated notes

     -        -        -   

Other transactions with non-controlling interests

     8        -        54   

Net issuance (repayment) of non-current debt

     2,039        356        3,647   

Increase (decrease) in current borrowings

     (531     23        (928

Increase (decrease) in current financial assets and liabilities

     (3,320     (1,096     (255

Cash flow used in financing activities

     (2,368     (1,656     812   

Net increase (decrease) in cash and cash equivalents

     (1,827     (1,297     1,703   

Effect of exchange rates

     (762     (167     (829

Cash and cash equivalents at the beginning of the period

     25,858        27,322        24,307   

Cash and cash equivalents at the end of the period

     23,269        25,858        25,181   

 

18


CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

(unaudited)

 

(M$)   

Year

2015

 

   

Year

2014

 

 

CASH FLOW FROM OPERATING ACTIVITIES

    

Consolidated net income

     4,786        4,250   

Depreciation, depletion, amortization and impairment

     19,334        20,859   

Non-current liabilities, valuation allowances and deferred taxes

     (2,563     (1,980

Impact of coverage of pension benefit plans

     -        -   

(Gains) losses on disposals of assets

     (2,459     (1,979

Undistributed affiliates’ equity earnings

     (311     29   

(Increase) decrease in working capital

     1,683        4,480   

Other changes, net

     (524     (51

Cash flow from operating activities

     19,946        25,608   

CASH FLOW USED IN INVESTING ACTIVITIES

    

Intangible assets and property, plant and equipment additions

     (25,132     (26,320

Acquisitions of subsidiaries, net of cash acquired

     (128     (471

Investments in equity affiliates and other securities

     (513     (949

Increase in non-current loans

     (2,260     (2,769

Total expenditures

     (28,033     (30,509

Proceeds from disposals of intangible assets and property, plant and equipment

     2,623        3,442   

Proceeds from disposals of subsidiaries, net of cash sold

     2,508        136   

Proceeds from disposals of non-current investments

     837        1,072   

Repayment of non-current loans

     1,616        1,540   

Total divestments

     7,584        6,190   

Cash flow used in investing activities

     (20,449     (24,319

CASH FLOW USED IN FINANCING ACTIVITIES

    

Issuance (repayment) of shares:

    

- Parent company shareholders

     485        420   

- Treasury shares

     (237     (289

Dividends paid:

    

- Parent company shareholders

     (2,845     (7,308

- Non-controlling interests

     (100     (154

Issuance of perpetual subordinated notes

     5,616        -   

Payments on perpetual subordinated notes

     -        -   

Other transactions with non-controlling interests

     89        179   

Net issuance (repayment) of non-current debt

     4,166        15,786   

Increase (decrease) in current borrowings

     (597     (2,374

Increase (decrease) in current financial assets and liabilities

     (5,517     (351

Cash flow used in financing activities

     1,060        5,909   

Net increase (decrease) in cash and cash equivalents

     557        7,198   

Effect of exchange rates

     (2,469     (2,217

Cash and cash equivalents at the beginning of the period

     25,181        20,200   

Cash and cash equivalents at the end of the period

     23,269        25,181   

 

19


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

TOTAL

(unaudited)

 

     Common shares issued     Paid-in     Currency
translation
adjustment
    Treasury shares    

Shareholders’
equity-

Group share

   

Non-

controlling
interests

    Total
shareholders’
equity
 

(M$)

 

  Number     Amount     surplus and
retained
earnings
      Number     Amount        

As of January 1, 2014

    2,377,678,160        7,493        98,254        (1,203     (109,214,448     (4,303     100,241        3,138        103,379   

Net income 2014

    -        -        4,244        -        -        -        4,244        6        4,250   

Other comprehensive Income

    -        -        (907     (6,275     -        -        (7,182     (43     (7,225

Comprehensive Income

    -        -        3,337        (6,275     -        -        (2,938     (37     (2,975

Dividend

    -        -        (7,378     -        -        -        (7,378     (154     (7,532

