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
July 29, 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 second quarter of 2016 and six months ended June 30, 2016, and a description of certain recent developments relating to its business, as well as a capitalization table as of June 30, 2016, and a ratio of earnings to fixed charges for the three months ended June 30, 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 Second Quarter of 2016 and Six Months Ended June 30, 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: July 29, 2016 | By: | /s/ HUMBERT DE WENDEL | ||||||
Name: | Humbert de WENDEL | |||||||
Title: | Treasurer |
Exhibit 99.1 | Results for the Second Quarter of 2016 and Six Months Ended June 30, 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 second quarter of 2016 and six months ended June 30, 2016, has been derived from TOTALs unaudited consolidated financial statements for the second quarter of 2016 and six months ended June 30, 2016. 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 |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
in millions of dollars |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
37,215 | 32,841 | 44,715 | -17% | Sales |
70,056 | 87,028 | -20% | |||||||||||||||||
Adjusted net operating income from business segments(a) |
||||||||||||||||||||||||
1,127 | 498 | 1,560 | -28% | Upstream |
1,625 | 2,919 | -44% | |||||||||||||||||
1,018 | 1,128 | 1,349 | -25% | Refining & Chemicals |
2,146 | 2,449 | -12% | |||||||||||||||||
378 | 252 | 425 | -11% | Marketing & Services |
630 | 746 | -16% | |||||||||||||||||
776 | 498 | 685 | +13% | Equity in net income (loss) of affiliates |
1,274 | 1,275 | | |||||||||||||||||
0.86 | 0.67 | 1.29 | -33% | Fully-diluted earnings per share ($) |
1.53 | 2.45 | -38% | |||||||||||||||||
2,379 | 2,350 | 2,292 | +4% | Fully-diluted weighted-average shares (millions) |
2,365 | 2,289 | +3% | |||||||||||||||||
2,088 | 1,606 | 2,971 | -30% | Net income (Group share) |
3,694 | 5,634 | -34% | |||||||||||||||||
4,566 | 4,908 | 6,590 | -31% | Investments(b) |
9,474 | 15,399 | -38% | |||||||||||||||||
773 | 985 | 1,893 | -59% | Divestments |
1,758 | 4,877 | -64% | |||||||||||||||||
3,790 | 3,923 | 4,616 | -18% | Net investments(c) |
7,713 | 10,441 | -26% | |||||||||||||||||
4,059 | 4,615 | 5,148 | -21% | Organic investments(d) |
8,674 | 11,217 | -23% | |||||||||||||||||
2,882 | 1,881 | 4,732 | -39% | Cash flow from operations |
4,763 | 9,119 | -48% | |||||||||||||||||
1,752 | 1,545 | 835 | x2.1 | Includes changes in working capital |
3,297 | 1,311 | x2.5 |
(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 = investments divestments repayment of non-current loans other operations with non-controlling interests. See page 9 of this exhibit. |
(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, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, the Group values inventories of petroleum products in the financial statements according to the 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
1
reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the 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 20-26 and 36-45 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) |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
1H16 | 1H15 | 1H16 vs 1H15 | ||||||||||||||||||
45.6 | 33.9 | 61.9 | -26% | Brent ($/b) |
39.8 | 57.8 | -31% | |||||||||||||||||
43.0 | 31.0 | 58.2 | -26% | Average liquids price ($/b) |
36.8 | 53.8 | -32% | |||||||||||||||||
3.43 | 3.46 | 4.67 | -27% | Average gas price ($/Mbtu) |
3.44 | 5.03 | -32% | |||||||||||||||||
33.0 | 26.4 | 45.4 | -27% | Average hydrocarbons price ($/boe) |
29.6 | 43.6 | -32% |
(a) | Consolidated subsidiaries, excluding fixed margins. |
| Production |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
hydrocarbon production |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
2,424 | 2,479 | 2,299 | +5% | Combined production (kboe/d) |
2,452 | 2,347 | +4% | |||||||||||||||||
1,253 | 1,286 | 1,215 | +3% | Liquids (kb/d) |
1,269 | 1,227 | +3% | |||||||||||||||||
6,466 | 6,441 | 5,910 | +9% | Gas (Mcf/d) |
6,453 | 6,110 | +6% |
Hydrocarbon production was 2,424 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2016, an increase of more than 5% compared to the second quarter 2015, due to the following:
| +6% due to new project start ups and ramp ups, notably Laggan-Tormore, Vega Pleyade, Moho Phase 1b, Gladstone LNG and Termokarstovoye; |
| -2% due to the security situation in Nigeria and forest fires in Canada; and |
| +1% due to the PSC price effect(1) and performance, net of normal field decline. |
In the first half 2016, hydrocarbon production was 2,452 kboe/d, an increase of 4.5% compared to the first half 2015, due to the following:
| +5% due to new project start ups and ramp ups, notably Laggan-Tormore, Vega Pleyade, Moho Phase 1b, Gladstone LNG and Termokarstovoye; |
| -2% due to the security situation in Nigeria and Yemen, and forest fires in Canada; and |
| +2% due to the PSC price effect and performance, net of normal field decline. |
(1) | The price effect refers to the impact of changing hydrocarbon prices on entitlement volumes from production sharing and buyback contracts. For example, as the price of oil or gas increases above certain pre-determined levels, TOTALs share of production normally decreases. |
2
| Results |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
in millions of dollars |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
3,344 | 3,466 | 4,498 | -26% | Non-Group sales |
6,810 | 9,723 | -30% | |||||||||||||||||
16 | (317 | ) | 1,641 | -99% | Operating income |
(301 | ) | 1,840 | n/a | |||||||||||||||
564 | 459 | 354 | +59% | Adjustments affecting operating income |
1,023 | 1,686 | -39% | |||||||||||||||||
580 | 142 | 1,995 | -71% | Adjusted operating income(a) |
722 | 3,526 | -80% | |||||||||||||||||
3.2 | % | -7.0 | % | 47.3 | % | Effective tax rate(b) |
0.8 | % | 47.9 | % | ||||||||||||||
1,127 | 498 | 1,560 | -28% | Adjusted net operating income(a) |
1,625 | 2,919 | -44% | |||||||||||||||||
452 | 269 | 489 | -8% | Includes adjusted income from equity affiliates |
721 | 992 | -27% | |||||||||||||||||
3,539 | 4,237 | 5,653 | -37% | Investments |
7,776 | 13,804 | -44% | |||||||||||||||||
448 | 915 | 379 | +18% | Divestments |
1,363 | 1,541 | -12% | |||||||||||||||||
3,261 | 4,146 | 5,212 | -37% | Organic investments |
7,408 | 10,724 | -31% | |||||||||||||||||
983 | 2,113 | 2,713 | -64% | Cash flow from operating activities |
3,096 | 6,238 | -50% |
(a) | 1Q15 data as republished in 2Q15 following the reclassification in the income statement of certain taxes related to the participation in the ADCO concession. Details on adjustment items are shown in the business segment information starting on page 20 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). |
Cash flow from operating activities in the second quarter 2016 excluding the change in working capital at replacement cost of $1,298 million ($297 million in the second quarter 2015) was $2,281 million, a decrease of 24% compared to $3,010 million in the second quarter 2015, which moved in line with the average hydrocarbon price and captured the benefit from cost reductions and production growth.
In the first half 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $1,016 million (-$309 million in the first half 2015) was $4,112 million, a decrease of 31% compared to $5,929 million in the first half 2015.
Upstream adjusted net operating income was:
| $1,127 million in the second quarter 2016, a decrease of 28% compared to the second quarter 2015, essentially due to the decrease in the average hydrocarbon price, partially offset by the increase in production, decrease in operating costs and lower exploration expenses and taxes; and |
| $1,625 million in the first half 2016, a decrease of 44% compared to the first half 2015, for the same reasons. |
Adjusted net operating income for the Upstream segment excludes special items. In the second quarter 2016, the exclusion of special items had a positive impact on the segments adjusted net operating income of $362 million, consisting essentially of charges related to the abandonment by the Group of its operations in Kurdistan, compared to a positive impact of $509 million in the second quarter 2015, consisting essentially of an impairment of assets in Yemen due to security conditions and the impact of a litigation in Qatar.
B.2. | Refining & Chemicals segment |
| Refinery throughput and utilization rates(a) |
2Q16 |
1Q16 | 2Q15 | 2Q16 vs 2Q15 |
1H16 | 1H15 | 1H16 vs 1H15 | ||||||||||||||||||
1,795 | 2,105 | 1,998 | -10% | Total refinery throughput (kb/d) |
1,951 | 2,006 | -3% | |||||||||||||||||
522 | 756 | 613 | -15% | France |
639 | 675 | -5% | |||||||||||||||||
803 | 844 | 875 | -8% | Rest of Europe |
824 | 835 | -1% | |||||||||||||||||
470 | 505 | 510 | -8% | Rest of world |
488 | 496 | -2% | |||||||||||||||||
Utilization rates(b) |
||||||||||||||||||||||||
77 | % | 91 | % | 84 | % | Based on crude only |
84 | % | 85 | % | ||||||||||||||
80 | % | 94 | % | 87 | % | Based on crude and other feedstock |
87 | % | 88 | % |
(a) | Includes share of TotalErg, as well as refineries in Africa and the French Antilles that are reported in the Marketing & Services segment. The condensate splitters at Port Arthur and Daesan are also included and 2015 figures have been restated. |
(b) | Based on distillation capacity at the beginning of the year. |
Refinery throughput:
| decreased by 10% in the second quarter 2016 compared to the second quarter 2015, due to outages in Europe and the United States; and |
| decreased by 3% in the first half 2016 compared to the first half 2015; strong operational performance in the first quarter was offset by outages in the second quarter. |
3
| Results |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
in millions of dollars except European refining margin indicator (ERMI) |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
35.0 | 35.1 | 54.1 | -35% | ERMI ($/t) |
35.1 | 50.6 | -31% | |||||||||||||||||
16,567 | 13,938 | 19,793 | -16% | Non-Group sales |
30,505 | 37,257 | -18% | |||||||||||||||||
1,416 | 1,090 | 1,696 | -17% | Operating income |
2,506 | 3,225 | -22% | |||||||||||||||||
(451 | ) | 207 | (92 | ) | n/a | Adjustments affecting operating income |
(244 | ) | (286 | ) | n/a | |||||||||||||
965 | 1,297 | 1,604 | -40% | Adjusted operating income(a) |
2,262 | 2,939 | -23% | |||||||||||||||||
1,018 | 1,128 | 1,349 | -25% | Adjusted net operating income(a) |
2,146 | 2,449 | -12% | |||||||||||||||||
150 | 116 | 135 | +11% | Including Specialty Chemicals(b) |
266 | 251 | +6% | |||||||||||||||||
480 | 259 | 465 | +3% | Investments |
739 | 899 | -18% | |||||||||||||||||
23 | 29 | 874 | -97% | Divestments |
52 | 2,640 | -98% | |||||||||||||||||
457 | 232 | (425 | ) | n/a | Organic investments |
689 | (15 | ) | n/a | |||||||||||||||
1,560 | (421 | ) | 1,700 | -8% | Cash flow from operating activities |
1,139 | 2,014 | -43% |
(a) | Details on adjustment items are shown in the business segment information starting on page 20 of this exhibit. |
(b) | Hutchinson and Atotech; Bostik until February 2015. |
The Groups European refining margin indicator (ERMI) remained stable compared to the first quarter 2016, but decreased by 35% compared to last year. The petrochemical environment remained favorable, supported by strong polymer demand.
Cash flow from operating activities in the second quarter 2016 excluding the change in working capital at replacement cost of -$422 million (-$134 million in the second quarter 2015) was $1,138 million, a decrease of 27% compared to $1,566 million in the second quarter 2015.
In the first half 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $1,318 million ($932 million in the first half 2015) was $2,457 million, a decrease of 17% compared to $2,946 million in the first half 2015.
Refining & Chemicals adjusted net operating income was:
| $1,018 million in the second quarter 2016, a decrease of only 25% compared to the second quarter 2015, despite lower refining margins and throughput, thanks to strong operational performance of the Groups major integrated platforms in Asia and the Middle East; and |
| $2,146 million in the first half 2016, a decrease of 12% compared to the first half 2015, for the same reasons. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2016, the exclusion of the inventory valuation effect had a negative impact on the segments adjusted net operating income of $331 million compared to a negative impact of $138 million in the second quarter 2015. The exclusion of special items in the second quarter 2016 had a positive impact on the segments adjusted net operating income of $52 million compared to a positive impact of $117 million in the second quarter 2015.
B.3. | Marketing & Services segment |
| Petroleum product sales |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
sales in kb/d(a) |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
1,793 | 1,757 | 1,822 | -2% | Total Marketing & Services sales |
1,775 | 1,818 | -2% | |||||||||||||||||
1,074 | 1,062 | 1,079 | | Europe |
1,068 | 1,091 | -2% | |||||||||||||||||
719 | 695 | 743 | -3% | Rest of world |
707 | 727 | -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. |
In the second quarter 2016, petroleum product sales decreased by 2% compared to the second quarter 2015, mainly due to the sale of Totalgaz and the marketing network in Turkey. Excluding this perimeter effect, retail network and land-based lubricant sales increased by 3.5%. In the first half 2016, refined product sales decreased by 2% compared to the first half 2015.
4
| Results |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
in millions of dollars |
1H16 | 1H15 | 1H16 vs 1H15 | |||||||||||||||||
17,305 | 15,433 | 20,419 | -15% | Non-Group sales |
32,738 | 40,039 | -18% | |||||||||||||||||
542 | 254 | 493 | +10% | Operating income |
796 | 931 | -15% | |||||||||||||||||
(108 | ) | 77 | (28 | ) | n/a | Adjustments affecting operating income |
(31 | ) | (21 | ) | n/a | |||||||||||||
434 | 331 | 465 | -7% | Adjusted operating income(a) |
765 | 910 | -16% | |||||||||||||||||
378 | 252 | 425 | -11% | Adjusted net operating income(a) |
630 | 746 | -16% | |||||||||||||||||
(43 | ) | (37 | ) | (45 | ) | n/a | Including New Energies |
(80 | ) | (87 | ) | n/a | ||||||||||||
339 | 390 | 436 | -22% | Investments |
729 | 651 | +12% | |||||||||||||||||
296 | 37 | 627 | -53% | Divestments |
333 | 679 | -51% | |||||||||||||||||
329 | 220 | 324 | +2% | Organic investments |
549 | 467 | +18% | |||||||||||||||||
(15 | ) | 240 | 379 | n/a | Cash flow from operating activities |
225 | 1,023 | -78% |
(a) | Details on adjustment items are shown in the business segment information starting on page 20 of this exhibit. |
Cash flow from operating activities in the second quarter 2016 excluding the change in working capital at replacement cost of $526 million ($152 million in the second quarter 2015) was $511 million, a decrease of 4% compared to $531 million in the second quarter 2015.
