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
October 28, 2016
Commission File Number 001-10888
TOTAL S.A.
(Translation of registrants name into English)
2, place Jean Millier
La Défense 6
92400 Courbevoie
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ).
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-203476, 333-203476-01, 333-203476-02 AND 333-203476-03) OF TOTAL S.A., TOTAL CAPITAL INTERNATIONAL, TOTAL CAPITAL CANADA LTD. AND TOTAL CAPITAL AND THE REGISTRATION STATEMENTS ON FORM S-8 (333-150365, 333-169828, 333-172832, 333-183144, 333-185168 AND 333-199735) OF TOTAL S.A., AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
TOTAL S.A. is providing on this Form 6-K its results for the third quarter of 2016 and nine months ended September 30, 2016, and a description of certain recent developments relating to its business, as well as a capitalization table as of September 30, 2016, and a ratio of earnings to fixed charges for the nine months ended September 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 Third Quarter of 2016 and Nine Months Ended September 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: October 28, 2016 | By: | /s/ JEAN-PIERRE SBRAIRE | ||||||
Name: | Jean-Pierre SBRAIRE | |||||||
Title: | Treasurer |
Exhibit 99.1 | Results for the Third Quarter of 2016 and Nine Months Ended September 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 third quarter of 2016 and nine months ended September 30, 2016, has been derived from Totals unaudited consolidated financial statements for the third quarter of 2016 and nine months ended September 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 |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
in millions of dollars |
9M16 | 9M15 | 9M16 vs 9M15 | |||||||||||||||||
37,412 | 37,215 | 40,580 | -8% | Sales |
107,468 | 127,608 | -16% | |||||||||||||||||
Adjusted net operating income from business |
||||||||||||||||||||||||
877 | 1,127 | 1,107 | -21% | Upstream |
2,502 | 4,026 | -38% | |||||||||||||||||
917 | 1,018 | 1,433 | -36% | Refining & Chemicals |
3,063 | 3,882 | -21% | |||||||||||||||||
545 | 378 | 423 | +29% | Marketing & Services |
1,175 | 1,169 | +1% | |||||||||||||||||
531 | 776 | 486 | +9% | Equity in net income (loss) of affiliates |
1,805 | 1,761 | +2% | |||||||||||||||||
0.79 | 0.86 | 0.45 | +76% | Fully-diluted earnings per share ($) |
2.32 | 2.89 | -20% | |||||||||||||||||
2,404 | 2,379 | 2,312 | +4% | Fully-diluted weighted-average shares (millions) |
2,375 | 2,295 | +3% | |||||||||||||||||
1,954 | 2,088 | 1,079 | +81% | Net income (Group share) |
5,648 | 6,713 | -16% | |||||||||||||||||
5,201 | 4,566 | 6,040 | -14% | Investments(b) |
14,675 | 21,439 | -32% | |||||||||||||||||
192 | 773 | 410 | -53% | Divestments |
1,950 | 5,287 | -63% | |||||||||||||||||
5,116 | 3,790 | 5,630 | -9% | Net investments(c) |
12,829 | 16,071 | -20% | |||||||||||||||||
4,082 | 4,059 | 5,394 | -24% | Organic investments(d) |
12,756 | 16,611 | -23% | |||||||||||||||||
4,740 | 2,882 | 5,989 | -21% | Cash flow from operations |
9,503 | 15,108 | -37% | |||||||||||||||||
(265 | ) | 1,752 | (2,057 | ) | n/a | Includes changes in working capital |
3,032 | (746 | ) | n/a |
(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 10 of this exhibit. |
(d) | Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. See page 10 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.
1
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by Totals management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance 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 22-28 and 38-47 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) |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
9M16 | 9M15 | 9M16 vs 9M15 | ||||||||||||||||||
45.9 | 45.6 | 50.5 | -9% | Brent ($/b) |
41.9 | 55.3 | -24% | |||||||||||||||||
41.4 | 43.0 | 44.0 | -6% | Average liquids price ($/b) |
38.4 | 50.5 | -24% | |||||||||||||||||
3.45 | 3.43 | 4.47 | -23% | Average gas price ($/Mbtu) |
3.45 | 4.85 | -29% | |||||||||||||||||
32.4 | 33.0 | 36.6 | -11% | Average hydrocarbons price ($/boe) |
30.6 | 41.3 | -26% |
(a) | Consolidated subsidiaries, excluding fixed margins. |
- | Production |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
hydrocarbon production |
9M16 | 9M15 | 9M16 vs 9M15 | |||||||||||||||||
2,443 | 2,424 | 2,342 | +4% | Combined production (kboe/d) |
2,449 | 2,345 | +4% | |||||||||||||||||
1,290 | 1,253 | 1,241 | +4% | Liquids (kb/d) |
1,276 | 1,232 | +4% | |||||||||||||||||
6,286 | 6,466 | 6,003 | +5% | Gas (Mcf/d) |
6,397 | 6,074 | +5% |
Hydrocarbon production was 2,443 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2016, an increase of 4.3% compared to the third quarter 2015, due to the following:
| +7% due to new start ups and ramp ups, notably Laggan-Tormore, Vega Pleyade, Surmont Phase 2, Moho Phase 1b, Gladstone LNG and Incahuasi; |
| -2% due to the security situation in Nigeria and wild fires in Canada; and |
| -1% due to natural field decline and maintenance operations, partially offset by a positive PSC price effect(1) and good performance of new wells. |
(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
In the first nine months of 2016, hydrocarbon production was 2,449 kboe/d, an increase of 4.4% compared to the first nine months of 2015, due to the following:
| +5% due to new start ups and ramp ups, notably Laggan-Tormore, Termokarstovoye, Surmont Phase 2, Moho Phase 1b, Gladstone LNG and Vega Pleyade; |
| -2% due to the security situation in Nigeria and Yemen, and wild fires in Canada; and |
| +1% due to the PSC price effect and operational performance offsetting natural field decline. |
- | Results |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
in millions of dollars |
9M16 | 9M15 | 9M16 vs 9M15 | |||||||||||||||||
3,398 | 3,344 | 3,660 | -7% | Non-Group sales |
10,208 | 13,383 | -24% | |||||||||||||||||
665 | 16 | 325 | x2 | Operating income |
364 | 2,165 | -83% | |||||||||||||||||
116 | 564 | 669 | -83% | Adjustments affecting operating income |
1,139 | 2,355 | -52% | |||||||||||||||||
781 | 580 | 994 | -21% | Adjusted operating income(a) |
1,503 | 4,520 | -67% | |||||||||||||||||
28.1 | % | 3.2 | % | 33.8 | % | Effective tax rate(b) |
14.1 | % | 44.5 | % | ||||||||||||||
877 | 1,127 | 1,107 | -21% | Adjusted net operating income(a) |
2,502 | 4,026 | -38% | |||||||||||||||||
260 | 452 | 316 | -18% | Includes adjusted income from equity affiliates |
981 | 1,308 | -25% | |||||||||||||||||
3,648 | 3,539 | 5,173 | -29% | Investments |
11,424 | 18,977 | -40% | |||||||||||||||||
129 | 448 | 272 | -53% | Divestments |
1,492 | 1,813 | -18% | |||||||||||||||||
3,356 | 3,261 | 4,676 | -28% | Organic investments |
10,764 | 15,400 | -30% | |||||||||||||||||
2,380 | 983 | 2,320 | +3% | Cash flow from operating activities |
5,476 | 8,558 | -36% |
(a) | Details on adjustment items are shown in the business segment information starting on page 22 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 impairment of goodwill + tax on adjusted net operating income). |
Cash flow from operating activities in the third quarter 2016 excluding the change in working capital at replacement cost of $371 million ($416 million in the third quarter 2015 and $1,298 million in the second quarter 2016) was $2,751 million, an increase of 1% compared to $2,736 million in the third quarter 2015 and 21% compared to $2,281 million in the second quarter 2016 in an unchanged price environment, notably due to the ramps ups of new production with higher margins and the decrease in operating costs.
In the first nine months of 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $1,387 million ($107 million in the first nine months of 2015) was $6,863 million, a decrease of 21% compared to $8,665 million in the first nine months of 2015, essentially due to the decrease in hydrocarbon prices, partially offset by the increase in production and decrease in operating costs.
The Upstream segments adjusted net operating income was:
| $877 million in the third quarter 2016, a decrease of 21% compared to $1,107 million in the third quarter 2015, essentially due to the decrease in the average hydrocarbon price, partially offset by the increase in production and decrease in operating costs; and |
| $2,502 million in the first nine months of 2016, a decrease of 38% compared to $4,026 million in the first nine months of 2015. The increase in production combined with the decrease in operating costs and exploration expenses as well as the lower effective tax rate partially offset the decrease in the average hydrocarbon price. |
Adjusted net operating income for the Upstream segment excludes special items. In the third quarter 2016, the exclusion of special items had a positive impact on the segments adjusted net operating income of $39 million compared to a positive impact of $767 million in the third quarter 2015, consisting essentially of an impairment for the interest in Fort Hills that was in the process of being sold.
3
B.2. | Refining & Chemicals segment |
- | Refinery throughput and utilization rates(a) |
3Q16 |
2Q16 | 3Q15 | 3Q16 vs 3Q15 |
9M16 | 9M15 | 9M16 vs 9M15 | ||||||||||||||||||
1,947 | 1,795 | 2,061 | -6% | Total refinery throughput (kb/d) |
1,949 | 2,024 | -4% | |||||||||||||||||
681 | 522 | 662 | +3% | France |
653 | 671 | -3% | |||||||||||||||||
771 | 803 | 891 | -13% | Rest of Europe |
806 | 853 | -6% | |||||||||||||||||
495 | 470 | 508 | -3% | Rest of world |
490 | 500 | -2% | |||||||||||||||||
Utilization rates(b) |
||||||||||||||||||||||||
85 | % | 77 | % | 87 | % | Based on crude only |
84 | % | 86 | % | ||||||||||||||
87 | % | 80 | % | 90 | % | Based on crude and other feedstock |
87 | % | 88 | % |
(a) | Includes share of TotalErg, as well as refineries in Africa and the French Antilles that are reported in the Marketing & Services segment. The condensate splitters at Port Arthur and Daesan are also included and 2015 figures have been restated. |
(b) | Based on distillation capacity at the beginning of the year. |
Refinery throughput:
| decreased by 6% in the third quarter 2016 compared to the third quarter 2015, due to a higher level of maintenance and the sale of the Schwedt refinery in the fourth quarter 2015; and |
| decreased by 4% in the first nine months of 2016 compared to the first nine months of 2015, mainly due to outages in Europe and the United States in the second quarter and the sale of the Schwedt refinery. |
- | Results |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
in millions of dollars except European refining margin indicator (ERMI) |
9M16 | 9M15 | 9M16 vs 9M15 | |||||||||||||||||
25.5 | 35.0 | 54.8 | -53% | ERMI ($/t) |
31.9 | 52.0 | -39% | |||||||||||||||||
16,050 | 16,567 | 17,397 | -8% | Non-Group sales |
46,555 | 54,654 | -18% | |||||||||||||||||
895 | 1,416 | 790 | +13% | Operating income |
3,401 | 4,015 | -22% | |||||||||||||||||
(4 | ) | (451 | ) | 923 | n/a | Adjustments affecting operating income |
(248 | ) | 637 | n/a | ||||||||||||||
891 | 965 | 1,713 | -48% | Adjusted operating income(a) |
3,153 | 4,652 | -32% | |||||||||||||||||
917 | 1,018 | 1,433 | -36% | Adjusted net operating income(a) |
3,063 | 3,882 | -21% | |||||||||||||||||
150 | 150 | 128 | +17% | Including Specialty Chemicals(b) |
416 | 379 | +10% | |||||||||||||||||
550 | 480 | 358 | +54% | Investments |
1,289 | 1,257 | +3% | |||||||||||||||||
21 | 23 | 12 | +75% | Divestments |
73 | 2,652 | -97% | |||||||||||||||||
399 | 457 | 348 | +15% | Organic investments |
1,088 | 333 | x3.2 | |||||||||||||||||
1,698 | 1,560 | 2,291 | -26% | Cash flow from operating activities |
2,837 | 4,305 | -34% |
(a) | Details on adjustment items are shown in the business segment information starting on page 22 of this exhibit. |
(b) | Hutchinson and Atotech; Bostik until February 2015. |
The Groups European refining margin indicator (ERMI) was impacted by high inventory levels, falling to $25.5/t in the third quarter 2016, a 53% decrease compared to $54.8/t in the third quarter 2015. The petrochemical environment remained favorable, even though margins were down compared to the third quarter 2015.
Cash flow from operating activities in the third quarter 2016 excluding the change in working capital at replacement cost of -$646 million (-$494 million in the third quarter 2015) was $1,052 million, a decrease of 41% compared to $1,797 million in the third quarter 2015.
In the first nine months of 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $672 million ($438 million in the first nine months of 2015) was $3,509 million, a decrease of 26% compared to $4,743 million in the first nine months of 2015.
4
The Refining & Chemicals segments adjusted net operating income was:
| $917 million in the third quarter 2016, a decrease of only 36% compared to $1,443 million in the third quarter 2015 despite the strong decrease in refining margins and lower petrochemical margins, due to the reduction in breakeven and the strong operational performance of the Groups major integrated platforms; and |
| $3,063 million in the first nine months of 2016, a decrease of 21% compared to $3,882 million in the first nine months of 2015 due to the less favorable environment. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2016, the exclusion of the inventory valuation effect had a negative impact on the segments adjusted net operating income of $21 million compared to a positive impact of $631 million in the third quarter 2015, essentially due to the lower Brent price. The exclusion of special items in the third quarter 2016 had a positive impact on the segments adjusted net operating income of $12 million compared to a positive impact of $12 million in the third quarter 2015.
B.3. | Marketing & Services segment |
- | Petroleum product sales |
3Q16 | 2Q16 | 3Q15(a) | 3Q16 vs 3Q15 |
sales in kb/d(b) |
9M16 | 9M15(a) | 9M16 vs 9M15(a) | |||||||||||||||||
1,814 | 1,793 | 1,839 | -1% | Total Marketing & Services sales |
1,788 | 1,825 | -2% | |||||||||||||||||
1,113 | 1,074 | 1,121 | -1% | Europe |
1,083 | 1,101 | -2% | |||||||||||||||||
701 | 719 | 718 | -2% | Rest of world |
705 | 724 | -3% |
(a) | 2015 data restated. |
(b) | Excludes trading and bulk refining sales, which are reported under the Refining & Chemicals segment (see page 9 of this exhibit); includes share of TotalErg. |
In the third quarter 2016, petroleum product sales decreased by 1% compared to the third quarter 2015, mainly due to the sale of the marketing network in Turkey in the second quarter 2016.
In the first nine months of 2016, refined product sales decreased by 2% compared to the first nine months of 2015, essentially due to the disposal of mature assets or assets lacking critical mass. Excluding the portfolio effects, retail network sales and sales of land-based lubricants increased by nearly 4%.
