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o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
OR | ||
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended December 31, 2004 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to | ||
Commission file number: 1-10888 |
N/A (Translation of registrant’s name into English) | Republic of France (Jurisdiction of incorporation or organization) |
Title of each class | Name of each exchange on which registered | |
Shares | New York Stock Exchange* | |
American Depositary Shares | New York Stock Exchange |
* | Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission. |
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“acreage” | The total area, expressed in acres, over which TOTAL has interests in exploration or production. “Net acreage” is TOTAL’s interest, expressed in acres, in the relevant exploration or production area. | |
“ADRs” | American Depositary Receipts evidencing ADSs. | |
“ADSs” | American Depositary Shares representing the Shares. | |
“barrels” | Barrels of crude oil, including condensate and natural gas liquids. | |
“Company” | TOTAL S.A. and its subsidiaries and affiliates. The terms TOTAL, Company and Group are used interchangeably. | |
“condensate” | Light hydrocarbon substances produced with natural gas which condense into liquid at normal temperatures and pressures associated with surface production equipment. | |
“crude oil” | Crude oil, including condensate and natural gas liquids. | |
“Group” | TOTAL S.A. and its subsidiaries and affiliates. The terms TOTAL, Company and Group are used interchangeably. | |
“LNG” | Liquefied natural gas. | |
“LPG” | Liquefied petroleum gas. | |
“proved reserves” | Proved oil and gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not of escalations based upon future conditions. The full definition of “proved reserves” which we are required to follow in presenting such information in our financial results and elsewhere in reports we file with the Securities and Exchange Commission is found in Rule 4-10 of Regulation S-X under the U.S. Securities Act of 1933, as amended. | |
“proved developed reserves” | Proved developed oil and gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing natural forces and mechanisms of primary recovery are included as “proved developed reserves” only after testing by a pilot project or after the operation of an installed program has confirmed through production response that increased recovery will be achieved. The full definition of “proved developed reserves” which we are required to follow in presenting such information in our financial results and elsewhere in reports we file with the Securities and Exchange Commission is found in Rule 4-10 of Regulation S-X under the U.S. Securities Act of 1933, as amended. | |
“proved undeveloped reserves” | Proved undeveloped oil and gas reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion, but does |
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not include reserves attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir. Reserves on undrilled acreage are limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated with certainty that there is continuity of production from the existing productive formation. The full definition of “proved undeveloped reserves” which we are required to follow in presenting such information in our financial results and elsewhere in reports we file with the Securities and Exchange Commission is found in Rule 4-10 of Regulation S-X under the U.S. Securities Act of 1933, as amended. | ||
“TOTAL” | TOTAL S.A. and its subsidiaries and affiliates. We use such term interchangeably with “Company” and “Group”. When we refer to the parent holding company alone, we use the term “TOTAL S.A.”. | |
“trains” | Facilities for converting, liquefying, storing and off-loading natural gas. | |
“TRCV” | An aggregate margin for topping, reforming, cracking, visbreaking in Western Europe developed and used internally by TOTAL’s management as an indicator of refining margins. |
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b | barrel | k | thousand | |||
cf | cubic feet | M | million | |||
boe | barrel of oil equivalent | B | billion | |||
t | metric ton | W | watt | |||
cm | cubic meter | TWh | terawatt-hour | |||
/y | per year | Wp | watt peak | |||
/d | per day | ppm | parts per million |
1 acre | = 0.405 hectares | |||
1 b | = 42 U.S. gallons | |||
1 boe | = 1 b of crude oil | = 5,483 cf of gas in 2002 5,460 cf of gas in 2003 and 5,497 cf of gas in 2004(1) | ||
1 b/d of crude oil | = approximately 50 t/y of crude oil | |||
1 Bcm/y | = approximately 0.1 Bcf/d | |||
1 cubic meter | = 35.3147 cf | |||
1 kilometer | = approximately 0.62 miles | |||
1 ton | = 1 t | = 1,000 kilograms (approximately 2,205 pounds) | ||
1 ton of crude oil | = 1 t of crude oil | = approximately 7.5b of crude oil (assuming a specific gravity of 37 API) | ||
1 t of LNG | = approximately 8.9 boe | = approximately 48 mcf of gas | ||
1 Mt/y LNG | = approximately 133 Mcf/d |
(1) | Natural gas is converted to barrels of oil equivalent using a ratio of cubic feet of natural gas per one barrel. This ratio is based on the actual average equivalent energy content of the Company’s natural gas reserves during the applicable periods, and is subject to change. The tabular conversion rate is applicable to the Company’s natural gas reserves on a group-wide basis. |
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• | material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals, | |
• | changes in currency exchange rates and currency devaluations, | |
• | the success of the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL, | |
• | uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities, | |
• | uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals, | |
• | changes in the current capital expenditure plans of TOTAL, | |
• | the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies, | |
• | the financial resources of competitors, | |
• | changes in laws and regulations, including environmental laws and industrial safety regulations, | |
• | the quality of future opportunities that may be presented to or pursued by TOTAL, | |
• | the ability to generate cash flows or obtain financing to fund growth and the cost of such financing, | |
• | the ability to obtain governmental or regulatory approvals, | |
• | the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters, | |
• | the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures, | |
• | changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities, | |
• | the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL, and | |
• | the risk that TOTAL will inadequately hedge the price of crude oil or finished products. |
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2004(1) | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||||||||
Amounts in accordance with French GAAP | |||||||||||||||||||||||||
Sales | $ | 165,645 | € | 122,700 | € | 104,652 | € | 102,540 | € | 105,318 | € | 114,557 | |||||||||||||
Operating Income | 21,682 | 16,061 | 12,770 | 10,126 | 12,777 | 14,213 | |||||||||||||||||||
Net income | 12,976 | 9,612 | 7,025 | 5,941 | 7,658 | 6,904 | |||||||||||||||||||
Earnings per Share(2) | 21.07 | 15.61 | 11.06 | 8.92 | 11.05 | 9.76 | |||||||||||||||||||
Amounts in accordance with U.S. GAAP(3) | |||||||||||||||||||||||||
Sales(4) | $ | 135,649 | € | 100,481 | € | 85,585 | € | 84,883 | € | 105,318 | (7) | € | 114,557 | (7) | |||||||||||
Net income(4) | 9,748 | 7,221 | 6,103 | 6,264 | 5,271 | 5,638 | |||||||||||||||||||
Basic earnings per Share | 16.13 | 11.95 | 9.81 | 9.60 | 7.73 | 8.07 | |||||||||||||||||||
Diluted earnings per Share | 16.07 | 11.90 | 9.77 | 9.53 | 7.68 | 8.00 | |||||||||||||||||||
CASH FLOW STATEMENT DATA(5) | |||||||||||||||||||||||||
Amounts in accordance with French GAAP | |||||||||||||||||||||||||
Cash flows provided by operating activities | $ | 19,479 | € | 14,429 | € | 12,487 | € | 11,006 | € | 12,303 | € | 13,389 | |||||||||||||
Investments(6) | 11,702 | 8,668 | 7,728 | 8,657 | 10,566 | 8,339 | |||||||||||||||||||
Amounts in accordance with U.S. GAAP(3) | |||||||||||||||||||||||||
Cash flows provided by operating activities | $ | 18,974 | € | 14,055 | € | 12,144 | € | 10,574 | € | 11,782 | € | 12,935 | |||||||||||||
Investments(6) | 11,197 | 8,294 | 7,385 | 8,225 | 10,045 | 7,885 | |||||||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||||||||||
Amounts in accordance with French GAAP | |||||||||||||||||||||||||
Total assets | $ | 113,617 | € | 84,161 | € | 79,963 | € | 85,329 | € | 88,600 | € | 85,174 | |||||||||||||
Long-term debt | 13,141 | 9,734 | 9,783 | 10,157 | 11,165 | 11,509 | |||||||||||||||||||
Minority interests | 849 | 629 | 664 | 724 | 898 | 755 | |||||||||||||||||||
Shareholders’ equity | 42,201 | 31,260 | 30,406 | 32,146 | 33,932 | 32,401 | |||||||||||||||||||
Amounts in accordance with U.S. GAAP(3) | |||||||||||||||||||||||||
Total assets | $ | 165,020 | € | 122,237 | € | 120,151 | € | 124,873 | € | 128,596 | € | 129,234 | |||||||||||||
Long-term debt | 15,039 | 11,140 | 10,883 | 9,533 | 10,860 | 11,509 | |||||||||||||||||||
Minority interests | 871 | 645 | 666 | 731 | 782 | 684 | |||||||||||||||||||
Shareholders’ equity | 87,896 | 65,108 | 66,527 | 69,096 | 71,260 | 73,355 | |||||||||||||||||||
DIVIDENDS | |||||||||||||||||||||||||
Dividend per share | $ | 7.29 | € | 5.40 | € | 4.70 | € | 4.10 | € | 3.80 | € | 3.30 |
(1) | Translated solely for convenience into dollars at the Noon Buying Rate on December 31, 2004 of $1.35 per 1.00. |
(2) | Earnings per Share were computed based on the fully-diluted weighted average number of Shares of 615,881,456 in 2004, 635,126,885 in 2003, 666,067,982 in 2002, 693,180,285 in 2001 and 707,121,871 in 2000. |
(3) | For information concerning the differences between French GAAP and U.S. GAAP, see Note 3 of the Notes to the Consolidated Financial Statements included elsewhere herein. |
(4) | Results of PetroFina and of Elf Aquitaine have been included under full consolidation. |
(5) | See Consolidated Statement of Cash Flows included in the Consolidated Financial Statements included elsewhere herein. |
(6) | Consists of capital expenditures, exploration costs, subsidiaries acquired and licenses granted. |
(7) | Sales under U.S. GAAP not restated for EITF 02-3 adjustments, see Note 3 paragraph J of the Notes to the Consolidated Financial Statements included elsewhere herein. |
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Year | Average Rate(1) | |||
2000 | $ | 0.92 | ||
2001 | 0.89 | |||
2002 | 0.95 | |||
2003 | 1.13 | |||
2004 | 1.25 |
(1) | The average of the Noon Buying Rate expressed in dollars per euro on the last business day of each full month during the relevant year. |
Period | High | Low | ||||||
October 2004 | 1.28 | 1.23 | ||||||
November 2004 | 1.33 | 1.27 | ||||||
December 2004 | 1.36 | 1.32 | ||||||
January 2005 | 1.35 | 1.30 | ||||||
February 2005 | 1.33 | 1.28 | ||||||
March 2005 | 1.35 | 1.29 |
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• | global and regional economic and political developments in resource-producing regions, particularly in the Middle East; | |
• | global and regional supply and demand; | |
• | the ability of the Organization of Petroleum Exporting Countries (OPEC) and other producing nations to influence global production levels and prices; | |
• | prices of alternative fuels which affect our realized prices under our long-term gas sales contracts; | |
• | governmental regulations and actions; | |
• | global economic conditions; | |
• | cost and availability of new technology; and | |
• | weather conditions. |
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• | unexpected drilling conditions, including pressure or irregularities in geological formations; | |
• | equipment failures or accidents; | |
• | our inability to develop new technologies that permit access to previously inaccessible fields; | |
• | adverse weather conditions; | |
• | compliance with unanticipated governmental requirements; | |
• | shortages or delays in the availability or delivery of appropriate equipment; | |
• | industrial action; and | |
• | problems with legal title. |
• | a decline in the price of oil or gas, making reserves no longer economically viable to exploit and therefore not classifiable as proved; | |
• | an increase in the price of oil or gas, which may reduce the reserves that we are entitled to under production sharing and buy-back contracts; | |
• | changes in tax rules and other government regulations that make reserves no longer economically viable to exploit; | |
• | the quality and quantity of our geological, technical and economic data, which may prove to be inaccurate; | |
• | the actual production performance of our reservoirs; and | |
• | engineering judgments. |
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• | costs to prevent, control, eliminate or reduce certain types of air and water emissions, | |
• | remedial measures related to environmental contamination or accidents at various sites, including those owned by third parties, | |
• | compensation of persons claiming damages caused by our activities or accidents, and | |
• | costs in connection with the dismantling of drilling platforms. |
• | modifying operations, | |
• | installing pollution control equipment, | |
• | implementing additional safety measures, and | |
• | performing site clean-ups. |
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• | the award or denial of exploration and production interests; | |
• | the imposition of specific drilling obligations; | |
• | price and/or production quota controls; | |
• | nationalization or expropriation of our assets; | |
• | cancellation of our license or contract rights; | |
• | increases in taxes and royalties; | |
• | the establishment of production and export limits; | |
• | the renegotiation of contracts; | |
• | payment delays; and | |
• | currency exchange restrictions or currency devaluation. |
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• | Upstream, | |
• | Downstream, and | |
• | Chemicals. |
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Far East | ||||||||||||||||||||||||
Rest | North | and rest | ||||||||||||||||||||||
France | of Europe | America | Africa | of the world | Total | |||||||||||||||||||
(in millions of euros) | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2004 | ||||||||||||||||||||||||
Total sales (excluding sales to other segments) | 23,427 | 41,853 | 17,984 | 5,527 | 33,909 | 122,700 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 5,322 | 14,069 | 3,264 | 7,441 | 8,234 | 38,330 | ||||||||||||||||||
Total expenditures | 1,989 | 1,998 | 755 | 2,004 | 1,922 | 8,668 | ||||||||||||||||||
YEAR ENDED DECEMBER 31, 2003 | ||||||||||||||||||||||||
Total sales (excluding sales to other segments) | 20,739 | 36,682 | 13,968 | 4,352 | 28,911 | 104,652 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 4,987 | 14,288 | 3,676 | 7,108 | 8,244 | 38,303 | ||||||||||||||||||
Total expenditures | 1,160 | 1,645 | 580 | 2,012 | 2,331 | 7,728 | ||||||||||||||||||
YEAR ENDED DECEMBER 31, 2002 | ||||||||||||||||||||||||
Total sales (excluding sales to other segments) | 20,649 | 35,531 | 12,013 | 4,240 | 30,107 | 102,540 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 4,815 | 16,317 | 4,447 | 7,416 | 8,349 | 41,344 | ||||||||||||||||||
Total expenditures | 1,251 | 2,118 | 921 | 2,086 | 2,281 | 8,657 |
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(in millions of euros) | ||||||||||||
Total segment sales (excluding sales to other segments) | 21,995 | 18,704 | 16,225 | |||||||||
Operating income (adjusted for special items) | 12,820 | 10,476 | 9,309 |
(1) | See Notes 4 of the Notes to the Consolidated Financial Statements included in this Annual Report for more detailed information on the Upstream segment together with a breakdown of special items. |
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• | internal peer reviews of technical evaluations also to ensure that the SEC definitions and guidance are followed, and | |
• | a requirement that management make significant funding commitments toward the development of the reserves prior to booking. |
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Liquids | Natural Gas | Combined | ||||||||||
(Mb) | (Bcf) | (Mboe) | ||||||||||
December 31, 2002 | 7,231 | 21,575 | 11,203 | |||||||||
Percent change from December 31, 2001 | 3.9 | % | -1.6 | % | 2.0 | % | ||||||
December 31, 2003 | 7,323 | 22,267 | 11,401 | |||||||||
Percent change from December 31, 2002 | 1.3 | % | 3.2 | % | 1.8 | % | ||||||
December 31, 2004 | 7,003 | 22,785 | 11,148 | |||||||||
Percent change from December 31, 2003 | -4.3 | % | 2.3 | % | -2.2 | % |
(1) | Includes TOTAL’s proportionate share of the proved reserves of equity affiliates and of two companies accounted for by the cost method. See “Supplemental Oil and Gas Information (Unaudited)”, included elsewhere in this report. |
2004 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||
Liquids | Natural Gas | Total | Liquids | Natural Gas | Total | Liquids | Natural Gas | Total | |||||||||||||||||||||||||||||
Consolidated affiliates | (kb/d) | (Mcf/d) | kboe/d | (kb/d) | (Mcf/d) | kboe/d | (kb/d) | (Mcf/d) | kboe/d | ||||||||||||||||||||||||||||
Europe | 424 | 2,218 | 832 | 460 | 2,286 | 880 | 464 | 2,230 | 873 | ||||||||||||||||||||||||||||
France | 9 | 143 | 35 | 10 | 153 | 38 | 11 | 176 | 43 | ||||||||||||||||||||||||||||
Italy | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Netherlands | 1 | 330 | 59 | 1 | 324 | 58 | 1 | 351 | 62 | ||||||||||||||||||||||||||||
Norway | 263 | 775 | 406 | 276 | 703 | 405 | 280 | 651 | 400 | ||||||||||||||||||||||||||||
United Kingdom | 151 | 970 | 332 | 173 | 1,106 | 379 | 171 | 1,052 | 367 | ||||||||||||||||||||||||||||
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2004 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||
Liquids | Natural Gas | Total | Liquids | Natural Gas | Total | Liquids | Natural Gas | Total | |||||||||||||||||||||||||||||
Consolidated affiliates | (kb/d) | (Mcf/d) | kboe/d | (kb/d) | (Mcf/d) | kboe/d | (kb/d) | (Mcf/d) | kboe/d | ||||||||||||||||||||||||||||
Africa | 693 | 440 | 776 | 612 | 404 | 689 | 589 | 374 | 661 | ||||||||||||||||||||||||||||
Algeria | 42 | 160 | 72 | 48 | 194 | 85 | 52 | 205 | 92 | ||||||||||||||||||||||||||||
Angola | 159 | 27 | 164 | 156 | — | 156 | 158 | — | 158 | ||||||||||||||||||||||||||||
Cameroon | 13 | — | 13 | 14 | — | 14 | 15 | — | 15 | ||||||||||||||||||||||||||||
Congo | 87 | 21 | 90 | 91 | — | 91 | 103 | — | 103 | ||||||||||||||||||||||||||||
Gabon | 99 | 27 | 104 | 104 | 9 | 105 | 100 | 8 | 101 | ||||||||||||||||||||||||||||
Libya | 62 | — | 62 | 42 | — | 42 | 36 | — | 36 | ||||||||||||||||||||||||||||
Nigeria | 231 | 205 | 271 | 157 | 201 | 196 | 125 | 161 | 156 | ||||||||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||||||
North America | 16 | 241 | 61 | 4 | 294 | 59 | 5 | 214 | 45 | ||||||||||||||||||||||||||||
United States | 16 | 241 | 61 | 4 | 294 | 59 | 5 | 214 | 45 | ||||||||||||||||||||||||||||
Middle East | 110 | 39 | 117 | 140 | 37 | 146 | 152 | 62 | 163 | ||||||||||||||||||||||||||||
Iran | 26 | — | 26 | 50 | — | 50 | 38 | — | 38 | ||||||||||||||||||||||||||||
Qatar | 31 | 1 | 31 | 29 | 1 | 29 | 34 | 4 | 35 | ||||||||||||||||||||||||||||
Syria | 30 | 32 | 36 | 34 | 36 | 40 | 54 | 58 | 64 | ||||||||||||||||||||||||||||
U.A.E | 16 | 6 | 17 | 19 | — | 19 | 18 | — | 18 | ||||||||||||||||||||||||||||
Yemen | 7 | — | 7 | 8 | — | 8 | 8 | — | 8 | ||||||||||||||||||||||||||||
Asia-Pacific | 31 | 1,224 | 245 | 25 | 1,156 | 232 | 23 | 1,122 | 220 | ||||||||||||||||||||||||||||
Brunei | 3 | 58 | 14 | 2 | 61 | 14 | 1 | 52 | 11 | ||||||||||||||||||||||||||||
Indonesia | 22 | 854 | 177 | 18 | 791 | 168 | 17 | 731 | 154 | ||||||||||||||||||||||||||||
Myanmar | 110 | 14 | — | 132 | 16 | — | 150 | 18 | |||||||||||||||||||||||||||||
Thailand | 6 | 202 | 40 | 5 | 172 | 34 | 5 | 189 | 37 | ||||||||||||||||||||||||||||
South America | 128 | 474 | 213 | 130 | 363 | 196 | 116 | 297 | 170 | ||||||||||||||||||||||||||||
Argentina | 11 | 325 | 70 | 12 | 284 | 64 | 14 | 249 | 59 | ||||||||||||||||||||||||||||
Bolivia | 3 | 82 | 18 | 2 | 51 | 11 | — | 24 | 5 | ||||||||||||||||||||||||||||
Colombia | 24 | 32 | 30 | 32 | 28 | 37 | 39 | 24 | 43 | ||||||||||||||||||||||||||||
Venezuela | 90 | 35 | 95 | 84 | — | 84 | 63 | — | 63 | ||||||||||||||||||||||||||||
CIS | 9 | — | 9 | 8 | — | 8 | 5 | — | 5 | ||||||||||||||||||||||||||||
Russia | 9 | — | 9 | 8 | — | 8 | 5 | — | 5 | ||||||||||||||||||||||||||||
Total consolidated production | 1,411 | 4,636 | 2,253 | 1,379 | 4,540 | 2,210 | 1,354 | 4,299 | 2,137 | ||||||||||||||||||||||||||||
Equity and non-consolidated affiliates | |||||||||||||||||||||||||||||||||||||
Africa | 37 | 4 | 37 | 34 | — | 34 | 10 | — | 10 | ||||||||||||||||||||||||||||
Middle East | 247 | 254 | 295 | 248 | 246 | 295 | 225 | 233 | 269 | ||||||||||||||||||||||||||||
Total equity and non-consolidated affiliates | 284 | 258 | 332 | 282 | 246 | 329 | 235 | 233 | 279 | ||||||||||||||||||||||||||||
Worldwide production | 1,695 | 4,894 | 2,585 | 1,661 | 4,786 | 2,539 | 1,589 | 4,532 | 2,416 | ||||||||||||||||||||||||||||
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Main | ||||||||||||||
Main Group-operated | non-Group-operated | |||||||||||||
Year of entry | producing fields | producing fields | Liquids (L) | |||||||||||
into the country | (Group share %)(1) | (Group share %) | or Gas (G) | |||||||||||
Europe | ||||||||||||||
France | 1939 | Lacq (100.00%) | L, G | |||||||||||
Netherlands | 1964 | F15a (32.47%) | G | |||||||||||
J3a (30.00%) | G | |||||||||||||
K1a (40.10%) | G | |||||||||||||
K4a (50.00%) | G | |||||||||||||
K4b/ K5a (26.06%) | G | |||||||||||||
K5b (25.00%) | G | |||||||||||||
K6/ L7 (56.16%) | G | |||||||||||||
L4a (55.66%) | G | |||||||||||||
Markham unitized field (14.75%) | G | |||||||||||||
Norway | 1965 | Frigg (37.79%)(2) | G | |||||||||||
Skirne (40.00%) | L, G | |||||||||||||
Aasgard (7.65%) | L, G | |||||||||||||
Ekofisk (39.90%) | L, G | |||||||||||||
Eldfisk (39.90%) | L, G | |||||||||||||
Embla (39.90%) | L, G | |||||||||||||
Glitne (21.80%) | L | |||||||||||||
Heimdal (26.33%) | G | |||||||||||||
Hod (25.00%) | L | |||||||||||||
Huldra (24.33%) | L, G | |||||||||||||
Kvitebjorn (5.00%) | L, G | |||||||||||||
Mikkel (7.65%) | L, G | |||||||||||||
Oseberg (10.00%) | L, G | |||||||||||||
Sleipner East (10.00%) | L, G | |||||||||||||
Sleipner West/Alpha North (9.41%) | L, G | |||||||||||||
Snorre (5.95%) | L | |||||||||||||
Statfjord East (2.80%) | L | |||||||||||||
Sygna (2.52%) | L | |||||||||||||
Tor (48.20%) | L, G | |||||||||||||
Tordis (5.60%) | L | |||||||||||||
Troll (3.69%) | L, G | |||||||||||||
Tune (10.00%) | L | |||||||||||||
Vale (24.24%) | L, G | |||||||||||||
Valhall (15.72%) | L | |||||||||||||
Vigdis (5.60%) | L | |||||||||||||
Visund (7.70%) | L, G |
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Main | ||||||||||||||
Main Group-operated | non-Group-operated | |||||||||||||
Year of entry | producing fields | producing fields | Liquids (L) | |||||||||||
into the country | (Group share %)(1) | (Group share %) | or Gas (G) | |||||||||||
United Kingdom | 1962 | Alwyn North, Dunbar, Ellon, Grant, | L, G | |||||||||||
Nuggets (100.00%) | ||||||||||||||
Elgin-Franklin (EFOG 46.17%)(3) | L, G | |||||||||||||
Frigg (39.18%)(2) | G | |||||||||||||
Otter (54.30%) | L | |||||||||||||
Alba (12.65%) | L | |||||||||||||
Armada (12.53%) | G | |||||||||||||
Bruce (43.25%) | L, G | |||||||||||||
Caledonia (12.65%) | L | |||||||||||||
ETAP (Mungo, Monan) (12.43%) | L, G | |||||||||||||
Keith (25.00%) | L, G | |||||||||||||
Markham unitized field (7.35%) | G | |||||||||||||
Nelson (11.53%) | L | |||||||||||||
SW Seymour (25.00%) | L | |||||||||||||
Africa | ||||||||||||||
Algeria | 1952 | |||||||||||||
Hamra (100.00%) | L | |||||||||||||
Ourhoud (18.00%)(4) | L | |||||||||||||
RKF (45.28%)(4) | L | |||||||||||||
Tin Fouye Tabankort (35.00%) | L, G | |||||||||||||
Angola | 1953 | Blocks 3-80 (37.50%), 3-85 and 3-91 (50.00%) | L | |||||||||||
Girassol, Jasmim (Block 17) (40.00%) | L | |||||||||||||
Block 2-85 (27.50%) | L | |||||||||||||
Cabinda (Block 0) (10.00%) | L | |||||||||||||
Kuito (Block 14) (20.00%) | L | |||||||||||||
Cameroon | 1951 | Ekoundou (25.50%) | L | |||||||||||
Kombo (25.50%) | L | |||||||||||||
Mokoko (10.00%) | L | |||||||||||||
Congo | 1928 | Nkossa (51.00%) | L | |||||||||||
Sendji (55.25%) | L | |||||||||||||
Tchendo (65.00%) | L | |||||||||||||
Tchibeli (65.00%) | L | |||||||||||||
Tchibouela (65.00%) | L | |||||||||||||
Yanga (55.25%) | L | |||||||||||||
Loango (50.00%) | L | |||||||||||||
Zatchi (35.00%) | L | |||||||||||||
Gabon | 1928 | Anguille (100.00%) | L | |||||||||||
Atora (40.00%) | L | |||||||||||||
Avocette (57.50%) | L | |||||||||||||
Baudroie Nord (100.00%) | L | |||||||||||||
Gonelle (100.00%) | L | |||||||||||||
Rabi Kounga (47.50%) | L |
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Main | ||||||||||||||
Main Group-operated | non-Group-operated | |||||||||||||
Year of entry | producing fields | producing fields | Liquids (L) | |||||||||||
into the country | (Group share %)(1) | (Group share %) | or Gas (G) | |||||||||||
Libya | 1959 | Al Jurf (37.50%) | L | |||||||||||
Mabruk (75.00%) | L | |||||||||||||
El Sharara (7.50%) | L | |||||||||||||
Nigeria | 1962 | OML 57 (40.00%) | L | |||||||||||
OML 58 (40.00%) | L, G | |||||||||||||
OML 99 Amenam-Kpono (30.40%) | L | |||||||||||||
OML 100 (40.00%) | L | |||||||||||||
OML 102 (40.00%) | L | |||||||||||||
Shell Petroleum | L, G | |||||||||||||
Development Company fields (SPDC 10.00%) | ||||||||||||||
North America | ||||||||||||||
United States | 1964 | Aconcagua (50.00%) | G | |||||||||||
Bethany (94.86%) | G | |||||||||||||
Blue (75.00%) | G | |||||||||||||
Maben (54.07%) | G | |||||||||||||
MacAllen-Pharr (93.90%) | G | |||||||||||||
Matterhorn (100.00%) | L, G | |||||||||||||
Slick Ranch (91.37%) | G | |||||||||||||
Virgo (64.00%) | G | |||||||||||||
Camden Hills (16.67%) | G | |||||||||||||
MacAllen-Ranch (20.02%) | G | |||||||||||||
Canada | 2000 | Surmont (43.50%) | L | |||||||||||
Middle East | ||||||||||||||
Abu Dhabi | 1939 | Abu Al Bu Khoosh (75.00%) | L | |||||||||||
Abu Dhabi offshore (13.33%)(5) | L | |||||||||||||
Abu Dhabi onshore (9.50%)(6) | L | |||||||||||||
Dubai | 1954 | Dubai offshore (27.50%)(7) | L | |||||||||||
Iran | 1954 | Dorood (55.00%)(8) | L | |||||||||||
South Pars 2 & 3 (40.00%)(9) | L, G | |||||||||||||
Balal (46.75%)(10) | L | |||||||||||||
Sirri A & E (60.00%)(11) | L | |||||||||||||
Oman | 1937 | Various fields onshore (4.00%)(12) | L | |||||||||||
Qatar | 1938 | Al Khalij (100.00%) | L | |||||||||||
North Field (20.00%) | L, G | |||||||||||||
Syria | 1988 | Jafra/ Qahar (100.00%)(13) | L | |||||||||||
Deir Ez Zor (50.00%) | L, G | |||||||||||||
Yemen | 1987 | Kharir/ Atuf (28.57%) | L | |||||||||||
Jannah permit (Block 5) (15.00%) | L |
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Main | ||||||||||||||
Main Group-operated | non-Group-operated | |||||||||||||
Year of entry | producing fields | producing fields | Liquids (L) | |||||||||||
into the country | (Group share %)(1) | (Group share %) | or Gas (G) | |||||||||||
Asia-Pacific | ||||||||||||||
Brunei | 1987 | Maharaja Lela Jamalulalam (37.50%) | L, G | |||||||||||
Indonesia | 1968 | Bekapai (50.00%) | L, G | |||||||||||
Handil (50.00%) | L, G | |||||||||||||
Peciko (50.00%) | L, G | |||||||||||||
Tambora/ Tunu (50.00%) | L, G | |||||||||||||
Nilam (9.29%) | G | |||||||||||||
Nilam (10.58%) | L | |||||||||||||
Badak (1.05%) | L, G | |||||||||||||
Myanmar | 1992 | Yadana (31.24%) | G | |||||||||||
Thailand | 1990 | Bongkot (33.33%) | L, G | |||||||||||
South America | ||||||||||||||
Argentina | 1978 | Aguada Pichana (27.27%) | L, G | |||||||||||
Argo (37.50%) | L | |||||||||||||
Canadon Alfa (37.50%) | L | |||||||||||||
Hidra (37.50%) | L | |||||||||||||
San Roque (24.71%) | L, G | |||||||||||||
Bolivia | 1995 | San Alberto (15.00%) | L, G | |||||||||||
San Antonio (15.00%) | L, G | |||||||||||||
Colombia | 1973 | Cupiagua (19.00%) | L | |||||||||||
Cusiana (19.00%) | L, G | |||||||||||||
Venezuela | 1981 | Jusepin (55.00%) | L | |||||||||||
Zuata (Sincor) (47.00%) | L | |||||||||||||
Yucal Placer (69.50%) | G | |||||||||||||
CIS | ||||||||||||||
Russia | 1989 | Kharyaga (50.00%) | L |
(1) | The Group’s interest in the local entity is approximately 100% in all cases except TOTAL Gabon (57.9%), TOTAL E&P Cameroun (75.8%), and certain entities in the UK, Algeria, Abu Dhabi, Iran and Oman (see notes 3 through 12 below). |
(2) | Frigg’s production terminated on October 26, 2004. |
(3) | TOTAL has a 35.8% indirect interest in Elgin Franklin via its participation in EFOG. |
(4) | TOTAL has an indirect 18.0% interest in the Ourhoud field and a 45.3% indirect interest in the RKF field via its participation in CEPSA (equity affiliate). |
(5) | Via ADMA (equity affiliate), TOTAL has a 13.3% interest and participates in the operating company, Abu Dhabi Marine Operating Company. |
(6) | Via ADPC (equity affiliate), TOTAL has a 9.5% interest and participates in the operating company, Abu Dhabi Company for Onshore Oil Operation. |
(7) | TOTAL has a 25.0% indirect interest via Dubai Marine Areas (equity affiliate) plus a 2.5% direct interest via Total E&P Dubai. |
(8) | TOTAL is the operator of the development of Dorood field with a 55.0% interest in the foreign consortium. |
(9) | Following the completion of the development phase, NIOC has taken over the operation of the field. The Group has a 40.0% interest in the foreign consortium. |
(10) | TOTAL has transferred operatorship to NIOC for the Balal field. The Group has a 46.8% interest in the foreign consortium. |
(11) | TOTAL has transferred operatorship to NIOC for the Sirri A & E fields. The Group has a 60.0% interest in the foreign consortium. |
(12) | Via POHOL (equity affiliate), TOTAL has a 4.0% interest in the operator, Petroleum Development Oman LLC. TOTAL also has a 5.54% interest in the Oman LNG facility. |
(13) | Operated by DEZPC which is 50.0% owned by TOTAL and 50.0% owned by SPC. |
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TOTAL | ||||||||||||||||||||
Pipeline(s) | Origin | Destination | % interest | operator | Liquids | Gas | ||||||||||||||
FRANCE(1) | ||||||||||||||||||||
CFM | Network Center West | 45.00 | X | |||||||||||||||||
GSO | Network South West | 70.00 | X | X | ||||||||||||||||
ITALY | ||||||||||||||||||||
SGM | Larino | Collefero | 12.00 | X | ||||||||||||||||
NETHERLANDS | ||||||||||||||||||||
Nogat pipeline | F15A | Den Helder | 23.19 | X | ||||||||||||||||
Oldelamer pipeline | Oldelamer | Garijp Terminal | 42.25 | X | ||||||||||||||||
West Gas Transport | K13A-K4K5 | Den Helder | 4.66 | X | ||||||||||||||||
WGT Extension | Markham | K13-K4K5 | 23.00 | X | ||||||||||||||||
Zuidwal pipeline | Zuidwal | Harlingen Terminal | 42.20 | X | ||||||||||||||||
NORWAY | ||||||||||||||||||||
Frostpipe (inhibited) | Lille-Frigg, Froy | Oseberg | 36.25 | X | ||||||||||||||||
Gassled(2) | 9.04 | X | ||||||||||||||||||
Heimdal to Brae Condensate line | Heimdal | Brae | 16.76 | X | ||||||||||||||||
Kvitebjorn pipeline | Kvitebjorn | Mongstad | 5.00 | X | ||||||||||||||||
Norpipe Oil | Ekofisk treatment center | Teeside (United Kingdom) | 34.93 | X | ||||||||||||||||
Oseberg Transport System | Oseberg, Brage and Veslefrikk | Sture | 8.65 | X | ||||||||||||||||
Sleipner East Condensate Pipe | Sleipner East | Karsto | 10.00 | X | ||||||||||||||||
Troll Oil Pipeline I and II | Troll B and C | Vestprocess at Mongstad Refinery | 3.70 | X | ||||||||||||||||
UNITED KINGDOM | ||||||||||||||||||||