In the first half 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $648 million (-$74 million in the first half 2015) was $873 million, a decrease of 8% compared to $949 million in the first half 2015.
Marketing & Services adjusted net operating income was:
| $378 million in the second quarter 2016, a 50% increase compared to the first quarter 2016, reaching a level similar to second quarter 2015 despite the asset sales over the past year; and |
| $630 million in the first half 2016, a decrease of 16% compared to the first half 2015. |
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2016, the exclusion of the inventory valuation effect had a negative impact on the segments adjusted net operating income of $84 million compared to a negative impact of $43 million in the second quarter 2015. The exclusion of special items in the second quarter 2016 had a positive impact on the segments adjusted net operating income of $76 million compared to negative impact of $335 million in the second quarter 2015, consisting essentially of a gain on the disposal of Totalgaz.
C. | GROUP RESULTS |
| Net income (Group share) |
Net income (Group share) was:
| $2,088 million in the second quarter 2016 compared to $2,971 million in the second quarter 2015, a decrease of 30%; and |
| $3,694 million in the first half 2016 compared to $5,634 million in the first half 2015, a decrease of 34%. |
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value.
Total adjustments affecting net income (Group share)(1) were:
| -$86 million in the second quarter 2016, including mainly the inventory effect and the impairment of assets that will not be developed, compared to -$114 million in the second quarter 2015; and |
| -$116 million in the first half 2016, including mainly inventory effect, the gain on the sale of the FUKA gas pipeline network in the North Sea in the first quarter and the impairment of assets that will not be developed, compared to -$53 million in the first half 2015. |
Adjusted net income (Group share) was:
| $2,174 million in the second quarter 2016 compared to $3,085 million in the second quarter 2015, a decrease of 30% mainly due to weaker Upstream performance resulting from the unfavorable economic condition; and |
| $3,810 million in the first half 2016 compared to $5,687 million in the first half 2015, a decrease of 33% for the same reasons. |
The number of fully-diluted shares was 2,401 million on June 30, 2016, and 2,294 million on June 30, 2015.
| Divestments acquisitions |
Asset sales were:
| $472 million in the second quarter 2016, comprised mainly of the sale of the retail network in Turkey, compared to $733 million in the second quarter 2015; and |
| $1,357 million in the first half 2016, comprised mainly of the sales of the retail network in Turkey and the FUKA gas pipeline network in the North Sea, compared to $3,472 million in the first half 2015. |
(1) | Details shown on pages 9 and 31 of this exhibit. |
5
Acquisitions were:
| $206 million in the second quarter 2016, comprised mainly of the purchase of shares in Saft, compared to $282 million in the second quarter 2015; and |
| $399 million in the first half 2016, comprised mainly of the purchase of shares in Saft and the acquisition of the retail network in the Dominican Republic, compared to $2,777 million in the first half 2015. |
| Cash flow |
The Groups net cash flow(1) was:
| $210 million in the second quarter 2016 compared to $701 million in the second quarter 2015, despite the drop in Brent price from $62/b to $46/b; and |
| -$5 million in the first half 2016 compared to -$489 million in the first half 2015, despite the decrease in Brent price from $58/b to $40/b. |
Cash flow from operating activities in the second quarter 2016 excluding the change in working capital at replacement cost of $1,118 million ($585 million in the second quarter 2015) was $4,000 million, a decrease of 25% compared to $5,317 million in the second quarter 2015.
In the first half 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $2,945 million ($833 million in the first half 2015) was $7,708 million, a decrease of 23% compared to $9,952 million in the second quarter 2015.
| Return on equity |
Return on equity from July 1, 2015 to June 30, 2016 was 8.9%(2).
D. | SUMMARY AND OUTLOOK |
The financial performance of the Group over the first half 2016 demonstrates the strength of its integrated model across a range of volatile prices. The Group was resilient in a weak environment at the start of the year and fully captured the benefit of the rebound in prices during the second quarter.
In the Upstream, the start up of Incahuasi in Bolivia and Kashagan in Kazakhstan are expected in the second half of the year, following the first-half start-ups of Laggan-Tormore in the United Kingdom, Vega Pleyade in Argentina and Angola LNG. Production growth is projected to be 4% for the year as a whole, after reaching 4.5% in the first half.
In the Downstream, refining margins were lower at the beginning of the third quarter, due to high inventory levels. Reducing capacity at the Lindsey refinery and ending crude refining at La Mède refinery to convert it to a bio-refinery will be finalized in the second half of the year. The Groups major integrated platforms are performing well and capturing the benefit of strong petrochemical margins which are supported by polymer demand.
TOTAL maintains strict discipline on costs and investments as part of its strategy to reduce the breakeven. In obtaining an interest in Al-Shaheen, it continues to add high quality, low cost assets to the portfolio.
In addition, the Group continues to actively manage its portfolio by launching the sale process for Atotech, and confirms its objective to generate $2 billion from net asset sales over the year.
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.
(1) | Net cash flow = operating cash flow before working capital changes net investments (including other transactions with non-controlling interests). |
(2) | Details shown on page 10 of this exhibit. |
6
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. |
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) |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
Combined liquids and gas production by region (kboe/d) |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
770 | 788 | 645 | +19 | % | Europe and Central Asia |
779 | 649 | +20 | % | |||||||||||||||||||
634 | 630 | 622 | +2 | % | Africa |
632 | 634 | | ||||||||||||||||||||
505 | 531 | 518 | -2 | % | Middle East and North Africa |
518 | 549 | -6 | % | |||||||||||||||||||
251 | 258 | 263 | -4 | % | Americas |
255 | 258 | -1 | % | |||||||||||||||||||
264 | 271 | 251 | +5 | % | Asia-Pacific |
268 | 256 | +4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2,424 | 2,479 | 2,299 | +5 | % | Total production |
2,452 | 2,347 | +4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
627 | 620 | 547 | +15 | % | Including equity affiliates |
624 | 560 | +11 | % | |||||||||||||||||||
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
Liquids production by region (kb/d) |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
251 | 251 | 210 | +20 | % | Europe and Central Asia |
251 | 206 | +21 | % | |||||||||||||||||||
511 | 518 | 508 | +1 | % | Africa |
515 | 518 | -1 | % | |||||||||||||||||||
367 | 380 | 369 | -1 | % | Middle East and North Africa |
374 | 375 | | ||||||||||||||||||||
93 | 104 | 96 | -4 | % | Americas |
99 | 93 | +6 | % | |||||||||||||||||||
30 | 33 | 32 | -6 | % | Asia-Pacific |
32 | 34 | -7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,253 | 1,286 | 1,215 | +3 | % | Total production |
1,269 | 1,227 | +3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
265 | 240 | 218 | +21 | % | Including equity affiliates |
253 | 213 | +19 | % | |||||||||||||||||||
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
Gas production by region (Mcf/d) |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
2,877 | 2,814 | 2,335 | +23 | % | Europe and Central Asia |
2,845 | 2,379 | +20 | % | |||||||||||||||||||
594 | 564 | 566 | +5 | % | Africa |
579 | 578 | | ||||||||||||||||||||
761 | 837 | 817 | -7 | % | Middle East and North Africa |
800 | 956 | -16 | % | |||||||||||||||||||
881 | 860 | 934 | -6 | % | Americas |
870 | 919 | -5 | % | |||||||||||||||||||
1,353 | 1,366 | 1,258 | +8 | % | Asia-Pacific |
1,359 | 1,278 | +6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
6,466 | 6,441 | 5,910 | +9 | % | Total production |
6,453 | 6,110 | +6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,927 | 2,039 | 1,764 | +9 | % | Including equity affiliates |
1,983 | 1,863 | +6 | % | |||||||||||||||||||
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
Liquefied natural gas |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
2.76 | 2.64 | 2.39 | +15 | % | LNG sales(b) (Mt) |
5.39 | 5.21 | +3 | % |
(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 & Supply) |
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
Refined product sales by region (kb/d)(a) |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
2,372 | 2,288 | 2,100 | +13 | % | Europe |
2,330 | 2,078 | +12 | % | |||||||||||||||||||
597 | 501 | 657 | -9 | % | Africa |
549 | 660 | -17 | % | |||||||||||||||||||
597 | 531 | 625 | -4 | % | Americas |
564 | 603 | -6 | % | |||||||||||||||||||
705 | 771 | 641 | +10 | % | Rest of world |
738 | 649 | +14 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
4,271 | 4,091 | 4,023 | +6 | % | Total consolidated sales |
4,181 | 3,990 | +5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
717 | 699 | 632 | +13 | % | Including bulk sales |
708 | 630 | +12 | % | |||||||||||||||||||
1,761 | 1,635 | 1,569 | +12 | % | Including trading |
1,698 | 1,542 | +10 | % |
(a) | Includes share of TotalErg. |
8
ADJUSTMENT ITEMS
| Adjustments to operating income |
2Q16 |
1Q16 | 2Q15 | in millions of dollars |
1H16 | 1H15 | |||||||||||||||
(633 | ) | (464 | ) | (474 | ) | Special items affecting operating income |
(1,097 | ) | (1,851 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(8 | ) | (11 | ) | | Restructuring charges |
(19 | ) | | ||||||||||||
(200 | ) | | (248 | ) | Impairments |
(200 | ) | (1,294 | ) | |||||||||||
(425 | ) | (453 | ) | (226 | ) | Other |
(878 | ) | (557 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
634 | (282 | ) | 250 | Pre-tax inventory effect: FIFO vs. replacement cost |
352 | 478 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(6 | ) | 3 | (10 | ) | Effect of changes in fair value |
(3 | ) | (6 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(5 | ) | (743 | ) | (234 | ) | Total adjustments affecting operating income |
(748 | ) | (1,379 | ) |
| Adjustments to net operating income (Group share) |
2Q16 |
1Q16 | 2Q15 | in millions of dollars |
1H16 | 1H15 | |||||||||||||||
(486 | ) | 150 | (282 | ) | Special items affecting net income (Group share) |
(336 | ) | (377 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(14 | ) | 358 | 327 | Gain (loss) on asset sales |
344 | 1,329 | ||||||||||||||
(2 | ) | (2 | ) | | Restructuring charges |
(4 | ) | (31 | ) | |||||||||||
(178 | ) | | (245 | ) | Impairments |
(178 | ) | (1,354 | ) | |||||||||||
(292 | ) | (206 | ) | (364 | ) | Other |
(498 | ) | (321 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
405 | (183 | ) | 174 | After-tax inventory effect: FIFO vs. replacement cost |
222 | 328 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(5 | ) | 3 | (6 | ) | Effect of changes in fair value |
(2 | ) | (4 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(86 | ) | (30 | ) | (114 | ) | Total adjustments affecting net income |
(116 | ) | (53 | ) |
INVESTMENTS DIVESTMENTS
2Q16 | 1Q16 | 2Q15 | 2Q16 vs 2Q15 |
in millions of dollars |
1H16 | 1H15 | 1H16 vs 1H15 |
|||||||||||||||||||||
4,059 | 4,615 | 5,148 | -21 | % | Organic investments |
8,674 | 11,217 | -23 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
172 | 228 | 396 | -57 | % | Capitalized exploration |
400 | 796 | -50 | % | |||||||||||||||||||
257 | 572 | 391 | -34 | % | Increase in non-current loans |
829 | 1,184 | -30 | % | |||||||||||||||||||
(301 | ) | (100 | ) | (1,160 | ) | -74 | % | Repayment of non-current loans |
(401 | ) | (1,405 | ) | -71 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
206 | 193 | 282 | -27 | % | Acquisitions |
399 | 2,777 | -86 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
472 | 885 | 733 | -36 | % | Asset sales |
1,357 | 3,472 | -61 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
3 | | 81 | -96 | % | Other transactions with non-controlling interests |
3 | 81 | -96 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
3,790 | 3,923 | 4,616 | -18 | % | Net investments |
7,713 | 10,441 | -26 | % |
9
NET-DEBT-TO-EQUITY RATIO
in millions of dollars |
6/30/2016 | 3/31/2016 | 6/30/2015 | |||||||||
Current borrowings |
13,789 | 10,853 | 13,114 | |||||||||
Net current financial assets |
(1,628 | ) | (3,231 | ) | (2,351 | ) | ||||||
Net financial assets classified as held for sale |
(97 | ) | 83 | (16 | ) | |||||||
Non-current financial debt |
41,668 | 43,138 | 43,363 | |||||||||
Hedging instruments of non-current debt |
(1,251 | ) | (1,236 | ) | (1,157 | ) | ||||||
Cash and cash equivalents |
(22,653 | ) | (20,570 | ) | (27,322 | ) | ||||||
|
|
|
|
|
|
|||||||
Net debt |
29,828 | 29,042 | 25,631 | |||||||||
|
|
|
|
|
|
|||||||
Shareholders equity Group share |
97,985 | 96,443 | 97,244 | |||||||||
Estimated dividend payable |
(1,618 | ) | (3,250 | ) | (1,561 | ) | ||||||
Non-controlling interests |
2,904 | 2,960 | 3,104 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted shareholders equity |
99,271 | 96,153 | 98,787 | |||||||||
|
|
|
|
|
|
|||||||
Net-debt-to-equity ratio |
30.0 | % | 30.2 | % | 25.9 | % |
RETURN ON EQUITY
in millions of dollars |
July 1, 2015 to June 30, 2016 |
April 1, 2015 to March 31, 2016 |
January 1, 2015 to December 31, 2015 |
|||||||||
Adjusted net income |
8,817 | 9,742 | 10,698 | |||||||||
Average adjusted shareholders equity |
99,029 | 95,643 | 92,854 | |||||||||
|
|
|
|
|
|
|||||||
Return on equity (ROE) |
8.9 | % | 10.2 | % | 11.5 | % |
RETURN ON AVERAGE CAPITAL EMPLOYED
| Twelve months ended June 30, 2016 |
in millions of dollars |
Upstream | Refining & Chemicals |
Marketing & Services |
|||||||||
Adjusted net operating income |
3,480 | 4,586 | 1,583 | |||||||||
Capital employed at 6/30/2015(a) |
107,214 | 12,013 | 8,234 | |||||||||
Capital employed at 6/30/2016(a) |
108,733 | 12,249 | 9,021 | |||||||||
|
|
|
|
|
|
|||||||
ROACE |
3.2 | % | 37.8 | % | 18.3 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
| 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 3/31/2015(a) |
103,167 | 12,534 | 7,928 | |||||||||
Capital employed at 3/31/2016(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 |
4,744 | 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 ($/b)(c) |
Average gas price ($/Mbtu)(c) |
||||||||||||||||
Second quarter 2016 |
1.13 | 35.0 | 45.6 | 43.0 | 3.43 | |||||||||||||||
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 |
