3rd Quarter Results

Total Fina Elf.
19 November 2002


                                                           www.totalfinaelf.com



 
 
TotalFinaElf Reports Third Quarter and 
Nine Months 2002 Results

Third Quarter 2002, excluding non-recurring items

   • Net income: 1.60 billion euros, down 9%
   • Earnings per share: 2.40 euros, down 6% 
   • Earnings per share: 2.35 dollars, 4% increase

     14% increase in hydrocarbon production

First Nine Months 2002, excluding non-recurring items

   • Net income: 4.65 billion euros, down 24% 
   • Earnings per share: 6.94 euros, down 20%
   • Earnings per share: 6.46 dollars, down 18%

     11% increase in hydrocarbon production


Paris - November 19, 2002 - The Board of Directors of TotalFinaElf, chaired by 
CEO Thierry Desmarest met to review the unaudited third quarter 2002 results.

Commenting on the results, Thierry Desmarest said:

'During the third quarter 2002, TotalFinaElf was able to maintain earnings per 
share, excluding non-recurring items, at 2.40 euros, near the level of the third
quarter 2001 despite a weaker dollar and lower refining and marketing margins, 
which were only partially offset by higher hydrocarbon prices. When we express 
our results in dollars to be comparable to our peers, TotalFinaElf is the only 
major to show an increase in its earnings per share excluding non-recurring 
items (...)

This performance is due largely to our own internal efforts. Hydrocarbon 
production rose by 14% in the third quarter 2002 versus the same quarter last 
year. Strict financial discipline and substantial share buy-backs also 
contributed to this performance.'

Consolidated accounts TotalFinaElf
  
3Q02    3Q01      %   millions of euros                        9m 02   9m 01  %

25,423  25,946   -2%  Sales                                  75,642  81,629  -7%

2,824    3,088   -9%  Operating income from business          8,101  10,615 -24%
                      segments (excluding non-recurring items)     

1,525    1,773  -14%  Net operating income from business      4,407   6,200 -29%
                      segments (excluding non-recurring items)     

1,600    1,761   -9%  Net income (Group share)                4,651   6,094 -24%
                      excluding non-recurring items     

1,637    2,299  -29%  Net income (Group share)                4,569   7,006 -35%

2.40     2.55    -6%  Earnings per share (euros)              6.94     8.72 -20%
                      excluding non-recurring items     

2,125    2,647  -20%  Investments                             6,334   7,467 -15%

464      2,178  -79%  Divestments                             1,513   5,293 -71%
                      at selling price     

3,465    3,810   -9%  Cash flow from operating activities     8,773  10,894 -19%


Non-recurring Item*

3Q02  3Q01      millions of euros                             9m 02     9m 01

       Impact of non-recurring items on operating income

(8)     -       Restructuring charges                           (24)        -

(1)     -       Impairments                                     (22)        -

76      -       Other                                            67         -

67      -       Total                                            21         -

        Impact of non-recurring items on net income

62    597       Gain on asset sales                             339        971

1       -       Toulouse plant impact                          (148)        -

                Restructuring charges and
(1)   (40)      early retirement plans                          (77)       (40)

(1)     -       Impairments                                     (15)         -

(24)  (19)      Other                                          (181)*      (19)

37    538       Total                                           (82)       912

*includes 151 M€ Impact in 2Q02 accounts related to UK tax changes


Number of shares

3Q02    3Q01    %       millions                       9m 02    9m 01       %
 
                       Fully-diluted weighted-
667.9   690.8  -3%     average shares                  669.7    698.7      -4%

Oil market environment
 
3Q02    3Q01      %                                     9m 02   9m 01       %

0.98    0.89    -9%*          €/$                        0.93    0.90     -3%*

27.0    25.3     +7%          Brent ($/b)                24.4    26.1      -7%

8.6     12.9    -33%          European refining           5.3    15.6     -66%
                              margin TRCV ($/t)         

* change in the dollar versus the euro

Third Quarter 2002 Results

For the third quarter 2002, the average Brent oil price rose by 7% to $27.0/b 
from $25.3/b a year ago. However, the other parameters reflected weaker market 
conditions relative to a year ago. The dollar depreciated sharply against the 
euro, with the exchange rate averaging $0.98 per euro in the third quarter 2002 
versus $0.89 per euro in the third quarter 2001. The European refining margin 
fell to $8.6/t in the third quarter 2002 from $l2.9/t in the third quarter 2001.

