Total: Second Quarter and First Half 2016 Resul...

Total: Second Quarter and First Half 2016 Results123

Total

    2Q16  

Change
vs 2Q15

  1H16  

Change
vs 1H15

       
Adjusted net income1
- in billions of dollars (B$) 2.2 -30% 3.8 -33%
- in dollars per share 0.90 -33% 1.58 -36%
 
Operating cash flow before working capital changes1 (B$) 4.0 -25% 7.7 -23%
                 
 
Net income2 of 2.1 B$ in 2Q16
Net-debt-to-equity ratio of 30% at June 30, 2016
Hydrocarbon production of 2,424 kboe/d in the second quarter 2016
2Q16 interim dividend of 0.61 €/share payable in January 20173

Total’s  (Paris:FP) (LSE:TTA) (NYSE:TOT) Board of Directors met on July 27, 2016, to review the Group’s second quarter accounts. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

“Although still volatile, the Brent price has recovered since the start of the year and averaged $46 per barrel in the second quarter 2016. Total captured the benefit of this rebound, and adjusted net income rose to $2.2 billion in the second quarter 2016, an increase of 33% compared to the first quarter 2016.
In the Upstream, production increased by more than 5% compared to the second quarter 2015. Obtaining a 30% interest in the Al-Shaheen concession in Qatar for 25 years was a major success, strengthening our presence in the Middle East on a giant field with a long plateau and low technical costs.
In the Downstream, results and cash generation remained strong at the same level compared to the first quarter 2016. The acquisition of retail and logistics assets in East Africa strengthens our position as the leader in Africa for Marketing & Services.
Efforts to reduce operating costs are continuing to bear fruit and we will surpass the $2.4 billion cost reduction target for this year. In the first half, organic investments were $8.7 billion, and are expected to be $18-19 billion for the year.
As part of its ambition to become the responsible energy major, the Group expanded its portfolio with the acquisitions of Saft in the energy storage sector and Lampiris in gas and electricity distribution.
The Group confirms the strength of its balance sheet with a net-debt-to-equity ratio stable at 30% at the end of June 2016.”

Key figures456789

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  In millions of dollars, except effective tax rate,

earnings per share and number of shares

  1H16   1H15   1H16

vs

1H15

37,215   32,841   44,715   -17%   Sales   70,056   87,028   -20%
1,979   1,770   4,064   -51%   Adjusted operating income from business segments*   3,749   7,375   -49%
2,523   1,878   3,334   -24%   Adjusted net operating income from business segments   4,401   6,114   -28%
1,127   498   1,560   -28%   Upstream   1,625   2,919   -44%
1,018 1,128 1,349 -25% Refining & Chemicals 2,146 2,449 -12%
378   252   425   -11%   Marketing & Services   630   746   -16%
797   499   677   +18%   Contribution of equity affiliates to adjusted net income   1,296   1,311   -1%
21.8%   22.9%   39.6%   -   Group effective tax rate5*   22.3%   39.1%   -
2,174   1,636   3,085   -30%   Adjusted net income   3,810   5,687   -33%
0.90   0.68   1.34   -33%   Adjusted fully-diluted earnings per share (dollars)   1.58   2.47   -36%
0.79   0.62   1.21   -35%   Adjusted fully-diluted earnings per share (euros)**   1.41   2.21   -36%
2,379   2,350   2,292   +4%   Fully-diluted weighted-average shares (millions)   2,365   2,289   +3%
                             
2,088   1,606   2,971   -30%   Net income (Group share)   3,694   5,634   -34%
                             
4,566   4,908   6,590   -31%   Investments6   9,474   15,399   -38%
773   985   1,893   -59%   Divestments   1,758   4,877   -64%
3,790   3,923   4,616   -18%   Net investments7   7,713   10,441   -26%
4,059   4,615   5,148   -21%   Organic investments8   8,674   11,217   -23%
4,000   3,708   5,317   -25%   Operating cash flow before working capital changes9   7,708   9,952   -23%
2,882   1,881   4,732   -39%   Cash flow from operations   4,763   9,119   -48%

* 1Q15 data as republished in 2Q15 following the reclassification in the statement of income of certain taxes related to the participation in the ADCO concession. Details on adjustment items are shown in the business segments of the financial statements.
** Average €-$ exchange rate: 1.1292 in the second quarter 2016 and 1.1159 in the first half 2016.

Highlights since the beginning of the second quarter 201610

  • Obtained 30% interest in the giant Al-Shaheen field in Qatar for 25 years starting July 2017
  • Loading of first Angola LNG cargo following the plant restart
  • Took control of Saft in the energy storage sector following a successful tender offer
  • Acquired gas and electricity distributor Lampiris in Belgium
  • Acquired import terminals and retail network in Kenya, Uganda and Tanzania
  • Signed an agreement to supply 0.4 million tons of LNG per year to Japan’s Chugoku for a period of 17 years.
  • The new organizational structure includes the following appointments to the Executive Committee: Momar Nguer, President, Marketing & Services as of April 15, 2016; Namita Shah, Executive Vice President, People & Social Responsibility; Bernard Pinatel, President, Refining & Chemicals effective September 1, 2016. Philippe Sauquet becomes President, Gas, Renewables and Power and Executive Vice President, Strategy & Innovation.

Analysis of business segments

Upstream

> Environment – liquids and gas price realizations*

2Q16   1Q16   2Q15   2Q16

vs

2Q15

      1H16   1H15   1H16

vs

1H15

45.6   33.9   61.9   -26%   Brent ($/b)   39.8   57.8   -31%
43.0   31.0   58.2   -26%   Average liquids price ($/b)   36.8   53.8   -32%
3.43   3.46   4.67   -27%   Average gas price ($/Mbtu)   3.44   5.03   -32%
33.0   26.4   45.4   -27%   Average hydrocarbon price ($/boe)   29.6   43.6   -32%

* Consolidated subsidiaries, excluding fixed margins.

> Production

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Hydrocarbon production   1H16   1H15   1H16

vs

1H15

2,424   2,479   2,299   +5%   Combined production (kboe/d)   2,452   2,347   +4%
1,253   1,286   1,215   +3%   Liquids (kb/d)   1,269   1,227   +3%
6,466   6,441   5,910   +9%   Gas (Mcf/d)   6,453   6,110   +6%

Hydrocarbon production was 2,424 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2016, an increase of more than 5% compared to the second quarter 2015, due to the following:

  • +6% due to new project start ups and ramp ups, notably Laggan-Tormore, Vega Pleyade, Moho Phase 1b, Gladstone LNG and Termokarstovoye;
  • -2% due to the security situation in Nigeria and forest fires in Canada;
  • +1% due to the PSC price effect and performance, net of normal field decline.

In the first half 2016, hydrocarbon production was 2,452 kboe/d, an increase of 4.5% compared to the first half 2015, due to the following:

  • +5% due to new project start ups and ramp ups, notably Laggan-Tormore, Vega Pleyade, Moho Phase 1b, Gladstone LNG and Termokarstovoye;
  • -2% due to the security situation in Nigeria and Yemen, and forest fires in Canada;
  • +2% due to the PSC price effect and performance, net of normal field decline.