- | Results |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
in millions of dollars |
9M16 | 9M15 | 9M16 vs 9M15 | |||||||||||||||||
17,964 | 17,305 | 19,522 | -8% | Non-Group sales |
50,702 | 59,561 | -15% | |||||||||||||||||
497 | 542 | 298 | +67% | Operating income |
1,293 | 1,229 | +5% | |||||||||||||||||
68 | (108 | ) | 199 | -66% | Adjustments affecting operating income |
37 | 178 | -79% | ||||||||||||||||
565 | 434 | 497 | +14% | Adjusted operating income(a) |
1,330 | 1,407 | -5% | |||||||||||||||||
545 | 378 | 423 | +29% | Adjusted net operating income(a) |
1,175 | 1,169 | +1% | |||||||||||||||||
100 | (43 | ) | (82 | ) | n/a | Including New Energies |
20 | (169 | ) | n/a | ||||||||||||||
1,175 | 339 | 501 | x2.3 | Investments |
1,904 | 1,152 | +65% | |||||||||||||||||
40 | 296 | 121 | -67% | Divestments |
373 | 800 | -53% | |||||||||||||||||
322 | 329 | 365 | -12% | Organic investments |
872 | 832 | +5% | |||||||||||||||||
495 | (15 | ) | 1,011 | -51% | Cash flow from operating activities |
720 | 2,034 | -65% |
(a) | Details on adjustment items are shown in the business segment information starting on page 22 of this exhibit. |
Cash flow from operating activities in the third quarter 2016 excluding the change in working capital at replacement cost of $105 million (-$493 million in the third quarter 2015) was $600 million, an increase of 16% compared to $518 million in the third quarter 2015.
In the first nine months of 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $753 million (-$567 million in the first nine months of 2015) was $1,473 million compared to $1,467 million in the first nine months of 2015.
5
The Marketing & Services segments adjusted net operating income was:
| $545 million in the third quarter 2016, a 29% increase compared to $423 million in the third quarter 2015, due to a strong contribution from New Energies with the sale of the Henrietta solar farm in the United States; and |
| $1,175 million in the first nine months of 2016, stable compared to $1,169 million in the first nine months of 2015. The impact of assets sales was offset by the contribution from New Energies in the third quarter. |
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2016, the exclusion of the inventory valuation effect had a positive impact on the segments adjusted net operating income of $33 million compared to a positive impact of $139 million in the third quarter 2015. The exclusion of special items in the third quarter 2016 had a positive impact on the segments adjusted net operating income of $96 million compared to a positive impact of $141 million in the third quarter 2015, consisting essentially of the accounting consequences of a sale in progress in Turkey.
At $1.2 billion, investments were sharply higher in the third quarter 2016 compared to the third quarter 2015 due to the acquisition of Saft for $1 billion. Organic investments, however, decreased by 12% over the same period.
C. | GROUP RESULTS |
- | Net income (Group share) |
Net income (Group share) was:
| $1,954 million in the third quarter 2016 compared to $1,079 million in the third quarter 2015, an increase of 81%; and |
| $5,648 million in the first nine months of 2016 compared to $6,713 million in the first nine months of 2015, a decrease of 16%. |
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:
| -$116 million in the third quarter 2016; and |
| -$232 million in the first nine months of 2016, including mainly the 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 were not developed in the second quarter 2016. |
Adjusted net income (Group share) was:
| $2,070 million in the third quarter 2016 compared to $2,756 million in the third quarter 2015, a decrease of 25%, mainly due to lower average hydrocarbon prices in the Upstream and lower refining margins; and |
| $5,880 million in the first nine months of 2016 compared to $8,443 million in the first nine months of 2015, a decrease of 30% for the same reasons. |
The number of fully-diluted shares was 2,407 million on September 30, 2016, and 2,310 million on September 30, 2015.
- | Divestments acquisitions |
Asset sales were:
| $91 million in the third quarter 2016 compared to $395 million in the third quarter 2015; and |
| $1,448 million in the first nine months of 2016, comprised mainly of the sales of the FUKA gas pipeline network in the North Sea and the retail network in Turkey, compared to $3,867 million in the first nine months of 2015. |
(1) | Details shown on pages 10 and 33 of this exhibit. |
6
Acquisitions were:
| $1,018 million in the third quarter 2016, comprised mainly of the acquisitions of Saft and Lampiris, compared to $631 million in the third quarter 2015; and |
| $1,417 million in the first nine months of 2016, comprised mainly of the acquisitions of Saft, Lampiris and a retail network in the Dominican Republic, compared to $3,408 million in the first nine months of 2015. |
The impact on net cash flow from asset sales and acquisitions was -$927 million in the third quarter 2016 compared to -$236 million in the third quarter 2015. The impact was $31 million in the first nine months of 2016 compared to $459 million in the first nine months of 2015.
- | Cash flow |
The Groups net cash flow(1) was:
| -$594 million in the third quarter 2016 compared to -$571 million in the third quarter 2015 despite the 11% drop in Brent price, 53% decrease in refining margins and the Groups higher acquisitions in the third quarter 2016. This performance is due to the resilience of cash flow generation and lower organic investments; and |
| -$599 million in the first nine months of 2016 compared to -$1,060 million in the first nine months of 2015, an improvement despite the decrease in Brent price from $55/b to $42/b and a decrease of 39% in refining margins. Operating cash flow before working capital changes was $12.2 billion compared to $15.0 billion in the first nine months of 2015 and net investments were $12.8 billion compared to $16.1 billion in the first nine months of 2015, mainly due to the decrease in organic investments. |
Cash flow from operating activities in the third quarter 2016 excluding the change in working capital at replacement cost of -$218 million (-$930 million in the third quarter 2015) was $4,522 million, a decrease of 11% compared to $5,059 million in the third quarter 2015.
In the first nine months of 2016, cash flow from operating activities excluding the change in working capital at replacement cost of $2,727 million (-$97 million in the first nine months of 2015) was $12,230 million, a decrease of 19% compared to $15,011 million in the first nine months of 2015.
- | Return on equity |
Return on equity from October 1, 2015 to September 30, 2016 was 8.3%(2).
D. | SUMMARY AND OUTLOOK |
Following the remarks by OPEC countries and Russia, Brent rose to around $50/b despite high inventory levels. With the market expected to remain volatile, Total is pursuing its efforts to lower its breakeven.
In the Upstream, the five major projects of the year have all been put on stream and production is ramping up. The production target of more than 4% growth in 2016 compared to 2015 is set to be achieved and the teams are focused on delivering the 2017-18 project start-ups. In 2017, production from projects started up since 2015 are expected to deliver 350 kboe/d net to Total and around $3 billion in cash flow with Brent at $60/b, given that these new barrels have a higher average margin than existing production.
In the Downstream, refining margins have increased to $40/t at the beginning of the fourth quarter, driven by a high level of maintenance as well as logistics constraints, resulting in tight gasoline market conditions. The petrochemical market remains favorable and the Groups major platforms are well-positioned to benefit from this.
The Groups cost reduction program is ahead of schedule, underlining its ability to deliver the $4 billion savings target by 2018.
(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 11 of this exhibit. |
7
Given the capex guidance of $15-17 billion from 2017 and increase in operating cash flow, the Groups net cash flow is entering a growth phase. Operating cash flow before working capital changes should cover organic investments,
including resource renewal, and dividend cash-out, with oil prices at $55/b in 2017. The discounted scrip dividend will be ended in 2017 if Brent is at $60/b.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTALs future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTALs ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
| material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; |
| changes in currency exchange rates and currency devaluations; |
| the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL; |
| uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities; |
| uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals; |
| changes in the current capital expenditure plans of TOTAL; |
| the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies; |
| the financial resources of competitors; |
| changes in laws and regulations, including tax and environmental laws and industrial safety regulations; |
| the quality of future opportunities that may be presented to or pursued by TOTAL; |
| the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; |
| the ability to obtain governmental or regulatory approvals; |
| the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters; |
| the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures; |
| changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities; |
| the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and |
| the risk that TOTAL will inadequately hedge the price of crude oil or finished products. |
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.
8
OPERATING INFORMATION BY SEGMENT
| Upstream(a) |
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
Combined liquids and gas production by region (kboe/d) |
9M16 | 9M15 | 9M16 vs 9M15 |
|||||||||||||||||||||
720 | 770 | 677 | +6 | % | Europe and Central Asia |
759 | 658 | +15 | % | |||||||||||||||||||
649 | 634 | 646 | | Africa |
638 | 639 | | |||||||||||||||||||||
529 | 505 | 525 | +1 | % | Middle East and North Africa |
522 | 541 | -3 | % | |||||||||||||||||||
285 | 251 | 249 | +14 | % | Americas |
265 | 255 | +4 | % | |||||||||||||||||||
261 | 264 | 245 | +6 | % | Asia-Pacific |
265 | 253 | +5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2,443 | 2,424 | 2,342 | +4 | % | Total production |
2,449 | 2,345 | +4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
592 | 627 | 574 | +3 | % | Including equity affiliates |
613 | 565 | +9 | % | |||||||||||||||||||
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
Liquids production by region (kb/d) |
9M16 | 9M15 | 9M16 vs 9M15 |
|||||||||||||||||||||
238 | 251 | 219 | +9 | % | Europe and Central Asia |
247 | 211 | +17 | % | |||||||||||||||||||
524 | 511 | 522 | | Africa |
518 | 520 | | |||||||||||||||||||||
380 | 367 | 378 | +1 | % | Middle East and North Africa |
376 | 376 | | ||||||||||||||||||||
118 | 93 | 92 | +29 | % | Americas |
105 | 93 | +13 | % | |||||||||||||||||||
29 | 30 | 30 | -4 | % | Asia-Pacific |
31 | 33 | -6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,290 | 1,253 | 1,241 | +4 | % | Total production |
1,276 | 1,232 | +4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
249 | 265 | 230 | +8 | % | Including equity affiliates |
251 | 218 | +15 | % | |||||||||||||||||||
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
Gas production by region (Mcf/d) |
9M16 | 9M15 | 9M16 vs 9M15 |
|||||||||||||||||||||
2,594 | 2,876 | 2,458 | +6 | % | Europe and Central Asia |
2,760 | 2,406 | +15 | % | |||||||||||||||||||
617 | 594 | 622 | -1 | % | Africa |
592 | 593 | | ||||||||||||||||||||
813 | 762 | 806 | +1 | % | Middle East and North Africa |
805 | 905 | -11 | % | |||||||||||||||||||
927 | 881 | 878 | +6 | % | Americas |
889 | 905 | -2 | % | |||||||||||||||||||
1,335 | 1,353 | 1,239 | +8 | % | Asia-Pacific |
1,351 | 1,265 | +7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
6,286 | 6,466 | 6,003 | +5 | % | Total production |
6,397 | 6,074 | +5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,831 | 1,927 | 1,850 | -1 | % | Including equity affiliates |
1,932 | 1,858 | +4 | % | |||||||||||||||||||
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
Liquefied natural gas |
9M16 | 9M15 | 9M16 vs 9M15 |
|||||||||||||||||||||
2.69 | 2.76 | 2.53 | +6 | % | LNG sales(b) (Mt) |
8.09 | 7.74 | +5 | % |
(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) |
3Q16 | 2Q16 | 3Q15(a) | 3Q16 vs 3Q15 |
Refined product sales by region (kb/d)(b) |
9M16 | 9M15(a) | 9M16 vs 9M15 |
|||||||||||||||||||||
2,430 | 2,372 | 2,282 | +6 | % | Europe |
2,363 | 2,146 | +10 | % | |||||||||||||||||||
537 | 597 | 609 | -12 | % | Africa |
545 | 643 | -15 | % | |||||||||||||||||||
627 | 597 | 585 | +7 | % | Americas |
585 | 597 | -2 | % | |||||||||||||||||||
567 | 705 | 610 | -7 | % | Rest of world |
681 | 636 | +7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
4,161 | 4,271 | 4,086 | +2 | % | Total consolidated sales |
4,174 | 4,022 | +4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
706 | 717 | 648 | +9 | % | Including bulk sales |
707 | 636 | +11 | % | |||||||||||||||||||
1,641 | 1,761 | 1,599 | +3 | % | Including trading |
1,679 | 1,561 | +8 | % |
(a) | 2015 data restated. |
(b) | Includes share of TotalErg. |
9
ADJUSTMENT ITEMS
| Adjustments to operating income |
3Q16 |
2Q16 | 3Q15 | in millions of dollars |
9M16 | 9M15 | |||||||||||||||
(115 | ) | (633 | ) | (654 | ) | Special items affecting operating income |
(1,212 | ) | (2,505 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(15 | ) | (8 | ) | | Restructuring charges |
(34 | ) | | ||||||||||||
| (200 | ) | (650 | ) | Impairments |
(200 | ) | (1,944 | ) | |||||||||||
(100 | ) | (425 | ) | (4 | ) | Other |
(978 | ) | (561 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(47 | ) | 634 | (1,127 | ) | Pre-tax inventory effect: FIFO vs. replacement cost |
305 | (649 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(18 | ) | (6 | ) | (10 | ) | Effect of changes in fair value |
(21 | ) | (16 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(180 | ) | (5 | ) | (1,791 | ) | Total adjustments affecting operating income |
(928 | ) | (3,170 | ) |
| Adjustments to net operating income (Group share) |
3Q16 |
2Q16 | 3Q15 | in millions of dollars |
9M16 | 9M15 | |||||||||||||||
(98 | ) | (486 | ) | (912 | ) | Special items affecting net income (Group share) |
(434 | ) | (1,289 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(32 | ) | (14 | ) | (98 | ) | Gain (loss) on asset sales |
312 | 1,231 | ||||||||||||
(18 | ) | (2 | ) | (12 | ) | Restructuring charges |
(22 | ) | (43 | ) | ||||||||||
(33 | ) | (178 | ) | (650 | ) | Impairments |
(211 | ) | (2,004 | ) | ||||||||||
(15 | ) | (292 | ) | (152 | ) | Other |
(513 | ) | (473 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(5 | ) | 405 | (760 | ) | After-tax inventory effect: FIFO vs. replacement cost |
217 | (432 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(13 | ) | (5 | ) | (5 | ) | Effect of changes in fair value |
(15 | ) | (9 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(116 | ) | (86 | ) | (1,677 | ) | Total adjustments affecting net income |
(232 | ) | (1,730 | ) |
INVESTMENTS DIVESTMENTS
3Q16 | 2Q16 | 3Q15 | 3Q16 vs 3Q15 |
in millions of dollars |
9M16 | 9M15 | 9M16 vs 9M15 |
|||||||||||||||||||||
4,082 | 4,059 | 5,394 | -24 | % | Organic investments |
12,756 | 16,611 | -23 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
136 | 172 | 170 | -20 | % | Capitalized exploration |
536 | 966 | -45 | % | |||||||||||||||||||
135 | 257 | 523 | -74 | % | Increase in non-current loans |
964 | 1,707 | -44 | % | |||||||||||||||||||
(101 | ) | (301 | ) | (15 | ) | x6.7 | Repayment of non-current loans |
(502 | ) | (1,420 | ) | -65 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,018 | 206 | 631 | +61 | % | Acquisitions |
1,417 | 3,408 | -58 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
91 | 472 | 395 | -77 | % | Asset sales |
1,448 | 3,867 | -63 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(107 | ) | 3 | | n/a | Other transactions with non-controlling interests |
(104 | ) | 81 | n/a | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
5,116 | 3,790 | 5,630 | -9 | % | Net investments |
12,829 | 16,071 | -20 | % |
10
NET-DEBT-TO-EQUITY RATIO
in millions of dollars |
9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
Current borrowings |
13,383 | 13,789 | 13,296 | |||||||||
Net current financial assets |
(1,375 | ) | (1,628 | ) | (3,246 | ) | ||||||
Net financial assets classified as held for sale |
(81 | ) | (97 | ) | 94 | |||||||
Non-current financial debt |
44,450 | 41,668 | 42,873 | |||||||||
Hedging instruments of non-current debt |
(1,089 | ) | (1,251 | ) | (1,221 | ) | ||||||
Cash and cash equivalents |
(24,801 | ) | (22,653 | ) | (25,858 | ) | ||||||
|
|
|
|
|
|
|||||||
Net debt |
30,487 | 29,828 | 25,938 | |||||||||
|
|
|
|
|
|
|||||||
Shareholders equity Group share |
98,168 | 97,985 | 96,093 | |||||||||
Estimated dividend payable |
(1,629 | ) | (1,618 | ) | (1,573 | ) | ||||||
Non-controlling interests |
2,948 | 2,904 | 3,068 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted shareholders equity |
99,487 | 99,271 | 97,588 | |||||||||
|
|
|
|
|
|
|||||||
Net-debt-to-equity ratio |
30.6 | % | 30.0 | % | 26.6 | % |
RETURN ON EQUITY
in millions of dollars |
October 1, 2015 to September 30, 2016 |
July 1, 2015 to June 30, 2016 |
January 1, 2015 to December 31, 2015 |
|||||||||
Adjusted net income |
8,207 | 8,817 | 10,698 | |||||||||
Average adjusted shareholders equity |
98,538 | 99,029 | 92,854 | |||||||||
|
|
|
|
|
|
|||||||
Return on equity (ROE) |
8.3 | % | 8.9 | % | 11.5 | % |
11
RETURN ON AVERAGE CAPITAL EMPLOYED
| Twelve months ended September 30, 2016 |
in millions of dollars |
Upstream | Refining & Chemicals |
Marketing & Services |
|||||||||
Adjusted net operating income |
3,250 | 4,070 | 1,705 | |||||||||
Capital employed at 9/30/2015(a) |
108,425 | 11,319 | 7,865 | |||||||||
Capital employed at 9/30/2016(a) |
110,590 | 12,030 | 10,316 | |||||||||
|
|
|
|
|
|
|||||||
ROACE |
3.0 | % | 34.9 | % | 18.8 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
| 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). |
| 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). |
12
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) |
||||||||||||||||
Third quarter 2016 |
1.12 | 25.5 | 45.9 | 41.4 | 3.45 | |||||||||||||||
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 |
(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 = $0.136/b. |
(c) | Consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting/underlifting position valued at market price. |
Disclaimer: data is based on TOTALs reporting, is not audited and is subject to change.