Issuance of common shares

    7,589,365        25        395        -        -        -        420        -        420   

Purchase of treasury shares

    -        -        -        -        (4,386,300     (283     (283     -        (283

Sale of treasury shares (1)

    -        -        (232     -        4,239,335        232        -        -        -   

Share-based payments

    -        -        114        -        -        -        114        -        114   

Share cancellation

    -        -        -        -        -        -        -        -        -   

Other operations with non-controlling interests

    -        -        148        (2     -        -        146        195        341   

Other items

    -        -        8        -        -        -        8        59        67   

As of December 31, 2014

    2,385,267,525        7,518        94,646        (7,480     (109,361,413     (4,354     90,330        3,201        93,531   

Net income 2015

    -        -        5,087        -        -        -        5,087        (301     4,786   

Other comprehensive Income

    -        -        185        (4,639     -        -        (4,454     (81     (4,535

Comprehensive Income

    -        -        5,272        (4,639     -        -        633        (382     251   

Dividend

    -        -        (6,303     -        -        -        (6,303     (100     (6,403

Issuance of common shares

    54,790,358        152        2,159        -        -        -        2,311        -        2,311   

Purchase of treasury shares

    -        -        -        -        (4,711,935     (237     (237     -        (237

Sale of treasury shares (1)

    -        -        (6     -        105,590        6        -        -        -   

Share-based payments

    -        -        101        -        -        -        101        -        101   

Share cancellation

    -        -        -        -        -        -        -        -        -   

Issuance of perpetual subordinated notes

    -        -        5,616        -        -        -        5,616        -        5,616   

Payments on perpetual subordinated notes

    -        -        (114     -        -        -        (114     -        (114

Other operations with non-controlling interests

    -        -        23        -        -        -        23        64        87   

Other items

    -        -        134        -        -        -        134        132        266   

As of December 31, 2015

    2,440,057,883        7,670        101,528        (12,119     (113,967,758     (4,585     92,494        2,915        95,409   

 

(1) Treasury shares related to the restricted stock grants.

 

20


BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

 

4th quarter 2015

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     3,457        15,969        18,326        (3     -        37,749   

Intersegment sales

     4,342        5,532        215        59        (10,148     -   

Excise taxes

     -        (1,073     (4,384     -        -        (5,457

Revenues from sales

     7,799        20,428        14,157        56        (10,148     32,292   

Operating expenses

     (5,716     (19,606     (13,445     (230     10,148        (28,849

Depreciation, depletion and impairment of tangible assets and mineral interests

     (7,189     (293     (183     (7     -        (7,672

Operating income

     (5,106     529        529        (181     -        (4,229

Equity in net income (loss) of affiliates and other items

     571        759        (97     31        -        1,264   

Tax on net operating income

     1,328        (74     (135     218        -        1,337   

Net operating income

     (3,207     1,214        297        68        -        (1,628

Net cost of net debt

               (172

Non-controlling interests

                                             174   

Net income

               (1,626
            

4th quarter 2015 (adjustments) (a)

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     (205     -        -        -        -        (205

Intersegment sales

     -        -        -        -        -        -   

Excise taxes

     -        -        -        -        -        -   

Revenues from sales

     (205     -        -        -        -        (205

Operating expenses

     (413     (429     (161     -        -        (1,003

Depreciation, depletion and impairment of tangible assets and mineral interests

     (4,893     (39     (1     -        -        (4,933

Operating income (b)

     (5,511     (468     (162     -        -        (6,141

Equity in net income (loss) of affiliates and other items

     (58     596        (116     (19     -        403   

Tax on net operating income

     1,614        79        45        7        -        1,745   

Net operating income (b)

     (3,955     207        (233     (12     -        (3,993

Net cost of net debt

               (11

Non-controlling interests

                                             303   

Net income

               (3,701

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

    

 

(b) Of which inventory valuation effect

    

 

On operating income

     -        (359     (105     -       

On net operating income

     -        (247     (68     -       
            

4th quarter 2015 (adjusted)

