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 31, 2019
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 ☒ 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 ☒
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
TOTAL S.A. is providing on this Form 6-K a description of certain recent developments relating to its business.
TABLE OF CONTENTS
SIGNATURES
EXHIBIT INDEX
Exhibit 99.1 Norway: Johan Sverdrup Giant Field Starts Up in the North Sea (October 7, 2019) |
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Exhibit 99.2 Total launches construction of its third solar power plant in Japan (October 8, 2019) |
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Exhibit 99.3 Brazil: Total Expands Pre-Salt Footprint With New Deep Offshore Exploration License (October 10, 2019) |
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Exhibit 99.4 Total expands its strategic partnership with Adani to supply and market natural gas in India (October 14, 2019) |
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Exhibit 99.5 Deutsche Post DHL Group and Total reinforce their worldwide collaboration on energy solutions and innovative logistics (October 14, 2019) |
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Exhibit 99.6 Total Opens a Digital Factory to Further its Ambition of Becoming the Responsible Energy Major (October 17, 2019) |
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Exhibit 99.7 New Marine Fuels: Totals First LNG Bunker Vessel Launched (October 17, 2019) |
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Exhibit 99.8 China: Total and Zhejiang Energy Group Join Forces to Develop the Growing Low Sulfur Marine Fuel Market (October 21, 2019) |
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Exhibit 99.9 Plastics Recycling: Total announces plans to double its capacity of recycled polypropylene for the automotive industry (October 22, 2019) |
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Exhibit 99.10 Total dedicates its $400 million global venture fund to Carbon Neutrality (October 24, 2019) |
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Exhibit 99.11 France: Total Tops Rankings in Call for Tenders for Rooftop Solar Installations (October 24, 2019) |
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Exhibit 99.12 Brunei: Total Sells Its Interest in Offshore Block CA1 (October 30, 2019) |
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Exhibit 99.13 Third quarter 2019 results (October 30, 2019) |
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Exhibit 99.14 Total announces the third 2019 interim dividend of 0.68/share, an increase of 6% compared to 2018 (October 30, 2019) |
EXHIBIT INDEX
Exhibit 99.1 Norway: Johan Sverdrup Giant Field Starts Up in the North Sea (October 7, 2019)
Exhibit 99.2 Total launches construction of its third solar power plant in Japan (October 8, 2019)
Exhibit 99.7 New Marine Fuels: Totals First LNG Bunker Vessel Launched (October 17, 2019)
Exhibit 99.12 Brunei: Total Sells Its Interest in Offshore Block CA1 (October 30, 2019)
SIGNATURES
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 31, 2019 |
By: |
/s/ ANTOINE LARENAUDIE | ||||||
Name: |
Antoine LARENAUDIE | |||||||
Title: |
Group Treasurer |
EXHIBIT 99.1
Press Release
Norway: Johan Sverdrup Giant Field Starts Up in the North Sea
Paris, October, 7 2019 - The production from Phase 1 of the giant Johan Sverdrup field has started more than two months ahead of schedule and with a cost reduced by more than 30%. The total investment is $10.5 billion and plateau production is 440,000 barrels per day. Johan Sverdrup is operated by Equinor (42.6267%), alongside Lundin Norway (20%), Petoro (17.36%), Aker BP (11.5733%) and Total (8.44%).
Johan Sverdrup is one of the major developments that were added to Totals portfolio through the value adding acquisition of Maersk Oil in 2018. It is one of the largest oil fields of the Norwegian Continental Shelf and illustrates our ongoing commitment to Norway a country that represents about 8% of Totals global annual production and to the North Sea where we are the second largest operator, said Arnaud Breuillac, President Exploration & Production of Total.
Located 150 kilometers off the Norwegian coast, Johan Sverdrups total recoverable reserves amount to 2.7 billion barrels of oil equivalent. Phase II of the project is already under development and is expected to increase production capacity to 660,000 barrels per day by the end of 2022.
Johan Sverdrup ranks among the world top three offshore projects in terms of carbon emission efficiency. With well below 1 kg of CO2 emitted per barrel, emissions savings are largely due to the electric supply from shore compared with traditional offshore gas turbines.
About Totals Exploration & Production in Norway
Total has been present in Norway since 1965 and has played a major role in the development
of many important fields on the Norwegian continental shelf. Total holds interests in 65 production licenses and our production was 211,000 barrels of oil equivalent per day in 2018.
In 2017, Total has signed an agreement with Shell and Equinor to mature the development of a full-scale carbon storage on the Norwegian continental shelf. This is in line with Totals roadmap to develop carbon capture utilization and storage (CCUS) as a key axis of its low carbon strategy.
In terms of competence and technical know-how, Total benefits from its new Copenhagen-based exploration hub that provides synergies and increased focus on future opportunities on the Norwegian Continental Shelf (NCS) and in the North Sea region at large, where Total is present in Norway, UK, Denmark and the Netherlands.
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About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
Cautionary note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with the SEC rules. We may use certain terms in this press release, such as resources, that the SECs guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-10888 available from us at TOTAL S.A. Tour Coupole 2, place Jean Millier Arche Nord Coupole/Regnault 92078 Paris La Défense Cedex France, or at our website: www.total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SECs website: www.sec.gov.
EXHIBIT 99.2
Press Release
Total launches construction of its third solar power plant in Japan
Paris/Tokyo, October 8, 2019 Total Solar International, a wholly owned Total subsidiary dedicated to utility-scale solar plants, announce the start of the construction of Miyagi Osato Solar Park, a large-scale solar plant of 52 megawatt-peak (MWp) located in Osato, Miyagi prefecture, Japan. The project, which has achieved financial close, is expected to start up in 2021 and will provide clean and reliable electricity to Japanese households.
The Miyagi Osato Solar Park is Totals third and biggest solar plant in Japan, which will allow us to reach a cumulated capacity of over 100 MWp in the country. This project is in line with Totals commitment to develop renewable production capacities worldwide and in particular in the Japanese market, where we actively pursue our development, said Julien Pouget, Senior Vice-President Renewables at Total.
The plant is designed to fully meet Japans stringent earthquake-resistant building standards. The facility will be equipped with around 116,000 SunPower® Maxeon® high efficiency solar panels that deliver reliable performance throughout the entire life of every installation.
The plant will be operated by Miyagi Osato Solar Park G.K., a special purpose company, majority-owned by Total Solar International (90%), alongside SB Energy Corp. (SB Energy) (10%), a Japanese subsidiary of SoftBank Group.
The launch the construction of Miyagi Osato Solar Park follows the beginning of the operation of two other large-scale solar plants of Total Solar International in Japan: Miyako Solar Park (25 MWp, 2019) and Nanao Power Plant (27 MWp, 2017). This rapid growth (over 100 MWp
of cumulative capacity achieved in 2 years) sets Total as one of the most dynamic players in the Japanese solar market.
Total and Low-Carbon Electricity
Total integrates climate change into its strategy and is staying ahead of new energy market trends by building a portfolio of low-carbon businesses that could account for 15 to 20% of its sales by 2040. Totals gross low-carbon power generation capacity worldwide currently stands next to 7 gigawatts, of which over 3 gigawatts from renewable energies.
Total actively contributes to the growth of solar energy worldwide by designing and operating utility-scale power plants and supplying industrial and commercial customers with solar energy generated at their sites.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
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Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.3
Press Release
Brazil: Total Expands Pre-Salt Footprint
With New Deep Offshore Exploration License
Paris, October 10, 2019 Total, operator, and its co-venturers Qatar Petroleum and Petronas have won the C-M-541 deep offshore block today in the 16th Bidding Round held by Brazils National Petroleum Agency (ANP). The acreage is located in the pre-salt Campos Basin in a water depth of about 3,000 meters.
Total is pleased to expand its footprint in the Campos Basin with this new operated exploration block, alongside two strategic partners. It is another demonstration of our ability to seize high quality exploration acreage in a key growth area for the Group, said Patrick Pouyanné, Chairman and CEO of Total. This is in line with our strategy to continue building our operator positions in Brazils deep offshore, where we can add value thanks to our deepwater competencies. It follows on from our acquisition in 2016, through successful direct negotiations with Petrobras, of operatorship of the Lapa field and an interest in the Iara concession. We have also launched development phases 1 and 2 of the giant Mero field. In this context, Total confirms that it will not participate in the upcoming Transfer-of-Rights (TOR) Surplus Round, as the competitive tender is only offering non-operated interests.
Total will operate the block with a 40% interest, alongside Qatar Petroleum (40%) and Petronas (20%). The consortium plans to drill a first exploration well in 2021.
This entry into a new block follows the FID made by Total and its partners in June 2019 for the second FPSO of the Mero project (Libra Block), which is expected to start up in 2022. Currently under construction, the first FPSO of the Mero project is progressing according to schedule, with start-up planned in 2021. The first FPSO of the Iara project is expected to start up later this year and the second one in 2020.
