Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information on pages1-15 of this exhibit concerning TOTAL S.A. and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TOTAL” or the “Group”) with respect to the third quarter 2019 and nine months ended September 30, 2019, has been derived from TOTAL’s unaudited consolidated balance sheets as of September 30, 2019, unaudited statements of income, comprehensive income, cash flow, business segment information for the third quarter 2019 and nine months ended September 30, 2019 and unaudited consolidated statements of changes in shareholders’ equity for the nine months ended September 30, 2019 presented on pages16-30 and41-44 of this exhibit.
The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TOTAL’s audited consolidated financial statements and related notes, provided in TOTAL’s Annual Report on Form20-F for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2019, as amended on April 26,2019.
A. KEY FIGURES
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars (except earnings per share and number of shares) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
48,589 | 51,242 | 54,717 | -11 | % | Non-Group sales | 151,036 | 156,868 | -4 | % | |||||||||||||||||||
Adjusted net operating income(a)from business segments | ||||||||||||||||||||||||||||
1,734 | 2,022 | 2,439 | -29 | % | • Exploration & Production* | 5,478 | 6,571 | -17 | % | |||||||||||||||||||
574 | 429 | 697 | -18 | % | • Integrated Gas, Renewables & Power* | 1,595 | 1,743 | -8 | % | |||||||||||||||||||
952 | 715 | 938 | +1 | % | • Refining & Chemicals | 2,423 | 2,479 | -2 | % | |||||||||||||||||||
413 | 423 | 474 | -13 | % | • Marketing & Services | 1,179 | 1,319 | -11 | % | |||||||||||||||||||
1,381 | 812 | 918 | +50 | % | Net income (loss) from equity affiliates | 2,904 | 2,505 | +16 | % | |||||||||||||||||||
1.04 | 1.00 | 1.47 | -29 | % | Fully-diluted earnings per share ($) | 3.20 | 3.85 | -17 | % | |||||||||||||||||||
2,614 | 2,625 | 2,637 | -1 | % | Fully-diluted weighted-average shares (millions) | 2,621 | �� | 2,618 | n/a | |||||||||||||||||||
2,800 | 2,756 | 3,957 | -29 | % | Net income (Group share) | 8,667 | 10,314 | -16 | % | |||||||||||||||||||
3,296 | 3,028 | 2,568 | +28 | % | Organic investments(b) | 9,107 | 7,967 | +14 | % | |||||||||||||||||||
3,422 | 402 | 3,640 | -6 | % | Net acquisitions(c) | 4,131 | 4,893 | -16 | % | |||||||||||||||||||
6,718 | 3,430 | 6,208 | +8 | % | Net investments(d) | 13,238 | 12,860 | +3 | % | |||||||||||||||||||
8,206 | 6,251 | 5,736 | +43 | % | Cash flow from operations | 18,086 | 14,063 | +29 | % | |||||||||||||||||||
of which: | ||||||||||||||||||||||||||||
1,523 | (317 | ) | (1,578 | ) | n/a | • (increase)/decrease in working capital(e) | (1,764 | ) | (5,656 | ) | n/a | |||||||||||||||||
(532 | ) | (501 | ) | (419 | ) | n/a | • financial charges | (1,536 | ) | (1,115 | ) | n/a |
2019 data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
* | 3Q18 and 9M18 restated; historical data for 2017 and 2018 available onwww.total.com. |
Environment* — liquids and gas price realizations**, refining margins
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | 9M19 | 9M18 | 9M19 vs 9M18 | ||||||||||||||||||||||
62.0 | 68.9 | 75.2 | -18 | % | Brent ($/b) | 64.6 | 72.1 | -10 | % | |||||||||||||||||||
2.3 | 2.5 | 2.9 | -19 | % | Henry Hub ($/Mbtu) | 2.6 | 2.8 | -10 | % | |||||||||||||||||||
3.9 | 4.1 | 8.4 | -54 | % | NBP ($/Mbtu) | 4.8 | 7.6 | -37 | % | |||||||||||||||||||
4.7 | 4.9 | 10.7 | -56 | % | JKM ($/Mbtu) | 5.4 | 9.7 | -44 | % | |||||||||||||||||||
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58.0 | 63.7 | 68.8 | -16 | % | Average liquids price ($/b)** | 60.0 | 66.1 | -9 | % | |||||||||||||||||||
3.48 | 3.82 | 5.06 | -31 | % | Average gas price ($/Mbtu)** | 3.93 | 4.83 | -19 | % | |||||||||||||||||||
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47.4 | 27.6 | 47.2 | n/a | Variable cost margin – European refining, VCM ($/t) | 36.2 | 37.3 | -3 | % |
* | The indicators are shown on page 15. |
** | Consolidated subsidiaries. |
(a) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See page 3 et seq. “Analysis of business segment results” below for further details. |
(b) | “Organic investments” = net investments excluding acquisitions, asset sales and other operations withnon-controlling interests. |
(c) | “Net acquisitions” = acquisitions - assets sales - other transactions withnon-controlling interests (see page 13). |
(d) | “Net investments” = organic investments + net acquisitions (see page 13). |
(e) | The change in working capital as determined using the replacement cost method and, effective second quarter 2019, including organic loan repayments from equity affiliates was $1,353 million in 3Q19, $(456) million in 2Q19, $(1,352) million in 3Q18, $(1,507) million in 9M19 and $(4,794) in 9M18. Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations. |
1
Production*
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | 9M19 | 9M18 | 9M19 vs 9M18 | ||||||||||||||||||
3,040 | 2,957 | 2,804 | +8 | % | Hydrocarbon production (kboe/d) | 2,981 | 2,742 | +9 | % | |||||||||||||||
1,441 | 1,407 | 1,431 | +1 | % | • Oil (including bitumen) (kb/d) | 1,424 | 1,377 | +3 | % | |||||||||||||||
1,599 | 1,549 | 1,373 | +16 | % | • Gas (including condensates and associated NGL) (kboe/d) | 1,557 | 1,365 | +14 | % | |||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | 9M19 | 9M18 | 9M19 vs 9M18 | ||||||||||||||||||
3,040 | 2,957 | 2,804 | +8 | % | Hydrocarbon production (kboe/d) | 2,981 | 2,742 | +9 | % | |||||||||||||||
1,720 | 1,624 | 1,611 | +7 | % | • Liquids (kb/d) | 1,658 | 1,558 | +6 | % | |||||||||||||||
7,399 | 7,477 | 6,557 | +13 | % | • Gas (Mcf/d) | 7,399 | 6,465 | +14 | % |
* | Group production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP) |
Hydrocarbon production was 3,040 thousand barrels of oil equivalent per day (kboe/d) in third quarter 2019, an increase of 8% compared to last year, due to:
• | +12% related to thestart-up andramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria, and Culzean in the United Kingdom; |
• | -3% due to the natural decline of the fields; and |
• | -1% due to maintenance, notably in Norway. |
Hydrocarbon production was 2,981 thousand barrels of oil equivalent per day (kboe/d) in the first nine months of 2019, an increase of 9% compared to last year, due to:
• | +12% related to thestart-up andramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria; |
• | +1% due to portfolio effect, notably the integration of the Maersk Oil assets; |
• | -3% due to the natural decline of the fields; and |
• | -1% due to maintenance, notably in Nigeria and Norway. |
2
B. ANALYSIS OF BUSINESS SEGMENT RESULTS
The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, the Group values inventories of petroleum products in its financial statements according to theFirst-In,First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates theLast-In,First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either themonth-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value usingperiod-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Group’s internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on asegment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages24-30 and40-46 of this exhibit.
The Group measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends fromnon-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt andnon-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
The profitable growth in the gas and low carbon electricity integrated value chains is one of the key axes of TOTAL’s strategy. In order to give more visibility to these businesses, a new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2019. The organization of the Group’s activities is structured around the four following segments: Exploration & Production segment, Integrated Gas, Renewables & Power (comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity that was previously reported in the E&P segment); Refining & Chemicals and Marketing & Services. Certain figures for the years 2017 and 2018 have been restated in order to reflect the new organization.
3
B.1. Exploration & Production segment (EP – redefined scope)
• | Production |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Hydrocarbon production | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
2,501 | 2,398 | 2,433 | +3 | % | EP (kboe/d) | 2,442 | 2,389 | +2 | % | |||||||||||||||||||
1,647 | 1,551 | 1,575 | +5 | % | • Liquids (kb/d) | 1,587 | 1,522 | +4 | % | |||||||||||||||||||
4,654 | 4,629 | 4,678 | -1 | % | • Gas (Mcf/d) | 4,663 | 4,729 | -1 | % | |||||||||||||||||||
• Results | ||||||||||||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars (except effective tax rate) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
1,631 | 2,273 | 2,433 | -33 | % | Non-Group sales | 5,698 | 7,770 | -27 | % | |||||||||||||||||||
2,257 | 2,967 | 3,832 | -41 | % | Operating income | 8,176 | 10,310 | -21 | % | |||||||||||||||||||
77 | 173 | 449 | -83 | % | Net income (loss) from equity affiliates and other items | 444 | 1,026 | -57 | % | |||||||||||||||||||
39.7 | % | 39.5 | % | 47.5 | % | Effective tax rate* | 42.8 | % | 47.5 | % | ||||||||||||||||||
(1,094 | ) | (1,161 | ) | (1,853 | ) | -41 | % | Tax on net operating income | (3,679 | ) | (4,972 | ) | -26 | % | ||||||||||||||
1,240 | 1,979 | 2,428 | -49 | % | Net operating income | 4,941 | 6,364 | -22 | % | |||||||||||||||||||
494 | 43 | 11 | x44 | Adjustments affecting net operating income | 537 | 207 | x2.6 | |||||||||||||||||||||
1,734 | 2,022 | 2,439 | -29 | % | Adjusted net operating income** | 5,478 | 6,571 | -17 | % | |||||||||||||||||||
297 | 239 | 316 | -6 | % | • including income from equity affiliates | 749 | 871 | -14 | % | |||||||||||||||||||
2,065 | 1,995 | 1,605 | +29 | % | Organic investments | 6,018 | 5,188 | +16 | % | |||||||||||||||||||
(3 | ) | 204 | 373 | n/a | Net acquisitions | 239 | 2,305 | -90 | % | |||||||||||||||||||
2,061 | 2,199 | 1,978 | +4 | % | Net investments | 6,256 | 7,493 | -17 | % |
* | “Effective tax rate” = tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income). |
** | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Exploration & Production adjusted net operating income was:
• | $1,734 million in the third quarter 2019, a decrease of 29%year-on-year, impacted notably by lower Brent and natural gas prices as well as higher depreciation, depletion and amortization expenses on new projects; and |
• | $5,478 million in the first nine months of 2019, a decrease of 17% compared to the first nine months of 2018, for the same reasons. |
Adjusted net operating income for the Exploration & Production segment excludes special items. In the third quarter 2019, the exclusion of special items had a positive impact of $494 million compared to a positive impact of $11 million in the third quarter 2018. In the first nine months of 2019, the exclusion of special items had a positive impact of $537 million on the segment’s adjusted net operating income, compared to a positive impact of $207 million in the first nine months of 2018.
In the third quarter 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $5,007 million, an increase of 13% compared to $4,431 million in the third quarter 2018. In the first nine months of 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $12,711 million, an increase of 4% compared to $12,227 million in the first nine months of 2018. In the third quarter 2019, the segment’s operating cash flow excluding the change in working capital at replacement cost1and excluding financial charges, except those related to leases was $4,451 million, a decrease of 14% compared to $5,200 million in the third quarter 2018. In the first nine months of 2019, the segment’s operating cash flow excluding the change in working capital at replacement cost1and excluding financial charges, except those related to leases was $13,579 million, a decrease of 2% compared to $13,921 million in the first nine months of 2018. Thestart-up of highly accretive cash flow projects offset the effect of lower Brent and gas prices.
1 | Operating cash flow excluding the change in working capital at replacement cost and effective second quarter 2019 including organic loan repayments from equity affiliatesprovides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 13 of this exhibit. |
4
B.2. Integrated Gas, Renewables & Power segment (iGRP)
• | Production and liquefied natural gas (LNG) sales |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Hydrocarbon production | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
539 | 559 | 371 | +45 | % | iGRP (kboe/d) | 539 | 353 | +53 | % | |||||||||||||||||||
73 | 73 | 36 | x2 | • Liquids (kb/d) | 71 | 36 | +94 | % | ||||||||||||||||||||
2,745 | 2,848 | 1,879 | +46 | % | • Gas (Mcf/d) | 2,736 | 1,736 | +58 | % | |||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | LNG in Mt | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
7.4 | 8.5 | 6.2 | +20 | % | Overall LNG sales | 23.7 | 13.9 | +71 | % | |||||||||||||||||||
4.2 | 4.1 | 2.8 | +50 | % | • including sales from equity production* | 12.0 | 7.7 | +55 | % | |||||||||||||||||||
5.5 | 6.7 | 5.1 | +8 | % | • including sales by TOTAL from equity production and third party purchases | 18.3 | 10.5 | +75 | % |
* | The Group’s equity production may be sold by TOTAL or by joint ventures. |
Production growth compared to a year ago is essentially linked to thestart-up of production from the Ichthys project in Australia in the third quarter 2018 and the successive start-ups of trains at Yamal LNG in Russia.
Total LNG sales for the third quarter 2019 increased by 20% compared to last year due to theramp-up of Yamal LNG and Ichthys as well as thestart-up of the first train at Cameron LNG in the United States.
Total LNG sales increased by 71% in the first nine months of 2019 for the same reasons as well as the acquisition of the portfolio of LNG contracts from Engie in the third quarter 2018.
• | Results |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
3,667 | 3,789 | 5,568 | -34 | % | Non-Group sales | 13,875 | 13,455 | +3 | % | |||||||||||||||||||
321 | 215 | 270 | +19 | % | Operating income | 858 | 188 | x4.6 | ||||||||||||||||||||
898 | 661 | 445 | x2 | Net income (loss) from equity affiliates and other items | 1,939 | 1,240 | +56 | % | ||||||||||||||||||||
(222 | ) | (450 | ) | (155 | ) | +43 | % | Tax on net operating income | (845 | ) | (392 | ) | +116 | % | ||||||||||||||
997 | 426 | 560 | +78 | % | Net operating income | 1,952 | 1,036 | +88 | % | |||||||||||||||||||
(423 | ) | 3 | 137 | n/a | Adjustments affecting net operating income | (357 | ) | 707 | -150 | % | ||||||||||||||||||
574 | 429 | 697 | -18 | % | Adjusted net operating income* | 1,595 | 1,743 | -8 | % | |||||||||||||||||||
206 | 195 | 324 | -36 | % | • including income from equity affiliates | 656 | 802 | -18 | % | |||||||||||||||||||
641 | 442 | 407 | +57 | % | Organic investments | 1,576 | 1,131 | +39 | % | |||||||||||||||||||
3,375 | 159 | 3,341 | +1 | % | Net acquisitions | 3,934 | 3,047 | +29 | % | |||||||||||||||||||
4,015 | 601 | 3,748 | +7 | % | Net investments | 5,509 | 4,178 | +32 | % |
* | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Adjusted net operating income for the Integrated Gas, Renewables & Power segment was $574 million in the third quarter 2019, a decrease of 18% compared to $697 million in the third quarter 2018, and $1,595 million in the first nine months of 2019, a decrease of 8% compared to $1,743 million in the first nine months of 2018, impacted by lower gas prices in Europe and Asia in particular as well as higher depreciation, depletion and amortization expenses on new projects.
Adjusted net operating income for the Integrated Gas, Renewables & Power segment excludes special items. In the third quarter 2019, the exclusion of special items had a negative impact of $423 million on the segment’s adjusted net operating income, compared to a positive impact of $137 million in the third quarter 2018. In the first nine months of 2019, the exclusion of special items had a negative impact of $357 million on the segment’s adjusted net operating income, compared to a positive impact of $707 million in the first nine months of 2018.
In the third quarter 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $848 million, an increase of 53% compared to $553 million in the third quarter 2018, driven by strong LNG sales growth. In the first nine months of 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $2,327 million, an increase of 62% compared to $1,438 million in the first nine months of 2018 for the same reasons.