> Results

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  In millions of dollars, except effective tax rate   1H16   1H15   1H16

vs

1H15

580   142   1,995   -71%   Adjusted operating income*   722   3,526   -80%
3.2%   -7.0%   47.3%   -   Effective tax rate**   0.8%   47.9%   -
1,127   498   1,560   -28%   Adjusted net operating income*   1,625   2,919   -44%
452   269   489   -8%   including income from equity affiliates   721   992   -27%
                             
3,539   4,237   5,653   -37%   Investments   7,776   13,804   -44%
448   915   379   +18%   Divestments   1,363   1,541   -12%
3,261   4,146   5,212   -37%   Organic investments   7,408   10,724   -31%
2,281   1,831   3,010   -24%   Operating cash flow before working capital changes   4,112   5,929   -31%
983   2,113   2,713   -64%   Cash flow from operations   3,096   6,238   -50%

* 1Q15 data as republished in 2Q15 following the reclassification in the income statement of certain taxes related to the participation in the ADCO concession. Details on adjustment items are shown in the business segment information annex to financial statements.
** Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

Operating cash flow before working capital changes moved in line with the average hydrocarbon price and captured the benefit from cost reductions and production growth:

  • In the second quarter 2016, Upstream operating cash flow before working capital changes was 2,281 M$, a decrease of 24% compared to the second quarter 2015;
  • in the first half 2016, Upstream operating cash flow before working capital changes was 4,112 M$, a decrease of 31% compared to the first half 2015.

Upstream adjusted net operating income was:

  • 1,127 M$ in the second quarter 2016, a decrease of 28% compared to the second quarter 2015, essentially due to the decrease in the average hydrocarbon price, partially offset by the increase in production, decrease in operating costs and lower exploration expenses and taxes;
  • 1,625 M$ in the first half 2016, a decrease of 44% compared to the first half 2015, for the same reasons.

Refining & Chemicals

> Refinery throughput and utilization rates*

2Q16   1Q16   2Q15   2Q16

vs

2Q15

      1H16   1H15   1H16

vs

1H15

1,795   2,105   1,998   -10%   Total refinery throughput (kb/d)   1,951   2,006   -3%
522   756   613   -15%   France   639   675   -5%
803 844 875 -8% Rest of Europe 824 835 -1%
470   505   510   -8%   Rest of world   488   496   -2%
                Utlization rates**            
77% 91% 84% Based on crude only 84% 85%
80%   94%   87%       Based on crude and other feedstock   87%   88%    

* Includes share of TotalErg, as well as refineries in Africa and the French Antilles that are reported in the Marketing & Services segment. The condensate splitters at Port Arthur and Daesan are also included and 2015 figures have been restated.
** Based on distillation capacity at the beginning of the year.

Refinery throughput:

  • decreased by 10% in the second quarter 2016 compared to the second quarter 2015, due to outages in Europe and the United States;
  • decreased by 3% in the first half 2016 compared to the first half 2015; strong operational performance in the first quarter was offset by outages in the second quarter.

> Results

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  In millions of dollars

except the ERMI

  1H16   1H15   1H16

vs

1H15

35.0   35.1   54.1   -35%   European refining margin indicator - ERMI ($/t)   35.1   50.6   -31%
                             
965   1,297   1,604   -40%   Adjusted operating income*   2,262   2,939   -23%
1,018   1,128   1,349   -25%   Adjusted net operating income*   2,146   2,449   -12%
150   116   135   +11%   including Specialty Chemicals**   266   251   +6%
                             
480   259   465   +3%   Investments   739   899   -18%
23   29   874   -97%   Divestments   52   2,640   -98%
457   232   (425)   na   Organic investments   689   (15)   na
1,138   1,319   1,566   -27%   Operating cash flow before working capital changes   2,457   2,946   -17%
1,560   (421)   1,700   -8%   Cash flow from operations   1,139   2,014   -43%

* Details on adjustment items are shown in the business segment information annex to financial statements.
** Hutchinson and Atotech, Bostik until February 2015.

The Group’s European refining margin indicator (ERMI) remained stable compared to the first quarter 2016 but decreased by 35% compared to last year. The petrochemical environment remained favorable, supported by strong polymer demand.

Refining & Chemicals adjusted net operating income was:

  • 1,018 M$ in the second quarter 2016, a decrease of only 25% compared to the second quarter 2015, despite lower refining margins and throughput, thanks to strong operational performance of the Group’s major integrated platforms in Asia and the Middle East.
  • 2,146 M$ in the first half 2016, a decrease of 12% compared to the first half 2015.

Marketing & Services

> Petroleum product sales

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Sales in kb/d*   1H16   1H15   1H16

vs

1H15

1,793   1,757   1,822   -2%   Total Marketing & Services sales   1,775   1,818   -2%
1,074   1,062   1,079   -   Europe   1,068   1,091   -2%
719   695   743   -3%   Rest of world   707   727   -3%

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

In the second quarter 2016, petroleum product sales decreased by 2% compared to the second quarter 2015, mainly due to the sale of Totalgaz and the marketing network in Turkey. Excluding this perimeter effect, retail network and land-based lubricant sales increased by 3.5%.
In the first half 2016, refined product sales decreased by 2% compared to the first half 2015.

> Results

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  In millions of dollars   1H16   1H15   1H16

vs

1H15

17,305   15,433   20,419   -15%   Sales   32,738   40,039   -18%
434   331   465   -7%   Adjusted operating income*   765   910   -16%
378   252   425   -11%   Adjusted net operating income*   630   746   -16%
(43)   (37)   (45)   na   including New Energies   (80)   (87)   na
                             
339   390   436   -22%   Investments   729   651   +12%
296   37   627   -53%   Divestments   333   679   -51%
329   220   324   +2%   Organic investments   549   467   +18%
511   362   531   -4%   Operating cash flow before working capital changes   873   949   -8%
(15)   240   379   na   Cash flow from operations   225   1,023   -78%

* Details on adjustment items are shown in the business segment information annex to financial statements.

Marketing & Services adjusted net operating income was:

  • 378 M$ in the second quarter 2016, a 50% increase compared to the first quarter 2016, reaching a level similar to second quarter 2015 despite the asset sales over the past year.
  • 630 M$ in the first half 2016, a decrease of 16% compared to the first half 2015.

Group results

> Net operating income from business segments

Adjusted net operating income from the business segments was:

  • 2,523 M$ in the second quarter 2016, a decrease of 24% compared to the second quarter 2015, mainly due to lower average hydrocarbon prices in the Upstream and lower refining margins;
  • 4,401 M$ in the first half 2016, a decrease of 28% compared to the first half 2015 for the same reasons.

The effective tax rate11 for the business segments was:

  • 19.8% in the second quarter 2016 compared to 37.5% in the second quarter 2015, mainly due to the lower effective tax rate in the Upstream;
  • 21.9% in the first half 2016 compared to 37.4% in the first half 2015, for the same reason.

> Net income (Group share)

Adjusted net income was:

  • 2,174 M$ in the second quarter 2016 compared to 3,085 M$ in the second quarter 2015, a decrease of 30%;
  • 3,810 M$ in the first half 2016 compared to 5,687 M$ in the first half 2015, a decrease of 33%.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value12.

Total adjustments affecting net income (Group share)13 were:

  • -86 M$ in the second quarter 2016, including mainly the inventory effect and the impairment of assets that will not be developed.
  • -116 M$ in the first half 2016, including mainly inventory effect, the gain on the sale of the FUKA gas pipeline network in the North Sea in the first quarter and the impairment of assets that will not be developed.

