Total: Second Quarter and First Half 2012 Results

Total: Second Quarter and First Half 2012 Results

Total

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

    2Q12   Change

vs 2Q11

      1H12   Change

vs 1H11

           

Adjusted net income1

 
  • in billion euros (B€)
2.9 +2% 5.9 +1%
  • in billion dollars (B$)
3.7 -9% 7.7 -7%
 
  • in euros per share
1.26 +2% 2.62 -
  • in dollars per share
1.62 -9% 3.40 -7%
 
                     
 

Net Income (Group share) of 1.6 B€2 in 2Q 2012 and 5.2 B€ in 1H12

Net-debt-to-equity ratio of 21.5% at June 30, 2012

Hydrocarbon production of 2,261 kboe/d in 2Q 2012

Interim dividend for 2Q12 increased by 3.5% to 0.59 € per share payable in December 20123

Commenting on the results, Chairman and CEO Christophe de Margerie said :

« Despite a decline in crude prices, the Group reported adjusted net income of 2.9 billion euros in the second quarter, a modest increase compared to the same quarter last year. In contrast, Refining & Chemicals enjoyed an improved environment and was able to capitalize on higher refining margins in Europe.

In Upstream, the Group was impacted by incidents in the UK North Sea, Nigeria, and Yemen. Total responded to these events responsibly and transparently, demonstrating the priority it places on safety and the environment. The second quarter was also marked by successes. The Group started-up production on Islay, Bongkot South, and Halfaya. New offshore exploration licenses acquired in Uruguay, Kenya, and most recently Bulgaria add to Total’s portfolio of high-potential acreage. Finally, by increasing its share of the Ichthys project in Australia, Total strengthened its already prominent role in fast-growing Asian markets and solidified its position among the worldwide leaders in LNG.

Amid a challenging economic environment, it is with confidence that Total faces the second half of 2012, supported by the strength of its balance sheet and the dedication of its teams which allow the Group to develop and execute high-value projects in each segment. »

  • Key figures4
2Q12   1Q12   2Q11   2Q12
vs
2Q11		   in millions of euros
except earnings per share and number of shares 		  1H12   1H11   1H12
vs
1H11
49,135   51,168   45,009   +9%   Sales   100,303   91,038   +10%
5,793   6,779   5,896   -2%   Adjusted operating income from business segments   12,572   12,265   +3%
3,124   3,257   2,901   +8%   Adjusted net operating income from business segments   6,381   6,264   +2%
2,500   2,939   2,457   +2%  

= Upstream

  5,439   5,306   +3%
383   61   180   x2.1   = Refining & Chemicals   444   446   -
241   257   264   -9%   = Supply & Marketing   498   512   -3%
2,858   3,074   2,794   +2%   Adjusted net income   5,932   5,898   +1%
1.26   1.36   1.24   +2%   Adjusted fully-diluted earnings per share (euros)   2.62   2.62   -
2,264   2,265   2,256   -   Fully-diluted weighted-average shares (millions)   2,264   2,252   +1%
1,585   3,662   2,726   -42%   Net income (Group share)   5,247   6,672   -21%
4,964   5,940   7,570   -34%  

Investments1

  10,904   13,253   -18%
980   1,690   1,338   -27%   Divestments   2,670   2,001   +33%
3,984   4,250   6,232   -36%   Net investments   8,234   11,252   -27%
6,167   5,267   5,064   +22%   Cash flow from operations   11,434   10,778   +6%
4,768   5,095   4,675   +2%   Adjusted cash flow from operations   9,863   9,620   +3%
2Q12   1Q12   2Q11   2Q12
vs
2Q11		  

in millions of dollars2
except earnings per share and number of shares

  1H12   1H11   1H12
vs
1H11
62,962   67,071   64,772   -3%   Sales   130,043   127,745   +2%
7,423   8,886   8,485   -13%   Adjusted operating income from business segments   16,300   17,210   -5%
4,003   4,269   4,175   -4%   Adjusted net operating income from business segments   8,273   8,790   -6%
3,204   3,852   3,536   -9%   = Upstream   7,052   7,445   -5%
491   80   259   +89%   = Refining & Chemicals   576   626   -8%
309   337   380   -19%   = Supply & Marketing   646   718   -10%
3,662   4,029   4,021   -9%   Adjusted net income   7,691   8,276   -7%
1.62   1.78   1.78   -9%   Adjusted fully-diluted earnings per share (dollars)   3.40   3.67   -7%
2,264   2,265   2,256   -   Fully-diluted weighted-average shares (millions)   2,264   2,252   +1%
2,031   4,800   3,923   -48%   Net income (Group share)   6,803   9,362   -27%
6,361   7,786   10,894   -42%  

Investments5

  14,137   18,597   -24%
1,256   2,215   1,926   -35%   Divestments   3,462   2,808   +23%
5,105   5,571   8,968   -43%   Net investments   10,675   15,789   -32%
7,902   6,904   7,288   +8%   Cash flow from operations   14,824   15,124   -2%
6,110   6,679   6,728   -9%   Adjusted cash flow from operations   12,787   13,499   -5%
  • Highlights since the beginning of the second quarter 2012
    • Start-up of Bongkot South in Thailand, Islay in the UK and Halfaya in Iraq
    • New gas and condensate discovery on the King Lear prospect in the Norwegian North Sea
    • Launched new development phase of the Yucal Placer gas field in Venezuela and the development of Tempa Rossa in Italy
    • Successful well intervention to stop the gas leak on the Elgin platform in the UK North Sea
    • Increased stake from 24% to 30% in the Ichthys LNG project in Australia
    • Acquired exploration licenses in Uruguay, Kenya and Bulgaria
    • Total became operator of the Xerelete block in Brazil
    • Issued notice of commerciality for the Absheron gas discovery in Azerbaijan
  • Results for the second quarter 2012

> Operating income from business segments

In the second quarter 2012, the Brent price averaged 108.3 $/b, a decrease of 7% compared to the second quarter 2011 and 9% compared to the first quarter 2012. The European refining margin indicator (ERMI) averaged 38.2 $/t, more than double compared to the second quarter 2011 and an increase of 83% compared to the first quarter 2012. In the second quarter 2012, the environment for petrochemicals improved in Europe and the environment for specialty chemicals remained satisfactory.

The euro-dollar exchange rate averaged 1.28 $/€ in the second quarter 2012, 1.44 $/€ in the second quarter 2011 and 1.31 $/€ in the first quarter 2012. Expressed in euros, the Brent price averaged 84.5 €/b, an increase of 4% compared to the second quarter 2011.

In this environment, the adjusted operating income7 from the business segments was

5,793 M€, a decrease of 2% compared to the second quarter 2011. Expressed in dollars, the decrease was 13%.

The effective tax rate8 for the business segments was 55.1% in the second quarter 2012 compared to 59.3% in the second quarter 2011, essentially due to a decrease in the effective tax rate for the Upstream and the increased contribution of the downstream activities to the Group results.

Adjusted net operating income from the business segments was 3,124 M€ compared to 2,901 M€ in the second quarter 2011, an increase of 8%.

Expressed in dollars, adjusted net operating income from the business segments was 4.0 billion dollars (B$), a decrease of 4% compared to the second quarter 2011. This decrease essentially resulted from the decrease in Upstream results, partially offset by the improved performance of Refining & Chemicals.

> Net income (Group share)

Adjusted net income was 2,858 M€ in the second quarter 2012 compared to 2,794 M€ in the second quarter 2011, an increase of 2%. Expressed in dollars, adjusted net income decreased by 9%.

Adjusted net income excludes the after-tax inventory effect, special items and the effect of changes in fair value9:

  • The after-tax inventory effect had a negative impact on net income of 959 M€ in the second quarter 2012 and a negative impact of 74 M€ in the second quarter 2011.
  • Changes in fair value had a positive impact on net income of 9 M€ in the second quarter 2012 compared with a negative impact of 41 M€ in the second quarter 2011.
  • Special items had a negative impact on net income of 323 M€ in the second quarter 2012. As previously indicated in its Registration Document, Total has been cooperating with the United States Securities and Exchange Commission (SEC) and the United States Department of Justice (DOJ) in connection with an investigation concerning gas contracts awarded in Iran in the 1990s. Total, the SEC and the DOJ have conducted discussions to resolve issues arising from the investigation. In light of recent progress in these discussions, Total has provisioned 316 M€ in its accounts in the second quarter of 2012. Special items had a positive impact on net income of 47 M€ in the second quarter 2011.

Net income (Group share) was 1,585 M€ compared to 2,726 M€ in the second quarter 2011.

The effective tax rate for the Group was 56.1% in the second quarter 2012.

Adjusted fully-diluted earnings per share, based on 2,264 million fully-diluted weighted-average shares, increased by 2% to €1.26 compared to €1.24 in the second quarter 2011.

Expressed in dollars, adjusted fully-diluted earnings per share decreased by 9% to $1.62.

