Further re Final Results
Total Fina Elf.
13 March 2002
Final 2001 Results
Full-year 2001 net income excluding non-recurring items:
• 7.52 billion euros, a 2% decrease
• 10.85 euros per share, stable compared to 2000
Full-year 2001 net income:
• 7.66 billion euros, an 11% increase
Fourth quarter 2001 net income excluding non-recurring items:
• 1.42 billion euros, a 33% decrease
Dividend increasing by 15% to 3.80 euros per share
Paris, March 13, 2002 - The Board of Directors of TotalFinaElf, chaired by CEO
Thierry Desmarest, met on March 12, 2002, to review the consolidated accounts of
the 2001 fourth quarter and to close the full-year 2001 consolidated accounts.
The Board of Directors also reviewed and closed the parent company accounts.
The final 2001 results are in line with the estimates released on January 30,
2002.
Production growth combined with the impact of synergies and productivity
programs allowed TotalFinaElf to perform well despite the downturn in the 2001
oil market environment. Earnings per share in 2001 excluding non-recurring items
rose to a new record high of 10.85 euros from 10.80 euros in 2000; substantial
share buy-backs contributed to this improvement.
Final 2001 results
Consolidated sales declined by 8% to 105,318 million euros in 2001 from 114,557
million euros in 2000.
The oil market environment was generally weaker in 2001 than in 2000. The
average Brent oil price fell by 14% to 24.4 $/b in 2001 from 28.5 $/b in 2000,
and European refining margins fell by 35% to 15.4 $/t from 23.8 $/t. The dollar
strengthened by 2% against the euro in 2001, averaging 0.90 versus 0.92.
Operating income from the business segments excluding non-recurring items
decreased by 12% to 13,121 million euros in 2001 from 14,884 million euros in
2000. The impact of non-recurring items on 2001 operating income was -92 million
euros, composed primarily of FAS 121 write-downs and restructuring charges
related to the Chemicals segment.
Growth and synergies/productivity programs contributed 1.2 billion euros to
operating income in 2001, partially offsetting the 3.0 billion euro overall
negative impact of the weaker environment.
Net operating income from the business segments excluding non-recurring items
declined by 6% to 7,564 million euros in 2001 from 8,035 million euros in 2000.
Net income excluding non-recurring items declined by 2% to 7,518 million euros
in 2001 from 7,637 million euros in 2000.
Earnings per share excluding non-recurring items, based on 693.2 million fully-
diluted weighted average shares for 2001, was 10.85 euros compared to 10.80
euros in 2000. The record earnings per share was due in large part to the
accretive impact of significant share buy-backs.
Reported net income increased by 11% to 7,658 million euros in 2001 from 6,904
million euros in 2000. Non-recurring items had a net positive impact of 140
million euros in 2001 and a net negative impact of -733 million euros in 2000.
The 2001 nonrecurring items that had a positive impact on net income were
essentially the gains on sales of Sanofi-Synthelabo shares; while those having a
negative impact included mainly restructuring charges in the Downstream and
Chemicals segments, FAS 121 write-downs in the Chemicals segment, and provisions
related to the potential financial impact stemming from the fertilizer plant
explosion in Toulouse(1). The impact related to the devaluation of the Argentine
peso was not significant to the company's 2001 results and no provision has been
made thus far.
TotalFinaElf bought back 39.0 million of its shares(2) during 2001 for 6.1
billion euros.
The fully-diluted number of shares fell to 673.0 million at year-end 2001 from
708.9 million at year-end 2000.
The net-debt-to-equity ratio decreased to 30.9% at year-end 2001 from 32.9% at
yearend 2000.
Despite the downturn in the market environment, the return on capital
employed(3) (ROCE) was maintained at a high level of 20% in 2001 versus 21% in
2000.
Return on equity(4) (ROE) was 24% in 2001 compared to 27% in 2000.