Bruce Liquid Export Line | Bruce | Forties (Unity) | 43.25 | X | ||||||||||||||||
Central Area Transmission System (CATS) | Cats Riser Platform | Teesside | 0.57 | X | ||||||||||||||||
Central Graben Liquid Export Line (LEP) | Elgin Franklin | ETAP | 46.17 | X | X | |||||||||||||||
Frigg System: UK line | Frigg UK, Alwyn North, Bruce, and others | St. Fergus (Scotland) | 100.00 | X | X | |||||||||||||||
Interconnector | Bacton | Zeebrugge (Belgium) | 10.00 | X | ||||||||||||||||
Shearwater Elgin Area Line (SEAL) | Elgin Franklin, Shearwater | Bacton | 25.73 | X | ||||||||||||||||
GABON | ||||||||||||||||||||
Rabi Pipe | Rabi | Cap Lopez Terminal | 100.00 | X | X | |||||||||||||||
UNITED STATES | ||||||||||||||||||||
Canyon Express | Aconcagua | Willams Platform | 25.80 | X | X |
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TOTAL | ||||||||||||||||||||
Pipeline(s) | Origin | Destination | % interest | operator | Liquids | Gas | ||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||
Argentina | ||||||||||||||||||||
Gas Andes | Neuquen Basin (Argentina) | Santiago (Chile) | 56.50 | X | X | |||||||||||||||
TGN | Network (North Argentina) | 19.21 | X | X | ||||||||||||||||
TGM | TGN | Uruguyana (Brazil) | 32.68 | X | X | |||||||||||||||
Bolivia | ||||||||||||||||||||
Transierra | Yacuiba | Rio Grande | 11.00 | X | ||||||||||||||||
TBG | Bolivia-Brazil border | Porto Alegre via Sao Paulo | 9.67 | X | ||||||||||||||||
TSB (project) | TGM (Uruguay) | TBG (Porto Alegre) | 25.00 | X | ||||||||||||||||
Colombia | ||||||||||||||||||||
Ocensa | Cusiana, Cupiagua | Covenas Terminal | 15.20 | X | ||||||||||||||||
Oleoducto de Alta Magdalena | Magdalena media | Vasconia | 1.00 | X | ||||||||||||||||
Oleoducto de Colombia | Vasconia | Covenas | 9.50 | X | ||||||||||||||||
ASIA | ||||||||||||||||||||
Yadana | Yadana (Myanmar) | Ban-I Tong (Thai border) | 31.20 | X | X | |||||||||||||||
REST OF THE WORLD | ||||||||||||||||||||
BTC (project) | Baku (Azerbaijan) | Ceylan (Turkey) | 5.00 | X | ||||||||||||||||
SCP (project) | Bakou (Azerbaijan) | Erzurum (Turkey) | 10.00 | X | ||||||||||||||||
Dolphin (project) | Ras Laffan (Qatar) | Taweelah (U.A.E.) | 24.50 | X |
(1) | See page 28 for a description of the unwinding of certain agreements with Gaz de France |
(2) | Gassled: unitization of Norwegian gas pipelines through a new joint-venture in which TOTAL has an interest of 9.038%. In addition to the direct share in Gassled, TOTAL has a 14.4% interest in the joint-stock company Norsea Gas AS, which holds 3.018% in Gassled. |
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(1) | Natural Gas Information 2004 |
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(2) | World Trade Poten&Partners Yearbook |
(3) | Cogeneration and On-Site Power Production, Volume 4, Number 4, July — August 2003. |
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(4) | Atic Services |
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For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(in millions of euros) | ||||||||||||
Total segment sales (excluding sales to other segments) | 80,640 | 68,658 | 66,984 | |||||||||
Operating income (adjusted for special items) | 3,217 | 1,970 | 909 |
(1) | See Note 4 of the Notes to the Consolidated Financial Statements included in this Annual Report for more detailed information on the Downstream segment together with a breakdown of special items. |
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December 31, | ||||
2004 | ||||
(kb/d)(1) | ||||
Refineries operated by the Company | ||||
Normandy (France) | 328 | |||
Provence (France) | 155 | |||
Flandres (France) | 160 | |||
Donges (France) | 231 | |||
Feyzin (France) | 119 | |||
Grandpuits (France) | 99 | |||
Antwerp (Belgium) | 352 | |||
Leuna (Germany) | 227 | |||
Rome (Italy)(2) | 52 | |||
Immingham (UK) | 223 | |||
Milford Haven (UK)(3) | 73 | |||
Vlissingen (Netherlands)(4) | 84 | |||
Port Arthur (U.S.) | 176 | |||
Sub-total | 2,279 | |||
Other refineries in which the Company has an interest(5) | 413 | |||
Total | 2,692 | |||
(1) | In the case of refineries that are not wholly owned by TOTAL, the indicated capacity represents TOTAL’s proportionate share of the total refining capacity of the refinery. |
(2) | TOTAL interest 57.5%. |
(3) | TOTAL interest 70%. |
(4) | TOTAL interest 55%. |
(5) | 15 refineries in which TOTAL has interests ranging from 16.7% to 55.6% (seven in Africa, four in Spain, one in France, one in Germany, one in Martinique and one in China). |
2004 | 2003 | 2002 | ||||||||||
(kb/d except for %) | ||||||||||||
Motor gasoline | 580 | 584 | 570 | |||||||||
Avgas and jet fuel | 188 | 177 | 179 | |||||||||
Kerosene and diesel fuel | 712 | 724 | 629 | |||||||||
Fuel oils and heating oils | 552 | 535 | 513 | |||||||||
Other products | 419 | 419 | 416 | |||||||||
Total(1) | 2,451 | 2,439 | 2,307 | |||||||||
Utilization rate | 93% | 92% | 88% |
(1) | Includes net share of Cepsa in which the Group has a 45.3% interest. |
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2004 | 2003 | 2002 | ||||||||||
kb/d | ||||||||||||
France | 882 | 917 | 854 | |||||||||
Rest of Europe(1) | 1,505 | 1,509 | 1,477 | |||||||||
United States | 257 | 237 | 159 | |||||||||
Africa | 245 | 232 | 213 | |||||||||
Rest of World | 129 | 87 | 92 | |||||||||
Total excluding Trading | 3,018 | 2,982 | 2,795 | |||||||||
Trading (Balancing and Export Sales) | 753 | 670 | 585 | |||||||||
Total including Trading | 3,771 | 3,652 | 3,380 | |||||||||
(1) | Includes net share in Cepsa, in which the Group has a 45.3% interest. |
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2004 | 2003 | 2002 | ||||||||||
France(1) | 5,626 | 5,917 | 6,172 | |||||||||
Rest of Europe (excluding Cepsa) | 5,003 | 5,196 | 5,526 | |||||||||
Cepsa(2) | 1,697 | 1,710 | 1,603 | |||||||||
Africa | 3,249 | 3,324 | 3,383 | |||||||||
Rest of World | 1,282 | 1,137 | 1,071 | |||||||||
Total | 16,857 | 17,284 | 17,755 | |||||||||
(1) | Revised after integrating third-party networks. Retail stations under the TOTAL and Elf brands, and, in 2004, approximately 2,000 retail stations under the Elan brand. |
(2) | Includes all the retail stations within Cepsa’s network, in which the Group has a 45.3% interest. |
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For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(kb/d, except %) | ||||||||||||
Sales of crude oil | ||||||||||||
Total Sales | 4,720 | 4,713 | 4,630 | |||||||||
Sales to Downstream segment(1) | 2,281 | 2,165 | 2,043 | |||||||||
Sales to external customers | 2,439 | 2,548 | 2,587 | |||||||||
Sales to external customers as a percentage of total sales | 52 | % | 54 | % | 56 | % | ||||||
Supply of crude oil | ||||||||||||
Total supply | 4,720 | 4,713 | 4,630 | |||||||||
Produced by the Group(2)(3) | 1,686 | 1,608 | 1,571 | |||||||||
Purchased from external suppliers | 3,034 | 3,105 | 3,059 | |||||||||
Production by the Group as a percentage of total supply | 36 | % | 34 | % | 34 | % |
(1) | Excludes share of Cepsa, in which TOTAL has a 45.3% interest. |
(2) | Includes condensates and natural gas liquids. |
(3) | Includes TOTAL’s proportionate share of the production of equity affiliates. |
(5) | Source: Oil Market Report, January 2005 |
(6) | OPEC is made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, The United Arab Emirates and Venezuela. |
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2004 | 2003 | min 2004 | max 2004 | |||||||||||||||||||||||||
Brent IPE — 1st line | $ | /b | 38.04 | 28.48 | 28.83 | (February | ) | 51.56 | (October | ) | ||||||||||||||||||
Diesel IPE — 1st line | $ | /t | 348 | 250 | 247 | (February | ) | 493 | (October | ) | ||||||||||||||||||
VLCC Ras Tanura Chiba — BITR | $ | /t | 20.0 | 12.1 | 9.8 | (March | ) | 45.0 | (November | ) |
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(in millions of euros) | ||||||||||||
Sales (excluding intra-group sales) | 20,042 | 17,260 | 19,317 | |||||||||
Operating income (adjusted for special items) | 1,086 | 558 | 777 |
(1) | See Note 4 of the Notes to the Consolidated Financial Statements included in this Annual Report for more detailed information on the Chemicals segments together with a breakdown of special items. |
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Main product groups | Major Applications | |
Base petrochemicals | ||
Olefins | ||
Ethylene | Production of polyethylene, vinyl chloride monomer, styrene, functional polymers and copolymers | |
Propylene | Production of polypropylene, acrylic acid, Oxo-alcohols | |
Butadiene | Production of lactame 12, polybutadiene, elastomers | |
Aromatics | ||
Benzene | Production of styrene, cyclohexane, chlorobenzenes | |
Toluene | Production of chemical intermediates and solvents | |
Xylenes | Production of phtalic anhydride, terephtalic acid (PTA), solvents | |
Polyethylene | Packaging and packaging films, cables, pipes and tubes, blow molded bottles, fuel tanks, automobile parts | |
Polypropylene | Packaging, containers, automobile parts, household and sanitary goods, electrical appliances and fibers | |
Styrenics | ||
Styrene | Production of polystyrene, ABS, emulsions, resins, plastic additives | |
Polystyrene | Packaging, audio-video, microcomputers, TV and electrical appliances | |
Elastomers | Bitumen modification, footwear, plastic modification, adhesives | |
Fertilizers | Nitrogen and complex fertilizers, urea, industrial products | |
Chlorochemicals | ||
Vinyl chloride monomer | Production of polyvinylchloride | |
Caustic soda | Chemicals, alumina, pulp and paper, detergents and soaps | |
Polyvinylchloride (PVC) | Housing and decorative coatings, automotive industry, pipes, tubes and profiles | |
Chlorinated solvents and chloromethanes | Solvents and raw material in fluorinated products |
Main product groups | Major Applications | |
Acrylics | Resins, emulsion resins for adhesives, paints and coatings, superabsorbents, methylmethacrylate (MMA) monomers for PMMA (polymethylmethacrylate) | |
PMMA | Acrylic glass used in construction, the automotive industry, advertising signs, and the decoration and manufacture of sanitary sheets | |
Thiochemicals | Agrochemical and pharmaceutical intermediates, polymerization agents and additives, gas odorants | |
Fluorinated industrial gases | Refrigeration, air conditioning, foam blowing agents, intermediates | |
Oxygenated products | Hydrogen peroxide (pulp and paper bleaching, textile, electronics and water treatment), chlorate, hydrazine hydrates and derivatives |
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Main product groups | Major Applications | |
Engineering polymers | Engineering polymers including polyamides used in the automotive industry, in the space, aviation and electronic industries and for the manufacture of hot-melts and of protective coatings for pipes and tubes and fluoropolymers used in construction, chemical engineering, protective paints and coatings and for the protective coatings of off-shore pipes | |
Plastic additives | Stabilizers and impact modifiers used in polymer conversion | |
Specialty products | Gas and liquid separation, adsorption/filtration, specialty surfactants | |
Organic peroxides | Polymerization catalysts for polyethylene, PVC, polystyrene, cross-linking agents | |
Agrochemicals | Pre-harvest pesticide market (fungicides, insecticides, herbicides) post-harvest products such as coatings, waxes, fungicides and cleaners, tin intermediates segments | |
Formaldehyde resins | Glues and resins and corresponding precursors such as formaldehyde specialties |
Main product groups | Major Applications | |
Rubber processing | Rubber parts for the automobile, transportation and aviation industries (transmission systems, antivibration systems, fluid transfer parts, body sealings, precisions sealings, consumer products)(Hutchinson) | |
Resins | Polyester resins and gel coats for boats, truck parts, sanitary and leisure, UV/ EB resins for coatings, resins and emulsions for paints, inks, varnishes and adhesives(Cray Valley, Sartomer and Cook Composites Polymers) | |
Adhesives | Construction, timber, packaging, do-it-yourself, non-woven fabrics(Bostik) | |
Electroplating | Decoration and protection of metal and plastic parts, plating in the electronic industry (PCBs, chip carriers, etc.)(Atotech) |
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North | Asia and the | |||||||||||||||
Europe | America | Middle East(1) | Worldwide | |||||||||||||
(in thousands of tons per year) | ||||||||||||||||
Olefins | 5,265 | 1,125 | 665 | 7,055 | ||||||||||||
Aromatics | 2,550 | 925 | 565 | 4,040 | ||||||||||||
Polyethylene | 1,440 | 410 | 280 | 2,130 | ||||||||||||
Polypropylene | 1,160 | 1,000 | 145 | 2,305 | ||||||||||||
Styrenics(2) | 1,390 | 1,205 | 515 | 3,110 | ||||||||||||
Vinyl chloride monomer (VCM) | 1,030 | — | 50 | 1,080 | ||||||||||||
Polyvinyl chloride (PVC) | 960 | — | — | 960 |
(1) | Including minority stakes in Qatar and 50% of Samsung-Total Petrochemicals capacities in Daesan (South Korea). |
(2) | Styrene, polystyrene and elastomers. |
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• | the award of exploration and production interests, | |
• | the imposition of specific drilling obligations, | |
• | environmental protection controls, | |
• | control over the development and abandonment of a field causing restrictions on production, and | |
• | possible, though exceptional, nationalization, expropriation or cancellation of contract rights. |
• | increases in taxes and royalties, | |
• | the establishment of production and export limits, | |
• | the renegotiation of contracts, | |
• | the expropriation or nationalization of assets, | |
• | risks relating to changes of local governments and resulting changes in business customs and practices, | |
• | payment delays, | |
• | currency exchange restrictions, | |
• | depreciation of assets due to the devaluation of local currencies or other measures taken by governments that might have a significant impact on the value of activities, and | |
• | losses and impairment of operations by armed conflicts and actions of terrorist groups. |
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• | The directive for a system of Integrated Pollution Prevention and Control (IPPC), a cost/benefit framework used to assess environmental quality standards of, and place potential emissions limits on, large industrial plants, including our refineries and chemical sites. | |
• | Air Quality Framework Directive and related directives on ambient air quality assessment and management, which, among other things, limit emissions for sulfur dioxide, oxides of nitrogen, particulate matter, lead, carbon monoxide, benzene and ozone. | |
• | The Sulfur Content Directive, under which sulfur in diesel fuel is limited to 0.2% beginning July 2000, and 0.1% beginning January 2008. Beginning January 2003, sulfur in heavy fuel oil is limited to 1%, with certain exceptions for combustion plants provided that local air quality standards are met. | |
• | The Large Combustion Plant Directive, a directive which limits certain emissions from large combustion plants, including sulfur dioxide, nitrogen oxides and particulates; this directive will become effective in 2008. | |
• | Automobile emission directives which control and limit exhaust emissions from cars and other motor vehicles. Under these directives, emission controls will continue to become more stringent over time. |
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From 2005, maximum sulfur levels for gasoline and diesel fuels are 50 ppm and, from 2009, a maximum sulfur content of 10 ppm will be mandatory throughout the EU. | ||
• | The directive, adopted in September 2003, implementing the Kyoto Protocol within the European Union by establishing a system for greenhouse gas emissions quotas. This system, which entered into effect in January 2005, requires the Member States of the European Union to prepare quotas for industrial activities, in particular the energy sector, and to deliver carbon dioxide emissions permits based on these quotas. | |
• | The Major Hazards Directive, which requires emergency planning, public disclosure of emergency plans and ensuring that hazards are assessed, and effective emergency management systems. | |
• | The Framework Directive on Waste Disposal, intended to ensure that waste is recovered or disposed of without endangering human health and without using processes or methods which could unduly harm the environment. Numerous related directives regulate specific categories of waste. | |
• | Maritime oil spill directives, a number of which were passed in the wake of the Erika spill. The regulations coming into effect in the next few years require that tankers have double hulls and mandate improvements to navigation practices in the English channel. | |
• | Numerous water directives impose water quality standards based on the various uses of surface and coastal waters, including ground water, by setting limits on the discharges of many dangerous substances and by imposing information gathering and reporting requirements. | |
• | Adopted and effective in 2003, a comprehensive framework water directive has begun progressively replacing the numerous existing directives with a comprehensive set of requirements, including additional regulation obliging member countries to classify all water courses according to their biological, chemical and ecological quality; and to completely ban the discharges of approximately 30 toxic substances by 2017. | |
• | Numerous directives regulating the classification, labeling and packaging of chemical substances and their preparation as well as restricting and banning the use of certain chemical substances and products. The European Commission is still in the process of adopting a new system for Registration, Evaluation and Authorization of Chemicals (REACH) which will partially replace or complement the existing rules in this area. REACH is expected to require the registration of up to 100,000 chemicals, including intermediaries and polymers. In depth economic studies are currently underway to evaluate the costs to the chemicals industry of implementing this new system. |
• | The Comprehensive Environmental Response, Compensation, and Liability Act (also known as CERCLA or Superfund), under which waste generators, site owners, facility operators and certain other parties can be strictly liable for the entire cost of remediating sites contaminated by spills or waste |
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disposal regardless of fault or the amount of waste sent to the site. Additionally, each state has laws similar to CERCLA. | ||
• | Maritime oil spill laws and regulations, particularly the Oil Pollution Act of 1990 which was passed in the wake of the Exxon Valdez spill and which significantly increases oil spill prevention requirements, spill response planning obligations and spill liability for tankers and barges transporting oil, offshore oil platform facilities and onshore terminals. | |
• | The Clean Air Act and its regulations, which require, among other things, new fuel specifications and sulphur reductions, enhanced monitoring of major sources of specified pollutants; stringent air emission limits and new operating permits for chemical plants, refineries, marine and distribution terminals; and risk management plans for the storage of hazardous substances. | |
• | The Clean Water Act, which regulates the discharge of wastewater and other pollutants from both onshore and offshore operations and, among other things, requires industrial facilities to obtain permits for most surface water discharges, install control equipment, implement operational controls and preventative measures, including spill prevention and control plans and control stormwater runoff. | |
• | The Resource Conservation and Recovery Act (RCRA) regulates the storage, handling, treatment, transportation and disposal of hazardous and non-hazardous wastes and imposes corrective action requirements on regulated activities which mandate the investigation and remediation of potentially contaminated areas at these facilities. |
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• | define scenarios of major disaster risks by analyzing those events whose consequences would be the most significant for third parties, for employees and for the Group; | |
• | assess the potential financial impact on the Group in case these disasters occur; | |
• | implement measures to limit the possibility such events occur and the scope of damage in case of their occurrence; and | |
• | manage the level of risk from such events that is covered internally by the Group and that which is transferred to the insurance market. |
• | Tort liability: since the maximum financial risk cannot be evaluated using a systemic approach, the amounts insured are based on market conditions and industry practice, in particular, the oil industry. The insurance cap in 2004 for general tort and product liability was $840 million. | |
• | Property: the amounts insured by sector and by site are based on estimated costs and reconstruction scenarios under the identified worst-case disaster scenarios and on insurance market conditions. |
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• | Loss of operations: coverage is provided for the Refining and Chemicals sectors for a compensation period of 3 years (Refining) or 2 years (Chemicals), also based on the identified worst-case disaster scenarios and on insurance market conditions. The Group negotiates combined limits for property and loss of operations. |
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(7) | Special items are items, which, because of their particular nature or significance, are monitored at the Group level and excluded from the business segment figures. For more information on special items, see “— Results by Business Segment 2004-2002” below. |
(8) | Net income under U.S. GAAP was 7,221 M€ in 2004 compared to 6,103 M€ in 2003 and 6,264 M€ in 2002. For all periods presented, the difference in net income under French GAAP and under U.S. GAAP reflected the difference in accounting treatment primarily of crude oil and refined products inventories, derivative instruments and hedging activities, goodwill and purchase accounting with respect to the acquisition of control of Elf Aquitaine and PetroFina. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these differences. |
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(9) | Total expenditures include intangible assets and property, plant and equipment additions; exploration costs directly charged to expenses; acquisitions of subsidiaries, net of cash acquired; investments in equity affiliates and other securities; and increases in long-term loans. |
(10) | For a discussion of the risks and uncertainties related to these targets and expectations, see “Cautionary Statement Concerning Forward-Looking Statements”. |
(11) | For more information on ROACE, see “— Results by Business Segment 2004-2002”. |
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(12) | Subject to market conditions and after complying with applicable provisions for notification and consultation with labor representatives. |
(13) | The payment and amount of dividends are subject to the recommendation of the Board of Directors and resolution by the Company’s shareholders at an annual ordinary general shareholders meeting. For more information, see “Item 8. Financial Information — Dividend Policy”. |
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— | The well has found a sufficient quantity of reserves to justify, if appropriate, its completion as a producing well, assuming that the required capital expenditure is made; and | |
— | Satisfactory progress toward ultimate development of the reserves is being achieved, with the Company making sufficient progress assessing the reserves and the economic and operating viability of the project. |
The Company evaluates the progress made on the basis of regular project reviews which take into account the following factors: |
— | First, if additional exploratory drilling or other exploratory activities (such as seismic work or other significant studies) are either underway or firmly planned, the Company deems there to be satisfactory progress. For these purposes, exploratory activities are considered firmly planned only if they are included in the Company’s three-year exploration plan/budget. At December 31, 2004, the Company had capitalized 172 M€ of exploratory drilling costs on this basis. | |
— | In cases where exploratory activity has been completed, the evaluation of satisfactory progress takes into account indicators such as the fact that costs for development studies are incurred in the current period, or that governmental or other third-party authorizations are pending or that the availability of capacity on an existing transport or processing facility awaits confirmation. At December 31, 2004, exploratory drilling costs capitalized on this basis amounted to 41 M€ and mainly related to two projects. |
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Shareholders’ | Net | |||||||||
equity | income | |||||||||
January 1, 2004 | 2004 | |||||||||
(billions of euros) | ||||||||||
French GAAP | 30.4 | 9.6 | ||||||||
Inventories/replacement cost (note 1) | 1.0 | 0.5 | ||||||||
Treasury shares (note 2) | (1.4 | ) | ||||||||
Employee benefits (note 3) | (0.5 | ) | ||||||||
Fixed assets | ||||||||||
— Component based-approach (note 4.1) | 0.2 | |||||||||
— Impairment of assets (note 4.2) | (0.3 | ) | (0.1 | ) | ||||||
— Goodwill amortization (note 5.1) | 0.2 | |||||||||
Financial instruments IAS 39 (note 4.3) | 0.1 | |||||||||
Share based payments (note 5.2) | (0.1 | ) | ||||||||
Equity-method affiliates’ IFRS restatements (note 5.3) | (0.1 | ) | 0.8 | |||||||
Other adjustments (note 4) | (0.2 | ) | ||||||||
IFRS | 29.2 | 10.9 | ||||||||
— | offsetting currency translation adjustment (CTA) against retained earnings, | |
— | recording unrecognized net actuarial losses and gains through retained earnings, | |
— | non-restatement of business combinations that occurred before January 1, 2004. |
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• | Publicly-traded equity securities |
Publicly-traded equity securities are classified as “available for sale” and are therefore valued at fair value. Changes in fair value of these securities are recorded through shareholders’ equity. |
• | Derivatives |
Derivatives are now recorded in the balance sheet whereas they were treated as off-balance sheet commitments under French GAAP. | |
Derivatives (combined interest rate and exchange swap contracts) associated with debenture loans are recognized as hedging instruments. The debenture loans and the hedging derivatives are valued at fair value. Fair value changes offset each other and have no material impact on earnings. | |
Other derivatives instruments (interest rate and exchange swaps, futures, options) are recorded at fair value, and fair value changes are recognized as income or loss. |
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Special | |||||||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Items | Total | ||||||||||||||||||||
(in millions of euro) | |||||||||||||||||||||||||
2004 | |||||||||||||||||||||||||
Total sales | 21,995 | (1) | 80,640 | (1) | 20,042 | (1) | 23 | (1) | 122,700 | (2) | |||||||||||||||
Operating Income | 12,820 | (3) | 3,217 | (3) | 1,086 | (3) | (215 | )(3) | (847 | ) | 16,061 | ||||||||||||||
Total Expenditures | 6,170 | 1,516 | 905 | 77 | 8,668 | ||||||||||||||||||||
2003 | |||||||||||||||||||||||||
Total sales | 18,704 | (1) | 68,658 | (1) | 17,260 | (1) | 30 | (1) | 104,652 | (2) | |||||||||||||||
Operating Income | 10,476 | (3) | 1,970 | (3) | 558 | (3) | (209 | )(3) | (25 | ) | 12,770 | ||||||||||||||
Total Expenditures | 5,302 | 1,235 | 1,115 | 76 | 7,728 | ||||||||||||||||||||
2002 | |||||||||||||||||||||||||
Total Sales | 16,225 | (1) | 66,984 | (1) | 19,317 | (1) | 14 | (1) | 102,540 | (2) | |||||||||||||||
Operating Income | 9,309 | (3) | 909 | (3) | 777 | (3) | (210 | )(3) | (659 | ) | 10,126 | ||||||||||||||
Total Expenditures | 6,122 | 1,112 | 1,237 | 186 | 8,657 |
(1) | Total segment sales excluding sales to other segments. |
(2) | Total sales excluding intersegment sales. |
(3) | Adjusted for special items. |
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ROACE | Upstream | Downstream | Chemicals | |||||||||
2004 | 35 | % | 25 | % | 8.5%(1 | ) | ||||||
2003. | 29 | % | 15 | % | 4%(1 | ) | ||||||
2002. | 23 | % | 8 | % | 5%(1 | ) |
(1) | Excluding amortization of goodwill in the Chemicals segment for amounts of 85 M€ in 2004, 107 M€ in 2003, and 131 M€ in 2002. |
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(14) | Net income under U.S. GAAP was 7,221 M€ in 2004 compared to 6,103 M€ in 2003 and 6,264 M€ in 2002. For all periods presented, the difference in net income under French GAAP and under U.S. GAAP reflected the difference in accounting treatment primarily of crude oil and refined products inventories, derivative instruments and hedging activities, goodwill and purchase accounting with respect to the acquisition of control of Elf Aquitaine and PetroFina. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these differences. |
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(15) | Net income under U.S. GAAP decreased to 6,103 M€ in 2003 from 6,264 M€ in 2002. The difference in net income under French GAAP and under U.S. GAAP reflected the difference in accounting treatment primarily of crude oil and refined products inventories, derivative instruments and hedging activities, goodwill and purchase accounting with respect to the acquisition of control of Elf Aquitaine and PetroFina. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these differences. |
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Payment due by period | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
1 year | 1-3 years | 3-5 years | 5 years | Total | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Long-term debt obligations(1) | — | 2,578 | 3,919 | 2,912 | 9,409 | |||||||||||||||
Short-term debt obligations(2) | 1,765 | — | — | — | 1,765 | |||||||||||||||
Capital (finance) lease obligations(3) | 52 | 91 | 85 | 231 | 459 | |||||||||||||||
Asset retirement obligations(4) | 166 | 260 | 214 | 2,694 | 3,334 | |||||||||||||||
Operating lease obligations | 203 | 285 | 173 | 327 | 988 | |||||||||||||||
Purchase obligations(5) | 1,077 | 1,346 | 1,239 | 3,861 | 7,523 | |||||||||||||||
Total | 3,263 | 4,560 | 5,630 | 10,025 | 23,478 | |||||||||||||||
(1) | Long-term debt obligations excluding capital lease obligations of 325 M€. |
(2) | The current portion of long-term debt of 1,765 M€ is included in the item “Short-term borrowings and bank overdrafts” of the balance sheet and excludes the short-term portion of capital lease obligations of 30 M€. |
(3) | Capital (finance) lease obligations & Operating lease obligations: the Group leases real estate, service stations, ships, and other equipment through non-cancelable capital and operating leases. These amounts represent the future minimum lease payments on non-cancelable leases to which the Group is committed as of December 31, 2004. |
(4) | The discounted present value of upstream asset retirement obligations, primarily asset removal costs at the completion date. |
