http://www.businesswire.com/news/home/20100730005279/en
PARIS--(Business Wire)--
Regulatory News:
Total (Paris:FP) (LSE:TTA) (NYSE:TOT):
Main results1-2
-- Second quarter adjusted net income3 3.0 billion euros +72%
3.8 billion dollars +60%
1.32 euros per share +71%
1.68 dollars per share +60%
-- First half adjusted net income3 5.3 billion euros +37%
7.0 billion dollars +36%
-- First half net income4 5.7 billion euros +28%
Highlights since the beginning of the second quarter 2010
* Upstream production of 2,359 kboe/d in the second quarter 2010, an increase of
8% compared to the second quarter 2009
* Started up Yemen LNG liquefaction Train II and Qatofin ethane cracker in Qatar
* Launched development of the Islay field in the North Sea
* New discoveries on deep-offshore Block 15/06 in Angola and OML 136 in Nigeria
* Signed an agreement to acquire UTS and its 20% interest in the Fort Hills
heavy oil project in Canada
* Added exploration acreage through acquisition of interests in a block on the
pre-salt area of the Santos Basin in Brazil, in two permits in the Arafura Sea
in Indonesia, in Block 72 in Yemen and on the joint development zone between
Nigeria, Sao Tomé and Principe
* Divested Upstream assets in Norway, Valhall and Hod, and in the Gulf of
Mexico, Virgo and Matterhorn
* Divested the Specialty chemicals consumer products unit Mapa Spontex
* Continued to develop the new energies portfolio through :
- Equity investment and strategic partnership with Amyris for research and
development to produce products from biomass
- Construction launched in Abu Dhabi of the largest concentrated solar energy
plant in the world
- Equity investment in AE Polysilicon, a company which has developed advanced
polysilicon production technology for solar panels
The Board of Directors of Total, led by Chairman and CEO Christophe de Margerie,
met on July 29, 2010 to review the Group`s second quarter and first half 2010
accounts.
Adjusted net income for the second quarter 2010 was 2,961 million euros (M€), an
increase of 72% compared to the second quarter 2009 and 29% compared to first
quarter 2010. Expressed in dollars, the increases were 60% and 19%,
respectively.
The Board of Directors approved the 2010 interim dividend of 1.14 €/share for
payment in November5, at the same level as the interim and final dividend
payments for 2009.
Commenting on the results, Christophe de Margerie said :
«Our industry was marked by the accident in the second quarter on the Macondo
well in the Gulf of Mexico. We are reminded once again that safety and the
environment must remain our top priorities in this business. Total reacted
immediately by launching a complete review of all its existing procedures and
drilling operations, including the procedures to be implemented in the event of
an accident. More generally, the Group is pursuing a particularly strict policy
to put in place the necessary means to define and apply rigorous processes, by
emphasizing the proper training and management of our teams.
In the second quarter, the economic environment for our activities was globally
favorable with Brent trading around 75 $/b, refining margins at slightly higher
levels and improved Chemicals environment compared to the first quarter 2010.
However, natural gas prices were still depressed.
In this context, adjusted net income rose to 3.8 billion dollars (B$) in the
second quarter 2010, a 60% increase compared to the second quarter 2009 and a
19% increase compared to the first quarter 2010, which is at the level of the
best among the majors. In euros, the increase in adjusted net income was 72% and
29%, respectively, due to the appreciation of the dollar this quarter.
Cash flow from operations increased to 6.3 billion dollars, more than twice the
level of the same quarter last year. As of June 30, 2010, the Group`s
net-debt-to-equity ratio was 23%.
In addition to the generally favorable environment, these results reflect our
strong operational performance and the growth in our activities. In particular,
Upstream production grew by 8% compared to the second quarter 2009 and by 6% in
the first half 2010 compared to the first half last year, essentially due to the
ramp-ups on major projects started up in 2009.
In addition, the Group continued to expand its asset portfolio : in the
Upstream, the agreement with UTS should allow Total to acquire 20% of the Fort
Hills project in Canada and reconfigure its heavy oil portfolio there. The Group
also acquired several exploration permits in Brazil, Indonesia, Yemen and the
joint development zone between Nigeria, Sao Tomé and Principe. In the Downstream
and Chemicals, completing the financing for the Jubail refinery and starting up
the Qatofin cracker in Qatar are new steps in progressively repositioning the
portfolio, with projects that are particularly robust and oriented toward
growing markets. In new energies, the Group expanded its portfolio notably
through an equity interest and strategic partnership in biomass and by launching
the construction of a concentrated solar energy plant in Abu Dhabi.