(1)estimated liability in excess of insurance coverage in the event that Grande
Paroisse is found to be liable for all damages
(2)includes 2.76 million shares used to cover stock option program
(3)ROCE = net operating income excluding non-recurring items /capital employed
at beginning of year; excludes goodwill amortization in Chemicals
(4)ROE = (net income excluding non-recurring items + minority interest + MMPS)
/average equity after dividend
In 2001, investments increased to 10,566 million euros from 8,339 million euros
in 2000, due primarily to:
• investments related to the start-up of major projects in Upstream and, to a
lesser extent, in Chemicals,
• gas and power acquisitions in South America,
• buy-outs of certain minority interest shares in Downstream subsidiaries,
• and an increase in long-term loans.
Cash flow from operations declined to 12,303 million euros in 2001, a decrease
of 8% compared to 2000.
Divestments in 2001, based on selling prices, were 7,004 million euros. In
addition to the reimbursement of long-term loans, divestments consisted
primarily of the following:
• Sanofi-Synthelabo shares,
• most of the stake in Cogema,
• the Ultramar Diamond Shamrock shares,
• Downstream assets in France as required by the EU Commission,
• and non-strategic assets in the Upstream and Chemicals segments.
Free cash flow(5) rose to 8,741 million euros in 2001 from 8,291 million euros
in 2000.
Oil market environment
2001 2000 %
€/$ 0.90 0.92 +2%*
Brent ($/b) 24.4 28.5 -14%
European refining margin TRCV ($/t) 15.4 23.8 -35%
* change in the dollar versus the euro
Number of shares
millions 2001 2000 %
Fully-diluted weighted average shares 693.2 707.1 -2%
Fully-diluted shares at year-end 673.0 708.9 -5%
(5)free cash flow = cash flow from operating activities + divestments at
selling price - investments
Consolidated accounts - TotalFinaElf
in millions of euros 2001 2000 %
Sales 105,318 114,557 -8%
Operating income from the business segments 13,121 14,884 -12%
excluding non-recurring items
Net operating income from the business segments 7,564 8,035 -6%
excluding non-recurring items
Net income 7,518 7,637 -2%
excluding non-recurring items
Net income 7,658 6,904 +11%
Earnings per share (euros) 10.85 10.80 -
excluding non-recurring items
Dividend (euros/share) 3.80(1) 3.30 +15%
Investments(2) 10,566 8,339 +27%
Divestments(3) 7,004 3,241 +116%
based on selling price
Cash flow from operating activities 12,303 13,389 -8%
(1) pending approval at the May 7, 2002 AGM
(2) including increases in long-term loans
(3) including repayments of long-term loans
Impact of non-recurring items
in millions of euros 2001 2000
Impact of non-recurring items on operating income
Restructuring charges and early retirement plans -24 -64
FAS 121 -50 -269
Other -18 -49
Total -92 -382
Impact of non-recurring items on net income
Gain on asset sales +1 400 +358
Toulouse-AZF plant impact -600 -
Restructuring charges and early retirement plans -226 -469
FAS 121 -224 -459
Other -210 -163
Total +140 -733
Upstream
Operating income excluding non-recurring items from the Upstream segment
decreased by 11% to 9,022 million euros in 2001 from 10,113 million euros in
2000. Production growth combined with synergies and productivity programs
partially offset the negative impact of a weaker environment.
Net operating income excluding non-recurring items from the Upstream segment was
4,652 million euros in 2001, a 4% decrease from the 4,841 million euros in 2000.
The smaller decline in net operating income is related primarily to an increase
in the income from equity affiliates.
The return on capital employed for the Upstream segment remained at a high level
of 27% in 2001 compared to 29% in 2000.
Upstream liquids and gas production rose to 2,197 kboe/d in 2001 from 2,124
kboe/d in 2000, an increase of 3.4%. There was no acquisition impact on 2001
production. Excluding the impact of divestments, Upstream production grew by
5.3%.