(5) | Purchase obligations are obligations under contractual agreements to purchase goods or services, including capital projects, that are enforceable and legally binding on the company, and that specify all significant terms, including the amount and the timing of the payments. These obligations include mainly: hydrocarbon unconditional purchase contracts (except where an active, highly-liquid market exists and which are expected to be re-sold shortly after purchase), booking of transport capacities in pipelines, unconditional exploration works and development works in Upstream, and contracts for capital investment projects in Downstream. This disclosure does not include contractual exploration obligations with host states where a monetary value is not attributed, purchases of booking capacities in pipelines where the Group has a participation superior to the capacity used, and purchase obligation commitments on fields where the Group is not the operator. |
• | Exploration and Production technology to allow access, at acceptable costs, to new energy resources (high pressure/high temperature, deep offshore, heavy crude oils, polyphasic transportation of acidic gas) as well as environment-friendly technologies such as reduction of greenhouse gas emissions, containment of acidic gas emissions and efficient use of water in the upstream industrial process. | |
• | Refining technology to allow the identification, anticipation and the reduction of constraints linked to the operation of facilities, the evolution of specifications and the control of environmental emissions, and marketing technology allowing the creation of innovative products representing sales opportunities. | |
• | Chemical processes to increase competitiveness, quality, safety and respect of the environment, in particular on the following themes: new catalysis technology, new polymerization technologies, new products (polymers, elastomers, anti-vibrating systems, new coatings) as well as nano-technology. |
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Number of | ||||||||||||||||||
Director | Term | Principal Business Activities Outside | Shares | |||||||||||||||
Name | Since | Expires | Age | of the Company | Owned | |||||||||||||
Thierry Desmarest, Chairman | 1995 | 2007 | 59 | Chairman and Chief Executive Officer of TOTAL S.A.(5)(6). Director of Sanofi-Aventis(5)(6) (pharmaceuticals). Member of the Supervisory Board of Air Liquide(5) (industrial and medical gases and related services) and of Areva(5) (nuclear power). Chairman and Chief Executive Officer of Elf Aquitaine. | 58,300 |
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Number of | ||||||||||||||||||
Director | Term | Principal Business Activities Outside | Shares | |||||||||||||||
Name | Since | Expires | Age | of the Company | Owned | |||||||||||||
Daniel Boeuf | 2004 | 2007 | 56 | Director of Training and Skills Management, Specialties sector, TOTAL France. Chairman of the Supervisory Board of the Total Actionnariat France employee investment fund. | 1,223 | (7) | ||||||||||||
Daniel Bouton(1) | 1997 | 2006 | 54 | Chairman and Chief Executive Officer of Société Genérale(5) (retail, corporate and investment bank). Director of Schneider Electric S.A.(5) (electrical distribution, industrial control and automation), of Arcelor(5) (steel production, distribution, transformation and trading), and of Veolia Environnement(5)(6) (environmental services). | 800 | |||||||||||||
Bertrand Collomb | 2000 | 2006 | 62 | Chairman of the Board of Lafarge(5)(6) (construction materials). Director of Vivendi Universal(5)(6) (media and telecommunications) and of Unilever (5)(6) (foods, home care and personal care). | 1,178 |
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Number of | ||||||||||||||||||
Director | Term | Principal Business Activities Outside | Shares | |||||||||||||||
Name | Since | Expires | Age | of the Company | Owned | |||||||||||||
Paul Desmarais Jr.(2) | 2002 | 2005 | 50 | Chairman of the Board and Co-chief Executive Officer of Power Corporation of Canada(6) (management and holding company, financial services and communications sectors). Vice-Chairman and Acting Managing Director of Pargesa Holding (holding company, media, energy, water, waste services and specialty minerals sectors). Vice-Chairman of the Supervisory Board of Imerys(5) (minerals processing). Member of the Board of Directors and of the Management Committee of Great West(6) (Canada) (financial services holding company, life and health insurance, investment and retirement savings and reinsurance businesses), of Groupe Bruxelles Lambert(5) (Belgium) (holding company, industrial companies of diversified sectors), and of the London Insurance Group Inc. (insurance). Director of Suez(5)(6) (energy, environment, water and waste services). | 500 | |||||||||||||
Jacques Friedmann(3) | 2000 | 2006 | 72 | Director of BNP Paribas(5) (retail, corporate and investment banking) and of LVMH(5) (luxury goods). | 1,519 | |||||||||||||
Bertrand Jacquillat | 1996 | 2005 | 60 | University Professor. Co-founder and Chairman and Chief Executive Officer of Associés en Finance (financial analysis and valuation). Member of the Supervisory Board of Klépierre(5) (commercial real estate management). | 900 | |||||||||||||
Antoine Jeancourt-Galignani | 1994 | 2006 | 68 | Former Chairman of Assurances Générales de France(5) (insurance). Chairman of the Board of Gecina(5) (real estate) and of the Supervisory Board of Euro Disney SCA(5) (operator of Disneyland Resort Paris). Director of Société Générale(5) (retail, corporate and investment banking) and of Kaufman & Broad(5) (residential and commercial development and construction). | 1,085 |
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Number of | ||||||||||||||||||
Director | Term | Principal Business Activities Outside | Shares | |||||||||||||||
Name | Since | Expires | Age | of the Company | Owned | |||||||||||||
Anne Lauvergeon(4) | 2000 | 2006 | 45 | Chairman of the Management Board of Areva(5) (nuclear power and connectors). Director of Suez(5)(6) (energy, environment, water and waste services). Vice-Chairman of the Supervisory Board of Sagem(5) (communications). | 500 | |||||||||||||
Maurice Lippens | 2003 | 2005 | 61 | Chairman of Fortis(5) (banking, insurance and investment services). Director of Suez-Tractebel (energy and power), of Groupe Bruxelles Lambert(5) (holding company for industrial companies in diversified sectors) and of Belgacom(5) (telecommunications). | 800 | |||||||||||||
Michel Pébereau(3) | 2000 | 2006 | 62 | Chairman of BNP Paribas(5) (retail, corporate and investment banking). Director of Lafarge(5)(6) (construction materials) and of Saint-Gobain(5) (producer, processor and distributor of materials). Member of the Supervisory Board of AXA(5)(6) (insurance, asset management and financial services). President of the European Banking Federation (professional organization). | 589 | |||||||||||||
Thierry de Rudder(2) | 1999 | 2007 | 55 | Acting Managing Director of Groupe Bruxelles Lambert(5) (holding company for industrial companies in diversified sectors). Director of Suez (energy, environment, water, waste services and power). Member of the Supervisory Board of Imerys(5) (minerals processing). | 989 | |||||||||||||
Jürgen Sarrazin | 2000 | 2006 | 69 | Former Chairman of the Management Board of Dresdner Bank (commercial and investment banking). | 1,477 | |||||||||||||
Serge Tchuruk | 1989 | 2007 | 67 | Chairman and Chief Executive Officer of Alcatel(5)(6) (communications). Director of Thales(5) (defense, aerospace and information technology). | 24,574 |
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Number of | ||||||||||||||||||
Director | Term | Principal Business Activities Outside | Shares | |||||||||||||||
Name | Since | Expires | Age | of the Company | Owned | |||||||||||||
Pierre Vaillaud | 2000 | 2006 | 70 | Former Chairman and Chief Executive Officer of Elf Aquitaine and of Technip. Director of Technip(5)(6) (engineering, technological and construction services in the oil and gas and petrochemical sectors). Member of the Supervisory Board of Cegelec (energy and electrical power, automation, instrumentation and control systems, information and communication technologies) and of Oddo Pinatton (independent brokerage company). | 500 |
(1) | Mr. Bouton is Chairman and Chief Executive Officer of Société Générale, which, to the Company’s knowledge, owns 0.1% of the Company’s shares and 0.1% of the voting rights. Mr. Bouton disclaims beneficial ownership of such shares. |
(2) | Messrs. de Rudder and Desmarais Jr are Managing Director and Director, respectively, of Bruxelles Lambert Group (Belgium), which, to the Company’s knowledge, owns 3.7% of the Company’s shares and 6.9% of the voting rights. Messrs. de Rudder and Desmarais Jr disclaim beneficial ownership of such shares. |
(3) | Messrs. Pébereau and Friedmann are Chairman and Chief Executive Officer, and Director, respectively, of BNP Paribas, which, to the Company’s knowledge, owns 0.2% of the Company’s shares and 0.4% of the voting rights. Messrs. Pébereau and Friedmann disclaim beneficial ownership of such shares. |
(4) | Ms. Lauvergeon is Chairman of the Managing Board of Areva, which, to the Company’s knowledge, owns 0.3% of the Company’s shares and 0.6% of the voting rights. Ms. Lauvergeon disclaims beneficial ownership of such shares. |
(5) | Listed on Euronext. |
(6) | Listed on the New York Stock Exchange. |
(7) | Corresponding to 1,220 shares of the TOTAL Actionnariat France employee investment fund, each of which corresponds to approximately one TOTAL share. |
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Name | Position | Officer Since | ||||
Thierry Desmarest | Chairman and Chief Executive Officer of TOTAL | 1989 | ||||
François Cornélis* | Executive Vice-President of TOTAL, and President of Chemicals | 1999 | ||||
Robert Castaigne | Executive Vice-President of TOTAL, and Chief Financial Officer | 1990 | ||||
Yves-Louis Darricarrère | Executive Vice-President of TOTAL, and President of Gas & Power | 2000 | ||||
Christophe de Margerie | Executive Vice-President of TOTAL, and President of Exploration & Production | 1992 | ||||
Jean-Paul Vettier | Executive Vice-President of TOTAL, and President of Refining & Marketing | 1990 | ||||
Bruno Weymuller | Executive Vice-President of TOTAL, and President of Strategy and Risk Assessment | 2000 | ||||
Michel Bénézit | Senior Vice-President, Northern Europe, Exploration & Production | 1995 | ||||
Philippe Boisseau | Senior Vice-President, Middle East, Exploration & Production | 2005 | ||||
Alain Champeaux | Senior Vice-President, Overseas, Refining & Marketing | 1999 | ||||
Pierre-Christian Clout | Senior Vice-President, Chairman and CEO of Hutchinson, Mapa Spontex | 2002 | ||||
Jean-Claude Company | Senior Vice-President, Refining, Refining & Marketing | 1995 | ||||
Jean-Pierre Cordier | Senior Vice-President, Executive Career Management | 2004 | ||||
Jean-Michel Gires | Senior Vice-President, Sustainable Development and Environment | 2003 | ||||
Philippe Goebel | Senior Vice-President, Performance Products, Arkema | 2002 | ||||
François Groh | Senior Vice-President, President of Trading-Shipping | 2002 | ||||
Jean-Jacques Guilbaud | Senior Vice-President, Human Resources and Corporate Communications | 1998 | ||||
Ian Howat | Senior Vice-President, Corporate Strategy | 1995 | ||||
Jean-Marc Jaubert | Senior Vice-President, Industrial Safety | 2004 | ||||
Pierre Klein | Senior Vice-President, Administration, Refining & Marketing | 2002 | ||||
Patrick de la Chevardière | Senior Vice-President, Deputy Chief Financial Officer | 2005 | ||||
Jean-Bernard Lartigue | Senior Vice-President, President TOTAL Petrochemicals | 2000 |
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Name | Position | Officer Since | ||||
Thierry Le Hénaff | Senior Vice-President, Chairman and CEO of Arkema | 2004 | ||||
Jean-Marie Masset | Senior Vice-President, Geosciences, Exploration & Production | 2002 | ||||
Charles Mattenet | Senior Vice-President, Strategy, Business Development, Research, Exploration & Production | 2002 | ||||
Eric de Menten | Senior Vice-President, Marketing Europe, Refining & Marketing | 2002 | ||||
Jean Privey | Senior Vice-President, Africa, Exploration & Production | 2002 | ||||
André Tricoire | Senior Vice-President, Marketing France, Refining & Marketing | 2000 | ||||
Hugues Woestelandt | Senior Vice-President, Specialties & Fertilizers, Chemicals | 1998 | ||||
Charles Paris de Bollardière | Treasurer | 1999 |
* | Vice-Chairman of the Executive Committee. |
• | a fixed amount of 15,000 euros per director (paidprorata temporisin case of a change during the period); | |
• | an amount of 4,500 euros per director for each meeting of the Board of Directors, of the Audit Committee or of the Nominating & Compensation Committee attended. |
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Director | 2004 Compensation | |||
(€) | ||||
Thierry Desmarest | 2,787,239 | |||
Daniel Boeuf | 128,260 | (1) | ||
Daniel Bouton | 37,500 | |||
Bertrand Collomb | 42,000 | |||
Paul Desmarais Jr. | 37,500 | |||
Jacques Friedmann | 82,500 | |||
Bertrand Jacquillat | 78,000 | |||
Antoine Jeancourt-Galignani | 46,500 | |||
Anne Lauvergeon | 42,000 | |||
Maurice Lippens | 37,500 | |||
Michel Pébereau | 51,000 | |||
Thierry de Rudder | 82,500 | |||
Jürgen Sarrazin | 46,500 | |||
Serge Tchuruk | 46,500 | |||
Pierre Vaillaud | 46,500 |
(1) | This amount corresponds to the salary received by Mr. Boeuf as an employee of the Group. |
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• | Appoints the corporate officers responsible for managing the Company and supervises their management; | |
• | Defines TOTAL’s strategy; | |
• | Discusses and debates major transactions under consideration by the Group, according to the criteria determined by the Board; | |
• | Receives information on any significant event pertaining to the operations of the Company; | |
• | Oversees the quality of the information supplied to shareholders and the financial markets through the financial statements that it approves and the annual report, or when major transactions are conducted; | |
• | Calls and sets the agenda of shareholders meetings; | |
• | Prepares a list each year of the directors it deems to be independent under generally accepted corporate governance criteria; and | |
• | Performs audits and inspections as it may deem appropriate. |
• | Proper delegation of powers and authority within the Company as well as proper exercise of the respective powers and responsibilities of the Company’s governing bodies; | |
• | That no person has the power to bind the Company without proper supervision and control; | |
• | The proper functioning of the organizations responsible for internal control and the satisfactory execution by the external auditors of their missions; and | |
• | The proper functioning of the committees that it has created. |
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• | Recommending the appointment of auditors and their compensation and ensuring their independence; | |
• | Establishing the rules for the use of auditors for non-audit services; | |
• | Examining the accounting policies used in preparing financial statements, examining the parent company annual financial statements and the consolidated annual, semi-annual, and quarterly financial statements prior to their examination by the Board, having regularly examined the financial situation, cash flows and obligations of the Group; | |
• | Evaluating internal control procedures and ensuring the implementation and proper functioning of the disclosure committee, including reviewing the reports of this committee; | |
• | Approving the scope of the annual audit work of internal and external auditors; |
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• | Examining internal audit reports and other reports (external auditors, annual report, etc.), supervising compliance with the code of ethics for financial officers; | |
• | Evaluating delegations of authority and risk monitoring and oversight procedures; | |
• | Evaluating the choice of appropriate accounting principles and methods; | |
• | Examining the policy for the use of derivatives products; | |
• | Issuing an opinion regarding major transactions contemplated by the Group; and | |
• | Annually reviewing significant litigation. |
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• | Recommend to the Board of Directors the persons that are qualified to be appointed as directors or corporate officers and to prepare the corporate governance rules and regulations that are applicable to the Company; and | |
• | Review and examine the executive compensation policies implemented in the Group and the compensation of members of the Executive Committee, recommend the compensation of the Chief Executive Officer, and prepare any report that the Company must submit on these subjects. |
• | With respect to nominations: |
• | Assists the Board in the selection of directors, corporate officers, and directors as committee members. | |
• | Recommends annually to the Board the list of directors who may be considered as “independent directors” of the Company. |
• | With respect to compensation: |
• | Makes recommendations and proposals to the Board regarding: |
• | Compensation, the retirement and pension system, in-kind benefits, and other financial benefits of the executive directors of TOTAL S.A., including retirement. | |
• | Allocations of stock subscription or purchase options and specifically allocations to individual executive directors. |
• | Examines the compensation of members of the Executive Committee, including stock option plans and plans based on movements in share price (“equity-based plans”), retirement and pension systems, and benefits in-kind. |
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Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
2004 | 14,597 | 34,045 | 61,570 | 1,189 | 111,401 | |||||||||||||||
2003 | 14,017 | 34,410 | 61,212 | 1,144 | 110,783 | |||||||||||||||
2002 | 14,019 | 35,054 | 71,268 | 1,128 | 121,469 |
Rest of | Rest of | |||||||||||||||
France | Europe | the World | Total | |||||||||||||
2004 | 49,174 | 29,711 | 32,516 | 111,401 | ||||||||||||
2003 | 49,637 | 30,128 | 31,018 | 110,783 | ||||||||||||
2002 | 52,915 | 37,584 | 30,970 | 121,469 |
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1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | ||||||||||||||||||||||||||
Purchase | Purchase | Purchase | Purchase | Purchase | Subscription | Subscription | ||||||||||||||||||||||||||
Plan | Plan | Plan | Plan | Plan | Plan | Plan | Total | |||||||||||||||||||||||||
Exercise price (in euros) | 93.76 | 113.00 | 162.70 | 168.20 | 158.30 | 133.20 | 159.40 | |||||||||||||||||||||||||
Expiration date | 03/17/2006 | 06/15/2007 | 07/11/2008 | 07/10/2009 | 07/09/2010 | 07/16/2011 | 07/20/2012 | |||||||||||||||||||||||||
Options granted prior to January 1, 2004 | 134,700 | 213,000 | 245,800 | 304,850 | 332,300 | 355,500 | — | 1,586,150 | ||||||||||||||||||||||||
Outstanding options as of January 1, 2004 | 90,700 | 198,000 | 245,800 | 304,850 | 332,300 | 355,500 | — | 1,527,150 | ||||||||||||||||||||||||
Options granted in fiscal year 2004 | — | — | — | — | — | — | 418,500 | 418,500 | ||||||||||||||||||||||||
Options exercised in fiscal year 2004 | 54,049 | 35,805 | 0 | 0 | 0 | 0 | 0 | 89,854 | ||||||||||||||||||||||||
Outstanding options as of December 31, 2004 | 36,651 | 162,195 | 245,800 | 304,850 | 332,300 | 355,500 | 418,500 | 1,855,796 | ||||||||||||||||||||||||
Options exercised between January 1 and February 28, 2005 | 1,488 | 10,150 | 0 | 0 | 0 | 0 | 0 | 11,638 | ||||||||||||||||||||||||
Outstanding options as of February 28, 2005 | 35,163 | 152,045 | 245,800 | 304,850 | 332,300 | 355,500 | 418,500 | 1,844,158 |
(1) | Executive officers as of December 31, 2004. |
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1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | ||||||||||||||||||||||||||
Purchase | Purchase | Purchase | Purchase | Purchase | Subscription | Subscription | ||||||||||||||||||||||||||
Plan | Plan | Plan | Plan | Plan | Plan | Plan | Total | |||||||||||||||||||||||||
Exercise price (in euros) | 93.76 | 113.00 | 162.70 | 168.20 | 158.30 | 133.20 | 159.40 | |||||||||||||||||||||||||
Expiration date | 03/17/2006 | 06/15/2007 | 07/11/2008 | 07/10/2009 | 07/09/2010 | 07/16/2011 | 07/20/2012 | |||||||||||||||||||||||||
Options granted prior to January 1, 2004 | 30,000 | 40,000 | 50,000 | 75,000 | 60,000 | 60,000 | — | 315,000 | ||||||||||||||||||||||||
Outstanding options as of January 1, 2004 | 30,000 | 40,000 | 50,000 | 75,000 | 60,000 | 60,000 | — | 315,000 | ||||||||||||||||||||||||
Options granted in fiscal year 2004 | — | — | — | — | — | — | 60,000 | 60,000 | ||||||||||||||||||||||||
Options exercised in fiscal year 2004 | 30,000 | 22,000 | 0 | 0 | 0 | 0 | 0 | 52,000 | ||||||||||||||||||||||||
Outstanding options as of December 31, 2004 | 0 | 18,000 | 50,000 | 75,000 | 60,000 | 60,000 | 60,000 | 323,000 | ||||||||||||||||||||||||
Options exercised between January 1 and February 28, 2005 | — | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Outstanding options as of February 28, 2005 | — | 18,000 | 50,000 | 75,000 | 60,000 | 60,000 | 60,000 | 323,000 |
1997 | 1998 | 1999 | 1998 | |||||||||||||||||
Plan | Plan | Plan n°1 | MTI Plan | Total | ||||||||||||||||
Exercise price per Elf Aquitaine share (in euros) | 80,65 | 105,95 | 115,60 | 105,95 | ||||||||||||||||
Expiration date | 03/25/2004 | 03/31/2005 | 03/30/2009 | 03/31/2005 | ||||||||||||||||
Options granted | 26,750 | 29,050 | 18,190 | 83,505 | 157,495 | |||||||||||||||
Outstanding options as of January 1, 2004 | 2,250 | 17,240 | 18,190 | 75,351 | 113,031 | |||||||||||||||
Options exercised in fiscal year 2004 | 2,250 | 15,850 | 7,800 | 54,273 | 80,173 | |||||||||||||||
Outstanding options as of December 31, 2004 | 0 | 1,390 | 10,390 | 21,078 | 32,858 | |||||||||||||||
Options exercised between January 1 and February 28, 2005 | — | 1,000 | 1,495 | 13,207 | 15,702 | |||||||||||||||
Outstanding options as of February 28, 2005 | — | 390 | 8,895 | 7,871 | 17,156 | |||||||||||||||
Corresponding number of TOTAL shares(1) | — | 570 | 13,000 | 11,504 | 25,074 |
(1) | Assumes the maximum number of shares are exchanged (19 TOTAL shares for 13 Elf Aquitaine shares). |
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Number of Shares Subject to | ||||||||||||||||
Date of Board of | Outstanding Unexercised | Exercise | ||||||||||||||
Directors’ Meeting | Options as of February 28, 2005 | Price | Expiration Date | |||||||||||||
1997 Authorization | March 17, 1998 | 333,118 | 93.76 | March 17, 2006 | ||||||||||||
June 15, 1999 | 904,480 | 113.00 | June 15, 2007 | |||||||||||||
July 11, 2000 | 2,393,795 | 162.70 | July 11, 2008 | |||||||||||||
2001 Authorization | July 10, 2001 | 2,677,600 | 168.20 | July 10, 2009 | ||||||||||||
July 9, 2002 | 2,861,128 | 158.30 | July 9, 2010 | |||||||||||||
July 16, 2003 | 2,932,256 | 133.20 | July 16, 2011 | |||||||||||||
2004 Authorization | July 20, 2004 | 3,359,630 | 159.40 | July 20, 2012 |
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Price Per Share | ||||||||||
High | Low | |||||||||
2000 | 189.00 | 118.50 | ||||||||
2001 | 179.80 | 126.00 | ||||||||
2002 | 179.40 | 121.20 | ||||||||
2003 | 147.90 | 110.50 | ||||||||
First Quarter | 142.70 | 110.50 | ||||||||
Second Quarter | 138.80 | 116.60 | ||||||||
Third Quarter | 144.20 | 127.70 | ||||||||
Fourth Quarter | 147.90 | 129.20 | ||||||||
2004 | 171.80 | 139.40 | ||||||||
First Quarter | 154.70 | 139.40 | ||||||||
Second Quarter | 164.50 | 146.90 | ||||||||
Third Quarter | 171.80 | 153.60 | ||||||||
Fourth Quarter | 170.60 | 157.30 | ||||||||
October | 170.60 | 161.40 | ||||||||
November | 168.30 | 162.80 | ||||||||
December | 166.20 | 157.30 | ||||||||
2005 (through April 15) | 184.10 | 158.00 | ||||||||
First Quarter | 184.10 | 158.00 | ||||||||
January | 165.90 | 158.00 | ||||||||
February | 182.30 | 165.10 | ||||||||
March | 184.10 | 177.40 | ||||||||
Second Quarter | 185.00 | 176.50 | ||||||||
April | 185.00 | 176.50 |
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Price Per ADS | ||||||||||
High | Low | |||||||||
2000 | 81.25 | 61.13 | ||||||||
2001 | 77.84 | 58.10 | ||||||||
2002 | 83.24 | 60.30 | ||||||||
2003 | 93.47 | 60.95 | ||||||||
First Quarter | 75.10 | 60.95 | ||||||||
Second Quarter | 81.79 | 64.26 | ||||||||
Third Quarter | 79.83 | 72.27 | ||||||||
Fourth Quarter | 93.47 | 76.39 | ||||||||
2004 | 110.56 | 87.76 | ||||||||
First Quarter | 95.46 | 87.76 | ||||||||
Second Quarter | 99.67 | 89.75 | ||||||||
Third Quarter | 105.56 | 93.54 | ||||||||
Fourth Quarter | 110.56 | 101.39 | ||||||||
October | 105.48 | 101.39 | ||||||||
November | 110.50 | 103.48 | ||||||||
December | 110.56 | 104.48 | ||||||||
2005 (through April 15) | 122.75 | 103.73 | ||||||||
First Quarter | 122.75 | 103.73 | ||||||||
January | 109.11 | 103.73 | ||||||||
February | 120.06 | 107.80 | ||||||||
March | 122.75 | 115.12 | ||||||||
Second Quarter | 119.99 | 112.00 | ||||||||
April | 119.99 | 112.00 |
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• | Shares held by the Company or entities controlled by the Company, which cannot be voted; | |
• | Shares held by shareholders who paid in-kind, which cannot be voted with respect to resolutions relating to contribution in-kind; and | |
• | Shares held by interested parties, which cannot be voted with respect to resolutions relating to such shareholders. |
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• | negotiable outside France; | |
• | transmission by delivery; and | |
• | fungibility of the TOTAL share certificate, which may be converted freely from bearer form to registration in an account. |
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• | before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York in writing that it or its customer owns the shares or ADRs to be deposited; | |
• | the pre-release must be fully collateralized with cash or other collateral that The Bank of New York considers appropriate; and | |
• | The Bank of New York must be able to close out the pre-release on not more than five business days’ notice. |
• | convert all cash dividends and other cash distributions that it receives on the underlying deposited securities into dollars; and | |
• | distribute the amount received net of any expense, taxes, governmental charges incurred by the depositary in connection with the conversion, to the holders of the ADRs in proportion to the number of the ADSs representing shares held by each holder. |
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• | any cash dividend or other cash distribution becomes payable or any distribution other than cash is made; | |
• | rights are issued with respect to the underlying deposited securities; | |
• | for any reason the depositary causes, at the Company’s election, a change in the number of shares represented by each ADS; or | |
• | the depositary receives notice of any meeting of holders of the shares, |
• | a summary in English of the notice of such meeting; | |
• | a statement that the holders of ADRs at the close of business on a specified record date will be entitled, subject to any applicable provisions of French Company Law, the Company’sstatutsand the shares, to instruct the depositary to exercise the voting rights, if any, pertaining to the shares represented by their ADSs; | |
• | summaries in English of any materials or other documents provided by the Company for the purpose of enabling holders of the ADRs to exercise voting rights; and | |
• | a statement as to the manner in which instructions for exercising voting rights may be given to the depositary, including a statement as to the manner in which the shares with respect to which the depositary does not receive properly completed voting instructions or receives a blank proxy will be voted, and stating the date established by the depositary for the receipt of those instructions. |
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• | imposes or increases any fees or charges, other than taxes and other governmental charges, registration fees, cable, telex, or facsimile transmission costs, deliver costs or other such expenses; or | |
• | which otherwise prejudices any substantial existing rights of holders of the ADRs, |
• | surrender of the holder’s ADRs at the Corporate Trust Office; | |
• | payment of the fees of the depositary for the surrender of the ADRs provided in the deposit agreement; | |
• | payment of any applicable taxes and governmental charges; and | |
• | be entitled to delivery, to the holder or upon his or her order, of the amount of deposited TOTAL securities represented by the ADRs. |
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• | continue to collect dividends and other distributions pertaining to the underlying deposited securities; | |
• | sell rights as provided in the deposit agreement; and | |
• | continue to deliver the underlying deposited securities, together with any dividends or other distributions received, and the net proceeds of the sale of any rights or other property, in exchange for surrendered ADRs after deducting, in each case, fees and expenses of the depositary for the surrender of the ADRs, expenses for the account of the holders of the ADRs in accordance with the provisions of the deposit agreement, and taxes and governmental charges. |
• | the underlying deposited securities and any other property represented by the ADSs; and | |
• | hold the net proceeds, together with any other cash then held, unsegregated and without liability for interest, for the pro rata benefit of the holders of the ADRs that have not been surrendered, in which case, the holders will become general creditors of the depositary with respect to such proceeds. |
• | taxes and other governmental charges; | |
• | any applicable registration fees for the registration of transfers of shares generally on the share register of the Company and applicable to transfers of shares to the name of the depositary or the custodian on the making of deposits or withdrawals under the deposit agreement; | |
• | any cable, telex and facsimile charges provided in the deposit agreement; | |
• | and expenses incurred by the depositary in the conversion of foreign currency pursuant to the deposit agreement. |
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• | temporary delays caused by closing the transfer books of the depositary or the Company for the deposit of shares of the Company in connection with voting at a shareholders meeting or the payment of dividends; | |
• | the payment of fees, taxes and similar charges; and | |
• | compliance with any U.S. or foreign laws or governmental regulations relating to the ADRs or to the withdrawal of the underlying deposited securities. |
• | annual reports containing audited consolidated financial statements, semi-annual reports that will include unaudited summary financial information; | |
• | summaries of notices of shareholders meetings; and | |
• | other reports and summaries that are generally distributed by the Company to its shareholders. |
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• | dealers in securities, | |
• | traders in securities that elect to use a mark-to-market method of accounting for their securities holdings, | |
• | tax-exempt organizations, | |
• | life insurance companies, | |
• | persons liable for alternative minimum tax, | |
• | persons that actually or constructively own 5% or more of the share capital or voting rights in TOTAL, | |
• | persons that hold the shares or ADSs as part of a straddle or a hedging or conversion transaction, or | |
• | U.S. Holders whose functional currency is not the U.S. dollar. |
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Holders are urged to consult their own tax advisor regarding the United States federal, state and local, and French and other tax consequences of owning and disposing shares or ADSs of TOTAL in their respective circumstances. In particular, a holder is encouraged to confirm whether the holder is a U.S. Holder eligible for the benefits of the Treaty with its advisor. |