Based on strong operational performance, a capacity to adapt to changes in the
environment and a solid balance sheet, the Group approaches the second half of
2010 confidant in its outlook and its strategy for growth as an integrated
major.»
■ ■ ■
* Key figures6
2Q10 1Q10 2Q09 2Q10 in millions of euros 1H10 1H09 1H10
vs except earnings per share and number of shares vs
2Q09 1H09
41,329 37,603 31,430 +31% Sales 78,932 61,471 +28%
5,461 4,506 3,044 +79% Adjusted operating income from business segments 9,967 6,659 +50%
2,960 2,283 1,678 +76% Adjusted net operating income from business segments 5,243 3,728 +41%
2,203 1,971 1,451 +52% -- Upstream 4,174 2,933 +42%
483 155 156 x3.1 -- Downstream 638 756 -16%
274 157 71 x3.9 -- Chemicals 431 39 x11.1
2,961 2,296 1,721 +72% Adjusted net income 5,257 3,834 +37%
1.32 1.02 0.77 +71% Adjusted fully-diluted earnings per share (euros) 2.34 1.72 +36%
2,242.5 2,242.7 2,235.6 - Fully-diluted weighted-average shares (millions) 2,242.6 2,235.5 -
3,101 2,613 2,169 +43% Net income (Group share) 5,714 4,459 +28%
3,446 3,709 3,634 -5% Investments 7 7,155 6,569 +9%
3,372 3,644 3,575 -6% Investments including net investments in equity affiliates and non-consolidated companies7 7,016 6,415 +9%
850 1,048 858 -1% Divestments 1,898 1,330 +43%
4,942 5,260 1,939 x2.5 Cash flow from operations 10,202 5,933 +72%
5,250 3,739 3,237 +62% Adjusted cash flow from operations 8,989 6,609 +36%
2Q10 1Q10 2Q09 2Q10 in millions of dollars 8 1H10 1H09 1H10
vs except earnings per share and number of shares vs
2Q09 1H09
52,521 52,001 42,845 +23% Sales 104,727 81,929 +28%
6,940 6,231 4,150 +67% Adjusted operating income from business segments 13,224 8,875 +49%
3,762 3,157 2,287 +64% Adjusted net operating income from business segments 6,956 4,969 +40%
2,800 2,726 1,978 +42% -- Upstream 5,538 3,909 +42%
614 214 213 x2 9 -- Downstream 846 1,008 -16%
348 217 97 x3.6 -- Chemicals 572 52 x11
3,763 3,175 2,346 +60% Adjusted net income 6,975 5,110 +36%
1.68 1.42 1.05 +60% Adjusted fully-diluted earnings per share (dollars) 3.11 2.29 +36%
2,242.5 2,242.7 2,235.6 - Fully-diluted weighted-average shares (millions) 2,242.6 2,235.5 -
3,941 3,614 2,957 +33% Net income (Group share) 7,581 5,943 +28%
4,379 5,129 4,954 -12% Investments7 9,493 8,755 +8%
4,285 5,039 4,873 -12% Investments including net investments in equity affiliates and non-consolidated companies7 9,309 8,550 +9%
1,080 1,449 1,170 -8% Divestments 2,518 1,773 +42%
6,280 7,274 2,643 x2.4 Cash flow from operations 13,536 7,908 +71%
6,672 5,171 4,413 +51% Adjusted cash flow from operations 11,927 8,808 +35%
* Second quarter 2010 results
>Operating income
In the second quarter 2010, the Brent price averaged 78.2 $/b, an increase of
32% compared to the second quarter 2009 and 2% compared to the first quarter
2010. The average natural gas price, however, remained depressed, increasing by
only 2% compared to the second quarter 2009 and decreasing by 5% compared to the
first quarter 2010. The European refining margin indicator (ERMI) averaged 31.2
$/t in the second quarter 2010, an increase of 82% compared to the second
quarter 2009 and 6% compared to the first quarter 2010. The environment for
petrochemicals and specialty chemicals showed a net improvement, reflecting
continued demand growth since the second half of 2009.