Liquids production rose by 1.5% to 1,454 kb/d in 2001 from 1,433 kb/d in 2000.
Gas production increased by 8.1% to 4,061 Mcfd in 2001 from 3,758 Mcfd in 2000.
Production growth in 2001 resulted mainly from the start-ups of Elgin-Franklin
in the UK North Sea and heavy oil production from Sincor in Venezuela as well as
from increased production in Norway, Myanmar and Nigeria.
Driven by exploration/appraisal activities, proved reserves continued to grow,
rising 2% to 10,978 million boe at year-end 2001 and representing more than 13
years of production at the current rate. For consolidated subsidiaries, the
1999-2001 3-year average reserve replacement rate was 184%, and the 1999-2001 3-
year average reserve replacement cost was 3.4 $/boe(6).
Average 1999-2001 finding costs for consolidated subsidiaries, continued to
decline to a level of 0.6 $/boe, which compares favorably with the other major
oil companies.
Highlights of 2001 include first production from the Elgin-Franklin fields in
the North Sea, first production from the Girassol field in Angola in December,
and the completion of the construction of the Sincor upgrader, which has since
started operations in early 2002.
(6)excludes the Sincor upgrader
Upstream key figures 2001 2000 %
Production (kboe/d) 2,197 2,124 +3%
• Liquids (kb/d) 1,454 1,433 +1%
• Gas (Mcfd) 4,061 3,758 +8%
Proved reserves (Mboe) 10,978 10,762 +2%
• Liquids (Mb) 6,961 6,960 -
• Gas (Bcf) 21,929 20,705 +6%
Operating income (M€) 9,022 10,113 -11%
excluding non-recurring items
Net operating income (M€) 4,652 4,841 -4%
excluding non-recurring items
Investments (M€) 7,496 5,639 +33%
Divestments at selling price (M€) 1,116 820 +36%
Cash flow from operating activities (M€) 8,085 8,059 -
Downstream
Operating income excluding non-recurring items from the Downstream segment
decreased by 4% to 3,004 million euros in 2001 from 3,144 million euros in 2000.
The solid performance by Downstream in the deteriorating market environment of
2001 was due primarily to a 0.7 billion euro positive impact on operating income
from the implementation of synergies and productivity programs. This positive
impact largely offset the negative impact of changes in the market parameters.
Net operating income excluding non-recurring items from the Downstream segment
increased by 3% to 2,309 million euros in 2001 compared to 2,232 million euros
in 2000.
Despite the weaker environment, return on capital employed in the Downstream
segment improved to 22% in 2001 from 19% in 2000.
Refinery throughput increased to 2,465 kb/d in 2001 from 2,411 kb/d in 2000. The
capacity utilization rate further improved to 96% in 2001 from 94% in 2000.
Refined product sales increased slightly to 3,724 kb/d in 2001 from 3,695 kb/d
in 2000.
Downstream - key figures 2001 2000 %
Refinery throughput(1) (kb/d) 2,465 2,411 +2%
Refined product sales(2) (kb/d) 3,724 3,695 +1%
Operating income (M€) 3,004 3,144 -4%
excluding non-recurring items
Net operating income (M€) 2,309 2,232 +3%
excluding non-recurring items
Investments (M€) 1,180 1,163 +1%
Divestments at selling price (M€) 1,079 685 +58%
Cash flow from operating activities (M€) 4,374 3,145 +39%
(1)including share of Cepsa
(2)including trading and share of Cepsa
Chemicals
Sales for the Chemicals segment declined by 6% to 19,560 million euros in 2001
from 20,843 million euros in 2000.
Operating income excluding non-recurring items fell by 33% to 1,095 million
euros in 2001 from 1,627 million euros in 2000.
The 2001 decrease in operating income for the Petrochemicals & plastics sector
was due primarily to lower margins. Excluding divestment impacts, operating
income for the Intermediates & performance polymers sector was stable in 2001
relative to 2000. Specialty chemicals sales increased in 2001 due to
acquisitions made in 2000, but operating income suffered the effects of the
particularly unfavorable situation in the US and in the electronics industry.
