Regulatory News:

 

TOTAL S.A. (Paris:FP) (LSE:TTA) (NYSE:TOT):

 
                                                                      Change 
                                                          1Q20  1Q19   vs 1Q19 
 
Oil price - Brent ($/b)                                   50.1  63.1  -21% 
European gas price - NBP ($/Mbtu)                         3.1   6.3   -51% 
Adjusted net income (Group share)(1) 
- in billions of dollars (B$)                             1.78  2.76  -35% 
- in dollars per share                                    0.66  1.02  -36% 
 
DACF(1) (B$)                                              4.5   6.5   -31% 
Cash Flow from operations (B$)                            1.3   3.6   -64% 
 
 
Net income (Group share) of 34 M$ in 1Q20, considering 
 the stock effect of 1.4 B$ 
Net-debt-to-capital ratio of 21% (excl. leases impact) 
 at March 31, 2020 
Hydrocarbon production of 3,086 kboe/d in 1Q20, an increase of 5% 
 compared to 1Q19 
First 2020 interim dividend set at 0.66 EUR/share 
 

Total's Board of Directors met on May 4, 2020, to approve the Group's first quarter 2020 financial statements. On this occasion, Chairman and CEO Patrick Pouyanné said:

 

"Total's Board of Directors would like to begin by thanking all those mobilized to face Covid-19, particularly the Group's employees, who, while complying with health regulations, are maintaining the production, processing and distribution of products that consumers need.

 

The Group is facing exceptional circumstances: the Covid-19 health crisis, which is affecting the world economy and creating major uncertainties, and the oil market crisis, with the sharp drop in oil prices since March.

 

In an environment where prices fell by more than 30% on average during the first quarter, the Group's cash flow decreased by 31% year-on-year to $4.5 billion, and adjusted net income was down 35% this quarter to $1.8 billion. Return on equity stood at 9.8% and Total maintained its financial strength with gearing at 21%.

 

In response to these crises, the Group announced an immediate action plan on March 23. The Group now anticipates 2020 production between 2.95 and 3 Mboe/d, a reduction of at least 5% from 2020 forecasts, reflecting the voluntary curtailment measures in Canada, the exceptional quotas announced by OPEC+, lower local demand for gas and the situation in Libya. In the Downstream, plant utilization rates and sales have been on average 50% below normal since mid-March, with uncertainty about the timing of a return to normal.

 

In this context, the action plan should be strengthened:

 

- Net investments further reduced to less than $14 billion for the year, a decrease of nearly 25% compared to the $18 billion announced in February 2020. Investments in low-carbon electricity will be maintained between $1.5 and $2 billion.

 

- Operating cost reduction increased to more than $1 billion, plus savings of more than $1 billion on energy costs.

 

- The Group strengthened its liquidity position in April by issuing $3 billion in bonds and drawing $6 billion in credit lines. In addition, in a 30 $/b environment, the Group anticipates an improvement in its working capital position of $1 billion by year-end 2020 compared to year-end 2019.

 

In this specific context, considering the solid fundamentals of Total -- low breakeven and gearing -- the Board of Directors decided to set the 2020 first interim dividend at EUR0.66 per share, stable compared to the 2019 first interim dividend, and to propose at the Annual Shareholders' Meeting to put in place the option to receive the final 2019 dividend in shares, given that the Group bought back $0.55 billion of shares at the beginning of the year when prices were around $60/b.

 

While responsibly taking on the short-term challenges, the Group continues to implement its medium and long-term strategy. From this perspective, the announcement of a new climate ambition for the Group that aims at carbon neutrality by 2050 in Europe and in the world in step with society, is in line with Total's reinforced strategy to become a broad-energy company. Concrete steps were taken in the first quarter to implement this strategy by accessing nearly 6 GW of renewable capacity, including solar (India, Qatar, Spain, France) and wind (France, UK). The countercyclical acquisition of Tullow's interests in Uganda is also part of the strategy to access low-cost barrels of oil."

 

Taking into account the difficult environment facing the Group and the savings that all Total's teams have to make, Chairman and CEO Patrick Pouyanné proposed to reduce his fixed salary by 25% for the remainder of 2020, including the month of May. Considering the anticipated evolution of the economic criteria for the variable portion, Patrick Pouyanné's total remuneration will decrease by more than 30% in 2020 compared to 2019. The members of the board also decided to give up 25% of their attendance fees starting from the Annual Shareholders' Meeting. The members of the Executive Committee wished to join in these measures by reducing their fixed salaries by 10% for the remainder of the 2020 year.

 

First quarter 2020 results

 

Pressured by the collapse of demand linked to Covid-19, oil prices fell sharply during March to an average of 50 $/b in the first quarter, down 21% year-on-year. Gas prices in Europe also fell sharply, down more than 50% year-on-year. In an environment of prices falling by more than 30% on average compared to the first quarter 2019, the Group's cash flow decreased by 31% to $4.5 billion. Adjusted net income decreased by 35% to $1.8 billion this quarter and return on equity stood at 9.8% with gearing at 21%.

 

Leading the Group's low-carbon ambition, the iGRP segment generated $0.9 billion of cash flow, an increase of 40% year-on-year thanks to a growth in LNG sales of nearly 30% and to the resilience of the sales price of its LNG production. In low-carbon electricity, the Group is accelerating growth by entering into renewable projects with gross installed capacity of more than 6 GW, particularly in India, Qatar and Spain.

 

In the first quarter, Upstream production grew by 5% year-on-year, driven by ramp-ups on projects, such as Culzean in the UK, Johan Sverdrup in Norway and Yamal in Russia. Impacted by lower prices, Exploration & Production cash flow was $2.6 billion, down 39% year-on-year. Notably Exploration & Production made two discoveries in Surinam.

 

Downstream cash flow was $1.1 billion, down 37% year-on-year. In Europe, refining margins decreased by 20% and throughput volumes were down about 30% due to lower demand. Petrochemicals were resilient, benefiting from the fall in raw material prices. Retail network sales were down 10% year-on-year due to the impact of the Covid-19 crisis.

 

Highlights(2)

   -- Asset sale program ongoing with disposal of downstream gas in France, 
      Exploration & Production in Brunei, and Marketing in Sierra Leone and 
      Liberia 
 
   -- Counter-cyclical acquisition of Tullow's interest in the Lake Albert 
      project in Uganda 
 
   -- Acquisition of 50% of 2 GW gross capacity portfolio of solar power plants 
      in India as part of a 50/50 JV with the Adani Group 
 
   -- Agreement to build a large-scale solar power plant (800 MWp) in Qatar 
 
   -- Entry into solar market in Spain with the acquisition of 2 GW portfolio 
      of projects 
 
   -- Acquisition in France of Global Wind Power France, which holds a 1 GW 
      gross capacity portfolio of projects 
 
   -- Entry into first floating offshore wind project in the UK 
 
   -- Launched in Dunkirk the largest battery power storage project (25 MW) for 
      France's power grid 
 
   -- Launched a pilot plant in Europe to start producing EV batteries from 
      2023 at the highest technological level in terms of energy performance 
 
   -- In Exploration, made two significant oil discoveries on Block 58 in 
      Surinam plus a new condensate gas discovery in the UK North Sea 
 

Key figures(3)

 
                                                                         1Q20 
In millions of dollars, except effective tax rate,                        vs 
 earnings per share and number of shares            1Q20   4Q19   1Q19    1Q19 
Adjusted net operating income from business 
 segments                                           2,300  3,879  3,413  -33% 
Exploration & Production                            703    2,031  1,722  -59% 
Integrated Gas, Renewables & Power                  913    794    592    +54% 
Refining & Chemicals                                382    580    756    -49% 
Marketing & Services                                302    474    343    -12% 
Contribution of equity affiliates to adjusted net 
 income                                             658    668    614    +7% 
Group effective tax rate(4)                         30.0%  31.8%  40.5% 
Adjusted net income (Group share)                   1,781  3,165  2,759  -35% 
Adjusted fully-diluted earnings per share 
 (dollars)(5)                                       0.66   1.19   1.02   -36% 
Adjusted fully-diluted earnings per share (euros)*  0.60   1.07   0.90   -34% 
Fully-diluted weighted-average shares (millions)    2,601  2,607  2,620  -1% 
 
Net income (Group share)                            34     2,600  3,111  -99% 
 
Organic investments(6)                              2,523  4,291  2,784  -9% 
Net acquisitions(7)                                 1,102  (80)   306    x3,6 
Net investments(8)                                  3,625  4,211  3,090  +17% 
Operating cash flow 
 before working capital changes(9)                  4,016  6,839  6,033  -33% 
Operating cash flow before working capital changes 
 w/o financial charges (DACF)(10)                   4,528  7,372  6,536  -31% 
Cash flow from operations                           1,299  6,599  3,629  -64% 
 

From 2019, data take into account the impact of the new rule IFRS16 "Leases", effective January 1, 2019.

