Regulatory News:

 

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

 
                                                      Change          Change 
                                       1Q21    1Q20    vs 1Q20  1Q19   vs 1Q19 
 
Oil price - Brent ($/b)                61.1    50.1   +22%      63.1  -3% 
Average price of LNG ($/Mbtu)          6.1     6.3    -4%       7.2   -16% 
Variable cost margin - Refining 
 Europe, VCM ($/t)                     5.3     26.3   -80%      33.0  -84% 
 
Adjusted net income (Group share)(1) 
- in billions of dollars (B$)          3.0     1.8    69%       2.8   +9% 
- in dollars per share                 1.10    0.66   +68%      1.02  +8% 
 
DACF(1) (B$)                           5.8     4.3    +34%      6.3   -8% 
Cash Flow from operations (B$)         5.6     1.3    x4,3      3.6   +54% 
 
 
Net income (Group share) of 3.3 B$ in 
 1Q21 
Net-debt-to-capital ratio of 19.5% at March 31, 2021 
 vs. 21.7% at December 31, 2020(2) 
Hydrocarbon production of 2,863 kboe/d in 1Q21, a decrease of 
 7% compared to 1Q20 
First 2021 interim dividend set at 
 0.66 EUR/share 
 

The Board of Directors of Total SE, meeting on April 28, 2021, under the chairmanship of Chairman and Chief Executive Officer Patrick Pouyanné, approved the Group's first quarter 2021 accounts. On this occasion, Patrick Pouyanné said:

 

<< In the first quarter, the Group fully benefited from rising oil and gas prices, up 38% and 24%, respectively quarter-to-quarter, and its strategy to grow LNG and Renewables and Electricity.

 

The Group reported adjusted net income of $3 billion, above the pre-crisis first quarter of 2019, despite a less favorable environment by taking advantage of the action plans implemented during the crisis. Cash flow (DACF) increased to $5.8 billion and gearing already decreased to less than 20% in the first quarter of 2021, validating the strategy of resilience and maintaining the dividend driven by the Board of Directors during the 2020 crisis. The Board of Directors confirms the objective of anchoring the Group's gearing sustainably below 20%. The organic cash breakeven was less than $25/b in the first quarter.

 

The iGRP segment reported adjusted net operating income of $1 billion, the highest in its history, and generated cash flow of more than $1 billion, thanks to growing LNG sales and the positive contribution from Renewables and Electricity, which had an EBITDA of nearly $350 million. Over the past year, gross installed renewable power generation capacity grew from 3 GW to 7.8 GW, renewable power production more than doubled, net power production increased by more than 60% and the Group now has more than 5 million customers in France. With more than $2 billion invested in renewables, including the acquisition of a 20% stake in Adani Green Energy Ltd in India, in the first quarter of 2021, the Group is accelerating its transformation into a broad energy company.

 

With an adjusted net operating income of $2 billion, Exploration & Production fully captured the higher oil price and provided a strong cash flow contribution of $3.8 billion. Given the OPEC+ quota implementation, the Group's production, as announced, increased slightly to 2.86 Mboe/d (0.8%). With the launch of the Lake Albert project in Uganda and Tanzania, the Group is implementing its strategy to invest in resilient low-breakeven projects that reduce the carbon intensity of its portfolio.

 

The improved Upstream environment contrasts with depressed European refining margins, down 80% from a year ago, reflecting weak demand for petroleum products of 13 Mb/d in the first quarter 2021 versus 15 Mb/d a year earlier. Downstream adjusted net operating income was more than $500 million, supported by strong petrochemicals performance and resilient Marketing & Services.

 

Strengthened by these excellent results and confident in the fundamentals of the Group, the Board of Directors decided to distribute a first interim dividend for fiscal year 2021 stable at EUR0.66 / share. >>

 

Highlights(3)

 

Sustainability

   -- Total's Board of Directors takes the initiative to submit a resolution on 
      the Company's ambition for sustainable development and energy transition 
      toward carbon neutrality 
 
   -- Consistent with its climate policy, the Group withdraws from the American 
      Petroleum Institute 
 
   -- Inauguration of L'Industreet, a campus for training young people in the 
      industry profession, Total's flagship action for social responsibility in 
      France 
 

Renewables and Electricity

   -- Acquired in India 20% of Adani Green Energy Limited (AGEL), the largest 
      solar developer in the world 
 
   -- Secured with Macquarie rights to seabed lease to jointly develop 1.5 GW 
      offshore wind project in the UK 
 
   -- Acquired 4 GW portfolio of solar and energy storage projects in the US 
 
   -- Partnered with Microsoft to support digital innovation and carbon 
      neutrality goals 
 
   -- Signed major green power sale agreement to Orange to develop 80 MW of 
      solar farms in France 
 
   -- Farmed down 50% of two renewables portfolios in France representing close 
      to 340 MW 
 

LNG

   -- Declaration of force majeure on Mozambique LNG project considering the 
      security situation in the northern Cabo Delgado 
 
   -- Signed agreements with Shenergy Group for the supply of up to 1.4 Mt/y of 
      LNG in China 
 
   -- Obtained supplier license for marine bunker LNG in Singapore 
 
   -- Signed technical collaboration agreement with Siemens Energy to reduce 
      CO2 emissions related to LNG 
 

Upstream

   -- Signed definitive agreements enabling the launch of Tilenga and 
      Kingfisher upstream oil projects and construction of East African Crude 
      Oil Pipeline in Uganda and Tanzania 
 
   -- Published societal and environmental studies relating to the Tilenga and 
      EACOP projects in Uganda and Tanzania 
 

Downstream

   -- Started production of sustainable aviation fuel in France at the La 
      Mède biorefinery and at the Oudalle facility (Seine-Maritime) 
 

Carbon Capture

   -- Investment to plant 40,000-hectare forest in Republic of Congo that will 
      create a carbon sink to sequester more than 10 million tons of CO2 over 
      20 years 
 
   -- Creation of the joint-venture development of the Northern Lights CO2 
      sequestration project in the northern North Sea 
 

Key figures from Total's consolidated financial statements(4)

 
In millions of dollars, except                             1Q21          1Q21 
effective tax rate, earnings per                            vs            vs 
share and number of shares            1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Adjusted net operating income from 
 business segments                    3,487  1,824  2,300  +52%   3,413  +2% 
Exploration & Production              1,975  1,068  703    x2,8   1,722  +15% 
Integrated Gas, Renewables & Power    985    254    913    +8%    592    +66% 
Refining & Chemicals                  243    170    382    -36%   756    -68% 
Marketing & Services                  284    332    302    -6%    343    -17% 
Contribution of equity affiliates to 
 adjusted net income                  520    367    658    -21%   614    -15% 
Group effective tax rate(5)           34.6%  14.9%  30.0%         40.5% 
Adjusted net income (Group share)     3,003  1,304  1,781  +69%   2,759  +9% 
Adjusted fully-diluted earnings per 
 share (dollars)(6)                   1.10   0.46   0.66   +68%   1.02   +8% 
Adjusted fully-diluted earnings per 
 share (euros)*                       0.91   0.39   0.60   +52%   0.90   +1% 
Fully-diluted weighted-average 
 shares (millions)                    2,645  2,645  2,601  +2%    2,620  +1% 
 
Net income (Group share)              3,344  891    34     x98,4  3,111  +7% 
 
Organic investments(7)                2,379  3,432  2,523  -6%    2,784  -15% 
Net acquisitions(8)                   1,590  1,099  1,102  +44%   306    x5,2 
Net investments(9)                    3,969  4,531  3,625  +9%    3,090  +28% 
Operating cash flow before working 
 capital changes**(10)                5,366  4,498  3,765  +43%   5,774  -7% 
Operating cash flow before working 
 capital changes w/o financial 
 charges (DACF)(11)                   5,750  4,933  4,277  +34%   6,277  -8% 
Cash flow from operations             5,598  5,674  1,299  x4,3   3,629  +54% 
 

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

* Average EUR-$ exchange rate: 1.2048 in the first quarter 2021.