The euro-dollar exchange rate averaged 1.27 $/€ in the second quarter 2010
compared to 1.36 $/€ in second quarter 2009 and 1.38 $/€ in the first quarter
2010.
In this environment, the adjusted operating income from the business segments
was 5,461 M€, an increase of 79% compared to the second quarter 20099. Expressed
in dollars, the increase was 67%.
The effective tax rate10 for the business segments was 54% in the second quarter
2010 compared to 56% in the second quarter 2009, essentially due to the larger
relative contribution of Downstream and Chemicals to the results.
Adjusted net operating income from the business segments was 2,960 M€ compared
to 1,678 M€ in the second quarter 2009, an increase of 76%.
Expressed in dollars, adjusted net operating income from the business segments
was 3.8 billion dollars (B$), an increase of 64% compared to the second quarter
2009.
>Net income
Adjusted net income was 2,961 M€ compared to 1,721 M€ in the second quarter
2009, an increase of 72%. Expressed in dollars, adjusted net income increased by
60%.
This excludes the after-tax inventory effect, special items, and the Group`s
equity share of adjustment items related to Sanofi-Aventis.
* The after-tax inventory effect had a positive impact on net income of 169 M€
in the second quarter 2010 and a positive impact of 788 M€ in the second quarter
2009.
* Special items had a positive impact on net income of 11 M€ in the second
quarter 2010 and a negative impact on net income of 221 M€11 in the second
quarter 2009.
* The Group`s share of adjustment items related to Sanofi-Aventis had a negative
impact on net income of 40 M€ in the second quarter 2010 and a negative impact
on net income of 119 M€ in the second quarter 2009.
Net income (Group share) was 3,101 M€ compared to 2,169 M€ in the second quarter
2009.
The effective tax rate9 for the Group was 53% in the second quarter 2010.
The Group did not buy back shares in the second quarter 2010.
Adjusted fully-diluted earnings per share, based on 2,242.5 million
fully-diluted weighted-average shares, was 1.32 euros compared to 0.77 euros in
the second quarter 2009, an increase of 71%.
Expressed in dollars, adjusted fully-diluted earnings per share increased by 60%
to 1.68 dollars.
>Investments - divestments12
Investments, excluding acquisitions and including net investments in equity
affiliates and non-consolidated companies, were 3.1 B€ (3.9 B$) in the second
quarter 2010 compared to 3.1 B€ (4.2 B$) in the second quarter 2009.
Acquisitions were 305 M€ in the second quarter 2010, essentially comprised of
interests in new energies and carried investments in the Barnett Shale in the
United States.
Asset sales in the second quarter 2010 were 758 M€, essentially comprised of the
sale of Mapa Spontex and sales of Sanofi-Aventis shares.
Net investments13 were 2.6 B€ (3.3 B$) in the second quarter 2010 compared to
2.8 B€ (3.8 B$) in the second quarter 2009.
>Cash flow
Cash flow from operations was 4,942 M€ in the second quarter 2010 compared to
1,939 M€ in the second quarter 2009, reflecting essentially the increase in net
income and a lower increase in working capital requirements. Expressed in
dollars, cash flow from operations was 6.3 B$.
Adjusted cash flow from operations14 was 5,250 M€, an increase of 62% compared
to the second quarter 2009. Expressed in dollars, adjusted cash flow from
operations was 6.7 B$, an increase of 51%.
The Group`s net cash flow15 was 2,346 M€ compared to a negative 837 M€ in the
second quarter 2009. Expressed in dollars, net cash flow was 3.0 B$ in the
second quarter 2010 compared to a negative 1.1 B$ in the second quarter 2009.
* First half 2010 results
>Operating income
Compared to the first half 2009, the average Brent price increased by 50% to
77.3 $/b. The average natural gas price, however, decreased by 8%. The ERMI
European refining margin indicator was 30.4 $/t compared to 23.8 $/t in the
first half 2009. The environment for the petrochemicals and specialty chemicals
improved significantly.
The euro-dollar exchange rate was 1.33 $/€, stable compared to the first half
2009.
In this context, the adjusted operating income from the business segments was
9,967 M€, an increase of 50% compared to the first half 200916.
The effective tax rate for the business segments was 55% in the first half 2010
compared to 54% in the first half 2009.