> Investments – divestments10

Investments, excluding acquisitions and including changes in non-current loans, were 4.4 B€ (5.6 B$) in the second quarter 2012 compared to 3.5 B€ (5.0 B$) in the second quarter 2011.

Acquisitions were 437 M€ in the second quarter 2012, comprised essentially of the acquisition of an additional 1% of Novatek and the carry in the Utica shale gas and condensates project in the US.

Asset sales in the second quarter 2012 were 834 M€, including mainly the sale of Sanofi shares.

Net investments11 were 4.0 B€ (5.1 B$) in the second quarter 2012 compared to 6.2 B€ (9.0 B$) in the second quarter 2011.

> Cash flow

Cash flow from operations was 6,167 M€ in the second quarter 2012 compared to 5,064 M€ the second quarter 2011, essentially resulting from a change in working capital requirements.

Adjusted cash flow from operations 12 was 4,768 M€, an increase of 2% compared to the second quarter 2011. Expressed in dollars, adjusted cash flow from operations was 6.1 B$, a decrease of 9%.

The Group’s net cash flow13 was a positive 2,183 M€ compared to a negative 1,168 M€ in the second quarter 2011. Expressed in dollars, the Group’s net cash flow was a positive 2.8 B$ in the second quarter 2012 compared to a negative 1.7 B$ in the second quarter 2011, reflecting essentially a reduced level of acquisitions.

  • First half 2012 results

> Operating income from business segments

Compared to the first half 2011, the average Brent price increased by 2% to 113.6 $/b. The European refining margin indicator (ERMI) averaged 29.5 $/t compared to 20.4 $/t in the first half 2011.

The euro-dollar exchange rate averaged 1.30 $/€ compared to 1.40 $/€ in the first half 2011. Expressed in euros, the Brent price averaged 87.6 €/b, an increase of 11% compared to the first half 2011.

In this environment, the adjusted operating income from the business segments was 12,572 M€, an increase of 3% compared to the first half 201114.

The effective tax rate for the business segments was 57.8% in the first half 2012 compared to 56.9% in the first half 2011.

Adjusted net operating income from the business segments was 6,381 M€ compared to 6,264 M€ in the first half 2011, an increase of 2%.

Expressed in dollars, adjusted net operating income from the business segments decreased by 6%. This decrease essentially resulted from the decrease in Upstream results driven by a less favorable production mix.

> Net income (Group share)

Adjusted net income was 5,932 M€ in the first half 2012, an increase of 1% compared to 5,898 M€ in the first half 2011. Expressed in dollars, adjusted net income decreased by 7%.

Adjusted net income excludes the after-tax inventory effect, special items and the effect of changes in fair value15:

  • The after-tax inventory effect had a negative impact on net income of 369 M€ in the first half 2012 and a positive impact of 872 M€ in the first half 2011.
  • Changes in fair value had a negative impact on net income of 11 M€ in the first half 2012 and a positive impact of 22 M€ in the first half 2011.
  • Special items had a negative impact on net income of 305 M€ in the first half 2012 and a negative impact on net income of 120 M€ in the first half 2011.

Net income (Group share) was 5,247 M€ compared to 6,672 M€ in the first half 2011.

On June 30, 2012, there were 2,264 million fully-diluted shares compared to 2,258 on June 30, 2011.

Adjusted fully-diluted earnings per share, based on 2,264 million fully-diluted weighted-average shares, was €2.62, stable compared to the first half 2011.

Expressed in dollars, adjusted fully-diluted earnings per share was $3.40 compared to $3.67 in the first half 2011, a decrease of 7%.

> Investments – divestments16

Investments, excluding acquisitions and including changes in non-current loans, were 8.3 B€ (10.7 B$) in the first half 2012 compared to 6.3 B€ (8.8 B$) in the first half 2011.

Acquisitions were 2.3 B€ (2.9 B$) in the first half 2012, comprised essentially of the acquisition of exploration and production interests in Uganda, an additional 1.1% stake in Novatek, an exploration license in Angola, the minority interest in Fina Antwerp Olefins and the carry in the Utica shale gas and condensates project in the US.

Asset sales in the first half 2012 were 2.3 B€ (3.0 B$), comprised essentially of sales of Sanofi shares, a stake in the Gassled pipeline in Norway, Upstream assets in France, and stakes in Composites One in the US and Pec-Rhin in France.

Net investments were 8.2 B€ (10.7 B$) in the first half 2012, compared to 11.3 B€ (15.8 B$) in the first half 2011.

> Cash flow

Cash flow from operations was 11,434 M€ in the first half 2012, an increase of 6% compared to the first half 2011, essentially resulting from a change in working capital requirements.

Adjusted cash flow from operations17 was 9,863 M€, an increase of 3%. Expressed in dollars, adjusted cash flow from operations was 12.8 B$, a decrease of 5%.

The Group’s net cash flow18 was a positive 3,200 M€ compared to a negative 474 M€ in the first half 2011. Expressed in dollars, the Group’s net cash flow was a positive 4.1 B$ in the first half 2012.

The net-debt-to-equity ratio was 21.5% on June 30, 2012, compared to 24.3% on June 30, 201119, in line with the Group’s target range.

  • Analysis of business segment results

Upstream

> Environment – liquids and gas price realizations*

2Q12   1Q12   2Q11   2Q12
vs
2Q11		       1H12   1H11   1H12
vs
1H11
108.3   118.6   117.0   -7%   Brent ($/b)   113.6   111.1   +2%
101.6   115.2   110.6   -8%   Average liquids price ($/b)   108.3   104.6   +4%
7.10   7.16   6.60   +8%   Average gas price ($/Mbtu)   7.10   6.39   +11%
76.0   82.1   76.9   -1%   Average hydrocarbons price ($/boe)   79.0   74.1   +7%

* consolidated subsidiaries, excluding fixed margins. Effective first quarter 2012, over/under-lifting valued at market prices.

> Production

2Q12   1Q12   2Q11   2Q12
vs
2Q11		   Hydrocarbon production   1H12   1H11   1H12
vs
1H11
2,261   2,372   2,311   -2%   Combined production (kboe/d)   2,317   2,341   -1%
1,218   1,229   1,197   +2%   = Liquids (kb/d)   1,224   1,245   -2%
5,722   6,226   6,077   -6%   = Gas (Mcf/d)   5,974   5,979   -

Hydrocarbon production was 2,261 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2012, a decrease of 2% compared to the second quarter 2011, essentially as a result of:

  • +4.5% for growth from new projects,
  • -1% for normal decline, partially offset by lower scheduled maintenance,
  • -3.5% for incidents in the UK North Sea and Nigeria,
  • -2% for disruptions related to security conditions in Yemen and the production shut-down in Syria, net of the positive effect of the return of production in Libya,
  • changes in the portfolio, essentially an increase in the stake in Novatek and the sale of CEPSA, had no impact on the quarter.

In the first half 2012, hydrocarbon production was 2,317 kboe/d, a decrease of 1% compared to the first half 2011, essentially as a result of:

  • +3.5% for growth from new projects,
  • +2.5% for changes in the portfolio, comprised of integrating the share of Novatek production partially offset by the impact of the sale of CEPSA and the exploration-production subsidiary in Cameroon,
  • -3% for normal decline, partially offset by lower scheduled maintenance,
  • -2% for incidents in the UK North Sea and Nigeria,
  • -2% for disruptions related to security conditions in Yemen and the production shut-down in Syria, net of the positive effect of the return of production in Libya.

Results

2Q12   1Q12   2Q11   2Q12
vs
2Q11		   In millions of euros   1H12   1H11   1H12
vs
1H11
4,998   6,457   5,390   -7%   Adjusted operating income*   11,455   11,211   +2%
2,500   2,939   2,457   +2%   Adjusted net operating income*   5,439   5,306   +3%
414   484   366   +13%  
  • includes income from equity affiliates
  898   740   +21%
4,278   5,368   6,868   -38%   Investments   9,646   12,100   -20%
234   759   921   -75%   Divestments   993   1,256   -21%
5,259   5,624   4,782**   +10%   Cash flow from operating activities   10,883   9,425**   +15%
3,995   4,668   4,010   -   Adjusted cash flow   8,663   8,281   +5%

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

**reclassification of 823 M€ between Upstream and Holding segments relating to intra-Group operations having no impact on cash flow from operating activities.

Adjusted net operating income from the Upstream segment was 2,500 M€ in the second quarter 2012 compared to 2,457 M€ in the second quarter 2011, an increase of 2%. Expressed in dollars, the decrease of 9% is explained principally by the decrease in certain downstream gas activities and a less favorable production mix. In particular, the Group estimates that the loss of production relating to Elgin represents a negative impact of 130 M$ on the net operating income of the Upstream segment in the second quarter 2012.

The effective tax rate for the Upstream segment was 58.4% compared to 61.6% in the second quarter 2011, essentially due to income contribution mix. The effective tax rate for the Upstream segment was 62.1% in the first quarter 2012.