5
B.3. Refining & Chemicals segment
• | Refinery throughput and utilization rates* |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | 9M19 | 9M18 | 9M19 vs 9M18 | ||||||||||||||||||||||
1,719 | 1,595 | 1,953 | -12 | % | Total refinery throughput (kb/d) | 1,725 | 1,840 | -6 | % | |||||||||||||||||||
503 | 447 | 654 | -23 | % | • France | 514 | 616 | -17 | % | |||||||||||||||||||
757 | 679 | 795 | -5 | % | • Rest of Europe | 753 | 737 | +2 | % | |||||||||||||||||||
459 | 469 | 504 | -9 | % | • Rest of world | 458 | 487 | -6 | % | |||||||||||||||||||
82 | % | 77 | % | 92 | % | Utilization rates based on crude only** | 83 | % | 87 | % |
* | Includes refineries in Africa reported in the Marketing & Services segment. |
** | Based on distillation capacity at the beginning of the year. |
Refinery throughput volumes:
• | decreased by 12% in the third quarter 2019year-on-year, notably as a result of the start of planned maintenance at Normandy and the partial contribution of Grandpuits in France during the third quarter 2019; and |
• | decreased by 6% in the first nine months of 2019year-on-year for the same reasons. |
• | Results |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
21,338 | 22,509 | 23,572 | -9 | % | Non-Group sales | 65,558 | 68,660 | -5 | % | |||||||||||||||||||
1,035 | 484 | 1,142 | -9 | % | Operating income | 2,763 | 3,047 | -9 | % | |||||||||||||||||||
5 | 111 | 221 | n/a | Net income (loss) from equity affiliates and other items | 265 | 638 | -58 | % | ||||||||||||||||||||
(221 | ) | 46 | (292 | ) | +24 | % | Tax on net operating income | (467 | ) | (675 | ) | -30 | % | |||||||||||||||
819 | 641 | 1,071 | -24 | % | Net operating income | 2,561 | 3,010 | -15 | % | |||||||||||||||||||
133 | 74 | (133 | ) | -200 | % | Adjustments affecting net operating income | (138 | ) | (531 | ) | -74 | % | ||||||||||||||||
952 | 715 | 938 | +1 | % | Adjusted net operating income* | 2,423 | 2,479 | -2 | % | |||||||||||||||||||
354 | 353 | 295 | +20 | % | Organic investments | 947 | 989 | -4 | % | |||||||||||||||||||
19 | (58 | ) | (6 | ) | n/a | Net acquisitions | (163 | ) | (313 | ) | n/a | |||||||||||||||||
374 | 295 | 289 | +29 | % | Net investments | 785 | 676 | +16 | % |
* | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Adjusted net operating income for the Refining & Chemicals segment was $952 million in the third quarter 2019, an increase of 1% compared to $938 million in the third quarter 2018, benefiting notably from more favorable petrochemical margins in Europe, and amounted to $2,423 million in the first nine months of 2019, a decrease of 2% compared to $2,479 million in the first nine months of 2018.
Adjusted net operating income for the Refining & Chemicals segment excludes anyafter-tax inventory valuation effect and special items. In the third quarter 2019, the exclusion of the inventory valuation effect had a positive impact of $90 million on the segment’s adjusted net operating income, compared to a negative impact of $135 million in the third quarter 2018. In the third quarter 2019, the exclusion of special items had a positive impact of $43 million on the segment’s adjusted net operating income, compared to a negative impact of $2 million in the third quarter 2018. In the first nine months of 2019, the exclusion of the inventory valuation effect had a negative impact of $254 million on the segment’s adjusted net operating income, compared to a negative impact of $550 million in the first nine months of 2018. In the first nine months of 2019, the exclusion of special items had a positive impact of $116 million on the segment’s adjusted net operating income, compared to a positive impact of $19 million in the first nine months of 2018.
In the third quarter 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,575 million, an increase of 18% compared to $1,338 million in the third quarter 2018. In the first nine months of 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $2,695 million compared to $1,228 million in the third quarter 2018. In the third quarter 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,373 million, an increase of 17% compared to $1,174 million in the third quarter 2018. In the first nine months of 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases increased by 5% compared to the first nine months of 2018, from $3,112 million to $3,283.
6
B.4. Marketing & Services segment
• | Petroleum product sales |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | sales in kb/d* | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||
1,848 | 1,860 | 1,818 | +2 | % | Total Marketing & Services sales | 1,848 | 1,806 | +2 | % | |||||||||||
1,034 | 1,004 | 1,024 | +1 | % | • Europe | 1,017 | 1,006 | +1 | % | |||||||||||
814 | 856 | 794 | +3 | % | • Rest of world | 831 | 800 | +4 | % |
* | Excludes trading and bulk refining sales. |
Sales of petroleum products increased by 2% in the third quarter 2019 and the first nine months of 2019, due to the development of activities in the African and American regions, notably Mexico and Brazil.
• | Results |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
21,951 | 22,671 | 23,144 | -5 | % | Non-Group sales | 65,901 | 66,980 | -2 | % | |||||||||||||||||||
558 | 450 | 569 | -2 | % | Operating income | 1,577 | 1,588 | -1 | % | |||||||||||||||||||
(15 | ) | 111 | 109 | n/a | Net income (loss) from equity affiliates and other items | 86 | 302 | -72 | % | |||||||||||||||||||
(164 | ) | (170 | ) | (166 | ) | +1 | % | Tax on net operating income | (498 | ) | (463 | ) | +8 | % | ||||||||||||||
379 | 391 | 512 | -26 | % | Net operating income | 1,165 | 1,427 | -18 | % | |||||||||||||||||||
34 | 32 | (38 | ) | n/a | Adjustments affecting net operating income | 14 | (108 | ) | n/a | |||||||||||||||||||
413 | 423 | 474 | -13 | % | Adjusted net operating income* | 1,179 | 1,319 | -11 | % | |||||||||||||||||||
215 | 204 | 245 | -12 | % | Organic investments | 498 | 586 | -15 | % | |||||||||||||||||||
33 | 96 | (69 | ) | n/a | Net acquisitions | 121 | (145 | ) | n/a | |||||||||||||||||||
248 | 300 | 176 | +41 | % | Net investments | 620 | 441 | +41 | % |
* | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Adjusted net operating income for the Marketing & Services segment was $413 million in the third quarter 2019, a decrease of 13% compared to $474 million in the third quarter 2018, and $1,179 million in the first nine months of 2019, a decrease of 11% compared to $1,319 million in the first nine months of 2018.
Adjusted net operating income for the Marketing & Services segment excludes anyafter-tax inventory valuation effect and special items. In the third quarter 2019, the exclusion of the inventory valuation effect had a negative impact of $19 million on the segment’s adjusted net operating income, compared to a negative impact of $38 million in the third quarter 2018. In the third quarter 2019, the exclusion of special items had a positive impact of $53 million on the segment’s adjusted net operating income, and no impact on the segment’s adjusted net operating income in the third quarter 2018. In the first nine months of 2019, the exclusion of the inventory valuation effect had a negative impact of $46 million on the segment’s adjusted net operating income, compared to a negative impact of $108 million in the first nine months of 2018. In the first nine months of 2019, the exclusion of special items had a positive impact of $60 million on the segment’s adjusted net operating income and no impact on the segment’s adjusted net operating income in the first nine months of 2018.
In the third quarter 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,483 million, an increase of 97% compared to $752 million in the third quarter 2018. In the first nine months of 2019, the segment’s cash flow from operating activities excluding financial charges, except those related to leases increased by 52% compared to the first nine months of 2018, from $1,533 million to $2,326 million. In the third quarter 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $622 million, an increase of 7% compared to $580 million in the third quarter 2018. In the first nine months of 2019, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,830 million, an increase of 10% compared to $1,656 million in the first nine months of 2018.
7
C. GROUP RESULTS
• | Net income (Group share) |
In the third quarter 2019, net income (Group share) was $2,800 million, a decrease of 29% compared to $3,957 million in the third quarter 2018. In the first nine months of 2019, net income (Group share) was $8,667 million, a decrease of 16% compared to $10,314 million in the first nine months of 2018.
Adjusted net income excludes theafter-tax inventory effect, special items and the impact of changes in fair value1.
Adjusted net income (Group share) was:
• | $3,017 million in the third quarter 2019, a decrease of 24% compared to the third quarter 2018. This decrease reflects the decrease in the adjusted net operating income of the segments; and |
• | $8,663 million in the first nine months of 2019, a decrease of 17% compared to the first nine months of 2018 for the same reasons and the increase in the net cost of net debt compared to the first nine months of 2018 mainly due to the rise in U.S. dollar interest rates. |
Total adjustments affecting net income (Group share)2were:
• | $(217) million in the third quarter 2019; and |
• | $4 million in the first nine months of 2019. |
• | Fully-diluted shares and share buyback |
The number of fully-diluted shares was 2,614 million on September 30, 2019.
In the context of the shareholder return policy announced in February 2018, the Group has continued to buy back shares, including:
• | the buyback of 16.1 million shares, representing all shares issued in 2019 under the scrip dividend option, until it was terminated; and |
• | the buyback of additional shares, representing 8 million shares repurchased in the third quarter 2019 for $0.40 million and 21.7 million shares in the first nine months of 2019 for $1,15 billion as part of the $5 billion share buyback program for2018-20. |
• | Acquisitions - Asset sales |
Acquisitions consisted of:
• | $4,429 million in the third quarter 2019, relating notably to the acquisition of Anadarko’s interest in Mozambique LNG; and |
• | $5,713 million in the first nine months of 2019, relating notably to the elements mentioned above as well as to the signing of the acquisition of a 10% stake in the Arctic LNG 2 project in Russia and the acquisition of Chevron’s interest in the Danish Underground Consortium in Denmark. |
Asset sales consisted of:
• | $1,007 million in the third quarter 2019, including notably the payment received with the take-over of the Toshiba LNG portfolio in the United States; and |
• | $1,582 million in the first nine months of 2019, linked notably to the elements mentioned above and the sale of the interest in the Wepec refinery in China, the sale of the Group’s interest in the Hazira terminal in India and polystyrene activities in China. |
1 | Details shown on page 13 of this exhibit. |
2 | Details shown on pages 13 and33-35 of this exhibit. |
8
• | Cash flow |
The Group’s cash flow from operating activities increased by 43% in the third quarter 2019 compared to the third quarter 2018 from $5,736 million to $8,206 million. The Group’s cash flow from operating activities was $18,086 million in the first nine months of 2019, an increase of 29% compared to $14,063 million in the first nine months of 2018.
The change in working capital at replacement cost in the third quarter 2019, which is the (increase)/decrease in working capital of $1,523 million as determined in accordance with IFRS adjusted for thepre-tax inventory valuation effect of $(69) million, was $1,454 million, compared to $(1,352) million in the third quarter 2018. The change in working capital at replacement cost in the first nine months of 2019, which is the (increase)/decrease in working capital of $(1,764) million as determined in accordance with IFRS adjusted for thepre-tax inventory valuation effect of $457 million, was $(1,307) million, compared to $(4,794) million in the first nine months of 2018.
In the third quarter 2019, operating cash flow excluding the change in working capital at replacement cost was $6,853 million, a decrease of 3% compared to $7,088 million in the third quarter 2018. In the first nine months of 2019, operating cash flow excluding the change in working capital at replacement cost was $19,593 million, an increase of 4% compared to $18,857 million in the first nine months of 2018. In the third quarter 2019, operating cash flow excluding the change in working capital at replacement cost, without financial charges was $7,385 million, a decrease of 2% compared to $7,507 million in the third quarter 2018. In the first nine months of 2019, operating cash flow excluding the change in working capital at replacement cost, without financial charges was $21,129 million, an increase of 6% compared to $19,972 million in the first nine months of 2018.
The Group’s net cash flow1 was:
• | $135 million in the third quarter 2019, a decrease of $745 million compared to the third quarter 2018 due to increased net acquisitions, and |
• | $6,355 million in the first nine months of 2019, an increase of $358 million compared to the first nine months of 2018 due to higher operating cash flow before working capital changes partially offset by higher net acquisitions. |
1 | Net cash flow = operating cash flow before working capital changes - net investments (including other transactions withnon-controlling interests). |
9
D. PROFITABILITY
Return on equity for the twelve months ended September 30, 2019, was 10.3%, a decrease compared to the same period a year ago.
in millions of dollars | 10/01/2018 - 09/30/2019 | 07/01/2018 - 06/30/2019 | 10/01/2017- 09/30/2018 | |||||||||
Adjusted net income | 12,104 | 13,125 | 13,679 | |||||||||
Adjusted shareholders’ equity | 117,037 | 117,787 | 114,729 | |||||||||
Return on equity (ROE) | 10.3 | % | 11.1 | % | 11.9 | % |
Return on average capital employed was 9.6% for the twelve months ended September 30, 2019, a decrease compared to the same period a year ago.
in millions of dollars | 10/01/2018 - 09/30/2019 | 07/01/2018 - 06/30/2019 | 10/01/2017- 09/30/2018 | |||||||||
Adjusted net operating income | 14,094 | 15,087 | 15,295 | |||||||||
Adjusted capital employed | 146,222 | 145,247 | 138,242 | |||||||||
ROACE | 9.6 | % | 10.4 | % | 11.1 | % |
E. 2019 SENSITIVITIES*
Change | Estimated impact on adjusted net operating income | Estimated impact on cash flow from operations | ||||
Dollar | +/- $0.1 per € | -/+ $0.1 B | ~ $0 B | |||
Average Liquids Price** | +/- $10/b | +/- $2.7 B | +/- $3.2 B | |||
Variable cost margin, European refining (VCM) | +/- $10/t | +/- $0.5 B | +/- $0.6 B |
* | Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2019. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. |
** | In a $60/b Brent environment. |
F. SUMMARY AND OUTLOOK
Since the beginning of the fourth quarter 2019, Brent has traded around $60/b on average. The environment remains volatile, with uncertainty about hydrocarbon demand growth related to the outlook for global economic growth and in a context of geopolitical instability.
The Group maintains its cost discipline and the organicpre-dividend cash flow breakeven will remain below $30/b. The Group continues its cost reduction program with more than $0.5 billion of additional savings this year to reach cumulative savings of more than $4.7 billion by the end of 2019. The Group will continue its $5 billion asset sale program over the2019-20 period ($1.6 billion was completed as at the end of September 2019) and net investments for 2019 should be less than $18 billion.
Production growth should reach 9% in 2019, due toramp-ups on projects started in 2018 and thestart-ups of projects since the beginning of 2019, including Kaombo Sul in Angola, Culzean in the UK North Sea and Johan Sverdrup in Norway, and the upcomingstart-up of Iara 1 in Brazil.
The Group will continue to implement its strategy for profitable growth on the integrated gas and low carbon electricity chains, and the iGRP segment will benefit in 2020 from thestart-ups of Yamal LNG train 4 as well as Cameron LNG trains 2 and 3.
Despite volatile European refining margins, the Downstream is well positioned to generate cash flow close to $7 billion in 2019.
Taking into account the stronger visibility on the Group’s future, the board of directors of TOTAL S.A. decided on September 23, 2019 to accelerate dividend growth for the coming years with a guidance of increasing the dividend by5%-6% per year. In addition, the Group will continue to buy back shares according to its $5 billion share buyback program over the 2018-2020 period at $60/b with the cumulative projected amount of $3.25 billion by the end of 2019.
10
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “plans”, “targets”, “estimates” or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTAL’s future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTAL’s ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
• | 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 and 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 tax and 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 flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; |
• | 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. |
For additional factors, you should read the information set forth under “Item 3.-3.2 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form20-F for the year ended December 31, 2018.