 

** 1Q20 and 1Q19 data restated.

 

Key figures of environment and Group production

 

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

 
                                                            1Q21         1Q21 
                                                             vs           vs 
                                          1Q21  4Q20  1Q20   1Q20  1Q19   1Q19 
Brent ($/b)                               61.1  44.2  50.1  +22%   63.1  -3% 
Henry Hub ($/Mbtu)                        2.7   2.8   1.9   +46%   2.9   -5% 
NBP ($/Mbtu)                              6.8   5.6   3.1   x2,2   6.3   +7% 
JKM ($/Mbtu)                              10.0  8.0   3.6   x2,8   6.6   +50% 
Average price of liquids ($/b) 
 Consolidated subsidiaries                56.4  41.0  44.4  +27%   58.7  -4% 
Average price of gas ($/Mbtu) 
 Consolidated subsidiaries                4.06  3.31  3.35  +21%   4.51  -10% 
Average price of LNG ($/Mbtu) 
 Consolidated subsidiaries and equity 
 affiliates                               6.08  4.90  6.32  -4%    7.20  -16% 
 
Variable cost margin - Refining Europe, 
 VCM ($/t)                                5.3   4.6   26.3  -80%   33.0  -84% 
 

* The indicators are shown on page 19.

 

> Production*

 
                                                           1Q21          1Q21 
                                                            vs            vs 
                                      1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Hydrocarbon production (kboe/d)       2,863  2,841  3,086  -7%    2,946  -3% 
Oil (including bitumen) (kb/d)        1,272  1,238  1,448  -12%   1,425  -11% 
Gas (including condensates and 
 associated NGL) (kboe/d)             1,591  1,603  1,638  -3%    1,521  +5% 
 
Hydrocarbon production (kboe/d)       2,863  2,841  3,086  -7%    2,946  -3% 
Liquids (kb/d)                        1,508  1,483  1,699  -11%   1,629  -7% 
Gas (Mcf/d)                           7,400  7,406  7,560  -2%    7,167  +3% 
 

* Group production = E&P production + iGRP production

 

Hydrocarbon production was 2,863 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2021, a decrease of 7% year-on-year, comprised of:

   -- -3% due to compliance with OPEC+ quotas, notably in Nigeria, the United 
      Arab Emirates and Kazakhstan, 
 
   -- +2% due to resumption of production in Libya, 
 
   -- +2% due to the start-up and ramp-up of projects, notably North Russkoye 
      in Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and 
      Iara in Brazil, 
 
   -- -2% due to portfolio effect, notably the sales of assets in the United 
      Kingdom and Block CA1 in Brunei, 
 
   -- -3% due to unplanned maintenance shut-downs notably in Norway, 
 
   -- -3% due to the natural decline of fields. 
 

Analysis of business segments

 

Integrated Gas, Renewables & Power (iGRP)

 

> Production and sales of Liquefied natural gas (LNG) and electricity

 
                                                           1Q21          1Q21 
                                                            vs            vs 
Hydrocarbon production for LNG        1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
iGRP (kboe/d)                         518    532    552    -6%    518    - 
Liquids (kb/d)                        64     65     73     -13%   66     -4% 
Gas (Mcf/d)                           2,476  2,549  2,611  -5%    2,460  +1% 
 
                                                           1Q21          1Q21 
                                                            vs            vs 
Liquefied Natural Gas in Mt           1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Overall LNG sales                     9.9    10.0   9.8    +1%    7.7    +28% 
incl. Sales from equity production*   4.4    4.3    4.7    -7%    3.8    +15% 
incl. Sales by Total from equity 
 production and third party 
 purchases                            7.9    8.0    7.8    +1%    6.0    +31% 
 

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

 

Despite hydrocarbon production for LNG in the first quarter of 2021, down 6% year-over-year, mainly due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020, total LNG sales were stable in the first quarter of 2021.

 
                                                                         1Q21 
                                                                          vs 
Renewables & Electricity                               1Q21  4Q20  1Q20   1Q20 
Portfolio of renewable power generation gross 
 capacity to 2025 (GW) (1,2)                           36.2  26.1  16.7  x2,2 
o/w installed capacity                                 7.8   7.0   3.0   x2,6 
o/w capacity in construction                           5.1   4.1   2.2   x2,3 
o/w capacity in development                            23.3  15.0  11.5  x2 
Gross capacity in development post-2025 (2)            4.0   2.5   0.4   x10 
Gross renewables capacity with PPA (GW) (1,2)          21.2  17.5  8.3   x2,6 
Portfolio of renewable power generation net capacity 
 to 2025 (GW) (1,2)                                    28.0  17.9  11.5  x2,4 
o/w installed capacity                                 3.8   3.1   1.2   x3,1 
o/w capacity in construction                           3.1   2.3   0.8   x3,8 
o/w capacity in development                            21.1  12.5  9.5   x2,2 
Net capacity in development post-2025 (2)              2.1   1.4   0.3   x6,5 
Net power production (TWh) (3)                         4.7   4.3   2.9   +61% 
incl. Power production from renewables                 1.6   1.2   0.7   x2,3 
Clients power - BtB and BtC (Million) (2)              5.7   5.6   4.2   +37% 
Clients gas - BtB and BtC (Million) (2)                2.7   2.7   1.7   +58% 
Sales power - BtB and BtC (TWh)                        16.1  13.5  14.2  +13% 
Sales gas - BtB and BtC (TWh)                          36.2  31.5  33.5  +8% 
 
Proportionnal EBITDA Renewables and Electricity (M$) 
 (4)                                                   344   179   250   +38% 
incl. from renewables business                         148   102   91    +62% 
 

(1) Includes 20% of Adani Green Energy Ltd gross capacity effective first quarter 2021.

(2) End of period data.

(3) Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.

(4) Group's share (% interest) of EBITDA in Renewables and Electricity affiliates, regardless of consolidation method and including gains on asset sales.

 

EBITDA: "Earnings Before Interest, Tax, Depreciation and Amortization >>

 

Gross installed renewable power generation capacity grew to 7.8 GW at the end of the first quarter 2021, in line with the target of 10 GW by end-2021.

 

The portfolio of power capacity in operation, in construction and in development for 2025 has more than doubled from a year ago. It grew by 10 GW in the first quarter 2021 to 36 GW gross and 28 GW net, including the 20% interest in Adani Green Energy Limited (AGEL) and the acquisition of a 4 GW portfolio of solar projects in the US.

 

Net electricity production was 4.7 TWh in the first quarter 2021, an increase of 61% year-over-year, notably due to doubling production from renewable sources and the acquisition of four CCGT in France and Spain in the fourth quarter 2020.

 

Sales of electricity and gas in the first quarter 2021 increased by 13% and 8%, respectively, compared to the first quarter 2020 thanks to the growth in the number of customers.

 

The Group's share of EBITDA for the Renewables and Electricity activity was $344 million in the first quarter 2021, an increase of 38% year-on-year, driven by the growth in electricity production, mainly from renewables, and the number of gas and electricity customers.

 

> Results

 
                                                            1Q21         1Q21 
                                                             vs           vs 
In millions of dollars                 1Q21   4Q20   1Q20    1Q20  1Q19   1Q19 
Adjusted net operating income*         985    254    913    +8%    592   +66% 
including income from equity 
 affiliates                            264    97     248    +6%    255   +4% 
 
Organic investments                    753    1,007  646    +17%   493   +53% 
Net acquisitions                       1,893  577    1,137  +66%   400   x4,7 
Net investments                        2,646  1,584  1,783  +48%   893   x3 
 
Operating cash flow before working 
 capital changes **                    1,059  1,072  601    +76%   351   x3 
Cash flow from operations ***          780    575    (489)  ns     892   -13% 
 

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

** Excluding financial expenses, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects. 1Q20 and 1Q19 data restated (see note 10 on page 3).

 

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

 

Adjusted net operating income for the iGRP segment was $985 million in the first quarter, a new record high. The year-on-year increase of 8%, despite the lower price of LNG, reflects the growing contribution of the Renewables and Electricity activity and good performance of trading.

 

Operating cash flow before working capital changes was $1,059 million in the first quarter 2021, an increase of 76% compared to the first quarter 2020, for the same reasons.

