Total: Second Quarter and First Half 2008 Results

Strong Performance Driven by Upstream TOTAL S.A. Regulatory News: Main results( 1-2) -0- *T -- Second quarter adjusted net income( 3) 3.7 billion euros +20% 5.8 billion dollars +39% 1.65 euros per share +21% 2.58 dollars per share +41% -- First half adjusted net income 7.0 billion euros +15% 10.7 billion dollars +32% -- First half net income (Group share) 8.3 billion euros +29% *T Highlights since the beginning of the second quarter 2008 -- Upstream production increased by 1.3% to 2,353 kboe/d in the second quarter(1) -- First production from Moho Bilondo in Congo and Jura in the UK North Sea -- Temporary shutdown of the Al Jurf field in Libya following a drilling incident -- Agreement signed with Libyan national company NOC to amend and extend the contracts for Blocks NC 115 and NC 186 in the Murzuk Basin -- Start-up of U.S. Gulf Coast Sabine Pass regasification terminal where Total has secured capacity of approximately 1 Bcf/d -- Total strengthened partnership with CNOOC and signed agreement to supply China with 1 million tons per year of LNG starting in 2010 -- Confirmation of the Jubail refinery project in Saudi Arabia in partnership with Saudi Aramco -- Public offer to acquire Synenco in Canada as part of strategy to strengthen the Group's position in heavy oil -- Discoveries in the UK North Sea and Brunei -- Additional exploration acreage in Australia, Malaysia and Gulf of Mexico plus MOU agreement with SOCAR for exploration in the Absheron area in Azerbaidjan The Board of Directors of Total (Paris:FP) (LSE:TTA) (NYSE:TOT) , led by Chairman Thierry Desmarest, met on July 31, 2008 to review the Group's second quarter and first half 2008 accounts. Adjusted net income was 3,723 million euros (M EUR ), an increase of 20% compared to the second quarter 2007 and 14% compared to the first quarter 2008. Commenting on the results, CEO Christophe de Margerie said : 'In the second quarter, demand for oil remained robust, driven by continued growth in Asia and the Middle East, and despite signs of a slow down in the Atlantic Basin. Tensions around global production capacity remain even after the increased contribution of Saudi Arabia. Geopolitical uncertainties or security issues in several important growth areas combined with the ongoing decline in mature producing areas continued to constrain supply. This led to an almost continuous increase in the price of Brent crude to more than 140 dollars per barrel. Natural gas prices also rose sharply in major markets. European refining margins were high, sustained by strong demand for distillates. Further downstream in the petroleum chain, marketing was under pressure from an increase in refined product prices and European petrochemicals were squeezed by the rapid rise in the price of naphtha and by weak demand in the Atlantic Basin. In parallel, the dollar continued to depreciate, falling 14% against the euro compared to the second quarter 2007. In this environment, adjusted fully-diluted earnings per share expressed in dollars increased by 41% compared to the second quarter 2007, and the profitability of the business segments for the twelve months ended June 30, 2008 came in at 29%. This performance was driven by the Upstream segment, which demonstrated once again the strong sensitivity of its results to high hydrocarbon prices. Total also benefited from production growth of 1.3% compared to the second quarter 2007. This growth came mainly from successes on major projects operated by Total, including the West African deep-offshore with Block 17 in Angola and the new offshore Moho Bilondo field in Congo, in the Middle East with the Dolphin project, and in the North Sea with the start-up of the Jura field. The Group strengthened strategic partnerships in the Middle East and Asia by confirming with Saudi Aramco the Jubail refinery project in Saudi Arabia and by signing an agreement with CNOOC that includes an LNG sales contract for the Chinese market starting in 2010. Thanks to an adaptable workforce, an established and well-positioned presence in the industry's main growth sectors, and its many competitive advantages, Total is well prepared to anticipate the challenges of tomorrow in energy and climate change and to present balanced solutions suited to an environment undergoing dramatic changes. For this reason, Total has pursued, for many years, an investment and R&D program that is among the most intensive in the industry, is progressively repositioning its portfolio by developing new partnerships and areas of expertise for the long term, and reaffirms among its priorities the importance of safety and energy efficiency in its operations.' -- Key figures( 4) -0- *T in millions of euros 2Q08 1H08 vs 2Q08 1Q08 2Q07 vs except earnings 1H08 1H07 1H07 2Q07 per share and number of shares ---------------------------------------------------------------------- 48,2 44,213 39,094 23% Sales 92,413 76,137 21% ---------------------------------------------------------------------- Adjusted operating 7,786 7,119 5,756 35% income from 14,905 11,485 30% business segments ---------------------------------------------------------------------- Adjusted net operating 3,756 3,2 3,081 22% income from 6,956 6,029 15% business segments ---------------------------------------------------------------------- 3,099 2,731 2,092 48% - Upstream 5,83 4,053 44% 587 311 755 -22% - Downstream 898 1,463 -39% 70 158 234 -70% - Chemicals 228 513 -56% ---------------------------------------------------------------------- 3,723 3,254 3,1 20% Adjusted net 6,977 6,092 15% income ---------------------------------------------------------------------- Adjusted fully- 1.65 1.44 1.36 21% diluted 3.10 2.67 16% earnings per share (euros) ---------------------------------------------------------------------- Fully-diluted 2,252.9 2,254.0 2,278.4 -1% weighted- 2,253.4 2,279.7 -1% average shares (millions) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 4,732 3,602 3,411 39% Net income 8,334 6,46 29% (Group share) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 2,868 2,643 2,69 7% Investments 5,511 5,104 8% ---------------------------------------------------------------------- 726 198 222 x3.3 Divestments 924 466 98% ---------------------------------------------------------------------- Cash flow from 1,922 5,316 3,589 -46% operating 7,238 9,977 -27% activities ---------------------------------------------------------------------- 4,798 4,331 4,563 5% Adjusted cash 9,129 8,679 5% flow ---------------------------------------------------------------------- *T -0- *T expressed in millions 2Q08 dollars (5) 1H08 2Q08 1Q08 2Q07 vs 1H08 1H07 vs 2Q07 except earnings 1H07 per share and number of shares ---------------------------------------------------------------------- 75,298 66,213 52,703 43% Sales 141,429 101,194 40% ---------------------------------------------------------------------- Adjusted operating 12,163 10,661 7,76 57% income from 22,811 15,265 49% business segments ---------------------------------------------------------------------- Adjusted net operating 5,868 4,792 4,153 41% income from 10,645 8,013 33% business segments ---------------------------------------------------------------------- 4,841 4,09 2,82 72% - Upstream 8,922 5,387 66% 917 466 1,018 -10% - Downstream 1,374 1,944 -29% 109 237 315 -65% - Chemicals 349 682 -49% ---------------------------------------------------------------------- 5,816 4,873 4,179 39% Adjusted net 10,678 8,097 32% income ---------------------------------------------------------------------- Adjusted fully- diluted 2.58 2.16 1.83 41% earnings per 4.74 3.55 33% share (dollars) ---------------------------------------------------------------------- Fully-diluted 2,252.9 2,254.0 2,278.4 -1% weighted- 2,253.4 2,279.7 -1% average shares (millions) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 7,392 5,394 4,598 61% Net income 12,754 8,586 49% (Group share) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 4,48 3,958 3,626 24% Investments 8,434 6,784 24% ---------------------------------------------------------------------- 1,134 297 299 x3.8 Divestments 1,414 619 x2.3 ---------------------------------------------------------------------- Cash flow from 3,003 7,961 4,838 -38% operating 11,077 13,26 -16% activities ---------------------------------------------------------------------- 7,495 6,486 6,151 22% Adjusted cash 13,971 11,535 21% flow ---------------------------------------------------------------------- *T -- Second quarter 2008 results - Operating income In the second quarter 2008, the Brent price averaged 121.2 $/b, an increase of 76% compared to the second quarter 2007 and 25% compared to the first quarter 2008. The TRCV European refining margin indicator averaged 40.2 $/t over the quarter, a decrease of 6% compared to the second quarter 2007 and an increase of 63% compared to the first quarter 2008. Petrochemical margins fell sharply, notably in Europe. The euro-dollar exchange rate was 1.56 $/ EUR in the second quarter 2008 compared to 1.35 $/ EUR in the second quarter 2007 and 1.50 $/ EUR in the first quarter 2008. In this context, the adjusted operating income from the business segments was 7,786 M EUR , an increase of 35% compared to the second quarter 2007(6), or expressed in dollars an increase of 57%. The effective tax rate(7) for the business segments was 58% in the second quarter 2008 compared to 54% in the second quarter 2007, essentially due to the Upstream segment's larger contribution to the results. Adjusted net operating income from the business segments was 3,756 M EUR compared to 3,081 M EUR in the second quarter 2007, an increase of 22%. The smaller increase, compared to the percentage increase in operating income, is essentially due to the increase in the effective tax rate between the two quarters. Expressed in dollars, adjusted net operating income from the business segments was 5.9 billion dollars (B$), an increase of 41% compared to the second quarter 2007. - Net income Adjusted net income was 3,723 M EUR compared to 3,100 M EUR in the second quarter 2007, an increase of 20%. Expressed in dollars, adjusted net income increased by 39%. This excludes the after-tax inventory effect, special items, and the Group's equity share of the amortization of intangibles related to the Sanofi-Aventis merger. -- The after-tax inventory effect had a positive impact on net income of 1,154 M EUR in the second quarter 2008 and 483 M EUR in the second quarter 2007. -- Special items had a negative impact on net income of 67 M EUR in the second quarter 2008 and were comprised mainly of restructuring charges in the Downstream and Chemicals segments. Special items had a negative impact on net income of 100 M EUR in the second quarter 2007(8). -- The Group's share of the amortization of intangibles related to the Sanofi-Aventis merger had a negative impact on net income of 78 M EUR in the second quarter 2008 and 72 M EUR in the second quarter 2007. Net income (Group share) was 4,732 M EUR compared to 3,411 M EUR in the second quarter 2007. In the second quarter 2008, the Group bought back 7 million of its shares for 369 M EUR . Adjusted fully-diluted earnings per share, based on 2,252.9 million fully-diluted weighted-average shares rose to 1.65 euros from 1.36 euros in the second quarter 2007, an increase of 21%. Expressed in dollars, adjusted fully-diluted earnings per share increased by 41% to 