EX-99.6 7 ex996.htm CREATION OF THE INTEGRATED GAS, RENEWABLES & POWER BUSINESS SEGMENT...

EXHIBIT 99.6

 

 

 

 

 

April 5, 2019

 

Creation of the Integrated Gas, Renewables & Power business segment

Restatement of key figures of the business segments for the years 2017 and 2018

 

The profitable growth in the gas and low carbon electricity integrated value chains is one of the key axes of Total’s strategy. In order to give more visibility to these businesses, a new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2019 and organized around four business segments: Exploration & Production (EP), Integrated Gas, Renewables & Power segment (iGRP), Refining & Chemicals (RC) and Marketing & Services (MS).

 

The iGRP segment spearheads Total’s ambitions in integrated gas (including LNG, liquefied natural gas) and low carbon electricity businesses. It consists of the upstream and midstream LNG activity that was previously reported in the EP segment (refer to the indicative list of assets in the Annex) and the activity previously reported in the Gas Renewables & Power segment. The new EP segment is adjusted accordingly.

 

The RC and MS segments are not affected.

 

The tables below show the key figures for the years 2017 and 2018 restated in order to reflect these changes.

 

 

Group hydrocarbon production

 

2017

2018

1Q18

2Q18

3Q18

4Q18

Group production (kboe/d)

2,566

2,775

2,703

2,717

2,804

2,876

EP (kboe/d)*

2,165

2,394

2,359

2,375

2,433

2,408

iGRP (kboe/d)*

401

381

344

342

371

468

Group production (kboe/d)

2,566

2,775

2,703

2,717

2,804

2,876

Oil (including bitumen) (kb/d)

1,167

1,378

1,297

1,400

1,431

1,382

Gas (including Condensates and associated LPG) (kboe/d)

1,398

1,397

1,406

1,317

1,373

1,493

Group production (kboe/d)

2,566

2,775

2,703

2,717

2,804

2,876

Liquids (kb/d)

1,346

1,566

1,481

1,582

1,611

1,589

Gas (Mcf/d)

6,662

6,599

6,664

6,176

6,557

6,994

EXPLORATION & PRODUCTION

Hydrocarbon production

2017

2018

1Q18

2Q18

3Q18

4Q18

EP (kboe/d)

2,229

2,394

2,359

2,375

2,433

2,408

Liquids (kb/d)

1,310

1,527

1,445

1,544

1,575

1,541

Gas (Mcf/d)

4,995

4,724

4,976

4,536

4,678

4,710

* 2017 data corrected since publication on April 5, 2019

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EP - Exploration-Production (redefined scope)

> Production

Hydrocarbon production

2017*

2018

1Q18

2Q18

3Q18

4Q18

EP (kboe/d)

2,165

2,394

2,359

2,375

2,433

2,408

Liquids (kb/d)

1,298

1,527

1,445

1,544

1,575

1,541

Gas (Mcf/d)

4,728

4,724

4,976

4,536

4,678

4,710

* 2017 data corrected since publication on April 5, 2019

    

> Key financial metrics

In millions of dollars

2017

2018

1Q18

2Q18

3Q18

4Q18

Adjusted operating income

6,208

13,408

2,902

3,726

3,947

2,833

Effective tax rate

40.5%

46.2%

48.7%

46.6%

47.5%

41.2%

Adjusted net operating income

4,541

8,547

1,817

2,315

2,439

1,976

including income from equity affiliates

827

1140

228

327

316

269

Investments

10,005

13,789

5,545

2,612

2,472

3,160

Divestments

1,793

3,674

2,176

466

494

538

Organic investments

9,110

7,953

1,798

1,785

1,605

2,765

Operating cash flow before working capital changes *

12,758

17,832

3,921

4,800

5,200

3,911

Cash flow from operations *

10,719

18,537

3,322

4,474

4,431

6,310

* Excluding financial charges

 

Note: For definitions, refer to the Group quarterly result press release

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iGRP - Integrated Gas, Renewables & Power

