Total: Fourth Quarter and Full-Year 2018 Results

Total: Fourth Quarter and Full-Year 2018 Results

Total

Total (Paris:FP) (LSE:TTA) (NYSE:TOT):

    4Q18  

Change
vs 4Q17

 

  2018  

Change
vs 2017

 

       
Adjusted net income (Group share)1
- in billions of dollars (B$) 3.2 +10% 13.6 +28%
- in dollars per share 1.17 +6% 5.05 +23%
 
DACF1 (B$) 6.1 -2% 26.1 +18%
Cash flow from operations (B$) 10.6 +24% 24.7 +11%
                 
 
Net income (Group share) of 11.4 B$ in 2018, a 33% increase compared to 2017
Net-debt-to-capital ratio of 15.5% at December 31, 2018
Hydrocarbon production of 2,775 kboe/d in 2018, an increase of 8.1% compared to 2017
Fourth quarter 2018 dividend set at 0.64 €/share with ex-dividend date of June 11, 2019

Total’s Board of Directors met on February 6, 2019, and approved the Group’s 2018 accounts. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

“Benefiting from the rise of oil prices to $71/b on average in 2018 compared to $54/b in 2017, while remaining volatile, the Group reported adjusted net income of $13.6 billion in 2018, an increase of 28%, a return on average capital employed close to 12%, the highest among the majors, and a pre-dividend breakeven below 30 $/b.
These excellent results reflect the strong growth of more than 8% for the Group’s hydrocarbon production, which reached a record level of 2.8 Mboe/d in 2018 and led to a 71% increase in Exploration & Production’s adjusted net operating income. The year was highlighted by the start-up of Ichthys in Australia, Yamal LNG in Russia, deep-water projects Kaombo North in Angola and Egina in Nigeria, as well as the counter-cyclical acquisitions of Maersk Oil and new offshore licenses in the UAE.
In addition, the Group maintained its financial discipline. Net investments were $15.6 billion in 2018, in line with its objective, and $4.2 billion in cost reduction was achieved. Debt-adjusted cash flow (DACF) was $26 billion in 2018, driven largely by the 31% increase in cash flow from Exploration & Production. The Group’s balance sheet was solid with a gearing ratio of 15.5%, below the target limit of 20%.
The Group is continuing to expand along the value chain of integrated gas and low-carbon electricity. With its acquisition of Engie’s LNG assets Total is the second largest publicly-traded player in the LNG business, and its position will be strengthened with the 2019 start-up of the Cameron LNG project. In addition, the Group accelerated its growth in low-carbon electricity, notably with the acquisition of Direct Energie.
In an environment of lower European refining margins, the Downstream relied on the availability of its units and the diversity of its portfolio to generate $6.5 billion of cash flow and profitability of more than 25%. The Group is continuing to implement its strategy for growth in petrochemicals by launching projects in the US, Saudi Arabia, South Korea and Algeria. Total has also continued to expand Marketing & Services in fast-growing areas, notably in Mexico, Brazil and Angola.
Conforming to the shareholder return policy announced in February 2018, the Group increased the 2018 dividend by 3.2% and bought back $1.5 billion of its shares in 2018. Given the solid financial position, which is benefiting from growing cash flow, the Board of Directors confirmed the shareholder return policy for 2019. It plans to increase the interim dividend by 3.1% to 0.66 euros per share, end the scrip dividend option following the general assembly meeting, and continue the share buyback policy in the amount of $1.5 billion in a 60 $/b environment.”

Key figures2

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars, except effective tax rate,

earnings per share and number of shares

  2018   2017   2018

vs

2017

3,885   4,548   3,359   +16%   Adjusted net operating income from business segments   15,997   11,936   +34%
2,476   2,864   1,805   +37%   Exploration & Production   10,210   5,985   +71%
176 272 232 -24% Gas, Renewables & Power 756 485 +56%
900 938 886 +2% Refining & Chemicals 3,379 3,790 -11%
333   474   436   -24%   Marketing & Services   1,652   1,676   -1%
893   865   731   +22%   Contribution of equity affiliates to adjusted net income   3,161   2,574   +23%
38.1%   38.6%   31.8%       Group effective tax rate3   38.7%   31.1%    
3,164   3,958   2,872   +10%   Adjusted net income   13,559   10,578   +28%
1.17   1.47   1.10   +6%   Adjusted fully-diluted earnings per share (dollars)4   5.05   4.12   +23%
1.02   1.26   0.94   +9%   Adjusted fully-diluted earnings per share (euros)*   4.27   3.65   +17%
2,637   2,637   2,536   +4%   Fully-diluted weighted-average shares (millions)   2,624   2,495   +5%
                             
1,132   3,957   1,021   +11%   Net income (Group share)   11,446   8,631   +33%
                             
5,190   6,484   5,103   +2%   Investments5   22,185   16,896   +31%
2,483   897   1,467   +69%   Divestments6   7,239   5,264   +38%
2,708   6,208   3,638   -26%   Net investments7   15,568   11,636   +34%
4,459   2,568   4,442   +0%   Organic investments8   12,426   14,395   -14%
211   475   107   x2   Resource acquisitions   4,493   714   x6.3
5,672   7,088   5,955   -5%   Operating cash flow before working capital changes9   24,529   21,135   +16%
6,095   7,507   6,233   -2%   Operating cash flow before working capital changes w/o financial charges (DACF)10   26,067   22,183   +18%
10,640   5,736   8,615   +24%   Cash flow from operations   24,703   22,319   +11%

* Average €-$ exchange rate: 1.1414 in the fourth quarter 2018 and 1.1810 in 2018.

Highlights since the beginning of the fourth quarter 201811

  • Started up Ichthys LNG and the third liquefaction train at Yamal LNG
  • Started up production at the Egina field in Nigeria
  • Signed MOU with Sempra Energy for development of North American LNG projects
  • Signed concession agreement with ADNOC to launch unconventional gas exploration program in Abu Dhabi
  • Sold a 4% interest in the Ichthys project in Australia
  • Acquired additional 10% interest in the Lapa field in Brazil
  • Entered fuel distribution segment in Brazil
  • Signed an agreement with Sonangol to launch a network of service stations in Angola

Analysis of business segments

Exploration & Production

> Environment – liquids and gas price realizations*

4Q18   3Q18   4Q17   4Q18

vs

4Q17

      2018   2017   2018

vs

2017

68.8   75.2   61.3   +12%   Brent ($/b)   71.3   54.2   +32%
57.2   69.5   57.6   -1%   Average liquids price ($/b)   64.2   50.2   +28%
4.94   4.96   4.23   +17%   Average gas price ($/Mbtu)   4.78   4.08   +17%
46.9   55.4   43.3   +8%   Average hydrocarbon price ($/boe)   51.0   38.7   +32%

* Consolidated subsidiaries, excluding fixed margins.

> Production

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Hydrocarbon production   2018   2017   2018

vs

2017

2,876   2,804   2,613   +10%   Combined production (kboe/d)   2,775   2,566   +8%
1,589   1,611   1,389   +14%   Liquids (kb/d)   1,566   1,346   +16%
6,994   6,557   6,832   +2%   Gas (Mcf/d)   6,599   6,662   -1%
                             
2,876   2,804   2,613   +10%   Combined production (kboe/d)   2,775   2,566   +8%
1,371 1,434 1,212 +13% Oil (including bitumen) (kb/d) 1,378 1,167 +18%
1,505   1,370   1,401   +7%   Gas (including Condensates and associated LPG) (kboe/d)   1,397   1,398   -

Hydrocarbon production was 2,876 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter 2018, an increase of 10% compared to last year, due to:

  • +12% for start-ups and ramp-ups on new projects, notably Yamal LNG, Ichthys, Fort Hills, Kaombo North and Kashagan.
  • + 2% portfolio effect. The integration of Maersk Oil, as well as the acquisition of an additional 0.5% of Novatek, were partially offset by the expiration of the Mahakam permit at the end of 2017 and the sales of Visund in Norway and Rabi in Gabon.
  • -4% for natural field declines and PSC price effect.