2.58. - Investments - divestments Investments, excluding acquisitions and including net investments in equity affiliates and non-consolidated companies, were 2.1 B EUR (3.3 B$) in the second quarter 2008 compared to 2.5 B EUR (3.4 B$) in the second quarter 2007. Acquisitions were 47 M EUR in the second quarter 2008. Asset sales in the second quarter 2008 were 120 M EUR . Net investments(8) were 3.3 B$ in the second quarter 2008. - Cash flow Cash flow from operating activities was 1,922 M EUR in the second quarter 2008, a decrease of 46% compared to the second quarter 2007, mainly due to a significant increase in working capital requirements essentially linked to the sharp rise in hydrocarbon prices between the two periods. Adjusted cash flow( 9) was 4,798 M EUR , an increase of 5%. Expressed in dollars, adjusted cash flow was 7.5 B$, an increase of 22%. Net cash flow( 10) was a negative 220 M EUR compared to a positive 1,121 M EUR in the second quarter 2007. Expressed in dollars, net cash flow was a negative 0.3 B$ in the second quarter 2008. -- First half 2008 results - Operating income Compared to the first half 2007, the first half 2008 oil environment was marked by a 72% increase in the average price of Brent to 109.0 $/b. The TRCV European refining margin indicator decreased by 15% to 32.4 $/t. The environment for Total's petrochemicals was unfavorable, mainly due to the sharp increase in the price of naphtha and the decrease in Atlantic Basin product demand. The euro-dollar exchange rate was 1.53 $/ EUR in the first half 2008 compared to 1.33 $/ EUR in the first half 2007. In this context, the adjusted operating income from the business segments was 14,905 M EUR , an increase of 30% compared to the first half 2007(11). The effective tax rate for the business segments was 59% in the first half 2008 compared to 54% in the first half 2007, essentially due to the Upstream segment's larger contribution to the results. Adjusted net operating income from the business segments was 6,956 M EUR compared to 6,029 M EUR in the first half 2007, an increase of 15%. The smaller increase, compared to the percentage increase in operating income, is essentially due to the increase in the effective tax rate between the two periods. Expressed in dollars, adjusted net operating income from the business segments increased by 33%. - Net income Adjusted net income increased by 15% to 6,977 M EUR in the first half 2008 from 6,092 M EUR in the first half 2007. This excludes the after-tax inventory effect, special items, and the Group's equity share of the amortization of intangibles related to the Sanofi-Aventis merger. -- The after-tax inventory effect had a positive impact on net income of 1,428 M EUR in the first half 2008 and 616 M EUR in the first half 2007. -- Special items had a positive impact on net income of 78 M EUR in the first half 2008 and a negative impact on net income of 100 M EUR in the first half 2007(12). -- The Group's share of the amortization of intangibles related to the Sanofi-Aventis merger had a negative impact on net income of 149 M EUR in the first half 2008 and 148 M EUR in the first half 2007. Net income (Group share) was 8,334 M EUR compared to 6,460 M EUR in the first half 2007. During the first half 2008, the Group bought back 16 million of its shares for 818 M EUR . There were 2,252.5 million fully-diluted shares outstanding on June 30, 2008 compared to 2,278.6 million on June 30, 2007. The Group continued to buy back shares in July 2008, acquiring 2.1 million shares for 107 M EUR . Adjusted fully-diluted earnings per share, based on 2,253.4 million fully-diluted weighted-average shares rose to 3.10 euros compared to 2.67 euros in the first half 2007, an increase of 16%, which is greater than the increase in adjusted net income thanks to the share buyback. Expressed in dollars, adjusted fully-diluted earnings per share increased by 33% to 4.74 in the first half 2008 from 3.55 in the first half 2007. - Investments - divestments Investments, excluding acquisitions and including net investments in equity affiliates and non-consolidated companies, were 4.6 B EUR (7.0 B$) in the first half 2008 compared to 4.8 B EUR (6.4 B$) in the first half 2007. Acquisitions were 95 M EUR in the first half 2008. Asset sales in the first half 2008 were 195 M EUR . Net investments(13) were 7.0 B$ in the first half 2008. - Cash flow Cash flow from operating activities was 7,238 M EUR in the first half 2008, a decrease of 27% compared to the first half 2007, mainly due to a significant increase in working capital requirements essentially linked to the sharp rise in hydrocarbon prices between the two periods. Adjusted cash flow(14 )was 9,129 M EUR , an increase of 5%. Expressed in dollars, adjusted cash flow was 14.0 B$, an increase of 21%. Net cash flow( 15) was 2,651 M EUR compared to 5,339 M EUR in the first half 2007. Expressed in dollars, net cash flow was 4.1 B$ in the first half 2008. The net-debt-to-equity ratio was 25% on June 30, 2008 compared to 21% on March 31, 2008 and 26% on June 30, 2007(16), in line with the targets of the Group. -- Analysis of business segment results Upstream - Environment - liquids and gas price realizations * -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 121.2 96.7 68.8 +76% Brent ($/b) 109.0 63.2 +72% ---------------------------------------------------------------------- 114.9 90.7 65.7 +75% Average liquids price 102.8 60.2 +71% ($/b) 7.29 6.67 4.94 +48% Average gas price 6.97 5.32 +31% ($/Mbtu) ---------------------------------------------------------------------- 87.3 70.5 52.5 +66% Average hydrocarbons 78.8 49.9 +58% price ($/boe) ---------------------------------------------------------------------- * consolidated subsidiaries, excluding fixed margin and buy-back contracts. *T Total's average realized liquids price increased in line with Brent by 75% and 71%, respectively, for the second quarter 2008 and the first half 2008 compared to the same periods in 2007. The average realized price for Total's natural gas increased by 48% compared to the second quarter 2007. For the first half 2008 compared to the first half 2007, the increase was 31%. - Production -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs Hydrocarbon production 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 2,353 2,426 2,322 +1% Combined production 2,389 2,376 +1% (kboe/d) ---------------------------------------------------------------------- 1,471 1,510 1,475 - - Liquids (kb/d) 1,491 1,513 -1% 4,772 4,989 4,599 +4% - Gas (Mcf/d) 4,880 4,689 +4% ---------------------------------------------------------------------- *T In the second quarter 2008, hydrocarbon production was 2,353 thousand barrels of oil equivalent per day (kboe/d), an increase of 1.3% compared to the second quarter 2007, mainly as a result of : -- +3% of net growth, primarily from the start-ups and ramp-ups of major new fields, such as Dalia, Rosa and Dolphin, -- +1% for the absence of OPEC reductions, -- -2.5% for the price effect(17), -- -0.5% for changes in the portfolio. In the first half 2008, hydrocarbon production was 2,389 kboe/d, an increase of 0.5% compared to the first half 2007, mainly as a result of : -- +3.5% of net growth, primarily from the start-ups and ramp-ups of major new fields, such as Dalia, Rosa and Dolphin, -- -1% for the shutdown of Elgin-Franklin for nearly a month following an incident in the amine column, -- +1% for the absence of OPEC reductions, -- -2.5% for the price effect( 18), -- -0.5% for changes in the portfolio. - Results -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 6,964 6,423 4,44 57% Adjusted operating income * 13,387 8,815 52% ---------------------------------------------------------------------- 3,099 2,731 2,092 48% Adjusted net operating 5,83 4,053 44% income * 317 282 202 57% - includes income from 599 377 59% equity affiliates ---------------------------------------------------------------------- ---------------------------------------------------------------------- 2,076 2,178 2,109 -2% Investments 4,254 4,098 4% ---------------------------------------------------------------------- 565 107 191 x3.0 Divestments 672 364 85% ---------------------------------------------------------------------- 3,643 4,251 3,312 10% Cash flow from operating 7,894 7,647 3% activities ---------------------------------------------------------------------- 3,904 3,845 3,011 30% Adjusted cash flow 7,749 5,977 30% ---------------------------------------------------------------------- * detail of adjustment items shown in business segment information. *T Adjusted net operating income for the Upstream segment was 3,099 M EUR in the second quarter 2008 compared to 2,092 M EUR in the second quarter 2007, an increase of 48%. Expressed in dollars, adjusted net operating income for the Upstream segment increased by 72%, mainly due to the increase in hydrocarbon prices. Compared to the second quarter 2007, the increase in income from equity affiliates is due essentially to the change in the method of consolidation for PetroCedeno effective December 31, 2007 and increased contributions from LNG activities. The effective tax rate for the Upstream segment was 61% compared to 62% in the first quarter 2008 and 60% in the second quarter 2007. Adjusted net operating income for the Upstream segment in the first half 2008 was 5,830 M EUR compared to 4,053 M EUR in the first half 2007, an increase of 44%. Expressed in dollars, adjusted net operating income for the Upstream segment rose by 3.5 B$, an increase of 66% mainly due to the increase in hydrocarbon prices. The return on average capital employed (ROACE(18)) for the Upstream segment for the twelve months ended June 30, 2008 was 41%. For the twelve months ended March 31, 2008 it was 38% and for the full year 2007 it was 34%. Downstream - Refinery throughput and utilization rates * -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs Refinery throughput 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 2,297 2,389 2,354 -2% Total refinery throughput 2,341 2,386 -2% (kb/d) ---------------------------------------------------------------------- 932 930 936 - - France 931 961 -3% 1,055 1,169 1,112 -5% - Rest of Europe 1,111 1,139 -2% 310 290 306 +1% - Rest of world 299 286 +5% ---------------------------------------------------------------------- Utilization rates 85% 87% 85% - Based on crude only 86% 86% 88% 92% 87% - Based on crude and 90% 88% other feedstock ---------------------------------------------------------------------- * includes share of CEPSA. *T Second quarter 2008 refinery throughput decreased by 2% compared to the second quarter 2007. Excluding the impact of the November 2007 sale of the Milford Haven refinery in the UK, refinery throughput increased by 1%. In the second quarter 2008 scheduled turnarounds resulted in a complete shutdown of the Leuna refinery and partial shutdowns of the Normandy and Grandpuits refineries. In the second quarter 2007, there were scheduled partial turnarounds at the Donges, Antwerp, Vlissingen, and Flanders refineries. In the first quarter 2008 there were scheduled partial turnarounds at the Grandpuits, Port Arthur, Flanders and Normandy refineries. The second quarter 2008 utilization rate based on crude throughput was 85%, stable compared to the second quarter 2007 and lower compared to the first quarter 2008. The utilization rate based on the throughput of crude and other feedstock increased compared to