 

Exploration & Production

 

> Production

 
                                              1Q21          1Q21 
                                               vs            vs 
Hydrocarbon production   1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
EP (kboe/d)              2,345  2,309  2,534  -7%    2,428  -3% 
Liquids (kb/d)           1,444  1,418  1,626  -11%   1,563  -8% 
Gas (Mcf/d)              4,924  4,857  4,949  -1%    4,707  +5% 
 

> Results

 
                                                           1Q21          1Q21 
In millions of dollars, except                              vs            vs 
effective tax rate                    1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Adjusted net operating income*        1,975  1,068  703    x2,8   1,722  +15% 
including income from equity 
 affiliates                           270    222    390    -31%   213    +27% 
Effective tax rate**                  41.0%  19.8%  59.6%         48.6% 
 
Organic investments                   1,279  1,569  1,572  -19%   1,958  -35% 
Net acquisitions                      (202)  548    (6)    ns     38     ns 
Net investments                       1,077  2,117  1,566  -31%   1,996  -46% 
 
Operating cash flow before working 
 capital changes ***                  3,824  2,652  2,576  +48%   4,246  -10% 
Cash flow from operations ***         3,736  3,046  3,923  -5%    3,936  -5% 
 

* 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.

 

Adjusted net operating income for the Exploration & Production segment was $1,975 million in the first quarter 2021, nearly triple the first quarter 2020, due to the sharp rebound in oil and gas prices.

 

Operating cash flow before working capital changes increased by 48% year-over-year to $3,824 million in the first quarter 2021 for the same reasons.

 

Downstream (Refining & Chemicals and Marketing & Services)

 

> Results

 
                                                           1Q21          1Q21 
                                                            vs            vs 
In millions of dollars              1Q21   4Q20   1Q20      1Q20  1Q19    1Q19 
Adjusted net operating income*      527    502    684      -23%   1,099  -52% 
 
Organic investments                 335    840    277      +21%   319    +5% 
Net acquisitions                    (103)  80     (30)     ns     (131)  ns 
Net investments                     232    920    247      -6%    188    +23% 
 
Operating cash flow before working 
 capital changes **                 872    1,129  1,064    -18%   1,686  -48% 
Cash flow from operations **        1,661  2,162  (1,582)  ns     (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

 
                                                           1Q21          1Q21 
Refinery throughput and utilization                         vs            vs 
rate*                                 1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Total refinery throughput (kb/d)      1,147  1,262  1,444  -21%   1,862  -38% 
France                                114    247    255    -55%   592    -81% 
Rest of Europe                        660    582    756    -13%   823    -20% 
Rest of world                         373    433    433    -14%   447    -17% 
Utlization rate based on crude 
 only**                               58%    60%    69%           89% 
 

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

 

** Based on distillation capacity at the beginning of the year, excluding Grandpuits from 2021, definitively shut down first quarter 2021.

 
                                                           1Q21          1Q21 
Petrochemicals production and                               vs            vs 
utilization rate                      1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Monomers* (kt)                        1,405  1,486  1,386  +1%    1,393  +1% 
Polymers (kt)                         1,165  1,291  1,202  -3%    1,297  -10% 
Vapocracker utilization rate**        87%    90%    83%           87% 
 

* Olefins.

 

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

 

Refinery throughput volumes fell by 21% in the first quarter 2021 compared to a year ago due to the voluntary economic shutdown of the Donges refinery given the low margins, the shutdown of the Grandpuits refinery before its conversion to a zero-oil platform and the sale of the Lindsey refinery in the United Kingdom. The temporary shutdown of the Port Arthur platform in the US due to Storm Uri also contributed to the decline.

 

Production of monomers and polymers was stable compared to a year ago. The effect of strong demand was partially offset by the temporary shutdown of facilities in the US due to Storm Uri in Texas.

 

> Results

 
                                                           1Q21          1Q21 
                                                            vs            vs 
In millions of dollars               1Q21  4Q20   1Q20      1Q20  1Q19    1Q19 
Adjusted net operating income*       243   170    382      -36%   756    -68% 
 
Organic investments                  222   448    168      +32%   240    -8% 
Net acquisitions                     (57)  (2)    (36)     ns     (124)  ns 
Net investments                      165   446    132      +25%   116    +42% 
 
Operating cash flow before working 
 capital changes **                  394   560    674      -42%   1,104  -64% 
Cash flow from operations **         996   1,514  (1,183)  ns     (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 the Refining & Chemicals segment fell by 36% year-on-year to $243 million in the first quarter 2021. The drop was driven by European refining margins, which are still very poor, due to high oil prices and weak demand, particularly for distillates, due to reduced aviation activity.

 

Operating cash flow before working capital changes fell by 42% year-on-year to $394 million in the first quarter 2021 for the same reasons.

 

Cash flow from operations increased by $2,179 million to $996 million in the first quarter 2021 notably due to the decrease in working capital in the first quarter 2021, despite the low first quarter 2020 inventory values that reflected the sharp drop in oil prices.

 

Marketing & Services

 

> Petroleum product sales

 
                                                        1Q21          1Q21 
                                                         vs            vs 
Sales in kb/d*                     1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Total Marketing & Services sales   1,442  1,509  1,656  -13%   1,836  -21% 
Europe                             776    828    906    -14%   1,012  -23% 
Rest of world                      666    681    750    -11%   824    -19% 
 

* Excludes trading and bulk refining sales

 

Petroleum product sales volumes decreased by 13% year-over-year because of the Covid-19 pandemic-related lockdowns and the 50% drop in aviation activity.

 

> Results

 
                                                            1Q21         1Q21 
                                                             vs           vs 
In millions of dollars                   1Q21  4Q20  1Q20    1Q20  1Q19   1Q19 
Adjusted net operating income*           284   332   302    -6%    343   -17% 
 
Organic investments                      113   392   109    +4%    80    +41% 
Net acquisitions                         (46)  82    6      ns     (8)   ns 
Net investments                          67    474   115    -42%   72    -7% 
 
Operating cash flow before working 
 capital changes **                      478   569   390    +23%   582   -18% 
Cash flow from operations **             665   648   (399)  ns     232   x2,9 
 

* 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 $284 million in the first quarter 2021, a decrease of 6% compared to a year ago, mainly due to lower worldwide sales volumes for the reasons indicated above.

 

Operating cash flow before working capital changes was $478 million in the first quarter 2021, an increase of 23%, notably due to the negative impact in the first quarter 2020 of the revaluation of futures contracts.

 

Group results

 

> Adjusted net operating income from business segments

 

Adjusted net operating income from the business segments was $3,487 million in the first quarter 2021, an increase of 52% year-on-year due to the increase in oil and gas prices.

 

> Adjusted net income (Group share)

 

Adjusted net income (Group share) was $3,003 million in the first quarter 2021 compared to $1,781 million in the first quarter 2020, an increase of 69%, due to the increase in oil and gas prices.

 

Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value(12) .

 

Total net income adjustments(13) were $341 million in the first quarter 2021, comprised of a positive stock effect of close to $700 million, restructuring charges related to voluntary departures in France and Belgium and an impairment related to end of the Qatargas 1 contract.

 

The effective tax rate for the Group was 34.6% in the first quarter 2021 versus 30% in the first quarter 2020.

 

> Adjusted earnings per share

 

Adjusted fully-diluted earnings per share was $1.10 in the first quarter 2021, calculated based on 2,645 million weighted-average shares, versus $0.66 in the first quarter 2020.

 

> Acquisitions - asset sales

 

Acquisitions were $2,208 million in the first quarter 2021 and include notably the acquisition for $2 billion of a 20% interest in the renewable energy project developer in India, Adani Green Energy Limited.

 

Asset sales were $618 million in the first quarter 2021 and include notably the 50% farm down in France of a portfolio of renewable projects with total capacity of 285 MW (100%), the sale of a 10% interest in the onshore OML 17 block in Nigeria, a price supplement to the sale of Block CA1 in Brunei and the disposal of the Lindsey refinery in the United Kingdom.