In 2018, hydrocarbon production was 2,775 kboe/d, an increase of more than 8% compared to last year, due to:

  • +9% for start-ups and ramp-ups on new projects, notably Yamal LNG, Moho Nord, Fort Hills, Kashagan, Kaombo Norte and Ichthys.
  • +3%portfolio effect, mainly the addition of Maersk Oil, Al Shaheen in Qatar, Waha in Libya, Lapa and Iara in Brazil as well as the acquisition of an additional 0.5% of Novatek, were partially offset by the expiration of the Mahakam permit at the end of 2017 and the sales of Visund in Norway and Rabi in Gabon.
  • -4% for natural field declines and PSC price effect.

> Results

4Q18 3Q18 4Q17 4Q18

vs

4Q17

In millions of dollars, except effective tax rate 2018 2017 2018

vs

2017

2,476 2,864 1,805 +37% Adjusted net operating income* 10,210 5,985 +71%
706 614 419 +68% including income from equity affiliates 2,341 1,542 +52%
43.7% 47.6% 42.8% - Effective tax rate** 46.5% 41.2% -
               
3,635 2,796 3,490 +4% Investments 15,282 12,802 +19%
1,638 563 1,334 +23% Divestments 4,952 1,918 x2.6
3,168 1,847 3,120 +2% Organic investments 9,186 11,310 -19%
4,412 5,582 4,263 +3% Operating cash flow before working capital changes *** 19,374 14,753 +31%
6,785 4,821 4,174 +63% Cash flow from operations *** 19,803 12,821 +54%

* Details of 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.

Exploration & Production adjusted net operating income was:

  • 2,476 M$ in the fourth quarter 2018, an increase of 37% compared to a year ago. The Group benefited fully from the increase in hydrocarbon prices and strong production growth.
  • 10,210 M$ in 2018, an increase of 71% compared to 2017 for the same reasons and despite a tax rate that increased in line with the increase in hydrocarbon prices.

Operating cash flow before working capital changes was 4.4 B$ in the fourth quarter 2018, an increase of 3% compared to the same quarter last year, partially offset by the decrease in oil prices in Canada, and 19.4 B$ in 2018, an increase of 31% for the reasons above. Exploration-Production generated 10.2 B$ of operating cash flow before working capital changes less organic investments in 2018.

The effective tax rate increased from 41.2% in 2017 to 46.5% in 2018, in line with the increase in oil prices.

Technical costs for the consolidated subsidiaries, calculated in accordance with ASC93210 standards continued decreasing to 18.9 $/boe in 2018, including 5.7 $/boe of Opex, compared to 19.5 $/boe in 2017.

Gas, Renewables & Power

> Results

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars   2018   2017   2018

vs

2017

176   272   232   x0.8   Adjusted net operating income*   756   485   x1.6
                             
210   3,001   306   -31%   Investments   3,539   797   x4.4
319   129   46   x6.9   Divestments   931   73   x12.8
210   165   85   x2.5   Organic investments   511   353   +45%
116   171   25   x4.6   Operating cash flow before working capital changes**   513   294   +74%
(41)   (554)   667   n.s.   Cash flow from operations**   (670)   1,055   n.s.

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges

Adjusted net operating income for the Gas, Renewables & Power segment was 756 M$ in 2018, notably thanks to the good performance of LNG and gas/power trading activities. The acquisitions of Direct Energie and the LNG business of Engie account for the increase in investments to 3.5 B$ in 2018. The increase in working capital related to the consolidation of the acquisitions of Direct Energie and the LNG business of Engie was mainly responsible for the negative cash flow from operations in 2018.

Refining & Chemicals

> Refinery throughput and utilization rates*

4Q18   3Q18   4Q17   4Q18

vs

4Q17

      2018   2017   2018

vs

2017

1,886   1,953   1,842   +2%   Total refinery throughput (kb/d)   1,852   1,827   +1%
591   654   648   -9%   France   610   624   -2%
809 795 784 +3% Rest of Europe 755 767 -2%
486   504   410   +19%   Rest of world   487   436   +12%
90%   92%   91%       Utlization rate based on crude only**   88%   88%    

* Includes share of TotalErg, and African refineries reported in the Marketing & Services segment.

** Based on distillation capacity at the beginning of the year.

Refinery throughput:

  • increased by 2% in the fourth quarter 2018 compared to the fourth quarter 2017, thanks to the good availability of the units and their high utilization rate.
  • was stable in 2018 compared to 2017. Lower throughput in Europe linked to planned maintenance, notably at Antwerp during the second quarter, was offset by higher throughput outside Europe.

> Results

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars

except the ERMI

  2018   2017   2018

vs

2017

29.1   39.9   35.5   -18%   European refining margin indicator - ERMI ($/t)   32.3   40.9   -21%
                             
900   938   886   +2%   Adjusted net operating income*   3,379   3,790   -11%
                             
668   377   710   -6%   Investments   1,781   1,734   +3%
482   88   36   x13.4   Divestments   919   2,820   -67%
615   295   684   -10%   Organic investments   1,604   1,625   -1%
1,276   1,174   1,142   +12%   Operating cash flow before working capital changes**   4,388   4,728   -7%
3,080   1,338   3,030   +2%   Cash flow from operations**   4,308   7,411   -42%

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges.

The European Refining Margin Indicator (ERMI) for the Group was 29.1 $/t in the fourth quarter 2018, a decrease of 18% compared to the fourth quarter 2017 and by 21% to 32.3 $/t for the full-year 2018, mainly due to rising crude oil prices. The petrochemicals environment remained favorable in the fourth quarter; although margins in Europe were lower than last year, affected by the higher price of raw materials.

In this context, Refining & Chemicals adjusted net operating income was resilient:

  • 900 M$ in the fourth quarter, an increase of 2% compared to the same period last year.
  • 3,379 M$ for the full-year 2018, a decrease of 11% compared to the previous year.

Marketing & Services

> Petroleum product sales

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Sales in kb/d*   2018   2017   2018

vs

2017

1,786   1,818   1,821   -2%   Total Marketing & Services sales   1,801   1,779   +1%
986   1,024   1,046   -6%   Europe   1,001   1,049   -5%
800   794   775   +3%   Rest of world   800   730   +10%

* Excludes trading and bulk refining sales, includes share of TotalErg.

Petroleum product sales increased by 1% in 2018 compared to 2017. The sale of TotalErg in Italy was offset by higher sales in the rest of the world.

> Results

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars   2018   2017   2018

vs

2017

333   474   436   -24%   Adjusted net operating income*   1,652   1,676   -1%
                             
627   293   570   +10%   Investments   1,458   1,457   -
38   117   45   -16%   Divestments   428   413   +4%
424   245   533   -20%   Organic investments   1,010   1,019   -1%
500   580   644   -22%   Operating cash flow before working capital changes**   2,156   2,242   -4%
1,226   752   1,015   +21%   Cash flow from operations**   2,759   2,221   +24%

* Detail of adjustment items shown in the business segment information annex to financial statements.

** Excluding financial charges.

Marketing & Services adjusted net operating income was stable in 2018 at 1,652 M$.

Group results

> Adjusted net operating income from business segments

Thanks notably to the strong performance by Exploration & Production, adjusted net operating income from the business segments was:

  • 3,885 M$ in the fourth quarter 2018, a 16% increase compared to the fourth quarter last year.
  • 15,997 M$ for 2018, an increase of 34% compared to 2017.

> Adjusted net income (Group share)

In line with the contribution from the segments, adjusted net income was:

  • 3,164 M$ in the fourth quarter 2018, a 10% increase compared to the fourth quarter last year.
  • 13,559 M$ for 2018, a 28% increase compared to 2017.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value11.

Total adjustments affecting net income12 were:

  • -2,032 M$ in the fourth quarter 2018, mainly due to a 1.1 B$ inventory effect linked to the decrease in oil prices and notably an impairment on Ichthys related to the sale of a partial interest by the Group.
  • -2,113 M$ for 2018 for the reasons above as well as the impairment of production facilities by SunPower.