(M$) (a)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     3,662        15,969        18,326        (3     -        37,954   

Intersegment sales

     4,342        5,532        215        59        (10,148     -   

Excise taxes

     -        (1,073     (4,384     -        -        (5,457

Revenues from sales

     8,004        20,428        14,157        56        (10,148     32,497   

Operating expenses

     (5,303     (19,177     (13,284     (230     10,148        (27,846

Depreciation, depletion and impairment of tangible assets and mineral interests

     (2,296     (254     (182     (7     -        (2,739

Adjusted operating income

     405        997        691        (181     -        1,912   

Equity in net income (loss) of affiliates and other items

     629        163        19        50        -        861   

Tax on net operating income

     (286     (153     (180     211        -        (408

Adjusted net operating income

     748        1,007        530        80        -        2,365   

Net cost of net debt

               (161

Non-controlling interests

                                             (129

Adjusted net income

                                             2,075   

Adjusted fully-diluted earnings per share ($)

                                             0.88   

(a) Except for earnings per share.

  

     
            

4th quarter 2015

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Total expenditures

     5,293        586        689        26        -        6,594   

Total divestments

     1,402        836        56        3        -        2,297   

Cash flow from operating activities

     2,624        2,127        289        (202     -        4,838   

 

21


BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

 

3rd quarter 2015

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     3,660        17,397        19,522        1        -        40,580   

Intersegment sales

     4,280        6,912        201        51        (11,444     -   

Excise taxes

     -        (1,094     (4,589     -        -        (5,683

Revenues from sales

     7,940        23,215        15,134        52        (11,444     34,897   

Operating expenses

     (4,717     (22,169     (14,651     (216     11,444        (30,309

Depreciation, depletion and impairment of tangible assets and mineral interests

     (2,898     (256     (185     (6     -        (3,345

Operating income

     325        790        298        (170     -        1,243   

Equity in net income (loss) of affiliates and other items

     360        152        (29     23        -        506   

Tax on net operating income

     (345     (152     (126     128        -        (495

Net operating income

     340        790        143        (19     -        1,254   

Net cost of net debt

               (189

Non-controlling interests

                                             14   

Net income

               1,079   
            

3rd quarter 2015 (adjustments) (a)

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     (10     -        -        -        -        (10

Intersegment sales

     -        -        -        -        -        -   

Excise taxes

     -        -        -        -        -        -   

Revenues from sales

     (10     -        -        -        -        (10

Operating expenses

     (9     (923     (199     -        -        (1,131

Depreciation, depletion and impairment of tangible assets and mineral interests

     (650     -        -        -        -        (650

Operating income (b)

     (669     (923     (199     -        -        (1,791

Equity in net income (loss) of affiliates and other items

     (151     (14     (145     -        -        (310

Tax on net operating income

     53        294        64        -        -        411   

Net operating income (b)

     (767     (643     (280     -        -        (1,690

Net cost of net debt

               -   

Non-controlling interests

                                             13   

Net income

               (1,677

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

    

 

(b) Of which inventory valuation effect

    

 

On operating income

     -        (934     (193     -       

On net operating income

     -        (631     (139     -       
            

3rd quarter 2015 (adjusted)

(M$) (a)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     3,670        17,397        19,522        1        -        40,590   

Intersegment sales

     4,280        6,912        201        51        (11,444     -   

Excise taxes

     -        (1,094     (4,589     -        -        (5,683

Revenues from sales

     7,950        23,215        15,134        52        (11,444     34,907   

Operating expenses

     (4,708     (21,246     (14,452     (216     11,444        (29,178

Depreciation, depletion and impairment of tangible assets and mineral interests

     (2,248     (256     (185     (6     -        (2,695

Adjusted operating income

     994        1,713        497        (170     -        3,034   

Equity in net income (loss) of affiliates and other items

     511        166        116        23        -        816   

Tax on net operating income

     (398     (446     (190     128        -        (906

Adjusted net operating income

     1,107        1,433        423        (19     -        2,944   

Net cost of net debt

               (189

Non-controlling interests

                                             1   

Adjusted net income

                                             2,756   

Adjusted fully-diluted earnings per share ($)

                                             1.17   

(a) Except for earnings per share.