Growth, synergies and productivity programs were able to partially offset the 
negative impact of the environment. The beneficial impact of the self-help 
programs was reduced by the impact of an unusually high level of refinery 
maintenance operations.

Within this context, operating income from the business segments, excluding 
non-recurring items, fell by 9% to 2,824 million euros in the third quarter 2002
from 3,088 million euros In the third quarter 2001.

Third quarter 2002 non-recurring items had a positive impact on operating income
of 67 million euros.

Net operating income from the business segments excluding non-recurring items 
declined by 14% to 1,525 million euros in the third quarter 2002 from 1,773 
million euros in the third quarter 2001. The larger percentage decrease in net 
operating income versus operating income is due primarily to the larger share in
operating income of the more heavily taxed Upstream segment.

Net income excluding non-recurring items fell by 9% to 1,600 million euros in 
the third quarter 2002 from 1,761 million euros in the same period last year. 
Relative to the percentage decline in net operating income, the smaller decline 
in net income is due primarily to the lower cost of net debt.

Earnings per share excluding non-recurring items, based on 667.9 million 
fully-diluted weighted-average shares in the third quarter 2002, showed a 
limited decline of only 6% to 2.40 euros from 2.55 euros per share in the third 
quarter 2001 thanks to the Group's share buy-backs.

During the third quarter 2002, TotalFinaElf bought back 8.59 million of its 
shares (1) for 1.20 billion euros. At September 30, 2002, the number of 
fully-diluted shares was 665.2 million.

Reported net income declined to 1,637 million euros in the third quarter 2002 
from 2,299 million euros in the same period of 2001. Non-recurring items had a 
positive impact of 37 million euros in the third quarter 2002 versus a positive 
impact of 538 million euros on third quarter 2001 net income. Non-recurring 
items in the third quarter 2002 were composed primarily of gains on asset sales.

The Group's net-debt-to-equity ratio was 25.9% at September 30, 2002 compared 
with 28.2% at June 30, 2002.

Upstream

Upstream operating income excluding non-recurring items rose by 9% to 2,448 
million euros in the third quarter 2002 from 2,247 million euros in the third 
quarter 2001. The increase was driven primarily by strong production growth. 
Higher oil prices were more than offset by the negative gas price lag effect and
the weaker dollar.

Net operating income excluding non-recurring items from the Upstream segment was
slightly lower at 1,185 million euros in the third quarter 2002 compared to 
1,199 million euros in the third quarter 2001, primarily due to the inclusion of
gains on asset sales completed in the third quarter 2001 and the impact of 
higher UK North Sea taxes in the third quarter 2002.

Hydrocarbon production rose by 13.7% to 2,351 thousand barrels of oil equivalent
per day (kboe/d) in the third quarter 2002 from 2,068 kboe/d in the third 
quarter 2001.

Production growth was driven primarily by a number of start-ups occurring since 
the third quarter 2001, including Girassol in Angola, the Sincor upgrader in 
Venezuela, South Pars in Iran, Nuggets and Huldra in the North Sea and Deir Ez 
Zor gas in Syria, as well as by the ramp up in production at the Elgln-Franklin 
fields in the UK North Sea.

In Europe, highlights of the third quarter 2002 included approval by the 
Norwegian authorities for the development of the Skirne and Byggve gas and 
condensate fields located on block PL 102. The Otter field in the UK North Sea 
started production in October 2002, less than two years after approval of its 
development plan.

In the CIS, TotalFinaElf confirmed its acquisition of a 5% share in the BTC 
pipeline project that will link Baku, Azerbaijan to Ceyhan, Turkey. In October, 
a discovery was made on the Kalamkas structure in the Kazakh section of the 
Caspian Sea, 80 kilometers southwest of the Kashagan field.

In Africa, the Group obtained a new exploration permit in Algeria on the 
Timimoun Basin.

In the Gulf of Mexico, the TotalFinaElf-operated Aconcagua field started 
production; it is one of three gas fields that use the new deep-water Canyon 
Express pipeline which is also operated by the Group.

(1)Includes 0.87 million shares used to cover stock option program

In the area of renewable energies, the Group obtained the necessary permits in 
September to launch a 12-megawatt wind energy project at its Dunkirk refinery.


