Total : Second Quarter and First Half 2014 Resu...

Total : Second Quarter and First Half 2014 Results¹

TOTAL

2Q14

Change
vs 2Q13

1H14

Change
vs 1H13

Adjusted net income²

- in billions of dollars (B$)

3.2

-12%

6.5

-11%

- in dollars per share

1.38

-12%

2.84

-11%

Net income³ of 3.1 B$ in 2Q14 and 6.4 B$ in 1H14

Net-debt-to-equity ratio of 27.1% at June 30, 2014

Hydrocarbon production of 2,054 kboe/d in 2Q14

Interim dividend for 2Q14 of 0.61 â‚¬/share payable in December 2014⁴

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

â€œGrowing geopolitical tensions marked the second quarter environment and, despite the stability of the Brent price, drew attention to the sensitive balance of the oil markets.

In this context, the Group reported adjusted net income of $3.2 billion, slightly less than in the previous quarter, essentially due to exceptionally heavy maintenance in the Upstream. The highlight of the quarter was the start-up of CLOV in deep-offshore Angola, which demonstrates yet again the excellence of the Group in major project management. Going forward, we are fully mobilized and focused on starting up the next set of operated projects. In addition, the final investment decisions to launch Kaombo in Angola and Edradour in the UK, approved only after rigorous cost reductions, illustrate the Groupâ€™s capital discipline and strengthen its production profile through 2017.

The Group performed relatively well in the downstream, despite an unfavorable environment for refining and marketing in Europe and scheduled turnarounds for maintenance on several sites.

Every segment is playing a role in optimizing the asset portfolio. The sales of Shah Deniz in Azerbaijan, the coal mines in South Africa and Totalgaz have been announced. Finally, all the segments have progressed in setting detailed cost reduction targets within the framework of the 3-year plan announced at the beginning of the year. This plan, which is essential to the Groupâ€™s performance and in keeping with the commitments on safety and environment, will bear its first fruits in 2015.â€

Key figures⁵

2Q14

1Q14

2Q13

2Q14
vs
2Q13

Expressed in millions dollars
except earnings per share and number of shares

1H14

1H13

1H14 vs
1H13

62,561

60,687

61,345

+2%

Sales

123,248

124,906

-1%

5,583

6,182

6,708

-17%

Adjusted operating income from business segments

11,765

14,211

-17%

3,824

3,699

4,005

-5%

Adjusted net operating income from business segments

7,523

8,031

-6%

3,051

3,092

3,041

- Upstream

6,143

6,298

-2%

401

346

518

-23%

- Refining & Chemicals

747

955

-22%

372

261

446

-17%

- Marketing & Services

633

778

-19%

3,151

3,327

3,581

-12%

Adjusted net income

6,478

7,279

-11%

1.38

1.46

1.57

-12%

Adjusted fully-diluted earnings per share (dollars)

2.84

3.20

-11%

1.00

1.07

1.21

-17%

Adjusted fully-diluted earnings per share (euro)

2.07

2.44

-15%

2,281

2,277

2,274

Fully-diluted weighted-average shares (millions)

2,279

2,272

3,104

3,335

3,364

-8%

Net income (Group share)

6,439

5,312

+21%

8,723

5,865

7,459

+17%

Investments⁶

14,588

15,363

-5%

631

1,840

1,750

-64%

Divestments

2,471

2,563

-4%

7,966

4,025

5,716

+39%

Net investments⁷

11,991

12,336

-3%

5,277

5,338

4,838

+9%

Cash flow from operations

10,615

9,751

+9%

5,931

6,204

6,625

-10%

Adjusted cash flow from operations

12,135

13,380

-9%

Highlights since the beginning of the second quarter 2014⁸
- Started up the deep-offshore CLOV oil field in Angola
- Launched the developments of Kaombo in ultra-deep offshore Angola and Edradour in the West of Shetland area of the UK
- Discovered oil on Ivory Coast deep-offshore block CI-514
- Acquired a 60% interest in the Glenlivet gas field in the West of Shetland area of the UK
- Announced the sales of the Groupâ€™s interests in the Shah Deniz field in Azerbaijan and coal mines in South Africa
- Announced agreements to sell Totalgaz and CCP Composites
- Signed an agreement for long-term sales of LNG to Singapore
Second quarter 2014 results

> Net operating income from business segments

In the second quarter 2014, the Brent price averaged 109.7 $/b, an increase of 7% compared to the second quarter 2013 and 1% compared to the first quarter 2014. The Groupâ€™s European refining margin indicator (ERMI) averaged 10.9 $/t compared to 24.1 $/t in the second quarter 2013 and 6.6 $/t in the first quarter 2014.

The effective tax rate⁹ for the business segments was 48.8% in the second quarter 2014 compared to 53.2% in the second quarter 2013, reflecting mainly the benefit of tax allowances in the UK.

Adjusted net operating income from the business segments was 3,824 M$ in the second quarter 2014 compared to 4,005 M$ in the second quarter 2013, a decrease of 5% mainly due to weaker performance from Refining & Chemicals, which faced a deteriorated refining environment in Europe, and less favorable conditions for certain Marketing & Services activities. In the Upstream, adjusted net operating income was stable despite a high level of maintenance, notably thanks to a lower effective tax rate this quarter.

> Net income (Group share)

Adjusted net income was 3,151 M$ compared to 3,581 M$ in the second quarter 2013, a decrease of 12%.

Adjusted net income excludes the after-tax inventory effect, the effect of changes in fair value and special items¹⁰:

The after-tax inventory effect had a positive impact on net income of 80 M$ in the second quarter 2014 compared to a negative impact of 525Â M$ in the second quarter 2013.
Changes in fair value had a negative impact on net income of 29 M$ in the second quarter 2014 compared to a negative impact of 31 M$ in the second quarter 2013.
Special items¹¹ had a negative impact on net income of 98 M$ in the second quarter 2014 compared to a positive impact of 339 M$ in the second quarter in 2013.

Net income (Group share) was 3,104 M$ compared to 3,364 M$ in the second quarterÂ 2013.

The effective tax rate for the Group was 55.1% in the second quarter 2014 compared to 55.3% in the second quarter 2013.

On June 30, 2014, there were 2,284 million fully-diluted shares compared to 2,277 million shares on June 30, 2013.

Adjusted fully-diluted earnings per share, based on 2,281 million fully-diluted weighted-average shares, was $1.38 compared to $1.57 in the second quarter 2013.

Expressed in euro, adjusted fully-diluted earnings per share was â‚¬1.00, a 17% decrease.

> Investments â€“ divestments¹²

Investments, excluding acquisitions and including changes in non-current loans, were 7.2Â B$ in the second quarter 2014, an increase of 12% compared to 6.4Â B$ in the second quarter 2013.

Acquisitions were 1,100 M$ in the second quarter 2014, essentially comprised of the acquisition of an interest in the Elk and Antelope discoveries in Papua New Guinea, the acquisition of additional Novatek¹³ shares and the carry on the Utica gas and condensate field in the United States.

Asset sales in the second quarter 2014 were 201 M$.

Net investments¹⁴ were 8.0 B$ in the second quarter 2014 compared to 5.7Â B$ in the second quarter 2013.

The sale of Usan was not completed with Sinopec. The Group is actively pursuing the sale process for this asset.

> Cash flow

Cash flow from operations was 5,277 M$ in the second quarter 2014, an increase of 9% compared to the second quarter 2013.

Adjusted cash flow from operations¹⁵ was 5,931 M$ in the second quarter 2014, a decrease of 10% compared to the second quarter 2013.

The Groupâ€™s net cash flow¹⁶ in the second quarter 2014 was negative 2,689 M$ compared to negative 878 M$ in the second quarter 2013, reflecting essentially an increase in net investments between the two periods.

The net-debt-to-equity ratio was 27.1% on June 30, 2014, compared to 23.5% on March 31, 2014, and 27.6% on June 30, 2013¹⁷.

First half 2014 results

> Net operating income from business segments

In the first half 2014, the price of Brent averaged 108.9 $/b compared to 107.5 $/b in the first half 2013. The ERMI was 8.7 $/t compared to 25.5 $/t in the first half 2013.

The effective tax rate¹⁸ for the business segments was 52.5% in the first half 2014 compared to 56.0% in the first half 2013, reflecting mainly the benefit of tax allowances in the UK.

Adjusted net operating income from the business segments was 7,523 M$ in the first half 2014 compared to 8,031 M$ in the first half 2013, a decrease of 6% that was mainly due to the weaker performance of the downstream in a much weaker European refining environment. In the Upstream, adjusted net operating income was stable despite a high level of maintenance, notably thanks to a lower effective tax rate this half.

> Net income (Group share)

Adjusted net income was 6,478 M$ compared to 7,279 M$ in the first half 2013, a decrease of 11%.

