UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
April 28, 2016
Commission File Number 001-10888
TOTAL S.A.
(Translation of registrants name into English)
2, place Jean Millier
La Défense 6
92400 Courbevoie
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-203476, 333-203476-01, 333-203476-02 AND 333-203476-03) OF TOTAL S.A., TOTAL CAPITAL INTERNATIONAL, TOTAL CAPITAL CANADA LTD. AND TOTAL CAPITAL AND THE REGISTRATION STATEMENTS ON FORM S-8 (333-150365, 333-169828, 333-172832, 333-183144, 333-185168 AND 333-199735) OF TOTAL S.A., AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
TOTAL S.A. is providing on this Form 6-K its results for the first three months ended March 31, 2016, and a description of certain recent developments relating to its business, as well as a capitalization table as of March 31, 2016, and a ratio of earnings to fixed charges for the three months ended March 31, 2016 and 2015, and each of the five years ended December 31, 2015, 2014, 2013, 2012 and 2011, together with the computation of the ratio of earnings to fixed charges.
EX-99.1: Results for the Three Months Ended March 31, 2016 |
EX-99.2: Recent Developments |
EX-99.3: Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
EX-99.4: Computation of Ratio of Earnings to Fixed Charges |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TOTAL S.A. | ||||||||
Date: April 28, 2016 | By: | /s/ HUMBERT DE WENDEL | ||||||
Name: | Humbert de WENDEL | |||||||
Title: | Treasurer |
Exhibit 99.1 | Results for the Three Months Ended March 31, 2016 | |
Exhibit 99.2 | Recent Developments | |
Exhibit 99.3 | Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness | |
Exhibit 99.4 | Computation of Ratio of Earnings to Fixed Charges |
Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information in this Form 6-K concerning TOTAL S.A. and its subsidiaries and affiliates (collectively, TOTAL or the Group) with respect to the first quarter ended March 31, 2016, has been derived from TOTALs unaudited consolidated financial statements for the first quarter ended March 31, 2016 included in this exhibit.
The following discussion should be read in conjunction with the unaudited interim consolidated financial statements and the related notes provided elsewhere in this exhibit and with the information, including the audited financial statements and related notes, in TOTALs Annual Report on Form 20-F for the year ended December 31, 2015, filed with the Securities and Exchange Commission (SEC) on March 16, 2016.
A. | KEY FIGURES FROM THE CONSOLIDATED ACCOUNTS OF TOTAL |
in millions of dollars (except earnings per share and number of shares) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
Sales |
32,841 | 37,749 | 42,313 | -22 | % | |||||||||||
Adjusted net operating income from business segments(a) |
||||||||||||||||
Upstream |
498 | 748 | 1,359 | -63 | % | |||||||||||
Refining & Chemicals |
1,128 | 1,007 | 1,100 | +3 | % | |||||||||||
Marketing & Services |
252 | 530 | 321 | -21 | % | |||||||||||
Equity in net income (loss) of affiliates |
498 | 600 | 590 | -16 | % | |||||||||||
Fully-diluted earnings per share ($) |
0.67 | (0.71 | ) | 1.16 | -42 | % | ||||||||||
Fully-diluted weighted-average shares (millions) |
2,350 | 2,329 | 2,285 | +3 | % | |||||||||||
Net income (Group share) |
1,606 | (1,626 | ) | 2,663 | -40 | % | ||||||||||
Investments(b) |
4,908 | 6,594 | 8,809 | -44 | % | |||||||||||
Divestments |
985 | 2,297 | 2,984 | -67 | % | |||||||||||
Net investments(c) |
3,923 | 4,289 | 5,825 | -33 | % | |||||||||||
Organic investments(d) |
4,615 | 6,365 | 6,069 | -24 | % | |||||||||||
Cash flow from operations |
1,881 | 4,838 | 4,387 | -57 | % |
(a) | 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. |
(b) | Including acquisitions and increases in non-current loans. |
(c) | Net investments = gross investments divestments repayment of non-current loans other operations with non-controlling interests. |
(d) | Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. See page 9 of this exhibit. |
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 Groups results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the 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.
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 TOTALs 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
1
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 Groups 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 TOTALs consolidated interim financial statements, see pages 17-21 and 30-34 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 |
| Environment liquids and gas price realizations(a) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
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Brent ($/b) |
33.9 | 43.8 | 53.9 | -37 | % | |||||||||||
Average liquids price ($/b) |
31.0 | 38.1 | 49.5 | -37 | % | |||||||||||
Average gas price ($/Mbtu) |
3.46 | 4.45 | 5.38 | -36 | % | |||||||||||
Average hydrocarbons price ($/boe) |
26.4 | 33.1 | 41.8 | -37 | % |
(a) | Consolidated subsidiaries, excluding fixed margins. |
| Production |
Hydrocarbon production |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
Combined production (kboe/d) |
2,479 | 2,352 | 2,395 | +4 | % | |||||||||||
Liquids (kb/d) |
1,286 | 1,251 | 1,240 | +4 | % | |||||||||||
Gas (Mcf/d) |
6,441 | 5,993 | 6,312 | +2 | % |
Hydrocarbon production was 2,479 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2016, an increase of 4% compared to the first quarter 2015, due to the following:
| +4% due to new project start ups and ramp ups, notably Termokarstovoye, Laggan-Tormore, Surmont, Lianzi, Gladstone LNG and Moho Phase 1b; |
| -3% due to shutdowns in Yemen and the security situation in Nigeria; and |
| +3% due to the price effect(1), a lower level of maintenance and good field performance, partially offset by natural decline. |
Compared to the fourth quarter 2015, production increased by more than 5%.
(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, TOTALs share of production normally decreases. |
2
| Results |
in millions of dollars, except effective tax rate |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
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Non-Group sales |
3,466 | 3,457 | 5,225 | -34 | % | |||||||||||
Operating income |
(317 | ) | (5,106 | ) | 199 | n/a | ||||||||||
Adjustments affecting operating income |
459 | 5,511 | 1,332 | -66 | % | |||||||||||
Adjusted operating income(a) |
142 | 405 | 1,531 | -91 | % | |||||||||||
Effective tax rate(b) |
-7.0 | % | 55.1 | % | 48.6 | % | ||||||||||
Adjusted net operating income(a) |
498 | 748 | 1,359 | -63 | % | |||||||||||
Including income from equity affiliates |
269 | 415 | 503 | -47 | % | |||||||||||
Investments |
4,237 | 5,293 | 8,151 | -48 | % | |||||||||||
Divestments |
915 | 1,402 | 1,162 | -21 | % | |||||||||||
Organic investments |
4,146 | 5,108 | 5,511 | -25 | % | |||||||||||
Cash flow from operations |
2,113 | 2,624 | 3,525 | -40 | % |
(a) | 1Q15 data as republished in 2Q15 following the reclassification in the statement of income of certain taxes related to the participation in the ADCO concession. Detail of adjustment items shown in the business segment information starting on page 17 of this exhibit. |
(b) | Effective tax rate = tax on adjusted net operating income / (adjusted net operating income income from equity affiliates dividends received from investments + tax on adjusted net operating income). |
The average hydrocarbon price was $26.4/b in the first quarter 2016, a decrease of 37% compared to the first quarter 2015, in line with the drop in the Brent price. In this context, Upstream cash flow from operations was $2,113 million, a 40% decrease compared to $3,525 million in the first quarter 2015. Operating cash flow from operating activities before changes in working capital at replacement cost was $1,831 million, a 37% decrease compared to $2,919 million in the first quarter 2015.
Benefiting from the lowest technical costs among the majors, Upstream generated an adjusted net operating income of $498 million in the first quarter 2016. The 4% increase in production, reduced operating costs and lower exploration expense partially compensated the negative impact of the oil price environment.
Adjusted net operating income for the Upstream segment excludes special items. In the first quarter 2016, the exclusion of special items had a negative impact on the segments adjusted net operating income of $168 million, consisting essentially of the gain on the sale of the FUKA gas pipeline network in the North Sea, compared to a positive impact of $759 million in the first quarter 2015, consisting essentially of the impairment of assets in Libya and Yemen due to the deteriorated security situation this quarter, partially offset by the gain on the sale of interests in onshore fields in Nigeria as well as the effect of fiscal change in the United Kingdom.
B.2. | Refining & Chemicals segment |
| Refinery throughput and utilization rates(a) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
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Total refinery throughput (kb/d) |
2,105 | 2,012 | 2,013 | +5 | % | |||||||||||
France |
756 | 682 | 737 | +3 | % | |||||||||||
Rest of Europe |
844 | 831 | 795 | +6 | % | |||||||||||
Rest of world |
505 | 499 | 481 | +5 | % | |||||||||||
Utilization rates(b) |
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Based on crude only |
91 | % | 87 | % | 86 | % | ||||||||||
Based on crude and other feedstock |
94 | % | 88 | % | 88 | % |
(a) | Includes share of TotalErg, as well as refineries in South Africa and the French Antilles that are reported in the Marketing & Services segment. The condensate splitters at Port Arthur and Daesan are also included and 2015 figures have been restated. |
(b) | Based on distillation capacity at the beginning of the year. |
The utilization rate of 94% in the first quarter 2016 was a significant achievement and refinery throughput increased by 5% compared to the first quarter 2015. The segment benefited from fewer units being shut down and continues to take advantage of the improved availability of its sites.
3
| Results |
in millions of dollars, except the ERMI |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
European refining margin indicator - ERMI ($/t) |
35.1 | 38.1 | 47.1 | -25 | % | |||||||||||
Non-Group sales |
13,938 | 15,969 | 17,464 | -20 | % | |||||||||||
Operating income |
1,090 | 529 | 1,529 | -29 | % | |||||||||||
Adjustments affecting operating income |
207 | 468 | (194 | ) | n/a | |||||||||||
Adjusted operating income(a) |
1,297 | 997 | 1,335 | -3 | % | |||||||||||
Adjusted net operating income(a) |
1,128 | 1,007 | 1,100 | +3 | % | |||||||||||
Including Specialty Chemicals(b) |
116 | 117 | 116 | | ||||||||||||
Investments |
259 | 586 | 434 | -40 | % | |||||||||||
Divestments |
29 | 836 | 1,766 | -98 | % | |||||||||||
Organic investments |
232 | 494 | 410 | -43 | % | |||||||||||
Cash flow from operations |
(421 | ) | 2,127 | 314 | n/a |
(a) | Detail of adjustment items shown in the business segment information starting on page 17 of this exhibit. |
(b) | Hutchinson and Atotech; Bostik until February 2015. |
The environment in the first quarter 2016 remained globally favorable in the Refining & Chemicals segment. Underpinned by gasoline demand, the Groups European refining margin indicator (ERMI) was in line with TOTALs 2016 planning assumption of $35/t, a decrease of 25% compared to the first quarter 2015. Petrochemical margins remained high due to strong demand for polymers and lower feedstock prices. Refining & Chemicals cash flow from operations was negative $421 million in the first quarter 2016 compared to positive $314 million in the first quarter 2015. Operating cash flow from operating activities before changes in working capital at replacement cost was $1,319 million in the first quarter 2016, a decrease of 4% compared to $1,380 million in the first quarter 2015.
Despite the decline in refining margins, adjusted net operating income from the Refining & Chemicals segment was $1,128 million in the first quarter 2016 due in particular to higher throughput and excellent operational performance.
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the first quarter 2016, the exclusion of the inventory valuation effect had a positive impact on the segments adjusted net operating income of $133 million compared to a negative impact of $150 million in the first quarter 2015. The exclusion of special items in the first quarter 2016 had a positive impact on the segments adjusted net operating income of $4 million compared to a negative impact of $595 million in the first quarter 2015, consisting essentially of the gain on the sale of Bostik.
B.3. | Marketing & Services segment |
| Petroleum product sales |
Sales in kb/d(a) |
1Q16 | 4Q15 | 1Q15(b) | 1Q16 vs 1Q15 |
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Total Marketing & Services sales |
1,757 | 1,797 | 1,824 | -4 | % | |||||||||||
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Europe |
1,062 | 1,065 | 1,106 | -4 | % | |||||||||||
Rest of world |
695 | 732 | 718 | -3 | % |
(a) | Excludes trading and bulk refining sales, which are reported under the Refining & Chemicals segment (see page 8 of this exhibit); includes share of TotalErg. |
(b) | 1Q15 volumes restated. |
Petroleum product sales decreased by 4% in the first quarter 2016 compared to the first quarter 2015, mainly due to the sale of Totalgaz and the French Antilles refinery, which represented 2% of the product sales in the second quarter 2015, as well as lower heating fuel sales in Europe.
