Total resists the drop in oil prices and reinforces its
action plan to face the crisis
Regulatory News:
TOTAL S.A. (Paris:FP) (LSE:TTA) (NYSE:TOT):
1Q20 1Q19 Changevs 1Q19
Oil price - Brent
($/b)
50.1
63.1
-21%
European gas price - NBP ($/Mbtu)
3.1
6.3
-51%
Adjusted net income (Group share)1 - in billions of
dollars (B$)
1.78
2.76
-35%
- in dollars per share
0.66
1.02
-36%
DACF1 (B$)
4.5
6.5
-31%
Cash Flow from operations (B$)
1.3
3.6
-64%
Net income (Group share) of 34 M$ in 1Q20,
considering the stock effect of 1.4 B$ Net-debt-to-capital
ratio of 21% (excl. leases impact) at March 31, 2020
Hydrocarbon production of 3,086 kboe/d in 1Q20, an increase of
5% compared to 1Q19 First 2020 interim dividend set at 0.66
€/share
Total’s Board of Directors met on May 4, 2020, to approve the
Group’s first quarter 2020 financial statements. On this occasion,
Chairman and CEO Patrick Pouyanné said:
“Total’s Board of Directors would like to begin by thanking all
those mobilized to face Covid-19, particularly the Group’s
employees, who, while complying with health regulations, are
maintaining the production, processing and distribution of products
that consumers need.
The Group is facing exceptional circumstances: the Covid-19
health crisis, which is affecting the world economy and creating
major uncertainties, and the oil market crisis, with the sharp drop
in oil prices since March.
In an environment where prices fell by more than 30% on average
during the first quarter, the Group’s cash flow decreased by 31%
year-on-year to $4.5 billion, and adjusted net income was down 35%
this quarter to $1.8 billion. Return on equity stood at 9.8% and
Total maintained its financial strength with gearing at 21%.
In response to these crises, the Group announced an immediate
action plan on March 23. The Group now anticipates 2020 production
between 2.95 and 3 Mboe/d, a reduction of at least 5% from 2020
forecasts, reflecting the voluntary curtailment measures in Canada,
the exceptional quotas announced by OPEC+, lower local demand for
gas and the situation in Libya. In the Downstream, plant
utilization rates and sales have been on average 50% below normal
since mid-March, with uncertainty about the timing of a return to
normal.
In this context, the action plan should be strengthened:
- Net investments further reduced to less than $14 billion for
the year, a decrease of nearly 25% compared to the $18 billion
announced in February 2020. Investments in low-carbon electricity
will be maintained between $1.5 and $2 billion.
- Operating cost reduction increased to more than $1 billion,
plus savings of more than $1 billion on energy costs.
- The Group strengthened its liquidity position in April by
issuing $3 billion in bonds and drawing $6 billion in credit lines.
In addition, in a 30 $/b environment, the Group anticipates an
improvement in its working capital position of $1 billion by
year-end 2020 compared to year-end 2019.
In this specific context, considering the solid fundamentals of
Total – low breakeven and gearing – the Board of Directors decided
to set the 2020 first interim dividend at €0.66 per share, stable
compared to the 2019 first interim dividend, and to propose at the
Annual Shareholders’ Meeting to put in place the option to receive
the final 2019 dividend in shares, given that the Group bought back
$0.55 billion of shares at the beginning of the year when prices
were around $60/b.
While responsibly taking on the short-term challenges, the Group
continues to implement its medium and long-term strategy. From this
perspective, the announcement of a new climate ambition for the
Group that aims at carbon neutrality by 2050 in Europe and in the
world in step with society, is in line with Total’s reinforced
strategy to become a broad-energy company. Concrete steps were
taken in the first quarter to implement this strategy by accessing
nearly 6 GW of renewable capacity, including solar (India, Qatar,
Spain, France) and wind (France, UK). The countercyclical
acquisition of Tullow’s interests in Uganda is also part of the
strategy to access low-cost barrels of oil.”
Taking into account the difficult environment facing the Group
and the savings that all Total’s teams have to make, Chairman and
CEO Patrick Pouyanné proposed to reduce his fixed salary by 25% for
the remainder of 2020, including the month of May. Considering the
anticipated evolution of the economic criteria for the variable
portion, Patrick Pouyanné’s total remuneration will decrease by
more than 30% in 2020 compared to 2019. The members of the board
also decided to give up 25% of their attendance fees starting from
the Annual Shareholders’ Meeting. The members of the Executive
Committee wished to join in these measures by reducing their fixed
salaries by 10% for the remainder of the 2020 year.
First quarter 2020 results
Pressured by the collapse of
demand linked to Covid-19, oil prices fell sharply during March to
an average of 50 $/b in the first quarter, down 21% year-on-year.
Gas prices in Europe also fell sharply, down more than 50%
year-on-year. In an environment of prices falling by more than 30%
on average compared to the first quarter 2019, the Group’s cash
flow decreased by 31% to $4.5 billion. Adjusted net income
decreased by 35% to $1.8 billion this quarter and return on equity
stood at 9.8% with gearing at 21%.
Leading the Group’s low-carbon ambition, the iGRP segment
generated $0.9 billion of cash flow, an increase of 40%
year-on-year thanks to a growth in LNG sales of nearly 30% and to
the resilience of the sales price of its LNG production. In
low-carbon electricity, the Group is accelerating growth by
entering into renewable projects with gross installed capacity of
more than 6 GW, particularly in India, Qatar and Spain.
In the first quarter, Upstream production grew by 5%
year-on-year, driven by ramp-ups on projects, such as Culzean in
the UK, Johan Sverdrup in Norway and Yamal in Russia. Impacted by
lower prices, Exploration & Production cash flow was $2.6
billion, down 39% year-on-year. Notably Exploration &
Production made two discoveries in Surinam.
Downstream cash flow was $1.1 billion, down 37% year-on-year. In
Europe, refining margins decreased by 20% and throughput volumes
were down about 30% due to lower demand. Petrochemicals were
resilient, benefiting from the fall in raw material prices. Retail
network sales were down 10% year-on-year due to the impact of the
Covid-19 crisis.
Highlights2
- Asset sale program ongoing with disposal of downstream gas in
France, Exploration & Production in Brunei, and Marketing in
Sierra Leone and Liberia
- Counter-cyclical acquisition of Tullow’s interest in the Lake
Albert project in Uganda
- Acquisition of 50% of 2 GW gross capacity portfolio of solar
power plants in India as part of a 50/50 JV with the Adani
Group
- Agreement to build a large-scale solar power plant (800 MWp) in
Qatar
- Entry into solar market in Spain with the acquisition of 2 GW
portfolio of projects
- Acquisition in France of Global Wind Power France, which holds
a 1 GW gross capacity portfolio of projects
- Entry into first floating offshore wind project in the UK
- Launched in Dunkirk the largest battery power storage project
(25 MW) for France’s power grid
- Launched a pilot plant in Europe to start producing EV
batteries from 2023 at the highest technological level in terms of
energy performance
- In Exploration, made two significant oil discoveries on Block
58 in Surinam plus a new condensate gas discovery in the UK North
Sea
Key figures3
In millions of dollars, except effective tax rate,earnings per
share and number of shares 1Q20 4Q19 1Q19 1Q20vs1Q19
Adjusted net operating income from business segments
2,300
3,879
3,413
-33%
Exploration & Production
703
2,031
1,722
-59%
Integrated Gas, Renewables & Power
913
794
592
+54%
Refining & Chemicals
382
580
756
-49%
Marketing & Services
302
474
343
-12%
Contribution of equity affiliates to adjusted net income
658
668
614
+7%
Group effective tax rate4
30.0%
31.8%
40.5%
Adjusted net income (Group share)
1,781
3,165
2,759
-35%
Adjusted fully-diluted earnings per share (dollars)5
0.66
1.19
1.02
-36%
Adjusted fully-diluted earnings per share (euros)*
0.60
1.07
0.90
-34%
Fully-diluted weighted-average shares (millions)
2,601
2,607
2,620
-1%
Net income (Group share)
34
2,600
3,111
-99%
Organic investments6
2,523
4,291
2,784
-9%
Net acquisitions7
1,102
(80)
306
x3,6 Net investments8
3,625
4,211
3,090
+17%
Operating cash flowbefore working capital changes9
4,016
6,839
6,033
-33%
Operating cash flow before working capital changes w/o financial
charges (DACF)10
4,528
7,372
6,536
-31%
Cash flow from operations
1,299
6,599
3,629
-64%
From 2019, data take into account the impact of the new rule
IFRS16 “Leases”, effective January 1, 2019. * Average €-$ exchange
rate: 1.1027 for the first quarter of 2020.