The Chemicals environment had a negative impact on operating income in 2001 of
approximately 0.6 billion euros.
Net operating income excluding non-recurring items fell by 37% to 603 million
euros in 2001 from 962 million euros in 2000.
The return on capital employed for the Chemicals segment was 7%7 in 2001, a
decline from 2000.
Chemicals - key figures (M€) 2001 2000 %
Sales 19,560 20,843 -6%
Operating income 1,095 1,627 -33%
excluding non-recurring items
Net operating income 603 962 -37%
excluding non-recurring items
Investments 1,611 1,353 +19%
Divestments at selling price 541 120 +351%
Cash flow from operating activities 1,261 1,768 -29%
Parent company TOTAL FINA ELF S.A. and proposed dividend
The parent company TOTAL FINA ELF reported earnings of 3,829 million euros in
2001 compared to 3,012 million euros in 2000. The Board of Directors of
TotalFinaElf, after closing the accounts, decided to propose at the May 7, 2002
Annual General Meeting (AGM) a cash dividend of 3.80 euros per share,
representing a 15% increase from the previous year, to which will be added the
avoir fiscal (French tax credit) pursuant to the terms in force. The payment
date for the proposed dividend will be May 17, 2002.
(7)excluding 145 M€ goodwill amortization
Outlook
For 2002, TotalFinaElf expects to maintain a high investment level of 9.7
billion euros, with priority given to Upstream growth. The 2002 budget for
investments is split 73% in Upstream, 14% in Downstream, and 13% in Chemicals.
The ongoing divestment program is expected to generate about 2 billion euros in
2002, allowing the company to continue its share buy-back program. In the first
two months of 2002, the company repurchased 2.6 million shares for 0.4 billion
euros.
The business segments are well positioned to further improve their performance.
Upstream production growth should average 6% per year from now through 2007,
with 10% growth in 2002 versus 2001 and 5% per year thereafter. The Downstream
segment is continuing to implement self-help plans that should lead to a lower
refining breakeven point(8) of 5 $/t in 2005. Finally, the Chemicals segment is
poised to benefit from increased volume capacity as well as a renewed emphasis
on financial discipline.
The target for the 1999-2003 self-help program has been revised upwards from 4.4
billion euros to 4.8 billion euros, assuming a constant environment. The
increase is due primarily to a larger impact of Upstream volume growth.
The 2003 target for return on capital employed in the business segments, based
on a reference environment(9), is confirmed at 16%, with targets for the
segments of 17.5% for Upstream, 15% for Downstream, and 12% for Chemicals.
Using the same reference environment(9), the 2005 target has been set at 16.5%
for the segments, with 17.5% for Upstream, 16% for Downstream, and 14% for
Chemicals.
Over the first two months of 2002, the oil market environment has been mixed.
European refining margins have deteriorated sharply and petrochemical margins
are very low, while the oil price and dollar have remained relatively stable
compared to the fourth quarter 2001.
Strategically well-positioned segments and a continuing policy of disciplined
capital management should allow the company to continue to deliver high-return
growth.
To listen to the presentation to analysts by CEO Thierry Desmarest today at
11:00 (Paris time), please visit our web site www.totalfinaelf.com or call + 44
(0)208 240 8242 / + 44 (0)208 240 8243 in Europe or call 1 (303)224 6998 in the
US (access code: TotalFinaElf). To listen to a replay of today's presentation,
visit our web site or call + 44 (0) 208 288 4459 (access code: 670 232) in
Europe or 1 (303) 804 1855 in the US (access code: 154 2862).