4
| Results |
in millions of dollars |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
Non-Group sales |
15,433 | 18,326 | 19,620 | -21 | % | |||||||||||
Operating income |
254 | 529 | 438 | -42 | % | |||||||||||
Adjustments affecting operating income |
77 | 162 | 7 | x11 | ||||||||||||
Adjusted operating income(a) |
331 | 691 | 445 | -26 | % | |||||||||||
Adjusted net operating income(a) |
252 | 530 | 321 | -21 | % | |||||||||||
Including New Energies |
(37 | ) | 277 | (42 | ) | n/a | ||||||||||
Investments |
390 | 689 | 215 | +81 | % | |||||||||||
Divestments |
37 | 56 | 52 | -29 | % | |||||||||||
Organic investments |
220 | 736 | 143 | +54 | % | |||||||||||
Cash flow from operations |
240 | 289 | 644 | -63 | % |
(a) | Detail of adjustment items shown in the business segment information starting on page 17 of this exhibit. |
Adjusted net operating income from the Marketing & Services segment was $252 million in the first quarter 2016, impacted by the items mentioned above, with portfolio changes accounting for -$40 million. Marketing & Services cash flow from operations was $240 million in the first quarter 2016, a decrease of 63% compared to $644 million in the first quarter 2015. Operating cash flow from operating activities before changes in working capital at replacement cost was $362 million in the first quarter 2016, a decrease of 13% compared to $418 million in the first quarter 2015.
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the first quarter 2016, the exclusion of the inventory valuation effect had a positive impact on the segments adjusted net operating income of $50 million compared to a positive impact of $5 million in the first quarter 2015. The exclusion of special items in the first quarter 2016 had a positive impact on the segments adjusted net operating income of $14 million compared to a positive impact of $89 million in the first quarter 2015.
C. | GROUP RESULTS FIRST QUARTER OF 2016 |
| Net income (Group share) |
Net income (Group share) in the first quarter 2016 was $1,606 million compared to $2,663 million in the first quarter 2015, a decrease of 40% mainly due to weaker Upstream performance resulting from the unfavorable economic conditions.
In the first quarter 2016, adjustment items(1) had a negative impact on net income (Group share) of $30 million. This includes a negative $183 million inventory effect and a positive $150 million mainly relating to the gain on the sale of the FUKA gas pipeline network in the North Sea.
In the first quarter 2015, adjustment items had a positive impact on net income (Group share) of $61 million, which includes the impairment of assets in Libya and Yemen due to the deteriorated security situation this quarter, partially offset by the gain on the sale of Bostik and the interests in several onshore fields in Nigeria, as well as the effect of fiscal changes in the United Kingdom.
The number of fully-diluted shares was 2,351 million on March 31, 2016, compared to 2,286 million on March 31, 2015.
| Divestments acquisitions |
Asset sales were $885 million in the first quarter 2016, essentially comprised of the sale of the FUKA gas pipeline network in the North Sea, compared to $2,739 million in the first quarter 2015.
Acquisitions were $193 million, mainly comprised of the acquisition of a service station network in the Dominican Republic, compared to $2,495 million in the first quarter 2015.
| Cash flow |
In the first quarter 2016, the Groups cash flow from operations was $1,881 million, a decrease of 57% compared to $4,387 million in the first quarter 2015. Operating cash flow from operating activities before changes in working capital at replacement cost was $3,708 million, a decrease of 20% compared to $4,635 million in the first quarter 2015. The Groups net cash flow(2) in the first quarter 2016 was negative $215 million compared to negative $1,190 million in the first quarter 2015, despite the drop in the Brent price from $54/b to $34/b. Net investments were $3,923 million, a decrease of 33% compared to the first quarter 2015.
(1) | Details shown on pages 9 and 24 of this exhibit. |
(2) | Net cash flow = operating cash flow before working capital changes net investments (including other transactions with non-controlling interests). |
5
D. | SUMMARY AND OUTLOOK |
The results of the first quarter 2016 encourage TOTAL to pursue its strategy to maximize the generation of cash flow by taking full advantage of its asset portfolio and market opportunities. With its operational excellence and integrated model, the Group is implementing an ambitious program to lower costs and investments and to start up projects that deliver production growth.
In the Upstream, production in the second quarter will continue to benefit from the recent start ups, but will be impacted by normal levels of seasonal maintenance. Production is expected to increase by 4% in 2016, with the start-up of Angola LNG and Incahuasi expected by mid-year and Kashagan by year-end.
Refining and petrochemical margins remained strong at the beginning of the second quarter and Downstream is on track to achieve its objective of generating around $7 billion of cash flow in 2016. Partial maintenance is planned at Antwerp and Lindsey as part of their modernization projects, as well as on the coker at Port Arthur.
TOTAL is continuing its efforts to reduce its cash breakeven, and is targeting a level of organic investments of less than $19 billion in 2016.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTALs future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTALs ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
| material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; |
| changes in currency exchange rates and currency devaluations; |
| the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL; |
| uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities; |
| uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals; |
| changes in the current capital expenditure plans of TOTAL; |
| the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies; |
| the financial resources of competitors; |
| changes in laws and regulations, including tax and environmental laws and industrial safety regulations; |
| the quality of future opportunities that may be presented to or pursued by TOTAL; |
| the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; |
| the ability to obtain governmental or regulatory approvals; |
| the ability to respond to challenges in international markets, including political or economic conditions, 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. |
6
For additional factors, you should read the information set forth under Item 3. Risk Factors, Item 4. Information on the Company Other Matters, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures about Market Risk in TOTALs Form 20-F for the year ended December 31, 2015.
7
OPERATING INFORMATION BY SEGMENT
| Upstream(a) |
Combined liquids and gas production by region (kboe/d) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
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Europe and Central Asia |
788 | 681 | 653 | +21 | % | |||||||||||
Africa |
630 | 638 | 647 | -3 | % | |||||||||||
Middle East and North Africa |
531 | 503 | 580 | -8 | % | |||||||||||
Americas |
258 | 255 | 254 | +2 | % | |||||||||||
Asia-Pacific |
271 | 275 | 261 | +4 | % | |||||||||||
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Total production |
2,479 | 2,352 | 2,395 | +3 | % | |||||||||||
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Including equity affiliates |
620 | 544 | 573 | +8 | % |
Liquids production by region (kb/d) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
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Europe and Central Asia |
251 | 227 | 203 | +23 | % | |||||||||||
Africa |
518 | 526 | 528 | -2 | % | |||||||||||
Middle East and North Africa |
380 | 361 | 380 | | ||||||||||||
Americas |
104 | 100 | 91 | +14 | % | |||||||||||
Asia-Pacific |
33 | 37 | 37 | -9 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total production |
1,286 | 1,251 | 1,240 | +4 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Including equity affiliates |
240 | 220 | 207 | +16 | % |
Gas production by region (Mcf/d) |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
Europe and Central Asia |
2,814 | 2,435 | 2,424 | +16 | % | |||||||||||
Africa |
564 | 545 | 589 | -4 | % | |||||||||||
Middle East and North Africa |
837 | 780 | 1,097 | -24 | % | |||||||||||
Americas |
860 | 869 | 904 | -5 | % | |||||||||||
Asia-Pacific |
1,366 | 1,364 | 1,298 | +5 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total production |
6,441 | 5,993 | 6,312 | +2 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Including equity affiliates |
2,039 | 1,739 | 1,963 | +4 | % |
Liquefied natural gas |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
LNG sales(b) (Mt) |
2.64 | 2.48 | 2.82 | -6 | % |
(a) | The regional reporting has been changed to reflect the Companys internal organization. |
(b) | Sales, Group share, excluding trading; 2015 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2015 SEC coefficient. |
| Downstream (Refining & Chemicals and Marketing & Services) |
Petroleum product sales by region (kb/d)(a) |
1Q16 | 4Q15 | 1Q15(b) | 1Q16 vs 1Q15 |
||||||||||||
Europe |
2,288 | 2,298 | 2,059 | +11 | % | |||||||||||
Africa |
501 | 547 | 670 | -25 | % | |||||||||||
Americas |
531 | 489 | 581 | -9 | % | |||||||||||
Rest of world |
771 | 620 | 657 | +17 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total consolidated sales |
4,091 | 3,954 | 3,967 | +3 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Including bulk sales |
699 | 688 | 628 | +11 | % | |||||||||||
Including trading |
1,635 | 1,469 | 1,515 | +8 | % |
(a) | Includes share of TotalErg. |
(b) | 1Q15 volumes restated. |
8
ADJUSTMENT ITEMS
| Adjustments to operating income |
in millions of dollars |
1Q16 | 4Q15 | 1Q15 | |||||||||
Special items affecting operating income |
(464 | ) | (5,677 | ) | (1,377 | ) | ||||||
|
|
|
|
|
|
|||||||
Restructuring charges |
(11 | ) | (48 | ) | | |||||||
Impairments |
| (4,933 | ) | (1,046 | ) | |||||||
Other |
(453 | ) | (696 | ) | (331 | ) | ||||||
|
|
|
|
|
|
|||||||
Pre-tax inventory effect: FIFO vs. replacement cost |
(282 | ) | (464 | ) | 228 | |||||||
|
|
|
|
|
|
|||||||
Effect of changes in fair value |
3 | | 4 | |||||||||
|
|
|
|
|
|
|||||||
Total adjustments affecting operating income |
(743 | ) | (6,141 | ) | (1,145 | ) |
| Adjustments to net income (Group share) |
in millions of dollars |
1Q16 | 4Q15 | 1Q15 | |||||||||
Special items affecting net income (Group share) |
150 | (3,386 | ) | (95 | ) | |||||||
|
|
|
|
|
|
|||||||
Gain (loss) on asset sales |
358 | 579 | 1,002 | |||||||||
Restructuring charges |
(2 | ) | (29 | ) | (31 | ) | ||||||
Impairments |
| (3,443 | ) | (1,109 | ) | |||||||
Other |
(206 | ) | (493 | ) | 43 | |||||||
|
|
|
|
|
|
|||||||
After-tax inventory effect: FIFO vs. replacement cost |
(183 | ) | (315 | ) | 154 | |||||||
|
|
|
|
|
|
|||||||
Effect of changes in fair value |
3 | | 2 | |||||||||
|
|
|
|
|
|
|||||||
Total adjustments affecting net income |
(30 | ) | (3,701 | ) | 61 |
INVESTMENTS DIVESTMENTS
in millions of dollars |
1Q16 | 4Q15 | 1Q15 | 1Q16 vs 1Q15 |
||||||||||||
Organic investments |
4,615 | 6,365 | 6,069 | -24 | % | |||||||||||
Capitalized exploration |
228 | 232 | 399 | -43 | % | |||||||||||
Increase in non-current loans |
572 | 553 | 793 | -28 | % | |||||||||||
Repayment of non-current loans |
(100 | ) | (196 | ) | (245 | ) | -59 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Acquisitions |
193 | 33 | 2,495 | -92 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Asset sales |
885 | 2,101 | 2,739 | -68 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other transactions with non-controlling interests |
| 8 | | n/a | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investments |
3,923 | 4,289 | 5,825 | -33 | % |
9
NET-DEBT-TO-EQUITY RATIO
in millions of dollars |
03/31/2016 | 12/31/2015 | 03/31/2015 | |||||||||
Current borrowings |
10,858 | 12,488 | 13,604 | |||||||||
Net current financial assets |
(3,231 | ) | (6,019 | ) | (2,262 | ) | ||||||
Net financial assets classified as held for sale |
83 | 141 | (27 | ) | ||||||||
Non-current financial debt |
43,138 | 44,464 | 41,827 | |||||||||
Hedging instruments of non-current debt |
(1,236 | ) | (1,219 | ) | (1,275 | ) | ||||||
Cash and cash equivalents |
(20,570 | ) | (23,269 | ) | (25,051 | ) | ||||||
|
|
|
|
|
|
|||||||
Net debt |
29,042 | 26,586 | 26,816 | |||||||||
Shareholders equity Group share |
96,443 | 92,494 | 95,096 | |||||||||
Estimated dividend payable |
(3,250 | ) | (1,545 | ) | (2,988 | ) | ||||||
Non-controlling interests |
2,960 | 2,915 | 3,024 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted shareholders equity |
96,153 | 93,864 | 95,132 | |||||||||
Net-debt-to-equity ratio |
30.2 | % | 28.3 | % | 28.2 | % |
RETURN ON AVERAGE CAPITAL EMPLOYED
| Twelve months ended March 31, 2016 |
in millions of dollars |
Upstream | Refining & Chemicals |
Marketing & Services |
|||||||||
Adjusted net operating income |
3,913 | 4,917 | 1,630 | |||||||||
Capital employed at 03/31/2015(a) |
103,167 | 12,534 | 7,928 | |||||||||
Capital employed at 03/31/2016(a) |
106,517 | 12,505 | 8,800 | |||||||||
|
|
|
|
|
|
|||||||
ROACE |
3.7 | % | 39.3 | % | 19.5 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
| 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(a) |
100,497 | 13,451 | 8,825 | |||||||||
Capital employed at 12/31/2015(a) |
105,580 | 10,407 | 8,415 | |||||||||
|
|
|
|
|
|
|||||||
ROACE |
4.6 | % | 41.0 | % | 19.7 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
10
MAIN INDICATORS
Chart updated around the middle of the month following the end of each quarter.