 

> Net cash flow

 

Net cash flow(14) for the Group was $1,397 million in the first quarter 2021 compared to $140 million in the first quarter 2020, which takes into account the increase in operating cash flow before changes in working capital to $5,366 million from $3,765 million and stable net investments of $3,969 million in the first quarter 2021 compared to $3,625 million a year ago.

 

> Profitability

 

The return on equity was 4.9% for the twelve months ended March 31, 2021.

 
In millions of 
dollars                April 1, 2020   January 1, 2020    April 1, 2019 
                       March 31, 2021  December 31, 2020  March 31, 2020 
Adjusted net income    5,330           4,067              11,079 
Average adjusted 
 shareholders' 
 equity                109,135         110,643            113,607 
Return on equity 
 (ROE)                 4.9%            3.7%               9.8% 
 

The return on average capital employed was 4.6% for the twelve months ended March 31, 2021.

 
In millions of 
dollars                April 1, 2020   January 1, 2020    April 1, 2019 
                       March 31, 2021  December 31, 2020  March 31, 2020 
Adjusted net 
 operating income      6,915           5,806              13,032 
Average capital 
 employed              148,777         145,723            150,418 
ROACE                  4.6%            4.0%               8.7% 
 

Total SE accounts

 

Net income for Total SE, the parent company, was EUR1,472 million in the first quarter 2021 compared to EUR1,718 in the first quarter 2020.

 

2021 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 $/b         +/- 2.7 B$          +/- 3.2 B$ 
European gas price 
 - NBP ($/Mbtu)      +/- 1 $/Mbtu       +/- 0.3 B$          +/- 0.25 B$ 
Variable cost 
 margin, European 
 refining (VCM)      +/- 10 $/t         +/- 0.4 B$          +/- 0.5 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 2021. 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 19.

 

** In a 50 $/b Brent environment.

 

Summary and outlook

 

Supported by the OPEC+ active policy to reduce inventories by adapting supply to demand, the oil price has remained above $60/b since the beginning of February 2021. However, the oil environment remains volatile and dependent on the global demand recovery, still affected by the Covid-19 pandemic.

 

The Group maintains its expectation for stable hydrocarbon production in 2021 compared to 2020, benefiting from the resumption of production in Libya.

 

Total anticipates that the increase in the oil price observed in the first quarter will have a positive impact on its average LNG selling price over the next six months, given the lag effect on pricing formulas.

 

Given the high level of distillate inventories, European refining margins remain fragile.

 

Faced with uncertainties in the environment, the Group maintains spending discipline with an operating cost savings target of $0.5 billion in 2021 and production costs close to $5/boe. Net investments are expected to be between $12-13 billion in 2021, half to maintain the Group's activities and half for growth. Nearly 50% of these growth investments will be allocated to renewables and electricity.

 

The Group's teams are fully committed to the four priorities of HSE including the objectives in terms of CO(2) emission reductions, operational excellence, cost reduction and cash flow generation.

 

In a 2021 hydrocarbon price environment maintained at the level of the first quarter (Brent at $60/b, European gas at $6/Mbtu), and with European refining margins at $10-15/t, the Group would expect to generate cash flow (DACF) on the order of $24 billion and a return on capital employed of close to 10%.

 

The Group confirms its priorities in terms of cash flow allocation: investing in profitable projects to implement its strategy to transform the Group into a broad-energy company, supporting the dividend through economic cycles, and maintaining a solid balance sheet with a minimum long-term "A" rating, by deleveraging to anchor the net debt-to-capital ratio sustainably below 20%.

 

* * * * *

 

To listen to the conference call with CFO Jean-Pierre Sbraire today at 13:30 (Paris time) please log on to total.com or call +44 (0) 203 009 5709 in Europe or +1 646 787 1226 in the United States (code: 3046396).

 

The conference replay will be available on total.com after the event.

 

* * * * *

 

Operating information by segment

 

> Group production (Exploration & Production + iGRP)

 
                                                      1Q21          1Q21 
Combined liquids and gas                               vs            vs 
 production by region (kboe/d)   1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Europe and Central Asia          1,050  1,059  1,097  -4%    990    +6% 
Africa                           551    566    701    -21%   697    -21% 
Middle East and North Africa     651    598    681    -4%    686    -5% 
Americas                         376    382    372    +1%    373    +1% 
Asia-Pacific                     235    236    235    -      201    +17% 
Total production                 2,863  2,841  3,086  -7%    2,946  -3% 
includes equity affiliates       729    727    753    -3%    709    +3% 
 
 
                                                           1Q21          1Q21 
                                                            vs            vs 
Liquids production by region (kb/d)   1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Europe and Central Asia               374    378    404    -7%    352    +6% 
Africa                                415    427    555    -25%   540    -23% 
Middle East and North Africa          499    454    516    -3%    522    -4% 
Americas                              179    181    178    +1%    177    +1% 
Asia-Pacific                          41     43     47     -13%   39     +5% 
Total production                      1,508  1,483  1,699  -11%   1,629  -7% 
includes equity affiliates            201    200    214    -6%    217    -7% 
 
 
                                                        1Q21          1Q21 
                                                         vs            vs 
Gas production by region (Mcf/d)   1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Europe and Central Asia            3,636  3,666  3,734  -3%    3,426  +6% 
Africa                             693    701    746    -7%    795    -13% 
Middle East and North Africa       843    809    912    -8%    905    -7% 
Americas                           1,100  1,126  1,092  +1%    1,101  - 
Asia-Pacific                       1,128  1,104  1,076  +5%    940    +20% 
Total production                   7,400  7,406  7,560  -2%    7,167  +3% 
includes equity affiliates         2,855  2,851  2,905  -2%    2,656  +8% 
 

> Downstream (Refining & Chemicals and Marketing & Services)

 
                                                           1Q21          1Q21 
Petroleum product sales by region                           vs            vs 
(kb/d)                                1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Europe                                1,488  1,651  1,771  -16%   2,022  -26% 
Africa                                667    628    683    -2%    658    +1% 
Americas                              772    794    766    +1%    839    -8% 
Rest of world                         495    547    444    +11%   616    -20% 
Total consolidated sales              3,422  3,619  3,663  -7%    4,135  -17% 
Includes bulk sales                   331    458    497    -33%   557    -41% 
Includes trading                      1,648  1,652  1,510  +9%    1,742  -5% 
 
 
                                                       1Q21          1Q21 
                                                        vs            vs 
Petrochemicals production* (kt)   1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Europe                            1,346  1,381  1,272  6%     1,416  -5% 
Americas                          510    662    664    -23%   614    -17% 
Middle East and Asia              714    735    652    +9%    660    +8% 
 

* Olefins, polymers

 

> Renewables

 
               1Q21                            4Q20 
Installed 
power 
generation 
gross 
capacity (GW)         Onshore                         Onshore 
(1,2)          Solar  Wind       Other  Total  Solar  Wind        Other  Total 
France         0.4    0.5        0.1    1.0    0.4    0.5         0.1    1.0 
Rest of 
 Europe        0.1    0.8        0.1    1.0    0.1    0.8         0.1    1.0 
Africa         0.1    0.0        0.0    0.1    0.1    0.0         0.0    0.1 
Middle East    0.3    0.0        0.0    0.3    0.3    0.0         0.0    0.3 
North America  0.8    0.0        0.0    0.8    0.6    0.0         0.0    0.6 
South America  0.2    0.1        0.0    0.3    0.2    0.1         0.0    0.2 
India          3.4    0.1        0.0    3.5    3.3    0.0         0.0    3.3 
Asia-Pacific   0.7    0.0        0.0    0.7    0.5    0.0         0.0    0.5 
Total          6.1    1.5        0.1    7.8    5.6    1.3         0.1    7.0 
 