The number of fully-diluted shares was 2,401 million on June 30, 2016, and 2,294 million on June 30, 2015.

> Divestments – acquisitions

Asset sales were:

  • 472 M$ in the second quarter 2016, comprised mainly of the sale of the retail network in Turkey;
  • 1,357 M$ in the first half 2016, comprised mainly of the sales of the retail network in Turkey and the FUKA gas pipeline network in the North Sea.

Acquisitions were:

  • 206 M$ in the second quarter 2016, comprised mainly of the purchase of shares in Saft;
  • 399 M$ in the first half 2016, comprised mainly of the purchase of shares in Saft and the acquisition of the retail network in the Dominican Republic.

> Net cash flow

The Group’s net cash flow14 was:

  • 210 M$ in the second quarter 2016 compared to 701 M$ in the second quarter 2015, despite the drop in Brent price from 62 $/b to 46 $/b; operating cash flow before working capital changes was 4.0 B$ compared to 5.3 B$ in the second quarter 2015 and net investments were 3.8 B$ compared to 4.6 B$ in the second quarter 2015.
  • -5 M$ in the first half 2016 compared to -489 M$ in the first half 2015, despite the decrease in Brent price from 58 $/b to 40 $/b; operating cash flow before working capital changes was 7.7 B$, around the same level as net investments, compared to 10.0 B$ and 10.4 B$ respectively in the first half 2015.

> Return on equity

Return on equity from July 1, 2015 to June 30, 2016 was 8.9%15.

TOTAL S.A., parent company accounts

Net income for TOTAL S.A., the parent company, was 1,142 M€ in the first half 2016 compared to 3,438 M€ in the first half 2015. In the first half 2015, a strong volume of dividends was paid by affiliates of TOTAL S.A. to the parent company.

Summary and outlook

The financial performance of the Group over the first half 2016 demonstrates the strength of its integrated model across a range of volatile prices. The Group was resilient in a weak environment at the start of the year and fully captured the benefit of the rebound in prices during the second quarter.

In the Upstream, the start up of Incahuasi in Bolivia and Kashagan in Kazakhstan are expected in the second half of the year, following the first-half start-ups of Laggan-Tormore in the United Kingdom, Vega Pleyade in Argentina and Angola LNG. Production growth is projected to be 4% for the year as a whole, after reaching 4.5% in the first half.

In the Downstream, refining margins were lower at the beginning of the third quarter, due to high inventory levels. Reducing capacity at the Lindsey refinery and ending crude refining at La Mède refinery to convert it to a bio-refinery will be finalized in the second half of the year. The Group’s major integrated platforms are performing well and capturing the benefit of strong petrochemical margins which are supported by polymer demand.

Total maintains strict discipline on costs and investments as part of its strategy to reduce the breakeven. In obtaining an interest in Al-Shaheen, it continues to add high quality, low cost assets to the portfolio.

In addition, the Group continues to actively manage its portfolio by launching the sale process for Atotech, and confirms its objective to generate 2 B$ from net asset sales over the year.

-- -- --

To listen to CFO Patrick de La Chevardière’s conference call with financial analysts today at 14:30 (London time) please log on to total.com or call +44 (0)203 427 1900 in Europe or +1 212 444 0412 in the United States (access code: 9046552). For a replay, please consult the website or call +44 (0)203 427 0598 in Europe or +1 347 366 9565 in the United States (access code: 9046552).

Operating information by segment

Upstream*

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Combined liquids and gas

production by region (kboe/d)

  1H16   1H15   1H16

vs

1H15

770   788   645   +19%   Europe and Central Asia   779   649   +20%
634 630 622 +2% Africa 632 634 -
505 531 518 -2% Middle East and North Africa 518 549 -6%
251 258 263 -4% Americas 255 258 -1%
264   271   251   +5%   Asia Pacific   268   256   +4%
2,424   2,479   2,299   +5%   Total production   2,452   2,347   +4%
627   620   547   +15%   including equity affiliates   624   560   +11%
                             
2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Liquids production by region (kb/d)   1H16   1H15   1H16

vs

1H15

251 251 210 +20% Europe and Central Asia 251 206 +21%
511 518 508 +1% Africa 515 518 -1%
367 380 369 -1% Middle East and North Africa 374 375 -
93 104 96 -4% Americas 99 93 +6%
30   33   32   -6%   Asia Pacific   32   34   -7%
1,253   1,286   1,215   +3%   Total production   1,269   1,227   +3%
265   240   218   +21%   including equity affiliates   253   213   +19%
                             
2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Gas production by region (Mcf/d)   1H16   1H15   1H16

vs

1H15

2,877 2,814 2,335 +23% Europe and Central Asia 2,845 2,379 +20%
594 564 566 +5% Africa 579 578 -
761 837 817 -7% Middle East and North Africa 800 956 -16%
881 860 934 -6% Americas 870 919 -5%
1,353   1,366   1,258   +8%   Asia Pacific   1,359   1,278   +6%
6,466   6,441   5,910   +9%   Total production   6,453   6,110   +6%
1,927   2,039   1,764   +9%   including equity affiliates   1,983   1,863   +6%
                             
2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Liquefied natural gas   1H16   1H15   1H16

vs

1H15

2.76   2.64   2.39   +15%   LNG sales** (Mt)   5.39   5.21   +3%

* The regional reporting has been changed to reflect the Company’s internal organization. Historical data is available at total.com.
** Sales, Group share, excluding trading; 2015 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2015 SEC coefficient.

Downstream (Refining & Chemicals and Marketing & Services)

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  Petroleum product sales by region (kb/d)*   1H16   1H15   1H16

vs

1H15

2,372   2,288   2,100   +13%   Europe   2,330   2,078   +12%
597 501 657 -9% Africa 549 660 -17%
597 531 625 -4% Americas 564 603 -6%
705   771   641   +10%   Rest of world   738   649   +14%
4,271   4,091   4,023   +6%   Total consolidated sales   4,181   3,990   +5%
717   699   632   +13%   Including bulk sales   708   630   +12%
1,761   1,635   1,569   +12%   Including trading   1,698   1,542   +10%

* Includes share of TotalErg.

Adjustment items

> Adjustments to operating income

2Q16   1Q16   2Q15   In millions of dollars   1H16   1H15
(633)   (464)   (474)   Special items affecting operating income   (1,097)   (1,851)
(8)   (11)   -   Restructuring charges   (19)   -
(200) - (248) Impairments (200) (1,294)
(425)   (453)   (226)   Other   (878)   (557)
634   (282)   250   Pre-tax inventory effect: FIFO vs. replacement cost   352   478
(6)   3   (10)   Effect of changes in fair value   (3)   (6)
                     
(5)   (743)   (234)   Total adjustments affecting operating income   (748)   (1,379)

> Adjustment to net income (Group share)

2Q16   1Q16   2Q15   In millions of dollars   1H16   1H15
(486)   150   (282)   Special items affecting net income (Group share)   (336)   (377)
(14)   358   327   Gain (loss) on asset sales   344   1,329
(2) (2) - Restructuring charges (4) (31)
(178) - (245) Impairments (178) (1,354)
(292)   (206)   (364)   Other   (498)   (321)
405   (183)   174   After-tax inventory effect: FIFO vs. replacement cost   222   328
(5)   3   (6)   Effect of changes in fair value   (2)   (4)
                     
(86)   (30)   (114)   Total adjustments affecting net income   (116)   (53)

2016 Sensitivities*

    Scenario   Change  

Estimated impact
on adjusted

net operating
income

 

Estimated
impact on
cash flow

Dollar   1.0 $/€   +0.1 $ per €   -0.15 B$   -0.1 B$
Brent   50 $/b   -10 $/b   -2 B$   -2 B$
European refining margin indicator (ERMI)   35 $/t   -10 $/t   -0.5 B$   -0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2016. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is attributable 85% to Refining & Chemicals.