The financial information provided in this press release for the fourth quarter
of 2000 is unaudited and based on internal reporting. The information provided
for the fourth quarter of 2001 is unaudited. This document contains forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results of
operations, business, strategy and plans of TotalFinaElf. Such statements are
based on a number of assumptions that could ultimately prove inaccurate, and are
subject to a number of risk factors, including but not limited to currency
fluctuations, the price of crude oil and petroleum products, the ability to
realize cost reductions and operating efficiencies, 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. TotalFinaElf 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 company and its
affiliates with the French Commission des Operations de Bourse and the US
Securities and Exchange Commission.
(8)based on major products and specialty products
(9)€/$ = 1 ; Brent = 17$/b ; European refining margin (TRCV) = 12$/t ;
mid-cycle for Chemicals ROCE excludes goodwill amortization in Chemicals
2001 OPERATING INFORMATION BY SEGMENT
Upstream
Combined liquids and gas production by region
in kboe/d 2001 2000 %
Europe 759 729 +4%
Africa 611 624 -2%
North America 49 54 -9%
Far East 219 197 +11%
Middle East 100 92 +9%
South America 153 120 +28%
Rest of World 6 6 -
Consolidated production 1,897 1,822 +4%
Africa 9 8 +13%
Middle East 291 294 -1%
Rest of World - - -
Equity and non-consolidated affiliates 300 302 -1%
Total production 2,197 2,124 +3%
Liquids production by region
in kb/d 2001 2000 %
Europe 417 398 +5%
Africa 540 560 -4%
North America 7 9 -22%
Far East 24 26 -8%
Middle East 100 92 +9%
South America 102 74 +38%
Rest of World 6 6 -
Consolidated production 1,196 1,165 +3%
Africa 9 8 +13%
Middle East 249 260 -4%
Rest of World - - -
Equity and non-consolidated affiliates 258 268 -4%
Total production 1,454 1,433 +1%
Gas production by region
in Mcfd 2001 2000 %
Europe 1,852 1,786 +4%
Africa 369 332 +11%
North America 221 240 -8%
Far East 1,114 966 +15%
Middle East - - -
South America 283 250 +13%
Rest of world - - -
Consolidated production 3,839 3,574 +7%
Africa - - -
Middle East 222 184 +21%
Rest of World - - -
Equity and non-consolidated affiliates 222 184 +21%
Total production 4,061 3,758 +8%
Downstream
Refinery throughput by region
in kb/d 2001 2000 %
France 1,037 980 +6%
Rest of Europe 979 950 +3%
United States 159 182 -13%
Asia 25 25 -
Africa and French West Indies 86 95 -9%
Share of Cepsa 179 179 -
Total refinery throughput 2,465 2,411 +2%
Refined product sales by region*
in kb/d 2001 2000 %
Europe 3,026 2,915 +4%
Africa 249 276 -10%
Americas 320 356 -10%
Middle East 54 68 -21%
Asia 61 63 -3%
Rest of World 14 17 -18%
Total refined product sales 3,724 3,695 +1%
*includes trading and share of Cepsa
Chemicals
Chemicals - key figures (B€) 2001 2000 %
Sales by sector
• Petrochemicals & plastics 6.99 7.98 -12%
• Intermediates & performance polymers 4.75 5.31 -11%
• Specialties 7.77 7.50 +4%
Operating income by sector*
• Petrochemicals & plastics 0.13 0.55 -76%
• Intermediates & performance polymers 0.45 0.48 -6%
• Specialties 0.50 0.62 -19%
* excluding non-recurring items
Fourth Quarter 2001 Results
Fourth quarter 2001 results
Consolidated sales fell by 24% to 23,689 million euros in the fourth quarter
2001 from 31,236 million euros in the fourth quarter 2000.
The oil market environment declined sharply in the fourth quarter 2001. The
average Brent oil price fell by 35% to 19.4 $/b in the fourth quarter 2001 from
29.7 $/b in the same quarter a year ago. The European refining margins fell
sharply to 14.7 $/t from 31.0 $/t over the same period. The dollar lost ground
against the euro, falling 3% to 0.90 dollar per euro in the fourth quarter 2001
from 0.87 dollar per euro in the fourth quarter 2000.