Adjusted net operating income from the Upstream segment in the first half 2012 was 5,439 M€ compared to 5,306 M€ in the first half 2011, an increase of 3%. Expressed in dollars, adjusted net operating income from the Upstream segment was 7,052 M$, a decrease of 5% compared to the first half 2011, explained principally by the decrease in certain downstream gas activities and a less favorable production mix.

The return on average capital employed (ROACE20) for the Upstream segment was 20% for the twelve months ended June 30, 2012, stable compared to the ROACE calculated for the twelve months ended March 31, 2012, and for the full year 2011.

The annualized second quarter 2012 ROACE for the Upstream segment was 17%.

Refining & Chemicals

> Refinery throughput and utilization rates*

2Q12   1Q12   2Q11   2Q12
vs
2Q11		       1H12   1H11   1H12
vs
1H11
1,878   1,830   1,855   +1%   Total refinery throughput (kb/d)   1,855   1,934   -4%
752   692   692   +9%   = France   722   719   -
876 879 877 - = Rest of Europe 878 962 -9%
250   259   286   -13%   = Rest of world   255   253   +1%
Utilization rates**
86% 82% 75% = Based on crude only 84% 77%
90%   88%   79%       = Based on crude and other feedstock   89%   82%    

* includes share of CEPSA through July 31, 2011 and of TotalErg. Results for refineries in South Africa, French Antilles and Italy are reported in the Supply & Marketing segment.

** based on distillation capacity at the beginning of the year

In the second quarter 2012, refinery throughput increased by 1% compared to the second quarter 2011 and by 3% compared to the first quarter 2012. In the second quarter 2012, throughput was impacted mainly by scheduled turnarounds at the Provence and Feyzin refineries, and a streamcracker at the Antwerp platform.

The utilization rate based on crude and other feedstock was 90% in the second quarter 2012 compared to 88% in the first quarter 2012 and 79% in the second quarter 2011.

In the first half 2012, despite improved utilization rates, refinery throughput decreased by 4% compared to the first half 2011, reflecting essentially scheduled turnarounds in the first half 2012 and the portfolio effect relating to the sale of the Group’s interest in CEPSA at the end of July 2011.

> Results

2Q12   1Q12   2Q11   2Q12
vs
2Q11		   in millions of euros
(except the ERMI)		   1H12   1H11   1H12 vs 1H11  
38.2   20.9   16.3   X2.3   European refining margin

indicator - ERMI ($/t)

  29.5   20.4   +45%  
465   (47)   145   X3.2   Adjusted operating income*   418   434   -4%  
383   61   180   X2.1   Adjusted net operating income*   444   446   -  
100   91   98   +2%  
  • contribution of specialty chemicals**
  191   203   -6%  
501   429   519   -3%   Investments   930   863   +8%  
7   141   13   -46%   Divestments   148   29   X5.1  
625   (36)   180   X3.5   Cash flow from operating activities   589   1,238   -52%  
599   128   336   +78%   Adjusted cash flow   727   779   -7%  

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

** Hutchinson, Bostik, Atotech ; including coatings and photocure resins until they were sold in July 2011.

The European refining margin indicator (ERMI) averaged 38.2 $/t in the second quarter 2012, more than double the average of the second quarter 2011. Petrochemical margins also recovered in the second quarter as a result of the decline in crude prices and reduced supply due to the number of scheduled turnarounds.

Adjusted net operating income from the Refining & Chemicals segment was 383 M€ in the second quarter 2012, compared to 180 M€ in the second quarter 2011. This increase is explained essentially by a more favorable environment and the improvement in utilization rates.

Adjusted net operating income from the Refining & Chemicals segment in the first half 2012 was 444 M€, stable compared to the first half 2011. Expressed in dollars, adjusted net operating income was 576 M$, a decrease of 8% compared to the first half 2011. Although refining margins in Europe improved in the second quarter 2012, the results were also impacted by the sale of the Group’s interest in CEPSA at the end of July 2011 and a very difficult environment for petrochemicals in Europe in the first quarter 2012.

The ROACE21 for the Refining & Chemicals segment was 5% for the twelve months ended June 30, 2012, compared to 4% for the twelve months ended March 31, 2012, and 5% for the full year 2011.

The annualized second quarter 2012 ROACE for the Refining & Chemicals segment was 9%.

Supply & Marketing

> Refined product sales

2Q12   1Q12   2Q11   2Q12
vs
2Q11		  

Sales in kb/d*

  1H12   1H11   1H12 vs 1H11
1,166   1,211   1,491   -22%   Europe   1,189   1,561   -24%
524   529   534   -2%   Rest of world   526   525   -
1,690   1,740   2,025   -17%   Total Supply & Marketing sales   1,715   2,085   -18%

* Excludes trading and bulk Refining sales, includes share of TotalErg and, through July 31, 2011, CEPSA

In the second quarter 2012, sales decreased by 17% compared to the second quarter 2011. This decrease is due to the sale of marketing activities in the UK, the sale of the Group’s interest in CEPSA in 2011, and the negative effect of mild weather conditions on European sales.

> Results

2Q12   1Q12   2Q11   2Q12
vs
2Q11		   In millions of euros   1H12   1H11   1H12
vs
1H11
21,020   21,411   20,753   +1%   Sales   42,431   41,242   +3%
330   369   361   -9%   Adjusted operating income*   699   620   +13%
241   257   264   -9%   Adjusted net operating income*   498   512   -3%
161   136   152   +6%   Investments   297   243   +22%
20   34   27   -26%   Divestments   54   48   +13%
(101)   (302)   (35)   n/a   Cash flow from operating activities   (403)   (79)   n/a
366   315   399   -8%   Adjusted cash flow   681   605   +13%

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

Supply & Marketing sales were 21.0 B€, an increase of 1% compared to the second quarter 2011.

Adjusted net operating income from the Supply & Marketing segment was 241 M€ in the second quarter 2012, a decrease of 9% compared to the second quarter 2011, essentially due to the sale of marketing activities in the UK.

Adjusted net operating income from the Supply & Marketing segment was 498 M€ in the first half 2012, a decrease of 3% compared to the first half 2011. Expressed in dollars, the adjusted net operating income was 646 M$, a decrease of 10% compared to the first half 2011.

The ROACE22 for the Supply & Marketing segment was 16% for the twelve months ended June 30, 2012, compared to 17% for the twelve months ended March 31, 2012, and 18% for the full-year 2011.

The annualized second quarter 2012 ROACE for the Supply & Marketing segment was 15%.

  • TOTAL S.A. parent company accounts

Net income for TOTAL S.A., the parent company, was 3,116 M€ in the first half 2012, compared to 3,157 M€ in the first half 2011.

  • Summary and outlook

The ROACE23 for the Group for the twelve months ended June 30, 2012, was 15% compared to 16% for the twelve months ended March 31, 2012, and for the full year 2011.

Return on equity for the twelve months ended June 30, 2012, was 17.5%.

In the Upstream segment, exploration activities for the second half 2012 will be focused on assessing recent discoveries and preparing for new exploration wells in several promising plays, notably in the Gulf of Mexico, Ivory Coast, or the Norwegian North Sea. The upcoming start-ups in Angola, China, and Kazakhstan will add to the projects already in production.

After successfully addressing the incident on the Elgin platform, the Group entered a phase of evaluation and assessment which precedes resumption of production, and its status will be followed closely. Safety and protection of the environment remain priorities during this process.

Since the beginning of the third quarter, refining margins in Europe have been favorable. Refinery throughput during the second half 2012 will be impacted by the scheduled turnaround of the Normandy refinery starting in early September.

The Group will continue to optimize its portfolio across all business segments and to strengthen its competitiveness.

To listen to CFO Patrick de la Chevardière’s conference call with financial analysts today at 15:00 (Paris time) please log on to www.total.com or call +44 (0)203 367 9459 in Europe or +1 866 907 5924 in the U.S. For a replay, please consult the website or call +44(0)203 367 9460 in Europe or +1 877 642 3018 in the US (code: 277 551).

This document does not constitute the Financial Report for the first half which will be separately published, in accordance with article L.451-1-2 III of the French Code monétaire et financier, and is available on our web site www.total.com or upon request at the company’s headquarters.

The June 30, 2012 notes to the consolidated financial statements are available on the Total web site (www.total.com).This document may contain forward-looking statements, including within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business, strategy and plans of TOTAL.

Such 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. Neither TOTAL nor any of its subsidiaries assumes 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 with the French Autorité des Marchés Financiers and the U.S. Securities and Exchange Commission (“SEC”).

Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL.

Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.

Adjustment items include:

(i) Special items

Due to their unusual nature or particular significance, certain transactions qualified as "special items" are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.

(ii) Inventory valuation effect

The adjusted results of the Downstream and Chemicals segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.

In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.

(iii) Effect of changes in fair value

As from January 1, 2011, the effect of changes in fair value presented as an adjustment item reflects for some transactions differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS.

IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.

Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.

The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value.