 

* Average EUR-$ exchange rate: 1.1027 for the first quarter of 2020.

 

Key figures of environment and Group production

 

> Environment* -- liquids and gas price realizations, refining margins

 
                                                                      1Q20 
                                                                       vs 
                                                    1Q20  4Q19  1Q19   1Q19 
Brent ($/b)                                         50.1  63.1  63.1  -21% 
Henry Hub ($/Mbtu)                                  1.9   2.4   2.9   -35% 
NBP ($/Mbtu)                                        3.1   5.1   6.3   -51% 
JKM ($/Mbtu)                                        3.6   5.8   6.6   -45% 
Average price of liquids ($/b) 
 Consolidated subsidiaries                          44.4  59.1  58.7  -24% 
Average price of gas ($/Mbtu) 
 Consolidated subsidiaries                          3.35  3.76  4.51  -26% 
Average price of LNG ($/Mbtu) 
 Consolidated subsidiaries and equity affiliates    6.32  6.52  7.20  -12% 
 
Variable cost margin - Refining Europe, VCM ($/t)   26.3  30.2  33.0  -20% 
 

* The indicators are shown on page 18.

 

> Production*

 
                                                                         1Q20 
                                                                          vs 
                                                    1Q20   4Q19   1Q19    1Q19 
Hydrocarbon production (kboe/d)                     3,086  3,113  2,946  +5% 
Oil (including bitumen) (kb/d)                      1,448  1,452  1,425  +2% 
Gas (including condensates and associated NGL) 
 (kboe/d)                                           1,638  1,661  1,521  +8% 
 
Hydrocarbon production (kboe/d)                     3,086  3,113  2,946  +5% 
Liquids (kb/d)                                      1,699  1,714  1,629  +4% 
Gas (Mcf/d)**                                       7,560  7,563  7,167  +5% 
 

* Group production = EP production + iGRP production.

 

** 1Q19 and 4Q19 data restated

 

Hydrocarbon production was 3,086 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2020, an increase of 5% year-on-year, due to:

   -- +8% related to the start-up and ramp-up of new projects, notably Culzean 
      in the United Kingdom, Egina in Nigeria, Johan Sverdrup in Norway and 
      Ichthys in Australia. 
 
   -- +2% due to lower prices and to portfolio effects, notably the increased 
      interest in the DUC field in Denmark. 
 
   -- -3% due to the natural decline of fields. 
 
   -- -2% due notably to partial production halt in Libya and to the Tyra 
      redevelopment in Denmark. 
 

Analysis of business segments

 

Integrated Gas, Renewables & Power (iGRP)

 

> Liquefied natural gas (LNG) production and sales and low carbon electricity

 
                                                                         1Q20 
                                                                          vs 
Hydrocarbon production for LNG                      1Q20   4Q19   1Q19    1Q19 
iGRP (kboe/d)                                       552    624    518    +7% 
Liquids (kb/d)                                      73     74     66     +10% 
Gas (Mcf/d)*                                        2,611  2,939  2,460  +6% 
 
                                                                         1Q20 
                                                                          vs 
Liquefied Natural Gas in Mt                         1Q20   4Q19   1Q19    1Q19 
Overall LNG sales                                   9.8    10.6   7.7    +27% 
incl. Sales from equity production**                4.7    4.2    3.8    +23% 
incl. Sales by Total from equity production and 
 third party purchases                              7.8    9.6    6.0    +30% 
 

* 1Q19 and 4Q19 data restated.

 

** The Group's equity production may be sold by Total or by the joint ventures.

 
                                                                   1Q20 
                                                                    vs 
Low carbon electricity                           1Q20  4Q19  1Q19   1Q19 
Gross renewables installed capacity (GW)*        3.0   3.0   1.8   +68% 
Net low carbon power production (TWh)**          2.9   3.5   2.7   +10% 
Clients gas and power - BtB and BtC (Million)*   5.9   5.8   5.4   +9% 
Sales gas and power - BtB and BtC (TWh)          47.8  34.9  47.9  - 
 

* Capacity at end of period.

 

** Solar, wind, biogas, hydroelectric and CCGT plants.

 

Production increased by 7% year-on-year essentially linked to the ramp-up of Ichthys in Australia and Yamal LNG in Russia.

 

Total LNG sales increased by 27% year-on-year thanks to the ramp-up of Yamal LNG and Ichthys plus the start-up of the first two Cameron LNG trains in the US.

 

Gross installed renewable power generation capacity increased by 68% year-on-year to 3 GW. The Group continues to implement its integration strategy for the gas and electricity chain in Europe and saw the number of customers for gas and electricity grow to 5.9 million, up 9% year-on-year.

 

> Results

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                               1Q20   4Q19   1Q19   1Q19 
Adjusted net operating income*                       913    794    592   +54% 
including income from equity affiliates              248    353    255   -3% 
 
Organic investments                                  646    684    493   +31% 
Net acquisitions                                     1,137  (13)   400   x2,8 
Net investments                                      1,783  671    893   +100% 
 
Operating cash flow before working capital changes 
 **                                                  852    1,402  610   +40% 
Cash flow from operations **                         (489)  1,527  892   ns 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

 

** Excluding financial charges, except those related to leases.

 

Adjusted net operating income for the iGRP segment was $913 million in the first quarter of 2020, up 54% year-on-year and operating cash flow before working capital changes was up 40% in the same period to $852 million. The strong results compared to the first quarter of 2019 are due to the strong growth of LNG sales combined with resilient sales prices for the LNG portfolio, increasing use of regasification capacity in Europe and the strong performance of trading activities. The contribution of renewable activities also increased in the quarter.

 

Exploration & Production

 

> Production

 
                                              1Q20 
                                               vs 
Hydrocarbon production   1Q20   4Q19   1Q19    1Q19 
EP (kboe/d)              2,534  2,489  2,428  +4% 
Liquids (kb/d)           1,626  1,640  1,563  +4% 
Gas (Mcf/d)              4,949  4,624  4,707  +5% 
 

> Results

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars, except effective tax rate   1Q20   4Q19   1Q19    1Q19 
Adjusted net operating income*                      703    2,031  1,722  -59% 
including income from equity affiliates             390    247    213    +83% 
Effective tax rate**                                59.6%  38.0%  48.6% 
 
Organic investments                                 1,572  2,617  1,958  -20% 
Net acquisitions                                    (6)    (224)  38     ns 
Net investments                                     1,566  2,393  1,996  -22% 
 
Operating cash flow before working capital changes 
 ***                                                2,576  4,451  4,246  -39% 
Cash flow from operations ***                       3,923  4,206  3,936  - 
 

* 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 - impairment of goodwill + tax on adjusted net operating income).

 

*** Excluding financial charges, except those related to leases.

 

Exploration & Production adjusted net operating income was $703 million in the first quarter, down 59% year-on-year due to the sharp decrease in oil and gas prices at the end of the quarter.