Adjusted net operating income from the business segments was 5,243 M€ compared
to 3,728 M€ in the first half 2009, an increase of 41%.
This increase is lower than that of the adjusted operating income from the
business segments essentially due to changes in other financial income and
expenses and the effective tax rate.
Expressed in dollars, adjusted net operating income from the business segments
increased by 40%.
>Net income
Adjusted net income increased by 37% to 5,257 M€ from 3,834 M€ in the first half
2009. Expressed in dollars, adjusted net income increased by 36%.
This excludes the after-tax inventory effect, special items, and the Group`s
equity share of adjustment items related to Sanofi-Aventis.
* The after-tax inventory effect had a positive impact on net income of 513 M€
in the first half 2010 and a positive impact of 1,115 M€ in the first half 2009.
* Special items had a positive impact on net income of 25 M€ in the first half
2010 and a negative impact on net income of 308 M€ in the first half 200917.
* The Group`s share of adjustment items related to Sanofi-Aventis had a negative
impact on net income of 81 M€ in the first half 2010 and a negative impact on
net income of 182 M€ in the first half 2009.
Net income (Group share) was 5,714 M€ compared to 4,459 M€ in the first half
2009.
The Group did not buy back shares in the first half 2010. On June 30, 2010,
there were 2,243.6 million fully-diluted shares compared to 2,235.5 on June 30,
2009.
Adjusted fully-diluted earnings per share, based on 2,242.6 million
weighted-average shares was 2.34 euros compared to 1.72 euros in the first half
2009, an increase of 36%.
Expressed in dollars, adjusted fully-diluted earnings per share was 3.11
compared to 2.29 in the first half 2009, an increase of 36%.
>Investments - divestments18
Investments excluding acquisitions and including net investments in equity
affiliates and non-consolidated companies, were 5.5 B€ (7.3 B$) in the first
half 2010 compared to 5.8 B€ (7.8 B$) in the first half 2009.
Acquisitions were 1.5 B€ in the first half 2010, essentially comprised of the
acquisition of assets in the Barnett Shale in the US and the Laggan Tormore
project in the UK.
Asset sales in the first half 2010 were 1.7 B€, essentially comprised of sales
of Sanofi-Aventis shares and the sale of Mapa Spontex.
Net investments19 were 5.3 B€ (7.0 B$) in the first half 2010, compared to 5.2
B€ (7.0 B$) in the first half 2009.
>Cash flow
Cash flow from operations was 10,202 M€, an increase of 72% compared to the
first half 2009.
Adjusted cash flow from operations20 was 8,989 M€, an increase of 36%. Expressed
in dollars, adjusted cash flow from operations was 11.9 B$, an increase of 35%.
The Group`s net cash flow21 was 4,945 M€ compared to 694 M€ in the first half
2009. Expressed in dollars, net cash flow was 6.6 B$ in the first half 2010.
The net-debt-to-equity ratio was 22.7% on June 30, 2010 compared to 21.5% on
March 31, 2010 and 24.7% on June 30, 200922, in line with the Group`s
objectives.
* Analysis of business segment results
Upstream
>Environment - liquids and gas price realizations*
2Q10 1Q10 2Q09 2Q10 1H10 1H09 1H10
vs vs
2Q09 1H09
78.2 76.4 59.1 +32% Brent ($/b) 77.3 51.7 +50%
74.8 74.2 54.8 +36% Average liquids price ($/b) 74.5 48.2 +55%
4.82 5.06 4.71 +2% Average gas price ($/Mbtu) 4.94 5.36 -8%
54.8 55.5 44.2 +24% Average hydrocarbons price ($/boe) 55.2 41.5 +33%
* consolidated subsidiaries, excluding fixed margin and buy-back contracts.
>Production
2Q10 1Q10 2Q09 2Q10 Hydrocarbon production 1H10 1H09 1H10
vs vs
2Q09 1H09
2,359 2,427 2,182 +8% Combined production (kboe/d) 2,393 2,252 +6%
1,327 1,373 1,328 - -- Liquids (kb/d) 1,350 1,370 -1%
5,549 5,829 4,686 +18% -- Gas (Mcf/d) 5,689 4,821 +18%
In the second quarter 2010, hydrocarbon production was 2,359 thousand barrels of
oil equivalent per day (kboe/d), an increase of 8% compared to the second
quarter 2009, essentially as a result of :
* +7.5% for production ramp-ups on new fields, net of the normal decline, and a
lower level of turnarounds,
* +2% for lower OPEC reductions and an improvement in gas demand,
* +1% for lower levels of disruptions in Nigeria related to security issues,
* +0.5% for changes in the portfolio,
* -3% for the price effect23.
