Regulatory News:
TOTAL S.A. (Paris:FP) (LSE:TTA) (NYSE:TOT):
Change
1Q20 1Q19 vs 1Q19
Oil price - Brent ($/b) 50.1 63.1 -21%
European gas price - NBP ($/Mbtu) 3.1 6.3 -51%
Adjusted net income (Group share)(1)
- in billions of dollars (B$) 1.78 2.76 -35%
- in dollars per share 0.66 1.02 -36%
DACF(1) (B$) 4.5 6.5 -31%
Cash Flow from operations (B$) 1.3 3.6 -64%
Net income (Group share) of 34 M$ in 1Q20, considering
the stock effect of 1.4 B$
Net-debt-to-capital ratio of 21% (excl. leases impact)
at March 31, 2020
Hydrocarbon production of 3,086 kboe/d in 1Q20, an increase of 5%
compared to 1Q19
First 2020 interim dividend set at 0.66 EUR/share
Total's Board of Directors met on May 4, 2020, to approve the
Group's first quarter 2020 financial statements. On this occasion,
Chairman and CEO Patrick Pouyanné said:
"Total's Board of Directors would like to begin by thanking all
those mobilized to face Covid-19, particularly the Group's
employees, who, while complying with health regulations, are
maintaining the production, processing and distribution of products
that consumers need.
The Group is facing exceptional circumstances: the Covid-19
health crisis, which is affecting the world economy and creating
major uncertainties, and the oil market crisis, with the sharp drop
in oil prices since March.
In an environment where prices fell by more than 30% on average
during the first quarter, the Group's cash flow decreased by 31%
year-on-year to $4.5 billion, and adjusted net income was down 35%
this quarter to $1.8 billion. Return on equity stood at 9.8% and
Total maintained its financial strength with gearing at 21%.
In response to these crises, the Group announced an immediate
action plan on March 23. The Group now anticipates 2020 production
between 2.95 and 3 Mboe/d, a reduction of at least 5% from 2020
forecasts, reflecting the voluntary curtailment measures in Canada,
the exceptional quotas announced by OPEC+, lower local demand for
gas and the situation in Libya. In the Downstream, plant
utilization rates and sales have been on average 50% below normal
since mid-March, with uncertainty about the timing of a return to
normal.
In this context, the action plan should be strengthened:
- Net investments further reduced to less than $14 billion for
the year, a decrease of nearly 25% compared to the $18 billion
announced in February 2020. Investments in low-carbon electricity
will be maintained between $1.5 and $2 billion.
- Operating cost reduction increased to more than $1 billion,
plus savings of more than $1 billion on energy costs.
- The Group strengthened its liquidity position in April by
issuing $3 billion in bonds and drawing $6 billion in credit lines.
In addition, in a 30 $/b environment, the Group anticipates an
improvement in its working capital position of $1 billion by
year-end 2020 compared to year-end 2019.
In this specific context, considering the solid fundamentals of
Total -- low breakeven and gearing -- the Board of Directors
decided to set the 2020 first interim dividend at EUR0.66 per
share, stable compared to the 2019 first interim dividend, and to
propose at the Annual Shareholders' Meeting to put in place the
option to receive the final 2019 dividend in shares, given that the
Group bought back $0.55 billion of shares at the beginning of the
year when prices were around $60/b.
While responsibly taking on the short-term challenges, the Group
continues to implement its medium and long-term strategy. From this
perspective, the announcement of a new climate ambition for the
Group that aims at carbon neutrality by 2050 in Europe and in the
world in step with society, is in line with Total's reinforced
strategy to become a broad-energy company. Concrete steps were
taken in the first quarter to implement this strategy by accessing
nearly 6 GW of renewable capacity, including solar (India, Qatar,
Spain, France) and wind (France, UK). The countercyclical
acquisition of Tullow's interests in Uganda is also part of the
strategy to access low-cost barrels of oil."
Taking into account the difficult environment facing the Group
and the savings that all Total's teams have to make, Chairman and
CEO Patrick Pouyanné proposed to reduce his fixed salary by 25% for
the remainder of 2020, including the month of May. Considering the
anticipated evolution of the economic criteria for the variable
portion, Patrick Pouyanné's total remuneration will decrease by
more than 30% in 2020 compared to 2019. The members of the board
also decided to give up 25% of their attendance fees starting from
the Annual Shareholders' Meeting. The members of the Executive
Committee wished to join in these measures by reducing their fixed
salaries by 10% for the remainder of the 2020 year.
First quarter 2020 results
Pressured by the collapse of demand linked to Covid-19, oil
prices fell sharply during March to an average of 50 $/b in the
first quarter, down 21% year-on-year. Gas prices in Europe also
fell sharply, down more than 50% year-on-year. In an environment of
prices falling by more than 30% on average compared to the first
quarter 2019, the Group's cash flow decreased by 31% to $4.5
billion. Adjusted net income decreased by 35% to $1.8 billion this
quarter and return on equity stood at 9.8% with gearing at 21%.
Leading the Group's low-carbon ambition, the iGRP segment
generated $0.9 billion of cash flow, an increase of 40%
year-on-year thanks to a growth in LNG sales of nearly 30% and to
the resilience of the sales price of its LNG production. In
low-carbon electricity, the Group is accelerating growth by
entering into renewable projects with gross installed capacity of
more than 6 GW, particularly in India, Qatar and Spain.
In the first quarter, Upstream production grew by 5%
year-on-year, driven by ramp-ups on projects, such as Culzean in
the UK, Johan Sverdrup in Norway and Yamal in Russia. Impacted by
lower prices, Exploration & Production cash flow was $2.6
billion, down 39% year-on-year. Notably Exploration &
Production made two discoveries in Surinam.
Downstream cash flow was $1.1 billion, down 37% year-on-year. In
Europe, refining margins decreased by 20% and throughput volumes
were down about 30% due to lower demand. Petrochemicals were
resilient, benefiting from the fall in raw material prices. Retail
network sales were down 10% year-on-year due to the impact of the
Covid-19 crisis.
Highlights(2)
-- Asset sale program ongoing with disposal of downstream gas in France,
Exploration & Production in Brunei, and Marketing in Sierra Leone and
Liberia
-- Counter-cyclical acquisition of Tullow's interest in the Lake Albert
project in Uganda
-- Acquisition of 50% of 2 GW gross capacity portfolio of solar power plants
in India as part of a 50/50 JV with the Adani Group
-- Agreement to build a large-scale solar power plant (800 MWp) in Qatar
-- Entry into solar market in Spain with the acquisition of 2 GW portfolio
of projects
-- Acquisition in France of Global Wind Power France, which holds a 1 GW
gross capacity portfolio of projects
-- Entry into first floating offshore wind project in the UK
-- Launched in Dunkirk the largest battery power storage project (25 MW) for
France's power grid
-- Launched a pilot plant in Europe to start producing EV batteries from
2023 at the highest technological level in terms of energy performance
-- In Exploration, made two significant oil discoveries on Block 58 in
Surinam plus a new condensate gas discovery in the UK North Sea
Key figures(3)
1Q20
In millions of dollars, except effective tax rate, vs
earnings per share and number of shares 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income from business
segments 2,300 3,879 3,413 -33%
Exploration & Production 703 2,031 1,722 -59%
Integrated Gas, Renewables & Power 913 794 592 +54%
Refining & Chemicals 382 580 756 -49%
Marketing & Services 302 474 343 -12%
Contribution of equity affiliates to adjusted net
income 658 668 614 +7%
Group effective tax rate(4) 30.0% 31.8% 40.5%
Adjusted net income (Group share) 1,781 3,165 2,759 -35%
Adjusted fully-diluted earnings per share
(dollars)(5) 0.66 1.19 1.02 -36%
Adjusted fully-diluted earnings per share (euros)* 0.60 1.07 0.90 -34%
Fully-diluted weighted-average shares (millions) 2,601 2,607 2,620 -1%
Net income (Group share) 34 2,600 3,111 -99%
Organic investments(6) 2,523 4,291 2,784 -9%
Net acquisitions(7) 1,102 (80) 306 x3,6
Net investments(8) 3,625 4,211 3,090 +17%
Operating cash flow
before working capital changes(9) 4,016 6,839 6,033 -33%
Operating cash flow before working capital changes
w/o financial charges (DACF)(10) 4,528 7,372 6,536 -31%
Cash flow from operations 1,299 6,599 3,629 -64%
From 2019, data take into account the impact of the new rule
IFRS16 "Leases", effective January 1, 2019.