> Production and LNG sales

Hydrocarbon production

2017*

2018

1Q18

2Q18

3Q18

4Q18

iGRP (kboe/d)

401

381

344

342

371

468

Liquids (kb/d)

48

40

36

38

36

48

Gas (Mcf/d)

1,935

1,875

1,688

1,640

1,879

2,284

* 2017 data corrected since publication on April 5, 2019

Liquefied natural gas (Mt)

2017

2018

1Q18

2Q18

3Q18

4Q18

Overall LNG sales

15.6

21.8

3.8

3.9

6.2

7.9

incl. sales from equity production**

11.2

11.1

2.5

2.5

2.8

3.3

incl. sales by Total from equity production and
third party

7.6

17.1

2.6

2.7

5.1

6.7

** Equity production can be sold either by Total or by JV

 

 

> Key financial metrics

In millions of dollars

2017

2018

1Q18

2Q18

3Q18

4Q18

Adjusted operating income

1,435

1,174

235

217

373

349

Adjusted net operating income

1,929

2,419

481

565

697

676

including income from equity affiliates

804

1,249

228

250

324

447

Investments

3,594

5,032

575

447

3,325

685

Divestments

198

2,209

153

439

198

1,419

Organic investments

2,553

1,745

336

388

407

614

Operating cash flow before working capital changes *

2,289

2,055

393

492

553

617

Cash flow from operations *

3,157

596

68

258

(164)

434

* Excluding financial charges

 

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ANNEX

 

Indicative list of assets reported in EP segment until end-2018
and in iGRP segment from January 1, 2019 onwards

 

  

Country

Asset

% equity

Angola

Angola LNG

13.60%

Australia

Gladstone LNG

27.50%

Australia

Ichthys

26.00%

Indonesia

Mahakam

Until end 2017 (Mahakam license expired)

Nigeria

Nigeria LNG

15.00%

Nigeria

OML 58

40.00%

Norway

Snohvit

18.40%

Oman

Oman LNG

5.54%

Oman

Qalhat LNG

2.04%. indirect participation through Oman LNG

Papua New Guinea

Papua LNG

40.10%

Qatar

Qatargas 1 Upstream

20.00%

Qatar

Qatargas 1 Downstream

10.00%

Qatar

Qatargas 2 Train 5

16.70%

Russia

Arctic LNG 2*

10.00% direct working interest (21.64 % including indirect interest** and considering a 60% participation of Novatek in the project)

Russia

Yamal LNG

20.02% direct working interest (29.72% including indirect interest**)

United Arab Emirates

ADNOC LNG

5.00%

USA

Barnett Shale ***

90.92% in average

Yemen

Yemen LNG

39.62%

 

* Total signed definitive agreements for entry into Arctic LNG 2 on the 5th of March 2019

** The iGRP segment includes the interests that Total holds in Arctic LNG 2 and Yamal LNG projects through its 19.4% ownership in Novatek. The other Novatek assets remain included in the EP figures.

*** Barnett shale consolidated in iGRP reporting along with the other Group’s LNG assets, such as the Group’s equity in Cameron LNG or Tellurian Inc., which were already reported in GRP end-2018

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The restated data presented herein have been derived from TOTAL’s internal reporting system and have not been audited by TOTAL’s statutory auditors. Such related financial data are presented solely for information purposes. To the extent permitted by law, TOTAL S.A. disclaims all liability from the use of the restated financial data.

 

The list of assets in the Annex is presented for indicative purposes, and mentions the assets previously reported in the EP reporting segment, which are, as from January 1, 2019, reported in the iGRP reporting segment. This list refers to assets or contractual rights which may group the contributions of multiple subsidiaries and/or consolidated entities.

 

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). 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 TOTAL’s 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 Group’s 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.

 

Additional information concerning the risk factors and uncertainties that may have an impact on the Group's financial results or activities is available in the most recent versions of the Registration Document (Document de référence) filed with the French Autorité des marchés financiers (AMF) and the Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (SEC).

 

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