The effective tax rate for the Group was:

  • 38.1% in the fourth quarter 2018, compared to 31.8% a year ago, due to the increase in the effective tax rate for Exploration & Production in line with higher hydrocarbon prices, and the larger contribution of this segment to the Group’s results this quarter.
  • 38.7% for 2018, compared to 31.1% for 2017, for the same reasons.

> Adjusted fully-diluted earnings per share and share buyback

Adjusted earnings per share increased by:

  • 6% to $1.17 in the fourth quarter 2018, calculated based on a weighted average of 2,637 million fully-diluted shares, compared to $1.10 in the fourth quarter 2017.
  • 23% to $5.05 for 2018, calculated based on a weighted average of 2,624 million fully-diluted shares, compared to $4.12 for 2017.

In the context of the shareholder return policy announced in February 2018, the Group has bought back shares since then, including:

  • on the one hand, the buyback of shares issued in 2018 under the scrip dividend option in order to cancel any dilution related to the exercise of this option: 21.6 million shares repurchased in the fourth quarter 2018 and 47.2 million shares in 2018.
  • on the other hand, the buyback of additional shares : 8.6 million shares repurchased in the fourth quarter 2018 for 500 M$ and 24.7 million shares in 2018 for 1.5 B$.
  • on December 31, 2018, the number of fully-diluted shares was 2,623 million.

> Divestments – acquisitions

Asset sales:

  • 2,101 M$ in the fourth quarter 2018, comprised mainly of the sale of a 4% interest in the Ichthys project in Australia and the sale of the Group’s share of the LNG re-gas terminal at Dunkirk.
  • 5,172 M$ in 2018, comprised mainly of the elements above as well as the sale of Joslyn in Canada, Rabi in Gabon, the Martin Linge and Visund fields in Norway, an interest in Fort Hills in Canada, SunPower’s sale of its interest in 8point3, the marketing activities of TotalErg in Italy, the Marketing & Services network in Haiti, and the contribution of the Bayport polyethylene unit in the United States to the joint venture formed with Borealis and Nova in which Total holds 50%.

Acquisitions:

  • 350 M$ in the fourth quarter 2018, comprised mainly of the extension of licenses in Nigeria and the acquisition of a network of service stations in Brazil.
  • 8,314 M$ in 2018, comprised of the elements above as well as notably the acquisitions of Direct Energie, Engie’s LNG business, the increase in the share of Novatek to 19.4%, interests in the Iara and Lapa fields in Brazil, two new 40-year offshore concessions in Abu Dhabi and the acquisition of offshore assets from Cobalt in the Gulf of Mexico.

> Net cash flow

The Group’s net cash flow13 was :

  • 2,964 M$ in the fourth quarter 2018 compared to 2,317 M$ in the fourth quarter 2017, notably as a result of the 930 M$ decrease in net investments.
  • 8,961 M$ in 2018 compared to 9,499 M$ in 2017, as a result of a 3,932 M$ increase in net investments driven by the Group’s strategy of countercyclical acquisitions, partially offset by a 3,394 M$ increase in operating cash flow before changes in working capital.

> Profitability

Return on equity rose to 12.2% for the twelve months ended December 31, 2018, an increase compared to the twelve months ended December 31, 2017.

In millions of dollars   Jan 1, 2018 to Dec 31, 2018   Oct 1, 2017 to Sept 30, 2018   Jan 1, 2017 to Dec 31, 2017
Adjusted net income   13,964   13,679   10,762
Average adjusted shareholders' equity   114,183   114,729   106,078
Return on equity (ROE)   12.2%   11.9%   10.1%

Return on average capital employed was 11.8% for the twelve months ended December 31, 2018, an increase compared to the twelve months ended December 31, 2017.

In millions of dollars   Jan 1, 2018 to Dec 31, 2018   Oct 1, 2017 to Sept 30, 2018   Jan 1, 2017 to Dec 31, 2017
Adjusted net operating income   15,691   15,295   11,958
Average capital employed   133,123   138,242   127,575
ROACE   11.8%   11.1%   9.4%

TOTAL S.A., parent company accounts

Net income for TOTAL S.A., the parent company, was 5,485 M€ in 2018, compared to 6,634 M€ in 2017.

2019 Sensitivities*

    Scenario   Change  

Estimated impact
on adjusted
net operating
income

 

 

Estimated
impact on cash
flow

Dollar   1.2 $/€   +/- 0.1 $ per €   -/+ 0.1 B$   ~0 B$
Average Liquids Price   60 $/b **   +/- 10 $/b   +/- 2.7 B$   +/- 3.2 B$
European refining margin indicator (ERMI)   35 $/t   +/- 10 $/t   +/- 0.5 B$   +/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2018. 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.

** Based on a 60 $/b Brent environment

Summary and outlook

Since the start of 2019, Brent has traded around $60/b in a context of oil supply and demand near the record-high level of 100 Mb/d. In a volatile environment, the Group is pursuing its strategy for integrated growth along the oil, gas and low-carbon electricity chains.

The Group has clear visibility on its 2019 cash flow, supported by the strong contribution of project start-ups in 2018 and recent acquisitions.

The Group maintains financial discipline to reduce its breakeven to remain profitable across a broader range of environments. In particular, it is targeting cost reductions of $4.7 billion, projected net investments of $15-16 billion in 2019 and an Opex target of 5.5 $/boe.

In Exploration & Production, production is expected to grow by more than 9% in 2019, thanks to the ramp-ups of Kaombo North, Egina and Ichthys plus the start-ups of Iara 1 in Brazil, Kaombo South in Angola, Culzean in the UK and Johan Sverdrup in Norway. Determined to take advantage of the favorable cost environment, the Group plans to launch projects in 2019, notably including Mero 2 in Brazil, Tilenga and Kingfisher in Uganda and Arctic LNG 2 in Russia.

The Group is pursuing its strategy for profitable growth along the integrated gas and low-carbon electricity chains. Effective 2019, the Group will report the new iGRP segment (integrated Gas, Renewables & Power) which combines the Gas, Renewables & Power segment with the upstream gas and LNG activities currently reported within the Exploration & Production segment.

Affected by an abundance of available products, European refining margins have been very volatile since the start of the year. In 2019, the Downstream will continue to rely on its diversified portfolio, notably its integrated Refining & Chemical platforms in the U.S. and Asia-Middle East as well as its non-cyclical Marketing & Services segment.

In this context, the Group is continuing to implement its shareholder return policy announced in February 2018, by increasing the dividend in 2019 by 3.1%, in line with the objective to increase the dividend by 10% over the 2018-20 period. Taking into account its strong financial position, the Group will eliminate the scrip dividend option from June 2019. Within the framework of its program to buy back $5 billion of shares over the 2018-20 period, the Group expects to buy back $1.5 billion of its shares in 2019 in a 60 $/b Brent environment.

* * * * *

To listen to the presentation in English by CEO Patrick Pouyanne and CFO Patrick de La Chevardière today at 10:00 (London time) please log on to total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167 in the United States (code: 7198797). For a replay, please consult the website or call +44 (0) 333 300 9785 in Europe or +1 917 677 7532 in the United States (code: 7198797).