Investments - Divestments

2Q16   1Q16   2Q15   2Q16

vs

2Q15

  In millions of dollars   1H16   1H15   1H16

vs

1H15

4,059   4,615   5,148   -21%   Organic investments   8,674   11,217   -23%
172 228 396 -57% capitalized exploration 400 796 -50%
257 572 391 -34% increase in non-current loans 829 1,184 -30%
(301)   (100)   (1,160)   -74%   repayment of non-current loans   (401)   (1,405)   -71%
206   193   282   -27%   Acquisitions   399   2,777   -86%
472   885   733   -36%   Asset sales   1,357   3,472   -61%
3   -   81   -96%   Other transactions with non-controlling interests   3   81   -96%
3,790   3,923   4,616   -18%   Net investments   7,713   10,441   -26%

Net-debt-to-equity ratio

Net-debt-to-equity ratio            
In millions of dollars   6/30/2016   3/31/2016   6/30/2015
Current borrowings   13,789   10,858   13,114
Net current financial assets (1,628) (3,231) (2,351)
Net financial assets classified as held for sale (97) 83 (16)
Non-current financial debt 41,668 43,138 43,363
Hedging instruments of non-current debt (1,251) (1,236) (1,157)
Cash and cash equivalents   (22,653)   (20,570)   (27,322)
Net debt   29,828   29,042   25,631
             
Shareholders’ equity - Group share 97,985 96,443 97,244
Estimated dividend payable (1,618) (3,250) (1,561)
Non-controlling interests   2,904   2,960   3,104
Adjusted shareholders' equity   99,271   96,153   98,787
             
Net-debt-to-equity ratio   30.0%   30.2%   25.9%

Return on equity

In millions of dollars  

July 1, 2015 to
June 30, 2016

  

April 1, 2015 to
March 31, 2016

  

January 1, 2015 to
December 31, 2015
Adjusted net income   8,817   9,742   10,698
Average adjusted shareholders' equity   99,029   95,643   92,854
Return on equity (ROE)   8.9%   10.2%   11.5%

Return on average capital employed

> Twelve months ended June 30, 2016

In millions of dollars   Upstream  

Refining &
Chemicals

  

Marketing &
Services

   Group
Adjusted net operating income   3,480   4,586   1,583   9,565
Capital employed at 6/30/2015* 107,214 12,013 8,234 124,001
Capital employed at 6/30/2016*   108,733   12,249   9,021   129,635
ROACE   3.2%   37.8%   18.3%   7.5%

> Twelve months ended March 31, 2016

In millions of dollars   Upstream  

Refining &
Chemicals

  

Marketing &
Services

   Group
Adjusted net operating income   3,913   4,917   1,630   10,460
Capital employed at 03/31/2015* 103,167 12,534 7,928 123,218
Capital employed at 03/31/2016*   106,517   12,505   8,800   127,754
ROACE   3.7%   39.3%   19.5%   8.3%

> Twelve months ended December 31, 2015

In millions of dollars   Upstream  

Refining &
Chemicals

  

Marketing &
Services

   Group
Adjusted net operating income   4,774   4,889   1,699   11,400
Capital employed at 12/31/2014* 100,497 13,451 8,825 120,526
Capital employed at 12/31/2015*   105,580   10,407   8,415   121,143
ROACE   4.6%   41.0%   19.7%   9.4%

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

This document does not constitute the Financial Report for the first half of 2016 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 the Total website total.com.

This press release presents the results for the second quarter 2016 and the first half 2016 from the consolidated financial statements of TOTAL S.A. as of June 30, 2016. The notes to these consolidated financial statements (unaudited) are available on the TOTAL website 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 Company’s financial results or the Group’s activities is provided in the most recent Registration Document, the French language version of which is filed by the Company with the French Autorité des Marchés Financiers and annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).

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

In addition to IFRS measures, certain alternative performance indicators are presented, such as performance indicators excluding the adjustment items described below (adjusted operating income, adjusted net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE) and net-debt-to-equity ratio. These indicators are meant to facilitate the analysis of the financial performance of TOTAL and the comparison of income between periods. They allow investors to track the measures used internally to manage and measure the performance of the Group.

These adjustment items include:

(i) Special items
Due to their unusual nature or particular significance, certain transactions qualified as "special items" are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differentials between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects, for some transactions, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, whose future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.

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

Euro amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar (€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.

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

1 Definitions on page 2.
2 Group share.
3 The ex-dividend date will be December 21, 2016, and the payment date will be set for January 12, 2017.
4 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 9.
5 Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).
6 Including acquisitions and increases in non-current loans.
7 Net investments = investments - divestments - repayment of non-current loans - other operations with non-controlling interests.
8 Organic investments = net investments excluding acquisitions, asset sales, and other operations with non-controlling interests.
9 Operating cash flow before working capital changes, previously referred to as adjusted cash flow from operations, is defined as cash flow from operating activities before changes in working capital at replacement cost. The inventory valuation effect is explained on page 12.
10 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
11 Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).
12 Details shown on page 12.
13 Details shown on page 9 and in the annex to the financial statements.
14 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
15 Details shown on page 11.

Total financial statements
____________________

Second quarter and first half 2016 consolidated accounts, IFRS

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

2016

  1st quarter

2016

  2nd quarter

2015

 
Sales 37,215 32,841 44,715
Excise taxes (5,504) (5,319) (5,446)
Revenues from sales 31,711 27,522 39,269
Purchases, net of inventory variation (20,548) (17,639) (26,353)
Other operating expenses (5,906) (6,136) (6,031)
Exploration costs (536) (194) (352)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,968) (2,680) (2,831)
Other income 172 500 722
Other expense (133) (70) (396)
Financial interest on debt (267) (274) (231)
Financial income from marketable securities & cash equivalents 1 10 28
Cost of net debt (266) (264) (203)
Other financial income 312 191 255
Other financial expense (166) (155) (163)
Equity in net income (loss) of affiliates 776 498 685
Income taxes   (330)   48   (1,589)
Consolidated net income   2,118   1,621   3,013
Group share 2,088 1,606 2,971
Non-controlling interests   30   15   42
Earnings per share ($)   0.86   0.67   1.29
Fully-diluted earnings per share ($)   0.86   0.67   1.29

(a) Except for per share amounts.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
TOTAL
(unaudited)
 