/$ | ERMI(a) ($/t)(b) | Brent ($/b) | Average liquids price(c) ($/b) |
Average gas price ($/Mbtu)(c) |
||||||||||||||||
First quarter 2016 |
1.10 | 35.1 | 33.9 | 31.0 | 3.46 | |||||||||||||||
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 |
(a) | 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 Groups particular refinery configurations, product mix effects or other company-specific operating conditions. |
(b) | $1/t = $0.136/b. |
(c) | Consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting/underlifting position valued at market price. |
Disclaimer: data is based on TOTALs reporting, is not audited and is subject to change.
11
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) |
1st quarter 2016 |
4th quarter 2015 |
1st quarter 2015 |
|||||||||
Sales |
32,841 | 37,749 | 42,313 | |||||||||
Excise taxes |
(5,319 | ) | (5,457 | ) | (5,350 | ) | ||||||
Revenues from sales |
27,522 | 32,292 | 36,963 | |||||||||
Purchases, net of inventory variation |
(17,639 | ) | (21,874 | ) | (24,204 | ) | ||||||
Other operating expenses |
(6,136 | ) | (6,248 | ) | (6,272 | ) | ||||||
Exploration costs |
(194 | ) | (727 | ) | (637 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,680 | ) | (7,672 | ) | (3,872 | ) | ||||||
Other income |
500 | 833 | 1,621 | |||||||||
Other expense |
(70 | ) | (298 | ) | (442 | ) | ||||||
Financial interest on debt |
(274 | ) | (241 | ) | (262 | ) | ||||||
Financial income from marketable securities & cash equivalents |
10 | 25 | 31 | |||||||||
Cost of net debt |
(264 | ) | (216 | ) | (231 | ) | ||||||
Other financial income |
191 | 300 | 142 | |||||||||
Other financial expense |
(155 | ) | (171 | ) | (166 | ) | ||||||
Equity in net income (loss) of affiliates |
498 | 600 | 590 | |||||||||
Income taxes |
48 | 1,381 | (984 | ) | ||||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
1,621 | (1,800 | ) | 2,508 | ||||||||
|
|
|
|
|
|
|||||||
Group share |
1,606 | (1,626 | ) | 2,663 | ||||||||
Non-controlling interests |
15 | (174 | ) | (155 | ) | |||||||
|
|
|
|
|
|
|||||||
Earnings per share ($) |
0.67 | (0.72 | ) | 1.16 | ||||||||
|
|
|
|
|
|
|||||||
Fully-diluted earnings per share ($) |
0.67 | (0.71 | ) | 1.16 | ||||||||
|
|
|
|
|
|
(a) | Except for per share amounts. |
12
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) |
1st quarter 2016 |
4th quarter 2015 |
1st quarter 2015 |
|||||||||
Consolidated net income |
1,621 | (1,800 | ) | 2,508 | ||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
||||||||||||
Actuarial gains and losses |
(81 | ) | 358 | (95 | ) | |||||||
Tax effect |
32 | (140 | ) | (36 | ) | |||||||
Currency translation adjustment generated by the parent company |
3,641 | (2,171 | ) | (8,192 | ) | |||||||
|
|
|
|
|
|
|||||||
Items not potentially reclassifiable to profit and loss |
3,592 | (1,953 | ) | (8,323 | ) | |||||||
|
|
|
|
|
|
|||||||
Currency translation adjustment |
(1,944 | ) | 604 | 3,748 | ||||||||
Available for sale financial assets |
(10 | ) | 16 | 8 | ||||||||
Cash flow hedge |
98 | 4 | (130 | ) | ||||||||
Share of other comprehensive income of equity affiliates, net amount |
(1 | ) | (95 | ) | 1,042 | |||||||
Other |
3 | | 3 | |||||||||
Tax effect |
(24 | ) | (7 | ) | 37 | |||||||
|
|
|
|
|
|
|||||||
Items potentially reclassifiable to profit and loss |
(1,878 | ) | 522 | 4,708 | ||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (net amount) |
1,714 | (1,431 | ) | (3,615 | ) | |||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
3,335 | (3,231 | ) | (1,107 | ) | |||||||
|
|
|
|
|
|
|||||||
Group share |
3,308 | (3,033 | ) | (916 | ) | |||||||
Non-controlling interests |
27 | (198 | ) | (191 | ) |
13
CONSOLIDATED BALANCE SHEET
TOTAL
March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
||||||||||
(M$) |
(unaudited) |
|
(unaudited) |
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Intangible assets, net |
14,512 | 14,549 | 16,236 | |||||||||
Property, plant and equipment, net |
111,636 | 109,518 | 105,806 | |||||||||
Equity affiliates : investments and loans |
20,411 | 19,384 | 19,552 | |||||||||
Other investments |
1,413 | 1,241 | 1,325 | |||||||||
Hedging instruments of non-current financial debt |
1,236 | 1,219 | 1,275 | |||||||||
Deferred income taxes |
3,955 | 3,982 | 3,435 | |||||||||
Other non-current assets |
4,329 | 4,355 | 4,093 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current assets |
157,492 | 154,248 | 151,722 | |||||||||
|
|
|
|
|
|
|||||||
Current assets |
||||||||||||
Inventories, net |
13,887 | 13,116 | 15,393 | |||||||||
Accounts receivable, net |
12,220 | 10,629 | 15,458 | |||||||||
Other current assets |
15,827 | 15,843 | 14,576 | |||||||||
Current financial assets |
3,439 | 6,190 | 2,464 | |||||||||
Cash and cash equivalents |
20,570 | 23,269 | 25,051 | |||||||||
Assets classified as held for sale |
724 | 1,189 | 3,257 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
66,667 | 70,236 | 76,199 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
224,159 | 224,484 | 227,921 | |||||||||
LIABILITIES & SHAREHOLDERS EQUITY |
||||||||||||
Shareholders equity |
||||||||||||
Common shares |
7,709 | 7,670 | 7,519 | |||||||||
Paid-in surplus and retained earnings |
103,766 | 101,528 | 102,755 | |||||||||
Currency translation adjustment |
(10,447 | ) | (12,119 | ) | (10,830 | ) | ||||||
Treasury shares |
(4,585 | ) | (4,585 | ) | (4,348 | ) | ||||||
|
|
|
|
|
|
|||||||
Total shareholders equity - Group share |
96,443 | 92,494 | 95,096 | |||||||||
|
|
|
|
|
|
|||||||
Non-controlling interests |
2,960 | 2,915 | 3,024 | |||||||||
|
|
|
|
|
|
|||||||
Total shareholders equity |
99,403 | 95,409 | 98,120 | |||||||||
|
|
|
|
|
|
|||||||
Non-current liabilities |
||||||||||||
Deferred income taxes |
11,766 | 12,360 | 13,557 | |||||||||
Employee benefits |
3,984 | 3,774 | 4,483 | |||||||||
Provisions and other non-current liabilities |
17,607 | 17,502 | 17,050 | |||||||||
Non-current financial debt |
43,138 | 44,464 | 41,827 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current liabilities |
76,495 | 78,100 | 76,917 | |||||||||
|
|
|
|
|
|
|||||||
Current liabilities |
||||||||||||
Accounts payable |
20,887 | 20,928 | 22,043 | |||||||||
Other creditors and accrued liabilities |
15,938 | 16,884 | 15,750 | |||||||||
Current borrowings |
10,858 | 12,488 | 13,604 | |||||||||
Other current financial liabilities |
208 | 171 | 202 | |||||||||
Liabilities directly associated with the assets classified as held for sale |
370 | 504 | 1,285 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
48,261 | 50,975 | 52,884 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities & shareholders equity |
224,159 | 224,484 | 227,921 |
14
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) |
1st quarter 2016 |
4th quarter 2015 |
1st quarter 2015 |
|||||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||||||
Consolidated net income |
1,621 | (1,800 | ) | 2,508 | ||||||||
Depreciation, depletion, amortization and impairment |
2,735 | 8,278 | 4,424 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes |
(268 | ) | (1,862 | ) | (446 | ) | ||||||
Impact of coverage of pension benefit plans |
| | | |||||||||
(Gains) losses on disposals of assets |
(367 | ) | (665 | ) | (1,357 | ) | ||||||
Undistributed affiliates equity earnings |
(236 | ) | 39 | (68 | ) | |||||||
(Increase) decrease in working capital |
(1,545 | ) | 937 | (476 | ) | |||||||
Other changes, net |
(59 | ) | (89 | ) | (198 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash flow from operating activities |
1,881 | 4,838 | 4,387 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||||||
Intangible assets and property, plant and equipment additions |
(4,146 | ) | (5,919 | ) | (7,956 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired |
(133 | ) | (42 | ) | (7 | ) | ||||||
Investments in equity affiliates and other securities |
(57 | ) | (80 | ) | (53 | ) | ||||||
Increase in non-current loans |
(572 | ) | (553 | ) | (793 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenditures |
(4,908 | ) | (6,594 | ) | (8,809 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment |
792 | 1,437 | 959 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold |
| 58 | 1,758 | |||||||||
Proceeds from disposals of non-current investments |
93 | 606 | 22 | |||||||||
Repayment of non-current loans |
100 | 196 | 245 | |||||||||
|
|
|
|
|
|
|||||||
Total divestments |
985 | 2,297 | 2,984 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow used in investing activities |
(3,923 | ) | (4,297 | ) | (5,825 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||||||
Issuance (repayment) of shares: |
||||||||||||
- Parent company shareholders |
| 31 | 12 | |||||||||
- Treasury shares |
| | | |||||||||
Dividends paid: |
||||||||||||
- Parent company shareholders |
(954 | ) | (592 | ) | (1,566 | ) | ||||||
- Non-controlling interests |
(3 | ) | (3 | ) | (2 | ) | ||||||
Issuance of perpetual subordinated notes |
| | 5,616 | |||||||||
Payments on perpetual subordinated notes |
(133 | ) | | | ||||||||
Other transactions with non-controlling interests |
| 8 | | |||||||||
Net issuance (repayment) of non-current debt |
154 | 2,039 | 136 | |||||||||
Increase (decrease) in current borrowings |
(3,027 | ) | (531 | ) | 423 | |||||||
Increase (decrease) in current financial assets and liabilities |
2,746 | (3,320 | ) | (1,022 | ) | |||||||
Cash flow used in financing activities |
(1,217 | ) | (2,368 | ) | 3,597 | |||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and cash equivalents |
(3,259 | ) | (1,827 | ) | 2,159 | |||||||
Effect of exchange rates |
560 | (762 | ) | (2,289 | ) | |||||||
Cash and cash equivalents at the beginning of the period |
23,269 | 25,858 | 25,181 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period |
20,570 | 23,269 | 25,051 | |||||||||
|
|
|
|
|
|
15
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
TOTAL
(unaudited)
Common shares issued |
Paid-in surplus and retained earnings |
Currency translation adjustment |
Treasury shares | Shareholders equity - Group share |
Non- controlling interests |
Total shareholders equity |
||||||||||||||||||||||||||||||
(M$) |
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||
As of January 1, 2015 |
2,385,267,525 | 7,518 | 94,646 | (7,480 | ) | (109,361,413 | ) | (4,354 | ) | 90,330 | 3,201 | 93,531 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income of the first quarter 2015 |
| | 2,663 | | | | 2,663 | (155 | ) | 2,508 | ||||||||||||||||||||||||||
Other comprehensive Income |
| | (229 | ) | (3,350 | ) | | | (3,579 | ) | (36 | ) | (3,615 | ) | ||||||||||||||||||||||
Comprehensive Income |
| | 2,434 | (3,350 | ) | | | (916 | ) | (191 | ) | (1,107 | ) | |||||||||||||||||||||||
Dividend |
| | | | | | | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Issuance of common shares |
288,256 | 1 | 11 | | | | 12 | | 12 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (6 | ) | | 102,560 | 6 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 50 | | | | 50 | | 50 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | 5,616 | | | | 5,616 | | 5,616 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (16 | ) | | | | (16 | ) | | (16 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | (15 | ) | | | | (15 | ) | 15 | | |||||||||||||||||||||||||
Other items |
| | 35 | | | | 35 | 1 | 36 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of March 31, 2015 |
2,385,555,781 | 7,519 | 102,755 | (10,830 | ) | (109,258,853 | ) | (4,348 | ) | 95,096 | 3,024 | 98,120 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income from April 1 to December 31, 2015 |
| | 2,424 | | | | 2,424 | (146 | ) | 2,278 | ||||||||||||||||||||||||||
Other comprehensive Income |
| | 414 | (1,289 | ) | | | (875 | ) | (45 | ) | (920 | ) | |||||||||||||||||||||||
Comprehensive Income |
| | 2,838 | (1,289 | ) | | | 1,549 | (191 | ) | 1,358 | |||||||||||||||||||||||||
Dividend |
| | (6,303 | ) | | | | (6,303 | ) | (98 | ) | (6,401 | ) | |||||||||||||||||||||||
Issuance of common shares |
54,502,102 | 151 | 2,148 | | | | 2,299 | | 2,299 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | (4,711,935 | ) | (237 | ) | (237 | ) | | (237 | ) | |||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 3,030 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 51 | | | | 51 | | 51 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | | | | | | | | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (98 | ) | | | | (98 | ) | | (98 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | 38 | | | | 38 | 49 | 87 | |||||||||||||||||||||||||||
Other items |
| | 99 | | | | 99 | 131 | 230 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
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 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income of the first quarter 2016 |
| | 1,606 | | | | 1,606 | 15 | 1,621 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | 30 | 1,672 | | | 1,702 | 12 | 1,714 | |||||||||||||||||||||||||||
Comprehensive Income |
| | 1,636 | 1,672 | | | 3,308 | 27 | 3,335 | |||||||||||||||||||||||||||
Dividend |
| | | | | | | (3 | ) | (3 | ) | |||||||||||||||||||||||||
Issuance of common shares |