* * * * *

Operating information by segment

> Exploration & Production

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Combined liquids and gas

production by region (kboe/d)

  2018   2017   2018

vs

2017

997   910   764   +30%   Europe and Central Asia   909   761   +19%
661 676 659 - Africa 670 654 +3%
655 687 595 +10% Middle East and North Africa 666 559 +19%
386 399 356 +8% Americas 389 348 +12%
176   132   239   -26%   Asia Pacific   141   244   -42%
2,876   2,804   2,613   +10%   Total production   2,775   2,566   +8%
699   645   656   +7%   including equity affiliates   671   639   +5%
                             
4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Liquids production by region (kb/d)   2018   2017   2018

vs

2017

363 341 265 +37% Europe and Central Asia 334 265 +26%
509 528 501 +2% Africa 513 502 +2%
503 538 457 +10% Middle East and North Africa 520 419 +24%
191 186 137 +40% Americas 183 132 +39%
22   18   29   -24%   Asia Pacific   16   28   -43%
1,589   1,611   1,389   +14%   Total production   1,566   1,346   +16%
231   221   311   -26%   including equity affiliates   247   283   -13%
                             
4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Gas production by region (Mcf/d)   2018   2017   2018

vs

2017

3,416 3,069 2,657 +29% Europe and Central Asia 3,100 2,672 +16%
738 776 980 -25% Africa 785 759 +3%
843 830 759 +11% Middle East and North Africa 806 772 +4%
1,094 1,198 1,225 -11% Americas 1,160 1,212 -4%
903   684   1,211   -25%   Asia Pacific   748   1,247   -40%
6,994   6,557   6,832   +2%   Total production   6,599   6,662   -1%
2,524   2,313   2,022   +25%   including equity affiliates   2,281   1,916   +19%
                             
4Q18   3Q18   4Q17   4Q18

vs

4Q17

  Liquefied natural gas   2018   2017   2018

vs

2017

3.32   2.78   2.67   +24%   LNG sales* (Mt)   11.07   11.23   -1%

* Sales, Group share, excluding trading; 2017 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2017 SEC coefficient.

> Downstream (Refining & Chemicals and Marketing & Services)

4Q18   3Q18   4Q17*   4Q18

vs

4Q17

  Petroleum product sales by region (kb/d)**   2018   2017*   2018

vs

2017

2,062   2,030   2,000   +3%   Europe   1,984   2,086   -5%
778 760 639 +22% Africa 736 615 +20%
767 979 476 +61% Americas 827 561 +47%
531   569   727   -27%   Rest of world   606   757   -20%
4,138   4,338   3,842   +8%   Total consolidated sales   4,153   4,019   +3%
593   581   587   +1%   Including bulk sales   575   581   -1%
1,759   1,939   1,434   +23%   Including trading   1,777   1,659   +7%

* 2017 data restated.

** Includes share of TotalErg.

Adjustment items to net income (Group share)

4Q18   3Q18   4Q17   In millions of dollars   2018   2017
(1,026)   (152)   (2,218)   Special items affecting net income (Group share)   (1,731)   (2,213)
(2)   89   188   Gain (loss) on asset sales   (16)   2,452
(32) (39) (5) Restructuring charges (138) (66)
(1,259) (88) (2,060) Impairments (1,595) (3,884)
267   (114)   (341)   Other   18   (715)
(1,052)   160   354   After-tax inventory effect: FIFO vs. replacement cost   (420)   282
46   (9)   13   Effect of changes in fair value   38   (16)
                     
(2,032)   (1)   (1,851)   Total adjustments affecting net income   (2,113)   (1,947)

Investments - Divestments

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars   2018   2017   2018

vs

2017

4,459   2,568   4,442   -   Organic investments ( a )   12,426   14,395   -14%
306 156 181 +69% capitalized exploration 711 619 +15%
160 147 207 -23% increase in non-current loans 618 961 -36%
(382)   (688)   (348)   x1.1   repayment of non-current loans   (2,067)   (1,025)   x2
349   3,228   313   x1.1   Acquisitions ( b )   7,692   1,476   x5.2
2,101   209   1,119   +88%   Asset sales ( c )   5,172   4,239   22%
(1)   (621)   (2)   -50%   Other transactions with non-controlling interests ( d )   (622)   (4)   n.s.
2,708   6,208   3,638   -26%   Net investments ( a + b - c - d )   15,568   11,636   +34%

Cash flow

4Q18   3Q18   4Q17   4Q18

vs

4Q17

  In millions of dollars   2018   2017   2018

vs

2017

6,095   7,507   6,233   -2%   Operating cash flow before working capital changes w/o financial charges (DACF)   26,067   22,183   +18%
(423) (419) (278) +52% Financial charges (1,538) (1,048) +47%
5,672 7,088 5,955 -5% Operating cash flow before working capital changes ( a ) 24,529 21,135 +16%
6,425 (1,578) 2,206 n.s. (Increase) decrease in working capital 769 827 -7%
(1,457)   226   454   n.s.   Inventory effect   (595)   357   n.s.
10,640   5,736   8,615   +24%   Cash flow from operations   24,703   22,319   +11%
                             
4,459   2,568   4,442   n.s.   Organic investments ( b )   12,426   14,395   -14%
1,213   4,520   1,513   -20%   Free cash flow after organic investments, w/o net asset sales ( a - b )   12,103   6,740   x1.8
                             
2,708   6,208   3,638   -26%   Net investments ( c )   15,568   11,636   +34%
2,964   880   2,317   +28%   Net cash flow ( a - c )   8,961   9,499   -6%

Gearing ratio

In millions of dollars   12/31/2018   09/30/2018   12/31/2017
Current borrowings   13,306   15,180   11,096
Net current financial assets (3,176) (2,884) (3,148)
Net financial assets classified as held for sale (15) (14) 0
Non-current financial debt 40,129 41,088 41,340
Hedging instruments of non-current debt (680) (1,129) (679)
Cash and cash equivalents   (27,907)   (25,252)   (33,185)
Net debt (a)   21,657   26,989   15,424
             
Shareholders’ equity - Group share   115,640   118,193   111,556
Non-controlling interests   2,474   2,430   2,481
Shareholders' equity (b)   118,114   120,623   114,037
             
Net-debt-to-capital ratio = a / (a + b)   15.5%   18.3%   11.9%

Return on average capital employed

> Twelve months ended December 31, 2018

In millions of dollars  

Exploration &
Production

  

Gas,
Renewables &
Power

  

Refining &
Chemicals

  

Marketing &
Services

       Group
Adjusted net operating income   10,210   756   3,379   1,652 15,691
Capital employed at 12/31/2017* 107,921 4,692 11,045 6,929 127,727
Capital employed at 12/31/2018*   114,885   9,261   10,599   6,442 138,519
ROACE   9.2%   10.8%   31.2%   24.7% 11.8%

> Twelve months ended September 30, 2018

In millions of dollars  

Exploration &
Production

  

Gas,
Renewables &
Power

  

Refining &
Chemicals

  

Marketing &
Services

       Group
Adjusted net operating income   9,539   812   3,365   1,755 15,295
Capital employed at 09/30/2017* 110,114 5,388 11,919 6,871 131,185
Capital employed at 09/30/2018*   118,820   9,871   12,884   6,841 145,298
ROACE   8.3%   10.6%   27.1%   25.6% 11.1%

> Twelve months ended December 31, 2017

In millions of dollars  

Exploration &
Production

  

Gas,
Renewables &
Power

  

Refining &
Chemicals

  

Marketing &
Services

       Group
Adjusted net operating income   5,985   485   3,790   1,676 11,958
Capital employed at 12/31/2016* 107,617 4,976 11,618 5,884 127,423
Capital employed at 12/31/2017*   107,921   4,692   11,045   6,929 127,727
ROACE   5.6%   10.0%   33.4%   26.2% 9.4%

* At replacement cost (excluding after-tax inventory effect).

This press release presents the results for the full-year 2018 from the consolidated financial statements of TOTAL S.A. as of December 31, 2018 (unaudited). The audit 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 does not constitute the Annual Financial Report (Rapport Financier annuel) within the meaning of article L. 451.1.2 of the French monetary and financial code (code monétaire et financier).

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. These data do not represent forecasts within the meaning of European Regulation No. 809/2004.

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 Group’s 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 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) and gearing ratio. 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.

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 SEC’s 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 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 SEC’s website sec.gov.

