Total S.A.: Third Quarter 2007 Adjusted Net Inc...
TOTAL S.A.
TOTAL S.A. (NYSE:TOT) (LSE:TTA) (Paris:FP)
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Main results (1-2)
-- Third quarter 2007 adjusted net
income(3) 3.00 billion euros -3%
4.13 billion dollars +4%
1.32 euros per share -2%
1.82 dollars per share +5%
-- Nine months 2007 adjusted net income(3) 9.10 billion euros -8%
12.23 billion dollars -
3.99 euros per share -6%
5.37 dollars per share +2%
-- Nine months 2007 net income (Group
share) 9.58 billion euros -
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Highlights since the start of the third quarter 2007
-- Upstream production increased by 2.5% in the third quarter 2007(2)
-- Started production of Dolphin in Qatar and Snohvit in Norway
-- Launched development of offshore field Ofon Phase II in Nigeria
-- Agreement with Gazprom to study the development of Phase 1 of the
giant Shtokman field in Russia
-- Continued exploration success
-- Significant discoveries on MTPS in Congo, on Blocks 32 and
14 in Angola, on Tormore in West of Shetlands area and on
Mahakam in Indonesia
-- Additional acreage in Nigeria, Australia, Vietnam and the
Gulf of Mexico
-- Agreements to divest interests in the Interconnector pipeline and
the Milford Haven refinery in the UK
-- Started construction of new desulphurization units at the Lindsey
refinery in the UK and the Leuna refinery in Germany
-- Started up two expansion projects for petrochemicals at Qapco in
Qatar and Daesan in Korea
-- Partnership with Sonatrach to develop a petrochemicals complex in
Algeria that includes an ethane cracker
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The Board of Directors of Total, led by Chairman Thierry Desmarest, met on
November 6, 2007 to review the third quarter 2007 accounts. Adjusted net income
was 3,004 million euros (M EUR), a decrease of 3% compared to the third quarter
2006. Commenting on the results, CEO Christophe de Margerie said :
'Compared to the third quarter 2006, the environment in the third quarter 2007
was mixed. While the Brent oil price increased by 7% to nearly 75 $/b, the
dollar fell by 7% relative to the euro. The average natural gas price was
weaker, primarily as a result of lower UK spot prices. European refining margins
fell by 17% to a more moderate level. The environment for Chemicals remained
generally satisfactory.
In this context, Total was the best performer among the majors. In dollars,
adjusted net income increased by 4% compared to the same quarter a year ago.
Total benefited from the return to production growth, the high quality of its
asset portfolio, and its efforts to limit the impact of cost inflation. The
return on average capital employed (ROACE) for Total was 24% over the past
twelve months.
Total continues to deliver on its organic growth strategy and is demonstrating
the confidence it has in creating long-term shareholder value by increasing the
2007 interim dividend by 15% in euros.
While market tensions tighten, Total reaffirms its commitment to contribute to
satisfying energy demand over the long term, while giving a high priority to the
preservation of the environment, safety and the acceptability of its operations
with a responsible approach and strict respect of its Code of Conduct.'
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-- Key figures and consolidated accounts of Total(4)
in millions of
3Q07 euros, except 9M07
3Q07 2Q07 3Q06 vs earnings per share 9M07 9M06 vs
3Q06 and number of 9M06
shares
----------------------------------------------------------------------
39,430 39,094 38,357 +3% Sales 115,567 117,369 -2%
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Adjusted operating
income from
5,770 5,756 6,352 -9% business segments 17,255 19,712 -12%
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Adjusted net
operating income
from business
3,000 3,081 3,079 -3% segments 9,029 9,688 -7%
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2,227 2,092 2,033 +10% = Upstream 6,280 6,824 -8%
----------------------------------------------------------------------
526 755 798 -34% = Downstream 1,989 2,235 -11%
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247 234 248 - = Chemicals 760 629 +21%
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3,004 3,100 3,111 -3% Adjusted net income 9,096 9,848 -8%
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Adjusted fully-
diluted earnings
1.32 1.36 1.35 -2% per share (euros) 3.99 4.24 -6%
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Fully-diluted
weighted-average
2,272.6 2,278.4 2,302.3 -1% shares (millions) 2,277.3 2,320.4 -2%
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Net income (Group
3,121 3,411 2,419 +29% share) 9,581 9,543 -
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2,590 2,690 2,667 -3% Investments 7,694 8,196 -6%
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Divestments (at
109 222 186 -41% selling price) 575 1,207 -52%
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Cash flow from
3,549 3,589 5,053 -30% operations 13,526 13,938 -3%
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Adjusted cash flow
4,260 4,563 4,397 -3% from operations 12,939 13,362 -3%
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-- Third quarter 2007 results
Operating income
In the third quarter 2007, the average Brent price rose to 74.7 $/b, an increase
of 7% compared to the third quarter 2006 and 9% compared to the second quarter
2007. Total's average realized price of natural gas fell by 14% compared to the
third quarter 2006 and by 2% compared to the second quarter 2007.
The European refining margin indicator (TRCV) was 23.9 $/t on average, a
decrease of 17% compared to the third quarter 2006 and 44% compared to the
particularly high margins of the second quarter 2007.
European petrochemical margins were higher compared to the third quarter 2006
and second quarter 2007, except for the margin for aromatics, which decreased
substantially in the third quarter 2007.
The euro-dollar exchange rate was 1.37 $/EUR in the third quarter 2007 compared
to 1.27 $/EUR in the third quarter 2006 and 1.35 $/EUR in the second quarter
2007, representing decreases of 7% and 2%, respectively, in the value of the
dollar.
In this context, adjusted operating income from the business segments was
5,770 MEUR , a decrease of 9% compared to the third quarter 2006(5) or,
expressed in dollars, a decrease of 2%.
Adjusted net operating income from the business segments was to 3,000 M EUR , or
a decrease of 3% compared to the third quarter 2006.
Expressed in dollars, adjusted net operating income from the business segments
was 4,121 M$, an increase of 5% compared to the third quarter 2006. Excluding
the charge of 143 M EUR for the increase in UK petroleum taxes related to the
first half of 2006 from the third quarter 2006 results, the adjusted net
operating income from the business segments expressed in dollars was stable
compared to the third quarter 2006.
Net income
Adjusted net income was 3,004 M EUR in the third quarter 2007 compared to 3,111
M EUR in the third quarter 2006. 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 of 139 M EUR in the
third quarter 2007 and a negative impact of 478 M EUR in the third
quarter 2006.
-- Special items had a positive effect on net income of 55 M EUR in the
third quarter 2007 and were comprised of 75 M EUR for the equity share
of a deferred tax adjustment by Sanofi-Aventis which was partially
offset by a 20 M EUR restructuring provision in Downstream. In the third
quarter 2006, special items had a negative effect on net income of 132 M
EUR , composed primarily of a 71 M EUR charge for deferred taxes related
to the UK petroleum tax increase and special charges related to
restructuring in the Chemicals segment.
-- The Group's share of the amortization of intangibles related to the
Sanofi-Aventis merger had a negative impact on net income of 77 M EUR in
the third quarter 2007 and 82 M EUR in the third quarter 2006.
Reported net income was 3,121 M EUR compared to 2,419 M EUR in the third quarter
2006.
The effective tax rate(6) for the Group was 55.1% in the third quarter compared
to 54.0% in the second quarter 2007 and 55.6% in the third quarter 2006.
In the third quarter 2007, the Group bought back 9.4 million(7) of its shares
for 532 M EUR .
Adjusted earnings per share, based on 2,272.6 million fully-diluted
weighted-average shares, was 1.32 euros in the third quarter 2007, a decrease of
2% compared to the third quarter 2006.
Expressed in dollars, adjusted earnings per share rose to 1.82, an increase of
5% compared to the third quarter 2006.
Investments - divestments
Investments in the third quarter 2007 were 2,590 M EUR compared to 2,667 M EUR
in the third quarter 2006. The third quarter 2007 investments include 94 M EUR
of acquisitions related primarily to new permits.
Divestments in the third quarter 2007 were 109 M EUR .
Expressed in dollars, investments in the third quarter 2007 increased by 5% to
3.6 billion.
Net investments were 3.4 billion dollars (B$) in the third quarter 2007 compared
to 3.2 B$ in the third quarter 2006.
Cash flow
Cash flow from operations was 3,549 M EUR , a decrease of 30% compared to the
third quarter 2006, mainly due to an increase in working capital.
Adjusted cash flow (cash flow from operations before changes in working capital
at replacement cost) decreased by 3% to 4,260 M EUR . Expressed in dollars,
adjusted cash flow increased by 4% to 5.9 B$.
The net-debt-to-equity ratio was 24% at September 30, 2007 compared to 26% at
June 30, 2007 and 26% at September 30, 2006(8), in line with the target range of
the Group.
-- Nine months 2007 results
Operating income
Compared to the first nine months of 2006, the oil market environment for the
first nine months of 2007 was marked by an average Brent price stable at 67 $/b
and a 12% decrease in the average realized price for natural gas.
The European refining margin indicator increased by 8% to 33.3 $/t.
Petrochemical margins increased, with higher margins in Europe that were
partially offset by lower margins in the US.
The euro-dollar exchange rate was 1.34 $/EUR compared to 1.24 $/EUR for the
first nine months of 2006, representing a decline of 7% in the dollar.
In this context, adjusted operating income from the business segments was
17,255 M EUR , a decrease of 12% compared to the first nine months of 2006(9).
Adjusted net operating income from the business segments was 9,029 M EUR
compared to 9,688 M EUR for the first nine months of 2006, a decrease of 7%. The
lower percentage decrease relative to the decrease in operating income is due in
part to a larger contribution from equity affiliates.
Expressed in dollars, adjusted net operating income from the business segments
was 12.1 B$, an increase of 1% compared to the first nine months of 2006.
Net income
Adjusted net income was 9,096 M EUR compared to 9,848 M EUR for the first nine
months of 2006, a decrease of 8%. 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
755 M EUR in the first nine months of 2007 and 78 M EUR in the same
period last year.