Total in Brazil
Total has been present in Brazil for over 40 years and has more than 3,000 employees in the country. The Group now operates in all segments: exploration and production, gas, renewable energies, lubricants, chemicals, and distribution.
Total Exploration & Productions portfolio currently includes 23 blocks, with nine operated. In 2018, the Groups production in the country averaged 19,000 barrels of oil equivalent per day.
In 2017, Total and Petrobras formed a Strategic Alliance encompassing exploration and production and gas, renewables and power activities. Through the Alliance, the two groups are implementing R&D projects on topics such as artificial intelligence leading to efficiency gains, with direct applications in Brazil.
Total recently entered the fuel distribution market in Brazil with the acquisition in December 2018 of Grupo Zemas distribution activities. Total thus owns a network of 280 service stations, as well as several storage facilities for petroleum products and ethanol.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
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Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.4
Press Release
Total expands its strategic partnership with Adani
to supply and market natural gas in India
Paris, October 14, 2019 As part of its strategy to develop new gas markets, Total, the worlds second-largest LNG player, expands its partnership with the Adani Group; the largest energy and infrastructure conglomerate in India, to contribute to the development of the Indian natural gas market.
The Indian natural gas market represents a substantial growth perspective. It is currently only 7% of the energy consumption but has grown over the last 3 years by more than 5% per annum, supported by an active policy of the Indian Government that aims to diversify its energy mix and develop domestic use of gas in cities and as fuel for vehicles. India has set the ambitious target of increasing the share of natural gas in its energy mix to 15% by 2030.
The partnership between Adani (50%) and Total (50%) includes several assets across the gas value chain notably two imports and regasification LNG terminals: Dhamra in East India and potentially Mundra in the West, as well as Adani Gas Limited, one of the 4 main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%.
Adani Gas Limited aims to expand its distribution of gas in the next 10 years through its 38 concessions covering 7.5% of the Indian population and market natural gas to industrial, commercial and domestic customers, targeting 6 million homes as well as through 1,500 retail outlets of natural gas for vehicles.
As part of this partnership, Total will bring its LNG and retail expertise and will supply LNG to Adani Gas Limited. Total and Adani will also establish a joint venture to market LNG in India and Bangladesh.
Energy needs in India are immense and the Indian energy mix is key to the climate change challenge. Firmly investing to develop the use of natural gas in India is in line with Totals ambition to become the responsible energy major. The natural gas market in India will have a strong growth and is an attractive outlet for the worlds second-largest LNG player that Total has become. Adani will bring its knowledge of the local market and its expertise in the infrastructure and energy sectors. This partnership with Adani is cornerstone to our development strategy in this country. said Patrick Pouyanné, Chairman and CEO of Total.
To reach a 37.4% shareholding in Adani Gas Limited in accordance with Indian stock market regulations and subject to regulatory approvals, Total will initially launch a tender offer to public shareholders to acquire up to 25.2% of equity shares before buying the remaining shares from Adani.
Taking into account the divestiture of the Groups interest in Hazira terminal early 2019, the establishment of this partnership on gas in India represents a net acquisition cost for Total of approximately $600 million over 2019-2020.
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About Adani
Headquartered in Ahmedabad, India, Adani Group is one of Indias largest integrated infrastructure conglomerates with interests in Resources, Logistics, Energy, and Agro, Real Estate, Public Transport Infrastructure, Finance and Defense. Adani owes its success and leadership position to its core philosophy of Nation Building. The Group is committed to protecting the environment and improving communities through its CSR program based on the principles of sustainability, diversity and shared values.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
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Total Contacts:
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0) 207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.5
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Press Release
Deutsche Post DHL Group and Total reinforce their worldwide
collaboration on energy solutions and innovative logistics
Signing of a Strategic Cooperation Agreement to strengthen commitment to work together
for sustainable mobility and low-carbon energies, logistics and transport services
Bonn / Paris, October 14, 2019 - Deutsche Post DHL Group (DPDHL Group) and Total have signed a Strategic Cooperation Agreement to strengthen their partnership and contribute to the implementation of their global business ambitions.
Thanks to their complementary geographic presence, the two groups will be able to benefit from new commercial cross-business opportunities, as a customer and a supplier respectively. This B2B partnership displays a common desire of the two companies to work even more closely together on technological and digital challenges and climate issues. Both companies will explore and develop concrete projects alongside their daily business operations and core expertise, including multi-energy offers, sustainable mobility, new solutions for fleet management as well as contract logistics, global freight forwarding, added value supply chain solutions, road freight and express services.
Tim Scharwath, Member of the Board of Management of Deutsche Post DHL Group, comments: Our ambitious target is to reduce all logistics-related emissions to zero by the year 2050. Alternative drives and fuels as well as clean energy solutions are important cornerstones to achieve this goal. In cooperation with Total, and thanks to their profound expertise in the energy sector, we will be leveraging further innovative solutions to reduce our CO2 emissions and energy consumption. At the same time, we will intensify our partnership to implement best-in-class logistics solutions throughout Totals various value chains.
Built on a long history of commercial relationships in more than 100 countries around the world this B2B agreement between the two groups will also leverage their respective global organizations to implement operational excellence, support sustainable business growth, and shape the future through innovation.
This strategic partnership marks a new stage of the collaboration between Total and DPDHL Group, enabling the development of new businesses, particularly associated with low carbon energies. adds Momar Nguer, President for Total Marketing & Services. Total, thanks to its worldwide geographical footprint and wide range of products and services, including EV mobility and fleet management solutions, is ideally positioned to support DPDHL Group in achieving its GoGreen targets.
About Deutsche Post DHL Group
Deutsche Post DHL Group is the worlds leading mail and logistics company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. The Group contributes to the world through responsible business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.
Deutsche Post DHL Group is home to two strong brands: Deutsche Post is Europes leading postal service provider. DHL offers a comprehensive range of international express, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post DHL Group employs approximately 550,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 61 billion Euros in 2018.
Die Post für Deutschland. The logistics company for the world.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
About Total Marketing & Services
The Total Marketing & Services division develops and distributes mainly petroleum-based products and all associated services. Its 31,000 employees are present in 110 countries and its products and service offers are sold in 150 countries. Total Marketing & Services welcomes over 8 million customers daily in its network of over 14,000 service stations in 62 countries. Total is the worlds 4th largest oil and gas company and the number 1 distributor of petroleum-products in Africa. Total Marketing & Services operates 50 production sites worldwide where it manufactures lubricants, bitumen, fuel additives, fuels and special fluids.
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Media Contact:
Deutsche Post DHL Group
Media Relations: David Stöppler
Phone: +49 228 182-9944
E-mail: pressestelle@dpdhl.com
On the Internet: dpdhl.de/press
Follow us at: twitter.com/DeutschePostDHL
You can find the press release for download as well as further information on dpdhl.com/pressreleases
Total
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.6
Press Release
Total Opens a Digital Factory to Further its Ambition
of Becoming the Responsible Energy Major
Paris, October 18, 2019 Total will open a Digital Factory in Paris in early 2020 that will bring together up to 300 developers, data scientists and other experts to accelerate the Groups digital transformation. Totals goal is to leverage the capabilities of digital tools to create value in all of its businesses.
The Digital Factory will be tasked with developing the digital solutions Total needs to improve its operations, in terms of both availability and cost, offer new services to customers, notably in the area of managing and controlling energy consumption, extend its reach to new distributed energiesc and reduce its environmental impact. Totals ambition is to generate as much as $1.5 billion in value per year for the company by 2025 through additional revenue and reductions in operating or investment expenses.
I am convinced that digital technology is a critical driver for achieving our excellence objectives across all of Totals business segments. Totals Digital Factory will serve as an accelerator, allowing the Group to systematically deploy customized digital solutions. Artificial intelligence (AI), the Internet of Things (IoT) and 5G are revolutionizing our industrial practices, and we will have the know-how in Paris to integrate them in our businesses as early as possible. The Digital Factory will also attract the new talent essential to our companys future, said Patrick Pouyanné, Chairman and Chief Executive Officer of Total, during Frances Best Developer contest.
New Professions for Total
Under the direction of Frédéric Gimenez, Chief Digital Officer of Total and Digital Factory project manager, teams comprising top developers, data scientists, architects and specialists in agile methodologies will work with operating personnel from Totals different businesses in the 5,500-square-meter facility located in the center of Paris. From deep in the citys innovation ecosystem, they will shape the energy professions of tomorrow, focusing on solutions that can be deployed agilely within the Group.