1 Definitions on page 2
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 norms, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bond
5 Including acquisitions and increases in non-current loans.
6 Including divestments and reimbursements of non-current loans.
7 Net investments = gross investments - divestments - repayment of non-current loans - other operations with non-controlling interests.
8 Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
9 Operating cash flow before working capital changes, previously referred to as adjusted cash flow from operations, is defined as cash flow from operating activities before changes in working capital at replacement cost. The inventory valuation effect is explained on page 14. The reconciliation table for different cash flow figures is on page 12.
10 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
11 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
12 FASB Accounting Standards Codification Topic 932, Extractive industries – Oil and Gas
13 Details shown on page 11
14 Details shown on page 11 and in the annex to the financial statements.
15 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

Main indicators

Chart updated around the middle of the month following the end of each quarter

    $/€   Brent ($/b)   Average liquids price*** ($/b)   Average gas price ($/Mbtu)***  

European refining

margin ERMI* ($/t)**

Fourth quarter 2018   1.14   68.8   57.2   4.94   29.1
Third quarter 2018   1.16   75.2   69.5   4.96   39.9
Second quarter 2018   1.19   74.4   69.5   4.49   34.7
First quarter 2018   1.23   66.8   60.4   4.73   25.6
Fourth quarter 2017   1.18   61.3   57.6   4.23   35.5

* European Refining Margin Indicator (ERMI) is an indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by Total in any period because of Total’s particular refinery configurations, product mix effects or other company-specific operating conditions.

** 1 $/t = 0.136 $/b

*** consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting / underlifting position valued at market price.

Disclaimer: data is based on Total’s reporting, is not audited and is subject to change.

Total financial statements

Fourth quarter and full-year 2018 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME      
TOTAL
(unaudited)
 
(M$) (a)   4th quarter

2018

  3rd quarter

2018

  4th quarter

2017

Sales 52,495 54,717 47,351
Excise taxes (6,183) (6,317) (5,909)
Revenues from sales 46,312 48,400 41,442
Purchases, net of inventory variation (33,420) (32,351) (27,659)
Other operating expenses (6,913) (6,873) (6,586)
Exploration costs (201) (234) (287)
Depreciation, depletion and impairment of tangible assets and mineral interests (4,362) (3,279) (5,691)
Other income 482 581 512
Other expense (315) (355) (570)
Financial interest on debt (529) (536) (352)
Financial income and expense from cash & cash equivalents (30) (63) (45)
Cost of net debt (559) (599) (397)
Other financial income 269 290 240
Other financial expense (185) (171) (159)
Net income (loss) from equity affiliates 665 918 657
Income taxes   (593)   (2,240)   (772)
Consolidated net income   1,180   4,087   730
Group share   1,132   3,957   1,021
Non-controlling interests   48   130   (291)
Earnings per share ($)   0.40   1.48   0.37
Fully-diluted earnings per share ($)   0.40   1.47   0.37
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
TOTAL
(unaudited)
 
(M$)   4th quarter

2018

  3rd quarter

2018

  4th quarter

2017

Consolidated net income   1,180   4,087   730
Other comprehensive income
 
Actuarial gains and losses (112) 33 794
Change in fair value of investments in equity instruments (3) (2) -
Tax effect 44 (13) (373)
Currency translation adjustment generated by the parent company   (881)   (511)   1,432
Items not potentially reclassifiable to profit and loss   (952)   (493)   1,853
Currency translation adjustment 52 93 (585)
Available for sale financial assets - - 3
Cash flow hedge (285) 55 174
Variation of foreign currency basis spread (14) (39) -
Share of other comprehensive income of equity affiliates, net amount (266) (142) (5)
Other (1) (2) -
Tax effect   98   (9)   (49)
Items potentially reclassifiable to profit and loss   (416)   (44)   (462)
Total other comprehensive income (net amount)   (1,368)   (537)   1,391
             
Comprehensive income   (188)   3,550   2,121
Group share (221) 3,436 2,385
Non-controlling interests 33 114 (264)
CONSOLIDATED STATEMENT OF INCOME    
TOTAL
 
 
(M$) (a)   Year

2018

(unaudited)

  Year

2017

Sales 209,363 171,493
Excise taxes (25,257) (22,394)
Revenues from sales 184,106 149,099
 
Purchases, net of inventory variation (125,816) (99,411)
Other operating expenses (27,484) (24,966)
Exploration costs (797) (864)
Depreciation, depletion and impairment of tangible assets and mineral interests (13,992) (16,103)
Other income 1,838 3,811
Other expense (1,273) (1,034)
 
Financial interest on debt (1,933) (1,396)
Financial income and expense from cash & cash equivalents (188) (138)
Cost of net debt (2,121) (1,534)
 
Other financial income 1,120 957
Other financial expense (685) (642)
 
Net income (loss) from equity affiliates 3,170 2,015
 
Income taxes   (6,516)   (3,029)
Consolidated net income   11,550   8,299
Group share   11,446   8,631
Non-controlling interests   104   (332)
Earnings per share ($)   4.27   3.36
Fully-diluted earnings per share ($)   4.24   3.34
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  
TOTAL  
 
 
(M$)   Year

2018

(unaudited)

  Year

2017

Consolidated net income   11,550   8,299
Other comprehensive income
 
Actuarial gains and losses (12) 823
Change in fair value of investments in equity instruments - -
Tax effect 13 (390)
Currency translation adjustment generated by the parent company   (4,022)   9,316
Items not potentially reclassifiable to profit and loss   (4,021)   9,749
Currency translation adjustment 1,113 (2,578)
Available for sale financial assets - 7
Cash flow hedge 25 324
Variation of foreign currency basis spread (80) -
Share of other comprehensive income of equity affiliates, net amount (540) (677)
Other (5) -
Tax effect   14   (100)
Items potentially reclassifiable to profit and loss   527   (3,024)
Total other comprehensive income (net amount)   (3,494)   6,725
         
Comprehensive income   8,056   15,024
Group share 8,021 15,312
Non-controlling interests 35 (288)
CONSOLIDATED BALANCE SHEET      
TOTAL
 
 
(M$)   December 31, 2018

(unaudited)

  September 30, 2018

(unaudited)

  December 31, 2017
ASSETS
Non-current assets
Intangible assets, net 28,922 27,356 14,587
Property, plant and equipment, net 113,324 115,136 109,397
Equity affiliates : investments and loans 23,444 23,402 22,103
Other investments 1,421 1,602 1,727
Non-current financial assets 680 1,129 679
Deferred income taxes 6,663 5,186 5,206
Other non-current assets   2,509   3,167   3,984
Total non-current assets   176,963   176,978   157,683
Current assets
Inventories, net 14,880 19,689 16,520
Accounts receivable, net 17,270 20,010 14,893
Other current assets 14,724 18,613 14,210
Current financial assets 3,654 3,553 3,393
Cash and cash equivalents 27,907 25,252 33,185
Assets classified as held for sale   1,364   207   2,747
Total current assets   79,799   87,324   84,948
Total assets 256,762 264,302 242,631
 
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
Shareholders' equity
Common shares 8,227 8,304 7,882
Paid-in surplus and retained earnings 120,569 123,167 112,040
Currency translation adjustment (11,313) (10,321) (7,908)
Treasury shares   (1,843)   (2,957)   (458)
Total shareholders' equity - Group share   115,640   118,193   111,556
Non-controlling interests   2,474   2,430   2,481
Total shareholders' equity   118,114   120,623   114,037
Non-current liabilities
Deferred income taxes 11,490 12,138 10,828
Employee benefits 3,363 3,308 3,735
Provisions and other non-current liabilities 21,432 18,740 15,986
Non-current financial debt   40,129   41,088   41,340
Total non-current liabilities   76,414   75,274   71,889
Current liabilities
Accounts payable 26,134 28,100 26,479
Other creditors and accrued liabilities 22,246 24,429 17,779
Current borrowings 13,306 15,180 11,096
Other current financial liabilities 478 669 245
Liabilities directly associated with the assets classified as held for sale   70   27   1,106
Total current liabilities   62,234   68,405   56,705
Total liabilities & shareholders' equity 256,762 264,302 242,631
CONSOLIDATED STATEMENT OF CASH FLOW      
TOTAL
(unaudited)
 