the second quarter 2007 but decreased compared to the first quarter of 2008. The decrease in the utilization rates between the first and second quarters in 2008 is due essentially to the impact of the complete shutdown of the Leuna refinery. - Results -0- *T 2Q08 in millions of euros 1H08 2Q08 1Q08 2Q07 vs except TRCV refining 1H08 1H07 vs 2Q07 margins 1H07 ---------------------------------------------------------------------- 40.2 24.6 42.8 -6% European refining margin 32.4 37.9 -15% indicator - TRCV ($/t) ---------------------------------------------------------------------- 744 498 1,004 -26% Adjusted operating income * 1,242 1,977 -37% ---------------------------------------------------------------------- 587 311 755 -22% Adjusted net operating 898 1,463 -39% income * 15 2 75 -80% - includes income from 17 138 -88% equity affiliates ---------------------------------------------------------------------- ---------------------------------------------------------------------- 514 294 401 28% Investments 808 645 25% ---------------------------------------------------------------------- 128 24 28 x4.6 Divestments 152 50 x3.0 ---------------------------------------------------------------------- -1,391 1,168 1,432 na Cash flow from operating -223 3,337 na activities ---------------------------------------------------------------------- 623 520 999 -38% Adjusted cash flow 1,143 2,038 -44% ---------------------------------------------------------------------- * detail of adjustment items shown in business segment information. *T The TRCV European refinery indicator was 40.2 $/t in the second quarter 2008, a decrease of 6% compared to the second quarter 2007 and an increase of 63% compared to the first quarter 2008. Distillate margins rose to a high level, mainly due to sustained demand. Adjusted net operating income for the Downstream segment was 587 M EUR in the second quarter 2008, a decrease of 22% compared to the second quarter 2007 but an increase of 89% compared to the first quarter 2008. Expressed in dollars, adjusted net operating income for the Downstream segment was 917 M$, a decrease of 10% compared to the second quarter 2007, mainly as a result of lower contributions from equity affiliates (essentially Wepec in China and CEPSA). Compared to the first quarter 2008, adjusted net operating income for the Downstream segment increased by 97%, driven by the improvement in European refinery margins. Adjusted net operating income for the Downstream segment was 898 M EUR in the first half 2008, a decrease of 39% compared to the first half 2007. Expressed in dollars, adjusted net operating income from the Downstream segment decreased by 29% or 0.6 B$, reflecting generally the less favorable environment for refining and marketing. The ROACE(19) for the Downstream segment for the twelve months ended June 30, 2008 was 16%. For the twelve months ended March 31, 2008 it was 19% and for the full year 2007 it was 21%. Chemicals -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 5,478 5,229 5,07 8% Sales 10,707 10,065 6% 3,632 3,42 3,202 13% - Base chemicals 7,052 6,353 11% 1,846 1,809 1,868 -1% - Specialties 3,655 3,712 -2% ---------------------------------------------------------------------- ---------------------------------------------------------------------- 78 198 312 -75% Adjusted operating income 276 693 -60% * ---------------------------------------------------------------------- 70 158 234 -70% Adjusted net operating 228 513 -56% income * -23 61 110 na - Base chemicals 38 299 -87% 97 98 124 -22% - Specialties 195 217 -10% ---------------------------------------------------------------------- ---------------------------------------------------------------------- 221 164 173 28% Investments 385 346 11% ---------------------------------------------------------------------- 12 7 1 x12 Divestments 19 48 -60% ---------------------------------------------------------------------- 169 -202 254 -33% Cash flow from operating -33 361 na activities ---------------------------------------------------------------------- 152 266 302 -50% Adjusted cash flow 418 631 -34% ---------------------------------------------------------------------- * detail of adjustment items shown in business segment information. *T Petrochemical margins were weak in the second quarter 2008, reflecting the squeeze of rapidly rising naphtha prices and weakening demand in the Atlantic Basin. In the second quarter 2008, sales for the Chemicals segment were 5,478 M EUR . Adjusted net operating income for the Chemicals segment was 70 M EUR , a decrease of 70% compared to the second quarter 2007. The decrease in the results of the Base chemicals was due primarily to lower petrochemical margins, the impact of which was partially offset by the positive contribution from ethane-based production in Qatar. The results of the Specialties continued to be satisfactory despite signs of weakening economic conditions and the depreciation of the dollar. In the first half 2008, adjusted net operating income for the Chemicals segment was 228 M EUR compared to 513 M EUR in the first half 2007, a decrease of 56% resulting mainly from the weakness in the environment. Expressed in dollars, the decrease was 49%, or 0.3 B$. The ROACE(20) for the Chemicals segment for the twelve months ended June 30, 2008 was 8%. For the twelve months ended March 31, 2008 it was 10% and for the full year 2007 it was 12%. -- Cancellation of outstanding shares The Board of Directors met on July 31, 2008 and approved the cancellation of the 30,000,000 shares bought in 2007. The share capital has been adjusted to 5,926,006,207.50 euros represented by 2,370,402,483 shares with a par value of 2.5 EUR . -- TOTAL S.A. - parent company accounts Net income for TOTAL S.A., the parent company, was 3,083 M EUR in the first half of 2008 compared to 2,804 M EUR in the first half of 2007. -- Summary and outlook The ROACE for the twelve months ended June 30, 2008 was 25% for the Group and 29% for the business segments compared respectively to 26% and 28% for the twelve months ended March 31, 2008 and 24% and 27% for the full year 2007. Return on equity for the twelve months ended June 30, 2008 was 30%. In the first half 2008, implementation of the ambitious investment program progressed as planned. The Group maintains its net-debt-to-equity ratio within the 20-30% band. Since the start of the third quarter 2008, oil prices have remained at high levels. European refining margins have retreated compared to the average level of the second quarter, but distillate margins are still attractive. Petrochemical margins continue to be hurt by high naphtha prices and weak demand in the Atlantic Basin. Moho Bilondo in offshore Congo and Jura in the UK North Sea are expected to ramp up gradually over the coming months. Production from Al Jurf in Libya is expected to be restored in the fourth quarter. The Group plans to continue to adapt its refining and petrochemicals activities to new market trends, notably by improving the energy efficiency of its facilities, by responding to the growing demand for diesel and by managing its surplus of gasoline in Europe. With a solid portfolio of assets, Total is well positioned to continue to benefit from this volatile but favorable oil market environment. To listen to CFO Patrick de la Chevardiere's conference call with financial analysts today at 15:00 (Paris time) please log on to www.total.com or call +44 (0)203 043 2441 in Europe or +1 866 907 5924 in the U.S. (access code : Total). For a replay through August 15, please consult the website or call +44 (0)207 075 3214 in Europe or 1 866 828 2261 in the US (code : 220 511). This document does not constitute the Financial Report for the first half 2008 which will be separately published, in accordance with article L.451-1-2 III of the French Code monetaire et financier, and is available on our web site www.total.com or upon request at the company's headquarters. The June 30, 2008 notes to the condensed consolidated accounts are available on the Total web site (www.total.com). This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business, strategy and plans of Total. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. Total does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the company's financial results is provided in documents filed by the Group and its affiliates with the French Autorite des Marches Financiers and the US Securities and Exchange Commission. Business segment information is presented in accordance with the Group internal reporting system used by the Chief operating decision maker to measure performance and allocate resources internally. Due to their particular nature or significance, certain transactions qualified as 'special items' are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, certain transactions such as restructuring costs or assets disposals, which are not considered to be representative of normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to recur within following years. The adjusted results of the Downstream and Chemical segments are also presented according to the replacement cost method. This method is used to assess the segments' performance and ensure the comparability of the segments' results with those of its competitors, mainly North American. In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the income statement is determined by the average price of the period rather than the historical value. The inventory valuation effect is the difference between the results according to FIFO (First-In, First-Out) and replacement cost. In this framework, performance measures such as adjusted operating income, adjusted net operating income and adjusted net income are defined as incomes using replacement cost, adjusted for special items and excluding Total's equity share of the amortization of intangibles related to the Sanofi-Aventis merger. They are meant to facilitate the analysis of the financial performance and the comparison of income between periods. Dollar amounts presented herein represent euro amounts converted at the average euro-dollar exchange rate for the applicable period and are not the result of financial statements prepared in dollars. Operating information by segment Second quarter and first half 2008 -- Upstream -0- *T 2Q08 Combined liquids and gas 1H08 2Q08 1Q08 2Q07 vs production by region 1H08 1H07 vs 2Q07 (kboe/d) 1H07 ---------------------------------------------------------------------- 601 626 644 -7% Europe 614 695 -12% 796 851 795 - Africa 822 790 +4% 14 15 21 -33% North America 15 24 -37% 246 251 247 - Far East 249 251 -1% 433 438 359 +21% Middle East 435 380 +14% 236 217 243 -3% South America 226 225 - 27 28 13 x2.1 Rest of world 28 11 x2.5 ---------------------------------------------------------------------- 2,353 2,426 2,322 +1% Total production 2,389 2,376 +1% ---------------------------------------------------------------------- 418 396 310 +35% Includes equity and non- 407 325 +25% consolidated affiliates ---------------------------------------------------------------------- *T -0- *T 2Q08 Liquids production by region 1H08 2Q08 1Q08 2Q07 vs (kb/d) 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 299 299 315 -5% Europe 299 344 -13% 667 716 670 - Africa 691 675 +2% 11 11 15 -27% North America 11 16 -31% 27 27 28 -4% Far East 27 29 -7% 331 335 308 +7% Middle East 333 324 +3% 125 110 130 -4% South America 118 116 +2% 11 12 9 +22% Rest of world 12 9 +33% ---------------------------------------------------------------------- 1,471 1,510 1,475 - Total production 1,491 1,513 -1% ---------------------------------------------------------------------- 366 339 262 +40% Includes equity and non- 353 272 +30% consolidated affiliates ---------------------------------------------------------------------- *T -0- *T 2Q08 Gas production by region 1H08 2Q08 1Q08 2Q07 vs (Mcf/d) 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 1,639 1,775 1,785 -8% Europe 1,707 1,901 -10% 667 690 640 +4% Africa 678 591 +15% 19 23 33 -42% North America 21 39 -46% 1,210 1,245 1,228 -1% Far East 1,228 1,244 -1% 548 580 267 x2.1 Middle East 564 296 x1.9 610 589 625 -2% South America 600 602 - 79 87 21 x3.8 Rest of world 82 16 x5.1 ---------------------------------------------------------------------- 4,772 4,989 4,599 +4% Total production 4,880 4,689 +4% ---------------------------------------------------------------------- 281 306 255 +10% Includes equity and non- 294 284 +4% consolidated affiliates ---------------------------------------------------------------------- *T -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs Liquefied natural gas 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 2.21 2.36 2.18 +1% LNG sales* (Mt)** 4.57 4.43 +3% ---------------------------------------------------------------------- * sales, Group share, excluding trading. ** 1 Mt/y = approx. 