  

     
            

3rd quarter 2015

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Total expenditures

     5,173        358        501        8        -        6,040   

Total divestments

     272        12        121        5        -        410   

Cash flow from operating activities

     2,320        2,291        1,011        367        -        5,989   

 

22


BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

 

4th quarter 2014

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     5,415        23,025        24,079        (8     -        52,511   

Intersegment sales

     6,130        9,323        339        74        (15,866     -   

Excise taxes

     -        (1,117     (4,660     -        -        (5,777

Revenues from sales

     11,545        31,231        19,758        66        (15,866     46,734   

Operating expenses

     (6,784     (32,248     (19,534     (386     15,866        (43,086

Depreciation, depletion and impairment of tangible assets and mineral interests

     (8,952     (1,739     (202     (7     -        (10,900

Operating income

     (4,191     (2,756     22        (327     -        (7,252

Equity in net income (loss) of affiliates and other items

     958        (70     (195     75        -        768   

Tax on net operating income

     (209     606        (13     315        -        699   

Net operating income

     (3,442     (2,220     (186     63        -        (5,785

Net cost of net debt

               (57

Non-controlling interests

                                             184   

Net income

               (5,658
            

4th quarter 2014 (adjustments) (a)

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     24        -        -        -        -        24   

Intersegment sales

     -        -        -        -        -        -   

Excise taxes

     -        -        -        -        -        -   

Revenues from sales

     24        -        -        -        -        24   

Operating expenses

     30        (2,427     (440     -        -        (2,837

Depreciation, depletion and impairment of tangible assets and mineral interests

     (6,419     (1,398     -        -        -        (7,817

Operating income (b)

     (6,365     (3,825     (440     -        -        (10,630

Equity in net income (loss) of affiliates and other items

     171        (197     (131     -        -        (157

Tax on net operating income

     1,156        846        140        -        -        2,142   

Net operating income (b)

     (5,038     (3,176     (431     -        -        (8,645

Net cost of net debt

               -   

Non-controlling interests

                                             186   

Net income

               (8,459

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

    

 

(b) Of which inventory valuation effect

    

 

On operating income

     -        (2,406     (436     -       

On net operating income

     -        (1,710     (321     -       
            

4th quarter 2014 (adjusted)

(M$) (a)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     5,391        23,025        24,079        (8     -        52,487   

Intersegment sales

     6,130        9,323        339        74        (15,866     -   

Excise taxes

     -        (1,117     (4,660     -        -        (5,777

Revenues from sales

     11,521        31,231        19,758        66        (15,866     46,710   

Operating expenses

     (6,814     (29,821     (19,094     (386     15,866        (40,249

Depreciation, depletion and impairment of tangible assets and mineral interests

     (2,533     (341     (202     (7     -        (3,083

Adjusted operating income

     2,174        1,069        462        (327     -        3,378   

Equity in net income (loss) of affiliates and other items

     787        127        (64     75        -        925   

Tax on net operating income

     (1,365     (240     (153     315        -        (1,443

Adjusted net operating income

     1,596        956        245        63        -        2,860   

Net cost of net debt

               (57

Non-controlling interests

                                             (2

Adjusted net income

                                             2,801   

Adjusted fully-diluted earnings per share ($)

                                             1.22   

(a) Except for earnings per share.