13
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) |
3rd quarter 2016 |
2nd quarter 2016 |
3rd quarter 2015 |
|||||||||
Sales |
37,412 | 37,215 | 40,580 | |||||||||
Excise taxes |
(5,587 | ) | (5,504 | ) | (5,683 | ) | ||||||
Revenues from sales |
31,825 | 31,711 | 34,897 | |||||||||
Purchases, net of inventory variation |
(21,223 | ) | (20,548 | ) | (24,240 | ) | ||||||
Other operating expenses |
(5,469 | ) | (5,906 | ) | (5,794 | ) | ||||||
Exploration costs |
(274 | ) | (536 | ) | (275 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,936 | ) | (2,968 | ) | (3,345 | ) | ||||||
Other income |
290 | 172 | 430 | |||||||||
Other expense |
(351 | ) | (133 | ) | (441 | ) | ||||||
Financial interest on debt |
(268 | ) | (267 | ) | (233 | ) | ||||||
Financial income and expense from cash & cash equivalents |
(5 | ) | 1 | 10 | ||||||||
Cost of net debt |
(273 | ) | (266 | ) | (223 | ) | ||||||
Other financial income |
265 | 312 | 185 | |||||||||
Other financial expense |
(154 | ) | (166 | ) | (154 | ) | ||||||
Equity in net income (loss) of affiliates |
531 | 776 | 486 | |||||||||
Income taxes |
(251 | ) | (330 | ) | (461 | ) | ||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
1,980 | 2,118 | 1,065 | |||||||||
|
|
|
|
|
|
|||||||
Group share |
1,954 | 2,088 | 1,079 | |||||||||
Non-controlling interests |
26 | 30 | (14 | ) | ||||||||
|
|
|
|
|
|
|||||||
Earnings per share ($) |
0.79 | 0.86 | 0.45 | |||||||||
|
|
|
|
|
|
|||||||
Fully-diluted earnings per share ($) |
0.79 | 0.86 | 0.45 | |||||||||
|
|
|
|
|
|
(a) | Except for per share amounts. |
14
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) |
3rd quarter 2016 |
2nd quarter 2016 |
3rd quarter 2015 |
|||||||||
Consolidated net income |
1,980 | 2,118 | 1,065 | |||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
||||||||||||
Actuarial gains and losses |
(363 | ) | (132 | ) | 46 | |||||||
Tax effect |
47 | 40 | (21 | ) | ||||||||
Currency translation adjustment generated by the parent company |
439 | (2,113 | ) | 132 | ||||||||
|
|
|
|
|
|
|||||||
Items not potentially reclassifiable to profit and loss |
123 | (2,205 | ) | 157 | ||||||||
|
|
|
|
|
|
|||||||
Currency translation adjustment |
(362 | ) | 589 | (736 | ) | |||||||
Available for sale financial assets |
15 | (4 | ) | (3 | ) | |||||||
Cash flow hedge |
113 | (66 | ) | (95 | ) | |||||||
Share of other comprehensive income of equity affiliates, net amount |
123 | 355 | (626 | ) | ||||||||
Other |
(3 | ) | | | ||||||||
Tax effect |
(41 | ) | 21 | 31 | ||||||||
|
|
|
|
|
|
|||||||
Items potentially reclassifiable to profit and loss |
(155 | ) | 895 | (1,429 | ) | |||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (net amount) |
(32 | ) | (1,310 | ) | (1,272 | ) | ||||||
|
|
|
|
|
|
|||||||
|
||||||||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
1,948 | 808 | (207 | ) | ||||||||
|
|
|
|
|
|
|||||||
Group share |
1,909 | 795 | (167 | ) | ||||||||
Non-controlling interests |
39 | 13 | (40 | ) |
15
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) |
9 months 2016 |
9 months 2015 |
||||||
Sales |
107,468 | 127,608 | ||||||
Excise taxes |
(16,410 | ) | (16,479 | ) | ||||
Revenues from sales |
91,058 | 111,129 | ||||||
Purchases, net of inventory variation |
(59,410 | ) | (74,797 | ) | ||||
Other operating expenses |
(17,511 | ) | (18,097 | ) | ||||
Exploration costs |
(1,004 | ) | (1,264 | ) | ||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,584 | ) | (10,048 | ) | ||||
Other income |
962 | 2,773 | ||||||
Other expense |
(554 | ) | (1,279 | ) | ||||
Financial interest on debt |
(809 | ) | (726 | ) | ||||
Financial income and expense from cash & cash equivalents |
6 | 69 | ||||||
Cost of net debt |
(803 | ) | (657 | ) | ||||
Other financial income |
768 | 582 | ||||||
Other financial expense |
(475 | ) | (483 | ) | ||||
Equity in net income (loss) of affiliates |
1,805 | 1,761 | ||||||
Income taxes |
(533 | ) | (3,034 | ) | ||||
|
|
|
|
|||||
Consolidated net income |
5,719 | 6,586 | ||||||
|
|
|
|
|||||
Group share |
5,648 | 6,713 | ||||||
Non-controlling interests |
71 | (127 | ) | |||||
|
|
|
|
|||||
Earnings per share ($) |
2.33 | 2.90 | ||||||
|
|
|
|
|||||
Fully-diluted earnings per share ($) |
2.32 | 2.89 | ||||||
|
|
|
|
(a) | Except for per share amounts. |
16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) |
9 months 2016 |
9 months 2015 |
||||||
Consolidated net income |
5,719 | 6,586 | ||||||
|
|
|
|
|||||
Other comprehensive income |
||||||||
Actuarial gains and losses |
(576 | ) | 199 | |||||
Tax effect |
119 | (138 | ) | |||||
Currency translation adjustment generated by the parent company |
1,967 | (5,097 | ) | |||||
|
|
|
|
|||||
Items not potentially reclassifiable to profit and loss |
1,510 | (5,036 | ) | |||||
|
|
|
|
|||||
Currency translation adjustment |
(1,717 | ) | 1,852 | |||||
Available for sale financial assets |
1 | (7 | ) | |||||
Cash flow hedge |
145 | (189 | ) | |||||
Share of other comprehensive income of equity affiliates, net amount |
477 | 215 | ||||||
Other |
| 1 | ||||||
Tax effect |
(44 | ) | 60 | |||||
|
|
|
|
|||||
Items potentially reclassifiable to profit and loss |
(1,138 | ) | 1,932 | |||||
|
|
|
|
|||||
Total other comprehensive income (net amount) |
372 | (3,104 | ) | |||||
|
|
|
|
|||||
|
||||||||
|
|
|
|
|||||
Comprehensive income |
6,091 | 3,482 | ||||||
|
|
|
|
|||||
Group share |
6,012 | 3,666 | ||||||
Non-controlling interests |
79 | (184 | ) |
17
CONSOLIDATED BALANCE SHEET
TOTAL
(M$) |
September 30, 2016 |
June 30, 2016 |
December 31, 2015 |
September 30, 2015 |
||||||||||||
(unaudited) | (unaudited) |
|
(unaudited) | |||||||||||||
ASSETS |
||||||||||||||||
Non-current assets |
||||||||||||||||
Intangible assets, net |
14,916 | 14,207 | 14,549 | 15,639 | ||||||||||||
Property, plant and equipment, net |
113,433 | 111,420 | 109,518 | 108,886 | ||||||||||||
Equity affiliates : investments and loans |
20,870 | 20,683 | 19,384 | 19,200 | ||||||||||||
Other investments |
1,565 | 1,411 | 1,241 | 1,227 | ||||||||||||
Hedging instruments of non-current financial debt |
1,089 | 1,251 | 1,219 | 1,221 | ||||||||||||
Deferred income taxes |
4,434 | 4,175 | 3,982 | 3,439 | ||||||||||||
Other non-current assets |
4,534 | 4,467 | 4,355 | 4,292 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current assets |
160,841 | 157,614 | 154,248 | 153,904 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current assets |
||||||||||||||||
Inventories, net |
14,635 | 15,021 | 13,116 | 14,773 | ||||||||||||
Accounts receivable, net |
11,501 | 11,933 | 10,629 | 12,306 | ||||||||||||
Other current assets |
14,927 | 14,850 | 15,843 | 15,102 | ||||||||||||
Current financial assets |
1,755 | 2,018 | 6,190 | 3,448 | ||||||||||||
Cash and cash equivalents |
24,801 | 22,653 | 23,269 | 25,858 | ||||||||||||
Assets classified as held for sale |
1,045 | 1,257 | 1,189 | 3,734 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
68,664 | 67,732 | 70,236 | 75,221 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
229,505 | 225,346 | 224,484 | 229,125 | ||||||||||||
LIABILITIES & SHAREHOLDERS EQUITY |
||||||||||||||||
Shareholders equity |
||||||||||||||||
Common shares |
7,849 | 7,846 | 7,670 | 7,602 | ||||||||||||
Paid-in surplus and retained earnings |
106,189 | 106,343 | 101,528 | 103,519 | ||||||||||||
Currency translation adjustment |
(11,448 | ) | (11,619 | ) | (12,119 | ) | (10,443 | ) | ||||||||
Treasury shares |
(4,422 | ) | (4,585 | ) | (4,585 | ) | (4,585 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equityGroup share |
98,168 | 97,985 | 92,494 | 96,093 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-controlling interests |
2,948 | 2,904 | 2,915 | 3,068 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shareholders equity |
101,116 | 100,889 | 95,409 | 99,161 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||||||
Deferred income taxes |
11,390 | 11,345 | 12,360 | 12,836 | ||||||||||||
Employee benefits |
4,247 | 3,887 | 3,774 | 4,312 | ||||||||||||
Provisions and other non-current liabilities |
17,320 | 17,270 | 17,502 | 17,053 | ||||||||||||
Non-current financial debt |
44,450 | 41,668 | 44,464 | 42,873 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
77,407 | 74,170 | 78,100 | 77,074 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current liabilities |
||||||||||||||||
Accounts payable |
19,799 | 20,478 | 20,928 | 20,003 | ||||||||||||
Other creditors and accrued liabilities |
16,895 | 14,983 | 16,884 | 17,991 | ||||||||||||
Current borrowings |
13,383 | 13,789 | 12,488 | 13,296 | ||||||||||||
Other current financial liabilities |
380 | 390 | 171 | 202 | ||||||||||||
Liabilities directly associated with the assets classified as held for sale |
525 | 647 | 504 | 1,398 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current liabilities |
50,982 | 50,287 | 50,975 | 52,890 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities & shareholders equity |
229,505 | 225,346 | 224,484 | 229,125 |
18
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) |
3rd quarter 2016 |
2nd quarter 2016 |
3rd quarter 2015 |
|||||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||||||
Consolidated net income |
1,980 | 2,118 | 1,065 | |||||||||
Depreciation, depletion, amortization and impairment |
3,297 | 3,361 | 3,519 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes |
(539 | ) | (477 | ) | (540 | ) | ||||||
Impact of coverage of pension benefit plans |
| | | |||||||||
(Gains) losses on disposals of assets |
94 | (48 | ) | 22 | ||||||||
Undistributed affiliates equity earnings |
(192 | ) | (280 | ) | (61 | ) | ||||||
(Increase) decrease in working capital |
265 | (1,752 | ) | 2,057 | ||||||||
Other changes, net |
(165 | ) | (40 | ) | (73 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash flow from operating activities |
4,740 | 2,882 | 5,989 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||||||
Intangible assets and property, plant and equipment additions |
(4,124 | ) | (4,094 | ) | (5,266 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired |
(1,119 | ) | 11 | (76 | ) | |||||||
Investments in equity affiliates and other securities |
177 | (226 | ) | (175 | ) | |||||||
Increase in non-current loans |
(135 | ) | (257 | ) | (523 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenditures |
(5,201 | ) | (4,566 | ) | (6,040 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment |
57 | 200 | 6 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold |
| 270 | 289 | |||||||||
Proceeds from disposals of non-current investments |
34 | 2 | 100 | |||||||||
Repayment of non-current loans |
101 | 301 | 15 | |||||||||
|
|
|
|
|
|
|||||||
Total divestments |
192 | 773 | 410 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow used in investing activities |
(5,009 | ) | (3,793 | ) | (5,630 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||||||
Issuance (repayment) of shares: |
||||||||||||
- Parent company shareholders |
36 | 4 | 4 | |||||||||
- Treasury shares |
| | (237 | ) | ||||||||
Dividends paid: |
||||||||||||
- Parent company shareholders |
| (1,173 | ) | (681 | ) | |||||||
- Non-controlling interests |
(2 | ) | (72 | ) | (25 | ) | ||||||
Issuance of perpetual subordinated notes |
| 1,950 | | |||||||||
Payments on perpetual subordinated notes |
| | | |||||||||
Other transactions with non-controlling interests |
(107 | ) | 3 | | ||||||||
Net issuance (repayment) of non-current debt |
3,127 | 400 | 356 | |||||||||
Increase (decrease) in current borrowings |
(909 | ) | 1,011 | 23 | ||||||||
Increase (decrease) in current financial assets and liabilities |
257 | 1,399 | (1,096 | ) | ||||||||
Cash flow used in financing activities |
2,402 | 3,522 | (1,656 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and cash equivalents |
2,133 | 2,611 | (1,297 | ) | ||||||||
Effect of exchange rates |
15 | (528 | ) | (167 | ) | |||||||
Cash and cash equivalents at the beginning of the period |
22,653 | 20,570 | 27,322 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period |
24,801 | 22,653 | 25,858 | |||||||||
|
|
|
|
|
|
19
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) |
9 months 2016 |
9 months 2015 |
||||||
CASH FLOW FROM OPERATING ACTIVITIES |
||||||||
Consolidated net income |
5,719 | 6,586 | ||||||
Depreciation, depletion, amortization and impairment |
9,393 | 11,056 | ||||||
Non-current liabilities, valuation allowances and deferred taxes |
(1,284 | ) | (701 | ) | ||||
Impact of coverage of pension benefit plans |
| | ||||||
(Gains) losses on disposals of assets |
(321 | ) | (1,794 | ) | ||||
Undistributed affiliates equity earnings |
(708 | ) | (350 | ) | ||||
(Increase) decrease in working capital |
(3,032 | ) | 746 | |||||
Other changes, net |
(264 | ) | (435 | ) | ||||
|
|
|
|
|||||
Cash flow from operating activities |
9,503 | 15,108 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES |
||||||||
Intangible assets and property, plant and equipment additions |
(12,364 | ) | (19,213 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired |
(1,241 | ) | (86 | ) | ||||
Investments in equity affiliates and other securities |
(106 | ) | (433 | ) | ||||
Increase in non-current loans |
(964 | ) | (1,707 | ) | ||||
|
|
|
|
|||||
Total expenditures |
(14,675 | ) | (21,439 | ) | ||||
Proceeds from disposals of intangible assets and property, plant and equipment |
1,049 | 1,186 | ||||||
Proceeds from disposals of subsidiaries, net of cash sold |
270 | 2,450 | ||||||
Proceeds from disposals of non-current investments |
129 | 231 | ||||||
Repayment of non-current loans |
502 | 1,420 | ||||||
|
|
|
|
|||||
Total divestments |
1,950 | 5,287 | ||||||
|
|
|
|
|||||
Cash flow used in investing activities |
(12,725 | ) | (16,152 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES |
||||||||
Issuance (repayment) of shares: |
||||||||
- Parent company shareholders |
40 | 454 | ||||||
- Treasury shares |
| (237 | ) | |||||
Dividends paid: |
||||||||
- Parent company shareholders |
(2,127 | ) | (2,253 | ) | ||||
- Non-controlling interests |
(77 | ) | (97 | ) | ||||
Issuance of perpetual subordinated notes |
1,950 | 5,616 | ||||||
Payments on perpetual subordinated notes |
(133 | ) | | |||||
Other transactions with non-controlling interests |
(104 | ) | 81 | |||||
Net issuance (repayment) of non-current debt |
3,681 | 2,127 | ||||||
Increase (decrease) in current borrowings |
(2,925 | ) | (66 | ) | ||||
Increase (decrease) in current financial assets and liabilities |
4,402 | (2,197 | ) | |||||
Cash flow used in financing activities |
4,707 | 3,428 | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
1,485 | 2,384 | ||||||
Effect of exchange rates |
47 | (1,707 | ) | |||||
Cash and cash equivalents at the beginning of the period |
23,269 | 25,181 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at the end of the period |
24,801 | 25,858 | ||||||
|
|
|
|
20
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 9 months 2015 |
| | 6,713 | | | | 6,713 | (127 | ) | 6,586 | ||||||||||||||||||||||||||
Other comprehensive Income |
| | (84 | ) | (2,963 | ) | | | (3,047 | ) | (57 | ) | (3,104 | ) | ||||||||||||||||||||||
Comprehensive Income |
| | 6,629 | (2,963 | ) | | | 3,666 | (184 | ) | 3,482 | |||||||||||||||||||||||||
Dividend |
| | (4,740 | ) | | | | (4,740 | ) | (97 | ) | (4,837 | ) | |||||||||||||||||||||||
Issuance of common shares |