133 Mcf/d. *T -- Downstream -0- *T 2Q08 Refined products 1H08 2Q08 1Q08 2Q07 vs sales by region 1H08 1H07 vs 2Q07 (kb/d)* 1H07 ---------------------------------------------------------------------- 1,999 2,144 2,185 -9% Europe 2,071 2,244 -8% 280 280 283 -1% Africa 280 283 -1% 220 156 153** +44% Americas 188 120** +57% 143 145 144 -1% Rest of world 144 141 +2% ---------------------------------------------------------------------- Total 2,642 2,725 2,765** -4% consolidated 2,683 2,788** -4% sales ---------------------------------------------------------------------- 956 944 1,010 -5% Trading 950 922 +3% ---------------------------------------------------------------------- ---------------------------------------------------------------------- 3,598 3,669 3,775** -5% Total refined 3,633 3,710** -2% product sales ---------------------------------------------------------------------- * includes share of CEPSA. ** the method of calculating volumes for Port Arthur was changed effective in 2008 *T Adjustment items -- Adjustments to operating income from business segments -0- *T 2Q08 1Q08 2Q07 in millions of euros 1H08 1H07 ---------------------------------------------------------------------- - - - Special items affecting operating income - from the business segments ---------------------------------------------------------------------- - - - - Restructuring charges - - - - - Impairments - - - - - Other - ---------------------------------------------------------------------- 1,687 375 719 Pre-tax inventory effect : FIFO vs. 2,062 893 replacement cost ---------------------------------------------------------------------- ---------------------------------------------------------------------- 1,687 375 719 Total adjustments affecting operating 2,062 893 income from the business segments ---------------------------------------------------------------------- *T -- Adjustments to net income (Group share) -0- *T 2Q08 1Q08 2Q07 in millions of euros 1H08 1H07 ---------------------------------------------------------------------- (67) 145 (100) Special items affecting net income 78 (100) (Group share) ---------------------------------------------------------------------- - - - - Equity share of special items - - recorded by Sanofi-Aventis 2 145 - - Gain on asset sales 147 - (44) - - - Restructuring charges (44) - - - - - Impairments - - (25) - (100) - Other (25) (100) ---------------------------------------------------------------------- Adjustment related to the Sanofi- (78) (71) (72) Aventis merger* (share of (149) (148) amortization of intangible assets) ---------------------------------------------------------------------- 1,154 274 483 After-tax inventory effect : FIFO 1,428 616 vs. replacement cost ---------------------------------------------------------------------- ---------------------------------------------------------------------- 1,009 348 311 Total adjustments to net income 1,357 368 ---------------------------------------------------------------------- * based on Total's share in Sanofi-Aventis of 13% at 6/30/2008, 3/31/2008, and 6/30/2007 *T Investments - Divestments -0- *T 2Q08 1H08 2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs 2Q07 1H07 ---------------------------------------------------------------------- 2,091 2,498 2,520 -17% Investments excluding 4,589 4,796 -4% acquisitions* 205 172 161 +27% - Capitalized exploration 377 403 -6% - Net investments in equity (522) 112 20 na affiliates and non- (410) 64 na consolidated companies ---------------------------------------------------------------------- 47 48 56 -16% Acquisitions 95 67 +42% ---------------------------------------------------------------------- 120 75 82 +46% Asset sales 195 173 +13% ---------------------------------------------------------------------- 2,142 2,445 2,468 -13% Net investments** 4,587 4,638 -1% ---------------------------------------------------------------------- * includes net investments in equity affiliates and non-consolidated companies. ** net investments = investments including acquisitions and net investments in equity affiliates and non-consolidated companies - asset sales + net financing for employees related to stock purchase plans. *T Net-debt-to equity ratio -0- *T in millions of euros 6/30/2008 3/31/2008 6/30/2007 ---------------------------------------------------------------------- Current borrowings 4,795 4,861 9,809 Net current financial assets (49) (238) (10,790) Non-current financial debt 14,777 13,388 15,045 Hedging instruments of non-current debt (540) (651) (287) Cash and cash equivalents (7,245) (8,341) (2,858) ---------------------------------------------------------------------- Net debt 11,738 9,019 10,919 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Shareholders equity 48,273 45,750 43,657 Estimated dividend payable* (2,315) (3,537) (2,110) Minority interests 855 833 817 ---------------------------------------------------------------------- Equity 46,813 43,046 42,364 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Net-debt-to-equity ratio 25.1% 21.0% 25.8% ---------------------------------------------------------------------- * for 6/30/2008, based on a dividend of 2.07 EUR /share of 2.5 EUR of par value *T Effective tax rates -0- *T 2Q08 1Q08 2Q07 Average tax rates * 1H08 1H07 ---------------------------------------------------------------------- 61.2% 62.3% 59.9% Upstream 61.8% 60.1% 57.8% 59.4% 54.0% Group 58.6% 54.0% ---------------------------------------------------------------------- * tax on adjusted net operating income / (adjusted net operating income - income from affiliates, dividends received from investments, and impairments of acquisition goodwill + tax on adjusted net operating income). *T 2008 Sensitivities* -0- *T Impact on Impact on Scenario Change adjusted adjusted net operating operating income(e) income (e) ---------------------------------------------------------------------- EUR -$ 1.50 $/ EUR +0.1 $ per -1.5 B EUR -0.8 B EUR EUR ---------------------------------------------------------------------- Brent 80 $/b +1 $/b +0.28 B EUR +0.12 B EUR / 0.42 B$ / 0.18 B$ ---------------------------------------------------------------------- European +0.08 B EUR +0.05 B EUR refining 33 $/t +1 $/t / 0.12 B$ / 0.08 B$ margins TRCV ---------------------------------------------------------------------- * sensitivities revised once per year upon publication of the previous year fourth quarter results. The impact of the EUR -$ sensitivity on the adjusted operating income and the adjusted net operating income attributable to the Upstream segment are approximately 70% and 60% respectively, and the remaining impact of the EUR -$ sensitivity is essentially split between the Downstream and Chemicals segments. *T Return on average capital employed -- For the twelve months ended June 30, 2008 -0- *T in millions of euros Upstream Downstream Chemicals** Segments Group ---------------------------------------------------------------------- Adjusted net operating income 10,626 1,970 562 13,158 13,810 Capital employed at 6/30/2007* 25,218 11,204 7,264 43,686 52,645 Capital employed at 6/30/2008* 26,676 13,491 7,394 47,561 56,107 ---------------------------------------------------------------------- ROACE 41.0% 16.0% 7.7% 28.8% 25.4% ---------------------------------------------------------------------- * at replacement cost (excluding after-tax inventory effect). ** capital employed for Chemicals reduced for the Toulouse-AZF provision of 146 M EUR pre-tax at 6/30/2007 and 126 M EUR pre-tax at 6/30/2008. *T -- For the twelve months ended March 31, 2008 -0- *T in millions of euros Upstream Downstream Chemicals** Segments Group ---------------------------------------------------------------------- Adjusted net 9,619 2,138 726 12,483 13,147 operating income Capital employed at 24,808 11,442 7,129 43,379 50,773 3/31/2007* Capital employed at 25,731 11,415 7,266 44,412 52,015 3/31/2008* ---------------------------------------------------------------------- ROACE 38.1% 18.7% 10.1% 28.4% 25.6% ---------------------------------------------------------------------- * at replacement cost (excluding after-tax inventory effect). ** capital employed for Chemicals reduced for the Toulouse-AZF provision of 153 M EUR pre-tax at 3/31/2007 and 129 M EUR pre-tax at 3/31/2008. *T -- For the twelve months ended December 31, 2007 -0- *T in millions of euros Upstream Downstream Chemicals** Segments Group ---------------------------------------------------------------------- Adjusted net 8,849 2,535 847 12,231 12,881 operating income Capital employed at 25,543 12,384 6,920 44,847 52,263 12/31/2006* Capital employed at 27,062 12,190 7,033 46,285 54,158 12/31/2007* ---------------------------------------------------------------------- ROACE 33.6% 20.6% 12.1% 26.8% 24.2% ---------------------------------------------------------------------- * at replacement cost (excluding after-tax inventory effect). ** capital employed for Chemicals reduced for the Toulouse-AZF provision of 176 M EUR pre-tax at 12/31/2006 and 134 M EUR pre- tax at 12/31/2007. *T (1) percent changes are relative to the same period 2007. (2) dollar amounts represent euro amounts converted at the average EUR -$ exchange rate for the period : 1.5622 $/ EUR in the second quarter 2008, 1.3481$/ EUR in the second quarter 2007, 1.4976 $/ EUR in the first quarter 2008, 1.5304 $/ EUR in the first half 2008, and 1.3291 $/ EUR in the first half 2007. (3) adjusted net income = net income using replacement cost (Group share) adjusted for special items and excluding Total's share of amortization of intangibles related to the Sanofi-Aventis merger. Net income (Group share) for the second quarter 2008 was 4,732 M EUR . (4) adjusted income (adjusted operating income, adjusted net operating income and adjusted net income) is defined as income using replacement cost, adjusted for special items and excluding Total's equity share of amortization of intangibles related to the Sanofi-Aventis merger; adjusted cash flow is defined as cash flow