  

     
            

4th quarter 2014

(M$)

 

   Upstream     Refining &
Chemicals
   

 

Marketing &
Services

 

    Corporate     Intercompany     Total  

Total expenditures

     6,287        875        941        49        -        8,152   

Total divestments

     1,473        157        53        6        -        1,689   

Cash flow from operating activities

     2,608        3,113        1,627        6        -        7,354   

 

23


BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

 

Year 2015

(M$)

   Upstream     Refining &
Chemicals
   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     16,840        70,623        77,887        7        -        165,357   

Intersegment sales

     17,927        26,794        911        218        (45,850     -   

Excise taxes

     -        (4,107     (17,829     -        -        (21,936

Revenues from sales

     34,767        93,310        60,969        225        (45,850     143,421   

Operating expenses

     (21,851     (87,674     (58,467     (865     45,850        (123,007

Depreciation, depletion and impairment of tangible assets and mineral interests

     (15,857     (1,092     (744     (27     -        (17,720

Operating income

     (2,941     4,544        1,758        (667     -        2,694   

Equity in net income (loss) of affiliates and other items

     2,019        1,780        297        522        -        4,618   

Tax on net operating income

     (294     (1,105     (585     171        -        (1,813

Net operating income

     (1,216     5,219        1,470        26        -        5,499   

Net cost of net debt

               (713

Non-controlling interests

                                             301   

Net income

               5,087   
            

Year 2015 (adjustments) (a)

(M$)

   Upstream     Refining &
Chemicals
   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     (519     -        -        -        -        (519

Intersegment sales

     -        -        -        -        -        -   

Excise taxes

     -        -        -        -        -        -   

Revenues from sales

     (519     -        -        -        -        (519

Operating expenses

     (564     (1,035     (316     -        -        (1,915

Depreciation, depletion and impairment of tangible assets and mineral interests

     (6,783     (70     (24     -        -        (6,877

Operating income (b)

     (7,866     (1,105     (340     -        -        (9,311

Equity in net income (loss) of affiliates and other items

     (264     1,172        24        (19     -        913   

Tax on net operating income

     2,140        263        87        7        -        2,497   

Net operating income (b)

     (5,990     330        (229     (12     -        (5,901

Net cost of net debt

               (11

Non-controlling interests

                                             481   

Net income

               (5,431

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

    

 

(b) Of which inventory valuation effect

    

 

On operating income

     -        (859     (254     -       

On net operating income

     -        (590     (169     -       
            

Year 2015 (adjusted)

(M$) (a)

   Upstream     Refining &
Chemicals
   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     17,359        70,623        77,887        7        -        165,876   

Intersegment sales

     17,927        26,794        911        218        (45,850     -   

Excise taxes

     -        (4,107     (17,829     -        -        (21,936

Revenues from sales

     35,286        93,310        60,969        225        (45,850     143,940   

Operating expenses

     (21,287     (86,639     (58,151     (865     45,850        (121,092

Depreciation, depletion and impairment of tangible assets and mineral interests

     (9,074     (1,022     (720     (27     -        (10,843

Adjusted operating income

     4,925        5,649        2,098        (667     -        12,005   

Equity in net income (loss) of affiliates and other items

     2,283        608        273        541        -        3,705   

Tax on net operating income

     (2,434     (1,368     (672     164        -        (4,310

Adjusted net operating income

     4,774        4,889        1,699        38        -        11,400   

Net cost of net debt

               (702

Non-controlling interests

                                             (180

Adjusted net income

                                             10,518   

Adjusted fully-diluted earnings per share ($)

                                             4.51   

(a) Except for earnings per share.

  

     
            

Year 2015

(M$)

   Upstream     Refining &
Chemicals
   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Total expenditures

     24,270        1,843        1,841        79        -        28,033   

Total divestments

     3,215        3,488        856        25        -        7,584   

Cash flow from operating activities

     11,182        6,432        2,323        9        -        19,946   

 

24


BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

 

Year 2014

(M$)

   Upstream    

Refining &

Chemicals

   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     23,484        106,124        106,509        5        -        236,122   