In the first half 2010, hydrocarbon production was 2,393 kboe/d, an increase of
close to 6.5% compared to the first half 2009, essentially as a result of :
* +6.5% for production ramp-ups on new fields, net of the normal decline, and a
lower level of turnarounds,
* +2% for lower OPEC reductions and an improvement in gas demand,
* +1% for lower levels of disruptions in Nigeria related to security issues,
* +0.5% for changes in the portfolio,
* -3.5% for the price effect23.
For the first half 2010, the ramp-up on new projects, net of the normal decline
and lower level of turnarounds, provided the Group`s production growth.
>Results
2Q10 1Q10 2Q09 2Q10 in millions of euros 1H10 1H09 1H10
vs vs
2Q09 1H09
4,607 4,161 2,843 +62% Adjusted operating income* 8,768 5,735 +53%
2,203 1,971 1,451 +52% Adjusted net operating income* 4,174 2,933 +42%
271 335 176 +54% * includes income from equity affiliates 606 403 +50%
2,723 3,143 2,664 +2% Investments 5,866 4,914 +19%
174 87 105 +66% Divestments 261 234 +12%
4,154 4,680 1,943 x2.1 Cash flow from operating activities 8,834 4,521 +95%
3,895 3,124 2,550 +53% Adjusted cash flow 7,019 5,229 +34%
+34%
* detail of adjustment items shown in the business segment information annex to
financial statements.
Adjusted net operating income for the Upstream segment in the second quarter
2010 was 2,203 M€ compared to 1,451 M€ in the second quarter 2009, an increase
of 52%.
Expressed in dollars, adjusted net operating income for the Upstream segment was
2.8 B$, an increase of 42% compared to the second quarter 2009, reflecting
essentially the increase in both production and hydrocarbon prices.
The effective tax rate for the Upstream segment was 58%, compared to 60% in the
first quarter 2010. The effective tax rate for the Upstream segment was 58% in
the second quarter 2009.
Adjusted net operating income for the Upstream segment in the first half 2010
was 4,174 M€ compared to 2,933 M€ in the first half 2009, an increase of 42%.
Expressed in dollars, adjusted net operating income for the Upstream segment was
5.5 B$, an increase of 42% compared to the first half 2009, reflecting
essentially the increase in both production and hydrocarbon prices.
The return on average capital employed (ROACE24) for the Upstream segment for
the twelve months ended June 30, 2010 was 19% compared to 18% for the twelve
months ended March 31, 2010 and the full year 2009.
The annualized second quarter 2010 ROACE for the Upstream segment was 21%.
Downstream
>Refinery throughput and utilization rates*
2Q10 1Q10 2Q09 2Q10 1H10 1H09 1H10
vs vs
2Q09 1H09
2,141 1,993 2,175 -2% Total refinery throughput (kb/d) 2,067 2,205 -6%
784 680 925 -15% -- France 732 910 -20%
1,110 1,050 1,024 +8% -- Rest of Europe 1,080 1,055 +2%
247 263 226 +9% -- Rest of world 255 240 +6%
Utilization rates
78% 73% 79% -- Based on crude only 75% 80%
83% 77% 84% -- Based on crude and other feedstock 80% 85%
* includes share of CEPSA.
Second quarter 2010 refinery throughput decreased by 2% compared to the second
quarter 2009 but increased by 7% compared to the first quarter 2010.
Scheduled turnarounds in the second quarter 2010 affected the Rome and Lindsey
refineries. Despite the Dunkirk refinery and a distillation unit at the Normandy
refinery being stopped throughout the second quarter 2010, the improved
reliability of the refineries and the relatively low level of scheduled
turnarounds led to an increase in the utilization rate based on crude and other
feedstock to 83% in the second quarter 2010 compared to 77% in the first quarter
2010 and 84% in the second quarter 2009.
In the first half 2010, refinery throughput decreased by 6% compared to the
first half 2009, reflecting essentially the Dunkirk refinery and a distillation
unit at the Normandy refinery being stopped.