11
OPERATING INFORMATION BY SEGMENT
• | Group production (EP + iGRP) |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Combined liquids and gas production by region (kboe/d) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
1,004 | 997 | 910 | +10 | % | Europe and Central Asia | 997 | 879 | +13 | % | |||||||||||||||||||
733 | 686 | 676 | +8 | % | Africa | 705 | 674 | +5 | % | |||||||||||||||||||
720 | 703 | 687 | +5 | % | Middle East and North Africa | 703 | 669 | +5 | % | |||||||||||||||||||
363 | 358 | 399 | -9 | % | Americas | 364 | 390 | -7 | % | |||||||||||||||||||
221 | 214 | 132 | +68 | % | Asia-Pacific | 212 | 129 | +64 | % | |||||||||||||||||||
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3,040 | 2,957 | 2,804 | +8 | % | Total production | 2,981 | 2,742 | +9 | % | |||||||||||||||||||
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698 | 750 | 645 | +8 | % | • includes equity affiliates | 719 | 661 | +9 | % | |||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Liquids production by region (kb/d) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
367 | 328 | 341 | +8 | % | Europe and Central Asia | 349 | 324 | +8 | % | |||||||||||||||||||
583 | 549 | 528 | +10 | % | Africa | 558 | 514 | +8 | % | |||||||||||||||||||
562 | 546 | 538 | +4 | % | Middle East and North Africa | 543 | 526 | +3 | % | |||||||||||||||||||
163 | 160 | 186 | -12 | % | Americas | 167 | 180 | -8 | % | |||||||||||||||||||
44 | 41 | 18 | x2.4 | Asia-Pacific | 41 | 14 | x3 | |||||||||||||||||||||
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1,720 | 1,624 | 1,611 | +7 | % | Total production | 1,658 | 1,558 | +6 | % | |||||||||||||||||||
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210 | 225 | 221 | -5 | % | • includes equity affiliates | 217 | 252 | -14 | % | |||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Gas production by region (Mcf/d) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
3,431 | 3,639 | 3,069 | +12 | % | Europe and Central Asia | 3,498 | 2,993 | +17 | % | |||||||||||||||||||
768 | 703 | 776 | -1 | % | Africa | 754 | 801 | -6 | % | |||||||||||||||||||
866 | 866 | 830 | +4 | % | Middle East and North Africa | 879 | 793 | +11 | % | |||||||||||||||||||
1,124 | 1,107 | 1,198 | -6 | % | Americas | 1,111 | 1,183 | -6 | % | |||||||||||||||||||
1,210 | 1,162 | 684 | +77 | % | Asia-Pacific | 1,157 | 695 | +66 | % | |||||||||||||||||||
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7,399 | 7,477 | 6,557 | +13 | % | Total production | 7,399 | 6,465 | +14 | % | |||||||||||||||||||
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2,635 | 2,868 | 2,313 | +14 | % | • includes equity affiliates | 2,718 | 2,199 | +24 | % |
• | Downstream (Refining & Chemicals and Marketing & Services) |
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | Petroleum product sales by region (kb/d) | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
1,999 | 2,018 | 2,030 | -2 | % | Europe | 2,013 | 1,958 | +3 | % | |||||||||||||||||||
677 | 751 | 760 | -11 | % | Africa | 695 | 722 | -4 | % | |||||||||||||||||||
920 | 846 | 979 | -6 | % | Americas | 868 | 847 | +2 | % | |||||||||||||||||||
541 | 536 | 569 | -5 | % | Rest of world | 564 | 631 | -11 | % | |||||||||||||||||||
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4,136 | 4,152 | 4,338 | -5 | % | Total consolidated sales | 4,141 | 4,158 | — | ||||||||||||||||||||
544 | 535 | 581 | -6 | % | • includes bulk sales | 545 | 569 | -4 | % | |||||||||||||||||||
1,745 | 1,757 | 1,939 | -10 | % | • includes trading | 1,748 | 1,783 | -2 | % |
12
ADJUSTMENT ITEMS
• | Adjustment items to net income (Group share) |
3Q19 | 2Q19 | 3Q18 | in millions of dollars | 9M19 | 9M18 | |||||||||||||||
(156 | ) | (56 | ) | (152 | ) | Special items affecting net income (Group share) | (226 | ) | (705 | ) | ||||||||||
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— | — | 89 | • Gain (loss) on asset sales | — | (14 | ) | ||||||||||||||
(20 | ) | (31 | ) | (39 | ) | • Restructuring charges | (53 | ) | (106 | ) | ||||||||||
(160 | ) | (57 | ) | (88 | ) | • Impairments | (217 | ) | (336 | ) | ||||||||||
24 | 32 | (114 | ) | • Other | 44 | (249 | ) | |||||||||||||
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(71 | ) | (28 | ) | 160 | After-tax inventory effect: FIFO vs. replacement cost | 289 | 632 | |||||||||||||
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10 | (47 | ) | (9 | ) | Effect of changes in fair value | (59 | ) | (8 | ) | |||||||||||
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(217 | ) | (131 | ) | (1 | ) | Total adjustments affecting net income | 4 | (81 | ) |
INVESTMENTS — DIVESTMENTS
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
3,296 | 3,028 | 2,568 | +28 | % | Organic investments (a) | 9,107 | 7,967 | +14 | % | |||||||||||||||||||
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152 | 185 | 156 | -3 | % | • capitalized exploration | 569 | 405 | +41 | % | |||||||||||||||||||
242 | 370 | 147 | +65 | • increase innon-current loans | 742 | 458 | +62 | % | ||||||||||||||||||||
(61 | ) | (254 | ) | (688 | ) | n/a | • repayment ofnon-current loans, excluding organic loan repayment from equity affiliates* | (449 | ) | (1,685 | ) | n/a | ||||||||||||||||
(109 | ) | — | — | n/a | • change in debt from renewable projects (Group share) | (109 | ) | — | n/a | |||||||||||||||||||
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4,429 | 614 | 3,228 | +37 | % | Acquisitions (b) | 5,713 | 7,343 | -22 | % | |||||||||||||||||||
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1,007 | 212 | 209 | x4.8 | Asset sales (c) | 1,582 | 3,071 | -48 | % | ||||||||||||||||||||
105 | — | — | n/a | • change in debt from renewable projects (partner share) | 105 | — | n/a | |||||||||||||||||||||
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— | — | (621 | ) | n/a | Other transactions withnon-controlling interests (d) | — | (621 | ) | n/a | |||||||||||||||||||
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6,718 | 3,430 | 6,208 | +8 | % | Net investments(a+b-c-d) | 13,238 | 12,860 | +3 | % | |||||||||||||||||||
(101 | ) | (99 | ) | — | n/a | Organic loan repayment from equity affiliates* (e) | (200 | ) | — | n/a | ||||||||||||||||||
214 | — | — | n/a | Change in debt from renewable projects** (f) | 214 | — | n/a | |||||||||||||||||||||
6,831 | 3,331 | 5,587 | +22 | % | Cash flow used in investing activities(a+b-c+e) | 13,252 | 12,239 | +8 | % |
* | Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations. |
** | Change in debt from renewable projects (Group share and partner share). |
CASH FLOW
3Q19 | 2Q19 | 3Q18 | 3Q19 vs 3Q18 | in millions of dollars | 9M19 | 9M18 | 9M19 vs 9M18 | |||||||||||||||||||||
7,385 | 7,208 | 7,507 | -2 | % | Operating cash flow before working capital changes w/o financial charges (DACF) | 21,129 | 19,972 | +6 | % | |||||||||||||||||||
(532 | ) | (501 | ) | (419 | ) | n/a | • Financial charges | (1,536 | ) | (1,115 | ) | n/a | ||||||||||||||||
6,853 | 6,707 | 7,088 | -3 | % | Operating cash flow before working capital changes (a) | 19,593 | 18,857 | +4 | % | |||||||||||||||||||
1,523 | (317 | ) | (1,578 | ) | n/a | • (Increase) decrease in working capital | (1,764 | ) | (5,656 | ) | n/a | |||||||||||||||||
(69 | ) | (40 | ) | 226 | n/a | • Inventory effect | 457 | 862 | -47 | % | ||||||||||||||||||
(101 | ) | (99 | ) | — | n/a | • Organic repayment of loans from equity affiliates | (200 | ) | — | n/a | ||||||||||||||||||
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8,206 | 6,251 | 5,736 | +43 | % | Cash flow from operations | 18,086 | 14,063 | +29 | % | |||||||||||||||||||
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3,296 | 3,028 | 2,568 | +28 | % | Organic investments (b) | 9,107 | 7,967 | +14 | % | |||||||||||||||||||
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|
|
|
|
|
| ||||||||||||||
3,557 | 3,679 | 4,520 | �� | -21 | % | Free cash flow after organic investments, w/o net asset sales(a-b) | 10,486 | 10,890 | -4 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
6,718 | 3,430 | 6,208 | +8 | % | Net investments (c) | 13,238 | 12,860 | +3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
135 | 3,277 | 880 | -85 | % | Net cash flow(a-c) | 6,355 | 5,997 | +6 | % |
13
GEARING RATIOS*
in millions of dollars | 09/30/2019 | 06/30/2019 | 09/30/2018 | |||||||||
Current borrowings | 14,631 | 16,221 | 15,180 | |||||||||
Net current financial assets | (3,012 | ) | (3,110 | ) | (2,884 | ) | ||||||
Net financial assets classified as held for sale | — | — | (14 | ) | ||||||||
Non-current financial debt | 47,923 | 45,394 | 41,088 | |||||||||
Hedging instruments ofnon-current debt | (767 | ) | (771 | ) | (1,129 | ) | ||||||
Cash and cash equivalents | (27,454 | ) | (26,723 | ) | (25,252 | ) | ||||||
|
|
|
|
|
|
| ||||||
Net debt (a) | 31,321 | 31,011 | 26,989 | |||||||||
|
|
|
|
|
|
| ||||||
Shareholders’ equity – Group share | 114,994 | 116,862 | 118,193 | |||||||||
Non-controlling interests | 2,319 | 2,362 | 2,430 | |||||||||
|
|
|
|
|
|
| ||||||
Shareholders’ equity (b) | 117,313 | 119,224 | 120,623 | |||||||||
|
|
|
|
|
|
| ||||||
Net-debt-to-capital ratio = a/(a+b) | 21.1 | % | 20.6 | % | 18.3 | % | ||||||
|
|
|
|
|
|
| ||||||
Net-debt-to-capital ratio excluding leases | 17.2 | % | 16.7 | % | 17.3 | % |
* | Thenet-debt-to-capital ratio on September 30, 2019 and June 30, 2019 include the impact of the new IFRS 16 rule, effective January 1, 2019. |
RETURN ON AVERAGE CAPITAL EMPLOYED
• | Twelve months ended September 30, 2019 |
in millions of dollars | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
Adjusted net operating income | 7,454 | 2,271 | 3,323 | 1,512 | ||||||||||||
Capital employed at 09/30/2018* | 92,104 | 36,587 | 12,884 | 6,841 | ||||||||||||
Capital employed at 09/30/2019* | 88,560 | 41,516 | 11,658 | 7,570 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
ROACE | 8.3 | % | 5.8 | % | 27.1 | % | 21.0 | % |
• | Twelve months ended June 30, 2019 |
in millions of dollars | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
Adjusted net operating income | 8,159 | 2,394 | 3,309 | 1,573 | ||||||||||||
Capital employed at 06/30/2018* | 92,296 | 30,861 | 12,939 | 7,040 | ||||||||||||
Capital employed at 06/30/2019* | 90,633 | 37,290 | 12,300 | 8,535 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
ROACE | 8.9 | % | 7.0 | % | 26.2 | % | 20.2 | % |
* | At replacement cost (excludingafter-tax inventory effect). |
14
MAIN INDICATORS
$/€ | Brent ($/b) | Average liquids price* ($/b) | Average gas price* ($/Mbtu) | Variable cost margin, European refining** ($/t) | ||||||||||||||||
Third quarter 2019 | 1.11 | 62.0 | 58.0 | 3.48 | 47.4 | |||||||||||||||
Second quarter 2019 | 1.12 | 68.9 | 63.7 | 3.82 | 27.6 | |||||||||||||||
First quarter 2019 | 1.14 | 63.1 | 58.7 | 4.51 | 33.0 | |||||||||||||||
Fourth quarter 2018 | 1.14 | 68.8 | 59.2 | 5.01 | 40.8 | |||||||||||||||
Third quarter 2018 | 1.16 | 75.2 | 68.8 | 5.06 | 47.2 |
* | Sales in $ / sales in volume for consolidated subsidiaries (excluding stock value variation). |
** | This indicator represents the average margin on variable costs realized by TOTAL’s European refining business (equal to the difference between the sales of refined products realized by TOTAL’s European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons). |
Disclaimer: data is based onTOTAL’s reporting and is not audited. To the extent permitted by law, TOTAL S.A. disclaims all liability from the use of the restated main indicators.
15
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
3rd quarter | 2nd quarter | 3rd quarter | ||||||||||
(M$)(a) | 2019 | 2019 | 2018 | |||||||||
Sales | 48,589 | 51,242 | 54,717 | |||||||||
Excise taxes | (6,051 | ) | (6,040 | ) | (6,317 | ) | ||||||
Revenues from sales | 42,538 | 45,202 | 48,400 | |||||||||
Purchases, net of inventory variation | (27,898 | ) | (30,390 | ) | (32,351 | ) | ||||||
Other operating expenses | (6,362 | ) | (7,078 | ) | (6,873 | ) | ||||||
Exploration costs | (96 | ) | (170 | ) | (234 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (4,173 | ) | (3,661 | ) | (3,279 | ) | ||||||
Other income | 167 | 321 | 581 | |||||||||
Other expense | (559 | ) | (189 | ) | (355 | ) | ||||||
Financial interest on debt | (598 | ) | (568 | ) | (536 | ) | ||||||
Financial income and expense from cash & cash equivalents | — | (42 | ) | (63 | ) | |||||||
Cost of net debt | (598 | ) | (610 | ) | (599 | ) | ||||||
Other financial income | 163 | 326 | 290 | |||||||||
Other financial expense | (178 | ) | (188 | ) | (171 | ) | ||||||
Net income (loss) from equity affiliates | 1,381 | 812 | 918 | |||||||||
Income taxes | (1,540 | ) | (1,571 | ) | (2,240 | ) | ||||||
|
|
| �� |
|
|
| ||||||
Consolidated net income | 2,845 | 2,804 | 4,087 | |||||||||
|
|
|
|
|
|
| ||||||
Group share | 2,800 | 2,756 | 3,957 | |||||||||
Non-controlling interests | 45 | 48 | 130 | |||||||||
|
|
|
|
|
|
| ||||||
Earnings per share ($) | 1.05 | 1.01 | 1.48 | |||||||||
|
|
|
|
|
|
| ||||||
Fully-diluted earnings per share ($) | 1.04 | 1.00 | 1.47 | |||||||||
|
|
|
|
|
|
|
(a) Except for per share amounts.
16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
3rd quarter | 2nd quarter | 3rd quarter | ||||||||||
(M$) | 2019 | 2019 | 2018 | |||||||||
Consolidated net income | 2,845 | 2,804 | 4,087 | |||||||||
|
|
|
|
|
|
| ||||||
Other comprehensive income | ||||||||||||
Actuarial gains and losses | 5 | (223 | ) | 33 | ||||||||
Change in fair value of investments in equity instruments | 19 | 74 | (2 | ) | ||||||||
Tax effect | (1 | ) | 59 | (13 | ) | |||||||
Currency translation adjustment generated by the parent company | (3,520 | ) | 1,057 | (511 | ) | |||||||
|
|
|
|
|
|
| ||||||
Items not potentially reclassifiable to profit and loss | (3,497 | ) | 967 | (493 | ) | |||||||
|
|
|
|
|
|
| ||||||
Currency translation adjustment | 1,207 | (619 | ) | 93 | ||||||||
Cash flow hedge | (202 | ) | (246 | ) | 55 | |||||||
Variation of foreign currency basis spread | (4 | ) | 43 | (39 | ) | |||||||
Share of other comprehensive income of equity affiliates, net amount | 73 | (135 | ) | (142 | ) | |||||||
Other | (6 | ) | 1 | (2 | ) | |||||||
Tax effect | 69 | 69 | (9 | ) | ||||||||
|
|
|
|
|
|
| ||||||
Items potentially reclassifiable to profit and loss | 1,137 | (887 | ) | (44 | ) | |||||||
|
|
|
|
|
|
| ||||||
Total other comprehensive income (net amount) | (2,360 | ) | 80 | (537 | ) | |||||||
|
|
|
|
|
|
| ||||||
Comprehensive income | 485 | 2,884 | 3,550 | |||||||||
|
|
|
|
|
|
| ||||||
Group share | 462 | 2,797 | 3,436 | |||||||||
Non-controlling interests | 23 | 87 | 114 |
17
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
9 months | 9 months | |||||||
(M$)(a) | 2019 | 2018 | ||||||
Sales | 151,036 | 156,868 | ||||||
Excise taxes | (18,172 | ) | (19,074 | ) | ||||
Revenues from sales | 132,864 | 137,794 | ||||||
Purchases, net of inventory variation | (88,009 | ) | (92,396 | ) | ||||
Other operating expenses | (20,165 | ) | (20,571 | ) | ||||
Exploration costs | (554 | ) | (596 | ) | ||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (11,300 | ) | (9,630 | ) | ||||
Other income | 735 | 1,356 | ||||||
Other expense | (957 | ) | (958 | ) | ||||
Financial interest on debt | (1,727 | ) | (1,404 | ) | ||||
Financial income and expense from cash & cash equivalents | (70 | ) | (158 | ) | ||||
Cost of net debt | (1,797 | ) | (1,562 | ) | ||||
Other financial income | 649 | 851 | ||||||
Other financial expense | (561 | ) | (500 | ) | ||||
Net income (loss) from equity affiliates | 2,904 | 2,505 | ||||||
Income taxes | (5,020 | ) | (5,923 | ) | ||||
|
|
|
|
| ||||
Consolidated net income | 8,789 | 10,370 | ||||||
|
|
|
|
| ||||
Group share | 8,667 | 10,314 | ||||||
Non-controlling interests | 122 | 56 | ||||||
|
|
|
|
| ||||
Earnings per share ($) | 3.22 | 3.87 | ||||||
|
|
|
|
| ||||
Fully-diluted earnings per share ($) | 3.20 | 3.85 | ||||||
|
|
|
|
|
(a) Except for per share amounts.