 

Operating cash flow before working capital changes was $2.6 billion in the first quarter, down 39% year-on-year for the same reasons, partially offset by the ramp-up of strong cash-generating projects.

 

Downstream (Refining & Chemicals and Marketing & Services)

 

> Results

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                            1Q20     4Q19   1Q19    1Q19 
Adjusted net operating income*                    684      1,054  1,099  -38% 
 
Organic investments                               277      949    319    -13% 
Net acquisitions                                  (30)     159    (131)  ns 
Net investments                                   247      1,108  188    +31% 
 
Operating cash flow before working capital 
 changes **                                       1,064    1,505  1,686  -37% 
Cash flow from operations **                      (1,582)  1,420  (306)  ns 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

 

** Excluding financial charges, except those related to leases.

 

Refining & Chemicals

 

> Refinery and petrochemicals throughput and utilization rates

 
                                                                 1Q20 
                                                                  vs 
Refinery throughput and utilization rate*   1Q20   4Q19   1Q19    1Q19 
Total refinery throughput (kb/d)            1,444  1,509  1,862  -22% 
France                                      255    282    592    -57% 
Rest of Europe                              756    756    823    -8% 
Rest of world                               433    471    447    -3% 
Utlization rate based on crude only**       69%    71%    89% 
 

* Includes refineries in Africa reported in the Marketing & Services segment.

 

** Based on distillation capacity at the beginning of the year.

 
                                                                      1Q20 
                                                                       vs 
Petrochemicals production and utilization rate   1Q20   4Q19   1Q19    1Q19 
Monomers* (kt)                                   1,386  1,431  1,393  - 
Polymers (kt)                                    1,202  1,169  1,297  -7% 
Vapocracker utilization rate**                   83%    92%    87% 
 

* Olefins.

 

** Based on olefins production from steamcrackers and their treatment capacity at the start of the year.

 

Refinery throughput volumes decreased by 22% in the first quarter of 2020 year-on-year, mainly as a result of planned shutdowns at the Feyzin and Grandpuits refineries in France, Satorp in Saudi Arabia as well as the shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019.

 

Monomer production was stable year-on-year, while polymer production decreased by 7% due mainly to the closure of the polystyrene site at El Prat in Spain and a shutdown for planned maintenance on the Qatofin platform in Qatar.

 

> Results

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                            1Q20     4Q19   1Q19    1Q19 
Adjusted net operating income*                    382      580    756    -49% 
 
Organic investments                               168      479    240    -30% 
Net acquisitions                                  (36)     118    (124)  ns 
Net investments                                   132      597    116    +14% 
 
Operating cash flow before working capital 
 changes **                                       674      789    1,104  -39% 
Cash flow from operations **                      (1,183)  1,142  (538)  ns 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

 

** Excluding financial charges, except those related to leases.

 

Adjusted net operating income for Refining & Chemicals was $382 million, down 49% year-on-year. The decrease was mainly due to a severely degraded global refining environment in the first quarter, low plant utilization and low demand at the end of the quarter. The impact of the shutdown of the Normandy distillation unit is estimated at $100 million for the quarter and $200 million over the year.

 

Operating cash flow before working capital changes was $674 million in the first quarter of 2020, down 39% year-on-year for the same reasons. The difference between this cash flow and the cash flow from operations is mainly due to the decrease in the value of inventories linked to the decline in the price of oil.

 

Marketing & Services

 

> Petroleum product sales

 
                                                        1Q20 
                                                         vs 
Sales in kb/d*                     1Q20   4Q19   1Q19    1Q19 
Total Marketing & Services sales   1,656  1,835  1,836  -10% 
Europe                             906    1,033  1,012  -11% 
Rest of world                      750    801    824    -9% 
 

* Excludes trading and bulk refining sales

 

Sales of petroleum products decreased by 10% in the first quarter 2020, notably due to the impact of Covid-19 on demand, mainly in China and in France.

 

> Results

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                                1Q20   4Q19  1Q19   1Q19 
Adjusted net operating income*                        302    474   343   -12% 
 
Organic investments                                   109    471   80    +36% 
Net acquisitions                                      6      40    (8)   ns 
Net investments                                       115    511   72    +60% 
 
Operating cash flow before working capital changes 
 **                                                   390    716   582   -33% 
Cash flow from operations **                          (399)  278   232   ns 
 

* Detail of adjustment items shown in the business segment information annex to financial statements.

 

** Excluding financial charges, except those related to leases

 

Adjusted net operating income was $302 million in the first quarter 2020, a decrease of 12%, in line with the decrease in volumes.

 

Operating cash flow before working capital changes was $390 million in the quarter, down 33% year-on-year.

 

Group results

 

> Adjusted net operating income from business segments

 

Adjusted net operating income from the business segments was $2,300 million in the first quarter 2020, a decrease of 33% year-on-year, due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.

 

> Adjusted net income (Group share)

 

Adjusted net income (Group share) was $1,781 million in the first quarter 2020, a decrease of 35% year-on-year, due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.

 

Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value(11.)

 

Total net income adjustments(12) were -$1,747 million in the first quarter 2020, including -$1,414 million for the after-tax inventory effect linked to lower oil prices.

 

The effective tax rate for the Group was 30.0% in the first quarter 2020, compared to 31.8% in the previous quarter.

 

> Adjusted fully-diluted earnings per share

 

Adjusted earnings per share was $0.66 in the first quarter 2020, a decrease of 36%, calculated on the basis of a weighted average of 2,601 million fully-diluted shares, compared to $1.02 in the first quarter 2019.

 

In the framework of the shareholder return policy announced in February 2018, and the $5 billion buyback program for 2018-2020, the Group bought back shares at the start of the first quarter, while oil prices were around 60 $/b. 12.2 million shares were repurchased in the first quarter 2020 for $0.55 billion. In the context of the sharp decrease in oil prices, the buyback program was suspended at the beginning of March.

 

The number of fully-diluted shares was 2,596 million on March 31, 2020.

 

> Acquisitions - asset sales

 

Acquisitions were $1.6 billion in the first quarter 2020, comprised notably of finalizing the acquisition of 37.4% of Adani Gas Limited in India and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia.

 

Asset sales were $542 million in the first quarter 2020, comprised notably of the sales of Block CA1 in Brunei, the Group's interest in the Fos Cavaou regasification terminal in France, and 50% of a portfolio of solar and wind assets from Total Quadran in France.

 

> Net cash flow

 

Net cash flow(13) for the Group was $391 million in the first quarter 2020 in the context of lower prices.

 

> Profitability

 

The return on equity was 9.8% for the twelve months ended March 31, 2020.

 
In millions of 
dollars                April 1, 2019   January 1, 2019    April 1, 2018 
                       March 31, 2020  December 31, 2019  March 31, 2019 
Adjusted net income    11 079          12 090             13 810 
Average adjusted 
 shareholders' 
 equity                113 607         116 766            118 094 
Return on equity 
 (ROE)                 9.8%            10.4%              11.7% 
 

The return on average capital employed was 8.7% for the twelve months ended March 31, 2020.

 
In millions of 
dollars                April 1, 2019   January 1, 2019    April 1, 2018 
                       March 31, 2020  December 31, 2019  March 31, 2019 
Adjusted net 
 operating income      13 032          14 073             15 697 
Average capital 
 employed              150 418         143 674            146 210 
ROACE                  8.7%            9.8%               10.7% 
 

Total S.A. accounts

 

Net income for Total S.A., the parent company, was EUR1,718 million in the first quarter 2020 compared to EUR1,391 million a year ago.

 

2020 Sensitivities*

 
                                        Estimated impact    Estimated impact 
                                        on adjusted net     on cash flow from 
                     Change             operating income    operations 
Dollar               +/- 0.1 $ per EUR  -/+ 0.1 B$          0 B$ 
Average liquids 
 price**             +/- 10 $/b         +/- 2.9 B$          +/- 3.3 B$ 
European gas price 
 - NBP ($/Mbtu)      +/- 1 $/Mbtu       +/- 0.35 B$         +/- 0.35 B$ 
Variable cost 
 margin, European 
 refining (VCM)      +/- 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 2020. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-EUR sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 18.