(M$)   2nd quarter

2016

  1st quarter

2016

  2nd quarter

2015

 
Consolidated net income   2,118   1,621   3,013
Other comprehensive income
 
Actuarial gains and losses (132) (81) 248
Tax effect 40 32 (81)
Currency translation adjustment generated by the parent company   (2,113)   3,641   2,963
Items not potentially reclassifiable to profit and loss   (2,205)   3,592   3,130
Currency translation adjustment 589 (1,944) (1,160)
Available for sale financial assets (4) (10) (12)
Cash flow hedge (66) 98 36
Share of other comprehensive income of equity affiliates, net amount 355 (1) (201)
Other - 3 (2)
Tax effect   21   (24)   (8)
Items potentially reclassifiable to profit and loss   895   (1,878)   (1,347)
Total other comprehensive income (net amount)   (1,310)   1,714   1,783
             
Comprehensive income   808   3,335   4,796
Group share 795 3,308 4,749
Non-controlling interests 13 27 47
CONSOLIDATED STATEMENT OF INCOME    
TOTAL
(unaudited)
 
(M$) (a)   1st half

2016

  1st half

2015

 
Sales 70,056 87,028
Excise taxes (10,823) (10,796)
Revenues from sales 59,233 76,232
Purchases, net of inventory variation (38,187) (50,557)
Other operating expenses (12,042) (12,303)
Exploration costs (730) (989)
Depreciation, depletion and impairment of tangible assets and mineral interests (5,648) (6,703)
Other income 672 2,343
Other expense (203) (838)
Financial interest on debt (541) (493)
Financial income from marketable securities & cash equivalents 11 59
Cost of net debt (530) (434)
Other financial income 503 397
Other financial expense (321) (329)
Equity in net income (loss) of affiliates 1,274 1,275
Income taxes   (282)   (2,573)
Consolidated net income   3,739   5,521
Group share 3,694 5,634
Non-controlling interests   45   (113)
Earnings per share ($)   1.54   2.46
Fully-diluted earnings per share ($)   1.53   2.45
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME    
TOTAL
(unaudited)
 
(M$)   1st half

2016

  1st half

2015

 
Consolidated net income   3,739   5,521
 
Other comprehensive income
 
Actuarial gains and losses (213) 153
Tax effect 72 (117)
Currency translation adjustment generated by the parent company   1,528   (5,229)
Items not potentially reclassifiable to profit and loss   1,387   (5,193)
Currency translation adjustment (1,355) 2,588
Available for sale financial assets (14) (4)
Cash flow hedge 32 (94)
Share of other comprehensive income of equity affiliates, net amount 354 841
Other 3 1
Tax effect   (3)   29
Items potentially reclassifiable to profit and loss   (983)   3,361
Total other comprehensive income (net amount)   404   (1,832)
         
Comprehensive income   4,143   3,689
Group share 4,103 3,833
Non-controlling interests 40 (144)
CONSOLIDATED BALANCE SHEET        
TOTAL
(unaudited)
 
(M$)   June 30, 2016

(unaudited)

  March 31, 2016

(unaudited)

  December 31, 2015

(unaudited)

  June 30, 2015

(unaudited)

 
ASSETS
 
Non-current assets
Intangible assets, net 14,207 14,512 14,549 16,101
Property, plant and equipment, net 111,420 111,636 109,518 110,023
Equity affiliates : investments and loans 20,683 20,411 19,384 19,380
Other investments 1,411 1,413 1,241 1,248
Hedging instruments of non-current financial debt 1,251 1,236 1,219 1,157
Deferred income taxes 4,175 3,955 3,982 3,145
Other non-current assets   4,467   4,329   4,355   4,047
Total non-current assets   157,614   157,492   154,248   155,101
Current assets
Inventories, net 15,021 13,887 13,116 17,373
Accounts receivable, net 11,933 12,220 10,629 14,415
Other current assets 14,850 15,827 15,843 15,072
Current financial assets 2,018 3,439 6,190 2,439
Cash and cash equivalents 22,653 20,570 23,269 27,322
Assets classified as held for sale   1,257   724   1,189   2,754
Total current assets   67,732   66,667   70,236   79,375
Total assets 225,346 224,159 224,484 234,476
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
Shareholders' equity
Common shares 7,846 7,709 7,670 7,549
Paid-in surplus and retained earnings 106,343 103,766 101,528 103,286
Currency translation adjustment (11,619) (10,447) (12,119) (9,243)
Treasury shares   (4,585)   (4,585)   (4,585)   (4,348)
Total shareholders' equity - Group share   97,985   96,443   92,494   97,244
Non-controlling interests   2,904   2,960   2,915   3,104
Total shareholders' equity   100,889   99,403   95,409   100,348
Non-current liabilities
Deferred income taxes 11,345 11,766 12,360 13,458
Employee benefits 3,887 3,984 3,774 4,426
Provisions and other non-current liabilities 17,270 17,607 17,502 17,353
Non-current financial debt   41,668   43,138   44,464   43,363
Total non-current liabilities   74,170   76,495   78,100   78,600
Current liabilities
Accounts payable 20,478 20,887 20,928 22,469
Other creditors and accrued liabilities 14,983 15,938 16,884 18,718
Current borrowings 13,789 10,858 12,488 13,114
Other current financial liabilities 390 208 171 88
Liabilities directly associated with the assets classified as held for sale   647   370   504   1,139
Total current liabilities   50,287   48,261   50,975   55,528
Total liabilities & shareholders' equity 225,346 224,159 224,484 234,476
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL      
(unaudited)
 
(M$)   2nd quarter

2016

  1st quarter

2016

  2nd quarter

2015

CASH FLOW FROM OPERATING ACTIVITIES
 
Consolidated net income 2,118 1,621 3,013
Depreciation, depletion, amortization and impairment 3,361 2,735 3,113
Non-current liabilities, valuation allowances and deferred taxes (477) (268) 285
Impact of coverage of pension benefit plans - - -
(Gains) losses on disposals of assets (48) (367) (459)
Undistributed affiliates' equity earnings (280) (236) (221)
(Increase) decrease in working capital (1,752) (1,545) (835)
Other changes, net   (40)   (59)   (164)
Cash flow from operating activities 2,882 1,881 4,732
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (4,094) (4,146) (5,991)
Acquisitions of subsidiaries, net of cash acquired 11 (133) (3)
Investments in equity affiliates and other securities (226) (57) (205)
Increase in non-current loans   (257)   (572)   (391)
Total expenditures (4,566) (4,908) (6,590)
Proceeds from disposals of intangible assets and property, plant and equipment 200 792 221
Proceeds from disposals of subsidiaries, net of cash sold 270 - 403
Proceeds from disposals of non-current investments 2 93 109
Repayment of non-current loans   301   100   1,160
Total divestments   773   985   1,893
Cash flow used in investing activities (3,793) (3,923) (4,697)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 4 - 438
- Treasury shares - - -
Dividends paid:
- Parent company shareholders (1,173) (954) (6)
- Non-controlling interests (72) (3) (70)
Issuance of perpetual subordinated notes 1,950 - -
Payments on perpetual subordinated notes - (133) -
Other transactions with non-controlling interests 3 - 81
Net issuance (repayment) of non-current debt 400 154 1,635
Increase (decrease) in current borrowings 1,011 (3,027) (512)
Increase (decrease) in current financial assets and liabilities 1,399 2,746 (79)
Cash flow used in financing activities   3,522   (1,217)   1,487
Net increase (decrease) in cash and cash equivalents 2,611 (3,259) 1,522
Effect of exchange rates (528) 560 749
Cash and cash equivalents at the beginning of the period   20,570   23,269   25,051
Cash and cash equivalents at the end of the period   22,653   20,570   27,322
CONSOLIDATED STATEMENT OF CASH FLOW    
TOTAL
(unaudited)
 