-- Special items had a negative impact on net income of 45 M EUR in the
first nine months of 2007 and 132 M EUR in the first nine months of
2006(10).
-- The Group's share of the amortization of intangibles related to the
Sanofi-Aventis merger had a negative impact on net income of 225 M EUR
in the first nine months of 2007 and 251 M EUR in the same period last
year.
Reported net income was 9,581 M EUR compared to 9,543 M EUR for the first nine
months of 2006.
The effective tax rate for the Group was 54.4% in the first nine months of 2007
compared to 55.5% in the first nine months of 2006.
In the first nine months of 2007, the Group bought back 23.4 million of its
shares(11) for 1,287 M EUR . The number of fully-diluted shares as of September
30, 2007 was 2,271.0 million compared to 2,278.6 million on June 30, 2007 and
2,294.6 million on September 30, 2006. The Group continued to buy back shares in
October 2007, acquiring 4.0 million shares for 222 M EUR .
Adjusted earnings per share, calculated based on 2,277.3 million fully-diluted
weighted-average shares, declined by 6% to 3.99 euros from 4.24 euros in the
first nine months of 2006, a lower percentage decrease than for adjusted net
income thanks to the accretive effect of the share buybacks.
Expressed in dollars, adjusted earnings per share rose to 5.37, an increase of
2% compared to the first nine months of 2006.
Investments - divestments
Investments were 7,694 M EUR compared to 8,196 M EUR in the first nine months of
2006. Investments in the first nine months of 2007 included acquisitions of 161
M EUR related primarily to new permits.
Divestments in the first nine months of 2007 were 575 M EUR compared to 1,207 M
EUR in the first nine months of 2006. Divestments in the first nine months of
2007 include the sale of Canyon Express and the Aconcagua field in the Gulf of
Mexico, certain interests in Norway, and targeted divestitures in Downstream and
Specialty Chemicals.
Expressed in dollars, investments in the first nine months of 2007 were 10.3
billion compared to 10.2 billion in the same period last year.
Net investments in the first nine months of 2007 were 9.6 B$ compared to 8.7 B$
in the first nine months of 2006.
Cash flow
Cash flow from operations was 13,526 M EUR , a decrease of 3% compared to the
first nine months of 2006.
Adjusted cash flow (cash flow from operations before changes in working capital
at replacement cost) was 12,939 M EUR , a decrease of 3%.
Expressed in dollars, adjusted cash flow increased by 5% to 17.4 B$.
Net cash flow(12) for the Group was 6,407 M EUR compared to 6,949 M EUR for the
first nine months of 2006. Expressed in dollars, net cash flow for the Group was
8.6 B$, stable compared to the first nine months of 2006.
-- Analysis of business segment results
Upstream
Environment - liquids and gas price realizations *
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3Q07 9M07
3Q07 2Q07 3Q06 vs 9M07 9M06 vs
3Q06 9M06
----------------------------------------------------------------------
74.7 68.8 69.5 +7% Brent ($/b) 67.1 67.0 -
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71.4 65.7 65.4 +9% Average liquids price ($/b) 63.8 63.4 +1%
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4.83 4.94 5.59 -14% Average gas price ($/Mbtu) 5.16 5.84 -12%
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Average hydrocarbons price
55.4 52.5 53.2 +4% ($/boe) 51.7 52.6 -2%
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* consolidated subsidiaries, excluding fixed margin and buy-back
contracts
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The increase in Total's average realized liquids price was greater than the
increase in the Brent price for both the third quarter and the first nine months
of 2007 compared to the same periods in 2006.
The average realized price for Total's natural gas was substantially lower in
both the third quarter 2007 and the first nine months of 2007, mainly due to a
sharp decline in the UK spot price.
Production
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3Q07 9M07
3Q07 2Q07 3Q06 vs Hydrocarbon production 9M07 9M06 vs
3Q06 9M06
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Combined production
2,352 2,322 2,294 +3% (kboe/d) 2,368 2,341 +1%
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1,481 1,475 1,485 - = Liquids (kb/d) 1,502 1,503 -
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4,741 4,599 4,411 +7% = Gas (Mcfd) 4,707 4,568 +3%
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Hydrocarbon production was 2,352 thousand barrels of oil equivalent per
day (kboe/d) in the third quarter 2007 compared to 2,294 kboe/d in the third
quarter 2006, an increase of 2.5% mainly as a result of :
-- +6.5% from net growth, primarily from start-ups and ramp-ups of new
projects, such as Dalia, Rosa, Dolphin and Shah Deniz, partially offset
by declines,
-- -1.5% from the impact of the May 2007 fire on the Nkossa platform in
Congo,
-- -1% from the price effect(13) and OPEC reduction,
-- -1.5% from changes in the portfolio.
Excluding the price effect, OPEC reductions and portfolio changes, underlying
production growth was 5% between the third quarter 2007 and third quarter 2006.
In the first nine months of 2007, the Group's average production was
2,368 kboe/d, an increase of more than 1% compared to the same period last year,
mainly as a result of :
-- +4.5% from net growth, primarily from start-ups and ramp-ups of new
projects, such as Dalia, Rosa, BBLT, Dolphin and Shah Deniz, partially
offset by declines,
-- -1% from the impact of the May 2007 fire on the Nkossa platform in
Congo,
-- -1.5% from the price effect(13) and OPEC reduction,
-- -1% from changes in the portfolio.
Results
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3Q07 9M07
3Q07 2Q07 3Q06 vs in millions of euros 9M07 9M06 vs
3Q06 9M06
----------------------------------------------------------------------
4,861 4,440 5,000 -3% Adjusted operating income * 13,676 15,977 -14%
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Adjusted net operating
2,227 2,092 2,033 +10% income * 6,280 6,824 -8%
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-- Includes income from
183 202 172 +6% equity affiliates 560 470 +19%
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1,981 2,109 2,073 -4% Investments 6,079 6,363 -4%
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Divestments
63 191 80 -21% at selling price 427 935 -54%
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1,697 3,312 2,534 -33% Cash flow 9,344 9,736 -4%
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3,297 3,011 3,099 +6% Adjusted cash flow 9,274 9,779 -5%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information
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Adjusted net operating income from the Upstream segment was 2,227 M EUR in the
third quarter 2007 compared to 2,033 M EUR in the third quarter 2006, an
increase of 10%. In the third quarter 2006, there was a 143 M EUR charge for the
increase in UK petroleum taxes related to the first half of 2006.
Expressed in dollars, adjusted net operating income increased by 18% compared to
the third quarter 2006. Excluding the third quarter 2006 charge for the increase
in UK petroleum taxes related to the first half of 2006, adjusted net operating
income from the business segments in the third quarter 2007, expressed in
dollars, increased by 10% compared to the third quarter 2006. This reflects
mainly the benefits of higher oil and gas price realizations and the increase in
production, partially offset by higher operating costs and higher amortization
expenses linked to new start-ups.
The effective tax rate for the Upstream segment was 59.3% compared to 63.7% in
the third quarter 2006 and 59.9% in the second quarter 2007. The third quarter
2006 charge for the increase in UK petroleum taxes related to the first half of
2006 had an impact of close to 3% on the effective tax rate.
The return on average capital employed (ROACE(14)) for the Upstream segment for
the twelve months ended September 30, 2007 was 32% compared to 33% for the
twelve months ended June 30, 2007.
Downstream
Refinery throughput and utilization rates
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3Q07 9M07
3Q07 2Q07 3Q06 vs Refinery throughput (kb/d) 9M07 9M06 vs
3Q06 9M06
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Total refinery throughput
2,471 2,354 2,533 -2% (kb/d) * 2,415 2,462 -2%
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915 936 976 -6% -- France 947 922 +3%
1,253 1,112 1,257 - -- Rest of Europe* 1,177 1,228 -4%
303 306 300 +1% -- Rest of world 291 312 -7%
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Utilization rates
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88% 85% 92% -- Based on crude only 86% 88%
-- Based on crude and other
92% 87% 94% feedstock * 89% 91%
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* includes share of Cepsa
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In the third quarter 2007, there were planned partial turnarounds at the
Normandy and Lindsey refineries.
A major turnaround of the steam-cracker at the Port Arthur refinery was started
near the end of the third quarter 2006.
In the second quarter 2007, there were planned shutdowns for maintenance at the
Donges, Antwerp, Vlessingen, Flanders and Rome refineries.
Results
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3Q07 in millions of euros 9M07
3Q07 2Q07 3Q06 vs (except European refining 9M07 9M06 vs
3Q06 margin indicator) 9M06
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European refining margin
23.9 42.8 28.7 -17% indicator - TRCV ($/t) 33.3 30.9 +8%
----------------------------------------------------------------------
566 1,004 1,002 -44% Adjusted operating income * 2,543 2,894 -12%
----------------------------------------------------------------------
526 755 798 -34% Adjusted net operating income * 1,989 2,235 -11%
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-- Includes income from equity
63 75 64 -2% affiliates 201 206 -2%
----------------------------------------------------------------------
381 401 383 -1% Investments 1,026 1,072 -4%
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Divestments
27 28 90 -70% at selling price 77 153 -50%
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439 1 432 1,180 -63% Cash flow 3,776 3,365 +12%
----------------------------------------------------------------------
743 999 1,142 -35% Adjusted cash flow 2,781 3,060 -9%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information
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Refining margins in the third quarter 2007 averaged 23.9 $/t, down 17% compared
to the third quarter 2006 and down 44% compared to particularly high level of
the second quarter 2007.
Adjusted net operating income from the Downstream segment was 526 M EUR in the
third quarter 2007 compared to 798 M EUR in the third quarter 2006, a decrease
of 34%.
The decrease reflects mainly the lower refining margins, the impact of a weaker
dollar relative to the euro, and the lack of favorable market effects that
benefited the Downstream segment in the third quarter 2006.
In percentage terms, the decrease in third quarter 2007 adjusted net operating
income was lower than the decrease in adjusted operating income. For the nine
months, the decrease in adjusted net operating income was in line with the
decrease in adjusted operating income.