(a) | The European Refining Margin Indicator (ERMI) is a Group indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by the Group in any period because of the 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) |
2nd quarter 2016 |
1st quarter 2016 |
2nd quarter 2015 |
|||||||||
Sales |
37,215 | 32,841 | 44,715 | |||||||||
Excise taxes |
(5,504 | ) | (5,319 | ) | (5,446 | ) | ||||||
Revenues from sales |
31,711 | 27,522 | 39,269 | |||||||||
Purchases, net of inventory variation |
(20,548 | ) | (17,639 | ) | (26,353 | ) | ||||||
Other operating expenses |
(5,906 | ) | (6,136 | ) | (6,031 | ) | ||||||
Exploration costs |
(536 | ) | (194 | ) | (352 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,968 | ) | (2,680 | ) | (2,831 | ) | ||||||
Other income |
172 | 500 | 722 | |||||||||
Other expense |
(133 | ) | (70 | ) | (396 | ) | ||||||
Financial interest on debt |
(267 | ) | (274 | ) | (231 | ) | ||||||
Financial income from marketable securities & cash equivalents |
1 | 10 | 28 | |||||||||
Cost of net debt |
(266 | ) | (264 | ) | (203 | ) | ||||||
Other financial income |
312 | 191 | 255 | |||||||||
Other financial expense |
(166 | ) | (155 | ) | (163 | ) | ||||||
Equity in net income (loss) of affiliates |
776 | 498 | 685 | |||||||||
Income taxes |
(330 | ) | 48 | (1,589 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,118 | 1,621 | 3,013 | |||||||||
|
|
|
|
|
|
|||||||
Group share |
2,088 | 1,606 | 2,971 | |||||||||
Non-controlling interests |
30 | 15 | 42 | |||||||||
|
|
|
|
|
|
|||||||
Earnings per share ($) |
0.86 | 0.67 | 1.29 | |||||||||
|
|
|
|
|
|
|||||||
Fully-diluted earnings per share ($) |
0.86 | 0.67 | 1.29 | |||||||||
|
|
|
|
|
|
(a) | Except for per share amounts. |
12
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) |
2nd quarter 2016 |
1st quarter 2016 |
2nd quarter 2015 |
|||||||||
Consolidated net income |
2,118 | 1,621 | 3,013 | |||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
||||||||||||
Actuarial gains and losses |
(132 | ) | (81 | ) | 248 | |||||||
Tax effect |
40 | 32 | (81 | ) | ||||||||
Currency translation adjustment generated by the parent company |
(2,113 | ) | 3,641 | 2,963 | ||||||||
|
|
|
|
|
|
|||||||
Items not potentially reclassifiable to profit and loss |
(2,205 | ) | 3,592 | 3,130 | ||||||||
|
|
|
|
|
|
|||||||
Currency translation adjustment |
589 | (1,944 | ) | (1,160 | ) | |||||||
Available for sale financial assets |
(4 | ) | (10 | ) | (12 | ) | ||||||
Cash flow hedge |
(66 | ) | 98 | 36 | ||||||||
Share of other comprehensive income of equity affiliates, net amount |
355 | (1 | ) | (201 | ) | |||||||
Other |
| 3 | (2 | ) | ||||||||
Tax effect |
21 | (24 | ) | (8 | ) | |||||||
|
|
|
|
|
|
|||||||
Items potentially reclassifiable to profit and loss |
895 | (1,878 | ) | (1,347 | ) | |||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (net amount) |
(1,310 | ) | 1,714 | 1,783 | ||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
808 | 3,335 | 4,796 | |||||||||
|
|
|
|
|
|
|||||||
Group share |
795 | 3,308 | 4,749 | |||||||||
Non-controlling interests |
13 | 27 | 47 |
13
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) |
1st half 2016 |
1st half 2015 |
||||||
Sales |
70,056 | 87,028 | ||||||
Excise taxes |
(10,823 | ) | (10,796 | ) | ||||
Revenues from sales |
59,233 | 76,232 | ||||||
Purchases, net of inventory variation |
(38,187 | ) | (50,557 | ) | ||||
Other operating expenses |
(12,042 | ) | (12,303 | ) | ||||
Exploration costs |
(730 | ) | (989 | ) | ||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,648 | ) | (6,703 | ) | ||||
Other income |
672 | 2,343 | ||||||
Other expense |
(203 | ) | (838 | ) | ||||
Financial interest on debt |
(541 | ) | (493 | ) | ||||
Financial income from marketable securities & cash equivalents |
11 | 59 | ||||||
Cost of net debt |
(530 | ) | (434 | ) | ||||
Other financial income |
503 | 397 | ||||||
Other financial expense |
(321 | ) | (329 | ) | ||||
Equity in net income (loss) of affiliates |
1,274 | 1,275 | ||||||
Income taxes |
(282 | ) | (2,573 | ) | ||||
|
|
|
|
|||||
Consolidated net income |
3,739 | 5,521 | ||||||
|
|
|
|
|||||
Group share |
3,694 | 5,634 | ||||||
Non-controlling interests |
45 | (113 | ) | |||||
|
|
|
|
|||||
Earnings per share ($) |
1.54 | 2.46 | ||||||
|
|
|
|
|||||
Fully-diluted earnings per share ($) |
1.53 | 2.45 | ||||||
|
|
|
|
(a) | Except for per share amounts. |
14
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) |
1st half 2016 |
1st half 2015 |
||||||
Consolidated net income |
3,739 | 5,521 | ||||||
|
|
|
|
|||||
Other comprehensive income |
||||||||
Actuarial gains and losses |
(213 | ) | 153 | |||||
Tax effect |
72 | (117 | ) | |||||
Currency translation adjustment generated by the parent company |
1,528 | (5,229 | ) | |||||
|
|
|
|
|||||
Items not potentially reclassifiable to profit and loss |
1,387 | (5,193 | ) | |||||
|
|
|
|
|||||
Currency translation adjustment |
(1,355 | ) | 2,588 | |||||
Available for sale financial assets |
(14 | ) | (4 | ) | ||||
Cash flow hedge |
32 | (94 | ) | |||||
Share of other comprehensive income of equity affiliates, net amount |
354 | 841 | ||||||
Other |
3 | 1 | ||||||
Tax effect |
(3 | ) | 29 | |||||
|
|
|
|
|||||
Items potentially reclassifiable to profit and loss |
(983 | ) | 3,361 | |||||
|
|
|
|
|||||
Total other comprehensive income (net amount) |
404 | (1,832 | ) | |||||
|
|
|
|
|||||
|
|
|
|
|||||
Comprehensive income |
4,143 | 3,689 | ||||||
|
|
|
|
|||||
Group share |
4,103 | 3,833 | ||||||
Non-controlling interests |
40 | (144 | ) |
15
CONSOLIDATED BALANCE SHEET
TOTAL
(M$) |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
June 30, 2015 |
||||||||||||
(unaudited) | (unaudited) |
|
(unaudited) | |||||||||||||
ASSETS |
||||||||||||||||
Non-current assets |
||||||||||||||||
Intangible assets, net |
14,207 | 14,512 | 14,549 | 16,101 | ||||||||||||
Property, plant and equipment, net |
111,420 | 111,636 | 109,518 | 110,023 | ||||||||||||
Equity affiliates : investments and loans |
20,683 | 20,411 | 19,384 | 19,380 | ||||||||||||
Other investments |
1,411 | 1,413 | 1,241 | 1,248 | ||||||||||||
Hedging instruments of non-current financial debt |
1,251 | 1,236 | 1,219 | 1,157 | ||||||||||||
Deferred income taxes |
4,175 | 3,955 | 3,982 | 3,145 | ||||||||||||
Other non-current assets |
4,467 | 4,329 | 4,355 | 4,047 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current assets |
157,614 | 157,492 | 154,248 | 155,101 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current assets |
||||||||||||||||
Inventories, net |
15,021 | 13,887 | 13,116 | 17,373 | ||||||||||||
Accounts receivable, net |
11,933 | 12,220 | 10,629 | 14,415 | ||||||||||||
Other current assets |
14,850 | 15,827 | 15,843 | 15,072 | ||||||||||||
Current financial assets |
2,018 | 3,439 | 6,190 | 2,439 | ||||||||||||
Cash and cash equivalents |
22,653 | 20,570 | 23,269 | 27,322 | ||||||||||||
Assets classified as held for sale |
1,257 | 724 | 1,189 | 2,754 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
67,732 | 66,667 | 70,236 | 79,375 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
225,346 | 224,159 | 224,484 | 234,476 | ||||||||||||
LIABILITIES & SHAREHOLDERS EQUITY |
||||||||||||||||
Shareholders equity |
||||||||||||||||
Common shares |
7,846 | 7,709 | 7,670 | 7,549 | ||||||||||||
Paid-in surplus and retained earnings |
106,343 | 103,766 | 101,528 | 103,286 | ||||||||||||
Currency translation adjustment |
(11,619 | ) | (10,447 | ) | (12,119 | ) | (9,243 | ) | ||||||||
Treasury shares |
(4,585 | ) | (4,585 | ) | (4,585 | ) | (4,348 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equityGroup share |
97,985 | 96,443 | 92,494 | 97,244 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-controlling interests |
2,904 | 2,960 | 2,915 | 3,104 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity |
100,889 | 99,403 | 95,409 | 100,348 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||||||
Deferred income taxes |
11,345 | 11,766 | 12,360 | 13,458 | ||||||||||||
Employee benefits |
3,887 | 3,984 | 3,774 | 4,426 | ||||||||||||
Provisions and other non-current liabilities |
17,270 | 17,607 | 17,502 | 17,353 | ||||||||||||
Non-current financial debt |
41,668 | 43,138 | 44,464 | 43,363 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
74,170 | 76,495 | 78,100 | 78,600 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current liabilities |
||||||||||||||||
Accounts payable |
20,478 | 20,887 | 20,928 | 22,469 | ||||||||||||
Other creditors and accrued liabilities |
14,983 | 15,938 | 16,884 | 18,718 | ||||||||||||
Current borrowings |
13,789 | 10,858 | 12,488 | 13,114 | ||||||||||||
Other current financial liabilities |
390 | 208 | 171 | 88 | ||||||||||||
Liabilities directly associated with the assets classified as held for sale |
647 | 370 | 504 | 1,139 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current liabilities |
50,287 | 48,261 | 50,975 | 55,528 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities & shareholders equity |
225,346 | 224,159 | 224,484 | 234,476 |
16
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) |
2nd quarter 2016 |
1st quarter 2016 |
2nd quarter 2015 |
|||||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||||||
Consolidated net income |
2,118 | 1,621 | 3,013 | |||||||||
Depreciation, depletion, amortization and impairment |
3,361 | 2,735 | 3,113 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes |
(477 | ) | (268 | ) | 285 | |||||||
Impact of coverage of pension benefit plans |
| | | |||||||||
(Gains) losses on disposals of assets |
(48 | ) | (367 | ) | (459 | ) | ||||||
Undistributed affiliates equity earnings |
(280 | ) | (236 | ) | (221 | ) | ||||||
(Increase) decrease in working capital |
(1,752 | ) | (1,545 | ) | (835 | ) | ||||||
Other changes, net |
(40 | ) | (59 | ) | (164 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash flow from operating activities |
2,882 | 1,881 | 4,732 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||||||
Intangible assets and property, plant and equipment additions |
(4,094 | ) | (4,146 | ) | (5,991 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired |
11 | (133 | ) | (3 | ) | |||||||
Investments in equity affiliates and other securities |
(226 | ) | (57 | ) | (205 | ) | ||||||
Increase in non-current loans |
(257 | ) | (572 | ) | (391 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenditures |
(4,566 | ) | (4,908 | ) | (6,590 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment |
200 | 792 | 221 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold |
270 | | 403 | |||||||||
Proceeds from disposals of non-current investments |
2 | 93 | 109 | |||||||||
Repayment of non-current loans |
301 | 100 | 1,160 | |||||||||
|
|
|
|
|
|
|||||||
Total divestments |
773 | 985 | 1,893 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow used in investing activities |
(3,793 | ) | (3,923 | ) | (4,697 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||||||
Issuance (repayment) of shares: |
||||||||||||
- Parent company shareholders |
4 | | 438 | |||||||||
- Treasury shares |
| | | |||||||||
Dividends paid: |
||||||||||||
- Parent company shareholders |
(1,173 | ) | (954 | ) | (6 | ) | ||||||
- Non-controlling interests |
(72 | ) | (3 | ) | (70 | ) | ||||||
Issuance of perpetual subordinated notes |
1,950 | | | |||||||||
Payments on perpetual subordinated notes |
| (133 | ) | | ||||||||
Other transactions with non-controlling interests |
3 | | 81 | |||||||||
Net issuance (repayment) of non-current debt |
400 | 154 | 1,635 | |||||||||
Increase (decrease) in current borrowings |
1,011 | (3,027 | ) | (512 | ) | |||||||
Increase (decrease) in current financial assets and liabilities |
1,399 | 2,746 | (79 | ) | ||||||||
Cash flow used in financing activities |
3,522 | (1,217 | ) | 1,487 | ||||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and cash equivalents |
2,611 | (3,259 | ) | 1,522 | ||||||||
Effect of exchange rates |
(528 | ) | 560 | 749 | ||||||||
Cash and cash equivalents at the beginning of the period |
20,570 | 23,269 | 25,051 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period |
22,653 | 20,570 | 27,322 | |||||||||
|
|
|
|
|
|
17
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) |
1st half 2016 |
1st half 2015 |
||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||
Consolidated net income |
3,739 | 5,521 | ||||||
Depreciation, depletion, amortization and impairment |
6,096 | 7,537 | ||||||
Non-current liabilities, valuation allowances and deferred taxes |
(745 | ) | (161 | ) | ||||
Impact of coverage of pension benefit plans |
| | ||||||
(Gains) losses on disposals of assets |
(415 | ) | (1,816 | ) | ||||
Undistributed affiliates equity earnings |
(516 | ) | (289 | ) | ||||
(Increase) decrease in working capital |
(3,297 | ) | (1,311 | ) | ||||
Other changes, net |
(99 | ) | (362 | ) | ||||
|
|
|
|
|||||
Cash flow from operating activities |
4,763 | 9,119 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||
Intangible assets and property, plant and equipment additions |
(8,240 | ) | (13,947 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired |
(122 | ) | (10 | ) | ||||
Investments in equity affiliates and other securities |
(283 | ) | (258 | ) | ||||
Increase in non-current loans |
(829 | ) | (1,184 | ) | ||||
|
|
|
|
|||||
Total expenditures |
(9,474 | ) | (15,399 | ) | ||||
Proceeds from disposals of intangible assets and property, plant and equipment |
992 | 1,180 | ||||||
Proceeds from disposals of subsidiaries, net of cash sold |
270 | 2,161 | ||||||
Proceeds from disposals of non-current investments |
95 | 131 | ||||||
Repayment of non-current loans |
401 | 1,405 | ||||||
|
|
|
|
|||||
Total divestments |
1,758 | 4,877 | ||||||
|
|
|
|
|||||
Cash flow used in investing activities |
(7,716 | ) | (10,522 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||
Issuance (repayment) of shares: |
||||||||
- Parent company shareholders |
4 | 450 | ||||||
- Treasury shares |
| | ||||||
Dividends paid: |
||||||||
- Parent company shareholders |
(2,127 | ) | (1,572 | ) | ||||
- Non-controlling interests |
(75 | ) | (72 | ) | ||||
Issuance of perpetual subordinated notes |
1,950 | 5,616 | ||||||
Payments on perpetual subordinated notes |
(133 | ) | | |||||
Other transactions with non-controlling interests |
3 | 81 | ||||||
Net issuance (repayment) of non-current debt |
554 | 1,771 | ||||||
Increase (decrease) in current borrowings |
(2,016 | ) | (89 | ) | ||||
Increase (decrease) in current financial assets and liabilities |
4,145 | (1,101 | ) | |||||
Cash flow used in financing activities |
2,305 | 5,084 | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
(648 | ) | 3,681 | |||||
Effect of exchange rates |
32 | (1,540 | ) | |||||
Cash and cash equivalents at the beginning of the period |
23,269 | 25,181 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at the end of the period |
22,653 | 27,322 | ||||||
|
|
|
|
18
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 half 2015 |
| | 5,634 | | | | 5,634 | (113 | ) | 5,521 | ||||||||||||||||||||||||||
Other comprehensive Income |
| | (38 | ) | (1,763 | ) | | | (1,801 | ) | (31 | ) | (1,832 | ) | ||||||||||||||||||||||
Comprehensive Income |
| | 5,596 | (1,763 | ) | | | 3,833 | (144 | ) | 3,689 | |||||||||||||||||||||||||