13,972,093 | 39 | 573 | | | | 612 | | 612 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 1,230 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 25 | | | | 25 | | 25 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | | | | | | | | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (33 | ) | | | | (33 | ) | | (33 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | (11 | ) | | | | (11 | ) | 11 | | |||||||||||||||||||||||||
Other items |
| | 48 | | | | 48 | 10 | 58 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of March 31, 2016 |
2,454,029,976 | 7,709 | 103,766 | (10,447 | ) | (113,966,528 | ) | (4,585 | ) | 96,443 | 2,960 | 99,403 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Treasury shares related to the restricted stock grants. |
16
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st quarter
2016 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,466 | 13,938 | 15,433 | 4 | | 32,841 | ||||||||||||||||||
Intersegment sales |
3,262 | 4,148 | 132 | 70 | (7,612 | ) | | |||||||||||||||||
Excise taxes |
| (961 | ) | (4,358 | ) | | | (5,319 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
6,728 | 17,125 | 11,207 | 74 | (7,612 | ) | 27,522 | |||||||||||||||||
Operating expenses |
(4,798 | ) | (15,782 | ) | (10,781 | ) | (220 | ) | 7,612 | (23,969 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,247 | ) | (253 | ) | (172 | ) | (8 | ) | | (2,680 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(317 | ) | 1,090 | 254 | (154 | ) | | 873 | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
670 | 177 | 14 | 103 | | 964 | ||||||||||||||||||
Tax on net operating income |
313 | (276 | ) | (80 | ) | 37 | | (6 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
666 | 991 | 188 | (14 | ) | | 1,831 | |||||||||||||||||
Net cost of net debt |
(210 | ) | ||||||||||||||||||||||
Non-controlling interests |
(15 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,606 | |||||||||||||||||||||||
1st quarter 2016
(adjustments) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(126 | ) | | | | | (126 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(126 | ) | | | | | (126 | ) | ||||||||||||||||
Operating expenses |
(333 | ) | (207 | ) | (77 | ) | | | (617 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(459 | ) | (207 | ) | (77 | ) | | | (743 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
329 | | (17 | ) | | | 312 | |||||||||||||||||
Tax on net operating income |
298 | 70 | 30 | | | 398 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
168 | (137 | ) | (64 | ) | | | (33 | ) | |||||||||||||||
Net cost of net debt |
(6 | ) | ||||||||||||||||||||||
Non-controlling interests |
9 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(30 | ) | ||||||||||||||||||||||
(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 |
| (205 | ) | (77 | ) | | ||||||||||||||||||
On net operating income |
| (133 | ) | (50 | ) | | ||||||||||||||||||
1st quarter 2016
(adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,592 | 13,938 | 15,433 | 4 | | 32,967 | ||||||||||||||||||
Intersegment sales |
3,262 | 4,148 | 132 | 70 | (7,612 | ) | | |||||||||||||||||
Excise taxes |
| (961 | ) | (4,358 | ) | | | (5,319 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
6,854 | 17,125 | 11,207 | 74 | (7,612 | ) | 27,648 | |||||||||||||||||
Operating expenses |
(4,465 | ) | (15,575 | ) | (10,704 | ) | (220 | ) | 7,612 | (23,352 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,247 | ) | (253 | ) | (172 | ) | (8 | ) | | (2,680 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
142 | 1,297 | 331 | (154 | ) | | 1,616 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
341 | 177 | 31 | 103 | | 652 | ||||||||||||||||||
Tax on net operating income |
15 | (346 | ) | (110 | ) | 37 | | (404 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
498 | 1,128 | 252 | (14 | ) | | 1,864 | |||||||||||||||||
Net cost of net debt |
(204 | ) | ||||||||||||||||||||||
Non-controlling interests |
(24 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
1,636 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.68 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st quarter
2016 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
4,237 | 259 | 390 | 22 | | 4,908 | ||||||||||||||||||
Total divestments |
915 | 29 | 37 | 4 | | 985 | ||||||||||||||||||
Cash flow from operating activities |
2,113 | (421 | ) | 240 | (51 | ) | | 1,881 |
17
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
4th quarter
2015 |
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) |
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) |
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 |
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 |
18
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st quarter
2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,225 | 17,464 | 19,620 | 4 | | 42,313 | ||||||||||||||||||
Intersegment sales |
4,384 | 6,967 | 272 | 52 | (11,675 | ) | | |||||||||||||||||
Excise taxes |
| (933 | ) | (4,417 | ) | | | (5,350 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,609 | 23,498 | 15,475 | 56 | (11,675 | ) | 36,963 | |||||||||||||||||
Operating expenses |
(5,969 | ) | (21,717 | ) | (14,863 | ) | (239 | ) | 11,675 | (31,113 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(3,441 | ) | (252 | ) | (174 | ) | (5 | ) | | (3,872 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
199 | 1,529 | 438 | (188 | ) | | 1,978 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
769 | 762 | (80 | ) | 294 | | 1,745 | |||||||||||||||||
Tax on net operating income |
(368 | ) | (446 | ) | (131 | ) | (82 | ) | | (1,027 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
600 | 1,845 | 227 | 24 | | 2,696 | ||||||||||||||||||
Net cost of net debt |
(188 | ) | ||||||||||||||||||||||
Non-controlling interests |
155 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,663 | |||||||||||||||||||||||
1st quarter 2015
(adjustments) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(146 | ) | | | | | (146 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(146 | ) | | | | | (146 | ) | ||||||||||||||||
Operating expenses |
(140 | ) | 194 | (7 | ) | | | 47 | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,046 | ) | | | | | (1,046 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,332 | ) | 194 | (7 | ) | | | (1,145 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
136 | 661 | (89 | ) | | | 708 | |||||||||||||||||
Tax on net operating income |
437 | (110 | ) | 2 | | | 329 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(759 | ) | 745 | (94 | ) | | | (108 | ) | |||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
169 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
61 | |||||||||||||||||||||||
(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 |
| 235 | (7 | ) | | |||||||||||||||||||
On net operating income |
| 150 | (5 | ) | | |||||||||||||||||||
1st quarter 2015
(adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,371 | 17,464 | 19,620 | 4 | | 42,459 | ||||||||||||||||||
Intersegment sales |
4,384 | 6,967 | 272 | 52 | (11,675 | ) | | |||||||||||||||||
Excise taxes |
| (933 | ) | (4,417 | ) | | | (5,350 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,755 | 23,498 | 15,475 | 56 | (11,675 | ) | 37,109 | |||||||||||||||||
Operating expenses |
(5,829 | ) | (21,911 | ) | (14,856 | ) | (239 | ) | 11,675 | (31,160 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,395 | ) | (252 | ) | (174 | ) | (5 | ) | | (2,826 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,531 | 1,335 | 445 | (188 | ) | | 3,123 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
633 | 101 | 9 | 294 | | 1,037 | ||||||||||||||||||
Tax on net operating income |
(805 | ) | (336 | ) | (133 | ) | (82 | ) | | (1,356 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,359 | 1,100 | 321 | 24 | | 2,804 | ||||||||||||||||||
Net cost of net debt |
(188 | ) | ||||||||||||||||||||||
Non-controlling interests |
(14 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,602 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.13 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st quarter
2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
8,151 | 434 | 215 | 9 | | 8,809 | ||||||||||||||||||
Total divestments |
1,162 | 1,766 | 52 | 4 | | 2,984 | ||||||||||||||||||
Cash flow from operating activities |
3,525 | 314 | 644 | (96 | ) | | 4,387 |
19
Consolidated Financial Statements as of March 31, 2016
Adjustment items by business segment
(M$)
ADJUSTMENTS TO OPERATING INCOME
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
1st quarter 2016 |
Inventory valuation effect |
| (205 | ) | (77 | ) | | (282 | ) | |||||||||||||
Effect of changes in fair value |
3 | | | | 3 | |||||||||||||||||
Restructuring charges |
(11 | ) | | | | (11 | ) | |||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Other items |
(451 | ) | (2 | ) | | | (453 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(459 | ) | (207 | ) | (77 | ) | | (743 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2015 |
Inventory valuation effect |
| 235 | (7 | ) | | 228 | |||||||||||||||
Effect of changes in fair value |
4 | | | | 4 | |||||||||||||||||
Restructuring charges |
| | | | | |||||||||||||||||
Asset impairment charges |
(1,046 | ) | | | | (1,046 | ) | |||||||||||||||
Other items |
(290 | ) | (41 | ) | | | (331 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,332 | ) | 194 | (7 | ) | | (1,145 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ADJUSTMENTS TO NET INCOME, GROUP SHARE
|
| |||||||||||||||||||||
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
1st quarter 2016 |
Inventory valuation effect |
| (133 | ) | (50 | ) | | (183 | ) | |||||||||||||
Effect of changes in fair value |
3 | | | | 3 | |||||||||||||||||
Restructuring charges |
(2 | ) | | | | (2 | ) | |||||||||||||||
Asset impairment charges |
| | | | | |||||||||||||||||
Gains (losses) on disposals of assets |
358 | | | | 358 | |||||||||||||||||
Other items |
(191 | ) | (4 | ) | (11 | ) | | (206 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
168 | (137 | ) | (61 | ) | | (30 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2015 |
Inventory valuation effect |
| 150 | 4 | | 154 | ||||||||||||||||
Effect of changes in fair value |
2 | | | | 2 | |||||||||||||||||
Restructuring charges |
| (26 | ) | (5 | ) | | (31 | ) | ||||||||||||||
Asset impairment charges |
(1,092 | ) | | (17 | ) | | (1,109 | ) | ||||||||||||||
Gains (losses) on disposals of assets |
328 | 674 | | | 1,002 | |||||||||||||||||
Other items |
140 | (53 | ) | (44 | ) | | 43 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(622 | ) | 745 | (62 | ) | | 61 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
20
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
1st quarter 2016 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
32,967 | (126 | ) | 32,841 | ||||||||
Excise taxes |
(5,319 | ) | | (5,319 | ) | |||||||
Revenues from sales |
27,648 | (126 | ) | 27,522 | ||||||||
Purchases, net of inventory variation |
(17,357 | ) | (282 | ) | (17,639 | ) | ||||||
Other operating expenses |
(5,801 | ) | (335 | ) | (6,136 | ) | ||||||
Exploration costs |
(194 | ) | | (194 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,680 | ) | | (2,680 | ) | |||||||
Other income |
171 | 329 | 500 | |||||||||
Other expense |
(54 | ) | (16 | ) | (70 | ) | ||||||
Financial interest on debt |
(268 | ) | (6 | ) | (274 | ) | ||||||
Financial income from marketable securities & cash equivalents |
10 | | 10 | |||||||||
Cost of net debt |
(258 | ) | (6 | ) | (264 | ) | ||||||
Other financial income |
191 | | 191 | |||||||||
Other financial expense |
(155 | ) | | (155 | ) | |||||||
Equity in net income (loss) of affiliates |
499 | (1 | ) | 498 | ||||||||
Income taxes |
(350 | ) | 398 | 48 | ||||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
1,660 | (39 | ) | 1,621 | ||||||||
Group share |
1,636 | (30 | ) | 1,606 | ||||||||
Non-controlling interests |
24 | (9 | ) | 15 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
1st quarter 2015 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
42,459 | (146 | ) | 42,313 | ||||||||
Excise taxes |
(5,350 | ) | | (5,350 | ) | |||||||
Revenues from sales |
37,109 | (146 | ) | 36,963 | ||||||||
Purchases, net of inventory variation |
(24,432 | ) | 228 | (24,204 | ) | |||||||
Other operating expenses |
(6,176 | ) | (96 | ) | (6,272 | ) | ||||||
Exploration costs |
(552 | ) | (85 | ) | (637 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,826 | ) | (1,046 | ) | (3,872 | ) | ||||||
Other income |
526 | 1,095 | 1,621 | |||||||||
Other expense |
(99 | ) | (343 | ) | (442 | ) | ||||||
Financial interest on debt |
(262 | ) | | (262 | ) | |||||||
Financial income from marketable securities & cash equivalents |
31 | | 31 | |||||||||
Cost of net debt |
(231 | ) | | (231 | ) | |||||||
Other financial income |
142 | | 142 | |||||||||
Other financial expense |
(166 | ) | | (166 | ) | |||||||
Equity in net income (loss) of affiliates |
634 | (44 | ) | 590 | ||||||||
Income taxes |
(1,313 | ) | 329 | (984 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,616 | (108 | ) | 2,508 | ||||||||
Group share |
2,602 | 61 | 2,663 | |||||||||
Non-controlling interests |
14 | (169 | ) | (155 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
21
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST THREE MONTHS OF 2016
(unaudited)
1) Accounting policies
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of March 31, 2016 are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.