* Average EUR-$ exchange rate: 1.1027 for the first quarter of
2020.
Key figures of environment and Group production
> Environment* -- liquids and gas price realizations,
refining margins
1Q20
vs
1Q20 4Q19 1Q19 1Q19
Brent ($/b) 50.1 63.1 63.1 -21%
Henry Hub ($/Mbtu) 1.9 2.4 2.9 -35%
NBP ($/Mbtu) 3.1 5.1 6.3 -51%
JKM ($/Mbtu) 3.6 5.8 6.6 -45%
Average price of liquids ($/b)
Consolidated subsidiaries 44.4 59.1 58.7 -24%
Average price of gas ($/Mbtu)
Consolidated subsidiaries 3.35 3.76 4.51 -26%
Average price of LNG ($/Mbtu)
Consolidated subsidiaries and equity affiliates 6.32 6.52 7.20 -12%
Variable cost margin - Refining Europe, VCM ($/t) 26.3 30.2 33.0 -20%
* The indicators are shown on page 18.
> Production*
1Q20
vs
1Q20 4Q19 1Q19 1Q19
Hydrocarbon production (kboe/d) 3,086 3,113 2,946 +5%
Oil (including bitumen) (kb/d) 1,448 1,452 1,425 +2%
Gas (including condensates and associated NGL)
(kboe/d) 1,638 1,661 1,521 +8%
Hydrocarbon production (kboe/d) 3,086 3,113 2,946 +5%
Liquids (kb/d) 1,699 1,714 1,629 +4%
Gas (Mcf/d)** 7,560 7,563 7,167 +5%
* Group production = EP production + iGRP production.
** 1Q19 and 4Q19 data restated
Hydrocarbon production was 3,086 thousand barrels of oil
equivalent per day (kboe/d) in the first quarter 2020, an increase
of 5% year-on-year, due to:
-- +8% related to the start-up and ramp-up of new projects, notably Culzean
in the United Kingdom, Egina in Nigeria, Johan Sverdrup in Norway and
Ichthys in Australia.
-- +2% due to lower prices and to portfolio effects, notably the increased
interest in the DUC field in Denmark.
-- -3% due to the natural decline of fields.
-- -2% due notably to partial production halt in Libya and to the Tyra
redevelopment in Denmark.
Analysis of business segments
Integrated Gas, Renewables & Power (iGRP)
> Liquefied natural gas (LNG) production and sales and low
carbon electricity
1Q20
vs
Hydrocarbon production for LNG 1Q20 4Q19 1Q19 1Q19
iGRP (kboe/d) 552 624 518 +7%
Liquids (kb/d) 73 74 66 +10%
Gas (Mcf/d)* 2,611 2,939 2,460 +6%
1Q20
vs
Liquefied Natural Gas in Mt 1Q20 4Q19 1Q19 1Q19
Overall LNG sales 9.8 10.6 7.7 +27%
incl. Sales from equity production** 4.7 4.2 3.8 +23%
incl. Sales by Total from equity production and
third party purchases 7.8 9.6 6.0 +30%
* 1Q19 and 4Q19 data restated.
** The Group's equity production may be sold by Total or by the
joint ventures.
1Q20
vs
Low carbon electricity 1Q20 4Q19 1Q19 1Q19
Gross renewables installed capacity (GW)* 3.0 3.0 1.8 +68%
Net low carbon power production (TWh)** 2.9 3.5 2.7 +10%
Clients gas and power - BtB and BtC (Million)* 5.9 5.8 5.4 +9%
Sales gas and power - BtB and BtC (TWh) 47.8 34.9 47.9 -
* Capacity at end of period.
** Solar, wind, biogas, hydroelectric and CCGT plants.
Production increased by 7% year-on-year essentially linked to
the ramp-up of Ichthys in Australia and Yamal LNG in Russia.
Total LNG sales increased by 27% year-on-year thanks to the
ramp-up of Yamal LNG and Ichthys plus the start-up of the first two
Cameron LNG trains in the US.
Gross installed renewable power generation capacity increased by
68% year-on-year to 3 GW. The Group continues to implement its
integration strategy for the gas and electricity chain in Europe
and saw the number of customers for gas and electricity grow to 5.9
million, up 9% year-on-year.
> Results
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income* 913 794 592 +54%
including income from equity affiliates 248 353 255 -3%
Organic investments 646 684 493 +31%
Net acquisitions 1,137 (13) 400 x2,8
Net investments 1,783 671 893 +100%
Operating cash flow before working capital changes
** 852 1,402 610 +40%
Cash flow from operations ** (489) 1,527 892 ns
* Detail of adjustment items shown in the business segment
information annex to financial statements.
** Excluding financial charges, except those related to
leases.
Adjusted net operating income for the iGRP segment was $913
million in the first quarter of 2020, up 54% year-on-year and
operating cash flow before working capital changes was up 40% in
the same period to $852 million. The strong results compared to the
first quarter of 2019 are due to the strong growth of LNG sales
combined with resilient sales prices for the LNG portfolio,
increasing use of regasification capacity in Europe and the strong
performance of trading activities. The contribution of renewable
activities also increased in the quarter.
Exploration & Production
> Production
1Q20
vs
Hydrocarbon production 1Q20 4Q19 1Q19 1Q19
EP (kboe/d) 2,534 2,489 2,428 +4%
Liquids (kb/d) 1,626 1,640 1,563 +4%
Gas (Mcf/d) 4,949 4,624 4,707 +5%
> Results
1Q20
vs
In millions of dollars, except effective tax rate 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income* 703 2,031 1,722 -59%
including income from equity affiliates 390 247 213 +83%
Effective tax rate** 59.6% 38.0% 48.6%
Organic investments 1,572 2,617 1,958 -20%
Net acquisitions (6) (224) 38 ns
Net investments 1,566 2,393 1,996 -22%
Operating cash flow before working capital changes
*** 2,576 4,451 4,246 -39%
Cash flow from operations *** 3,923 4,206 3,936 -
* Details on adjustment items are shown in the business segment
information annex to financial statements.
** Tax on adjusted net operating income / (adjusted net
operating income - income from equity affiliates - dividends
received from investments - impairment of goodwill + tax on
adjusted net operating income).
*** Excluding financial charges, except those related to
leases.
Exploration & Production adjusted net operating income was
$703 million in the first quarter, down 59% year-on-year due to the
sharp decrease in oil and gas prices at the end of the quarter.
Operating cash flow before working capital changes was $2.6
billion in the first quarter, down 39% year-on-year for the same
reasons, partially offset by the ramp-up of strong cash-generating
projects.
Downstream (Refining & Chemicals and Marketing &
Services)
> Results
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income* 684 1,054 1,099 -38%
Organic investments 277 949 319 -13%
Net acquisitions (30) 159 (131) ns
Net investments 247 1,108 188 +31%
Operating cash flow before working capital
changes ** 1,064 1,505 1,686 -37%
Cash flow from operations ** (1,582) 1,420 (306) ns
* Detail of adjustment items shown in the business segment
information annex to financial statements.