Key figures of environment and Group production
> Environment* –
liquids and gas price realizations, refining margins
1Q20 4Q19 1Q19 1Q20vs1Q19 Brent ($/b)
50.1
63.1
63.1
-21%
Henry Hub ($/Mbtu)
1.9
2.4
2.9
-35%
NBP ($/Mbtu)
3.1
5.1
6.3
-51%
JKM ($/Mbtu)
3.6
5.8
6.6
-45%
Average price of liquids ($/b)Consolidated subsidiaries
44.4
59.1
58.7
-24%
Average price of gas ($/Mbtu)Consolidated subsidiaries
3.35
3.76
4.51
-26%
Average price of LNG ($/Mbtu)Consolidated subsidiaries and equity
affiliates
6.32
6.52
7.20
-12%
Variable cost margin - Refining Europe, VCM ($/t)
26.3
30.2
33.0
-20%
* The indicators are shown on page 18.
>
Production*
1Q20 4Q19 1Q19 1Q20vs1Q19 Hydrocarbon production (kboe/d)
3,086
3,113
2,946
+5%
Oil (including bitumen) (kb/d)
1,448
1,452
1,425
+2%
Gas (including condensates and associated NGL) (kboe/d)
1,638
1,661
1,521
+8%
Hydrocarbon production (kboe/d)
3,086
3,113
2,946
+5%
Liquids (kb/d)
1,699
1,714
1,629
+4%
Gas (Mcf/d)**
7,560
7,563
7,167
+5%
* Group production = EP production + iGRP production. ** 1Q19
and 4Q19 data restated
Hydrocarbon production was 3,086 thousand barrels of oil
equivalent per day (kboe/d) in the first quarter 2020, an increase
of 5% year-on-year, due to:
- +8% related to the start-up and ramp-up of new projects,
notably Culzean in the United Kingdom, Egina in Nigeria, Johan
Sverdrup in Norway and Ichthys in Australia.
- +2% due to lower prices and to portfolio effects, notably the
increased interest in the DUC field in Denmark.
- -3% due to the natural decline of fields.
- -2% due notably to partial production halt in Libya and to the
Tyra redevelopment in Denmark.
Analysis of business
segments
Integrated Gas, Renewables & Power (iGRP)
> Liquefied
natural gas (LNG) production and sales and low carbon
electricity
Hydrocarbon production for LNG 1Q20 4Q19 1Q19
1Q20vs1Q19 iGRP (kboe/d)
552
624
518
+7%
Liquids (kb/d)
73
74
66
+10%
Gas (Mcf/d)*
2,611
2,939
2,460
+6%
Liquefied Natural Gas in Mt 1Q20 4Q19 1Q19
1Q20vs1Q19 Overall LNG sales
9.8
10.6
7.7
+27%
incl. Sales from equity production**
4.7
4.2
3.8
+23%
incl. Sales by Total from equity production and third party
purchases
7.8
9.6
6.0
+30%
* 1Q19 and 4Q19 data restated. ** The Group's equity production
may be sold by Total or by the joint ventures.
Low carbon electricity 1Q20 4Q19 1Q19 1Q20vs1Q19
Gross renewables installed capacity (GW)*
3.0
3.0
1.8
+68%
Net low carbon power production (TWh)**
2.9
3.5
2.7
+10%
Clients gas and power - BtB and BtC (Million)*
5.9
5.8
5.4
+9%
Sales gas and power - BtB and BtC (TWh)
47.8
34.9
47.9
-
* Capacity at end of period. ** Solar, wind, biogas,
hydroelectric and CCGT plants.
Production increased by 7% year-on-year essentially linked to
the ramp-up of Ichthys in Australia and Yamal LNG in Russia.
Total LNG sales increased by 27% year-on-year thanks to the
ramp-up of Yamal LNG and Ichthys plus the start-up of the first two
Cameron LNG trains in the US.
Gross installed renewable power generation capacity increased by
68% year-on-year to 3 GW. The Group continues to implement its
integration strategy for the gas and electricity chain in Europe
and saw the number of customers for gas and electricity grow to 5.9
million, up 9% year-on-year.
> Results
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Adjusted net operating income*
913
794
592
+54%
including income from equity affiliates
248
353
255
-3%
Organic investments
646
684
493
+31%
Net acquisitions
1,137
(13)
400
x2,8 Net investments
1,783
671
893
+100%
Operating cash flow before working capital changes **
852
1,402
610
+40%
Cash flow from operations **
(489)
1,527
892
ns
* Detail of adjustment items shown in the business segment
information annex to financial statements. ** Excluding financial
charges, except those related to leases.
Adjusted net operating income for the iGRP segment was $913
million in the first quarter of 2020, up 54% year-on-year and
operating cash flow before working capital changes was up 40% in
the same period to $852 million. The strong results compared to the
first quarter of 2019 are due to the strong growth of LNG sales
combined with resilient sales prices for the LNG portfolio,
increasing use of regasification capacity in Europe and the strong
performance of trading activities. The contribution of renewable
activities also increased in the quarter.
Exploration & Production
>
Production
Hydrocarbon production 1Q20 4Q19 1Q19 1Q20vs1Q19 EP
(kboe/d)
2,534
2,489
2,428
+4%
Liquids (kb/d)
1,626
1,640
1,563
+4%
Gas (Mcf/d)
4,949
4,624
4,707
+5%
> Results
In millions of dollars, except effective tax rate
1Q20 4Q19 1Q19 1Q20vs1Q19 Adjusted net operating income*
703
2,031
1,722
-59%
including income from equity affiliates
390
247
213
+83%
Effective tax rate**
59.6%
38.0%
48.6%
Organic investments
1,572
2,617
1,958
-20%
Net acquisitions
(6)
(224)
38
ns Net investments
1,566
2,393
1,996
-22%
Operating cash flow before working capital changes ***
2,576
4,451
4,246
-39%
Cash flow from operations ***
3,923
4,206
3,936
-
* Details on adjustment items are shown in the business segment
information annex to financial statements. ** Tax on adjusted net
operating income / (adjusted net operating income - income from
equity affiliates - dividends received from investments -
impairment of goodwill + tax on adjusted net operating income). ***
Excluding financial charges, except those related to leases.
Exploration & Production adjusted net operating income was
$703 million in the first quarter, down 59% year-on-year due to the
sharp decrease in oil and gas prices at the end of the quarter.
Operating cash flow before working capital changes was $2.6
billion in the first quarter, down 39% year-on-year for the same
reasons, partially offset by the ramp-up of strong cash-generating
projects.