The ROACE for Downstream for the twelve months ended September 30, 2007 was 22%
compared to 25% for the twelve months ended June 30, 2007.
Chemicals
Results
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3Q07 9M07
3Q07 2Q07 3Q06 vs in millions of euros 9M07 9M06 vs
3Q06 9M06
----------------------------------------------------------------------
4,856 5,070 4,849 - Sales 14,921 14,503 +3%
3,071 3,202 3,135 -2% -- Base chemicals 9,424 9,120 +3%
1,785 1,868 1,713 +4% -- Specialties 5,497 5,382 +2%
----------------------------------------------------------------------
343 312 350 -2% Adjusted operating income * 1 036 841 +23%
----------------------------------------------------------------------
Adjusted net operating
247 234 248 - income * 760 629 +21%
140 110 155 -10% -- Base chemicals 439 318 +38%
99 124 87 +14% -- Specialties 316 299 +6%
----------------------------------------------------------------------
200 173 202 -1% Investments 546 702 -22%
----------------------------------------------------------------------
Divestments
15 1 4 x4 at selling price 63 99 -36%
----------------------------------------------------------------------
217 254 291 -25% Cash flow 578 247 +134%
----------------------------------------------------------------------
300 302 329 -9% Adjusted cash flow 931 889 +5%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information
*T
Third quarter 2007 sales for the Chemicals segment were 4,856 M EUR , stable
compared to the third quarter 2006.
Adjusted net operating income for Base Chemicals was 140 M EUR despite a
substantial decline in the margins for aromatics in the quarter.
Specialties continue to benefit from global economic growth and performed well
in the quarter, with a 14% increase in adjusted net operating income compared to
the third quarter 2006.
The ROACE for the Chemicals segment for the twelve months ended September 30,
2007 was 14%, stable compared to the twelve months ended June 30, 2007.
-- Summary and outlook
The ROACE for the twelve months ended September 30, 2007 was 24% at the Group
level and 26% at the level of the business segments compared to 25% and 28%
respectively for the twelve months ended June 30, 2007.
The return on equity for the twelve months ended September 30, 2007 was 29%.
The Group maintains its net-debt-to-equity ratio around its target range of
25-30%.
The investment program of approximately 16 B$ (excluding acquisitions) for 2007
is in line with the target.
Total will pay an interim dividend of 1 EUR per share on November 16, 2007(15),
a 15% increase compared to the 2006 interim dividend. Expressed in dollars, the
increase is more than 25%.
In the Upstream segment, Total confirms its production growth target of 4% per
year on average between 2006 and 2010 based on a projected Brent oil price
environment of 60$/b. The growth will be driven mainly by seven major
Total-operated projects, including three that have started producing recently
and four that are being developed in line with expectations. The growth will be
particularly high in the LNG business, where sales(16) are expected to grow by
13% per year on average over the period.
In Refining, the Group is pursuing its strategy to upgrade its refining system
by investing in more conversion and desulphurization capacity. Certain
development projects, designed to supply growing markets, are currently under
study.
In Petrochemicals, Total is pursuing its strategy to improve its competitiveness
in Europe, to strengthen its position in Asia and to develop projects with
ethane-based feedstock in the Middle East and North Africa.
Since the start of the fourth quarter 2007, oil prices have hit new record
levels notably as a result of persistent tension on market supply. Refining
margins have remained around the average of the third quarter 2007, and
conversion margins have remained robust.
The return to growth in production confirmed during the third quarter, the
successful execution of major projects, the strong management and investment
discipline, and the success of exploration and negotiations for access to new
reserves support the outlook of profitable growth of Total for the coming years
and for the longer term.
To listen to the conference call with CFO Robert Castaigne and financial
analysts today at 15:00 (Paris time) please call +44 (0)207 098 0692 in Europe
or +1 866 907 5923 in the US (access code : Total) or log on to the company
website www.total.com. For a replay, dial +44 (0)207 075 3214 in Europe or
1 866 828 2261 in the US (code : 206514).
The September 30, 2007 notes to the 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.
Main operating information by segment
Third quarter and first nine months 2007
-- Upstream
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3Q07 Combined liquids and gas 9M07
3Q07 2Q07 3Q06 vs production by region 9M07 9M06 vs
3Q06 (kboe/d) 9M06
---------------------------------------------------------------------
628 644 674 -7% Europe 672 720 -7%
811 795 716 +13% Africa 797 717 +11%
18 21 17 +6% North America 22 12 +83%
252 247 250 +1% Far East 252 251 -
393 359 396 -1% Middle East 384 403 -5%
228 243 234 -3% South America 226 231 -2%
22 13 7 x3 Rest of world 15 7 x2
---------------------------------------------------------------------
2,352 2,322 2,294 +3% Total production 2,368 2,341 +1%
---------------------------------------------------------------------
Includes equity and non-
317 310 342 -7% consolidated affiliates 322 339 -5%
---------------------------------------------------------------------
*T
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3Q07 Liquids production by region 9M07
3Q07 2Q07 3Q06 vs (kb/d) 9M07 9M06 vs
3Q06 9M06
---------------------------------------------------------------------
313 315 354 -12% Europe 333 363 -8%
689 670 620 +11% Africa 680 626 +9%
11 15 7 +57% North America 14 3 x5
29 28 28 +4% Far East 29 29 -
322 308 345 -7% Middle East 324 351 -8%
107 130 124 -14% South America 113 124 -9%
10 9 7 +43% Rest of world 9 7 +29%
---------------------------------------------------------------------
1,481 1,475 1,485 - Total production 1,502 1,503 -
---------------------------------------------------------------------
Includes equity and non-
262 262 292 -10% consolidated affiliates 269 288 -7%
---------------------------------------------------------------------
*T
-0-
*T
3Q07 Gas production by region 9M07
3Q07 2Q07 3Q06 vs (Mcfd) 9M07 9M06 vs
3Q06 9M06
---------------------------------------------------------------------
1,710 1,785 1,738 -2% Europe 1,837 1,935 -5%
630 640 509 +24% Africa 604 478 +26%
32 33 48 -33% North America 36 48 -25%
1,251 1,228 1,240 +1% Far East 1,247 1,237 +1%
384 267 272 +41% Middle East 326 278 +17%
669 625 602 +11% South America 625 590 +6%
65 21 2 x33 Rest of world 32 2 x16
---------------------------------------------------------------------
4,741 4,599 4,411 +7% Total production 4,707 4,568 +3%
---------------------------------------------------------------------
Includes equity and non-
289 255 266 +9% consolidated affiliates 286 272 +5%
---------------------------------------------------------------------
*T
-- Downstream
-0-
*T
3Q07 Refined products sales by 9M07
3Q07 2Q07 3Q06 vs region (kb/d)* 9M07 9M06 vs
3Q06 9M06
---------------------------------------------------------------------
2,305 2,185 2,268 +2% Europe 2,265 2,274 -
292 283 289 +1% Africa 286 271 +6%
403 170 319 +26% Americas 274 318 -14%
148 144 121 +22% Rest of world 144 133 +8%
---------------------------------------------------------------------
3,148 2,782 2,997 +5% Total consolidated sales 2,969 2,996 -1%
---------------------------------------------------------------------
Trading (balancing and export
790 1,010 774 +2% sales) 878 806 +9%
---------------------------------------------------------------------
---------------------------------------------------------------------
3,938 3,792 3,771 +4% Total refined products sales 3,847 3,802 +1%
---------------------------------------------------------------------
* includes equity share in Cepsa
*T
Adjustment items
-- Adjustments to operating income from the business segments
-0-
*T
3Q07 2Q07 3Q06 in millions of euros 9M07 9M06
---------------------------------------------------------------------
Special items affecting operating
- - (122) income from the business segments - (177)
---------------------------------------------------------------------
- - (10) = Restructuring charges - (33)
- - (50) = Impairments - (50)
- - (62) = Other - (94)
---------------------------------------------------------------------
Pre-tax inventory effect : FIFO vs.
210 719 (681) replacement cost 1,103 75
---------------------------------------------------------------------
---------------------------------------------------------------------
Total adjustments affecting operating
210 719 (803) income from the business segments 1,103 (102)
---------------------------------------------------------------------
*T
-- Adjustments to net income (Group share)
-0-
*T
3Q07 2Q07 3Q06 in millions of euros 9M07 9M06
----------------------------------------------------------------------
Special items affecting net income
55 (100) (132) (Group share) (45) (132)
----------------------------------------------------------------------
= Equity share of special items
75 - (2) recorded by Sanofi-Aventis 75 (35)
- - - = Gain on asset sales - 130
(20) - (80) = Restructuring charges (20) (139)
- - (32) = Impairments - (32)
- (100) (18) = Other (100) (56)
----------------------------------------------------------------------
Adjustment related to the Sanofi-
Aventis merger* (share of amortization
(77) (72) (82) of intangible assets) (225) (251)
----------------------------------------------------------------------
After-tax inventory effect : FIFO vs.