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(i) | they furnish to the financial institution managing their securities account a certificate of residence conforming with the model attached to the February 25, 2005 Administrative Guidelines. The immediate application of the 15% withholding tax will be available only if the certificate of residence is sent to the financial institution managing their securities account before the dividend payment date. Furthermore, each financial institution managing the U.S. Holders’ securities account must also send to the French paying agent the figure of the total amount of dividends to be received which are eligible to the reduced withholding tax rate before the dividend payment date; | |
(ii) | the U.S. financial institution managing the U.S. Holder’s securities account provides to the French paying agent a list of the Eligible U.S. Holders and other pieces of information set forth in the February 25, 2005 Administrative Guidelines. Furthermore, the financial institution managing the U.S. Holders’ securities account should certify that each Holder is, to the best of its knowledge, a United States resident within the meaning of the Treaty. These documents must be sent as soon as possible, in all cases before the end of the third month computed as from the end of the month of the dividend payment date. |
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(16) | Calculated with a base case exchange rate of $1.25 dollars per euro. |
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Notional value 2004 | |||||||||
Assets | Liabilities | ||||||||
(in millions of euros) | |||||||||
Crude oil and petroleum products and freight rates | |||||||||
Petroleum products and crude oil swaps(1) | 3,454 | 3,778 | |||||||
Forward freight agreements | 29 | 71 | |||||||
Forwards | 233 | 882 | |||||||
Options(2) | 2,712 | 2,162 | |||||||
Futures(3) | 536 | 914 | |||||||
Options on futures(2) | 199 | 228 | |||||||
Natural gas and power | |||||||||
Swaps(1) | 140 | 240 | |||||||
Forwards | 4,568 | 5,227 | |||||||
Options(2) | 35 | 22 | |||||||
Futures(3) | 17 | 8 |
(1) | Swaps (including “Contracts for differences”): the “assets/liabilities” columns correspond to receive-fixed and pay-fixed swaps. |
(2) | Options: the “assets/liabilities” columns correspond to the nominal value of options (calls or puts) purchased/sold, valued based on the strike. |
(3) | Futures: the “assets/liabilities” columns correspond to the net purchasing/selling positions, valued based on the closing rate on the organized exchange market. |
As of | |||||||||
December 31, 2004 | |||||||||
Carrying | Estimated | ||||||||
value | fair value | ||||||||
(in millions of euros) | |||||||||
Commodities (comparable to financial instruments)(1) | |||||||||
Petroleum products and crude oil swaps, forward freight agreements | 36 | 36 | |||||||
Petroleum products and crude oil options | 9 | 9 | |||||||
Natural gas and power swaps | (1 | ) | (1 | ) | |||||
Natural gas and power options | — | — |
(1) | Operations which will not generate physical delivery at maturity date. The carrying value corresponds to the value of these instruments on the balance sheet. |
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2010 and | ||||||||||||||||||||||||||||||
As of December 31, 2004 | Total | 2005 | 2006 | 2007 | 2008 | 2009 | after | |||||||||||||||||||||||
(in millions of euros) | ||||||||||||||||||||||||||||||
MANAGEMENT OF INTEREST RATE EXPOSURE | ||||||||||||||||||||||||||||||
Issue swaps and swaps hedging debenture issues | ||||||||||||||||||||||||||||||
Notional amount | 9,490 | 1,433 | 474 | 1,599 | 1,698 | 1,948 | 2,338 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 4.40% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 2.68% | ||||||||||||||||||||||||||||||
Long-term currency and interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 105 | 37 | 2 | 66 | — | — | — | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 3.58% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 3.36% | ||||||||||||||||||||||||||||||
Long-term interest rate swaps | ||||||||||||||||||||||||||||||
Receive-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 37 | 34 | 1 | — | — | — | 2 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 5.45% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 2.55% | ||||||||||||||||||||||||||||||
Pay-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 2.30% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 5.56% | ||||||||||||||||||||||||||||||
Short-term interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 16,997 | 16,997 | — | — | — | — | — | |||||||||||||||||||||||
MANAGEMENT OF CURRENCY EXPOSURE | ||||||||||||||||||||||||||||||
Currency swaps | ||||||||||||||||||||||||||||||
Notional amount | 10,531 | 10,160 | 111 | 28 | 16 | 16 | 200 | |||||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||||||||||||
Notional amount | 116 | 116 | — | — | — | — | — | |||||||||||||||||||||||
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As of December 31, 2004 | ||||||||||||||||
Change in | Change in | |||||||||||||||
fair value | fair value | |||||||||||||||
with a 10% | with a 10% | |||||||||||||||
interest rate | interest rate | |||||||||||||||
Carrying | Estimated | increase | decrease | |||||||||||||
amount | fair value | (unaudited) | (unaudited) | |||||||||||||
(in millions of euros) | ||||||||||||||||
BALANCE SHEET | ||||||||||||||||
Debenture loans (before swaps and excluding current portion)(1) | 8,208 | 9,481 | (110 | ) | 112 | |||||||||||
Issue swaps(1) | — | (1,297 | ) | 107 | (109 | ) | ||||||||||
Fixed-rate bank loans (excluding capital lease obligations) | 288 | 274 | (8 | ) | 9 | |||||||||||
Current portion of long-term debt (excluding current portion of capital lease obligations) | 1,762 | 1,803 | (1 | ) | 1 | |||||||||||
OFF-BALANCE SHEET | ||||||||||||||||
Bank guarantees | — | (2 | ) | — | — | |||||||||||
Interest rate and currency swaps | — | 32 | (1 | ) | 1 | |||||||||||
Long-term interest rate swaps | — | 1 | (1 | ) | 1 | |||||||||||
Short-term interest rate swaps | — | 1 | 2 | (2 | ) | |||||||||||
Currency swaps | — | (313 | ) | — | — | |||||||||||
Forward exchange contracts | — | (4 | ) | — | — | |||||||||||
Currency options | — | — | — | — |
(1) | Debentures loans are presented after swaps at their carrying amount and before swaps for their estimated fair value. All issue swaps specifically hedge debenture loans. The fair values of these swaps may therefore be incorporated into the overall value of debenture loans. |
Dollar/Euro | Currency Translation | |||||||
exchange rates | Adjustment | |||||||
(in millions of euros) | ||||||||
December 31, 2002 | 1.05 | (830 | ) | |||||
December 31, 2003 | 1.26 | (3,268 | ) | |||||
December 31, 2004 | 1.36 | (4,653 | ) |
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As of December 31, 2004 | ||||||||||||||||
Less than | Between 1 year | More than | ||||||||||||||
1 year | and 5 years | 5 years | Total | |||||||||||||
(in millions of euros) | ||||||||||||||||
Financial debt after swaps | 3,523 | 6,612 | 3,122 | 13,257 | ||||||||||||
Cash and cash equivalents | (3,837 | ) | — | — | (3,837 | ) | ||||||||||
Total | (314 | ) | 6,612 | 3,122 | 9,420 | |||||||||||
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KPMG S.A. | Ernst & Young Audit | |||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
(in millions of euros) | ||||||||||||||||
Audit Fees | 12.4 | 9.7 | 12.1 | 10.6 | ||||||||||||
Audit-Related Fees(1) | 9.2 | 5.7 | 2.2 | 2.9 | ||||||||||||
Tax Fees(2) | 1.7 | 0.2 | 0.9 | 1.0 | ||||||||||||
All Other Fees(3) | 0.1 | 0.1 | 0.1 | 0.5 | ||||||||||||
Total | 23.4 | 15.7 | 15.3 | 15.0 | ||||||||||||
(1) | Audit-related fees are generally fees billed for services that are closely related to the performance of the audit or review of financial statements. These include due diligence services related to business combinations, attestation services not required by statute or regulation, agreed upon or expanded auditing procedures related to accounting or billing records required to respond to or comply with financial, accounting or regulatory reporting matters, consultations concerning financial accounting and reporting standards, information system reviews, internal control reviews and assistance with internal control reporting requirements. |
(2) | Tax fees are fees for services related to international and domestic tax compliance, including the preparation of tax returns and claims for refund, tax planning and tax advice, including assistance with tax audits and tax appeals, and tax services regarding statutory, regulatory or administrative developments and expatriate tax assistance and compliance. |
(3) | All other fees are principally for risk management advisory services. |
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Total Number Of Shares | Maximum Number Of | |||||||||||||||
Total Number | Average Price | Purchased, As Part Of | Shares That May Yet Be | |||||||||||||
Of Shares | Paid Per Share | Publicly Announced Plans | Purchased Under The | |||||||||||||
Period | Purchased | (€) | Or Programs | Plans Or Programs(3) | ||||||||||||
January 2004 | 800,000 | 144.43 | 800,000 | (1) | 27,047,934 | |||||||||||
February 2004 | 700,000 | 146.32 | 700,000 | (1) | 26,379,205 | |||||||||||
March 2004 | 2,800,000 | 148.34 | 2,800,000 | (1) | 23,689,374 | |||||||||||
April 2004 | 1,800,000 | 157.98 | 1,800,000 | (1) | 22,028,750 | |||||||||||
May 2004 | 3,000,000 | 155.69 | 3,000,000 | (1)(2) | 19,450,507 | |||||||||||
June 2004 | 3,300,000 | 158.51 | 3,300,000 | (2) | 16,281,372 | |||||||||||
July 2004 | 1,300,000 | 158.47 | 1,300,000 | (2) | 15,044,622 | |||||||||||
August 2004 | 2,000,000 | 158.80 | 2,000,000 | (2) | 13,104,195 | |||||||||||
September 2004 | 800,000 | 164.14 | 800,000 | (2) | 12,403,262 | |||||||||||
October 2004 | 1,693,932 | 166.22 | 1,693,932 | (2) | 10,792,098 | |||||||||||
November 2004 | 1,730,000 | 165.76 | 1,730,000 | (2) | 26,992,052 | (4) | ||||||||||
December 2004 | 2,626,068 | 160.71 | 2,626,068 | (2) | 24,429,023 | |||||||||||
January 2005 | 1,495,000 | 160.69 | 1,495,000 | (2) | 22,976,364 | |||||||||||
February 2005 | 375,000 | 175.48 | 375,000 | (2) | 22,775,605 | |||||||||||
March 2005 | 3,000,000 | 180.37 | 3,000,000 | (2) | 19,962,511 |
(1) | Since May 7, 2003: the Extraordinary Shareholders’ Meeting of May 6, 2003 authorized the Board of Directors to buy and sell the company’s own shares on the market for a period of 18 months in compliance with the objectives and procedures of the stock purchase program approved by theCommission Opérations de Bourse (COB) under visa no. 03-193 of March 26, 2003 (pursuant to COB Regulation no. 98-02 modified by COB Regulation no. 2000-06). The number of shares held or acquired may not exceed 10% of the authorized share capital. Under this authorization, 24,535,000 shares have been repurchased from May 7, 2003 to May 14, 2004. |
(2) | Since May 15, 2004: the Extraordinary Shareholders’ Meeting of May 14, 2004 cancelled and replaced the previous resolution from the Shareholder’s Meeting of May 6, 2003, authorizing hence the Board of Directors to trade in the Company’s own shares on the market for a period of 18 months within the framework of the stock purchase program approved by theAutorité des marches financiers (AMF) under visa no. 04-235 of April 1, 2004. The maximum number of shares that may be purchased by virtue of this authorization may not exceed 10% of the total number of shares constituting the share capital, this number being eventually adjusted to take into account operations modifying the share capital after the current Shareholders’ Meeting. Under no circumstances may the total number of shares the Company holds, either directly or indirectly through its indirect subsidiaries, exceed 10% of the share capital. Under this authorization, 20,100,000 shares have been repurchased from May 15, 2004 to March 31, 2005. |
(3) | Based on 10% of the Company’s shares capital, and after deducting the shares held by the Company for cancellation and to cover the share purchase option plans for Company employees, as well as after deducting the shares held by the subsidiaries. |
(4) | The increase in the maximum number of shares is mainly due to the cancellation by the Board of Directors on November 9, 2004, of all shares held for cancellation at this date (19,873,932 shares). |
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Page | ||||
Report of Independent Registered Public Accounting Firm | F-1 | |||
Consolidated Statement of Income for the Years Ended December 31, 2004, 2003 and 2002 | F-2 | |||
Consolidated Balance Sheet at December 31, 2004, 2003 and 2002 | F-3 | |||
Consolidated Statement of Cash Flows for the Years Ended December 31, 2004, 2003 and 2002 | F-4 | |||
Consolidated Statement of Change in Shareholders’ Equity for the years ended December 31, 2004, 2003, 2002 and 2001 | F-5 | |||
Notes to the Consolidated Financial Statements | F-6 | |||
Supplemental Oil and Gas Information (Unaudited) | F-79 | |||
Schedules for the years ended December 31, 2004, 2003 and 2002 | ||||
Schedule II — Valuation and Qualifying Accounts | S-1 |
1. | Statutsof Total S.A. (as amended through December 31, 2004) | |
8. | List of Subsidiaries (see Note 31 of the Notes to the Consolidated Financial Statements included in this Annual Report) | |
11. | Code of Ethics | |
12.1 | Certification of Chief Executive Officer | |
12.2 | Certification of Chief Financial Officer | |
13.1 | Certification of Chief Executive Officer | |
13.2 | Certification of Chief Financial Officer | |
15.1 | Consent of ERNST & YOUNG AUDIT | |
15.2 | Consent of KPMG S.A. |
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TOTAL S.A. |
By: | /s/Thierry Desmarest |
Name: Thierry Desmarest | |
Title: Chairman, President and | |
Chief Executive Officer |
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The Board of Directors and Shareholders |
KPMG Audit A division of KPMG S.A. | ERNST & YOUNG AUDIT | |
René Amirkhanian | Gabriel Galet Philippe Diu |
F-1
Table of Contents
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Amounts in millions of euros(1) | |||||||||||||
Sales (Note 4 and Note 5) | 122,700 | 104,652 | 102,540 | ||||||||||
Operating expenses (Note 19) | (101,141 | ) | (86,905 | ) | (86,622 | ) | |||||||
Depreciation, depletion and amortization of tangible assets (Note 4) | (5,498 | ) | (4,977 | ) | (5,792 | ) | |||||||
Operating income(Note 4) | |||||||||||||
Corporate | (215 | ) | (209 | ) | (210 | ) | |||||||
Business Segments | 16,276 | 12,979 | 10,336 | ||||||||||
Total operating income | 16,061 | 12,770 | 10,126 | ||||||||||
Interest expense, net (Note 20) | (234 | ) | (232 | ) | (195 | ) | |||||||
Dividend income on non-consolidated companies | 164 | 152 | 170 | ||||||||||
Dividends paid on subsidiaries’ redeemable preferred shares (Note 14) | (6 | ) | (5 | ) | (10 | ) | |||||||
Other income/(expense), net (Note 21) | 2,174 | (1,060 | ) | 243 | |||||||||
Provision for income taxes (Note 22) | (8,316 | ) | (5,353 | ) | (5,034 | ) | |||||||
Equity in income of affiliates (Note 8) | 337 | 1,086 | 866 | ||||||||||
Income before amortization of acquisition goodwill | 10,180 | 7,358 | 6,166 | ||||||||||
Amortization of acquisition goodwill | (308 | ) | (139 | ) | (212 | ) | |||||||
Income before minority interests | 9,872 | 7,219 | 5,954 | ||||||||||
Minority interests | (260 | ) | (194 | ) | (13 | ) | |||||||
Net income | 9,612 | 7,025 | 5,941 | ||||||||||
Earnings per share (euros)(Note 1.Q) | 15.61 | 11.06 | 8.92 |
(1) | Except for earnings per share. |
F-2
Table of Contents
As of December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Amounts in millions of euros | ||||||||||||
ASSETS | ||||||||||||
Non-current assets | ||||||||||||
Intangible assets, net (Note 6) | 1,908 | 2,017 | 2,752 | |||||||||
Property, plant and equipment, net (Note 7) | 36,422 | 36,286 | 38,592 | |||||||||
Equity affiliates: investments and loans (Note 8) | 9,874 | 7,833 | 7,710 | |||||||||
Other investments (Note 9) | 1,090 | 1,162 | 1,221 | |||||||||
Other non-current assets (Note 10) | 3,239 | 3,152 | 3,735 | |||||||||
Total non-current assets | 52,533 | 50,450 | 54,010 | |||||||||
Current assets | ||||||||||||
Inventories, net (Note 11) | 7,053 | 6,137 | 6,515 | |||||||||
Accounts receivable, net (Note 12) | 14,025 | 12,357 | 13,087 | |||||||||
Prepaid expenses and other current assets (Note 12) | 5,363 | 4,779 | 5,243 | |||||||||
Short-term investments | 1,350 | 1,404 | 1,508 | |||||||||
Cash and cash equivalents | 3,837 | 4,836 | 4,966 | |||||||||
Total current assets | 31,628 | 29,513 | 31,319 | |||||||||
Total assets | 84,161 | 79,963 | 85,329 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Shareholders’ equity(Note 13) | ||||||||||||
Common shares (€ 10 par value; shares issued and outstanding: 2004-635,015,108; 2003-649,118,236; 2002-687,190,510) | 6,350 | 6,491 | 6,872 | |||||||||
Paid-in surplus and retained earnings | 33,266 | 30,408 | 30,514 | |||||||||
Cumulative translation adjustments | (4,653 | ) | (3,268 | ) | (830 | ) | ||||||
Treasury shares (2004-28,932,967; 2003-26,256,899; 2002-35,026,899) | (3,703 | ) | (3,225 | ) | (4,410 | ) | ||||||
Total shareholders’ equity | 31,260 | 30,406 | 32,146 | |||||||||
Subsidiaries’ redeemable preferred shares(Note 14) | 147 | 396 | 477 | |||||||||
Minority interests (Note 14) | 629 | 664 | 724 | |||||||||
Long-term liabilities | ||||||||||||
Deferred income taxes (Note 22) | 6,063 | 5,443 | 6,390 | |||||||||
Employee benefits (Note 15) | 3,600 | 3,818 | 4,103 | |||||||||
Other long-term liabilities (Note 16) | 6,449 | 6,344 | 6,150 | |||||||||
Total long-term liabilities | 16,112 | 15,605 | 16,643 | |||||||||
Long-term debt(Note 17) | 9,734 | 9,783 | 10,157 | |||||||||
Current liabilities | ||||||||||||
Accounts payable | 11,672 | 10,304 | 10,236 | |||||||||
Other creditors and accrued liabilities (Note 18) | 11,084 | 8,970 | 9,850 | |||||||||
Short-term borrowings and bank overdrafts (Note 17) | 3,523 | 3,835 | 5,096 | |||||||||
Total current liabilities | 26,279 | 23,109 | 25,182 | |||||||||
Total liabilities and shareholders’ equity | 84,161 | 79,963 | 85,329 | |||||||||
F-3
Table of Contents
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Amounts in millions of euros | |||||||||||||
Cash flow from operating activities | |||||||||||||
Income before minority interests | 9,872 | 7,219 | 5,954 | ||||||||||
Depreciation, depletion and amortization (Note 4) | 6,090 | 5,305 | 6,241 | ||||||||||
Long-term liabilities, valuation allowances and deferred taxes | 466 | (208 | ) | (264 | ) | ||||||||
Impact of coverage of pension benefit plans | (181 | ) | (170 | ) | — | ||||||||
Unsuccessful exploration costs | 414 | 359 | 487 | ||||||||||
(Gains)/losses on sales of assets | (3,078 | ) | 182 | (862 | ) | ||||||||
Undistributed affiliates equity earnings | 216 | (603 | ) | (479 | ) | ||||||||
Other changes, net | 158 | 21 | (7 | ) | |||||||||
Cash flow from operating activities before changes in working capital | 13,957 | 12,105 | 11,070 | ||||||||||
(Increase)/decrease in operating assets and liabilities (Note 28) | 472 | 382 | (64 | ) | |||||||||
Cash flow from operating activities | 14,429 | 12,487 | 11,006 | ||||||||||
Cash flow used in investing activities | |||||||||||||
Intangible assets and property, plant and equipment additions | (7,167 | ) | (6,365 | ) | (6,942 | ) | |||||||
Exploration costs directly charged to expenses | (374 | ) | (343 | ) | (432 | ) | |||||||
Acquisitions of subsidiaries, net of cash acquired | (131 | ) | (421 | ) | (127 | ) | |||||||
Investments in equity affiliates and other securities | (209 | ) | (123 | ) | (298 | ) | |||||||
Increase in long-term loans | (787 | ) | (476 | ) | (858 | ) | |||||||
Total expenditures | (8,668 | ) | (7,728 | ) | (8,657 | ) | |||||||
Proceeds from sale of intangible assets and property, plant and equipment | 225 | 315 | 290 | ||||||||||
Proceeds from sale of subsidiaries, net of cash sold | 1 | 820 | 5 | ||||||||||
Proceeds from sale of non-current investments | 408 | 218 | 1,346 | ||||||||||
Repayment of long-term loans | 558 | 525 | 672 | ||||||||||
Total divestitures | 1,192 | 1,878 | 2,313 | ||||||||||
(Increase)/decrease in short-term investments | 55 | 116 | (505 | ) | |||||||||
Cash flow used in investing activities | (7,421 | ) | (5,734 | ) | (6,849 | ) | |||||||
Cash flow used in financing activities | |||||||||||||
Issuance/(repayment) of shares | |||||||||||||
Parent company’s shareholders | 371 | 69 | 461 | ||||||||||
Purchase of treasury shares | (3,554 | ) | (3,994 | ) | (2,945 | ) | |||||||
Minority shareholders | 162 | 76 | 32 | ||||||||||
Other equity | (241 | ) | — | — | |||||||||
Cash dividends paid | |||||||||||||
Parent company’s shareholders | (4,293 | ) | (2,571 | ) | (2,514 | ) | |||||||
Minority shareholders | (207 | ) | (124 | ) | (100 | ) | |||||||
Net issuance/(repayment) of long-term debt (Note 28) | 2,249 | 2,108 | 1,642 | ||||||||||
Increase/(decrease) in short-term borrowings and bank overdrafts | (2,195 | ) | (2,153 | ) | 746 | ||||||||
Other changes, net | (6 | ) | (5 | ) | (10 | ) | |||||||
Cash flow used in financing activities | (7,714 | ) | (6,594 | ) | (2,688 | ) | |||||||
Net increase/(decrease) in cash and cash equivalents | (706 | ) | 159 | 1,469 | |||||||||
Effect of exchange rates and changes in reporting entity | (293 | ) | (289 | ) | (77 | ) | |||||||
Cash and cash equivalents at the beginning of the year | 4,836 | 4,966 | 3,574 | ||||||||||
Cash and cash equivalents at year-end | 3,837 | 4,836 | 4,966 | ||||||||||
F-4
Table of Contents
Paid-in | ||||||||||||||||||||||||||||
Common shares issued | surplus and | Cumulative | Treasury shares | |||||||||||||||||||||||||
retained | translation | Shareholders’ | ||||||||||||||||||||||||||
Number | Amount | earnings | adjustments | Number | Amount | equity | ||||||||||||||||||||||
Amounts in millions of euros except for share data | ||||||||||||||||||||||||||||
As of January 1, 2002 | 705,934,959 | 7,059 | 30,544 | 1,252 | (37,349,899 | ) | (4,923 | ) | 33,932 | |||||||||||||||||||
Cash dividend | — | — | (2,514 | ) | — | — | — | (2,514 | ) | |||||||||||||||||||
Net income | — | — | 5,941 | — | — | — | 5,941 | |||||||||||||||||||||
Issuance of common shares (Note 13) | 4,698,796 | 47 | 441 | — | — | — | 488 | |||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (21,120,245 | ) | (2,945 | ) | (2,945 | ) | ||||||||||||||||||
Cancellation of purchased treasury shares (Note 13) | (23,443,245 | ) | (234 | ) | (3,224 | ) | — | 23,443,245 | 3,458 | — | ||||||||||||||||||
Translation adjustments | — | — | — | (2,082 | ) | — | — | (2,082 | ) | |||||||||||||||||||
Other changes, net(1) | — | — | (674 | ) | — | — | — | (674 | ) | |||||||||||||||||||
As of December 31, 2002 | 687,190,510 | 6,872 | 30,514 | (830 | ) | (35,026,899 | ) | (4,410 | ) | 32,146 | ||||||||||||||||||
Cash dividend | — | — | (2,571 | ) | — | — | — | (2,571 | ) | |||||||||||||||||||
Net income | — | — | 7,025 | — | — | — | 7,025 | |||||||||||||||||||||
Issuance of common shares (Note 13) | 1,927,726 | 19 | 113 | — | — | — | 132 | |||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (31,230,000 | ) | (3,994 | ) | (3,994 | ) | ||||||||||||||||||
Cancellation of purchased treasury shares (Note 13) | (40,000,000 | ) | (400 | ) | (4,779 | ) | — | 40,000,000 | 5,179 | — | ||||||||||||||||||
Translation adjustments | — | — | — | (2,438 | ) | — | — | (2,438 | ) | |||||||||||||||||||
Other changes, net(2) | — | — | 106 | — | — | — | 106 | |||||||||||||||||||||
As of December 31, 2003 | 649,118,236 | 6,491 | 30,408 | (3,268 | ) | (26,256,899 | ) | (3,225 | ) | 30,406 | ||||||||||||||||||
Cash dividend | — | — | (4,293 | ) | — | — | — | (4,293 | ) | |||||||||||||||||||
Net income | — | — | 9,612 | — | — | — | 9,612 | |||||||||||||||||||||
Issuance of common shares (Note 13) | 5,770,804 | 58 | 478 | — | — | — | 536 | |||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (22,550,000 | ) | (3,554 | ) | (3,554 | ) | ||||||||||||||||||
Cancellation of purchased treasury shares (Note 13) | (19,873,932 | ) | (199 | ) | (2,877 | ) | — | 19,873,932 | 3,076 | — | ||||||||||||||||||
Translation adjustments | — | — | — | (1,385 | ) | — | — | (1,385 | ) | |||||||||||||||||||
Other changes, net(1) | — | — | (62 | ) | — | — | — | (62 | ) | |||||||||||||||||||
As of December 31, 2004 | 635,015,108 | 6,350 | 33,266 | (4,653 | ) | (28,932,967 | ) | (3,703 | ) | 31,260 | ||||||||||||||||||
(1) | Mainly due to adjustments in employee benefit obligations. |
(2) | Mainly due to adjustments in employee benefit obligations and to the effect as of January 1, 2003 of the adoption of FAS No. 143. |
F-5
Table of Contents
F-6
Table of Contents
F-7
Table of Contents
• | Costs of exploratory wells that have found proved reserves are capitalized and then depreciated using the unit-of-production method based on proved developed reserves. | |
• | Costs of dry exploratory wells and wells that have not found proved reserves are charged to expense. | |
• | Costs of exploratory wells are temporarily capitalized until a determination is made as to whether the well has found proved reserves if both of the following conditions are met: |
• | The well has found a sufficient quantity of reserves to justify, if appropriate, its completion as a producing well, assuming that the required capital expenditure is made; and | |
• | Satisfactory progress toward ultimate development of the reserves is being achieved, with the Company making sufficient progress assessing the reserves and the economic and operating viability of the project. This progress is evaluated on the basis of indicators such as whether additional exploratory works (wells, seismic work or significant studies) are under way or firmly planned and whether costs are being incurred for development studies, and takes into account that the Company may be awaiting governmental or other third-party authorizations for a proposed project or the availability of capacity on an existing transport or processing facility. |
F-8
Table of Contents
Furniture, office equipment, machinery and tools | 5-10 years | |||
Transportation equipment | 5-20 years | |||
Storage tanks and related equipment | 10-15 years | |||
Specialized complex installations and pipelines | 10-30 years | |||
Buildings | 10-50 years |
F-9
Table of Contents
F-10
Table of Contents
F-11
Table of Contents
F-12
Table of Contents
F-13
Table of Contents
3. | Summary of Differences Between Accounting Principles Followed by the Company and United States Generally Accepted Accounting Principles |
F-14
Table of Contents
F-15
Table of Contents
As of December 31, | |||||||||
2004 | 2003 | ||||||||
Amortized intangible assets | |||||||||
Gross carrying amount | 2,670 | 2,352 | |||||||
Accumulated amortization | (1,901 | ) | (1,683 | ) | |||||
Total other intangible assets, net | 769 | 669 | |||||||
As of | As of | |||||||||||||||||||
January 1, 2004 | Acquisitions | Impairment | Other(1) | December 31, 2004 | ||||||||||||||||
Upstream | 15,621 | 78 | — | (106 | ) | 15,593 | ||||||||||||||
Downstream | 11,474 | — | — | (44 | ) | 11,430 | ||||||||||||||
Chemicals | 5,184 | 24 | (1,378 | ) | (81 | ) | 3,749 | |||||||||||||
Total | 32,279 | 102 | (1,378 | ) | (231 | ) | 30,772 | |||||||||||||
(1) | The caption “Other” mainly consists of the impact of the foreign currency translation of (44) M€ and the impact of adjustments related to the Elf acquisition of (117) M€. |
F-16
Table of Contents
E) | Equity Securities |
As of December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Gross realized gains | 105 | 58 | 343 | |||||||||
Gross realized losses | (19 | ) | (18 | ) | (28 | ) |
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
As of December 31, 2002 | 308 | 139 | (56 | ) | 391 | |||||||||||
As of December 31, 2003 | 264 | 158 | (7 | ) | 415 | |||||||||||
As of December 31, 2004 | 126 | 151 | — | 277 |
F) | Stock Compensation |
F-17
Table of Contents
G) | Derivative Instruments and Hedging Activities |
F-18
Table of Contents
H) | Asset retirement obligation |
F-19
Table of Contents
— | EITF 02-3 prohibits the use of mark-to-market accounting for any energy-related contracts that are not derivatives. This change applied immediately to new contracts executed after October 25, 2002 and applied to existing non-derivative energy-related contracts beginning January 1, 2003. | |
— | The task force reached a consensus that gains and losses on all derivative instruments within the scope of FAS No. 133 should be shown net in the income statement if the derivative instruments are held for trading purposes. | |
— | The FASB Staff indicated that, pending further consideration of this issue, an entity should not record unrealized gains or losses at the inception of derivative contracts unless the fair value of contracts is evidenced by observable market data. |
Net income | ||||||||||||
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Amounts per accompanying consolidated financial statements | 9,612 | 7,025 | 5,941 | |||||||||
Equity investees revaluations (A-1), net | (1,384 | ) | (40 | ) | (183 | ) | ||||||
Goodwill on consolidated companies (A-2) | (1,362 | ) | (314 | ) | (178 | ) | ||||||
Property, plant and equipment revaluation (A-3) | (374 | ) | (378 | ) | (388 | ) | ||||||
Other purchase accounting adjustments | (23 | ) | (155 | ) | (14 | ) | ||||||
Total acquisitions of Elf and Petrofina (A) | (3,143 | ) | (887 | ) | (763 | ) | ||||||
Business combinations: cancellation of goodwill amortization (B) | 137 | 171 | 279 | |||||||||
Reserve for crude oil price changes (C) | 714 | (252 | ) | 658 | ||||||||
Treasury shares (D) | (14 | ) | (3 | ) | — | |||||||
Equity securities (E) | — | — | (43 | ) | ||||||||
Stock compensation (F) | (76 | ) | (98 | ) | (88 | ) | ||||||
Derivative instruments and hedging activities (G) | (14 | ) | (294 | ) | 479 | |||||||
Asset retirement obligation (H) | — | 52 | — | |||||||||
Other | (28 | ) | — | — | ||||||||
Tax effect of U.S. GAAP adjustments (consolidated companies) | 33 | 389 | (199 | ) | ||||||||
Amounts under U.S. GAAP | 7,221 | 6,103 | 6,264 | |||||||||
F-20
Table of Contents
Shareholders’ equity | ||||||||||||
As of December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Amounts per accompanying consolidated financial statements | 31,260 | 30,406 | 32,146 | |||||||||
Equity investees revaluations (A-1), net | 1,774 | 3,160 | 3,200 | |||||||||
Goodwill on consolidated companies (A-2) | 29,278 | 30,640 | 30,954 | |||||||||
Property, plant and equipment revaluation (A-3) | 3,643 | 4,040 | 4,439 | |||||||||
Other purchase accounting adjustments | — | — | 224 | |||||||||
Total acquisitions of Elf and Petrofina (A) | 34,695 | 37,840 | 38,817 | |||||||||
Business combinations: cancellation of goodwill amortization (B) | 587 | 450 | 279 | |||||||||
Reserve for crude oil price changes (C) | 2,289 | 1,575 | 1,827 | |||||||||
Treasury shares (D) | (1,327 | ) | (1,388 | ) | (1,407 | ) | ||||||
Equity securities (E) | 120 | 120 | 52 | |||||||||
Derivative instruments and hedging activities (G) | 302 | 316 | 610 | |||||||||
Other | (64 | ) | — | — | ||||||||
Tax effect of U.S. GAAP adjustments (consolidated companies) | (2,688 | ) | (2,746 | ) | (3,212 | ) | ||||||
Cumulative translation adjustment of U.S. GAAP adjustments | (66 | ) | (46 | ) | (16 | ) | ||||||
Amounts under U.S. GAAP | 65,108 | 66,527 | 69,096 | |||||||||
F-21
Table of Contents
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Sales and other income | 100,481 | 85,585 | 84,883 | ||||||||||
Total revenues | 100,481 | 85,585 | 84,883 | ||||||||||