 
               1Q21                                    4Q20 
Power 
generation 
gross 
capacity from 
renewables in 
construction 
to 2025 (GW)          Onshore  Offshore                       Onshore  Offshore 
(1,2)          Solar  Wind     Wind      Other  Total  Solar  Wind     Wind      Other  Total 
France         0.3    0.0      0.0       0.1    0.4    0.3    0.0      0.0       0.0    0.3 
Rest of 
 Europe        0.1    0.3      1.1       0.0    1.5    0.1    0.3      1.1       0.0    1.5 
Africa         0.0    0.0      0.0       0.0    0.0    0.0    0.0      0.0       0.0    0.0 
Middle East    0.8    0.0      0.0       0.0    0.8    0.8    0.0      0.0       0.0    0.8 
North America  0.3    0.0      0.0       0.0    0.3    0.0    0.0      0.0       0.0    0.1 
South America  0.2    0.2      0.0       0.0    0.3    0.2    0.3      0.0       0.0    0.4 
India          0.9    0.4      0.0       0.0    1.3    0.5    0.0      0.0       0.0    0.5 
Asia-Pacific   0.4    0.0      0.0       0.0    0.5    0.5    0.0      0.0       0.0    0.5 
Total          2.9    0.9      1.1       0.1    5.1    2.3    0.6      1.1       0.1    4.1 
 
 
               1Q21                                    4Q20 
Power 
generation 
gross 
capacity from 
renewables in 
development 
to 2025 (GW)          Onshore  Offshore                       Onshore  Offshore 
(1,2)          Solar  Wind     Wind      Other  Total  Solar  Wind     Wind      Other  Total 
France         3.2    1.0      0.0       0.0    4.2    3.5    1.0      0.0       0.1    4.6 
Rest of 
 Europe        5.2    0.3      0.4       0.0    5.9    5.1    0.3      0.4       0.0    5.7 
Africa         0.1    0.1      0.0       0.0    0.2    0.1    0.1      0.0       0.0    0.2 
Middle East    0.2    0.0      0.0       0.0    0.2    0.1    0.0      0.0       0.0    0.1 
North America  3.4    0.2      0.0       0.7    4.2    0.6    0.3      0.0       0.0    0.9 
South America  0.8    0.8      0.0       0.0    1.6    0.5    0.3      0.0       0.0    0.9 
India          6.2    0.1      0.0       0.0    6.2    1.6    0.0      0.0       0.0    1.6 
Asia-Pacific   0.8    0.0      0.0       0.0    0.8    0.9    0.0      0.0       0.0    0.9 
Total          19.8   2.5      0.4       0.7    23.3   12.5   2.0      0.4       0.1    15.0 
 

(1) Includes 20% of gross capacity of Adani Green Energy Ltd effective first quarter 2021.

 

(2) End-of-period data.

 
             In operation           In construction                  In development 
Gross 
renewables 
capacity 
covered by 
PPA at 31 
March 2021          Onshore                Onshore  Offshore                Onshore  Offshore 
(GW)         Solar  Wind     Total  Solar  Wind     Wind      Total  Solar  Wind     Wind      Total 
Europe       0.6    1.3      1.9    0.3    0.3      0.8       1.4    3.8    0.3      X         4.2 
Asia         4.4    X        4.5    2.2    0.4      -         2.6    4.0    X        -         4.0 
North 
 America     0.8    X        0.8    X      X        -         0.2    0.3    X        -         0.3 
Rest of 
 World       0.3    X        0.5    X      X        -         0.4    0.2    X        -         0.3 
total        6.0    1.5      7.6    2.8    0.9      0.8       4.5    8.3    0.6      X         8.9 
 
 
          In operation           In construction                  In development 
PPA 
average 
price at 
31 march 
2021             Onshore                Onshore  Offshore                Onshore  Offshore 
($/MWh)   Solar  Wind     Total  Solar  Wind     Wind      Total  Solar  Wind     Wind      Total 
Europe    242    123      159    68     94       61        68     44     72       X         49 
Asia      88     X        87     46     49       -         47     40     X        -         40 
North 
 America  156    X        159    X      X        -         57     32     X        -         54 
Rest of 
 World    105    X        105    X      X        -         45     89     X        -         123 
total     113    115      113    48     66       61        55     42     87       X         46 
 

Adjustment items to net income (Group share)

 
In millions of dollars                             1Q21   4Q20   1Q20     1Q19 
Special items affecting net income (Group share)   (342)  (683)  (334)    (14) 
Gain (loss) on asset sales                         -      104    -        - 
Restructuring charges                              (161)  (194)  (80)     (2) 
Impairments                                        (144)  (71)   -        - 
Other                                              (37)   (522)  (254)    (12) 
After-tax inventory effect : FIFO vs. replacement 
 cost                                              689    224    (1,414)  388 
Effect of changes in fair value                    (6)    46     1        (22) 
 
Total adjustments affecting net income             341    (413)  (1,747)  352 
 

Investments - Divestments

 
                                                           1Q21          1Q21 
                                                            vs            vs 
In millions of dollars                1Q21   4Q20   1Q20    1Q20  1Q19    1Q19 
Organic investments ( a )             2,379  3,432  2,523  -6%    2,784  -15% 
capitalized exploration               243    214    135    +80%   232    +5% 
increase in non-current loans         292    355    279    +5%    130    x2,2 
repayment of non-current loans, 
 excluding organic loan repayment 
 from equity affiliates               (96)   (212)  (117)  ns     (134)  ns 
change in debt from renewable 
 projects (Group share)               (167)  (46)   (105)  ns     -      ns 
Acquisitions ( b )                    2,208  1,538  1,644  +34%   669    x3,3 
Asset sales ( c )                     618    439    542    +14%   363    +70% 
change in debt from renewable 
 projects (partner share)             100    15     61     64%    -      ns 
Other transactions with 
non-controlling interests ( d )       -      -      -      ns     -      ns 
Net investments ( a + b - c - d )     3,969  4,531  3,625  +9%    3,090  +28% 
Organic loan repayment from equity 
 affiliates ( e )                     (30)   (77)   7      ns     -      ns 
Change in debt from renewable 
 projects financing * ( f )           267    61     166    +61%   -      ns 
Capex linked to capitalized leasing 
 contracts ( g )                      22     39     24     -8%    -      ns 
Cash flow used in investing 
 activities ( a + b - c + e + f -g)   4,184  4,476  3,774  +11%   3,090  +35% 
 

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

 

Cash flow

 
                                                         1Q21            1Q21 
                                                          vs              vs 
In millions of dollars            1Q21   4Q20   1Q20      1Q20  1Q19      1Q19 
Operating cash flow before 
 working capital changes w/o 
 financials charges (DACF)        5,750  4,933  4,277    +34%   6,277    -8% 
Financial charges                 (384)  (436)  (512)    ns     (503)    ns 
Operating cash flow before 
 working capital changes ( a ) 
 *                                5,366  4,498  3,765    +43%   5,774    -7% 
(Increase) decrease in working 
 capital **                       (555)  976    (633)    ns     (2,711)  ns 
Inventory effect                  883    308    (1,796)  ns     566      +56% 
capital gain from renewable 
 projects sale                    (66)   (32)   (44)     ns     -        ns 
Organic loan repayment from 
 equity affiliates                (30)   (77)   7        ns     -        ns 
Cash flow from operations         5,598  5,674  1,299    x4,3   3,629    +54% 
 
Organic investments ( b )         2,379  3,432  2,523    -6%    2,784    -15% 
Free cash flow after organic 
 investments, w/o net asset 
 sales ( a - b )                  2,987  1,066  1,242    x2,4   3,249    -8% 
 
Net investments ( c )             3,969  4,531  3,625    +9%    3,090    +28% 
Net cash flow ( a - c )           1,397  (33)   140      x10    2,943    -53% 
 

* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP's contracts and including capital gain from renewable projects sale (effective first quarter 2020).

Historical data have been restated to cancel the impact of fair valuation of iGRP sector's contracts.