>Results
2Q10 1Q10 2Q09 2Q10 in millions of euros 1H10 1H09 1H10 vs 1H09
vs (except the ERMI refining margin indicator)
2Q09
31.2 29.5 17.1 +82% European refining margin 30.4 23.8 +28%
indicator - ERMI ($/t)
549 191 141 x3.9 Adjusted operating income* 740 932 -21%
483 155 156 x3.1 Adjusted net operating income* 638 756 -16%
44 14 28 +57% * includes income from equity affiliates 58 61 -5%
562 456 825 -32% Investments 1,018 1,320 -23%
11 27 26 -58% Divestments 38 62 -39%
1,042 454 (28) n/a Cash flow from operating activities 1,496 1,620 -8%
774 323 239 x3.2 Adjusted cash flow 1,097 1,173 -6%
-6%
* detail of adjustment items shown in the business segment information annex to
financial statements.
The European refinery indicator averaged 31.2 $/t in the second quarter 2010,
nearly double the 17.1 $/t average in the second quarter 2009.
Adjusted net operating income from the Downstream segment was 483 M€ in the
second quarter 2010, compared to 156 M€ in the second quarter 2009.
Expressed in dollars, adjusted net operating income for the Downstream segment
was 614 M$ compared to 213 M$ in the second quarter 2009, thanks to the strong
performance of the refineries in an environment that was much more favorable
than in the previous year.
Adjusted net operating income from the Downstream segment was 638 M€ in the
first half 2010, a decrease of 16% compared to the first half 2009.
Expressed in dollars, adjusted net operating income for the Downstream segment
was 846 M$, a decrease of 16% compared to the first half 2009 despite the
improvement in refining margins. The decrease reflects essentially the less
favorable conditions for supply optimization in 2010.
The ROACE25 for the Downstream segment for the twelve months ended June 30, 2010
was 6% compared to 4% for the twelve months ended March 31, 2010 and 7% for the
full year 2009.
The annualized second quarter 2010 ROACE for the Downstream segment was 12%.
Chemicals
2Q10 1Q10 2Q09 2Q10 in millions of euros 1H10 1H09 1H10 vs 1H09
vs
2Q09
4,589 4,223 3,684 +25% Sales 8,812 6,902 +28%
2,794 2,532 2,164 +29% -- Base chemicals 5,326 3,940 +35%
1,784 1,691 1,520 +17% -- Specialties 3,475 2,962 +17%
305 154 60 x5.1 Adjusted operating income* 459 (8) n/a
274 157 71 x3.9 Adjusted net operating income* 431 39 x11.1
149 44 19 x7.8 -- Base chemicals 193 (20) n/a
124 117 58 x2.1 -- Specialties 241 74 x3.3
144 94 115 +25% Investments 238 294 -19%
328 6 8 x41.0 Divestments 334 14 x23.9
477 (90) 280 +70% Cash flow from operating activities 387 458 -16%
418 228 114 x3.7 Adjusted cash flow 646 (20) n/a
* detail of adjustment items shown in the business segment information annex to
financial statements.
In the second quarter 2010, petrochemical margins showed a net improvement over
the second quarter 2009, driven by stronger margins in the Atlantic basin.
Sales for the Chemical segment were 4.6 B€.
Adjusted net operating income from the Chemicals segment increased to 274 M€ in
the second quarter 2010 from 71 M€ in the second quarter 2009 due to the
improved petrochemicals and specialties environment and the benefits realized
through cost reduction.
In the first half 2010, adjusted net operating income from the Chemicals segment
was 431 M€ compared to 39 M€ in the first half 2009. The increase resulted from
the improvement in market conditions in 2010 as well as from the cost reduction
efforts implemented over the course of the past years and the effective
positioning of the Group`s Specialty chemicals during the recovery from the
crisis.
The ROACE26 of the Chemical segment for the twelve months ended June 30, 2010
was 9% compared to 6% for the twelve months ended March 31, 2010 and 4% for the
full year 2009.
The annualized second quarter 2010 ROACE for the Chemicals segment was 15%.
* TOTAL S.A. - parent company accounts
Net income for TOTAL S.A., the parent company, was 2,941 M€ in the first half of
2010 compared to 3,240 M€ in the first half of 2009.