Dollar amounts presented herein represent euro amounts converted at the average euro-dollar exchange rate for the applicable period and are not the result of financial statements prepared in dollars.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this presentation, such as resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File N° 1-10888, available from us at 2, place Jean Millier – La Défense 6 – 92078 Paris – La Défense Cedex, France, or at our Web site: www.total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s Web site: www.sec.gov.

Operating information by segment

for second quarter and first half 2012

  • Upstream
2Q12   1Q12   2Q11   2Q12 vs 2Q11   Combined liquids and gas production by region (kboe/d)   1H12   1H11   1H12 vs 1H11
429   499   475   -10%   Europe   464   528   -12%
706 709 628 +12% Africa 707 659 +7%
477 511 571 -16% Middle East 494 576 -14%
69 68 66 +5% North America 69 67 +3%
187 182 190 -2% South America 185 188 -2%
213 214 241 -12% Asia-Pacific 213 241 -12%
180   189   140   +29%   CIS   185   82   X2,3
2,261   2,372   2,311   -2%   Total production   2,317   2,341   -1%
578   628   605   -4%   Includes equity affiliates and

non-consolidated affiliates

  603   552   +9%
2Q12   1Q12   2Q11   2Q12 vs 2Q11   Liquids production by region (kb/d)   1H12   1H11   1H12 vs 1H11
199   226   240   -17%   Europe   212   251   -16%
573 566 484 +18% Africa 570 517 +10%
310 300 321 -3% Middle East 305 323 -6%
25 24 26 -4% North America 25 29 -14%
60 63 73 -18% South America 61 78 -22%
25 24 28 -11% Asia-Pacific 25 28 -11%
26   26   25   +4%   CIS   26   19   +37%
1,218   1,229   1,197   +2%   Total production   1,224   1,245   -2%
311   299   331   -6%   Includes equity affiliates and

non-consolidated affiliates

  305   328   -7%
2Q12   1Q12   2Q11   2Q12 vs 2Q11   Gas production by region (Mcf/d)   1H12   1H11   1H12 vs 1H11
1,264   1,492   1,284   -2%   Europe   1,378   1,512   -9%
674 730 734 -8% Africa 702 726 -3%
916 1,143 1,355 -32% Middle East 1,029 1,372 -25%
253 247 226 +12% North America 249 215 +16%
759 663 650 +17% South America 711 611 +16%
1,019 1,073 1,209 -16% Asia-Pacific 1,046 1,206 -13%
837   878   619   +35%   CIS   859   337   X2,5
5,722   6,226   6,077   -6%   Total production   5,974   5,979   -
1,445   1,773   1,478   -2%   Includes equity affiliates and

non-consolidated affiliates

  1,609   1,214   +33%
2Q12   1Q12   2Q11   2Q12 vs 2Q11   Liquefied natural gas   1H12   1H11   1H12 vs 1H11
2.35   3.24   3.33   -29%   LNG sales* (Mt)   5.58   6.69   -17%

* Sales, Group share, excluding trading; 2011 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2011 SEC coefficient

  • Downstream (Refining & Chemicals and Supply & Marketing)
2Q12 1Q12 2Q11 2Q12vs 2Q11 Refined product sales by region (kb/d)* 1H12 1H11 1H12vs 1H11
2,060 2,066 2,292 -10% Europe 2,064 2,387 -14%
401 392 397 +1% Africa 397 383 +4%
509 441 603 -16% Americas 475 521 -9%
508 568 487 +4% Rest of world 538 484 +11%
3,478 3,467 3,779 -8% Total consolidated sales 3,473 3,774 -8%
542 501 413 +31% Includes bulk sales 522 425 +23%
1,246 1,226 1,343 -7% Includes trading 1,236 1,264 -2%

* Includes share of CEPSA through July 31, 2011, and of TotalErg

Adjustment items

  • Adjustments to operating income
2Q12   1Q12   2Q11   In millions of euros   1H12   1H11
(89)   (65)   (63)   Special items affecting operating income   (154)   (63)
(48)   -   -   = Restructuring charges   (48)   -
- - - = Impairments - -
(41)   (65)   (63)   = Other   (106)   (63)
(1,384)   846   (87)   Pre-tax inventory effect : FIFO vs. replacement cost   (538)   1 269
11   (25)   (55)   Effect of changes in fair value   (14)   29
                     
(1,462)   756   (205)   Total adjustments affecting operating income   (706)   1 235
  • Adjustments to net income (Group share)
2Q12   1Q12   2Q11   In millions of euros   1H12   1H11
(323)   18   47   Special items affecting operating income (Group share)   (305)   (120)
73   80   205   = Gain on asset sales   153   216
(40)   -   -   = Restructuring charges   (40)   -
(18) (20) (47) = Impairments (38) (47)
(338)   (42)   (111)   = Other   (380)   (289)
(959)   590   (74)   After-tax inventory effect : FIFO vs. replacement cost   (369)   872
9   (20)   (41)   Effect of changes in fair value   (11)   22
                     
(1,273)   588   (68)   Total adjustments affecting net income   (685)   774

Effective tax rates

2Q12   1Q12   2Q11   Effective tax rate*   1H12   1H11
58.4%   62.1%   61.6%   Upstream   60.5%   59.5%
56.1%   60.6%   59.4%   Group   58.6%   57.5%

* 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).

Investments - Divestments

2Q12   1Q12   2Q11   2Q12 vs 2Q11   In millions of euros   1H12   1H11   1H12 vs 1H11
4,381   3,873   3,467   +26%   Investments excluding acquisitions*   8,254   6,254   +32%
319 350 242 +32%
  • Capitalized exploration
669 459 +46%
231   159   210   +10%  
  • Change in non-recurrent loans**
  390   2   n/a
437   1,832   4,008   -89%   Acquisitions   2,270   6,537   -65%
4,818   5,705   7,475   -36%   Investments including acquisitions*   10,523   12,791   -18%
834   1,455   1,243   -33%   Asset sales   2,289   1,539   +49%
3,984   4,250   6,232   -36%   Net investments**   8,234   11,252   -27%
2Q12   1Q12   2Q11   2Q12 vs 2Q11   In millions of dollars***   1H12   1H11   1H12 vs 1H11
5,614   5,077   4,989   +13%   Investments excluding acquisitions*   10,701   8 776   +22%
409 459 348 +17%
  • Capitalized exploration
867 644 +35%
296   208   302   -2%  
  • Change in non-recurrent loans**
  506   3   n/a
560   2,401   5,768   -90%   Acquisitions   2,943   9,173   -68%
6,174   7,478   10,757   -43%   Investments including acquisitions*   13,643   17,948   -24%
1,069   1,907   1,789   -40%   Asset sales   2,968   2,160   +37%
5,105   5,571   8,968   -43%   Net investments**   10,675   15,789   -32%

* Includes changes in non-current loans.

** Includes net investments in equity affiliates and non-consolidated companies + net financing for employee-related stock purchase plans.

*** Dollar amounts represent euro amounts converted at the average €-$ exchange rate for the period.

Net-debt-to-equity ratio

In millions of euros   6/30/2012   3/31/2012   6/30/2011
Current borrowings   10,642   9,574   12,289
Net current financial assets (1,552) (1,322) (2,737)
Non-current financial debt 23,260 22,428 20,410
Hedging instruments of non-current debt (1,886) (1,882) (1,756)
Cash and cash equivalents   (14,998)   (13,330)   (13,387)
Net debt   15,466   15,468   14,819
             
Shareholders’ equity 72,103 70,945 61,371
Estimated dividend payable (1,299) (2,573) (1,248)
Non-controlling interests   1,256   1,275   934
Equity   72,060   69,647   61,057
             
Net-debt-to-equity ratio   21.5%   22.2%   24.3%

2012 Sensitivities*

    Scenario   Change   Impact on adjusted operating income(e)   Impact on adjusted net operating income(e)
Dollar   1.40 $/€   +0.1 $ per €   -1.8 B€   -0.95 B€
Brent   100 $/b   +1 $/b   +0.25 B€ / 0.35 B$   +0.11 B€ / 0.15 B$
European refining margins (ERMI)   25 $/t   +1 $/t   +0.06 B€ / 0.08 B$   +0.04 B€ / 0.05 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. The impact of the €-$ sensitivity on adjusted operating income and adjusted net operating income attributable to the Upstream segment are approximately 80% and 75% respectively.