A New Step in Totals Digital Transformation
The Digital Factory is a new step in Totals transformation process. It follows on the signature of major partnership agreements with Google on artificial intelligence and geosciences and with Tata Consultancy Services on Refinery 4.0.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
* * * * *
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.7
Press Release
New Marine Fuels:
Totals First LNG Bunker Vessel Launched
Paris, October 18, 2019 Total announces that its first large liquefied natural gas (LNG) bunker vessel has been launched, following the signature of a long-term charter contract between Total and Mitsui O.S.K Lines (MOL) in February 2018.
After delivery in 2020, the bunker vessel will operate in Northern Europe, where it will supply LNG to commercial vessels, including 300,000 tons per year for CMA CGMs nine ultra-large newbuild containerships in Europe-Asia trade, for a period of at least 10 years.
The LNG bunker vessels construction is in line with the International Maritime Organization (IMO) decision to drastically limit the sulfur content of marine fuels as of 2020. In this context, the transition from heavy fuel oil to LNG is a competitive, efficient and immediately available solution for maritime transportation.
Used as a marine fuel, LNG sharply reduces emissions from ships, resulting in a significant improvement in air quality, particularly for communities in coastal areas and port cities. LNG helps to cut:
§ | Sulfur emissions by 99%, |
§ | Fine particle emissions by 99%, |
§ | Nitrogen oxide emissions by 85%, |
§ | Greenhouse gases emissions by around 20%. |
Developing infrastructure like this giant bunker vessel is essential to allow LNG to become a widely used marine fuel, said Momar Nguer, President for Total Marketing & Services. This first ship demonstrates our commitment to offering our customers both more environmentally friendly fuels and the associated logistics. Thanks to this pioneering investment, Total is making a positive contribution to the sustainable evolution of global shipping.
Built by Hudong-Zhonghua Shipbuilding at their shipyard near Shanghai, the bunker vessel is fitted with innovative tank technologies, with a capacity of 18,600 cubic meters, provided by the French company GTT. Designed to be highly maneuverable, the 135-meter-long vessel will be able to operate safely in the ports and terminals considered. Lastly, she meets the highest environmental standards thanks to the use of LNG as fuel and complete reliquefaction of boil-off gas.
Total, Second-Largest Private Global LNG Player:
Total is the second-largest private global LNG player, with an overall portfolio of around 40 million tons per year by 2020 and a global market share of 10%. With 22 million tons of LNG sold in 2018, the Group has solid, diversified positions across the LNG value chain. Through its stakes in liquefaction plants in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia and Angola, Total sells LNG in markets worldwide.
Total Marine Fuels Global Solutions
Total Marine Fuels Global Solutions is Totals dedicated business unit in charge of worldwide bunkering activities. Total Marine Fuels Global Solutions is the single point of contact for a full spectrum of solutions with innovative and efficient bunkering services.
www.marinefuels.total.com.
***
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.8
Press Release
China: Total and Zhejiang Energy Group Join Forces
to Develop the Growing Low Sulfur Marine Fuel Market
Zhoushan, October 21, 2019 Total has signed a shareholders agreement with Chinese state-owned Zhejiang Energy Group (ZEG), to create a joint venture company dedicated to the supply and delivery of marine fuels in the region of Zhoushan, China.
The agreement, signed on the sidelines of the IPEC conference in Zhoushan, follows a Memorandum of Understanding concluded by Total and ZEG in April 2019 to explore opportunities in the supply and distribution of energy in China. Total China Investment (TCI) will hold a 49% share in the new company while Zhejiang Zheneng Petroleum New Energy (ZZPNE) will hold the remaining.
Zhoushan region covers both Ningbo and Shanghai ports, the busiest shipping hub in the world in terms of cargo tonnage.
By combining ZEGs historical anchoring in the energy business in the region and Totals longstanding expertise in the trading and marketing of international bunkers, the new company aims to actively contribute to the development of this fast-growing market.
This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go. declared Philippe Charleux, Senior Vice-President Lubricants & Specialties of Total. Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry.
The creation of the new company ensures the continuity of Totals business development strategy initiated almost 40 years ago in China.
About Total in China
Total has been present in China for almost 40 years. The Group was the first international energy company to enter Chinas offshore oil and gas exploration and refining business. With a team of more than 4,000 employees the company is actively present across the entire value chain of Chinas energy industry, including Exploration & Production, Gas, Renewables & Power, Refining & Chemicals, and Marketing & Services activities. Total is constantly developing new business opportunities with Chinese partners both in China and globally.
About Total
Total is a global integrated energy producer and provider, a leading international oil and gas company, a major player in low-carbon energies. Our 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.
* * * * *
Total contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total and Total Group are sometimes used for convenience where general references are made to TOTAL S.A. and/or its subsidiaries. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.9
Press Release
Plastics Recycling: Total announces plans to double its
capacity of recycled polypropylene for the automotive industry
Paris, October 22, 2019 Total has decided to double the production capacity of its affiliate Synova to meet growing market demand for high-performance recycled materials. By early 2021, Normandy-based Synova, a French leader in its sector, will produce 40,000 tons per year of recycled polypropylene that meets the demanding quality standards of automotive OEMs and carmakers.
Among their many qualities, plastics help to reduce the weight of everyday items, improving their energy efficiency, and to shrink our carbon emissions. By developing the share of recycled raw materials, we provide a concrete response to the challenge of managing the end-of-life of plastics, said Valérie Goff, Senior Vice President Polymers at Total Refining & Chemicals. This investment, which consolidates the acquisition of Synova in early 2019, marks a new milestone in our circular economy activities and contributes to our target of producing 30% recycled polymers by 2030 and Totals ambition to be the responsible energy major.
Total and end-of-life of plastics
Total is a founding member of The Alliance to End Plastic Waste, an organization that brings together around 40 member companies from across the plastics and consumer goods value chain. They have committed over $1 billion, with the ultimate goal of investing $1.5 billion, over the next five years to provide solutions to eliminate plastic pollution in the environment, particularly the oceans.
Total is working on all forms of recycling to develop high-performance recycled polymers.
For example, the Group produces Circular Compounds®, polypropylene and polyethylene containing at least 50% recycled material, with the same properties as virgin grade polymers.
Total has also joined forces with Citeo, Saint-Gobain and Syndifrais to create a polystyrene recycling channel in France by 2020. The feasibility of large-scale production will be validated at the Groups industrial sites in Carling (France) and Feluy (Belgium).
Additionally, Total is a global leader in bioplastics. The Total Corbion PLA joint venture owns a plant in Thailand with a capacity of 75,000 tons per year of polylactic acid (PLA), a 100% renewable-based bioplastic that is recyclable and biodegradable.
Total has set a target of producing 30% recycled plastics by 2030.
* * * * *
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
* * * * *
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.10
Press Release
Total dedicates its $400 million global venture fund
to Carbon Neutrality
Paris, October 24, 2019 - Total today announces that it will focus its global venture fund on fostering carbon neutrality. The fund will increase its capital to a cumulative $400 million within five years time. Its investments will support start-ups that develop innovative technologies and solutions which help companies to reduce their energy consumption or the carbon intensity of their activities. The fund will be known as Total Carbon Neutrality Ventures (TCNV).
The Total Carbon Neutrality Ventures fund will fully support Totals ambition to become the responsible energy major. It will allow us to expand the reach of our low carbon- businesses beyond our own borders, said Patrick Pouyanné, Chairman and CEO of Total. Over five years, the $400 million fund will invest in start-ups whose technologies or innovative solutions could contribute to carbon neutrality.
TCNV will invest globally, with teams based in Europe and the U.S., focusing on the areas such as smart energy, energy storage, smart mobility, bioplastics and recycling.
The fund builds on Total Ventures existing portfolio of 35 global start-ups that directly and indirectly contribute to carbon neutrality. That portfolio includes Solidia, Sunfire, Scoop, Shyft Power Solutions, Ionic Materials, MTPV, AutoGrid, Stem and OnTruck.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 207 719 7962 l ir@total.com
* * * * *
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.11
Press Release
France: Total Tops Rankings in Call for Tenders
for Rooftop Solar Installations
Paris, October 24, 2019 - Total continues to actively contribute to the growth of solar and wind power in France, with its affiliate Total Quadran winning 32 MW of new solar and wind power projects during the recent call for tenders issued by the French Energy Regulatory Commission (CRE).
Leader in the Call for Tenders for Rooftop Solar Installations
Through Energie Développement, its 50-50 joint venture with solar project developer Amarenco France, Total Quadran is among the leaders of the eighth round of the CRE 41 call for tenders, winning 17 MWp, or 14% of the capacity awarded.
In total, with more than 166 MWp won across all rounds of the CRE 4 call for tenders issued in 2017, Energie Développement comes out on top in the rooftop solar installation industry in France (see Finergreen ranking2.)