3Q02    3Q01      %   Upstream - Key Figures              9m 02    9m 01       %

2,351   2,068  +14%   Hydrocarbon production (kboe/d)     2,379    2,151    +11%

1,604   1,370  +17%   *Liquids (kb/d)                     1,580    1,423    +11%     
4,102   3,811   +8%   *Gas (Mcfd)                         4,382    3,981    +10*

2,448   2,247   +9%   Operating income (M€)               6,789    7,405     -8%
                      excluding non-recurring items         

1,185   1,199   -1%   Net operating income (M€)           3,452    3,935    -12%
                      excluding non-recurring items     

1,430   1,939  -26%   Investments (M€)                    4,629    5,286    -12%

141       392  -64%   Divestments (M€)                      470      772    -39%
                      at selling price     

2,214   1,925  +15%   Cash flow from operating            5,611   6,115      -9%
                      activities (M€)     
                                 
Downstream

Downstream operating income excluding non-recurring items fell by 83% to 107 
million euros in the third quarter 2002 from 616 million euros in the third 
quarter 2001.

The decrease in operating income was due to the sharp deterioration in the 
Downstream environment which was exacerbated by the impact of a major turnaround 
program for maintenance on some of the company's refineries.

The main elements of changes in the environment were:

     •   strong deterioration of European refining margins;
     •   a declining dollar relative to the euro;
     •   lower marketing margins In Europe;
     •   a more difficult environment for specialties, notably aviation fuel, 
         and for heating oil;
     •   lower shipping rates.

Refinery throughput fell by 7% to 2,331 kb/d in the third quarter 2002 from 
2,495 kb/d in the third quarter 2001, due primarily to major turn-arounds for 
maintenance, safety and product-specification upgrades, which were particularly 
heavy during the third quarter 2002. Turn-arounds have affected the company's 
Normandy (France) and Leuna (Germany) refineries. In addition, the Natref 
refinery in South Africa, in which the Group has a 36% interest, was shut down 
for de-bottlenecking operations.

Substantial turn-arounds are expected to continue into the fourth quarter 2002.

Self-help programs have only partially compensated for the impact of a weaker 
environment and the refinery turn-arounds.

Net operating income excluding non-recurring items declined by 72%, to 134 
million euros in the third quarter 2002 from 475 million euros in the third 
quarter 2001. Relative to the percentage decline in operating income, the 
smaller decline in net operating income is due primarily to the stable 
contribution of equity affiliates.

TotalFinaElf signed an agreement with Agip and Galp that involved the sale of 
the TOTAL-branded network in Spain and the acquisition of service stations in 
Portugal and Italy. As a result, TotalFinaElf will increase its market share in 
Portugal from 2% to 6% and in Italy from 6% to 7%. In August, the Group sold its 
service station network in Switzerland.
 
3Q02   3Q01     %      Downstream - Key Figures          9m 02    9m 01       %

2,331  2,495   -7%     Refinery throughput*              2,394    2,491      -4%

107      616  -83%     Operating income (M€)               680    2,376     -71%
                       excluding non-recurring items
     
134      475  -72%     Net operating income (M€)           602    1,840     -67%
                       excluding non-recurring items     
287      320  -10%     Investments (M€)                    647      824     -21%

87        43 +102%     Divestments (M€)                    169    1,025     -84%
                       at selling price     

                       Cash flow from 
249      300  -17%     operating activities (M€)          1,635    2,157    -24%

* Including share of Cepsa

Chemicals

Sales in the Chemicals segment decreased by 1% to 4,825 million euros in the 
third quarter 2002 from 4,865 million euros in the third quarter 2001.

Operating income excluding non-recurring items increased by 20% to 269 million 
euros in the third quarter 2002 from 225 million euros in the third quarter 
2001, primarily due to better performance from the Specialties. The rebound in 
petrochemical margins seen at the beginning of the third quarter 2002 did not 
last

Net operating income excluding non-recurring items more than doubled to 206 
million euros in the third quarter 2002 from 99 million euros in the third 
quarter 2001.

The main highlight of the third quarter 2002 was the purchase of Enichem's 10% 
share in the Qatar-based Qapco Company, which raised TotalFinaElf's interest to 
20% and makes it the only partner with the national oil company, Qatar 
Petroleum. Qapco produces 525 kt/y of ethylene that is used largely as feedstock 
for its polyethylene units.

In October 2002, TotalFinaElf announced that it had agreed on a proposal to sell
its SigmaKalon paints activities to Bain Capital. The proposed sale is 
consistent with plans announced in 2000 to reposition and re-focus the Chemicals
segment.