29,822,264 | 84 | 1,241 | | | | 1,325 | | 1,325 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | (4,711,935 | ) | (237 | ) | (237 | ) | | (237 | ) | |||||||||||||||||||||||
Sale of treasury shares (1) |
| | (6 | ) | | 103,270 | 6 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 96 | | | | 96 | | 96 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | 5,616 | | | | 5,616 | | 5,616 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (80 | ) | | | | (80 | ) | | (80 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | 19 | | | | 19 | 59 | 78 | |||||||||||||||||||||||||||
Other items |
| | 98 | | | | 98 | 89 | 187 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of September 30, 2015 |
2,415,089,789 | 7,602 | 103,519 | (10,443 | ) | (113,970,078 | ) | (4,585 | ) | 96,093 | 3,068 | 99,161 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income from October 1 to December 31, 2015 |
| | (1,626 | ) | | | | (1,626 | ) | (174 | ) | (1,800 | ) | |||||||||||||||||||||||
Other comprehensive Income |
| | 269 | (1,676 | ) | | | (1,407 | ) | (24 | ) | (1,431 | ) | |||||||||||||||||||||||
Comprehensive Income |
| | (1,357 | ) | (1,676 | ) | | | (3,033 | ) | (198 | ) | (3,231 | ) | ||||||||||||||||||||||
Dividend |
| | (1,563 | ) | | | | (1,563 | ) | (3 | ) | (1,566 | ) | |||||||||||||||||||||||
Issuance of common shares |
24,968,094 | 68 | 918 | | | | 986 | | 986 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | | | 2,320 | | | | | |||||||||||||||||||||||||||
Share-based payments |
| | 5 | | | | 5 | | 5 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | | | | | | | | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (34 | ) | | | | (34 | ) | | (34 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | 4 | | | | 4 | 5 | 9 | |||||||||||||||||||||||||||
Other items |
| | 36 | | | | 36 | 43 | 79 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
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 9 months 2016 |
| | 5,648 | | | | 5,648 | 71 | 5,719 | |||||||||||||||||||||||||||
Other comprehensive Income |
| | (307 | ) | 671 | | | 364 | 8 | 372 | ||||||||||||||||||||||||||
Comprehensive Income |
| | 5,341 | 671 | | | 6,012 | 79 | 6,091 | |||||||||||||||||||||||||||
Dividend |
| | (4,872 | ) | | | | (4,872 | ) | (77 | ) | (4,949 | ) | |||||||||||||||||||||||
Issuance of common shares |
63,971,645 | 179 | 2,524 | | | | 2,703 | | 2,703 | |||||||||||||||||||||||||||
Purchase of treasury shares |
| | | | | | | | | |||||||||||||||||||||||||||
Sale of treasury shares (1) |
| | (163 | ) | | 3,047,118 | 163 | | | | ||||||||||||||||||||||||||
Share-based payments |
| | 81 | | | | 81 | | 81 | |||||||||||||||||||||||||||
Share cancellation |
| | | | | | | | | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes |
| | 1,950 | | | | 1,950 | | 1,950 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes |
| | (131 | ) | | | | (131 | ) | | (131 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests |
| | (100 | ) | | | | (100 | ) | (41 | ) | (141 | ) | |||||||||||||||||||||||
Other items |
| | 31 | | | | 31 | 72 | 103 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of September 30, 2016 |
2,504,029,528 | 7,849 | 106,189 | (11,448 | ) | (110,920,640 | ) | (4,422 | ) | 98,168 | 2,948 | 101,116 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Treasury shares related to the restricted stock grants. |
21
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,398 | 16,050 | 17,964 | | | 37,412 | ||||||||||||||||||
Intersegment sales |
4,701 | 5,072 | 147 | 74 | (9,994 | ) | | |||||||||||||||||
Excise taxes |
| (875 | ) | (4,712 | ) | | | (5,587 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
8,099 | 20,247 | 13,399 | 74 | (9,994 | ) | 31,825 | |||||||||||||||||
Operating expenses |
(4,954 | ) | (19,101 | ) | (12,708 | ) | (197 | ) | 9,994 | (26,966 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,480 | ) | (251 | ) | (194 | ) | (11 | ) | | (2,936 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
665 | 895 | 497 | (134 | ) | | 1,923 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
213 | 227 | 57 | 84 | | 581 | ||||||||||||||||||
Tax on net operating income |
(40 | ) | (196 | ) | (138 | ) | 58 | | (316 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
838 | 926 | 416 | 8 | | 2,188 | ||||||||||||||||||
Net cost of net debt |
(208 | ) | ||||||||||||||||||||||
Non-controlling interests |
(26 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,954 | |||||||||||||||||||||||
3rd quarter 2016 (adjustments) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(116 | ) | | | | | (116 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(116 | ) | | | | | (116 | ) | ||||||||||||||||
Operating expenses |
| 4 | (68 | ) | | | (64 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(116 | ) | 4 | (68 | ) | | | (180 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
(123 | ) | 16 | (67 | ) | | | (174 | ) | |||||||||||||||
Tax on net operating income |
200 | (11 | ) | 6 | | | 195 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(39 | ) | 9 | (129 | ) | | | (159 | ) | |||||||||||||||
Net cost of net debt |
(6 | ) | ||||||||||||||||||||||
Non-controlling interests |
49 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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 |
| 4 | (51) | | ||||||||||||||||||||
On net operating income |
| 21 | (33) | | ||||||||||||||||||||
3rd quarter 2016
(adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,514 | 16,050 | 17,964 | | | 37,528 | ||||||||||||||||||
Intersegment sales |
4,701 | 5,072 | 147 | 74 | (9,994 | ) | | |||||||||||||||||
Excise taxes |
| (875 | ) | (4,712 | ) | | | (5,587 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
8,215 | 20,247 | 13,399 | 74 | (9,994 | ) | 31,941 | |||||||||||||||||
Operating expenses |
(4,954 | ) | (19,105 | ) | (12,640 | ) | (197 | ) | 9,994 | (26,902 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,480 | ) | (251 | ) | (194 | ) | (11 | ) | | (2,936 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
781 | 891 | 565 | (134 | ) | | 2,103 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
336 | 211 | 124 | 84 | | 755 | ||||||||||||||||||
Tax on net operating income |
(240 | ) | (185 | ) | (144 | ) | 58 | | (511 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
877 | 917 | 545 | 8 | | 2,347 | ||||||||||||||||||
Net cost of net debt |
(202 | ) | ||||||||||||||||||||||
Non-controlling interests |
(75 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,070 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.84 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
3rd quarter
2016 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
3,648 | 550 | 1,175 | (172 | ) | | 5,201 | |||||||||||||||||
Total divestments |
129 | 21 | 40 | 2 | | 192 | ||||||||||||||||||
Cash flow from operating activities |
2,380 | 1,698 | 495 | 167 | | 4,740 |
22
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter
2016 |
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) |
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) |
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 |
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 |
23
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter
2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,660 | 17,397 | 19,522 | 1 | | 40,580 | ||||||||||||||||||
Intersegment sales |
4,280 | 6,912 | 201 | 51 | (11,444 | ) | | |||||||||||||||||
Excise taxes |
| (1,094 | ) | (4,589 | ) | | | (5,683 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,940 | 23,215 | 15,134 | 52 | (11,444 | ) | 34,897 | |||||||||||||||||
Operating expenses |
(4,717 | ) | (22,169 | ) | (14,651 | ) | (216 | ) | 11,444 | (30,309 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,898 | ) | (256 | ) | (185 | ) | (6 | ) | | (3,345 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
325 | 790 | 298 | (170 | ) | | 1,243 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
360 | 152 | (29 | ) | 23 | | 506 | |||||||||||||||||
Tax on net operating income |
(345 | ) | (152 | ) | (126 | ) | 128 | | (495 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
340 | 790 | 143 | (19 | ) | | 1,254 | |||||||||||||||||
Net cost of net debt |
(189 | ) | ||||||||||||||||||||||
Non-controlling interests |
14 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,079 | |||||||||||||||||||||||
3rd quarter 2015 (adjustments) (a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(10 | ) | | | | | (10 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(10 | ) | | | | | (10 | ) | ||||||||||||||||
Operating expenses |
(9 | ) | (923 | ) | (199 | ) | | | (1,131 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(650 | ) | | | | | (650 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(669 | ) | (923 | ) | (199 | ) | | | (1,791 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
(151 | ) | (14 | ) | (145 | ) | | | (310 | ) | ||||||||||||||
Tax on net operating income |
53 | 294 | 64 | | | 411 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(767 | ) | (643 | ) | (280 | ) | | | (1,690 | ) | ||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
13 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(1,677 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
|
|||||||||||||||||||||||
On operating income |
| (934 | ) | (193 | ) | | ||||||||||||||||||
On net operating income |
| (631 | ) | (139 | ) | | ||||||||||||||||||
3rd quarter 2015
(adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,670 | 17,397 | 19,522 | 1 | | 40,590 | ||||||||||||||||||
Intersegment sales |
4,280 | 6,912 | 201 | 51 | (11,444 | ) | | |||||||||||||||||
Excise taxes |
| (1,094 | ) | (4,589 | ) | | | (5,683 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,950 | 23,215 | 15,134 | 52 | (11,444 | ) | 34,907 | |||||||||||||||||
Operating expenses |
(4,708 | ) | (21,246 | ) | (14,452 | ) | (216 | ) | 11,444 | (29,178 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,248 | ) | (256 | ) | (185 | ) | (6 | ) | | (2,695 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
994 | 1,713 | 497 | (170 | ) | | 3,034 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
511 | 166 | 116 | 23 | | 816 | ||||||||||||||||||
Tax on net operating income |
(398 | ) | (446 | ) | (190 | ) | 128 | | (906 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,107 | 1,433 | 423 | (19 | ) | | 2,944 | |||||||||||||||||
Net cost of net debt |
(189 | ) | ||||||||||||||||||||||
Non-controlling interests |
1 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,756 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.17 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
3rd quarter
2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,173 | 358 | 501 | 8 | | 6,040 | ||||||||||||||||||
Total divestments |
272 | 12 | 121 | 5 | | 410 | ||||||||||||||||||
Cash flow from operating activities |
2,320 | 2,291 | 1,011 | 367 | | 5,989 |
24
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2016 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,208 | 46,555 | 50,702 | 3 | | 107,468 | ||||||||||||||||||
Intersegment sales |
12,122 | 14,760 | 487 | 225 | (27,594 | ) | | |||||||||||||||||
Excise taxes |
| (2,760 | ) | (13,650 | ) | | | (16,410 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
22,330 | 58,555 | 37,539 | 228 | (27,594 | ) | 91,058 | |||||||||||||||||
Operating expenses |
(14,708 | ) | (54,404 | ) | (35,697 | ) | (710 | ) | 27,594 | (77,925 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(7,258 | ) | (750 | ) | (549 | ) | (27 | ) | | (8,584 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
364 | 3,401 | 1,293 | (509 | ) | | 4,549 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,452 | 664 | 105 | 285 | | 2,506 | ||||||||||||||||||
Tax on net operating income |
453 | (851 | ) | (408 | ) | 87 | | (719 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,269 | 3,214 | 990 | (137 | ) | | 6,336 | |||||||||||||||||
Net cost of net debt |
(617 | ) | ||||||||||||||||||||||
Non-controlling interests |
(71 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,648 | |||||||||||||||||||||||
9 months 2016 (adjustments)
(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(248 | ) | | | | | (248 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(248 | ) | | | | | (248 | ) | ||||||||||||||||
Operating expenses |
(691 | ) | 248 | (37 | ) | | | (480 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,139 | ) | 248 | (37 | ) | | | (928 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
206 | (11 | ) | (146 | ) | | | 49 | ||||||||||||||||
Tax on net operating income |
700 | (86 | ) | (2 | ) | | | 612 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(233 | ) | 151 | (185 | ) | | | (267 | ) | |||||||||||||||
Net cost of net debt |
(17 | ) | ||||||||||||||||||||||
Non-controlling interests |
52 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(232 | ) | ||||||||||||||||||||||
(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 |
| 315 | (10 | ) | | |||||||||||||||||||
On net operating income |
| 219 | 1 | | ||||||||||||||||||||
9 months 2016 (adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,456 | 46,555 | 50,702 | 3 | | 107,716 | ||||||||||||||||||
Intersegment sales |
12,122 | 14,760 | 487 | 225 | (27,594 | ) | | |||||||||||||||||
Excise taxes |
| (2,760 | ) | (13,650 | ) | | | (16,410 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
22,578 | 58,555 | 37,539 | 228 | (27,594 | ) | 91,306 | |||||||||||||||||
Operating expenses |
(14,017 | ) | (54,652 | ) | (35,660 | ) | (710 | ) | 27,594 | (77,445 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(7,058 | ) | (750 | ) | (549 | ) | (27 | ) | | (8,384 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,503 | 3,153 | 1,330 | (509 | ) | | 5,477 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,246 | 675 | 251 | 285 | | 2,457 | ||||||||||||||||||
Tax on net operating income |
(247 | ) | (765 | ) | (406 | ) | 87 | | (1,331 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,502 | 3,063 | 1,175 | (137 | ) | | 6,603 | |||||||||||||||||
Net cost of net debt |
(600 | ) | ||||||||||||||||||||||
Non-controlling interests |
(123 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,880 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
2.42 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
9 months 2016 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
11,424 | 1,289 | 1,904 | 58 | | 14,675 | ||||||||||||||||||
Total divestments |
1,492 | 73 | 373 | 12 | | 1,950 | ||||||||||||||||||
Cash flow from operating activities |
5,476 | 2,837 | 720 | 470 | | 9,503 |
25
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,383 | 54,654 | 59,561 | 10 | | 127,608 | ||||||||||||||||||
Intersegment sales |
13,585 | 21,262 | 696 | 159 | (35,702 | ) | | |||||||||||||||||
Excise taxes |
| (3,034 | ) | (13,445 | ) | | | (16,479 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
26,968 | 72,882 | 46,812 | 169 | (35,702 | ) | 111,129 | |||||||||||||||||
Operating expenses |
(16,135 | ) | (68,068 | ) | (45,022 | ) | (635 | ) | 35,702 | (94,158 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,668 | ) | (799 | ) | (561 | ) | (20 | ) | | (10,048 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
2,165 | 4,015 | 1,229 | (486 | ) | | 6,923 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,448 | 1,021 | 394 | 491 | | 3,354 | ||||||||||||||||||
Tax on net operating income |
(1,622 | ) | (1,031 | ) | (450 | ) | (47 | ) | | (3,150 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,991 | 4,005 | 1,173 | (42 | ) | | 7,127 | |||||||||||||||||