Adjusted net income excludes the after-tax inventory effect, the effect of changes in fair value and special items¹⁹:

The after-tax inventory effect had a negative impact on net income of 57 M$ in the first half 2014 compared to negative impact of 593Â M$ in the first half 2013.
Changes in fair value had a negative impact on net income of 8 M$ in the first half 2014 compared to a negative impact of 30 M$ in the first half 2013.
Special items²⁰ had a positive impact on net income of 26 M$ in the first half 2014, including mainly the gain on the sale (partial IPO) of an interest in Gaztransport & Technigaz (GTT) partially offset by the impairment of the Shtokman project in Russia. Special items had a negative impact on net income of 1,344 M$ in the first half 2013.

Net income (Group share) was 6,439 M$ compared to 5,312 M$ in the first half 2013.

The effective tax rate for the Group was 56.5% in the first half 2014 compared to 57.4% in the first half 2013, reflecting mainly the benefit of tax allowances in the UK, and, effective January 1, 2014, due to its fiscal situation in France, the Group is no longer recognizing the benefit of tax credits related to net operating losses in France.

On June 30, 2014, there were 2,284 million fully-diluted shares compared to 2,277 million shares on June 30, 2013.

Adjusted fully-diluted earnings per share, based on 2,279 million fully-diluted weighted-average shares, was $2.84 in the first half 2014 compared to $3.20 in the first half 2013.

Expressed in euro, adjusted fully-diluted earnings per share was â‚¬2.07, a decrease of 15%.

> Investments â€“ divestments²¹

Investments, excluding acquisitions and including changes in non-current loans, were 12.4 B$ in the first half 2014, a decrease of 4% compared to 12.9Â B$ in the first half 2013.

Acquisitions were 1,399 M$ in the first half 2014, essentially comprised of the acquisition of an interest in the Elk and Antelope discoveries in Papua New Guinea, the acquisition of additional Novatek²² shares and the carry on the Utica gas and condensate field in the United States.

Asset sales in the first half 2014 were 1,677 B$, essentially comprised of the sale of block 15/06 in Angola and the sale (partial IPO) of an interest in Gaztransport & Technigaz (GTT).

Net investments²³ were 12.0 B$ in the first half 2014, compared to 12.3Â B$ in the first half 2013.

The sale of Usan was not completed with Sinopec. The Group is actively pursuing the sale process for this asset.

> Cash flow

Cash flow from operations was 10,615 M$ in the first half 2014, an increase of 9% compared to the first half 2013.

Adjusted cash flow from operations²⁴ was 12,135 M$, a decrease of 9% compared to the first half 2013.

The Groupâ€™s net cash flow²⁵ was negative 1,376 M$ compared to negative 2,585Â M$ in the first half 2013, reflecting essentially a decrease in investments and an increase in cash flow between the two periods.

The net-debt-to-equity ratio was 27.1% on June 30, 2014, compared to 27.6% on JuneÂ 30, 2013²⁶.

Analysis of business segment results

Upstream

> Environment â€“ liquids and gas price realizations*

2Q14

1Q14

2Q13

2Q14
vs
2Q13

1H14

1H13

1H14 vs 1H13

109.7

108.2

102.4

+7%

Brent ($/b)

108.9

107.5

+1%

103.0

102.1

96.6

+7%

Average liquids price ($/b)

102.5

101.7

+1%

6.52

7.06

6.62

-2%

Average gas price ($/Mbtu)

6.80

6.97

-2%

73.1

73.4

69.8

+5%

Average hydrocarbon price ($/boe)

73.2

73.6

-1%

* consolidated subsidiaries, excluding fixed margins

> Production

2Q14

1Q14

2Q13

2Q14
vs
2Q13

Hydrocarbon production

1H14

1H13

1H14 vs 1H13

2,054

2,179

2,290

-10%

Combined production (kboe/d)

2,116

2,306

-8%

984

1,031

1,160

-15%

- Liquids (kb/d)

1,007

1,176

-14%

5,867

6,268

6,169

-5%

- Gas (Mcf/d)

6,066

6,153

-1%

Hydrocarbon production was 2,054 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2014, a decrease of 10% compared to the second quarter 2013, essentially due to the following :

-6.5% for changes in the portfolio, essentially the expiration of the ADCO license in the United Arab Emirates;
-0.5% for security conditions which improved in Nigeria but deteriorated in Libya; and
-3% for the normal production decline and the high level of planned maintenance, partially offset by the ramp up on new projects.

Excluding the ADCO license, which expired in January 2014, hydrocarbon production in the second quarter 2014 decreased by 4% and 5% compared to the second quarter 2013 and first quarter 2014, respectively.

In the first half 2014, hydrocarbon production was 2,116 kboe/d, a decrease of 8% compared to the first half 2013, essentially due to the following :

-5.5% for changes in the portfolio, essentially the expiration of the ADCO license in the United Arab Emirates;
-1% for security conditions in Libya and Nigeria; and
-1.5% for the normal production decline and the high level of planned maintenance, partially offset by the ramp up on new projects.

In the first half 2014, excluding the ADCO license, hydrocarbon production decreased by 3% compared to the first half 2013.

> Results

2Q14

1Q14

2Q13

2Q14
vs
2Q13

In millions of dollars

1H14

1H13

1H14 vs
1H13

4,810

5,501

5,621

-14%

Adjusted operating income*

10,311

12,170

-15%

3,051

3,092

3,041

Adjusted net operating income*

6,143

6,298

-2%

769

733

687

+12%

- includes income from equity affiliates

1,502

1,524

-1%

7,999

5,311

6,603

+21%

Investments

13,310

13,544

-2%

568

1,799

1,456

-61%

Divestments

2,367

2,174

+9%

4,805

3,811

2,764

+74%

Cash flow from operations

8,616

8,245

+4%

4,841

5,133

5,595

-13%

Adjusted cash flow from operations

9,974

11,123

-10%

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

Adjusted net operating income from the Upstream segment was 3,051 M$ in the second quarter 2014, stable compared to the second quarter 2013. The negative impact of the decrease in hydrocarbon production and the increase in costs due to the high level of planned maintenance was offset mainly by the higher realized price for liquids and the lower tax rate.

The effective tax rate for the Upstream segment was 52.3% compared to 58.2% in the second quarter 2013. This decrease is mainly due to tax allowances in the UK, notably on the Laggan field, recognized in the second quarter 2014.

Adjusted net operating income from the Upstream segment in the first half 2014 was 6,143 M$ compared to 6,298Â M$ in the first half 2013, a decrease of 2% reflecting essentially the lower production and higher costs due to the high level of planned maintenance, partially offset by the lower tax rate.

The return on average capital employed (ROACE²⁷) for the Upstream segment was 13% for the twelve months ended June 30, 2014, compared to 13% for the twelve months ended March 31, 2014, and 14% for the full-year 2013.

Refining & Chemicals

> Refinery throughput and utilization rates*

2Q14

1Q14

2Q13

2Q14
vs
2Q13

1H14

1H13

1H14
vs
1H13

1,622

1,700

1,772

-8%

Total refinery throughput (kb/d)

1,662

1,769

-6%

634

617

729

-13%

- France

626

678

-8%

695

787

781

-11%

- Rest of Europe

741

824

-10%

293

296

262

+12%

- Rest of world

295

267

+10%

Utlization rates**

72%

77%

83%

- Based on crude only

72%

83%

74%

83%

87%

- Based on crude and other feedstock

76%

86%

* includes share of TotalErg. Results for refineries in South Africa, French Antilles and Italy are reported in the Marketing & Services segment.

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

In the second quarter 2014, refinery throughput decreased by 8% compared to the second quarter 2013, reflecting essentially the turnarounds at Leuna and Vlissingen as well as voluntary shutdowns in response to weak refining margins in Europe. Included in June are the first runs from the new Satorp refinery, where all the units are now operational.

In the first half 2014, refinery throughput decreased by 6% compared to the first half 2013, reflecting essentially the turnarounds at Grandpuits, Leuna and Vlissingen, as well as voluntary shutdowns in response to weak refining margins in Europe.

> Results

2Q14

1Q14

2Q13

2Q14
vs
2Q13

In millions of dollars
(except the ERMI)

1H14

1H13

1H14
vs
1H13

10.9

6.6

24.1

-55%

European refining margin

indicator - ERMI ($/t)

8.7

25.5

-66%

368

328

520

-29%

Adjusted operating income*

696

958

-27%

401

346

518

-23%

Adjusted net operating income*

747

955

-22%

174

139

146

+18%

- contribution of Specialty chemicals**

313

265

+18%

475

250

499

-5%

Investments

725

1,202

-40%

272

-94%

Divestments

308

-92%

(133)

1,593

1,713

Cash flow from operations

1,460

1,331

+10%

683

617

800

-15%

Adjusted cash flow from operations

1,300

1,441

-10%

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

** Hutchinson, Bostik, Atotech.

The ERMI averaged 10.9 $/t in the second quarter 2014, a decrease of 55% compared to the second quarter 2013. Petrochemical margins remained high in the United States but retreated in Europe and Asia.