Operating income from the business segments excluding non-recurring items fell
by 38% to 2.51 billion euros in the fourth quarter 2001 compared to 4.05 billion
euros for the same quarter last year. Non-recurring items in the fourth quarter
2001 had a negative impact of -0.09 billion euros on operating income and
included primarily restructuring charges and FAS 121 write-downs in the
Chemicals segment.
Net operating income from the business segments excluding non-recurring items
fell by 29% to 1.36 billion euros in the fourth quarter 2001 from 1.91 billion
euros in the fourth quarter 2000.
Net income excluding non-recurring items fell by 33% to 1.42 billion euros in
the fourth quarter 2001 from 2.13 billion euros in the fourth quarter 2000.
Earnings per share excluding non-recurring items, based on 676.1 million fully-
diluted weighted average shares for the fourth quarter 2001, was 2.11 euros
compared to 2.99 euros for the fourth quarter 2000. The limited decrease of 29%
reflects the accretive impact of significant share buy-backs.
Reported net income for the fourth quarter 2001 was 0.65 billion euros, a 39%
decrease compared to the fourth quarter 2000. These results include non-
recurring items amounting to 0.77 billion euros in the fourth quarter 2001 and
1.07 billion euros in the fourth quarter 2000.
Oil market environment
4Q01 4Q00 %
€/$ 0.90 0.87 -3%*
Brent ($/b) 19.4 29.7 -35%
European refining margin - TRCV ($/t) 14.7 31.0 -53%
*change in the dollar versus the euro
Number of shares
in millions 4Q01 4Q00 %
Fully-diluted weighted average shares 676.1 711.8 -5%
Consolidated accounts - TotalFinaElf
in billion euros 4Q01 4Q00 %
Sales 23.69 31.24 -24%
Operating income from the business segments 2.51 4.05 -38%
excluding non-recurring items
Net operating income from the business segments 1.36 1.91 -29%
excluding non-recurring items
Net income 1.42 2.13 -33%
excluding non-recurring items
Net income 0.65 1.06 -39%
Earnings per share (euros) 2.11 2.99 -29%
excluding non-recurring items
Investments(1) 3.10 2.20 +41%
Divestments(2) 1.71 0.83 +106%
at selling price
(1)includes increases in long-term loans
(2)includes repayments of long-term loans
Non-recurring items
in billion euros 4Q01 4Q00
Impact of non-recurring items on operating income
Restructuring charges and early retirement plans -0.02 -0.06
FAS 121 -0.05 -0.27
Other -0.02 -0.05
Total -0.09 -0.38
Impact of non-recurring items on net income
Gain on asset sales +0.43 -0.11
Toulouse-AZF plant impact -0.60 -
Restructuring charges and early retirement plans -0.19 -0.47
FAS 121 -0.22 -0.46
Other -0.19 -0.03
Total -0.77 -1.07
Upstream - key figures 4Q01 4Q00 %
Production (Mboe/d) 2.33 2.17 +7%
• Liquids (Mb/d) 1.54 1.41 +9%
• Gas (Bcfd) 4.32 4.16 +4%
Operating income (B€) 1.62 2.76 -41%
excluding non-recurring items
Investments (B€) 2.21 1.54 +44%
Downstream - key figures 4Q01 4Q00 %
Refinery throughput* (Mb/d) 2.41 2.44 -1%
Operating income (B€) 0.63 1.01 -38%
excluding non-recurring items
Investments (B€) 0.36 0.57 -37%
*including share of Cepsa
Chemicals - key figures (B€) 4Q01 4Q00 %
Sales 4.21 5.34 -21%
Operating income 0.26 0.28 -7%
excluding non-recurring items
Investments 0.53 0.17 +212%
This information is provided by RNS
The company news service from the London Stock Exchange
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