Return on average capital employed

  • Twelve months ended June 30, 2012
in millions of euros   Upstream   Refining & Chemicals   Supply &

Marketing

      Group
Adjusted net operating income   10,538   846   996 12,073
Capital employed at 6/30/2011* 46,671 16,672 6,187 72,843
Capital employed at 6/30/2012*   60,879   16,558   6,579 85,167
ROACE   19.6%   5.1%   15.6% 15.3%
  • Twelve months ended March 31, 2012
in millions of euros   Upstream   Refining & Chemicals   Supply &

Marketing

      Group
Adjusted net operating income   10,495   643   1,019 11,975
Capital employed at 3/31/2011* 44,528 16,369 5,839 70,579
Capital employed at 3/31/2012*   59,383   16,222   6,031 83,093
ROACE   20.2%   3.9%   17.2% 15.6%
  • Full-year 2011
in millions of euros   Upstream   Refining & Chemicals   Supply &

Marketing

      Group
Adjusted net operating income   10,405   848   1,010 12,045
Capital employed at 12/31/2010* 43,972 17,265 5,608 70,866
Capital employed at 12/31/2011*   58,939   15,883   5,391 81,066
ROACE   20.2%   5.1%   18.4% 15.9%

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

1 Adjusted results defined on page 2 - dollar amounts represent euro amounts converted at the average €-$ exchange rate for the period: 1.2814 $/€ for the second quarter 2012, 1.4391 $/€ for the second quarter 2011, 1.3108 $/€ for the first quarter 2012, 1.2965 $/€ for the first half 2012 and 1.4032 $/€ for the first half 2011.

2 Includes negative impact of after-tax inventory effect of 959 M€ in the second quarter 2012. Details of adjustments on pages 4 and 17.

3 The ex-dividend date for the interim dividend will be December 17, 2012 and the payment date will be December 20, 2012.

4 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. Adjusted cash flow from operations is defined as cash flow from operations before changes in working capital at replacement cost; adjustment items are on page 17 and the inventory valuation effect is explained on page 14.

5 Including acquisitions.

6 Dollar amounts represent euro amounts converted at the average €-$ exchange rate for the period.

7 Special items affecting operating income from the business segments had a negative impact of 66 M€ in the second quarter 2012 and a negative impact of 63 M€ in the second quarter 2011.

8 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).

9 Adjustment items explained on page 14.

10 Detail shown on page 18.

11 Net investments = investments including acquisitions and changes in non-current loans – asset sales.

12 Cash flow from operations at replacement cost before changes in working capital.

13 Net cash flow = cash flow from operations - net investments.

14 Special items affecting operating income from the business segments had a negative impact of 66 M€ in the first half 2012 and a negative impact of 63 M€ in the first half 2011.

15 Adjustment items explained on page 14.

16 Detail shown on page 18.

17 Cash flow from operations at replacement cost before changes in working capital.

18 Net cash flow = cash flow from operations - net investments.

19 Detail shown on page 19.

20 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

21 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

22 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

23 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 20.

CONSOLIDATED STATEMENT OF INCOME      
TOTAL
(unaudited)
 
(M€) (a)   2nd quarter

2012

  1st quarter

2012

  2nd quarter

2011

Sales 49,135 51,168 45,009
Excise taxes (4,559) (4,393) (4,544)
Revenues from sales 44,576 46,775 40,465
Purchases, net of inventory variation (32,294) (32,041) (28,386)
Other operating expenses (5,827) (5,092) (4,804)
Exploration costs (269) (356) (179)
Depreciation, depletion and amortization of tangible assets and mineral interests (2,028) (1,838) (1,531)
Other income 225 289 246
Other expense (451) (96) (138)
Financial interest on debt (170) (187) (159)
Financial income from marketable securities & cash equivalents 24 35 55
Cost of net debt (146) (152) (104)
Other financial income 209 85 335
Other financial expense (118) (136) (104)
Equity in net income (loss) of affiliates 436 541 444
Income taxes   (2,701)   (4,305)   (3,432)
Consolidated net income   1,612   3,674   2,812
Group share   1,585   3,662   2,726
Non-controlling interests   27   12   86
Earnings per share (€)   0.70   1.62   1.21
Fully-diluted earnings per share (€)   0.70   1.62   1.21
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME    
TOTAL  
(unaudited)
 
(M€)   2nd quarter

2012

  1st quarter

2012

  2nd quarter

2011

Consolidated net income   1,612   3,674   2,812
Other comprehensive income
Currency translation adjustment 2,360 (1,054) (666)
Available for sale financial assets (93) (66) 315
Cash flow hedge (67) 70 (11)
Share of other comprehensive income of associates, net amount (57) 162 (16)
Other (7) (6) (4)
 
Tax effect   46   (11)   (35)
Total other comprehensive income (net amount)   2,182   (905)   (417)
             
Comprehensive income   3,794   2,769   2,395
- Group share 3,718 2,783 2,326
- Non-controlling interests 76 (14) 69
CONSOLIDATED STATEMENT OF INCOME    
TOTAL
(unaudited)
 
(M€) (a)   1st half

2012

  1st half

2011

Sales 100,303 91,038
Excise taxes (8,952) (8,971)
Revenues from sales 91,351 82,067
Purchases, net of inventory variation (64,335) (55,641)
Other operating expenses (10,919) (9,506)
Exploration costs (625) (438)
Depreciation, depletion and amortization of tangible assets and mineral interests (3,866) (3,217)
Other income 514 331
Other expense (547) (197)
Financial interest on debt (357) (295)
Financial income from marketable securities & cash equivalents 59 102
Cost of net debt (298) (193)
Other financial income 294 410
Other financial expense (254) (212)
Equity in net income (loss) of affiliates 977 950
Income taxes   (7,006)   (7,504)
Consolidated net income   5,286   6,850
Group share   5,247   6,672
Non-controlling interests   39   178
Earnings per share (€)   2.33   2.98
Fully-diluted earnings per share (€)   2.32   2.96
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  
TOTAL  
(unaudited)
 
(M€)   1st half

2012

  1st half

2011

Consolidated net income   5,286   6,850
Other comprehensive income
Currency translation adjustment 1,306 (2,644)
Available for sale financial assets (159) 430
Cash flow hedge 3 (35)
Share of other comprehensive income of associates, net amount 105 (103)
Other (13) (2)
 
Tax effect   35   (29)
Total other comprehensive income (net amount)   1,277   (2,383)
         
Comprehensive income   6,563   4,467
- Group share 6,501 4,356
- Non-controlling interests 62 111
CONSOLIDATED BALANCE SHEET        
TOTAL
 
 
(M€)   June 30, 2012

(unaudited)

  March 31, 2012

(unaudited)

  December 31, 2011   June 30, 2011

(unaudited)

ASSETS
Non-current assets
Intangible assets, net 13,847 13,231 12,413 8,961
Property, plant and equipment, net 69,868 65,082 64,457 55,323
Equity affiliates : investments and loans 13,911 13,194 12,995 11,054
Other investments 2,222 2,958 3,674 5,287
Hedging instruments of non-current financial debt 1,886 1,882 1,976 1,756
Other non-current assets   4,850   4,494   4,871   3,727
Total non-current assets   106,584   100,841   100,386   86,108
Current assets
Inventories, net 17,111 18,886 18,122 15,950
Accounts receivable, net 19,768 22,811 20,049 18,267
Other current assets 10,435 10,346 10,767 8,474
Current financial assets 1,723 1,471 700 3,122
Cash and cash equivalents   14,998   13,330   14,025   13,387
Total current assets   64,035   66,844   63,663   59,200
Assets classified as held for sale   -   -   -   5,211
Total assets 170,619 167,685 164,049 150,519
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 5,911 5,911 5,909 5,903
Paid-in surplus and retained earnings 69,181 70,281 66,506 64,148
Currency translation adjustment 401 (1,857) (988) (5,177)
Treasury shares   (3,390)   (3,390)   (3,390)   (3,503)
Total shareholders' equity - Group Share   72,103   70,945   68,037   61,371
Non-controlling interests   1,256   1,275   1,352   934
Total shareholders' equity   73,359   72,220   69,389   62,305
Non-current liabilities
Deferred income taxes 12,380 12,179 12,260 9,619
Employee benefits 2,005 2,215 2,232 2,111
Provisions and other non-current liabilities 11,264 10,579 10,909 8,419
Non-current financial debt   23,260   22,428   22,557   20,410
Total non-current liabilities   48,909   47,401   47,958   40,559
Current liabilities
Accounts payable 20,448 22,647 22,086 18,395
Other creditors and accrued liabilities 17,090 15,694 14,774 16,191
Current borrowings 10,642 9,574 9,675 12,289
Other current financial liabilities   171   149   167   385
Total current liabilities   48,351   48,064   46,702   47,260
Liabilities directly associated with the assets classified as held for sale   -   -   -   395
Total liabilities and shareholders' equity 170,619 167,685 164,049 150,519
CONSOLIDATED STATEMENT OF CASH FLOW      
TOTAL
(unaudited)
 