18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
9 months | 9 months | |||||||
(M$) | 2019 | 2018 | ||||||
Consolidated net income | 8,789 | 10,370 | ||||||
|
|
|
|
| ||||
Other comprehensive income | ||||||||
Actuarial gains and losses | (54 | ) | 100 | |||||
Change in fair value of investments in equity instruments | 126 | 3 | ||||||
Tax effect | 13 | (31 | ) | |||||
Currency translation adjustment generated by the parent company | (3,994 | ) | (3,141 | ) | ||||
|
|
|
|
| ||||
Items not potentially reclassifiable to profit and loss | (3,909 | ) | (3,069 | ) | ||||
|
|
|
|
| ||||
Currency translation adjustment | 1,394 | 1,061 | ||||||
Cash flow hedge | (575 | ) | 310 | |||||
Variation of foreign currency basis spread | 50 | (66 | ) | |||||
Share of other comprehensive income of equity affiliates, net amount | 326 | (274 | ) | |||||
Other | (4 | ) | (4 | ) | ||||
Tax effect | 176 | (84 | ) | |||||
|
|
|
|
| ||||
Items potentially reclassifiable to profit and loss | 1,367 | 943 | ||||||
|
|
|
|
| ||||
Total other comprehensive income (net amount) | (2,542 | ) | (2,126 | ) | ||||
|
|
|
|
| ||||
Comprehensive income | 6,247 | 8,244 | ||||||
|
|
|
|
| ||||
Group share | 6,099 | 8,242 | ||||||
Non-controlling interests | 148 | 2 |
19
CONSOLIDATED BALANCE SHEET
TOTAL
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||
(M$) | (unaudited) | (unaudited) |
| (unaudited) | ||||||||||||
ASSETS | ||||||||||||||||
Non-current assets | ||||||||||||||||
Intangible assets, net | 31,539 | 29,229 | 28,922 | 27,356 | ||||||||||||
Property, plant and equipment, net | 116,900 | 118,063 | 113,324 | 115,136 | ||||||||||||
Equity affiliates: investments and loans | 27,172 | 26,473 | 23,444 | 23,402 | ||||||||||||
Other investments | 1,738 | 1,660 | 1,421 | 1,602 | ||||||||||||
Non-current financial assets | 767 | 771 | 680 | 1,129 | ||||||||||||
Deferred income taxes | 5,689 | 6,022 | 6,663 | 5,186 | ||||||||||||
Othernon-current assets | 2,264 | 2,306 | 2,509 | 3,167 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Totalnon-current assets | 186,069 | 184,524 | 176,963 | 176,978 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Current assets | ||||||||||||||||
Inventories, net | 16,226 | 16,410 | 14,880 | 19,689 | ||||||||||||
Accounts receivable, net | 18,568 | 20,349 | 17,270 | 20,010 | ||||||||||||
Other current assets | 14,925 | 15,958 | 14,724 | 18,613 | ||||||||||||
Current financial assets | 3,781 | 3,536 | 3,654 | 3,553 | ||||||||||||
Cash and cash equivalents | 27,454 | 26,723 | 27,907 | 25,252 | ||||||||||||
Assets classified as held for sale | 418 | — | 1,364 | 207 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total current assets | 81,372 | 82,976 | 79,799 | 87,324 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total assets | 267,441 | 267,500 | 256,762 | 264,302 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||||||
Shareholders’ equity | ||||||||||||||||
Common shares | 8,300 | 8,301 | 8,227 | 8,304 | ||||||||||||
Paid-in surplus and retained earnings | 123,805 | 123,351 | 120,569 | 123,167 | ||||||||||||
Currency translation adjustment | (13,297 | ) | (11,177 | ) | (11,313 | ) | (10,321 | ) | ||||||||
Treasury shares | (3,814 | ) | (3,613 | ) | (1,843 | ) | (2,957 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total shareholders’ equity - Group share | 114,994 | 116,862 | 115,640 | 118,193 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Non-controlling interests | 2,319 | 2,362 | 2,474 | 2,430 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total shareholders’ equity | 117,313 | 119,224 | 118,114 | 120,623 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Non-current liabilities | ||||||||||||||||
Deferred income taxes | 11,333 | 11,486 | 11,490 | 12,138 | ||||||||||||
Employee benefits | 3,273 | 3,375 | 3,363 | 3,308 | ||||||||||||
Provisions and othernon-current liabilities | 20,903 | 21,629 | 21,432 | 18,740 | ||||||||||||
Non-current financial debt | 47,923 | 45,394 | 40,129 | 41,088 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Totalnon-current liabilities | 83,432 | 81,884 | 76,414 | 75,274 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Current liabilities | ||||||||||||||||
Accounts payable | 26,237 | 27,059 | 26,134 | 28,100 | ||||||||||||
Other creditors and accrued liabilities | 24,728 | 22,686 | 22,246 | 24,429 | ||||||||||||
Current borrowings | 14,631 | 16,221 | 13,306 | 15,180 | ||||||||||||
Other current financial liabilities | 769 | 426 | 478 | 669 | ||||||||||||
Liabilities directly associated with the assets classified as held for sale | 331 | — | 70 | 27 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total current liabilities | 66,696 | 66,392 | 62,234 | 68,405 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total liabilities & shareholders’ equity | 267,441 | 267,500 | 256,762 | 264,302 | ||||||||||||
|
|
|
|
|
|
|
|
|
20
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) | 3rd quarter 2019 | 2nd quarter 2019 | 3rd quarter 2018 | |||||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | 2,845 | 2,804 | 4,087 | |||||||||
Depreciation, depletion, amortization and impairment | 4,242 | 3,819 | 3,477 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes | 235 | 239 | 320 | |||||||||
(Gains) losses on disposals of assets | (74 | ) | (191 | ) | (267 | ) | ||||||
Undistributed affiliates’ equity earnings | (876 | ) | (168 | ) | (416 | ) | ||||||
(Increase) decrease in working capital | 1,523 | (317 | ) | (1,578 | ) | |||||||
Other changes, net | 311 | 65 | 113 | |||||||||
|
|
|
|
|
|
| ||||||
Cash flow from operating activities | 8,206 | 6,251 | 5,736 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||||||
Intangible assets and property, plant and equipment additions | (2,210 | ) | (2,881 | ) | (3,352 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired | (4,385 | ) | (208 | ) | (2,714 | ) | ||||||
Investments in equity affiliates and other securities | (258 | ) | (437 | ) | (271 | ) | ||||||
Increase innon-current loans | (242 | ) | (370 | ) | (147 | ) | ||||||
|
|
|
|
|
|
| ||||||
Total expenditures | (7,095 | ) | (3,896 | ) | (6,484 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment | 63 | 155 | 113 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold | (1 | ) | (1 | ) | (11 | ) | ||||||
Proceeds from disposals ofnon-current investments | 40 | 58 | 107 | |||||||||
Repayment ofnon-current loans | 162 | 353 | 688 | |||||||||
|
|
|
|
|
|
| ||||||
Total divestments | 264 | 565 | 897 | |||||||||
|
|
|
|
|
|
| ||||||
Cash flow used in investing activities | (6,831 | ) | (3,331 | ) | (5,587 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||||||
Issuance (repayment) of shares: | ||||||||||||
• Parent company shareholders | 1 | 449 | 16 | |||||||||
• Treasury shares | (420 | ) | (1,279 | ) | (844 | ) | ||||||
Dividends paid: | ||||||||||||
• Parent company shareholders | — | (2,935 | ) | — | ||||||||
• Non-controlling interests | (21 | ) | (93 | ) | (9 | ) | ||||||
Net issuance (repayment) of perpetual subordinated notes | — | — | — | |||||||||
Payments on perpetual subordinated notes | — | (175 | ) | — | ||||||||
Other transactions withnon-controlling interests | — | — | (621 | ) | ||||||||
Net issuance (repayment) ofnon-current debt | 4,466 | 2,331 | 2,146 | |||||||||
Increase (decrease) in current borrowings | (3,209 | ) | 37 | (1,965 | ) | |||||||
Increase (decrease) in current financial assets and liabilities | (310 | ) | (164 | ) | 69 | |||||||
Cash flow from (used in) financing activities | 507 | (1,829 | ) | (1,208 | ) | |||||||
|
|
|
|
|
|
| ||||||
Net increase (decrease) in cash and cash equivalents | 1,882 | 1,091 | (1,059 | ) | ||||||||
|
|
|
|
|
|
| ||||||
Effect of exchange rates | (1,151 | ) | 200 | (164 | ) | |||||||
Cash and cash equivalents at the beginning of the period | 26,723 | 25,432 | 26,475 | |||||||||
|
|
|
|
|
|
| ||||||
Cash and cash equivalents at the end of the period | 27,454 | 26,723 | 25,252 | |||||||||
|
|
|
|
|
|
|
21
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) | 9 months 2019 | 9 months 2018 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Consolidated net income | 8,789 | 10,370 | ||||||
Depreciation, depletion, amortization and impairment | 11,777 | 10,031 | ||||||
Non-current liabilities, valuation allowances and deferred taxes | 614 | 469 | ||||||
(Gains) losses on disposals of assets | (438 | ) | (540 | ) | ||||
Undistributed affiliates’ equity earnings | (1,350 | ) | (973 | ) | ||||
(Increase) decrease in working capital | (1,764 | ) | (5,656 | ) | ||||
Other changes, net | 458 | 362 | ||||||
|
|
|
|
| ||||
Cash flow from operating activities | 18,086 | 14,063 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||
Intangible assets and property, plant and equipment additions | (7,795 | ) | (12,530 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired | (4,593 | ) | (3,428 | ) | ||||
Investments in equity affiliates and other securities | (1,448 | ) | (579 | ) | ||||
Increase innon-current loans | (742 | ) | (458 | ) | ||||
|
|
|
|
| ||||
Total expenditures | (14,578 | ) | (16,995 | ) | ||||
Proceeds from disposals of intangible assets and property, plant and equipment | 226 | 2,395 | ||||||
Proceeds from disposals of subsidiaries, net of cash sold | 145 | (15 | ) | |||||
Proceeds from disposals ofnon-current investments | 306 | 691 | ||||||
Repayment ofnon-current loans | 649 | 1,685 | ||||||
|
|
|
|
| ||||
Total divestments | 1,326 | 4,756 | ||||||
|
|
|
|
| ||||
Cash flow used in investing activities | (13,252 | ) | (12,239 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||
Issuance (repayment) of shares: | ||||||||
• Parent company shareholders | 451 | 498 | ||||||
• Treasury shares | (2,190 | ) | (2,584 | ) | ||||
Dividends paid: | ||||||||
• Parent company shareholders | (4,765 | ) | (4,208 | ) | ||||
• Non-controlling interests | (114 | ) | (93 | ) | ||||
Net issuance (repayment) of perpetual subordinated notes | — | — | ||||||
Payments on perpetual subordinated notes | (315 | ) | (266 | ) | ||||
Other transactions withnon-controlling interests | (150 | ) | (621 | ) | ||||
Net issuance (repayment) ofnon-current debt | 8,047 | (282 | ) | |||||
Increase (decrease) in current borrowings | (4,698 | ) | (996 | ) | ||||
Increase (decrease) in current financial assets and liabilities | (368 | ) | (555 | ) | ||||
Cash flow from (used in) financing activities | (4,102 | ) | (9,107 | ) | ||||
|
|
|
|
| ||||
Net increase (decrease) in cash and cash equivalents | 732 | (7,283 | ) | |||||
|
|
|
|
| ||||
Effect of exchange rates | (1,185 | ) | (650 | ) | ||||
Cash and cash equivalents at the beginning of the period | 27,907 | 33,185 | ||||||
|
|
|
|
| ||||
Cash and cash equivalents at the end of the period | 27,454 | 25,252 | ||||||
|
|
|
|
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22
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
(unaudited)
Common shares issued | Paid-in surplus and retained earnings | Currency translation adjustment | Treasury shares | Shareholders’ equity - Group Share | Non-controlling interests | Total shareholders’ equity | ||||||||||||||||||||||||||||||
(M$) | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||
As of January 1, 2018 | 2,528,989,616 | 7,882 | 112,040 | (7,908 | ) | (8,376,756 | ) | (458 | ) | 111,556 | 2,481 | 114,037 | ||||||||||||||||||||||||
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Net income of the first nine months 2018 | — | — | 10,314 | — | — | — | 10,314 | 56 | 10,370 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 341 | (2,413 | ) | — | — | (2,072 | ) | (54 | ) | (2,126 | ) | |||||||||||||||||||||||
Comprehensive Income | — | — | 10,655 | (2,413 | ) | — | — | 8,242 | 2 | 8,244 | ||||||||||||||||||||||||||
Dividend | — | — | (6,078 | ) | — | — | — | (6,078 | ) | (93 | ) | (6,171 | ) | |||||||||||||||||||||||
Issuance of common shares | 137,393,893 | 422 | 7,265 | — | — | — | 7,687 | — | 7,687 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (45,047,172 | ) | (2,740 | ) | (2,740 | ) | — | (2,740 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | — | — | (241 | ) | — | 4,079,257 | 241 | — | — | — | ||||||||||||||||||||||||||
Share-based payments | — | — | 246 | — | — | — | 246 | — | 246 | |||||||||||||||||||||||||||
Share cancellation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (239 | ) | — | — | — | (239 | ) | — | (239 | ) | ||||||||||||||||||||||||
Other operations withnon-controlling interests | — | — | (455 | ) | — | — | — | (455 | ) | (57 | ) | (512 | ) | |||||||||||||||||||||||
Other items | — | — | (26 | ) | — | — | — | (26 | ) | 97 | 71 | |||||||||||||||||||||||||
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As of September 30, 2018 | 2,666,383,509 | 8,304 | 123,167 | (10,321 | ) | (49,344,671 | ) | (2,957 | ) | 118,193 | 2,430 | 120,623 | ||||||||||||||||||||||||
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Net income of the fourth quarter 2018 | — | — | 1,132 | — | — | — | 1,132 | 48 | 1,180 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | (361 | ) | (992 | ) | — | — | (1,353 | ) | (15 | ) | (1,368 | ) | ||||||||||||||||||||||
Comprehensive Income | — | — | 771 | (992 | ) | — | — | (221 | ) | 33 | (188 | ) | ||||||||||||||||||||||||
Dividend | — | — | (1,803 | ) | — | — | — | (1,803 | ) | (4 | ) | (1,807 | ) | |||||||||||||||||||||||
Issuance of common shares | 18,809,197 | 54 | 1,101 | — | — | — | 1,155 | — | 1,155 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (27,719,309 | ) | (1,588 | ) | (1,588 | ) | — | (1,588 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | — | — | 1 | — | — | (1 | ) | — | — | — | ||||||||||||||||||||||||||
Share-based payments | — | — | 48 | — | — | — | 48 | — | 48 | |||||||||||||||||||||||||||
Share cancellation | (44,590,699 | ) | (131 | ) | (2,572 | ) | — | 44,590,699 | 2,703 | — | — | — | ||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (76 | ) | — | — | — | (76 | ) | — | (76 | ) | ||||||||||||||||||||||||
Other operations withnon-controlling interests | — | — | (62 | ) | — | — | — | (62 | ) | (42 | ) | (104 | ) | |||||||||||||||||||||||
Other items | — | — | (6 | ) | — | — | — | (6 | ) | 57 | 51 | |||||||||||||||||||||||||
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As of December 31, 2018 | 2,640,602,007 | 8,227 | 120,569 | (11,313 | ) | (32,473,281 | ) | (1,843 | ) | 115,640 | 2,474 | 118,114 | ||||||||||||||||||||||||
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Net income of the first nine months 2019 | — | — | 8,667 | — | — | — | 8,667 | 122 | 8,789 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | (584 | ) | (1,984 | ) | — | — | (2,568 | ) | 26 | (2,542 | ) | |||||||||||||||||||||||
Comprehensive income | — | — | 8,083 | (1,984 | ) | — | — | 6,099 | 148 | 6,247 | ||||||||||||||||||||||||||
Dividend | — | — | (5,781 | ) | — | — | — | (5,781 | ) | (114 | ) | (5,895 | ) | |||||||||||||||||||||||
Issuance of common shares | 26,388,503 | 73 | 1,269 | — | — | — | 1,342 | — | 1,342 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | (40,871,207 | ) | (2,189 | ) | (2,189 | ) | — | (2,189 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | — | — | (218 | ) | — | 4,278,158 | 218 | — | — | — | ||||||||||||||||||||||||||
Share-based payments | — | — | 157 | — | — | — | 157 | — | 157 | |||||||||||||||||||||||||||
Share cancellation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | — | — | (4 | ) | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (280 | ) | — | — | — | (280 | ) | — | (280 | ) | ||||||||||||||||||||||||
Other operations withnon-controlling interests | — | — | — | — | — | — | — | (150 | ) | (150 | ) | |||||||||||||||||||||||||
Other items | — | — | 10 | — | — | — | 10 | (39 | ) | (29 | ) | |||||||||||||||||||||||||
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As of September 30, 2019 | 2,666,990,510 | 8,300 | 123,805 | (13,297 | ) | (69,066,330 | ) | (3,814 | ) | 114,994 | 2,319 | 117,313 | ||||||||||||||||||||||||
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(a)Treasury shares related to the restricted stock grants.