 

** In a 60 $/b Brent environment.

 

Summary and outlook

 

Since early March, the strong contraction in demand caused by the Covid-19 crisis has been exacerbated by sustained production, following the OPEC/non-OPEC meeting held on March 6. Despite the OPEC+ decision for exceptional production cuts reached during the April 9-12, 2020 meetings, demand remains well below supply, leading to overproduction and strong inventory builds. The anticipated gradual increase in demand linked to the end of the Covid-19 crisis may not bring a rapid resolution of the oil crisis given the time required to return inventories to normal levels.

 

Total faces this period of economic and oil crisis with a low organic breakeven and a solid balance sheet. The Group reacted to this new environment with an action plan, which has the objectives of preserving the value of its assets, maximizing the efficiency of its expenditures and positioning the Group in the best conditions to emerge strengthened from this period. All employees are mobilized in all the segments of the Group.

 

The Group has therefore decided to reduce net investments by 25% to $14 billion this year.

 

Given the less favorable context for Upstream asset sales, the $5 billion program for 2019-20 is maintained but refocused on infrastructure and real estate assets. Acquisitions will be adjusted in light of asset sales finalized within the framework of the $14 billion net investment.

 

The 2020 cost savings program has been increased to at least $1 billion, in addition to saving on energy costs by more than $1 billion, notably in Refining & Chemicals.

 

In Upstream, the Group now anticipates 2020 production of between 2.95 and 3 Mboe/d, at least a 5% reduction compared to the previous 2020 forecasts, taking into account the voluntary reductions in Canada, the exceptional quotas announced by OPEC+, lower local demand for gas and the situation in Libya.

 

Confirming its strategy to grow in the integrated gas and low-carbon electricity chain, the Group maintains its planned investment level of $1.5 to $2 billion a year in low-carbon electricity and continues to grow in LNG with the anticipated start-up of Cameron LNG Train 3. Taking into consideration the lower demand due to the global economic slowdown, Total anticipates deferments in LNG uplifts during the second and third quarters of the year. Furthermore, the decrease in oil prices will negatively impact the LNG long-term contract prices from the second half.

 

In the Downstream, refining margins benefit from the low crude oil price but the significant demand decrease in Europe will weigh on refinery utilization rates in the coming months. The Group anticipates an average refinery global utilization rate between 70-75%, compared to 84% in 2019. Petrochemical volumes are not affected by the crisis and benefit from the drop in raw material prices thanks to the flexibility of steam-crackers that are able to adapt feedstocks to market conditions. The Group anticipates that Marketing & Services sales will return to near-normal levels once re-opening measures become widespread.

 

The new measures taken will allow the organic cash breakeven to remain below $25/b in 2020, thus confirming Total's resilience.

 

The Group's priority is to generate a level of cash flow that allows continued investing in profitable projects, to preserve an attractive return to shareholders and to maintain the strength of its balance sheet. The strategy successfully deployed during the 2015 crisis around the four priorities of HSE, operational excellence, cost reduction and cash flow mobilizes all the Group's teams.

 

* * * * *

 

To listen to the presentation by CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 14:30 (London time) please log on to total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167 in the United States (code: 5778274). To listen to the replay, please consult the website or call +44 (0) 333 300 9785 in Europe or +1 (917) 677 7532 in the United States (code: 5778274).

 

* * * * *

 

Operating information by segment

 

> Group production (Exploration & Production + iGRP)

 
                                                      1Q20 
Combined liquids and gas                               vs 
 production by region (kboe/d)   1Q20   4Q19   1Q19    1Q19 
Europe and Central Asia          1 097  1 102  990    +11% 
Africa                           701    703    697    +1% 
Middle East and North Africa     681    701    686    -1% 
Americas                         372    368    373    - 
Asia-Pacific                     235    239    201    +17% 
Total production                 3 086  3 113  2 946  +5% 
includes equity affiliates       753    768    709    +6% 
 
 
                                                           1Q20 
                                                            vs 
Liquids production by region (kb/d)   1Q20   4Q19   1Q19    1Q19 
Europe and Central Asia               404    373    352    +15% 
Africa                                555    560    540    +3% 
Middle East and North Africa          516    560    522    -1% 
Americas                              178    171    177    +1% 
Asia-Pacific                          47     50     39     +21% 
Total production                      1 699  1 714  1 629  +4% 
includes equity affiliates            214    212    217    -1% 
 
 
                                                        1Q20 
                                                         vs 
Gas production by region (Mcf/d)   1Q20   4Q19   1Q19    1Q19 
Europe and Central Asia            3 734  3 887  3 426  +9% 
Africa*                            746    686    795    -6% 
Middle East and North Africa       912    792    905    +1% 
Americas                           1 092  1 109  1 101  -1% 
Asia-Pacific*                      1 076  1 089  940    +14% 
Total production*                  7 560  7 563  7 167  +5% 
includes equity affiliates*        2 905  2 961  2 656  +9% 
 

* 1Q19 and 4Q19 data restated

 

> Downstream (Refining & Chemicals and Marketing & Services)

 
                                                                1Q20 
                                                                 vs 
Petroleum product sales by region (kb/d)   1Q20   4Q19   1Q19    1Q19 
Europe                                     1,771  1,993  2,022  -12% 
Africa                                     683    737    658    +4% 
Americas                                   766    763    839    -9% 
Rest of world                              444    526    616    -28% 
Total consolidated sales                   3,663  4,019  4,135  -11% 
Includes bulk sales                        497    508    557    -11% 
Includes trading                           1,510  1,676  1,742  -13% 
 
 
                                                       1Q20 
                                                        vs 
Petrochemicals production* (kt)   1Q20   4Q19   1Q19    1Q19 
Europe                            1,272  1,253  1,416  -10% 
Americas                          664    630    614    8% 
Middle-East and Asia              652    717    660    -1% 
 

* Olefins, polymers

 

Adjustment items to net income (Group share)

 
In millions of dollars                                   1Q20     4Q19   1Q19 
Special items affecting net income (Group share)         (334)    (666)  (14) 
Gain (loss) on asset sales                               -        -      - 
Restructuring charges                                    (80)     (5)    (2) 
Impairments                                              -        (248)  - 
Other                                                    (254)    (413)  (12) 
After-tax inventory effect : FIFO vs. replacement cost   (1,414)  57     388 
Effect of changes in fair value                          1        44     (22) 
 
Total adjustments affecting net income                   (1,747)  (565)  352 
 

Investments - Divestments

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                              1Q20   4Q19   1Q19    1Q19 
Organic investments ( a )                           2,523  4,291  2,784  -9% 
capitalized exploration                             135    136    232    -42% 
increase in non-current loans                       279    319    130    x2,1 
repayment of non-current loans, excluding organic 
 loan repayment from equity affiliates*             (117)  (102)  (134)  ns 
change in debt from renewable projects (Group 
 share)                                             (105)  -      -      ns 
Acquisitions ( b )                                  1,644  266    669    x2,5 
Asset sales ( c )                                   542    357    363    +49% 
change in debt from renewable projects (partner 
 share)                                             61     -      -      ns 
Other transactions with non-controlling interests 
 ( d )                                              -      (11)   -      ns 
Net investments ( a + b - c - d )                   3,625  4,211  3,090  +17% 
Organic loan repayment from equity affiliates* ( e 
 )                                                  7      (275)  -      ns 
Change in debt from renewable projects financing 
 ** ( f )                                           166    -      -      ns 
Capex linked to capitalized leasing contracts (g)   24     -      -      ns 
Cash flow used in investing activities ( a + b - c 
 + e + f -g)                                        3,774  3,925  3,090  +22% 
 

* Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations.