(M$)   1st half

2016

  1st half

2015

CASH FLOW FROM OPERATING ACTIVITIES
 
Consolidated net income 3,739 5,521
Depreciation, depletion, amortization and impairment 6,096 7,537
Non-current liabilities, valuation allowances and deferred taxes (745) (161)
Impact of coverage of pension benefit plans - -
(Gains) losses on disposals of assets (415) (1,816)
Undistributed affiliates' equity earnings (516) (289)
(Increase) decrease in working capital (3,297) (1,311)
Other changes, net   (99)   (362)
Cash flow from operating activities 4,763 9,119
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (8,240) (13,947)
Acquisitions of subsidiaries, net of cash acquired (122) (10)
Investments in equity affiliates and other securities (283) (258)
Increase in non-current loans   (829)   (1,184)
Total expenditures (9,474) (15,399)
Proceeds from disposals of intangible assets and property, plant and equipment 992 1,180
Proceeds from disposals of subsidiaries, net of cash sold 270 2,161
Proceeds from disposals of non-current investments 95 131
Repayment of non-current loans   401   1,405
Total divestments   1,758   4,877
Cash flow used in investing activities (7,716) (10,522)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 4 450
- Treasury shares - -
Dividends paid:
- Parent company shareholders (2,127) (1,572)
- Non-controlling interests (75) (72)
Issuance of perpetual subordinated notes 1,950 5,616
Payments on perpetual subordinated notes (133) -
Other transactions with non-controlling interests 3 81
Net issuance (repayment) of non-current debt 554 1,771
Increase (decrease) in current borrowings (2,016) (89)
Increase (decrease) in current financial assets and liabilities 4,145 (1,101)
Cash flow used in financing activities   2,305   5,084
Net increase (decrease) in cash and cash equivalents (648) 3,681
Effect of exchange rates 32 (1,540)
Cash and cash equivalents at the beginning of the period   23,269   25,181
Cash and cash equivalents at the end of the period   22,653   27,322
         
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, 2015   2,385,267,525   7,518   94,646   (7,480)   (109,361,413)   (4,354)   90,330   3,201   93,531
Net income of the first half 2015 - - 5,634 - - - 5,634 (113) 5,521
Other comprehensive Income - - (38) (1,763) - - (1,801) (31) (1,832)
Comprehensive Income - - 5,596 (1,763) - - 3,833 (144) 3,689
Dividend - - (3,123) - - - (3,123) (72) (3,195)
Issuance of common shares 11,092,565 31 419 - - - 450 - 450
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (6) - 103,150 6 - - -
Share-based payments - - 69 - - - 69 - 69
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - 5,616 - - - 5,616 - 5,616
Payments on perpetual subordinated notes - - (31) - - - (31) - (31)
Other operations with non-controlling interests - - 21 - - - 21 57 78
Other items - - 79 - - - 79 62 141
As of June 30, 2015   2,396,360,090   7,549   103,286   (9,243)   (109,258,263)   (4,348)   97,244   3,104   100,348
Net income from July 1 to December 31, 2015 - - (547) - - - (547) (188) (735)
Other comprehensive Income - - 223 (2,876) - - (2,653) (50) (2,703)
Comprehensive Income - - (324) (2,876) - - (3,200) (238) (3,438)
Dividend - - (3,180) - - - (3,180) (28) (3,208)
Issuance of common shares 43,697,793 121 1,740 - - - 1,861 - 1,861
Purchase of treasury shares - - - - (4,711,935) (237) (237) - (237)
Sale of treasury shares (1) - - - - 2,440 - - - -
Share-based payments - - 32 - - - 32 - 32
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (83) - - - (83) - (83)
Other operations with non-controlling interests - - 2 - - - 2 7 9
Other items - - 55 - - - 55 70 125
As of December 31, 2015   2,440,057,883   7,670   101,528   (12,119)   (113,967,758)   (4,585)   92,494   2,915   95,409
Net income of the first half 2016 - - 3,694 - - - 3,694 45 3,739
Other comprehensive Income - - (91) 500 - - 409 (5) 404
Comprehensive Income - - 3,603 500 - - 4,103 40 4,143
Dividend - - (3,188) - - - (3,188) (75) (3,263)
Issuance of common shares 63,204,391 176 2,490 - - - 2,666 - 2,666
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - - - 1,580 - - - -
Share-based payments - - 52 - - - 52 - 52
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - 1,950 - - - 1,950 - 1,950
Payments on perpetual subordinated notes - - (77) - - - (77) - (77)
Other operations with non-controlling interests - - (40) - - - (40) 6 (34)
Other items - - 25 - - - 25 18 43
As of June 30, 2016   2,503,262,274   7,846   106,343   (11,619)   (113,966,178)   (4,585)   97,985   2,904   100,889
           
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                         
2nd quarter 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 3,344 16,567 17,305 (1) - 37,215
Intersegment sales 4,159 5,540 208 81 (9,988) -
Excise taxes   -   (924)   (4,580)   -   -   (5,504)
Revenues from sales 7,503 21,183 12,933 80 (9,988) 31,711
Operating expenses (4,956) (19,521) (12,208) (293) 9,988 (26,990)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,531)   (246)   (183)   (8)   -   (2,968)
Operating income 16 1,416 542 (221) - 1,753
Equity in net income (loss) of affiliates and other items 569 260 34 98 - 961
Tax on net operating income   180   (379)   (190)   (8)   -   (397)
Net operating income 765 1,297 386 (131) - 2,317
Net cost of net debt (199)
Non-controlling interests                       (30)
Net income 2,088
                         
2nd quarter 2016 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (6) - - - - (6)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (6) - - - - (6)
Operating expenses (358) 451 108 - - 201
Depreciation, depletion and impairment of tangible assets and mineral interests   (200)   -   -   -   -   (200)
Operating income (b) (564) 451 108 - - (5)
Equity in net income (loss) of affiliates and other items - (27) (62) - - (89)
Tax on net operating income   202   (145)   (38)   -   -   19
Net operating income (b) (362) 279 8 - - (75)
Net cost of net debt (5)
Non-controlling interests                       (6)
Net income (86)
 
(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 - 516 118 -
On net operating income - 331 84 -
                         
2nd quarter 2016 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 3,350 16,567 17,305 (1) - 37,221
Intersegment sales 4,159 5,540 208 81 (9,988) -
Excise taxes   -   (924)   (4,580)   -   -   (5,504)
Revenues from sales 7,509 21,183 12,933 80 (9,988) 31,717
Operating expenses (4,598) (19,972) (12,316) (293) 9,988 (27,191)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,331)   (246)   (183)   (8)   -   (2,768)
Adjusted operating income 580 965 434 (221) - 1,758
Equity in net income (loss) of affiliates and other items 569 287 96 98 - 1,050
Tax on net operating income   (22)   (234)   (152)   (8)   -   (416)
Adjusted net operating income 1,127 1,018 378 (131) - 2,392
Net cost of net debt (194)
Non-controlling interests                       (24)
Adjusted net income                       2,174
Adjusted fully-diluted earnings per share ($)                       0.90
(a) Except for earnings per share.
                         