23
INFORMATIONS BY BUSINESS SEGMENT
TOTAL
(unaudited)
3rd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,631 | 3,667 | 21,338 | 21,951 | 2 | — | 48,589 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (713 | ) | (5,338 | ) | — | — | (6,051 | ) | ||||||||||||||||||
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Revenues from sales | 9,392 | 4,240 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,538 | ||||||||||||||||||||
Operating expenses | (3,999 | ) | (3,558 | ) | (27,518 | ) | (15,963 | ) | (163 | ) | 16,845 | (34,356 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,136 | ) | (361 | ) | (413 | ) | (247 | ) | (16 | ) | — | (4,173 | ) | |||||||||||||||
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Operating income | 2,257 | 321 | 1,035 | 558 | (162 | ) | — | 4,009 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 77 | 898 | 5 | (15 | ) | 9 | — | 974 | ||||||||||||||||||||
Tax on net operating income | (1,094 | ) | (222 | ) | (221 | ) | (164 | ) | 70 | — | (1,631 | ) | ||||||||||||||||
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Net operating income | 1,240 | 997 | 819 | 379 | (83 | ) | — | 3,352 | ||||||||||||||||||||
Net cost of net debt | (507 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (45 | ) | ||||||||||||||||||||||||||
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Net income - group share | 2,800 | |||||||||||||||||||||||||||
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3rd quarter 2019 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | 12 | — | — | — | — | 12 | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
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Revenues from sales | — | 12 | — | — | — | — | 12 | |||||||||||||||||||||
Operating expenses | (100 | ) | (41 | ) | (96 | ) | 22 | — | — | (215 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (153 | ) | (9 | ) | (22 | ) | (2 | ) | — | — | (186 | ) | ||||||||||||||||
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Operating income(b) | (253 | ) | (38 | ) | (118 | ) | 20 | — | — | (389 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 599 | (23 | ) | (53 | ) | — | — | 433 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (138 | ) | 8 | (1 | ) | — | — | (282 | ) | |||||||||||||||||
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Net operating income(b) | �� | (494 | ) | 423 | (133 | ) | (34 | ) | — | — | (238 | ) | ||||||||||||||||
Net cost of net debt | (4 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 25 | |||||||||||||||||||||||||||
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Net income - group share | (217 | ) | ||||||||||||||||||||||||||
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(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
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• On operating income | — | — | (94 | ) | 25 | — | ||||||||||||||||||||||
• On net operating income | — | — | (90 | ) | 19 | — | ||||||||||||||||||||||
3rd quarter 2019 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,631 | 3,655 | 21,338 | 21,951 | 2 | — | 48,577 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (713 | ) | (5,338 | ) | — | — | (6,051 | ) | ||||||||||||||||||
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Revenues from sales | 9,392 | 4,228 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,526 | ||||||||||||||||||||
Operating expenses | (3,899 | ) | (3,517 | ) | (27,422 | ) | (15,985 | ) | (163 | ) | 16,845 | (34,141 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,983 | ) | (352 | ) | (391 | ) | (245 | ) | (16 | ) | — | (3,987 | ) | |||||||||||||||
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Adjusted operating income | 2,510 | 359 | 1,153 | 538 | (162 | ) | — | 4,398 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 167 | 299 | 28 | 38 | 9 | — | 541 | |||||||||||||||||||||
Tax on net operating income | (943 | ) | (84 | ) | (229 | ) | (163 | ) | 70 | — | (1,349 | ) | ||||||||||||||||
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Adjusted net operating income | 1,734 | 574 | 952 | 413 | (83 | ) | — | 3,590 | ||||||||||||||||||||
Net cost of net debt | (503 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (70 | ) | ||||||||||||||||||||||||||
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Adjusted net income - group share | 3,017 | |||||||||||||||||||||||||||
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3rd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 2,077 | 4,331 | 386 | 276 | 25 | 7,095 | ||||||||||||||||||||||
Total divestments | 23 | 192 | 14 | 30 | 5 | 264 | ||||||||||||||||||||||
Cash flow from operating activities | 5,007 | 401 | 1,575 | 1,483 | (260 | ) | 8,206 |
24
INFORMATIONS BY BUSINESS SEGMENT
TOTAL
(unaudited)
2nd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,273 | 3,789 | 22,509 | 22,671 | — | — | 51,242 | |||||||||||||||||||||
Intersegment sales | 7,586 | 632 | 8,293 | 139 | 36 | (16,686 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (761 | ) | (5,279 | ) | — | — | (6,040 | ) | ||||||||||||||||||
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Revenues from sales | 9,859 | 4,421 | 30,041 | 17,531 | 36 | (16,686 | ) | 45,202 | ||||||||||||||||||||
Operating expenses | (4,205 | ) | (3,878 | ) | (29,168 | ) | (16,844 | ) | (229 | ) | 16,686 | (37,638 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,687 | ) | (328 | ) | (389 | ) | (237 | ) | (20 | ) | — | (3,661 | ) | |||||||||||||||
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Operating income | 2,967 | 215 | 484 | 450 | (213 | ) | — | 3,903 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 173 | 661 | 111 | 111 | 26 | — | 1,082 | |||||||||||||||||||||
Tax on net operating income | (1,161 | ) | (450 | ) | 46 | (170 | ) | 64 | — | (1,671 | ) | |||||||||||||||||
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Net operating income | 1,979 | 426 | 641 | 391 | (123 | ) | — | 3,314 | ||||||||||||||||||||
Net cost of net debt | (510 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (48 | ) | ||||||||||||||||||||||||||
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Net income - group share | 2,756 | |||||||||||||||||||||||||||
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2nd quarter 2019 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (59 | ) | — | — | — | — | (59 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
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Revenues from sales | — | (59 | ) | — | — | — | — | (59 | ) | |||||||||||||||||||
Operating expenses | — | (54 | ) | (43 | ) | (34 | ) | — | — | (131 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (43 | ) | (11 | ) | (10 | ) | — | — | — | (64 | ) | |||||||||||||||||
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Operating income(b) | (43 | ) | (124 | ) | (53 | ) | (34 | ) | — | — | (254 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | — | 407 | (49 | ) | (7 | ) | — | — | 351 | |||||||||||||||||||
Tax on net operating income | — | (286 | ) | 28 | 9 | — | — | (249 | ) | |||||||||||||||||||
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Net operating income(b) | (43 | ) | (3 | ) | (74 | ) | (32 | ) | — | — | (152 | ) | ||||||||||||||||
Net cost of net debt | (4 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 25 | |||||||||||||||||||||||||||
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Net income - group share | (131 | ) | ||||||||||||||||||||||||||
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(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
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• On operating income | — | — | (6 | ) | (34 | ) | — | |||||||||||||||||||||
• On net operating income | — | — | (1 | ) | (25 | ) | — | |||||||||||||||||||||
2nd quarter 2019 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,273 | 3,848 | 22,509 | 22,671 | — | — | 51,301 | |||||||||||||||||||||
Intersegment sales | 7,586 | 632 | 8,293 | 139 | 36 | (16,686 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (761 | ) | (5,279 | ) | — | — | (6,040 | ) | ||||||||||||||||||
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Revenues from sales | 9,859 | 4,480 | 30,041 | 17,531 | 36 | (16,686 | ) | 45,261 | ||||||||||||||||||||
Operating expenses | (4,205 | ) | (3,824 | ) | (29,125 | ) | (16,810 | ) | (229 | ) | 16,686 | (37,507 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,644 | ) | (317 | ) | (379 | ) | (237 | ) | (20 | ) | — | (3,597 | ) | |||||||||||||||
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Adjusted operating income | 3,010 | 339 | 537 | 484 | (213 | ) | — | 4,157 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 173 | 254 | 160 | 118 | 26 | — | 731 | |||||||||||||||||||||
Tax on net operating income | (1,161 | ) | (164 | ) | 18 | (179 | ) | 64 | — | (1,422 | ) | |||||||||||||||||
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Adjusted net operating income | 2,022 | 429 | 715 | 423 | (123 | ) | — | 3,466 | ||||||||||||||||||||
Net cost of net debt | (506 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (73 | ) | ||||||||||||||||||||||||||
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Adjusted net income - group share | 2,887 | |||||||||||||||||||||||||||
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2nd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 2,257 | 857 | 363 | 383 | 36 | 3,896 | ||||||||||||||||||||||
Total divestments | 60 | 349 | 70 | 85 | 1 | 565 | ||||||||||||||||||||||
Cash flow from operating activities | 3,768 | 641 | 1,658 | 611 | (427 | ) | 6,251 |
25
INFORMATIONS BY BUSINESS SEGMENT
TOTAL
(unaudited)
3rd quarter 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,433 | 5,568 | 23,572 | 23,144 | — | — | 54,717 | |||||||||||||||||||||
Intersegment sales | 8,255 | 575 | 9,280 | 242 | 12 | (18,364 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (823 | ) | (5,494 | ) | — | — | (6,317 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 10,688 | 6,143 | 32,029 | 17,892 | 12 | (18,364 | ) | 48,400 | ||||||||||||||||||||
Operating expenses | (4,271 | ) | (5,660 | ) | (30,593 | ) | (17,147 | ) | (151 | ) | 18,364 | (39,458 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,585 | ) | (213 | ) | (294 | ) | (176 | ) | (11 | ) | — | (3,279 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 3,832 | 270 | 1,142 | 569 | (150 | ) | — | 5,663 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 449 | 445 | 221 | 109 | 39 | — | 1,263 | |||||||||||||||||||||
Tax on net operating income | (1,853 | ) | (155 | ) | (292 | ) | (166 | ) | 146 | — | (2,320 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 2,428 | 560 | 1,071 | 512 | 35 | — | 4,606 | |||||||||||||||||||||
Net cost of net debt | (519 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (130 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 3,957 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
3rd quarter 2018 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating expenses | (50 | ) | (64 | ) | 176 | 47 | — | — | 109 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (65 | ) | (39 | ) | — | — | — | — | (104 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income(b) | (115 | ) | (103 | ) | 176 | 47 | — | — | 5 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 39 | (25 | ) | 9 | — | — | — | 23 | ||||||||||||||||||||
Tax on net operating income | 65 | (9 | ) | (52 | ) | (9 | ) | — | — | (5 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income(b) | (11 | ) | (137 | ) | 133 | 38 | — | — | 23 | |||||||||||||||||||
Net cost of net debt | (44 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 20 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | (1 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||||||
• On operating income | — | — | 179 | 47 | — | |||||||||||||||||||||||
• On net operating income | — | — | 135 | 38 | — | |||||||||||||||||||||||
3rd quarter 2018 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,433 | 5,568 | 23,572 | 23,144 | — | — | 54,717 | |||||||||||||||||||||
Intersegment sales | 8,255 | 575 | 9,280 | 242 | 12 | (18,364 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (823 | ) | (5,494 | ) | — | — | (6,317 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 10,688 | 6,143 | 32,029 | 17,892 | 12 | (18,364 | ) | 48,400 | ||||||||||||||||||||
Operating expenses | (4,221 | ) | (5,596 | ) | (30,769 | ) | (17,194 | ) | (151 | ) | 18,364 | (39,567 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,520 | ) | (174 | ) | (294 | ) | (176 | ) | (11 | ) | — | (3,175 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted operating income | 3,947 | 373 | 966 | 522 | (150 | ) | — | 5,658 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 410 | 470 | 212 | 109 | 39 | — | 1,240 | |||||||||||||||||||||
Tax on net operating income | (1,918 | ) | (146 | ) | (240 | ) | (157 | ) | 146 | — | (2,315 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted net operating income | 2,439 | 697 | 938 | 474 | 35 | — | 4,583 | |||||||||||||||||||||
Net cost of net debt | (475 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (150 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Adjusted net income - group share | 3,958 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
3rd quarter 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 2,472 | 3,325 | 377 | 293 | 17 | 6,484 | ||||||||||||||||||||||
Total divestments | 494 | 198 | 88 | 117 | — | 897 | ||||||||||||||||||||||
Cash flow from operating activities | 4,431 | (164 | ) | 1,338 | 752 | (621 | ) | 5,736 |
26
INFORMATIONS BY BUSINESS SEGMENT
TOTAL
(unaudited)
9months 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,698 | 13,875 | 65,558 | 65,901 | 4 | — | 151,036 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,250 | ) | (15,922 | ) | — | — | (18,172 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 28,761 | 15,707 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,864 | ||||||||||||||||||||
Operating expenses | (12,233 | ) | (13,845 | ) | (84,020 | ) | (48,141 | ) | (569 | ) | 50,080 | (108,728 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,352 | ) | (1,004 | ) | (1,176 | ) | (717 | ) | (51 | ) | — | (11,300 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 8,176 | 858 | 2,763 | 1,577 | (538 | ) | — | 12,836 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 444 | 1,939 | 265 | 86 | 36 | — | 2,770 | |||||||||||||||||||||
Tax on net operating income | (3,679 | ) | (845 | ) | (467 | ) | (498 | ) | 194 | — | (5,295 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 4,941 | 1,952 | 2,561 | 1,165 | (308 | ) | — | 10,311 | ||||||||||||||||||||
Net cost of net debt | (1,522 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (122 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 8,667 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
9months 2019 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (74 | ) | — | — | — | — | (74 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | — | (74 | ) | — | — | — | — | (74 | ) | |||||||||||||||||||
Operating expenses | (100 | ) | (153 | ) | 353 | 62 | — | — | 162 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (196 | ) | (20 | ) | (32 | ) | (2 | ) | — | — | (250 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income(b) | (296 | ) | (247 | ) | 321 | 60 | — | — | (162 | ) | ||||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 1,012 | (70 | ) | (60 | ) | — | — | 792 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (408 | ) | (113 | ) | (14 | ) | — | — | (686 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income(b) | (537 | ) | 357 | 138 | (14 | ) | — | — | (56 | ) | ||||||||||||||||||
Net cost of net debt | (12 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 72 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 4 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||||||
• On operating income | — | — | 392 | 65 | — | |||||||||||||||||||||||
• On net operating income | — | — | 254 | 46 | — | |||||||||||||||||||||||
9months 2019 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,698 | 13,949 | 65,558 | 65,901 | 4 | — | 151,110 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,250 | ) | (15,922 | ) | — | — | (18,172 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 28,761 | 15,781 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,938 | ||||||||||||||||||||
Operating expenses | (12,133 | ) | (13,692 | ) | (84,373 | ) | (48,203 | ) | (569 | ) | 50,080 | (108,890 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,156 | ) | (984 | ) | (1,144 | ) | (715 | ) | (51 | ) | — | (11,050 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted operating income | 8,472 | 1,105 | 2,442 | 1,517 | (538 | ) | — | 12,998 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 534 | 927 | 335 | 146 | 36 | — | 1,978 | |||||||||||||||||||||