* Summary and outlook
The ROACE for the Group for the twelve months ended June 30, 2010, was 14%,
compared to 13% for the twelve months ended March 31, 2010 and the full year
2009. The annualized second quarter 2010 ROACE for the Group was 18%.
Return on equity for the twelve months ended June 30, 2010, was 17%.
Total will pay a 2010 interim dividend of 1.14 € per share27 on November 17,
201028.
Investments excluding acquisitions for 2010 are expected to be in line with the
2010 budget level of 18 B$.
The Group maintains its net-debt-to-equity objective range of 25-30% for
year-end 2010.
As of June 30, 2010, the Group`s equity interest in Sanofi-Aventis, following
progressive sales of the shares, was 5.7%. Effective July 1, 2010,
Sanofi-Aventis will no longer be accounted for as an equity affiliate but will
instead be treated as a financial asset available for sale in the line "Other
investments" of the balance sheet. In the second quarter 2010, Sanofi-Aventis
contributed 141 M€ to adjusted net operating income and its portion of the
adjustment items was a negative 40 M€.
Since the third quarter 2010 began, oil prices have traded around 75 $/b, but
European refining margins have pulled back sharply from the second quarter
level. The environment for the Chemicals has remained globally comparable to
that of the second quarter.
■ ■ ■
To listen to CFO Patrick de la Chevardière`s conference call with financial
analysts today at 15:00 (Paris time) please log on to www.total.comor call +44
(0)203 367 9453 in Europe or +1 866 907 5923 begin_of_the_skype_highlighting +1 866 907 5923 begin_of_the_skype_highlighting +1 866 907 5923 end_of_the_skype_highlighting end_of_the_skype_highlighting in the U.S. (access code : Total).
A replay available will be available until August 12 and can be accessed through
the website or by calling +44 (0)203 367 9460 begin_of_the_skype_highlighting +44 (0)203 367 9460 begin_of_the_skype_highlighting +44 (0)203 367 9460 end_of_the_skype_highlighting end_of_the_skype_highlighting in Europe or +1 877 642 3018 begin_of_the_skype_highlighting +1 877 642 3018 begin_of_the_skype_highlighting +1 877 642 3018 end_of_the_skype_highlighting end_of_the_skype_highlighting in
the US (code : 270 381).
This document does not constitute the Financial Report for the first half which
will be separately published, in accordance with article L.451-1-2 III of the
French Code monétaire et financier, and is available on our web site
www.total.com or upon request at the company`s headquarters.
The June 30, 2010 notes to the consolidated financial statements are available
on the Total web site (www.total.com). This document may contain 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 Total. 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. Total 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 Autorité des
Marchés Financiers and the United States Securities and Exchange Commission.
Business segment information is presented in accordance with the Group internal
reporting system used by the Chief operating decision maker to measure
performance and allocate resources internally. Due to their particular nature or
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, certain transactions such as restructuring costs or assets disposals,
which are not considered to be representative of normal course of business, may
be qualified as special items although they may have occurred within prior years
or are likely to recur within following years.
The adjusted results of the Downstream and Chemical segments are also 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
prices differential between one period and another or the average prices of the
period. The inventory valuation effect is the difference between the results
according to FIFO (First-In, First-Out) and the replacement cost.
In this framework, performance measures such as adjusted operating income,
adjusted net operating income and adjusted net income are defined as incomes
using replacement cost, adjusted for special items and excluding Total`s equity
share of the adjustment items related to Sanofi-Aventis. They are meant to
facilitate the analysis of the financial performance and the comparison of
income between periods.
Dollar amounts presented herein represent euro amounts converted at the average
euro-dollar exchange rate for the applicable period and are not the result of
financial statements prepared in dollars.
Cautionary Note to U.S. Investors - The United States Securities and Exchange
Commission 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 the SEC rules. Wemay use certain terms in this
press release, such as 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 annual report on Form 20-F, File No. 1-10888
available from us at 2, place Jean Millier - La Défense 6 - 92400 Courbevoie,
France, or on our website: www.total.com. You can also obtain this form from the
SEC by calling 1-800-SEC-0330 begin_of_the_skype_highlighting 1-800-SEC-0330 end_of_the_skype_highlighting or on the SEC`s website: www.sec.gov.
Operating information by segment
Second quarter and first half 2010
* Upstream