Downstream (Refining & Chemicals and Marketing &
Services)
> Results
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Adjusted net operating income*
684
1,054
1,099
-38%
Organic investments
277
949
319
-13%
Net acquisitions
(30)
159
(131)
ns Net investments
247
1,108
188
+31%
Operating cash flow before working capital changes **
1,064
1,505
1,686
-37%
Cash flow from operations **
(1,582)
1,420
(306)
ns
* Detail of adjustment items shown in the business segment
information annex to financial statements. ** Excluding financial
charges, except those related to leases.
Refining & Chemicals
> Refinery and
petrochemicals throughput and utilization rates
Refinery throughput and utilization rate* 1Q20 4Q19
1Q19 1Q20vs1Q19 Total refinery throughput (kb/d)
1,444
1,509
1,862
-22%
France
255
282
592
-57%
Rest of Europe
756
756
823
-8%
Rest of world
433
471
447
-3%
Utlization rate based on crude only**
69%
71%
89%
* Includes refineries in Africa reported in the Marketing &
Services segment. ** Based on distillation capacity at the
beginning of the year.
Petrochemicals production and utilization rate 1Q20
4Q19 1Q19 1Q20vs1Q19 Monomers* (kt)
1,386
1,431
1,393
-
Polymers (kt)
1,202
1,169
1,297
-7%
Vapocracker utilization rate**
83%
92%
87%
* Olefins. ** Based on olefins production from steamcrackers and
their treatment capacity at the start of the year.
Refinery throughput volumes decreased by 22% in the first
quarter of 2020 year-on-year, mainly as a result of planned
shutdowns at the Feyzin and Grandpuits refineries in France, Satorp
in Saudi Arabia as well as the shutdown of the distillation unit at
the Normandy platform following an incident at the end of 2019.
Monomer production was stable year-on-year, while polymer
production decreased by 7% due mainly to the closure of the
polystyrene site at El Prat in Spain and a shutdown for planned
maintenance on the Qatofin platform in Qatar.
> Results
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Adjusted net operating income*
382
580
756
-49%
Organic investments
168
479
240
-30%
Net acquisitions
(36)
118
(124)
ns Net investments
132
597
116
+14%
Operating cash flow before working capital changes **
674
789
1,104
-39%
Cash flow from operations **
(1,183)
1,142
(538)
ns
* Detail of adjustment items shown in the business segment
information annex to financial statements. ** Excluding financial
charges, except those related to leases.
Adjusted net operating income for Refining & Chemicals was
$382 million, down 49% year-on-year. The decrease was mainly due to
a severely degraded global refining environment in the first
quarter, low plant utilization and low demand at the end of the
quarter. The impact of the shutdown of the Normandy distillation
unit is estimated at $100 million for the quarter and $200 million
over the year.
Operating cash flow before working capital changes was $674
million in the first quarter of 2020, down 39% year-on-year for the
same reasons. The difference between this cash flow and the cash
flow from operations is mainly due to the decrease in the value of
inventories linked to the decline in the price of oil.
Marketing & Services
> Petroleum
product sales
Sales in kb/d* 1Q20 4Q19 1Q19 1Q20vs1Q19 Total
Marketing & Services sales
1,656
1,835
1,836
-10%
Europe
906
1,033
1,012
-11%
Rest of world
750
801
824
-9%
* Excludes trading and bulk refining sales
Sales of petroleum products decreased by 10% in the first
quarter 2020, notably due to the impact of Covid-19 on demand,
mainly in China and in France.
> Results
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Adjusted net operating income*
302
474
343
-12%
Organic investments
109
471
80
+36%
Net acquisitions
6
40
(8)
ns Net investments
115
511
72
+60%
Operating cash flow before working capital changes **
390
716
582
-33%
Cash flow from operations **
(399)
278
232
ns
* Detail of adjustment items shown in the business segment
information annex to financial statements. ** Excluding financial
charges, except those related to leases
Adjusted net operating income was $302 million in the first
quarter 2020, a decrease of 12%, in line with the decrease in
volumes.
Operating cash flow before working capital changes was $390
million in the quarter, down 33% year-on-year.
Group results
> Adjusted net
operating income from business segments
Adjusted net operating income from the business segments was
$2,300 million in the first quarter 2020, a decrease of 33%
year-on-year, due to lower Brent prices, natural gas prices and
refining margins as well as the impact of the Covid-19 crisis on
demand.
> Adjusted net
income (Group share)
Adjusted net income (Group share) was $1,781 million in the
first quarter 2020, a decrease of 35% year-on-year, due to lower
Brent prices, natural gas prices and refining margins as well as
the impact of the Covid-19 crisis on demand.
Adjusted net income excludes the after-tax inventory effect,
special items and the impact of effects of changes in fair
value11.
Total net income adjustments12 were -$1,747 million in the first
quarter 2020, including -$1,414 million for the after-tax inventory
effect linked to lower oil prices.
The effective tax rate for the Group was 30.0% in the first
quarter 2020, compared to 31.8% in the previous quarter.
> Adjusted
fully-diluted earnings per share
Adjusted earnings per share was $0.66 in the first quarter 2020,
a decrease of 36%, calculated on the basis of a weighted average of
2,601 million fully-diluted shares, compared to $1.02 in the first
quarter 2019.
In the framework of the shareholder return policy announced in
February 2018, and the $5 billion buyback program for 2018-2020,
the Group bought back shares at the start of the first quarter,
while oil prices were around 60 $/b. 12.2 million shares were
repurchased in the first quarter 2020 for $0.55 billion. In the
context of the sharp decrease in oil prices, the buyback program
was suspended at the beginning of March.
The number of fully-diluted shares was 2,596 million on March
31, 2020.
> Acquisitions -
asset sales
Acquisitions were $1.6 billion in the first quarter 2020,
comprised notably of finalizing the acquisition of 37.4% of Adani
Gas Limited in India and the payment for a second tranche linked to
taking the 10% stake in the Arctic LNG 2 project in Russia.
Asset sales were $542 million in the first quarter 2020,
comprised notably of the sales of Block CA1 in Brunei, the Group’s
interest in the Fos Cavaou regasification terminal in France, and
50% of a portfolio of solar and wind assets from Total Quadran in
France.
> Net cash
flow
Net cash flow13 for the Group was $391 million in the first
quarter 2020 in the context of lower prices.
>
Profitability
The return on equity was 9.8% for the twelve months ended March
31, 2020.
In millions of dollars April 1, 2019 January 1, 2019 April
1, 2018 March 31, 2020 December 31, 2019 March 31, 2019 Adjusted
net income
11 079
12 090
13 810
Average adjusted shareholders' equity
113 607
116 766
118 094
Return on equity (ROE)
9.8%
10.4%
11.7%
The return on average capital employed was 8.7% for the twelve
months ended March 31, 2020.
In millions of dollars April 1, 2019 January 1, 2019 April
1, 2018 March 31, 2020 December 31, 2019 March 31, 2019 Adjusted
net operating income
13 032
14 073
15 697
Average capital employed
150 418
143 674
146 210
ROACE
8.7%
9.8%
10.7%
Total S.A. accounts
Net income for Total S.A., the parent company, was €1,718
million in the first quarter 2020 compared to €1,391 million a year
ago.
2020 Sensitivities*
Change Estimated impact on adjustednet operating
income Estimated impact on cash flow from operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids
price** +/- 10 $/b +/- 2.9 B$ +/- 3.3 B$
European gas price
- NBP ($/Mbtu) +/- 1 $/Mbtu +/- 0.35 B$ +/- 0.35 B$
Variable
cost margin, European refining (VCM) +/- 10 $/t +/- 0.5 B$ +/-
0.6 B$
* Sensitivities are revised once per year upon publication of
the previous year’s fourth quarter results. Sensitivities are
estimates based on assumptions about the Group’s portfolio in 2020.