Tax on net operating income | (3,528 | ) | (437 | ) | (354 | ) | (484 | ) | 194 | — | (4,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted net operating income | 5,478 | 1,595 | 2,423 | 1,179 | (308 | ) | — | 10,367 | ||||||||||||||||||||
Net cost of net debt | (1,510 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (194 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Adjusted net income - group share | 8,663 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
9months 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 6,359 | 6,306 | 1,034 | 803 | 76 | 14,578 | ||||||||||||||||||||||
Total divestments | 112 | 766 | 253 | 187 | 8 | 1,326 | ||||||||||||||||||||||
Cash flow from operating activities | 12,711 | 1,934 | 2,695 | 2,326 | (1,580 | ) | 18,086 |
27
INFORMATIONS BY BUSINESS SEGMENT
TOTAL
(unaudited)
9months 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 7,770 | 13,455 | 68,660 | 66,980 | 3 | — | 156,868 | |||||||||||||||||||||
Intersegment sales | 22,678 | 1,536 | 26,676 | 733 | 46 | (51,669 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,537 | ) | (16,537 | ) | — | — | (19,074 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 30,448 | 14,991 | 92,799 | 51,176 | 49 | (51,669 | ) | 137,794 | ||||||||||||||||||||
Operating expenses | (12,992 | ) | (13,783 | ) | (88,841 | ) | (49,066 | ) | (550 | ) | 51,669 | (113,563 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,146 | ) | (1,020 | ) | (911 | ) | (522 | ) | (31 | ) | — | (9,630 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 10,310 | 188 | 3,047 | 1,588 | (532 | ) | — | 14,601 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 1,026 | 1,240 | 638 | 302 | 48 | — | 3,254 | |||||||||||||||||||||
Tax on net operating income | (4,972 | ) | (392 | ) | (675 | ) | (463 | ) | 327 | — | (6,175 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 6,364 | 1,036 | 3,010 | 1,427 | (157 | ) | — | 11,680 | ||||||||||||||||||||
Net cost of net debt | (1,310 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (56 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 10,314 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
9months 2018 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | 13 | — | — | — | — | 13 | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | — | 13 | — | — | — | — | 13 | |||||||||||||||||||||
Operating expenses | (200 | ) | (165 | ) | 707 | 152 | (9 | ) | — | 485 | ||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (65 | ) | (485 | ) | — | — | — | — | (550 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income(b) | (265 | ) | (637 | ) | 707 | 152 | (9 | ) | — | (52 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (128 | ) | (40 | ) | 34 | — | — | — | (134 | ) | ||||||||||||||||||
Tax on net operating income | 186 | (30 | ) | (210 | ) | (44 | ) | — | — | (98 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income(b) | (207 | ) | (707 | ) | 531 | 108 | (9 | ) | — | (284 | ) | |||||||||||||||||
Net cost of net debt | (63 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 266 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | (81 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect |
| |||||||||||||||||||||||||||
• On operating income | — | — | 710 | 152 | — | |||||||||||||||||||||||
• On net operating income | — | — | 550 | 108 | — | |||||||||||||||||||||||
9months 2018 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 7,770 | 13,442 | 68,660 | 66,980 | 3 | — | 156,855 | |||||||||||||||||||||
Intersegment sales | 22,678 | 1,536 | 26,676 | 733 | 46 | (51,669 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,537 | ) | (16,537 | ) | — | — | (19,074 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 30,448 | 14,978 | 92,799 | 51,176 | 49 | (51,669 | ) | 137,781 | ||||||||||||||||||||
Operating expenses | (12,792 | ) | (13,618 | ) | (89,548 | ) | (49,218 | ) | (541 | ) | 51,669 | (114,048 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,081 | ) | (535 | ) | (911 | ) | (522 | ) | (31 | ) | — | (9,080 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted operating income | 10,575 | 825 | 2,340 | 1,436 | (523 | ) | — | 14,653 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 1,154 | 1,280 | 604 | 302 | 48 | — | 3,388 | |||||||||||||||||||||
Tax on net operating income | (5,158 | ) | (362 | ) | (465 | ) | (419 | ) | 327 | — | (6,077 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted net operating income | 6,571 | 1,743 | 2,479 | 1,319 | (148 | ) | — | 11,964 | ||||||||||||||||||||
Net cost of net debt | (1,247 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (322 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Adjusted net income - group share | 10,395 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
9months 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 10,629 | 4,347 | 1,113 | 831 | 75 | 16,995 | ||||||||||||||||||||||
Total divestments | 3,136 | 790 | 437 | 390 | 3 | 4,756 | ||||||||||||||||||||||
Cash flow from operating activities | 12,227 | 162 | 1,228 | 1,533 | (1,087 | ) | 14,063 |
28
Reconciliation of the information by business segment with Consolidated Financial Statements
TOTAL
(unaudited)
Consolidated | ||||||||||||
3rd quarter 2019 | statement | |||||||||||
(M$) | Adjusted | Adjustments(a) | of income | |||||||||
Sales | 48,577 | 12 | 48,589 | |||||||||
Excise taxes | (6,051 | ) | — | (6,051 | ) | |||||||
Revenues from sales | 42,526 | 12 | 42,538 | |||||||||
Purchases net of inventory variation | (27,805 | ) | (93 | ) | (27,898 | ) | ||||||
Other operating expenses | (6,240 | ) | (122 | ) | (6,362 | ) | ||||||
Exploration costs | (96 | ) | — | (96 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,987 | ) | (186 | ) | (4,173 | ) | ||||||
Other income | 167 | — | 167 | |||||||||
Other expense | (132 | ) | (427 | ) | (559 | ) | ||||||
Financial interest on debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Financial income and expense from cash & cash equivalents | — | — | — | |||||||||
Cost of net debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Other financial income | 163 | — | 163 | |||||||||
Other financial expense | (178 | ) | — | (178 | ) | |||||||
Net income (loss) from equity affiliates | 521 | 860 | 1,381 | |||||||||
Income taxes | (1,258 | ) | (282 | ) | (1,540 | ) | ||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 3,087 | (242 | ) | 2,845 | ||||||||
Group share | 3,017 | (217 | ) | 2,800 | ||||||||
Non-controlling interests | 70 | (25 | ) | 45 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Consolidated | ||||||||||||
3rd quarter 2018 | statement | |||||||||||
(M$) | Adjusted | Adjustments(a) | of income | |||||||||
Sales | 54,717 | — | 54,717 | |||||||||
Excise taxes | (6,317 | ) | — | (6,317 | ) | |||||||
Revenues from sales | 48,400 | — | 48,400 | |||||||||
Purchases net of inventory variation | (32,567 | ) | 216 | (32,351 | ) | |||||||
Other operating expenses | (6,766 | ) | (107 | ) | (6,873 | ) | ||||||
Exploration costs | (234 | ) | — | (234 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,175 | ) | (104 | ) | (3,279 | ) | ||||||
Other income | 465 | 116 | 581 | |||||||||
Other expense | (209 | ) | (146 | ) | (355 | ) | ||||||
Financial interest on debt | (492 | ) | (44 | ) | (536 | ) | ||||||
Financial income and expense from cash & cash equivalents | (63 | ) | — | (63 | ) | |||||||
Cost of net debt | (555 | ) | (44 | ) | (599 | ) | ||||||
Other financial income | 290 | — | 290 | |||||||||
Other financial expense | (171 | ) | — | (171 | ) | |||||||
Net income (loss) from equity affiliates | 865 | 53 | 918 | |||||||||
Income taxes | (2,235 | ) | (5 | ) | (2,240 | ) | ||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 4,108 | (21 | ) | 4,087 | ||||||||
Group share | 3,958 | (1 | ) | 3,957 | ||||||||
Non-controlling interests | 150 | (20 | ) | 130 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
29
Reconciliation of the information by business segment with Consolidated Financial Statements
TOTAL
(unaudited)
9months 2019 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 151,110 | (74 | ) | 151,036 | ||||||||
Excise taxes | (18,172 | ) | — | (18,172 | ) | |||||||
Revenues from sales | 132,938 | (74 | ) | 132,864 | ||||||||
Purchases net of inventory variation | (88,338 | ) | 329 | (88,009 | ) | |||||||
Other operating expenses | (19,998 | ) | (167 | ) | (20,165 | ) | ||||||
Exploration costs | (554 | ) | — | (554 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (11,050 | ) | (250 | ) | (11,300 | ) | ||||||
Other income | 620 | 115 | 735 | |||||||||
Other expense | (322 | ) | (635 | ) | (957 | ) | ||||||
Financial interest on debt | (1,715 | ) | (12 | ) | (1,727 | ) | ||||||
Financial income and expense from cash & cash equivalents | (70 | ) | — | (70 | ) | |||||||
Cost of net debt | (1,785 | ) | (12 | ) | (1,797 | ) | ||||||
Other financial income | 649 | — | 649 | |||||||||
Other financial expense | (561 | ) | — | (561 | ) | |||||||
Net income (loss) from equity affiliates | 1,592 | 1,312 | 2,904 | |||||||||
Income taxes | (4,334 | ) | (686 | ) | (5,020 | ) | ||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 8,857 | (68 | ) | 8,789 | ||||||||
Group share | 8,663 | 4 | 8,667 | |||||||||
Non-controlling interests | 194 | (72 | ) | 122 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
9months 2018 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 156,855 | 13 | 156,868 | |||||||||
Excise taxes | (19,074 | ) | — | (19,074 | ) | |||||||
Revenues from sales | 137,781 | 13 | 137,794 | |||||||||
Purchases net of inventory variation | (93,190 | ) | 794 | (92,396 | ) | |||||||
Other operating expenses | (20,262 | ) | (309 | ) | (20,571 | ) | ||||||
Exploration costs | (596 | ) | — | (596 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (9,080 | ) | (550 | ) | (9,630 | ) | ||||||
Other income | 1,093 | 263 | 1,356 | |||||||||
Other expense | (324 | ) | (634 | ) | (958 | ) | ||||||
Financial interest on debt | (1,341 | ) | (63 | ) | (1,404 | ) | ||||||
Financial income and expense from cash & cash equivalents | (158 | ) | — | (158 | ) | |||||||
Cost of net debt | (1,499 | ) | (63 | ) | (1,562 | ) | ||||||
Other financial income | 851 | — | 851 | |||||||||
Other financial expense | (500 | ) | — | (500 | ) | |||||||
Net income (loss) from equity affiliates | 2,268 | 237 | 2,505 | |||||||||
Income taxes | (5,825 | ) | (98 | ) | (5,923 | ) | ||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 10,717 | (347 | ) | 10,370 | ||||||||
Group share | 10,395 | (81 | ) | 10,314 | ||||||||
Non-controlling interests | 322 | (266 | ) | 56 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
30
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS 2019
(unaudited)
1)Accounting policies
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of September 30 2019, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.
The accounting principles applied for the consolidated financial statements at September 30, 2019, are consistent with those used for the financial statements at December 31, 2018, with the exception of standards or amendments that must be applied for periods beginning January 1, 2019.
• | First-time application of IFRS 16 “Leases” |
As part of the first application of IFRS 16 “Leases” as of January 1, 2019, the Group:
• | applied the simplified retrospective transition method, accounting for the cumulative effect of the initial application of the standard at the date of first application, without restating the comparative periods; |
• | used the following simplification measures provided by the standard in the transitional provisions: |
• | exclusion of contracts that the Group had not previously identified as containing a lease under IAS 17 and IFRIC 4, |
• | exclusion of leases whose term ends within 12 months of the date of first application; |
• | recognized each lease component as a separate lease, separately fromnon-lease components of the lease (services); |
• | applied the two exemptions of the standard on short-term leases and leases oflow-value assets. |
Further to the review of leases entered into as part of joint operations, in accordance with the IFRS Interpretations Committee (IFRIC) decision, all liabilities related to such leases have been recognized as at September 30, 2019 when the group has primary responsibility of the lease payments. When the right of use of the asset is jointly controlled by the group and the other partners, a financial receivable has been recognized for the portion of the asset transferred to the partners.
The impact of the application of this standard as at January 1, 2019 is $5,698 million on fixed assets, $(5,505) million on net debt and $(193) million on other assets and liabilities. The weighted average incremental borrowing rate at the transition date is 4.5%.
The impact on fixed assets is broken down as follows:
(in M$)
Right of use of buildings | 2,278 | |||
Right of use of machinery, plant and equipment (including transportation equipment) | 2,632 | |||
Other right of use | 788 | |||
Total | 5,698 |
31
2)Changes in the Group structure
2.1) Main acquisitions and divestments
• | Integrated Gas, Renewables & Power |
• | On March 4, 2019, Total and Novatek signed a definitive agreement for the acquisition of a 10% direct interest by Total in Arctic LNG 2, a major liquefied natural gas development led by Novatek on the Gydan Peninsula, Russia. |
• | On March 15, 2019, TOTAL finalized the sale of 4% of its interest in the Ichthys liquefied natural gas (LNG) project in Australia to operating partner INPEX, reducing its interest in the project from 30% to 26%. |
• | On August 30, 2019, TOTAL finalized an agreement with Toshiba to take over its portfolio of liquefied natural gas (LNG) in the United States. This portfolio includes a20-year tolling agreement and the corresponding gas transportation agreements. Under the transaction, TOTAL acquired all the shares of Toshiba America LNG corporation and was assigned all contracts related to their LNG business by Toshiba Energy Systems and Solutions Corp. |
• | On September 27, 2019, TOTAL finalized the acquisition of Anadarko’s 26.5% interest in the Mozambique LNG project. This closing comes after TOTAL reached a binding agreement with Occidental on May 3, 2019, to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed the subsequent Purchase and Sale Agreement on August 3, 2019. This first transaction follows receipt of all requisite approvals by the relevant authorities and partners. |
• | Exploration & Production |
• | On April 1, 2019, Total acquired all the share capital of Chevron Denmark Inc. which holds a 12% interest in the Danish Underground Consortium (DUC), a 12% interest in Licence 8/06, and a 7.5% interest in the Tyra West pipeline. The acquisition increased Total’s operated share of DUC from 31.2% to 43.2%. |
2.2) Major business combinations
In accordance with IFRS 3, TOTAL is assessing the fair value of identifiable acquired assets, liabilities and contingent liabilities on the basis of available information. This assessment will be finalised within 12 months following the acquisition date.
• | Integrated Gas, Renewables & Power |
Anadarko Mozambique
• | The Group acquired on September 27, 2019, 100% of the shares of Anadarko Mozambique affiliate which holds a 26.5% interest in the Mozambique LNG project for a purchase price of $4,426 million and recorded a preliminary goodwill for an amount of $134 million. The purchase price may be adjusted within 90 days of the acquisition date in accordance with the share purchase agreement. |
32
The preliminary purchase price allocation is shown below:
(M$) | At the acquisition date | |||
Goodwill | 134 | |||
Intangible assets | 2,812 | |||
Tangible assets | 1,534 | |||
Other assets and liabilities | (134 | ) | ||
Net debt | 80 | |||
|
|
| ||
Fair value of consideration | 4,426 | |||
|
|
|
2.3) Divestment projects
• | Exploration & Production |
• | On July 10, 2019, Total announced the signature of an agreement to divest several UKnon-core assets to Petrogas NEO UK Ltd. The overall consideration for this deal that is subject to approval from the relevant authorities amounts to $635 million. At September 30, 2019, the assets and liabilities have been respectively classified in the consolidated balance sheet in “assets classified as held for sale” for an amount of $418 million and in “liabilities directly associated with the assets classified as held for sale” for an amount of $331 million. The assets concerned mainly include mineral interests and tangible assets. |
3)Adjustment items
Description of the business segments
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL and which is reviewed by the main operational decision-making body of the Group, namely the Executive Committee.
The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The profitable growth in the gas and low carbon electricity integrated value chains is one of the key axes of Total’s strategy. In order to give more visibility to these businesses, a new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2019.