We are very pleased to be the leading supplier in the rooftop solar installation industry in France. In addition to our activities in the areas of utility-scale solar plants and solar carports, this success reinforces Total Quadrans position as the most active solar industry operator in France, across all segments, said Thierry Muller, CEO of Total Quadran.
1Group 2 (500 KWp to 8 MWp)
1Source : http://www.finergreen.com/wp-content/uploads/2017/04/19-10-08-Analyse-AO-Solaire-CRE4.8-ISB-vFR.pdf
Total and Low-Carbon Electricity
Total integrates climate change into its strategy and is staying ahead of new energy market trends by building a portfolio of low-carbon businesses that could account for 15 to 20% of its sales by 2040. Totals gross low-carbon power generation capacity worldwide currently stands at nearly 7 gigawatts, of which over 3 gigawatts from renewable energies.
About Total Quadran
Total Quadran, a pioneering renewable energy company in France, joined Total in 2018. It develops, builds and operates power generation facilities that use renewable resources (wind, photovoltaic, hydro and biogas) with a strong presence in mainland France and overseas French regions.
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
* * * * *
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.12
Press Release
Brunei: Total Sells Its Interest in Offshore Block CA1
Paris, October 30, 2019 - Total has signed an agreement to sell wholly owned subsidiary Total E&P Deep Offshore Borneo BV which holds an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei to Shell1 for $300 million. The transaction is subject to approval by the competent authorities and is expected to close by December 2019.
This transaction fits with our strategy of actively managing our portfolio and will contribute to our program to dispose of $5 billion of non-core assets over the period 2019-2020, said Arnaud Breuillac, President Exploration & Production at Total.
Block CA1 covers 5,850 square kilometers, with water depths ranging from 1,000 to 2,500 meters. Total currently operates the block alongside partners Murphy Oil (8.05%) and Petronas (5%).
1 Dordtsche Petroleum Maatschappij BV
* * * * *
About Total
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
Total Contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
EXHIBIT 99.13
Press Release
Third quarter 2019 results
In a weaker environment, continued strong cash flow generation
and low carbon strategy development
3Q19 | Change vs 3Q18 |
9M19 | Change vs 9M18 |
|||||||||||||
Oil price - Brent ($/b) |
62.0 | -18% | 64.6 | -10% | ||||||||||||
European gas price - NBP ($/Mbtu) |
3.9 | -54% | 4.8 | -37% | ||||||||||||
Adjusted net income (Group share)1 |
||||||||||||||||
- in billions of dollars (B$) |
3.02 | -24% | 8.66 | -17% | ||||||||||||
- in dollars per share |
1.13 | -23% | 3.20 | -18% | ||||||||||||
DACF1 (B$) |
7.4 | -2% | 21.1 | +6% | ||||||||||||
Cash Flow from operations (B$) |
8.2 | +43% | 18.1 | +29% | ||||||||||||
Net income (Group share) of 2.8 B$ in 3Q19, a 29% decrease compared to 3Q18 |
| |||||||||||||||
Net-debt-to-capital ratio of 21.1% at September 30, 2019 |
| |||||||||||||||
Hydrocarbon production of 3,040 kboe/d in 3Q19, an increase of 8.4% compared to 3Q18 |
| |||||||||||||||
Ex-dividend date for third 2019 interim dividend of 0.68 /share on March 30, 2020 |
|
Paris, October 30, 2019 - Totals Board of Directors met on October 29, 2019, to approve the Groups third quarter 2019 financial statements. Commenting on the results, Chairman and CEO Patrick Pouyanné said:
The Group continues to achieve solid results despite a third quarter environment compared to a year ago that was marked by an 18% decrease in the Brent price to $62/b and gas prices that fell by about 55% in Europe and Asia.
Cash flow (DACF) was essentially stable at $7.4 billion compared to a year ago, thanks to production growth of more than 8% from cash flow accretive projects. Year-to-date cash flow from the iGRP segment increased by nearly $1 billion, driven by LNG production growth of 55% (Yamal LNG in Russia and Ichthys in Australia). Thus Total reduced its organic pre-dividend breakeven to less than $25/b.
In this context, adjusted net income was $3.02 billion in the third quarter and nearly $9 billion in the first nine months of the year. The return on equity was 10.3%.
In Exploration & Production, the Group continues to high-grade its portfolio, particularly in Norway with the start-up of Johan Sverdrup and in the United Kingdom with the ramp-up of Culzean and the sale of high-breakeven mature assets. In Exploration, the Group became operator of a new high-potential pre-salt exploration block in Brazil and participated in two discoveries in Guyana.
The Group continues its dynamic strategy of growth in natural gas to contribute to the energy transition in concrete terms with the acquisition of Anadarkos stake in Mozambique LNG, the launch of the Arctic LNG 2 project in Russia and the investment in the gas marketing partnership with conglomerate Adani in India.
It also continued to grow in low carbon electricity by adding 500 MW of new projects in France during the quarter, launching the construction of a third solar farm in Japan and joining forces with Envision to develop distributed solar projects in China.
Strong performance of the Downstream from leveraging its diversified portfolio of activities confirms the effectiveness of the integrated model. Downstream cash flow was $2 billion in the third quarter, up 14% year-on-year.
Total maintains a solid financial position with gearing of 17.2% excluding capitalized leases (21.1% including). In accordance with the decision of the Board of Directors announced on September 24, the Group is accelerating dividend growth and will distribute the third interim for 2019 in the amount of 0.68 per share, an increase of 6% compared to 2018. In addition, given the resilience of its cash flow, the Group bought back $1.15 billion of its shares through September and will buy back a total of $1.75 billion of its shares in 2019.
1 Definition on page 2
1
Key figures2
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
In millions of dollars, except effective tax rate, earnings per share and number of shares |
9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||||
3,673 | 3,589 | 4,548 | -19 | % | Adjusted net operating income from business segments |
10,675 | 12,112 | -12% | ||||||||||
1,734 | 2,022 | 2,439 | -29 | % | Exploration & Production* |
5,478 | 6,571 | -17% | ||||||||||
574 | 429 | 697 | -18 | % | Integrated Gas, Renewables & Power* |
1,595 | 1,743 | -8% | ||||||||||
952 | 715 | 938 | +1 | % | Refining & Chemicals |
2,423 | 2,479 | -2% | ||||||||||
413 | 423 | 474 | -13 | % | Marketing & Services |
1,179 | 1,319 | -11% | ||||||||||
521 | 457 | 865 | -40 | % | Contribution of equity affiliates to adjusted net income |
1,592 | 2,268 | -30% | ||||||||||
30.7% | 33.0% | 38.6% | Group effective tax rate3 |
34.9% | 38.9% | |||||||||||||
3,017 | 2,887 | 3,958 | -24 | % | Adjusted net income (Group share) |
8,663 | 10,395 | -17% | ||||||||||
1.13 | 1.05 | 1.47 | -23 | % | Adjusted fully-diluted earnings per share (dollars)4 |
3.20 | 3.88 | -18% | ||||||||||
1.01 | 0.94 | 1.26 | -20 | % | Adjusted fully-diluted earnings per share (euros)** |
2.85 | 3.25 | -12% | ||||||||||
2,614 | 2,625 | 2,637 | -1 | % | Fully-diluted weighted-average shares (millions) |
2,621 | 2,618 | - | ||||||||||
2,800 | 2,756 | 3,957 | -29 | % | Net income (Group share) |
8,667 | 10,314 | -16% | ||||||||||
3,296 | 3,028 | 2,568 | +28 | % | Organic investments5 |
9,107 | 7,967 | +14% | ||||||||||
3,422 | 402 | 3,640 | -6 | % | Net acquisitions6 |
4,131 | 4,893 | -16% | ||||||||||
6,718 | 3,430 | 6,208 | +8 | % | Net investments7 |
13,238 | 12,860 | +3% | ||||||||||
6,853 | 6,707 | 7,088 | -3 | % | Operating cash flow before working capital changes8 |
19,593 | 18,857 | +4% | ||||||||||
7,385 | 7,208 | 7,507 | -2 | % | Operating cash flow before working capital changes w/o financial charges (DACF)9 |
21,129 | 19,972 | +6% | ||||||||||
8,206 | 6,251 | 5,736 | +43 | % | Cash flow from operations |
18,086 | 14,063 | +29% |
2019 data take into account the impact of the new rule IFRS16 Leases, effective January 1, 2019.
* 3Q18 and first nine months 2018 restated; historical data for 2017 and 2018 available on www.total.com.