The accounting policies applied for the consolidated financial statements as of March 31, 2016 do not differ significantly from those applied for the consolidated financial statements as of December 31, 2015 which have been prepared on the basis of IFRS (International Financial Reporting Standards) as adopted by the European Union and IFRS as issued by the IASB (International Accounting Standards Board). New texts or amendments which were mandatory for the periods beginning on or after January 1, 2016 did not have a material impact on the Groups consolidated financial statements as of March 31, 2016.
The preparation of financial statements in accordance with IFRS requires the executive management to make estimates, judgments and assumptions considered reasonable, which affect the Consolidated Financial Statements and their notes. Different estimates, assumptions and judgments could have significant impacts on the Consolidated Financial Statements and their notes and consequently the final achievements could also be different from the amounts included in the Consolidated Financial Statements.
These estimates, assumptions and judgments are regularly reviewed if circumstances change or as a result of new information or changes in the Groups experience; they could therefore be significantly changed later.
The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, the impairment of assets, the employee benefits, the asset retirement obligations and the income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2015.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.
2) Changes in the Group structure, main acquisitions and divestments
| Upstream |
| In March 2016, TOTAL finalized the sale to North Sea Midstream Partners of all its interests in the FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal in the United Kingdom. |
| Marketing & Services |
| In January 2016, TOTAL finalized the acquisition of a majority 70% interest in the leading Dominican fuel retailer. |
3) Adjustment items
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL and which is reviewed by the main operational decision-making body of the Group, namely the Executive committee.
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
22
Adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions qualified as special items are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments performance and facilitate the comparability of the segments performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment item reflects for some transactions differences between internal measure of performance used by TOTALs management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Groups internal economic performance. IFRS precludes recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
The detail of the adjustment items is presented in the table below.
23
ADJUSTMENTS TO OPERATING INCOME
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
1st quarter 2016 |
Inventory valuation effect | | (205) | (77) | | (282) | ||||||||||||||||
Effect of changes in fair value | 3 | | | | 3 | |||||||||||||||||
Restructuring charges | (11) | | | | (11) | |||||||||||||||||
Asset impairment charges | | | | | | |||||||||||||||||
Other items | (451) | (2) | | | (453) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(459) | (207) | (77) | | (743) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2015 |
Inventory valuation effect | | 235 | (7) | | 228 | ||||||||||||||||
Effect of changes in fair value | 4 | | | | 4 | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (1,046) | | | | (1,046) | |||||||||||||||||
Other items | (290) | (41) | | | (331) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,332) | 194 | (7) | | (1,145) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
1st quarter 2016 |
Inventory valuation effect | | (133) | (50) | | (183) | ||||||||||||||||
Effect of changes in fair value | 3 | | | | 3 | |||||||||||||||||
Restructuring charges | (2) | | | | (2) | |||||||||||||||||
Asset impairment charges | | | | | | |||||||||||||||||
Gains (losses) on disposals of assets | 358 | | | | 358 | |||||||||||||||||
Other items | (191) | (4) | (11) | | (206) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
168 | (137) | (61) | | (30) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2015 |
Inventory valuation effect | | 150 | 4 | | 154 | ||||||||||||||||
Effect of changes in fair value | 2 | | | | 2 | |||||||||||||||||
Restructuring charges | | (26) | (5) | | (31) | |||||||||||||||||
Asset impairment charges | (1,092) | | (17) | | (1,109) | |||||||||||||||||
Gains (losses) on disposals of assets | 328 | 674 | | | 1,002 | |||||||||||||||||
Other items | 140 | (53) | (44) | | 43 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(622) | 745 | (62) | | 61 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
In the first quarter of 2016, the heading Other items includes, in the Upstream segment, charges related to onerous contracts in the United States of America and charges related to the security situation in Yemen ($(451) million in operating income, $(313) million in net income, Group share) as well as the impact ($122 million in net income, Group share) on the deferred tax position of the removal, passed by Parliament, of the Petroleum Revenue Tax in the United Kingdom from January 1, 2016.
The heading Gains (losses) on disposals of assets includes the sale of TOTALs interests in the FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal in the United Kingdom.
24
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of March 31, 2016, TOTAL S.A. holds 13,635,260 of its own shares, representing 0.56% of its share capital, detailed as follows:
| 13,602,295 shares allocated to TOTAL share grant plans for Group employees; and |
| 32,965 shares intended to be allocated to new TOTAL share purchase option plans or to new share grant plans. |
These shares are deducted from the consolidated shareholders equity.
TOTAL shares held by Group subsidiaries
As of March 31, 2016, TOTAL S.A. holds indirectly through its subsidiaries 100,331,268 of its own shares, representing 4.09% of its share capital, detailed as follows:
| 2,023,672 shares held by a consolidated subsidiary, Total Nucléaire, 100% indirectly controlled by TOTAL S.A.; and |
| 98,307,596 shares held by subsidiaries of Elf Aquitaine (Financière Valorgest, Sogapar and Fingestval), 100% indirectly controlled by TOTAL S.A. |
These shares are deducted from the consolidated shareholders equity.
Dividend
For the fiscal year 2015, TOTAL S.A. already paid three quarterly interim dividends:
| Payment of the first interim dividend for the fiscal year 2015 of 0.61 per share, decided by the Board of Directors on September 22, 2015 has been done in cash or in shares on October 21, 2015 (the ex-dividend date was September 28, 2015). The number of shares issued in lieu of the cash dividend was based on the dividend amount divided by 35.63 per share, equal to 90% of the average Euronext Paris opening price of the shares for the 20 trading days preceding the Board of Directors meeting, reduced by the amount of the first interim dividend. On October 21, 2015, 24,231,876 shares have been issued at a price of 35.63 per share. |
| Payment of the second interim dividend for the fiscal year 2015 of 0.61 per share, decided by the Board of Directors on December 16, 2015 has been done in cash or in shares on January 14, 2016 (the ex-dividend date was December 21, 2015). The number of shares issued in lieu of the cash dividend was based on the dividend amount divided by 39.77 per share, equal to 90% of the average Euronext Paris opening price of the shares for the 20 trading days preceding the Board of Directors meeting, reduced by the amount of the second interim dividend. On January 14, 2016, 13,945,709 shares have been issued at a price of 39.77 per share. |
| Payment of the third interim dividend for the fiscal year 2015 of 0.61 per share, decided by the Board of Directors on March 15, 2016 has been done in cash or in shares on April 12, 2016 (the ex-dividend date was March 21, 2016). The number of shares issued in lieu of the cash dividend was based on the dividend amount divided by 36.24 per share, equal to 90% of the average Euronext Paris opening price of the shares for the 20 trading days preceding the Board of Directors meeting, reduced by the amount of the third interim dividend. On April 12, 2016, 24,752,821 shares have been issued at a price of 36.24 per share. |
A resolution will be submitted at the shareholders meeting on May 24, 2016 to pay a dividend of 2.44 per share for the 2015 fiscal year, i.e. a balance of 0.61 per share to be distributed after deducting the three quarterly interim dividends of 0.61 per share that have already been paid.
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to 0.65 per share for the 1st quarter 2016 ((0.65) per share for the 4th quarter 2015 and 1.03 per share for the 1st quarter 2015). Diluted earnings per share calculated using the same method amounted to 0.64 per share for the 1st quarter 2016 ((0.65) per share for the 4th quarter 2015 and 1.03 per share for the 1st quarter 2015).
Earnings per share includes the effects of the remuneration of perpetual subordinated notes.
25
Other comprehensive income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M$) |
1st quarter 2016 | 1st quarter 2015 |
||||||||||||||
Actuarial gains and losses |
(81 | ) | (95 | ) | ||||||||||||
Tax effect |
32 | (36 | ) | |||||||||||||
Currency translation adjustment generated by the parent company |
3,641 | (8,192 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items not potentially reclassifiable to profit and loss |
3,592 | (8,323 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Currency translation adjustment |
(1,944 | ) | 3,748 | |||||||||||||
- unrealized gain/(loss) of the period |
(1,853 | ) | 4,032 | |||||||||||||
- less gain/(loss) included in net income |
91 | 284 | ||||||||||||||
Available for sale financial assets |
(10 | ) | 8 | |||||||||||||
- unrealized gain/(loss) of the period |
(10 | ) | 8 | |||||||||||||
- less gain/(loss) included in net income |
| | ||||||||||||||
Cash flow hedge |
98 | (130 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
160 | (441 | ) | |||||||||||||
- less gain/(loss) included in net income |
62 | (311 | ) | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(1 | ) | 1,042 | |||||||||||||
- unrealized gain/(loss) of the period |
1 | 1,042 | ||||||||||||||
- less gain/(loss) included in net income |
2 | | ||||||||||||||
Other |
3 | 3 | ||||||||||||||
Tax effect |
(24 | ) | 37 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items potentially reclassifiable to profit and loss |
(1,878 | ) | 4,708 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net amount |
1,714 | (3,615 | ) | |||||||||||||
|
|
|
|
|
|
|
|
26
Tax effects relating to each component of other comprehensive income are as follows:
1st quarter 2016 | 1st quarter 2015 | |||||||||||||||||||||||
(M$) |
Pre-tax amount |
Tax effect | Net amount | Pre-tax amount |
Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses |
(81 | ) | 32 | (49 | ) | (95 | ) | (36 | ) | (131 | ) | |||||||||||||
Currency translation adjustment generated by the parent company |
3,641 | | 3,641 | (8,192 | ) | | (8,192 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items not potentially reclassifiable to profit and loss |
3,560 | 32 | 3,592 | (8,287 | ) | (36 | ) | (8,323 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment |
(1,944 | ) | | (1,944 | ) | 3,748 | | 3,748 | ||||||||||||||||
Available for sale financial assets |
(10 | ) | 4 | (6 | ) | 8 | 1 | 9 | ||||||||||||||||
Cash flow hedge |
98 | (28 | ) | 70 | (130 | ) | 36 | (94 | ) | |||||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
(1 | ) | | (1 | ) | 1,042 | | 1,042 | ||||||||||||||||
Other |
3 | | 3 | 3 | | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items potentially reclassifiable to profit and loss |
(1,854 | ) | (24 | ) | (1,878 | ) | 4,671 | 37 | 4,708 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income |
1,706 | 8 | 1,714 | (3,616 | ) | 1 | (3,615 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
5) Financial debt
The Group did not issue any bond, during the first three months of 2016.