from operating activities at replacement cost before changes in working capital; adjustment items are listed on page 17. (5)dollar amounts represent euro amounts converted at the average EUR -$ exchange rate for the period. (6) there were no special items affecting operating income from the business segments in the second quarters of 2007 and 2008. (7) defined as: (tax on adjusted net operating income) / (adjusted net operating income - income from equity affiliates, dividends received from investments and impairments of acquisition goodwill + tax on adjusted net operating income). (8) detail shown on page 17 (9) net investments = investments including acquisitions and net investments in equity affiliates and non-consolidated companies - asset sales + net financing for employees related to stock purchase plans. (10) adjusted cash flow = cash flow from operating activities at replacement cost before changes in working capital. (11) net cash flow = cash flow from operating activities + divestments - gross investments. (12) there were no special items affecting operating income from the business segments in the first half of 2007 and first half of 2008. (13) detail shown on page 17. (14) net investments = investments including acquisitions and net investments in equity affiliates and non-consolidated companies - asset sales + net financing for employees related to stock purchase plans. (15) adjusted cash flow = cash flow from operations at replacement cost before changes in working capital. (16) net cash flow = cash flow from operations + divestments - gross investments. (17) detail shown on page 18. (18) impact of changing hydrocarbon prices on entitlement volumes. (19) calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19. (20) calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19. (21) calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19. Main indicators Chart updated around the middle of the month following the end of each quarter -0- *T European Average EUR refining Brent liquids Average gas margins ($/b) price** price /$ TRCV* ($/b) ($/Mbtu)** ($/t) ---------------------------------------------------------------------- Second quarter 2008 1.56 40.2 121.2 114.9 7.29 ---------------------------------------------------------------------- First quarter 2008 1.50 24.6 96.7 90.7 6.67 ---------------------------------------------------------------------- Fourth quarter 2007 1.45 30.1 88.5 84.5 6.08 ---------------------------------------------------------------------- Third quarter 2007 1.37 23.9 74.7 71.4 4.83 ---------------------------------------------------------------------- Second quarter 2007 1.35 42.8 68.8 65.7 4.94 ---------------------------------------------------------------------- First quarter 2007 1.31 33.0 57.8 55.0 5.69 ---------------------------------------------------------------------- Fourth quarter 2006 1.29 22.8 59.6 57.1 6.16 ---------------------------------------------------------------------- Third quarter 2006 1.27 28.7 69.5 65.4 5.59 ---------------------------------------------------------------------- Second quarter 2006 1.26 38.3 69.6 66.2 5.75 ---------------------------------------------------------------------- First quarter 2006 1.20 25.8 61.8 58.8 6.16 ---------------------------------------------------------------------- Fourth quarter 2005 1.19 45.5 56.9 54.5 5.68 ---------------------------------------------------------------------- Third quarter 2005 1.22 44.3 61.5 57.8 4.65 ---------------------------------------------------------------------- Second quarter 2005 1.26 45.0 51.6 48.0 4.39 ---------------------------------------------------------------------- First quarter 2005 1.31 31.7 47.6 44.1 4.40 ---------------------------------------------------------------------- Fourth quarter 2004 1.30 42.4 44.0 40.6 4.24 ---------------------------------------------------------------------- Third quarter 2004 1.22 32.9 41.5 39.5 3.54 ---------------------------------------------------------------------- Second quarter 2004 1.20 34.4 35.4 34.2 3.44 ---------------------------------------------------------------------- First quarter 2004 1.25 21.6 32.0 31.0 3.70 ---------------------------------------------------------------------- Fourth quarter 2003 1.19 18.9 29.4 28.4 3.46 ---------------------------------------------------------------------- Third quarter 2003 1.12 14.6 28.4 27.6 3.04 ---------------------------------------------------------------------- Second quarter 2003 1.14 17.6 26.0 25.0 3.19 ---------------------------------------------------------------------- First quarter 2003 1.07 32.3 31.5 30.8 3.39 ---------------------------------------------------------------------- * 1 $/t = 0.136 $/b ** consolidated subsidiaries, excluding fixed margin and buy-back contracts Disclaimer : these data are based on Total's reporting and are not audited. They are subject to change. *T Total Financial statements Second quarter and first half 2008 consolidated accounts, IFRS -0- *T CONSOLIDATED STATEMENT OF INCOME TOTAL (unaudited) 2nd 1st 2nd quarter quarter quarter (M EUR ) (a) 2008 2008 2007 ---------------------------------------------------------------------- Sales 48,200 44,213 39,094 Excise taxes (4,900) (4,926) (5,595) Revenues from sales 43,300 39,287 33,499 Purchases, net of inventory variation (27,958) (25,619) (21,385) Other operating expenses (4,439) (4,832) (4,139) Exploration costs (203) (190) (255) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,384) (1,294) (1,365) Other income 15 153 60 Other expense (121) (48) (102) Financial interest on debt (204) (257) (447) Financial income from marketable securities and cash equivalents 113 129 337 Cost of net debt (91) (128) (110) Other financial income 229 116 209 Other financial expense (80) (71) (74) Income taxes (4,931) (4,217) (3,292) Equity in income (loss) of affiliates 538 546 449 ---------------------------------------------------------------------- Consolidated net income 4,875 3,703 3,495 ---------------------------------------------------------------------- Group share * 4,732 3,602 3,411 Minority interests 143 101 84 ---------------------------------------------------------------------- Earnings per share (euros) 2.12 1.61 1.51 ---------------------------------------------------------------------- Fully-diluted earnings per share (euros) *** 2.10 1.60 1.50 ---------------------------------------------------------------------- ---------------------------------------------------------------------- * Adjusted net income 3,723 3,254 3,100 ---------------------------------------------------------------------- ** Adjusted fully-diluted earnings per share (euros) 1.65 1.44 1.36 ---------------------------------------------------------------------- (a) Except for earnings per share. *T -0- *T CONSOLIDATED STATEMENT OF INCOME TOTAL (unaudited) 1st half 1st half (M EUR ) (a) 2008 2007 ---------------------------------------------------------------------- Sales 92,413 76,137 Excise taxes (9,826) (10,961) Revenues from sales 82,587 65,176 Purchases, net of inventory variation (53,577) (41,094) Other operating expenses (9,271) (8,791) Exploration costs (393) (469) Depreciation, depletion, and amortization of tangible assets and mineral interests (2,678) (2,665) Other income 168 156 Other expense (169) (166) Financial interest on debt (461) (877) Financial income from marketable securities and cash equivalents 242 631 Cost of net debt (219) (246) Other financial income 345 337 Other financial expense (151) (141) Income taxes (9,148) (6,382) Equity in income (loss) of affiliates 1,084 918 ---------------------------------------------------------------------- Consolidated net income 8,578 6,633 ---------------------------------------------------------------------- Group share * 8,334 6,460 ---------------------------------------------------------------------- Minority interests 244 173 ---------------------------------------------------------------------- Earnings per share (euros) 3.72 2.86 ---------------------------------------------------------------------- Fully-diluted earnings per share (euros) ** 3.70 2.83 ---------------------------------------------------------------------- ---------------------------------------------------------------------- * Adjusted net income 6,977 6,092 ---------------------------------------------------------------------- ** Adjusted fully-diluted earnings per share (euros) 3.10 2.67 ---------------------------------------------------------------------- (a) Except for earnings per share *T -0- *T CONSOLIDATED BALANCE SHEET TOTAL June 30, March 31, December June 30, 2008 2008 31, 2007 (M EUR ) (unaudited) (unaudited) 2007 (unaudited) ---------------------------------------------------------------------- ASSETS Non-current assets Intangible assets, net 4,381 4,374 4,650 4,729 Property, plant and equipment, net 41,756 40,436 41,467 42,090 Equity affiliates : investments and loans 14,524 15,039 15,280 13,619 Other investments 1,246 1,215 1,291 1,385 Hedging instruments of non-current financial debt 540 651 460 287 Other non-current assets 2,179 2,066 2,155 1,801 ---------------------------------------------------------------------- Total non-current assets 64,626 63,781 65,303 63,911 ---------------------------------------------------------------------- Current assets Inventories, net 17,185 13,892 13,851 12,009 Accounts receivable, net 21,856 18,664 19,129 17,024 Other current assets 9,644 8,261 8,006 7,155 Current financial assets 223 403 1,264 10,883 Cash and cash equivalents 7,245 8,341 5,988 2,858 ---------------------------------------------------------------------- Total current assets 56,153 49,561 48,238 49,929 ---------------------------------------------------------------------- Total assets 120,779 113,342 113,541 113,840 LIABILITIES & SHAREHOLDERS' EQUITY Shareholders' equity Common shares 6,003 5,990 5,989 5,983 Paid-in surplus and retained earnings 55,024 52,376 48,797 44,238 Currency translation adjustment (6,483) (6,653) (4,396) (1,885) Treasury shares (6,271) (5,963) (5,532) (4,679) ---------------------------------------------------------------------- Total shareholders' equity - Group share 48,273 45,750 44,858 43,657 ---------------------------------------------------------------------- Minority interests 855 833 842 817 ---------------------------------------------------------------------- Total shareholders' equity 49,128 46,583 45,700 44,474 ---------------------------------------------------------------------- Non-current liabilities Deferred income taxes 7,748 7,840 7,933 7,442 Employee benefits 2,533 2,489 2,527 2,814 Other non-current liabilities 6,567 6,431 6,843 6,359 ---------------------------------------------------------------------- Total non-current liabilities 16,848 16,760 17,303 16,615 ---------------------------------------------------------------------- Non-current financial debt 14,777 13,388 14,876 15,045 ---------------------------------------------------------------------- Current liabilities Accounts payable 19,297 17,240 18,183 14,418 Other creditors and accrued liabilities 15,760 14,345 12,806 13,386 Current borrowings 4,795 4,861 4,613 9,809 Other current financial liabilities 174 165 60 93 ---------------------------------------------------------------------- Total current liabilities 40,026 36,611 35,662 37,706 ---------------------------------------------------------------------- Total liabilities and shareholders' equity 