Intersegment sales

     29,183        44,950        1,615        236        (75,984     -   

Excise taxes

     -        (4,850     (19,254     -        -        (24,104

Revenues from sales

     52,667        146,224        88,870        241        (75,984     212,018   

Operating expenses

     (26,235     (145,014     (86,931     (1,092     75,984        (183,288

Depreciation, depletion and impairment of tangible assets and mineral interests

     (15,938     (2,901     (781     (36     -        (19,656

Operating income

     10,494        (1,691     1,158        (887     -        9,074   

Equity in net income (loss) of affiliates and other items

     4,302        90        (140     178        -        4,430   

Tax on net operating income

     (8,799     391        (344     (8     -        (8,760

Net operating income

     5,997        (1,210     674        (717     -        4,744   

Net cost of net debt

               (494

Non-controlling interests

                                             (6

Net income

               4,244   
            

Year 2014 (adjustments) (a)

(M$)

   Upstream    

Refining &

Chemicals

   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     31        -        -        -        -        31   

Intersegment sales

     -        -        -        -        -        -   

Excise taxes

     -        -        -        -        -        -   

Revenues from sales

     31        -        -        -        -        31   

Operating expenses

     (164     (2,980     (551     -        -        (3,695

Depreciation, depletion and impairment of tangible assets and mineral interests

     (6,529     (1,450     -        -        -        (7,979

Operating income (b)

     (6,662     (4,430     (551     -        -        (11,643

Equity in net income (loss) of affiliates and other items

     883        (282     (203     -        -        398   

Tax on net operating income

     1,272        1,013        174        -        -        2,459   

Net operating income (b)

     (4,507     (3,699     (580     -        -        (8,786

Net cost of net debt

               -   

Non-controlling interests

                                             193   

Net income

               (8,593

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

    

 

(b)  Of which inventory valuation effect

     

 

On operating income

     -        (2,944     (525     -       

On net operating income

     -        (2,114     (384     -       
            

Year 2014 (adjusted)

(M$) (a)

   Upstream    

Refining &

Chemicals

   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Non-Group sales

     23,453        106,124        106,509        5        -        236,091   

Intersegment sales

     29,183        44,950        1,615        236        (75,984     -   

Excise taxes

     -        (4,850     (19,254     -        -        (24,104

Revenues from sales

     52,636        146,224        88,870        241        (75,984     211,987   

Operating expenses

     (26,071     (142,034     (86,380     (1,092     75,984        (179,593

Depreciation, depletion and impairment of tangible assets and mineral interests

     (9,409     (1,451     (781     (36     -        (11,677

Adjusted operating income

     17,156        2,739        1,709        (887     -        20,717   

Equity in net income (loss) of affiliates and other items

     3,419        372        63        178        -        4,032   

Tax on net operating income

     (10,071     (622     (518     (8     -        (11,219

Adjusted net operating income

     10,504        2,489        1,254        (717     -        13,530   

Net cost of net debt

               (494

Non-controlling interests

                                             (199

Adjusted net income

                                             12,837   

Adjusted fully-diluted earnings per share ($)

                                             5.63   

(a) Except for earnings per share.

  

     
            

Year 2014

(M$)

   Upstream    

Refining &

Chemicals

   

 

Marketing &

Services

 

    Corporate     Intercompany     Total  

Total expenditures

     26,520        2,022        1,818        149        -        30,509   

Total divestments

     5,764        192        163        71        -        6,190   

Cash flow from operating activities

     16,666        6,302        2,721        (81     -        25,608   

 

25


Reconciliation of the information by business segment with consolidated financial statements

TOTAL

(unaudited)

 

4th quarter 2015

(M$)

   Adjusted         Adjustments (a)         Consolidated
statement of income
 
                          

Sales

     37,954        (205     37,749   

Excise taxes

     (5,457     -        (5,457

Revenues from sales

     32,497        (205     32,292   

Purchases, net of inventory variation

     (21,410     (464     (21,874

Other operating expenses

     (6,063     (185     (6,248

Exploration costs

     (373     (354     (727

Depreciation, depletion and impairment of tangible assets and mineral interests

     (2,739     (4,933     (7,672

Other income

     169        664        833   

Other expense

     (47     (251     (298

Financial interest on debt

     (230     (11     (241

Financial income from marketable securities & cash equivalents

     25        -        25   

Cost of net debt

     (205     (11     (216

Other financial income

     300        -        300   

Other financial expense

     (171     -        (171

Equity in net income (loss) of affiliates

     610        (10     600   

Income taxes

     (364     1,745        1,381   

Consolidated net income

     2,204        (4,004     (1,800

Group share

     2,075        (3,701     (1,626

Non-controlling interests

     129        (303     (174

 