139 483 (478) replacement cost 755 78
----------------------------------------------------------------------
----------------------------------------------------------------------
117 311 (692) Total adjustments to net income 485 (305)
----------------------------------------------------------------------
* based on 13% participation in Sanofi-Aventis at 09/30/2007,
06/30/2007 and 09/30/2006
*T
Net-debt-to-equity ratio
-0-
*T
in millions of euros 9/30/2007 6/30/2007 9/30/2006
----------------------------------------------------------------------
Current borrowings 9,194 9,809 11,426
Net current financial assets (10,870) (10,790) (10,899)
Non-current financial debt 15,103 15,045 12,994
Hedging instruments of non-current debt (434) (287) (526)
Cash and cash equivalents (2,812) (2,858) (2,575)
----------------------------------------------------------------------
Net debt 10,181 10,919 10,420
----------------------------------------------------------------------
----------------------------------------------------------------------
Shareholders equity 42,818 43,657 41,761
Estimated dividend payable* (906) (2,110) (2,756)
Minority interests 851 817 863
----------------------------------------------------------------------
Equity 42,763 42,364 39,868
----------------------------------------------------------------------
----------------------------------------------------------------------
Net-debt-to-equity ratio 23.8% 25.8% 26.1%
----------------------------------------------------------------------
* as of 9/30/2007, based on a 2007 dividend of 1.87 EUR /share of 2.5
EUR of par value, less the amount of the interim dividend of 1 EUR
/share or 2,252 M EUR per the Board of Directors decision on
9/04/2007 to be paid 11/16/2007
*T
2007 sensitivities *
-0-
*T
Impact on Impact on net
Scenario Change operating operating
income (e) income (e)
----------------------------------------------------------------------
EUR /$ 1.25 $/EUR +0.1 $ per EUR -2.2 BEUR -1.1 BEUR
----------------------------------------------------------------------
Brent 60 $/b +1 $/b +0.38 BEUR +0.15 BEUR
----------------------------------------------------------------------
European refining
margin indicator
TRCV 30 $/t +1 $/t +0.09 BEUR +0.06 BEUR
----------------------------------------------------------------------
* sensitivities revised once per year upon publication of the previous
year fourth quarter results
*T
Return on average capital employed
-- For the twelve months September 30, 2007
-0-
*T
in millions of euros Upstream Downstream Chemicals** Sectors Group***
----------------------------------------------------------------------
Adjusted net
operating income 8,165 2,538 1,015 11,718 12,434
Capital employed at
9/30/2006* 24,561 11,431 7,257 43,249 50,371
Capital employed at
9/30/2007* 26,863 11,446 7,305 45,614 53,243
----------------------------------------------------------------------
ROACE 31.8% 22.2% 13.9% 26.4% 24.0%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect)
** capital employed for Chemicals reduced for the Toulouse-AZF
provision of 85 M EUR pre-tax at 9/30/2006 and 139 M EUR pre-tax at
9/30/2007
*** capital employed for the Group adjusted for the amount payable for
the interim dividend (2,252M EUR )
*T
-- For the full year 2006
-0-
*T
in millions of euros Upstream Downstream Chemicals** Sectors Group
----------------------------------------------------------------------
Adjusted net operating
income 8,709 2,784 884 12,377 13,162
Capital employed at
12/31/2005* 23,522 11,421 6,885 41,828 49,341
Capital employed at
12/31/2006* 25,543 12,384 6,920 44,847 52,263
----------------------------------------------------------------------
ROACE 35.5% 23.4% 12.8% 28.6% 25.9%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect)
** capital employed for Chemicals reduced for the Toulouse-AZF
provision of 133 M EUR pre-tax at 12/31/2005 and 176 M EUR pre-tax
at 12/31/2006 and for the Arkema capital employed of 2,235 M EUR at
12/31/2005.
*T
-- For the twelve months ended September 30, 2006
-0-
*T
in millions of euros Upstream Downstream Chemicals** Sectors Group
----------------------------------------------------------------------
Adjusted net operating
income 8,956 3,034 951 12,941 13,680
Capital employed at
9/30/2005* 21,663 10,017 6,837 38,517 45,273
Capital employed at
9/30/2006* 24,561 11,431 7,257 43,249 50,371
----------------------------------------------------------------------
ROACE 38.8% 28.3% 13.5% 31.7% 28.6%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect)
** capital employed for Chemicals reduced for the Arkema capital
employed of 2,268 M EUR at 9/30/2005 and the Toulouse-AZF provision
of 45 M EUR pre-tax at 9/30/2005 and 85 M EUR pre-tax at 9/30/2006
*T
(1) dollar amounts represent euro amounts converted at the average exchange rate
for the period (1.3738 $/ EUR in the third quarter 2007, 1.2743 $/EUR in the
third quarter 2006, 1.3481 $/EUR in the second quarter 2007, 1.3443 $/EUR in the
first nine months 2007 and 1.2447 $/EUR in the first nine months 2006)
(2) percent changes are relative to the third quarter 2006
(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. Third quarter 2007 net income
(Group share) was 3,121 million euros
(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 from
operations is defined as cash flow from operations before changes in working
capital at replacement cost; adjustment items are listed on page 15
(5) there were no special items affecting operating income from the business
segments in the third quarter 2007; in the third quarter 2006, special items
were composed of charges in Chemicals
(6) 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)
(7) includes 2.4 million shares purchased to cover the program of restricted
share grants for employees per the Board of Directors decision on July 17, 2007
(8) calculations shown on page 16
(9) there were no special items affecting operating income from the business
segments in the first nine months of 2007; special items affecting operating
income from the business segments had a negative impact of 177 M EUR in the
first nine months of 2006 ; detail of these elements shown on page 15
(10) calculations shown on page 15
(11) includes 2.4 million shares purchased to cover the program of restricted
share grants for employees per the Board of Directors decision on July 17, 2007
(12) net cash flow = cash flow from operations + divestments - investments
(13) impact of changing hydrocarbon prices on entitlement volumes
(14) calculated based on adjusted net operating income and average capital
employed, using replacement cost, as shown on page 17
(15) per the Board of Directors decision on September 4, 2007
(16) Total share, excluding trading
Total financial statements
Third quarter and first nine months of 2007 consolidated accounts, IFRS
-0-
*T
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(in millions of euros) (1) 3rd quarter 2nd quarter 3rd quarter
2007 2007 2006
----------------------------------------------------------------------
Sales 39,430 39,094 38,357
Excise taxes (5,479) (5,595) (4,829)
Revenues from sales 33,951 33,499 33,528
Purchases, net of inventory
variation (22,580) (21,385) (21,642)
Other operating expenses (4,060) (4,139) (5,001)
Exploration costs (135) (255) (159)
Depreciation, depletion, and
amortization of tangible assets
and leasehold rights (1,310) (1,365) (1,299)
----------------------------------------------------------------------
Operating income
Corporate (114) (120) (122)
Business segments * 5,980 6,475 5,549
----------------------------------------------------------------------
Total operating income 5,866 6,355 5,427
----------------------------------------------------------------------
Other income 123 60 56
Other expense (64) (102) (161)
Financial interest on debt (455) (447) (545)
Financial income from marketable
securities and cash equivalents 324 337 381
Cost of net debt (131) (110) (164)
Other financial income 155 209 144
Other financial expense (70) (74) (74)
Income taxes (3,185) (3,292) (3,262)
Equity in income (loss) of
affiliates 509 449 529
----------------------------------------------------------------------
Consolidated net income from
continuing operations (Group
without Arkema) 3,203 3,495 2,495
Consolidated net income from
discontinued operations
(Arkema) - - (13)
----------------------------------------------------------------------
Consolidated net income 3,203 3,495 2,482
----------------------------------------------------------------------
Group share ** 3,121 3,411 2,419
Minority interests 82 84 63
----------------------------------------------------------------------
Earnings per share (euros) 1.38 1.51 1.06
----------------------------------------------------------------------
Fully-diluted earnings per share
(euros) *** 1.37 1.50 1.05
----------------------------------------------------------------------
----------------------------------------------------------------------
* Adjusted operating income from
business segments 5,770 5,756 6,352
----------------------------------------------------------------------
Adjusted net operating income
from business segments 3,000 3,081 3,079
----------------------------------------------------------------------
** Adjusted net income 3,004 3,100 3,111
----------------------------------------------------------------------
*** Adjusted fully-diluted
earnings per share (euros) 1.32 1.36 1.35
----------------------------------------------------------------------
(1) Except for earnings per share
*T
-0-
*T
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(in millions of euros) (1) 9 months 9 months
2007 2006
----------------------------------------------------------------------
Sales 115,567 117,369
Excise taxes (16,440) (14,577)
Revenues from sales 99,127 102,792
Purchases, net of inventory variation (63,674) (64,471)
Other operating expenses (12,851) (14,923)
Exploration costs (604) (420)
Depreciation, depletion, and amortization of
tangible assets and leasehold rights (3,975) (3,742)
----------------------------------------------------------------------
Operating income
Corporate (335) (374)
Business segments * 18,358 19,610
----------------------------------------------------------------------
Total operating income 18,023 19,236
----------------------------------------------------------------------
Other income 279 389
Other expense (230) (404)
Financial interest on debt (1,332) (1,260)
Financial income from marketable securities and
cash equivalents 955 992
Cost of net debt (377) (268)
Other financial income 492 451
Other financial expense (211) (194)
Income taxes (9,567) (10,719)
Equity in income (loss) of affiliates 1,427 1,349
----------------------------------------------------------------------
Consolidated net income from continuing operations
(Group without Arkema) 9,836 9,840
Consolidated net income from discontinued
operations (Arkema) - (5)
----------------------------------------------------------------------
Consolidated net income 9,836 9,835
----------------------------------------------------------------------
Group share ** 9,581 9,543
Minority interests 255 292
----------------------------------------------------------------------
Earnings per share (euros) 4.24 4.15
----------------------------------------------------------------------
Fully-diluted earnings per share (euros) *** 4.21 4.11
----------------------------------------------------------------------
----------------------------------------------------------------------
* Adjusted operating income from business segments 17,255 19,712
----------------------------------------------------------------------
Adjusted net operating income from business
segments 9,029 9,688
----------------------------------------------------------------------
** Adjusted net income 9,096 9,848
----------------------------------------------------------------------
*** Adjusted fully-diluted earnings per share
(euros) 3.99 4.24
----------------------------------------------------------------------
(1) Except for earnings per share
*T
-0-
*T
CONSOLIDATED BALANCE SHEET
TOTAL
(in millions September 30, June 30, December 31, September 30,
of euros) 2007 2007 2006 2006
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
ASSETS
Non-current
assets
Intangible
assets, net 4,831 4,729 4,705 4,608
Property,
plant and
equipment,
net 42,109 42,090 40,576 39,809
Equity
affiliates :
investments
and loans 13,661 13,619 13,331 13,275
Other
investments 1,343 1,385 1,250 1,635
Hedging
instruments
of non-
current
financial
debt 434 287 486 526
Other non-
current
assets 1,756 1,801 2,088 2,204
----------------------------------------------------------------------