** Excluding financial charges, except those related to
leases.
Refining & Chemicals
> Refinery and petrochemicals throughput and utilization
rates
1Q20
vs
Refinery throughput and utilization rate* 1Q20 4Q19 1Q19 1Q19
Total refinery throughput (kb/d) 1,444 1,509 1,862 -22%
France 255 282 592 -57%
Rest of Europe 756 756 823 -8%
Rest of world 433 471 447 -3%
Utlization rate based on crude only** 69% 71% 89%
* Includes refineries in Africa reported in the Marketing &
Services segment.
** Based on distillation capacity at the beginning of the
year.
1Q20
vs
Petrochemicals production and utilization rate 1Q20 4Q19 1Q19 1Q19
Monomers* (kt) 1,386 1,431 1,393 -
Polymers (kt) 1,202 1,169 1,297 -7%
Vapocracker utilization rate** 83% 92% 87%
* Olefins.
** Based on olefins production from steamcrackers and their
treatment capacity at the start of the year.
Refinery throughput volumes decreased by 22% in the first
quarter of 2020 year-on-year, mainly as a result of planned
shutdowns at the Feyzin and Grandpuits refineries in France, Satorp
in Saudi Arabia as well as the shutdown of the distillation unit at
the Normandy platform following an incident at the end of 2019.
Monomer production was stable year-on-year, while polymer
production decreased by 7% due mainly to the closure of the
polystyrene site at El Prat in Spain and a shutdown for planned
maintenance on the Qatofin platform in Qatar.
> Results
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income* 382 580 756 -49%
Organic investments 168 479 240 -30%
Net acquisitions (36) 118 (124) ns
Net investments 132 597 116 +14%
Operating cash flow before working capital
changes ** 674 789 1,104 -39%
Cash flow from operations ** (1,183) 1,142 (538) ns
* Detail of adjustment items shown in the business segment
information annex to financial statements.
** Excluding financial charges, except those related to
leases.
Adjusted net operating income for Refining & Chemicals was
$382 million, down 49% year-on-year. The decrease was mainly due to
a severely degraded global refining environment in the first
quarter, low plant utilization and low demand at the end of the
quarter. The impact of the shutdown of the Normandy distillation
unit is estimated at $100 million for the quarter and $200 million
over the year.
Operating cash flow before working capital changes was $674
million in the first quarter of 2020, down 39% year-on-year for the
same reasons. The difference between this cash flow and the cash
flow from operations is mainly due to the decrease in the value of
inventories linked to the decline in the price of oil.
Marketing & Services
> Petroleum product sales
1Q20
vs
Sales in kb/d* 1Q20 4Q19 1Q19 1Q19
Total Marketing & Services sales 1,656 1,835 1,836 -10%
Europe 906 1,033 1,012 -11%
Rest of world 750 801 824 -9%
* Excludes trading and bulk refining sales
Sales of petroleum products decreased by 10% in the first
quarter 2020, notably due to the impact of Covid-19 on demand,
mainly in China and in France.
> Results
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Adjusted net operating income* 302 474 343 -12%
Organic investments 109 471 80 +36%
Net acquisitions 6 40 (8) ns
Net investments 115 511 72 +60%
Operating cash flow before working capital changes
** 390 716 582 -33%
Cash flow from operations ** (399) 278 232 ns
* Detail of adjustment items shown in the business segment
information annex to financial statements.
** Excluding financial charges, except those related to
leases
Adjusted net operating income was $302 million in the first
quarter 2020, a decrease of 12%, in line with the decrease in
volumes.
Operating cash flow before working capital changes was $390
million in the quarter, down 33% year-on-year.
Group results
> Adjusted net operating income from business segments
Adjusted net operating income from the business segments was
$2,300 million in the first quarter 2020, a decrease of 33%
year-on-year, due to lower Brent prices, natural gas prices and
refining margins as well as the impact of the Covid-19 crisis on
demand.
> Adjusted net income (Group share)
Adjusted net income (Group share) was $1,781 million in the
first quarter 2020, a decrease of 35% year-on-year, due to lower
Brent prices, natural gas prices and refining margins as well as
the impact of the Covid-19 crisis on demand.
Adjusted net income excludes the after-tax inventory effect,
special items and the impact of effects of changes in fair
value(11.)
Total net income adjustments(12) were -$1,747 million in the
first quarter 2020, including -$1,414 million for the after-tax
inventory effect linked to lower oil prices.
The effective tax rate for the Group was 30.0% in the first
quarter 2020, compared to 31.8% in the previous quarter.
> Adjusted fully-diluted earnings per share
Adjusted earnings per share was $0.66 in the first quarter 2020,
a decrease of 36%, calculated on the basis of a weighted average of
2,601 million fully-diluted shares, compared to $1.02 in the first
quarter 2019.
In the framework of the shareholder return policy announced in
February 2018, and the $5 billion buyback program for 2018-2020,
the Group bought back shares at the start of the first quarter,
while oil prices were around 60 $/b. 12.2 million shares were
repurchased in the first quarter 2020 for $0.55 billion. In the
context of the sharp decrease in oil prices, the buyback program
was suspended at the beginning of March.
The number of fully-diluted shares was 2,596 million on March
31, 2020.
> Acquisitions - asset sales
Acquisitions were $1.6 billion in the first quarter 2020,
comprised notably of finalizing the acquisition of 37.4% of Adani
Gas Limited in India and the payment for a second tranche linked to
taking the 10% stake in the Arctic LNG 2 project in Russia.
Asset sales were $542 million in the first quarter 2020,
comprised notably of the sales of Block CA1 in Brunei, the Group's
interest in the Fos Cavaou regasification terminal in France, and
50% of a portfolio of solar and wind assets from Total Quadran in
France.
> Net cash flow
Net cash flow(13) for the Group was $391 million in the first
quarter 2020 in the context of lower prices.
> Profitability
The return on equity was 9.8% for the twelve months ended March
31, 2020.
In millions of
dollars April 1, 2019 January 1, 2019 April 1, 2018
March 31, 2020 December 31, 2019 March 31, 2019
Adjusted net income 11 079 12 090 13 810
Average adjusted
shareholders'
equity 113 607 116 766 118 094
Return on equity
(ROE) 9.8% 10.4% 11.7%
The return on average capital employed was 8.7% for the twelve
months ended March 31, 2020.
In millions of
dollars April 1, 2019 January 1, 2019 April 1, 2018
March 31, 2020 December 31, 2019 March 31, 2019
Adjusted net
operating income 13 032 14 073 15 697
Average capital
employed 150 418 143 674 146 210
ROACE 8.7% 9.8% 10.7%
Total S.A. accounts
Net income for Total S.A., the parent company, was EUR1,718
million in the first quarter 2020 compared to EUR1,391 million a
year ago.
2020 Sensitivities*
Estimated impact Estimated impact
on adjusted net on cash flow from
Change operating income operations
Dollar +/- 0.1 $ per EUR -/+ 0.1 B$ 0 B$
Average liquids
price** +/- 10 $/b +/- 2.9 B$ +/- 3.3 B$
European gas price
- NBP ($/Mbtu) +/- 1 $/Mbtu +/- 0.35 B$ +/- 0.35 B$
Variable cost
margin, European
refining (VCM) +/- 10 $/t +/- 0.5 B$ +/- 0.6 B$
* Sensitivities are revised once per year upon publication of
the previous year's fourth quarter results. Sensitivities are
estimates based on assumptions about the Group's portfolio in 2020.