Actual results could vary significantly from estimates based on the
application of these sensitivities. The impact of the $-€
sensitivity on adjusted net operating income is essentially
attributable to Refining & Chemicals. Please find the
indicators detailed page 18. ** In a 60 $/b Brent environment.
Summary and outlook
Since early March, the strong contraction in demand caused by
the Covid-19 crisis has been exacerbated by sustained production,
following the OPEC/non-OPEC meeting held on March 6. Despite the
OPEC+ decision for exceptional production cuts reached during the
April 9-12, 2020 meetings, demand remains well below supply,
leading to overproduction and strong inventory builds. The
anticipated gradual increase in demand linked to the end of the
Covid-19 crisis may not bring a rapid resolution of the oil crisis
given the time required to return inventories to normal levels.
Total faces this period of economic and oil crisis with a low
organic breakeven and a solid balance sheet. The Group reacted to
this new environment with an action plan, which has the objectives
of preserving the value of its assets, maximizing the efficiency of
its expenditures and positioning the Group in the best conditions
to emerge strengthened from this period. All employees are
mobilized in all the segments of the Group.
The Group has therefore decided to reduce net investments by 25%
to $14 billion this year.
Given the less favorable context for Upstream asset sales, the
$5 billion program for 2019-20 is maintained but refocused on
infrastructure and real estate assets. Acquisitions will be
adjusted in light of asset sales finalized within the framework of
the $14 billion net investment.
The 2020 cost savings program has been increased to at least $1
billion, in addition to saving on energy costs by more than $1
billion, notably in Refining & Chemicals.
In Upstream, the Group now anticipates 2020 production of
between 2.95 and 3 Mboe/d, at least a 5% reduction compared to the
previous 2020 forecasts, taking into account the voluntary
reductions in Canada, the exceptional quotas announced by OPEC+,
lower local demand for gas and the situation in Libya.
Confirming its strategy to grow in the integrated gas and
low-carbon electricity chain, the Group maintains its planned
investment level of $1.5 to $2 billion a year in low-carbon
electricity and continues to grow in LNG with the anticipated
start-up of Cameron LNG Train 3. Taking into consideration the
lower demand due to the global economic slowdown, Total anticipates
deferments in LNG uplifts during the second and third quarters of
the year. Furthermore, the decrease in oil prices will negatively
impact the LNG long-term contract prices from the second half.
In the Downstream, refining margins benefit from the low crude
oil price but the significant demand decrease in Europe will weigh
on refinery utilization rates in the coming months. The Group
anticipates an average refinery global utilization rate between
70-75%, compared to 84% in 2019. Petrochemical volumes are not
affected by the crisis and benefit from the drop in raw material
prices thanks to the flexibility of steam-crackers that are able to
adapt feedstocks to market conditions. The Group anticipates that
Marketing & Services sales will return to near-normal levels
once re-opening measures become widespread.
The new measures taken will allow the organic cash breakeven to
remain below $25/b in 2020, thus confirming Total’s resilience.
The Group’s priority is to generate a level of cash flow that
allows continued investing in profitable projects, to preserve an
attractive return to shareholders and to maintain the strength of
its balance sheet. The strategy successfully deployed during the
2015 crisis around the four priorities of HSE, operational
excellence, cost reduction and cash flow mobilizes all the Group’s
teams.
* * * * *
To listen to the presentation by CEO Patrick Pouyanné and CFO
Jean-Pierre Sbraire today at 14:30 (London time) please log on to
total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167
in the United States (code: 5778274). To listen to the replay,
please consult the website or call +44 (0) 333 300 9785 in Europe
or +1 (917) 677 7532 in the United States (code: 5778274).
* * * * *
Operating information by segment
> Group
production (Exploration & Production + iGRP)
Combined liquids and gasproduction by region (kboe/d)
1Q20 4Q19 1Q19 1Q20vs1Q19 Europe and Central Asia
1 097
1 102
990
+11%
Africa
701
703
697
+1%
Middle East and North Africa
681
701
686
-1%
Americas
372
368
373
-
Asia-Pacific
235
239
201
+17%
Total production
3 086
3 113
2 946
+5%
includes equity affiliates
753
768
709
+6%
Liquids production by region (kb/d) 1Q20 4Q19 1Q19
1Q20vs1Q19 Europe and Central Asia
404
373
352
+15%
Africa
555
560
540
+3%
Middle East and North Africa
516
560
522
-1%
Americas
178
171
177
+1%
Asia-Pacific
47
50
39
+21%
Total production
1 699
1 714
1 629
+4%
includes equity affiliates
214
212
217
-1%
Gas production by region (Mcf/d) 1Q20 4Q19 1Q19
1Q20vs1Q19 Europe and Central Asia
3 734
3 887
3 426
+9%
Africa*
746
686
795
-6%
Middle East and North Africa
912
792
905
+1%
Americas
1 092
1 109
1 101
-1%
Asia-Pacific*
1 076
1 089
940
+14%
Total production*
7 560
7 563
7 167
+5%
includes equity affiliates*
2 905
2 961
2 656
+9%
* 1Q19 and 4Q19 data restated
> Downstream
(Refining & Chemicals and Marketing & Services)
Petroleum product sales by region (kb/d) 1Q20 4Q19
1Q19 1Q20vs1Q19 Europe
1,771
1,993
2,022
-12%
Africa
683
737
658
+4%
Americas
766
763
839
-9%
Rest of world
444
526
616
-28%
Total consolidated sales
3,663
4,019
4,135
-11%
Includes bulk sales
497
508
557
-11%
Includes trading
1,510
1,676
1,742
-13%
Petrochemicals production* (kt) 1Q20 4Q19 1Q19
1Q20vs1Q19 Europe
1,272
1,253
1,416
-10%
Americas
664
630
614
8%
Middle-East and Asia
652
717
660
-1%
* Olefins, polymers
Adjustment items to net income (Group share)
In millions of dollars 1Q20 4Q19 1Q19 Special items
affecting net income (Group share)
(334)
(666)
(14)
Gain (loss) on asset sales
-
-
-
Restructuring charges
(80)
(5)
(2)
Impairments
-
(248)
-
Other
(254)
(413)
(12)
After-tax inventory effect : FIFO vs. replacement cost
(1,414)
57
388
Effect of changes in fair value
1
44
(22)
Total adjustments affecting net income
(1,747)
(565)
352
Investments - Divestments
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Organic investments ( a )
2,523
4,291
2,784
-9%
capitalized exploration
135
136
232
-42%
increase in non-current loans
279
319
130
x2,1 repayment of non-current loans, excluding organic loan
repayment from equity affiliates*
(117)
(102)
(134)
ns change in debt from renewable projects (Group share)
(105)
-
-
ns Acquisitions ( b )
1,644
266
669
x2,5 Asset sales ( c )
542
357
363
+49%
change in debt from renewable projects (partner share)
61
-
-
ns Other transactions with non-controlling interests ( d )
-
(11)
-
ns
Net investments ( a + b - c - d )
3,625
4,211
3,090
+17%
Organic loan repayment from equity affiliates* ( e )
7
(275)
-
ns Change in debt from renewable projects financing ** ( f )
166
-
-
ns Capex linked to capitalized leasing contracts (g)
24
-
-
ns
Cash flow used in investing activities ( a + b - c + e + f
-g)
3,774
3,925
3,090
+22%
* Effective second quarter 2019, organic loan repayments from
equity affiliates are defined as loan repayments from equity
affiliates coming from their cash flow from operations. ** Change
in debt from renewable projects (Group share and partner
share).