Net cost of net debt |
(541 | ) | ||||||||||||||||||||||
Non-controlling interests |
127 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
6,713 | |||||||||||||||||||||||
9 months 2015 (adjustments)
(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(314 | ) | | | | | (314 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(314 | ) | | | | | (314 | ) | ||||||||||||||||
Operating expenses |
(151 | ) | (606 | ) | (155 | ) | | | (912 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,890 | ) | (31 | ) | (23 | ) | | | (1,944 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(2,355 | ) | (637 | ) | (178 | ) | | | (3,170 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
(206 | ) | 576 | 140 | | | 510 | |||||||||||||||||
Tax on net operating income |
526 | 184 | 42 | | | 752 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(2,035 | ) | 123 | 4 | | | (1,908 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
178 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(1,730 | ) | ||||||||||||||||||||||
(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 |
| (500 | ) | (149 | ) | | ||||||||||||||||||
On net operating income |
| (343 | ) | (101 | ) | | ||||||||||||||||||
9 months 2015 (adjusted) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,697 | 54,654 | 59,561 | 10 | | 127,922 | ||||||||||||||||||
Intersegment sales |
13,585 | 21,262 | 696 | 159 | (35,702 | ) | | |||||||||||||||||
Excise taxes |
| (3,034 | ) | (13,445 | ) | | | (16,479 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
27,282 | 72,882 | 46,812 | 169 | (35,702 | ) | 111,443 | |||||||||||||||||
Operating expenses |
(15,984 | ) | (67,462 | ) | (44,867 | ) | (635 | ) | 35,702 | (93,246 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(6,778 | ) | (768 | ) | (538 | ) | (20 | ) | | (8,104 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,520 | 4,652 | 1,407 | (486 | ) | | 10,093 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,654 | 445 | 254 | 491 | | 2,844 | ||||||||||||||||||
Tax on net operating income |
(2,148 | ) | (1,215 | ) | (492 | ) | (47 | ) | | (3,902 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
4,026 | 3,882 | 1,169 | (42 | ) | | 9,035 | |||||||||||||||||
Net cost of net debt |
(541 | ) | ||||||||||||||||||||||
Non-controlling interests |
(51 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
8,443 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
3.64 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
9 months 2015 |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
18,977 | 1,257 | 1,152 | 53 | | 21,439 | ||||||||||||||||||
Total divestments |
1,813 | 2,652 | 800 | 22 | | 5,287 | ||||||||||||||||||
Cash flow from operating activities |
8,558 | 4,305 | 2,034 | 211 | | 15,108 |
26
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
3rd quarter 2016 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
37,528 | (116 | ) | 37,412 | ||||||||
Excise taxes |
(5,587 | ) | | (5,587 | ) | |||||||
Revenues from sales |
31,941 | (116 | ) | 31,825 | ||||||||
Purchases, net of inventory variation |
(21,176 | ) | (47 | ) | (21,223 | ) | ||||||
Other operating expenses |
(5,452 | ) | (17 | ) | (5,469 | ) | ||||||
Exploration costs |
(274 | ) | | (274 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,936 | ) | | (2,936 | ) | |||||||
Other income |
284 | 6 | 290 | |||||||||
Other expense |
(155 | ) | (196 | ) | (351 | ) | ||||||
Financial interest on debt |
(262 | ) | (6 | ) | (268 | ) | ||||||
Financial income and expense from cash & cash equivalents |
(5 | ) | | (5 | ) | |||||||
Cost of net debt |
(267 | ) | (6 | ) | (273 | ) | ||||||
Other financial income |
265 | | 265 | |||||||||
Other financial expense |
(154 | ) | | (154 | ) | |||||||
Equity in net income (loss) of affiliates |
515 | 16 | 531 | |||||||||
Income taxes |
(446 | ) | 195 | (251 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,145 | (165 | ) | 1,980 | ||||||||
Group share |
2,070 | (116 | ) | 1,954 | ||||||||
Non-controlling interests |
75 | (49 | ) | 26 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
3rd quarter 2015 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
40,590 | (10 | ) | 40,580 | ||||||||
Excise taxes |
(5,683 | ) | | (5,683 | ) | |||||||
Revenues from sales |
34,907 | (10 | ) | 34,897 | ||||||||
Purchases, net of inventory variation |
(23,113 | ) | (1,127 | ) | (24,240 | ) | ||||||
Other operating expenses |
(5,790 | ) | (4 | ) | (5,794 | ) | ||||||
Exploration costs |
(275 | ) | | (275 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,695 | ) | (650 | ) | (3,345 | ) | ||||||
Other income |
415 | 15 | 430 | |||||||||
Other expense |
(123 | ) | (318 | ) | (441 | ) | ||||||
Financial interest on debt |
(233 | ) | | (233 | ) | |||||||
Financial income and expense from cash & cash equivalents |
10 | | 10 | |||||||||
Cost of net debt |
(223 | ) | | (223 | ) | |||||||
Other financial income |
185 | | 185 | |||||||||
Other financial expense |
(154 | ) | | (154 | ) | |||||||
Equity in net income (loss) of affiliates |
493 | (7 | ) | 486 | ||||||||
Income taxes |
(872 | ) | 411 | (461 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,755 | (1,690 | ) | 1,065 | ||||||||
Group share |
2,756 | (1,677 | ) | 1,079 | ||||||||
Non-controlling interests |
(1 | ) | (13 | ) | (14 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
27
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
9 months 2016 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
107,716 | (248 | ) | 107,468 | ||||||||
Excise taxes |
(16,410 | ) | | (16,410 | ) | |||||||
Revenues from sales |
91,306 | (248 | ) | 91,058 | ||||||||
Purchases, net of inventory variation |
(59,663 | ) | 253 | (59,410 | ) | |||||||
Other operating expenses |
(17,128 | ) | (383 | ) | (17,511 | ) | ||||||
Exploration costs |
(654 | ) | (350 | ) | (1,004 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,384 | ) | (200 | ) | (8,584 | ) | ||||||
Other income |
627 | 335 | 962 | |||||||||
Other expense |
(274 | ) | (280 | ) | (554 | ) | ||||||
Financial interest on debt |
(792 | ) | (17 | ) | (809 | ) | ||||||
Financial income and expense from cash & cash equivalents |
6 | | 6 | |||||||||
Cost of net debt |
(786 | ) | (17 | ) | (803 | ) | ||||||
Other financial income |
768 | | 768 | |||||||||
Other financial expense |
(475 | ) | | (475 | ) | |||||||
Equity in net income (loss) of affiliates |
1,811 | (6 | ) | 1,805 | ||||||||
Income taxes |
(1,145 | ) | 612 | (533 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
6,003 | (284 | ) | 5,719 | ||||||||
Group share |
5,880 | (232 | ) | 5,648 | ||||||||
Non-controlling interests |
123 | (52 | ) | 71 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
9 months 2015 (M$) |
Adjusted | Adjustments (a) | Consolidated statement of income |
|||||||||
Sales |
127,922 | (314 | ) | 127,608 | ||||||||
Excise taxes |
(16,479 | ) | | (16,479 | ) | |||||||
Revenues from sales |
111,443 | (314 | ) | 111,129 | ||||||||
Purchases, net of inventory variation |
(74,148 | ) | (649 | ) | (74,797 | ) | ||||||
Other operating expenses |
(17,921 | ) | (176 | ) | (18,097 | ) | ||||||
Exploration costs |
(1,177 | ) | (87 | ) | (1,264 | ) | ||||||
Financial income & expense from marketable securities & cash equivalents |
(8,104 | ) | (1,944 | ) | (10,048 | ) | ||||||
Other income |
1,299 | 1,474 | 2,773 | |||||||||
Other expense |
(358 | ) | (921 | ) | (1,279 | ) | ||||||
Financial interest on debt |
(726 | ) | | (726 | ) | |||||||
Financial income and expense from cash & cash equivalents |
69 | | 69 | |||||||||
Cost of net debt |
(657 | ) | | (657 | ) | |||||||
Other financial income |
582 | | 582 | |||||||||
Other financial expense |
(483 | ) | | (483 | ) | |||||||
Equity in net income (loss) of affiliates |
1,804 | (43 | ) | 1,761 | ||||||||
Income taxes |
(3,786 | ) | 752 | (3,034 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
8,494 | (1,908 | ) | 6,586 | ||||||||
Group share |
8,443 | (1,730 | ) | 6,713 | ||||||||
Non-controlling interests |
51 | (178 | ) | (127 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
28
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS OF 2016
(unaudited)
1) Accounting policies
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of September 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 September 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 September 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
Ø | 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 has acquired all of the shares in Lampiris. All regulatory approvals being obtained, the transaction was finalized on September 29, 2016. |
| In August 2016, TOTAL finalized the transfer to Zarubezhneft of a 20% stake and the operatorship in Kharyaga, Russia. |
| In September 2016, TOTAL exercised its preemption rights to acquire Chesapeakes 75% interests in the Barnett Shale operating area located in North Texas, in which it already held a 25% interest since December 2009. |
29
Ø | 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. |
| 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. |
| In July 2016, TOTAL has acquired via a friendly tender offer a majority 90.14% interest in SAFT Groupe, a world leading designer and manufacturer of advanced technology batteries for the industry. In August 2016, following the reopening of the public tender offer, TOTAL increased its interest to 100%. |
The acquisition cost amounts to 959 million ($1,070 million), for a net book value of the assets and liabilities acquired at 100% of 452 million ($502 million). In accordance with IFRS 3, TOTAL is currently assessing the fair value of identifiable acquired assets, liabilities and contingent liabilities.
The acquisition was carried out in two steps :
ü | a first step where TOTAL obtained control over SAFT by the acquisition of 90.14% of its shares for an amount of 856 million and recorded on this operation a preliminary partial goodwill of 450 million ($500 million). This goodwill must be allocated within twelve months from the acquisition date. |
ü | a second step where TOTAL acquired the remaining 9.86% for an amount of 103 million, treated as a transaction with non-controlling interests. |
The net book value by main categories of assets and liabilities is as follows:
($ million) |
Net book value at the acquisition date |
|||
Goodwill |
139 | |||
Intangible assets |
206 | |||
Tangible assets |
236 | |||
Net debt |
(92 | ) | ||
Other capital employed |
13 | |||
|
|
|||
Net assets of SAFT (100%) |
502 | |||
|
|
30
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.
31
ADJUSTMENTS TO OPERATING INCOME
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
3rd quarter 2016 |
Inventory valuation effect | | 4 | (51) | | (47) | ||||||||||||||||
Effect of changes in fair value | (18) | | | | (18) | |||||||||||||||||
Restructuring charges | | | (15) | | (15) | |||||||||||||||||
Asset impairment charges | | | | | | |||||||||||||||||
Other items | (98) | | (2) | | (100) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(116) | 4 | (68) | | (180) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2015 |
Inventory valuation effect | | (934) | (193) | | (1,127) | ||||||||||||||||
Effect of changes in fair value | (10) | | | | (10) | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (650) | | | | (650) | |||||||||||||||||
Other items | (9) | 11 | (6) | | (4) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(669) | (923) | (199) | | (1,791) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2016 |
Inventory valuation effect | | 315 | (10) | | 305 | ||||||||||||||||
Effect of changes in fair value | (21) | | | | (21) | |||||||||||||||||
Restructuring charges | (19) | | (15) | | (34) | |||||||||||||||||
Asset impairment charges | (200) | | | | (200) | |||||||||||||||||
Other items | (899) | (67) | (12) | | (978) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,139) | 248 | (37) | | (928) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2015 |
Inventory valuation effect | | (500) | (149) | | (649) | ||||||||||||||||
Effect of changes in fair value | (16) | | | | (16) | |||||||||||||||||
Restructuring charges | | | | | | |||||||||||||||||
Asset impairment charges | (1,890) | (31) | (23) | | (1,944) | |||||||||||||||||
Other items | (449) | (106) | (6) | | (561) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(2,355) | (637) | (178) | | (3,170) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
32
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Total | |||||||||||||||||
3rd quarter 2016 |
Inventory valuation effect | | 22 | (27) | | (5) | ||||||||||||||||
Effect of changes in fair value | (13) | | | | (13) | |||||||||||||||||
Restructuring charges | | | (18) | | (18) | |||||||||||||||||
Asset impairment charges | | | (33) | | (33) | |||||||||||||||||
Gains (losses) on disposals of assets | (32) | | | | (32) | |||||||||||||||||
Other items | 6 | (12) | (9) | | (15) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(39) | 10 | (87) | | (116) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2015 |
Inventory valuation effect | | (631) | (129) | | (760) | ||||||||||||||||
Effect of changes in fair value | (5) | | | | (5) | |||||||||||||||||
Restructuring charges | | (12) | | | (12) | |||||||||||||||||
Asset impairment charges | (650) | | | | (650) | |||||||||||||||||
Gains (losses) on disposals of assets | (98) | | | | (98) | |||||||||||||||||
Other items | (9) | | (143) | | (152) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(762) | (643) | (272) | | (1,677) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2016 |
Inventory valuation effect | | 219 | (2) | | 217 | ||||||||||||||||
Effect of changes in fair value | (15) | | | | (15) | |||||||||||||||||
Restructuring charges | (4) | | (18) | | (22) | |||||||||||||||||
Asset impairment charges | (129) | | (82) | | (211) | |||||||||||||||||
Gains (losses) on disposals of assets | 326 | | (14) | | 312 | |||||||||||||||||
Other items | (411) | (68) | (34) | | (513) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(233) | 151 | (150) | | (232) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2015 |
Inventory valuation effect | | (343) | (89) | | (432) | ||||||||||||||||
Effect of changes in fair value | (9) | | | | (9) | |||||||||||||||||
Restructuring charges | | (38) | (5) | | (43) | |||||||||||||||||
Asset impairment charges | (1,936) | (31) | (37) | | (2,004) | |||||||||||||||||
Gains (losses) on disposals of assets | 201 | 670 | 360 | | 1,231 | |||||||||||||||||
Other items | (149) | (135) | (189) | | (473) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(1,893) | 123 | 40 | | (1,730) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
During the first nine months of 2016, the Group recognized under the headings Other items and Asset impairment charges, in the Upstream segment, charges related to onerous contracts in the United States of America and charges related to the security situation in Yemen ($(549) million in operating income, $(391) million in net income, Group share), the impact on the deferred tax position of the removal of the Petroleum Revenue Tax and the decrease of the Supplementary Charge Tax in the United Kingdom ($206 million in net income, Group share) and, charges related to the cessation of the Group activities in Kurdistan ($(550) million in operating income, $(355) million in net income, Group share).