Actual results could vary significantly from estimates based on the
application of these sensitivities. The impact of the $-EUR
sensitivity on adjusted net operating income is essentially
attributable to Refining & Chemicals. Please find the
indicators detailed page 18.
** In a 60 $/b Brent environment.
Summary and outlook
Since early March, the strong contraction in demand caused by
the Covid-19 crisis has been exacerbated by sustained production,
following the OPEC/non-OPEC meeting held on March 6. Despite the
OPEC+ decision for exceptional production cuts reached during the
April 9-12, 2020 meetings, demand remains well below supply,
leading to overproduction and strong inventory builds. The
anticipated gradual increase in demand linked to the end of the
Covid-19 crisis may not bring a rapid resolution of the oil crisis
given the time required to return inventories to normal levels.
Total faces this period of economic and oil crisis with a low
organic breakeven and a solid balance sheet. The Group reacted to
this new environment with an action plan, which has the objectives
of preserving the value of its assets, maximizing the efficiency of
its expenditures and positioning the Group in the best conditions
to emerge strengthened from this period. All employees are
mobilized in all the segments of the Group.
The Group has therefore decided to reduce net investments by 25%
to $14 billion this year.
Given the less favorable context for Upstream asset sales, the
$5 billion program for 2019-20 is maintained but refocused on
infrastructure and real estate assets. Acquisitions will be
adjusted in light of asset sales finalized within the framework of
the $14 billion net investment.
The 2020 cost savings program has been increased to at least $1
billion, in addition to saving on energy costs by more than $1
billion, notably in Refining & Chemicals.
In Upstream, the Group now anticipates 2020 production of
between 2.95 and 3 Mboe/d, at least a 5% reduction compared to the
previous 2020 forecasts, taking into account the voluntary
reductions in Canada, the exceptional quotas announced by OPEC+,
lower local demand for gas and the situation in Libya.
Confirming its strategy to grow in the integrated gas and
low-carbon electricity chain, the Group maintains its planned
investment level of $1.5 to $2 billion a year in low-carbon
electricity and continues to grow in LNG with the anticipated
start-up of Cameron LNG Train 3. Taking into consideration the
lower demand due to the global economic slowdown, Total anticipates
deferments in LNG uplifts during the second and third quarters of
the year. Furthermore, the decrease in oil prices will negatively
impact the LNG long-term contract prices from the second half.
In the Downstream, refining margins benefit from the low crude
oil price but the significant demand decrease in Europe will weigh
on refinery utilization rates in the coming months. The Group
anticipates an average refinery global utilization rate between
70-75%, compared to 84% in 2019. Petrochemical volumes are not
affected by the crisis and benefit from the drop in raw material
prices thanks to the flexibility of steam-crackers that are able to
adapt feedstocks to market conditions. The Group anticipates that
Marketing & Services sales will return to near-normal levels
once re-opening measures become widespread.
The new measures taken will allow the organic cash breakeven to
remain below $25/b in 2020, thus confirming Total's resilience.
The Group's priority is to generate a level of cash flow that
allows continued investing in profitable projects, to preserve an
attractive return to shareholders and to maintain the strength of
its balance sheet. The strategy successfully deployed during the
2015 crisis around the four priorities of HSE, operational
excellence, cost reduction and cash flow mobilizes all the Group's
teams.
* * * * *
To listen to the presentation by CEO Patrick Pouyanné and CFO
Jean-Pierre Sbraire today at 14:30 (London time) please log on to
total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167
in the United States (code: 5778274). To listen to the replay,
please consult the website or call +44 (0) 333 300 9785 in Europe
or +1 (917) 677 7532 in the United States (code: 5778274).
* * * * *
Operating information by segment
> Group production (Exploration & Production + iGRP)
1Q20
Combined liquids and gas vs
production by region (kboe/d) 1Q20 4Q19 1Q19 1Q19
Europe and Central Asia 1 097 1 102 990 +11%
Africa 701 703 697 +1%
Middle East and North Africa 681 701 686 -1%
Americas 372 368 373 -
Asia-Pacific 235 239 201 +17%
Total production 3 086 3 113 2 946 +5%
includes equity affiliates 753 768 709 +6%
1Q20
vs
Liquids production by region (kb/d) 1Q20 4Q19 1Q19 1Q19
Europe and Central Asia 404 373 352 +15%
Africa 555 560 540 +3%
Middle East and North Africa 516 560 522 -1%
Americas 178 171 177 +1%
Asia-Pacific 47 50 39 +21%
Total production 1 699 1 714 1 629 +4%
includes equity affiliates 214 212 217 -1%
1Q20
vs
Gas production by region (Mcf/d) 1Q20 4Q19 1Q19 1Q19
Europe and Central Asia 3 734 3 887 3 426 +9%
Africa* 746 686 795 -6%
Middle East and North Africa 912 792 905 +1%
Americas 1 092 1 109 1 101 -1%
Asia-Pacific* 1 076 1 089 940 +14%
Total production* 7 560 7 563 7 167 +5%
includes equity affiliates* 2 905 2 961 2 656 +9%
* 1Q19 and 4Q19 data restated
> Downstream (Refining & Chemicals and Marketing &
Services)
1Q20
vs
Petroleum product sales by region (kb/d) 1Q20 4Q19 1Q19 1Q19
Europe 1,771 1,993 2,022 -12%
Africa 683 737 658 +4%
Americas 766 763 839 -9%
Rest of world 444 526 616 -28%
Total consolidated sales 3,663 4,019 4,135 -11%
Includes bulk sales 497 508 557 -11%
Includes trading 1,510 1,676 1,742 -13%
1Q20
vs
Petrochemicals production* (kt) 1Q20 4Q19 1Q19 1Q19
Europe 1,272 1,253 1,416 -10%
Americas 664 630 614 8%
Middle-East and Asia 652 717 660 -1%
* Olefins, polymers
Adjustment items to net income (Group share)
In millions of dollars 1Q20 4Q19 1Q19
Special items affecting net income (Group share) (334) (666) (14)
Gain (loss) on asset sales - - -
Restructuring charges (80) (5) (2)
Impairments - (248) -
Other (254) (413) (12)
After-tax inventory effect : FIFO vs. replacement cost (1,414) 57 388
Effect of changes in fair value 1 44 (22)
Total adjustments affecting net income (1,747) (565) 352
Investments - Divestments
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Organic investments ( a ) 2,523 4,291 2,784 -9%
capitalized exploration 135 136 232 -42%
increase in non-current loans 279 319 130 x2,1
repayment of non-current loans, excluding organic
loan repayment from equity affiliates* (117) (102) (134) ns
change in debt from renewable projects (Group
share) (105) - - ns
Acquisitions ( b ) 1,644 266 669 x2,5
Asset sales ( c ) 542 357 363 +49%
change in debt from renewable projects (partner
share) 61 - - ns
Other transactions with non-controlling interests
( d ) - (11) - ns
Net investments ( a + b - c - d ) 3,625 4,211 3,090 +17%
Organic loan repayment from equity affiliates* ( e
) 7 (275) - ns
Change in debt from renewable projects financing
** ( f ) 166 - - ns
Capex linked to capitalized leasing contracts (g) 24 - - ns
Cash flow used in investing activities ( a + b - c
+ e + f -g) 3,774 3,925 3,090 +22%
* Effective second quarter 2019, organic loan repayments from
equity affiliates are defined as loan repayments from equity
affiliates coming from their cash flow from operations.
** Change in debt from renewable projects (Group share and
partner share).