2nd quarter 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 3,539 480 339 208 - 4,566
Total divestments 448 23 296 6 - 773
Cash flow from operating activities   983   1,560   (15)   354   -   2,882
           
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                         
1st quarter 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 3,466 13,938 15,433 4 - 32,841
Intersegment sales 3,262 4,148 132 70 (7,612) -
Excise taxes   -   (961)   (4,358)   -   -   (5,319)
Revenues from sales 6,728 17,125 11,207 74 (7,612) 27,522
Operating expenses (4,798) (15,782) (10,781) (220) 7,612 (23,969)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,247)   (253)   (172)   (8)   -   (2,680)
Operating income (317) 1,090 254 (154) - 873
Equity in net income (loss) of affiliates and other items 670 177 14 103 - 964
Tax on net operating income   313   (276)   (80)   37   -   (6)
Net operating income 666 991 188 (14) - 1,831
Net cost of net debt (210)
Non-controlling interests                       (15)
Net income 1,606
                         
1st quarter 2016 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (126) - - - - (126)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (126) - - - - (126)
Operating expenses (333) (207) (77) - - (617)
Depreciation, depletion and impairment of tangible assets and mineral interests   -   -   -   -   -   -
Operating income (b) (459) (207) (77) - - (743)
Equity in net income (loss) of affiliates and other items 329 - (17) - - 312
Tax on net operating income   298   70   30   -   -   398
Net operating income (b) 168 (137) (64) - - (33)
Net cost of net debt (6)
Non-controlling interests                       9
Net income (30)
 
(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 - (205) (77) -
On net operating income - (133) (50) -
                         
1st quarter 2016 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 3,592 13,938 15,433 4 - 32,967
Intersegment sales 3,262 4,148 132 70 (7,612) -
Excise taxes   -   (961)   (4,358)   -   -   (5,319)
Revenues from sales 6,854 17,125 11,207 74 (7,612) 27,648
Operating expenses (4,465) (15,575) (10,704) (220) 7,612 (23,352)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,247)   (253)   (172)   (8)   -   (2,680)
Adjusted operating income 142 1,297 331 (154) - 1,616
Equity in net income (loss) of affiliates and other items 341 177 31 103 - 652
Tax on net operating income   15   (346)   (110)   37   -   (404)
Adjusted net operating income 498 1,128 252 (14) - 1,864
Net cost of net debt (204)
Non-controlling interests                       (24)
Adjusted net income                       1,636
Adjusted fully-diluted earnings per share ($)                       0.68
(a) Except for earnings per share.
                         
1st quarter 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 4,237 259 390 22 - 4,908
Total divestments 915 29 37 4 - 985
Cash flow from operating activities   2,113   (421)   240   (51)   -   1,881
           
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                         
2nd quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 4,498 19,793 20,419 5 - 44,715
Intersegment sales 4,921 7,383 223 56 (12,583) -
Excise taxes   -   (1,007)   (4,439)   -   -   (5,446)
Revenues from sales 9,419 26,169 16,203 61 (12,583) 39,269
Operating expenses (5,449) (24,182) (15,508) (180) 12,583 (32,736)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,329)   (291)   (202)   (9)   -   (2,831)
Operating income 1,641 1,696 493 (128) - 3,702
Equity in net income (loss) of affiliates and other items 319 107 503 174 - 1,103
Tax on net operating income   (909)   (433)   (193)   (93)   -   (1,628)
Net operating income 1,051 1,370 803 (47) - 3,177
Net cost of net debt (164)
Non-controlling interests                       (42)
Net income 2,971
                         
2nd quarter 2015 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (158) - - - - (158)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (158) - - - - (158)
Operating expenses (2) 123 51 - - 172
Depreciation, depletion and impairment of tangible assets and mineral interests   (194)   (31)   (23)   -   -   (248)
Operating income (b) (354) 92 28 - - (234)
Equity in net income (loss) of affiliates and other items (191) (71) 374 - - 112
Tax on net operating income   36   -   (24)   -   -   12
Net operating income (b) (509) 21 378 - - (110)
Net cost of net debt -
Non-controlling interests                       (4)
Net income (114)
 
(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 - 199 51 -
On net operating income - 138 43 -
   

 

 

 

 

 

 

 

       
2nd quarter 2015 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 4,656 19,793 20,419 5 - 44,873
Intersegment sales 4,921 7,383 223 56 (12,583) -
Excise taxes   -   (1,007)   (4,439)   -   -   (5,446)
Revenues from sales 9,577 26,169 16,203 61 (12,583) 39,427
Operating expenses (5,447) (24,305) (15,559) (180) 12,583 (32,908)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,135)   (260)   (179)   (9)   -   (2,583)
Adjusted operating income 1,995 1,604 465 (128) - 3,936
Equity in net income (loss) of affiliates and other items 510 178 129 174 - 991
Tax on net operating income   (945)   (433)   (169)   (93)   -   (1,640)
Adjusted net operating income 1,560 1,349 425 (47) - 3,287
Net cost of net debt (164)
Non-controlling interests                       (38)
Adjusted net income                       3,085
Adjusted fully-diluted earnings per share ($)                       1.34
(a) Except for earnings per share.
                         
2nd quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 5,653 465 436 36 - 6,590
Total divestments 379 874 627 13 - 1,893
Cash flow from operating activities   2,713   1,700   379   (60)   -   4,732
           
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                         
1st half 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 6,810 30,505 32,738 3 - 70,056
Intersegment sales 7,421 9,688 340 151 (17,600) -
Excise taxes   -   (1,885)   (8,938)   -   -   (10,823)
Revenues from sales 14,231 38,308 24,140 154 (17,600) 59,233
Operating expenses (9,754) (35,303) (22,989) (513) 17,600 (50,959)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,778)   (499)   (355)   (16)   -   (5,648)
Operating income (301) 2,506 796 (375) - 2,626
Equity in net income (loss) of affiliates and other items 1,239 437 48 201 - 1,925
Tax on net operating income   493   (655)   (270)   29   -   (403)
Net operating income 1,431 2,288 574 (145) - 4,148
Net cost of net debt (409)
Non-controlling interests                       (45)
Net income 3,694
                         
1st half 2016 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (132) - - - - (132)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (132) - - - - (132)
Operating expenses (691) 244 31 - - (416)
Depreciation, depletion and impairment of tangible assets and mineral interests   (200)   -   -   -   -   (200)
Operating income (b) (1,023) 244 31 - - (748)
Equity in net income (loss) of affiliates and other items 329 (27) (79) - - 223
Tax on net operating income   500   (75)   (8)   -   -   417
Net operating income (b) (194) 142 (56) - - (108)
Net cost of net debt (11)
Non-controlling interests                       3
Net income (116)
 
(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 - 311 41 -
On net operating income - 198 34 -
   

 

 

 

 

 

 

 

       
1st half 2016 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 6,942 30,505 32,738 3 - 70,188
Intersegment sales 7,421 9,688 340 151 (17,600) -
Excise taxes   -   (1,885)   (8,938)   -   -   (10,823)
Revenues from sales 14,363 38,308 24,140 154 (17,600) 59,365
Operating expenses (9,063) (35,547) (23,020) (513) 17,600 (50,543)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,578)   (499)   (355)   (16)   -   (5,448)
Adjusted operating income 722 2,262 765 (375) - 3,374
Equity in net income (loss) of affiliates and other items 910 464 127 201 - 1,702
Tax on net operating income   (7)   (580)   (262)   29   -   (820)
Adjusted net operating income 1,625 2,146 630 (145) - 4,256
Net cost of net debt (398)
Non-controlling interests                       (48)
Adjusted net income                       3,810
Adjusted fully-diluted earnings per share ($)                       1.58
(a) Except for earnings per share.
                         