In addition, the heading Gains (losses) on disposals of assets includes the sale of TOTALs interests in the FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal in the United Kingdom.
33
4) Shareholders equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of September 30, 2016, TOTAL S.A. holds 10,589,372 of its own shares, representing 0.42% of its share capital, detailed as follows:
| 10,556,407 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 September 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
A first interim dividend for the fiscal year 2016 of 0.61 per share, decided by the Board of Directors on April 26, 2016 has been paid on October 14, 2016 (the ex-dividend date was September 27, 2016). The number of shares issued in lieu of the cash dividend was based on the dividend amount divided by 38.00 per share, equal to 90% of the average Euronext Paris opening price of the shares for the 20 trading days preceding the Board of Directors meeting on September 21, 2016 reduced by the amount of the first interim dividend. On October 14, 2016, 25,329,951 shares have been issued at a price of 38.00 per share.
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).
A third interim dividend for the fiscal year 2016 of 0.61 per share, decided by the Board of Directors on October 27, 2016, would be paid on April 6, 2017 (the ex-dividend date will be March 20, 2017).
Issuance of perpetual subordinated notes
During the first nine months of 2016, the Group issued a perpetual deeply subordinated note 3.875% callable after 6 years on May 18, 2022 (1,750 million).
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 0.71 per share for the 3rd quarter 2016 (0.77 per share for the 2nd quarter 2016 and 0.40 per share for the 3rd quarter 2015). Diluted earnings per share calculated using the same method amounted to 0.71 per share for the 3rd quarter 2016 (0.76 per share for the 2nd quarter 2016 and 0.40 per share for the 3rd quarter 2015).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
34
Other comprehensive income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M$) |
9 months 2016 | 9 months 2015 | ||||||||||||||
Actuarial gains and losses |
(576 | ) | 199 | |||||||||||||
Tax effect |
119 | (138 | ) | |||||||||||||
Currency translation adjustment generated by the parent company |
1,967 | (5,097 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items not potentially reclassifiable to profit and loss |
1,510 | (5,036 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Currency translation adjustment |
(1,717 | ) | 1,852 | |||||||||||||
- unrealized gain/(loss) of the period |
(1,488 | ) | 2,389 | |||||||||||||
- less gain/(loss) included in net income |
229 | 537 | ||||||||||||||
Available for sale financial assets |
1 | (7 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
1 | | ||||||||||||||
- less gain/(loss) included in net income |
| 7 | ||||||||||||||
Cash flow hedge |
145 | (189 | ) | |||||||||||||
- unrealized gain/(loss) of the period |
248 | (355 | ) | |||||||||||||
- less gain/(loss) included in net income |
103 | (166 | ) | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
477 | 215 | ||||||||||||||
- unrealized gain/(loss) of the period |
494 | 215 | ||||||||||||||
- less gain/(loss) included in net income |
17 | | ||||||||||||||
Other |
| 1 | ||||||||||||||
Tax effect |
(44 | ) | 60 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Items potentially reclassifiable to profit and loss |
(1,138 | ) | 1,932 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net amount |
372 | (3,104 | ) | |||||||||||||
|
|
|
|
|
|
|
|
35
Tax effects relating to each component of other comprehensive income are as follows:
9 months 2016 | 9 months 2015 | |||||||||||||||||||||||
(M$) |
Pre-tax amount |
Tax effect | Net amount | Pre-tax amount |
Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses |
(576 | ) | 119 | (457 | ) | 199 | (138 | ) | 61 | |||||||||||||||
Currency translation adjustment generated by the parent company |
1,967 | | 1,967 | (5,097 | ) | | (5,097 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items not potentially reclassifiable to profit and loss |
1,391 | 119 | 1,510 | (4,898 | ) | (138 | ) | (5,036 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment |
(1,717 | ) | | (1,717 | ) | 1,852 | | 1,852 | ||||||||||||||||
Available for sale financial assets |
1 | | 1 | (7 | ) | 1 | (6 | ) | ||||||||||||||||
Cash flow hedge |
145 | (44 | ) | 101 | (189 | ) | 59 | (130 | ) | |||||||||||||||
Share of other comprehensive income of equity affiliates, net amount |
477 | | 477 | 215 | | 215 | ||||||||||||||||||
Other |
| | | 1 | | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Items potentially reclassifiable to profit and loss |
(1,094 | ) | (44 | ) | (1,138 | ) | 1,872 | 60 | 1,932 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income |
297 | 75 | 372 | (3,026 | ) | (78 | ) | (3,104 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
5) Financial debt
The Group issued the following bonds during the first nine months of 2016:
- | Bond 0.250% 2016-2023 (EUR 1,250 million) |
- | Bond 0.750% 2016-2028 (EUR 1,500 million) |
The Group reimbursed bonds during the first nine months of 2016:
- | Bond 6.500% 2011-2016 (AUD 150 million) |
- | Bond 2.300% 2010-2016 (USD 1,000 million) |
- | Bond 0.750% 2012-2016 (USD 750 million) |
- | Bond US Libor 3 months + 38 bp 2013-2016 (USD 1,000 million) |
- | Bond 2.375% 2006-2016 (CHF 500 million) |
- | Bond 2.375% 2009-2016 (CHF 150 million) |
- | Bond 2.250% 2012-2016 (NOK 600 million) |
- | Bond 4.000% 2011-2016 (NOK 600 million) |
- | Bond 3.625% 2011-2016 (SEK 600 million) |
- | Bond 1.000% 2013-2016 (USD 500 million) |
In the context of its active cash management, the Group may temporarily increase its current borrowings, particularly in the form of treasury bills and commercial paper. The changes in current borrowings, cash and cash equivalents and current financial assets resulting from this cash management in the quarterly financial statements are not necessarily representative of a longer-term position.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments. There were no major changes concerning transactions with related parties during the first nine months of 2016.
36
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 $22.4 billion. For the same reasons as those successfully adjudicated by Elf Aquitaine against Blue Rapid and the Russian Olympic Committee, the Group considers this claim to be unfounded as a matter of law and fact.
The Group has lodged a criminal complaint to denounce the fraudulent claim of which the Group believes it is a victim and, has taken and reserved its rights to take other actions and measures to defend its interests.
FERC
The Office of Enforcement of the U.S. Federal Energy Regulatory Commission (FERC) began in 2015 an investigation in connection with the natural gas trading activities of Total Gas & Power North America, Inc. (TGPNA), a U.S. subsidiary of the Group. The investigation covered transactions made by TGPNA between June 2009 and June 2012 on the natural gas market. TGPNA received a Notice of Alleged Violations from FERC on September 21, 2015. On April 28, 2016, FERC issued an order to show cause to TGPNA and two of its former employees, and to TOTAL S.A. and Total Gas & Power Ltd., regarding the same facts. A class action has been launched to seek damages from these three companies.
TGPNA has cooperated in the investigation with the U.S. authorities and contests the claims brought against it.
Yemen
Due to the further deterioration in the security situation in the vicinity of its Balhaf site, the company Yemen LNG, in which the Group holds a 39.62% stake, decided to stop its commercial LNG production and export activities. The plant is in a preservation mode and no expatriate personnel remain on site. As a consequence of this situation, Yemen LNG declared Force Majeure to its various stakeholders in early April 2015.
37
8) Information by business segment
9 months 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,208 | 46,555 | 50,702 | 3 | | 107,468 | ||||||||||||||||||
Intersegment sales |
12,122 | 14,760 | 487 | 225 | (27,594 | ) | | |||||||||||||||||
Excise taxes |
| (2,760 | ) | (13,650 | ) | | | (16,410 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
22,330 | 58,555 | 37,539 | 228 | (27,594 | ) | 91,058 | |||||||||||||||||
Operating expenses |
(14,708 | ) | (54,404 | ) | (35,697 | ) | (710 | ) | 27,594 | (77,925 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(7,258 | ) | (750 | ) | (549 | ) | (27 | ) | | (8,584 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
364 | 3,401 | 1,293 | (509 | ) | | 4,549 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,452 | 664 | 105 | 285 | | 2,506 | ||||||||||||||||||
Tax on net operating income |
453 | (851 | ) | (408 | ) | 87 | | (719 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
2,269 | 3,214 | 990 | (137 | ) | | 6,336 | |||||||||||||||||
Net cost of net debt |
(617 | ) | ||||||||||||||||||||||
Non-controlling interests |
(71 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
5,648 | |||||||||||||||||||||||
9 months 2016 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(248 | ) | | | | | (248 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(248 | ) | | | | | (248 | ) | ||||||||||||||||
Operating expenses |
(691 | ) | 248 | (37 | ) | | | (480 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(200 | ) | | | | | (200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (b) |
(1,139 | ) | 248 | (37 | ) | | | (928 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
206 | (11 | ) | (146 | ) | | | 49 | ||||||||||||||||
Tax on net operating income |
700 | (86 | ) | (2 | ) | | | 612 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income (b) |
(233 | ) | 151 | (185 | ) | | | (267 | ) | |||||||||||||||
Net cost of net debt |
(17 | ) | ||||||||||||||||||||||
Non-controlling interests |
52 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(232 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| 315 | (10 | ) | | |||||||||||||||||||
- On net operating income |
| 219 | 1 | |
38
9 months 2016 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
10,456 | 46,555 | 50,702 | 3 | | 107,716 | ||||||||||||||||||
Intersegment sales |
12,122 | 14,760 | 487 | 225 | (27,594 | ) | | |||||||||||||||||
Excise taxes |
| (2,760 | ) | (13,650 | ) | | | (16,410 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
22,578 | 58,555 | 37,539 | 228 | (27,594 | ) | 91,306 | |||||||||||||||||
Operating expenses |
(14,017 | ) | (54,652 | ) | (35,660 | ) | (710 | ) | 27,594 | (77,445 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(7,058 | ) | (750 | ) | (549 | ) | (27 | ) | | (8,384 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
1,503 | 3,153 | 1,330 | (509 | ) | | 5,477 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,246 | 675 | 251 | 285 | | 2,457 | ||||||||||||||||||
Tax on net operating income |
(247 | ) | (765 | ) | (406 | ) | 87 | | (1,331 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
2,502 | 3,063 | 1,175 | (137 | ) | | 6,603 | |||||||||||||||||
Net cost of net debt |
(600 | ) | ||||||||||||||||||||||
Non-controlling interests |
(123 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
5,880 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
2.42 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
9 months 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
11,424 | 1,289 | 1,904 | 58 | | 14,675 | ||||||||||||||||||
Total divestments |
1,492 | 73 | 373 | 12 | | 1,950 | ||||||||||||||||||
Cash flow from operating activities |
5,476 | 2,837 | 720 | 470 | | 9,503 |
39
9 months 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,383 | 54,654 | 59,561 | 10 | | 127,608 | ||||||||||||||||||
Intersegment sales |
13,585 | 21,262 | 696 | 159 | (35,702 | ) | | |||||||||||||||||
Excise taxes |
| (3,034 | ) | (13,445 | ) | | | (16,479 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
26,968 | 72,882 | 46,812 | 169 | (35,702 | ) | 111,129 | |||||||||||||||||
Operating expenses |
(16,135 | ) | (68,068 | ) | (45,022 | ) | (635 | ) | 35,702 | (94,158 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,668 | ) | (799 | ) | (561 | ) | (20 | ) | | (10,048 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
2,165 | 4,015 | 1,229 | (486 | ) | | 6,923 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,448 | 1,021 | 394 | 491 | | 3,354 | ||||||||||||||||||
Tax on net operating income |
(1,622 | ) | (1,031 | ) | (450 | ) | (47 | ) | | (3,150 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
1,991 | 4,005 | 1,173 | (42 | ) | | 7,127 | |||||||||||||||||
Net cost of net debt |
(541 | ) | ||||||||||||||||||||||
Non-controlling interests |
127 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
6,713 | |||||||||||||||||||||||
9 months 2015 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(314 | ) | | | | | (314 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(314 | ) | | | | | (314 | ) | ||||||||||||||||
Operating expenses |
(151 | ) | (606 | ) | (155 | ) | | | (912 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(1,890 | ) | (31 | ) | (23 | ) | | | (1,944 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(2,355 | ) | (637 | ) | (178 | ) | | | (3,170 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
(206 | ) | 576 | 140 | | | 510 | |||||||||||||||||
Tax on net operating income |
526 | 184 | 42 | | | 752 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(2,035 | ) | 123 | 4 | | | (1,908 | ) | ||||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
178 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(1,730 | ) | ||||||||||||||||||||||
(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 |
| (500 | ) | (149 | ) | | ||||||||||||||||||
- On net operating income |
| (343 | ) | (101 | ) | |
40
9 months 2015 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
13,697 | 54,654 | 59,561 | 10 | | 127,922 | ||||||||||||||||||
Intersegment sales |
13,585 | 21,262 | 696 | 159 | (35,702 | ) | | |||||||||||||||||
Excise taxes |
| (3,034 | ) | (13,445 | ) | | | (16,479 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
27,282 | 72,882 | 46,812 | 169 | (35,702 | ) | 111,443 | |||||||||||||||||
Operating expenses |
(15,984 | ) | (67,462 | ) | (44,867 | ) | (635 | ) | 35,702 | (93,246 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(6,778 | ) | (768 | ) | (538 | ) | (20 | ) | | (8,104 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
4,520 | 4,652 | 1,407 | (486 | ) | | 10,093 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
1,654 | 445 | 254 | 491 | | 2,844 | ||||||||||||||||||
Tax on net operating income |
(2,148 | ) | (1,215 | ) | (492 | ) | (47 | ) | | (3,902 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
4,026 | 3,882 | 1,169 | (42 | ) | | 9,035 | |||||||||||||||||
Net cost of net debt |
(541 | ) | ||||||||||||||||||||||
Non-controlling interests |
(51 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
8,443 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
3.64 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
9 months 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
18,977 | 1,257 | 1,152 | 53 | | 21,439 | ||||||||||||||||||
Total divestments |
1,813 | 2,652 | 800 | 22 | | 5,287 | ||||||||||||||||||
Cash flow from operating activities |
8,558 | 4,305 | 2,034 | 211 | | 15,108 |
41
3rd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,398 | 16,050 | 17,964 | | | 37,412 | ||||||||||||||||||
Intersegment sales |
4,701 | 5,072 | 147 | 74 | (9,994 | ) | | |||||||||||||||||
Excise taxes |
| (875 | ) | (4,712 | ) | | | (5,587 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