Cash flow
1Q20
vs
In millions of dollars 1Q20 4Q19 1Q19 1Q19
Operating cash flow before working capital
changes w/o financials charges (DACF) 4,528 7,372 6,536 -31%
Financial charges (512) (533) (503) ns
Operating cash flow before working capital
changes ( a ) 4,016 6,839 6,033 -33%
(Increase) decrease in working capital (884) 46 (2,970) ns
Inventory effect (1,796) (11) 566 ns
capital gain from renewable projects sale (44) - - ns
Organic loan repayment from equity affiliates 7 (275) - ns
Cash flow from operations 1,299 6,599 3,629 -64%
Organic investments ( b ) 2,523 4,291 2,784 -9%
Free cash flow after organic investments,
w/o net asset sales ( a - b ) 1,493 2,548 3,249 -54%
Net investments ( c ) 3,625 4,211 3,090 +17%
Net cash flow ( a - c ) 391 2,628 2,943 -87%
Gearing ratio*
In millions of dollars 03/31/2020 12/31/2019 03/31/2019
Current borrowings 18,521 14,819 13,906
Net current financial assets (6,412) (3,505) (2,722)
Net financial assets classified as held
for sale - 301 227
Non-current financial debt 48,896 47,773 44,396
Hedging instruments of non-current debt (1,133) (912) (637)
Cash and cash equivalents (21,634) (27,352) (25,432)
Net debt (a) 38,238 31,124 29,738
Shareholders' equity - Group share 112,006 116,778 117,993
Non-controlling interests 2,428 2,527 2,365
Shareholders' equity (b) 114,434 119,305 120,358
Net-debt-to-capital ratio = a / (a + b) 25.0% 20.7% 19.8%
Net-debt-to-capital ratio excluding leases 21.3% 16.7% 15.9%
*The net-debt-to-capital ratios include the impact of the new
IFRS 16 rule, effective January 1, 2019.
Return on average capital employed
> Twelve months ended March 31, 2020
Integrated
Exploration Gas,
In millions & Renewables Refining & Marketing &
of dollars Production & Power Chemicals Services Group
Adjusted net
operating
income 6,490 2,710 2,629 1,612 13,032
Capital
employed at
03/31/2019* 90,051 37,235 13,153 8,255 148,463
Capital
employed at
03/31/2020* 85,622 44,236 12,878 8,764 152,374
ROACE 7.4% 6.7% 20.2% 18.9% 8.7%
> Twelve months ended December 31, 2019
Integrated
Exploration Gas,
In millions & Renewables Refining & Marketing &
of dollars Production & Power Chemicals Services Group
Adjusted net
operating
income 7,509 2,389 3,003 1,653 14,073
Capital
employed at
12/31/2018* 89,400 34,746 10,599 6,442 138,519
Capital
employed at
12/31/2019* 88,844 41,549 12,228 8,371 148,828
ROACE 8.4% 6.3% 26.3% 22.3% 9.8%
> Twelve months ended March 31, 2019
Integrated
Exploration Gas,
In millions & Renewables Refining & Marketing &
of dollars Production & Power Chemicals Services Group
Adjusted net
operating
income 8,452 2,530 3,415 1,628 15,697
Capital
employed at
03/31/2018* 93,276 30,996 13,428 7,409 143,957
Capital
employed at
03/31/2019* 90,051 37,235 13,153 8,255 148,463
ROACE 9.2% 7.4% 25.7% 20.8% 10.7%
* At replacement cost (excluding after-tax inventory
effect).
This press release presents the results for the first quarter of
2020 from the consolidated financial statements of TOTAL S.A. as of
March 31, 2020. The limited review procedures by the Statutory
Auditors are underway. The notes to these consolidated financial
statements (unaudited) are available on the TOTAL website
total.com
This document may contain forward-looking information on the
Group (including objectives and trends), as well as forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, notably with respect to the financial
condition, results of operations, business, strategy and plans of
TOTAL.
Such forward-looking information and statements included in this
document are based on a number of economic data and assumptions
made in a given economic, competitive and regulatory environment.
They may prove to be inaccurate in the future, and are subject to a
number of risk factors that could lead to a significant difference
between actual results and those anticipated, the price of
petroleum products, the ability to realize cost reductions and
operating efficiencies without unduly disrupting business
operations, changes in regulations including environmental and
climate, currency fluctuations, as well as economic and political
developments and changes in business conditions. Certain financial
information is based on estimates particularly in the assessment of
the recoverable value of assets and potential impairments of assets
relating thereto.
Neither TOTAL nor any of its subsidiaries assumes any obligation
to update publicly any forward-looking information or statement,
objectives or trends contained in this document whether as a result
of new information, future events or otherwise. Further information
on factors, risks and uncertainties that could affect the Group's
business, financial condition, including its operating income and
cash flow, reputation or outlook is provided in the most recent
Registration Document, the French language version of which is
filed by the Company with the French Autorité des Marchés
Financiers and annual report on Form 20-F/A filed with the United
States Securities and Exchange Commission ("SEC").
Financial information by business segment is reported in
accordance with the internal reporting system and shows internal
segment information that is used to manage and measure the
performance of TOTAL. In addition to IFRS measures, certain
alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described
below (adjusted operating income, adjusted net operating income,
adjusted net income), return on equity (ROE), return on average
capital employed (ROACE), gearing ratio and operating cash flow
before working capital changes. These indicators are meant to
facilitate the analysis of the financial performance of TOTAL and
the comparison of income between periods. They allow investors to
track the measures used internally to manage and measure the
performance of the Group.
These adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain
transactions qualified as "special items" are excluded from the
business segment figures. In general, special items relate to
transactions that are significant, infrequent or unusual. However,
in certain instances, transactions such as restructuring costs or
asset disposals, which are not considered to be representative of
the normal course of business, may be qualified as special items
although they may have occurred within prior years or are likely to
occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and
Marketing & Services segments are presented according to the
replacement cost method. This method is used to assess the
segments' performance and facilitate the comparability of the
segments' performance with those of its competitors.
In the replacement cost method, which approximates the LIFO
(Last-In, First-Out) method, the variation of inventory values in
the statement of income is, depending on the nature of the
inventory, determined using either the month-end price
differentials between one period and another or the average prices
of the period rather than the historical value. The inventory
valuation effect is the difference between the results according to
the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment
item reflects, for some transactions, differences between internal
measures of performance used by TOTAL's management and the
accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair
value using period-end spot prices. In order to best reflect the
management of economic exposure through derivative transactions,
internal indicators used to measure performance include valuations
of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into
storage contracts, whose future effects are recorded at fair value
in Group's internal economic performance. IFRS precludes
recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net
operating income, adjusted net income) are defined as replacement
cost results, adjusted for special items, excluding the effect of
changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings
per share represent dollar amounts converted at the average
euro-dollar (EUR-$) exchange rate for the applicable period and are
not the result of financial statements prepared in euros.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas
companies, in their filings with the SEC, to separately disclose
proved, probable and possible reserves that a company has
determined in accordance with SEC rules. We may use certain terms
in this press release, such as "potential reserves" or "resources",
that the SEC's guidelines strictly prohibit us from including in
filings with the SEC. U.S. investors are urged to consider closely
the disclosure in our Form 20-F/A, File Ndeg 1-10888, available
from us at 2, place Jean Millier -- Arche Nord Coupole/Regnault -
92078 Paris-La Défense Cedex, France, or at our website total.com.
You can also obtain this form from the SEC by calling
1-800-SEC-0330 or on the SEC's website sec.gov.