** Average -$ exchange rate: 1.1119 in the third quarter 2019 and 1.1236 in the first nine months 2019.
Highlights since the beginning of the third quarter 201910
● | Finalized acquisition of Anadarkos stake in Mozambique LNG |
● | Launched Arctic LNG 2 project in Russia |
● | Expanded partnership with Adani to supply and market natural gas in India |
● | Signed agreements with Benin to develop LNG market there |
● | Started production at Johan Sverdrup in the North Sea |
● | Expanded Brazil pre-salt footprint with new deep offshore exploration license |
● | Inaugurated 1000th Total service station equipped with solar panels |
● | Launched construction of third solar farm in Japan |
● | Alliance with Envision in the fast-growing distributed solar energy market in China |
● | Acquired renewable energy company Vents dOc in France |
● | Increased ethylene production capacity by 30% at Hanwha Total Petrochemical in South Korea |
● | Announced creation of a digital factory to accelerate the digital transformation of the Group |
2 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 11.
3 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).
4 In accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bond
5 Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
6 Net acquisitions = acquisitions assets sales other transactions with non-controlling interests (see page 11).
7 Net investments = Organic investments + net acquisitions (see page 11).
8 Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, and effective second quarter 2019 including organic loan repayments from equity affiliates. The inventory valuation effect is explained on page 14. The reconciliation table for different cash flow figures is on page 12.
9 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
10 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
2
Key figures of environment and Group production
> Environment* liquids and gas price realizations**, refining margins
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
9M19 | 9M18 | 9M19 vs 9M18 |
||||||||||||
62.0 | 68.9 | 75.2 | -18 | % | Brent ($/b) |
64.6 | 72.1 | -10% | ||||||||||
2.3 | 2.5 | 2.9 | -19 | % | Henry Hub ($/Mbtu) |
2.6 | 2.8 | -10% | ||||||||||
3.9 | 4.1 | 8.4 | -54 | % | NBP ($/Mbtu) |
4.8 | 7.6 | -37% | ||||||||||
4.7
|
4.9
|
10.7
|
|
-56
|
%
|
JKM ($/Mbtu)
|
5.4
|
9.7
|
-44%
|
|||||||||
58.0 | 63.7 | 68.8 | -16 | % | Average price of liquids ($/b)** |
60.0 | 66.1 | -9% | ||||||||||
3.48
|
3.82
|
5.06
|
|
-31
|
%
|
Average price of gas ($/Mbtu)**
|
3.93
|
4.83
|
-19%
|
|||||||||
47.4
|
27.6
|
47.2
|
|
-
|
|
Variable cost margin - Refining Europe, VCM ($/t)
|
36.2
|
37.3
|
-3%
|
* The indicators are shown on page 15.
** Consolidated subsidiaries.
> Production*
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
9M19 | 9M18 | 9M19 vs 9M18 |
||||||||||||
3,040
|
2,957
|
2,804
|
|
+8
|
%
|
Hydrocarbon production (kboe/d)
|
2,981
|
2,742
|
+9%
|
|||||||||
1,441 | 1,407 | 1,431 | +1 | % | Oil (including bitumen) (kb/d) |
1,424 | 1,377 | +3% | ||||||||||
1,599
|
1,549
|
1,373
|
|
+16
|
%
|
Gas (including condensates and associated NGL) (kboe/d)
|
1,557
|
1,365
|
+14%
|
|||||||||
3,040
|
2,957
|
2,804
|
|
+8
|
%
|
Hydrocarbon production (kboe/d)
|
2,981
|
2,742
|
+9%
|
|||||||||
1,720 | 1,624 | 1,611 | +7 | % | Liquids (kb/d) |
1,658 | 1,558 | +6% | ||||||||||
7,399
|
7,477
|
6,557
|
|
+13
|
%
|
Gas (Mcf/d)
|
7,399
|
6,465
|
+14%
|
* Group production = EP production + iGRP production.
Hydrocarbon production was 3,040 thousand barrels of oil equivalent per day (kboe/d) in third quarter 2019, an increase of 8% compared to last year, due to:
● | +12% related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria, and Culzean in the United Kingdom, |
● | -3% due to the natural decline of the fields, |
● | -1% due to maintenance, notably in Norway. |
Hydrocarbon production was 2,981 thousand barrels of oil equivalent per day (kboe/d) in the first nine months 2019, an increase of 9% compared to last year, due to:
● | +12% related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria, |
● | +1% due to portfolio effect, notably the integration of the Maersk Oil assets, |
● | -3% due to the natural decline of the fields, |
● | -1% due to maintenance, notably in Nigeria and Norway. |
3
Analysis of business segments
Exploration & Production (EP redefined scope)
> Production
3Q19 | 9M19 | |||||||||||||
3Q19 | 2Q19 | 3Q18 | vs | Hydrocarbon production | 9M19 | 9M18 | vs | |||||||
3Q18 | 9M18 | |||||||||||||
2,501 | 2,398 | 2,433 | +3% | EP (kboe/d) | 2,442 | 2,389 | +2% | |||||||
1,647 | 1,551 | 1,575 | +5% | Liquids (kb/d) |
1,587 | 1,522 | +4% | |||||||
4,654 | 4,629 | 4,678 | -1% | Gas (Mcf/d) |
4,663 | 4,729 | -1% |
> Results
3Q19 | 9M19 | |||||||||||||
3Q19 | 2Q19 | 3Q18 | vs | In millions of dollars, except effective tax rate | 9M19 | 9M18 | vs | |||||||
3Q18 | 9M18 | |||||||||||||
1,734 | 2,022 | 2,439 | -29% | Adjusted net operating income* | 5,478 | 6,571 | -17% | |||||||
297 | 239 | 316 | -6% | including income from equity affiliates |
749 | 871 | -14% | |||||||
39.7% | 39.5% | 47.5% | Effective tax rate** | 42.8% | 47.5% | |||||||||
2,065 | 1,995 | 1,605 | +29% | Organic investments | 6,018 | 5,188 | +16% | |||||||
(3) | 204 | 373 | ns | Net acquisitions | 239 | 2,305 | -90% | |||||||
2,061 | 2,199 | 1,978 | +4% | Net investments | 6,256 | 7,493 | -17% | |||||||
4,451 | 4,882 | 5,200 | -14% | Operating cash flow before working capital changes *** | 13,579 | 13,921 | -2% | |||||||
5,007 | 3,768 | 4,431 | +13% | Cash flow from operations *** | 12,711 | 12,227 | +4% |
* Details on adjustment items are shown in the business segment information annex to financial statements.
** 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).
*** Excluding financial charges, except those related to leases.
Exploration & Production adjusted net operating income was:
● | 1,734 M$ in the third quarter 2019, a decrease of 29% year-on-year, impacted notably by lower Brent and natural gas prices as well as higher DD&A expenses on new projects. |
● | 5,478 M$ in the first nine months 2019, a decrease of 17%, for the same reasons. |
Operating cash flow before working capital changes, compared to last year, decreased by 14% in the third quarter to 4.5 B$ and by 2% in the first nine months to 13.6 B$. The start-up of highly accretive cash flow projects offset the effect of lower Brent and gas prices.
4
Integrated Gas, Renewables & Power (iGRP)
> Production and liquefied natural gas (LNG) sales
3Q19 | 9M19 | |||||||||||||
3Q19 | 2Q19 | 3Q18 | vs | Hydrocarbon production (kboe/d) | 9M19 | 9M18 | vs | |||||||
3Q18 | 9M18 | |||||||||||||
539 | 559 | 371 | +45% | iGRP (kboe/d) | 539 | 353 | +53% | |||||||
73 | 73 | 36 | x2 | Liquids (kb/d) |
71 | 36 | +94% | |||||||
2,745 | 2,848 | 1,879 | +46% | Gas (Mcf/d) |
2,736 | 1,736 | +58% | |||||||
3Q19 | 9M19 | |||||||||||||
3Q19 | 2Q19 | 3Q18 | vs | Liquefied Natural Gas in Mt | 9M19 | 9M18 | vs | |||||||
3Q18 | 9M18 | |||||||||||||
7.4 | 8.5 | 6.2 | +20% | Overall LNG sales | 23.7 | 13.9 | +71% | |||||||
4.2 | 4.1 | 2.8 | +50% | incl. Sales from equity production* |
12.0 | 7.7 | +55% | |||||||
5.5 | 6.7 | 5.1 | +8% | incl. Sales by Total from equity production and third party purchases |
18.3 | 10.5 | +75% |
* The Groups equity production may be sold by Total or by the joint ventures.
Production growth compared to a year ago is essentially linked to the start-up of production from the Ichthys project in Australia in the third quarter 2018 and the successive start-ups of trains at Yamal LNG in Russia.
Total LNG sales increased by 20% compared to last year for the third quarter thanks to the ramp-up of Yamal LNG and Ichthys as well as the start-up of the first train at Cameron LNG in the United States.
Total LNG sales increased by 71% in the first nine months 2019 for the same reasons as well as the acquisition of the portfolio of LNG contracts from Engie in the third quarter 2018.