The Group reimbursed bonds during the first three months of 2016:
| Bond 6.50% 2011-2016 (150 million AUD) |
| Bond 2.30% 2010-2016 (1,000 million USD) |
| Bond 0.75% 2012-2016 (750 million USD) |
| Bond US Libor 3 months + 38 bp 2013-2016 (1,000 million USD) |
| Bond 2.375% 2006-2016 (500 million CHF) |
| Bond 2.385% 2009-2016 (150 million CHF) |
In the context of its active cash management, the Group may temporarily increase its current borrowings, particularly in the form of commercial paper. The changes in current borrowings, cash and cash equivalents and current financial assets resulting from this cash management in the quarterly financial statements are not necessarily representative of a longer-term position.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments. There were no major changes concerning transactions with related parties during the first three months of 2016.
27
7) Other risks and contingent liabilities
TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group.
Alitalia
In the Marketing & Services segment, a civil proceeding was initiated in Italy, in 2013, against TOTAL S.A. and its subsidiary Total Aviazione Italia Srl before the competent Italian civil court. The plaintiff claims against TOTAL S.A., its subsidiary and other third parties, damages that it estimates to be nearly 908 million. This proceeding follows practices that had been condemned by the Italian competition authority in 2006. The parties have exchanged preliminary findings. The existence and the assessment of the alleged damages in this procedure involving multiple defendants remain contested.
Blue Rapid and the Russian Olympic Committee Russian regions and Interneft
Blue Rapid, a Panamanian company, and the Russian Olympic Committee filed a claim for damages with the Paris Commercial Court against Elf Aquitaine, alleging a so-called non-completion by a former subsidiary of Elf Aquitaine of a contract related to an exploration and production project in Russia negotiated in the early 1990s. Elf Aquitaine believed this claim to be unfounded and opposed it. On January 12, 2009, the Commercial Court of Paris rejected Blue Rapids claim against Elf Aquitaine and found that the Russian Olympic Committee did not have standing in the matter. Blue Rapid and the Russian Olympic Committee appealed this decision. On June 30, 2011, the Court of Appeal of Paris dismissed as inadmissible the claim of Blue Rapid and the Russian Olympic Committee against Elf Aquitaine, notably on the grounds of the contract having lapsed. The judgment of the Court of Appeals of Paris is now final and binding following two decisions issued on February 18, 2016 by the French Supreme Court to put an end to this proceeding.
In connection with the same facts, and fifteen years after the aforementioned exploration and production contract was rendered null and void (caduc), a Russian company, which was held not to be the contracting party to the contract, and two regions of the Russian Federation that were not even parties to the contract, launched an arbitration procedure against the aforementioned former subsidiary of Elf Aquitaine that was liquidated in 2005, claiming alleged damages of $22.4 billion. For the same reasons as those successfully adjudicated by Elf Aquitaine against Blue Rapid and the Russian Olympic Committee, the Group considers this claim to be unfounded as a matter of law and fact.
The Group has lodged a criminal complaint to denounce the fraudulent claim of which the Group believes it is a victim and, has taken and reserved its rights to take other actions and measures to defend its interests.
FERC
The Office of Enforcement of the U.S. Federal Energy Regulatory Commission (FERC) has begun investigation in connection with the natural gas trading activities of TOTAL Gas & Power North America, Inc, an American subsidiary of the Group. The investigation covers transactions made by the Groups subsidiary between June 2009 and June 2012 on the natural gas market. TOTAL Gas & Power North America, Inc received a Notice of Alleged Violations of the FERC on September 21, 2015.
The Groups subsidiary is cooperating in the investigation with the U.S. authorities, while contesting the claims brought against it.
Russia
Since July 2014, the United States of America and the European community have adopted economic sanctions against certain Russian persons and entities, including various entities operating in the financial, energy and defense sectors, in response to the situation in Ukraine.
Among other things, the United States has adopted economic sanctions targeting OAO Novatek1 (Novatek), as well as entities in which Novatek (individually or with other similarly targeted persons or entities collectively) owns an interest of at least 50%, including OAO Yamal LNG2 (Yamal LNG).
These sanctions prohibit U.S. persons from transacting in, providing financing for or otherwise dealing in debt issued by these entities after July 16, 2014 of greater than 90 days maturity. Consequently, the use of the U.S. dollar for such financing, including for Yamal LNG, is effectively prohibited.
1 | A Russian company listed on stock exchanges in Moscow and London and in which the Group held an interest of 18.9% as of December 31, 2015. |
2 | A company jointly owned by Novatek (50.1%), Total E&P Yamal (20%), CNODC (20%), a subsidiary of China National Petroleum Corporation (CNPC) and Silk Road Fund (9.9%). |
28
As a result, the financing plan for the Yamal LNG project is being reviewed, and the projects partners are engaged in efforts to develop a financing plan in compliance with the applicable regulations.
The economic sanctions initially adopted by the European Union in 2014 and subsequently extended do not materially affect TOTALs activities in Russia. TOTAL has been formally authorized to continue all of its activities in Russia (in the Kharyaga field as operator, and in the Termokarstovoye gas field and Yamal LNG project in which the Group holds interests) by the French government which is the competent authority for granting authorization under EU sanctions regime.
TOTALs activities in Russia are also not materially affected by restrictive measures adopted by the United States in August 2015 imposing export controls and restrictions relating to the export of certain goods, services, and technologies destined for projects located in Russia in the field of oil exploration.
With respect to the exploration project in the Bazhenov play (tight oil) in western Siberia, which has been suspended since 2014, TOTAL signed in July 2015 an agreement transferring the exploration licenses it held in the play to OAO Lukoil. This agreement also sets out the conditions under which TOTAL and OAO Lukoil could potentially resume their joint activities in Russia.
TOTAL continues to monitor the different international economic sanctions with respect to its activities in Russia.
In January 2016, TOTAL signed an agreement to sell 50% of its interest in the Kharyaga field and transfer the operatorship to Zarubezhneft. After the sale, which is expected to be completed in 2016, TOTALs interest in the Kharyaga field will be 20%.
As of December 31, 2015, the Group held 19% of its proved reserves in Russia.
Yemen
Due to the further deterioration in the security situation in the vicinity of its Balhaf site, the company Yemen LNG, in which the Group holds a 39.62% stake, decided to stop its commercial LNG production and export activities. The plant is in a preservation mode and no expatriate personnel remain on site. As a consequence of this situation, Yemen LNG declared Force Majeure to its various stakeholders in early April 2015.
29
8) Information by business segment
1st quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,466 | 13,938 | 15,433 | 4 | | 32,841 | ||||||||||||||||||
Intersegment sales |
3,262 | 4,148 | 132 | 70 | (7,612 | ) | | |||||||||||||||||
Excise taxes |
| (961 | ) | (4,358 | ) | | | (5,319 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
6,728 | 17,125 | 11,207 | 74 | (7,612 | ) | 27,522 | |||||||||||||||||
Operating expenses |
(4,798 | ) | (15,782 | ) | (10,781 | ) | (220 | ) | 7,612 | (23,969 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,247 | ) | (253 | ) | (172 | ) | (8 | ) | | (2,680 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(317 | ) | 1,090 | 254 | (154 | ) | | 873 | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
670 | 177 | 14 | 103 | | 964 | ||||||||||||||||||
Tax on net operating income |
313 | (276 | ) | (80 | ) | 37 | | (6 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
666 | 991 | 188 | (14 | ) | | 1,831 | |||||||||||||||||
Net cost of net debt |
(210 | ) | ||||||||||||||||||||||
Non-controlling interests |
(15 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,606 |
1st quarter 2016 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(126 | ) | | | | | (126 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(126 | ) | | | | | (126 | ) | ||||||||||||||||
Operating expenses |
(333 | ) | (207 | ) | (77 | ) | | | (617 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(459 | ) | (207 | ) | (77 | ) | | | (743 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
329 | | (17 | ) | | | 312 | |||||||||||||||||
Tax on net operating income |
298 | 70 | 30 | | | 398 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
168 | (137 | ) | (64 | ) | | | (33 | ) | |||||||||||||||
Net cost of net debt |
(6 | ) | ||||||||||||||||||||||
Non-controlling interests |
9 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(30 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| (205 | ) | (77 | ) | | ||||||||||||||||||
- On net operating income |
| (133 | ) | (50 | ) | |
30
1st quarter 2016 (adjusted) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,592 | 13,938 | 15,433 | 4 | | 32,967 | ||||||||||||||||||
Intersegment sales |
3,262 | 4,148 | 132 | 70 | (7,612 | ) | | |||||||||||||||||
Excise taxes |
| (961 | ) | (4,358 | ) | | | (5,319 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
6,854 | 17,125 | 11,207 | 74 | (7,612 | ) | 27,648 | |||||||||||||||||
Operating expenses |
(4,465 | ) | (15,575 | ) | (10,704 | ) | (220 | ) | 7,612 | (23,352 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,247 | ) | (253 | ) | (172 | ) | (8 | ) | | (2,680 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
142 | 1,297 | 331 | (154 | ) | | 1,616 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
341 | 177 | 31 | 103 | | 652 | ||||||||||||||||||
Tax on net operating income |
15 | (346 | ) | (110 | ) | 37 | | (404 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
498 | 1,128 | 252 | (14 | ) | | 1,864 | |||||||||||||||||
Net cost of net debt |
(204 | ) | ||||||||||||||||||||||
Non-controlling interests |
(24 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
1,636 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.68 |
(a) | Except for earnings per share. |
1st quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
4,237 | 259 | 390 | 22 | | 4,908 | ||||||||||||||||||
Total divestments |
915 | 29 | 37 | 4 | | 985 | ||||||||||||||||||
Cash flow from operating activities |
2,113 | (421 | ) | 240 | (51 | ) | | 1,881 |
31
1st quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,225 | 17,464 | 19,620 | 4 | | 42,313 | ||||||||||||||||||
Intersegment sales |
4,384 | 6,967 | 272 | 52 | (11,675 | ) | | |||||||||||||||||
Excise taxes |
| (933 | ) | (4,417 | ) | | | (5,350 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,609 | 23,498 | 15,475 | 56 | (11,675 | ) | 36,963 | |||||||||||||||||
Operating expenses |
(5,969 | ) | (21,717 | ) | (14,863 | ) | (239 | ) | 11,675 | (31,113 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(3,441 | ) | (252 | ) | (174 | ) | (5 | ) | | (3,872 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
199 | 1,529 | 438 | (188 | ) | | 1,978 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
769 | 762 | (80 | ) | 294 | | 1,745 | |||||||||||||||||
Tax on net operating income |
(368 | ) | (446 | ) | (131 | ) | (82 | ) | | (1,027 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
600 | 1,845 | 227 | 24 | | 2,696 | ||||||||||||||||||
Net cost of net debt |
(188 | ) | ||||||||||||||||||||||
Non-controlling interests |
155 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,663 | |||||||||||||||||||||||
1st quarter 2015 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(146 | ) | | | | | (146 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(146 | ) | | | | | (146 | ) | ||||||||||||||||
Operating expenses |
(140 | ) | 194 | (7 | ) | | | 47 | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,046 | ) | | | | | (1,046 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(1,332 | ) | 194 | (7 | ) | | | (1,145 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
136 | 661 | (89 | ) | | | 708 | |||||||||||||||||
Tax on net operating income |
437 | (110 | ) | 2 | | | 329 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
(759 | ) | 745 | (94 | ) | | | (108 | ) | |||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
169 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
61 | |||||||||||||||||||||||
(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 |
| 235 | (7 | ) | | |||||||||||||||||||
- On net operating income |
| 150 | (5 | ) | |
32
1st quarter 2015 (adjusted) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
5,371 | 17,464 | 19,620 | 4 | | 42,459 | ||||||||||||||||||
Intersegment sales |
4,384 | 6,967 | 272 | 52 | (11,675 | ) | | |||||||||||||||||
Excise taxes |
| (933 | ) | (4,417 | ) | | | (5,350 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,755 | 23,498 | 15,475 | 56 | (11,675 | ) | 37,109 | |||||||||||||||||