Total financial statements
First quarter 2020 consolidated accounts, IFRS
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$)(a) 2020 2019 2019
Sales 43,870 49,280 51,205
Excise taxes (5,293) (5,895) (6,081)
Revenues from sales 38,577 43,385 45,124
Purchases, net of inventory
variation (28,068) (28,212) (29,721)
Other operating expenses (6,944) (7,090) (6,725)
Exploration costs (140) (231) (288)
Depreciation, depletion and
impairment of tangible
assets and mineral
interests (3,635) (4,431) (3,466)
Other income 580 428 247
Other expense (420) (235) (209)
Financial interest on debt (569) (606) (561)
Financial income and
expense from cash & cash
equivalents (155) 51 (28)
Cost of net debt (724) (555) (589)
Other financial income 188 143 160
Other financial expense (181) (203) (195)
Net income (loss) from
equity affiliates 732 502 711
Income taxes 37 (852) (1,909)
Consolidated net income 2 2,649 3,140
Group share 34 2,600 3,111
Non-controlling interests (32) 49 29
Earnings per share ($) (0.01) 0.98 1.17
Fully-diluted earnings per
share ($) (0.01) 0.97 1.16
(a) Except for per share
amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2020 2019 2019
Consolidated net income 2 2,649 3,140
Other comprehensive income
Actuarial gains and losses 133 (138) 164
Change in fair value of
investments in equity
instruments (164) 16 33
Tax effect (15) 40 (45)
Currency translation
adjustment generated by the
parent company (1,976) 2,461 (1,531)
Items not potentially
reclassifiable to profit and
loss (2,022) 2,379 (1,379)
Currency translation
adjustment (21) (654) 806
Cash flow hedge (1,524) (24) (127)
Variation of foreign currency
basis spread 56 (49) 11
Share of other comprehensive
income of equity affiliates,
net amount (1,223) 82 388
Other 3 1 1
Tax effect 445 26 38
Items potentially
reclassifiable to profit and
loss (2,264) (618) 1,117
Total other comprehensive
income (net amount) (4,286) 1,761 (262)
Comprehensive income (4,284) 4,410 2,878
Group share (4,171) 4,319 2,840
Non-controlling interests (113) 91 38
CONSOLIDATED BALANCE
SHEET
TOTAL
March 31, 2020 December 31, 2019 March 31, 2019
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 32,823 33,178 28,727
Property, plant and
equipment, net 113,254 116,408 117,881
Equity affiliates :
investments and loans 26,998 27,122 25,996
Other investments 1,660 1,778 1,468
Non-current financial
assets 1,133 912 637
Deferred income taxes 6,694 6,216 6,246
Other non-current
assets 2,537 2,415 2,156
Total non-current
assets 185,099 188,029 183,111
Current assets
Inventories, net 11,556 17,132 17,075
Accounts receivable,
net 18,029 18,488 19,321
Other current assets 19,429 17,013 16,237
Current financial
assets 7,016 3,992 3,373
Cash and cash
equivalents 21,634 27,352 25,432
Assets classified as
held for sale 421 1,288 314
Total current assets 78,085 85,265 81,752
Total assets 263,184 273,294 264,863
LIABILITIES &
SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 8,123 8,123 8,231
Paid-in surplus and
retained earnings 119,935 121,170 123,702
Currency translation
adjustment (14,431) (11,503) (11,606)
Treasury shares (1,621) (1,012) (2,334)
Total shareholders'
equity - Group share 112,006 116,778 117,993
Non-controlling
interests 2,428 2,527 2,365
Total shareholders'
equity 114,434 119,305 120,358
Non-current liabilities
Deferred income taxes 10,462 11,858 11,339
Employee benefits 3,260 3,501 3,150
Provisions and other
non-current
liabilities 19,452 20,613 21,020
Non-current financial
debt 48,896 47,773 44,396
Total non-current
liabilities 82,070 83,745 79,905
Current liabilities
Accounts payable 22,123 28,394 26,416
Other creditors and
accrued liabilities 25,102 25,749 23,361
Current borrowings 18,521 14,819 13,906
Other current financial
liabilities 604 487 651
Liabilities directly
associated with the
assets classified as
held for sale 330 795 266
Total current
liabilities 66,680 70,244 64,600
Total liabilities &
shareholders' equity 263,184 273,294 264,863
CONSOLIDATED STATEMENT OF
CASH FLOW
TOTAL
(unaudited)
1(st) quarter 4(th) quarter 1(st) quarter
(M$) 2020 2019 2019
CASH FLOW FROM OPERATING
ACTIVITIES
Consolidated net income 2 2,649 3,140
Depreciation, depletion,
amortization and impairment 3,730 4,624 3,716
Non-current liabilities,
valuation allowances and
deferred taxes (661) (672) 140
(Gains) losses on disposals
of assets (209) (176) (173)
Undistributed affiliates'
equity earnings (587) 267 (306)
(Increase) decrease in
working capital (884) 46 (2,970)
Other changes, net (92) (139) 82
Cash flow from operating
activities 1,299 6,599 3,629
CASH FLOW USED IN INVESTING
ACTIVITIES
Intangible assets and
property, plant and
equipment additions (2,364) (4,015) (2,704)
Acquisitions of subsidiaries,
net of cash acquired (188) (155) -
Investments in equity
affiliates and other
securities (1,534) (170) (753)
Increase in non-current loans (295) (319) (130)
Total expenditures (4,381) (4,659) (3,587)
Proceeds from disposals of
intangible assets and
property, plant and
equipment 44 301 8
Proceeds from disposals of
subsidiaries, net of cash
sold 142 13 147
Proceeds from disposals of
non-current investments 295 43 208
Repayment of non-current
loans 126 377 134
Total divestments 607 734 497
Cash flow used in investing
activities (3,774) (3,925) (3,090)
CASH FLOW USED IN FINANCING
ACTIVITIES
Issuance (repayment) of
shares:
- Parent company shareholders - 1 1
- Treasury shares (609) (620) (491)
Dividends paid:
- Parent company shareholders (1,882) (1,876) (1,830)
- Non-controlling interests - (1) -
Net issuance (repayment) of
perpetual subordinated notes - - -
Payments on perpetual
subordinated notes (97) (56) (140)
Other transactions with
non-controlling interests (48) 160 (150)
Net issuance (repayment) of
non-current debt 42 84 1,250
Increase (decrease) in
current borrowings 2,785 (1,131) (1,526)
Increase (decrease) in
current financial assets and
liabilities (2,995) (168) 106
Cash flow from (used in)
financing activities (2,804) (3,607) (2,780)
Net increase (decrease) in
cash and cash equivalents (5,279) (933) (2,241)
Effect of exchange rates (439) 831 (234)
Cash and cash equivalents at
the beginning of the period 27,352 27,454 27,907
Cash and cash equivalents at
the end of the period 21,634 27,352 25,432
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL
(unaudited)
Paid-in
surplus
and Currency Shareholders' Total
retained translation equity - Non-controlling shareholders'
Common shares issued earnings adjustment Treasury shares Group Share interests equity
(M$) Number Amount Number Amount
As of January 1,
2019 2,640,602,007 8,227 120,569 (11,313) (32,473,281) (1,843) 115,640 2,474 118,114
Net income of
the first
quarter 2019 - - 3,111 - - - 3,111 29 3,140
Other
comprehensive
income - - 22 (293) - - (271) 9 (262)
Comprehensive
Income - - 3,133 (293) - - 2,840 38 2,878
Dividend - - - - - - - - -
Issuance of
common shares 1,272,267 4 64 - - - 68 - 68