The organization of the Group’s activities is structured around the four followings segments:
• | An Exploration & Production segment; |
• | An Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity that was previously reported in the EP segment; |
• | A Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining, petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping; |
• | A Marketing & Services segment including the global activities of supply and marketing in the field of petroleum products; |
In addition the Corporate segment includes holdings operating and financial activities.
Certain figures for the years 2017 and 2018 have been restated in order to reflect the new organization.
33
Adjustment items
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
Adjustment items include:
(i)Special items
Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii)The inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO(Last-In,First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either themonth-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO(First-In,First-Out) and the replacement cost methods.
(iii)Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for some transactions differences between internal measure of performance used by TOTAL’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in the Group’s internal economic performance. IFRS precludes recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
The detail of the adjustment items is presented in the table below.
34
ADJUSTMENTS TO OPERATING INCOME
(M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2019 | Inventory valuation effect | — | — | (94 | ) | 25 | — | (69 | ) | |||||||||||||||||
Effect of changes in fair value | — | 12 | — | — | — | 12 | ||||||||||||||||||||
Restructuring charges | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (153 | ) | (9 | ) | (22 | ) | (2 | ) | — | (186 | ) | |||||||||||||||
Other items | (100 | ) | (39 | ) | (2 | ) | (3 | ) | — | (144 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (253 | ) | (38 | ) | (118 | ) | 20 | — | (389 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3rd quarter 2018 | Inventory valuation effect | — | — | 179 | 47 | — | 226 | |||||||||||||||||||
Effect of changes in fair value | — | — | — | — | — | — | ||||||||||||||||||||
Restructuring charges | (14 | ) | — | (3 | ) | — | — | (17 | ) | |||||||||||||||||
Asset impairment charges | (65 | ) | (39 | ) | — | — | — | (104 | ) | |||||||||||||||||
Other items | (36 | ) | (64 | ) | — | — | — | (100 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (115 | ) | (103 | ) | 176 | 47 | — | 5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
9months 2019 | Inventory valuation effect | — | — | 392 | 65 | — | 457 | |||||||||||||||||||
Effect of changes in fair value | — | (74 | ) | — | — | — | (74 | ) | ||||||||||||||||||
Restructuring charges | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (196 | ) | (20 | ) | (32 | ) | (2 | ) | — | (250 | ) | |||||||||||||||
Other items | (100 | ) | (151 | ) | (39 | ) | (3 | ) | — | (293 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (296 | ) | (247 | ) | 321 | 60 | — | (162 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
9months 2018 | Inventory valuation effect | — | — | 710 | 152 | — | 862 | |||||||||||||||||||
Effect of changes in fair value | — | 5 | — | — | — | 5 | ||||||||||||||||||||
Restructuring charges | (67 | ) | — | (3 | ) | — | — | (70 | ) | |||||||||||||||||
Asset impairment charges | (65 | ) | (485 | ) | — | — | — | (550 | ) | |||||||||||||||||
Other items | (133 | ) | (157 | ) | — | — | (9 | ) | (299 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (265 | ) | (637 | ) | 707 | 152 | (9 | ) | (52 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
35
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2019 | Inventory valuation effect | — | — | (89 | ) | 18 | — | (71 | ) | |||||||||||||||||
Effect of changes in fair value | — | 10 | — | — | — | 10 | ||||||||||||||||||||
Restructuring charges | (5 | ) | (13 | ) | (2 | ) | — | — | (20 | ) | ||||||||||||||||
Asset impairment charges | (132 | ) | (5 | ) | (22 | ) | (1 | ) | — | (160 | ) | |||||||||||||||
Gains (losses) on disposals of assets | — | — | — | — | — | — | ||||||||||||||||||||
Other items | (357 | ) | 452 | (19 | ) | (52 | ) | — | 24 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (494 | ) | 444 | (132 | ) | (35 | ) | — | (217 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3rd quarter 2018 | Inventory valuation effect | — | — | 131 | 29 | — | 160 | |||||||||||||||||||
Effect of changes in fair value | — | (9 | ) | — | — | — | (9 | ) | ||||||||||||||||||
Restructuring charges | (35 | ) | (2 | ) | (2 | ) | — | — | (39 | ) | ||||||||||||||||
Asset impairment charges | (65 | ) | (23 | ) | — | — | — | (88 | ) | |||||||||||||||||
Gains (losses) on disposals of assets | 89 | — | — | — | — | 89 | ||||||||||||||||||||
Other items | (22 | ) | (43 | ) | — | (17 | ) | (32 | ) | (114 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (33 | ) | (77 | ) | 129 | 12 | (32 | ) | (1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
9months 2019 | Inventory valuation effect | — | — | 252 | 37 | — | 289 | |||||||||||||||||||
Effect of changes in fair value | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||
Restructuring charges | (5 | ) | (29 | ) | (19 | ) | — | — | (53 | ) | ||||||||||||||||
Asset impairment charges | (175 | ) | (11 | ) | (30 | ) | (1 | ) | — | (217 | ) | |||||||||||||||
Gains (losses) on disposals of assets | — | — | — | — | — | — | ||||||||||||||||||||
Other items | (357 | ) | 526 | (67 | ) | (58 | ) | — | 44 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (537 | ) | 427 | 136 | (22 | ) | — | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
9months 2018 | Inventory valuation effect | — | — | 543 | 89 | — | 632 | |||||||||||||||||||
Effect of changes in fair value | — | (8 | ) | — | — | — | (8 | ) | ||||||||||||||||||
Restructuring charges | (94 | ) | (10 | ) | (2 | ) | — | — | (106 | ) | ||||||||||||||||
Asset impairment charges | (65 | ) | (271 | ) | — | — | — | (336 | ) | |||||||||||||||||
Gains (losses) on disposals of assets | (14 | ) | — | — | — | — | (14 | ) | ||||||||||||||||||
Other items | (56 | ) | (118 | ) | (17 | ) | (17 | ) | (41 | ) | (249 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Total | (229 | ) | (407 | ) | 524 | 72 | (41 | ) | (81 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
36
4)Shareholders’ equity
Treasury shares (TOTAL shares held directly by TOTAL S.A.)
In accordance with the February 2018 announcements regarding the shareholder return policy over 2018-2020, confirmed in 2019, TOTAL S.A. has been repurchasing its own shares.
TOTAL S.A. has also repurchased shares to be allocated to free share grant plans.
As a result, as of September 30, 2019, TOTAL S.A. directly holds 69,066,330 TOTAL shares, representing 2.59% of its share capital, which are deducted from the consolidated shareholders’ equity and allocated as follows:
Shares to be cancelled (1) | 65,109,435 | |||
|
| |||
Repurchased during Q4 2018 | 27,360,278 | |||
Repurchased during Q1 2019 | 7,374,542 | |||
|
| |||
Repurchased during Q2 2019 | 22,395,690 | |||
Repurchased during Q3 2019 | 7,978,925 | |||
|
|
| ||
Shares to be allocated as part of free share grant plans (2) | 3,956,895 | |||
|
| |||
2017 Plan | 3,890,769 | |||
|
| |||
2018 Plan | 0 | |||
|
| |||
Other Plans | 66,126 | |||
|
|
| ||
Treasury shares Total (1)+(2) | 69,066,330 | |||
|
|
|
Dividend
Further to its decision of September 23, 2019 to accelerate the dividend growth, the Board of Directors held on October 29, 2019, set the third interim dividend for the fiscal year 2019 at €0.68 per share, a 3% increase compared to the first two interim dividends for this fiscal year. This interim dividend will be detached on March 30, 2020 and paid in cash on April 1, 2020.
Dividend 2019 | First interim | Second interim | Third interim | |||
Amount | 0.66 € | 0.66 € | 0.68 € | |||
Set date | April 25, 2019 | July 24, 2019 | October 29, 2019 | |||
Ex-dividend date | September 27, 2019 | January 6, 2020 | March 30, 2020 | |||
Payment date | October 1, 2019 | January 8, 2020 | April 1, 2020 |
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €0.95 per share for the 3rdquarter 2019 (€0.89 per share for the 2nd quarter 2019 and €1.27 per share for the 3rdquarter 2018). Diluted earnings per share calculated using the same method amounted to €0.94 per share for the 3rd quarter 2019 (€0.89 per share for the 2nd quarter 2019 and €1.26 per share for the 3rd quarter 2018).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
Perpetual subordinated notes
The Group has issued perpetual subordinated notes in April 2019:
• | Perpetual subordinated notes 1.750% callable in 2024 (EUR 1,500 million). |
The Group has tendered perpetual subordinated in April 2019:
• | Perpetual subordinated notes 2.250% callable in 2021 (EUR 1,500 million). |
37
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
(M$) | 9 months 2019 | 9 months 2018 | ||||||||||||||
Actuarial gains and losses | (54 | ) | 100 | |||||||||||||
Change in fair value of investments in equity instruments | 126 | 3 | ||||||||||||||
Tax effect | 13 | (31 | ) | |||||||||||||
Currency translation adjustment generated by the parent company | (3,994 | ) | (3,141 | ) | ||||||||||||
|
|
|
|
| ||||||||||||
Sub-total items not potentially reclassifiable to profit and loss | (3,909 | ) | (3,069 | ) | ||||||||||||
|
|
|
|
| ||||||||||||
Currency translation adjustment | 1,394 | 1,061 | ||||||||||||||
• unrealized gain/(loss) of the period | 1,449 | 1,186 | ||||||||||||||
• less gain/(loss) included in net income | 55 | 125 | ||||||||||||||
Cash flow hedge | (575 | ) | 310 | |||||||||||||
• unrealized gain/(loss) of the period | (533 | ) | 241 | |||||||||||||
• less gain/(loss) included in net income | 42 | (69 | ) | |||||||||||||
Variation of foreign currency basis spread | 50 | (66 | ) | |||||||||||||
• unrealized gain/(loss) of the period | 6 | (66 | ) | |||||||||||||
• less gain/(loss) included in net income | (44 | ) | — | |||||||||||||
Share of other comprehensive income of equity affiliates, net amount | 326 | (274 | ) | |||||||||||||
• unrealized gain/(loss) of the period | 335 | (234 | ) | |||||||||||||
• less gain/(loss) included in net income | 9 | 40 | ||||||||||||||
Other | (4 | ) | (4 | ) | ||||||||||||
Tax effect | 176 | (84 | ) | |||||||||||||
|
|
|
|
| ||||||||||||
Sub-total items potentially reclassifiable to profit and loss | 1,367 | 943 | ||||||||||||||
|
|
|
|
| ||||||||||||
Total other comprehensive income, net amount | (2,542 | ) | (2,126 | ) | ||||||||||||
|
|
|
|
|
38
Tax effects relating to each component of other comprehensive income are as follows:
9 months 2019 | 9 months 2018 | |||||||||||||||||||||||
(M$) | Pre-tax amount | Tax effect | Net amount | Pre-tax amount | Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses | (54 | ) | 16 | (38 | ) | 100 | (31 | ) | 69 | |||||||||||||||
Change in fair value of investments in equity instruments | 126 | (3 | ) | 123 | 3 | — | 5 | |||||||||||||||||
Currency translation adjustment generated by the parent company | (3,994 | ) | — | (3,994 | ) | (3,141 | ) | — | (3,141 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Sub-total items not potentially reclassifiable to profit and loss | (3,922 | ) | 13 | (3,909 | ) | (3,038 | ) | (31 | ) | (3,069 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Currency translation adjustment | 1,394 | — | 1,394 | 1,061 | — | 1,061 | ||||||||||||||||||
Cash flow hedge | (575 | ) | 193 | (382 | ) | 310 | (101 | ) | 209 | |||||||||||||||
Variation of foreign currency basis spread | 50 | (17 | ) | 33 | (66 | ) | 17 | (49 | ) | |||||||||||||||
Share of other comprehensive income of equity affiliates, net amount | 326 | — | 326 | (274 | ) | — | (274 | ) | ||||||||||||||||
Other | (4 | ) | — | (4 | ) | (4 | ) | — | (4 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Sub-total items potentially reclassifiable to profit and loss | 1,191 | 176 | 1,367 | 1,027 | (84 | ) | 943 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total other comprehensive income | (2,731 | ) | 189 | (2,542 | ) | (2,011 | ) | (115 | ) | (2,126 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
5)Financial debt
The Group has issued bonds during the first nine months of 2019:
• | Bond 3.455% 2019-2029 (USD 1,250 million); |
• | Bond 1.660% 2019-2026 (GBP 500 million); |
• | Bond 0.696% 2019-2028 (EUR 650 million); |
• | Bond 1.535% 2019-2039 (EUR 650 million); |
• | Bond 0.166% 2019-2029 (CHF 200 million); |
• | Bond 2.218% 2019-2021 (USD 750 million); |
• | Bond 2.434% 2019-2025 (USD 1,000 million); |
• | Bond 2.829% 2019-2030 (USD 1,250 million); |
• | Bond 3.461% 2019-2049 (USD 1,000 million); |
• | Bond 1.405% 2019-2031 (GBP 400 million). |
The Group reimbursed bonds during the first nine months of 2019:
• | Bond 4.875% issued in 2009 and maturing in January 2019 (EUR 1,200 million); |
• | Bond 2.125% issued in 2014 and maturing in January 2019 (USD 750 million); |
• | Bond 4.125% issued in 2014 and maturing in March 2019 (AUD 150 million); |
• | Bond 4.180% issued in 2009 and maturing in June 2019 (HKD 750 million); |
• | Bond 2.100% issued in 2014 and maturing in June 2019 (USD 1,000 million); |
• | Bond USD3-month Libor + 35 basis points issued in 2014 and maturing in June 2019 (USD 250 million); |
• | Bond 3.750% issued in 2014 and maturing in June 2019 (AUD 100 million); |
• | Bond 5.000% issued in 2014 and maturing in July 2019 (NZD 100 million); |
• | Bond GBP 3 month Libor + 30 basis points issued in 2014 and maturing in July 2019 (GBP 275 million); |
39
• | Bond USD3-month Libor + 38 basis points issued in 2014 and maturing in September 2019 (USD 200 million); |
• | Bond 3.750% issued in 2014 and maturing in September 2019 (AUD 100 million). |
The Group’s financial debt increased by $5,555 million following the first application of IFRS 16 as at January 1, 2019. Impact on net debt included a sub lease financial asset of $50 million and resulted in an increase of $5,505 million.
6)Related parties
The related parties are principally equity affiliates andnon-consolidated investments.
In March 2019, the Group signed final agreements for the acquisition of a 10% direct interest in Arctic LNG2 with Novatek, in which TOTAL holds an interest of 19.40%. In July 2019, Novatek sold an additional 30% of Arctic LNG 2 to CNPC, CNOOC and Japan Arctic LNG. For the period ending September 30, 2019, the Group recognized its share of net income generated by these transactions in Novatek’s financial statements, except for the impact of the 10% purchased by TOTAL, that has been eliminated.
7)Other risks and contingent liabilities
TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group.
FERC
The Office of Enforcement of the U.S. Federal Energy Regulatory Commission (FERC) began in 2015 an investigation in connection with the natural gas trading activities in the United States of Total Gas & Power North America, Inc. (TGPNA), a U.S. subsidiary of the Group. The investigation covered transactions made by TGPNA between June 2009 and June 2012 on the natural gas market. TGPNA received a Notice of Alleged Violations from FERC on September 21, 2015. On April 28, 2016, FERC issued an order to show cause to TGPNA and two of its former employees, and to TOTAL S.A. and Total Gas & Power Ltd., regarding the same facts. TGPNA contests the claims brought against it.
A class action launched to seek damages from these three companies, was dismissed by a judgment of the U.S. District Court of New York issued on March 15, 2017. The Court of Appeal upheld this judgment on May 4, 2018. In September 2019, a Californian city publicly announced the launching of a collective action against these three companies on the same legal basis.
Yemen
Due to the security conditions in the vicinity of Balhaf, Yemen LNG, in which the Group holds a stake of 39.62%, stopped its commercial production and export of LNG in April 2015, when it declared Force Majeure to its various stakeholders. The plant is in a preservation mode.