(a)  Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

4th quarter 2014

(M$)

   Adjusted         Adjustments (a)         Consolidated
statement of income
 
                          

Sales

     52,487        24        52,511   

Excise taxes

     (5,777     -        (5,777

Revenues from sales

     46,710        24        46,734   

Purchases, net of inventory variation

     (32,802     (2,842     (35,644

Other operating expenses

     (6,836     5        (6,831

Exploration costs

     (611     -        (611

Depreciation, depletion and impairment of tangible assets and mineral interests

     (3,083     (7,817     (10,900

Other income

     515        225        740   

Other expense

     (294     (193     (487

Financial interest on debt

     (108     -        (108

Financial income from marketable securities & cash equivalents

     28        -        28   

Cost of net debt

     (80     -        (80

Other financial income

     219        -        219   

Other financial expense

     (168     -        (168

Equity in net income (loss) of affiliates

     653        (189     464   

Income taxes

     (1,420     2,142        722   

Consolidated net income

     2,803        (8,645     (5,842

Group share

     2,801        (8,459     (5,658

Non-controlling interests

     2        (186     (184

 

(a)  Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

26


Reconciliation of the information by business segment with consolidated financial statements

TOTAL

(unaudited)

 

Year 2015

(M$)

   Adjusted         Adjustments (a)         Consolidated
statement of income
 
                          

Sales

     165,876        (519     165,357   

Excise taxes

     (21,936     -        (21,936

Revenues from sales

     143,940        (519     143,421   

Purchases, net of inventory variation

     (95,558     (1,113     (96,671

Other operating expenses

     (23,984     (361     (24,345

Exploration costs

     (1,550     (441     (1,991

Depreciation, depletion and impairment of tangible assets and mineral interests

     (10,843     (6,877     (17,720

Other income

     1,468        2,138        3,606   

Other expense

     (405     (1,172     (1,577

Financial interest on debt

     (956     (11     (967

Financial income from marketable securities & cash equivalents

     94        -        94   

Cost of net debt

     (862     (11     (873

Other financial income

     882        -        882   

Other financial expense

     (654     -        (654

Equity in net income (loss) of affiliates

     2,414        (53     2,361   

Income taxes

     (4,150     2,497        (1,653

Consolidated net income

     10,698        (5,912     4,786   

Group share

     10,518        (5,431     5,087   

Non-controlling interests

     180        (481     (301

 

(a)  Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

Year 2014

(M$)

   Adjusted         Adjustments (a)         Consolidated
statement of income
 
                          

Sales

     236,091        31        236,122   

Excise taxes

     (24,104     -        (24,104

Revenues from sales

     211,987        31        212,018   

Purchases, net of inventory variation

     (149,506     (3,469     (152,975

Other operating expenses

     (28,123     (226     (28,349

Exploration costs

     (1,964     -        (1,964

Depreciation, depletion and impairment of tangible assets and mineral interests

     (11,677     (7,979     (19,656

Other income

     1,272        1,305        2,577   

Other expense

     (700     (254     (954

Financial interest on debt

     (748     -        (748

Financial income from marketable securities & cash equivalents

     108        -        108   

Cost of net debt

     (640     -        (640

Other financial income

     821        -        821   

Other financial expense

     (676     -        (676

Equity in net income (loss) of affiliates

     3,315        (653     2,662   

Income taxes

     (11,073     2,459        (8,614

Consolidated net income

     13,036        (8,786     4,250   

Group share

     12,837        (8,593     4,244   

Non-controlling interests

     199        (193     6   

 

(a)  Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

27