 

** Changes in working capital are presented excluding the mark-to-market effect of iGRP's contracts.

 

Gearing ratio

 
In millions of dollars          03/31/2021  31/12/2020  03/31/2020  03/31/2019 
Current borrowings *            19,279      15,893      17,361      12,998 
Other current financial 
 liabilities                    351         203         604         651 
Current financial assets *      (4,492)     (4,519)     (6,870)     (3,373) 
Net financial assets 
 classified as held for sale    -           313         -           227 
Non-current financial debt *    44,842      52,467      42,461      38,264 
Non-current financial assets *  (2,669)     (3,762)     (993)       (587) 
Cash and cash equivalents       (30,285)    (31,268)    (21,634)    (25,432) 
Net debt (a)                    27,026      29,327      30,929      22,748 
 
Shareholders' equity - Group 
 share                          109,295     103,702     112,006     117,993 
Non-controlling interests       2,390       2,383       2,428       2,365 
Shareholders' equity (b)        111,685     106,085     114,434     120,358 
 
Net-debt-to-capital ratio = a 
 / (a+b)                        19.5%       21.7%       21.3%       15.9% 
 
Leases (c)                      7,747       7,812       7,309       6,991 
Net-debt-to-capital ratio 
 including leases (a+c) / 
 (a+b+c)                        23.7%       25.9%       25.0%       19.8% 
 

* Excludes leases receivables and leases debts.

 

Return on average capital employed

 

> Twelve months ended March 31, 2021

 
              Integrated 
              Gas,         Exploration 
In millions   Renewables   &             Refining &    Marketing & 
of dollars    & Power      Production    Chemicals     Services      Group 
Adjusted net 
 operating 
 income       1,850        3,635         900           1,206         6,915 
Capital 
 employed at 
 03/31/2020*  44,236       85,622        12,878        8,764         152,374 
Capital 
 employed at 
 03/31/2021*  48,423       78,170        10,403        8,198         145,180 
ROACE         4.0%         4.4%          7.7%          14.2%         4.6% 
 

> Twelve months ended December 31, 2020

 
              Integrated 
              Gas,         Exploration 
In millions   Renewables   &             Refining &    Marketing & 
of dollars    & Power      Production    Chemicals     Services      Group 
Adjusted net 
 operating 
 income       1,778        2,363         1,039         1,224         5,806 
Capital 
 employed at 
 12/31/2019*  41,549       88,844        12,228        8,371         148,828 
Capital 
 employed at 
 12/31/2020*  45,611       78,928        11,375        8,793         142,617 
ROACE         4.1%         2.8%          8.8%          14.3%         4.0% 
 

> Twelve months ended March 31, 2020

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

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

 

This press release presents the results for the first quarter of 2021 from the consolidated financial statements of TOTAL SE as of March 31, 2021. The limited review procedures by the Statutory Auditors are underway. The notes to the consolidated financial statements (unaudited) are available on the Total website total.com.

 

This document may contain 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 activities and industrial strategy of TOTAL. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of the Group, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by the Group, it being specified that the means to be deployed do not depend solely on TOTAL. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as "envisions", "intends", "anticipates", "believes", "considers", "plans", "expects", "thinks", "targets", "aims" or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by the Group as of the date of this document.

 

These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, 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. The information on risk factors that could have a significant adverse effect on the Group's business, financial condition, including its operating income and cash flow, reputation, outlook or the value of financial instruments issued by TOTAL is provided in the most recent version of the Universal Registration Document which is filed by the Company with the French Autorité des Marchés Financiers and the annual report on Form 20-F 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, operating cash flow before working capital changes, the shareholder rate of return. 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.

 

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.

 

Furthermore, TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.

 

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 the Form 20-F of TOTAL, 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 2021 consolidated accounts, IFRS

 
CONSOLIDATED STATEMENT OF INCOME 
TOTAL 
(unaudited) 
                             1(st) quarter  4(th) quarter  1(st) quarter 
(M$)(a)                      2021           2020           2020 
 
Sales                        43,737         37,943         43,870 
Excise taxes                 (5,104)        (5,595)        (5,293) 
 Revenues from sales         38,633         32,348         38,577 
 
Purchases, net of inventory 
 variation                   (23,398)       (20,508)       (28,068) 
Other operating expenses     (6,880)        (6,663)        (6,944) 
Exploration costs            (167)          (338)          (140) 
Depreciation, depletion and 
 impairment of tangible 
 assets and mineral 
 interests                   (3,325)        (3,543)        (3,635) 
Other income                 358            838            580 
Other expense                (659)          (697)          (420) 
 
Financial interest on debt   (466)          (501)          (569) 
Financial income and 
 expense from cash & cash 
 equivalents                 95             53             (155) 
 Cost of net debt            (371)          (448)          (724) 
 
Other financial income       109            173            188 
Other financial expense      (130)          (183)          (181) 
 
Net income (loss) from 
 equity affiliates           881            73             732 
 
Income taxes                 (1,639)        (149)          37 
Consolidated net income      3,412          903            2 
Group share                  3,344          891            34 
Non-controlling interests    68             12             (32) 
Earnings per share ($)       1.24           0.31           (0.01) 
Fully-diluted earnings per 
 share ($)                   1.23           0.31           (0.01) 
(a) Except for per share 
 amounts. 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
TOTAL 
(unaudited) 
                               1(st) quarter  4(th) quarter  1(st) quarter 
(M$)                           2021           2020           2020 
Consolidated net income        3,412          903            2 
 
Other comprehensive income 
 
Actuarial gains and losses     -              17             133 
Change in fair value of 
 investments in equity 
 instruments                   12             386            (164) 
Tax effect                     (12)           (21)           (15) 
Currency translation 
 adjustment generated by the 
 parent company                (4,173)        4,074          (1,976) 
Items not potentially 
 reclassifiable to profit and 
 loss                          (4,173)        4,456          (2,022) 
Currency translation 
 adjustment                    2,523          (1,875)        (21) 
Cash flow hedge                504            617            (1,524) 
Variation of foreign currency 
 basis spread                  -              (7)            56 
Share of other comprehensive 
 income of equity affiliates, 
 net amount                    469            (100)          (1,223) 
Other                          1              (4)            3 
Tax effect                     (157)          (180)          445 
Items potentially 
 reclassifiable to profit and 
 loss                          3,340          (1,549)        (2,264) 
Total other comprehensive 
 income (net amount)           (833)          2,907          (4,286) 
 
Comprehensive income           2,579          3,810          (4,284) 
Group share                    2,542          3,576          (4,171) 
Non-controlling interests      37             234            (113) 
 
 
CONSOLIDATED BALANCE 
SHEET 
TOTAL 
                         March 31, 2021  December 31, 2020  March 31, 2020 
(M$)                     (unaudited)     (unaudited)        (unaudited) 
 
ASSETS 
 
Non-current assets 
Intangible assets, net   33,239          33,528             32,823 
Property, plant and 
 equipment, net          106,859         108,335            113,254 
Equity affiliates: 
 investments and loans   30,727          27,976             26,998 
Other investments        2,062           2,007              1,660 
Non-current financial 
 assets                  3,700           4,781              1,133 
Deferred income taxes    6,619           7,016              6,694 
Other non-current 
 assets                  2,638           2,810              2,537 
Total non-current 
 assets                  185,844         186,453            185,099 
 
Current assets 
Inventories, net         16,192          14,730             11,556 
Accounts receivable, 
 net                     17,532          14,068             18,029 
Other current assets     14,304          13,428             19,429 
Current financial 
 assets                  4,605           4,630              7,016 
Cash and cash 
 equivalents             30,285          31,268             21,634 
Assets classified as 
 held for sale           396             1,555              421 
Total current assets     83,314          79,679             78,085 
Total assets             269,158         266,132            263,184 
 
LIABILITIES & 
SHAREHOLDERS' EQUITY 
 
Shareholders' equity 
Common shares            8,193           8,267              8,123 
Paid-in surplus and 
 retained earnings       112,676         107,078            119,935 
Currency translation 
 adjustment              (11,566)        (10,256)           (14,431) 
Treasury shares          (8)             (1,387)            (1,621) 
Total shareholders' 
 equity - Group share    109,295         103,702            112,006 
Non-controlling 
 interests               2,390           2,383              2,428 
Total shareholders' 
 equity                  111,685         106,085            114,434 
 
Non-current liabilities 
Deferred income taxes    10,387          10,326             10,462 
Employee benefits        3,644           3,917              3,260 
Provisions and other 
 non-current 
 liabilities             20,893          20,925             19,452 
Non-current financial 
 debt                    52,541          60,203             48,896 
Total non-current 
 liabilities             87,465          95,371             82,070 
 