120,779 113,342 113,541 113,840 *T -0- *T CONSOLIDATED STATEMENT OF CASH FLOW TOTAL (unaudited) 2nd 1st 2nd quarter quarter quarter (M EUR ) 2008 2008 2007 ---------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES Consolidated net income 4,875 3,703 3,495 Depreciation, depletion and amortization 1,482 1,405 1,495 Non-current liabilities, valuation allowances and deferred taxes 32 11 315 Impact of coverage of pension benefit plans - - - (Gains) Losses on disposals of assets (15) (153) (66) Undistributed affiliates' equity earnings 104 (302) 1 (Increase) Decrease in operating assets and liabilities (4,563) 610 (1,693) Other changes, net 7 42 42 ---------------------------------------------------------------------- Cash flow from operating activities 1,922 5,316 3,589 CASH FLOW USED IN INVESTING ACTIVITIES Intangible assets and property, plant and equipment additions (2,619) (2,327) (2,509) Acquisitions of subsidiaries, net of cash acquired - - - Investments in equity affiliates and other securities (41) (107) (47) Increase in non-current loans (208) (209) (134) ---------------------------------------------------------------------- Total expenditures (2,868) (2,643) (2,690) Proceeds from disposal of intangible assets and property, plant and equipment 16 6 18 Proceeds from disposal of subsidiaries, net of cash sold 84 - - Proceeds from disposal of non-current investments 20 69 64 Repayment of non-current loans 606 123 140 ---------------------------------------------------------------------- Total divestments 726 198 222 ---------------------------------------------------------------------- Cash flow used in investing activies (2,142) (2,445) (2,468) CASH FLOW FROM (USED IN) FINANCING ACTIVITIES Issuance (Repayment) of shares: - Parent company shareholders 233 9 10 - Treasury shares (284) (427) (295) - Minority shareholders - (9) - Cash dividends paid to: - Parent company shareholders (2,404) - (2,262) - Minority shareholders (127) (1) (133) Net issuance (repayment) of non-current debt 1,562 503 1,309 Increase (Decrease) in current borrowings 55 (887) (135) Increase (Decrease) in current financial assets and liabilities (18) 835 138 Other changes, net - - - ---------------------------------------------------------------------- Cash flow from (used in) financing activities (983) 23 (1,368) ---------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (1,203) 2,894 (247) Effect of exchange rates and changes in scope of consolidation 107 (541) 143 Cash and cash equivalents at the beginning of the period 8,341 5,988 2,962 ---------------------------------------------------------------------- Cash and cash equivalents at the end of the period 7,245 8,341 2,858 ---------------------------------------------------------------------- *T -0- *T CONSOLIDATED STATEMENT OF CASH FLOW TOTAL (unaudited) 1st 1st half half (M EUR ) 2008 2007 ---------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES Consolidated net income 8,578 6,633 Depreciation, depletion and amortization 2,887 2,933 Non-current liabilities, valuation allowances and deferred taxes 43 288 Impact of coverage of pension benefit plans - - (Gains) Losses on disposals of assets (168) (141) Undistributed affiliates' equity earnings (198) (329) (Increase) Decrease in operating assets and liabilities (3,953) 405 Other changes, net 49 188 ---------------------------------------------------------------------- Cash flow from operating activities 7,238 9,977 CASH FLOW USED IN INVESTING ACTIVITIES Intangible assets and property, plant and equipment additions (4,946) (4,632) Acquisitions of subsidiaries, net of cash acquired - (20) Investments in equity affiliates and other securities (148) (147) Increase in non-current loans (417) (305) ---------------------------------------------------------------------- Total expenditures (5,511) (5,104) Proceeds from disposal of intangible assets and property, plant and equipment 22 90 Proceeds from disposal of subsidiaries, net of cash sold 84 - Proceeds from disposal of non-current investments 89 83 Repayment of non-current loans 729 293 ---------------------------------------------------------------------- Total divestments 924 466 ---------------------------------------------------------------------- Cash flow used in investing activies (4,587) (4,638) CASH FLOW USED IN FINANCING ACTIVITIES Issuance (Repayment) of shares: - Parent company shareholders 242 15 - Treasury shares (711) (568) - Minority shareholders (9) - Cash dividends paid to: - Parent company shareholders (2,404) (2,262) - Minority shareholders (128) (162) Net issuance (repayment) of non-current debt 2,065 2,413 Increase (Decrease) in current borrowings (832) 2,507 Increase (Decrease) in current financial assets and liabilities 817 (6,968) Other changes, net - - ---------------------------------------------------------------------- Cash flow used in financing activities (960) (5,025) ---------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 1,691 314 Effect of exchange rates and changes in scope of consolidation (434) 51 Cash and cash equivalents at the beginning of the period 5,988 2,493 ---------------------------------------------------------------------- Cash and cash equivalents at the end of the period 7,245 2,858 ---------------------------------------------------------------------- *T -0- *T CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY TOTAL (unaudited) ---------------------------------------------------------------------- Paid-in surplus Currency Common shares issued and translation retained adjustment earnings (M EUR ) Number Amount ---------------------------------------------------------------------- As of January 1, 2007 2,425,767,953 6,064 41,460 (1,383) ---------------------------------------------------------------------- Net income for the first half - - 6,460 - Items recognized directly in equity - - 108 (502) Total excluding transactions with shareholders - - 6,568 (502) Dividend paid - - (2,262) - Issuance of common shares 549,873 1 14 - Purchase of treasury shares - - - - Sale of treasury shares (a) - - 28 - Share-based payments - - 82 - Transactions with shareholders 549,873 1 (2,138) - Share cancellation (33,005,000) (82) (1,652) - As of June 30, 2007 2,393,312,826 5,983 44,238 (1,885) ---------------------------------------------------------------------- Net income for the second half - - 6,721 - Items recognized directly in equity - - 9 (2,511) Total excluding transactions with shareholders - - 6,730 (2,511) Dividend paid - - (2,248) - Issuance of common shares 2,219,271 6 68 - Purchase of treasury shares - - - - Sale of treasury shares (a) - - (105) - Share-based payments - - 114 - Transactions with shareholders 2,219,271 6 (2,171) - Share cancellation - - - - As of December 31, 2007 2,395,532,097 5,989 48,797 (4,396) ---------------------------------------------------------------------- Net income for the first half - - 8,334 - Items recognized directly in equity - - (43) (2,087) Total excluding transactions with shareholders - - 8,291 (2,087) Dividend paid - - (2,404) - Issuance of common shares 5,678,338 14 228 - Purchase of treasury shares - - - - Sale of treasury shares (a) - - 28 - Share-based payments - - 84 - Transactions with shareholders 5,678,338 14 (2,064) - Share cancellation - - - - As of June 30, 2008 2,401,210,435 6,003 55,024 (6,483) ---------------------------------------------------------------------- (a) Treasury shares related to the stock option purchase plans and restricted stock grants CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY TOTAL (unaudited) --------------------------------------------------------------------- Treasury shares Shareholders' Minority Total equity interests equity (M EUR ) Number Amount --------------------------------------------------------------------- As of January 1, 2007 (161,200,707) (5,820) 40,321 827 41,148 --------------------------------------------------------------------- Net income for the first half - - 6,460 173 6,633 Items recognized directly in equity - - (394) (21) (415) Total excluding transactions with shareholders - - 6,066 152 6,218 Dividend paid - - (2,262) (162) (2,424) Issuance of common shares - - 15 - 15 Purchase of treasury shares (14,000,000) (755) (755) - (755) Sale of treasury shares (a) 5,052,289 162 190 - 190 Share-based payments - - 82 - 82 Transactions with shareholders (8,947,711) (593) (2,730) (162) (2,892) Share cancellation 33,005,000 1,734 - - - As of June 30, 2007 (137,143,418) (4,679) 43,657 817 44,474 --------------------------------------------------------------------- Net income for the second half - - 6,721 181 6,902 Items recognized directly in equity - - (2,502) (90) (2,592) Total excluding transactions with shareholders - - 4,219 91 4,310 Dividend paid - - (2,248) (66) (2,314) Issuance of common shares - - 74 - 74 Purchase of treasury shares (18,387,355) (1,032) (1,032) - (1,032) Sale of treasury shares (a) 4,109,541 179 74 - 74 Share-based payments - - 114 - 114 Transactions with shareholders (14,277,814) (853) (3,018) (66) (3,084) Share cancellation - - - - - As of December 31, 2007 (151,421,232) (5,532) 44,858 842 45,700 --------------------------------------------------------------------- Net income for the first half - - 8,334 244 8,578 Items recognized directly in equity - - (2,130) (103) (2,233) Total excluding transactions with shareholders - - 6,204 141 6,345 Dividend paid - - (2,404) (128) (2,532) Issuance of common shares - - 242 - 242 Purchase of treasury shares (16,000,000) (818) (818) - (818) Sale of treasury shares (a) 2,679,805 79 107 - 107 Share-based payments - - 84 - 84 Transactions with shareholders (13,320,195) (739) (2,789) (128) (2,917) Share cancellation - - - - - As of June 30, 2008 (164,741,427) (6,271) 48,273 855 49,128 --------------------------------------------------------------------- (a) Treasury shares related to the stock option purchase plans and restricted stock grants *T -0- *T BUSINESS SEGMENT INFORMATION TOTAL (unaudited) ---------------------------------------------------------------------- 2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Non-Group sales 5,739 36,990 5,478 (7) - 48,200 Intersegment sales 7,862 1,497 449 37 (9,845) - Excise taxes - (4,900) - - - (4,900) ---------------------------------------------------------------------- Revenues from sales 13,601 33,587 5,927 30 (9,845) 43,300 Operating expenses (5,679) (31,095) (5,491) (180) 9,845 (32,600) Depreciation, depletion, and amortization of tangible assets and mineral interests (958) (291) (128) (7) - (1,384) ---------------------------------------------------------------------- Operating income 6,964 2,201 308 (157) - 9,316 Equity in income (loss) of affiliates and other items 439 20 (11) 133 - 581 Tax on net operating income (4,304) (651) (88) 78 - (4,965) ---------------------------------------------------------------------- Net operating income 3,099 1,570 209 54 - 4,932 Net cost of net debt (57) Minority interests (143) ---------------------------------------------------------------------- Net income 4,732 ---------------------------------------------------------------------- 2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total (adjustments*) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales Intersegment sales Excise taxes ---------------------------------------------------------------------- Revenues from sales Operating expenses - 1,457 230 - 1,687 Depreciation, depletion, and