Purchase of
treasury
shares - - - - (8,675,188) (491) (491) - (491)
Sale of treasury
shares(a) - - - - 2,210 - - - -
Share-based
payments - - 11 - - - 11 - 11
Share
cancellation - - - - - - - - -
Net issuance
(repayment) of
perpetual
subordinated
notes - - - - - - - - -
Payments on
perpetual
subordinated
notes - - (75) - - - (75) - (75)
Other operations
with
non-controlling
interests - - - - - - - (150) (150)
Other items - - - - - - - 3 3
As of March 31,
2019 2,641,874,274 8,231 123,702 (11,606) (41,146,259) (2,334) 117,993 2,365 120,358
Net income from
April 1 to
December 31,
2019 - - 8,156 - - - 8,156 142 8,298
Other
comprehensive
income - - (681) 103 - - (578) 59 (519)
Comprehensive
Income - - 7,475 103 - - 7,578 201 7,779
Dividend - - (7,730) - - - (7,730) (115) (7,845)
Issuance of
common shares 25,116,236 70 1,201 - - - 1,271 - 1,271
Purchase of
treasury
shares - - - - (43,714,148) (2,319) (2,319) - (2,319)
Sale of treasury
shares(a) - - (219) - 4,276,738 219 - - -
Share-based
payments - - 196 - - - 196 - 196
Share
cancellation (65,109,435) (178) (3,244) - 65,109,435 3,422 - - -
Net issuance
(repayment) of
perpetual
subordinated
notes - - (4) - - - (4) - (4)
Payments on
perpetual
subordinated
notes - - (278) - - - (278) - (278)
Other operations
with
non-controlling
interests - - 55 - - - 55 108 163
Other items - - 16 - - - 16 (32) (16)
As of December
31, 2019 2,601,881,075 8,123 121,170 (11,503) (15,474,234) (1,012) 116,778 2,527 119,305
Net income of
the first
quarter 2020 - - 34 - - - 34 (32) 2
Other
comprehensive
income - - (1,277) (2,928) - - (4,205) (81) (4,286)
Comprehensive
income - - (1,243) (2,928) - - (4,171) (113) (4,284)
Dividend - - - - - - - - -
Issuance of
common shares - - - - - - - - -
Purchase of
treasury
shares - - - - (13,236,044) (609) (609) - (609)
Sale of treasury
shares(a) - - - - 3,030 - - - -
Share-based
payments - - 31 - - - 31 - 31
Share
cancellation - - - - - - - - -
Net issuance
(repayment) of
perpetual
subordinated
notes - - - - - - - - -
Payments on
perpetual
subordinated
notes - - (72) - - - (72) - (72)
Other operations
with
non-controlling
interests - - (44) - - - (44) (4) (48)
Other items - - 93 - - - 93 18 111
As of March 31,
2020 2,601,881,075 8,123 119,935 (14,431) (28,707,248) (1,621) 112,006 2,428 114,434
(a) Treasury shares related to the restricted stock grants.
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2020 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,582 5,090 18,523 18,675 - - 43,870
Intersegment
sales 5,564 594 6,095 89 28 (12,370) -
Excise taxes - - (650) (4,643) - - (5,293)
Revenues from
sales 7,146 5,684 23,968 14,121 28 (12,370) 38,577
Operating
expenses (3,643) (4,992) (24,841) (13,799) (247) 12,370 (35,152)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (2,644) (334) (395) (244) (18) - (3,635)
Operating income 859 358 (1,268) 78 (237) - (210)
Net income (loss)
from equity
affiliates and
other items 423 399 (57) 10 124 - 899
Tax on net
operating
income (454) 8 335 (32) 28 - (115)
Net operating
income 828 765 (990) 56 (85) - 574
Net cost of net
debt (572)
Non-controlling
interests 32
Net income -
group share 34
Integrated
1(st) quarter Exploration Gas, Refining Marketing
2020 & Renewables & &
(adjustments)(a) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales - 2 - - - - 2
Intersegment
sales - - - - - - -
Excise taxes - - - - - - -
Revenues from
sales - 2 - - - - 2
Operating
expenses (10) (119) (1,589) (346) (55) - (2,119)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests - - - - - - -
Operating income
(b) (10) (117) (1,589) (346) (55) - (2,117)
Net income (loss)
from equity
affiliates and
other items 128 (75) (208) - - - (155)
Tax on net
operating
income 7 44 425 100 - - 576
Net operating
income (b) 125 (148) (1,372) (246) (55) - (1,696)
Net cost of net
debt (101)
Non-controlling
interests 50
Net income -
group share (1,747)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair
value.
(b) Of which
inventory
valuation effect
- On operating
income - - (1,578) (218) -
- On net
operating
income - - (1,285) (154) -
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2020 (adjusted) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,582 5,088 18,523 18,675 - - 43,868
Intersegment
sales 5,564 594 6,095 89 28 (12,370) -
Excise taxes - - (650) (4,643) - - (5,293)
Revenues from
sales 7,146 5,682 23,968 14,121 28 (12,370) 38,575
Operating
expenses (3,633) (4,873) (23,252) (13,453) (192) 12,370 (33,033)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (2,644) (334) (395) (244) (18) - (3,635)
Adjusted
operating
income 869 475 321 424 (182) - 1,907
Net income (loss)
from equity
affiliates and
other items 295 474 151 10 124 - 1,054
Tax on net
operating
income (461) (36) (90) (132) 28 - (691)
Adjusted net
operating
income 703 913 382 302 (30) - 2,270
Net cost of net
debt (471)
Non-controlling
interests (18)
Adjusted net
income - group
share 1,781
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2020 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Total
expenditures 1,659 2,291 226 160 45 4,381
Total divestments 121 344 79 46 17 607
Cash flow from
operating
activities 3,923 (489) (1,183) (399) (553) 1,299
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
Integrated
Exploration Gas, Refining Marketing
4(th) quarter & Renewables & &
2019 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,563 4,292 22,040 21,379 6 - 49,280
Intersegment
sales 8,266 993 7,739 203 47 (17,248) -
Excise taxes - - (765) (5,130) - - (5,895)
Revenues from
sales 9,829 5,285 29,014 16,452 53 (17,248) 43,385
Operating
expenses (4,156) (4,471) (28,084) (15,714) (356) 17,248 (35,533)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (3,307) (488) (351) (263) (22) - (4,431)
Operating income 2,366 326 579 475 (325) - 3,421
Net income (loss)
from equity
affiliates and
other items 166 391 57 15 6 - 635
Tax on net
operating
income (893) 104 (3) (100) (39) - (931)
Net operating
income 1,639 821 633 390 (358) - 3,125
Net cost of net
debt (476)
Non-controlling
interests (49)
Net income -
group share 2,600
Integrated
4(th) quarter Exploration Gas, Refining Marketing
2019 & Renewables & &
(adjustments)(a) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales - 10 - - - - 10
Intersegment
sales - - - - - - -
Excise taxes - - - - - - -
Revenues from
sales - 10 - - - - 10
Operating
expenses (45) (87) 44 (102) (112) - (302)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (525) (136) (9) - - - (670)
Operating income
(b) (570) (213) 35 (102) (112) - (962)
Net income (loss)
from equity
affiliates and
other items (22) (38) (13) (23) - - (96)
Tax on net
operating
income 200 278 31 41 (73) - 477
Net operating
income (b) (392) 27 53 (84) (185) - (581)
Net cost of net
debt (3)
Non-controlling
interests 19
Net income -
group share (565)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair
value.