Current liabilities 
Accounts payable         26,959          23,574             22,123 
Other creditors and 
 accrued liabilities     22,066          22,465             25,102 
Current borrowings       20,471          17,099             18,521 
Other current financial 
 liabilities             351             203                604 
Liabilities directly 
 associated with the 
 assets classified as 
 held for sale           161             1,335              330 
Total current 
 liabilities             70,008          64,676             66,680 
Total liabilities & 
 shareholders' equity    269,158         266,132            263,184 
 
 
CONSOLIDATED STATEMENT OF 
CASH FLOW 
TOTAL 
(unaudited) 
                               1(st) quarter  4(th) quarter  1(st) quarter 
(M$)                           2021           2020           2020 
 
CASH FLOW FROM OPERATING 
ACTIVITIES 
 
Consolidated net income        3,412          903            2 
Depreciation, depletion, 
 amortization and impairment   3,473          3,796          3,730 
Non-current liabilities, 
 valuation allowances and 
 deferred taxes                121            (237)          (661) 
(Gains) losses on disposals 
 of assets                     (285)          (260)          (209) 
Undistributed affiliates' 
 equity earnings               (573)          379            (587) 
(Increase) decrease in 
 working capital               (819)          1,342          (884) 
Other changes, net             269            (249)          (92) 
Cash flow from operating 
 activities                    5,598          5,674          1,299 
 
CASH FLOW USED IN INVESTING 
ACTIVITIES 
 
Intangible assets and 
 property, plant and 
 equipment additions           (2,410)        (3,834)        (2,364) 
Acquisitions of subsidiaries, 
 net of cash acquired          -              (778)          (188) 
Investments in equity 
 affiliates and other 
 securities                    (2,126)        (221)          (1,534) 
Increase in non-current loans  (300)          (355)          (295) 
Total expenditures             (4,836)        (5,188)        (4,381) 
Proceeds from disposals of 
 intangible assets and 
 property, plant and 
 equipment                     226            114            44 
Proceeds from disposals of 
 subsidiaries, net of cash 
 sold                          229            124            142 
Proceeds from disposals of 
 non-current investments       63             186            295 
Repayment of non-current 
 loans                         134            288            126 
Total divestments              652            712            607 
Cash flow used in investing 
 activities                    (4,184)        (4,476)        (3,774) 
 
CASH FLOW USED IN FINANCING 
ACTIVITIES 
 
Issuance (repayment) of 
shares: 
- Parent company shareholders  -              -              - 
- Treasury shares              (165)          -              (609) 
Dividends paid: 
- Parent company shareholders  (2,090)        (2,053)        (1,882) 
- Non-controlling interests    (10)           (5)            - 
Net issuance (repayment) of 
 perpetual subordinated 
 notes                         3,248          -              - 
Payments on perpetual 
 subordinated notes            (87)           (62)           (97) 
Other transactions with 
 non-controlling interests     (55)           (59)           (48) 
Net issuance (repayment) of 
 non-current debt              (890)          104            42 
Increase (decrease) in 
 current borrowings            (1,662)        (339)          2,785 
Increase (decrease) in 
 current financial assets and 
 liabilities                   (148)          1,212          (2,995) 
Cash flow from (used in) 
 financing activities          (1,859)        (1,202)        (2,804) 
Net increase (decrease) in 
 cash and cash equivalents     (445)          (4)            (5,279) 
Effect of exchange rates       (538)          679            (439) 
Cash and cash equivalents at 
 the beginning of the period   31,268         30,593         27,352 
Cash and cash equivalents at 
 the end of the period         30,285         31,268         21,634 
 
 
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, 
 2020             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 
Net income from 
 April 1 to 
 December 31, 
 2020             -              -       (7,276)   -            -             -        (7,276)        (62)             (7,338) 
Other 
 comprehensive 
 income           -              -       956       4,179        -             -        5,135          381              5,516 
Comprehensive 
 Income           -              -       (6,320)   4,179        -             -        (2,141)        319              (1,822) 
Dividend          -              -       (7,899)   -            -             -        (7,899)        (234)            (8,133) 
Issuance of 
 common shares    51,242,950     144     1,470     -            -             -        1,614          -                1,614 
Purchase of 
 treasury 
 shares           -              -       -         -            -             (2)      (2)            -                (2) 
Sale of treasury 
 shares(a)        -              -       (236)     -            4,314,545     236      -              -                - 
Share-based 
 payments         -              -       157       -            -             -        157            -                157 
Share 
cancellation      -              -       -         -            -             -        -              -                - 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes            -              -       331       -            -             -        331            -                331 
Payments on 
 perpetual 
 subordinated 
 notes            -              -       (236)     -            -             -        (236)          -                (236) 
Other operations 
 with 
 non-controlling 
 interests        -              -       (17)      (4)          -             -        (21)           (113)            (134) 
Other items       -              -       (107)     -            -             -        (107)          (17)             (124) 
As of December 
 31, 2020         2,653,124,025  8,267   107,078   (10,256)     (24,392,703)  (1,387)  103,702        2,383            106,085 
Net income of 
 the first 
 quarter 2021     -              -       3,344     -            -             -        3,344          68               3,412 
Other 
 comprehensive 
 income           -              -       502       (1,304)      -             -        (802)          (31)             (833) 
Comprehensive 
 Income           -              -       3,846     (1,304)      -             -        2,542          37               2,579 
Dividend          -              -       -         -            -             -        -              (10)             (10) 
Issuance of 
common shares     -              -       -         -            -             -        -              -                - 
Purchase of 
 treasury 
 shares           -              -       -         -            (3,636,351)   (165)    (165)          -                (165) 
Sale of treasury 
 shares(a)        -              -       (216)     -            4,569,755     216      -              -                - 
Share-based 
 payments         -              -       14        -            -             -        14             -                14 
Share 
 cancellation     (23,284,409)   (74)    (1,254)   -            23,284,409    1,328    -              -                - 
Net issuance 
 (repayment) of 
 perpetual 
 subordinated 
 notes            -              -       3,254     -            -             -        3,254          -                3,254 
Payments on 
 perpetual 
 subordinated 
 notes            -              -       (90)      -            -             -        (90)           -                (90) 
Other operations 
 with 
 non-controlling 
 interests        -              -       27        (6)          -             -        21             (21)             - 
Other items       -              -       17        -            -             -        17             1                18 
As of March 31, 
 2021             2,629,839,616  8,193   112,676   (11,566)     (174,890)     (8)      109,295        2,390            111,685 
(a) Treasury shares related to the restricted stock grants. 
 
 
INFORMATION BY BUSINESS SEGMENT 
TOTAL 
(unaudited) 
 
 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2021                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,514        5,502        19,201     17,513     7          -             43,737 
Intersegment 
 sales             6,578        811          5,521      78         29         (13,017)      - 
Excise taxes       -            -            (405)      (4,699)    -          -             (5,104) 
Revenues from 
 sales             8,092        6,313        24,317     12,892     36         (13,017)      38,633 
Operating 
 expenses          (3,068)      (5,218)      (22,933)   (12,076)   (167)      13,017        (30,445) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,183)      (471)        (391)      (255)      (25)       -             (3,325) 
Operating income   2,841        624          993        561        (156)      -             4,863 
Net income (loss) 
 from equity 
 affiliates and 
 other items       270          263          88         (34)       (28)       -             559 
Tax on net 
 operating 
 income            (1,180)      (101)        (280)      (176)      38         -             (1,699) 
Net operating 
 income            1,931        786          801        351        (146)      -             3,723 
Net cost of net 
 debt                                                                                       (311) 
Non-controlling 
 interests                                                                                  (68) 
Net income - 
 group share                                                                                3,344 
 