 

** Change in debt from renewable projects (Group share and partner share).

 

Cash flow

 
                                                                         1Q20 
                                                                          vs 
In millions of dollars                          1Q20     4Q19   1Q19      1Q19 
Operating cash flow before working capital 
 changes w/o financials charges (DACF)          4,528    7,372  6,536    -31% 
Financial charges                               (512)    (533)  (503)    ns 
Operating cash flow before working capital 
 changes ( a )                                  4,016    6,839  6,033    -33% 
(Increase) decrease in working capital          (884)    46     (2,970)  ns 
Inventory effect                                (1,796)  (11)   566      ns 
capital gain from renewable projects sale       (44)     -      -        ns 
Organic loan repayment from equity affiliates   7        (275)  -        ns 
Cash flow from operations                       1,299    6,599  3,629    -64% 
 
Organic investments ( b )                       2,523    4,291  2,784    -9% 
Free cash flow after organic investments, 
 w/o net asset sales ( a - b )                  1,493    2,548  3,249    -54% 
 
Net investments ( c )                           3,625    4,211  3,090    +17% 
Net cash flow ( a - c )                         391      2,628  2,943    -87% 
 

Gearing ratio*

 
In millions of dollars                      03/31/2020  12/31/2019  03/31/2019 
Current borrowings                          18,521      14,819      13,906 
Net current financial assets                (6,412)     (3,505)     (2,722) 
Net financial assets classified as held 
 for sale                                   -           301         227 
Non-current financial debt                  48,896      47,773      44,396 
Hedging instruments of non-current debt     (1,133)     (912)       (637) 
Cash and cash equivalents                   (21,634)    (27,352)    (25,432) 
Net debt (a)                                38,238      31,124      29,738 
 
Shareholders' equity - Group share          112,006     116,778     117,993 
Non-controlling interests                   2,428       2,527       2,365 
Shareholders' equity (b)                    114,434     119,305     120,358 
 
Net-debt-to-capital ratio = a / (a + b)     25.0%       20.7%       19.8% 
 
Net-debt-to-capital ratio excluding leases  21.3%       16.7%       15.9% 
 

*The net-debt-to-capital ratios include the impact of the new IFRS 16 rule, effective January 1, 2019.

 

Return on average capital employed

 

> Twelve months ended March 31, 2020

 
                            Integrated 
              Exploration   Gas, 
In millions   &             Renewables   Refining &    Marketing & 
of dollars    Production    & Power      Chemicals     Services      Group 
Adjusted net 
 operating 
 income       6,490         2,710        2,629         1,612         13,032 
Capital 
 employed at 
 03/31/2019*  90,051        37,235       13,153        8,255         148,463 
Capital 
 employed at 
 03/31/2020*  85,622        44,236       12,878        8,764         152,374 
ROACE         7.4%          6.7%         20.2%         18.9%         8.7% 
 

> Twelve months ended December 31, 2019

 
                            Integrated 
              Exploration   Gas, 
In millions   &             Renewables   Refining &    Marketing & 
of dollars    Production    & Power      Chemicals     Services      Group 
Adjusted net 
 operating 
 income       7,509         2,389        3,003         1,653         14,073 
Capital 
 employed at 
 12/31/2018*  89,400        34,746       10,599        6,442         138,519 
Capital 
 employed at 
 12/31/2019*  88,844        41,549       12,228        8,371         148,828 
ROACE         8.4%          6.3%         26.3%         22.3%         9.8% 
 

> Twelve months ended March 31, 2019

 
                            Integrated 
              Exploration   Gas, 
In millions   &             Renewables   Refining &    Marketing & 
of dollars    Production    & Power      Chemicals     Services      Group 
Adjusted net 
 operating 
 income       8,452         2,530        3,415         1,628         15,697 
Capital 
 employed at 
 03/31/2018*  93,276        30,996       13,428        7,409         143,957 
Capital 
 employed at 
 03/31/2019*  90,051        37,235       13,153        8,255         148,463 
ROACE         9.2%          7.4%         25.7%         20.8%         10.7% 
 

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

 

This press release presents the results for the first quarter of 2020 from the consolidated financial statements of TOTAL S.A. as of March 31, 2020. The limited review procedures by the Statutory Auditors are underway. 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.

 

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, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, changes in regulations including environmental and climate, currency fluctuations, as well as economic and political developments and changes in 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 Group's business, financial condition, including its operating income and cash flow, reputation or outlook 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/A 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), gearing ratio and operating cash flow before working capital changes. 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 (EUR-$) 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/A, File Ndeg 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.

 

Total financial statements

 

First quarter 2020 consolidated accounts, IFRS

 
CONSOLIDATED STATEMENT OF INCOME 
TOTAL 
(unaudited) 
                             1(st) quarter  4(th) quarter  1(st) quarter 
(M$)(a)                      2020           2019           2019 
 
Sales                        43,870         49,280         51,205 
Excise taxes                 (5,293)        (5,895)        (6,081) 
 Revenues from sales         38,577         43,385         45,124 
 
Purchases, net of inventory 
 variation                   (28,068)       (28,212)       (29,721) 
Other operating expenses     (6,944)        (7,090)        (6,725) 
Exploration costs            (140)          (231)          (288) 
Depreciation, depletion and 
 impairment of tangible 
 assets and mineral 
 interests                   (3,635)        (4,431)        (3,466) 
Other income                 580            428            247 
Other expense                (420)          (235)          (209) 
 
Financial interest on debt   (569)          (606)          (561) 
Financial income and 
 expense from cash & cash 
 equivalents                 (155)          51             (28) 
 Cost of net debt            (724)          (555)          (589) 
 
Other financial income       188            143            160 
Other financial expense      (181)          (203)          (195) 
 
Net income (loss) from 
 equity affiliates           732            502            711 
 
Income taxes                 37             (852)          (1,909) 
Consolidated net income      2              2,649          3,140 
Group share                  34             2,600          3,111 
Non-controlling interests    (32)           49             29 
Earnings per share ($)       (0.01)         0.98           1.17 
Fully-diluted earnings per 
 share ($)                   (0.01)         0.97           1.16 
(a) Except for per share 
 amounts. 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
TOTAL 
(unaudited) 
                               1(st) quarter  4(th) quarter  1(st) quarter 
(M$)                           2020           2019           2019 
Consolidated net income        2              2,649          3,140 
 
Other comprehensive income 
 
Actuarial gains and losses     133            (138)          164 
Change in fair value of 
 investments in equity 
 instruments                   (164)          16             33 
Tax effect                     (15)           40             (45) 
Currency translation 
 adjustment generated by the 
 parent company                (1,976)        2,461          (1,531) 
Items not potentially 
 reclassifiable to profit and 
 loss                          (2,022)        2,379          (1,379) 
Currency translation 
 adjustment                    (21)           (654)          806 
Cash flow hedge                (1,524)        (24)           (127) 
Variation of foreign currency 
 basis spread                  56             (49)           11 
Share of other comprehensive 
 income of equity affiliates, 
 net amount                    (1,223)        82             388 
Other                          3              1              1 
Tax effect                     445            26             38 
Items potentially 
 reclassifiable to profit and 
 loss                          (2,264)        (618)          1,117 
Total other comprehensive 
 income (net amount)           (4,286)        1,761          (262) 
 
Comprehensive income           (4,284)        4,410          2,878 
Group share                    (4,171)        4,319          2,840 
Non-controlling interests      (113)          91             38 
 
 
CONSOLIDATED BALANCE 
SHEET 
TOTAL 
                         March 31, 2020  December 31, 2019  March 31, 2019 
(M$)                     (unaudited)     (unaudited)        (unaudited) 
 
ASSETS 
 
Non-current assets 
Intangible assets, net   32,823          33,178             28,727 
Property, plant and 
 equipment, net          113,254         116,408            117,881 
Equity affiliates : 
 investments and loans   26,998          27,122             25,996 
Other investments        1,660           1,778              1,468 
Non-current financial 
 assets                  1,133           912                637 
Deferred income taxes    6,694           6,216              6,246 
Other non-current 
 assets                  2,537           2,415              2,156 
Total non-current 
 assets                  185,099         188,029            183,111 
 