> Results
3Q19 | 9M19 | |||||||||||||
3Q19 | 2Q19 | 3Q18 | vs | In millions of dollars | 9M19 | 9M18 | vs | |||||||
3Q18 | 9M18 | |||||||||||||
574 | 429 | 697 | -18% | Adjusted net operating income* | 1,595 | 1,743 | -8% | |||||||
206 | 195 | 324 | -36% | including income from equity affiliates |
656 | 802 | -18% | |||||||
641 | 442 | 407 | +57% | Organic investments | 1,576 | 1,131 | +39% | |||||||
3,375 | 159 | 3,341 | +1% | Net acquisitions | 3,934 | 3,047 | +29% | |||||||
4,015 | 601 | 3,748 | +7% | Net investments | 5,509 | 4,178 | +32% | |||||||
848 | 869 | 553 | +53% | Operating cash flow before working capital changes ** | 2,327 | 1,438 | +62% | |||||||
401 | 641 | (164) | ns | Cash flow from operations ** | 1,934 | 162 | x11.9 |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.
Driven by strong LNG sales growth, operating cash flow before working capital changes for the iGRP segment increased by 53% in the third quarter 2019 and 62% in the first nine months 2019.
Adjusted net operating income was 574 M$ in the third quarter 2019 and 1,595 M$ in the first nine months 2019, a decrease of 18% and 8%, respectively, compared to last year, impacted by lower gas prices in Europe and Asia in particular as well as higher DD&A expenses on new projects.
5
Downstream (Refining & Chemicals and Marketing & Services)
> Results
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
In millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||
1,365 | 1,138 | 1,412 | -3% | Adjusted net operating income* |
3,602 | 3,798 | -5% | |||||||
569 | 557 | 540 | +5% | Organic investments |
1,446 | 1,575 | -8% | |||||||
52 | 38 | (75) | ns | Net acquisitions |
(41) | (458) | ns | |||||||
622 | 595 | 465 | +34% | Net investments |
1,405 | 1,117 | +26% | |||||||
1,995 | 1,432 | 1,754 | +14% | Operating cash flow before working capital changes ** |
5,113 | 4,768 | +7% | |||||||
3,058 | 2,269 | 2,090 | +46% | Cash flow from operations ** |
5,021 | 2,761 | +82% |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.
Refining & Chemicals
> Refinery throughput and utilization rates*
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
9M19 | 9M18 | 9M19 vs 9M18 | ||||||||
1,719 | 1,595 | 1,953 | -12% | Total refinery throughput (kb/d) |
1,725 | 1,840 | -6% | |||||||
503 | 447 | 654 | -23% | France |
514 | 616 | -17% | |||||||
757 | 679 | 795 | -5% | Rest of Europe |
753 | 737 | +2% | |||||||
459 | 469 | 504 | -9% | Rest of world |
458 | 487 | -6% | |||||||
82% | 77% | 92% | Utlization rate based on crude only** |
83% | 87% |
* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.
Refinery throughput volumes:
● | decreased by 12% in the third quarter 2019 year-on-year, notably as a result of the start of planned maintenance at Normandy and the partial contribution of Grandpuits in France this quarter. |
● | decreased by 6% in the first nine months 2019 year-on-year for the same reasons. |
> Results
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
In millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||
952 | 715 | 938 | +1% | Adjusted net operating income* |
2,423 | 2,479 | -2% | |||||||
354 | 353 | 295 | +20% | Organic investments |
947 | 989 | -4% | |||||||
19 | (58) | (6) | ns | Net acquisitions |
(163) | (313) | ns | |||||||
374 | 295 | 289 | +29% | Net investments |
785 | 676 | +16% | |||||||
1,373 | 806 | 1,174 | +17% | Operating cash flow before working capital changes ** |
3,283 | 3,112 | +5% | |||||||
1,575 | 1,658 | 1,338 | +18% | Cash flow from operations ** |
2,695 | 1,228 | x2.2 |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.
Adjusted net operating income for the Refining & Chemicals segment increased by 1% to 952 M$ in the third quarter 2019, benefiting notably from more favorable petrochemical margins in Europe, and decreased by 2% in the first nine months 2019 to 2,423 M$.
Operating cash flow before working capital changes was 1,373 M$ in the third quarter 2019 and 3,283 M$ in the first nine months 2019, an increase of 17% and 5%, respectively, compared to 2018.
6
Marketing & Services
> Petroleum product sales
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
Sales in kb/d* | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||
1,848 |
1,860 | 1,818 | +2% | Total Marketing & Services sales |
1,848 | 1,806 | +2% | |||||||
1,034 |
1,004 | 1,024 | +1% | Europe |
1,017 | 1,006 | +1% | |||||||
814 |
856 | 794 | +3% | Rest of world |
831 | 800 | +4% |
* Excludes trading and bulk refining sales
Sales of petroleum products increased by 2% in the third quarter 2019 and the first nine months 2019, due to the development of activities in the African and American regions, notably Mexico and Brazil.
> Results
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
In millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||
413 | 423 | 474 | -13% | Adjusted net operating income* |
1,179 | 1,319 | -11% | |||||||
215 | 204 | 245 | -12% | Organic investments |
498 | 586 | -15% | |||||||
33 | 96 | (69) | ns | Net acquisitions |
121 | (145) | ns | |||||||
248 | 300 | 176 | +41% | Net investments |
620 | 441 | +41% | |||||||
622 | 626 | 580 | +7% | Operating cash flow before working capital changes ** |
1,830 | 1,656 | +10% | |||||||
1,483 | 611 | 752 | +97% | Cash flow from operations ** |
2,326 | 1,533 | +52% |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases
Adjusted net operating income was 413 M$ in the third quarter 2019, a decrease of 13%, and 1,179 M$ for the first nine months of 2019.
Operating cash flow before working capital changes was 622 M$ in the third quarter 2019 and 1,830 M$ in the first nine months 2019, an increase of 7% and 10%, respectively, compared to 2018.
Group results
> Adjusted net operating income from business segments
Adjusted net operating income from the business segments was:
● | 3,673 M$ in the third quarter 2019, down 19% compared to last year due to lower Brent and natural gas prices. |
● | 10,675 M$ in the first nine months 2019, down 12% compared to last year for the same reasons. |
> Adjusted net income (Group share)
Adjusted net income (Group share) was:
● | 3,017 M$ in the third quarter 2019, down 24% compared to last year. This decrease reflects the decrease in the adjusted net operating income of the segments. |
● | 8,663 M$ in the first nine months 2019, down 17% compared to last year for the same reasons and the increase in the net cost of net debt compared to a year ago mainly due to the rise in U.S. dollar interest rates. |
Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value11.
Total net income adjustments12 were:
● | -217 M$ in the third quarter 2019. |
● | 4 M$ in the first nine months 2019. |
The effective tax rate for the Group was:
● | 30.7% in the third quarter 2019, compared to 38.6% the same quarter last year, mainly due to the lower tax rate for Exploration & Production segment linked to the lower hydrocarbon prices. |
● | 34.9% in the first nine months 2019, compared to 38.9% the first nine months 2018, for the same reasons. |
11 | Adjustment items shown on page 11. |
12 | Details shown on page 11 and in the annex to the financial statements. |
7
> Adjusted fully-diluted earnings per share
Adjusted earnings per share was:
● | $1.13 in the third quarter 2019, a decrease of 23%, calculated on the basis of a weighted average of 2,614 million fully-diluted shares, compared to $1.47 in the third quarter 2018. |
● | $3.20 in the first nine months 2019, a decrease of 18%, calculated on the basis of a weighted average of 2,621 million fully-diluted shares, compared to $3.88 in the first nine months 2018. |
In the framework of the shareholder return policy announced in February 2018, the Group has continued to buy back shares, including:
● | the buyback of 16.1 million shares, representing all shares issued in 2019 under the scrip dividend option until it was terminated. |
● | the buyback of additional shares: 8 million shares repurchased in the third quarter 2019 for 0.40 B$ and 21.7 million shares in the first nine months 2019 for 1.15 B$ as part of the 5 B$ buyback program for 2018-20. |
The number of fully-diluted shares was 2,614 million on September 30, 2019.
> Acquisitions - asset sales
Acquisitions were:
● | 4,429 M$ in the third quarter 2019, linked notably to the acquisition of Anadarkos interest in Mozambique LNG. |
● | 5,713 M$ in the first nine months 2019, linked notably to the elements above as well as to the signing of the acquisition of a 10% stake in the Arctic LNG 2 project in Russia and the acquisition of Chevrons interest in the Danish Underground Consortium in Denmark. |
Asset sales were:
● | 1,007 M$ in the third quarter 2019, including notably the payment received with the take-over of the Toshiba LNG portfolio in the United States. |
● | 1,582 M$ in the first nine months 2019, linked notably to the elements above and the sale of the interest in the Wepec refinery in China, the sale of the Groups interest in the Hazira terminal in India and polystyrene activities in China. |
> Net cash flow
Net cash flow13 for the Group was:
● | 135 M$ in the third quarter 2019, a decrease of 745 M$ from last year due to increased net acquisitions. |
● | 6,355 M$ in the first nine months 2019, an increase of 358 M$ from last year due to higher operating cash flow before working capital changes partially offset by higher net acquisitions. |
> Profitability
The return on equity was 10.3% for the twelve months ended September 30, 2019.