(M$)   4th quarter

2018

  3rd quarter

2018

  4th quarter

2017

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 1,180 4,087 730
Depreciation, depletion, amortization and impairment 4,553 3,477 5,857
Non-current liabilities, valuation allowances and deferred taxes (1,356) 320 (44)
(Gains) losses on disposals of assets (390) (267) (71)
Undistributed affiliates' equity earnings 147 (416) (54)
(Increase) decrease in working capital 6,425 (1,578) 2,206
Other changes, net   81   113   (9)
Cash flow from operating activities 10,640 5,736 8,615
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (4,550) (3,352) (4,662)
Acquisitions of subsidiaries, net of cash acquired 49 (2,714) (3)
Investments in equity affiliates and other securities (529) (271) (231)
Increase in non-current loans   (160)   (147)   (207)
Total expenditures (5,190) (6,484) (5,103)
Proceeds from disposals of intangible assets and property, plant and equipment 1,321 113 901
Proceeds from disposals of subsidiaries, net of cash sold 27 (11) 213
Proceeds from disposals of non-current investments 753 107 5
Repayment of non-current loans   382   688   348
Total divestments   2,483   897   1,467
Cash flow used in investing activities (2,707) (5,587) (3,636)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders - 16 33
- Treasury shares (1,744) (844) -
Dividends paid:
- Parent company shareholders (705) - (643)
- Non-controlling interests (4) (9) (54)
Issuance of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (59) - (57)
Other transactions with non-controlling interests (1) (621) (2)
Net issuance (repayment) of non-current debt 931 2,146 1,531
Increase (decrease) in current borrowings (2,994) (1,965) (878)
Increase (decrease) in current financial assets and liabilities (242) 69 (916)
Cash flow used in financing activities   (4,818)   (1,208)   (986)
Net increase (decrease) in cash and cash equivalents 3,115 (1,059) 3,993
Effect of exchange rates (460) (164) 609
Cash and cash equivalents at the beginning of the period   25,252   26,475   28,583
Cash and cash equivalents at the end of the period   27,907   25,252   33,185
CONSOLIDATED STATEMENT OF CASH FLOW    
TOTAL
 
 
(M$)   Year

2018

(unaudited)

  Year

2017

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 11,550 8,299
Depreciation, depletion, amortization and impairment 14,584 16,611
Non-current liabilities, valuation allowances and deferred taxes (887) (384)
(Gains) losses on disposals of assets (930) (2,598)
Undistributed affiliates' equity earnings (826) 42
(Increase) decrease in working capital 769 827
Other changes, net   443   (478)
Cash flow from operating activities 24,703 22,319
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (17,080) (13,767)
Acquisitions of subsidiaries, net of cash acquired (3,379) (800)
Investments in equity affiliates and other securities (1,108) (1,368)
Increase in non-current loans   (618)   (961)
Total expenditures (22,185) (16,896)
Proceeds from disposals of intangible assets and property, plant and equipment 3,716 1,036
Proceeds from disposals of subsidiaries, net of cash sold 12 2,909
Proceeds from disposals of non-current investments 1,444 294
Repayment of non-current loans   2,067   1,025
Total divestments   7,239   5,264
Cash flow used in investing activities (14,946) (11,632)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 498 519
- Treasury shares (4,328) -
Dividends paid:
- Parent company shareholders (4,913) (2,643)
- Non-controlling interests (97) (141)
Issuance of perpetual subordinated notes - -
Payments on perpetual subordinated notes (325) (276)
Other transactions with non-controlling interests (622) (4)
Net issuance (repayment) of non-current debt 649 2,277
Increase (decrease) in current borrowings (3,990) (7,175)
Increase (decrease) in current financial assets and liabilities (797) 1,903
Cash flow used in financing activities   (13,925)   (5,540)
Net increase (decrease) in cash and cash equivalents (4,168) 5,147
Effect of exchange rates (1,110) 3,441
Cash and cash equivalents at the beginning of the period   33,185   24,597
Cash and cash equivalents at the end of the period   27,907   33,185
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL                  
(Unaudited: Year 2018)                                    
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity -

Group share

Non-controlling interests Total shareholders' equity
(M$)   Number   Amount           Number   Amount            
As of January 1, 2017   2,430,365,862   7,604   105,547   (13,871)   (10,587,822)   (600)   98,680   2,894   101,574
Net income 2017 - - 8,631 - - - 8,631 (332) 8,299
Other comprehensive Income - - 718 5,963 - - 6,681 44 6,725
Comprehensive Income - - 9,349 5,963 - - 15,312 (288) 15,024
Dividend - - (6,992) - - - (6,992) (141) (7,133)
Issuance of common shares 98,623,754 278 4,431 - - - 4,709 - 4,709
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (142) - 2,211,066 142 - - -
Share-based payments - - 151 - - - 151 - 151
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (302) - - - (302) - (302)
Other operations with non-controlling interests - - (8) - - - (8) 4 (4)
Other items - - 6 - - - 6 12 18
As of December 31, 2017   2,528,989,616   7,882   112,040   (7,908)   (8,376,756)   (458)   111,556   2,481   114,037
Net income 2018 - - 11,446 - - - 11,446 104 11,550
Other comprehensive Income - - (20) (3,405) - - (3,425) (69) (3,494)
Comprehensive Income - - 11,426 (3,405) - - 8,021 35 8,056
Dividend - - (7,881) - - - (7,881) (97) (7,978)
Issuance of common shares 156,203,090 476 8,366 - - - 8,842 - 8,842
Purchase of treasury shares - - - - (72,766,481) (4,328) (4,328) - (4,328)
Sale of treasury shares (1) - - (240) - 4,079,257 240 - - -
Share-based payments - - 294 - - - 294 - 294
Share cancellation (44,590,699) (131) (2,572) - 44,590,699 2,703 - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (315) - - - (315) - (315)
Other operations with non-controlling interests - - (517) - - - (517) (99) (616)
Other items - - (32) - - - (32) 154 122
As of December 31, 2018   2,640,602,007   8,227   120,569   (11,313)   (32,473,281)   (1,843)   115,640   2,474   118,114
 
(1) Treasury shares related to the restricted stock grants.
BUSINESS SEGMENT INFORMATION              
TOTAL
(unaudited)
                             
4th quarter 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,390 3,510 23,365 23,226 4 - 52,495
Intersegment sales 7,918 536 8,786 246 18 (17,504) -
Excise taxes   -   -   (822)   (5,361)   -   -   (6,183)
Revenues from sales 10,308 4,046 31,329 18,111 22 (17,504) 46,312
Operating expenses (4,766) (3,803) (31,552) (17,671) (246) 17,504 (40,534)
Depreciation, depletion and impairment of tangible assets and mineral interests   (3,740)   (113)   (311)   (187)   (11)   -   (4,362)
Operating income 1,802 130 (534) 253 (235) - 1,416
Net income (loss) from equity affiliates and other items 647 91 144 5 29 - 916
Tax on net operating income   (771)   (106)   230   (69)   48   -   (668)
Net operating income 1,678 115 (160) 189 (158) - 1,664
Net cost of net debt (484)
Non-controlling interests                           (48)
Net income - group share 1,132
                             
4th quarter 2018 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - 43 - - - - 43
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 43 - - - - 43
Operating expenses 1 (72) (1,323) (197) - - (1,591)
Depreciation, depletion and impairment of tangible assets and mineral interests   (1,191)   (31)   (2)   -   -   -   (1,224)
Operating income (b) (1,190) (60) (1,325) (197) - - (2,772)
Net income (loss) from equity affiliates and other items (207) - (150) (5) - - (362)
Tax on net operating income   599   (1)   415   58   -   -   1,071
Net operating income (b) (798) (61) (1,060) (144) - - (2,063)
Net cost of net debt (4)
Non-controlling interests                           35
Net income - group share (2,032)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - (1,299) (158) -
On net operating income - - (963) (113) -
                             
4th quarter 2018 (adjusted)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,390 3,467 23,365 23,226 4 - 52,452
Intersegment sales 7,918 536 8,786 246 18 (17,504) -
Excise taxes   -   -   (822)   (5,361)   -   -   (6,183)
Revenues from sales 10,308 4,003 31,329 18,111 22 (17,504) 46,269
Operating expenses (4,767) (3,731) (30,229) (17,474) (246) 17,504 (38,943)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,549)   (82)   (309)   (187)   (11)   -   (3,138)
Adjusted operating income 2,992 190 791 450 (235) - 4,188
Net income (loss) from equity affiliates and other items 854 91 294 10 29 - 1,278
Tax on net operating income   (1,370)   (105)   (185)   (127)   48   -   (1,739)
Adjusted net operating income 2,476 176 900 333 (158) - 3,727
Net cost of net debt (480)
Non-controlling interests                           (83)
Adjusted net income - group share 3,164
 