Current assets 
Inventories, net         11,556          17,132             17,075 
Accounts receivable, 
 net                     18,029          18,488             19,321 
Other current assets     19,429          17,013             16,237 
Current financial 
 assets                  7,016           3,992              3,373 
Cash and cash 
 equivalents             21,634          27,352             25,432 
Assets classified as 
 held for sale           421             1,288              314 
Total current assets     78,085          85,265             81,752 
Total assets             263,184         273,294            264,863 
 
LIABILITIES & 
SHAREHOLDERS' EQUITY 
 
Shareholders' equity 
Common shares            8,123           8,123              8,231 
Paid-in surplus and 
 retained earnings       119,935         121,170            123,702 
Currency translation 
 adjustment              (14,431)        (11,503)           (11,606) 
Treasury shares          (1,621)         (1,012)            (2,334) 
Total shareholders' 
 equity - Group share    112,006         116,778            117,993 
Non-controlling 
 interests               2,428           2,527              2,365 
Total shareholders' 
 equity                  114,434         119,305            120,358 
 
Non-current liabilities 
Deferred income taxes    10,462          11,858             11,339 
Employee benefits        3,260           3,501              3,150 
Provisions and other 
 non-current 
 liabilities             19,452          20,613             21,020 
Non-current financial 
 debt                    48,896          47,773             44,396 
Total non-current 
 liabilities             82,070          83,745             79,905 
 
Current liabilities 
Accounts payable         22,123          28,394             26,416 
Other creditors and 
 accrued liabilities     25,102          25,749             23,361 
Current borrowings       18,521          14,819             13,906 
Other current financial 
 liabilities             604             487                651 
Liabilities directly 
 associated with the 
 assets classified as 
 held for sale           330             795                266 
Total current 
 liabilities             66,680          70,244             64,600 
Total liabilities & 
 shareholders' equity    263,184         273,294            264,863 
 
 
CONSOLIDATED STATEMENT OF 
CASH FLOW 
TOTAL 
(unaudited) 
                               1(st) quarter  4(th) quarter  1(st) quarter 
(M$)                           2020           2019           2019 
 
CASH FLOW FROM OPERATING 
ACTIVITIES 
 
Consolidated net income        2              2,649          3,140 
Depreciation, depletion, 
 amortization and impairment   3,730          4,624          3,716 
Non-current liabilities, 
 valuation allowances and 
 deferred taxes                (661)          (672)          140 
(Gains) losses on disposals 
 of assets                     (209)          (176)          (173) 
Undistributed affiliates' 
 equity earnings               (587)          267            (306) 
(Increase) decrease in 
 working capital               (884)          46             (2,970) 
Other changes, net             (92)           (139)          82 
Cash flow from operating 
 activities                    1,299          6,599          3,629 
 
CASH FLOW USED IN INVESTING 
ACTIVITIES 
 
Intangible assets and 
 property, plant and 
 equipment additions           (2,364)        (4,015)        (2,704) 
Acquisitions of subsidiaries, 
 net of cash acquired          (188)          (155)          - 
Investments in equity 
 affiliates and other 
 securities                    (1,534)        (170)          (753) 
Increase in non-current loans  (295)          (319)          (130) 
Total expenditures             (4,381)        (4,659)        (3,587) 
Proceeds from disposals of 
 intangible assets and 
 property, plant and 
 equipment                     44             301            8 
Proceeds from disposals of 
 subsidiaries, net of cash 
 sold                          142            13             147 
Proceeds from disposals of 
 non-current investments       295            43             208 
Repayment of non-current 
 loans                         126            377            134 
Total divestments              607            734            497 
Cash flow used in investing 
 activities                    (3,774)        (3,925)        (3,090) 
 
CASH FLOW USED IN FINANCING 
ACTIVITIES 
 
Issuance (repayment) of 
shares: 
- Parent company shareholders  -              1              1 
- Treasury shares              (609)          (620)          (491) 
Dividends paid: 
- Parent company shareholders  (1,882)        (1,876)        (1,830) 
- Non-controlling interests    -              (1)            - 
Net issuance (repayment) of 
perpetual subordinated notes   -              -              - 
Payments on perpetual 
 subordinated notes            (97)           (56)           (140) 
Other transactions with 
 non-controlling interests     (48)           160            (150) 
Net issuance (repayment) of 
 non-current debt              42             84             1,250 
Increase (decrease) in 
 current borrowings            2,785          (1,131)        (1,526) 
Increase (decrease) in 
 current financial assets and 
 liabilities                   (2,995)        (168)          106 
Cash flow from (used in) 
 financing activities          (2,804)        (3,607)        (2,780) 
Net increase (decrease) in 
 cash and cash equivalents     (5,279)        (933)          (2,241) 
Effect of exchange rates       (439)          831            (234) 
Cash and cash equivalents at 
 the beginning of the period   27,352         27,454         27,907 
Cash and cash equivalents at 
 the end of the period         21,634         27,352         25,432 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 
TOTAL 
(unaudited) 
                                         Paid-in 
                                         surplus 
                                         and       Currency                            Shareholders'                   Total 
                                         retained  translation                         equity -       Non-controlling  shareholders' 
                  Common shares issued   earnings  adjustment   Treasury shares        Group Share    interests        equity 
(M$)              Number         Amount                         Number        Amount 
As of January 1, 
 2019             2,640,602,007  8,227   120,569   (11,313)     (32,473,281)  (1,843)  115,640        2,474            118,114 
Net income of 
 the first 
 quarter 2019     -              -       3,111     -            -             -        3,111          29               3,140 
Other 
 comprehensive 
 income           -              -       22        (293)        -             -        (271)          9                (262) 
Comprehensive 
 Income           -              -       3,133     (293)        -             -        2,840          38               2,878 
Dividend          -              -       -         -            -             -        -              -                - 
Issuance of 
 common shares    1,272,267      4       64        -            -             -        68             -                68 
Purchase of 
 treasury 
 shares           -              -       -         -            (8,675,188)   (491)    (491)          -                (491) 
Sale of treasury 
 shares(a)        -              -       -         -            2,210         -        -              -                - 
Share-based 
 payments         -              -       11        -            -             -        11             -                11 
Share 
cancellation      -              -       -         -            -             -        -              -                - 
Net issuance 
(repayment) of 
perpetual 
subordinated 
notes             -              -       -         -            -             -        -              -                - 
Payments on 
 perpetual 
 subordinated 
 notes            -              -       (75)      -            -             -        (75)           -                (75) 
Other operations 
 with 
 non-controlling 
 interests        -              -       -         -            -             -        -              (150)            (150) 
Other items       -              -       -         -            -             -        -              3                3 
As of March 31, 
 2019             2,641,874,274  8,231   123,702   (11,606)     (41,146,259)  (2,334)  117,993        2,365            120,358 
Net income from 
 April 1 to 
 December 31, 
 2019             -              -       8,156     -            -             -        8,156          142              8,298 
Other 
 comprehensive 
 income           -              -       (681)     103          -             -        (578)          59               (519) 
Comprehensive 
 Income           -              -       7,475     103          -             -        7,578          201              7,779 
Dividend          -              -       (7,730)   -            -             -        (7,730)        (115)            (7,845) 
Issuance of 
 common shares    25,116,236     70      1,201     -            -             -        1,271          -                1,271 
Purchase of 
 treasury 
 shares           -              -       -         -            (43,714,148)  (2,319)  (2,319)        -                (2,319) 
Sale of treasury 
 shares(a)        -              -       (219)     -            4,276,738     219      -              -                - 
Share-based 
 payments         -              -       196       -            -             -        196            -                196 
Share 
 cancellation     (65,109,435)   (178)   (3,244)   -            65,109,435    3,422    -              -                - 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes            -              -       (4)       -            -             -        (4)            -                (4) 
Payments on 
 perpetual 
 subordinated 
 notes            -              -       (278)     -            -             -        (278)          -                (278) 
Other operations 
 with 
 non-controlling 
 interests        -              -       55        -            -             -        55             108              163 
Other items       -              -       16        -            -             -        16             (32)             (16) 
As of December 
 31, 2019         2,601,881,075  8,123   121,170   (11,503)     (15,474,234)  (1,012)  116,778        2,527            119,305 
Net income of 
 the first 
 quarter 2020     -              -       34        -            -             -        34             (32)             2 
Other 
 comprehensive 
 income           -              -       (1,277)   (2,928)      -             -        (4,205)        (81)             (4,286) 
Comprehensive 
 income           -              -       (1,243)   (2,928)      -             -        (4,171)        (113)            (4,284) 
Dividend          -              -       -         -            -             -        -              -                - 
Issuance of 
common shares     -              -       -         -            -             -        -              -                - 
Purchase of 
 treasury 
 shares           -              -       -         -            (13,236,044)  (609)    (609)          -                (609) 
Sale of treasury 
 shares(a)        -              -       -         -            3,030         -        -              -                - 
Share-based 
 payments         -              -       31        -            -             -        31             -                31 
Share 
cancellation      -              -       -         -            -             -        -              -                - 
Net issuance 
(repayment) of 
perpetual 
subordinated 
notes             -              -       -         -            -             -        -              -                - 
Payments on 
 perpetual 
 subordinated 
 notes            -              -       (72)      -            -             -        (72)           -                (72) 
Other operations 
 with 
 non-controlling 
 interests        -              -       (44)      -            -             -        (44)           (4)              (48) 
Other items       -              -       93        -            -             -        93             18               111 
As of March 31, 
 2020             2,601,881,075  8,123   119,935   (14,431)     (28,707,248)  (1,621)  112,006        2,428            114,434 
(a) Treasury shares related to the restricted stock grants. 
 