1st half 2016

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 7,776 739 729 230 - 9,474
Total divestments 1,363 52 333 10 - 1,758
Cash flow from operating activities   3,096   1,139   225   303   -   4,763
           
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
                         
1st half 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 9,723 37,257 40,039 9 - 87,028
Intersegment sales 9,305 14,350 495 108 (24,258) -
Excise taxes   -   (1,940)   (8,856)   -   -   (10,796)
Revenues from sales 19,028 49,667 31,678 117 (24,258) 76,232
Operating expenses (11,418) (45,899) (30,371) (419) 24,258 (63,849)
Depreciation, depletion and impairment of tangible assets and mineral interests   (5,770)   (543)   (376)   (14)   -   (6,703)
Operating income 1,840 3,225 931 (316) - 5,680
Equity in net income (loss) of affiliates and other items 1,088 869 423 468 - 2,848
Tax on net operating income   (1,277)   (879)   (324)   (175)   -   (2,655)
Net operating income 1,651 3,215 1,030 (23) - 5,873
Net cost of net debt (352)
Non-controlling interests                       113
Net income 5,634
                         
1st half 2015 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (304) - - - - (304)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (304) - - - - (304)
Operating expenses (142) 317 44 - - 219
Depreciation, depletion and impairment of tangible assets and mineral interests   (1,240)   (31)   (23)   -   -   (1,294)
Operating income (b) (1,686) 286 21 - - (1,379)
Equity in net income (loss) of affiliates and other items (55) 590 285 - - 820
Tax on net operating income   473   (110)   (22)   -   -   341
Net operating income (b) (1,268) 766 284 - - (218)
Net cost of net debt -
Non-controlling interests                       165
Net income (53)
 
(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 - 434 44 -
On net operating income - 288 38 -
                         
1st half 2015 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 10,027 37,257 40,039 9 - 87,332
Intersegment sales 9,305 14,350 495 108 (24,258) -
Excise taxes   -   (1,940)   (8,856)   -   -   (10,796)
Revenues from sales 19,332 49,667 31,678 117 (24,258) 76,536
Operating expenses (11,276) (46,216) (30,415) (419) 24,258 (64,068)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,530)   (512)   (353)   (14)   -   (5,409)
Adjusted operating income 3,526 2,939 910 (316) - 7,059
Equity in net income (loss) of affiliates and other items 1,143 279 138 468 - 2,028
Tax on net operating income   (1,750)   (769)   (302)   (175)   -   (2,996)
Adjusted net operating income 2,919 2,449 746 (23) - 6,091
Net cost of net debt (352)
Non-controlling interests                       (52)
Adjusted net income                       5,687
Adjusted fully-diluted earnings per share ($)                       2.47
(a) Except for earnings per share.
                         
1st half 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 13,804 899 651 45 - 15,399
Total divestments 1,541 2,640 679 17 - 4,877
Cash flow from operating activities   6,238   2,014   1,023   (156)   -   9,119

Reconciliation of the information by business segment with consolidated financial statements

TOTAL      
(unaudited)
 
2nd quarter 2016

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 37,221 (6) 37,215
Excise taxes (5,504) - (5,504)
Revenues from sales 31,717 (6) 31,711
Purchases, net of inventory variation (21,130) 582 (20,548)
Other operating expenses (5,875) (31) (5,906)
Exploration costs (186) (350) (536)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,768) (200) (2,968)
Other income 172 - 172
Other expense (65) (68) (133)
Financial interest on debt (262) (5) (267)
Financial income from marketable securities & cash equivalents 1 - 1
Cost of net debt (261) (5) (266)
Other financial income 312 - 312
Other financial expense (166) - (166)
Equity in net income (loss) of affiliates 797 (21) 776
Income taxes   (349)   19   (330)
Consolidated net income 2,198 (80) 2,118
Group share 2,174 (86) 2,088
Non-controlling interests 24 6 30
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
2nd quarter 2015

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 44,873 (158) 44,715
Excise taxes (5,446) - (5,446)
Revenues from sales 39,427 (158) 39,269
Purchases, net of inventory variation (26,603) 250 (26,353)
Other operating expenses (5,955) (76) (6,031)
Exploration costs (350) (2) (352)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,583) (248) (2,831)
Other income 358 364 722
Other expense (136) (260) (396)
Financial interest on debt (231) - (231)
Financial income from marketable securities & cash equivalents 28 - 28
Cost of net debt (203) - (203)
Other financial income 255 - 255
Other financial expense (163) - (163)
Equity in net income (loss) of affiliates 677 8 685
Income taxes   (1,601)   12   (1,589)
Consolidated net income 3,123 (110) 3,013
Group share 3,085 (114) 2,971
Non-controlling interests 38 4 42
 
(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 2016

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 70,188 (132) 70,056
Excise taxes (10,823) - (10,823)
Revenues from sales 59,365 (132) 59,233
Purchases, net of inventory variation (38,487) 300 (38,187)
Other operating expenses (11,676) (366) (12,042)
Exploration costs (380) (350) (730)
Depreciation, depletion and impairment of tangible assets and mineral interests (5,448) (200) (5,648)
Other income 343 329 672
Other expense (119) (84) (203)
Financial interest on debt (530) (11) (541)
Financial income from marketable securities & cash equivalents 11 - 11
Cost of net debt (519) (11) (530)
Other financial income 503 - 503
Other financial expense (321) - (321)
Equity in net income (loss) of affiliates 1,296 (22) 1,274
Income taxes   (699)   417   (282)
Consolidated net income 3,858 (119) 3,739
Group share 3,810 (116) 3,694
Non-controlling interests 48 (3) 45
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
1st half 2015

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 87,332 (304) 87,028
Excise taxes (10,796) - (10,796)
Revenues from sales 76,536 (304) 76,232
Purchases, net of inventory variation (51,035) 478 (50,557)
Other operating expenses (12,131) (172) (12,303)
Exploration costs (902) (87) (989)
Depreciation, depletion and impairment of tangible assets and mineral interests (5,409) (1,294) (6,703)
Other income 884 1,459 2,343
Other expense (235) (603) (838)
Financial interest on debt (493) - (493)
Financial income from marketable securities & cash equivalents 59 - 59
Cost of net debt (434) - (434)
Other financial income 397 - 397
Other financial expense (329) - (329)
Equity in net income (loss) of affiliates 1,311 (36) 1,275
Income taxes   (2,914)   341   (2,573)
Consolidated net income 5,739 (218) 5,521
Group share 5,687 (53) 5,634
Non-controlling interests 52 (165) (113)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

Total
Mike SANGSTER
Nicolas FUMEX
Kim HOUSEGO
Romain RICHEMONT
Tel. : + 44 (0)207 719 7962
Fax : + 44 (0)207 719 7959
or
Robert HAMMOND (U.S.)
Tel. : +1 713-483-5070
Fax : +1 713-483-5629

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