(M€)   2nd quarter

2012

  1st quarter

2012

  2nd quarter

2011

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 1,612 3,674 2,812
Depreciation, depletion and amortization 2,164 2,103 1,641
Non-current liabilities, valuation allowances and deferred taxes (99) 364 283
Impact of coverage of pension benefit plans (362) - -
(Gains) losses on sales of assets (165) (281) (229)
Undistributed affiliates' equity earnings 193 34 59
(Increase) decrease in working capital 2,783 (674) 476
Other changes, net   41   47   22
Cash flow from operating activities 6,167 5,267 5,064
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (4,128) (5,227) (3,215)
Acquisitions of subsidiaries, net of cash acquired (4) (121) (979)
Investments in equity affiliates and other securities (455) (198) (3,071)
Increase in non-current loans   (377)   (394)   (305)
Total expenditures (4,964) (5,940) (7,570)
Proceeds from disposal of intangible assets and property, plant and equipment 95 567 620
Proceeds from disposal of subsidiaries, net of cash sold - 34 171
Proceeds from disposal of non-current investments 739 854 452
Repayment of non-current loans   146   235   95
Total divestments   980   1,690   1,338
Cash flow used in investing activities (3,984) (4,250) (6,232)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders - 31 354
- Treasury shares - - -
Dividends paid:
- Parent company shareholders (1,284) (1,286) (2,572)
- Non-controlling interests (96) (2) (61)
Other transactions with non-controlling interests 1 - 59
Net issuance (repayment) of non-current debt 1,409 1,664 678
Increase (decrease) in current borrowings (693) (1,101) (200)
Increase (decrease) in current financial assets and liabilities (10) (929) (1,123)
Cash flow used in financing activities   (673)   (1,623)   (2,865)
Net increase (decrease) in cash and cash equivalents 1,510 (606) (4,033)
Effect of exchange rates 158 (89) 93
Cash and cash equivalents at the beginning of the period   13,330   14,025   17,327
Cash and cash equivalents at the end of the period   14,998   13,330   13,387
CONSOLIDATED STATEMENT OF CASH FLOW    
TOTAL
(unaudited)
 
(M€)   1st half

2012

  1st half

2011

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 5,286 6,850
Depreciation, depletion and amortization 4,267 3,529
Non-current liabilities, valuation allowances and deferred taxes 265 848
Impact of coverage of pension benefit plans (362) -
(Gains) losses on sales of assets (446) (235)
Undistributed affiliates' equity earnings 227 (123)
(Increase) decrease in working capital 2,109 (111)
Other changes, net   88   20
Cash flow from operating activities 11,434 10,778
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (9,355) (8,589)
Acquisitions of subsidiaries, net of cash acquired (125) (979)
Investments in equity affiliates and other securities (653) (3,221)
Increase in non-current loans (771) (464)
Total expenditures (10,904) (13,253)
Proceeds from disposal of intangible assets and property, plant and equipment 662 626
Proceeds from disposal of subsidiaries, net of cash sold 34 171
Proceeds from disposal of non-current investments 1,593 742
Repayment of non-current loans   381   462
Total divestments   2,670   2,001
Cash flow used in investing activities (8,234) (11,252)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 31 404
- Treasury shares - -
Dividends paid:
- Parent company shareholders (2,570) (2,572)
- Non controlling interests (98) (62)
Other transactions with non-controlling interests 1 59
Net issuance (repayment) of non-current debt 3,073 2,906
Increase (decrease) in current borrowings (1,794) 288
Increase (decrease) in current financial assets and liabilities (939) (1,634)
Cash flow used in financing activities   (2,296)   (611)
Net increase (decrease) in cash and cash equivalents 904 (1,085)
Effect of exchange rates 69 (17)
Cash and cash equivalents at the beginning of the period   14,025   14,489
Cash and cash equivalents at the end of the period   14,998   13,387
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY        
TOTAL          
(unaudited)                                    
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity Group Share Non-controlling interests Total shareholders' equity
(M€)   Number   Amount           Number   Amount            
As of January 1, 2011   2,349,640,931   5,874   60,538   (2,495)   (112,487,679)   (3,503)   60,414   857   61,271
Net income of the first half - - 6,672 - - - 6,672 178 6,850
Other comprehensive Income - - 368 (2,684) - - (2,316) (67) (2,383)
Comprehensive Income - - 7,040 (2,684) - - 4,356 111 4,467
Dividend - - (3,888) - - - (3,888) (62) (3,950)
Issuance of common shares 11,749,578 29 375 - - - 404 - 404
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - - - 3,804 - - - -
Share-based payments - - 83 - - - 83 - 83
Share cancellation - - - - - - - - -
Other operations with non-controlling interests - - - 2 - - 2 57 59
Other items - - - - - - - (29) (29)
As of June 30, 2011   2,361,390,509   5,903   64,148   (5,177)   (112,483,875)   (3,503)   61,371   934   62,305
Net income from July 1 to December 31, 2011 - - 5,604 - - - 5,604 127 5,731
Other comprehensive Income - - (137) 4,088 - - 3,951 111 4,062
Comprehensive Income - - 5,467 4,088 - - 9,555 238 9,793
Dividend - - (2,569) - - - (2,569) (110) (2,679)
Issuance of common shares 2,376,804 6 71 - - - 77 - 77
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (113) - 2,929,702 113 - - -
Share-based payments - - 78 - - - 78 - 78
Share cancellation - - - - - - - - -
Other operations with non-controlling interests - - (553) 101 - - (452) (180) (632)
Other items - - (23) - - - (23) 470 447
As of December 31, 2011   2,363,767,313   5,909   66,506   (988)   (109,554,173)   (3,390)   68,037   1,352   69,389
Net income of the first half - - 5,247 - - - 5,247 39 5,286
Other comprehensive Income - - (128) 1,382 - - 1,254 23 1,277
Comprehensive Income - - 5,119 1,382 - - 6,501 62 6,563
Dividend - - (2,570) - - - (2,570) (98) (2,668)
Issuance of common shares 779,653 2 29 - - - 31 - 31
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - - - 10,295 - - - -
Share-based payments - - 74 - - - 74 - 74
Share cancellation - - - - - - - - -
Other operations with non-controlling interests - - 14 7 - - 21 (20) 1
Other items - - 9 - - - 9 (40) (31)
As of June 30, 2012   2,364,546,966   5,911   69,181   401   (109,543,878)   (3,390)   72,103   1,256   73,359
 
(1) Treasury shares related to the restricted stock grants.
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
2nd quarter 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 5,476 22,592 21,020 47 - 49,135
Intersegment sales 7,751 10,474 222 48 (18,495) -
Excise taxes   -   (874)   (3,686)   1   -   (4,559)
Revenues from sales 13,227 32,192 17,556 96 (18,495) 44,576
Operating expenses (6,698) (32,646) (17,256) (285) 18,495 (38,390)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,586)   (319)   (116)   (7)   -   (2,028)
Operating income 4,943 (773) 184 (196) - 4,158
Equity in net income (loss) of affiliates and other items 421 23 13 (156) - 301
Tax on net operating income   (2,910)   256   (63)   (14)   -   (2,731)
Net operating income 2,454 (494) 134 (366) - 1,728
Net cost of net debt (116)
Non-controlling interests                       (27)
Net income 1,585
                         
2nd quarter 2012 (adjustments) (a)

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 11 - - - - 11
Intersegment sales - - - - -
Excise taxes   -   -   -   -   -    
Revenues from sales 11 - - - - 11
Operating expenses (20) (1,238) (146) (23) - (1,427)
Depreciation, depletion and amortization of tangible assets and mineral interests   (46)   -   -   -   -   (46)
Operating income (b) (55) (1,238) (146) (23) - (1,462)
Equity in net income (loss) of affiliates and other items - (40) (8) (244) - (292)
Tax on net operating income   9   401   47   (9)   -   448
Net operating income (b) (46) (877) (107) (276) - (1,306)
Net cost of net debt -
Non-controlling interests                       33
Net income (1,273)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - (1,238) (146) -
On net operating income - (877) (99) -
(c) Of which equity share of adjustments related to Sanofi-Aventis   -   -   -   -        
2nd quarter 2012 (adjusted)

(M€) (a)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 5,465 22,592 21,020 47 - 49,124
Intersegment sales 7,751 10,474 222 48 (18,495) -
Excise taxes   -   (874)   (3,686)   1   -   (4,559)
Revenues from sales 13,216 32,192 17,556 96 (18,495) 44,565
Operating expenses (6,678) (31,408) (17,110) (262) 18,495 (36,963)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,540)   (319)   (116)   (7)   -   (1,982)
Adjusted operating income 4,998 465 330 (173) - 5,620
Equity in net income (loss) of affiliates and other items 421 63 21 88 - 593
Tax on net operating income   (2,919)   (145)   (110)   (5)   -   (3,179)
Adjusted net operating income 2,500 383 241 (90) - 3,034
Net cost of net debt (116)
Non-controlling interests                       (60)
Ajusted net income                       2,858
Adjusted fully-diluted earnings per share (€)                       1.26
(a) Except for per share amounts.
                         