Cash flow
In millions of dollars 1Q20 4Q19 1Q19 1Q20vs1Q19
Operating cash flow before working capital changes w/o
financials charges (DACF)
4,528
7,372
6,536
-31%
Financial charges
(512)
(533)
(503)
ns
Operating cash flow before working capital changes ( a )
4,016
6,839
6,033
-33%
(Increase) decrease in working capital
(884)
46
(2,970)
ns Inventory effect
(1,796)
(11)
566
ns capital gain from renewable projects sale
(44)
-
-
ns Organic loan repayment from equity affiliates
7
(275)
-
ns
Cash flow from operations
1,299
6,599
3,629
-64%
Organic investments ( b )
2,523
4,291
2,784
-9%
Free cash flow after organic investments,w/o net asset sales ( a
- b )
1,493
2,548
3,249
-54%
Net investments ( c )
3,625
4,211
3,090
+17%
Net cash flow ( a - c )
391
2,628
2,943
-87%
Gearing ratio*
In millions of dollars 03/31/2020 12/31/2019
03/31/2019 Current borrowings
18,521
14,819
13,906
Net current financial assets
(6,412)
(3,505)
(2,722)
Net financial assets classified as held for sale
-
301
227
Non-current financial debt
48,896
47,773
44,396
Hedging instruments of non-current debt
(1,133)
(912)
(637)
Cash and cash equivalents
(21,634)
(27,352)
(25,432)
Net debt (a)
38,238
31,124
29,738
Shareholders’ equity - Group share
112,006
116,778
117,993
Non-controlling interests
2,428
2,527
2,365
Shareholders' equity (b)
114,434
119,305
120,358
Net-debt-to-capital ratio = a / (a + b)
25.0%
20.7%
19.8%
Net-debt-to-capital ratio excluding leases
21.3%
16.7%
15.9%
*The net-debt-to-capital ratios include the impact of the
new IFRS 16 rule, effective January 1, 2019.
Return on average capital employed
> Twelve months
ended March 31, 2020
In millions of dollars Exploration & Production
Integrated Gas, Renewables & Power Refining & Chemicals
Marketing & Services Group Adjusted net operating income
6,490
2,710
2,629
1,612
13,032
Capital employed at 03/31/2019*
90,051
37,235
13,153
8,255
148,463
Capital employed at 03/31/2020*
85,622
44,236
12,878
8,764
152,374
ROACE
7.4%
6.7%
20.2%
18.9%
8.7%
> Twelve months
ended December 31, 2019
In millions of dollars Exploration & Production
Integrated Gas, Renewables & Power Refining & Chemicals
Marketing & Services Group Adjusted net operating income
7,509
2,389
3,003
1,653
14,073
Capital employed at 12/31/2018*
89,400
34,746
10,599
6,442
138,519
Capital employed at 12/31/2019*
88,844
41,549
12,228
8,371
148,828
ROACE
8.4%
6.3%
26.3%
22.3%
9.8%
> Twelve months
ended March 31, 2019
In millions of dollars Exploration & Production
Integrated Gas, Renewables & Power Refining & Chemicals
Marketing & Services Group Adjusted net operating income
8,452
2,530
3,415
1,628
15,697
Capital employed at 03/31/2018*
93,276
30,996
13,428
7,409
143,957
Capital employed at 03/31/2019*
90,051
37,235
13,153
8,255
148,463
ROACE
9.2%
7.4%
25.7%
20.8%
10.7%
* At replacement cost (excluding after-tax inventory
effect).
This press release presents the results for the first quarter of
2020 from the consolidated financial statements of TOTAL S.A. as of
March 31, 2020. The limited review procedures by the Statutory
Auditors are underway. The notes to these consolidated financial
statements (unaudited) are available on the TOTAL website
total.com
This document may contain forward-looking information on the
Group (including objectives and trends), as well as forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, notably with respect to the financial
condition, results of operations, business, strategy and plans of
TOTAL.
Such forward-looking information and statements included in this
document are based on a number of economic data and assumptions
made in a given economic, competitive and regulatory environment.
They may prove to be inaccurate in the future, and are subject to a
number of risk factors that could lead to a significant difference
between actual results and those anticipated, the price of
petroleum products, the ability to realize cost reductions and
operating efficiencies without unduly disrupting business
operations, changes in regulations including environmental and
climate, currency fluctuations, as well as economic and political
developments and changes in business conditions. Certain financial
information is based on estimates particularly in the assessment of
the recoverable value of assets and potential impairments of assets
relating thereto.
Neither TOTAL nor any of its subsidiaries assumes any obligation
to update publicly any forward-looking information or statement,
objectives or trends contained in this document whether as a result
of new information, future events or otherwise. Further information
on factors, risks and uncertainties that could affect the Group’s
business, financial condition, including its operating income and
cash flow, reputation or outlook is provided in the most recent
Registration Document, the French language version of which is
filed by the Company with the French Autorité des Marchés
Financiers and annual report on Form 20-F/A filed with the United
States Securities and Exchange Commission (“SEC”).
Financial information by business segment is reported in
accordance with the internal reporting system and shows internal
segment information that is used to manage and measure the
performance of TOTAL. In addition to IFRS measures, certain
alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described
below (adjusted operating income, adjusted net operating income,
adjusted net income), return on equity (ROE), return on average
capital employed (ROACE), gearing ratio and operating cash flow
before working capital changes. These indicators are meant to
facilitate the analysis of the financial performance of TOTAL and
the comparison of income between periods. They allow investors to
track the measures used internally to manage and measure the
performance of the Group.
These adjustment items include:
(i) Special items Due to their
unusual nature or particular significance, certain transactions
qualified as "special items" are excluded from the business segment
figures. In general, special items relate to transactions that are
significant, infrequent or unusual. However, in certain instances,
transactions such as restructuring costs or asset disposals, which
are not considered to be representative of the normal course of
business, may be qualified as special items although they may have
occurred within prior years or are likely to occur again within the
coming years.
(ii) Inventory valuation effect The
adjusted results of the Refining & Chemicals and Marketing
& Services segments are presented according to the replacement
cost method. This method is used to assess the segments’
performance and facilitate the comparability of the segments’
performance with those of its competitors.
In the replacement cost method, which approximates the LIFO
(Last-In, First-Out) method, the variation of inventory values in
the statement of income is, depending on the nature of the
inventory, determined using either the month-end price
differentials between one period and another or the average prices
of the period rather than the historical value. The inventory
valuation effect is the difference between the results according to
the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair
value The effect of changes in fair value presented as an
adjustment item reflects, for some transactions, differences
between internal measures of performance used by TOTAL’s management
and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair
value using period-end spot prices. In order to best reflect the
management of economic exposure through derivative transactions,
internal indicators used to measure performance include valuations
of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into
storage contracts, whose future effects are recorded at fair value
in Group’s internal economic performance. IFRS precludes
recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net
operating income, adjusted net income) are defined as replacement
cost results, adjusted for special items, excluding the effect of
changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings
per share represent dollar amounts converted at the average
euro-dollar (€-$) exchange rate for the applicable period and are
not the result of financial statements prepared in euros.
Cautionary Note to U.S. Investors – The SEC permits oil and gas
companies, in their filings with the SEC, to separately disclose
proved, probable and possible reserves that a company has
determined in accordance with SEC rules. We may use certain terms
in this press release, such as “potential reserves” or “resources”,
that the SEC’s guidelines strictly prohibit us from including in
filings with the SEC. U.S. investors are urged to consider closely
the disclosure in our Form 20-F/A, File N° 1-10888, available from
us at 2, place Jean Millier – Arche Nord Coupole/Regnault - 92078
Paris-La Défense Cedex, France, or at our website total.com. You
can also obtain this form from the SEC by calling 1-800-SEC-0330 or
on the SEC’s website sec.gov.