                                Integrated 
1(st) quarter      Exploration  Gas,         Refining   Marketing 
2021                &           Renewables   &           & 
(adjustments)(a)    Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    -            (35)         -          -          -          -             (35) 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             -            (35)         -          -          -          -             (35) 
Operating 
 expenses          -            (8)          745        142        -          -             879 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         -            (145)        -          -          -          -             (145) 
Operating income 
 (b)               -            (188)        745        142        -          -             699 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (46)         (49)         6          (35)       (40)       -             (164) 
Tax on net 
 operating 
 income            2            38           (193)      (40)       2          -             (191) 
Net operating 
 income (b)        (44)         (199)        558        67         (38)       -             344 
Net cost of net 
 debt                                                                                       6 
Non-controlling 
 interests                                                                                  (9) 
Net income - 
 group share                                                                                341 
 
(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            -            -            746        137        - 
- On net 
 operating 
 income            -            -            606        98         - 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2021 (adjusted)     Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,514        5,537        19,201     17,513     7          -             43,772 
Intersegment 
 sales             6,578        811          5,521      78         29         (13,017)      - 
Excise taxes       -            -            (405)      (4,699)    -          -             (5,104) 
Revenues from 
 sales             8,092        6,348        24,317     12,892     36         (13,017)      38,668 
Operating 
 expenses          (3,068)      (5,210)      (23,678)   (12,218)   (167)      13,017        (31,324) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,183)      (326)        (391)      (255)      (25)       -             (3,180) 
Adjusted 
 operating 
 income            2,841        812          248        419        (156)      -             4,164 
Net income (loss) 
 from equity 
 affiliates and 
 other items       316          312          82         1          12         -             723 
Tax on net 
 operating 
 income            (1,182)      (139)        (87)       (136)      36         -             (1,508) 
Adjusted net 
 operating 
 income            1,975        985          243        284        (108)      -             3,379 
Net cost of net 
 debt                                                                                       (317) 
Non-controlling 
 interests                                                                                  (59) 
Adjusted net 
 income - group 
 share                                                                                      3,003 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
1(st) quarter       &           Renewables   &           & 
2021                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      1,365        3,020        287        138        26                       4,836 
Total divestments  311          142          116        71         12                       652 
Cash flow from 
 operating 
 activities        3,736        780          996        665        (579)                    5,598 
 
 
INFORMATION BY BUSINESS SEGMENT 
TOTAL 
(unaudited) 
 
 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2020                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,257        5,231        15,052     16,393     10         -             37,943 
Intersegment 
 sales             5,574        628          4,160      98         140        (10,600)      - 
Excise taxes       -            -            (628)      (4,967)    -          -             (5,595) 
Revenues from 
 sales             6,831        5,859        18,584     11,524     150        (10,600)      32,348 
Operating 
 expenses          (3,489)      (5,569)      (17,989)   (10,776)   (286)      10,600        (27,509) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,500)      (354)        (412)      (241)      (36)       -             (3,543) 
Operating income   842          (64)         183        507        (172)      -             1,296 
Net income (loss) 
 from equity 
 affiliates and 
 other items       6            149          (54)       (9)        112        -             204 
Tax on net 
 operating 
 income            91           7            (93)       (169)      (72)       -             (236) 
Net operating 
 income            939          92           36         329        (132)      -             1,264 
Net cost of net 
 debt                                                                                       (361) 
Non-controlling 
 interests                                                                                  (12) 
Net income - 
 group share                                                                                891 
 
                                Integrated 
4(th) quarter      Exploration  Gas,         Refining   Marketing 
2020                &           Renewables   &           & 
(adjustments)(a)    Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    -            3            -          -          -          -             3 
Intersegment 
sales              -            -            -          -          -          -             - 
Excise taxes       -            -            -          -          -          -             - 
Revenues from 
 sales             -            3            -          -          -          -             3 
Operating 
 expenses          (49)         (56)         133        17         31         -             76 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (355)        -            (16)       -          -          -             (371) 
Operating income 
 (b)               (404)        (53)         117        17         31         -             (292) 
Net income (loss) 
 from equity 
 affiliates and 
 other items       (25)         (26)         (191)      (13)       107        -             (148) 
Tax on net 
 operating 
 income            300          (83)         (60)       (7)        (157)      -             (7) 
Net operating 
 income (b)        (129)        (162)        (134)      (3)        (19)       -             (447) 
Net cost of net 
 debt                                                                                       10 
Non-controlling 
 interests                                                                                  24 
Net income - 
 group share                                                                                (413) 
 
(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            -            -            265        43         - 
- On net 
 operating 
 income            -            -            192        32         - 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2020 (adjusted)     Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Non-Group sales    1,257        5,228        15,052     16,393     10         -             37,940 
Intersegment 
 sales             5,574        628          4,160      98         140        (10,600)      - 
Excise taxes       -            -            (628)      (4,967)    -          -             (5,595) 
Revenues from 
 sales             6,831        5,856        18,584     11,524     150        (10,600)      32,345 
Operating 
 expenses          (3,440)      (5,513)      (18,122)   (10,793)   (317)      10,600        (27,585) 
Depreciation, 
 depletion and 
 impairment of 
 tangible assets 
 and mineral 
 interests         (2,145)      (354)        (396)      (241)      (36)       -             (3,172) 
Adjusted 
 operating 
 income            1,246        (11)         66         490        (203)      -             1,588 
Net income (loss) 
 from equity 
 affiliates and 
 other items       31           175          137        4          5          -             352 
Tax on net 
 operating 
 income            (209)        90           (33)       (162)      85         -             (229) 
Adjusted net 
 operating 
 income            1,068        254          170        332        (113)      -             1,711 
Net cost of net 
 debt                                                                                       (371) 
Non-controlling 
 interests                                                                                  (36) 
Adjusted net 
 income - group 
 share                                                                                      1,304 
 
                                Integrated 
                   Exploration  Gas,         Refining   Marketing 
4(th) quarter       &           Renewables   &           & 
2020                Production  & Power      Chemicals   Services  Corporate  Intercompany  Total 
(M$) 
Total 
 expenditures      2,226        1,895        475        533        59                       5,188 
Total divestments  132          339          31         61         149                      712 
Cash flow from 
 operating 
 activities        3,046        575          1,514      648        (109)                    5,674 
 
 
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 
 
 
Reconciliation of the information by business segment with Consolidated 
Financial Statements 
TOTAL 
(unaudited) 
 
 
                                                              Consolidated 
1(st) quarter 2021                                            statement 
(M$)                                Adjusted  Adjustments(a)  of income 
Sales                               43,772    (35)            43,737 
Excise taxes                        (5,104)   -               (5,104) 
Revenues from sales                 38,668    (35)            38,633 
 
Purchases net of inventory 
 variation                          (24,289)  891             (23,398) 
Other operating expenses            (6,868)   (12)            (6,880) 
Exploration costs                   (167)     -               (167) 
Depreciation, depletion and 
 impairment of tangible assets and 
 mineral interests                  (3,180)   (145)           (3,325) 
Other income                        416       (58)            358 
Other expense                       (192)     (467)           (659) 
 
Financial interest on debt          (466)     -               (466) 
Financial income and expense from 
 cash & cash equivalents            87        8               95 
Cost of net debt                    (379)     8               (371) 
 
Other financial income              109       -               109 
Other financial expense             (130)     -               (130) 
 
Net income (loss) from equity 
 affiliates                         520       361             881 
 
Income taxes                        (1,446)   (193)           (1,639) 
Consolidated net income             3,062     350             3,412 
Group share                         3,003     341             3,344 
Non-controlling interests           59        9               68 
 
(a) Adjustments include special items, inventory valuation effect and the 
effect of changes in fair value. 
 
                                                              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. 
 

(1) Definition page 3.

(2) Excluding leases.

(3) Certain transitions referred to in the highlights are subject to approval by authorities or to conditions as per the agreements.

(4) 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 15.

(5) Group effective tax rate = (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).

(6) 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

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

(8) Net acquisitions = acquisitions -- assets sales -- other transactions with non-controlling interests (see page 15).

(9) Net investments = organic investments + net acquisitions (see page 15).

(10) Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP's contracts and including capital gain from renewable projects sale (effective first quarter 2020). The inventory valuation effect is explained on page 18. The reconciliation table for different cash flow figures is on page 16.

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

(12) Adjustment items shown on page 18.

(13) Details shown on page 15 and in the appendix to the financial statements.

 

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

 

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April 29, 2021 06:10 ET (10:10 GMT)

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