Total non-
current
assets 64,134 63,911 62,436 62,057
----------------------------------------------------------------------
Current assets
Inventories,
net 12,580 12,009 11,746 11,531
Accounts
receivable,
net 18,200 17,024 17,393 16,981
Prepaid
expenses and
other current
assets 7,142 7,155 7,247 7,182
Current
financial
assets 11,072 10,883 3,908 10,930
Cash and cash
equivalents 2,812 2,858 2,493 2,575
----------------------------------------------------------------------
Total current
assets 51,806 49,929 42,787 49,199
----------------------------------------------------------------------
Total assets 115,940 113,840 105,223 111,256
LIABILITIES &
SHAREHOLDERS'
EQUITY
Shareholders'
equity
Common shares 5,987 5,983 6,064 6,063
Paid-in
surplus and
retained
earnings 45,052 44,238 41,460 41,367
Cumulative
translation
adjustment (3,161) (1,885) (1,383) (501)
Treasury
shares (5,060) (4,679) (5,820) (5,168)
----------------------------------------------------------------------
Total
shareholders'
equity -
Group Share 42,818 43,657 40,321 41,761
----------------------------------------------------------------------
Minority
interests 851 817 827 863
----------------------------------------------------------------------
Total
shareholders'
equity 43,669 44,474 41,148 42,624
----------------------------------------------------------------------
Non-current
liabilities
Deferred
income taxes 7,555 7,442 7,139 7,133
Employee
benefits 2,813 2,814 2,773 3,076
Other non-
current
liabilities 6,295 6,359 6,467 6,108
----------------------------------------------------------------------
Total non-
current
liabilities 16,663 16,615 16,379 16,317
----------------------------------------------------------------------
Non-current
financial
debt 15,103 15,045 14,174 12,994
----------------------------------------------------------------------
Current
liabilities
Accounts
payable 14,841 14,418 15,080 13,338
Other
creditors and
accrued
liabilities 16,268 13,386 12,509 14,526
Current
borrowings 9,194 9,809 5,858 11,426
Other current
financial
liabilities 202 93 75 31
----------------------------------------------------------------------
Total current
liabilities 40,505 37,706 33,522 39,321
----------------------------------------------------------------------
Total
liabilities
and
shareholders'
equity 115,940 113,840 105,223 111,256
*T
-0-
*T
CONSOLIDATED STATEMENT OF CASH FLOWS
TOTAL
(unaudited)
(in millions of euros) 3rd quarter 2nd quarter 3rd quarter
2007 2007 2006
----------------------------------------------------------------------
CASH FLOW FROM OPERATING
ACTIVITIES
Consolidated net income 3,203 3,495 2,482
Depreciation, depletion and
amortization 1,405 1,495 1,502
Non-current liabilities,
valuation allowances and
deferred taxes 235 315 67
Impact of coverage of pension
benefit plans - - -
(Gains) Losses on sales of
assets (117) (66) (56)
Undistributed affiliates equity
earnings (306) 1 (380)
(Increase) decrease in operating
assets and liabilities (921) (1,693) 1,337
Other changes, net 50 42 101
----------------------------------------------------------------------
Cash flow from operating
activities 3,549 3,589 5,053
CASH FLOW USED IN INVESTING
ACTIVITIES
Intangible assets and property,
plant and equipment additions (2,458) (2,509) (2,275)
Acquisitions of subsidiaries,
net of cash acquired - - (25)
Investments in equity affiliates
and other securities (40) (47) (77)
Increase in non-current loans (92) (134) (290)
----------------------------------------------------------------------
Total expenditures (2,590) (2,690) (2,667)
Proceeds from sale of intangible
assets and property, plant and
equipment 17 18 20
Proceeds from sale of
subsidiaries, net of cash sold - - -
Proceeds from sale of non-
current investments 26 64 75
Repayment of non-current loans 66 140 91
----------------------------------------------------------------------
Total divestitures 109 222 186
----------------------------------------------------------------------
Cash flow used in investing
activities (2,481) (2,468) (2,481)
CASH FLOW USED IN FINANCING
ACTIVITIES
Issuance (repayment) of shares:
- parent company's
shareholders 48 10 10
- treasury shares (491) (295) (1,085)
- minority shareholders (2) - 2
Cash dividends paid:
- parent company's
shareholders - (2,262) -
- minority shareholders (2) (133) -
Net issuance (repayment) of non-
current debt 321 1,309 682
Increase (Decrease) in current
borrowings (143) (135) (3,662)
Increase (Decrease) in current
financial assets and
liabilities (517) 138 (95)
Other changes, net - - -
----------------------------------------------------------------------
Cash flow used in financing
activities (785) (1,368) (4,148)
----------------------------------------------------------------------
Net increase (decrease) in cash
and cash equivalents 283 (247) (1,576)
Effect of exchange rates and
changes in reporting entity (329) 143 245
Cash and cash equivalents at the
beginning of the period 2,858 2,962 3,906
----------------------------------------------------------------------
Cash and cash equivalents at the
end of the period 2,812 2,858 2,575
----------------------------------------------------------------------
*T
-0-
*T
CONSOLIDATED STATEMENT OF CASH FLOWS
TOTAL
(unaudited)
(in millions of euros) 9 months 9 months
2007 2006
----------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 9,836 9,835
Depreciation, depletion and amortization 4,338 4,345
Non-current liabilities, valuation allowances and
deferred taxes 523 244
Impact of coverage of pension benefit plans - (37)
(Gains) Losses on sales of assets (258) (389)
Undistributed affiliates equity earnings (635) (644)
(Increase) decrease in operating assets and
liabilities (516) 501
Other changes, net 238 83
----------------------------------------------------------------------
Cash flow from operating activities 13,526 13,938
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment
additions (7,090) (6,869)
Acquisitions of subsidiaries, net of cash acquired (20) (105)
Investments in equity affiliates and other
securities (187) (200)
Increase in non-current loans (397) (1,022)
----------------------------------------------------------------------
Total expenditures (7,694) (8,196)
Proceeds from sale of intangible assets and
property, plant and equipment 107 329
Proceeds from sale of subsidiaries, net of cash
sold - -
Proceeds from sale of non-current investments 109 164
Repayment of non-current loans 359 714
----------------------------------------------------------------------
Total divestitures 575 1,207
----------------------------------------------------------------------
Cash flow used in investing activies (7,119) (6,989)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- parent company's shareholders 63 488
- treasury shares (1,059) (3,171)
- minority shareholders (2) 15
Cash dividends paid:
- parent company's shareholders (2,262) (2,022)
- minority shareholders (164) (230)
Net issuance (repayment) of non-current debt 2,734 1,807
Increase (Decrease) in current borrowings 2,364 5,911
Increase (Decrease) in current financial assets and
liabilities (7,485) (10,791)
Other changes, net - -
----------------------------------------------------------------------
Cash flow used in financing activities (5,810) (7,993)
----------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 597 (1,044)
Effect of exchange rates and changes in reporting
entity (278) (699)
Cash and cash equivalents at the beginning of the
period 2,493 4,318
----------------------------------------------------------------------
Cash and cash equivalents at the end of the period 2,812 2,575
----------------------------------------------------------------------
Nine months 2006 statement of cash flows includes the sub-group Arkema
which has been spun-off on May 18, 2006.
*T
-0-
*T
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL
(unaudited)
----------------------------------------------------------------------
(in millions of euros) Paid-in Cumulative
Common shares issued surplus and translation
retained adjustment
earnings
Number Amount
----------------------------------------------------------------------
As of January 1, 2006 615,116,296 6,151 37,504 1,421
----------------------------------------------------------------------
Net income for the
first nine months - - 9,543 -
Items recognized
directly in equity - - 159 (1,713)
Total excluding
transactions with
shareholders - - 9,702 (1,713)
Four-for-one split of
shares par value 1,845,348,888 - - -
Spin-off of Arkema - - (2,045) (209)
Dividend - - (2,022) -
Issuance of common
shares 11,750,640 29 453 -
Purchase of treasury
shares - - - -
Sale of treasury shares
(1) - - - -
Share-based payments - - 116 -
Transactions with
shareholders 1,857,099,528 29 (3,498) (209)
Cancellation of
repurchased shares (47,020,000) (117) (2,341) -
As of September 30,
2006 2,425,195,824 6,063 41,367 (501)
----------------------------------------------------------------------
Net income for the
fourth quarter - - 2,225 -
Items recognized
directly in equity - - (196) (882)
Total excluding
transactions with
shareholders - - 2,029 (882)
Spin-off of Arkema - - (16) -
Dividend - - (1,977) -
Issuance of common
shares 572,129 1 16 -
Purchase of treasury
shares - - - -
Sale of treasury shares
(1) - - - -
Share-based payments - - 41 -
Transactions with
shareholders 572,129 1 (1,936) -
Cancellation of
repurchased shares - - - -
As of December 31, 2006 2,425,767,953 6,064 41,460 (1,383)
----------------------------------------------------------------------
Net income for the
first nine months - - 9,581 -
Items recognized
directly in equity - - 75 (1,778)
Total excluding
transactions with
shareholders - - 9,656 (1,778)
Dividend - - (4,514) -
Issuance of common
shares 2,039,726 5 58 -
Purchase of treasury
shares - - - -
Sale and grant of
treasury shares (1) - - (82) -
Share-based payments - - 126 -
Transactions with
shareholders 2,039,726 5 (4,412) -
Cancellation of
repurchased shares (33,005,000) (82) (1,652) -
As of September 30,
2007 2,394,802,679 5,987 45,052 (3,161)
----------------------------------------------------------------------
(in millions Treasury shares Shareholders' Minority Total
of euros) equity interests equity
Number Amount
----------------------------------------------------------------------
As of January
1, 2006 (34,249,332) (4,431) 40,645 838 41,483
----------------------------------------------------------------------
Net income
for the
first nine
months - - 9,543 292 9,835
Items
recognized
directly in
equity - - (1,554) (29) (1,583)
Total
excluding
transactions
with
shareholders - - 7,989 263 8,252
Four-for-one
split of
shares par
value (102,747,996) - - - -
Spin-off of
Arkema - - (2,254) (8) (2,262)
Dividend - - (2,022) (230) (2,252)
Issuance of
common
shares - - 482 - 482
Purchase of
treasury
shares (64,295,684) (3,346) (3,346) - (3,346)
Sale of
treasury
shares (1) 4,678,367 151 151 - 151
Share-based
payments - - 116 - 116
Transactions
with
shareholders (162,365,313) (3,195) (6,873) (238) (7,111)
Cancellation
of
repurchased
shares 47,020,000 2,458 - - -
As of
September
30, 2006 (149,594,645) (5,168) 41,761 863 42,624
----------------------------------------------------------------------
Net income
for the
fourth
quarter - - 2,225 75 2,300
Items
recognized
directly in
equity - - (1,078) (15) (1,093)
Total
excluding
transactions
with
shareholders - - 1,147 60 1,207
Spin-off of
Arkema - 16 - -
Dividend - - (1,977) (96) (2,073)
Issuance of
common
shares - - 17 - 17
Purchase of
treasury
shares (13,925,000) (749) (749) - (749)
Sale of
treasury
shares (1) 2,318,938 81 81 - 81
Share-based
payments - - 41 - 41
Transactions
with
shareholders (11,606,062) (652) (2,587) (96) (2,683)
Cancellation
of
repurchased
shares - - - - -
As of
December 31,
2006 (161,200,707) (5,820) 40,321 827 41,148
----------------------------------------------------------------------
Net income
for the
first nine
months - - 9,581 255 9,836
Items
recognized
directly in
equity - - (1,703) (67) (1,770)
Total
excluding
transactions
with
shareholders - - 7,878 188 8,066
Dividend - - (4,514) (164) (4,678)
Issuance of
common
shares - - 63 - 63
Purchase of
treasury
shares (23,387,355) (1,287) (1,287) - (1,287)
Sale and
grant of
treasury
shares (1) 8,288,463 313 231 - 231
Share-based
payments - - 126 - 126
Transactions
with
shareholders (15,098,892) (974) (5,381) (164) (5,545)
Cancellation
of
repurchased
shares 33,005,000 1,734 - - -
As of
September
30, 2007 (143,294,599) (5,060) 42,818 851 43,669
----------------------------------------------------------------------
(1) Treasury shares related to the stock option purchase plans and
restricted stock grants.