Adjusted net operating income from the Refining & Chemicals segment was 401 M$ in the second quarter 2014, compared to 518 M$ in the second quarter 2013, reflecting essentially the deterioration of the European refining environment, partially offset by the ongoing implementation of synergy and efficiency plans between the two periods.

Adjusted net operating income from the Refining & Chemicals segment for the first half 2014 was 747Â M$, a decrease of 22% compared to the first half 2013, reflecting essentially the strong deterioration of the European refining environment.

The ROACE²⁸ for the Refining & Chemicals segment was 8% for the twelve months ended June 30, 2014, compared to 9% for the twelve months ended March 31, 2014, and 9% for the full-year 2013.

Marketing & Services

> Refined product sales

2Q14

1Q14

2Q13

2Q14
vs
2Q13

Sales in kb/d*

1H14

1H13

1H14
vs
1H13

1,102

1,058

1,150

-4%

Europe

1,080

1,129

-4%

731

593

633

+15%

Rest of world

662

620

+7%

1,833

1,651

1,783

+3%

Total Marketing & Services sales

1,742

1,749

* excludes trading and bulk Refining sales, includes share of TotalErg

In the second quarter 2014, sales increased by 3% compared to the second quarter last year, mainly due to higher network sales, particularly in Africa, Middle East and Europe, partially offset by lower sales of domestic fuels and LPGs.

Sales volumes for the first half 2014 were stable compared to the first half 2013, due to the offsetting effects of a 4% decrease in European sales and net growth outside of Europe, particularly in the Americas and Middle East.

> Results

2Q14

1Q14

2Q13

2Q14
vs
2Q13

In millions of dollars

1H14

1H13

1H14
vs
1H13

28,213

26,470

26,851

+5%

Sales

54,683

54,583

405

353

567

-29%

Adjusted operating income*

758

1,083

-30%

372

261

446

-17%

Adjusted net operating income*

633

778

-19%

(8)

- contribution of New Energies

(17)

203

276

318

-36%

Investments

479

564

-15%

+75%

Divestments

-18%

304

542

-44%

Cash flow from operations

393

422

-7%

551

379

704

-22%

Adjusted cash flow from operations

930

1,255

-26%

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

The Marketing & Services segmentâ€™s sales were 28 B$ in the second quarter 2014, an increase of 5% compared to the second quarter 2013.

Adjusted net operating income from the Marketing & Services segment was 372 M$ in the second quarter 2014, a decrease of 17% compared to the second quarter 2013, reflecting in particular less favorable margins in Europe related to weather conditions.

Adjusted net operating income from the Marketing & Services segment in the first half 2014 was 633Â M$, a decrease of 19% compared to the first half 2013, essentially due to the impact of weather conditions on sales and a less favorable trend in European margins, partially offset by a global increase in the marketing of petroleum products in growing markets.

The ROACE²⁹ for the Marketing & Services segment was 14% for the twelve months ended June 30, 2014, compared to 15% for the twelve months ended March 31, 2014, and 16% for the full-year 2013.

TOTAL S.A. parent company accounts

Net income for TOTAL S.A., the parent company, was 3,397 Mâ‚¬ in the first half 2014, compared to 3,876 Mâ‚¬ in the first half 2013.

Summary and outlook

The ROACE³⁰ for the Group for the twelve months ended June 30, 2014, was 12%. This compares with 12% for the twelve months ended March 31, 2014, and 13% for the full-year 2013.

Return on equity for the twelve months ended June 30, 2014, was 14%.

In the Upstream, before the end of this year, CLOV should reach its production plateau of 160 kb/d, and the Group should start up Laggan-Tormore and Ofon Phase 2. In exploration, results are expected in the coming months from high-potential wells currently drilling in Angolaâ€™s Kwanza basin, in South Africa and in Indonesia.

In the downstream, all of the units at the Satorp refinery in Saudi Arabia are operational. Since the start of the third quarter 2014, European refining margins have improved compared to the very low levels in the first half 2014, but remain very volatile.

Several asset sales have been announced this year, and, as they are closed, the program total will be well within the objective of $15-20 billion for the 2012-14 period.

In addition, all of the teams are involved in the finalization of the announced cost reduction plan, which will be presented at the Investorsâ€™ day on September 22, 2014.

As approved by the Board of Directors on April 29, 2014, Total will pay a first quarter 2014 interim dividend of 0.61 â‚¬/share on September 26, 2014.

â– â– â–

To listen to CFO Patrick de La ChevardiÃ¨reâ€™s conference call with financial analysts today at 14:00 (London time) please log on to www.total.com or call +44 (0)203Â 364 5196 in Europe or +1Â 855Â 255 3886 in the United States. For a replay, please consult the website or call +44 (0)203Â 367 9460 in Europe or +1Â 877Â 642 3018 in the United States (code: 288310).

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 monÃ©taire et financier, and is available on the Total website www.total.com..

This press release presents the first half 2014 results from the consolidated financial statements of TOTAL S.A. as of June 30, 2014. The notes to these consolidated financial statements (unaudited) are available on the TOTAL web site (www.total.com).

This document may contain forward-looking information on the Group (including objectives and trends), as well as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business, strategy and plans of TOTAL. These data do not represent forecasts within the meaning of European Regulation No. 809/2004.

Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, 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. Certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.

Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Further information on factors, risks and uncertainties that could affect the Companyâ€™s financial results or the Groupâ€™s activities is provided in the most recent Registration Document filed by the Company with the French AutoritÃ© des MarchÃ©s Financiers and annual report on Form 20-F filed with the United States Securities and Exchange Commission (â€œSECâ€).

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. These adjustment items include:

(i) Special items

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

(ii) Inventory valuation effect

The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segmentsâ€™ performance and facilitate the comparability of the segmentsâ€™ performance with those of its competitors.

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

(iii) Effect of changes in fair value

The effect of changes in fair value presented as an adjustment item reflects for some transactions differences between internal measures of performance used by TOTALâ€™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 Groupâ€™s internal economic performance. IFRS precludes recognition of this fair value effect.

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

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

Cautionary Note to U.S. Investors â€“ 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 SECâ€™s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our FormÂ 20-F, File NÂ°Â 1-10888, available from us at 2,Â Place Jean Millier â€“ Arche Nord Coupole/Regnault - 92078 Paris-La DÃ©fense Cedex, France, or at our website: www.total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SECâ€™s website: www.sec.gov.

Operating information by segment

for the second quarter and first half 2014

Upstream

2Q14

1Q14

2Q13

2Q14 vs
2Q13

Combined liquids and gas production by region (kboe/d)

1H14

1H13

1H14 vs
1H13

329

394

383

-14%

Europe

361

388

-7%

618

655

688

-10%

Africa

637

690

-8%

380

405

527

-28%

Middle East

393

535

-27%

+30%

North America

+21%

157

159

171

-8%

South America

158

172

-8%

238

242

229

+4%

Asia-Pacific

240

232

+3%

241

242

222

+9%

CIS

241

218

+11%

2,054

2,179

2,290

-10%

Total production

2,116

2,306

-8%

544

583

678

-20%

Includes equity affiliates

563

679

-17%

2Q14	Â	1Q14	Â	2Q13	Â	2Q14 vs 2Q13	Â	Liquids production by region (kb/d)	Â	1H14	Â	1H13	Â	1H14 vs 1H13
159	Â	172	Â	154	Â	+3%	Â	Europe	Â	165	Â	160	Â	+3%
482		508		542		-11%		Africa		495		547		-10%
190		203		320		-41%		Middle East		197		324		-39%
40		34		27		+48%		North America		37		27		+37%
50		50		55		-9%		South America		50		56		-11%
29		30		29		-		Asia-Pacific		29		30		-3%
34	Â	34	Â	33	Â	+3%	Â	CIS	Â	34	Â	32	Â	+6%
984	Â	1,031	Â	1,160	Â	-15%	Â	Total production	Â	1,007	Â	1,176	Â	-14%
197	Â	208	Â	323	Â	-39%	Â	Includes equity affiliates	Â	202	Â	324	Â	-38%

2Q14

1Q14

2Q13

2Q14 vs
2Q13

Gas production by region (Mcf/d)

1H14

1H13

1H14 vs
1H13

936

1,215

1,285

-27%

Europe

1,075

1,250

-14%

710

748

741

-4%

Africa

729

724

+1%

1,042

1,104

1,105

-6%

Middle East

1,073

1,135

-5%

285

266

242

+18%

North America

276

246

+12%

601

609

649

-7%

South America

605

643

-6%

1,188

1,202

1,121

+6%

Asia-Pacific

1,194

1,136

+5%

1,105

1,124

1,026

+8%

CIS

1,114

1,019

+9%

5,867

6,268

6,169

-5%

Total production

6,066

6,153

-1%

1,895

2,029

1,900

Includes equity affiliates

1,962

1,911

+3%

2Q14

1Q14

2Q13

2Q14 vs
2Q13

Liquefied natural gas

1H14

1H13

1H14 vs
1H13

2.93

3.12

2.89

+1%

LNG sales* (Mt)

6.05

5.82

+4%

* sales, Group share, excluding trading; 2013 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2013 SEC coefficient.