Crude oil and product purchases | 58,555 | 49,891 | 51,096 | ||||||||||
Production, selling and administrative expenses | 19,279 | 18,270 | 16,017 | ||||||||||
Depreciation, depletion and amortization | 7,707 | 5,400 | 6,427 | ||||||||||
Unsuccessful exploration costs | 414 | 359 | 487 | ||||||||||
Dividends on subsidiaries’ redeemable preferred shares | 6 | 5 | 10 | ||||||||||
Interest expense/(income), net | 179 | 183 | 195 | ||||||||||
Other financial expense/(income), net(1) | 12 | 154 | (183 | ) | |||||||||
Taxes | 683 | 664 | 925 | ||||||||||
Total expenses | 86,835 | 74,926 | 74,974 | ||||||||||
Earnings from equity interests and affiliates | 621 | 1,286 | 1,104 | ||||||||||
Gains/(losses) on sales of assets | 1,584 | (484 | ) | 679 | |||||||||
Income before income taxes and minority interests | 15,851 | 11,461 | 11,692 | ||||||||||
Income taxes | 8,357 | 5,215 | 5,412 | ||||||||||
Income before minority interests | 7,494 | 6,246 | 6,280 | ||||||||||
Minority interests | (273 | ) | (195 | ) | (16 | ) | |||||||
Income before cumulative effect of accounting change | 7,221 | 6,051 | 6,264 | ||||||||||
Cumulative effect of accounting change, net of tax(2) | — | 52 | — | ||||||||||
Net Income | 7,221 | 6,103 | 6,264 | ||||||||||
Basic earnings per share | |||||||||||||
Income before cumulative effect of accounting change(2) | 11.95 | 9.73 | 9.60 | ||||||||||
Cumulative effect of accounting change, net of tax(2) | — | 0.08 | — | ||||||||||
Net earnings per share — basic | 11.95 | 9.81 | 9.60 | ||||||||||
Diluted earnings per share | |||||||||||||
Income before cumulative effect of accounting change(2) | 11.90 | 9.69 | 9.53 | ||||||||||
Cumulative effect of accounting change, net of tax(2) | — | 0.08 | — | ||||||||||
Net earnings per share — diluted | 11.90 | 9.77 | 9.53 | ||||||||||
(1) | Including dividends on subsidiaries’ redeemable preferred shares. |
(2) | Accounting change is related to the adoption of FAS No. 143 in 2003. |
F-22
Table of Contents
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Current income taxes | (7,666 | ) | (5,097 | ) | (5,445 | ) | ||||||
Deferred income taxes | (691 | ) | (118 | ) | 33 | |||||||
Total | (8,357 | ) | (5,215 | ) | (5,412 | ) | ||||||
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Net operating losses and tax credit carryforwards | 933 | 728 | 384 | |||||||||
Employee benefits | 841 | 976 | 1,121 | |||||||||
Other temporarily non-deductible provisions | 2,279 | 2,416 | 1,766 | |||||||||
Gross deferred tax assets | 4,053 | 4,120 | 3,271 | |||||||||
Valuation allowance | (342 | ) | (280 | ) | (202 | ) | ||||||
Net deferred tax assets | 3,711 | 3,840 | 3,069 | |||||||||
Property, plant and equipment | (8,667 | ) | (8,461 | ) | (8,726 | ) | ||||||
Other temporary tax deductions | (2,007 | ) | (1,872 | ) | (2,049 | ) | ||||||
Gross deferred tax liability | (10,674 | ) | (10,333 | ) | (10,775 | ) | ||||||
Net deferred tax liabilities | (6,963 | ) | (6,493 | ) | (7,706 | ) | ||||||
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Long-term deferred tax assets | 1,534 | 1,504 | 1,708 | |||||||||
Current deferred tax assets | 232 | 216 | 190 | |||||||||
Deferred tax liabilities | (8,729 | ) | (8,213 | ) | (9,604 | ) | ||||||
Total | (6,963 | ) | (6,493 | ) | (7,706 | ) | ||||||
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Shares outstanding, January 1 | 649,118,236 | 687,190,510 | 705,934,959 | ||||||||||
Issuance of common shares | |||||||||||||
Capital increases | 2,289,887 | — | 1,392,607 | ||||||||||
Stock options and warrants conversion | 475 | 417,822 | 674,556 | ||||||||||
Acquisition of Petrofina and Elf and subsequent related issuances (Note 13) | 1,167,512 | 546,041 | 282,236 | ||||||||||
Treasury shares | (48,470,881 | ) | (66,234,089 | ) | (55,512,145 | ) | |||||||
Weighted average number of shares — basic | 604,105,229 | 621,920,284 | 652,772,213 | ||||||||||
Dilutive effect of stock plans and warrants | 2,600,714 | 2,672,796 | 4,682,794 | ||||||||||
Weighted average number of shares — diluted | 606,705,943 | 624,593,080 | 657,455,007 | ||||||||||
F-23
Table of Contents
For the year ended | |||||||||||||
December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Net income, as reported | 7,221 | 6,103 | 6,264 | ||||||||||
Deduct: Additional total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects | (117 | ) | (131 | ) | (93 | ) | |||||||
Pro formanet income | 7,104 | 5,972 | 6,171 | ||||||||||
Earnings per share | |||||||||||||
Basic — as reported | 11.95 | 9.81 | 9.60 | ||||||||||
Basic —pro forma | 11.76 | 9.60 | 9.45 | ||||||||||
Diluted — as reported | 11.90 | 9.77 | 9.53 | ||||||||||
Diluted —pro forma | 11.71 | 9.56 | 9.39 |
2004 | 2003 | 2002 | ||||||||||
Risk-free interest rate (%) | 3.8 | 3.6 | 4.1 | |||||||||
Dividend yield (%) | 3.0 | 3.2 | 2.3 | |||||||||
Expected volatility (%) | 22 | 26 | 29 | |||||||||
Expected life (years) | 2.0 | 2.0 | 2.0 | |||||||||
Weighted average fair value of options granted (€) | 31.1 | 25.5 | 32.3 |
As of December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Assets | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | 3,858 | 4,862 | 5,079 | ||||||||||
Accounts receivable | 13,987 | 12,300 | 13,076 | ||||||||||
Inventories | 9,310 | 7,693 | 8,356 | ||||||||||
Other current assets | 5,335 | 4,774 | 5,243 | ||||||||||
Total currents assets | 32,490 | 29,629 | 31,754 | ||||||||||
Property, plant and equipment, net | 40,065 | 40,330 | 43,031 | ||||||||||
Intangibles, net | 31,541 | 32,948 | 34,138 | ||||||||||
Other non-current assets | 18,141 | 17,244 | 15,950 | ||||||||||
Total assets | 122,237 | 120,151 | 124,873 | ||||||||||
F-24
Table of Contents
As of December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Liabilities and shareholders’ equity | |||||||||||||
Current liabilities | |||||||||||||
Accounts payable | 11,672 | 10,304 | 10,236 | ||||||||||
Other liabilities | 14,919 | 13,036 | 14,945 | ||||||||||
Total current liabilities | 26,591 | 23,340 | 25,181 | ||||||||||
Long-term liabilities | |||||||||||||
Long-term debt, net of current portion | 11,140 | 10,883 | 9,533 | ||||||||||
Other long-term liabilities(1) | 18,753 | 18,735 | 20,332 | ||||||||||
Total long-term liabilities | 29,893 | 29,618 | 29,865 | ||||||||||
Minority interests | 645 | 666 | 731 | ||||||||||
Shareholders’ equity | |||||||||||||
Common shares | 6,350 | 6,491 | 6,872 | ||||||||||
Paid-in surplus | 40,524 | 42,721 | 47,298 | ||||||||||
Retained earnings | 28,756 | 26,047 | 22,464 | ||||||||||
Accumulated other comprehensive income | (5,492 | ) | (4,119 | ) | (1,721 | ) | |||||||
Treasury shares | (5,030 | ) | (4,613 | ) | (5,817 | ) | |||||||
Total shareholders’ equity | 65,108 | 66,527 | 69,096 | ||||||||||
Total liabilities and shareholders’ equity | 122,237 | 120,151 | 124,873 | ||||||||||
(1) | Including subsidiaries’ redeemable preferred shares. |
F-25
Table of Contents
Accumulated | |||||||||||||||||||||||||||||
other | Total | ||||||||||||||||||||||||||||
Comprehensive | Common | Paid-in | Retained | comprehensive | Treasury | shareholders’ | |||||||||||||||||||||||
income | shares | surplus | earnings | income | shares | equity | |||||||||||||||||||||||
As of January 1, 2002 | 7,059 | 50,018 | 18,723 | 1,332 | (5,872 | ) | 71,260 | ||||||||||||||||||||||
Net income(1) | 6,264 | 6,264 | 6,264 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Unrealized foreign currency translation adjustments | (2,108 | ) | |||||||||||||||||||||||||||
Realized foreign currency translation adjustments | 15 | ||||||||||||||||||||||||||||
Unrealized losses on equity securities | (135 | ) | |||||||||||||||||||||||||||
Gains on equity securities included in net income | (208 | ) | |||||||||||||||||||||||||||
Minimum pension liability adjustment | (617 | ) | |||||||||||||||||||||||||||
Other comprehensive income | (3,053 | ) | (3,053 | ) | (3,053 | ) | |||||||||||||||||||||||
Comprehensive income | 3,211 | ||||||||||||||||||||||||||||
Cash dividend | (2,514 | ) | (2,514 | ) | |||||||||||||||||||||||||
Acquisitions of Elf and PetroFina | 6 | 84 | (63 | ) | 27 | ||||||||||||||||||||||||
Other issuances of Common shares | 41 | 420 | 461 | ||||||||||||||||||||||||||
Stock compensation(1) | 88 | 88 | |||||||||||||||||||||||||||
Treasury shares(1) | (234 | ) | (3,224 | ) | 55 | (3,403 | ) | ||||||||||||||||||||||
Other | (34 | ) | (34 | ) | |||||||||||||||||||||||||
As of December 31, 2002 | 6,872 | 47,298 | 22,464 | (1,721 | ) | (5,817 | ) | 69,096 | |||||||||||||||||||||
(1) | Stock compensation cost and elimination of gains on treasury shares are reflected in net income above. |
Accumulated | |||||||||||||||||||||||||||||
other | Total | ||||||||||||||||||||||||||||
Comprehensive | Common | Paid-in | Retained | comprehensive | Treasury | shareholders’ | |||||||||||||||||||||||
income | shares | surplus | earnings | income | shares | equity | |||||||||||||||||||||||
As of January 1, 2003 | 6,872 | 47,298 | 22,464 | (1,721 | ) | (5,817 | ) | 69,096 | |||||||||||||||||||||
Net income(1) | 6,103 | 6,103 | 6,103 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Unrealized foreign currency translation adjustments | (2,399 | ) | |||||||||||||||||||||||||||
Realized foreign currency translation adjustments | (74 | ) | |||||||||||||||||||||||||||
Unrealized gains on equity securities | 80 | ||||||||||||||||||||||||||||
Gains on equity securities included in net income | (25 | ) | |||||||||||||||||||||||||||
Minimum pension liability adjustment | 20 | ||||||||||||||||||||||||||||
Other comprehensive income | (2,398 | ) | (2,398 | ) | (2,398 | ) | |||||||||||||||||||||||
Comprehensive income | 3,705 | ||||||||||||||||||||||||||||
Cash dividend | (2,571 | ) | (2,571 | ) | |||||||||||||||||||||||||
Issuances of common shares | 19 | 202 | (89 | ) | 132 | ||||||||||||||||||||||||
Stock compensation(1) | 98 | 98 | |||||||||||||||||||||||||||
Treasury shares(1) | (400 | ) | (4,779 | ) | 1,204 | (3,975 | ) | ||||||||||||||||||||||
Other | 42 | 42 | |||||||||||||||||||||||||||
As of December 31, 2003 | 6,491 | 42,721 | 26,047 | (4,119 | ) | (4,613 | ) | 66,527 | |||||||||||||||||||||
(1) | Stock compensation cost and elimination of gains on treasury shares are reflected in net income above. |
F-26
Table of Contents
Accumulated | |||||||||||||||||||||||||||||
other | Total | ||||||||||||||||||||||||||||
Comprehensive | Common | Paid-in | Retained | comprehensive | Treasury | shareholders’ | |||||||||||||||||||||||
income | shares | surplus | earnings | income | shares | equity | |||||||||||||||||||||||
As of January 1, 2004 | 6,491 | 42,721 | 26,047 | (4,119 | ) | (4,613 | ) | 66,527 | |||||||||||||||||||||
Net income(1) | 7,221 | 7,221 | 7,221 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Unrealized foreign currency translation adjustments | (1,406 | ) | |||||||||||||||||||||||||||
Realized foreign currency translation adjustments | — | ||||||||||||||||||||||||||||
Unrealized gains on equity securities | 48 | ||||||||||||||||||||||||||||
Gains on equity securities included in net income | (41 | ) | |||||||||||||||||||||||||||
Minimum pension liability adjustment | 26 | ||||||||||||||||||||||||||||
Other comprehensive income | (1,373 | ) | (1,373 | ) | (1,373 | ) | |||||||||||||||||||||||
Comprehensive income | 5,848 | ||||||||||||||||||||||||||||
Cash dividend | (4,293 | ) | (4,293 | ) | |||||||||||||||||||||||||
Issuances of common shares | 58 | 680 | (202 | ) | 536 | ||||||||||||||||||||||||
Stock compensation(1) | 76 | 76 | |||||||||||||||||||||||||||
Treasury shares(1) | (199 | ) | (2,877 | ) | 14 | (417 | ) | (3,479 | ) | ||||||||||||||||||||
Other | (107 | ) | (107 | ) | |||||||||||||||||||||||||
As of December 31, 2004 | 6,350 | 40,524 | 28,756 | (5,492 | ) | (5,030 | ) | 65,108 | |||||||||||||||||||||
(1) | Stock compensation cost and elimination of gains on treasury shares are reflected in net income above. |
As of December 31, | ||||||||||||||||||||||||||||||||||||
2004 | 2003 | 2002 | ||||||||||||||||||||||||||||||||||
Pre-tax | Tax Exp. | Net | Pre-tax | Tax Exp. | Net | Pre-tax | Tax Exp. | Net | ||||||||||||||||||||||||||||
Amount | (Credit) | Amount | Amount | (Credit) | Amount | Amount | (Credit) | Amount | ||||||||||||||||||||||||||||
Net foreign currency translation adjustments | (4,720 | ) | — | (4,720 | ) | (3,314 | ) | — | (3,314 | ) | (841 | ) | — | (841 | ) | |||||||||||||||||||||
Net unrealized gain (loss) | 163 | (23 | ) | 140 | 163 | (30 | ) | 133 | 95 | (17 | ) | 78 | ||||||||||||||||||||||||
Minimum pension liability adjustment | (1,353 | ) | 441 | (912 | ) | (1,393 | ) | 455 | (938 | ) | (1,417 | ) | 459 | (958 | ) | |||||||||||||||||||||
Accumulated other comprehensive (loss) income | (5,910 | ) | 418 | (5,492 | ) | (4,544 | ) | 425 | (4,119 | ) | (2,163 | ) | 442 | (1,721 | ) | |||||||||||||||||||||
F-27
Table of Contents
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Cash flow from operating activities | ||||||||||||
Under French GAAP | 14,429 | 12,487 | 11,006 | |||||||||
Exploration costs directly charged to expense | (374 | ) | (343 | ) | (432 | ) | ||||||
Under U.S. GAAP | 14,055 | 12,144 | 10,574 | |||||||||
Cash flow used in investing activities | ||||||||||||
Under French GAAP | (7,421 | ) | (5,734 | ) | (6,849 | ) | ||||||
Exploration costs directly charged to expense | 374 | 343 | 432 | |||||||||
Under U.S. GAAP | (7,047 | ) | (5,391 | ) | (6,417 | ) | ||||||
F-28
Table of Contents
— | A “modified prospective” method in which compensation cost is recognized beginning with the effective date (i) based on the requirements of Statement 123(R) for all share-based payments granted after the effective date and (ii) based on the requirements of Statement 123 for all awards granted to employees prior to the effective date of Statement 123(R) that remain unvested on the effective date. | |
— | A “modified retrospective” method which includes the requirements of the modified prospective method described above, but also permits entities to restate based on the amounts previously recognized under Statement 123 for purposes of pro forma disclosures either (i) all prior periods presented or (ii) prior interim periods of the year of adoption. |
F-29
Table of Contents
— | The well has found a sufficient quantity of reserves to justify, if appropriate, its completion as a producing well, assuming that the required capital expenditure is made; and | |
— | Satisfactory progress toward ultimate development of the reserves is being achieved, with the Company making sufficient progress assessing the reserves and the economic and operating viability of the project. |
The Company evaluates progress made on the basis of regular project reviews which take into account the following factors: |
— | First, if additional exploratory drilling or other exploratory activities (such as seismic work or other significant studies) are either underway or firmly planned, the Company deems there to be satisfactory progress. For these purposes, exploratory activities are considered firmly planned only if they are included in the Company’s three-year exploration plan/budget. At December 31, 2004, the Company had capitalized 172 M€ of exploratory drilling costs on this basis, as further set forth below. | |
— | In cases where exploratory activity has been completed, the evaluation of satisfactory progress takes into account indicators such as the fact that costs for development studies are incurred in the current period, or that governmental or other third-party authorizations are pending or that the availability of capacity on an existing transport or processing facility awaits confirmation. At December 31, 2004, exploratory drilling costs capitalized on this basis amounted to 41 M€ and mainly related to two projects, as further described below. |
F-30
Table of Contents
2004 | 2003 | 2002 | ||||||||||
Beginning balance | 422 | 579 | 722 | |||||||||
Additions pending determination of proved reserves(1) | 269 | 263 | 276 | |||||||||
Amounts previously capitalized and expensed during the year | (40 | ) | (16 | ) | (55 | ) | ||||||
Amounts transferred to Development | (196 | ) | (333 | ) | (266 | ) | ||||||
Foreign exchange changes | (25 | ) | (71 | ) | (98 | ) | ||||||
Ending balance | 430 | 422 | 579 | |||||||||
(1) | “Additions pending determination of proved reserves” consists of exploration costs less exploration costs directly charged to expenses. |
2004 | 2003 | 2002 | ||||||||||||
Projects with recent or planned exploratory activity | 389 | 317 | 306 | |||||||||||
Wells for which drilling is not completed | 91 | 39 | 141 | |||||||||||
Wells with drilling in past 12 months | 126 | 223 | 96 | |||||||||||
Wells with future exploratory activity firmly planned(1) | 172 | 55 | 69 | |||||||||||
future exploratory drilling planned | 148 | 55 | 69 | |||||||||||
other exploratory activity planned(2) | 24 | — | — | |||||||||||
Projects with completed exploratory activity | 41 | 105 | 273 | |||||||||||
Projects not requiring major capital expenditures | — | — | — | |||||||||||
Projects requiring major capital expenditures | 41 | 105 | 273 | |||||||||||
Total | 430 | 422 | 579 | |||||||||||
Number of wells at end of year | 56 | 62 | 68 | |||||||||||
(1) | All projects included in this line require major capital expenditures. |
(2) | At the end of 2004, this relates to a single well whose continuing capitalization is justified by firmly planned seismic activity. |
F-31
Table of Contents
(number of wells as of December 31) | |||||||||||||||||||||||||
2004 | 2003 | 2002 | |||||||||||||||||||||||
Amount | Wells | Amount | Wells | Amount | Wells | ||||||||||||||||||||
Wells for which drilling is not completed | 91 | 13 | 39 | 10 | 141 | 15 | |||||||||||||||||||
Wells with completed drilling | |||||||||||||||||||||||||
Less than 1 year | 126 | 12 | 223 | 23 | 96 | 17 | |||||||||||||||||||
Between 1 and 4 years | 198 | 29 | 139 | 26 | 262 | 26 | |||||||||||||||||||
Between 4 years and 8 years | 15 | 2 | 21 | 3 | 80 | 10 | |||||||||||||||||||
More than 8 years | — | — | — | — | — | — | |||||||||||||||||||
Total | 430 | 56 | 422 | 62 | 579 | 68 | |||||||||||||||||||
(iv) | Additional information on impairments |
F-32
Table of Contents
For the year ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Depreciation, depletion and amortization of tangible assets | (631 | ) | (17 | ) | (659 | ) | ||||||
Amortization of goodwill(1) | (195 | ) | — | (53 | ) | |||||||
Other expense | (93 | ) | — | (52 | ) | |||||||
Provision for income taxes | 230 | 6 | 206 | |||||||||
Minority interests | 1 | — | 91 | |||||||||
Net impact | (688 | ) | (11 | ) | (467 | ) | ||||||
(1) | Reversed under U.S. GAAP. |
— | the Upstream segment includes, in addition to the exploration and production of hydrocarbons, the gas, power and other energies activities, | |
— | the Downstream segment includes trading and shipping activities along with refining and marketing activities, | |
— | the Chemicals segment involves Base Chemicals & Polymers, Intermediates & Performance Polymers and Specialties. |
F-33
Table of Contents
For the year ended December 31, 2004 | |||||||||||||||||||||||||
(adjusted for special items) | |||||||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||||
Statement of income | |||||||||||||||||||||||||
Non-Group sales | 21,995 | 80,640 | 20,042 | 23 | — | 122,700 | |||||||||||||||||||
Intersegment sales | 14,208 | 2,836 | 699 | 183 | (17,926 | ) | — | ||||||||||||||||||
Total sales | 36,203 | 83,476 | 20,741 | 206 | (17,926 | ) | 122,700 | ||||||||||||||||||
Depreciation, depletion, and amortization of tangible assets | (3,196 | ) | (884 | ) | (760 | ) | (31 | ) | — | (4,871 | ) | ||||||||||||||
Operating income | 12,820 | 3,217 | 1,086 | (215 | ) | — | 16,908 | ||||||||||||||||||
Amortization of intangible assets | (21 | ) | (112 | ) | (129 | ) | (33 | ) | — | (295 | ) | ||||||||||||||
Equity in income/(loss) of affiliates and other items in net operating income | 332 | 195 | 28 | 491 | — | 1,046 | |||||||||||||||||||
Tax on net operating income | (7,297 | ) | (998 | ) | (329 | ) | 231 | — | (8,393 | ) | |||||||||||||||
Net operating income | 5,834 | 2,302 | 656 | 474 | — | 9,266 | |||||||||||||||||||
Net cost of net debt | — | — | — | — | — | (121 | ) | ||||||||||||||||||
Minority interests and dividends on subsidiaries’ redeemable preferred shares | — | — | — | — | — | (259 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 8,886 | |||||||||||||||||||
ROACE as a percentage | 35% | 25% | 9% | (1) | — | — | 24% | (1) | |||||||||||||||||
Gross expenditures | 6,170 | 1,516 | 905 | 77 | — | 8,668 | |||||||||||||||||||
Divestitures at sale price | 637 | 200 | 122 | 233 | — | 1,192 | |||||||||||||||||||
Cash flow from operating activities | 10,316 | 3,111 | 556 | 446 | — | 14,429 | |||||||||||||||||||
Balance sheet as of December 31, 2004 | — | ||||||||||||||||||||||||
Property, plant, and equipment, net | 24,143 | 6,904 | 5,188 | 187 | — | 36,422 | |||||||||||||||||||
Intangible assets, net | 263 | 566 | 1,020 | 59 | — | 1,908 | |||||||||||||||||||
Investments in equity affiliates | 1,430 | 1,241 | 554 | 5,772 | — | 8,997 | |||||||||||||||||||
Total non-current assets | 27,715 | 10,046 | 7,744 | 7,028 | — | 52,533 | |||||||||||||||||||
Capital employed | 16,442 | 9,623 | 8,338 | (2) | 5,703 | — | 40,106 |
(1) | Excluding amortization of goodwill for an amount of 85 M€ in the Chemicals segment. |
(2) | After taking into account a 110 M€ pre-tax contingency reserve (civil liability) related to the Toulouse AZF plant explosion. |
F-34
Table of Contents
For the year ended December 31, 2003 | |||||||||||||||||||||||||
(adjusted for special items) | |||||||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||||
Statement of income | |||||||||||||||||||||||||
Non-Group sales | 18,704 | 68,658 | 17,260 | 30 | — | 104,652 | |||||||||||||||||||
Intersegment sales | 11,546 | 2,289 | 590 | 115 | (14,540 | ) | — | ||||||||||||||||||
Total sales | 30,250 | 70,947 | 17,850 | 145 | (14,540 | ) | 104,652 | ||||||||||||||||||
Depreciation, depletion, and amortization of tangible assets | (3,289 | ) | (880 | ) | (756 | ) | (35 | ) | — | (4,960 | ) | ||||||||||||||
Operating income | 10,476 | 1,970 | 558 | (209 | ) | — | 12,795 | ||||||||||||||||||
Amortization of intangible assets | (22 | ) | (98 | ) | (151 | ) | (22 | ) | — | (293 | ) | ||||||||||||||
Equity in income (loss) of affiliates and other items in net operating income | 265 | 109 | (184 | ) | 529 | — | 719 | ||||||||||||||||||
Tax on net operating income | (5,460 | ) | (521 | ) | 31 | 434 | — | (5,516 | ) | ||||||||||||||||
Net operating income | 5,259 | 1,460 | 254 | 732 | — | 7,705 | |||||||||||||||||||
Net cost of net debt | — | — | — | — | — | (162 | ) | ||||||||||||||||||
Minority interests and dividends on subsidiaries’ redeemable preferred shares | — | — | — | — | — | (199 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 7,344 | |||||||||||||||||||
ROACE as a percentage | 29% | 15% | 4% | (1) | — | — | 19% | (1) | |||||||||||||||||
Gross expenditures | 5,302 | 1,235 | 1,115 | 76 | — | 7,728 | |||||||||||||||||||
Divestitures at sale price | 428 | 466 | 891 | 93 | — | 1,878 | |||||||||||||||||||
Cash flow from operating activities | 9,214 | 3,099 | 268 | (94 | ) | — | 12,487 | ||||||||||||||||||
Balance sheet as of December 31, 2003 | |||||||||||||||||||||||||
Property, plant, and equipment, net | 23,443 | 6,750 | 5,867 | 226 | — | 36,286 | |||||||||||||||||||
Intangible assets, net | 196 | 496 | 1,281 | 44 | — | 2,017 | |||||||||||||||||||
Investments in equity affiliates | 1,564 | 1,057 | 545 | 3,703 | — | 6,869 | |||||||||||||||||||
Total non-current assets | 27,104 | 9,586 | 8,482 | 5,278 | — | 50,450 | |||||||||||||||||||
Capital employed | 16,777 | 9,064 | 8,702 | (2) | 4,301 | — | 38,844 |
(1) | Excluding amortization of goodwill for an amount of 107 M€ in the Chemicals segment. |
(2) | After taking into account a 276 M€ pre-tax contingency reserve (civil liability) related to the Toulouse AZF plant explosion. |
F-35
Table of Contents
For the year ended December 31, 2002 | |||||||||||||||||||||||||
(adjusted for special items) | |||||||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Intercompany | Total | ||||||||||||||||||||
Statement of income | |||||||||||||||||||||||||
Non-Group sales | 16,225 | 66,984 | 19,317 | 14 | — | 102,540 | |||||||||||||||||||
Intersegment sales | 11,525 | 2,002 | 355 | 117 | (13,999 | ) | — | ||||||||||||||||||
Total sales | 27,750 | 68,986 | 19,672 | 131 | (13,999 | ) | 102,540 | ||||||||||||||||||
Depreciation, depletion, and amortization of tangible assets | (3,362 | ) | (896 | ) | (826 | ) | (49 | ) | — | (5,133 | ) | ||||||||||||||
Operating income | 9,309 | 909 | 777 | (210 | ) | — | 10,785 | ||||||||||||||||||
Amortization of intangible assets | (21 | ) | (99 | ) | (217 | ) | (18 | ) | — | (355 | ) | ||||||||||||||
Equity in income (loss) of affiliates and other items in net operating income | 423 | 275 | 46 | 569 | — | 1,313 | |||||||||||||||||||
Tax on net operating income | (5,063 | ) | (239 | ) | (232 | ) | 429 | — | (5,105 | ) | |||||||||||||||
Net operating income | 4,648 | 846 | 374 | 770 | — | 6,638 | |||||||||||||||||||
Net cost of net debt | — | — | — | — | — | (196 | ) | ||||||||||||||||||
Minority interests and dividends on subsidiaries’ redeemable preferred shares | — | — | — | — | — | (182 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 6,260 | |||||||||||||||||||
ROACE as a percentage | 23% | 8% | 5% | (1) | — | — | 15% | (1) | |||||||||||||||||
Gross expenditures | 6,122 | 1,112 | 1,237 | 186 | — | 8,657 | |||||||||||||||||||
Divestitures at sale price | 603 | 283 | 140 | 1,287 | — | 2,313 | |||||||||||||||||||
Cash flow from operating activities | 7,721 | 1,447 | 1,053 | 785 | — | 11,006 | |||||||||||||||||||
Balance sheet as of December 31, 2002 | |||||||||||||||||||||||||
Property, plant, and equipment, net | 25,189 | 7,061 | 6,047 | 295 | — | 38,592 | |||||||||||||||||||
Intangible assets, net | 264 | 473 | 1,940 | 75 | — | 2,752 | |||||||||||||||||||
Investments in equity affiliates | 1,409 | 1,431 | 328 | 3,466 | — | 6,634 | |||||||||||||||||||
Total non-current assets | 29,109 | 10,341 | 9,279 | 5,281 | — | 54,010 | |||||||||||||||||||
Capital employed | 18,998 | 10,207 | 9,341 | (2) | 3,580 | — | 42,126 |
(1) | Excluding amortization of goodwill for an amount of 131 M€ in the Chemicals segment. |
(2) | After taking into account a 995 M€ pre-tax contingency reserve (civil liability) related to the Toulouse AZF plant explosion. |
F-36
Table of Contents
For the year ended December 31, 2004 | |||||||||||||
Consolidated | |||||||||||||
Adjusted for | Special | statement of | |||||||||||
special items | items | income | |||||||||||
Sales | 122,700 | — | 122,700 | ||||||||||
Operating expenses | (100,921 | ) | (220 | ) | (101,141 | ) | |||||||
Depreciation, depletion and amortization of tangible assets | (4,871 | ) | (627 | ) | (5,498 | ) | |||||||
Operating income | |||||||||||||
Corporate | (215 | ) | — | (215 | ) | ||||||||
Business Segments | 17,123 | (847 | ) | 16,276 | |||||||||
Total operating income | 16,908 | (847 | ) | 16,061 | |||||||||
Interest expense, net | (234 | ) | — | (234 | ) | ||||||||
Dividend income on non-consolidated companies | 164 | — | 164 | ||||||||||
Dividends paid on subsidiaries’ redeemable preferred shares | (6 | ) | — | (6 | ) | ||||||||
Other income/(expense), net | (403 | ) | 2,577 | 2,174 | |||||||||
Provision for income taxes | (8,341 | ) | 25 | (8,316 | ) | ||||||||
Equity in income/(loss) of affiliates | 1,164 | (827 | ) | 337 | |||||||||
Income before amortization of acquisition goodwill | 9,252 | 928 | 10,180 | ||||||||||
Amortization of acquisition goodwill | (113 | ) | (195 | ) | (308 | ) | |||||||
Income before minority interests | 9,139 | 733 | 9,872 | ||||||||||
Minority interests | (253 | ) | (7 | ) | (260 | ) | |||||||
Net income | 8,886 | 726 | 9,612 | ||||||||||
For the year ended December 31, 2004 | ||||||||||||
Consolidated | ||||||||||||
Analysis by | Special | financial | ||||||||||
segment | items | statements | ||||||||||
Depreciation, depletion and amortization of tangible assets | (4,871 | ) | (627 | ) | (5,498 | ) | ||||||
Provisions for depreciation of tangible assets (included in operating expenses) | (70 | ) | (4 | ) | (74 | ) | ||||||
Amortization of intangible assets | (182 | ) | (28 | ) | (210 | ) | ||||||
Amortization of acquisition goodwill | (113 | ) | (195 | ) | (308 | ) | ||||||
Depreciation, depletion, and amortization (cash flow statement) | (5,236 | ) | (854 | ) | (6,090 | ) | ||||||
Tax on net operating income | (8,393 | ) | 25 | N/A | ||||||||
Tax resulting from net debt | 52 | — | N/A | |||||||||
Provision for income taxes | (8,341 | ) | 25 | (8,316 | ) | |||||||
F-37
Table of Contents
For the year ended December 31, 2003 | |||||||||||||
Consolidated | |||||||||||||
Adjusted for | Special | statement of | |||||||||||
special items | items | income | |||||||||||
Sales | 104,652 | — | 104,652 | ||||||||||
Operating expenses | (86,897 | ) | (8 | ) | (86,905 | ) | |||||||
Depreciation, depletion and amortization of tangible assets | (4,960 | ) | (17 | ) | (4,977 | ) | |||||||
Operating income | |||||||||||||
Corporate | (209 | ) | — | (209 | ) | ||||||||
Business Segments | 13,004 | (25 | ) | 12,979 | |||||||||
Total operating income | 12,795 | (25 | ) | 12,770 | |||||||||
Interest expense, net | (232 | ) | — | (232 | ) | ||||||||
Dividend income on non-consolidated companies | 152 | — | 152 | ||||||||||
Dividends paid on subsidiaries’ redeemable preferred shares | (5 | ) | — | (5 | ) | ||||||||
Other income/(expense), net | (670 | ) | (390 | ) | (1,060 | ) | |||||||
Provision for income taxes | (5,449 | ) | 96 | (5,353 | ) | ||||||||
Equity in income of affiliates | 1,086 | — | 1,086 | ||||||||||
Income before amortization of acquisition goodwill | 7,677 | (319 | ) | 7,358 | |||||||||
Amortization of acquisition goodwill | (139 | ) | — | (139 | ) | ||||||||
Income before minority interests | 7,538 | (319 | ) | 7,219 | |||||||||
Minority interests | (194 | ) | — | (194 | ) | ||||||||
Net income | 7,344 | (319 | ) | 7,025 | |||||||||
For the year ended December 31, 2003 | ||||||||||||
Consolidated | ||||||||||||
Analysis by | Special | financial | ||||||||||
segment | items | statements | ||||||||||
Depreciation, depletion and amortization of tangible assets | (4,960 | ) | (17 | ) | (4,977 | ) | ||||||
Provisions for depreciation of tangible assets (included in operating expenses) | (35 | ) | — | (35 | ) | |||||||
Amortization of intangible assets | (154 | ) | — | (154 | ) | |||||||
Amortization of acquisition goodwill | (139 | ) | — | (139 | ) | |||||||
Depreciation, depletion, and amortization (cash flow statement) | (5,288 | ) | (17 | ) | (5,305 | ) | ||||||
Tax on net operating income | (5,516 | ) | 96 | N/A | ||||||||
Tax resulting from net debt | 67 | — | N/A | |||||||||
Provision for income taxes | (5,449 | ) | 96 | (5,353 | ) | |||||||
F-38
Table of Contents
For the year ended December 31, 2002 | |||||||||||||
Consolidated | |||||||||||||
Adjusted for | Special | statement of | |||||||||||
special items | items | income | |||||||||||
Sales | 102,540 | — | 102,540 | ||||||||||
Operating expenses | (86,622 | ) | — | (86,622 | ) | ||||||||
Depreciation, depletion and amortization of tangible assets | (5,133 | ) | (659 | ) | (5,792 | ) | |||||||
Operating income | |||||||||||||
Corporate | (210 | ) | — | (210 | ) | ||||||||
Business Segments | 10,995 | (659 | ) | 10,336 | |||||||||
Total operating income | 10,785 | (659 | ) | 10,126 | |||||||||
Interest expense, net | (195 | ) | — | (195 | ) | ||||||||
Dividend income on non-consolidated companies | 170 | — | 170 | ||||||||||
Dividends paid on subsidiaries’ redeemable preferred shares | (10 | ) | — | (10 | ) | ||||||||
Other income/(expense), net | (41 | ) | 284 | 243 | |||||||||