(b) Of which
inventory
valuation effect
- On operating
income - - 85 (96) -
- On net
operating
income - - 117 (60) -
Integrated
Exploration Gas, Refining Marketing
4(th) quarter & Renewables & &
2019 (adjusted) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,563 4,282 22,040 21,379 6 - 49,270
Intersegment
sales 8,266 993 7,739 203 47 (17,248) -
Excise taxes - - (765) (5,130) - - (5,895)
Revenues from
sales 9,829 5,275 29,014 16,452 53 (17,248) 43,375
Operating
expenses (4,111) (4,384) (28,128) (15,612) (244) 17,248 (35,231)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (2,782) (352) (342) (263) (22) - (3,761)
Adjusted
operating
income 2,936 539 544 577 (213) - 4,383
Net income (loss)
from equity
affiliates and
other items 188 429 70 38 6 - 731
Tax on net
operating
income (1,093) (174) (34) (141) 34 - (1,408)
Adjusted net
operating
income 2,031 794 580 474 (173) - 3,706
Net cost of net
debt (473)
Non-controlling
interests (68)
Adjusted net
income - group
share 3,165
Integrated
Exploration Gas, Refining Marketing
4(th) quarter & Renewables & &
2019 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Total
expenditures 2,633 747 664 571 44 4,659
Total divestments 256 342 69 62 5 734
Cash flow from
operating
activities 4,206 1,527 1,142 278 (554) 6,599
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited)
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2019 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,794 6,419 21,711 21,279 2 - 51,205
Intersegment
sales 7,716 627 8,017 162 27 (16,549) -
Excise taxes - - (776) (5,305) - - (6,081)
Revenues from
sales 9,510 7,046 28,952 16,136 29 (16,549) 45,124
Operating
expenses (4,029) (6,409) (27,334) (15,334) (177) 16,549 (36,734)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (2,529) (315) (374) (233) (15) - (3,466)
Operating income 2,952 322 1,244 569 (163) - 4,924
Net income (loss)
from equity
affiliates and
other items 194 380 149 (10) 1 - 714
Tax on net
operating
income (1,424) (173) (292) (164) 60 - (1,993)
Net operating
income 1,722 529 1,101 395 (102) - 3,645
Net cost of net
debt (505)
Non-controlling
interests (29)
Net income -
group share 3,111
Integrated
1(st) quarter Exploration Gas, Refining Marketing
2019 & Renewables & &
(adjustments)(a) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales - (27) - - - - (27)
Intersegment
sales - - - - - - -
Excise taxes - - - - - - -
Revenues from
sales - (27) - - - - (27)
Operating
expenses - (58) 492 74 - - 508
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests - - - - - - -
Operating income
(b) - (85) 492 74 - - 481
Net income (loss)
from equity
affiliates and
other items - 6 2 - - - 8
Tax on net
operating
income - 16 (149) (22) - - (155)
Net operating
income (b) - (63) 345 52 - - 334
Net cost of net
debt (4)
Non-controlling
interests 22
Net income -
group share 352
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair
value.
(b) Of which
inventory
valuation effect
- On operating
income - - 492 74 -
- On net
operating
income - - 345 52 -
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2019 (adjusted) Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Non-Group sales 1,794 6,446 21,711 21,279 2 - 51,232
Intersegment
sales 7,716 627 8,017 162 27 (16,549) -
Excise taxes - - (776) (5,305) - - (6,081)
Revenues from
sales 9,510 7,073 28,952 16,136 29 (16,549) 45,151
Operating
expenses (4,029) (6,351) (27,826) (15,408) (177) 16,549 (37,242)
Depreciation,
depletion and
impairment of
tangible assets
and mineral
interests (2,529) (315) (374) (233) (15) - (3,466)
Adjusted
operating
income 2,952 407 752 495 (163) - 4,443
Net income (loss)
from equity
affiliates and
other items 194 374 147 (10) 1 - 706
Tax on net
operating
income (1,424) (189) (143) (142) 60 - (1,838)
Adjusted net
operating
income 1,722 592 756 343 (102) - 3,311
Net cost of net
debt (501)
Non-controlling
interests (51)
Adjusted net
income - group
share 2,759
Integrated
Exploration Gas, Refining Marketing
1(st) quarter & Renewables & &
2019 Production & Power Chemicals Services Corporate Intercompany Total
(M$)
Total
expenditures 2,025 1,118 285 144 15 3,587
Total divestments 29 225 169 72 2 497
Cash flow from
operating
activities 3,936 892 (538) 232 (893) 3,629
Reconciliation of the information by business segment with Consolidated
Financial Statements
TOTAL
(unaudited)
Consolidated
1(st) quarter 2020 statement
(M$) Adjusted Adjustments(a) of income
Sales 43,868 2 43,870
Excise taxes (5,293) - (5,293)
Revenues from sales 38,575 2 38,577
Purchases net of inventory
variation (26,107) (1,961) (28,068)
Other operating expenses (6,786) (158) (6,944)
Exploration costs (140) - (140)
Depreciation, depletion and
impairment of tangible assets and
mineral interests (3,635) - (3,635)
Other income 580 - 580
Other expense (191) (229) (420)
Financial interest on debt (567) (2) (569)
Financial income and expense from
cash & cash equivalents (10) (145) (155)
Cost of net debt (577) (147) (724)
Other financial income 188 - 188
Other financial expense (181) - (181)
Net income (loss) from equity
affiliates 658 74 732
Income taxes (585) 622 37
Consolidated net income 1,799 (1,797) 2
Group share 1,781 (1,747) 34
Non-controlling interests 18 (50) (32)
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
Consolidated
1(st) quarter 2019 statement
(M$) Adjusted Adjustments(a) of income
Sales 51,232 (27) 51,205
Excise taxes (6,081) - (6,081)
Revenues from sales 45,151 (27) 45,124
Purchases net of inventory
variation (30,238) 517 (29,721)
Other operating expenses (6,716) (9) (6,725)
Exploration costs (288) - (288)
Depreciation, depletion and
impairment of tangible assets and
mineral interests (3,466) - (3,466)
Other income 200 47 247
Other expense (73) (136) (209)
Financial interest on debt (557) (4) (561)
Financial income and expense from
cash & cash equivalents (28) - (28)
Cost of net debt (585) (4) (589)
Other financial income 160 - 160
Other financial expense (195) - (195)
Net income (loss) from equity
affiliates 614 97 711
Income taxes (1,754) (155) (1,909)
Consolidated net income 2,810 330 3,140
Group share 2,759 352 3,111
Non-controlling interests 51 (22) 29
(a) Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
(1) Definition page 3
(2) Certain transactions referred to in the highlights are
subject to approval by authorities or to other conditions as per
the agreements.
(3) Adjusted results are defined as income using replacement
cost, adjusted for special items, excluding the impact of changes
for fair value; adjustment items are on page 14.
(4) Tax on adjusted net operating income / (adjusted net
operating income -- income from equity affiliates -- dividends
received from investments -- impairment of goodwill + tax on
adjusted net operating income).
(5) In accordance with IFRS rules, adjusted fully-diluted
earnings per share is calculated from the adjusted net income less
the interest on the perpetual subordinated bond
(6) Organic investments = net investments excluding
acquisitions, asset sales and other operations with non-controlling
interests.
(7) Net acquisitions = acquisitions -- assets sales -- other
transactions with non-controlling interests (see page 14).
(8) Net investments = Organic investments + net acquisitions
(see page 14).
(9) Operating cash flow before working capital changes, is
defined as cash flow from operating activities before changes in
working capital at replacement cost, and effective second quarter
2019 including organic loan repayments from equity affiliates, and
effective first quarter 2020 including capital gain from renewable
projects sale. The inventory valuation effect is explained on page
17. The reconciliation table for different cash flow figures is on
page 15.
(10) DACF = debt adjusted cash flow, is defined as operating
cash flow before working capital changes and financial charges.
(11) Adjustment items shown on page 14.
(12) Details shown on page 14 and in the appendix to the
financial statements.
(13) Net cash flow = operating cash flow before working capital
changes - net investments (including other transactions with
non-controlling interests).
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May 05, 2020 06:53 ET (10:53 GMT)
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