8,099 | 20,247 | 13,399 | 74 | (9,994 | ) | 31,825 | |||||||||||||||||
Operating expenses |
(4,954 | ) | (19,101 | ) | (12,708 | ) | (197 | ) | 9,994 | (26,966 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,480 | ) | (251 | ) | (194 | ) | (11 | ) | | (2,936 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
665 | 895 | 497 | (134 | ) | | 1,923 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
213 | 227 | 57 | 84 | | 581 | ||||||||||||||||||
Tax on net operating income |
(40 | ) | (196 | ) | (138 | ) | 58 | | (316 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
838 | 926 | 416 | 8 | | 2,188 | ||||||||||||||||||
Net cost of net debt |
(208 | ) | ||||||||||||||||||||||
Non-controlling interests |
(26 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,954 | |||||||||||||||||||||||
3rd quarter 2016 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(116 | ) | | | | | (116 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(116 | ) | | | | | (116 | ) | ||||||||||||||||
Operating expenses |
| 4 | (68 | ) | | | (64 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(116 | ) | 4 | (68 | ) | | | (180 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items |
(123 | ) | 16 | (67 | ) | | | (174 | ) | |||||||||||||||
Tax on net operating income |
200 | (11 | ) | 6 | | | 195 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(39 | ) | 9 | (129 | ) | | | (159 | ) | |||||||||||||||
Net cost of net debt |
(6 | ) | ||||||||||||||||||||||
Non-controlling interests |
49 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(116 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| 4 | (51 | ) | | |||||||||||||||||||
- On net operating income |
| 21 | (33 | ) | |
42
3rd quarter 2016 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,514 | 16,050 | 17,964 | | | 37,528 | ||||||||||||||||||
Intersegment sales |
4,701 | 5,072 | 147 | 74 | (9,994 | ) | | |||||||||||||||||
Excise taxes |
| (875 | ) | (4,712 | ) | | | (5,587 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
8,215 | 20,247 | 13,399 | 74 | (9,994 | ) | 31,941 | |||||||||||||||||
Operating expenses |
(4,954 | ) | (19,105 | ) | (12,640 | ) | (197 | ) | 9,994 | (26,902 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,480 | ) | (251 | ) | (194 | ) | (11 | ) | | (2,936 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
781 | 891 | 565 | (134 | ) | | 2,103 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
336 | 211 | 124 | 84 | | 755 | ||||||||||||||||||
Tax on net operating income |
(240 | ) | (185 | ) | (144 | ) | 58 | | (511 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
877 | 917 | 545 | 8 | | 2,347 | ||||||||||||||||||
Net cost of net debt |
(202 | ) | ||||||||||||||||||||||
Non-controlling interests |
(75 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,070 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
0.84 |
(a) | Except for earnings per share. |
3rd quarter 2016 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
3,648 | 550 | 1,175 | (172 | ) | | 5,201 | |||||||||||||||||
Total divestments |
129 | 21 | 40 | 2 | | 192 | ||||||||||||||||||
Cash flow from operating activities |
2,380 | 1,698 | 495 | 167 | | 4,740 |
43
3rd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,660 | 17,397 | 19,522 | 1 | | 40,580 | ||||||||||||||||||
Intersegment sales |
4,280 | 6,912 | 201 | 51 | (11,444 | ) | | |||||||||||||||||
Excise taxes |
| (1,094 | ) | (4,589 | ) | | | (5,683 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,940 | 23,215 | 15,134 | 52 | (11,444 | ) | 34,897 | |||||||||||||||||
Operating expenses |
(4,717 | ) | (22,169 | ) | (14,651 | ) | (216 | ) | 11,444 | (30,309 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,898 | ) | (256 | ) | (185 | ) | (6 | ) | | (3,345 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
325 | 790 | 298 | (170 | ) | | 1,243 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
360 | 152 | (29 | ) | 23 | | 506 | |||||||||||||||||
Tax on net operating income |
(345 | ) | (152 | ) | (126 | ) | 128 | | (495 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income |
340 | 790 | 143 | (19 | ) | | 1,254 | |||||||||||||||||
Net cost of net debt |
(189 | ) | ||||||||||||||||||||||
Non-controlling interests |
14 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
1,079 | |||||||||||||||||||||||
3rd quarter 2015 (adjustments)(a) (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
(10 | ) | | | | | (10 | ) | ||||||||||||||||
Intersegment sales |
| | | | | | ||||||||||||||||||
Excise taxes |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
(10 | ) | | | | | (10 | ) | ||||||||||||||||
Operating expenses |
(9 | ) | (923 | ) | (199 | ) | | | (1,131 | ) | ||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(650 | ) | | | | | (650 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income(b) |
(669 | ) | (923 | ) | (199 | ) | | | (1,791 | ) | ||||||||||||||
Equity in net income (loss) of affiliates and other items |
(151 | ) | (14 | ) | (145 | ) | | | (310 | ) | ||||||||||||||
Tax on net operating income |
53 | 294 | 64 | | | 411 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net operating income(b) |
(767 | ) | (643 | ) | (280 | ) | | | (1,690 | ) | ||||||||||||||
Net cost of net debt |
| |||||||||||||||||||||||
Non-controlling interests |
13 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
(1,677 | ) | ||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||
- On operating income |
| (934 | ) | (193 | ) | | ||||||||||||||||||
- On net operating income |
| (631 | ) | (139 | ) | |
44
3rd quarter 2015 (adjusted) (M$)(a) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Non-Group sales |
3,670 | 17,397 | 19,522 | 1 | | 40,590 | ||||||||||||||||||
Intersegment sales |
4,280 | 6,912 | 201 | 51 | (11,444 | ) | | |||||||||||||||||
Excise taxes |
| (1,094 | ) | (4,589 | ) | | | (5,683 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,950 | 23,215 | 15,134 | 52 | (11,444 | ) | 34,907 | |||||||||||||||||
Operating expenses |
(4,708 | ) | (21,246 | ) | (14,452 | ) | (216 | ) | 11,444 | (29,178 | ) | |||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,248 | ) | (256 | ) | (185 | ) | (6 | ) | | (2,695 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income |
994 | 1,713 | 497 | (170 | ) | | 3,034 | |||||||||||||||||
Equity in net income (loss) of affiliates and other items |
511 | 166 | 116 | 23 | | 816 | ||||||||||||||||||
Tax on net operating income |
(398 | ) | (446 | ) | (190 | ) | 128 | | (906 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net operating income |
1,107 | 1,433 | 423 | (19 | ) | | 2,944 | |||||||||||||||||
Net cost of net debt |
(189 | ) | ||||||||||||||||||||||
Non-controlling interests |
1 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income |
2,756 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted fully-diluted earnings per share ($) |
1.17 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Except for earnings per share. |
3rd quarter 2015 (M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
Total expenditures |
5,173 | 358 | 501 | 8 | | 6,040 | ||||||||||||||||||
Total divestments |
272 | 12 | 121 | 5 | | 410 | ||||||||||||||||||
Cash flow from operating activities |
2,320 | 2,291 | 1,011 | 367 | | 5,989 |
45
9) Reconciliation of the information by business segment with consolidated financial statements
9 months 2016 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
107,716 | (248 | ) | 107,468 | ||||||||
Excise taxes |
(16,410 | ) | | (16,410 | ) | |||||||
Revenues from sales |
91,306 | (248 | ) | 91,058 | ||||||||
Purchases net of inventory variation |
(59,663 | ) | 253 | (59,410 | ) | |||||||
Other operating expenses |
(17,128 | ) | (383 | ) | (17,511 | ) | ||||||
Exploration costs |
(654 | ) | (350 | ) | (1,004 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,384 | ) | (200 | ) | (8,584 | ) | ||||||
Other income |
627 | 335 | 962 | |||||||||
Other expense |
(274 | ) | (280 | ) | (554 | ) | ||||||
Financial interest on debt |
(792 | ) | (17 | ) | (809 | ) | ||||||
Financial income from marketable securities & cash equivalents |
6 | | 6 | |||||||||
Cost of net debt |
(786 | ) | (17 | ) | (803 | ) | ||||||
Other financial income |
768 | | 768 | |||||||||
Other financial expense |
(475 | ) | | (475 | ) | |||||||
Equity in net income (loss) of affiliates |
1,811 | (6 | ) | 1,805 | ||||||||
Income taxes |
(1,145 | ) | 612 | (533 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
6,003 | (284 | ) | 5,719 | ||||||||
Group share |
5,880 | (232 | ) | 5,648 | ||||||||
Non-controlling interests |
123 | (52 | ) | 71 | ||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
|
| |||||||||||
9 months 2015 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
127,922 | (314 | ) | 127,608 | ||||||||
Excise taxes |
(16,479 | ) | | (16,479 | ) | |||||||
Revenues from sales |
111,443 | (314 | ) | 111,129 | ||||||||
Purchases net of inventory variation |
(74,148 | ) | (649 | ) | (74,797 | ) | ||||||
Other operating expenses |
(17,921 | ) | (176 | ) | (18,097 | ) | ||||||
Exploration costs |
(1,177 | ) | (87 | ) | (1,264 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(8,104 | ) | (1,944 | ) | (10,048 | ) | ||||||
Other income |
1,299 | 1,474 | 2,773 | |||||||||
Other expense |
(358 | ) | (921 | ) | (1,279 | ) | ||||||
Financial interest on debt |
(726 | ) | | (726 | ) | |||||||
Financial income from marketable securities & cash equivalents |
69 | | 69 | |||||||||
Cost of net debt |
(657 | ) | | (657 | ) | |||||||
Other financial income |
582 | | 582 | |||||||||
Other financial expense |
(483 | ) | | (483 | ) | |||||||
Equity in net income (loss) of affiliates |
1,804 | (43 | ) | 1,761 | ||||||||
Income taxes |
(3,786 | ) | 752 | (3,034 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
8,494 | (1,908 | ) | 6,586 | ||||||||
Group share |
8,443 | (1,730 | ) | 6,713 | ||||||||
Non-controlling interests |
51 | (178 | ) | (127 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
46
3rd quarter 2016 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
37,528 | (116 | ) | 37,412 | ||||||||
Excise taxes |
(5,587 | ) | | (5,587 | ) | |||||||
Revenues from sales |
31,941 | (116 | ) | 31,825 | ||||||||
Purchases net of inventory variation |
(21,176 | ) | (47 | ) | (21,223 | ) | ||||||
Other operating expenses |
(5,452 | ) | (17 | ) | (5,469 | ) | ||||||
Exploration costs |
(274 | ) | | (274 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,936 | ) | | (2,936 | ) | |||||||
Other income |
284 | 6 | 290 | |||||||||
Other expense |
(155 | ) | (196 | ) | (351 | ) | ||||||
Financial interest on debt |
(262 | ) | (6 | ) | (268 | ) | ||||||
Financial income from marketable securities & cash equivalents |
(5 | ) | | (5 | ) | |||||||
Cost of net debt |
(267 | ) | (6 | ) | (273 | ) | ||||||
Other financial income |
265 | | 265 | |||||||||
Other financial expense |
(154 | ) | | (154 | ) | |||||||
Equity in net income (loss) of affiliates |
515 | 16 | 531 | |||||||||
Income taxes |
(446 | ) | 195 | (251 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,145 | (165 | ) | 1,980 | ||||||||
Group share |
2,070 | (116 | ) | 1,954 | ||||||||
Non-controlling interests |
75 | (49 | ) | 26 | ||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
|
| |||||||||||
3rd quarter 2015 (M$) |
Adjusted | Adjustments(a) | Consolidated statement of income |
|||||||||
Sales |
40,590 | (10 | ) | 40,580 | ||||||||
Excise taxes |
(5,683 | ) | | (5,683 | ) | |||||||
Revenues from sales |
34,907 | (10 | ) | 34,897 | ||||||||
Purchases net of inventory variation |
(23,113 | ) | (1,127 | ) | (24,240 | ) | ||||||
Other operating expenses |
(5,790 | ) | (4 | ) | (5,794 | ) | ||||||
Exploration costs |
(275 | ) | | (275 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests |
(2,695 | ) | (650 | ) | (3,345 | ) | ||||||
Other income |
415 | 15 | 430 | |||||||||
Other expense |
(123 | ) | (318 | ) | (441 | ) | ||||||
Financial interest on debt |
(233 | ) | | (233 | ) | |||||||
Financial income from marketable securities & cash equivalents |
10 | | 10 | |||||||||
Cost of net debt |
(223 | ) | | (223 | ) | |||||||
Other financial income |
185 | | 185 | |||||||||
Other financial expense |
(154 | ) | | (154 | ) | |||||||
Equity in net income (loss) of affiliates |
493 | (7 | ) | 486 | ||||||||
Income taxes |
(872 | ) | 411 | (461 | ) | |||||||
|
|
|
|
|
|
|||||||
Consolidated net income |
2,755 | (1,690 | ) | 1,065 | ||||||||
Group share |
2,756 | (1,677 | ) | 1,079 | ||||||||
Non-controlling interests |
(1 | ) | (13 | ) | (14 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
47
10) Sales by business segment
(M$) |
Upstream | Refining & Chemicals |
Marketing & Services |
Corporate | Intercompany | Total | ||||||||||||||||||
1st quarter 2016 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2016 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2016 |
||||||||||||||||||||||||
Non-Group sales |
3,398 | 16,050 | 17,964 | | | 37,412 | ||||||||||||||||||
Intersegment sales |
4,701 | 5,072 | 147 | 74 | (9,994 | ) | | |||||||||||||||||
Excise taxes |
| (875 | ) | (4,712 | ) | | | (5,587 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
8,099 | 20,247 | 13,399 | 74 | (9,994 | ) | 31,825 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2016 |
||||||||||||||||||||||||
Non-Group sales |
10,208 | 46,555 | 50,702 | 3 | | 107,468 | ||||||||||||||||||
Intersegment sales |
12,122 | 14,760 | 487 | 225 | (27,594 | ) | | |||||||||||||||||
Excise taxes |
| (2,760 | ) | (13,650 | ) | | | (16,410 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
22,330 | 58,555 | 37,539 | 228 | (27,594 | ) | 91,058 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1st quarter 2015 |
||||||||||||||||||||||||
Non-Group sales |
5,225 | 17,464 | 19,620 | 4 | | 42,313 | ||||||||||||||||||
Intersegment sales |
4,384 | 6,967 | 272 | 52 | (11,675 | ) | | |||||||||||||||||
Excise taxes |
| (933 | ) | (4,417 | ) | | | (5,350 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
9,609 | 23,498 | 15,475 | 56 | (11,675 | ) | 36,963 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2nd quarter 2015 |
||||||||||||||||||||||||
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 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3rd quarter 2015 |
||||||||||||||||||||||||
Non-Group sales |
3,660 | 17,397 | 19,522 | 1 | | 40,580 | ||||||||||||||||||
Intersegment sales |
4,280 | 6,912 | 201 | 51 | (11,444 | ) | | |||||||||||||||||
Excise taxes |
| (1,094 | ) | (4,589 | ) | | | (5,683 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
7,940 | 23,215 | 15,134 | 52 | (11,444 | ) | 34,897 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
9 months 2015 |
||||||||||||||||||||||||
Non-Group sales |
13,383 | 54,654 | 59,561 | 10 | | 127,608 | ||||||||||||||||||
Intersegment sales |
13,585 | 21,262 | 696 | 159 | (35,702 | ) | | |||||||||||||||||
Excise taxes |
| (3,034 | ) | (13,445 | ) | | | (16,479 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from sales |
26,968 | 72,882 | 46,812 | 169 | (35,702 | ) | 111,129 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
48
11) Changes in progress in the Group structure
Ø | 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 $1,045 million and liabilities directly associated with the assets classified as held for sale for an amount of $525 million at September 30, 2016. The assets and liabilities concerned mainly include tangible assets for an amount of $342 million, inventories for an amount of $195 million, receivables for an amount of $236 million, non-current liabilities for an amount of $197 million, payables for an amount of $92 million and other creditors and accrued liabilities for an amount of $221 million. |
On October 7, 2016, TOTAL announced the sale of Atotech to the Carlyle Group for an amount of $3.2 billion.