Dividend |
| | (3,123 | ) | | | | (3,123 | ) | (72 | ) | (3,195 | ) | |||||||||||||||||||||||
Issuance of common shares |
11,092,565 | 31 | 419 | | | | 450 | | 450 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (6 | ) | | 103,150 | 6 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 69 | | | | 69 | | 69 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | 5,616 | | | | 5,616 | | 5,616 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (31 | ) | | | | (31 | ) | | (31 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | 21 | | | | 21 | 57 | 78 | |||||||||||||||||||||||||||
Other items |
| | 79 | | | | 79 | 62 | 141 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of June 30, 2015 |
2,396,360,090 | 7,549 | 103,286 | (9,243 | ) | (109,258,263 | ) | (4,348 | ) | 97,244 | 3,104 | 100,348 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income from July 1 to December 31, 2015 |
| | (547 | ) | | | | (547 | ) | (188 | ) | (735 | ) | |||||||||||||||||||||||
Other comprehensive Income |
| | 223 | (2,876 | ) | | | (2,653 | ) | (50 | ) | (2,703 | ) | |||||||||||||||||||||||
Comprehensive Income |
| | (324 | ) | (2,876 | ) | | | (3,200 | ) | (238 | ) | (3,438 | ) | ||||||||||||||||||||||
Dividend |
| | (3,180 | ) | | | | (3,180 | ) | (28 | ) | (3,208 | ) | |||||||||||||||||||||||
Issuance of common shares |
43,697,793 | 121 | 1,740 | | | | 1,861 | | 1,861 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | (4,711,935 | ) | (237 | ) | (237 | ) | | (237 | ) | |||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 2,440 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 32 | | | | 32 | | 32 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | | | | | | | | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (83 | ) | | | | (83 | ) | | (83 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | 2 | | | | 2 | 7 | 9 | |||||||||||||||||||||||||||
Other items |
| | 55 | | | | 55 | 70 | 125 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
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 half 2016 |
| | 3,694 | | | | 3,694 | 45 | 3,739 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (91 | ) | 500 | | | 409 | (5 | ) | 404 | |||||||||||||||||||||||||
Comprehensive Income |
| | 3,603 | 500 | | | 4,103 | 40 | 4,143 | |||||||||||||||||||||||||||
Dividend |
| | (3,188 | ) | | | | (3,188 | ) | (75 | ) | (3,263 | ) | |||||||||||||||||||||||
Issuance of common shares |
63,204,391 | 176 | 2,490 | | | | 2,666 | | 2,666 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 1,580 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 52 | | | | 52 | | 52 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | 1,950 | | | | 1,950 | | 1,950 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (77 | ) | | | | (77 | ) | | (77 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | (40 | ) | | | | (40 | ) | 6 | (34 | ) | ||||||||||||||||||||||||
Other items |
| | 25 | | | | 25 | 18 | 43 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of June 30, 2016 |
2,503,262,274 | 7,846 | 106,343 | (11,619 | ) | (113,966,178 | ) | (4,585 | ) | 97,985 | 2,904 | 100,889 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Treasury shares related to the restricted stock grants. |
19
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,344 | 16,567 | 17,305 | (1 | ) | | 37,215 | |||||||||||||||||
Intersegment sales |
4,159 | 5,540 | 208 | 81 | (9,988 | ) | | |||||||||||||||||
Excise taxes |
| (924 | ) | (4,580 | ) | | | (5,504 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,503 | 21,183 | 12,933 | 80 | (9,988 | ) | 31,711 | |||||||||||||||||
Operating expenses |
(4,956 | ) | (19,521 | ) | (12,208 | ) | (293 | ) | 9,988 | (26,990 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,531 | ) | (246 | ) | (183 | ) | (8 | ) | | (2,968 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
16 | 1,416 | 542 | (221 | ) | | 1,753 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
569 | 260 | 34 | 98 | | 961 | ||||||||||||||||||
Tax on net operating income |
180 | (379 | ) | (190 | ) | (8 | ) | | (397 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
765 | 1,297 | 386 | (131 | ) | | 2,317 | |||||||||||||||||
Net cost of net debt |
(199 | ) | ||||||||||||||||||||||
Non-controlling interests |
(30 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,088 | |||||||||||||||||||||||
2nd quarter 2016 (adjustments) (a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(6 | ) | | | | | (6 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(6 | ) | | | | | (6 | ) | ||||||||||||||||
Operating expenses |
(358 | ) | 451 | 108 | | | 201 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(564 | ) | 451 | 108 | | | (5 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
| (27 | ) | (62 | ) | | | (89 | ) | |||||||||||||||
Tax on net operating income |
202 | (145 | ) | (38 | ) | | | 19 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(362 | ) | 279 | 8 | | | (75 | ) | ||||||||||||||||
Net cost of net debt |
(5 | ) | ||||||||||||||||||||||
Non-controlling interests |
(6 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(86 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
|
|||||||||||||||||||||||
On operating income |
| 516 | 118 | | ||||||||||||||||||||
On net operating income |
| 331 | 84 | | ||||||||||||||||||||
2nd quarter 2016 (adjusted) (M$) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,350 | 16,567 | 17,305 | (1 | ) | | 37,221 | |||||||||||||||||
Intersegment sales |
4,159 | 5,540 | 208 | 81 | (9,988 | ) | | |||||||||||||||||
Excise taxes |
| (924 | ) | (4,580 | ) | | | (5,504 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,509 | 21,183 | 12,933 | 80 | (9,988 | ) | 31,717 | |||||||||||||||||
Operating expenses |
(4,598 | ) | (19,972 | ) | (12,316 | ) | (293 | ) | 9,988 | (27,191 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,331 | ) | (246 | ) | (183 | ) | (8 | ) | | (2,768 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
580 | 965 | 434 | (221 | ) | | 1,758 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
569 | 287 | 96 | 98 | | 1,050 | ||||||||||||||||||
Tax on net operating income |
(22 | ) | (234 | ) | (152 | ) | (8 | ) | | (416 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,127 | 1,018 | 378 | (131 | ) | | 2,392 | |||||||||||||||||
Net cost of net debt |
(194 | ) | ||||||||||||||||||||||
Non-controlling interests |
(24 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,174 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.90 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
2nd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
3,539 | 480 | 339 | 208 | | 4,566 | ||||||||||||||||||
Total divestments |
448 | 23 | 296 | 6 | | 773 | ||||||||||||||||||
Cash flow from operating activities |
983 | 1,560 | (15 | ) | 354 | | 2,882 |
20
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
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 (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) (M$) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,592 | 13,938 | 15,433 | 4 | | 32,967 | ||||||||||||||||||
Intersegment sales |
3,262 | 4,148 | 132 | 70 | (7,612 | ) | | |||||||||||||||||
Excise taxes |
| (961 | ) | (4,358 | ) | | | (5,319 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
6,854 | 17,125 | 11,207 | 74 | (7,612 | ) | 27,648 | |||||||||||||||||
Operating expenses |
(4,465 | ) | (15,575 | ) | (10,704 | ) | (220 | ) | 7,612 | (23,352 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,247 | ) | (253 | ) | (172 | ) | (8 | ) | | (2,680 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
142 | 1,297 | 331 | (154 | ) | | 1,616 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
341 | 177 | 31 | 103 | | 652 | ||||||||||||||||||
Tax on net operating income |
15 | (346 | ) | (110 | ) | 37 | | (404 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
498 | 1,128 | 252 | (14 | ) | | 1,864 | |||||||||||||||||
Net cost of net debt |
(204 | ) | ||||||||||||||||||||||
Non-controlling interests |
(24 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
1,636 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.68 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
4,237 | 259 | 390 | 22 | | 4,908 | ||||||||||||||||||
Total divestments |
915 | 29 | 37 | 4 | | 985 | ||||||||||||||||||
Cash flow from operating activities |
2,113 | (421 | ) | 240 | (51 | ) | | 1,881 |
21
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,498 | 19,793 | 20,419 | 5 | | 44,715 | ||||||||||||||||||
Intersegment sales |
4,921 | 7,383 | 223 | 56 | (12,583 | ) | | |||||||||||||||||
Excise taxes |
| (1,007 | ) | (4,439 | ) | | | (5,446 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,419 | 26,169 | 16,203 | 61 | (12,583 | ) | 39,269 | |||||||||||||||||
Operating expenses |
(5,449 | ) | (24,182 | ) | (15,508 | ) | (180 | ) | 12,583 | (32,736 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,329 | ) | (291 | ) | (202 | ) | (9 | ) | | (2,831 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
1,641 | 1,696 | 493 | (128 | ) | | 3,702 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
319 | 107 | 503 | 174 | | 1,103 | ||||||||||||||||||
Tax on net operating income |
(909 | ) | (433 | ) | (193 | ) | (93 | ) | | (1,628 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,051 | 1,370 | 803 | (47 | ) | | 3,177 | |||||||||||||||||
Net cost of net debt |
(164 | ) | ||||||||||||||||||||||
Non-controlling interests |
(42 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,971 | |||||||||||||||||||||||
2nd quarter 2015 (adjustments) (a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(158 | ) | | | | | (158 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(158 | ) | | | | | (158 | ) | ||||||||||||||||
Operating expenses |
(2 | ) | 123 | 51 | | | 172 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(194 | ) | (31 | ) | (23 | ) | | | (248 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(354 | ) | 92 | 28 | | | (234 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
(191 | ) | (71 | ) | 374 | | | 112 | ||||||||||||||||
Tax on net operating income |
36 | | (24 | ) | | | 12 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(509 | ) | 21 | 378 | | | (110 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
(4 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(114 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
|
|||||||||||||||||||||||
On operating income |
| 199 | 51 | | ||||||||||||||||||||
On net operating income |
| 138 | 43 | | ||||||||||||||||||||
2nd quarter 2015 (adjusted) (M$) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,656 | 19,793 | 20,419 | 5 | | 44,873 | ||||||||||||||||||
Intersegment sales |
4,921 | 7,383 | 223 | 56 | (12,583 | ) | | |||||||||||||||||
Excise taxes |
| (1,007 | ) | (4,439 | ) | | | (5,446 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,577 | 26,169 | 16,203 | 61 | (12,583 | ) | 39,427 | |||||||||||||||||
Operating expenses |
(5,447 | ) | (24,305 | ) | (15,559 | ) | (180 | ) | 12,583 | (32,908 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,135 | ) | (260 | ) | (179 | ) | (9 | ) | | (2,583 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,995 | 1,604 | 465 | (128 | ) | | 3,936 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
510 | 178 | 129 | 174 | | 991 | ||||||||||||||||||
Tax on net operating income |
(945 | ) | (433 | ) | (169 | ) | (93 | ) | | (1,640 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,560 | 1,349 | 425 | (47 | ) | | 3,287 | |||||||||||||||||
Net cost of net debt |
(164 | ) | ||||||||||||||||||||||
Non-controlling interests |
(38 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
3,085 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.34 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
2nd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,653 | 465 | 436 | 36 | | 6,590 | ||||||||||||||||||
Total divestments |
379 | 874 | 627 | 13 | | 1,893 | ||||||||||||||||||
Cash flow from operating activities |
2,713 | 1,700 | 379 | (60 | ) | | 4,732 |
22
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st half 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,810 | 30,505 | 32,738 | 3 | | 70,056 | ||||||||||||||||||
Intersegment sales |
7,421 | 9,688 | 340 | 151 | (17,600 | ) | | |||||||||||||||||
Excise taxes |
| (1,885 | ) | (8,938 | ) | | | (10,823 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
14,231 | 38,308 | 24,140 | 154 | (17,600 | ) | 59,233 | |||||||||||||||||
Operating expenses |
(9,754 | ) | (35,303 | ) | (22,989 | ) | (513 | ) | 17,600 | (50,959 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,778 | ) | (499 | ) | (355 | ) | (16 | ) | | (5,648 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(301 | ) | 2,506 | 796 | (375 | ) | | 2,626 | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,239 | 437 | 48 | 201 | | 1,925 | ||||||||||||||||||
Tax on net operating income |
493 | (655 | ) | (270 | ) | 29 | | (403 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,431 | 2,288 | 574 | (145 | ) | | 4,148 | |||||||||||||||||
Net cost of net debt |
(409 | ) | ||||||||||||||||||||||
Non-controlling interests |
(45 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,694 | |||||||||||||||||||||||
1st half 2016 (adjustments) (a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(132 | ) | | | | | (132 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(132 | ) | | | | | (132 | ) | ||||||||||||||||
Operating expenses |
(691 | ) | 244 | 31 | | | (416 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,023 | ) | 244 | 31 | | | (748 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
329 | (27 | ) | (79 | ) | | | 223 | ||||||||||||||||
Tax on net operating income |
500 | (75 | ) | (8 | ) | | | 417 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(194 | ) | 142 | (56 | ) | | | (108 | ) | |||||||||||||||
Net cost of net debt |
(11 | ) | ||||||||||||||||||||||
Non-controlling interests |
3 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(116 | ) | ||||||||||||||||||||||
(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 |
| 311 | 41 | | ||||||||||||||||||||
On net operating income |
| 198 | 34 | | ||||||||||||||||||||
1st half 2016 (adjusted) (M$) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,942 | 30,505 | 32,738 | 3 | | 70,188 | ||||||||||||||||||
Intersegment sales |
7,421 | 9,688 | 340 | 151 | (17,600 | ) | | |||||||||||||||||
Excise taxes |
| (1,885 | ) | (8,938 | ) | | | (10,823 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
14,363 | 38,308 | 24,140 | 154 | (17,600 | ) | 59,365 | |||||||||||||||||
Operating expenses |
(9,063 | ) | (35,547 | ) | (23,020 | ) | (513 | ) | 17,600 | (50,543 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,578 | ) | (499 | ) | (355 | ) | (16 | ) | | (5,448 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
722 | 2,262 | 765 | (375 | ) | | 3,374 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
910 | 464 | 127 | 201 | | 1,702 | ||||||||||||||||||
Tax on net operating income |
(7 | ) | (580 | ) | (262 | ) | 29 | | (820 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,625 | 2,146 | 630 | (145 | ) | | 4,256 | |||||||||||||||||
Net cost of net debt |