Provision for income taxes | (4,971 | ) | (63 | ) | (5,034 | ) | |||||||
Equity in income of affiliates | 866 | — | 866 | ||||||||||
Income before amortization of acquisition goodwill | 6,604 | (438 | ) | 6,166 | |||||||||
Amortization of acquisition goodwill | (172 | ) | (40 | ) | (212 | ) | |||||||
Income before minority interests | 6,432 | (478 | ) | 5,954 | |||||||||
Minority interests | (172 | ) | 159 | (13 | ) | ||||||||
Net income | 6,260 | (319 | ) | 5,941 | |||||||||
For the year ended December 31, 2002 | ||||||||||||
Consolidated | ||||||||||||
Analysis by | Special | financial | ||||||||||
segment | items | statements | ||||||||||
Depreciation, depletion and amortization of tangible assets | (5,133 | ) | (659 | ) | (5,792 | ) | ||||||
Provisions for depreciation of tangible assets (included in operating expenses) | (53 | ) | — | (53 | ) | |||||||
Amortization of intangible assets | (183 | ) | (1 | ) | (184 | ) | ||||||
Amortization of acquisition goodwill | (172 | ) | (40 | ) | (212 | ) | ||||||
Depreciation, depletion, and amortization (cash flow statement) | (5,541 | ) | (700 | ) | (6,241 | ) | ||||||
Tax on net operating income | (5,105 | ) | (63 | ) | N/A | |||||||
Tax resulting from net debt | 134 | — | N/A | |||||||||
Provision for income taxes | (4,971 | ) | (63 | ) | (5,034 | ) | ||||||
F-39
Table of Contents
For the year ended December 31, 2004 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Restructuring charges | — | (50 | ) | (69 | ) | — | (119 | ) | ||||||||||||
Asset impairment charges | — | (34 | ) | (597 | ) | — | (631 | ) | ||||||||||||
Other items | — | — | (97 | ) | — | (97 | ) | |||||||||||||
Total | — | (84 | ) | (763 | ) | — | (847 | ) | ||||||||||||
For the year ended December 31, 2003 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Restructuring charges | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Asset impairment charges | — | — | (17 | ) | — | (17 | ) | |||||||||||||
Other items | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Total | — | — | (25 | ) | — | (25 | ) | |||||||||||||
For the year ended December 31, 2002 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Restructuring charges | — | (33 | ) | 4 | — | (29 | ) | |||||||||||||
Asset impairment charges | (461 | ) | (69 | ) | (129 | ) | — | (659 | ) | |||||||||||
Other items | 75 | (34 | ) | (12 | ) | — | 29 | |||||||||||||
Total | (386 | ) | (136 | ) | (137 | ) | — | (659 | ) | |||||||||||
For the year ended December 31, 2004 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Impact of the Sanofi-Aventis merger | — | — | — | 1,690 | 1,690 | |||||||||||||||
Restructuring charges | — | (31 | ) | (112 | ) | — | (143 | ) | ||||||||||||
Asset impairment charges | (114 | ) | (21 | ) | (553 | ) | — | (688 | ) | |||||||||||
Gains on sales of assets | — | — | — | 53 | 53 | |||||||||||||||
Toulouse — AZF plant explosion | — | — | (98 | ) | — | (98 | ) | |||||||||||||
Other items | (34 | ) | (25 | ) | (93 | ) | 64 | (88 | ) | |||||||||||
Total | (148 | ) | (77 | ) | (856 | ) | 1,807 | 726 | ||||||||||||
F-40
Table of Contents
For the year ended December 31, 2003 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Restructuring charges | — | — | (144 | ) | — | (144 | ) | |||||||||||||
Asset impairment charges | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Gains/(losses) on sales of assets | — | — | (8 | ) | 30 | 22 | ||||||||||||||
Toulouse — AZF plant explosion | — | — | — | — | — | |||||||||||||||
Other items | — | — | (186 | ) | — | (186 | ) | |||||||||||||
Total | (349 | ) | 30 | (319 | ) | |||||||||||||||
For the year ended December 31, 2002 | ||||||||||||||||||||
Upstream | Downstream | Chemicals | Corporate | Total | ||||||||||||||||
Restructuring charges | — | (21 | ) | (137 | ) | — | (158 | ) | ||||||||||||
Asset impairment charges | (249 | ) | (81 | ) | (137 | ) | — | (467 | ) | |||||||||||
Gains on sales of assets | — | — | — | 626 | 626 | |||||||||||||||
Toulouse — AZF plant explosion | — | — | (61 | ) | — | (61 | ) | |||||||||||||
Other items | (202 | ) | (28 | ) | (16 | ) | (13 | ) | (259 | ) | ||||||||||
Total | (451 | ) | (130 | ) | (351 | ) | 613 | (319 | ) | |||||||||||
For the year ended December 31, 2004 | ||||||||||||||||||||||||
Far East | ||||||||||||||||||||||||
Rest of | North | and rest of | ||||||||||||||||||||||
France | Europe | America | Africa | the world | Total | |||||||||||||||||||
Non-Group sales | 23,427 | 41,853 | 17,984 | 5,527 | 33,909 | 122,700 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 5,322 | 14,069 | 3,264 | 7,441 | 8,234 | 38,330 | ||||||||||||||||||
Gross expenditures | 1,989 | 1,998 | 755 | 2,004 | 1,922 | 8,668 |
For the year ended December 31, 2003 | ||||||||||||||||||||||||
Far East | ||||||||||||||||||||||||
Rest of | North | and rest of | ||||||||||||||||||||||
France | Europe | America | Africa | the world | Total | |||||||||||||||||||
Non-Group sales | 20,739 | 36,682 | 13,968 | 4,352 | 28,911 | 104,652 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 4,987 | 14,288 | 3,676 | 7,108 | 8,244 | 38,303 | ||||||||||||||||||
Gross expenditures | 1,160 | 1,645 | 580 | 2,012 | 2,331 | 7,728 |
For the year ended December 31, 2002 | ||||||||||||||||||||||||
Far East | ||||||||||||||||||||||||
Rest of | North | and rest of | ||||||||||||||||||||||
France | Europe | America | Africa | the world | Total | |||||||||||||||||||
Non-Group sales | 20,649 | 35,531 | 12,013 | 4,240 | 30,107 | 102,540 | ||||||||||||||||||
Intangible assets and property, plant, and equipment, net | 4,815 | 16,317 | 4,447 | 7,416 | 8,349 | 41,344 | ||||||||||||||||||
Gross expenditures | 1,251 | 2,118 | 921 | 2,086 | 2,281 | 8,657 |
F-41
Table of Contents
As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
Accumulated | ||||||||||||||||
Cost | amortization | Net | Net | |||||||||||||
Goodwill | 2,353 | (1,248 | ) | 1,105 | 1,348 | |||||||||||
Other Intangibles | 2,670 | (1,867 | ) | 803 | 669 | |||||||||||
Total intangible assets(1) | 5,023 | (3,115 | ) | 1,908 | 2,017 | |||||||||||
(1) | As of December 31, 2003, aggregate cost and accumulated amortization amounted to 4,840 M€ and 2,823 M€, respectively. |
As of December 31, | |||||||||||||||||
2004 | 2003 | ||||||||||||||||
Accumulated | |||||||||||||||||
Cost | amortization | Net | Net | ||||||||||||||
Upstream properties | |||||||||||||||||
Proved properties | 54,355 | (35,419 | ) | 18,936 | 19,759 | ||||||||||||
Unproved properties | 617 | (403 | ) | 214 | 284 | ||||||||||||
Work in-progress | 4,307 | (26 | ) | 4,281 | 2,885 | ||||||||||||
Total upstream properties | 59,279 | (35,848 | ) | 23,431 | 22,928 | ||||||||||||
Other Property, Plant, and Equipment | |||||||||||||||||
Land and preparation cost | 1,556 | (288 | ) | 1,268 | 1,271 | ||||||||||||
Machinery, plant, and equipment (including transportation equipment) | 20,880 | (15,239 | ) | 5,641 | 5,980 | ||||||||||||
Buildings | 6,062 | (3,745 | ) | 2,317 | 2,455 | ||||||||||||
Construction in progress | 1,278 | (14 | ) | 1,264 | 1,401 | ||||||||||||
Other | 7,789 | (5,288 | ) | 2,501 | 2,251 | ||||||||||||
Total other property, plant, and equipment | 37,565 | (24,574 | ) | 12,991 | 13,358 | ||||||||||||
Total property, plant, and equipment(1) | 96,844 | (60,422 | ) | 36,422 | 36,286 | ||||||||||||
(1) | As of December 31, 2003 aggregate cost and accumulated depreciation, depletion and amortization amounted to 93,819 M€ and 57,533 M€, respectively. |
F-42
Table of Contents
As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
Accumulated | ||||||||||||||||
Cost | amortization | Net | Net | |||||||||||||
Machinery, plant, and equipment | 570 | (199 | ) | 371 | 378 | |||||||||||
Buildings | 32 | (23 | ) | 9 | 14 | |||||||||||
Total | 602 | (222 | ) | 380 | 392 | |||||||||||
As of | Translation | As of | ||||||||||||||||||||||||
January 1, 2004 | Acquisitions | Disposals | Amortization | adjustment | Other | December 31, 2004 | ||||||||||||||||||||
36,286 | 6,903 | (129 | ) | (5,572 | ) | (1,210 | ) | 144 | 36,422 |
As of December 31, | For the year ended December 31, | |||||||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | 2002 | ||||||||||||||||||||||
Equity in | Equity in | Equity in | ||||||||||||||||||||||||||
Equity | Equity | income/ | income/ | income/ | ||||||||||||||||||||||||
% owned | % owned | value | value | (loss) | (loss) | (loss) | ||||||||||||||||||||||
Sanofi-Aventis(1) | 13.25% | 25.63% | 5,772 | 3,703 | (323 | ) | 478 | 412 | ||||||||||||||||||||
Cepsa | 45.28% | 45.28% | 1,633 | 1,462 | 289 | 269 | 200 | |||||||||||||||||||||
NLNG | 15.00% | 15.00% | 468 | 417 | 158 | 146 | 59 | |||||||||||||||||||||
Qatargas | 10.00% | 10.00% | 127 | 121 | 42 | 42 | 45 | |||||||||||||||||||||
Qatar Petrochemical Company Ltd. | 20.00% | 20.00% | 111 | 104 | 32 | 22 | — | |||||||||||||||||||||
Gasoducto Gasandes (Argentina) SA | 56.50% | 56.50% | 110 | 117 | 6 | — | 7 | |||||||||||||||||||||
Ocensa | 15.20% | 15.20% | 62 | 67 | — | — | — | |||||||||||||||||||||
Total Tractebel Emirate Power Company | 50.00% | 50.00% | 62 | 61 | 4 | 4 | 2 | |||||||||||||||||||||
Hidroneuquen Piedra del Aguila | 41.30% | 41.30% | 49 | 13 | 41 | (33 | ) | (20 | ) | |||||||||||||||||||
Abu Dhabi Gas Ind. Ltd. | 15.00% | 15.00% | 46 | 50 | — | — | — | |||||||||||||||||||||
Gasinvest SA | 27.23% | 27.23% | 43 | 105 | (61 | ) | — | (2 | ) | |||||||||||||||||||
Gasoducto Gasandes SA (Chile) | 56.50% | 56.50% | 33 | 34 | 2 | — | (1 | ) | ||||||||||||||||||||
Humber Power Ltd. | 40.00% | 40.00% | 23 | 20 | 24 | 13 | 18 | |||||||||||||||||||||
Gisco | 10.00% | 10.00% | 12 | 25 | 5 | 5 | 25 | |||||||||||||||||||||
CFMH(2) | 0.00% | 45.00% | — | 128 | 32 | 33 | 37 | |||||||||||||||||||||
Other | N/A | N/A | 446 | 442 | 86 | 107 | 84 | |||||||||||||||||||||
Total investments | 8,997 | 6,869 | 337 | 1,086 | 866 | |||||||||||||||||||||||
Loans to equity affiliates | 877 | 964 | ||||||||||||||||||||||||||
Total investments and loans | 9,874 | 7,833 | ||||||||||||||||||||||||||
(1) | Sanofi-Synthelabo as of December 31, 2003 and for the years ended December 31, 2003 and 2002. |
(2) | The investment in CFMH was disposed of in December 2004. |
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Fixed assets | 4,109 | |||
Current assets | 2,799 | |||
Total | 6,908 | |||
Shareholders’ equity | 3,292 | |||
Long-term debt and other long-term liabilities | 1,554 | |||
Current debt and other short-term liabilities | 2,062 | |||
Total | 6,908 | |||
Fixed assets | 62,143 | |||
Current assets | 16,070 | |||
Total | 78,213 | |||
Shareholders’ equity | 35,715 | |||
Minority interest | 196 | |||
Long-term debt and other long-term liabilities | 14,371 | |||
Current debt and other short-term liabilities | 27,931 | |||
Total | 78,213 | |||
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As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
Valuation | ||||||||||||||||
Cost | allowance | Net | Net | |||||||||||||
Publicly traded equity securities | ||||||||||||||||
BNP-Paribas | — | — | — | 65 | ||||||||||||
Santander Central Hispano (SCH) | 93 | — | 93 | 93 | ||||||||||||
Areva | 69 | — | 69 | 69 | ||||||||||||
Other | 7 | — | 7 | 79 | ||||||||||||
Total publicly traded equity securities | 169 | — | 169 | 306 | ||||||||||||
Market value of publicly traded equity securities | 270 | 406 | ||||||||||||||
Other equity securities | ||||||||||||||||
BBPP | 77 | — | 77 | 83 | ||||||||||||
Wepec | 52 | — | 52 | 52 | ||||||||||||
Oman LNG LLC | 6 | — | 6 | 6 | ||||||||||||
BTC Limited | 108 | — | 108 | 61 | ||||||||||||
Other | 1,487 | (809 | ) | 678 | 654 | |||||||||||
Total other equity securities(1) | 1,730 | (809 | ) | 921 | 856 | |||||||||||
Total other investments(2) | 1,899 | (809 | ) | 1,090 | 1,162 | |||||||||||
(1) | Investments in subsidiaries excluded from consolidation after considering their materiality to the Company’s operations accounted for 408 M€ and 471 M€ as of December 31, 2004 and 2003, respectively. |
(2) | As of December 31, 2003 the aggregate cost of other investments and valuation allowances amounted to 1,996 M€ and 834 M€, respectively. |
As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
Valuation | ||||||||||||||||
Cost | allowance | Net | Net | |||||||||||||
Deferred income tax assets | 1,534 | — | 1,534 | 1,504 | ||||||||||||
Loans and advances(1) | 1,519 | (607 | ) | 912 | 826 | |||||||||||
Other | 793 | — | 793 | 822 | ||||||||||||
Total(2) | 3,846 | (607 | ) | 3,239 | 3,152 | |||||||||||
(1) | Excluding loans to equity affiliates (Note 8). |
(2) | As of December 31, 2003, the aggregate cost of other investments and valuation allowances of other non-current assets amounted to 3,652 M€ and 500 M€, respectively. |
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As of December 31, | ||||||||
2004 | 2003 | |||||||
Crude oil and natural gas | 2,641 | 1,916 | ||||||
Refined products and products in process | 3,737 | 3,049 | ||||||
Chemical products | 2,385 | 2,193 | ||||||
Supplies and other inventories | 540 | 535 | ||||||
Total under FIFO (First in First out) method | 9,303 | 7,693 | ||||||
Reserve for crude oil price changes and for LIFO adjustment | (2,250 | ) | (1,556 | ) | ||||
Inventories, net | 7,053 | 6,137 | ||||||
As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
Valuation | ||||||||||||||||
Cost | allowance | Net | Net | |||||||||||||
Accounts receivable(1) | 14,512 | (487 | ) | 14,025 | 12,357 | |||||||||||
Prepaid expenses and other current assets | ||||||||||||||||
Other receivables | 1,350 | — | 1,350 | 1,164 | ||||||||||||
Recoverable taxes | 1,886 | — | 1,886 | 1,515 | ||||||||||||
Deferred tax assets, short-term | 232 | — | 232 | 216 | ||||||||||||
Prepaid expenses | 475 | — | 475 | 453 | ||||||||||||
Other current assets | 1,458 | (38 | ) | 1,420 | 1,431 | |||||||||||
Total | 5,401 | (38 | ) | 5,363 | 4,779 | |||||||||||
(1) | As of December 31, 2003, the aggregate cost and valuation allowances of accounts receivable amounted to 12,875 M€ and 518 M€, respectively. |
F-46
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Number of | |||||
Common shares | |||||
Authorized Capital | |||||
As of December 31, 2001 | 1,128,269,536 | ||||
Decrease in authorized shares | (5,411,821 | ) | |||
As of December 31, 2002 | 1,122,857,715 | ||||
Decrease in authorized shares | (43,290,366 | ) | |||
As of December 31, 2003 | 1,079,567,349 | ||||
Decrease in authorized shares | (9,806,215 | ) | |||
As of December 31, 2004 | 1,069,761,134 | ||||
Number of TOTAL | |||||
Common Shares | |||||
Shares issued and outstanding | |||||
As of January 1, 2002 | 705,934,959 | ||||
Shares issued in connection with: | |||||
Capital increase reserved for employees | 2,785,214 | ||||
Exercise of share subscription options | 447,181 | ||||
Exchange guarantee offered to the beneficiaries of Elf Aquitaine share subscription options | 564,471 | ||||
Conversion of U.S. warrants | 901,930 | ||||
Cancellation of shares(1) | (23,443,245 | ) | |||
As of December 31, 2002 | 687,190,510 | ||||
Shares issued in connection with: | |||||
Exchange guarantee offered to the beneficiaries of Elf Aquitaine share subscription options | 1,092,082 | ||||
Conversion of U.S. warrants | 835,644 | ||||
Cancellation of shares(2) | (40,000,000 | ) | |||
As of December 31, 2003 | 649,118,236 | ||||
Shares issued in connection with: | |||||
Capital increase reserved for employees | 3,434,830 | ||||
Exercise of share subscription options | 950 | ||||
Exchange guarantee offered to the beneficiaries of Elf Aquitaine share subscription options | 2,335,024 | ||||
Cancellation of shares(3) | (19,873,932 | ) | |||
As of December 31, 2004(4) | 635,015,108 | ||||
(1) | Decided by the Board of Directors on November 19, 2002. |
(2) | Decided by the Board of Directors on July 16, 2003 and November 6, 2003. |
(3) | Decided by the Board of Directors on November 9, 2004. |
(4) | Including 28,932,967 treasury shares deducted from shareholders’ equity. |
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For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Number of shares as of January 1 | 649,118,236 | 687,190,510 | 705,934,959 | ||||||||||
Number of shares issued during the year (pro rated) | |||||||||||||
Capital increase reserved for employees | 2,289,887 | — | 1,392,607 | ||||||||||
Exercise of share subscription options | 475 | — | 223,591 | ||||||||||
Exchange guarantee offered to the beneficiaries of Elf Aquitaine | 1,167,512 | 546,041 | 282,236 | ||||||||||
Conversion of U.S. warrants | — | 417,822 | 450,965 | ||||||||||
TOTAL shares held by subsidiaries and deducted from shareholders’ equity | (37,987,555 | ) | (55,256,066 | ) | (45,083,376 | ) | |||||||
Weighted-average number of shares | 614,588,555 | 632,898,307 | 663,200,982 | ||||||||||
Dilutive effect | |||||||||||||
Share subscription options | 528,916 | 282,777 | — | ||||||||||
Shares issued per exercise of exchange guarantee offered to Elf Aquitaine share subscription options holders | 763,985 | 1,945,801 | 2,564,295 | ||||||||||
U.S. warrants | — | — | 302,705 | ||||||||||
Weighted-average number of diluted shares | 615,881,456 | 635,126,885 | 666,067,982 | ||||||||||
Earnings on weighted-average number of shares | 15.64 | 11.10 | 8.96 | |||||||||
Earnings on weighted-average number of diluted shares | 15.61 | 11.06 | 8.92 |
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— | 9,633,602 shares allocated to covering share purchase option plans for Company employees; these shares are recorded as short-term investments and maintained within the total assets, | |
— | 4,356,068 shares purchased for cancellation on November and December 2004 pursuant to the authorization granted by the Ordinary and Extraordinary Shareholders’ Meeting held on May 14, 2004 and that are deducted from the consolidated shareholders’ equity. |
— | 505,918 shares held by a consolidated subsidiary, Total Nucléaire, indirectly controlled by TOTAL S.A. These shares were initially acquired in order to realize short-term cash investments and are recorded in short-term investments in the consolidated financial statements; | |
— | 24,576,899 shares held by subsidiaries of Elf Aquitaine, Financière Valorgest, Sogapar and Fingestval (according to the agreement entered into on September 12, 1999 between Totalfina and Elf Aquitaine, Elf Aquitaine committed on behalf of these subsidiaries to tender to the public exchange offer initiated by Totalfina the 3,798,000, 702,000 and 12,315,760 Elf Aquitaine shares respectively owned by these subsidiaries at that date; consequently, these subsidiaries received respectively 5,550,926, 1,026,000 and 17,999,973 TOTAL shares). These shares were deducted from the consolidated shareholders’ equity. |
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As of | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Balance at beginning of the year | 664 | 724 | ||||||
Net income | 260 | 194 | ||||||
Cash dividend | (207 | ) | (124 | ) | ||||
Translation adjustments | (19 | ) | (68 | ) | ||||
Other changes, net(1) | (69 | ) | (62 | ) | ||||
Balance at year end | 629 | 664 | ||||||
(1) | Mainly due to the purchase of minority interests of Atofina and Gaz du Sud-Ouest (GSO) in 2004 and to the sale of the Paints business in 2003. |
— | TOTAL American Holding, Inc. (TAH), (USA). | |
— | TOTAL Energy Resources Finance, Inc. (TERFIN), (USA). | |
— | TOTAL Energy Capital, Inc. (TECI), (USA). |
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As of December 31, | ||||||||||||||||
2004 | 2003 | |||||||||||||||
M$ | M€ | M$ | M€ | |||||||||||||
TERFIN | 50 | 37 | 100 | 79 | ||||||||||||
TECI | 150 | 110 | 150 | 119 | ||||||||||||
TAH | — | — | 250 | 198 | ||||||||||||
Total | 147 | 396 | ||||||||||||||
As of January 1, 2003 | 477 | |||
Translation adjustment | (81 | ) | ||
As of December 31, 2003 | 396 | |||
Repayment | (241 | ) | ||
Translation adjustment | (8 | ) | ||
As of December 31, 2004 | 147 | |||
As of | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Pension benefits liability | 2,765 | 2,864 | ||||||
Other benefits liability | 548 | 557 | ||||||
Restructuring reserves | 287 | 397 | ||||||
Total | 3,600 | 3,818 | ||||||
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Pension benefits | Other benefits | ||||||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation at beginning of year | 7,797 | 7,947 | 582 | 678 | |||||||||||||
Service cost | 141 | 143 | 10 | 12 | |||||||||||||
Interest cost | 414 | 404 | 31 | 36 | |||||||||||||
Curtailments | (1 | ) | (18 | ) | — | (3 | ) | ||||||||||
Settlements | (133 | ) | (68 | ) | — | (3 | ) | ||||||||||
Special termination benefits | 10 | 21 | — | — | |||||||||||||
Plan participants’ contributions | 15 | 12 | — | — | |||||||||||||
Benefits paid | (407 | ) | (392 | ) | (42 | ) | (31 | ) | |||||||||
Plan amendments | 76 | 7 | 65 | (100 | ) | ||||||||||||
Actuarial loss | 260 | 151 | 33 | 58 | |||||||||||||
Translation adjustment and other | (55 | ) | (410 | )(3) | (4 | ) | (65 | ) | |||||||||
Benefit obligation at end of year | 8,117 | 7,797 | 675 | 582 | |||||||||||||
Change in fair value of Plan Assets | |||||||||||||||||
Fair value of plan assets at beginning of year | (5,026 | ) | (4,786 | ) | — | — | |||||||||||
Actual return on plan assets | (455 | ) | (469 | ) | — | — | |||||||||||
Settlements | 165 | 35 | — | — | |||||||||||||
Plan participants’ contributions | (15 | ) | (12 | ) | — | — | |||||||||||
Company contributions | (414 | ) | (337 | )(2) | — | — | |||||||||||
Benefits paid | 319 | 289 | — | — | |||||||||||||
Translation adjustment and other | 64 | 254 | (3) | — | — | ||||||||||||
Fair value of plan assets at end of year | (5,362 | ) | (5,026 | ) | — | — | |||||||||||
Unfunded status | 2,755 | 2,771 | 675 | 582 | |||||||||||||
Unrecognized transition asset/(obligation) | 10 | 10 | (8 | ) | (7 | ) | |||||||||||
Unrecognized prior service cost | (134 | ) | (68 | ) | 19 | 93 | |||||||||||
Unrecognized actuarial (losses) | (1,892 | ) | (1,897 | ) | (138 | ) | (111 | ) | |||||||||
Minimum Liability Adjustment (MLA)(1) | 1,316 | 1,316 | — | — | |||||||||||||
Net amount recognized | 2,055 | 2,132 | 548 | 557 | |||||||||||||
Accrued benefit cost | 2,765 | 2,864 | 548 | 557 | |||||||||||||
Prepaid benefit cost | (710 | ) | (732 | ) | — | — |
(1) | Adjustment according to U.S. GAAP, equal to the excess of the Accumulated Benefit Obligation over fair value of plan assets. |
(2) | The Group covered certain employee pension benefit plans through insurance companies for an amount of 272 M€ for the year ended December 31, 2004 and an amount of 239 M€ for the year ended December 31, 2003. |
(3) | In 2003, the change in foreign currency translation and other includes the sale of the Paints business which amounts to (257) M€ of Projected Benefit Obligation and 150 M€ of fair value of plan assets. |
F-52
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Pensions | Other | |||||||
benefits | benefits | |||||||
2005 | 411 | 42 | ||||||
2006 | 417 | 43 | ||||||
2007 | 439 | 43 | ||||||
2008 | 445 | 43 | ||||||
2009 | 459 | 43 | ||||||
2010-2014 | 2,493 | 217 |
As of | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Equities | 44 | % | 47 | % | ||||
Debt securities | 50 | % | 49 | % | ||||
Real estate | 3 | % | 2 | % | ||||
Other | 3 | % | 2 | % |
Pension benefits | Other benefits | ||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | ||||||||||||||||||||
Discount rate | 5.12 | % | 5.41 | % | 5.64 | % | 5.28 | % | 5.83 | % | 6.07 | % | |||||||||||||
Average expected rate of salary increase | 3.66 | % | 3.74 | % | 3.81 | % | — | — | — | ||||||||||||||||
Expected rate of healthcare inflation | |||||||||||||||||||||||||
Initial | — | — | — | 5.70 | % | 6.37 | % | 7.85 | % | ||||||||||||||||
Ultimate | — | — | — | 4.15 | % | 3.83 | % | 4.17 | % |
Pension benefits | Other benefits | |||||||||||||||||||||||
For the year ended | For the year ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | |||||||||||||||||||
Service cost | 141 | 143 | 153 | 10 | 12 | 11 | ||||||||||||||||||
Interest cost | 414 | 404 | 423 | 31 | 36 | 43 | ||||||||||||||||||
Expected return on plan assets | (348 | ) | (307 | ) | (421 | ) | — | — | — | |||||||||||||||
Amortization of transition obligation (asset) | — | (5 | ) | (4 | ) | 1 | 1 | 1 | ||||||||||||||||
Amortization of prior service cost | 39 | 34 | 14 | (1 | ) | (5 | ) | (4 | ) | |||||||||||||||
Amortization of actuarial losses (gains) | 121 | 105 | 33 | 5 | 6 | (1 | ) | |||||||||||||||||
Curtailment | (1 | ) | (7 | ) | (35 | ) | — | (7 | ) | — | ||||||||||||||
Settlement | 46 | (9 | ) | (1 | ) | — | (2 | ) | — | |||||||||||||||
Special termination benefits | 10 | 21 | 5 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | 422 | 379 | 167 | 46 | 41 | 50 | ||||||||||||||||||
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Pension benefits | Other benefits | ||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | ||||||||||||||||||||
Discount rate | 5.41 | % | 5.64 | % | 5.91 | % | 5.83 | % | 6.07 | % | 6.41 | % | |||||||||||||
Average expected rate of salary increase | 3.74 | % | 3.81 | % | 3.74 | % | — | — | — | ||||||||||||||||
Rate of return on plan assets | 6.96 | % | 6.99 | % | 7.45 | % | — | — | — | ||||||||||||||||
Expected rate of healthcare inflation | |||||||||||||||||||||||||
Initial | — | — | — | 6.37 | % | 7.85 | % | 5.71 | % | ||||||||||||||||
Ultimate | — | — | — | 3.83 | % | 4.17 | % | 3.88 | % |
1% point | 1% point | |||||||
increase | decrease | |||||||
Effect on benefit obligation | 66 | (54 | ) | |||||
Effect on total of service and interest cost components | 9 | (5 | ) |
As of December 31, | ||||||||
2004 | 2003 | |||||||
Accumulated Benefit Obligation | 5,978 | 5,368 | ||||||
Projected Benefit Obligation | 6,399 | 5,699 | ||||||
Fair value of plan assets | (3,634 | ) | (2,988 | ) |
As of | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Litigation and accrued penalty claims | 521 | 489 | ||||||
Major refinery turnarounds | 298 | 341 | ||||||
Environmental contingencies | 627 | 500 | ||||||
Asset retirement obligations | 3,334 | 3,112 | ||||||
Other long-term liabilities | 1,384 | 1,622 | ||||||
Deposits received | 285 | 280 | ||||||
Total | 6,449 | 6,344 | ||||||
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— | the contingency reserve related to the Toulouse AZF plant explosion (civil liability) for an amount of 110 M€ as of December 31, 2004, | |
— | provisions related to restructuring of activities in the Chemicals segment for an amount of 159 M€ as of December 31, 2004. |
As of | As of | |||||||||||||||||||||
January 1, | Translation | December 31, | ||||||||||||||||||||
2004 | Allowances | Reversals | adjustment | Other | 2004 | |||||||||||||||||
6,344 | 1,134 | (1,315 | ) | (138 | ) | 424 | 6,449 |
— | major refinery turnarounds for 210 M€, | |
— | an additional allowance of the contingency reserve related to the Toulouse AZF plant explosion (civil liability), for an amount of 150 M€, | |
— | environmental contingencies in the Chemicals segment for 104 M€. |
— | the contingency reserve related to the Toulouse AZF plant explosion (civil liability), for an amount of 316 M€, | |
— | major refinery turnarounds for 251 M€, | |
— | provisions for restructuring and social plans for 136 M€. |
As of | Spending on | As of | ||||||||||||||||||||||||
January 1, | Revision in | New | existing | Translation | December 31, | |||||||||||||||||||||
2004 | Accretion | estimates | obligations | obligations | adjustment | 2004 | ||||||||||||||||||||
3,112 | 143 | 187 | 130 | (161 | ) | (77 | ) | 3,334 |
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As of December 31, | |||||||||||||||||||||||||
2004 | 2003 | ||||||||||||||||||||||||
Secured | Unsecured | Total | Secured | Unsecured | Total | ||||||||||||||||||||
Debenture loans | — | 8,208 | 8,208 | — | 7,763 | 7,763 | |||||||||||||||||||
Capital lease obligations | 325 | — | 325 | 360 | — | 360 | |||||||||||||||||||
Banks and other: | |||||||||||||||||||||||||
Fixed rate | 4 | 284 | 288 | 7 | 236 | 243 | |||||||||||||||||||
Floating rate | 137 | 776 | 913 | 93 | 1,324 | 1,417 | |||||||||||||||||||
Total | 466 | 9,268 | 9,734 | 460 | 9,323 | 9,783 | |||||||||||||||||||
As of December 31, | ||||||||
2004 | 2003 | |||||||
Parent company(1) | ||||||||
6.875% Bonds 1997-2004 (USD 300 million) | — | 237 | ||||||
4% Bonds 2000-2004 (CHF 200 million) | — | 94 | ||||||
4% Bonds 2000-2004 (CHF 100 million) | — | 48 | ||||||
4% Bonds 2000-2004 (CHF 150 million) | — | 73 | ||||||
5.625% Bonds 2000-2004 (EUR 100 million) | — | 71 | ||||||
81/5% Bonds 1995-2005 (FRF 500 million) | 71 | 77 | ||||||
7.62% single Coupon Bonds 1995-2005 (FRF 950 million) | 136 | 146 | ||||||
71/2 % Bonds 1995-2005 (FRF 400 million) | 57 | 61 | ||||||
6.90% Bonds 1996-2006 (FRF 990 million) | 144 | 155 | ||||||
6.75% Bonds 1996-2008 (FRF 950 million) | 134 | 145 | ||||||
6.75% Bonds 1996-2008 (FRF 800 million) | 116 | 125 | ||||||
6.75% Bonds 1996-2008 (FRF 700 million) | 98 | 106 | ||||||
5.03% Bonds 1997-2007 (FRF 620 million) | 72 | 78 | ||||||
6.80% Bonds 1997-2007 (ESP 12 billion) | 61 | 66 | ||||||
6.20% Bonds 1997-2009 (FRF 900 million) | 127 | 137 | ||||||
Pibor 3-months + 0.38% Bonds 1998-2008 (FRF 230 million) | 27 | 30 | ||||||
5.125% Bonds 1998-2009 (FRF 1 billion) | 122 | 131 | ||||||
5% Bonds 1998-2013 (FRF 1 billion) | 123 | 132 | ||||||
3.875% Bonds 1999-2006 (EUR 300 million) | 237 | 257 | ||||||
3.25% Bonds 1999-2005 (CHF 200 million) | 96 | 104 | ||||||
3.5% Bonds 2000-2006 (CHF 200 million) | 93 | 100 | ||||||
6.875% Bonds 2000-2005 (GBP 150 million) | 176 | 190 | ||||||
5.375% Bonds 2000-2005 (EUR 250 million) | 167 | 180 | ||||||
3.25% Bonds 2000-2005 (CHF 100 million) | 45 | 48 | ||||||
5.75% Bonds 2000-2005 (EUR 500 million) | 318 | 343 | ||||||
5.65% Bonds 2000-2010 (EUR 100 million) | 65 | 70 |
F-56
Table of Contents
As of December 31, | ||||||||
2004 | 2003 | |||||||
7% Bonds 2000-2005 (USD 500 million) | 367 | 396 | ||||||
Short-term portion (less than one year) | (1,433 | ) | (524 | ) | ||||
Total parent company | 1,419 | 3,076 | ||||||
Elf Aquitaine | ||||||||
4.5% Bonds 1999-2009 (EUR 1 billion) | 1,000 | 1,000 | ||||||
7% Bonds 1994-2004 (FRF 1.5 billion) | — | 218 | ||||||
2.25% Bonds 1999-2004 (CHF 250 million) | — | 133 | ||||||
Short-term portion (less than one year) | — | (351 | ) | |||||
Total Elf Aquitaine | 1,000 | 1,000 | ||||||
TOTAL Capital S.A.(1) | ||||||||
3% Bonds 2002-2007 (CHF 600 million) | 267 | 288 | ||||||
4.74% Bonds 2002-2007 (USD 75 million) | 55 | 60 | ||||||
5.125% Bonds 2002-2007 (USD 300 million) | 220 | 237 | ||||||
5.89% Bonds 2002-2012 (USD 20 million) | 15 | 16 | ||||||
3% Bonds 2002-2007 (CHF 400 million) | 176 | 190 | ||||||
4.75% Bonds 2002-2007 (USD 250 million) | 183 | 198 | ||||||
LIBOR USD 3 months + 0.06% Bonds 2002-2007 (USD 50 million) | 37 | 40 | ||||||
LIBOR USD 3 months + 0.065 % Bonds 2002-2007 (USD 50 million) | 37 | 40 | ||||||
5% Bonds 2002-2007 (GBP 150 million) | 169 | 182 | ||||||
2.5% Bonds 2002-2007 (CHF 200 million) | 97 | 105 | ||||||
5% Bonds 2002-2007 (GBP 75 million) | 87 | 94 | ||||||
5% Bonds 2003-2007 (GBP 50 million) | 58 | 63 | ||||||
5% Bonds 2003-2008 (AUD 100 million) | 42 | 45 | ||||||
3.5% Bonds 2003-2008 (EUR 500 million) | 389 | 419 | ||||||
4.25% Bonds 2003-2008 (CAD 100 million) | 48 | 52 | ||||||
4.50% Bonds 2003-2013 (USD 30 million) | 22 | 24 | ||||||
3.25% Bonds 2003-2008 (USD 250 million) | 184 | 198 | ||||||
5% Bonds 2003-2008 (AUD 100 million) | 45 | 48 | ||||||
3.50% Bonds 2003-2008 (EUR 100 million) | 78 | 84 | ||||||
3.50% Bonds 2003-2008 (EUR 150 million) | 122 | 132 | ||||||
2% Bonds 2003-2008 (CHF 300 million) | 159 | 172 | ||||||
2.375% Bonds 2003-2009 (CHF 300 million) | 157 | 169 | ||||||
2% Bonds 2003-2008 (CHF 200 million) | 107 | 115 | ||||||
6.25% Bonds 2003-2009 (AUD 100 million) | 53 | 57 | ||||||