2nd quarter 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Total expenditures 4,278 501 161 24 - 4,964
Total divestments 234 7 20 719 - 980
Cash flow from operating activities   5,259   625   (101)   384   -   6,167
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st quarter 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 6,618 23,096 21,411 43 - 51,168
Intersegment sales 8,234 11,815 231 45 (20,325) -
Excise taxes   -   (804)   (3,588)   (1)   -   (4,393)
Revenues from sales 14,852 34,107 18,054 87 (20,325) 46,775
Operating expenses (7,013) (33,057) (17,514) (230) 20,325 (37,489)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,407)   (314)   (108)   (9)   -   (1,838)
Operating income 6,432 736 432 (152) - 7,448
Equity in net income (loss) of affiliates and other items 465 92 9 117 - 683
Tax on net operating income   (3,998)   (214)   (144)   4   -   (4,352)
Net operating income 2,899 614 297 (31) - 3,779
Net cost of net debt (105)
Non-controlling interests                       (12)
Net income 3,662
                         
1st quarter 2012 (adjustments) (a)

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales (25) - - - - (25)
Intersegment sales - - - - -
Excise taxes   -   -   -   -   -    
Revenues from sales (25) - - - - (25)
Operating expenses - 783 63 (65) - 781
Depreciation, depletion and amortization of tangible assets and mineral interests   -   -   -   -   -   -
Operating income (b) (25) 783 63 (65) - 756
Equity in net income (loss) of affiliates and other items (21) 23 - 110 - 112
Tax on net operating income   6   (253)   (23)   (7)   -   (277)
Net operating income (b) (40) 553 40 38 - 591
Net cost of net debt -
Non-controlling interests                       (3)
Net income 588
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - 783 63 -
On net operating income - 553 40 -
(c) Of which equity share of adjustments related to Sanofi-Aventis   -   -   -   -        
1st quarter 2012 (adjusted)

(M€) (a)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 6,643 23,096 21,411 43 - 51,193
Intersegment sales 8,234 11,815 231 45 (20,325) -
Excise taxes   -   (804)   (3,588)   (1)   -   (4,393)
Revenues from sales 14,877 34,107 18,054 87 (20,325) 46,800
Operating expenses (7,013) (33,840) (17,577) (165) 20,325 (38,270)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,407)   (314)   (108)   (9)   -   (1,838)
Adjusted operating income 6,457 (47) 369 (87) - 6,692
Equity in net income (loss) of affiliates and other items 486 69 9 7 - 571
Tax on net operating income   (4,004)   39   (121)   11   -   (4,075)
Adjusted net operating income 2,939 61 257 (69) - 3,188
Net cost of net debt (105)
Non-controlling interests                       (9)
Ajusted net income                       3,074
Adjusted fully-diluted earnings per share (€)                       1.36
(a) Except for per share amounts.
                         
1st quarter 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Total expenditures 5,368 429 136 7 - 5,940
Total divestments 759 141 34 756 - 1,690
Cash flow from operating activities   5,624   (36)   (302)   (19)   -   5,267
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
2nd quarter 2011

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 5,166 19,089 20,753 1 - 45,009
Intersegment sales 6,341 10,346 158 43 (16,888) -
Excise taxes   -   (506)   (4,038)   -   -   (4,544)
Revenues from sales 11,507 28,929 16,873 44 (16,888) 40,465
Operating expenses (5,072) (28,644) (16,380) (161) 16,888 (33,369)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,100)   (310)   (112)   (9)   -   (1,531)
Operating income 5,335 (25) 381 (126) - 5,565
Equity in net income (loss) of affiliates and other items 473 23 32 255 - 783
Tax on net operating income   (3,275)   (3)   (134)   (53)   -   (3,465)
Net operating income 2,533 (5) 279 76 - 2,883
Net cost of net debt (71)
Non-controlling interests                       (86)
Net income 2,726
                         
2nd quarter 2011 (adjustments) (a)

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales (55) - - - - (55)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (55) - - - - (55)
Operating expenses - (170) 20 - - (150)
Depreciation, depletion and amortization of tangible assets and mineral interests   -   -   -   -   -   -
Operating income (b) (55) (170) 20 - - (205)
Equity in net income (loss) of affiliates and other items 121 (37) (2) 43 - 125
Tax on net operating income   10   22   (3)   (2)   -   27
Net operating income (b) 76 (185) 15 41 - (53)
Net cost of net debt -
Non-controlling interests                       (15)
Net income (68)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - (121) 34 -
On net operating income - (86) 27 -
(c) Of which equity share of adjustments related to Sanofi   -   -   -   -        
2nd quarter 2011 (adjusted)

(M€) (a)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 5,221 19,089 20,753 1 - 45,064
Intersegment sales 6,341 10,346 158 43 (16,888) -
Excise taxes   -   (506)   (4,038)   -   -   (4,544)
Revenues from sales 11,562 28,929 16,873 44 (16,888) 40,520
Operating expenses (5,072) (28,474) (16,400) (161) 16,888 (33,219)
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,100)   (310)   (112)   (9)   -   (1,531)
Adjusted operating income 5,390 145 361 (126) - 5,770
Equity in net income (loss) of affiliates and other items 352 60 34 212 - 658
Tax on net operating income   (3,285)   (25)   (131)   (51)   -   (3,492)
Adjusted net operating income 2,457 180 264 35 - 2,936
Net cost of net debt (71)
Non-controlling interests                       (71)
Ajusted net income                       2,794
Adjusted fully-diluted earnings per share (€)                       1.24
(a) Except for per share amounts.                        
                         
2nd quarter 2011

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Total expenditures 6,868 519 152 31 - 7,570
Total divestments 921 13 27 377 - 1,338
Cash flow from operating activities   4,782 *   180   (35)   137 *   -   5,064
* Reclassification of intercompany transactions between Upstream and Corporate for €823 million with no impact on the total of cash flow from operating activities
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st half 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 12,094 45,688 42,431 90 - 100,303
Intersegment sales 15,985 22,289 453 93 (38,820) -
Excise taxes   -   (1,678)   (7,274)   -   -   (8,952)
Revenues from sales 28,079 66,299 35,610 183 (38,820) 91,351
Operating expenses (13,711) (65,703) (34,770) (515) 38,820 (75,879)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,993)   (633)   (224)   (16)   -   (3,866)
Operating income 11,375 (37) 616 (348) - 11,606
Equity in net income (loss) of affiliates and other items 886 115 22 (39) - 984
Tax on net operating income   (6,908)   42   (207)   (10)   -   (7,083)
Net operating income 5,353 120 431 (397) - 5,507
Net cost of net debt (221)
Non-controlling interests                       (39)
Net income 5,247
                         
1st half 2012 (adjustments) (a)

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales (14) - - - (14)
Intersegment sales
Excise taxes                        
Revenues from sales (14) - - - (14)
Operating expenses (20) (455) (83) (88) (646)
Depreciation, depletion and amortization of tangible assets and mineral interests   (46)   -   -   -       (46)
Operating income (b) (80) (455) (83) (88) (706)
Equity in net income (loss) of affiliates and other items (21) (17) (8) (134) (180)
Tax on net operating income   15   148   24   (16)       171
Net operating income (b) (86) (324) (67) (238) (715)
Net cost of net debt -
Non-controlling interests                       30
Net income (685)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - (455) (83) -
On net operating income - (324) (59) -
(c) Of which equity share of adjustments related to Sanofi-Aventis   -   -   -   -        
1st half 2012 (adjusted)

(M€) (a)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 12,108 45,688 42,431 90 - 100,317
Intersegment sales 15,985 22,289 453 93 (38,820) -
Excise taxes   -   (1,678)   (7,274)   -   -   (8,952)
Revenues from sales 28,093 66,299 35,610 183 (38,820) 91,365
Operating expenses (13,691) (65,248) (34,687) (427) 38,820 (75,233)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,947)   (633)   (224)   (16)   -   (3,820)
Adjusted operating income 11,455 418 699 (260) - 12,312
Equity in net income (loss) of affiliates and other items 907 132 30 95 - 1,164
Tax on net operating income   (6,923)   (106)   (231)   6   -   (7,254)
Adjusted net operating income 5,439 444 498 (159) - 6,222
Net cost of net debt (221)
Non-controlling interests                       (69)
Ajusted net income                       5,932
Adjusted fully-diluted earnings per share (€)                       2.62
(a) Except for per share amounts.                        
                         
1st half 2012

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Total expenditures 9,646 930 297 31 10,904
Total divestments 993 148 54 1,475 2,670
Cash flow from operating activities   10,883   589   (403)   365       11,434
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st half 2011

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 11,310 38,474 41,242 12 - 91,038
Intersegment sales 13,280 21,008 397 84 (34,769) -
Excise taxes   -   (981)   (7,990)   -   -   (8,971)
Revenues from sales 24,590 58,501 33,649 96 (34,769) 82,067
Operating expenses (11,010) (56,458) (32,572) (314) 34,769 (65,585)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,340)   (633)   (227)   (17)   -   (3,217)
Operating income 11,240 1,410 850 (235) - 13,265
Equity in net income (loss) of affiliates and other items 816 112 84 270 - 1,282
Tax on net operating income   (6,802)   (453)   (259)   (53)   -   (7,567)
Net operating income 5,254 1,069 675 (18) - 6,980
Net cost of net debt (130)
Non-controlling interests                       (178)
Net income 6,672
                         
1st half 2011 (adjustments) (a)