(398 | ) | ||||||||||||||||||||||
Non-controlling interests |
(48 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
3,810 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.58 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st half 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
7,776 | 739 | 729 | 230 | | 9,474 | ||||||||||||||||||
Total divestments |
1,363 | 52 | 333 | 10 | | 1,758 | ||||||||||||||||||
Cash flow from operating activities |
3,096 | 1,139 | 225 | 303 | | 4,763 |
23
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
1st half 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,723 | 37,257 | 40,039 | 9 | | 87,028 | ||||||||||||||||||
Intersegment sales |
9,305 | 14,350 | 495 | 108 | (24,258 | ) | | |||||||||||||||||
Excise taxes |
| (1,940 | ) | (8,856 | ) | | | (10,796 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
19,028 | 49,667 | 31,678 | 117 | (24,258 | ) | 76,232 | |||||||||||||||||
Operating expenses |
(11,418 | ) | (45,899 | ) | (30,371 | ) | (419 | ) | 24,258 | (63,849 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,770 | ) | (543 | ) | (376 | ) | (14 | ) | | (6,703 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
1,840 | 3,225 | 931 | (316 | ) | | 5,680 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,088 | 869 | 423 | 468 | | 2,848 | ||||||||||||||||||
Tax on net operating income |
(1,277 | ) | (879 | ) | (324 | ) | (175 | ) | | (2,655 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,651 | 3,215 | 1,030 | (23 | ) | | 5,873 | |||||||||||||||||
Net cost of net debt |
(352 | ) | ||||||||||||||||||||||
Non-controlling interests |
113 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,634 | |||||||||||||||||||||||
1st half 2015 (adjustments) (a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(304 | ) | | | | | (304 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(304 | ) | | | | | (304 | ) | ||||||||||||||||
Operating expenses |
(142 | ) | 317 | 44 | | | 219 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,240 | ) | (31 | ) | (23 | ) | | | (1,294 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,686 | ) | 286 | 21 | | | (1,379 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
(55 | ) | 590 | 285 | | | 820 | |||||||||||||||||
Tax on net operating income |
473 | (110 | ) | (22 | ) | | | 341 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(1,268 | ) | 766 | 284 | | | (218 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
165 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(53 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
|
|||||||||||||||||||||||
On operating income |
| 434 | 44 | | ||||||||||||||||||||
On net operating income |
| 288 | 38 | | ||||||||||||||||||||
1st half 2015 (adjusted) (M$) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,027 | 37,257 | 40,039 | 9 | | 87,332 | ||||||||||||||||||
Intersegment sales |
9,305 | 14,350 | 495 | 108 | (24,258 | ) | | |||||||||||||||||
Excise taxes |
| (1,940 | ) | (8,856 | ) | | | (10,796 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
19,332 | 49,667 | 31,678 | 117 | (24,258 | ) | 76,536 | |||||||||||||||||
Operating expenses |
(11,276 | ) | (46,216 | ) | (30,415 | ) | (419 | ) | 24,258 | (64,068 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,530 | ) | (512 | ) | (353 | ) | (14 | ) | | (5,409 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
3,526 | 2,939 | 910 | (316 | ) | | 7,059 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,143 | 279 | 138 | 468 | | 2,028 | ||||||||||||||||||
Tax on net operating income |
(1,750 | ) | (769 | ) | (302 | ) | (175 | ) | | (2,996 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,919 | 2,449 | 746 | (23 | ) | | 6,091 | |||||||||||||||||
Net cost of net debt |
(352 | ) | ||||||||||||||||||||||
Non-controlling interests |
(52 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,687 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
2.47 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st half 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
13,804 | 899 | 651 | 45 | | 15,399 | ||||||||||||||||||
Total divestments |
1,541 | 2,640 | 679 | 17 | | 4,877 | ||||||||||||||||||
Cash flow from operating activities |
6,238 | 2,014 | 1,023 | (156 | ) | | 9,119 |
24
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
2nd quarter 2016 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
37,221 | (6 | ) | 37,215 | ||||||||
Excise taxes |
(5,504 | ) | | (5,504 | ) | |||||||
Revenues from sales |
31,717 | (6 | ) | 31,711 | ||||||||
Purchases, net of inventory variation |
(21,130 | ) | 582 | (20,548 | ) | |||||||
Other operating expenses |
(5,875 | ) | (31 | ) | (5,906 | ) | ||||||
Exploration costs |
(186 | ) | (350 | ) | (536 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,768 | ) | (200 | ) | (2,968 | ) | ||||||
Other income |
172 | | 172 | |||||||||
Other expense |
(65 | ) | (68 | ) | (133 | ) | ||||||
Financial interest on debt |
(262 | ) | (5 | ) | (267 | ) | ||||||
Financial income from marketable securities & cash equivalents |
1 | | 1 | |||||||||
Cost of net debt |
(261 | ) | (5 | ) | (266 | ) | ||||||
Other financial income |
312 | | 312 | |||||||||
Other financial expense |
(166 | ) | | (166 | ) | |||||||
Equity in net income (loss) of affiliates |
797 | (21 | ) | 776 | ||||||||
Income taxes |
(349 | ) | 19 | (330 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,198 | (80 | ) | 2,118 | ||||||||
Group share |
2,174 | (86 | ) | 2,088 | ||||||||
Non-controlling interests |
24 | 6 | 30 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
2nd quarter 2015 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
44,873 | (158 | ) | 44,715 | ||||||||
Excise taxes |
(5,446 | ) | | (5,446 | ) | |||||||
Revenues from sales |
39,427 | (158 | ) | 39,269 | ||||||||
Purchases, net of inventory variation |
(26,603 | ) | 250 | (26,353 | ) | |||||||
Other operating expenses |
(5,955 | ) | (76 | ) | (6,031 | ) | ||||||
Exploration costs |
(350 | ) | (2 | ) | (352 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,583 | ) | (248 | ) | (2,831 | ) | ||||||
Other income |
358 | 364 | 722 | |||||||||
Other expense |
(136 | ) | (260 | ) | (396 | ) | ||||||
Financial interest on debt |
(231 | ) | | (231 | ) | |||||||
Financial income from marketable securities & cash equivalents |
28 | | 28 | |||||||||
Cost of net debt |
(203 | ) | | (203 | ) | |||||||
Other financial income |
255 | | 255 | |||||||||
Other financial expense |
(163 | ) | | (163 | ) | |||||||
Equity in net income (loss) of affiliates |
677 | 8 | 685 | |||||||||
Income taxes |
(1,601 | ) | 12 | (1,589 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,123 | (110 | ) | 3,013 | ||||||||
Group share |
3,085 | (114 | ) | 2,971 | ||||||||
Non-controlling interests |
38 | 4 | 42 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
25
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
1st half 2016 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
70,188 | (132 | ) | 70,056 | ||||||||
Excise taxes |
(10,823 | ) | | (10,823 | ) | |||||||
Revenues from sales |
59,365 | (132 | ) | 59,233 | ||||||||
Purchases, net of inventory variation |
(38,487 | ) | 300 | (38,187 | ) | |||||||
Other operating expenses |
(11,676 | ) | (366 | ) | (12,042 | ) | ||||||
Exploration costs |
(380 | ) | (350 | ) | (730 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,448 | ) | (200 | ) | (5,648 | ) | ||||||
Other income |
343 | 329 | 672 | |||||||||
Other expense |
(119 | ) | (84 | ) | (203 | ) | ||||||
Financial interest on debt |
(530 | ) | (11 | ) | (541 | ) | ||||||
Financial income from marketable securities & cash equivalents |
11 | | 11 | |||||||||
Cost of net debt |
(519 | ) | (11 | ) | (530 | ) | ||||||
Other financial income |
503 | | 503 | |||||||||
Other financial expense |
(321 | ) | | (321 | ) | |||||||
Equity in net income (loss) of affiliates |
1,296 | (22 | ) | 1,274 | ||||||||
Income taxes |
(699 | ) | 417 | (282 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,858 | (119 | ) | 3,739 | ||||||||
Group share |
3,810 | (116 | ) | 3,694 | ||||||||
Non-controlling interests |
48 | (3 | ) | 45 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
1st half 2015 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
87,332 | (304 | ) | 87,028 | ||||||||
Excise taxes |
(10,796 | ) | | (10,796 | ) | |||||||
Revenues from sales |
76,536 | (304 | ) | 76,232 | ||||||||
Purchases, net of inventory variation |
(51,035 | ) | 478 | (50,557 | ) | |||||||
Other operating expenses |
(12,131 | ) | (172 | ) | (12,303 | ) | ||||||
Exploration costs |
(902 | ) | (87 | ) | (989 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,409 | ) | (1,294 | ) | (6,703 | ) | ||||||
Other income |
884 | 1,459 | 2,343 | |||||||||
Other expense |
(235 | ) | (603 | ) | (838 | ) | ||||||
Financial interest on debt |
(493 | ) | | (493 | ) | |||||||
Financial income from marketable securities & cash equivalents |
59 | | 59 | |||||||||
Cost of net debt |
(434 | ) | | (434 | ) | |||||||
Other financial income |
397 | | 397 | |||||||||
Other financial expense |
(329 | ) | | (329 | ) | |||||||
Equity in net income (loss) of affiliates |
1,311 | (36 | ) | 1,275 | ||||||||
Income taxes |
(2,914 | ) | 341 | (2,573 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
5,739 | (218 | ) | 5,521 | ||||||||
Group share |
5,687 | (53 | ) | 5,634 | ||||||||
Non-controlling interests |
52 | (165 | ) | (113 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
26
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST SIX MONTHS OF 2016
(unaudited)
1) Accounting policies
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of June 30, 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 June 30, 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 June 30, 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. |
| In June 2016, TOTAL has signed an agreement with Qatar Petroleum, granting the Group a 30 % interest in the concession covering the offshore Al Shaheen oil field in Qatar for a period of 25 years beginning July 14, 2017. |
| In June 2016, Total and Lampiris, the third-largest supplier of natural gas and renewable power to the Belgium residential sector, have signed an agreement under which Total will acquire all of the shares in Lampiris. The agreement is subject to customary regulatory approvals. |
| Marketing & Services |
| In January 2016, TOTAL finalized the acquisition of a majority 70% interest in the leading Dominican fuel retailer. |
| In April 2016, TOTAL finalized the sale to Demirören Group of its service station network and commercial sales, supply and logistics assets located in Turkey. |
27
| In May 2016, TOTAL has acquired Gulf Africa Petroleum Corporations (GAPCO) assets in Kenya, Uganda and Tanzania. The transaction is subject to the authorities approval in the three countries. |
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.
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.
28
ADJUSTMENTS TO OPERATING INCOME
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
2nd quarter 2016 |
Inventory valuation effect | | 516 | 118 | | 634 | ||||||||||||||||
Effect of changes in fair value | (6) | | | | (6) | |||||||||||||||||
Restructuring charges | (8) | | | | (8) | |||||||||||||||||
Asset impairment charges | (200) | | | | (200) | |||||||||||||||||
Other items | (350) | (65) | (10) | | (425) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(564) | 451 | 108 | | (5) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2015 |
Inventory valuation effect | | 199 | 51 | | 250 | ||||||||||||||||
Effect of changes in fair value | (10) | | | | (10) | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (194) | (31) | (23) | | (248) | |||||||||||||||||
Other items | (150) | (76) | | | (226) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(354) | 92 | 28 | | (234) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2016 |
Inventory valuation effect | | 311 | 41 | | 352 | ||||||||||||||||
Effect of changes in fair value | (3) | | | | (3) | |||||||||||||||||
Restructuring charges | (19) | | | | (19) | |||||||||||||||||
Asset impairment charges | (200) | | | | (200) | |||||||||||||||||
Other items | (801) | (67) | (10) | | (878) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,023) | 244 | 31 | | (748) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2015 |
Inventory valuation effect | | 434 | 44 | | 478 | ||||||||||||||||
Effect of changes in fair value | (6) | | | | (6) | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (1,240) | (31) | (23) | | (1,294) | |||||||||||||||||
Other items | (440) | (117) | | | (557) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,686) | 286 | 21 | | (1,379) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
29
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
2nd quarter 2016 |
Inventory valuation effect | | 330 | 75 | | 405 | ||||||||||||||||
Effect of changes in fair value | (5) | | | | (5) | |||||||||||||||||
Restructuring charges | (2) | | | | (2) | |||||||||||||||||
Asset impairment charges | (129) | | (49) | | (178) | |||||||||||||||||
Gains (losses) on disposals of assets | | | (14) | | (14) | |||||||||||||||||
Other items | (226) | (52) | (14) | | (292) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(362) | 278 | (2) | | (86) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2015 |
Inventory valuation effect | | 138 | 36 | | 174 | ||||||||||||||||
Effect of changes in fair value | (6) | | | | (6) | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (194) | (31) | (20) | | (245) | |||||||||||||||||
Gains (losses) on disposals of assets | (29) | (4) | 360 | | 327 | |||||||||||||||||
Other items | (280) | (82) | (2) | | (364) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(509) | 21 | 374 | | (114) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2016 |
Inventory valuation effect | | 197 | 25 | | 222 | ||||||||||||||||
Effect of changes in fair value | (2) | | | | (2) | |||||||||||||||||
Restructuring charges | (4) | | | | (4) | |||||||||||||||||
Asset impairment charges | (129) | | (49) | | (178) | |||||||||||||||||
Gains (losses) on disposals of assets | 358 | | (14) | | 344 | |||||||||||||||||
Other items | (417) | (56) | (25) | | (498) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(194) | 141 | (63) | | (116) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st half 2015 |
Inventory valuation effect | | 288 | 40 | | 328 | ||||||||||||||||
Effect of changes in fair value | (4) | | | | (4) | |||||||||||||||||
Restructuring charges | | (26) | (5) | | (31) | |||||||||||||||||
Asset impairment charges | (1,286) | (31) | (37) | | (1,354) | |||||||||||||||||
Gains (losses) on disposals of assets | 299 | 670 | 360 | | 1,329 | |||||||||||||||||
Other items | (140) | (135) | (46) | | (321) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,131) | 766 | 312 | | (53) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2016, the headings Other items and Asset impairment charges include, in the Upstream segment, charges related to the cessation of the Group activities in Kurdistan ($(550) million in operating income, $(355) million in net income, Group share).