3.50% Bonds 2003-2009 (USD 500 million) | 367 | 396 | ||||||
2.375% Bonds 2003-2010 (CHF 300 million) | 170 | 183 | ||||||
4.875% Bonds 2004-2010 (GBP 250 million) | 341 | — | ||||||
2.375% Bonds 2004-2010 (CHF 200 million) | 119 | — | ||||||
3.75% Bonds 2004-2010 (EUR 500 million) | 463 | — | ||||||
6% Bonds 2004-2009 (AUD 100 million) | 58 | — | ||||||
6% Bonds 2004-2009 (AUD 50 million) | 28 | — | ||||||
4.875% Bonds 2004-2010 (GBP 100 million) | 135 | — | ||||||
5.75% Bonds 2004-2011 (AUD 100 million) | 56 | — |
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Table of Contents
As of December 31, | ||||||||
2004 | 2003 | |||||||
4% Bonds 2004-2010 (CAD 100 million) | 56 | — | ||||||
4.875% Bonds 2004-2010 (GBP 150 million) | 195 | — | ||||||
3.25% Bonds 2004-2008 (USD 50 million) | 37 | — | ||||||
3.25% Bonds 2004-2008 (USD 50 million) | 37 | — | ||||||
5% Bonds 2004-2007 (GBP 75 million) | 100 | — | ||||||
3.25% Bonds 2004-2008 Bonds (USD 100 million) | 73 | — | ||||||
4.875% Bonds 2004-2011 (CAD 200 million) | 114 | — | ||||||
4.125% Bonds 2004-2011 (USD 300 million) | 220 | — | ||||||
6.75% Bonds 2004-2010 ( NZD 100 million) | 50 | — | ||||||
4.125% Bonds 2004-2011 (USD 100 million) | 73 | — | ||||||
2.385% Bonds 2004-2010 (CHF 200 million) | 122 | — | ||||||
3.5% Bonds 2004-2009 (USD 50 million) | 37 | — | ||||||
Total TOTAL Capital S.A. | 5,658 | 3,607 | ||||||
Other consolidated subsidiaries | 131 | 80 | ||||||
Total Group | 8,208 | 7,763 | ||||||
(1) | These loans are converted into U.S. dollar floating rate debt by issuance of individual hedging currency swaps. TOTAL Capital S.A. is a wholly-owned indirect subsidiary of the Company (with the exception of one share each held by the members of its board of directors, as required under French law). It acts as a financing vehicle for the Group. Its debt securities are fully and unconditionally guaranteed by the Company as to payment of principal, premium, if any, interest and any other amounts due. |
As of December 31, | ||||||||||||||||
2004 | % | 2003 | % | |||||||||||||
2005. | — | — | 2,020 | 21 | ||||||||||||
2006. | 697 | 7 | 894 | 9 | ||||||||||||
2007. | 1,939 | 20 | 1,856 | 19 | ||||||||||||
2008. | 1,837 | 19 | 1,853 | 19 | ||||||||||||
2009. | 2,139 | 22 | 3,160 | (1) | 32 | |||||||||||
2010 and after | 3,122 | 32 | — | — | ||||||||||||
Total | 9,734 | 100 | 9,783 | 100 | ||||||||||||
(1) | 2009 and after. |
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As of December 31, | ||||||||||||||||
2004 | % | 2003 | % | |||||||||||||
U.S. dollar | 7,858 | 81 | 7,592 | 78 | ||||||||||||
Pound sterling | 3 | 0 | 434 | 4 | ||||||||||||
Euro | 1,548 | 16 | 1,529 | 16 | ||||||||||||
Other currencies | 325 | 3 | 228 | 2 | ||||||||||||
Total | 9,734 | 100 | 9,783 | 100 | ||||||||||||
As of December 31, | ||||||||||||||||
2004 | % | 2003 | % | |||||||||||||
Fixed rates | 694 | 7 | 627 | 6 | ||||||||||||
Floating rates | 9,040 | 93 | 9,156 | 94 | ||||||||||||
Total | 9,734 | 100 | 9,783 | 100 | ||||||||||||
As of December 31, | ||||||||
2004 | 2003 | |||||||
Current portion of long-term loans | 1,795 | 1,657 | ||||||
Short-term financial debt and bank overdrafts | 1,728 | 2,178 | ||||||
Total | 3,523 | 3,835 | ||||||
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Table of Contents
As of December 31, | ||||||||
2004 | 2003 | |||||||
Advances from customers (including advances from related parties) | 881 | 798 | ||||||
Accruals and deferred income | 319 | 315 | ||||||
Payables to states (including taxes and duties) | 6,392 | 4,990 | ||||||
Payroll | 940 | 925 | ||||||
Other | 2,552 | 1,942 | ||||||
Total | 11,084 | 8,970 | ||||||
Year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Crude oil and product purchases(1) | (81,496 | ) | (67,837 | ) | (67,013 | ) | ||||||
Unsuccessful exploration costs | (414 | ) | (359 | ) | (487 | ) | ||||||
Other operating expenses(2) | (19,885 | ) | (19,997 | ) | (19,330 | ) | ||||||
Long-term operating liabilities (allowances) | 679 | 1,277 | 292 | |||||||||
Short-term operating liabilities (allowances/(reversals)) | (25 | ) | 11 | (84 | ) | |||||||
Operating expenses | (101,141 | ) | (86,905 | ) | (86,622 | ) | ||||||
(1) | The cost of goods sold includes royalties paid on oil and gas production in the Upstream segment (see in particular the taxes paid to Middle East oil producing countries for the Group’s concessions as detailed in Note 30). |
(2) | The other operating expenses are principally composed of production and administrative costs (see in particular the payroll costs as detailed in Note 27). |
Year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Financial interest charge on debt | (756 | ) | (629 | ) | (686 | ) | ||||||
Financial income on cash and cash equivalents and equity securities | 588 | 408 | 356 | |||||||||
Cost of net debt | (168 | ) | (221 | ) | (330 | ) | ||||||
Financial interest capitalized | 35 | 46 | 89 | |||||||||
Other financial gains/(losses) | (101 | ) | (57 | ) | 46 | |||||||
Financial (charge)/income of operational nature | (66 | ) | (11 | ) | 135 | |||||||
Interest expense, net | (234 | ) | (232 | ) | (195 | ) | ||||||
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Table of Contents
For the year ended December | ||||||||||||
31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Foreign exchange gains/(losses) | (72 | ) | (59 | ) | (50 | ) | ||||||
Gains/(losses) on sales of assets | 3,078 | (182 | ) | 862 | ||||||||
Amortization of intangible assets | (210 | ) | (153 | ) | (184 | ) | ||||||
Contingency reserve for Toulouse-AZF plant explosion | (150 | ) | — | (95 | ) | |||||||
Other | (472 | ) | (666 | ) | (290 | ) | ||||||
Total | 2,174 | (1,060 | ) | 243 | ||||||||
Year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Current income taxes | (7,666 | ) | (5,098 | ) | (5,446 | ) | ||||||
Deferred income taxes | (650 | ) | (255 | ) | 412 | |||||||
Provision for income taxes | (8,316 | ) | (5,353 | ) | (5,034 | ) | ||||||
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As of December 31, | ||||||||
2004 | 2003 | |||||||
Net operating losses and tax credit carryforwards | 933 | 728 | ||||||
Employee benefits | 841 | 976 | ||||||
Other temporarily non-deductible provisions | 3,006 | 2,930 | ||||||
Gross deferred tax assets | 4,780 | 4,634 | ||||||
Valuation allowance | (342 | ) | (280 | ) | ||||
Net deferred tax assets | 4,438 | 4,354 | ||||||
Excess tax over book depreciation | (6,821 | ) | (6,363 | ) | ||||
Other temporary tax deductions | (1,953 | ) | (1,750 | ) | ||||
Gross deferred tax liability | (8,774 | ) | (8,113 | ) | ||||
Net deferred tax liabilities | (4,336 | ) | (3,759 | ) | ||||
As of December 31, | ||||||||
2004 | 2003 | |||||||
Deferred tax assets, long-term (Note 10) | 1,534 | 1,504 | ||||||
Deferred tax assets, short-term (Note 12) | 232 | 216 | ||||||
Deferred tax liabilities, long-term | (6,063 | ) | (5,443 | ) | ||||
Deferred tax liabilities, short term (Note 18) | (39 | ) | (36 | ) | ||||
Net amount | (4,336 | ) | (3,759 | ) | ||||
As of December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Net income | 9,612 | 7,025 | 5,941 | |||||||||
Minority interests | 260 | 194 | 13 | |||||||||
Provision for income taxes | 8,316 | 5,353 | 5,034 | |||||||||
Pre-tax income | 18,188 | 12,572 | 10,988 | |||||||||
French statutory tax rate | 35.43 | % | 35.43 | % | 35.43 | % | ||||||
Theoretical tax charge | (6,444 | ) | (4,454 | ) | (3,893 | ) | ||||||
Difference between French and foreign income tax rates | (2,758 | ) | (1,973 | ) | (1,834 | ) | ||||||
Tax effect of equity in income (loss) of affiliates | 119 | 385 | 307 | |||||||||
Permanent differences | 846 | 781 | 413 | |||||||||
Change in valuation allowance | (71 | ) | (88 | ) | (17 | ) | ||||||
Other | (8 | ) | (4 | ) | (10 | ) | ||||||
Provision for income taxes | (8,316 | ) | (5,353 | ) | (5,034 | ) | ||||||
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Basis | Tax | |||||||
2005 | 291 | 122 | ||||||
2006 | 368 | 143 | ||||||
2007 | 180 | 76 | ||||||
2008 | 603 | 214 | ||||||
2009 and after | 65 | 29 | ||||||
Unlimited | 1,605 | 349 | ||||||
Total | 3,112 | 933 | ||||||
Operating | Capital Lease | |||||||
Leases | Obligations | |||||||
2005 | 203 | 52 | ||||||
2006 | 169 | 47 | ||||||
2007 | 116 | 44 | ||||||
2008 | 105 | 46 | ||||||
2009 | 68 | 39 | ||||||
2010 and after | 327 | 231 | ||||||
Future lease payments | 988 | 459 | ||||||
Less amount representing interest | (104 | ) | ||||||
Present value of net minimum lease payments | 355 | |||||||
Less current portion of capital leases | (30 | ) | ||||||
Total | 325 | |||||||
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Maturity and instalments of payments | ||||||||||||||||
As of December 31, 2004 | ||||||||||||||||
Less than | Between 1 | More than | ||||||||||||||
Total | 1 year | and 5 years | 5 years | |||||||||||||
Excise taxes payment given | 2,892 | 2,668 | 48 | 176 | ||||||||||||
Collateral given against borrowings | 454 | 5 | 150 | 299 | ||||||||||||
Other commitments given | 2,462 | 1,165 | 568 | 729 | ||||||||||||
Total commitments given | 5,808 | 3,838 | 766 | 1,204 | ||||||||||||
Mortgages and liens received | 196 | 9 | 124 | 63 | ||||||||||||
Other commitments received | 1,169 | 588 | 310 | 271 | ||||||||||||
Total commitments received | 1,365 | 597 | 434 | 334 | ||||||||||||
As of December 31, 2003 | ||||||||||||||||
Less than | Between 1 | More than | ||||||||||||||
Total | 1 year | and 5 years | 5 years | |||||||||||||
Excise taxes payment given | 2,248 | 2,248 | — | — | ||||||||||||
Collateral given against borrowings | 570 | 67 | 236 | 267 | ||||||||||||
Other commitments given | 1,823 | 833 | 614 | 376 | ||||||||||||
Total commitments given | 4,641 | 3,148 | 850 | 643 | ||||||||||||
Mortgages and liens received | 389 | 214 | 119 | 56 | ||||||||||||
Other commitments received | 1,582 | 534 | 635 | 413 | ||||||||||||
Total commitments received | 1,971 | 748 | 754 | 469 | ||||||||||||
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F-65
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2010 | ||||||||||||||||||||||||||||||
As of December 31, 2004 | Total | 2005 | 2006 | 2007 | 2008 | 2009 | and after | |||||||||||||||||||||||
MANAGEMENT OF INTEREST RATE EXPOSURE | ||||||||||||||||||||||||||||||
Issue swaps and swaps hedging debenture issues | ||||||||||||||||||||||||||||||
Notional amount | 9,490 | 1,433 | 474 | 1,599 | 1,698 | 1,948 | 2,338 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 4.40% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 2.68% | ||||||||||||||||||||||||||||||
Long-term currency and interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 105 | 37 | 2 | 66 | — | — | — | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 3.58% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 3.36% | ||||||||||||||||||||||||||||||
Long-term interest rate swaps | ||||||||||||||||||||||||||||||
Receive-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 37 | 34 | 1 | — | — | — | 2 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 5.45% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 2.55% | ||||||||||||||||||||||||||||||
Pay-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||||
Received rate (as of 12.31.2004) — 2.30% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2004) — 5.56% | ||||||||||||||||||||||||||||||
Short-term interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 16,997 | 16,997 | — | — | — | — | — | |||||||||||||||||||||||
MANAGEMENT OF CURRENCY EXPOSURE | ||||||||||||||||||||||||||||||
Currency swaps | ||||||||||||||||||||||||||||||
Notional amount | 10,531 | 10,160 | 111 | 28 | 16 | 16 | 200 | |||||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||||||||||||
Notional amount | 116 | 116 | — | — | — | — | — | |||||||||||||||||||||||
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2009 | ||||||||||||||||||||||||||||||
As of December 31, 2003 | Total | 2004 | 2005 | 2006 | 2007 | 2008 | and after | |||||||||||||||||||||||
MANAGEMENT OF INTEREST RATE EXPOSURE | ||||||||||||||||||||||||||||||
Issue swaps and swaps hedging debenture issues | ||||||||||||||||||||||||||||||
Receive-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 8,479 | 875 | 1,546 | 512 | 1,561 | 1,672 | 2,313 | |||||||||||||||||||||||
Received rate (as of 12.31.2003) — 4.43% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2003) — 1.63% | ||||||||||||||||||||||||||||||
Long-term currency and interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 153 | 40 | 40 | 3 | 70 | — | — | |||||||||||||||||||||||
Received rate (as of 12.31.2003) — 3.04% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2003) — 2.67% | ||||||||||||||||||||||||||||||
Long-term interest rate swaps | ||||||||||||||||||||||||||||||
Receive-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 79 | 41 | 38 | — | — | — | — | |||||||||||||||||||||||
Received rate (as of 12.31.2003) — 5.63% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2003) — 1.50% | ||||||||||||||||||||||||||||||
Pay-fixed swaps | ||||||||||||||||||||||||||||||
Notional amount | 877 | 161 | — | — | 396 | 317 | 3 | |||||||||||||||||||||||
Received rate (as of 12.31.2003) — 1.36% | ||||||||||||||||||||||||||||||
Paid rate (as of 12.31.2003) — 3.44% | ||||||||||||||||||||||||||||||
Short-term interest rate swaps | ||||||||||||||||||||||||||||||
Notional amount | 9,540 | 9,540 | — | — | — | — | — | |||||||||||||||||||||||
FRA | ||||||||||||||||||||||||||||||
Notional amount | 48 | 48 | — | — | — | — | — | |||||||||||||||||||||||
Buying | 24 | 24 | — | — | — | — | — | |||||||||||||||||||||||
Sale | 24 | 24 | — | — | — | — | — | |||||||||||||||||||||||
MANAGEMENT OF CURRENCY EXPOSURE | ||||||||||||||||||||||||||||||
Currency swaps | ||||||||||||||||||||||||||||||
Notional amount | 6,221 | 6,191 | 30 | — | — | — | — | |||||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||||||||||||
Notional amount | 257 | 244 | 13 | — | — | — | — | |||||||||||||||||||||||
Currency options | ||||||||||||||||||||||||||||||
Notional amount | 10 | 10 | — | — | — | — | — | |||||||||||||||||||||||
Buying | — | — | — | — | — | — | — | |||||||||||||||||||||||
Sale | 10 | 10 | — | — | — | — | — | |||||||||||||||||||||||
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Notional value 2004 | Notional value 2003 | ||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Crude oil and petroleum products and freight rates | |||||||||||||||||
Petroleum products and crude oil swaps(1) | 3,454 | 3,778 | 2,546 | 2,724 | |||||||||||||
Forward freight agreements | 29 | 71 | — | — | |||||||||||||
Forwards | 233 | 882 | 262 | 1,050 | |||||||||||||
Options(2) | 2,712 | 2,162 | 1,742 | 1,409 | |||||||||||||
Futures(3) | 536 | 914 | 660 | 912 | |||||||||||||
Options on futures(2) | 199 | 228 | 92 | 139 | |||||||||||||
Natural gas and power | |||||||||||||||||
Swaps(1) | 140 | 240 | 272 | 166 | |||||||||||||
Forwards | 4,568 | 5,227 | 6,106 | 7,116 | |||||||||||||
Options(2) | 35 | 22 | 227 | 239 | |||||||||||||
Futures(3) | 17 | 8 | 3 | 17 |
(1) | Swaps (including “Contracts for differences”): the “assets/ liabilities” columns correspond to receive-fixed and pay-fixed swaps. |
(2) | Options: the “assets/ liabilities” columns correspond to the nominal value of options (calls or puts) purchased/ sold, valued based on the strike. |
(3) | Futures: the “assets/ liabilities” columns correspond to the net purchasing/ selling positions, valued based on the closing rate on the organized exchange market. |
F-68
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As of December 31, | |||||||||||||||||
2004 | 2003 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||
BALANCE SHEET | |||||||||||||||||
Other investments | |||||||||||||||||
Publicly traded | 169 | 270 | 306 | 406 | |||||||||||||
Non-publicly traded (subsidiaries excluded from consolidation and other) | 921 | 921 | 856 | 856 | |||||||||||||
Short-term investments | |||||||||||||||||
Publicly traded | 1,327 | 1,632 | 1,389 | 1,544 | |||||||||||||
Non-publicly traded | 23 | 23 | 15 | 15 | |||||||||||||
Loans and advances to subsidiaries excluded from consolidation and others | 912 | 912 | 826 | 826 | |||||||||||||
Debenture loans (before swaps and excluding current portion)(a) | 8,208 | 9,481 | 7,763 | 9,182 | |||||||||||||
Issue swaps(a) | — | (1,297 | ) | — | (1,414 | ) | |||||||||||
Bank loans (excluding capital lease obligations)(b): | |||||||||||||||||
Fixed-rate | 288 | 274 | 243 | 252 | |||||||||||||
Floating-rate | 913 | 926 | 1,417 | 1,417 | |||||||||||||
Current portion of long-term debt (excluding current portion of capital lease obligations) | 1,762 | 1,803 | 1,626 | 1,694 |
F-69
Table of Contents
As of December 31, | |||||||||||||||||
2004 | 2003 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||
OFF-BALANCE SHEET | |||||||||||||||||
Treasury management instruments | |||||||||||||||||
Bank guarantees | — | (2 | ) | — | (2 | ) | |||||||||||
Swaps hedging debenture issues(a) | — | — | — | — | |||||||||||||
Long-term interest rate and currency swaps | — | 32 | — | 25 | |||||||||||||
Long-term interest rate swaps | — | (f) | 1 | (2 | )(f) | (9 | ) | ||||||||||
Short-term interest rate swaps(c) | — | 1 | — | 1 | |||||||||||||
Short-term and long-term currency swaps(d) | — | (313 | ) | — | (174 | ) | |||||||||||
Forward exchange contracts | — | (4 | ) | — | 3 | ||||||||||||
Currency options | — | — | — | (1 | ) | ||||||||||||
Commodities (comparable to financial instruments)(e) | |||||||||||||||||
Petroleum products and crude oil swaps, forward freight agreements | 36 | 36 | (16 | ) | (16 | ) | |||||||||||
Petroleum products and crude oil options | 9 | 9 | 15 | 15 | |||||||||||||
Natural gas and power swaps | (1 | ) | (1 | ) | 12 | 12 | |||||||||||
Natural gas and power options | — | — | (2 | ) | (2 | ) |
(a) | All issue swaps specifically hedge debenture loans. They were concluded under ISDA agreements in order to create synthetic debt at a floating rate in U.S. dollars in most cases. The fair values of these swaps must therefore be incorporated into the overall value of debenture loans. |
In the same sense, some long-term interest rate swaps were concluded to partly modify the Company’s interest rate exposure. The corresponding fair value should be considered together with the fair value of the long-term debt hedged by these swaps. |
(b) | The fair value does not take into account the interest rate swaps since they are presented separately. |
(c) | The fair value of the short-term interest-rate swaps correlates with the value of the short-term loans and borrowings; these swaps are used in order to fit with the negotiated rates to the daily rate which is the benchmark. |
(d) | Currency swaps are used in the context of managing the current position of the Company, in order to be able to borrow or invest cash in markets other than the euro market. Thus, their fair value, if significant, is offset by the value of the short-term loans and borrowings which they hedge. |
(e) | Operations which will not generate physical delivery at maturity date. The carrying value corresponds to the value of these instruments in the balance sheet. |
(f) | This amount corresponds to the unrealized loss on swaps not considered as hedging instruments. |
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1996 Plan(1) | 2003 Plan(2) | 2004 Plan(3) | Total | |||||||||||||
Exercise price (in euros) | 59.76 | 133.20 | 159.40 | |||||||||||||
Options | ||||||||||||||||
Outstanding as of January 1, 2002. | 449,881 | — | — | 449,881 | ||||||||||||
Granted | — | — | — | — | ||||||||||||
Cancelled | (2,700 | ) | — | — | (2,700 | ) | ||||||||||
Exercised | (447,181 | ) | — | — | (447,181 | ) | ||||||||||
Outstanding as of December 31, 2002 | — | — | — | — | ||||||||||||
Granted | — | 2,935,306 | — | 2,935,306 | ||||||||||||
Cancelled | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Outstanding as of December 31, 2003 | — | 2,935,306 | — | 2,935,306 | ||||||||||||
Granted | — | — | 3,365,630 | 3,365,630 | ||||||||||||
Cancelled | — | (2,100 | ) | (12,000 | ) | (14,100 | ) | |||||||||
Exercised | — | (950 | ) | — | (950 | ) | ||||||||||
Outstanding as of December 31, 2004 | — | 2,932,256 | 3,353,630 | 6,285,886 | ||||||||||||
Expiration date | Dec. 2002 | July 2011 | July 2012 |
(1) | Grants decided by the Board of Directors on December 11, 1996 pursuant to the authorization given by the Extraordinary Shareholders’ Meeting held on June 4, 1996. The options are exercisable only after a 3-year period from the date the option is granted to the individual employee and must be exercised within 6 years from the date of grant. |
(2) | Grants decided by the Board of Directors on July 16, 2003 pursuant to the authorization given by the Extraordinary Shareholders’ Meeting held on May 17, 2001. The options are exercisable only after a 2-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. Underlying shares may not be sold for 4 years from the date of grant. |
(3) | Grants decided by the Board of Directors on July 20, 2004 pursuant to the authorization given by the Extraordinary Shareholders’ Meeting held on May 14, 2004. The options are exercisable only after a 2-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. Underlying shares may not be sold for 4 years from the date of grant. |
F-71
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1998 Plan(1) | 1999 Plan(2) | 2000 Plan(3) | 2001 Plan(4) | 2002 Plan(5) | Total | |||||||||||||||||||
Exercise price (in euros) | 93.76 | 113.00 | 162.70 | 168.20 | 158.30 | |||||||||||||||||||
Options | �� | |||||||||||||||||||||||
Outstanding as of January 1, 2002 | 905,980 | 1,469,617 | 2,417,595 | 2,692,475 | — | 7,485,667 | ||||||||||||||||||
Granted | — | — | — | 4,000 | 2,870,850 | 2,874,850 | ||||||||||||||||||
Cancelled | (900 | ) | (1,800 | ) | (2,950 | ) | (9,200 | ) | (1,000 | ) | (15,850 | ) | ||||||||||||
Exercised | (4,200 | ) | (11,850 | ) | — | — | — | (16,050 | ) | |||||||||||||||
Outstanding as of December 31, 2002 | 900,880 | 1,455,967 | 2,414,645 | 2,687,275 | 2,869,850 | 10,328,617 | ||||||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Cancelled | — | (5,100 | ) | (5,600 | ) | (3,650 | ) | (6,650 | ) | (21,000 | ) | |||||||||||||
Exercised | (178,342 | ) | (44,250 | ) | — | — | — | (222,592 | ) | |||||||||||||||
Outstanding as of December 31, 2003 | 722,538 | 1,406,617 | 2,409,045 | 2,683,625 | 2,863,200 | 10,085,025 | ||||||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Cancelled | — | — | (1,300 | ) | (2,700 | ) | (800 | ) | (4,800 | ) | ||||||||||||||
Exercised | (333,526 | ) | (380,088 | ) | (1,300 | ) | — | (772 | ) | (715,686 | ) | |||||||||||||
Outstanding as of December 31, 2004 | 389,012 | 1,026,529 | 2,406,445 | 2,680,925 | 2,861,628 | 9,364,539 | ||||||||||||||||||
Expiration date | March 2006 | June 2007 | July 2008 | July 2009 | July 2010 |
(1) | Grants decided by the Board of Directors on March 17, 1998 pursuant to the authorization given by the Extraordinary and Ordinary Shareholders’ Meeting held on May 21, 1997. The options are exercisable only after a 5-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. |
(2) | Grants decided by the Board of Directors on June 15, 1999 pursuant to the authorization given by the Extraordinary and Ordinary Shareholders’ Meeting held on May 21, 1997. The options are exercisable only after a 5-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. |
(3) | Grants decided by the Board of Directors on July 11, 2000 pursuant to the authorization given by the Extraordinary and Ordinary Shareholders’ Meeting held on May 21, 1997. The options are exercisable only after a 4-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. For beneficiaries holding contracts with French companies or working in France, the shares arising from the exercise of options may not be sold for 5 years from the date of grant. |
(4) | Grants decided by the Board of Directors on July 10, 2001 pursuant to the authorization given by the Extraordinary and Ordinary Shareholders’ Meeting held on May 17, 2001. The options are exercisable only after January 1, 2005 and must be exercised within 8 years from the date of grant. For beneficiaries holding contracts with French companies or working in France, the shares arising from the exercise of options may not be sold for 4 years from the date of grant. |
(5) | Grants decided by the Board of Directors on July 9, 2002 pursuant to the authorization given by the Extraordinary and Ordinary Shareholders’ Meeting held on May 17, 2001. The options are exercisable only after a 2-year period from the date the option is granted to the individual employee and must be exercised within 8 years from this date. Underlying shares may not be sold for 4 years from the date of grant. |
F-72
Table of Contents
1999 | ||||||||||||||||||||
1998 | Plan | 1999 | ||||||||||||||||||
Plan | n°1 | Plan n°2 | MTI Plan(1) | Total | ||||||||||||||||
Exercise price (in euros) | 105.95 | 115.60 | 171.60 | 105.95 | ||||||||||||||||
Options outstanding as of December 31, 2004 | 237,105 | 436,965 | 57,600 | 222,185 | 953,855 | |||||||||||||||
Outstanding Elf Aquitaine shares covered by the exchange guarantee as of December 31, 2004 | 11,051 | 5,765 | — | 16,395 | 33,211 | |||||||||||||||
Total of Elf Aquitaine shares, either outstanding or to be created, covered by the exchange guarantee for TOTAL shares as of December 31, 2004 | 248,156 | 442,730 | 57,600 | 238,580 | 987,066 | |||||||||||||||
Expiration date | March | March | September | March | ||||||||||||||||
2005 | 2009 | 2009 | 2005 |
(1) | Medium-Term Incentive (MTI) plan granted by Elf Aquitaine’s Board of Directors on April 1, 1998, provided that performance objectives were met by Elf Aquitaine for the 1998, 1999, 2000, 2001 and 2002 accounting periods. |
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Personnel expense | |||||||||||||
Wages and salaries (including social charges) | 6,107 | 6,153 | 6,429 | ||||||||||
Average number of employees | |||||||||||||
France | |||||||||||||
Management | 11,338 | 11,194 | 11,736 | ||||||||||
Other | 37,836 | 38,443 | 41,179 | ||||||||||
International | |||||||||||||
Management | 14,891 | 14,326 | 14,650 | ||||||||||
Other | 47,336 | 46,820 | 53,904 | ||||||||||
Total | 111,401 | 110,783 | 121,469 | ||||||||||
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For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Issuance of long-term debt | 2,801 | 2,657 | 2,148 | |||||||||
Repayments of long-term debt | (552 | ) | (549 | ) | (506 | ) | ||||||
Net issuance/(repayment) of long-term debt | 2,249 | 2,108 | 1,642 | |||||||||
For the year ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Inventories | (899 | ) | (19 | ) | (179 | ) | ||||||
Accounts receivable | (1,929 | ) | (393 | ) | (519 | ) | ||||||
Prepaid expenses and other current assets | (955 | ) | (60 | ) | 1,645 | |||||||
Accounts payable | 1,775 | 941 | 1,149 | |||||||||
Other creditors and accrued liabilities | 2,480 | (87 | ) | (2,160 | ) | |||||||
Net (increase)/decrease in working capital | 472 | 382 | (64 | ) | ||||||||
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Cash paid during the year for: | |||||||||||||
Interest expense (net of amount capitalized) | 847 | 505 | 609 | ||||||||||
Income taxes | 4,376 | 3,908 | 4,012 |
F-74
Table of Contents
— | Exploration-Production technology allowing the access, at acceptable cost, to new energy resources (high pressure-high temperature, deep offshore, heavy crude oils, polyphasic transportation of acidic gas) as well as environmental-friendly technologies such as reduction of gaseous emissions which erode the atmosphere, containment of acidic gas emissions, and efficient use of water in the upstream industrial process. | |
— | Refining technology allowing the identification, the anticipation, and the reduction of constraints linked to the operation of the facilities, the evolution of specifications and the control of environmental emissions, and marketing technology allowing the creation of innovative formulations of products representing sales opportunity. |
F-75
Table of Contents
— | Chemical processes allowing a stronger competitiveness, quality, safety and respect of environment, in particular of the following themes: new catalysis technology, new polymerization technologies, new products (polymers, elastomers, anti-vibration systems, new coatings) as well as nano-technology. |
C) | Taxes paid to Middle East oil-producing countries for the portion which Total held historically as concessions |
As of December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Balance Sheet Data | |||||||||||||
Receivables | |||||||||||||
Trade accounts | 303 | 173 | 70 | ||||||||||
Loans (excluding loans to equity affiliates) | 463 | 243 | 63 | ||||||||||
Payables | |||||||||||||
Trade accounts | 273 | 174 | 154 | ||||||||||
Loans | — | 7 | 36 |
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Statements of Income Data | ||||||||||||
Sales | 1,363 | 1,160 | 440 | |||||||||
Purchases | 1,646 | 1,419 | 1,238 | |||||||||
Interest expense | — | — | 2 | |||||||||
Interest income | 79 | 98 | 8 |
F-76
Table of Contents
Company’s | |||||
Shares % | |||||
UPSTREAM | |||||
Central Puerto | 63.8 | ||||
Elf Exploration Production | 99.5 | ||||
Elf Petroleum Iran | 99.8 | ||||
Elf Petroleum Nigeria | 99.8 | ||||
Gaz du Sud-Ouest | 99.5 | ||||
E Piedra del Aguila | 41.3 | ||||
Tepma Colombie | 99.7 | ||||
Total Abu Al Bu Khoosh | 99.8 | ||||
Total Austral | 99.8 | ||||
Total (BTC) Ltd. | 99.8 | ||||
Total Coal South Africa Ltd. | 100.0 | ||||
Total Energie Gaz | 99.5 | ||||
Total Exploration Production Algérie | 99.8 | ||||
Total Exploration Production Angola | 99.8 | ||||
Total Exploration Production Azerbaidjan | 99.7 | ||||
Total Exploration Production Bolivie | 99.8 | ||||
Total Exploration Production Borneo B.V | 99.7 | ||||
Total Exploration Production Cameroun | 75.4 | ||||
Total Exploration Production Congo | 99.5 | ||||
Total Exploration Production France | 99.5 | ||||
Total Exploration Production Indonésie | 99.8 | ||||
Total Exploration Production Kazakhstan | 100.0 | ||||
Total Exploration Production Libye | 99.8 | ||||
Total Exploration Production Myanmar | 99.8 | ||||
Total Exploration Production Nederland BV | 99.7 | ||||
Total Exploration Production Nigeria | 100.0 | ||||
Total Exploration Production Norge SA | 99.7 | ||||
Total Exploration Production Oman | 99.8 | ||||
Total Exploration Production Qatar | 99.8 | ||||
Total Exploration Production Russie | 99.8 | ||||
Total Exploration Production Syrie | 99.8 | ||||
Total Exploration Production Thaïlande | 99.8 | ||||
Total Exploration Production USA, Inc. | 100.0 | ||||
Total Exploration Production Yemen | 99.8 | ||||
Total Gabon | 58.0 | ||||
Total Gasandes S.A. | 100.0 | ||||
Total Gaz & Electricité Holdings France | 99.5 | ||||
Total Holdings Nederland BV | 99.7 | ||||
Total LNG Nigeria Ltd. | 99.5 | ||||
Total Midstream UK Ltd. | 99.7 | ||||
Total Oil & Gas Venezuela BV | 99.7 | ||||
Total Profils Pétroliers | 99.8 | ||||
Total Qatar Oil & Gas | 99.8 | ||||
Total Sirri | 99.8 | ||||
Total South Pars | 99.8 | ||||
Total Upstream UK Ltd. | 99.7 | ||||
Total Venezuela | 100.0 | ||||
DOWNSTREAM | |||||
Air Total International | 100.0 | ||||
AS 24. | 99.8 | ||||
Atlantic Trading and Marketing | 100.0 | ||||
E Cepsa | 45.0 | ||||
Chartering & Shipping Services S.A. | 100.0 | ||||
Egedis | 99.8 | ||||
P S.A de la Raffinerie des Antilles | 49.9 | ||||
Socap International | 99.5 | ||||
Stela | 99.8 | ||||
Total (Africa) Ltd. | 99.5 | ||||
Total Belgium | 100.0 | ||||
Total (China) Investments | 100.0 | ||||
Total (Philippines) Corp. | 99.8 | ||||
Total Côte d’Ivoire | 72.9 | ||||
Total Deutschland GmbH | 99.7 | ||||
Total Espana | 99.8 | ||||
Total Fluides | 99.8 | ||||
Total France S.A. | 99.8 | ||||