In millions of dollars | October 1, 2018 September 30, 2019 |
July 1, 2018 June 30, 2019 |
October 1, 2017 September 30, 2018 | |||
Adjusted net income
|
12,104
|
13,125
|
13,679
| |||
Average adjusted shareholders equity
|
117,037
|
117,787
|
114,729
| |||
Return on equity (ROE)
|
10.3%
|
11.1%
|
11.9%
|
The return on average capital employed was 9.6% for the twelve months ended September 30, 2019.
In millions of dollars | October 1, 2018 September 30, 2019 |
July 1, 2018 June 30, 2019 |
October 1, 2017 September 30, 2018 | |||
Adjusted net operating income
|
14,094
|
15,087
|
15,295
| |||
Average capital employed
|
146,222
|
145,247
|
138,242
| |||
ROACE
|
9.6%
|
10.4%
|
11.1%
|
Total S.A. accounts
Net income for Total S.A., the parent company, was 5,934 million euros in the first nine months 2019, compared to 4,814 million euros a year ago.
13 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
8
2019 Sensitivities*
Change |
Estimated impact on net operating income
|
Estimated impact on
| ||||
Dollar
|
+/- 0.1 $ per
|
-/+ 0.1 B$
|
~0 B$
| |||
Average liquids price**
|
+/- 10 $/b
|
+/- 2.7 B$
|
+/- 3.2 B$
| |||
Variable cost margin, European refining (VCM) |
+/- 10 $/t
|
+/- 0.5 B$
|
+/- 0.6 B$
|
* Sensitivities are revised once per year upon publication of the previous years fourth quarter results. Sensitivities are estimates based on assumptions about the Groups portfolio in 2019. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $- sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals.
** In a 60 $/b Brent environment.
Summary and outlook
Since the start of the fourth quarter 2019, Brent has traded around 60 $/b on average. The environment remains volatile, with uncertainty about hydrocarbon demand growth related to the outlook for global economic growth and in a context of geopolitical instability.
The Group maintains its cost discipline and the organic pre-dividend cash flow breakeven will remain below 30 $/b. The Group continues its cost reduction program with more than 0.5 B$ of additional savings this year to reach cumulative savings of more than 4.7 B$ by the end of 2019. It will continue its 5 B$ asset sale program over the 2019-20 period (1.6 B$ was completed at the end of September) and 2019 net investments should be less than 18 B$.
Production growth should reach 9% in 2019, thanks to ramp-ups on projects started in 2018, start-ups since the beginning of the year, including Kaombo Sul in Angola and Culzean in the UK North Sea, Johan Sverdrup in Norway, and the upcoming Iara 1 in Brazil.
The Group will continue to implement its strategy for profitable growth on the integrated gas and low carbon electricity chains, and the iGRP segment will benefit in 2020 from the start-ups of Yamal LNG train 4 as well as Cameron LNG trains 2&3.
Despite volatile European refining margins, the Downstream is well positioned to generate cash flow close to 7 B$ in 2019.
Taking into account the stronger visibility on the Groups future, the Board of Directors decided on September 23, 2019, to accelerate dividend growth for the coming years with guidance of increasing the dividend by 5-6% per year. In addition, the Group will continue to buy back shares within the framework of its 5 B$ share buyback program over the 2018-20 period at 60 $/b with the cumulative projected amount of 3.25 B$ by the end of 2019.
● ● ●
To listen to the presentation by CFO Jean-Pierre Sbraire today at 13:00 (London time) please log on to total.com or call +44 (0) 207 192 8000 in Europe or +1 631 510 7495 in the United States (code: 2076368). To listen to the replay, please consult the website or call +44 (0) 333 300 9785 in Europe or +1 917 677 7532 in the United States (code: 2076368).
* * * * *
Total contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investors Relations: +44 (0) 207 719 7962 l ir@total.com
9
Operating information by segment
> Group production (Exploration & Production + iGRP)
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
Combined liquids and gas production by region (kboe/d) |
9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||||||||||
1,004 | 997 | 910 | +10% | Europe and Central Asia | 997 | 879 | +13% | |||||||||||||||||
733 | 686 | 676 | +8% | Africa | 705 | 674 | +5% | |||||||||||||||||
720 | 703 | 687 | +5% | Middle East and North Africa | 703 | 669 | +5% | |||||||||||||||||
363 | 358 | 399 | -9% | Americas | 364 | 390 | -7% | |||||||||||||||||
221 | 214 | 132 | +68% | Asia-Pacific | 212 | 129 | +64% | |||||||||||||||||
3,040 | 2,957 | 2,804 | +8% | Total production | 2,981 | 2,742 | +9% | |||||||||||||||||
698 | 750 | 645 | +8% | includes equity affiliates |
719 | 661 | +9% | |||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
Liquids production by region (kb/d) | 9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||||||||||
367 | 328 | 341 | +8% | Europe and Central Asia | 349 | 324 | +8% | |||||||||||||||||
583 | 549 | 528 | +10% | Africa | 558 | 514 | +8% | |||||||||||||||||
562 | 546 | 538 | +4% | Middle East and North Africa | 543 | 526 | +3% | |||||||||||||||||
163 | 160 | 186 | -12% | Americas | 167 | 180 | -8% | |||||||||||||||||
44 | 41 | 18 | x2.4 | Asia-Pacific | 41 | 14 | x3 | |||||||||||||||||
1,720 | 1,624 | 1,611 | +7% | Total production | 1,658 | 1,558 | +6% | |||||||||||||||||
210 | 225 | 221 | -5% | includes equity affiliates |
217 | 252 | -14% | |||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
Gas production by region (Mcf/d) | 9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||||||||||
3,431 | 3,639 | 3,069 | +12% | Europe and Central Asia | 3,498 | 2,993 | +17% | |||||||||||||||||
768 | 703 | 776 | -1% | Africa | 754 | 801 | -6% | |||||||||||||||||
866 | 866 | 830 | +4% | Middle East and North Africa | 879 | 793 | +11% | |||||||||||||||||
1,124 | 1,107 | 1,198 | -6% | Americas | 1,111 | 1,183 | -6% | |||||||||||||||||
1,210 | 1,162 | 684 | +77% | Asia-Pacific | 1,157 | 695 | +66% | |||||||||||||||||
7,399 | 7,477 | 6,557 | +13% | Total production | 7,399 | 6,465 | +14% | |||||||||||||||||
2,635 | 2,868 | 2,313 | +14% | includes equity affiliates |
2,718 | 2,199 | +24% |
> Downstream (Refining & Chemicals and Marketing & Services)
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
Petroleum product sales by region (kb/d) | 9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||
1,999 | 2,018 | 2,030 | -2% | Europe | 2,013 | 1,958 | +3% | |||||||||
677 | 751 | 760 | -11% | Africa | 695 | 722 | -4% | |||||||||
920 | 846 | 979 | -6% | Americas | 868 | 847 | +2% | |||||||||
541 | 536 | 569 | -5% | Rest of world | 564 | 631 | -11% | |||||||||
4,136 | 4,152 | 4,338 | -5% | Total consolidated sales | 4,141 | 4,158 | - | |||||||||
544 | 535 | 581 | -6% | Includes bulk sales |
545 | 569 | -4% | |||||||||
1,745 | 1,757 | 1,939 | -10% | Includes trading |
1,748 | 1,783 | -2% |
10
Adjustment items to net income (Group share)
3Q19 | 2Q19 | 3Q18 | In millions of dollars | 9M19 | 9M18 | |||||||
(156) | (56) | (152) | Special items affecting net income (Group share) | (226) | (705) | |||||||
- | - | 89 | Gain (loss) on asset sales |
- | (14) | |||||||
(20) | (31) | (39) | Restructuring charges |
(53) | (106) | |||||||
(160) | (57) | (88) | Impairments |
(217) | (336) | |||||||
24 | 32 | (114) | Other |
44 | (249) | |||||||
(71) | (28) | 160 | After-tax inventory effect : FIFO vs. replacement cost | 289 | 632 | |||||||
10 | (47) | (9) | Effect of changes in fair value | (59) | (8) | |||||||
(217) | (131) | (1) | Total adjustments affecting net income | 4 | (81) |
Investments - Divestments
3Q19 | 2Q19 | 3Q18 | 3Q19 3Q18 |
In millions of dollars | 9M19 | 9M18 | 9M19 9M18 |
|||||||||||||
3,296 | 3,028 | 2,568 | +28% | Organic investments ( a ) | 9,107 | 7,967 | +14 | % | ||||||||||||
152 | 185 | 156 | -3% | capitalized exploration |
569 | 405 | +41 | % | ||||||||||||
242 | 370 | 147 | +65% | increase in non-current loans |
742 | 458 | +62 | % | ||||||||||||
(61) | (254) | (688) | ns | repayment of non-current loans, excluding organic loan repayment from equity affiliates* |
(449) | (1,685) | ns | |||||||||||||
(109) | - | - | ns | change in debt from renewable projects (Group share) |
(109) | - | ns | |||||||||||||
4,429 | 614 | 3,228 | +37% | Acquisitions ( b ) | 5,713 | 7,343 | -22 | % | ||||||||||||
1,007 | 212 | 209 | x4.8 | Asset sales ( c ) | 1,582 | 3,071 | -48 | % | ||||||||||||
105 | - | - | ns | change in debt from renewable projects (partner share) | 105 | - | ns | |||||||||||||
- | - | (621) | ns | Other transactions with non-controlling interests ( d ) | - | (621) | ns | |||||||||||||
6,718 | 3,430 | 6,208 | +8% | Net investments ( a + b - c - d ) | 13,238 | 12,860 | +3 | % | ||||||||||||
(101) | (99) | - | ns | Organic loan repayment from equity affiliates* ( e ) | (200) | - | ns | |||||||||||||
214 | - | - | ns | Change in debt from renewable projects ** ( f ) | 214 | - | ns | |||||||||||||
6,831 | 3,331 | 5,587 | +22% | Cash flow used in investing activities ( a + b - c + e + f ) | 13,252 | 12,239 | +8 | % |
* Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations.