30
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of June 30, 2016, TOTAL S.A. holds 13,634,910 of its own shares, representing 0.54% of its share capital, detailed as follows:
| 13,601,945 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 June 30, 2016, TOTAL S.A. holds indirectly through its subsidiaries 100,331,268 of its own shares, representing 4.01% 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
The shareholders meeting on May 24, 2016 approved the payment of a dividend of 2.44 per share for the 2015 fiscal year. Taking into account the three quarterly dividends of 0.61 per share that have already been paid in shares or in cash on October 21, 2015, January 14, 2016, and April 12, 2016, the remaining balance of 0.61 per share was paid on June 23, 2016. The shareholders meeting on May 24, 2016, approved the option for shareholders to receive the fourth quarter dividend in shares or in cash. The number of shares issued in lieu of the cash dividend was based on the dividend amount divided by 38.26 per share, equal to 90% of the average Euronext Paris opening price of the shares for the 20 trading days preceding the shareholders meeting reduced by the amount of the dividend remainder. On June 23, 2016, 24,372,848 shares were issued at a price of 38.26 per share.
Another resolution has been approved at the shareholders meeting on May 24, 2016, being that if one or more interim dividends are decided by the Board of Directors for the fiscal year 2016, then shareholders have the option to receive this or these interim dividends in shares or in cash.
A first interim dividend for the fiscal year 2016 of 0.61 per share, decided by the Board of Directors on April 26, 2016 would be paid on October 14, 2016 (the ex-dividend date will be September 27, 2016).
A second interim dividend for the fiscal year 2016 of 0.61 per share, decided by the Board of Directors on July 27, 2016, would be paid on January 12, 2017 (the ex-dividend date will be December 21, 2016).
Issuance of perpetual subordinated notes
During the first half year of 2016, the Group issued a perpetual deeply subordinated note 3.875% callable after 6 years on May 18, 2022 (1,750 million EUR).
Based on its characteristics and in compliance with the IAS 32 standard, this note was recorded in equity.
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 0.77 per share for the 2nd quarter 2016 (0.61 per share for the 1st quarter 2016 and 1.17 per share for the 2nd quarter 2015). Diluted earnings per share calculated using the same method amounted to 0.76 per share for the 2nd quarter 2016 (0.61 per share for the 1st quarter 2016 and 1.17 per share for the 2nd quarter 2015).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
31
Other comprehensive income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M$) |
1st half 2016 | 1st half 2015 |
||||||||||||||
Actuarial gains and losses |
(213 | ) | 153 | |||||||||||||
Tax effect |
72 | (117 | ) | |||||||||||||
Currency translation adjustment generated by the parent company |
1,528 | (5,229 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items not potentially reclassifiable to profit and loss |
1,387 | (5,193 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Currency translation adjustment |
(1,355 | ) | 2,588 | |||||||||||||
- unrealized gain/(loss) of the period |
(1,233 | ) | 3,044 | |||||||||||||
- less gain/(loss) included in net income |
122 | 456 | ||||||||||||||
Available for sale financial assets |
(14 | ) | (4 | ) | ||||||||||||
- unrealized gain/(loss) of the period |
(14 | ) | 2 | |||||||||||||
- less gain/(loss) included in net income |
| 6 | ||||||||||||||
Cash flow hedge |
32 | (94 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
34 | (314 | ) | |||||||||||||
- less gain/(loss) included in net income |
2 | (220 | ) | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
354 | 841 | ||||||||||||||
- unrealized gain/(loss) of the period |
372 | 841 | ||||||||||||||
- less gain/(loss) included in net income |
18 | | ||||||||||||||
Other |
3 | 1 | ||||||||||||||
Tax effect |
(3 | ) | 29 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items potentially reclassifiable to profit and loss |
(983 | ) | 3,361 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net amount |
404 | (1,832 | ) | |||||||||||||
|
|
|
|
|
|
|
|
32
Tax effects relating to each component of other comprehensive income are as follows:
1st half 2016 | 1st half 2015 | |||||||||||||||||||||||
(M$) |
Pre-tax amount |
Tax effect | Net amount | Pre-tax amount |
Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses |
(213 | ) | 72 | (141 | ) | 153 | (117 | ) | 36 | |||||||||||||||
Currency translation adjustment generated by the parent company |
1,528 | | 1,528 | (5,229 | ) | | (5,229 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items not potentially reclassifiable to profit and loss |
1,315 | 72 | 1,387 | (5,076 | ) | (117 | ) | (5,193 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment |
(1,355 | ) | | (1,355 | ) | 2,588 | | 2,588 | ||||||||||||||||
Available for sale financial assets |
(14 | ) | 4 | (10 | ) | (4 | ) | | (4 | ) | ||||||||||||||
Cash flow hedge |
32 | (7 | ) | 25 | (94 | ) | 29 | (65 | ) | |||||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
354 | | 354 | 841 | | 841 | ||||||||||||||||||
Other |
3 | | 3 | 1 | | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items potentially reclassifiable to profit and loss |
(980 | ) | (3 | ) | (983 | ) | 3,332 | 29 | 3,361 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income |
335 | 69 | 404 | (1,744 | ) | (88 | ) | (1,832 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
5) Financial debt
The Group did not issue any bond, during the first six months of 2016.
The Group reimbursed bonds during the first six 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 2.375% 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 six months of 2016.
33
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. 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 Appeal 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) began in 2015 an investigation in connection with the natural gas trading activities of Total Gas & Power North America, Inc. (TGPNA), an American subsidiary of the Group. The investigation covered transactions made by TGPNA between June 2009 and June 2012 on the natural gas market. TGPNA received a Notice of Alleged Violations from FERC on September 21, 2015. On April 28, 2016, FERC issued an order to show cause to TGPNA and two of its former employees regarding the same facts.
TGPNA has cooperated in the investigation with the U.S. authorities and contests 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).
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 June 30, 2016. |
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%). |
34
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.
As a result, the Yamal LNG projects financing was finalized in June 2016 without the use of the U.S. dollar or the intervention of U.S. persons. It consists of funding in rubles from the Russian National Welfare Fund, loans in euros from Russian banks, and loans in euros and renminbi from Chinese banks.
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%.
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.
35
8) Information by business segment
1st half 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,810 | 30,505 | 32,738 | 3 | | 70,056 | ||||||||||||||||||
Intersegment sales |
7,421 | 9,688 | 340 | 151 | (17,600 | ) | | |||||||||||||||||
Excise taxes |
| (1,885 | ) | (8,938 | ) | | | (10,823 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
14,231 | 38,308 | 24,140 | 154 | (17,600 | ) | 59,233 | |||||||||||||||||
Operating expenses |
(9,754 | ) | (35,303 | ) | (22,989 | ) | (513 | ) | 17,600 | (50,959 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,778 | ) | (499 | ) | (355 | ) | (16 | ) | | (5,648 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
(301 | ) | 2,506 | 796 | (375 | ) | | 2,626 | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,239 | 437 | 48 | 201 | | 1,925 | ||||||||||||||||||
Tax on net operating income |
493 | (655 | ) | (270 | ) | 29 | | (403 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,431 | 2,288 | 574 | (145 | ) | | 4,148 | |||||||||||||||||
Net cost of net debt |
(409 | ) | ||||||||||||||||||||||
Non-controlling interests |
(45 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
3,694 | |||||||||||||||||||||||
1st half 2016 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(132 | ) | | | | | (132 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(132 | ) | | | | | (132 | ) | ||||||||||||||||
Operating expenses |
(691 | ) | 244 | 31 | | | (416 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,023 | ) | 244 | 31 | | | (748 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
329 | (27 | ) | (79 | ) | | | 223 | ||||||||||||||||
Tax on net operating income |
500 | (75 | ) | (8 | ) | | | 417 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(194 | ) | 142 | (56 | ) | | | (108 | ) | |||||||||||||||
Net cost of net debt |
(11 | ) | ||||||||||||||||||||||
Non-controlling interests |
3 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(116 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| 311 | 41 | | ||||||||||||||||||||
- On net operating income |
| 198 | 34 | |
36
1st half 2016 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
6,942 | 30,505 | 32,738 | 3 | | 70,188 | ||||||||||||||||||
Intersegment sales |
7,421 | 9,688 | 340 | 151 | (17,600 | ) | | |||||||||||||||||
Excise taxes |
| (1,885 | ) | (8,938 | ) | | | (10,823 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
14,363 | 38,308 | 24,140 | 154 | (17,600 | ) | 59,365 | |||||||||||||||||
Operating expenses |
(9,063 | ) | (35,547 | ) | (23,020 | ) | (513 | ) | 17,600 | (50,543 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,578 | ) | (499 | ) | (355 | ) | (16 | ) | | (5,448 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
722 | 2,262 | 765 | (375 | ) | | 3,374 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
910 | 464 | 127 | 201 | | 1,702 | ||||||||||||||||||
Tax on net operating income |
(7 | ) | (580 | ) | (262 | ) | 29 | | (820 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,625 | 2,146 | 630 | (145 | ) | | 4,256 | |||||||||||||||||
Net cost of net debt |
(398 | ) | ||||||||||||||||||||||
Non-controlling interests |
(48 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
3,810 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.58 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st half 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
7,776 | 739 | 729 | 230 | | 9,474 | ||||||||||||||||||
Total divestments |
1,363 | 52 | 333 | 10 | | 1,758 | ||||||||||||||||||
Cash flow from operating activities |
3,096 | 1,139 | 225 | 303 | | 4,763 |
37
1st half 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
9,723 | 37,257 | 40,039 | 9 | | 87,028 | ||||||||||||||||||
Intersegment sales |
9,305 | 14,350 | 495 | 108 | (24,258 | ) | | |||||||||||||||||
Excise taxes |
| (1,940 | ) | (8,856 | ) | | | (10,796 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
19,028 | 49,667 | 31,678 | 117 | (24,258 | ) | 76,232 | |||||||||||||||||
Operating expenses |
(11,418 | ) | (45,899 | ) | (30,371 | ) | (419 | ) | 24,258 | (63,849 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,770 | ) | (543 | ) | (376 | ) | (14 | ) | | (6,703 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
1,840 | 3,225 | 931 | (316 | ) | | 5,680 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,088 | 869 | 423 | 468 | | 2,848 | ||||||||||||||||||
Tax on net operating income |
(1,277 | ) | (879 | ) | (324 | ) | (175 | ) | | (2,655 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,651 | 3,215 | 1,030 | (23 | ) | | 5,873 | |||||||||||||||||
Net cost of net debt |
(352 | ) | ||||||||||||||||||||||
Non-controlling interests |
113 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,634 | |||||||||||||||||||||||
1st half 2015 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(304 | ) | | | | | (304 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(304 | ) | | | | | (304 | ) | ||||||||||||||||
Operating expenses |
(142 | ) | 317 | 44 | | | 219 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,240 | ) | (31 | ) | (23 | ) | | | (1,294 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(1,686 | ) | 286 | 21 | | | (1,379 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
(55 | ) | 590 | 285 | | | 820 | |||||||||||||||||
Tax on net operating income |
473 | (110 | ) | (22 | ) | | | 341 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(1,268 | ) | 766 | 284 | | | (218 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
165 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(53 | ) | ||||||||||||||||||||||
(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 |
| 434 | 44 | | ||||||||||||||||||||
- On net operating income |
| 288 | 38 | |
38
1st half 2015 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,027 | 37,257 | 40,039 | 9 | | 87,332 | ||||||||||||||||||
Intersegment sales |
9,305 | 14,350 | 495 | 108 | (24,258 | ) | | |||||||||||||||||
Excise taxes |
| (1,940 | ) | (8,856 | ) | | | (10,796 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
19,332 | 49,667 | 31,678 | 117 | (24,258 | ) | 76,536 | |||||||||||||||||
Operating expenses |
(11,276 | ) | (46,216 | ) | (30,415 | ) | (419 | ) | 24,258 | (64,068 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(4,530 | ) | (512 | ) | (353 | ) | (14 | ) | | (5,409 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
3,526 | 2,939 | 910 | (316 | ) | | 7,059 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,143 | 279 | 138 | 468 | | 2,028 | ||||||||||||||||||
Tax on net operating income |
(1,750 | ) | (769 | ) | (302 | ) | (175 | ) | | (2,996 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,919 | 2,449 | 746 | (23 | ) | | 6,091 | |||||||||||||||||
Net cost of net debt |
(352 | ) | ||||||||||||||||||||||
Non-controlling interests |
(52 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,687 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
2.47 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
1st half 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
13,804 | 899 | 651 | 45 | | 15,399 | ||||||||||||||||||
Total divestments |
1,541 | 2,640 | 679 | 17 | | 4,877 | ||||||||||||||||||
Cash flow from operating activities |
6,238 | 2,014 | 1,023 | (156 | ) | | 9,119 |
39
2nd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,344 | 16,567 | 17,305 | (1 | ) | | 37,215 | |||||||||||||||||
Intersegment sales |
4,159 | 5,540 | 208 | 81 | (9,988 | ) | | |||||||||||||||||
Excise taxes |
| (924 | ) | (4,580 | ) | | | (5,504 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,503 | 21,183 | 12,933 | 80 | (9,988 | ) | 31,711 | |||||||||||||||||
Operating expenses |
(4,956 | ) | (19,521 | ) | (12,208 | ) | (293 | ) | 9,988 | (26,990 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,531 | ) | (246 | ) | (183 | ) | (8 | ) | | (2,968 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
