Result of AGM
Total S.A.
12 May 2006
May 12, 2006 Annual Meeting
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Arkema spin-off approved
20% dividend increase
Pursuing a major investment program to develop the Upstream
and upgrade the refining system
Paris - May 12, 2006 - At the Annual Meeting held on May 12, 2006, chaired by
CEO Thierry Desmarest, the shareholders of Total approved all the proposed
resolutions recommended by the Board of Directors.
During his address, Thierry Desmarest said:
'Total delivered a strong performance in 2005. Adjusted net income increased by
31%, reflecting the Group's ability to benefit from the stronger market
environment, despite inflationary pressure from service companies. Total's
performance ranks among the best of the majors in terms of increase in adjusted
earnings per share and in terms of return on capital employed, which rose to 27%
in 2005, a performance obtained thanks to the contribution of the teams of the
Group (...)
Continued exploration success, the launching of Yemen LNG and the acquisition of
Deer Creek in Canada, among other things, have allowed us to increase the level
of proved and probable reserves to 20 billion equivalent barrels at the end of
2005, which represents close to 22 years of production at the current rate (...)
The Group invested 13.9 billion dollars in 2005, a 26% increase compared to
2004. This represents a significant level of activity that we expect will
continue at comparable levels from now through 2010 and should allow us mainly
to increase production by close to 4% per year on average over the 2005-2010
period. It should also allow us to upgrade our refining system in Europe and the
US to adapt to changes in the supply-demand balance as well as expand our
petrochemical activities in Asia (...)
Total is confident in its ability to extend its long-term profitable growth
through exploration success and the development of giant projects currently
being negotiated. The year 2005 has been highlighted by significant progress in
preparing for such long-term growth, notably through LNG projects in Yemen and
in Qatar, and by the launch of the development of the giant Akpo field in
Nigeria and Moho-Bilondo in Congo (...)
In the first quarter 2006, demand for oil continued to be strong while supplies
were subject to serious disruptions, notably in Nigeria. In this context, oil
prices continued to rise, while refining margins retreated from their 2005
average. The environment for Chemicals was more mixed, with higher raw material
costs putting pressure on petrochemicals. Adjusted net income increased by 16%
to 3,376 million euros from 2,919 million euros in the first quarter 2005,
thanks notably to strict control of technical costs, which are the lowest among
the major oils (...)
Total is continuing to implement its strategy of long-term growth, mainly
through an active investment program, which in dollar terms increased by 41%
compared to the first quarter 2005. Since the beginning of the year 2006, we
made significant progress, notably through ongoing exploration success and the
agreement to enter into the Sulige field in China.'
Thierry Desmarest also emphasized that, in order to limit tensions on prices in
the consuming countries, oil production capacities growth should be pursued and
facilitated while energy consumption should be better managed throughout the
world.
During his address, Thierry Desmarest presented a new organization for the Group
that was proposed to and approved by the Board of Directors. In early 2007, the
position of Chairman and CEO would be split. Christophe de Margerie, currently
Executive Vice President in charge of Exploration and production, would become
CEO of the Group and Thierry Desmarest would remain Chairman of the Board.
During the meeting, the resolution about the spin-off of Arkema and the
allocation of Arkema shares to Total's shareholders was approved.
The shareholders approved the 2005 accounts and the payment of a cash dividend
of 6.48 euros per share, an increase of 20% from last year. Taking into account
the interim dividend of 3 euros per share paid on November 24, 2005, the
remaining balance of 3.48 euros per share will be paid on May 18, 2005.
The following resolutions were also approved at the Annual Meeting:
• Renewal of the three-year term for the following Directors:
Mrs Anne Lauvergeon, and Mr Daniel Bouton, Mr Bertrand Collomb,
Mr Antoine Jeancourt-Galignani, Mr Michel Pebereau and Mr Pierre Vaillaud,
• Appointment of Mr. Christophe de Margerie as Director for a three-year term,
• Decision to split by four the par value of the shares comprising the share
capital,
• Authorization for the Board of Directors to trade the Company's share,
pursuant to the provisions of Article L. 225-209 of the French Code of
Commerce.
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Total is the fourth largest oil and gas company in the world with operations in
more than 130 countries. Total's activities cover the whole energy chain of the
petroleum industry: exploration, oil and gas production, refining and marketing,
trading and power generation. The Group is also a major player in chemicals.
Total has more than 111,000 employees worldwide. More information can be found
on the company's website: www.total.com
This information is provided by RNS
The company news service from the London Stock Exchange