 
                             
4th quarter 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 3,635 210 668 627 50 - 5,190
Total divestments 1,638 319 482 38 6 - 2,483
Cash flow from operating activities (*)   6,785   (41)   3,080   1,226   (410)   -   10,640
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 and 2016 comparative information have been restated.
BUSINESS SEGMENT INFORMATION
TOTAL              
(unaudited)
                             
3rd quarter 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,734 5,267 23,572 23,144 - - 54,717
Intersegment sales 8,538 455 9,280 242 12 (18,527) -
Excise taxes   -   -   (823)   (5,494)   -   -   (6,317)
Revenues from sales 11,272 5,722 32,029 17,892 12 (18,527) 48,400
Operating expenses (4,559) (5,535) (30,593) (17,147) (151) 18,527 (39,458)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,714)   (84)   (294)   (176)   (11)   -   (3,279)
Operating income 3,999 103 1,142 569 (150) - 5,663
Net income (loss) from equity affiliates and other items 829 65 221 109 39 - 1,263
Tax on net operating income   (1,975)   (33)   (292)   (166)   146   -   (2,320)
Net operating income 2,853 135 1,071 512 35 - 4,606
Net cost of net debt (519)
Non-controlling interests                           (130)
Net income - group share 3,957
                             
3rd quarter 2018 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - - - - - - -
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - - - - - - -
Operating expenses (50) (64) 176 47 - - 109
Depreciation, depletion and impairment of tangible assets and mineral interests   (65)   (39)   -   -   -   -   (104)
Operating income (b) (115) (103) 176 47 - - 5
Net income (loss) from equity affiliates and other items 39 (25) 9 - - - 23
Tax on net operating income   65   (9)   (52)   (9)   -   -   (5)
Net operating income (b) (11) (137) 133 38 - - 23
Net cost of net debt (44)
Non-controlling interests                           20
Net income - group share (1)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 179 47 -
On net operating income - - 135 38 -
                             
3rd quarter 2018 (adjusted)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,734 5,267 23,572 23,144 - - 54,717
Intersegment sales 8,538 455 9,280 242 12 (18,527) -
Excise taxes   -   -   (823)   (5,494)   -   -   (6,317)
Revenues from sales 11,272 5,722 32,029 17,892 12 (18,527) 48,400
Operating expenses (4,509) (5,471) (30,769) (17,194) (151) 18,527 (39,567)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,649)   (45)   (294)   (176)   (11)   -   (3,175)
Adjusted operating income 4,114 206 966 522 (150) - 5,658
Net income (loss) from equity affiliates and other items 790 90 212 109 39 - 1,240
Tax on net operating income   (2,040)   (24)   (240)   (157)   146   -   (2,315)
Adjusted net operating income 2,864 272 938 474 35 - 4,583
Net cost of net debt (475)
Non-controlling interests                           (150)
Adjusted net income - group share 3,958
 
 
                             
3rd quarter 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 2,796 3,001 377 293 17 - 6,484
Total divestments 563 129 88 117 - - 897
Cash flow from operating activities (*)   4,821   (554)   1,338   752   (621)   -   5,736
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 and 2016 comparative information have been restated.
BUSINESS SEGMENT INFORMATION
TOTAL              
(unaudited)
                             
4th quarter 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,185 4,083 20,661 20,419 3 - 47,351
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,394 27,723 15,545 93 (15,004) 41,442
Operating expenses (3,806) (4,385) (26,191) (14,849) (305) 15,004 (34,532)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,890)   (319)   (284)   (185)   (13)   -   (5,691)
Operating income (5) (310) 1,248 511 (225) - 1,219
Net income (loss) from equity affiliates and other items 348 51 199 76 6 - 680
Tax on net operating income   (537)   (86)   (67)   (157)   55   -   (792)
Net operating income (194) (345) 1,380 430 (164) - 1,107
Net cost of net debt (377)
Non-controlling interests                           291
Net income - group share 1,021
                             
4th quarter 2017 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - 21 - - - - 21
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 21 - - - - 21
Operating expenses - (243) 355 33 - - 145
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,382)   (266)   (3)   (10)   -   -   (2,661)
Operating income (b) (2,382) (488) 352 23 - - (2,495)
Net income (loss) from equity affiliates and other items (112) (22) 9 (19) - - (144)
Tax on net operating income   495   (67)   133   (10)   (136)   -   415
Net operating income (b) (1,999) (577) 494 (6) (136) - (2,224)
Net cost of net debt (8)
Non-controlling interests                           381
Net income - group share (1,851)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 423 31 -
On net operating income - - 354 11 -
                             
4th quarter 2017 (adjusted)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,185 4,062 20,661 20,419 3 - 47,330
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,373 27,723 15,545 93 (15,004) 41,421
Operating expenses (3,806) (4,142) (26,546) (14,882) (305) 15,004 (34,677)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,508)   (53)   (281)   (175)   (13)   -   (3,030)
Adjusted operating income 2,377 178 896 488 (225) - 3,714
Net income (loss) from equity affiliates and other items 460 73 190 95 6 - 824
Tax on net operating income   (1,032)   (19)   (200)   (147)   191   -   (1,207)
Adjusted net operating income 1,805 232 886 436 (28) - 3,331
Net cost of net debt (369)
Non-controlling interests                           (90)
Adjusted net income - group share 2,872
 
 
                             
4th quarter 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 3,490 306 710 570 27 - 5,103
Total divestments 1,334 46 36 45 6 - 1,467
Cash flow from operating activities (*)   4,174   667   3,030   1,015   (271)   -   8,615
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 and 2016 comparative information have been restated.
BUSINESS SEGMENT INFORMATION
TOTAL              
(unaudited)
                             
Year 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 10,989 16,136 92,025 90,206 7 - 209,363
Intersegment sales 31,173 1,889 35,462 979 64 (69,567) -
Excise taxes   -   -   (3,359)   (21,898)   -   -   (25,257)
Revenues from sales 42,162 18,025 124,128 69,287 71 (69,567) 184,106
Operating expenses (18,304) (17,434) (120,393) (66,737) (796) 69,567 (154,097)
Depreciation, depletion and impairment of tangible assets and mineral interests   (11,288)   (731)   (1,222)   (709)   (42)   -   (13,992)
Operating income 12,570 (140) 2,513 1,841 (767) - 16,017
Net income (loss) from equity affiliates and other items 2,686 318 782 307 77 - 4,170
Tax on net operating income   (6,068)   (173)   (445)   (532)   375   -   (6,843)
Net operating income 9,188 5 2,850 1,616 (315) - 13,344
Net cost of net debt (1,794)
Non-controlling interests                           (104)
Net income - group share 11,446
                             
Year 2018 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - 56 - - - - 56
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 56 - - - - 56
Operating expenses (199) (237) (616) (45) (9) - (1,106)
Depreciation, depletion and impairment of tangible assets and mineral interests   (1,256)   (516)   (2)   -   -   -   (1,774)
Operating income (b) (1,455) (697) (618) (45) (9) - (2,824)
Net income (loss) from equity affiliates and other items (335) (40) (116) (5) - - (496)
Tax on net operating income   768   (14)   205   14   -   -   973
Net operating income (b) (1,022) (751) (529) (36) (9) - (2,347)
Net cost of net debt - - - - - - (67)
Non-controlling interests   -   -   -   -   -   -   301
Net income - group share - - - - - - (2,113)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - (589) (6) -
On net operating income - - (413) (5) -
                             