Downstream (Refining & Chemicals and Marketing & Services)

2Q14

1Q14

2Q13

2Q14
vs
2Q13

Refined product sales by region (kb/d)*

1H14

1H13

1H14
vs
1H13

2,017

2,005

2,074

-3%

Europe **

2,011

2,077

-3%

587

475

442

+33%

Africa

531

445

+19%

643

474

544

+18%

Americas

559

513

+9%

611

573

520

+18%

Rest of world

592

513

+15%

3,858

3,528

3,580

+8%

Total consolidated sales

3,693

3,547

+4%

576

634

635

-9%

Includes bulk sales

605

629

-4%

1,449

1,243

1,162

+25%

Includes trading

1,346

1,169

+15%

* includes share of TotalErg.

** restated historical amounts.

Adjustment items

Adjustments to operating income

2Q14	Â	1Q14	Â	2Q13	Â	In millions of dollars	Â	1H14	Â	1H13
(62)	Â	(115)	Â	(49)	Â	Special items affecting operating income	Â	(177)	Â	(56)
-	Â	-	Â	-	Â	- Restructuring charges	Â	-	Â	(2)
(40)		-		-		- Impairments		(40)		(5)
(22)	Â	(115)	Â	(49)	Â	- Other	Â	(137)	Â	(49)
117	Â	(181)	Â	(762)	Â	Pre-tax inventory effect : FIFO vs. replacement cost	Â	(64)	Â	(878)
(36)	Â	26	Â	(42)	Â	Effect of changes in fair value	Â	(10)	Â	(39)
Â	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
19	Â	(270)	Â	(853)	Â	Total adjustments affecting operating income	Â	(251)	Â	(973)

Adjustments to net income (Group share)

2Q14	Â	1Q14	Â	2Q13	Â	In millions of dollars	Â	1H14	Â	1H13
(98)	Â	124	Â	339	Â	Special items affecting net income (Group share)	Â	26	Â	(1,344)
-	Â	599	Â	372	Â	= Gain (loss) on asset sales	Â	599	Â	(1,274)
(5)	Â	-	Â	-	Â	- Restructuring charges	Â	(5)	Â	(33)
(76)		(350)		-		- Impairments		(426)		(4)
(17)	Â	(125)	Â	(33)	Â	- Other	Â	(142)	Â	(33)
80	Â	(137)	Â	(525)	Â	After-tax inventory effect : FIFO vs. replacement cost	Â	(57)	Â	(593)
(29)	Â	21	Â	(31)	Â	Effect of changes in fair value	Â	(8)	Â	(30)
Â	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
(47)	Â	8	Â	(217)	Â	Total adjustments affecting net income	Â	(39)	Â	(1,967)

Effective tax rates

2Q14	Â	1Q14	Â	2Q13	Â	Effective tax rate*	Â	1H14	Â	1H13
52.3%	Â	59.5%	Â	58.2%	Â	Upstream	Â	56.3%	Â	60.6%
55.1%	Â	57.7%	Â	55.3%	Â	Group	Â	56.5%	Â	57.4%

* tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

Investments - Divestments

2Q14

1Q14

2Q13

2Q14
vs
2Q13

Expressed in millions of dollars

1H14

1H13

1H14
vs
1H13

7,193

5,202

6,449

+12%

Investments excluding acquisitions

12,395

12,864

-4%

362

319

518

-30%

- Capitalized exploration

681

996

-32%

1,075

261

367

- Increase in non-current loans

1,336

991

+35%

(430)

(364)

(357)

+20%

- Repayment of non-current loans

(794)

(616)

+29%

1,100

299

653

+68%

Acquisitions

1,399

1,883

-26%

201

1,476

1,393

-86%

Asset sales

1,677

1,947

-14%

126

(7)

Other transactions with non-controlling interests

126

464

-73%

7,966

4,025

5,716

+39%

Net investments*

11,991

12,336

-3%

* Net investments = investments including acquisitions â€“ asset sales â€“ other transactions with non-controlling interests.

Net-debt-to-equity ratio

in millions of dollars	Â	6/30/2014	Â	3/31/2014	Â	6/30/2013
Current borrowings	Â	13,525	Â	11,676	Â	13,119
Net current financial assets		(531)		(522)		(609)
Net financial assets classified as held for sale		(62)		(17)		1,014
Non-current financial debt		39,433		37,506		29,557
Hedging instruments of non-current debt		(1,973)		(1,758)		(1,708)
Cash and cash equivalents	Â	(22,166)	Â	(22,787)	Â	(15,118)
Net debt	Â	28,226	Â	24,098	Â	26,255
Â	Â	Â	Â	Â	Â	Â
Shareholdersâ€™ equity		102,872		103,136		94,790
Estimated dividend payable		(1,894)		(3,817)		(1,750)
Non-controlling interests	Â	3,344	Â	3,248	Â	2,225
Equity	Â	104,322	Â	102,567	Â	95,265
Â	Â	Â	Â	Â	Â	Â
Net-debt-to-equity ratio	Â	27.1%	Â	23.5%	Â	27.6%

2014 sensitivities*

Â	Scenario	Change	Impact on adjusted operating income (e)	Impact on adjusted net operating income (e)
Dollar	1.30 $/â‚¬	+0.1 $ per â‚¬	-0.7 B$	-0.3 B$
Brent	100 $/b	+1 $/b	+0.30 B$	+0.15 B$
European refining margin index (ERMI)	30 $/t	+1 $/t	+0.08 B$	+0.05 B$

*Sensitivities are revised once per year upon publication of the previous yearâ€™s fourth quarter results. Following the change to dollar-denominated reporting, effective January 1, 2014, the â‚¬-$ sensitivity has been changed. The impact of the â‚¬-$ sensitivity on operating income and on net operating income is 60% and 80% attributable to the Refining & Chemicals segment, respectively.

Sensitivities are estimates based on assumptions about the Groupâ€™s portfolio in 2014. Actual results could vary significantly from estimates based on the application of these sensitivities.

Return on average capital employed

Twelve months ended June 30, 2014

in millions of dollars	Â	Upstream	Â	Refining & Chemicals	Â	Marketing & Services	Â	Â	Group
Adjusted net operating income	Â	12,295	Â	1,649	Â	1,409			14,431
Capital employed at 6/30/2013*		91,097		20,924		9,838			118,852
Capital employed at 6/30/2014*	Â	103,572	Â	19,265	Â	10,324			129,967
ROACE	Â	12.6%	Â	8.2%	Â	14.0%			11.6%

Twelve months ended March 31, 2014

in millions of dollars	Â	Upstream	Â	Refining & Chemicals	Â	Marketing & Services	Â	Â	Group
Adjusted net operating income	Â	12,285	Â	1,766	Â	1,483			14,863
Capital employed at 3/31/2013*		86,034		21,860		9,610			116,094
Capital employed at 3/31/2014*	Â	97,924	Â	18,516	Â	10,314			126,068
ROACE	Â	13.4%	Â	8.7%	Â	14.9%			12.3%

Full-year 2013

in millions of dollars	Â	Upstream	Â	Refining & Chemicals	Â	Marketing & Services	Â	Â	Group
Adjusted net operating income	Â	12,450	Â	1,857	Â	1,554			15,230
Capital employed at 12/31/2012*		84,260		20,783		9,232			111,080
Capital employed at 12/31/2013*	Â	95,529	Â	19,752	Â	10,051			122,451
ROACE	Â	13.8%	Â	9.2%	Â	16.1%			13.0%

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

¹ TOTAL changed the presentation currency of the Groupâ€™s Consolidated Financial Statements from the euro to the US dollar, effective January 1, 2014, to make its financial information more readable by better reflecting the performance of its activities, which are carried out mainly in US dollars. Comparative 2013 information has been restated.

²Definition of adjusted results on page 2 â€“ euro amounts represent dollar amounts converted at the average â‚¬-$ exchange rate for the period: 1.3711 $/â‚¬ in the second quarter 2014, 1.3062 $/â‚¬ in the second quarter 2013, 1.3696 $/â‚¬ in the first quarter 2014, 1.3703 $/â‚¬ in the first half 2014 and 1.3134 $/â‚¬ in the first half 2013.

³Group share.

⁴The ex-dividend date will be December 15, 2014, and the payment date will be December 17, 2014.

⁵ 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 16 and the inventory valuation effect is explained on page 13.

⁶Including acquisitions.

⁷Net investments = investments including acquisitions â€“ asset sales â€“ other transactions with non-controlling interests.

⁸ Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.

⁹ Defined as: (tax on adjusted net operating income) / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

¹⁰ Detail shown on page 13.

¹¹ Detail shown on page 16.

¹² Detail shown on page 17.

¹³ The Groupâ€™s interest in Novatek was 18.0% at June 30, 2014.

¹⁴ Net investments = investments including acquisitions and changes in non-current loans â€“ asset sales â€“ other transactions with non-controlling interests.

¹⁵ Cash flow from operations at replacement cost before changes in working capital.