Total financial statements
First quarter 2020 consolidated accounts,
IFRS
CONSOLIDATED STATEMENT OF
INCOME
TOTAL
(unaudited)
1st quarter
4th quarter
1st quarter
(M$)(a)
2020
2019
2019
Sales
43,870
49,280
51,205
Excise taxes
(5,293)
(5,895)
(6,081)
Revenues from sales
38,577
43,385
45,124
Purchases, net of inventory variation
(28,068)
(28,212)
(29,721)
Other operating expenses
(6,944)
(7,090)
(6,725)
Exploration costs
(140)
(231)
(288)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(3,635)
(4,431)
(3,466)
Other income
580
428
247
Other expense
(420)
(235)
(209)
Financial interest on debt
(569)
(606)
(561)
Financial income and expense from cash
& cash equivalents
(155)
51
(28)
Cost of net debt
(724)
(555)
(589)
Other financial income
188
143
160
Other financial expense
(181)
(203)
(195)
Net income (loss) from equity
affiliates
732
502
711
Income taxes
37
(852)
(1,909)
Consolidated net income
2
2,649
3,140
Group share
34
2,600
3,111
Non-controlling interests
(32)
49
29
Earnings per share ($)
(0.01)
0.98
1.17
Fully-diluted earnings per share ($)
(0.01)
0.97
1.16
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
TOTAL
(unaudited)
1st quarter
4th quarter
1st quarter
(M$)
2020
2019
2019
Consolidated net income
2
2,649
3,140
Other comprehensive income
Actuarial gains and losses
133
(138)
164
Change in fair value of investments in
equity instruments
(164)
16
33
Tax effect
(15)
40
(45)
Currency translation adjustment generated
by the parent company
(1,976)
2,461
(1,531)
Items not potentially reclassifiable to
profit and loss
(2,022)
2,379
(1,379)
Currency translation adjustment
(21)
(654)
806
Cash flow hedge
(1,524)
(24)
(127)
Variation of foreign currency basis
spread
56
(49)
11
Share of other comprehensive income of
equity affiliates, net amount
(1,223)
82
388
Other
3
1
1
Tax effect
445
26
38
Items potentially reclassifiable to
profit and loss
(2,264)
(618)
1,117
Total other comprehensive income (net
amount)
(4,286)
1,761
(262)
Comprehensive income
(4,284)
4,410
2,878
Group share
(4,171)
4,319
2,840
Non-controlling interests
(113)
91
38
CONSOLIDATED BALANCE SHEET
TOTAL
March 31, 2020
December 31, 2019
March 31, 2019
(M$)
(unaudited)
(unaudited)
(unaudited)
ASSETS
Non-current assets
Intangible assets, net
32,823
33,178
28,727
Property, plant and equipment, net
113,254
116,408
117,881
Equity affiliates : investments and
loans
26,998
27,122
25,996
Other investments
1,660
1,778
1,468
Non-current financial assets
1,133
912
637
Deferred income taxes
6,694
6,216
6,246
Other non-current assets
2,537
2,415
2,156
Total non-current assets
185,099
188,029
183,111
Current assets
Inventories, net
11,556
17,132
17,075
Accounts receivable, net
18,029
18,488
19,321
Other current assets
19,429
17,013
16,237
Current financial assets
7,016
3,992
3,373
Cash and cash equivalents
21,634
27,352
25,432
Assets classified as held for sale
421
1,288
314
Total current assets
78,085
85,265
81,752
Total assets
263,184
273,294
264,863
LIABILITIES & SHAREHOLDERS'
EQUITY
Shareholders' equity
Common shares
8,123
8,123
8,231
Paid-in surplus and retained earnings
119,935
121,170
123,702
Currency translation adjustment
(14,431)
(11,503)
(11,606)
Treasury shares
(1,621)
(1,012)
(2,334)
Total shareholders' equity - Group
share
112,006
116,778
117,993
Non-controlling interests
2,428
2,527
2,365
Total shareholders' equity
114,434
119,305
120,358
Non-current liabilities
Deferred income taxes
10,462
11,858
11,339
Employee benefits
3,260
3,501
3,150
Provisions and other non-current
liabilities
19,452
20,613
21,020
Non-current financial debt
48,896
47,773
44,396
Total non-current liabilities
82,070
83,745
79,905
Current liabilities
Accounts payable
22,123
28,394
26,416
Other creditors and accrued
liabilities
25,102
25,749
23,361
Current borrowings
18,521
14,819
13,906
Other current financial liabilities
604
487
651
Liabilities directly associated with the
assets classified as held for sale
330
795
266
Total current liabilities
66,680
70,244
64,600
Total liabilities & shareholders'
equity
263,184
273,294
264,863
CONSOLIDATED STATEMENT OF CASH
FLOW
TOTAL
(unaudited)
1st quarter
4th quarter
1st quarter
(M$)
2020
2019
2019
CASH FLOW FROM OPERATING
ACTIVITIES
Consolidated net income
2
2,649
3,140
Depreciation, depletion, amortization and
impairment
3,730
4,624
3,716
Non-current liabilities, valuation
allowances and deferred taxes
(661)
(672)
140
(Gains) losses on disposals of assets
(209)
(176)
(173)
Undistributed affiliates' equity
earnings
(587)
267
(306)
(Increase) decrease in working capital
(884)
46
(2,970)
Other changes, net
(92)
(139)
82
Cash flow from operating
activities
1,299
6,599
3,629
CASH FLOW USED IN INVESTING
ACTIVITIES
Intangible assets and property, plant and
equipment additions
(2,364)
(4,015)
(2,704)
Acquisitions of subsidiaries, net of cash
acquired
(188)
(155)
-
Investments in equity affiliates and other
securities
(1,534)
(170)
(753)
Increase in non-current loans
(295)
(319)
(130)
Total expenditures
(4,381)
(4,659)
(3,587)
Proceeds from disposals of intangible
assets and property, plant and equipment
44
301
8
Proceeds from disposals of subsidiaries,
net of cash sold
142
13
147
Proceeds from disposals of non-current
investments
295
43
208
Repayment of non-current loans
126
377
134
Total divestments
607
734
497
Cash flow used in investing
activities
(3,774)
(3,925)
(3,090)
CASH FLOW USED IN FINANCING
ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders
-
1
1
- Treasury shares
(609)
(620)
(491)
Dividends paid:
- Parent company shareholders
(1,882)
(1,876)
(1,830)
- Non-controlling interests
-
(1)
-
Net issuance (repayment) of perpetual
subordinated notes
-
-
-
Payments on perpetual subordinated
notes
(97)
(56)
(140)
Other transactions with non-controlling
interests
(48)
160
(150)
Net issuance (repayment) of non-current
debt
42
84
1,250
Increase (decrease) in current
borrowings
2,785
(1,131)
(1,526)
Increase (decrease) in current financial
assets and liabilities
(2,995)
(168)
106
Cash flow from (used in) financing
activities
(2,804)
(3,607)
(2,780)
Net increase (decrease) in cash and
cash equivalents
(5,279)
(933)
(2,241)
Effect of exchange rates
(439)
831
(234)
Cash and cash equivalents at the beginning