Year 2018 (adjusted)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 10,989 16,080 92,025 90,206 7 - 209,307
Intersegment sales 31,173 1,889 35,462 979 64 (69,567) -
Excise taxes   -   -   (3,359)   (21,898)   -   -   (25,257)
Revenues from sales 42,162 17,969 124,128 69,287 71 (69,567) 184,050
Operating expenses (18,105) (17,197) (119,777) (66,692) (787) 69,567 (152,991)
Depreciation, depletion and impairment of tangible assets and mineral interests   (10,032)   (215)   (1,220)   (709)   (42)   -   (12,218)
Adjusted operating income 14,025 557 3,131 1,886 (758) - 18,841
Net income (loss) from equity affiliates and other items 3,021 358 898 312 77 - 4,666
Tax on net operating income   (6,836)   (159)   (650)   (546)   375   -   (7,816)
Adjusted net operating income 10,210 756 3,379 1,652 (306) - 15,691
Net cost of net debt (1,727)
Non-controlling interests                           (405)
Adjusted net income - group share 13,559
 
 
                             
Year 2018

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 15,282 3,539 1,781 1,458 125 - 22,185
Total divestments 4,952 931 919 428 9 - 7,239
Cash flow from operating activities (*)   19,803   (670)   4,308   2,759   (1,497)   -   24,703
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 and 2016 comparative information have been restated.
BUSINESS SEGMENT INFORMATION
TOTAL              
 
                             
Year 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 8,477 12,854 75,505 74,634 23 - 171,493
Intersegment sales 22,837 1,180 26,844 857 374 (52,092) -
Excise taxes   -   -   (3,008)   (19,386)   -   -   (22,394)
Revenues from sales 31,314 14,034 99,341 56,105 397 (52,092) 149,099
Operating expenses (14,672) (13,828) (94,097) (53,629) (1,107) 52,092 (125,241)
Depreciation, depletion and impairment of tangible assets and mineral interests   (13,850)   (482)   (1,074)   (657)   (40)   -   (16,103)
Operating income 2,792 (276) 4,170 1,819 (750) - 7,755
Net income (loss) from equity affiliates and other items 1,546 31 2,979 497 54 - 5,107
Tax on net operating income   (2,233)   (140)   (944)   (561)   540   -   (3,338)
Net operating income 2,105 (385) 6,205 1,755 (156) - 9,524
Net cost of net debt (1,225)
Non-controlling interests                           332
Net income - group share 8,631
                             
Year 2017 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - (20) - - - - (20)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (20) - - - - (20)
Operating expenses (119) (389) 167 (11) (64) - (416)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,308)   (291)   (53)   (10)   -   -   (4,662)
Operating income (b) (4,427) (700) 114 (21) (64) - (5,098)
Net income (loss) from equity affiliates and other items (328) (116) 2,177 102 - - 1,835
Tax on net operating income   875   (54)   124   (2)   (114)   -   829
Net operating income (b) (3,880) (870) 2,415 79 (178) - (2,434)
Net cost of net debt (29)
Non-controlling interests                           516
Net income - group share (1,947)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 344 13 -
On net operating income - - 298 (3) -
                             
Year 2017 (adjusted)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 8,477 12,874 75,505 74,634 23 - 171,513
Intersegment sales 22,837 1,180 26,844 857 374 (52,092) -
Excise taxes   -   -   (3,008)   (19,386)   -   -   (22,394)
Revenues from sales 31,314 14,054 99,341 56,105 397 (52,092) 149,119
Operating expenses (14,553) (13,439) (94,264) (53,618) (1,043) 52,092 (124,825)
Depreciation, depletion and impairment of tangible assets and mineral interests   (9,542)   (191)   (1,021)   (647)   (40)   -   (11,441)
Adjusted operating income 7,219 424 4,056 1,840 (686) - 12,853
Net income (loss) from equity affiliates and other items 1,874 147 802 395 54 - 3,272
Tax on net operating income   (3,108)   (86)   (1,068)   (559)   654   -   (4,167)
Adjusted net operating income 5,985 485 3,790 1,676 22 - 11,958
Net cost of net debt (1,196)
Non-controlling interests                           (184)
Adjusted net income - group share 10,578
 
 
                             
Year 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 12,802 797 1,734 1,457 106 - 16,896
Total divestments 1,918 73 2,820 413 40 - 5,264
Cash flow from operating activities (*)   12,821   1,055   7,411   2,221   (1,189)   -   22,319
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 and 2016 comparative information have been restated.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
4th quarter 2018

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 52,452 43 52,495
Excise taxes (6,183) - (6,183)
Revenues from sales 46,269 43 46,312
 
Purchases, net of inventory variation (31,944) (1,476) (33,420)
Other operating expenses (6,798) (115) (6,913)
Exploration costs (201) - (201)
Depreciation, depletion and impairment of tangible assets and mineral interests (3,138) (1,224) (4,362)
Other income 425 57 482
Other expense (124) (191) (315)
 
Financial interest on debt (525) (4) (529)
Financial income and expense from cash & cash equivalents (30) - (30)
Cost of net debt (555) (4) (559)
 
Other financial income 269 - 269
Other financial expense (185) - (185)
 
Net income (loss) from equity affiliates 893 (228) 665
 
Income taxes   (1,664)   1,071   (593)
Consolidated net income 3,247 (2,067) 1,180
Group share 3,164 (2,032) 1,132
Non-controlling interests 83 (35) 48
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
4th quarter 2017

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 47,330 21 47,351
Excise taxes (5,909) - (5,909)
Revenues from sales 41,421 21 41,442
 
Purchases, net of inventory variation (28,020) 361 (27,659)
Other operating expenses (6,370) (216) (6,586)
Exploration costs (287) - (287)
Depreciation, depletion and impairment of tangible assets and mineral interests (3,030) (2,661) (5,691)
Other income 220 292 512
Other expense (208) (362) (570)
 
Financial interest on debt (344) (8) (352)
Financial income and expense from cash & cash equivalents (45) - (45)
Cost of net debt (389) (8) (397)
 
Other financial income 240 - 240
Other financial expense (159) - (159)
 
Net income (loss) from equity affiliates 731 (74) 657
 
Income taxes   (1,187)   415   (772)
Consolidated net income 2,962 (2,232) 730
Group share 2,872 (1,851) 1,021
Non-controlling interests 90 (381) (291)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
 
 
Year 2018

(M$)

(unaudited)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 209,307 56 209,363
Excise taxes (25,257) - (25,257)
Revenues from sales 184,050 56 184,106
 
Purchases, net of inventory variation (125,134) (682) (125,816)
Other operating expenses (27,060) (424) (27,484)
Exploration costs (797) - (797)
Depreciation, depletion and impairment of tangible assets and mineral interests (12,218) (1,774) (13,992)
Other income 1,518 320 1,838
Other expense (448) (825) (1,273)
 
Financial interest on debt (1,866) (67) (1,933)
Financial income and expense from cash & cash equivalents (188) - (188)
Cost of net debt (2,054) (67) (2,121)
 
Other financial income 1,120 - 1,120
Other financial expense (685) - (685)
 
Net income (loss) from equity affiliates 3,161 9 3,170
 
Income taxes   (7,489)   973   (6,516)
Consolidated net income 13,964 (2,414) 11,550
Group share 13,559 (2,113) 11,446
Non-controlling interests 405 (301) 104
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
Year 2017

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 171,513 (20) 171,493
Excise taxes (22,394) - (22,394)
Revenues from sales 149,119 (20) 149,099
 
Purchases, net of inventory variation (99,534) 123 (99,411)
Other operating expenses (24,427) (539) (24,966)
Exploration costs (864) - (864)
Depreciation, depletion and impairment of tangible assets and mineral interests (11,441) (4,662) (16,103)
Other income 772 3,039 3,811
Other expense (389) (645) (1,034)
 
Financial interest on debt (1,367) (29) (1,396)
Financial income and expense from cash & cash equivalents (138) - (138)
Cost of net debt (1,505) (29) (1,534)
 
Other financial income 957 - 957
Other financial expense (642) - (642)
 
Net income (loss) from equity affiliates 2,574 (559) 2,015
 
Income taxes   (3,858)   829   (3,029)
Consolidated net income 10,762 (2,463) 8,299
Group share 10,578 (1,947) 8,631
Non-controlling interests 184 (516) (332)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

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