¹⁶ Net cash flow = cash flow from operations - net investments (including other transactions with non-controlling interests).

¹⁷ Detail shown on page 18.

¹⁸ Defined as: (tax on adjusted net operating income) / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

¹⁹ Detail shown on page 13.

²⁰ Detail shown on page 16.

²¹ Detail shown on page 17.

²² The Groupâ€™s interest in Novatek was 18.0% at June 30, 2014

²³ Net investments = investments including acquisitions and changes in non-current loans â€“ asset sales â€“ other transactions with non-controlling interests.

²⁴ Cash flow from operations at replacement cost before changes in working capital.

²⁵ Net cash flow = cash flow from operations - net investments (including other transactions with non-controlling interests).

²⁶ Detail shown on page 18.

²⁷ Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.

²⁸ Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.

²⁹ Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.

³⁰ Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.

Total financial statements

Second quarter 2014 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME	Â		Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
						Â
(M$) ^(a)	Â	2^nd quarter 2014	Â	1^st quarter 2014	Â	2^nd quarter 2013
Sales		62,561		60,687		61,345
Excise taxes		(6,354)		(5,832)		(5,839)
Revenues from sales		56,207		54,855		55,506
Purchases, net of inventory variation		(40,371)		(38,332)		(39,631)
Other operating expenses		(7,229)		(7,364)		(7,288)
Exploration costs		(301)		(619)		(354)
Depreciation, depletion and amortization of tangible assets and mineral interests		(2,929)		(2,745)		(2,534)
Other income		96		1,100		462
Other expense		(163)		(149)		(120)
Financial interest on debt		(266)		(201)		(238)
Financial income from marketable securities & cash equivalents		31		19		18
Cost of net debt		(235)		(182)		(220)
Other financial income		265		161		206
Other financial expense		(183)		(166)		(179)
Equity in net income (loss) of affiliates		874		473		794
Income taxes	Â	(2,902)	Â	(3,597)	Â	(3,229)
Consolidated net income	Â	3,129	Â	3,435	Â	3,413
Group share		3,104		3,335		3,364
Non-controlling interests	Â	25	Â	100	Â	49
Earnings per share ($)	Â	1.37	Â	1.47	Â	1.49
Fully-diluted earnings per share ($)	Â	1.36	Â	1.46	Â	1.48
^(a) Except for per share amounts.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	Â		Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
						Â
(M$)	Â	2^nd quarter 2014	Â	1^st quarter 2014	Â	2^nd quarter 2013
Consolidated net income	Â	3,129	Â	3,435	Â	3,413
Other comprehensive income
						Â
Actuarial gains and losses		(416)		(199)		(248)
Tax effect		154		57		95
Currency translation adjustment generated by the mother company	Â	(732)	Â	3	Â	1,613
Items not potentially reclassifiable to profit and loss	Â	(994)	Â	(139)	Â	1,460
Currency translation adjustment		512		36		(988)
Available for sale financial assets		(6)		3		8
Cash flow hedge		30		35		80
Share of other comprehensive income of equity affiliates, net amount		436		(456)		(541)
Other		(4)		(3)		(1)
Tax effect	Â	(5)	Â	(13)	Â	(32)
Items potentially reclassifiable to profit and loss	Â	963	Â	(398)	Â	(1,474)
Total other comprehensive income (net amount)	Â	(31)	Â	(537)	Â	(14)
Â	Â	Â	Â	Â	Â	Â
Comprehensive income	Â	3,098	Â	2,898	Â	3,399
- Group share		3,078		2,801		3,368
- Non-controlling interests		20		97		31

CONSOLIDATED STATEMENT OF INCOME	Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
				Â
(M$) ^(a)	Â	1^st half 2014	Â	1^st half 2013
Sales		123,248		124,906
Excise taxes		(12,186)		(11,380)
Revenues from sales		111,062		113,526
Purchases, net of inventory variation		(78,703)		(79,950)
Other operating expenses		(14,593)		(14,482)
Exploration costs		(920)		(760)
Depreciation, depletion and amortization of tangible assets and mineral interests		(5,674)		(5,387)
Other income		1,196		504
Other expense		(312)		(2,141)
Financial interest on debt		(467)		(461)
Financial income from marketable securities & cash equivalents		50		46
Cost of net debt		(417)		(415)
Other financial income		426		342
Other financial expense		(349)		(348)
Equity in net income (loss) of affiliates		1,347		1,743
Income taxes	Â	(6,499)	Â	(7,204)
Consolidated net income	Â	6,564	Â	5,428
Group share		6,439		5,312
Non-controlling interests	Â	125	Â	116
Earnings per share ($)	Â	2.84	Â	2.35
Fully-diluted earnings per share ($)	Â	2.82	Â	2.34

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
				Â
(M$)	Â	1^st half 2014	Â	1^st half 2013
Consolidated net income	Â	6,564	Â	5,428
Other comprehensive income
				Â
Actuarial gains and losses		(615)		(25)
Tax effect		211		8
Currency translation adjustment generated by the mother company	Â	(729)	Â	(599)
Items not potentially reclassifiable to profit and loss	Â	(1,133)	Â	(616)
Currency translation adjustment		548		(391)
Available for sale financial assets		(3)		3
Cash flow hedge		65		95
Share of other comprehensive income of equity affiliates, net amount		(20)		(494)
Other		(7)		(12)
Tax effect	Â	(18)	Â	(35)
Items potentially reclassifiable to profit and loss	Â	565	Â	(834)
Total other comprehensive income (net amount)	Â	(568)	Â	(1,450)
Â	Â	Â	Â	Â
Comprehensive income	Â	5,996	Â	3,978
- Group share		5,879		3,908
- Non-controlling interests		117		70

CONSOLIDATED BALANCE SHEET	Â		Â		Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
								Â
(M$)	Â	June 30, 2014 Â	Â	March 31, 2014 Â	Â	December 31, 2013 Â	Â	June 30, 2013 Â
ASSETS
Non-current assets
Intangible assets, net		18,995		18,899		18,395		17,424
Property, plant and equipment, net		108,468		106,377		104,480		93,387
Equity affiliates : investments and loans		21,256		19,951		20,417		19,037
Other investments		1,786		2,091		1,666		1,583
Hedging instruments of non-current financial debt		1,973		1,758		1,418		1,708
Deferred income taxes		2,842		2,933		3,838		3,704
Other non-current assets	Â	4,263	Â	4,265	Â	4,406	Â	3,813
Total non-current assets	Â	159,583	Â	156,274	Â	154,620	Â	140,656
Current assets
Inventories, net		23,484		21,755		22,097		20,196
Accounts receivable, net		21,698		23,359		23,422		25,587
Other current assets		16,519		15,873		14,892		14,850
Current financial assets		1,003		872		739		668
Cash and cash equivalents		22,166		22,787		20,200		15,118
Assets classified as held for sale	Â	4,317	Â	2,472	Â	3,253	Â	5,104
Total current assets	Â	89,187	Â	87,118	Â	84,603	Â	81,523
Total assets		248,770		243,392		239,223		222,179
								Â
LIABILITIES & SHAREHOLDERS' EQUITY
								Â
Shareholders' equity
Common shares		7,511		7,496		7,493		7,490
Paid-in surplus and retained earnings		101,100		101,568		98,254		94,637
Currency translation adjustment		(1,436)		(1,625)		(1,203)		(3,063)
Treasury shares	Â	(4,303)	Â	(4,303)	Â	(4,303)	Â	(4,274)
Total shareholders' equity - Group Share	Â	102,872	Â	103,136	Â	100,241	Â	94,790
Non-controlling interests	Â	3,344	Â	3,248	Â	3,138	Â	2,225
Total shareholders' equity	Â	106,216	Â	106,384	Â	103,379	Â	97,015
Non-current liabilities
Deferred income taxes		16,397		17,045		17,850		16,736
Employee benefits		4,725		4,362		4,235		4,751
Provisions and other non-current liabilities		17,445		17,582		17,517		14,464
Non-current financial debt	Â	39,433	Â	37,506	Â	34,574	Â	29,557
Total non-current liabilities	Â	78,000	Â	76,495	Â	74,176	Â	65,508
Current liabilities
Accounts payable		28,902		28,621		30,282		26,380
Other creditors and accrued liabilities		19,994		19,097		18,948		18,162
Current borrowings		13,525		11,676		11,193		13,119
Other current financial liabilities		472		350		381		59
Liabilities directly associated with the assets classified as held for sale	Â	1,661	Â	769	Â	864	Â	1,936
Total current liabilities	Â	64,554	Â	60,513	Â	61,668	Â	59,656
Total liabilities and shareholders' equity		248,770		243,392		239,223		222,179