3Q02   3Q01      %      Chemicals - key figures (M€)     9m 02      9m 01     %
                              
4,825  4,865   -1%      Sales                           14,730     15,353    -4%

  269    225  +20%      Operating income                   632        834   -24%
                        excluding non-recurring items 
    
  206     99 +108%      Net operating income               353        425   -17%
                        excluding non-recurring items     

  326    337   -3%      Investments                        866      1,083   -20%

   62    204  -70%      Divestments at                     103        316   -67%
                        selling price     

                        Cash flow from operating 
  379    211  +80%     activities                          417        891   -53%

 
Nine Months 2002 Results

All of the oil market parameters reflected weaker conditions in the first nine 
months of 2002 than in the same period of 2001. The average Brent oil price fell
by 7% to $24.4/b in the first nine months of 2002 from $26.1/b in the first nine
months of 2001. The European refining margin fell sharply to $5.3/t in the first
nine months of 2002 from $l5.6/t in the same period last year. The dollar 
depreciated by 3% relative to the euro, with the exchange rate averaging $0.93 
per euro in the first nine months of 2002 compared with $0.90 per euro in the 
first nine months of 2001.

Within this context, operating income from the business segments excluding non-
recurring items declined by 24% to 8,101 million euros in the first nine months 
of 2002 from 10,615 million euros in the first nine months of 2001. Non-
recurring items had a net positive impact of 21 million euros in the first nine 
months of 2002.

Net operating income from the business segments excluding non-recurring items 
fell by 29% to 4,407 million euros in the first nine months of 2002 from 6,200 
million euros in the first nine months of 2001.

Net income excluding non-recurring items fell by 24% to 4,651 million euros in 
the first nine months of 2002 from 6,094 million euros in the first nine months 
of 2001.

Earnings per share excluding non-recurring items, based on 669.7 million 
fully-diluted weighted-average shares for the first nine months of 2002, 
decreased to 6.94 euros from 8.72 euros in the first nine months of 2001, a 
limited decline of 20% that reflects the positive impact of the Group's buy-back
program.

During the first nine months of 2002, TotalFinaElf bought back 13.58 million of 
its shares (2) for 1.99 billion euros.

Reported net income was 4,569 million euros in the first nine months of 2002 
compared with 7,006 million euros in the first nine months of 2001. These 
results include non-recurring items which had a negative impact of 82 million 
euros on the first nine months of 2002 and a positive impact of 912 million 
euros for the same period in 2001. The 2002 non-recurring items that had a 
positive impact were composed primarily of gains on sales of financial 
participations; those that were negative included primarily the deferred tax 
impact of the change in UK tax laws, an increase in the provision related to the
explosion at the Toulouse fertilizer plant, and restructuring charges in the 
Downstream and Chemicals segments.

Hydrocarbon production rose by 10.6% to 2,379 kboe/d in the first nine months of 
2002 from 2,151 kboe/d in the first nine months of 2001.

Taking into account poor Downstream market conditions, particularly in the first
part of the year, and the high number of refinery turn-arounds, refinery 
throughput declined by 4% to 2,394 kb/d for the first nine months of 2002 from 
2,491 kb/d for the same period last year.

Chemical sales declined by 4% for the first nine months of 2002 versus the same 
period in 2001 to 14,730 million euros.

(2) Includes 2.91 million shares used to cover stock option program
 
Cancellation of Outstanding Shares

The Board of Directors approved the cancellation of 23,443,245 shares thus 
reducing share capital to 6,852,769,280 euros represented by 685,276,928 shares 
with a par value of 10 euros per share. The cancellation of these shares will 
allow the Group to continue to buy back its shares in the future.
 
Summary & Outlook

For the first nine months of 2002, investments were 6,334 million euros, with
Upstream accounting for 73% of the total.

Divestments in the first nine months of 2002, at selling price, were 1,513 
million euros, being comprised primarily of sales of financial participations 
and non-strategic assets.

Free cash flow(3)in the first nine months of 2002 was 3,952 million euros.

The buy-back program target of 2.5% of the shares over the full-year 2002 was 
achieved by October. From January through October 2002, TotalFinaElf bought back
17.92 million (4) of its own shares for 2.59 billion euros.

Since the start of the fourth quarter 2002, the European refining margin has 
improved significantly while the average Brent oil price has declined and the 
dollar weakened slightly against the euro.