of the period
27,352
27,454
27,907
Cash and cash equivalents at the end of
the period
21,634
27,352
25,432
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
TOTAL
(unaudited)
Common shares issued
Paid-in surplus and retained
earnings
Currency translation
adjustment
Treasury shares
Shareholders' equity -
Group
Share
Non-controlling
interests
Total shareholders'
equity
(M$)
Number
Amount
Number
Amount
As of January 1, 2019
2,640,602,007
8,227
120,569
(11,313)
(32,473,281)
(1,843)
115,640
2,474
118,114
Net income of the first quarter 2019
-
-
3,111
-
-
-
3,111
29
3,140
Other comprehensive income
-
-
22
(293)
-
-
(271)
9
(262)
Comprehensive Income
-
-
3,133
(293)
-
-
2,840
38
2,878
Dividend
-
-
-
-
-
-
-
-
-
Issuance of common shares
1,272,267
4
64
-
-
-
68
-
68
Purchase of treasury shares
-
-
-
-
(8,675,188)
(491)
(491)
-
(491)
Sale of treasury shares(a)
-
-
-
-
2,210
-
-
-
-
Share-based payments
-
-
11
-
-
-
11
-
11
Share cancellation
-
-
-
-
-
-
-
-
-
Net issuance (repayment) of perpetual
subordinated notes
-
-
-
-
-
-
-
-
-
Payments on perpetual subordinated
notes
-
-
(75)
-
-
-
(75)
-
(75)
Other operations with
non-controlling interests
-
-
-
-
-
-
-
(150)
(150)
Other items
-
-
-
-
-
-
-
3
3
As of March 31, 2019
2,641,874,274
8,231
123,702
(11,606)
(41,146,259)
(2,334)
117,993
2,365
120,358
Net income from April 1 to December 31,
2019
-
-
8,156
-
-
-
8,156
142
8,298
Other comprehensive income
-
-
(681)
103
-
-
(578)
59
(519)
Comprehensive Income
-
-
7,475
103
-
-
7,578
201
7,779
Dividend
-
-
(7,730)
-
-
-
(7,730)
(115)
(7,845)
Issuance of common shares
25,116,236
70
1,201
-
-
-
1,271
-
1,271
Purchase of treasury shares
-
-
-
-
(43,714,148)
(2,319)
(2,319)
-
(2,319)
Sale of treasury shares(a)
-
-
(219)
-
4,276,738
219
-
-
-
Share-based payments
-
-
196
-
-
-
196
-
196
Share cancellation
(65,109,435)
(178)
(3,244)
-
65,109,435
3,422
-
-
-
Net issuance (repayment) of perpetual
subordinated notes
-
-
(4)
-
-
-
(4)
-
(4)
Payments on perpetual subordinated
notes
-
-
(278)
-
-
-
(278)
-
(278)
Other operations with
non-controlling interests
-
-
55
-
-
-
55
108
163
Other items
-
-
16
-
-
-
16
(32)
(16)
As of December 31, 2019
2,601,881,075
8,123
121,170
(11,503)
(15,474,234)
(1,012)
116,778
2,527
119,305
Net income of the first quarter 2020
-
-
34
-
-
-
34
(32)
2
Other comprehensive income
-
-
(1,277)
(2,928)
-
-
(4,205)
(81)
(4,286)
Comprehensive income
-
-
(1,243)
(2,928)
-
-
(4,171)
(113)
(4,284)
Dividend
-
-
-
-
-
-
-
-
-
Issuance of common shares
-
-
-
-
-
-
-
-
-
Purchase of treasury shares
-
-
-
-
(13,236,044)
(609)
(609)
-
(609)
Sale of treasury shares(a)
-
-
-
-
3,030
-
-
-
-
Share-based payments
-
-
31
-
-
-
31
-
31
Share cancellation
-
-
-
-
-
-
-
-
-
Net issuance (repayment) of perpetual
subordinated notes
-
-
-
-
-
-
-
-
-
Payments on perpetual subordinated
notes
-
-
(72)
-
-
-
(72)
-
(72)
Other operations with
non-controlling interests
-
-
(44)
-
-
-
(44)
(4)
(48)
Other items
-
-
93
-
-
-
93
18
111
As of March 31, 2020
2,601,881,075
8,123
119,935
(14,431)
(28,707,248)
(1,621)
112,006
2,428
114,434
(a)Treasury shares related to the
restricted stock grants.
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
1st quarter 2020
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
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
1st quarter 2020
(adjustments)(a)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
-
2
-
-
-
-
2
Intersegment sales
-
-
-
-
-
-
-
Excise taxes
-
-
-
-
-
-
-
Revenues from sales
-
2
-
-
-
-
2
Operating expenses
(10)
(119)
(1,589)
(346)
(55)
-
(2,119)
Depreciation, depletion and impairment of
tangible assets and mineral interests
-
-
-
-
-
-
-
Operating income (b)
(10)
(117)
(1,589)
(346)
(55)
-
(2,117)
Net income (loss) from equity affiliates
and other items
128
(75)
(208)
-
-
-
(155)
Tax on net operating income
7
44
425
100
-
-
576
Net operating income (b)
125
(148)
(1,372)
(246)
(55)
-
(1,696)
Net cost of net debt
(101)
Non-controlling interests
50
Net income - group share
(1,747)
(a) Adjustments include special items,
inventory valuation effect and the effect of changes in fair
value.
(b) Of which inventory valuation
effect
- On operating income
-
-
(1,578)
(218)
-
- On net operating income
-
-
(1,285)
(154)
-
1st quarter 2020 (adjusted)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
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
1st quarter 2020
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Total expenditures
1,659
2,291
226
160
45
4,381
Total divestments
121
344
79
46
17
607
Cash flow from operating activities
3,923
(489)
(1,183)
(399)
(553)
1,299
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
4th quarter 2019
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
1,563
4,292
22,040
21,379
6
-
49,280
Intersegment sales
8,266
993
7,739
203
47
(17,248)
-
Excise taxes
-
-
(765)
(5,130)
-
-
(5,895)
Revenues from sales
9,829
5,285
29,014
16,452
53
(17,248)
43,385
Operating expenses
(4,156)
(4,471)
(28,084)
(15,714)
(356)
17,248
(35,533)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(3,307)
(488)
(351)
(263)
(22)
-
(4,431)
Operating income
2,366
326
579
475
(325)
-
3,421
Net income (loss) from equity affiliates
and other items
166
391
57
15
6
-
635
Tax on net operating income
(893)
104
(3)
(100)
(39)
-
(931)
Net operating income
1,639
821
633
390
(358)
-
3,125
Net cost of net debt
(476)
Non-controlling interests
(49)
Net income - group share
2,600
4th quarter 2019
(adjustments)(a)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
-
10
-
-
-
-
10
Intersegment sales
-
-
-
-
-
-
-
Excise taxes
-
-
-
-
-
-
-
Revenues from sales
-
10
-
-
-
-
10
Operating expenses
(45)
(87)
44
(102)
(112)
-
(302)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(525)
(136)
(9)
-
-
-
(670)
Operating income (b)
(570)
(213)
35
(102)
(112)
-
(962)
Net income (loss) from equity affiliates
and other items
(22)
(38)
(13)
(23)
-
-
(96)
Tax on net operating income
200
278
31
41
(73)
-
477
Net operating income (b)
(392)
27
53
(84)
(185)
-
(581)
Net cost of net debt
(3)
Non-controlling interests
19
Net income - group share
(565)
(a) Adjustments include special items,
inventory valuation effect and the effect of changes in fair
value.