** Change in debt from renewable projects (Group share and partner share).
11
Cash flow
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 |
In millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 |
|||||||||||||
7,385 | 7,208 | 7,507 | -2% | Operating cash flow before working capital changes w/o financials charges (DACF) | 21,129 | 19,972 | +6 | % | ||||||||||||
(532) | (501) | (419) | ns | Financial charges |
(1,536) | (1,115) | ns | |||||||||||||
6,853 | 6,707 | 7,088 | -3% | Operating cash flow before working capital changes ( a ) | 19,593 | 18,857 | +4 | % | ||||||||||||
1,523 | (317) | (1,578) | ns | (Increase) decrease in working capital |
(1,764) | (5,656) | ns | |||||||||||||
(69) | (40) | 226 | ns | Inventory effect |
457 | 862 | -47 | % | ||||||||||||
(101) | (99) | - | ns | Organic loan repayment from equity affiliates |
(200) | - | ns | |||||||||||||
8,206 | 6,251 | 5,736 | +43% | Cash flow from operations | 18,086 | 14,063 | +29 | % | ||||||||||||
3,296 | 3,028 | 2,568 | +28% | Organic investments ( b ) | 9,107 | 7,967 | +14 | % | ||||||||||||
3,557 | 3,679 | 4,520 | -21% | Free cash flow after organic investments, w/o net asset sales ( a - b ) | 10,486 | 10,890 | -4 | % | ||||||||||||
6,718 | 3,430 | 6,208 | +8% | Net investments ( c ) | 13,238 | 12,860 | +3 | % | ||||||||||||
135 | 3,277 | 880 | -85% | Net cash flow ( a - c ) | 6,355 | 5,997 | +6 | % |
Gearing ratio*
In millions of dollars | 09/30/2019 | 06/30/2019 | 09/30/2018 | |||||
Current borrowings |
14,631 | 16,221 | 15,180 | |||||
Net current financial assets |
(3,012) | (3,110) | (2,884) | |||||
Net financial assets classified as held for sale |
- | - | (14) | |||||
Non-current financial debt |
47,923 | 45,394 | 41,088 | |||||
Hedging instruments of non-current debt |
(767) | (771) | (1,129) | |||||
Cash and cash equivalents |
(27,454) | (26,723) | (25,252) | |||||
Net debt (a) |
31,321 | 31,011 | 26,989 | |||||
Shareholders equity - Group share |
114,994 | 116,862 | 118,193 | |||||
Non-controlling interests |
2,319 | 2,362 | 2,430 | |||||
Shareholders equity (b) |
117,313 | 119,224 | 120,623 | |||||
Net-debt-to-capital ratio = a / (a + b) |
21.1% | 20.6% | 18.3% | |||||
Net-debt-to-capital ratio excluding leases |
17.2% | 16.7% | 17.3% |
*The net-debt-to-capital ratios on September 30, 2019 and June 30, 2019 include the impact of the new IFRS 16 rule, effective January 1, 2019.
12
Return on average capital employed
> | Twelve months ended September 30, 2019 |
In millions of dollars | Exploration & Production |
Integrated Gas, Renewables & |
Refining & Chemicals |
Marketing & Services |
Group | |||||||||
Adjusted net operating income |
7,454 | 2,271 | 3,323 | 1,512 | 14,094 | |||||||||
Capital employed at 09/30/2018* |
92,104 | 36,587 | 12,884 | 6,841 | 145,298 | |||||||||
Capital employed at 09/30/2019* |
88,560 | 41,516 | 11,658 | 7,570 | 147,145 | |||||||||
ROACE |
8.3% | 5.8% | 27.1% | 21.0% | 9.6% | |||||||||
> Twelve months ended June 30, 2019
| ||||||||||||||
In millions of dollars | Exploration & Production |
Integrated Gas, Renewables & Power |
Refining & Chemicals |
Marketing & Services |
|
Group | ||||||||
Adjusted net operating income |
8,159 | 2,394 | 3,309 | 1,573 | 15,087 | |||||||||
Capital employed at 06/30/2018* |
92,296 | 30,861 | 12,939 | 7,040 | 141,878 | |||||||||
Capital employed at 06/30/2019* |
90,633 | 37,290 | 12,300 | 8,535 | 148,617 | |||||||||
ROACE |
8.9% | 7.0% | 26.2% | 20.2% | 10.4% |
* At replacement cost (excluding after-tax inventory effect).
13
This press release presents the results for the third quarter and first nine months of 2019 from the consolidated financial statements of TOTAL S.A. as of September 30, 2019). The limited review procedures by the Statutory Auditors are underway. The notes to these consolidated financial statements (unaudited) are available on the TOTAL website total.com
This document may contain forward-looking information on the Group (including objectives and trends), as well as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business, strategy and plans of TOTAL.
Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, changes in regulations including environmental and climate, currency fluctuations, as well as economic and political developments and changes in business conditions. Certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Further information on factors, risks and uncertainties that could affect the Groups business, financial condition, including its operating income and cash flow, reputation or outlook is provided in the most recent Registration Document, the French language version of which is filed by the Company with the French Autorité des Marchés Financiers and annual report on Form 20-F/A filed with the United States Securities and Exchange Commission (SEC).
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. In addition to IFRS measures, certain alternative performance indicators are presented, such as performance indicators excluding the adjustment items described below (adjusted operating income, adjusted net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE), gearing ratio and operating cash flow before working capital changes. These indicators are meant to facilitate the analysis of the financial performance of TOTAL and the comparison of income between periods. They allow investors to track the measures used internally to manage and measure the performance of the Group.
These 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 price differentials 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 an adjustment item reflects, for some transactions, differences between internal measures of performance used by TOTALs management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, whose 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, excluding the effect of changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar (-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.
Cautionary Note to U.S. Investors The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this press release, such as potential reserves or resources, that the SECs guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F/A, File N° 1-10888, available from us at 2, place Jean Millier Arche Nord Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SECs website sec.gov.
14
EXHIBIT 99.14
Press Release
Total announces the third 2019 interim dividend of
0.68/share, an increase of 6% compared to 2018
Paris, October 30, 2019 On October 29, 2019, the Board of Directors decided the distribution of the third 2019 interim dividend at an amount of 0.68/share, i.e. an increase of 6% compared to the 2018 interim and final dividends.
This decision reflects the immediate implementation of the policy announced on September 24, 2019, to accelerate dividend growth in the coming years, with a guidance of increasing the dividend by 5 to 6% per year. It demonstrates the Boards confidence in the Groups ability to deliver profitable and sustainable growth in the coming years.
This interim dividend will be detached and paid according to the following timetable:
Shareholders | ADS holders | |||
Ex-dividend date |
March 30, 2020 | March 26, 2020 | ||
Payment date |
April 1st, 2020 | April 21, 2020 |
About Total
Total is a major energy player, which produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
* * * * *
Total contacts
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investors Relations: +44 (0)207 719 7962 l ir@total.com
Cautionary note
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.
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