  
The September 30, 2002 Interim financial statements are available on the 
TotalFinaElf website. These financial statements are unaudited. This document 
may contain forward-looking statements within the meaning of the Private 
Securities Litigatlon Reform Act of 1995 with respect to the financial 
condition, results of operations, business, strategy and plans of the 
TotalFinaElf Group. Such statements are based on a number of assumptions that 
could ultimately prove inaccurate, and are subject to a number of risk factors, 
including currency fluctuations, the price of petroleum products, the ability to
realize cost reductions and operating efficiencies without unduly disrupting 
business operations, environmental regulatory considerations and general 
economic and business conditions. The financial information contained in this 
document has been prepared in accordance with French GAAP, and certain elements 
would differ materially upon reconciliation to US GAAP. The TotalFinaElf Group 
does not assume any obligation to update publicly any forward-looking statement,
whether as a result of new information, future events or otherwise. Further 
information on factors which could affect the company's financial results is 
provided in documents filed by the Group and its affiliates with the French 
Commission des Operations de Bourse and the US Securities and Exchange 
Commission.
 
To access the conference call with Robert Castaigne, CFO of TotalFinaElf, today 
at 5:30 p.m (Paris time), please dial [phone] from Europe or 
1-303-713-7929 from the US (access code: TotalFinaElf). For a replay, please 
dial [phone] (access code: 122 032) from Europe or 1-703-736-7336
(access code: 122 032) from the US.

(3) free cash flow - cash flow from operating activities + divestments 
    - Investments
(4) includes 2.91 million shares used to cover stock option program

                       Operating Information by Segment
                   Third Quarter and First Nine Months 2002

Upstream

Combined liquids and gas production by region


  3Q02         3Q01     %      in kboe/d                9 m 02    9 m 01      %
 
                                                     
   777         680    + 14%    Europe                     851       728    + 17%

   650         598     + 9%    Africa                     664       614     + 8%

    41          48    - 15%    North America               42        49    - 14%

   219         214     + 2%    Far East                   220       223     - 1%

   474         381    + 24%    Middle East                425       389     + 9%

   186         142    + 31%    South America              172       142    + 21%

     4           5       -     Rest of world                5         6       -


 2,351      2,068    + 14%    Total production          2,379     2,151    + 11%

               


Liquids production by region

  3Q02         3Q01     %      in kb/d                  9 m 02    9 m 01      %


   437         391    + 12%    Europe                     454       401    + 13%

   585         525    + 11%    Africa                     595       545     + 9%

     4           6       -     North America                5         7       -

    22          27    - 19%    Far East                    23        27    - 15%

   427         331    + 29%    Middle East                382       347    + 10%

   125          85    + 47%    South America              116        90    + 29%

     4           5       -     Rest of world                5         6       -
                                                                  

 1,604       1,370    + 17%    Total production         1,580     1,423    + 11%




Gas production by region


  3Q02         3Q01     %      in Mcfd                  9 m 02    9 m 01      %


 1,865       1,556    + 20%    Europe                   2,163     1,766    + 22%

   345         385    - 10%    Africa                     369       361     + 2%

   196         219    - 11%    North America              198       223    - 11%

 1,129       1,076     + 5%    Far East                 1,126     1,123       - 

   238         254     - 6%    Middle East                223       220     + 1%

   329         321     + 2%    South America              303       288     + 5%

     -           -       -     Rest of world                -         -       -
                                                                  

 4,102       3,811     + 8%    Total production         4,382     3,981    + 10%






Downstream

Refinery throughput by region


  3Q02         3Q01     %      in kb/d                  9 m 02    9 m 01      %


   922       1,029    + 10%    France                     917     1,030    - 11%

 1,159       1,204     - 4%    Rest of Europe           1,195     1,186     + 1%

   250         262     - 5%    Rest of world              282       275     + 3%


 2,331       2,495     - 7%    Total throughput*        2,394     2,491     - 4%

* includes share of Cepsa



Chemicals

  3Q02         3Q01     %      Chemicals - key figures   9 m 02   9 m 01      %
                               (B€)

  4.82         4.86    - 1%    Chemical Sales            14.73    15.35     - 4%

  1.98         1.90    + 4%    •Base chemicals 
                                 & polymers               5.77     6.03     - 4%

  0.92         1.00    - 8%    •Intermediates &
                                 performance polymers     2.93     3.26    - 10%

  1.92         1.94    - 1%    •Specialities              6.00     6.02       -

     -         0.02      -     •Corporate - Chemicals     0.03     0.04       -


  0.27         0.22   + 23%    Operating Income*          0.63     0.83     -24%

  0.06         0.06      -     •Base chemicals & polymers    -     0.18       -

  0.06         0.06      -     •Intermediates &
                                 performance polymers     0.24     0.29     -17%

  0.17         0.12    +42%    •Specialities              0.47     0.41     +15%

 (0.02)       (0.02)     -     •Corporate - Chemicals    (0.08)   (0.05)      -


* excluding non-recurring items






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