 
INFORMATION BY BUSINESS SEGMENT 
TOTAL 
(unaudited) 
 
 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2020                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,582        5,090        18,523     18,675     -          -             43,870 
Intersegment 
 sales             5,564        594          6,095      89         28         (12,370)      - 
Excise taxes       -            -            (650)      (4,643)    -          -             (5,293) 
Revenues from 
 sales             7,146        5,684        23,968     14,121     28         (12,370)      38,577 
Operating 
 expenses          (3,643)      (4,992)      (24,841)   (13,799)   (247)      12,370        (35,152) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,644)      (334)        (395)      (244)      (18)       -             (3,635) 
Operating income   859          358          (1,268)    78         (237)      -             (210) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       423          399          (57)       10         124        -             899 
Tax on net 
 operating 
 income            (454)        8            335        (32)       28         -             (115) 
Net operating 
 income            828          765          (990)      56         (85)       -             574 
Net cost of net 
 debt                                                                                       (572) 
Non-controlling 
 interests                                                                                  32 
Net income - 
 group share                                                                                34 
 
                                Integrated 
1(st) quarter      Exploration  Gas,         Refining   Marketing 
2020                &           Renewables   &           & 
(adjustments)(a)    Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    -            2            -          -          -          -             2 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             -            2            -          -          -          -             2 
Operating 
 expenses          (10)         (119)        (1,589)    (346)      (55)       -             (2,119) 
Depreciation, 
depletion and 
impairment of 
tangible assets 
and mineral 
interests          -            -            -          -          -          -             - 
Operating income 
 (b)               (10)         (117)        (1,589)    (346)      (55)       -             (2,117) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       128          (75)         (208)      -          -          -             (155) 
Tax on net 
 operating 
 income            7            44           425        100        -          -             576 
Net operating 
 income (b)        125          (148)        (1,372)    (246)      (55)       -             (1,696) 
Net cost of net 
 debt                                                                                       (101) 
Non-controlling 
 interests                                                                                  50 
Net income - 
 group share                                                                                (1,747) 
 
(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            -            -            (1,578)    (218)      - 
- On net 
 operating 
 income            -            -            (1,285)    (154)      - 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2020 (adjusted)     Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,582        5,088        18,523     18,675     -          -             43,868 
Intersegment 
 sales             5,564        594          6,095      89         28         (12,370)      - 
Excise taxes       -            -            (650)      (4,643)    -          -             (5,293) 
Revenues from 
 sales             7,146        5,682        23,968     14,121     28         (12,370)      38,575 
Operating 
 expenses          (3,633)      (4,873)      (23,252)   (13,453)   (192)      12,370        (33,033) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,644)      (334)        (395)      (244)      (18)       -             (3,635) 
Adjusted 
 operating 
 income            869          475          321        424        (182)      -             1,907 
Net income (loss) 
 from equity 
 affiliates and 
 other items       295          474          151        10         124        -             1,054 
Tax on net 
 operating 
 income            (461)        (36)         (90)       (132)      28         -             (691) 
Adjusted net 
 operating 
 income            703          913          382        302        (30)       -             2,270 
Net cost of net 
 debt                                                                                       (471) 
Non-controlling 
 interests                                                                                  (18) 
Adjusted net 
 income - group 
 share                                                                                      1,781 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2020                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      1,659        2,291        226        160        45                       4,381 
Total divestments  121          344          79         46         17                       607 
Cash flow from 
 operating 
 activities        3,923        (489)        (1,183)    (399)      (553)                    1,299 
 
 
 
INFORMATION BY BUSINESS SEGMENT 
TOTAL 
(unaudited) 
 
 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2019                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,563        4,292        22,040     21,379     6          -             49,280 
Intersegment 
 sales             8,266        993          7,739      203        47         (17,248)      - 
Excise taxes       -            -            (765)      (5,130)    -          -             (5,895) 
Revenues from 
 sales             9,829        5,285        29,014     16,452     53         (17,248)      43,385 
Operating 
 expenses          (4,156)      (4,471)      (28,084)   (15,714)   (356)      17,248        (35,533) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (3,307)      (488)        (351)      (263)      (22)       -             (4,431) 
Operating income   2,366        326          579        475        (325)      -             3,421 
Net income (loss) 
 from equity 
 affiliates and 
 other items       166          391          57         15         6          -             635 
Tax on net 
 operating 
 income            (893)        104          (3)        (100)      (39)       -             (931) 
Net operating 
 income            1,639        821          633        390        (358)      -             3,125 
Net cost of net 
 debt                                                                                       (476) 
Non-controlling 
 interests                                                                                  (49) 
Net income - 
 group share                                                                                2,600 
 
                                Integrated 
4(th) quarter      Exploration  Gas,         Refining   Marketing 
2019                &           Renewables   &           & 
(adjustments)(a)    Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    -            10           -          -          -          -             10 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             -            10           -          -          -          -             10 
Operating 
 expenses          (45)         (87)         44         (102)      (112)      -             (302) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (525)        (136)        (9)        -          -          -             (670) 
Operating income 
 (b)               (570)        (213)        35         (102)      (112)      -             (962) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (22)         (38)         (13)       (23)       -          -             (96) 
Tax on net 
 operating 
 income            200          278          31         41         (73)       -             477 
Net operating 
 income (b)        (392)        27           53         (84)       (185)      -             (581) 
Net cost of net 
 debt                                                                                       (3) 
Non-controlling 
 interests                                                                                  19 
Net income - 
 group share                                                                                (565) 
 