Operating expenses |
(5,829 | ) | (21,911 | ) | (14,856 | ) | (239 | ) | 11,675 | (31,160 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,395 | ) | (252 | ) | (174 | ) | (5 | ) | | (2,826 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,531 | 1,335 | 445 | (188 | ) | | 3,123 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
633 | 101 | 9 | 294 | | 1,037 | ||||||||||||||||||
Tax on net operating income |
(805 | ) | (336 | ) | (133 | ) | (82 | ) | | (1,356 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,359 | 1,100 | 321 | 24 | | 2,804 | ||||||||||||||||||
Net cost of net debt |
(188 | ) | ||||||||||||||||||||||
Non-controlling interests |
(14 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,602 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.13 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
8,151 | 434 | 215 | 9 | | 8,809 | ||||||||||||||||||
Total divestments |
1,162 | 1,766 | 52 | 4 | | 2,984 | ||||||||||||||||||
Cash flow from operating activities |
3,525 | 314 | 644 | (96 | ) | | 4,387 |
33
9) Reconciliation of the information by business segment with consolidated financial statements
1st quarter 2016 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
32,967 | (126 | ) | 32,841 | ||||||||
Excise taxes |
(5,319 | ) | | (5,319 | ) | |||||||
Revenues from sales |
27,648 | (126 | ) | 27,522 | ||||||||
Purchases net of inventory variation |
(17,357 | ) | (282 | ) | (17,639 | ) | ||||||
Other operating expenses |
(5,801 | ) | (335 | ) | (6,136 | ) | ||||||
Exploration costs |
(194 | ) | | (194 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,680 | ) | | (2,680 | ) | |||||||
Other income |
171 | 329 | 500 | |||||||||
Other expense |
(54 | ) | (16 | ) | (70 | ) | ||||||
Financial interest on debt |
(268 | ) | (6 | ) | (274 | ) | ||||||
Financial income from marketable securities & cash equivalents |
10 | | 10 | |||||||||
Cost of net debt |
(258 | ) | (6 | ) | (264 | ) | ||||||
Other financial income |
191 | | 191 | |||||||||
Other financial expense |
(155 | ) | | (155 | ) | |||||||
Equity in net income (loss) of affiliates |
499 | (1 | ) | 498 | ||||||||
Income taxes |
(350 | ) | 398 | 48 | ||||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
1,660 | (39 | ) | 1,621 | ||||||||
Group share |
1,636 | (30 | ) | 1,606 | ||||||||
Non-controlling interests |
24 | (9 | ) | 15 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
1st quarter 2015 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
42,459 | (146 | ) | 42,313 | ||||||||
Excise taxes |
(5,350 | ) | | (5,350 | ) | |||||||
Revenues from sales |
37,109 | (146 | ) | 36,963 | ||||||||
Purchases net of inventory variation |
(24,432 | ) | 228 | (24,204 | ) | |||||||
Other operating expenses |
(6,176 | ) | (96 | ) | (6,272 | ) | ||||||
Exploration costs |
(552 | ) | (85 | ) | (637 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,826 | ) | (1,046 | ) | (3,872 | ) | ||||||
Other income |
526 | 1,095 | 1,621 | |||||||||
Other expense |
(99 | ) | (343 | ) | (442 | ) | ||||||
Financial interest on debt |
(262 | ) | | (262 | ) | |||||||
Financial income from marketable securities & cash equivalents |
31 | | 31 | |||||||||
Cost of net debt |
(231 | ) | | (231 | ) | |||||||
Other financial income |
142 | | 142 | |||||||||
Other financial expense |
(166 | ) | | (166 | ) | |||||||
Equity in net income (loss) of affiliates |
634 | (44 | ) | 590 | ||||||||
Income taxes |
(1,313 | ) | 329 | (984 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,616 | (108 | ) | 2,508 | ||||||||
Group share |
2,602 | 61 | 2,663 | |||||||||
Non-controlling interests |
14 | (169 | ) | (155 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
34
10) Changes in progress in the Group structure
| Upstream |
| TOTAL has signed in January 2016 an agreement for the sale to Zarubezhneft of a 20% stake in Kharyaga, Russia. Completion of the sale is subject to approval by the relevant authorities. At March 31, 2016 the assets and liabilities remain respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of $247 million and liabilities directly associated with the assets classified as held for sale for an amount of $167 million. The assets and liabilities concerned mainly include tangible assets for an amount of $185 million and deferred tax liabilities for an amount of $91 million. |
| Marketing & Services |
| TOTAL has signed in September 2015 an agreement for the sale to Demirören Group of its service station network and commercial sales, supply and logistics assets located in Turkey. At March 31, 2016 the assets and liabilities remain respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of $477 million and liabilities directly associated with the assets classified as held for sale for an amount of $203 million. The assets and liabilities concerned mainly include intangible and tangible assets for an amount of $135 million, trade receivables for an amount of $151 million and current bank debt for an amount of $108 million. This transaction was finalized on April 15, 2016. |
11) Post-closing and other events
| On April 15, 2016, TOTAL finalized the sale to Demirören Group of its service station network and commercial sales, supply and logistics assets located in Turkey. |
35
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL ANNOUNCES ITS FIRST QUARTER 2016 INTERIM DIVIDEND
The Board of Directors of TOTAL met on April 26, 2016, and approved a first quarter 2016 interim dividend of 0.61 per share, unchanged compared to 2015. The record date will be September 26, 2016 and the ex-dividend date will be September 27, 2016.
Pending the approval of the 4th resolution at the Annual Shareholders Meeting of May 24, 2016, the Board of Directors will meet on September 21, 2016 to:
| declare the first quarter 2016 interim dividend; |
| offer the option for shareholders to receive the first quarter 2016 interim dividend in cash or in new shares of the Company; |
| set the price of the new shares with a discount of up to 10% based on the average opening price on the Euronext Paris for the 20 trading days preceding the Board of Directors meeting, and reduced by the amount of the first quarter 2016 interim dividend; |
| set the period for exercising the option from September 27, 2016 to October 6, 2016, both dates inclusive; and |
| confirm the payment of the dividend as from October 14, 2016. |
American Depositary Receipts (ADRs) will receive the first quarter 2016 interim dividend in dollars based on the then-prevailing exchange rate according to the following timetable:
| ADR ex-dividend date: September 22, 2016; |
| ADR record date: September 26, 2016; and |
| ADR payment date in cash or shares issued in lieu of cash: October 24, 2016. |
Registered ADR holders may also contact JP Morgan Chase Bank for additional information. Non-registered ADR holders should contact their broker, financial intermediary, bank or financial institution for additional information.
TOTAL JOINS THE TERRAWATT INITIATIVE TO ACHIEVE SOLAR SCALE-UP WORLDWIDE
On April 22, 2016, TOTAL announced that it has joined the Terrawatt Initiative as a founding member. This global non-profit organization represents key private sector solar energy stakeholders in their dialogue with governments and international organizations. It aims to promote affordable solar energy worldwide. The goal is to deploy more than 1 terawatt (1,000 gigawatts) of solar power by 2030, representing an investment of over $1 trillion.
TOTAL, world leader in solar energy with its affiliate SunPower, wanted to be a part of this initiative. The Group is active across the entire photovoltaic value chain, from manufacturing cells to installing residential and commercial rooftop solar solutions. TOTAL recently partnered with SunPower to build a solar farm in Japan.
Our ambition is to become the responsible energy major, in particular by contributing to the development of renewable energies. We believe that solar energy is one of the solutions to meet growing electricity demand, especially in Africa, and tackle climate change. Thats why we have joined the Terrawatt Initiative to promote the deployment of competitive solar energy worldwide, commented Patrick Pouyanné, Chairman and CEO of TOTAL.
We welcome TOTAL among the community of leading companies and organizations from across the world, federated under the Terrawatt Initiative banner, that will help, through a constructive dialogue with governments, affordable solar power to bring all its benefits to people and economies, said Isabelle Kocher, chair of Terrawatt Initiative.
The Terrawatt Initiative intends in particular to work with the International Solar Alliance (ISA), launched by President François Hollande of France and Prime Minister Narendra Modi of India during the COP21 opening ceremony. ISAs more than 120 member countries are aiming to rapidly implement and scale up affordable and competitive solar energy.
The Terrawatt Initiative also intends to work with the International Renewable Energy Agency (IRENA), which serves as the principal platform for international cooperation in all forms of renewable energy and shares information among its 145 members.
1
TOTAL PRESENTS NEW ORGANIZATION TO ACHIEVE ITS AMBITION OF BECOMING THE RESPONSIBLE ENERGY MAJOR
TOTAL spent 2015 meeting the short-term goals set in response to the ongoing imbalances resulting from the fall in oil prices that began in June 2014.
Yet even as it addresses these immediate challenges, the Group must also prepare for the medium and longer term and work to strengthen its position as a global energy leader. TOTALs ambition is to meet the energy needs of a growing world population, tackle climate change and provide solutions that match changing customer expectations.
Accordingly, as part of its One Total company project, on April 19, 2016 the Group presented a wide-ranging new organization plan to employee representatives.
| 1. Creation of the Gas, Renewables & Power Segment |
Gas, Renewables & Power will spearhead TOTALs ambitions in the electricity value chain by expanding in gas midstream and downstream, renewable energies and energy efficiency. The new segment, whose President will be a member of the Executive Committee, will bring together the businesses of the current Gas and New Energies Divisions (excluding biotechnologies) and pair them with a new Innovation & Energy Efficiency Division, which shall manage both the corporate venture fund Total Energy Ventures and the Awango access to energy business. The Biofuels business will group all bioenergy-related activities, which are set for growth, within Refining & Chemicals.
We intend to deploy a proactive strategy in gas markets to meet demand and identify new outlets for our production. We will also produce and sell power from renewable sources. Electricity will be the energy of the 21st century and the growth of gas and renewables is pushing us to take a value chain approach to electricity. We have multiple ambitions in renewables in 20 years time: be in the top three in solar power, expand in electricity trading and energy storage, be a leader in biofuels, especially biojet fuel, and consider potential development opportunities in other renewable energies. Our ambition is to create a new business that will help make TOTAL the responsible energy major, commented Patrick Pouyanné, Chairman and CEO of TOTAL.
| 2. Creation of Total Global Services |
Total Global Services will continuously improve TOTALs efficiency thereby benefiting all businesses by pooling support services globally: Accounting, Purchasing, Information Systems, Training, Human Resources and Facilities Management.
Pooling certain support functions will sustainably improve our efficiency, create value and reduce costs. Our experience over the last three years in the area of IT infrastructure has shown that such a strategy can deliver efficiency gains for TOTAL, whilst also motivating the personnel involved. The entities making up Total Global Services will operate as service companies for customers across business segments and at the corporate level. This sweeping change in the way we work makes cross-functionality a center point of our organization. And thats what our One Total Ambition is all about, continued Patrick Pouyanné.
| 3. Holding re-centered on strategic functions; Human Resources and Corporate Social Responsibility which lies at the heart of TOTALs ambition |
As a result, Holding is refocused on strategic corporate functions, divided into three divisions. In addition to the current finance organization, which groups the Finance, Insurance and Information Systems Divisions, two new divisions are being created:
| People & Social Responsibility |
This division will consist of Human Resources; Health, Safety & Environment, which will combine all Segment central HSE departments in order to deploy a strong, uniform environmental and safety model; the Security Division; and a new Civil Society Engagement Division, which will manage all of TOTALs initiatives in this area. The Senior Vice President, People & Social Responsibility, will be a member of the Executive Committee.
| Strategy & Innovation |
Strategy & Innovation will comprise the new Strategy & Climate Division, responsible for assuring the 2° C global warming scenario is incorporated into TOTALs strategy; Public Affairs; Audit; Research & Development, which will replace the current Scientific Development Department and carry out TOTALs R&D programs such as CO2; the Chief Digital Officer; and the Chief Technology Officer.