amortization of tangible assets and mineral interests - - - - - ---------------------------------------------------------------------- Operating income (a) - 1,457 230 - 1,687 Equity in income (loss) of affiliates and other items (b) - (10) (22) (96) (128) Tax on net operating income - (464) (69) - (533) ---------------------------------------------------------------------- Net operating income (a) - 983 139 (96) 1,026 Net cost of net debt - Minority interests (17) ---------------------------------------------------------------------- Net income 1,009 (*) Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger (a) Of which inventory valuation effect On operating income - 1,457 230 - On net operating income - 1,018 153 - (b) Of which equity share of amortization of intangible assets related to the Sanofi- Aventis merger - - - (78) ---------------------------------------------------------------------- 2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total (adjusted) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales 5,739 36,990 5,478 (7) - 48,200 Intersegment sales 7,862 1,497 449 37 (9,845) - Excise taxes - (4,900) - - - (4,900) ---------------------------------------------------------------------- Revenues from sales 13,601 33,587 5,927 30 (9,845) 43,300 Operating expenses (5,679) (32,552) (5,721) (180) 9,845 (34,287) Depreciation, depletion, and amortization of tangible assets and mineral interests (958) (291) (128) (7) - (1,384) ---------------------------------------------------------------------- Adjusted operating income 6,964 744 78 (157) - 7,629 Equity in income (loss) of affiliates and other items 439 30 11 229 - 709 Tax on net operating income (4,304) (187) (19) 78 - (4,432) ---------------------------------------------------------------------- Adjusted net operating income 3,099 587 70 150 - 3,906 Net cost of net debt (57) Minority interests (126) ---------------------------------------------------------------------- Ajusted net income 3,723 ---------------------------------------------------------------------- 2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Total expenditures 2,076 514 221 57 2,868 Total divestments 565 128 12 21 726 Cash flow from operating activities 3,643 (1,391) 169 (499) 1,922 ---------------------------------------------------------------------- *T -0- *T BUSINESS SEGMENT INFORMATION TOTAL (unaudited) ---------------------------------------------------------------------- 1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Non-Group sales 6,196 32,780 5,229 8 - 44,213 Intersegment sales 6,118 1,553 257 33 (7,961) - Excise taxes - (4,926) - - - (4,926) ---------------------------------------------------------------------- Revenues from sales 12,314 29,407 5,486 41 (7,961) 39,287 Operating expenses (5,018) (28,251) (5,157) (176) 7,961 (30,641) Depreciation, depletion, and amortization of tangible assets and mineral interests (873) (285) (129) (7) - (1,294) ---------------------------------------------------------------------- Operating income 6,423 871 200 (142) - 7,352 Equity in income (loss) of affiliates and other items 465 (33) 14 250 - 696 Tax on net operating income (4,027) (247) (55) 72 - (4,257) ---------------------------------------------------------------------- Net operating income 2,861 591 159 180 - 3,791 Net cost of net debt (88) Minority interests (101) ---------------------------------------------------------------------- Net income 3,602 ---------------------------------------------------------------------- 1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total (adjustments*) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales Intersegment sales Excise taxes ---------------------------------------------------------------------- Revenues from sales Operating expenses - 373 2 - 375 Depreciation, depletion, and amortization of tangible assets and mineral interests - - - - - ---------------------------------------------------------------------- Operating income (a) - 373 2 - 375 Equity in income (loss) of affiliates and other items (b) 130 25 - (56) 99 Tax on net operating income - (118) (1) - (119) ---------------------------------------------------------------------- Net operating income (a) 130 280 1 (56) 355 Net cost of net debt - Minority interests (7) ---------------------------------------------------------------------- Net income 348 (*) Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger (a) Of which inventory valuation effect On operating income - 373 2 - On net operating income - 280 1 - (b) Of which equity share of amortization of intangible assets related to the Sanofi- Aventis merger - - - (71) ---------------------------------------------------------------------- 1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total (adjusted) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales 6,196 32,780 5,229 8 - 44,213 Intersegment sales 6,118 1,553 257 33 (7,961) - Excise taxes - (4,926) - - - (4,926) ---------------------------------------------------------------------- Revenues from sales 12,314 29,407 5,486 41 (7,961) 39,287 Operating expenses (5,018) (28,624) (5,159) (176) 7,961 (31,016) Depreciation, depletion, and amortization of tangible assets and mineral interests (873) (285) (129) (7) - (1,294) ---------------------------------------------------------------------- Adjusted operating income 6,423 498 198 (142) - 6,977 Equity in income (loss) of affiliates and other items 335 (58) 14 306 - 597 Tax on net operating income (4,027) (129) (54) 72 - (4,138) ---------------------------------------------------------------------- Adjusted net operating income 2,731 311 158 236 - 3,436 Net cost of net debt (88) Minority interests (94) ---------------------------------------------------------------------- Ajusted net income 3,254 ---------------------------------------------------------------------- 1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Total expenditures 2,178 294 164 7 2,643 Total divestments 107 24 7 60 198 Cash flow from operating activities 4,251 1,168 (202) 99 5,316 ---------------------------------------------------------------------- *T -0- *T BUSINESS SEGMENT INFORMATION TOTAL (unaudited) ---------------------------------------------------------------------- 2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Non-Group sales 4,456 29,562 5,070 6 - 39,094 Intersegment sales 5,073 1,201 269 25 (6,568) - Excise taxes - (5,595) - - - (5,595) ---------------- ------- -------- --------- --------- ------- -------- Revenues from sales 9,529 25,168 5,339 31 (6,568) 33,499 Operating expenses (4,148) (23,244) (4,812) (143) 6,568 (25,779) Depreciation, depletion, and amortization of tangible assets and mineral interests (941) (297) (119) (8) - (1,365) ---------------------------------------------------------------------- Operating income 4,440 1,627 408 (120) - 6,355 Equity in income (loss) of affiliates and other items 397 72 14 59 - 542 Tax on net operating income (2,745) (519) (123) 51 - (3,336) ---------------------------------------------------------------------- Net operating income 2,092 1,180 299 (10) - 3,561 Net cost of net debt (66) Minority interests (84) ---------------------------------------------------------------------- Net income 3,411 ---------------------------------------------------------------------- 2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total (adjustments*) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales Intersegment sales Excise taxes ---------------------------------------------------------------------- Revenues from sales Operating expenses - 623 96 - 719 Depreciation, depletion, and amortization of tangible assets and mineral interests - - - - - ---------------------------------------------------------------------- Operating income (a) - 623 96 - 719 Equity in income (loss) of affiliates and other items (b) - 6 1 (172) (165) Tax on net operating income - (204) (32) - (236) ---------------------------------------------------------------------- Net operating income (a) - 425 65 (172) 318 Net cost of net debt - Minority interests (7) ---------------------------------------------------------------------- Net income 311 (*) Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger (a) Of which inventory valuation effect On operating income - 623 96 - On net operating income - 425 65 - (b) Of which equity share of amortization of intangible assets related to the Sanofi- Aventis merger - - - (72) ---------------------------------------------------------------------- 2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total (adjusted) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales 4,456 29,562 5,070 6 - 39,094 Intersegment sales 5,073 1,201 269 25 (6,568) - Excise taxes - (5,595) - - - (5,595) ---------------------------------------------------------------------- Revenues from sales 9,529 25,168 5,339 31 (6,568) 33,499 Operating expenses (4,148) (23,867) (4,908) (143) 6,568 (26,498) Depreciation, depletion, and amortization of tangible assets and mineral interests (941) (297) (119) (8) - (1,365) ---------------------------------------------------------------------- Adjusted operating income 4,440 1,004 312 (120) - 5,636 Equity in income (loss) of affiliates and other items 397 66 13 231 - 707 Tax on net operating income (2,745) (315) (91) 51 - (3,100) ---------------------------------------------------------------------- Adjusted net operating income 2,092 755 234 162 - 3,243 Net cost of net debt (66) Minority interests (77) ---------------------------------------------------------------------- Ajusted net income 3,100 ---------------------------------------------------------------------- 2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Total expenditures 2,109 401 173 7 2,690 Total divestments 191 28 1 2 222 Cash flow from operating activities 3,312 1,432 254 (1,409) 3,589 ---------------------------------------------------------------------- *T -0- *T BUSINESS SEGMENT INFORMATION TOTAL (unaudited) ---------------------------------------------------------------------- 1st half 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Non-Group sales 11,935 69,770 10,707 1 - 92,413 Intersegment sales 13,980 3,050 706 70 (17,806) - Excise taxes - (9,826) - - - (9,826) ---------------------------------------------------------------------- Revenues from sales 25,915 62,994 11,413 71 (17,806) 82,587 Operating expenses (10,697) (59,346) (10,648) (356) 17,806 (63,241) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,831) (576) (257) (14) - (2,678) ---------------------------------------------------------------------- Operating income 13,387 3,072 508 (299) - 16,668 Equity in income (loss) of affiliates and other items 904 (13) 3 383 - 1,277 Tax on net operating income (8,331) (898) (143) 150 - (9,222) ---------------------------------------------------------------------- Net operating income 5,960 2,161 368 234 - 8,723 Net cost of net debt (145) Minority interests (244) ---------------------------------------------------------------------- Net income 8,334 ---------------------------------------------------------------------- 1st half 2008 Up- Down- Chemicals Corporate Inter- Total (adjustments*) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales Intersegment sales Excise taxes ---------------------------------------------------------------------- Revenues from sales Operating expenses - 1,830 232 - 2,062 Depreciation, depletion, and