TotalGaz Argentina | 99.8 | ||||
TotalGaz | 99.8 | ||||
Total Holdings Deutschland | 99.7 | ||||
Total International Ltd. | 100.0 | ||||
Total Italia | 99.7 | ||||
Total Kenya | 87.9 | ||||
Total Lindsey Oil Refinery | 99.7 | ||||
Total Lubrifiants S.A. | 99.8 | ||||
Total Maroc | 100.0 | ||||
Total Nederland N.V | 99.7 | ||||
Total Nigeria | 61.6 | ||||
Total Oil Trading S.A. | 99.5 | ||||
Total Outre-Mer | 100.0 | ||||
Total Portugal Petroleos | 100.0 | ||||
Total Raffinerie Mitteldeutschland | 99.7 | ||||
P Total Raffinaderij Nederland | 55.0 | ||||
Total Sénégal | 94.9 |
F-77
Table of Contents
Company’s | |||||
Shares % | |||||
DOWNSTREAM — (continued) | |||||
Total South Africa Ltd. | 66.8 | ||||
Total South East Asia | 99.8 | ||||
Total Turkiye | 99.9 | ||||
Total UK Ltd. | 99.7 | ||||
Urbaine des Pétroles | 99.8 | ||||
CHEMICALS | |||||
Arkema Inc. | 99.9 | ||||
Arkema Quimica S.A. | 99.3 | ||||
Arkema S.A. | 99.5 | ||||
Arkema SRL | 99.5 | ||||
Bostik Findley S.A. | 99.5 | ||||
Bostik Holding S.A. | 99.5 | ||||
Cray Valley S.A. | 100.0 | ||||
Grande Paroisse S.A. | 99.5 | ||||
Hutchinson Corporation | 100.0 | ||||
Hutchinson S.A. | 100.0 | ||||
E Qatar Petrochemicals Company Ltd. | 19.9 | ||||
P Samsung Total Petrochemicals | 49.9 | ||||
Total Petrochemicals France | 99.5 | ||||
Total Petrochemicals Iberica | 100.0 | ||||
Total Petrochemicals USA Inc. | 100.0 | ||||
CORPORATE AND OTHER ACTIVITIES | |||||
Elf Aquitaine S.A. | 99.5 | ||||
Elf Aquitaine Fertilisants | 99.5 | ||||
Omnium des Participations S.A. | 100.0 | ||||
Omnium Insurance and Reinsurance Cy | 100.0 | ||||
PetroFina International Group | 100.0 | ||||
PetroFina S.A. | 100.0 | ||||
E Sanofi Aventis | 13.2 | ||||
Socap Ltd. | 99.5 | ||||
Sofax Banque | 99.5 | ||||
Total Capital | 100.0 | ||||
Total Chimie | 100.0 | ||||
Total Finance S.A. | 100.0 | ||||
Total Holdings UK Ltd. | 99.7 | ||||
Total Holdings USA, Inc. | 100.0 | ||||
Total S.A. | 100.0 | ||||
Total Treasury | 100.0 | ||||
VGF | 99.5 | ||||
Total Holdings Europe | 99.7 |
F-78
Table of Contents
Consolidated subsidiaries | ||||||||||||||||||||||||
North | Rest of | |||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
French GAAP basis | ||||||||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||||||
Proved properties | 25,036 | 16,285 | 1,551 | 2,605 | 7,540 | 53,017 | ||||||||||||||||||
Unproved properties | 51 | 544 | 113 | 17 | 104 | 829 | ||||||||||||||||||
Total capitalized costs | 25,087 | 16,829 | 1,664 | 2,622 | 7,644 | 53,846 | ||||||||||||||||||
Accumulated depreciation | (17,518 | ) | (10,338 | ) | (881 | ) | (1,012 | ) | (3,457 | ) | (33,206 | ) | ||||||||||||
Net capitalized costs | 7,569 | 6,491 | 783 | 1,610 | 4,187 | 20,640 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 214 | 501 | 715 | |||||||||||||||||||||
December 31, 2003 | ||||||||||||||||||||||||
Proved properties | 24,020 | 16,051 | 1,574 | 2,434 | 7,220 | 51,299 | ||||||||||||||||||
Unproved properties | 127 | 519 | 165 | 33 | 100 | 944 | ||||||||||||||||||
Total capitalized costs | 24,147 | 16,570 | 1,739 | 2,467 | 7,320 | 52,243 | ||||||||||||||||||
Accumulated depreciation | (16,595 | ) | (10,352 | ) | (858 | ) | (867 | ) | (3,152 | ) | (31,824 | ) | ||||||||||||
Net capitalized costs | 7,552 | 6,218 | 881 | 1,600 | 4,168 | 20,419 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 277 | 525 | 802 |
F-79
Table of Contents
Consolidated subsidiaries | ||||||||||||||||||||||||
North | Rest of | |||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
December 31, 2002 | ||||||||||||||||||||||||
Proved properties | 25,554 | 16,660 | 2,064 | 2,383 | 7,034 | 53,695 | ||||||||||||||||||
Unproved properties | 90 | 825 | 234 | 19 | 243 | 1,411 | ||||||||||||||||||
Total capitalized costs | 25,644 | 17,485 | 2,298 | 2,402 | 7,277 | 55,106 | ||||||||||||||||||
Accumulated depreciation | (17,102 | ) | (10,987 | ) | (1,275 | ) | (787 | ) | (3,139 | ) | (33,290 | ) | ||||||||||||
Net capitalized costs | 8,542 | 6,498 | 1,023 | 1,615 | 4,138 | 21,816 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 23 | 659 | 682 | |||||||||||||||||||||
U.S. GAAP basis | ||||||||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||||||
Proved properties | 27,798 | 18,146 | 1,712 | 2,605 | 7,540 | 57,801 | ||||||||||||||||||
Unproved properties | 51 | 544 | 113 | 17 | 104 | 829 | ||||||||||||||||||
Total capitalized costs | 27,849 | 18,690 | 1,825 | 2,622 | 7,644 | 58,630 | ||||||||||||||||||
Accumulated depreciation | (18,492 | ) | (10,774 | ) | (970 | ) | (1,012 | ) | (3,457 | ) | (34,705 | ) | ||||||||||||
Net capitalized costs | 9,357 | 7,916 | 855 | 1,610 | 4,187 | 23,925 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 214 | 507 | 715 | |||||||||||||||||||||
December 31, 2003 | ||||||||||||||||||||||||
Proved properties | 26,800 | 17,910 | 1,742 | 2,434 | 7,220 | 56,106 | ||||||||||||||||||
Unproved properties | 127 | 519 | 165 | 33 | 100 | 944 | ||||||||||||||||||
Total capitalized costs | 26,927 | 18,429 | 1,907 | 2,467 | 7,320 | 57,050 | ||||||||||||||||||
Accumulated depreciation | (17,362 | ) | (10,703 | ) | (937 | ) | (867 | ) | (3,152 | ) | (33,021 | ) | ||||||||||||
Net capitalized costs | 9,565 | 7,726 | 970 | 1,600 | 4,168 | 24,029 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 277 | 525 | 802 | |||||||||||||||||||||
December 31, 2002 | ||||||||||||||||||||||||
Proved properties | 28,335 | 18,518 | 2,234 | 2,383 | 7,034 | 58,504 | ||||||||||||||||||
Unproved properties | 90 | 825 | 234 | 19 | 243 | 1,411 | ||||||||||||||||||
Total capitalized costs | 28,425 | 19,343 | 2,468 | 2,402 | 7,277 | 59,915 | ||||||||||||||||||
Accumulated depreciation | (17,651 | ) | (11,257 | ) | (1,347 | ) | (787 | ) | (3,139 | ) | (34,181 | ) | ||||||||||||
Net capitalized costs | 10,774 | 8,086 | 1,121 | 1,615 | 4,138 | 25,734 | ||||||||||||||||||
Company’s share of equity affiliates’ net capitalized costs | 23 | 659 | 682 |
F-80
Table of Contents
Consolidated subsidiaries | ||||||||||||||||||||||||
North | Rest of | |||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
French GAAP and U.S. GAAP basis | ||||||||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||||||
Proved property acquisition | — | 2 | — | — | 29 | 31 | ||||||||||||||||||
Unproved property acquisition | — | — | 5 | 3 | — | 8 | ||||||||||||||||||
Exploration costs | 99 | 279 | 94 | 29 | 142 | 643 | ||||||||||||||||||
Development costs(1) | 1,084 | 1,588 | 203 | 379 | 874 | 4,128 | ||||||||||||||||||
Total costs incurred | 1,183 | 1,869 | 302 | 411 | 1,045 | 4,810 | ||||||||||||||||||
December 31, 2003 | ||||||||||||||||||||||||
Proved property acquisition | — | 61 | 3 | 2 | 180 | 246 | ||||||||||||||||||
Unproved property acquisition | — | 15 | 8 | 1 | — | 24 | ||||||||||||||||||
Exploration costs | 69 | 211 | 58 | 48 | 220 | 606 | ||||||||||||||||||
Development costs | 910 | 1,361 | 219 | 434 | 833 | 3,757 | ||||||||||||||||||
Total costs incurred | 979 | 1,648 | 288 | 485 | 1,233 | 4,633 | ||||||||||||||||||
December 31, 2002 | ||||||||||||||||||||||||
Proved property acquisition | 8 | 20 | — | — | 54 | 82 | ||||||||||||||||||
Unproved property acquisition | — | 7 | 60 | — | — | 67 | ||||||||||||||||||
Exploration costs | 112 | 266 | 53 | 10 | 267 | 708 | ||||||||||||||||||
Development costs | 1,194 | 1,111 | 463 | 312 | 1,080 | 4,160 | ||||||||||||||||||
Total costs incurred | 1,314 | 1,404 | 576 | 322 | 1,401 | 5,017 | ||||||||||||||||||
(1) | Including asset retirement costs capitalized during the year and any gain or losses recognized upon settlement of asset retirement obligations during the year. |
Year ended December 31, 2004 | 56 | 184 | 240 | |||||||||||||||||||||
Year ended December 31, 2003 | 64 | 171 | 235 | |||||||||||||||||||||
Year ended December 31, 2002 | 2 | 128 | 130 |
2002 | 2003 | 2004 | 2005 | 2006 | 2007 | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
Costs to develop Proved Undeveloped Reserves | 3,870 | 3,480 | 3,567 | 4,034 | (1) | 3,333 | (1) | 2,677 | (1) |
(1) | Estimates |
F-81
Table of Contents
Consolidated subsidiaries | |||||||||||||||||||||||||
North | Rest of | ||||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | ||||||||||||||||||||
(Amounts in M€) | |||||||||||||||||||||||||
French GAAP basis | |||||||||||||||||||||||||
Year ended December 31, 2004 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 2,027 | 1,163 | 40 | 1,446 | 1,820 | 6,496 | |||||||||||||||||||
Transfers to affiliated parties | 4,917 | 6,081 | 548 | 250 | 645 | 12,441 | |||||||||||||||||||
Total Revenues | 6,944 | 7,244 | 588 | 1,696 | 2,465 | 18,937 | |||||||||||||||||||
Production costs | (787 | ) | (578 | ) | (49 | ) | (162 | ) | (247 | ) | (1,823 | ) | |||||||||||||
Exploration expenses | (40 | ) | (146 | ) | (90 | ) | (31 | ) | (107 | ) | (414 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,197 | ) | (839 | ) | (245 | ) | (252 | ) | (507 | ) | (3,040 | ) | |||||||||||||
Other expenses(1) | (176 | ) | (764 | ) | (5 | ) | (15 | ) | (288 | ) | (1,248 | ) | |||||||||||||
Pretax income from producing activities | 4,744 | 4,917 | 199 | 1,236 | 1,316 | 12,412 | |||||||||||||||||||
Income tax | (2,697 | ) | (3,224 | ) | (87 | ) | (591 | ) | (247 | ) | (6,846 | ) | |||||||||||||
Results of oil and gas producing activities | 2,047 | 1,693 | 112 | 645 | 1,069 | 5,566 | |||||||||||||||||||
Year ended December 31, 2003 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 1,994 | 731 | 48 | 1,286 | 1,722 | 5,781 | |||||||||||||||||||
Transfers to affiliated parties | 4,635 | 4,679 | 494 | 195 | 623 | 10,626 | |||||||||||||||||||
Total Revenues | 6,629 | 5,410 | 542 | 1,481 | 2,345 | 16,407 | |||||||||||||||||||
Production costs | (778 | ) | (562 | ) | (86 | ) | (171 | ) | (240 | ) | (1,837 | ) | |||||||||||||
Exploration expenses | (40 | ) | (95 | ) | (55 | ) | (35 | ) | (134 | ) | (359 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,278 | ) | (792 | ) | (164 | ) | (190 | ) | (590 | ) | (3,014 | ) | |||||||||||||
Other expenses(1) | (188 | ) | (640 | ) | (14 | ) | (16 | ) | (259 | ) | (1,117 | ) | |||||||||||||
Pretax income from producing activities | 4,345 | 3,321 | 223 | 1,069 | 1,122 | 10,080 | |||||||||||||||||||
Income tax | (2,485 | ) | (1,961 | ) | (82 | ) | (498 | ) | (208 | ) | (5,234 | ) | |||||||||||||
Results of oil and gas producing activities | 1,860 | 1,360 | 141 | 571 | 914 | 4,846 | |||||||||||||||||||
Year ended December 31, 2002 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 2,674 | 600 | 43 | 1,240 | 1,717 | 6,274 | |||||||||||||||||||
Transfers to affiliated parties | 3,884 | 4,733 | 262 | 170 | 662 | 9,711 | |||||||||||||||||||
Total Revenues | 6,558 | 5,333 | 305 | 1,410 | 2,379 | 15,985 | |||||||||||||||||||
Production costs | (904 | ) | (613 | ) | (56 | ) | (190 | ) | (302 | ) | (2,065 | ) | |||||||||||||
Exploration expenses | (65 | ) | (149 | ) | (53 | ) | (7 | ) | (212 | ) | (486 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,439 | ) | (939 | ) | (191 | ) | (180 | ) | (601 | ) | (3,350 | ) | |||||||||||||
Other expenses(1) | (118 | ) | (574 | ) | (11 | ) | (15 | ) | (241 | ) | (959 | ) | |||||||||||||
Pretax income from producing activities | 4,032 | 3,058 | (6 | ) | 1,018 | 1,023 | 9,125 | ||||||||||||||||||
Income tax | (2,483 | ) | (1,768 | ) | 14 | (487 | ) | (361 | ) | (5,085 | ) | ||||||||||||||
Results of oil and gas producing activities | 1,549 | 1,290 | 8 | 531 | 662 | 4,040 | |||||||||||||||||||
(1) | Including production taxes and, from 2003, FAS No. 143 accretion expense (121 M€ in 2003, 137 M€ in 2004). |
Year ended December 31, 2004 | 80 | 200 | 280 | |||||||||||||||||||||
Year ended December 31, 2003 | 118 | 176 | 294 | |||||||||||||||||||||
Year ended December 31, 2002 | 7 | 175 | 182 |
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Consolidated subsidiaries | |||||||||||||||||||||||||
North | Rest of | ||||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | ||||||||||||||||||||
(Amounts in M€) | |||||||||||||||||||||||||
U.S. GAAP basis | |||||||||||||||||||||||||
Year ended December 31, 2004 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 2,027 | 1,163 | 40 | 1,446 | 1,820 | 6,496 | |||||||||||||||||||
Transfers to affiliated parties | 4,917 | 6,081 | 548 | 250 | 645 | 12,441 | |||||||||||||||||||
Total Revenues | 6,944 | 7,244 | 588 | 1,696 | 2,465 | 18,937 | |||||||||||||||||||
Production costs | (787 | ) | (578 | ) | (49 | ) | (162 | ) | (247 | ) | (1,823 | ) | |||||||||||||
Exploration expenses | (40 | ) | (146 | ) | (90 | ) | (31 | ) | (107 | ) | (414 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,403 | ) | (925 | ) | (255 | ) | (252 | ) | (507 | ) | (3,342 | ) | |||||||||||||
Other expenses(1) | (176 | ) | (764 | ) | (5 | ) | (15 | ) | (288 | ) | (1,248 | ) | |||||||||||||
Pretax income from producing activities | 4,538 | 4,831 | 189 | 1,236 | 1,316 | 12,110 | |||||||||||||||||||
Income tax | (2,574 | ) | (3,179 | ) | (81 | ) | (591 | ) | (247 | ) | (6,672 | ) | |||||||||||||
Results of oil and gas producing activities | 1,964 | 1,652 | 108 | 645 | 1,069 | 5,438 | |||||||||||||||||||
Year ended December 31, 2003 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 1,994 | 731 | 48 | 1,286 | 1,722 | 5,781 | |||||||||||||||||||
Transfers to affiliated parties | 4,635 | 4,679 | 494 | 195 | 623 | 10,626 | |||||||||||||||||||
Total Revenues | 6,629 | 5,410 | 542 | 1,481 | 2,345 | 16,407 | |||||||||||||||||||
Production costs | (778 | ) | (562 | ) | (86 | ) | (171 | ) | (240 | ) | (1,837 | ) | |||||||||||||
Exploration expenses | (40 | ) | (95 | ) | (55 | ) | (35 | ) | (134 | ) | (359 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,497 | ) | (872 | ) | (171 | ) | (190 | ) | (590 | ) | (3,320 | ) | |||||||||||||
Other expenses(1) | (188 | ) | (640 | ) | (14 | ) | (16 | ) | (259 | ) | (1,117 | ) | |||||||||||||
Pretax income from producing activities | 4,126 | 3,241 | 216 | 1,069 | 1,122 | 9,774 | |||||||||||||||||||
Income tax | (2,364 | ) | (1,918 | ) | (80 | ) | (498 | ) | (208 | ) | (5,068 | ) | |||||||||||||
Results of oil and gas producing activities | 1,762 | 1,323 | 136 | 571 | 914 | 4,706 | |||||||||||||||||||
Year ended December 31, 2002 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Sales to unaffiliated parties | 2,674 | 600 | 43 | 1,240 | 1,717 | 6,274 | |||||||||||||||||||
Transfers to affiliated parties | 3,884 | 4,733 | 262 | 170 | 662 | 9,711 | |||||||||||||||||||
Total Revenues | 6,558 | 5,333 | 305 | 1,410 | 2,379 | 15,985 | |||||||||||||||||||
Production costs | (904 | ) | (613 | ) | (56 | ) | (190 | ) | (302 | ) | (2,065 | ) | |||||||||||||
Exploration expenses | (65 | ) | (149 | ) | (53 | ) | (7 | ) | (212 | ) | (486 | ) | |||||||||||||
Depreciation, depletion and amortization and valuation allowances | (1,653 | ) | (1,027 | ) | (205 | ) | (180 | ) | (601 | ) | (3,666 | ) | |||||||||||||
Other expenses(1) | (118 | ) | (574 | ) | (11 | ) | (15 | ) | (241 | ) | (959 | ) | |||||||||||||
Pretax income from producing activities | 3,818 | 2,970 | (20 | ) | 1,018 | 1,023 | 8,809 | ||||||||||||||||||
Income tax | (2,365 | ) | (1,720 | ) | 19 | (487 | ) | (361 | ) | (4,914 | ) | ||||||||||||||
Results of oil and gas producing activities | 1,453 | 1,250 | (1 | ) | 531 | 662 | 3,895 | ||||||||||||||||||
(1) | Including production taxes and, from 2003, FAS No. 143 accretion expense (121 M€ in 2003, 137 M€ in 2004). |
Year ended December 31, 2004 | 80 | 200 | 280 | |||||||||||||||||||||
Year ended December 31, 2003 | 118 | 176 | 294 | |||||||||||||||||||||
Year ended December 31, 2002 | 7 | 175 | 182 |
F-83
Table of Contents
— | proved developed and undeveloped reserves together with changes in quantities for 2004, 2003 and 2002. | |
— | proved developed reserves. |
— | internal peer reviews of technical evaluations also ensuring that the SEC definitions and guidance are followed, and | |
— | a requirement that management make significant funding commitments toward the development of the reserves prior to booking. |
F-84
Table of Contents
F-85
Table of Contents
Crude Oil, Condensate and Natural Gas Liquids (Mb) | ||||||||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
Affiliates | ||||||||||||||||||||||||||||||||
North | Rest of | and Non- | Total | |||||||||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | Consolidated | Group | |||||||||||||||||||||||||
French GAAP and U.S. GAAP basis | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2002 | 1,170 | 2,882 | 33 | 94 | 1,367 | 5,546 | 1,415 | 6,961 | ||||||||||||||||||||||||
Revisions of previous estimates | 62 | 266 | 3 | 1 | (59 | ) | 273 | (35 | ) | 238 | ||||||||||||||||||||||
Extensions, discoveries and other | 26 | 140 | — | — | 356 | 522 | — | 522 | ||||||||||||||||||||||||
Acquisitions of reserves in place | 49 | 1 | — | — | 41 | 91 | 1 | 92 | ||||||||||||||||||||||||
Sales of reserves in place | (2 | ) | — | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||
Production for the year | (170 | ) | (214 | ) | (2 | ) | (8 | ) | (100 | ) | (494 | ) | (86 | ) | (580 | ) | ||||||||||||||||
Balance as of December 31, 2002 | 1,135 | 3,075 | 34 | 87 | 1,605 | 5,936 | 1,295 | 7,231 | ||||||||||||||||||||||||
Revisions of previous estimates | 108 | 53 | 1 | 1 | 245 | 408 | (20 | ) | 388 | |||||||||||||||||||||||
Extensions, discoveries and other | 5 | 55 | 67 | — | 127 | 254 | — | 254 | ||||||||||||||||||||||||
Acquisitions of reserves in place | — | 2 | — | — | 77 | 79 | — | 79 | ||||||||||||||||||||||||
Sales of reserves in place | (6 | ) | (16 | ) | (1 | ) | — | — | (23 | ) | — | (23 | ) | |||||||||||||||||||
Production for the year | (169 | ) | (221 | ) | (2 | ) | (9 | ) | (102 | ) | (503 | ) | (103 | ) | (606 | ) | ||||||||||||||||
Balance as of December 31, 2003 | 1,073 | 2,948 | 99 | 79 | 1,952 | 6,151 | 1,172 | 7,323 | ||||||||||||||||||||||||
Revisions of previous estimates | 93 | (26 | ) | (13 | ) | 11 | (119 | ) | (54 | ) | (15 | ) | (69 | ) | ||||||||||||||||||
Extensions, discoveries and other | 43 | 46 | — | — | 227 | 316 | 61 | 377 | ||||||||||||||||||||||||
Acquisitions of reserves in place | 12 | — | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||
Sales of reserves in place | (1 | ) | (18 | ) | — | — | — | (19 | ) | — | (19 | ) | ||||||||||||||||||||
Production for the year | (154 | ) | (255 | ) | (6 | ) | (11 | ) | (91 | ) | (517 | ) | (104 | ) | (621 | ) | ||||||||||||||||
Balance as of December 31, 2004 | 1,066 | 2,695 | 80 | 79 | 1,969 | 5,889 | 1,114 | 7,003 | ||||||||||||||||||||||||
December 31, 2002 | 28 | 74 | — | — | — | 102 | — | 102 | ||||||||||||||||||||||||
December 31, 2003 | 23 | 85 | — | — | — | 108 | — | 108 | ||||||||||||||||||||||||
December 31, 2004 | 22 | 80 | — | — | — | 102 | — | 102 |
Year ended December 31, 2002 | 107 | 1,188 | 1,295 | |||||||||||||||||||||||||||||
Year ended December 31, 2003 | 97 | 1,075 | 1,172 | |||||||||||||||||||||||||||||
Year ended December 31, 2004 | 73 | 1,041 | 1,114 |
December 31, 2002 | 855 | 1,199 | 5 | 52 | 579 | 2,690 | 886 | 3,576 | ||||||||||||||||||||||||
December 31, 2003 | 769 | 1,354 | 28 | 50 | 574 | 2,775 | 788 | 3,563 | ||||||||||||||||||||||||
December 31, 2004 | 734 | 1,351 | 15 | 48 | 477 | 2,625 | 772 | 3,397 |
Year ended December 31, 2002 | 81 | 805 | 886 | |||||||||||||||||||||||||||||
Year ended December 31, 2003 | 77 | 711 | 788 | |||||||||||||||||||||||||||||
Year ended December 31, 2004 | 67 | 705 | 772 |
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Table of Contents
Natural Gas (Bcf) | ||||||||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
Affiliates | ||||||||||||||||||||||||||||||||
North | Rest of | and Non- | Total | |||||||||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | Consolidated | Group | |||||||||||||||||||||||||
French GAAP and U.S. GAAP basis | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2002 | 6,966 | 3,845 | 536 | 6,384 | 2,507 | 20,238 | 1,691 | 21,929 | ||||||||||||||||||||||||
Revisions of previous estimates | 212 | (157 | ) | 57 | (56 | ) | 132 | 188 | 9 | 197 | ||||||||||||||||||||||
Extensions, discoveries and other | 770 | 146 | 11 | 13 | 96 | 1,036 | — | 1,036 | ||||||||||||||||||||||||
Acquisitions of reserves in place | 64 | — | — | — | 9 | 73 | — | 73 | ||||||||||||||||||||||||
Sales of reserves in place | (2 | ) | — | (4 | ) | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||
Production for the year | (814 | ) | (137 | ) | (78 | ) | (410 | ) | (131 | ) | (1,570 | ) | (84 | ) | (1,654 | ) | ||||||||||||||||
Balance as of December 31, 2002 | 7,196 | 3,697 | 522 | 5,931 | 2,613 | 19,959 | 1,616 | 21,575 | ||||||||||||||||||||||||
Revisions of previous estimates | 173 | 54 | 80 | (201 | ) | 84 | 190 | 66 | 256 | |||||||||||||||||||||||
Extensions, discoveries and other | 39 | — | — | — | 2,175 | 2,214 | — | 2,214 | ||||||||||||||||||||||||
Acquisitions of reserves in place | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Sales of reserves in place | (3 | ) | — | (28 | ) | — | — | (31 | ) | — | (31 | ) | ||||||||||||||||||||
Production for the year | (834 | ) | (148 | ) | (108 | ) | (421 | ) | (146 | ) | (1,657 | ) | (90 | ) | (1,747 | ) | ||||||||||||||||
Balance as of December 31, 2003 | 6,571 | 3,603 | 466 | 5,309 | 4,726 | 20,675 | 1,592 | 22,267 | ||||||||||||||||||||||||
Revisions of previous estimates | 84 | 609 | (91 | ) | (137 | ) | 355 | 820 | 65 | 885 | ||||||||||||||||||||||
Extensions, discoveries and other | 148 | 728 | — | 18 | 450 | 1,344 | 63 | 1,407 | ||||||||||||||||||||||||
Acquisitions of reserves in place | 68 | — | — | — | — | 68 | — | 68 | ||||||||||||||||||||||||
Sales of reserves in place | (44 | ) | — | (7 | ) | — | — | (51 | ) | — | (51 | ) | ||||||||||||||||||||
Production for the year | (812 | ) | (161 | ) | (88 | ) | (448 | ) | (188 | ) | (1,697 | ) | (94 | ) | (1,791 | ) | ||||||||||||||||
Balance as of December 31, 2004 | 6,015 | 4,779 | 280 | 4,742 | 5,343 | 21,159 | 1,626 | 22,785 | ||||||||||||||||||||||||
December 31, 2002 | 120 | 28 | — | — | — | 148 | — | 148 | ||||||||||||||||||||||||
December 31, 2003 | 102 | 29 | — | — | — | 131 | — | 131 | ||||||||||||||||||||||||
December 31, 2004 | 111 | 84 | — | — | — | 195 | — | 195 |
Year ended December 31, 2002 | 1,616 | 1,616 | ||||||||||||||||||||||||||||||
Year ended December 31, 2003 | 1,592 | 1,592 | ||||||||||||||||||||||||||||||
Year ended December 31, 2004 | 18 | 1,608 | 1,626 |
December 31, 2002 | 5,362 | 1,785 | 385 | 3,563 | 965 | 12,060 | 1,586 | 13,646 | ||||||||||||||||||||||||
December 31, 2003 | 4,862 | 1,775 | 348 | 3,214 | 1,367 | 11,566 | 1,568 | 13,134 | ||||||||||||||||||||||||
December 31, 2004 | 4,300 | 2,071 | 232 | 2,862 | 1,548 | 11,013 | 1,562 | 12,575 |
Year ended December 31, 2002 | 1,586 | 1,586 | ||||||||||||||||||||||||||||||
Year ended December 31, 2003 | 1,568 | 1,568 | ||||||||||||||||||||||||||||||
Year ended December 31, 2004 | 18 | 1,544 | 1,562 |
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1. | estimates of proved reserves and the corresponding production profiles are based on technical and economic conditions at year end; | |
2. | the estimated future cash flows from proved reserves are determined based on prices at December 31, except in those instances where fixed and determinable price escalations are included in existing contracts; | |
3. | the future cash flows include estimated production costs (including production taxes), future development costs and asset retirement costs, all estimates are based on year-end technical and economic conditions; | |
4. | future income taxes are computed by applying the year-end statutory tax rate to future net cash flows after consideration of permanent differences and future income tax credits; | |
5. | future net cash flows are discounted at a standard rate of 10 percent. |
Consolidated subsidiaries | ||||||||||||||||||||||||
North | Rest of | |||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
French GAAP and U.S. GAAP basis | ||||||||||||||||||||||||
December 31, 2002 | ||||||||||||||||||||||||
Future cash inflows | 52,482 | 87,137 | 3,189 | 18,895 | 38,162 | 199,865 | ||||||||||||||||||
Future production costs | (7,730 | ) | (13,263 | ) | (437 | ) | (2,998 | ) | (9,793 | ) | (34,221 | ) | ||||||||||||
Future development costs | (5,916 | ) | (10,904 | ) | (337 | ) | (3,573 | ) | (3,678 | ) | (24,408 | ) | ||||||||||||
Future net cash flows, before income taxes | 38,836 | 62,970 | 2,415 | 12,324 | 24,691 | 141,236 | ||||||||||||||||||
Future income taxes | (22,908 | ) | (36,693 | ) | (321 | ) | (5,496 | ) | (7,286 | ) | (72,704 | ) | ||||||||||||
Future net cash flows, after income taxes | 15,928 | 26,277 | 2,094 | 6,828 | 17,405 | 68,532 | ||||||||||||||||||
Discount at 10% | (5,884 | ) | (12,190 | ) | (688 | ) | (3,068 | ) | (9,472 | ) | (31,302 | ) | ||||||||||||
Standardized measure of discounted future net cash flows | 10,044 | 14,087 | 1,406 | 3,760 | 7,933 | 37,230 | ||||||||||||||||||
F-88
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Consolidated subsidiaries | ||||||||||||||||||||||||
North | Rest of | |||||||||||||||||||||||
Europe | Africa | America | Asia | World | Total | |||||||||||||||||||
(Amounts in M€) | ||||||||||||||||||||||||
December 31, 2003 | ||||||||||||||||||||||||
Future cash inflows | 44,136 | 69,191 | 3,507 | 14,315 | 39,544 | 170,693 | ||||||||||||||||||
Future production costs | (6,862 | ) | (12,423 | ) | (901 | ) | (2,143 | ) | (9,855 | ) | (32,184 | ) | ||||||||||||
Future development costs | (6,317 | ) | (9,645 | ) | (417 | ) | (2,269 | ) | (4,784 | ) | (23,432 | ) | ||||||||||||
Future net cash flows, before income taxes | 30,957 | 47,123 | 2,189 | 9,903 | 24,905 | 115,077 | ||||||||||||||||||
Future income taxes | (20,241 | ) | (25,960 | ) | (379 | ) | (4,233 | ) | (7,037 | ) | (57,850 | ) | ||||||||||||
Future net cash flows, after income taxes | 10,716 | 21,163 | 1,810 | 5,670 | 17,868 | 57,227 | ||||||||||||||||||
Discount at 10% | (3,389 | ) | (10,151 | ) | (691 | ) | (2,575 | ) | (11,303 | ) | (28,109 | ) | ||||||||||||
Standardized measure of discounted future net cash flows | 7,327 | 11,012 | 1,119 | 3,095 | 6,565 | 29,118 | ||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||||||
Future cash inflows | 49,233 | 76,576 | 2,695 | 13,737 | 42,437 | 184,678 | ||||||||||||||||||
Future production costs | (7,389 | ) | (13,170 | ) | (792 | ) | (2,077 | ) | (10,561 | ) | (33,989 | ) | ||||||||||||
Future development costs | (6,448 | ) | (10,001 | ) | (356 | ) | (2,316 | ) | (4,436 | ) | (23,557 | ) | ||||||||||||
Future net cash flows, before income taxes | 35,396 | 53,405 | 1,547 | 9,344 | 27,440 | 127,132 | ||||||||||||||||||
Future income taxes | (23,711 | ) | (33,859 | ) | (304 | ) | (4,091 | ) | (8,613 | ) | (70,578 | ) | ||||||||||||
Future net cash flows, after income taxes | 11,685 | 19,546 | 1,243 | 5,253 | 18,827 | 56,554 | ||||||||||||||||||
Discount at 10% | (4,085 | ) | (8,919 | ) | (455 | ) | (2,167 | ) | (12,091 | ) | (27,717 | ) | ||||||||||||
Standardized measure of discounted future net cash flows | 7,600 | 10,627 | 788 | 3,086 | 6,736 | 28,837 | ||||||||||||||||||
Year ended December 31, 2002 | 364 | 337 | 701 | |||||||||||||||||||||
Year ended December 31, 2003 | 351 | 304 | 655 | |||||||||||||||||||||
Year ended December 31, 2004 | 297 | 287 | 584 |
Year ended December 31, 2002 | 63 | 1,194 | 1,257 | |||||||||||||||||||||
Year ended December 31, 2003 | 666 | 1,139 | 1,805 | |||||||||||||||||||||
Year ended December 31, 2004 | 494 | 1,101 | 1,595 |
F-89
Table of Contents
For the year ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(Amounts in M€) | |||||||||||||
French GAAP and U.S. GAAP basis | |||||||||||||
Consolidated | |||||||||||||
Beginning of year | 29,118 | 37,230 | 27,794 | ||||||||||
Sales and transfers, net of production costs | (12,791 | ) | (14,870 | ) | (11,792 | ) | |||||||
Net change in sales and transfer prices, net of production costs | 12,919 | (13,453 | ) | 17,687 | |||||||||
Extensions, discoveries and improved recovery, net of future production and development costs | 974 | 1,997 | 2,394 | ||||||||||
Changes in estimated future development costs | (1,215 | ) | 832 | 1,544 | |||||||||
Previously estimated development costs incurred during the year | 3,790 | 3,987 | 4,168 | ||||||||||
Revisions of previous quantity estimates | (2,684 | ) | (1,109 | ) | (428 | ) | |||||||
Accretion of discount | 2,912 | 3,723 | 2,779 | ||||||||||
Net change in income taxes | (4,255 | ) | 10,778 | (7,633 | ) | ||||||||
Purchases of reserves in place | 292 | 190 | 716 | ||||||||||
Sales of reserves in place | (223 | ) | (187 | ) | 1 | ||||||||
End of year | 28,837 | 29,118 | 37,230 | ||||||||||
F-90
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Balance at | Charged | Charged to | Balance at | ||||||||||||||||||
beginning of | to other | costs and | end of | ||||||||||||||||||
period | accounts(1) | expenses | Deductions(2) | period | |||||||||||||||||
(Amounts in M€) | |||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS DEDUCTED FROM THE RELATED ASSETS ACCOUNTS | |||||||||||||||||||||
2004 | |||||||||||||||||||||
Investments and other non current assets(3) | 1,334 | 129 | 51 | 98 | 1,416 | ||||||||||||||||
Inventories (including reserve for crude oil price changes) | 1,908 | (53 | ) | 756 | — | 2,611 | |||||||||||||||
Accounts receivable | 518 | (18 | ) | — | 13 | 487 | |||||||||||||||
Other current assets | 42 | (2 | ) | — | 2 | 38 | |||||||||||||||
Total | 3,802 | 56 | 807 | 113 | 4,552 | ||||||||||||||||
2003 | |||||||||||||||||||||
Investments and other non current assets(3) | 1,555 | (166 | ) | 93 | 148 | 1,334 | |||||||||||||||
Inventories (including reserve for crude oil price changes) | 2,239 | (55 | ) | — | 276 | 1,908 | |||||||||||||||
Accounts receivable | 555 | (40 | ) | 3 | — | 518 | |||||||||||||||
Other current assets | 54 | (5 | ) | — | 7 | 42 | |||||||||||||||
Total | 4,403 | (266 | ) | 96 | 431 | 3,802 | |||||||||||||||
2002 | |||||||||||||||||||||
Investments and other non current assets(3) | 1,700 | (74 | ) | 162 | 233 | 1,555 | |||||||||||||||
Inventories (including reserve for crude oil price changes) | 1,552 | (5 | ) | 810 | 118 | 2,239 | |||||||||||||||
Accounts receivable | 557 | (39 | ) | 137 | 100 | 555 | |||||||||||||||
Other current assets | 56 | (13 | ) | 15 | 4 | 54 | |||||||||||||||
Total | 3,865 | (131 | ) | 1,124 | 455 | 4,403 | |||||||||||||||
LONG-TERM LIABILITIES | |||||||||||||||||||||
2004 | |||||||||||||||||||||
Employee benefits | 3,818 | (49 | ) | 407 | 576 | 3,600 | |||||||||||||||
Other liabilities and deferred income taxes | 11,507 | 171 | 2,176 | 1,628 | 12,226 | ||||||||||||||||
Total | 15,325 | 122 | 2,583 | 2,204 | 15,826 | ||||||||||||||||
2003 | |||||||||||||||||||||
Employee benefits | 4,103 | (117 | ) | 419 | 587 | 3,818 | |||||||||||||||
Other liabilities and deferred income taxes | 12,267 | (396 | ) | 1,709 | 2,073 | 11,507 | |||||||||||||||
Total | 16,370 | (513 | ) | 2,128 | 2,660 | 15,325 | |||||||||||||||
2002 | |||||||||||||||||||||
Employee benefits | 3,355 | 869 | 274 | 395 | 4,103 | ||||||||||||||||
Other liabilities and deferred income taxes | 12,354 | (335 | ) | 2,188 | 1,940 | 12,267 | |||||||||||||||
Total | 15,709 | 534 | 2,462 | 2,335 | 16,370 | ||||||||||||||||
(1) | Amounts charged to other accounts includes (i) minimum liability adjustments and (ii) currency translation adjustments. |
(2) | Deductions correspond to (i) amounts reversed into income, which offset charges for which the reserves were created (ii) adjustments to deferred tax assets and liabilities and (iii) adjustments in our replacement cost reserve. |
(3) | The breakdown between investments and other non current assets is as follows: |
As of December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Investments | 809 | 834 | 844 | |||||||||
Other non current assets | 607 | 500 | 711 | |||||||||
1,416 | 1,334 | 1,555 | ||||||||||
S-1