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 29 - - - 29
Intersegment sales - - - - -
Excise taxes   -   -   -   -       -
Revenues from sales 29 - - - 29
Operating expenses - 976 230 - 1,206
Depreciation, depletion and amortization of tangible assets and mineral interests   -   -   -   -       -
Operating income (b) 29 976 230 - 1,235
Equity in net income (loss) of affiliates and other items 121 (5) 5 54 175
Tax on net operating income   (202)   (348)   (72)   (2)       (624)
Net operating income (b) (52) 623 163 52 786
Net cost of net debt -
Non-controlling interests                       (12)
Net income 774
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - 1,025 244 -
On net operating income - 722 175 -
(c) Of which equity share of adjustments related to Sanofi   -   -   -   -        
1st half 2011 (adjusted)

(M€) (a)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Non-Group sales 11,281 38,474 41,242 12 - 91,009
Intersegment sales 13,280 21,008 397 84 (34,769) -
Excise taxes   -   (981)   (7,990)   -   -   (8,971)
Revenues from sales 24,561 58,501 33,649 96 (34,769) 82,038
Operating expenses (11,010) (57,434) (32,802) (314) 34,769 (66,791)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,340)   (633)   (227)   (17)   -   (3,217)
Adjusted operating income 11,211 434 620 (235) - 12,030
Equity in net income (loss) of affiliates and other items 695 117 79 216 - 1,107
Tax on net operating income   (6,600)   (105)   (187)   (51)   -   (6,943)
Adjusted net operating income 5,306 446 512 (70) - 6,194
Net cost of net debt (130)
Non-controlling interests                       (166)
Ajusted net income                       5,898
Adjusted fully-diluted earnings per share (€)                       2.62
(a) Except for per share amounts.
                         
1st half 2011

(M€)

  Upstream   Refining Chemicals   Supply Marketing   Corporate   Intercompany   Total
Total expenditures 12,100 863 243 47 13,253
Total divestments 1,256 29 48 668 2,001
Cash flow from operating activities   9,425 *   1,238   (79)   194 *       10,778
* Reclassification of intercompany transactions between Upstream and Corporate for €823 million with no impact on the total of cash flow from operating activities
Consolidated Financial Statements as of June 30, 2012

 

Nature of the elements of adjustment by business segment

(M€)

           
ADJUSTMENTS TO OPERATING INCOME
                         
(M€)       Upstream   Refining Chemicals   Supply Marketing   Corporate   Total
2nd quarter 2012 Inventory valuation effect - (1,238) (146) - (1,384)
Effect of changes in fair value 11 - - - 11
Restructuring charges (48) - - - (48)
Asset impairment charges - - - - -
Other items (18) - - (23) (41)
Total       (55)   (1,238)   (146)   (23)   (1,462)
2nd quarter 2011 Inventory valuation effect - (121) 34 - (87)
Effect of changes in fair value (55) - - - (55)
Restructuring charges - - - - -
Asset impairment charges - - - - -
Other items - (49) (14) - (63)
Total       (55)   (170)   20   -   (205)
                         
1st half 2012 Inventory valuation effect - (455) (83) - (538)
Effect of changes in fair value (14) - - - (14)
Restructuring charges (48) - - - (48)
Asset impairment charges - - - - -
Other items (18) - - (88) (106)
Total       (80)   (455)   (83)   (88)   (706)
1st half 2011 Inventory valuation effect - 1,025 244 - 1,269
Effect of changes in fair value 29 - - - 29
Restructuring charges - - - - -
Asset impairment charges - - - - -
Other items - (49) (14) - (63)
Total       29   976   230   -   1,235
 
ADJUSTMENTS TO NET INCOME GROUP SHARE
                         
(M€)       Upstream   Refining Chemicals   Supply Marketing   Corporate   Total
2nd quarter 2012 Inventory valuation effect - (877) (82) - (959)
Effect of changes in fair value 9 - - - 9
Restructuring charges (32) - (8) - (40)
Asset impairment charges - - - (18) (18)
Gains (losses) on disposals of assets - - - 73 73
Other items (7) - - (331) (338)
Total       (30)   (877)   (90)   (276)   (1,273)
2nd quarter 2011 Inventory valuation effect - (86) 12 - (74)
Effect of changes in fair value (41) - - - (41)
Restructuring charges - - - - -
Asset impairment charges (47) - - - (47)
Gains (losses) on disposals of assets 164 - - 41 205
Other items - (99) (12) - (111)
Total       76   (185)   -   41   (68)
                         
1st half 2012 Inventory valuation effect - (324) (45) - (369)
Effect of changes in fair value (11) - - - (11)
Restructuring charges (32) - (8) - (40)
Asset impairment charges (20) - - (18) (38)
Gains (losses) on disposals of assets - - - 153 153
Other items (7) - - (373) (380)
Total       (70)   (324)   (53)   (238)   (685)
1st half 2011 Inventory valuation effect - 722 150 - 872
Effect of changes in fair value 22 - - - 22
Restructuring charges - - - - -
Asset impairment charges (47) - - - (47)
Gains (losses) on disposals of assets 164 - - 52 216
Other items (178) (99) (12) - (289)
Total       (39)   623   138   52   774
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
2nd quarter 2012

(M€)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 49,124 11 49,135
Excise taxes (4,559) - (4,559)
Revenues from sales 44,565 11 44,576
Purchases net of inventory variation (30,910) (1,384) (32,294)
Other operating expenses (5,784) (43) (5,827)
Exploration costs (269) - (269)
Depreciation, depletion and amortization of tangible assets and mineral interests (1,982) (46) (2,028)
Other income 126 99 225
Other expense (108) (343) (451)
Financial interest on debt (170) - (170)
Financial income from marketable securities & cash equivalents 24 - 24
Cost of net debt (146) - (146)
Other financial income 209 - 209
Other financial expense (118) - (118)
Equity in net income (loss) of affiliates 484 (48) 436
Income taxes   (3,149)   448   (2,701)
Consolidated net income 2,918 (1,306) 1,612
Group share 2,858 (1,273) 1,585
Non-controlling interests 60 (33) 27
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
2nd quarter 2011

(M€)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 45,064 (55) 45,009
Excise taxes (4,544) - (4,544)
Revenues from sales 40,520 (55) 40,465
Purchases net of inventory variation (28,299) (87) (28,386)
Other operating expenses (4,741) (63) (4,804)
Exploration costs (179) - (179)
Depreciation, depletion and amortization of tangible assets and mineral interests (1,531) - (1,531)
Other income 35 211 246
Other expense (70) (68) (138)
Financial interest on debt (159) - (159)
Financial income from marketable securities & cash equivalents 55 - 55
Cost of net debt (104) - (104)
Other financial income 335 - 335
Other financial expense (104) - (104)
Equity in net income (loss) of affiliates 462 (18) 444
Income taxes   (3,459)   27   (3,432)
Consolidated net income 2,865 (53) 2,812
Group share 2,794 (68) 2,726
Non-controlling interests 71 15 86
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
1st half 2012

(M€)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 100,317 (14) 100,303
Excise taxes (8,952) - (8,952)
Revenues from sales 91,365 (14) 91,351
Purchases net of inventory variation (63,797) (538) (64,335)
Other operating expenses (10,811) (108) (10,919)
Exploration costs (625) - (625)
Depreciation, depletion and amortization of tangible assets and mineral interests (3,820) (46) (3,866)
Other income 305 209 514
Other expense (200) (347) (547)
Financial interest on debt (357) - (357)
Financial income from marketable securities & cash equivalents 59 - 59
Cost of net debt (298) - (298)
Other financial income 294 - 294
Other financial expense (254) - (254)
Equity in net income (loss) of affiliates 1,019 (42) 977
Income taxes   (7,177)   171   (7,006)
Consolidated net income 6,001 (715) 5,286
Group share 5,932 (685) 5,247
Non-controlling interests 69 (30) 39
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
1st half 2011

(M€)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 91,009 29 91,038
Excise taxes (8,971) - (8,971)
Revenues from sales 82,038 29 82,067
Purchases net of inventory variation (56,910) 1,269 (55,641)
Other operating expenses (9,443) (63) (9,506)
Exploration costs (438) - (438)
Depreciation, depletion and amortization of tangible assets and mineral interests (3,217) - (3,217)
Other income 109 222 331
Other expense (129) (68) (197)
Financial interest on debt (295) - (295)
Financial income from marketable securities & cash equivalents 102 - 102
Cost of net debt (193) - (193)
Other financial income 410 - 410
Other financial expense (212) - (212)
Equity in net income (loss) of affiliates 929 21 950
Income taxes   (6,880)   (624)   (7,504)
Consolidated net income 6,064 786 6,850
Group share 5,898 774 6,672
Non-controlling interests 166 12 178
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 

Total
Jérôme SCHMITT
Philippe HERGAUX
Sandrine SABOUREAU
Laurent KETTENMEYER
Tel. : 33 (1) 47 44 58 53
Fax : 33 (1) 47 44 58 24
or
Robert HAMMOND (U.S.)
Tel. : (1) 201 626 3500
Fax : (1) 201 626 4004
www.total.com

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