(b) Of which inventory valuation
effect
- On operating income
-
-
85
(96)
-
- On net operating income
-
-
117
(60)
-
4th quarter 2019 (adjusted)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
1,563
4,282
22,040
21,379
6
-
49,270
Intersegment sales
8,266
993
7,739
203
47
(17,248)
-
Excise taxes
-
-
(765)
(5,130)
-
-
(5,895)
Revenues from sales
9,829
5,275
29,014
16,452
53
(17,248)
43,375
Operating expenses
(4,111)
(4,384)
(28,128)
(15,612)
(244)
17,248
(35,231)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(2,782)
(352)
(342)
(263)
(22)
-
(3,761)
Adjusted operating income
2,936
539
544
577
(213)
-
4,383
Net income (loss) from equity affiliates
and other items
188
429
70
38
6
-
731
Tax on net operating income
(1,093)
(174)
(34)
(141)
34
-
(1,408)
Adjusted net operating income
2,031
794
580
474
(173)
-
3,706
Net cost of net debt
(473)
Non-controlling interests
(68)
Adjusted net income - group
share
3,165
4th quarter 2019
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Total expenditures
2,633
747
664
571
44
4,659
Total divestments
256
342
69
62
5
734
Cash flow from operating activities
4,206
1,527
1,142
278
(554)
6,599
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
1st quarter 2019
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
1,794
6,419
21,711
21,279
2
-
51,205
Intersegment sales
7,716
627
8,017
162
27
(16,549)
-
Excise taxes
-
-
(776)
(5,305)
-
-
(6,081)
Revenues from sales
9,510
7,046
28,952
16,136
29
(16,549)
45,124
Operating expenses
(4,029)
(6,409)
(27,334)
(15,334)
(177)
16,549
(36,734)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(2,529)
(315)
(374)
(233)
(15)
-
(3,466)
Operating income
2,952
322
1,244
569
(163)
-
4,924
Net income (loss) from equity affiliates
and other items
194
380
149
(10)
1
-
714
Tax on net operating income
(1,424)
(173)
(292)
(164)
60
-
(1,993)
Net operating income
1,722
529
1,101
395
(102)
-
3,645
Net cost of net debt
(505)
Non-controlling interests
(29)
Net income - group share
3,111
1st quarter 2019
(adjustments)(a)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
-
(27)
-
-
-
-
(27)
Intersegment sales
-
-
-
-
-
-
-
Excise taxes
-
-
-
-
-
-
-
Revenues from sales
-
(27)
-
-
-
-
(27)
Operating expenses
-
(58)
492
74
-
-
508
Depreciation, depletion and impairment of
tangible assets and mineral interests
-
-
-
-
-
-
-
Operating income (b)
-
(85)
492
74
-
-
481
Net income (loss) from equity affiliates
and other items
-
6
2
-
-
-
8
Tax on net operating income
-
16
(149)
(22)
-
-
(155)
Net operating income (b)
-
(63)
345
52
-
-
334
Net cost of net debt
(4)
Non-controlling interests
22
Net income - group share
352
(a) Adjustments include special items,
inventory valuation effect and the effect of changes in fair
value.
(b) Of which inventory valuation
effect
- On operating income
-
-
492
74
-
- On net operating income
-
-
345
52
-
1st quarter 2019 (adjusted)
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Non-Group sales
1,794
6,446
21,711
21,279
2
-
51,232
Intersegment sales
7,716
627
8,017
162
27
(16,549)
-
Excise taxes
-
-
(776)
(5,305)
-
-
(6,081)
Revenues from sales
9,510
7,073
28,952
16,136
29
(16,549)
45,151
Operating expenses
(4,029)
(6,351)
(27,826)
(15,408)
(177)
16,549
(37,242)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(2,529)
(315)
(374)
(233)
(15)
-
(3,466)
Adjusted operating income
2,952
407
752
495
(163)
-
4,443
Net income (loss) from equity affiliates
and other items
194
374
147
(10)
1
-
706
Tax on net operating income
(1,424)
(189)
(143)
(142)
60
-
(1,838)
Adjusted net operating income
1,722
592
756
343
(102)
-
3,311
Net cost of net debt
(501)
Non-controlling interests
(51)
Adjusted net income - group
share
2,759
1st quarter 2019
Exploration
&
Production
Integrated Gas,
Renewables
& Power
Refining
&
Chemicals
Marketing
&
Services
Corporate
Intercompany
Total
(M$)
Total expenditures
2,025
1,118
285
144
15
3,587
Total divestments
29
225
169
72
2
497
Cash flow from operating activities
3,936
892
(538)
232
(893)
3,629
Reconciliation of the information by
business segment with Consolidated Financial Statements
TOTAL
(unaudited)
Consolidated
1st quarter 2020
statement
(M$)
Adjusted
Adjustments(a)
of income
Sales
43,868
2
43,870
Excise taxes
(5,293)
-
(5,293)
Revenues from sales
38,575
2
38,577
Purchases net of inventory variation
(26,107)
(1,961)
(28,068)
Other operating expenses
(6,786)
(158)
(6,944)
Exploration costs
(140)
-
(140)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(3,635)
-
(3,635)
Other income
580
-
580
Other expense
(191)
(229)
(420)
Financial interest on debt
(567)
(2)
(569)
Financial income and expense from cash
& cash equivalents
(10)
(145)
(155)
Cost of net debt
(577)
(147)
(724)
Other financial income
188
-
188
Other financial expense
(181)
-
(181)
Net income (loss) from equity
affiliates
658
74
732
Income taxes
(585)
622
37
Consolidated net income
1,799
(1,797)
2
Group share
1,781
(1,747)
34
Non-controlling interests
18
(50)
(32)
(a) Adjustments include special items,
inventory valuation effect and the effect of changes in fair
value.
Consolidated
1st quarter 2019
statement
(M$)
Adjusted
Adjustments(a)
of income
Sales
51,232
(27)
51,205
Excise taxes
(6,081)
-
(6,081)
Revenues from sales
45,151
(27)
45,124
Purchases net of inventory variation
(30,238)
517
(29,721)
Other operating expenses
(6,716)
(9)
(6,725)
Exploration costs
(288)
-
(288)
Depreciation, depletion and impairment of
tangible assets and mineral interests
(3,466)
-
(3,466)
Other income
200
47
247
Other expense
(73)
(136)
(209)
Financial interest on debt
(557)
(4)
(561)
Financial income and expense from cash
& cash equivalents
(28)
-
(28)
Cost of net debt
(585)
(4)
(589)
Other financial income
160
-
160
Other financial expense
(195)
-
(195)
Net income (loss) from equity
affiliates
614
97
711
Income taxes
(1,754)
(155)
(1,909)
Consolidated net income
2,810
330
3,140
Group share
2,759
352
3,111
Non-controlling interests
51
(22)
29
(a) Adjustments include special items,
inventory valuation effect and the effect of changes in fair
value.
1 Definition page 3 2 Certain transactions referred to in the
highlights are subject to approval by authorities or to other
conditions as per the agreements. 3 Adjusted results are defined as
income using replacement cost, adjusted for special items,
excluding the impact of changes for fair value; adjustment items
are on page 14. 4 Tax on adjusted net operating income / (adjusted
net operating income – income from equity affiliates – dividends
received from investments – impairment of goodwill + tax on
adjusted net operating income). 5 In accordance with IFRS rules,
adjusted fully-diluted earnings per share is calculated from the
adjusted net income less the interest on the perpetual subordinated
bond 6 Organic investments = net investments excluding
acquisitions, asset sales and other operations with non-controlling
interests. 7 Net acquisitions = acquisitions – assets sales – other
transactions with non-controlling interests (see page 14). 8 Net
investments = Organic investments + net acquisitions (see page 14).
9 Operating cash flow before working capital changes, is defined as
cash flow from operating activities before changes in working
capital at replacement cost, and effective second quarter 2019
including organic loan repayments from equity affiliates, and
effective first quarter 2020 including capital gain from renewable
projects sale. The inventory valuation effect is explained on page
17. The reconciliation table for different cash flow figures is on
page 15. 10 DACF = debt adjusted cash flow, is defined as operating
cash flow before working capital changes and financial charges. 11
Adjustment items shown on page 14. 12 Details shown on page 14 and
in the appendix to the financial statements. 13 Net cash flow =
operating cash flow before working capital changes - net
investments (including other transactions with non-controlling
interests).
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