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
3rd quarter 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,143 30,430 4,856
Intersegment sales 5,453 1,124 326
Excise taxes - (5,479) -
----------------------------------------------------------------------
Revenues from sales 9,596 26,075 5,182
Operating expenses (3,845) (25,000) (4,726)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (890) (288) (124)
----------------------------------------------------------------------
Operating income 4,861 787 332
Equity in income (loss) of affiliates
and other items 309 76 6
Tax on net operating income (2,943) (207) (100)
----------------------------------------------------------------------
Net operating income 2,227 656 238
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
3rd quarter 2007 (adjustments) (*) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 221 (11)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - - -
----------------------------------------------------------------------
Operating income (1) - 221 (11)
Equity in income (loss) of affiliates
and other items (2) - (34) (1)
Tax on net operating income - (57) 3
----------------------------------------------------------------------
Net operating income (1) - 130 (9)
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
3rd quarter 2007 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 1 - 39,430
Intersegment sales 58 (6,961) -
Excise taxes - - (5,479)
----------------------------------------------------------------------
Revenues from sales 59 (6,961) 33,951
Operating expenses (165) 6,961 (26,775)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (8) - (1,310)
----------------------------------------------------------------------
Operating income (114) - 5,866
Equity in income (loss) of affiliates
and other items 262 - 653
Tax on net operating income 12 - (3,238)
----------------------------------------------------------------------
Net operating income 160 - 3,281
Net cost of net debt (78)
Minority interests (82)
----------------------------------------------------------------------
Net income from continuing operations 3,121
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 3,121
----------------------------------------------------------------------
3rd quarter 2007 (adjustments) (*) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 210
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - -
----------------------------------------------------------------------
Operating income (1) - 210
Equity in income (loss) of affiliates
and other items (2) (2) (37)
Tax on net operating income - (54)
----------------------------------------------------------------------
Net operating income (1) (2) 119
Net cost of net debt -
Minority interests (2)
----------------------------------------------------------------------
Net income from continuing operations 117
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 117
*T
-0-
*T
Upstream Downstream Chemicals Corporate
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory
valuation effect
On operating income - 221 (11) -
On net operating income - 150 (9) -
(2) Of which equity share of
amortization of intangible
assets related to the Sanofi-
Aventis merger - - - (77)
----------------------------------------------------------------------
*T
-0-
*T
3rd quarter 2007 (adjusted) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,143 30,430 4,856
Intersegment sales 5,453 1,124 326
Excise taxes - (5,479) -
----------------------------------------------------------------------
Revenues from sales 9,596 26,075 5,182
Operating expenses (3,845) (25,221) (4,715)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (890) (288) (124)
----------------------------------------------------------------------
Adjusted operating income 4,861 566 343
Equity in income (loss) of affiliates
and other items 309 110 7
Tax on net operating income (2,943) (150) (103)
----------------------------------------------------------------------
Adjusted net operating income 2,227 526 247
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Adjusted net income from continuing
operations
Adjusted net income from discontinued
operations
----------------------------------------------------------------------
Adjusted net income
----------------------------------------------------------------------
3rd quarter 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 1,981 381 200
Divestitures at selling price 63 27 15
Cash flow from operating activities 1,697 439 217
----------------------------------------------------------------------
3rd quarter Corporate Intercompany Total
2007
(adjusted)
(in millions
of euros)
---------------------------------------------
Non-Group
sales 1 - 39,430
Intersegment
sales 58 (6,961) -
Excise taxes - - (5,479)
---------------------------------------------
Revenues from
sales 59 (6,961) 33,951
Operating
expenses (165) 6,961 (26,985)
Depreciation,
depletion,
and
amortization
of tangible
assets and
leasehold
rights (8) - (1,310)
---------------------------------------------
Adjusted
operating
income (114) - 5,656
Equity in
income
(loss) of
affiliates
and other
items 264 - 690
Tax on net
operating
income 12 - (3,184)
---------------------------------------------
Adjusted net
operating
income 162 - 3,162
Net cost of
net debt (78)
Minority
interests (80)
---------------------------------------------
Adjusted net
income from
continuing
operations 3,004
Adjusted net
income from
discontinued
operations -
---------------------------------------------
Adjusted net
income 3,004
---------------------------------------------
3rd quarter Corporate Intercompany Total
2007
(in millions
of euros)
---------------------------------------------
Total
expenditures 28 2,590
Divestitures
at selling
price 4 109
Cash flow
from
operating
activities 1,196 3,549
---------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
2nd quarter 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,456 29,562 5,070
Intersegment sales 5,073 1,201 269
Excise taxes - (5,595) -
----------------------------------------------------------------------
Revenues from sales 9,529 25,168 5,339
Operating expenses (4,148) (23,244) (4,812)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (941) (297) (119)
----------------------------------------------------------------------
Operating income 4,440 1,627 408
Equity in income (loss) of affiliates
and other items 397 72 14
Tax on net operating income (2,745) (519) (123)
----------------------------------------------------------------------
Net operating income 2,092 1,180 299
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
2nd quarter 2007 (adjustments) (*) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 623 96
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - - -
----------------------------------------------------------------------
Operating income (1) - 623 96
Equity in income (loss) of affiliates
and other items (2) - 6 1
Tax on net operating income - (204) (32)
----------------------------------------------------------------------
Net operating income (1) - 425 65
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income - 623 96
On net operating income - 425 65
(2) Of which equity share of
amortization of intangible assets
related to the
Sanofi-Aventis merger - - -
----------------------------------------------------------------------
2nd quarter 2007 (adjusted) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,456 29,562 5,070
Intersegment sales 5,073 1,201 269
Excise taxes - (5,595) -
----------------------------------------------------------------------
Revenues from sales 9,529 25,168 5,339
Operating expenses (4,148) (23,867) (4,908)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (941) (297) (119)
----------------------------------------------------------------------
Adjusted operating income 4,440 1,004 312
Equity in income (loss) of affiliates
and other items 397 66 13
Tax on net operating income (2,745) (315) (91)
----------------------------------------------------------------------
Adjusted net operating income 2,092 755 234
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Adjusted net income from continuing
operations
Adjusted net income from discontinued
operations
----------------------------------------------------------------------
Adjusted net income
----------------------------------------------------------------------
2nd quarter 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 2,109 401 173
Divestitures at selling price 191 28 1
Cash flow from operating activities 3,312 1,432 254
----------------------------------------------------------------------
----------------------------------------------------------------------
2nd quarter 2007 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 6 - 39,094
Intersegment sales 25 (6,568) -
Excise taxes - - (5,595)
----------------------------------------------------------------------
Revenues from sales 31 (6,568) 33,499
Operating expenses (143) 6,568 (25,779)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (8) - (1,365)
----------------------------------------------------------------------
Operating income (120) - 6,355
Equity in income (loss) of affiliates
and other items 59 - 542
Tax on net operating income 51 - (3,336)
----------------------------------------------------------------------
Net operating income (10) - 3,561
Net cost of net debt (66)
Minority interests (84)
----------------------------------------------------------------------
Net income from continuing operations 3,411
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 3,411
----------------------------------------------------------------------
2nd quarter 2007 (adjustments) (*) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 719
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - -
----------------------------------------------------------------------
Operating income (1) - 719
Equity in income (loss) of affiliates
and other items (2) (172) (165)
Tax on net operating income - (236)
----------------------------------------------------------------------
Net operating income (1) (172) 318
Net cost of net debt -
Minority interests (7)
----------------------------------------------------------------------
Net income from continuing operations 311
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 311
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income -
On net operating income -
(2) Of which equity share of
amortization of intangible assets
related to the
Sanofi-Aventis merger (72)
----------------------------------------------------------------------
2nd quarter 2007 (adjusted) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 6 - 39,094
Intersegment sales 25 (6,568) -
Excise taxes - - (5,595)
----------------------------------------------------------------------
Revenues from sales 31 (6,568) 33,499
Operating expenses (143) 6,568 (26,498)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (8) - (1,365)
----------------------------------------------------------------------
Adjusted operating income (120) - 5,636
Equity in income (loss) of affiliates
and other items 231 - 707
Tax on net operating income 51 - (3,100)
----------------------------------------------------------------------
Adjusted net operating income 162 - 3,243
Net cost of net debt (66)
Minority interests (77)
----------------------------------------------------------------------
Adjusted net income from continuing
operations 3,100
Adjusted net income from discontinued
operations -
----------------------------------------------------------------------
Adjusted net income 3,100
----------------------------------------------------------------------
2nd quarter 2007 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 7 2,690
Divestitures at selling price 2 222
Cash flow from operating activities (1,409) 3,589
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
3rd quarter 2006 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,684 28,818 4,849
Intersegment sales 4,782 1,292 362
Excise taxes - (4,829) -
----------------------------------------------------------------------
Revenues from sales 9,466 25,281 5,211
Operating expenses (3,631) (24,665) (4,823)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (835) (272) (183)
----------------------------------------------------------------------
Operating income 5,000 344 205
Equity in income (loss) of affiliates
and other items 252 84 (94)
Tax on net operating income (3,304) (94) (25)
----------------------------------------------------------------------
Net operating income 1,948 334 86