amortization of tangible assets and mineral interests - - - - - ---------------------------------------------------------------------- Operating income (a) - 1,830 232 - 2,062 Equity in income (loss) of affiliates and other items (b) 130 15 (22) (152) (29) Tax on net operating income - (582) (70) - (652) ---------------------------------------------------------------------- Net operating income (a) 130 1,263 140 (152) 1,381 Net cost of net debt - Minority interests (24) ---------------------------------------------------------------------- Net income 1,357 (*) Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger (a) Of which inventory valuation effect On operating income - 1,830 232 - On net operating income - 1,298 154 - (b) Of which equity share of amortization of intangible assets related to the Sanofi- Aventis merger - - - (149) ---------------------------------------------------------------------- 1st half 2008 Up- Down- Chemicals Corporate Inter- Total (adjusted) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales 11,935 69,770 10,707 1 - 92,413 Intersegment sales 13,980 3,050 706 70 (17,806) - Excise taxes - (9,826) - - - (9,826) ---------------------------------------------------------------------- Revenues from sales 25,915 62,994 11,413 71 (17,806) 82,587 Operating expenses (10,697) (61,176) (10,880) (356) 17,806 (65,303) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,831) (576) (257) (14) - (2,678) ---------------------------------------------------------------------- Adjusted operating income 13,387 1,242 276 (299) - 14,606 Equity in income (loss) of affiliates and other items 774 (28) 25 535 - 1,306 Tax on net operating income (8,331) (316) (73) 150 - (8,570) ---------------------------------------------------------------------- Adjusted net operating income 5,830 898 228 386 - 7,342 Net cost of net debt (145) Minority interests (220) ---------------------------------------------------------------------- Ajusted net income 6,977 ---------------------------------------------------------------------- 1st half 2008 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Total expenditures 4,254 808 385 64 5,511 Total divestments 672 152 19 81 924 Cash flow from operating activities 7,894 (223) (33) (400) 7,238 ---------------------------------------------------------------------- *T -0- *T BUSINESS SEGMENT INFORMATION TOTAL (unaudited) ---------------------------------------------------------------------- 1st half 2007 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Non-Group sales 9,690 56,363 10,065 19 - 76,137 Intersegment sales 9,816 2,444 501 67 (12,828) - Excise taxes - (10,961) - - - (10,961) ---------------------------------------------------------------------- Revenues from sales 19,506 47,846 10,566 86 (12,828) 65,176 Operating expenses (8,872) (44,551) (9,467) (292) 12,828 (50,354) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,819) (588) (243) (15) - (2,665) ---------------------------------------------------------------------- Operating income 8,815 2,707 856 (221) - 12,157 Equity in income (loss) of affiliates and other items 667 126 37 274 - 1,104 Tax on net operating income (5,429) (856) (271) 83 - (6,473) ---------------------------------------------------------------------- Net operating income 4,053 1,977 622 136 - 6,788 Net cost of net debt (155) Minority interests (173) ---------------------------------------------------------------------- Net income 6,460 ---------------------------------------------------------------------- 1st half 2007 Up- Down- Chemicals Corporate Inter- Total (adjustments*) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales Intersegment sales Excise taxes ---------------------------------------------------------------------- Revenues from sales - Operating expenses - 730 163 - 893 Depreciation, depletion, and amortization of tangible assets and mineral interests - - - - - ---------------------------------------------------------------------- Operating income (a) - 730 163 - 893 Equity in income (loss) of affiliates and other items (b) - 24 - (248) (224) Tax on net operating income - (240) (54) - (294) ---------------------------------------------------------------------- Net operating income (a) - 514 109 (248) 375 Net cost of net debt - Minority interests (7) ---------------------------------------------------------------------- Net income 368 (*) Adjustments include special items, inventory valuation effect and equity share of amortization of intangible assets related to the Sanofi-Aventis merger (a) Of which inventory valuation effect On operating income - 730 163 - On net operating income - 514 109 - (b) Of which equity share of amortization of intangible assets related to the Sanofi- Aventis merger - - - (148) ---------------------------------------------------------------------- 1st half 2007 Up- Down- Chemicals Corporate Inter- Total (adjusted) stream stream company (M EUR ) ---------------------------------------------------------------------- Non-Group sales 9,690 56,363 10,065 19 - 76,137 Intersegment sales 9,816 2,444 501 67 (12,828) - Excise taxes - (10,961) - - - (10,961) ---------------------------------------------------------------------- Revenues from sales 19,506 47,846 10,566 86 (12,828) 65,176 Operating expenses (8,872) (45,281) (9,630) (292) 12,828 (51,247) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,819) (588) (243) (15) - (2,665) ---------------------------------------------------------------------- Adjusted operating income 8,815 1,977 693 (221) - 11,264 Equity in income (loss) of affiliates and other items 667 102 37 522 - 1,328 Tax on net operating income (5,429) (616) (217) 83 - (6,179) ---------------------------------------------------------------------- Adjusted net operating income 4,053 1,463 513 384 - 6,413 Net cost of net debt (155) Minority interests (166) ---------------------------------------------------------------------- Ajusted net income 6,092 ---------------------------------------------------------------------- 1st half 2007 Up- Down- Chemicals Corporate Inter- Total (M EUR ) stream stream company ---------------------------------------------------------------------- Total expenditures 4,098 645 346 15 5,104 Total divestments 364 50 48 4 466 Cash flow from operating activities 7,647 3,337 361 (1,368) 9,977 ---------------------------------------------------------------------- *T -0- *T CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments) TOTAL (unaudited) ---------------------------------------------------------------------- Ajusted Adjustments Consolidated 2nd quarter 2008 statement (M EUR ) of income ---------------------------------------------------------------------- Sales 48,200 - 48,200 Excise taxes (4,900) - (4,900) Revenues from sales 43,300 - 43,300 Purchases, net of inventory variation (29,645) 1,687 (27,958) Other operating expenses (4,439) - (4,439) Exploration costs (203) - (203) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,384) - (1,384) Other income 13 2 15 Other expense (26) (95) (121) Financial interest on debt (204) - (204) Financial income from marketable securities and cash equivalents 113 - 113 Cost of net debt (91) - (91) Other financial income 229 - 229 Other financial expense (80) - (80) Income taxes (4,398) (533) (4,931) Equity in income (loss) of affiliates 573 (35) 538 ---------------------------------------------------------------------- Consolidated net income 3,849 1,026 4,875 Group share 3,723 1,009 4,732 Minority interests 126 17 143 ---------------------------------------------------------------------- 2nd quarter 2007 Ajusted Adjustments Consolidated (M EUR ) statement of income ---------------------------------------------------------------------- Sales 39,094 - 39,094 Excise taxes (5,595) - (5,595) Revenues from sales 33,499 - 33,499 Purchases, net of inventory variation (22,104) 719 (21,385) Other operating expenses (4,139) - (4,139) Exploration costs (255) - (255) Depreciation, depletion, and amortization of tangible assets and mineral interests (1,365) - (1,365) Other income 60 - 60 Other expense (2) (100) (102) Financial interest on debt (447) - (447) Financial income from marketable securities and cash equivalents 337 - 337 Cost of net debt (110) - (110) Other financial income 209 - 209 Other financial expense (74) - (74) Income taxes (3,056) (236) (3,292) Equity in income (loss) of affiliates 514 (65) 449 ---------------------------------------------------------------------- Consolidated net income 3,177 318 3,495 Group share 3,100 311 3,411 Minority interests 77 7 84 *T -0- *T CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments) TOTAL (unaudited) ---------------------------------------------------------------------- Ajusted Adjustments Consolidated 1st half 2008 statement (M EUR ) of income ---------------------------------------------------------------------- Sales 92,413 - 92,413 Excise taxes (9,826) - (9,826) Revenues from sales 82,587 - 82,587 Purchases, net of inventory variation (55,639) 2,062 (53,577) Other operating expenses (9,271) - (9,271) Exploration costs (393) - (393) Depreciation, depletion, and amortization of tangible assets and mineral interests (2,678) - (2,678) Other income 21 147 168 Other expense (74) (95) (169) Financial interest on debt (461) - (461) Financial income from marketable securities and cash equivalents 242 - 242 Cost of net debt (219) - (219) Other financial income 345 - 345 Other financial expense (151) - (151) Income taxes (8,496) (652) (9,148) Equity in income (loss) of affiliates 1,165 (81) 1,084 ---------------------------------------------------------------------- Consolidated net income 7,197 1,381 8,578 Group share 6,977 1,357 8,334 Minority interests 220 24 244 ---------------------------------------------------------------------- 1st half 2007 Ajusted Adjustments Consolidated (M EUR ) statement of income ---------------------------------------------------------------------- Sales 76,137 - 76,137 Excise taxes (10,961) - (10,961) Revenues from sales 65,176 - 65,176 Purchases, net of inventory variation (41,987) 893 (41,094) Other operating expenses (8,791) - (8,791) Exploration costs (469) - (469) Depreciation, depletion, and amortization of tangible assets and mineral interests (2,665) - (2,665) Other income 156 - 156 Other expense (66) (100) (166) Financial interest on debt (877) - (877) Financial income from marketable securities and cash equivalents 631 - 631 Cost of net debt (246) - (246) Other financial income 337 - 337 Other financial expense (141) - (141) Income taxes (6,088) (294) (6,382) Equity in income (loss) of affiliates 1,042 (124) 918 ---------------------------------------------------------------------- Consolidated net income 6,258 375 6,633 Group share 6,092 368 6,460 Minority interests 166 7 173 *T -0- *T CONTACT: Total Jerome SCHMITT Philippe HERGAUX Sandrine SABOUREAU Laurent KETTENMEYER Tel. : 33 (1) 47 44 58 53 Fax : 33 (1) 47 44 58 24 or Robert HAMMOND (U.S.) Tel. : (1) 201 626 3500 Fax : (1) 201 626 4004 *T

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TotalEnergies SE (TTE)

Thursday, 21st November 2024

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HLMA JD. ITH

JD Sports tanks after management tighten profit guidance towards the lower end of expectations, Halma finds support from strong earnings and capital return commitment cheers shareholders in Ithica Energy.

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