12) Post-closing and other events
| On September 29, 2016, the Group issued perpetual deeply subordinated notes: |
- | Deeply subordinated note 2.708% perpetual maturity callable after 6.6 years (1,000 million), |
- | Deeply subordinated note 3.369% perpetual maturity callable after 10 years (1,500 million). |
The proceeds were paid on October 6, 2016.
49
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL announces its third quarter 2016 interim dividend
The Board of Directors of TOTAL S.A. (including its subsidiaries and affiliates, Total or the Group) met on October 27, 2016, and approved a third quarter 2016 interim dividend of 0.61 per share, unchanged compared to the second quarter of 2016. The record date will be March 17, 2017 and the ex-dividend date will be March 20, 2017.
The Board of Directors will meet on March 15, 2017, to:
| declare the third quarter 2016 interim dividend; |
| offer the option for shareholders to receive the third 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 third quarter 2016 interim dividend; |
| set the period for exercising the option from March 20, 2017 to March 29, 2017, both dates inclusive; and |
| confirm the payment of the dividend as from April 6, 2017. |
American Depositary Receipts (ADRs) will receive the third quarter 2016 interim dividend in dollars based on the then-prevailing exchange rate according to the following timetable:
| ADR ex-dividend date: March 15, 2017; |
| ADR record date: March 17, 2017; and |
| ADR payment date in cash or shares issued in lieu of cash: April 13, 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.
Petrobras and Total form a strategic alliance in Upstream and Downstream
On October 24, 2016, Petrobras and Total announced that Pedro Parente, CEO of Petrobras, and Patrick Pouyanné, Chairman and CEO of Total, have signed, in Rio de Janeiro, a Memorandum of Understanding which sets the general framework for a Strategic Alliance covering Upstream and Downstream activities in Brazil as well as international potential opportunities.
Through this agreement, the companies undertake to join forces in some key areas of mutual interest and to evaluate opportunities in Brazil and abroad to jointly benefit from their internationally recognized expertise on all segments of the oil and gas value chain.
As a first phase of implementation, the companies intend to focus on Upstream and on Gas and Power.
In Upstream, Petrobras will propose Total to partner in projects in Brazil and Total will propose Petrobras to partner in opportunities outside Brazil. This new partnership will allow both companies to combine their world class experience and expertise in deep water development to optimize the production and jointly develop this strategic area of activity in Brazil and in other high potential oil and gas provinces, as well as sharing costs and risks in projects with high investment and complexity.
In Downstream, the companies will be working to develop joint activities in the gas and power generation in Brazil.
The memorandum also states that the cooperation will be extended, in a second phase, to a broader cooperation in Brazil focused on all downstream segments.
1
Currently, Petrobras and Total are jointly participating in 15 consortiums worldwide in exploration and production, nine of which are in Brazil and six abroad. In Brazil, the companies are partners in the development of the giant Libra area which is the first production sharing contract in the Brazilian pre-salt in Santos basin. Outside Brazil, Petrobras and Total are partners on the Chinook field in the US Gulf of Mexico, on the deep-water Akpo field in Nigeria and on the gas fields of San Alberto and San Antonio/Itau in Bolivia, as well as in the Bolivia-Brazil gas pipeline.
Results of the option to receive the first quarter 2016 interim dividend in shares
The Board of Directors of Total met on September 21, 2016, and declared a first quarter 2016 interim dividend of 0.61 per share and offered, under the conditions set by the fourth resolution at the Combined Shareholders Meeting of May 24, 2016, the option for shareholders to receive the first quarter 2016 interim dividend in cash or in new shares of the Company.
The period for exercising the option ran from September 27, 2016 to October 6, 2016. At the end of the option period, 64% of rights were exercised in favor of receiving the payment for the first quarter 2016 interim dividend in shares.
25,329,951 new shares will be issued, representing 1.0% of the Companys share capital on the basis of the share capital as of September 30, 2016. The share price for the new shares to be issued as payment of the first quarter 2016 interim dividend was set at 38.00 on September 21, 2016 (the price was equal to the average opening price on the Euronext Paris for the twenty trading days preceding September 21, 2016, reduced by the amount of the interim dividend, with a 10% discount, rounded up to the nearest cent).
The settlement and delivery of the new shares as well as their admission to trading on Euronext Paris occurred on October 14, 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 first quarter 2016 interim dividend in shares amounted to 552 million paid on October 14, 2016.
Total announces the sale of its specialty chemicals affiliate Atotech to The Carlyle Group for $3.2 billion
On October 7, 2016, Total announced that, in the context of the divestiture process of its specialty chemicals affiliate, Atotech B.V., a global manufacturer of high technology plating solutions, Total has selected the offer from The Carlyle Group (CG:Nasdaq). In the framework of this transaction, Total will receive $3.2 billion.
The proposed transaction is subject to the applicable legally required consultation and notification processes for employee representatives and to approval by the relevant antitrust authorities.
Total Strategy & Outlook presentation
On September 22, 2016, Patrick Pouyanné, Chairman and CEO, presented Totals Strategy & Outlook to the financial community.
Key messages of the presentation included:
Tackling Short Term Challenges
In an environment where oil and gas prices have fallen significantly and remain volatile, Total is focused on being excellent at everything it can control:
| Increasing Opex savings from $3 to $4 billion by 2018. |
| Delivering growth with Capex at a sustainable level of $15 to $17 billion per year from 2017, $2 billion less than previous guidance due to further Capex discipline and cost deflation. |
| Growing production by an average rate of 5% per year from 2014 through to 2020 (rather than to 2019 in previous guidance). |
2
Results for 2015 and the first 6 months of 2016 demonstrate the strength of the Groups integrated business model and the progress it is making to reduce its breakeven and deliver growth projects.
Positioning Total Strongly for the Medium Term
Total is managing its portfolio and allocating investment to position itself for profitable medium term growth with the following priorities:
| Lowering the breakeven of oil portfolio, both Upstream and Downstream. |
| Expanding along the full gas value chain. |
| Capitalizing on customer-focused culture to grow its Marketing & Services positions. |
| Positioning in low carbon energy business. |
And with the objective to be the most profitable European integrated Major oil company.
Creating Shareholder Value
Total is focused on lowering its cash flow breakeven. In 2017, cash flow from operations will cover Capex, including resource renewal, and dividend cash-out at $55/b Brent. With continued strong free cash flow growth thereafter, Total is committed to deliver shareholder value and improve profitability with an objective of ROE above 10% at $60/b Brent while maintaining a strong balance sheet. The discounted scrip dividend will be ended in 2017 if Brent is at $60/b. Excess cash flow will be allocated in priority to lowering gearing with a long term guidance of 20% and to buy back scrip shares.
Total Energy Ventures invests in smart grids with AutoGrid
On September 16, 2016, Total announced that Total Energy Ventures (TEV), its venture capital arm that invests in start-ups, had acquired an interest in AutoGrid, a company that develops digital solutions to manage and optimize energy supplied to and from the power grids.
Founded in 2011, California-based AutoGrid has developed an internet platform that provides the capability to balance supply and demand for connected distributed energy resources, identify and prevent problems and optimize equipments consumption such as meters, water heaters and chargers. The applications use predictive controls technology to process data from energy assets and grid activity. Customers include utilities and equipment manufacturers that produce electricity from solar panels, batteries and other sources.
On a large scale, this technology enhances energy efficiency, thereby reducing costs and emissions. It also improves integration of renewable energies into the grid.
This funding round is intended to finance AutoGrids expansion.
TEV will sit on the companys Board of Directors as an observer.
USA: Total exercises its preemption rights on Barnett Shale assets
On September 9, 2016, Total E&P USA, a Total affiliate, announced that it was exercising its preemption right to acquire Chesapeakes 75% interest in the jointly held Barnett Shale operating area located in North Texas. Total E&P USA has owned the remaining 25% in the Barnett Assets since December 2009. With the preemption, Total E&P USA will be the 100% owner and operator of the assets.
Properties in the proposed transaction include approximately 215,000 net developed and undeveloped acres, wells, leases, minerals, buildings and properties (the Barnett Assets). Associated 2016 net production is approximately 65,000 barrels of oil equivalent per day (boe/d).
The preemption and associated transactions are subject to a number of conditions, including the receipt of third-party consents, and are expected to close in the fourth quarter of 2016.
3
Under the terms of the transaction, Chesapeake will pay $334 million to Williams, the gatherer and processer of 80% of the gas from the Barnett Assets, to terminate its gathering agreement, projected Minimum Volume Commitment (MVC) shortfall payments and fees pertaining to the Barnett Shale assets. Total E&P USA will supplement Chesapeakes payment with $420 million to Williams for a fully restructured, competitive gas gathering agreement, free of any MVC and with a Henry Hub-based gathering rate instead of a fixed per million cubic feet (Mcf) fee. Total E&P USA will also pay $138 million to be released from three midstream capacity reservation contracts.
Final results following the reopening of the public tender offer initiated by Total on Saft
On August 5, 2016, Total announced that the French Autorité des marchés financiers (the AMF) announced that 1,649,317 Saft Groupe shares had been tendered following the reopening of the public tender launched by Total.
Following the successful completion of the public tender offer, Total implemented a squeeze-out of those Saft Groupe shares not tendered into the offer. Saft Groupes shares were then delisted from Euronext Paris
The amount of compensation paid under the squeeze-out equaled that of the price of the public tender offer, i.e., 36.50 per share.
Bolivia: Total starts up production at Incahuasi gas field
Total announced on August 3, 2016 that it had put on stream the Incahuasi gas and condensate field, the Groups first operated development in Bolivia, with a production capacity of 50,000 barrels of oil equivalent per day (boe/d).
The Incahuasi field lies at more than 5,600 meters beneath the Andean foothills, 250 kilometers from the city of Santa Cruz de la Sierra. The first phase of the field development involves three wells, a gas treatment plant and 100 kilometers of associated export pipelines. The second phase of development, involving three further wells, is currently under consideration.
Incahuasi is situated in the Aquio and Ipati blocks. The development is operated by Total (50%), with partners Gazprom (20%), Tecpetrol (20%) and YPFB Chaco (10%).
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Total and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of Total, and may be preceded by, followed by, or otherwise include the words believes, expects, anticipates, intends, plans, targets, estimates or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. Totals future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond Totals ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, Total does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of Total and could cause results to differ materially from those expressed in such forward-looking statements, including:
| material adverse changes in general economic conditions or in the markets served by Total, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; |
| changes in currency exchange rates and currency devaluations; |
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| 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 national and international armed conflict) and trade and regulatory matters (including actual or proposed sanctions on companies that conduct business in certain countries); |
| the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures; |
| 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 C. Risk Factors, Item 4 C. Other Matters, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures About Market Risk in Totals Annual Report on Form 20-F for the year ended December 31, 2015.
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Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. 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 nine months ended September 30, 2016 and 2015 and the fiscal years ended December 31, 2015, 2014, 2013, 2012 and 2011.
Nine Months Ended September 30, |
Years Ended December 31, | |||||||||||||
2016 | 2015 | 2015 | 2014 | 2013* | 2012** | 2011** | ||||||||
For the Group (IFRS) |
5.26 | 9.18 | 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.
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CAPITALIZATION AND INDEBTEDNESS OF TOTAL
(unaudited)
The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of the Group as of September 30, 2016, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (dollars or $) or in euros (euros or ).
At September 30, 2016 |
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(in millions of dollars) | ||||
Current financial debt, including current portion of non-current financial debt |
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Current portion of non-current financial debt |
4,243 | |||
Current financial debt |
9,140 | |||
Current portion of financial instruments for interest rate swaps liabilities |
132 | |||
Other current financial instruments liabilities |
248 | |||
Financial liabilities directly associated with assets held for sale |
15 | |||
Total current financial debt |
13,778 | |||
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Non-current financial debt |
44,450 | |||
Non-controlling interests |
2,948 | |||
Shareholders equity |
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Common shares |
7,849 | |||
Paid-in surplus and retained earnings |
106,189 | |||
Currency translation adjustment |
(11,448 | ) | ||
Treasury shares |
(4,422 | ) | ||
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Total shareholders equity Group share |
98,168 | |||
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Total capitalization and non-current indebtedness |
145,566 | |||
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As of September 30, 2016, TOTAL S.A. had an authorized share capital of 3,527,620,158 ordinary shares with a par value of 2.50 per share, and an issued share capital of 2,504,029,528 ordinary shares (including 110,920,640 treasury shares from shareholders equity).
As of September 30, 2016, approximately $648 million of the Groups non-current financial debt was secured and approximately $43,802 million was unsecured, and all of the Groups current financial debt of $9,140 million was unsecured. As of September 30, 2016, the Group had no outstanding guarantees from third parties relating to its consolidated indebtedness. Since September 30, 2016, TOTAL S.A. has issued a perpetual subordinated note recorded as equity of 2.5 billion (or approximately $2.7 billion using the /$ exchange rate on October 21, 2016 of 1 = $1.0866 as released by the Board of Governors of the Federal Reserve System on October 24, 2016). For more information about the Groups commitments and contingencies, see Note 23 of the Notes to Totals audited Consolidated Financial Statements in its Annual Report on Form 20-F for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 16, 2016.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of the Group since September 30, 2016.
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Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
Nine Months Ended September 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of dollars) |
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net income(a)(b) |
5,648 | 6,713 | 5,087 | 4,244 | 11,228 | 13,648 | 17,400 | |||||||||||||||||||||
Income tax expenses(a)(b) |
533 | 3,034 | 1,653 | 8,614 | 14,767 | 16,747 | 19,614 | |||||||||||||||||||||
Non-controlling interests |
71 | (127 | ) | (301 | ) | 6 | 293 | 188 | 424 | |||||||||||||||||||
Equity in income of affiliates (in excess of)/ less than dividends received |
(708 | ) | (350 | ) | (311 | ) | 29 | (775 | ) | 272 | (149 | ) | ||||||||||||||||
Interest expensed |
511 | 553 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Estimate of the interest within rental expense |
358 | 305 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Amortization of capitalized interest |
129 | 118 | 174 | 160 | 135 | 205 | 280 | |||||||||||||||||||||
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Total(a)(b) |
6,542 | 10,246 | 7,521 | 13,995 | 26,661 | 32,043 | 38,730 | |||||||||||||||||||||
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Interest expensed |
511 | 553 | 742 | 536 | 656 | 649 | 862 | |||||||||||||||||||||
Capitalized interest |
375 | 258 | 362 | 341 | 349 | 333 | 245 | |||||||||||||||||||||
Estimate of the interest within rental expense |
358 | 305 | 477 | 406 | 357 | 334 | 299 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
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Fixed charges |
1,244 | 1,116 | 1,581 | 1,283 | 1,362 | 1,316 | 1,406 | |||||||||||||||||||||
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Ratio of earnings to fixed charges(a)(b) |
5.26 | 9.18 | 4.76 | 10.91 | 19.57 | 24.35 | 27.55 | |||||||||||||||||||||
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(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. |