16 | 1,416 | 542 | (221 | ) | | 1,753 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
569 | 260 | 34 | 98 | | 961 | ||||||||||||||||||
Tax on net operating income |
180 | (379 | ) | (190 | ) | (8 | ) | | (397 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
765 | 1,297 | 386 | (131 | ) | | 2,317 | |||||||||||||||||
Net cost of net debt |
(199 | ) | ||||||||||||||||||||||
Non-controlling interests |
(30 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,088 | |||||||||||||||||||||||
2nd quarter 2016 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(6 | ) | | | | | (6 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(6 | ) | | | | | (6 | ) | ||||||||||||||||
Operating expenses |
(358 | ) | 451 | 108 | | | 201 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(564 | ) | 451 | 108 | | | (5 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
| (27 | ) | (62 | ) | | | (89 | ) | |||||||||||||||
Tax on net operating income |
202 | (145 | ) | (38 | ) | | | 19 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(362 | ) | 279 | 8 | | | (75 | ) | ||||||||||||||||
Net cost of net debt |
(5 | ) | ||||||||||||||||||||||
Non-controlling interests |
(6 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(86 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| 516 | 118 | | ||||||||||||||||||||
- On net operating income |
| 331 | 84 | |
40
2nd quarter 2016 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,350 | 16,567 | 17,305 | (1 | ) | | 37,221 | |||||||||||||||||
Intersegment sales |
4,159 | 5,540 | 208 | 81 | (9,988 | ) | | |||||||||||||||||
Excise taxes |
| (924 | ) | (4,580 | ) | | | (5,504 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,509 | 21,183 | 12,933 | 80 | (9,988 | ) | 31,717 | |||||||||||||||||
Operating expenses |
(4,598 | ) | (19,972 | ) | (12,316 | ) | (293 | ) | 9,988 | (27,191 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,331 | ) | (246 | ) | (183 | ) | (8 | ) | | (2,768 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
580 | 965 | 434 | (221 | ) | | 1,758 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
569 | 287 | 96 | 98 | | 1,050 | ||||||||||||||||||
Tax on net operating income |
(22 | ) | (234 | ) | (152 | ) | (8 | ) | | (416 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,127 | 1,018 | 378 | (131 | ) | | 2,392 | |||||||||||||||||
Net cost of net debt |
(194 | ) | ||||||||||||||||||||||
Non-controlling interests |
(24 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,174 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.90 |
(a) | Except for earnings per share. |
2nd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
3,539 | 480 | 339 | 208 | | 4,566 | ||||||||||||||||||
Total divestments |
448 | 23 | 296 | 6 | | 773 | ||||||||||||||||||
Cash flow from operating activities |
983 | 1,560 | (15 | ) | 354 | | 2,882 |
41
2nd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,498 | 19,793 | 20,419 | 5 | | 44,715 | ||||||||||||||||||
Intersegment sales |
4,921 | 7,383 | 223 | 56 | (12,583 | ) | | |||||||||||||||||
Excise taxes |
| (1,007 | ) | (4,439 | ) | | | (5,446 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,419 | 26,169 | 16,203 | 61 | (12,583 | ) | 39,269 | |||||||||||||||||
Operating expenses |
(5,449 | ) | (24,182 | ) | (15,508 | ) | (180 | ) | 12,583 | (32,736 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,329 | ) | (291 | ) | (202 | ) | (9 | ) | | (2,831 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
1,641 | 1,696 | 493 | (128 | ) | | 3,702 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
319 | 107 | 503 | 174 | | 1,103 | ||||||||||||||||||
Tax on net operating income |
(909 | ) | (433 | ) | (193 | ) | (93 | ) | | (1,628 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,051 | 1,370 | 803 | (47 | ) | | 3,177 | |||||||||||||||||
Net cost of net debt |
(164 | ) | ||||||||||||||||||||||
Non-controlling interests |
(42 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,971 | |||||||||||||||||||||||
2nd quarter 2015 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(158 | ) | | | | | (158 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(158 | ) | | | | | (158 | ) | ||||||||||||||||
Operating expenses |
(2 | ) | 123 | 51 | | | 172 | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(194 | ) | (31 | ) | (23 | ) | | | (248 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(354 | ) | 92 | 28 | | | (234 | ) | ||||||||||||||||
Equity in net income (loss) of affiliates and other items |
(191 | ) | (71 | ) | 374 | | | 112 | ||||||||||||||||
Tax on net operating income |
36 | | (24 | ) | | | 12 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(509 | ) | 21 | 378 | | | (110 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
(4 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(114 | ) | ||||||||||||||||||||||
(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 |
| 199 | 51 | | ||||||||||||||||||||
- On net operating income |
| 138 | 43 | |
42
2nd quarter 2015 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
4,656 | 19,793 | 20,419 | 5 | | 44,873 | ||||||||||||||||||
Intersegment sales |
4,921 | 7,383 | 223 | 56 | (12,583 | ) | | |||||||||||||||||
Excise taxes |
| (1,007 | ) | (4,439 | ) | | | (5,446 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,577 | 26,169 | 16,203 | 61 | (12,583 | ) | 39,427 | |||||||||||||||||
Operating expenses |
(5,447 | ) | (24,305 | ) | (15,559 | ) | (180 | ) | 12,583 | (32,908 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,135 | ) | (260 | ) | (179 | ) | (9 | ) | | (2,583 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,995 | 1,604 | 465 | (128 | ) | | 3,936 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
510 | 178 | 129 | 174 | | 991 | ||||||||||||||||||
Tax on net operating income |
(945 | ) | (433 | ) | (169 | ) | (93 | ) | | (1,640 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,560 | 1,349 | 425 | (47 | ) | | 3,287 | |||||||||||||||||
Net cost of net debt |
(164 | ) | ||||||||||||||||||||||
Non-controlling interests |
(38 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
3,085 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.34 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
2nd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,653 | 465 | 436 | 36 | | 6,590 | ||||||||||||||||||
Total divestments |
379 | 874 | 627 | 13 | | 1,893 | ||||||||||||||||||
Cash flow from operating activities |
2,713 | 1,700 | 379 | (60 | ) | | 4,732 |
43
9) Reconciliation of the information by business segment with consolidated financial statements
1st half 2016 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
70,188 | (132 | ) | 70,056 | ||||||||
Excise taxes |
(10,823 | ) | | (10,823 | ) | |||||||
Revenues from sales |
59,365 | (132 | ) | 59,233 | ||||||||
Purchases net of inventory variation |
(38,487 | ) | 300 | (38,187 | ) | |||||||
Other operating expenses |
(11,676 | ) | (366 | ) | (12,042 | ) | ||||||
Exploration costs |
(380 | ) | (350 | ) | (730 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,448 | ) | (200 | ) | (5,648 | ) | ||||||
Other income |
343 | 329 | 672 | |||||||||
Other expense |
(119 | ) | (84 | ) | (203 | ) | ||||||
Financial interest on debt |
(530 | ) | (11 | ) | (541 | ) | ||||||
Financial income from marketable securities & cash equivalents |
11 | | 11 | |||||||||
Cost of net debt |
(519 | ) | (11 | ) | (530 | ) | ||||||
Other financial income |
503 | | 503 | |||||||||
Other financial expense |
(321 | ) | | (321 | ) | |||||||
Equity in net income (loss) of affiliates |
1,296 | (22 | ) | 1,274 | ||||||||
Income taxes |
(699 | ) | 417 | (282 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,858 | (119 | ) | 3,739 | ||||||||
Group share |
3,810 | (116 | ) | 3,694 | ||||||||
Non-controlling interests |
48 | (3 | ) | 45 | ||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
|
||||||||||||
1st half 2015 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
87,332 | (304 | ) | 87,028 | ||||||||
Excise taxes |
(10,796 | ) | | (10,796 | ) | |||||||
Revenues from sales |
76,536 | (304 | ) | 76,232 | ||||||||
Purchases net of inventory variation |
(51,035 | ) | 478 | (50,557 | ) | |||||||
Other operating expenses |
(12,131 | ) | (172 | ) | (12,303 | ) | ||||||
Exploration costs |
(902 | ) | (87 | ) | (989 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(5,409 | ) | (1,294 | ) | (6,703 | ) | ||||||
Other income |
884 | 1,459 | 2,343 | |||||||||
Other expense |
(235 | ) | (603 | ) | (838 | ) | ||||||
Financial interest on debt |
(493 | ) | | (493 | ) | |||||||
Financial income from marketable securities & cash equivalents |
59 | | 59 | |||||||||
Cost of net debt |
(434 | ) | | (434 | ) | |||||||
Other financial income |
397 | | 397 | |||||||||
Other financial expense |
(329 | ) | | (329 | ) | |||||||
Equity in net income (loss) of affiliates |
1,311 | (36 | ) | 1,275 | ||||||||
Income taxes |
(2,914 | ) | 341 | (2,573 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
5,739 | (218 | ) | 5,521 | ||||||||
Group share |
5,687 | (53 | ) | 5,634 | ||||||||
Non-controlling interests |
52 | (165 | ) | (113 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
44
2nd quarter 2016 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
37,221 | (6 | ) | 37,215 | ||||||||
Excise taxes |
(5,504 | ) | | (5,504 | ) | |||||||
Revenues from sales |
31,717 | (6 | ) | 31,711 | ||||||||
Purchases net of inventory variation |
(21,130 | ) | 582 | (20,548 | ) | |||||||
Other operating expenses |
(5,875 | ) | (31 | ) | (5,906 | ) | ||||||
Exploration costs |
(186 | ) | (350 | ) | (536 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,768 | ) | (200 | ) | (2,968 | ) | ||||||
Other income |
172 | | 172 | |||||||||
Other expense |
(65 | ) | (68 | ) | (133 | ) | ||||||
Financial interest on debt |
(262 | ) | (5 | ) | (267 | ) | ||||||
Financial income from marketable securities & cash equivalents |
1 | | 1 | |||||||||
Cost of net debt |
(261 | ) | (5 | ) | (266 | ) | ||||||
Other financial income |
312 | | 312 | |||||||||
Other financial expense |
(166 | ) | | (166 | ) | |||||||
Equity in net income (loss) of affiliates |
797 | (21 | ) | 776 | ||||||||
Income taxes |
(349 | ) | 19 | (330 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,198 | (80 | ) | 2,118 | ||||||||
Group share |
2,174 | (86 | ) | 2,088 | ||||||||
Non-controlling interests |
24 | 6 | 30 | |||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
|
||||||||||||
2nd quarter 2015 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
44,873 | (158 | ) | 44,715 | ||||||||
Excise taxes |
(5,446 | ) | | (5,446 | ) | |||||||
Revenues from sales |
39,427 | (158 | ) | 39,269 | ||||||||
Purchases net of inventory variation |
(26,603 | ) | 250 | (26,353 | ) | |||||||
Other operating expenses |
(5,955 | ) | (76 | ) | (6,031 | ) | ||||||
Exploration costs |
(350 | ) | (2 | ) | (352 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,583 | ) | (248 | ) | (2,831 | ) | ||||||
Other income |
358 | 364 | 722 | |||||||||
Other expense |
(136 | ) | (260 | ) | (396 | ) | ||||||
Financial interest on debt |
(231 | ) | | (231 | ) | |||||||
Financial income from marketable securities & cash equivalents |
28 | | 28 | |||||||||
Cost of net debt |
(203 | ) | | (203 | ) | |||||||
Other financial income |
255 | | 255 | |||||||||
Other financial expense |
(163 | ) | | (163 | ) | |||||||
Equity in net income (loss) of affiliates |
677 | 8 | 685 | |||||||||
Income taxes |
(1,601 | ) | 12 | (1,589 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
3,123 | (110 | ) | 3,013 | ||||||||
Group share |
3,085 | (114 | ) | 2,971 | ||||||||
Non-controlling interests |
38 | 4 | 42 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
45
10) Changes in progress in the Group structure
| Upstream |
| TOTAL has signed in January 2016 an agreement for the transfer to Zarubezhneft of a 20% stake and the operatorship in Kharyaga, Russia. At June 30, 2016 the assets and liabilities remain respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of $245 million and liabilities directly associated with the assets classified as held for sale for an amount of $165 million. The assets and liabilities concerned mainly include tangible assets for an amount of $189 million and deferred tax liabilities for an amount of $92 million. |
| Refining & Chemicals |
| Following the sale offering of its electroplating activity Atotech in May 2016, the assets and liabilities have been respectively classified in the consolidated balance sheet in assets classified as held for sale for an amount of $1,012 million and liabilities directly associated with the assets classified as held for sale for an amount of $482 million at June 30, 2016. The assets and liabilities concerned mainly include tangible assets for an amount of $327 million, inventories for an amount of $182 million, receivables for an amount of $229 million, cash and cash equivalents for an amount of $98 million, non-current liabilities for an amount of $188 million, payables for an amount of $83 million and other creditors and accrued liabilities for an amount of $193 million. |
11) Post-closing and other events
| In May 2016, TOTAL and Saft Group announced that, following the signature of an agreement between the companies, TOTAL filed a friendly tender offer on all of the issued and outstanding shares in the capital of Saft with the French Financial Markets Authority (Autorité des Marchés Financiers (AMF)). |
The proposed offer targets all of Safts issued and outstanding shares at a price of 36.50 per share, ex-dividend of 0.85 per share, valuing Safts equity at 950 million.
On July 18, 2016, the AMF published the results of the public tender offer, following which TOTAL holds 23,456,093 Saft Group shares representing 90.14% of the capital and voting rights of Saft Group.
46
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL ANNOUNCES ITS SECOND QUARTER 2016 INTERIM DIVIDEND
The Board of Directors of TOTAL S.A. (together with its subsidiaries and affiliates, TOTAL or the Company) met on July 27, 2016, and approved a second quarter 2016 interim dividend of 0.61 per share, unchanged compared to the first quarter of 2016. The record date will be December 20, 2016 and the ex-dividend date will be December 21, 2016.
The Board of Directors will meet on December 15, 2016 to:
| declare the second quarter 2016 interim dividend; |
| offer the option for shareholders to receive the second 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 second quarter 2016 interim dividend; |
| set the period for exercising the option from December 21, 2016 to January 4, 2017, both dates inclusive; and |
| confirm the payment of the dividend as from January 12, 2017. |
American Depositary Receipts (ADRs) will receive the second quarter 2016 interim dividend in dollars based on the then-prevailing exchange rate according to the following timetable:
| ADR ex-dividend date: December 16, 2016; |
| ADR record date: December 20, 2016; and |
| ADR payment date in cash or shares issued in lieu of cash: January 20, 2017. |
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.