CONSOLIDATED STATEMENT OF CASH FLOW	Â		Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
						Â
(M$)	Â	2^nd quarter 2014	Â	1^st quarter 2014	Â	2^nd quarter 2013
CASH FLOW FROM OPERATING ACTIVITIES
						Â
Consolidated net income		3,129		3,435		3,413
Depreciation, depletion and amortization		3,087		3,174		2,759
Non-current liabilities, valuation allowances and deferred taxes		(156)		399		(108)
Impact of coverage of pension benefit plans		-		-		-
(Gains) losses on disposals of assets		(17)		(1,023)		(363)
Undistributed affiliates' equity earnings		(125)		11		94
(Increase) decrease in working capital		(771)		(685)		(1,025)
Other changes, net	Â	130	Â	27	Â	68
Cash flow from operating activities		5,277		5,338		4,838
						Â
CASH FLOW USED IN INVESTING ACTIVITIES
						Â
Intangible assets and property, plant and equipment additions		(6,800)		(5,448)		(6,836)
Acquisitions of subsidiaries, net of cash acquired		(414)		-		-
Investments in equity affiliates and other securities		(434)		(156)		(256)
Increase in non-current loans	Â	(1,075)	Â	(261)	Â	(367)
Total expenditures		(8,723)		(5,865)		(7,459)
Proceeds from disposals of intangible assets and property, plant and equipment		135		1,020		1,106
Proceeds from disposals of subsidiaries, net of cash sold		-		-		264
Proceeds from disposals of non-current investments		66		456		23
Repayment of non-current loans	Â	430	Â	364	Â	357
Total divestments	Â	631	Â	1,840	Â	1,750
Cash flow used in investing activities		(8,092)		(4,025)		(5,709)
						Â
CASH FLOW USED IN FINANCING ACTIVITIES
						Â
Issuance (repayment) of shares:
- Parent company shareholders		304		33		432
- Treasury shares		-		-		-
Dividends paid:
- Parent company shareholders		(1,901)		(1,835)		(1,772)
- Non-controlling interests		(139)		(7)		(92)
Other transactions with non-controlling interests		126		-		(7)
Net issuance (repayment) of non-current debt		2,931		4,189		734
Increase (decrease) in current borrowings		956		(1,167)		(894)
Increase (decrease) in current financial assets and liabilities		65		(117)		6
Cash flow used in financing activities	Â	2,342	Â	1,096	Â	(1,593)
Net increase (decrease) in cash and cash equivalents		(473)		2,409		(2,464)
Effect of exchange rates		(148)		178		404
Cash and cash equivalents at the beginning of the period	Â	22,787	Â	20,200	Â	17,178
Cash and cash equivalents at the end of the period	Â	22,166	Â	22,787	Â	15,118

CONSOLIDATED STATEMENT OF CASH FLOW	Â		Â
TOTAL
(unaudited, 2013 data converted from the Euro to the US Dollar)
				Â
(M$)	Â	1^st half 2014	Â	1^st half 2013
CASH FLOW FROM OPERATING ACTIVITIES
				Â
Consolidated net income		6,564		5,428
Depreciation, depletion and amortization		6,261		5,805
Non-current liabilities, valuation allowances and deferred taxes		243		(49)
Impact of coverage of pension benefit plans		-		-
(Gains) losses on disposals of assets		(1,040)		1,510
Undistributed affiliates' equity earnings		(114)		(372)
(Increase) decrease in working capital		(1,456)		(2,751)
Other changes, net	Â	157	Â	180
Cash flow from operating activities		10,615		9,751
				Â
CASH FLOW USED IN INVESTING ACTIVITIES
				Â
Intangible assets and property, plant and equipment additions		(12,248)		(13,325)
Acquisitions of subsidiaries, net of cash acquired		(414)		(21)
Investments in equity affiliates and other securities		(590)		(1,026)
Increase in non-current loans	Â	(1,336)	Â	(991)
Total expenditures		(14,588)		(15,363)
Proceeds from disposals of intangible assets and property, plant and equipment		1,155		1,660
Proceeds from disposals of subsidiaries, net of cash sold		-		264
Proceeds from disposals of non-current investments		522		23
Repayment of non-current loans	Â	794	Â	616
Total divestments	Â	2,471	Â	2,563
Cash flow used in investing activities		(12,117)		(12,800)
				Â
CASH FLOW USED IN FINANCING ACTIVITIES
				Â
Issuance (repayment) of shares:
- Parent company shareholders		337		432
- Treasury shares		-		-
Dividends paid:		-		-
- Parent company shareholders		(3,736)		(3,532)
- Non-controlling interests		(146)		(94)
Other transactions with non-controlling interests		126		464
Net issuance (repayment) of non-current debt		7,120		4,499
Increase (decrease) in current borrowings		(211)		(5,162)
Increase (decrease) in current financial assets and liabilities		(52)		1,184
Cash flow used in financing activities	Â	3,438	Â	(2,209)
Net increase (decrease) in cash and cash equivalents		1,936		(5,258)
Effect of exchange rates		30		(33)
Cash and cash equivalents at the beginning of the period	Â	20,200	Â	20,409
Cash and cash equivalents at the end of the period	Â	22,166	Â	15,118

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY													Â		Â		Â
TOTAL	Â		Â		Â		Â		Â		Â
(unaudited, 2013 data converted from the Euro to the US Dollar)											Â	Â	Â	Â	Â	Â	Â	Â
		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$)	Â	Number	Â	Amount	Â	Â	Â	Â	Â	Number	Â	Amount	Â	Â	Â	Â	Â	Â
As of January 1, 2013	Â	2,365,933,146	Â	7,454	Â	92,485	Â	(1,696)	Â	(108,391,639)	Â	(4,274)	Â	93,969	Â	1,689	Â	95,658
Net income of the first half 2013		-		-		5,312		-		-		-		5,312		116		5,428
Other comprehensive Income		-		-		(37)		(1,367)		-		-		(1,404)		(46)		(1,450)
Comprehensive Income		-		-		5,275		(1,367)		-		-		3,908		70		3,978
Dividend		-		-		(3,526)		-		-		-		(3,526)		(94)		(3,620)
Issuance of common shares		10,802,845		36		396		-		-		-		432		-		432
Purchase of treasury shares		-		-		-		-		-		-		-		-		-
Sale of treasury shares ⁽¹⁾		-		-		-		-		980		-		-		-		-
Share-based payments		-		-		97		-		-		-		97		-		97
Share cancellation		-		-		-		-		-		-		-		-		-
Other operations with non-controlling interests		-		-		(92)		-		-		-		(92)		556		464
Other items		-		-		2		-		-		-		2		4		6
As of June 30, 2013	Â	2,376,735,991	Â	7,490	Â	94,637	Â	(3,063)	Â	(108,390,659)	Â	(4,274)	Â	94,790	Â	2,225	Â	97,015
Net income from Jully 1 to December 31, 2013		-		-		5,916		-		-		-		5,916		177		6,093
Other comprehensive Income		-		-		510		1,859		-		-		2,369		(10)		2,359
Comprehensive Income		-		-		6,426		1,859		-		-		8,285		167		8,452
Dividend		-		-		(3,590)		-		-		-		(3,590)		(62)		(3,652)
Issuance of common shares		942,169		3		50		-		-		-		53		-		53
Purchase of treasury shares		-		-		-		-		(4,414,200)		(238)		(238)		-		(238)
Sale of treasury shares ⁽¹⁾		-		-		(209)		-		3,590,411		209		-		-		-
Share-based payments		-		-		92		-		-		-		92		-		92
Share cancellation		-		-		-		-		-		-		-		-		-
Other operations with non-controlling interests		-		-		841		1		-		-		842		799		1,641
Other items		-		-		7		-		-		-		7		9		16
As of December 31, 2013	Â	2,377,678,160	Â	7,493	Â	98,254	Â	(1,203)	Â	(109,214,448)	Â	(4,303)	Â	100,241	Â	3,138	Â	103,379
Net income of the first half 2014		-		-		6,439		-		-		-		6,439		125		6,564
Other comprehensive Income		-		-		(329)		(231)		-		-		(560)		(8)		(568)
Comprehensive Income		-		-		6,110		(231)		-		-		5,879		117		5,996
Dividend		-		-		(3,794)		-		-		-		(3,794)		(146)		(3,940)
Issuance of common shares		5,192,417		18		319		-		-		-		337		-		337
Purchase of treasury shares		-		-		-		-		-		-		-		-		-
Sale of treasury shares ⁽¹⁾		-		-		-		-		7,200		-		-		-		-
Share-based payments		-		-		82		-		-		-		82		-		82
Share cancellation		-		-		-		-		-		-		-		-		-
Other operations with non-controlling interests		-		-		128		(2)		-		-		126		183		309
Other items		-		-		1		-		-		-		1		52		53
As of June 30, 2014	Â	2,382,870,577	Â	7,511	Â	101,100	Â	(1,436)	Â	(109,207,248)	Â	(4,303)	Â	102,872	Â	3,344	Â	106,216
																		Â
⁽¹⁾ Treasury shares related to the restricted stock grants.