(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            -            -            85         (96)       - 
- On net 
 operating 
 income            -            -            117        (60)       - 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2019 (adjusted)     Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,563        4,282        22,040     21,379     6          -             49,270 
Intersegment 
 sales             8,266        993          7,739      203        47         (17,248)      - 
Excise taxes       -            -            (765)      (5,130)    -          -             (5,895) 
Revenues from 
 sales             9,829        5,275        29,014     16,452     53         (17,248)      43,375 
Operating 
 expenses          (4,111)      (4,384)      (28,128)   (15,612)   (244)      17,248        (35,231) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,782)      (352)        (342)      (263)      (22)       -             (3,761) 
Adjusted 
 operating 
 income            2,936        539          544        577        (213)      -             4,383 
Net income (loss) 
 from equity 
 affiliates and 
 other items       188          429          70         38         6          -             731 
Tax on net 
 operating 
 income            (1,093)      (174)        (34)       (141)      34         -             (1,408) 
Adjusted net 
 operating 
 income            2,031        794          580        474        (173)      -             3,706 
Net cost of net 
 debt                                                                                       (473) 
Non-controlling 
 interests                                                                                  (68) 
Adjusted net 
 income - group 
 share                                                                                      3,165 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2019                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      2,633        747          664        571        44                       4,659 
Total divestments  256          342          69         62         5                        734 
Cash flow from 
 operating 
 activities        4,206        1,527        1,142      278        (554)                    6,599 
 
 
 
INFORMATION BY BUSINESS SEGMENT 
TOTAL 
(unaudited) 
 
 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2019                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,794        6,419        21,711     21,279     2          -             51,205 
Intersegment 
 sales             7,716        627          8,017      162        27         (16,549)      - 
Excise taxes       -            -            (776)      (5,305)    -          -             (6,081) 
Revenues from 
 sales             9,510        7,046        28,952     16,136     29         (16,549)      45,124 
Operating 
 expenses          (4,029)      (6,409)      (27,334)   (15,334)   (177)      16,549        (36,734) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,529)      (315)        (374)      (233)      (15)       -             (3,466) 
Operating income   2,952        322          1,244      569        (163)      -             4,924 
Net income (loss) 
 from equity 
 affiliates and 
 other items       194          380          149        (10)       1          -             714 
Tax on net 
 operating 
 income            (1,424)      (173)        (292)      (164)      60         -             (1,993) 
Net operating 
 income            1,722        529          1,101      395        (102)      -             3,645 
Net cost of net 
 debt                                                                                       (505) 
Non-controlling 
 interests                                                                                  (29) 
Net income - 
 group share                                                                                3,111 
 
                                Integrated 
1(st) quarter      Exploration  Gas,         Refining   Marketing 
2019                &           Renewables   &           & 
(adjustments)(a)    Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    -            (27)         -          -          -          -             (27) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             -            (27)         -          -          -          -             (27) 
Operating 
 expenses          -            (58)         492        74         -          -             508 
Depreciation, 
depletion and 
impairment of 
tangible assets 
and mineral 
interests          -            -            -          -          -          -             - 
Operating income 
 (b)               -            (85)         492        74         -          -             481 
Net income (loss) 
 from equity 
 affiliates and 
 other items       -            6            2          -          -          -             8 
Tax on net 
 operating 
 income            -            16           (149)      (22)       -          -             (155) 
Net operating 
 income (b)        -            (63)         345        52         -          -             334 
Net cost of net 
 debt                                                                                       (4) 
Non-controlling 
 interests                                                                                  22 
Net income - 
 group share                                                                                352 
 
(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            -            -            492        74         - 
- On net 
 operating 
 income            -            -            345        52         - 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2019 (adjusted)     Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,794        6,446        21,711     21,279     2          -             51,232 
Intersegment 
 sales             7,716        627          8,017      162        27         (16,549)      - 
Excise taxes       -            -            (776)      (5,305)    -          -             (6,081) 
Revenues from 
 sales             9,510        7,073        28,952     16,136     29         (16,549)      45,151 
Operating 
 expenses          (4,029)      (6,351)      (27,826)   (15,408)   (177)      16,549        (37,242) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,529)      (315)        (374)      (233)      (15)       -             (3,466) 
Adjusted 
 operating 
 income            2,952        407          752        495        (163)      -             4,443 
Net income (loss) 
 from equity 
 affiliates and 
 other items       194          374          147        (10)       1          -             706 
Tax on net 
 operating 
 income            (1,424)      (189)        (143)      (142)      60         -             (1,838) 
Adjusted net 
 operating 
 income            1,722        592          756        343        (102)      -             3,311 
Net cost of net 
 debt                                                                                       (501) 
Non-controlling 
 interests                                                                                  (51) 
Adjusted net 
 income - group 
 share                                                                                      2,759 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2019                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      2,025        1,118        285        144        15                       3,587 
Total divestments  29           225          169        72         2                        497 
Cash flow from 
 operating 
 activities        3,936        892          (538)      232        (893)                    3,629 
 
 
 
Reconciliation of the information by business segment with Consolidated 
Financial Statements 
TOTAL 
(unaudited) 
 
 
                                                              Consolidated 
1(st) quarter 2020                                            statement 
(M$)                                Adjusted  Adjustments(a)  of income 
Sales                               43,868    2               43,870 
Excise taxes                        (5,293)   -               (5,293) 
Revenues from sales                 38,575    2               38,577 
 
Purchases net of inventory 
 variation                          (26,107)  (1,961)         (28,068) 
Other operating expenses            (6,786)   (158)           (6,944) 
Exploration costs                   (140)     -               (140) 
Depreciation, depletion and 
 impairment of tangible assets and 
 mineral interests                  (3,635)   -               (3,635) 
Other income                        580       -               580 
Other expense                       (191)     (229)           (420) 
 
Financial interest on debt          (567)     (2)             (569) 
Financial income and expense from 
 cash & cash equivalents            (10)      (145)           (155) 
Cost of net debt                    (577)     (147)           (724) 
 
Other financial income              188       -               188 
Other financial expense             (181)     -               (181) 
 
Net income (loss) from equity 
 affiliates                         658       74              732 
 
Income taxes                        (585)     622             37 
Consolidated net income             1,799     (1,797)         2 
Group share                         1,781     (1,747)         34 
Non-controlling interests           18        (50)            (32) 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
                                                              Consolidated 
1(st) quarter 2019                                            statement 
(M$)                                Adjusted  Adjustments(a)  of income 
Sales                               51,232    (27)            51,205 
Excise taxes                        (6,081)   -               (6,081) 
Revenues from sales                 45,151    (27)            45,124 
 
Purchases net of inventory 
 variation                          (30,238)  517             (29,721) 
Other operating expenses            (6,716)   (9)             (6,725) 
Exploration costs                   (288)     -               (288) 
Depreciation, depletion and 
 impairment of tangible assets and 
 mineral interests                  (3,466)   -               (3,466) 
Other income                        200       47              247 
Other expense                       (73)      (136)           (209) 
 
Financial interest on debt          (557)     (4)             (561) 
Financial income and expense from 
 cash & cash equivalents            (28)      -               (28) 
Cost of net debt                    (585)     (4)             (589) 
 
Other financial income              160       -               160 
Other financial expense             (195)     -               (195) 
 
Net income (loss) from equity 
 affiliates                         614       97              711 
 
Income taxes                        (1,754)   (155)           (1,909) 
Consolidated net income             2,810     330             3,140 
Group share                         2,759     352             3,111 
Non-controlling interests           51        (22)            29 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 

(1) Definition page 3

(2) Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.

(3) 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 14.

(4) Tax on adjusted net operating income / (adjusted net operating income -- income from equity affiliates -- dividends received from investments -- impairment of goodwill + tax on adjusted net operating income).

(5) In accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bond

(6) Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.

(7) Net acquisitions = acquisitions -- assets sales -- other transactions with non-controlling interests (see page 14).

(8) Net investments = Organic investments + net acquisitions (see page 14).

(9) Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, and effective second quarter 2019 including organic loan repayments from equity affiliates, and effective first quarter 2020 including capital gain from renewable projects sale. The inventory valuation effect is explained on page 17. The reconciliation table for different cash flow figures is on page 15.

(10) DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.

(11) Adjustment items shown on page 14.

(12) Details shown on page 14 and in the appendix to the financial statements.

 

(13) Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

 

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