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
3rd quarter 2006 (adjustments) (*) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - (658) (95)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - - (50)
----------------------------------------------------------------------
Operating income (1) - (658) (145)
Equity in income (loss) of affiliates
and other items (2) - (5) (99)
Tax on net operating income (85) 199 82
----------------------------------------------------------------------
Net operating income (1) (85) (464) (162)
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income - (658) (23)
On net operating income - (464) (14)
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger - - -
----------------------------------------------------------------------
3rd quarter 2006 (adjusted) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 4,684 28,818 4,849
Intersegment sales 4,782 1,292 362
Excise taxes - (4,829) -
----------------------------------------------------------------------
Revenues from sales 9,466 25,281 5,211
Operating expenses (3,631) (24,007) (4,728)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (835) (272) (133)
----------------------------------------------------------------------
Adjusted operating income 5,000 1,002 350
Equity in income (loss) of affiliates
and other items 252 89 5
Tax on net operating income (3,219) (293) (107)
----------------------------------------------------------------------
Adjusted net operating income 2,033 798 248
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Adjusted net income from continuing
operations
Adjusted net income from discontinued
operations
----------------------------------------------------------------------
Adjusted net income
----------------------------------------------------------------------
3rd quarter 2006 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 2,073 383 202
Divestitures at selling price 80 90 4
Cash flow from operating activities 2,534 1,180 291
----------------------------------------------------------------------
----------------------------------------------------------------------
3rd quarter 2006 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 6 - 38,357
Intersegment sales 40 (6,476) -
Excise taxes - - (4,829)
----------------------------------------------------------------------
Revenues from sales 46 (6,476) 33,528
Operating expenses (159) 6,476 (26,802)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (9) - (1,299)
----------------------------------------------------------------------
Operating income (122) - 5,427
Equity in income (loss) of affiliates
and other items 252 - 494
Tax on net operating income 108 - (3,315)
----------------------------------------------------------------------
Net operating income 238 - 2,606
Net cost of net debt (111)
Minority interests (63)
----------------------------------------------------------------------
Net income from continuing operations 2,432
Net income from discontinued
operations (13)
----------------------------------------------------------------------
Net income 2,419
----------------------------------------------------------------------
3rd quarter 2006 (adjustments) (*) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses (9) (762)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - (50)
----------------------------------------------------------------------
Operating income (1) (9) (812)
Equity in income (loss) of affiliates
and other items (2) 12 (92)
Tax on net operating income 2 198
----------------------------------------------------------------------
Net operating income (1) 5 (706)
Net cost of net debt -
Minority interests 14
----------------------------------------------------------------------
Net income from continuing operations (692)
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income (692)
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income -
On net operating income -
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger (83)
----------------------------------------------------------------------
3rd quarter 2006 (adjusted) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 6 - 38,357
Intersegment sales 40 (6,476) -
Excise taxes - - (4,829)
----------------------------------------------------------------------
Revenues from sales 46 (6,476) 33,528
Operating expenses (150) 6,476 (26,040)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (9) - (1,249)
----------------------------------------------------------------------
Adjusted operating income (113) - 6,239
Equity in income (loss) of affiliates
and other items 240 - 586
Tax on net operating income 106 - (3,513)
----------------------------------------------------------------------
Adjusted net operating income 233 - 3,312
Net cost of net debt (111)
Minority interests (77)
----------------------------------------------------------------------
Adjusted net income from continuing
operations 3,124
Adjusted net income from discontinued
operations (13)
----------------------------------------------------------------------
Adjusted net income 3,111
----------------------------------------------------------------------
3rd quarter 2006 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 9 2,667
Divestitures at selling price 12 186
Cash flow from operating activities 1,048 5,053
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS
SEGMENT
INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
9 months 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 13,833 86,793 14,921
Intersegment sales 15,269 3,568 827
Excise taxes - (16,440) -
----------------------------------------------------------------------
Revenues from sales 29,102 73,921 15,748
Operating expenses (12,717) (69,551) (14,193)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (2,709) (876) (367)
----------------------------------------------------------------------
Operating income 13,676 3,494 1,188
Equity in income (loss) of affiliates
and other items 976 202 43
Tax on net operating income (8,372) (1,063) (371)
----------------------------------------------------------------------
Net operating income 6,280 2,633 860
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
9 months 2007 (adjustments) (*) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 951 152
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - - -
----------------------------------------------------------------------
Operating income (1) - 951 152
Equity in income (loss) of affiliates
and other items (2) - (10) (1)
Tax on net operating income - (297) (51)
----------------------------------------------------------------------
Net operating income (1) - 644 100
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income - 951 152
On net operating income - 664 100
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger - - -
----------------------------------------------------------------------
9 months 2007 (adjusted) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 13,833 86,793 14,921
Intersegment sales 15,269 3,568 827
Excise taxes - (16,440) -
----------------------------------------------------------------------
Revenues from sales 29,102 73,921 15,748
Operating expenses (12,717) (70,502) (14,345)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (2,709) (876) (367)
----------------------------------------------------------------------
Adjusted operating income 13,676 2,543 1,036
Equity in income (loss) of affiliates
and other items 976 212 44
Tax on net operating income (8,372) (766) (320)
----------------------------------------------------------------------
Adjusted net operating income 6,280 1,989 760
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Adjusted net income from continuing
operations
Adjusted net income from discontinued
operations
----------------------------------------------------------------------
Adjusted net income
----------------------------------------------------------------------
9 months 2007 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 6,079 1,026 546
Divestitures at selling price 427 77 63
Cash flow from operating activities 9,344 3,776 578
----------------------------------------------------------------------
----------------------------------------------------------------------
9 months 2007 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 20 - 115,567
Intersegment sales 125 (19,789) -
Excise taxes - - (16,440)
----------------------------------------------------------------------
Revenues from sales 145 (19,789) 99,127
Operating expenses (457) 19,789 (77,129)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (23) - (3,975)
----------------------------------------------------------------------
Operating income (335) - 18,023
Equity in income (loss) of affiliates
and other items 536 - 1,757
Tax on net operating income 95 - (9,711)
----------------------------------------------------------------------
Net operating income 296 - 10,069
Net cost of net debt (233)
Minority interests (255)
----------------------------------------------------------------------
Net income from continuing operations 9,581
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 9,581
----------------------------------------------------------------------
9 months 2007 (adjustments) (*) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 1,103
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - -
----------------------------------------------------------------------
Operating income (1) - 1,103
Equity in income (loss) of affiliates
and other items (2) (250) (261)
Tax on net operating income - (348)
----------------------------------------------------------------------
Net operating income (1) (250) 494
Net cost of net debt -
Minority interests (9)
----------------------------------------------------------------------
Net income from continuing operations 485
Net income from discontinued
operations -
----------------------------------------------------------------------
Net income 485
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income -
On net operating income -
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger (225)
----------------------------------------------------------------------
9 months 2007 (adjusted) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 20 - 115,567
Intersegment sales 125 (19,789) -
Excise taxes - - (16,440)
----------------------------------------------------------------------
Revenues from sales 145 (19,789) 99,127
Operating expenses (457) 19,789 (78,232)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (23) - (3,975)
----------------------------------------------------------------------
Adjusted operating income (335) - 16,920
Equity in income (loss) of affiliates
and other items 786 - 2,018
Tax on net operating income 95 - (9,363)
----------------------------------------------------------------------
Adjusted net operating income 546 - 9,575
Net cost of net debt (233)
Minority interests (246)
----------------------------------------------------------------------
Adjusted net income from continuing
operations 9,096
Adjusted net income from discontinued
operations -
----------------------------------------------------------------------
Adjusted net income 9,096
----------------------------------------------------------------------
9 months 2007 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 43 7,694
Divestitures at selling price 8 575
Cash flow from operating activities (172) 13,526
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
9 months 2006 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 15,822 87,026 14,503
Intersegment sales 15,621 3,883 957
Excise taxes - (14,577) -
----------------------------------------------------------------------
Revenues from sales 31,443 76,332 15,460
Operating expenses (13,013) (72,617) (14,281)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (2,453) (815) (446)
----------------------------------------------------------------------
Operating income 15,977 2,900 733
Equity in income (loss) of affiliates
and other items 887 233 (121)
Tax on net operating income (9,995) (861) (153)
----------------------------------------------------------------------
Net operating income 6,869 2,272 459
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
----------------------------------------------------------------------
9 months 2006 (adjustments) (*) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses - 6 (58)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - - (50)
----------------------------------------------------------------------