The new organization will underpin an even more efficient TOTAL, one that also listens and welcomes dialogue with its customers and stakeholders. Our teams make TOTAL who we are today and will shape who we will be tomorrow a leading energy player. They are the architects of our success, which is why Human Resources and Civil Society Engagement are cornerstones of this project and will be represented on the Executive Committee, concluded Patrick Pouyanné.
2
No jobs will be lost and there will be no mandatory geographic relocation. TOTAL is committed to conducting this project in close collaboration with employee representatives and unions, with the intention it will be supported by all.
The aim is to deploy the new Gas, Renewables & Power and the revamped corporate organization on September 1, 2016 and Total Global Services on January 1, 2017.
TOTAL AND KOREA GAS CORPORATION EXTEND COOPERATION ALONG THE ENTIRE LNG VALUE CHAIN
On April 13, 2016, TOTAL announced that it has signed a memorandum of understanding (MoU) with Korea Gas Corporation (KOGAS) during the LNG 18 conference in Perth, Australia, to reinforce mutual cooperation to explore opportunities throughout the LNG value chain.
The main purpose of the agreement is to jointly identify and pursue opportunities to develop the LNG market in Asia and in new importing countries and to cooperate in LNG trading and terminal optimization.
RESULTS OF THE OPTION TO RECEIVE THE THIRD QUARTER 2015 INTERIM DIVIDEND IN SHARES
The Board of Directors of TOTAL met on March 15, 2016, and declared a third quarter 2015 interim dividend of 0.61 per share and offered, under the conditions set by the fourth resolution at the Ordinary General Meeting of May 29, 2015, the option for shareholders to receive the third quarter 2015 interim dividend in cash or in new shares of the Company.
The period for exercising the option ran from March 21, 2016 to April 4, 2016. At the end of the option period, 61% of rights were exercised in favor of receiving the payment for the third quarter 2015 interim dividend in shares.
24,752,821 new shares will be issued, representing 1.01% of the Companys share capital on the basis of the share capital of March 31, 2016. The share price for the new shares to be issued as payment of the third quarter 2015 interim dividend was set at 36.24 on March 15, 2016.
The settlement and delivery of the new shares as well as their admission to trading on the Euronext Paris will occur on April 12, 2016. The shares will carry immediate dividend rights and will be fully assimilated with existing shares already listed.
The total remaining cash dividend to be paid to shareholders who did not elect to receive the third quarter 2015 interim dividend in shares amounts to 583 million and the date for the payment in cash is set for April 12, 2016.
TOTALS SUPERCOMPUTER NOW THE INDUSTRYS MOST POWERFUL WORLDWIDE
On March 29, 2016, TOTAL announced that its supercomputer Pangea recently boosted its computing power from 2.3 to 6.7 petaflops(1), the equivalent of more than 80,000 laptops combined. Its storage capacity has also been increased, to 26 petabytes(2) the equivalent of 6 million DVDs. With this upgrade, Pangea is the No. 1 computer in the industry and among the top 10 most powerful computers, public or private, worldwide in the TOP500 ranking.
We tripled Pangeas computing power in just two years. In the era of big data, state-of-the-art data-intensive computing is a competitive advantage. This power will help us to improve our performance and to reduce our costs, comments Arnaud Breuillac, President Total Exploration & Production.
Pangea is a decision-support tool used for exploration and field management. The reasons for investing in the latest IT technologies in the market are to:
| improve the accuracy of subsurface imaging; |
| optimize the development and production of TOTALs fields; and |
| save time, by shortening the duration of studies. |
The capacity boost will support the use of next-generation algorithms developed by TOTALs R&D to image increasingly complex regions and produce numerical simulations of fields, incorporating 4D(3) seismic data.
(1) | A petaflop is a quadrillion (thousand trillion) floating point operations (flops) per second. |
(2) | A petabyte is a million gigabytes of data. |
(3) | 4D seismic consists of repeating three-dimensional (3D) seismic surveys over time across the same area. |
3
Pangea requires a power supply of 4.5 MW. TOTALs buildings in Pau, France are heated by reusing some of the heat released by the supercomputer. Pangea was designed by Silicon Graphics International (SGI).
TOTAL AND CHINA NATIONAL PETROLEUM COMPANY SIGN A STRATEGIC COOPERATION AGREEMENT
On March 21, 2016, TOTAL announced that while attending the China Development Forum in Beijing at the invitation of the Chinese government, Patrick Pouyanné, Chairman and CEO, signed a strategic cooperation agreement with Wang Yilin, Chairman of China National Petroleum Company (CNPC), on March 20 to extend the two companies existing collaboration.
In the past ten years, TOTAL and CNPC have formed a number of partnerships involving such major projects as the Sulige gas field in Inner Mongolia, China, Halfaya in Iraq, Yamal LNG in Russia, Kashagan in Kazakhstan and Libra in Brazil.
This strategic cooperation agreement reflects our respective commitment to strengthening our partnership and jointly developing new projects, commented Mr. Pouyanné at the signing ceremony. In particular, Total will share with CNPC its expertise in the areas of safety and environment, human resources and social responsibility. The agreement further strengthens the existing partnership to support the international strategy of CNPCs affiliate PetroChina.
MOMAR NGUER APPOINTED PRESIDENT, MARKETING & SERVICES AND MEMBER OF THE EXECUTIVE COMMITTEE OF TOTAL
On March 18, 2016, TOTAL announced its plan for the succession of Philippe Boisseau, member of the Executive Committee, President Marketing & Services and President New Energies, who is leaving the Group.
Effective April 15, 2016:
| Momar Nguer, currently Senior Vice President, Africa & Middle East, Marketing & Services is appointed President Marketing & Services and member of the Executive Committee of TOTAL. |
| Philippe Sauquet, President Refining & Chemicals and member of the Executive Committee of TOTAL, is also appointed interim President New Energies. |
Momar Nguer began his career in 1982 in Hewlett Packard Frances Finance Department. He joined TOTAL in 1984, serving in various Downstream positions. He was named Vice President, Marketing at Total Sénégal in 1985 and appointed Vice President, Retail Network & Consumers of Total in Africa in 1991.
In 1995, Momar Nguer became Chief Executive Officer of the marketing affiliate Total Cameroun and was subsequently named Chief Executive Officer of the marketing affiliate Total Kenya in 1997.
In 2000, he was appointed Executive Vice President, Total East Africa & Indian Ocean in TOTALs Refining & Marketing business.
From 2007 to 2011, he was Vice President, Aviation Fuel at Total Refining & Marketing.
Momar Nguer has been Senior Vice President, Africa and The Middle East at Total Marketing & Services since December 2011. He was appointed to the Group Performance Management Committee in January 2012, and Chairman of the Group Diversity Council on August 1, 2015.
Momar Nguer, 59, is a graduate of Frances ESSEC business school.
TOTAL QUARTERLY EX-DIVIDEND DATES FOR 2017 DIVIDEND
On March 16, 2016, TOTAL announced that, subject to decisions by the Board of Directors and shareholders at the Annual Meeting to approve the financial statements and the final dividend, the ex-dividend dates of the quarterly interim dividends and the final dividend for 2017 will be:
| September 25, 2017; |
| December 19, 2017; |
| March 19, 2018; and |
| June 11, 2018. |
The above ex-dividend dates relate to TOTAL shares traded on the Euronext Paris.
4
In the event of an option to receive the dividend in shares, the payment dates for the interim and remaining dividends in cash or in shares will follow the end of the option period, approximately twenty days after the ex-dividend date.
As a reminder, the ex-dividend dates of the quarterly interim dividends and the final dividend for 2016 relative to TOTAL shares traded on the Euronext Paris will be:
| September 27, 2016; |
| December 21, 2016; |
| March 20, 2017; and |
| June 5, 2017. |
5
Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. and its subsidiaries and affiliates (collectively, TOTAL or the Group), computed based on information used in the preparation of our consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union, for the three months ended March 31, 2016 and 2015 and the fiscal years ended December 31, 2015, 2014, 2013, 2012 and 2011.
Three Months Ended March 31, |
Years Ended December 31, | |||||||||||||
2016 | 2015 | 2015 | 2014 | 2013* | 2012** | 2011** | ||||||||
For the Group (IFRS) |
4.03 | 10.91 | 4.76 | 10.91 | 19.57 | 24.35 | 27.55 |
* | Figures for 2013 have been restated pursuant to the retrospective application of the accounting interpretation IFRIC 21 from January 1, 2014. |
** | Figures for 2012 and 2011 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013. |
Earnings for the computations above under IFRS were calculated by adding pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, fixed charges and distributed income of equity investees. Fixed charges for the computations above consist of interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense and that portion of rental expense representative of the interest factor.
1
CAPITALIZATION AND INDEBTEDNESS OF TOTAL
(unaudited)
The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of the Group as of March 31, 2016, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (dollars or $) or in euros (euros or ).
At March 31, 2016 |
||||
(in millions of dollars) | ||||
Current financial debt, including current portion of non-current financial debt |
||||
Current portion of non-current financial debt |
2,675 | |||
Current financial debt |
8,183 | |||
Current portion of financial instruments for interest rate swaps liabilities |
108 | |||
Other current financial instruments liabilities |
100 | |||
Financial liabilities directly associated with the assets classified as held for sale |
108 | |||
|
|
|||
Total current financial debt |
11,174 | |||
|
|
|||
Non-current financial debt |
43,138 | |||
Non-controlling interests |
2,960 | |||
Shareholders equity |
||||
Common shares |
7,709 | |||
Paid-in surplus and retained earnings |
103,766 | |||
Currency translation adjustment |
(10,447 | ) | ||
Treasury shares |
(4,585 | ) | ||
|
|
|||
Total shareholders equity Group share |
96,443 | |||
|
|
|||
Total capitalization and non-current indebtedness |
142,541 | |||
|
|
As of March 31, 2016, TOTAL had an authorized share capital of 3,481,610,368 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,454,029,976 ordinary shares (including 113,966,528 treasury shares from shareholders equity).
As of March 31, 2016, approximately $716 million of TOTALs non-current financial debt was secured and approximately $42,422 million was unsecured, and all of TOTALs current financial debt of $8,183 million was unsecured. As of March 31, 2016, TOTAL had no outstanding guarantees from third parties relating to its consolidated indebtedness. For more information about TOTALs commitments and contingencies, see Note 23 of the Notes to TOTALs audited Consolidated Financial Statements in its Annual Report on Form 20-F for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 16, 2016.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since March 31, 2016.
2
Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
Three Months Ended March 31, |
Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of dollars) |
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net income(a)(b) |
1,606 | 2,663 | 5,087 | 4,244 | 11,228 | 13,648 | 17,400 | |||||||||||||||||||||
Income tax expenses(a)(b) |
(48 | ) | 1,482 | 1,653 | 8,614 | 14,767 | 16,747 | 19,614 | ||||||||||||||||||||
Non-controlling interests |
15 | (155 | ) | (301 | ) | 6 | 293 | 188 | 424 | |||||||||||||||||||
Equity in income of affiliates (in excess of)/ less than dividends received |
(236 | ) | (68 | ) | (311 | ) | 29 | (775 | ) | 272 | (149 | ) | ||||||||||||||||
Interest expensed |
179 | 210 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Estimate of the interest within rental expense |
119 | 102 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Amortization of capitalized interest |
41 | 41 | 174 | 160 | 135 | 205 | 280 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total(a)(b) |
1,676 | 4,275 | 7,521 | 13,995 | 26,661 | 32,043 | 38,730 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest expensed |
179 | 210 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Capitalized interest |
118 | 80 | 362 | 341 | 349 | 333 | 245 | |||||||||||||||||||||
Estimate of the interest within rental expense |
119 | 102 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
| | | | | | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed charges |
416 | 392 | 1,581 | 1,283 | 1,362 | 1,316 | 1,406 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ratio of earnings to fixed charges(a)(b) |
4.03 | 10.91 | 4.76 | 10.91 | 19.57 | 24.35 | 27.55 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Figures for 2013 have been restated pursuant to the retrospective application of the accounting interpretation IFRIC 21 from January 1, 2014. |
(b) | Figures for 2012 and 2011 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013. |