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited, 2013 data converted from the Euro to the US Dollar)

2^nd quarter 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,205

28,143

28,213

62,561

Intersegment sales

8,057

11,740

402

(20,245)

Excise taxes

(1,281)

(5,073)

(6,354)

Revenues from sales

14,262

38,602

23,542

(20,245)

56,207

Operating expenses

(7,174)

(37,744)

(22,966)

(262)

20,245

(47,901)

Depreciation, depletion and amortization of tangible assets and mineral interests

(2,314)

(408)

(198)

(9)

(2,929)

Operating income

4,774

450

378

(225)

5,377

Equity in net income (loss) of affiliates and other items

719

889

Tax on net operating income

(2,471)

(114)

(128)

(218)

(2,931)

Net operating income

3,022

401

348

(436)

3,335

Net cost of net debt

(206)

Non-controlling interests

(25)

Net income

3,104

2^nd quarter 2014 (adjustments) ^(a)

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

(36)

Intersegment sales

Excise taxes

Revenues from sales

(36)

Operating expenses

122

(27)

Depreciation, depletion and amortization of tangible assets and mineral interests

(40)

Operating income^(b)

(36)

(27)

Equity in net income (loss) of affiliates and other items

(32)

(7)

(39)

Tax on net operating income

(50)

(33)

Net operating income^(b)

(29)

(24)

(53)

Net cost of net debt

Non-controlling interests

Net income

(47)

^(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

122

(5)

On net operating income

(3)

2^ndquarter 2014 (adjusted)

(M$) ^(a)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,241

28,143

28,213

62,597

Intersegment sales

8,057

11,740

402

(20,245)

Excise taxes

(1,281)

(5,073)

(6,354)

Revenues from sales

14,298

38,602

23,542

(20,245)

56,243

Operating expenses

(7,174)

(37,866)

(22,939)

(262)

20,245

(47,996)

Depreciation, depletion and amortization of tangible assets and mineral interests

(2,314)

(368)

(198)

(9)

(2,889)

Adjusted operating income

4,810

368

405

(225)

5,358

Equity in net income (loss) of affiliates and other items

719

105

928

Tax on net operating income

(2,478)

(64)

(138)

(218)

(2,898)

Adjusted net operating income

3,051

401

372

(436)

3,388

Net cost of net debt

(206)

Non-controlling interests

(31)

Adjusted net income

3,151

Adjusted fully-diluted earnings per share ($)

1.38

(a) Except for earnings per share.

2^nd quarter 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Total expenditures

7,999

475

203

8,723

Total divestments

568

631

Cash flow from operating activities

4,805

(133)

304

301

5,277

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited, 2013 data converted from the Euro to the US Dollar)

1^st quarter 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,666

27,539

26,470

60,687

Intersegment sales

7,436

11,956

408

(19,849)

Excise taxes

(1,160)

(4,672)

(5,832)

Revenues from sales

14,102

38,335

22,206

(19,849)

54,855

Operating expenses

(6,514)

(37,792)

(21,689)

(169)

19,849

(46,315)

Depreciation, depletion and amortization of tangible assets and mineral interests

(2,176)

(378)

(182)

(9)

(2,745)

Operating income

5,412

165

335

(117)

5,795

Equity in net income (loss) of affiliates and other items

1,327

(8)

1,419

Tax on net operating income

(3,492)

(80)

(74)

(3,640)

Net operating income

3,247

225

247

(145)

3,574

Net cost of net debt

(139)

Non-controlling interests

(100)

Net income

3,335

1^st quarter 2014 (adjustments) ^(a)

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

Intersegment sales

Excise taxes

Revenues from sales

Operating expenses

(115)

(163)

(18)

(296)

Depreciation, depletion and amortization of tangible assets and mineral interests

Operating income^(b)

(89)

(163)

(18)

(270)

Equity in net income (loss) of affiliates and other items

280

(8)

272

Tax on net operating income

(36)

Net operating income^(b)

155

(121)

(14)

Net cost of net debt

Non-controlling interests

(12)

Net income

^(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

(163)

(18)

On net operating income

(111)

(14)

1^stquarter 2014 (adjusted)

(M$) ^(a)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,640

27,539

26,470

60,661

Intersegment sales

7,436

11,956

408

(19,849)

Excise taxes

(1,160)

(4,672)

(5,832)

Revenues from sales

14,076

38,335

22,206

(19,849)

54,829

Operating expenses

(6,399)

(37,629)

(21,671)

(169)

19,849

(46,019)

Depreciation, depletion and amortization of tangible assets and mineral interests

(2,176)

(378)

(182)

(9)

(2,745)

Adjusted operating income

5,501

328

353

(117)

6,065

Equity in net income (loss) of affiliates and other items

1,047

(8)

1,147

Tax on net operating income

(3,456)

(44)

(84)

(74)

(3,658)

Adjusted net operating income

3,092

346

261

(145)

3,554

Net cost of net debt

(139)

Non-controlling interests

(88)

Adjusted net income

3,327

Adjusted fully-diluted earnings per share ($)

1.46

(a) Except for earnings per share.

1^st quarter 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Total expenditures

5,311

250

276

5,865

Total divestments

1,799

1,840

Cash flow from operating activities

3,811

1,593

(155)

5,338

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited, 2013 data converted from the Euro to the US Dollar)

2^nd quarter 2013

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,240

28,160

26,851

61,345

Intersegment sales

8,508

12,809

1,058

(22,410)

Excise taxes

(1,091)

(4,748)

(5,839)

Revenues from sales

14,748

39,878

23,161

129

(22,410)

55,506

Operating expenses

(7,195)

(39,672)

(22,541)

(275)

22,410

(47,273)

Depreciation, depletion and amortization of tangible assets and mineral interests

(1,974)

(390)

(160)

(10)

(2,534)

Operating income

5,579

(184)

460

(156)

5,699

Equity in net income (loss) of affiliates and other items

1,022

1,163

Tax on net operating income

(3,160)

(138)

(57)

(3,267)

Net operating income

3,441

(34)

373

(185)

3,595

Net cost of net debt

(182)

Non-controlling interests

(49)

Net income

3,364

2^nd quarter 2013 (adjustments) ^(a)

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

(42)

Intersegment sales

Excise taxes

Revenues from sales

(42)

Operating expenses

(704)

(107)

(811)

Depreciation, depletion and amortization of tangible assets and mineral interests

Operating income^(b)

(42)

(704)

(107)

(853)

Equity in net income (loss) of affiliates and other items

331

(48)

283

Tax on net operating income

111

200

345

Net operating income^(b)

400

(552)

(73)

(225)

Net cost of net debt

Non-controlling interests

Net income

(217)

^(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

(655)

(107)

On net operating income

(460)

(73)

2^ndquarter 2013 (adjusted)

(M$) ^(a)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

6,282

28,160

26,851

61,387

Intersegment sales

8,508

12,809

1,058

(22,410)

Excise taxes

(1,091)

(4,748)

(5,839)

Revenues from sales

14,790

39,878

23,161

129

(22,410)

55,548

Operating expenses

(7,195)

(38,968)

(22,434)

(275)

22,410

(46,462)

Depreciation, depletion and amortization of tangible assets and mineral interests

(1,974)

(390)

(160)

(10)

(2,534)

Adjusted operating income

5,621

520

567

(156)

6,552

Equity in net income (loss) of affiliates and other items

691

110

880

Tax on net operating income

(3,271)

(112)

(172)

(57)

(3,612)

Adjusted net operating income

3,041

518

446

(185)

3,820

Net cost of net debt

(182)

Non-controlling interests

(57)

Adjusted net income

3,581

Adjusted fully-diluted earnings per share ($)

1.57

(a) Except for earnings per share.

2^nd quarter 2013

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Total expenditures

6,603

499

318

7,459

Total divestments

1,456

272

1,750

Cash flow from operating activities

2,764

1,713

542

(181)

4,838

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited, 2013 data converted from the Euro to the US Dollar)

1^st half 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

12,871

55,682

54,683

123,248

Intersegment sales

15,493

23,696

810

(40,094)

Excise taxes

(2,441)

(9,745)

(12,186)

Revenues from sales

28,364

76,937

45,748

107

(40,094)

111,062

Operating expenses

(13,688)

(75,536)

(44,655)

(431)

40,094

(94,216)

Depreciation, depletion and amortization of tangible assets and mineral interests

(4,490)

(786)

(380)

(18)

(5,674)

Operating income

10,186

615

713

(342)

11,172

Equity in net income (loss) of affiliates and other items

2,046

119

2,308

Tax on net operating income

(5,963)

(108)

(208)

(292)

(6,571)

Net operating income

6,269

626

595

(581)

6,909

Net cost of net debt

(345)

Non-controlling interests

(125)

Net income

6,439

1^st half 2014 (adjustments) ^(a)

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

(10)

Intersegment sales

Excise taxes

Revenues from sales

(10)

Operating expenses

(115)

(41)

(45)

(201)

Depreciation, depletion and amortization of tangible assets and mineral interests

(40)

Operating income^(b)

(125)

(81)

(45)

(251)

Equity in net income (loss) of affiliates and other items

280

(40)

(7)

233

Tax on net operating income

(29)

(15)

Net operating income^(b)

126

(121)

(38)

(33)

Net cost of net debt

Non-controlling interests

(6)

Net income

(39)

^(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

(41)

(23)

On net operating income

(34)

(17)

1^sthalf 2014 (adjusted)

(M$) ^(a)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

12,881

55,682

54,683

123,258

Intersegment sales

15,493

23,696

810

(40,094)

Excise taxes

(2,441)

(9,745)

(12,186)

Revenues from sales

28,374

76,937

45,748

107

(40,094)

111,072

Operating expenses

(13,573)

(75,495)

(44,610)

(431)

40,094

(94,015)

Depreciation, depletion and amortization of tangible assets and mineral interests

(4,490)

(746)

(380)

(18)

(5,634)

Adjusted operating income

10,311

696

758

(342)

11,423

Equity in net income (loss) of affiliates and other items

1,766

159

2,075

Tax on net operating income

(5,934)

(108)

(222)

(292)

(6,556)

Adjusted net operating income

6,143

747

633

(581)

6,942

Net cost of net debt

(345)

Non-controlling interests

(119)

Adjusted net income

6,478

Adjusted fully-diluted earnings per share ($)

2.84

(a) Except for earnings per share.