Operating income (1) - 6 (108)
Equity in income (loss) of affiliates
and other items (2) 195 23 (149)
Tax on net operating income (150) 8 87
----------------------------------------------------------------------
Net operating income (1) 45 37 (170)
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Net income from continuing operations
Net income from discontinued operations
----------------------------------------------------------------------
Net income
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income - 6 69
On net operating income - 37 49
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger - - -
----------------------------------------------------------------------
9 months 2006 (adjusted) Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 15,822 87,026 14,503
Intersegment sales 15,621 3,883 957
Excise taxes - (14,577) -
----------------------------------------------------------------------
Revenues from sales 31,443 76,332 15,460
Operating expenses (13,013) (72,623) (14,223)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (2,453) (815) (396)
----------------------------------------------------------------------
Adjusted operating income 15,977 2,894 841
Equity in income (loss) of affiliates
and other items 692 210 28
Tax on net operating income (9,845) (869) (240)
----------------------------------------------------------------------
Adjusted net operating income 6,824 2,235 629
Net cost of net debt
Minority interests
----------------------------------------------------------------------
Adjusted net income from continuing
operations
Adjusted net income from discontinued
operations
----------------------------------------------------------------------
Adjusted net income
----------------------------------------------------------------------
9 months 2006 Upstream Downstream Chemicals
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 6,363 1,072 702
Divestitures at selling price 935 153 99
Cash flow from operating activities 9,736 3,365 247
----------------------------------------------------------------------
----------------------------------------------------------------------
9 months 2006 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 18 - 117,369
Intersegment sales 127 (20,588) -
Excise taxes - - (14,577)
----------------------------------------------------------------------
Revenues from sales 145 (20,588) 102,792
Operating expenses (491) 20,588 (79,814)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (28) - (3,742)
----------------------------------------------------------------------
Operating income (374) - 19,236
Equity in income (loss) of affiliates
and other items 592 - 1,591
Tax on net operating income 192 - (10,817)
----------------------------------------------------------------------
Net operating income 410 - 10,010
Net cost of net debt (170)
Minority interests (292)
----------------------------------------------------------------------
Net income from continuing operations 9,548
Net income from discontinued
operations (5)
----------------------------------------------------------------------
Net income 9,543
----------------------------------------------------------------------
9 months 2006 (adjustments) (*) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales
Intersegment sales
Excise taxes
----------------------------------------------------------------------
Revenues from sales
Operating expenses (20) (72)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights - (50)
----------------------------------------------------------------------
Operating income (1) (20) (122)
Equity in income (loss) of affiliates
and other items (2) (191) (122)
Tax on net operating income 6 (49)
----------------------------------------------------------------------
Net operating income (1) (205) (293)
Net cost of net debt -
Minority interests 7
----------------------------------------------------------------------
Net income from continuing operations (286)
Net income from discontinued
operations (19)
----------------------------------------------------------------------
Net income (305)
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(1) Of which inventory valuation effect
On operating income -
On net operating income -
(2) Of which equity share of
amortization of intangible assets
related to the Sanofi-Aventis merger (253)
----------------------------------------------------------------------
9 months 2006 (adjusted) Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Non-Group sales 18 - 117,369
Intersegment sales 127 (20,588) -
Excise taxes - - (14,577)
----------------------------------------------------------------------
Revenues from sales 145 (20,588) 102,792
Operating expenses (471) 20,588 (79,742)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (28) - (3,692)
----------------------------------------------------------------------
Adjusted operating income (354) - 19,358
Equity in income (loss) of affiliates
and other items 783 - 1,713
Tax on net operating income 186 - (10,768)
----------------------------------------------------------------------
Adjusted net operating income 615 - 10,303
Net cost of net debt (170)
Minority interests (299)
----------------------------------------------------------------------
Adjusted net income from continuing
operations 9,834
Adjusted net income from discontinued
operations 14
----------------------------------------------------------------------
Adjusted net income 9,848
----------------------------------------------------------------------
9 months 2006 Corporate Intercompany Total
(in millions of euros)
----------------------------------------------------------------------
Total expenditures 59 8,196
Divestitures at selling price 20 1,207
Cash flow from operating activities 590 13,938
----------------------------------------------------------------------
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CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
---------------------------------
9 months 2007 Ajusted Adjustments Consolidated
(in millions of euros) statement
of income
----------------------------------------------------------------------
Sales 115,567 - 115,567
Excise taxes (16,440) - (16,440)
Revenues from sales 99,127 - 99,127
Purchases, net of inventory
variation (64,777) 1,103 (63,674)
Other operating expenses (12,851) - (12,851)
Exploration costs (604) - (604)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (3,975) - (3,975)
----------------------------------------------------------------------
Operating income
Corporate (335) - (335)
Business segments 17,255 1,103 18,358
----------------------------------------------------------------------
Total operating income 16,920 1,103 18,023
----------------------------------------------------------------------
Other income 279 - 279
Other expense (100) (130) (230)
Financial interest on debt (1,332) - (1,332)
Financial income from marketable
securities and cash equivalents 955 - 955
Cost of net debt (377) - (377)
Other financial income 492 - 492
Other financial expense (211) - (211)
Income taxes (9,219) (348) (9,567)
Equity in income (loss) of
affiliates 1,558 (131) 1,427
----------------------------------------------------------------------
Consolidated net income from
continuing operations 9,342 494 9,836
Consolidated net income from
discontinued operations - - -
----------------------------------------------------------------------
Consolidated net income 9,342 494 9,836
Group share 9,096 485 9,581
Minority interests 246 9 255
---------------------------------
3rd quarter 2007 Ajusted Adjustments Consolidated
(in millions of euros) statement
of income
----------------------------------------------------------------------
Sales 39,430 - 39,430
Excise taxes (5,479) - (5,479)
Revenues from sales 33,951 - 33,951
Purchases, net of inventory
variation (22,790) 210 (22,580)
Other operating expenses (4,060) - (4,060)
Exploration costs (135) - (135)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (1,310) - (1,310)
----------------------------------------------------------------------
Operating income
Corporate (114) - (114)
Business segments 5,770 210 5,980
----------------------------------------------------------------------
Total operating income 5,656 210 5,866
----------------------------------------------------------------------
Other income 123 - 123
Other expense (34) (30) (64)
Financial interest on debt (455) - (455)
Financial income from marketable
securities and cash equivalents 324 - 324
Cost of net debt (131) - (131)
Other financial income 155 - 155
Other financial expense (70) - (70)
Income taxes (3,131) (54) (3,185)
Equity in income (loss) of
affiliates 516 (7) 509
----------------------------------------------------------------------
Consolidated net income from
continuing operations 3,084 119 3,203
Consolidated net income from
discontinued operations - - -
----------------------------------------------------------------------
Consolidated net income 3,084 119 3,203
Group share 3,004 117 3,121
Minority interests 80 2 82
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CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
---------------------------------
9 months 2006 Adjusted Adjustments Consolidated
(in millions of euros) statement
of income
----------------------------------------------------------------------
Sales 117,369 - 117,369
Excise taxes (14,577) - (14,577)
Revenues from sales 102,792 - 102,792
Purchases, net of inventory
variation (64,546) 75 (64,471)
Other operating expenses (14,776) (147) (14,923)
Unsuccessful exploration costs (420) - (420)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (3,692) (50) (3,742)
----------------------------------------------------------------------
Operating income
Corporate (354) (20) (374)
Business segments 19,712 (102) 19,610
----------------------------------------------------------------------
Total operating income 19,358 (122) 19,236
----------------------------------------------------------------------
Other income 194 195 389
Other expense (202) (202) (404)
Financial interest on debt (1,260) - (1,260)
Financial income from marketable
securities and cash equivalents 992 - 992
Cost of net debt (268) - (268)
Other financial income 451 - 451
Other financial expense (194) - (194)
Income taxes (10,670) (49) (10,719)
Equity in income (loss) of
affiliates 1,464 (115) 1,349
----------------------------------------------------------------------
Consolidated net income from
continuing operations 10,133 (293) 9,840
Consolidated net income from
discontinued operations 14 (19) (5)
----------------------------------------------------------------------
Consolidated net income 10,147 (312) 9,835
Group share 9,848 (305) 9,543
Minority interests 299 (7) 292
---------------------------------
3rd quarter 2006 Adjusted Adjustments Consolidated
(in millions of euros) statement
of income
----------------------------------------------------------------------
Sales 38,357 - 38,357
Excise taxes (4,829) - (4,829)
Revenues from sales 33,528 - 33,528
Purchases, net of inventory
variation (20,961) (681) (21,642)
Other operating expenses (4,920) (81) (5,001)
Unsuccessful exploration costs (159) - (159)
Depreciation, depletion, and
amortization of tangible assets and
leasehold rights (1,249) (50) (1,299)
----------------------------------------------------------------------
Operating income
Corporate (113) (9) (122)
Business segments 6,352 (803) 5,549
----------------------------------------------------------------------
Total operating income 6,239 (812) 5,427
----------------------------------------------------------------------
Other income 55 1 56
Other expense (9) (152) (161)
Financial interest on debt (545) - (545)
Financial income from marketable
securities and cash equivalents 381 - 381
Cost of net debt (164) - (164)
Other financial income 144 - 144
Other financial expense (74) - (74)
Income taxes (3,460) 198 (3,262)
Equity in income (loss) of
affiliates 470 59 529
----------------------------------------------------------------------
Consolidated net income from
continuing operations 3,201 (706) 2,495
Consolidated net income from
discontinued operations (13) - (13)
----------------------------------------------------------------------
Consolidated net income 3,188 (706) 2,482
Group share 3,111 (692) 2,419
Minority interests 77 (14) 63
*T
-0-
*T
CONTACT: TOTAL S.A.
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Sandrine Saboureau
Laurent Kettenmeyer
33 (1) 47 44 58 53
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or
U.S.
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