TOTALS BOARD APPROVES AMBITIOUS PLAN TO INCREASE EMPLOYEE SHAREHOLDING
In line with resolutions adopted at the May 24, 2016, Annual Shareholder Meeting, TOTALs Board of Directors approved on July 27, 2016, two measures to develop the employee shareholding within the Group:
| Annual capital increases reserved for employees: from 2017, with Board approval, TOTAL employees will be offered the possibility to purchase company shares at a discount of up to 20% every year instead of every two or three years. In addition, in 2017, for the first five shares purchased by an employee, they will receive a matching grant of five free shares. |
| The number of free performance shares awarded in 2016 is increased by close to 20% from 2015. In 2016, performance shares are being awarded to more than 10,000 non-executive employees of the Group, with an annual renewal rate of around 40% of recipients and the first 150 shares are awarded without performance conditions. These performance shares vest after three years and must be held for an additional two years after vesting. |
TOTAL SIGNS LONG-TERM AGREEMENT TO SUPPLY LNG TO JAPANS CHUGOKU ELECTRIC
On July 22, 2016, TOTAL announced that it has signed a binding Heads of Agreement with Chugoku Electric for the direct supply of liquefied natural gas (LNG) for a period of 17 years starting from 2019. Under the agreement, TOTAL will supply Chugoku Electric with up to 0.4 million tons of LNG per year (Mt/y) sourced from the companys global portfolio.
TOTAL TAKES CONTROL OF SAFT GROUP AFTER THE SUCCESSFUL TENDER OFFER WHICH WILL BE RE-OPENED FROM JULY 19 TO AUGUST 2, 2016
On July 18, 2016, TOTAL announced that the Autorité des marchés financiers (the AMF) published the results of the public tender offer initiated by TOTAL on the Saft Group. Following the settlement-delivery of the offer, TOTAL will hold 23,456,093 Saft Group shares representing 90.14% of the capital and voting rights of Saft Group based on the total number of shares outstanding as of July 12, 2016.
1
According to the General Regulation of the AMF, the public tender offer initiated by TOTAL will be re-opened from July 19 to August 2, 2016, in order to allow shareholders who have not yet disposed of their shares to do so under the same terms. TOTAL confirms its intention to prioritize investment over dividend payout and will proceed with a delisting of the stock if a level of 95% of the capital and voting rights of Saft Group is reached.
TOTAL and Saft had announced on May 9, 2016 that, following the signature of an agreement between the companies, TOTAL filed a friendly tender offer on all of the issued and outstanding shares in the capital of Saft with the AMF.
The proposed offer targeted all of Safts issued and outstanding shares at a price of 36.50 per share, ex-dividend of 0.85 per share, valuing Safts equity at 950 million.
The offer price represents a 38.3% premium above Safts closing share price of 26.40 on May 6, 2016, a premium of 41.9% above the volume weighted average share price over the past six months and a premium of 24.2% above the volume weighted average share price over the past year. The offer values the company at nine times its 2015 reported EBITDA, which represents a significant control premium compared to recent valuation multiples in the battery industry.
The Supervisory Board of Saft unanimously approved the friendly takeover by TOTAL and considers the proposed transaction to be in line with the interests of the company, its shareholders and its employees. As part of the reasoned opinion that it must issue in accordance with market regulations, the Supervisory Board had also announced its intention to recommend that its shareholders tender their shares.
TOTAL ENERGY VENTURES INVESTS IN DISTRIBUTED WIND POWER WITH UNITED WIND
On July 12, 2016, TOTAL announced that Total Energy Ventures (TEV), the venture capital arm of TOTAL that invests in start-ups, has acquired an interest in United Wind, a company leasing small wind turbines (10 to 100 kW) to rural businesses and homes in the United States.
Formed in 2013 in New York, United Wind installs, operates and maintains wind turbines under a leasing scheme involving no upfront cost. The power generated by the turbines is either used by the customers themselves or sold to the grid. Customers therefore pay less for use of renewable energy than electricity provided by utility companies. United Wind started out in New York State and is now expanding into the Midwest, notably in Colorado, Kansas and Minnesota.
The funding round is intended to finance United Winds expansion. TEV will sit on the companys Board of Directors as an observer.
APPOINTMENTS TO THE EXECUTIVE COMMITTEE AT TOTAL
As part of the deployment of the One Total company project, a new organization is being implemented at TOTAL on September 1, 2016.
On July 4, 2016, TOTAL announced that effective September 1, 2016:
| Philippe Sauquet, currently President, Refining & Chemicals and member of TOTALs Executive Committee, is appointed President of the newly created Gas, Renewables & Power segment. He is also appointed Executive Vice President, Strategy & Innovation and member of TOTALs Executive Committee. |
| Bernard Pinatel is joining TOTAL and is appointed as President, Refining & Chemicals and member of TOTALs Executive Committee. |
| Namita Shah is appointed Executive Vice President, People & Social Responsibility and member of TOTALs Executive Committee. Ms. Shah is directly in charge of the Human Resources division and will also oversee the newly created Total Global Services. |
| Jean-Jacques Guilbaud is appointed Senior Advisor to the Chairman and Chief Executive Officer. |
Effective September 1, 2016, TOTALs Executive Committee will comprise:
| Patrick Pouyanné, Chairman and Chief Executive Officer |
| Arnaud Breuillac, President, Exploration & Production |
| Patrick de La Chevardière, Chief Financial Officer |
| Momar Nguer, President, Marketing & Services |
| Bernard Pinatel, President, Refining & Chemicals |
| Philippe Sauquet, President, Gas, Renewables & Power and Executive Vice President, Strategy & Innovation |
| Namita Shah, Executive Vice President, People & Social Responsibility |
2
QATAR: TOTAL OBTAINS A 30% INTEREST IN THE GIANT AL-SHAHEEN FIELD CONCESSION FOR 25 YEARS
On June 27, 2016, TOTAL announced the signature of an agreement with Qatar Petroleum granting the Group a 30% interest in the concession covering the offshore Al-Shaheen oil field for a period of 25 years beginning July 14, 2017.
The Al-Shaheen field produces 300 thousand barrels of oil per day. The concession will be operated by a new operating company held 70% by Qatar Petroleum and 30% by TOTAL.
Located in Qatari waters 80 kilometers north of Ras Laffan, the Al-Shaheen field began production in 1994. The existing development consists of 30 platforms and 300 wells, and production from the field represents about half of Qatars oil production.
RESULTS OF THE OPTION TO RECEIVE THE FINAL DIVIDEND FOR 2015 IN SHARES
The Annual General Meeting held on May 24, 2016 approved the payment of an annual dividend for 2015 of 2.44 per share and the option for each shareholder to receive the final dividend of 0.61 per share in cash or in new shares of the Company.
The period for exercising the option ran from June 6, 2016 to June 15, 2016. At the end of the option period, 62% of rights were exercised in favor of receiving the payment for the final dividend for 2015 in shares.
24,372,848 new shares were issued, representing 1.0% of the Companys share capital on the basis of the share capital of May 31, 2016. The share price for the new shares issued as payment of the final dividend for 2015 was set at 38.26 on May 24, 2016.
The settlement and delivery of the new shares as well as their admission to trading on the Euronext Paris occurred on June 23, 2016. The shares carry immediate dividend rights and are fully assimilated with existing shares already listed.
The total remaining cash dividend paid to shareholders who did not elect to receive the final dividend for 2015 in shares amounted to 566 million and the date for the payment in cash was June 23, 2016.
TOTAL ACQUIRES LAMPIRIS TO EXPAND ITS GAS AND POWER DISTRIBUTION ACTIVITIES
On June 14, 2016, TOTAL and Lampiris, the third-largest supplier of natural gas and renewable power to the Belgium residential sector, announced the signature of an agreement pursuant to which TOTAL will acquire all of the shares in Lampiris. The agreement is subject to customary regulatory approvals.
KENYA, UGANDA, TANZANIA: TOTAL STRENGTHENS ITS POSITION IN PETROLEUM PRODUCT DISTRIBUTION AND SERVICES IN EAST AFRICA
A leading retailer of petroleum products in Africa, TOTAL announced on May 31, 2016 its expansion on the continent with the acquisition of Gulf Africa Petroleum Corporations (GAPCO) assets in Kenya, Uganda and Tanzania. The transaction is subject to the authorities approval in the three countries.
The principal assets being acquired are two logistical terminals in Mombasa, Kenya and Dar es Salaam, Tanzania, as well as a retail network of around one hundred service stations(1). The acquisition of these assets, which are complementary to TOTALs existing operations in Kenya, Uganda and Tanzania, will strengthen TOTALs logistics in the region and significantly accelerate the growth of our service station network, particularly in Tanzania, while leveraging the TOTAL brand.
COMBINED GENERAL MEETING OF MAY 24, 2016APPROVAL OF RESOLUTIONS PROPOSED BY THE BOARD OF DIRECTORS
The Annual Shareholders Meeting of TOTAL was held on May 24, 2016, under the chairmanship of Patrick Pouyanné. The Shareholders adopted all resolutions recommended by the Board of Directors, including:
| approval of the 2015 financial statements and payment of a 2015 dividend of 2.44 per share; |
| the option for shareholders to receive the final 2015 dividend and any 2016 interim dividends in cash or in new shares of the Company; |
| election of Ms. Maria van der Hoeven and Mr. Jean Lemierre, and re-election of Mr. Gérard Lamarche, to three-year terms as Directors; |
| election of Ms. Renata Perycz for a three-year term as the employee shareholders representative on the Board of Directors; |
(1) | 67 in Tanzania, 9 in Kenya and 32 in Uganda. |
3
| renewal of the terms of the statutory auditors and one of the two alternate auditors, and appointment of a new alternate auditor; and |
| various delegations of authority and financial authorizations granted to the Board of Directors. |
The Shareholders Meeting was also an opportunity for Chairman and CEO Patrick Pouyanné, Lead Independent Director Patricia Barbizet, and Chief Financial Officer Patrick de La Chevardière, to report the Groups 2015 performance, new corporate governance, and outlook to the 3,200 shareholders present.
Patrick de La Chevardière confirmed the Groups resilience despite a highly volatile environment in 2015, based on the strength of its integrated model, the operational excellence of its business segments and strong discipline in investments and operating costs.
Ms. Patricia Barbizet described TOTALs new corporate governance, following the combination of the roles of Chairman and CEO and her appointment as Lead Independent Director. She commented on the activities of the Board and its four Committees, and outlined its high proportion of women and independent directors. Following the Shareholders Meeting, the Board of Directors consists of 54% women and 45% international members.
Finally, Patrick Pouyanné presented the Groups outlook. In the current volatile economic environment, he reiterated TOTALs strong commitment to lowering its breakeven by focusing on the four pillars of safety, operational excellence, cost discipline and priority to cash generation. He also detailed the Groups ambition over the next 20 years to become a responsible energy player by providing reliable and affordable energy to the greatest number of people, while aiming to gradually reduce the carbon intensity of its energy mix, notably through growth in gas and renewable energy. As decided by the Board of Directors on March 15, 2016, the Integrating Climate Into our Strategy report was also published and made available to all shareholders.
The Annual Shareholders Meeting was also an opportunity to pay special tribute to Thierry Desmarest, whose term of office expired at the Annual Meeting after 21 years as a Board member, including 15 years as Chairman. His exceptional efforts in raising TOTAL to its position as fourth among international oil and gas companies were acknowledged.
4
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 six months ended June 30, 2016 and 2015 and the fiscal years ended December 31, 2015, 2014, 2013, 2012 and 2011.
Six Months Ended June 30, |
Years Ended December 31, | |||||||||||||
2016 | 2015 | 2015 | 2014 | 2013* | 2012** | 2011** | ||||||||
For the Group (IFRS) |
5.02 | 11.14 | 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 June 30, 2016, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (dollars or $) or in euros (euros or ).
At June 30, 2016 |
||||
(in millions of dollars) | ||||
Current financial debt, including current portion of non-current financial debt |
||||
Current portion of non-current financial debt |
4,661 | |||
Current financial debt |
9,128 | |||
Current portion of financial instruments for interest rate swaps liabilities |
157 | |||
Other current financial instruments liabilities |
233 | |||
Financial liabilities directly associated with assets held for sale |
15 | |||
|
|
|||
Total current financial debt |
14,194 | |||
|
|
|||
Non-current financial debt |
41,668 | |||
Non-controlling interests |
2,904 | |||
Shareholders equity |
||||
Common shares |
7,846 | |||
Paid-in surplus and retained earnings |
106,343 | |||
Currency translation adjustment |
(11,619 | ) | ||
Treasury shares |
(4,585 | ) | ||
|
|
|||
Total shareholders equity Group share |
97,985 | |||
|
|
|||
Total capitalization and non-current indebtedness |
142,557 | |||
|
|
As of June 30, 2016, TOTAL had an authorized share capital of 3,551,247,666 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,503,262,274 ordinary shares (including 113,966,178 treasury shares from shareholders equity).
As of June 30, 2016, approximately $739 million of TOTALs non-current financial debt was secured and approximately $40,929 million was unsecured, and all of TOTALs current financial debt of $9,128 million was unsecured. As of June 30, 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 (SEC) on March 16, 2016. Since June 30, 2016, Total Capital International has issued non-current financial debt of 2,750 million (or approximately $3,016 million using the /$ exchange rate on July 22, 2016 of 1 = $1.0968 as released by the Board of Governors of the Federal Reserve System on July 25, 2016).
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since June 30, 2016.
2
Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
Six Months Ended June 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of dollars) |
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net income(a)(b) |
3,694 | 5,521 | 5,087 | 4,244 | 11,228 | 13,648 | 17,400 | |||||||||||||||||||||
Income tax expenses(a)(b) |
282 | 2,573 | 1,653 | 8,614 | 14,767 | 16,747 | 19,614 | |||||||||||||||||||||
Non-controlling interests |
45 | (113 | ) | (301 | ) | 6 | 293 | 188 | 424 | |||||||||||||||||||
Equity in income of affiliates (in excess of)/ less than dividends received |
(516 | ) | (289 | ) | (311 | ) | 29 | (775 | ) | 272 | (149 | ) | ||||||||||||||||
Interest expensed |
354 | 385 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Estimate of the interest within rental expense |
238 | 203 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Amortization of capitalized interest |
84 | 76 | 174 | 160 | 135 | 205 | 280 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total(a)(b) |
4,181 | 8,356 | 7,521 | 13,995 | 26,661 | 32,043 | 38,730 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest expensed |
354 | 385 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Capitalized interest |
241 | 162 | 362 | 341 | 349 | 333 | 245 | |||||||||||||||||||||
Estimate of the interest within rental expense |
238 | 203 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
| | | | | | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed charges |
833 | 750 | 1,581 | 1,283 | 1,362 | 1,316 | 1,406 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ratio of earnings to fixed charges(a)(b) |
5.02 | 11.14 | 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. |