1^st half 2014

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Total expenditures

13,310

725

479

14,588

Total divestments

2,367

2,471

Cash flow from operating activities

8,616

1,460

393

146

10,615

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited, 2013 data converted from the Euro to the US Dollar)

1^st half 2013

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

13,439

56,709

54,583

175

124,906

Intersegment sales

18,195

25,901

1,201

102

(45,399)

Excise taxes

(2,187)

(9,193)

(11,380)

Revenues from sales

31,634

80,423

46,591

277

(45,399)

113,526

Operating expenses

(15,271)

(79,481)

(45,291)

(548)

45,399

(95,192)

Depreciation, depletion and amortization of tangible assets and mineral interests

(4,232)

(783)

(352)

(20)

(5,387)

Operating income

12,131

159

948

(291)

12,947

Equity in net income (loss) of affiliates and other items

(94)

157

100

Tax on net operating income

(6,984)

(282)

(28)

(7,277)

Net operating income

5,053

333

674

(290)

5,770

Net cost of net debt

(342)

Non-controlling interests

(116)

Net income

5,312

1^st half 2013 (adjustments) ^(a)

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

(39)

Intersegment sales

Excise taxes

Revenues from sales

(39)

Operating expenses

(794)

(135)

(929)

Depreciation, depletion and amortization of tangible assets and mineral interests

(5)

Operating income^(b)

(39)

(799)

(135)

(973)

Equity in net income (loss) of affiliates and other items

(1,544)

(61)

(13)

(1,618)

Tax on net operating income

338

238

620

Net operating income^(b)

(1,245)

(622)

(104)

(1,971)

Net cost of net debt

Non-controlling interests

Net income

(1,967)

^(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

(743)

(135)

On net operating income

(506)

(91)

1^sthalf 2013 (adjusted)

(M$) ^(a)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Non-Group sales

13,478

56,709

54,583

175

124,945

Intersegment sales

18,195

25,901

1,201

102

(45,399)

Excise taxes

(2,187)

(9,193)

(11,380)

Revenues from sales

31,673

80,423

46,591

277

(45,399)

113,565

Operating expenses

(15,271)

(78,687)

(45,156)

(548)

45,399

(94,263)

Depreciation, depletion and amortization of tangible assets and mineral interests

(4,232)

(778)

(352)

(20)

(5,382)

Adjusted operating income

12,170

958

1,083

(291)

13,920

Equity in net income (loss) of affiliates and other items

1,450

218

1,718

Tax on net operating income

(7,322)

(221)

(326)

(28)

(7,897)

Adjusted net operating income

6,298

955

778

(290)

7,741

Net cost of net debt

(342)

Non-controlling interests

(120)

Adjusted net income

7,279

Adjusted fully-diluted earnings per share ($)

3.20

(a) Except for earnings per share.

1^st half 2013

(M$)

Upstream

Refining & Chemicals

Marketing & Services

Corporate

Intercompany

Total

Total expenditures

13,544

1,202

564

15,363

Total divestments

2,174

308

2,563

Cash flow from operating activities

8,245

1,331

422

(247)

9,751

Reconciliation of the information by business segment with consolidated financial statements
TOTAL	Â		Â		Â
(unaudited, 2013 data converted from the Euro to the US Dollar)
						Â
2^nd quarter 2014 (M$)	Â	Adjusted	Â	Adjustments ^(a)	Â	Consolidated statement of income
Sales		62,597		(36)		62,561
Excise taxes		(6,354)		-		(6,354)
Revenues from sales		56,243		(36)		56,207
Purchases, net of inventory variation		(40,488)		117		(40,371)
Other operating expenses		(7,207)		(22)		(7,229)
Exploration costs		(301)		-		(301)
Depreciation, depletion and amortization of tangible assets and mineral interests		(2,889)		(40)		(2,929)
Other income		96		-		96
Other expense		(133)		(30)		(163)
Financial interest on debt		(266)		-		(266)
Financial income from marketable securities & cash equivalents		31		-		31
Cost of net debt		(235)		-		(235)
Other financial income		265		-		265
Other financial expense		(183)		-		(183)
Equity in net income (loss) of affiliates		883		(9)		874
Income taxes	Â	(2,869)	Â	(33)	Â	(2,902)
Consolidated net income		3,182		(53)		3,129
Group share		3,151		(47)		3,104
Non-controlling interests		31		(6)		25
						Â
^(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
						Â
2^nd quarter 2013 (M$)	Â	Adjusted	Â	Adjustments ^(a)	Â	Consolidated statement of income
Sales		61,387		(42)		61,345
Excise taxes		(5,839)		-		(5,839)
Revenues from sales		55,548		(42)		55,506
Purchases, net of inventory variation		(38,869)		(762)		(39,631)
Other operating expenses		(7,239)		(49)		(7,288)
Exploration costs		(354)		-		(354)
Depreciation, depletion and amortization of tangible assets and mineral interests		(2,534)		-		(2,534)
Other income		131		331		462
Other expense		(89)		(31)		(120)
Financial interest on debt		(238)		-		(238)
Financial income from marketable securities & cash equivalents		18		-		18
Cost of net debt		(220)		-		(220)
Other financial income		206		-		206
Other financial expense		(179)		-		(179)
Equity in net income (loss) of affiliates		811		(17)		794
Income taxes	Â	(3,574)	Â	345	Â	(3,229)
Consolidated net income		3,638		(225)		3,413
Group share		3,581		(217)		3,364
Non-controlling interests		57		(8)		49
						Â
^(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	Â		Â		Â
(unaudited, 2013 data converted from the Euro to the US Dollar)
						Â
1^st half 2014 (M$)	Â	Adjusted	Â	Adjustments ^(a)	Â	Consolidated statement of income
Sales		123,258		(10)		123,248
Excise taxes		(12,186)		-		(12,186)
Revenues from sales		111,072		(10)		111,062
Purchases, net of inventory variation		(78,639)		(64)		(78,703)
Other operating expenses		(14,456)		(137)		(14,593)
Exploration costs		(920)		-		(920)
Depreciation, depletion and amortization of tangible assets and mineral interests		(5,634)		(40)		(5,674)
Other income		548		648		1,196
Other expense		(263)		(49)		(312)
Financial interest on debt		(467)		-		(467)
Financial income from marketable securities & cash equivalents		50		-		50
Cost of net debt		(417)		-		(417)
Other financial income		426		-		426
Other financial expense		(349)		-		(349)
Equity in net income (loss) of affiliates		1,713		(366)		1,347
Income taxes	Â	(6,484)	Â	(15)	Â	(6,499)
Consolidated net income		6,597		(33)		6,564
Group share		6,478		(39)		6,439
Non-controlling interests		119		6		125
						Â
^(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
						Â
1^st half 2013 (M$)	Â	Adjusted	Â	Adjustments ^(a)	Â	Consolidated statement of income
Sales		124,945		(39)		124,906
Excise taxes		(11,380)		-		(11,380)
Revenues from sales		113,565		(39)		113,526
Purchases, net of inventory variation		(79,072)		(878)		(79,950)
Other operating expenses		(14,431)		(51)		(14,482)
Exploration costs		(760)		-		(760)
Depreciation, depletion and amortization of tangible assets and mineral interests		(5,382)		(5)		(5,387)
Other income		173		331		504
Other expense		(216)		(1,925)		(2,141)
Financial interest on debt		(461)		-		(461)
Financial income from marketable securities & cash equivalents		46		-		46
Cost of net debt		(415)		-		(415)
Other financial income		342		-		342
Other financial expense		(348)		-		(348)
Equity in net income (loss) of affiliates		1,767		(24)		1,743
Income taxes	Â	(7,824)	Â	620	Â	(7,204)
Consolidated net income		7,399		(1,971)		5,428
Group share		7,279		(1,967)		5,312
Non-controlling interests		120		(4)		116
						Â
^(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.