40
8)Information by business segment
9months 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,698 | 13,875 | 65,558 | 65,901 | 4 | — | 151,036 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,250 | ) | (15,922 | ) | — | — | (18,172 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 28,761 | 15,707 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,864 | ||||||||||||||||||||
Operating expenses | (12,233 | ) | (13,845 | ) | (84,020 | ) | (48,141 | ) | (569 | ) | 50,080 | (108,728 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,352 | ) | (1,004 | ) | (1,176 | ) | (717 | ) | (51 | ) | — | (11,300 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 8,176 | 858 | 2,763 | 1,577 | (538 | ) | — | 12,836 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 444 | 1,939 | 265 | 86 | 36 | — | 2,770 | |||||||||||||||||||||
Tax on net operating income | (3,679 | ) | (845 | ) | (467 | ) | (498 | ) | 194 | — | (5,295 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 4,941 | 1,952 | 2,561 | 1,165 | (308 | ) | — | 10,311 | ||||||||||||||||||||
Net cost of net debt | (1,522 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (122 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 8,667 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
9months 2019 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (74 | ) | — | — | — | — | (74 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | — | (74 | ) | — | — | — | — | (74 | ) | |||||||||||||||||||
Operating expenses | (100 | ) | (153 | ) | 353 | 62 | — | — | 162 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (196 | ) | (20 | ) | (32 | ) | (2 | ) | — | — | (250 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income(b) | (296 | ) | (247 | ) | 321 | 60 | — | — | (162 | ) | ||||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 1,012 | (70 | ) | (60 | ) | — | — | 792 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (408 | ) | (113 | ) | (14 | ) | — | — | (686 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income(b) | (537 | ) | 357 | 138 | (14 | ) | — | — | (56 | ) | ||||||||||||||||||
Net cost of net debt | (12 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 72 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 4 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect
|
| |||||||||||||||||||||||||||
• On operating income | — | — | 392 | 65 | — | |||||||||||||||||||||||
• On net operating income | — | — | 254 | 46 | — | |||||||||||||||||||||||
9months 2019 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,698 | 13,949 | 65,558 | 65,901 | 4 | — | 151,110 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,250 | ) | (15,922 | ) | — | — | (18,172 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 28,761 | 15,781 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,938 | ||||||||||||||||||||
Operating expenses | (12,133 | ) | (13,692 | ) | (84,373 | ) | (48,203 | ) | (569 | ) | 50,080 | (108,890 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,156 | ) | (984 | ) | (1,144 | ) | (715 | ) | (51 | ) | — | (11,050 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted operating income | 8,472 | 1,105 | 2,442 | 1,517 | (538 | ) | — | 12,998 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 534 | 927 | 335 | 146 | 36 | — | 1,978 | |||||||||||||||||||||
Tax on net operating income | (3,528 | ) | (437 | ) | (354 | ) | (484 | ) | 194 | — | (4,609 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted net operating income | 5,478 | 1,595 | 2,423 | 1,179 | (308 | ) | — | 10,367 | ||||||||||||||||||||
Net cost of net debt | (1,510 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (194 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Adjusted net income - group share | 8,663 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
9months 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 6,359 | 6,306 | 1,034 | 803 | 76 | 14,578 | ||||||||||||||||||||||
Total divestments | 112 | 766 | 253 | 187 | 8 | 1,326 | ||||||||||||||||||||||
Cash flow from operating activities | 12,711 | 1,934 | 2,695 | 2,326 | (1,580 | ) | 18,086 |
41
9months 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 7,770 | 13,455 | 68,660 | 66,980 | 3 | — | 156,868 | |||||||||||||||||||||
Intersegment sales | 22,678 | 1,536 | 26,676 | 733 | 46 | (51,669 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,537 | ) | (16,537 | ) | — | — | (19,074 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 30,448 | 14,991 | 92,799 | 51,176 | 49 | (51,669 | ) | 137,794 | ||||||||||||||||||||
Operating expenses | (12,992 | ) | (13,783 | ) | (88,841 | ) | (49,066 | ) | (550 | ) | 51,669 | (113,563 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,146 | ) | (1,020 | ) | (911 | ) | (522 | ) | (31 | ) | — | (9,630 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 10,310 | 188 | 3,047 | 1,588 | (532 | ) | — | 14,601 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 1,026 | 1,240 | 638 | 302 | 48 | — | 3,254 | |||||||||||||||||||||
Tax on net operating income | (4,972 | ) | (392 | ) | (675 | ) | (463 | ) | 327 | — | (6,175 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 6,364 | 1,036 | 3,010 | 1,427 | (157 | ) | — | 11,680 | ||||||||||||||||||||
Net cost of net debt | (1,310 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (56 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | 10,314 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
9months 2018 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | 13 | — | — | — | — | 13 | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | — | 13 | — | — | — | — | 13 | |||||||||||||||||||||
Operating expenses | (200 | ) | (165 | ) | 707 | 152 | (9 | ) | — | 485 | ||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (65 | ) | (485 | ) | — | — | — | — | (550 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income(b) | (265 | ) | (637 | ) | 707 | 152 | (9 | ) | — | (52 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (128 | ) | (40 | ) | 34 | — | — | — | (134 | ) | ||||||||||||||||||
Tax on net operating income | 186 | (30 | ) | (210 | ) | (44 | ) | — | — | (98 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income(b) | (207 | ) | (707 | ) | 531 | 108 | (9 | ) | — | (284 | ) | |||||||||||||||||
Net cost of net debt | (63 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 266 | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Net income - group share | (81 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect
|
| |||||||||||||||||||||||||||
• On operating income | — | — | 710 | 152 | — | |||||||||||||||||||||||
• On net operating income | — | — | 550 | 108 | — | |||||||||||||||||||||||
9months 2018 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 7,770 | 13,442 | 68,660 | 66,980 | 3 | — | 156,855 | |||||||||||||||||||||
Intersegment sales | 22,678 | 1,536 | 26,676 | 733 | 46 | (51,669 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,537 | ) | (16,537 | ) | — | — | (19,074 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 30,448 | 14,978 | 92,799 | 51,176 | 49 | (51,669 | ) | 137,781 | ||||||||||||||||||||
Operating expenses | (12,792 | ) | (13,618 | ) | (89,548 | ) | (49,218 | ) | (541 | ) | 51,669 | (114,048 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,081 | ) | (535 | ) | (911 | ) | (522 | ) | (31 | ) | — | (9,080 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted operating income | 10,575 | 825 | 2,340 | 1,436 | (523 | ) | — | 14,653 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 1,154 | 1,280 | 604 | 302 | 48 | — | 3,388 | |||||||||||||||||||||
Tax on net operating income | (5,158 | ) | (362 | ) | (465 | ) | (419 | ) | 327 | — | (6,077 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Adjusted net operating income | 6,571 | 1,743 | 2,479 | 1,319 | (148 | ) | — | 11,964 | ||||||||||||||||||||
Net cost of net debt | (1,247 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (322 | ) | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Adjusted net income - group share | 10,395 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
9months 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 10,629 | 4,347 | 1,113 | 831 | 75 | 16,995 | ||||||||||||||||||||||
Total divestments | 3,136 | 790 | 437 | 390 | 3 | 4,756 | ||||||||||||||||||||||
Cash flow from operating activities | 12,227 | 162 | 1,228 | 1,533 | (1,087 | ) | 14,063 |
42
3rd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,631 | 3,667 | 21,338 | 21,951 | 2 | — | 48,589 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (713 | ) | (5,338 | ) | — | — | (6,051 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues from sales | 9,392 | 4,240 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,538 | ||||||||||||||||||||
Operating expenses | (3,999 | ) | (3,558 | ) | (27,518 | ) | (15,963 | ) | (163 | ) | 16,845 | (34,356 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,136 | ) | (361 | ) | (413 | ) | (247 | ) | (16 | ) | — | (4,173 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Operating income | 2,257 | 321 | 1,035 | 558 | (162 | ) | — | 4,009 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 77 | 898 | 5 | (15 | ) | 9 | — | 974 | ||||||||||||||||||||
Tax on net operating income | (1,094 | ) | (222 | ) | (221 | ) | (164 | ) | 70 | — | (1,631 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Net operating income | 1,240 | 997 | 819 | 379 | (83 | ) | — | 3,352 | ||||||||||||||||||||
Net cost of net debt | (507 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (45 | ) | ||||||||||||||||||||||||||
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Net income - group share | 2,800 | |||||||||||||||||||||||||||
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3rd quarter 2019 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | 12 | — | — | — | — | 12 | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
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Revenues from sales | — | 12 | — | — | — | — | 12 | |||||||||||||||||||||
Operating expenses | (100 | ) | (41 | ) | (96 | ) | 22 | — | — | (215 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (153 | ) | (9 | ) | (22 | ) | (2 | ) | — | — | (186 | ) | ||||||||||||||||
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Operating income(b) | (253 | ) | (38 | ) | (118 | ) | 20 | — | — | (389 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 599 | (23 | ) | (53 | ) | — | — | 433 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (138 | ) | 8 | (1 | ) | — | — | (282 | ) | |||||||||||||||||
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Net operating income(b) | (494 | ) | 423 | (133 | ) | (34 | ) | — | — | (238 | ) | |||||||||||||||||
Net cost of net debt | (4 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 25 | |||||||||||||||||||||||||||
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Net income - group share | (217 | ) | ||||||||||||||||||||||||||
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(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect
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• On operating income | — | — | (94 | ) | 25 | — | ||||||||||||||||||||||
• On net operating income | — | — | (90 | ) | 19 | — | ||||||||||||||||||||||
3rd quarter 2019 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,631 | 3,655 | 21,338 | 21,951 | 2 | — | 48,577 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (713 | ) | (5,338 | ) | — | — | (6,051 | ) | ||||||||||||||||||
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Revenues from sales | 9,392 | 4,228 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,526 | ||||||||||||||||||||
Operating expenses | (3,899 | ) | (3,517 | ) | (27,422 | ) | (15,985 | ) | (163 | ) | 16,845 | (34,141 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,983 | ) | (352 | ) | (391 | ) | (245 | ) | (16 | ) | — | (3,987 | ) | |||||||||||||||
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Adjusted operating income | 2,510 | 359 | 1,153 | 538 | (162 | ) | — | 4,398 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 167 | 299 | 28 | 38 | 9 | — | 541 | |||||||||||||||||||||
Tax on net operating income | (943 | ) | (84 | ) | (229 | ) | (163 | ) | 70 | — | (1,349 | ) | ||||||||||||||||
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Adjusted net operating income | 1,734 | 574 | 952 | 413 | (83 | ) | — | 3,590 | ||||||||||||||||||||
Net cost of net debt | (503 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (70 | ) | ||||||||||||||||||||||||||
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Adjusted net income - group share | 3,017 | |||||||||||||||||||||||||||
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3rd quarter 2019 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 2,077 | 4,331 | 386 | 276 | 25 | 7,095 | ||||||||||||||||||||||
Total divestments | 23 | 192 | 14 | 30 | 5 | 264 | ||||||||||||||||||||||
Cash flow from operating activities | 5,007 | 401 | 1,575 | 1,483 | (260 | ) | 8,206 |
43
3rd quarter 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,433 | 5,568 | 23,572 | 23,144 | — | — | 54,717 | |||||||||||||||||||||
Intersegment sales | 8,255 | 575 | 9,280 | 242 | 12 | (18,364 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (823 | ) | (5,494 | ) | — | — | (6,317 | ) | ||||||||||||||||||
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Revenues from sales | 10,688 | 6,143 | 32,029 | 17,892 | 12 | (18,364 | ) | 48,400 | ||||||||||||||||||||
Operating expenses | (4,271 | ) | (5,660 | ) | (30,593 | ) | (17,147 | ) | (151 | ) | 18,364 | (39,458 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,585 | ) | (213 | ) | (294 | ) | (176 | ) | (11 | ) | — | (3,279 | ) | |||||||||||||||
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Operating income | 3,832 | 270 | 1,142 | 569 | (150 | ) | — | 5,663 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 449 | 445 | 221 | 109 | 39 | — | 1,263 | |||||||||||||||||||||
Tax on net operating income | (1,853 | ) | (155 | ) | (292 | ) | (166 | ) | 146 | — | (2,320 | ) | ||||||||||||||||
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Net operating income | 2,428 | 560 | 1,071 | 512 | 35 | — | 4,606 | |||||||||||||||||||||
Net cost of net debt | (519 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (130 | ) | ||||||||||||||||||||||||||
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Net income - group share | 3,957 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
3rd quarter 2018 (adjustments)(a) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
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Revenues from sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating expenses | (50 | ) | (64 | ) | 176 | 47 | — | — | 109 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (65 | ) | (39 | ) | — | — | — | — | (104 | ) | ||||||||||||||||||
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Operating income(b) | (115 | ) | (103 | ) | 176 | 47 | — | — | 5 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 39 | (25 | ) | 9 | — | — | — | 23 | ||||||||||||||||||||
Tax on net operating income | 65 | (9 | ) | (52 | ) | (9 | ) | — | — | (5 | ) | |||||||||||||||||
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Net operating income(b) | (11 | ) | (137 | ) | 133 | 38 | — | — | 23 | |||||||||||||||||||
Net cost of net debt | (44 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 20 | |||||||||||||||||||||||||||
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Net income - group share | (1 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. (b) Of which inventory valuation effect
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| |||||||||||||||||||||||||||
• On operating income | — | — | 179 | 47 | — | |||||||||||||||||||||||
• On net operating income | — | — | 135 | 38 | — | |||||||||||||||||||||||
3rd quarter 2018 (adjusted) (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,433 | 5,568 | 23,572 | 23,144 | — | — | 54,717 | |||||||||||||||||||||
Intersegment sales | 8,255 | 575 | 9,280 | 242 | 12 | (18,364 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (823 | ) | (5,494 | ) | — | — | (6,317 | ) | ||||||||||||||||||
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Revenues from sales | 10,688 | 6,143 | 32,029 | 17,892 | 12 | (18,364 | ) | 48,400 | ||||||||||||||||||||
Operating expenses | (4,221 | ) | (5,596 | ) | (30,769 | ) | (17,194 | ) | (151 | ) | 18,364 | (39,567 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,520 | ) | (174 | ) | (294 | ) | (176 | ) | (11 | ) | — | (3,175 | ) | |||||||||||||||
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Adjusted operating income | 3,947 | 373 | 966 | 522 | (150 | ) | — | 5,658 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 410 | 470 | 212 | 109 | 39 | — | 1,240 | |||||||||||||||||||||
Tax on net operating income | (1,918 | ) | (146 | ) | (240 | ) | (157 | ) | 146 | — | (2,315 | ) | ||||||||||||||||
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Adjusted net operating income | 2,439 | 697 | 938 | 474 | 35 | — | 4,583 | |||||||||||||||||||||
Net cost of net debt | (475 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (150 | ) | ||||||||||||||||||||||||||
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Adjusted net income - group share | 3,958 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
3rd quarter 2018 (M$) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 2,472 | 3,325 | 377 | 293 | 17 | 6,484 | ||||||||||||||||||||||
Total divestments | 494 | 198 | 88 | 117 | — | 897 | ||||||||||||||||||||||
Cash flow from operating activities | 4,431 | (164 | ) | 1,338 | 752 | (621 | ) | 5,736 |
44
9)Reconciliation of the information by business segment with consolidated financial statements
9months 2019 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 151,110 | (74 | ) | 151,036 | ||||||||
Excise taxes | (18,172 | ) | — | (18,172 | ) | |||||||
Revenues from sales | 132,938 | (74 | ) | 132,864 | ||||||||
Purchases net of inventory variation | (88,338 | ) | 329 | (88,009 | ) | |||||||
Other operating expenses | (19,998 | ) | (167 | ) | (20,165 | ) | ||||||
Exploration costs | (554 | ) | — | (554 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (11,050 | ) | (250 | ) | (11,300 | ) | ||||||
Other income | 620 | 115 | 735 | |||||||||
Other expense | (322 | ) | (635 | ) | (957 | ) | ||||||
Financial interest on debt | (1,715 | ) | (12 | ) | (1,727 | ) | ||||||
Financial income and expense from cash & cash equivalents | (70 | ) | — | (70 | ) | |||||||
Cost of net debt | (1,785 | ) | (12 | ) | (1,797 | ) | ||||||
Other financial income | 649 | — | 649 | |||||||||
Other financial expense | (561 | ) | — | (561 | ) | |||||||
Net income (loss) from equity affiliates | 1,592 | 1,312 | 2,904 | |||||||||
Income taxes | (4,334 | ) | (686 | ) | (5,020 | ) | ||||||
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| ||||||
Consolidated net income | 8,857 | (68 | ) | 8,789 | ||||||||
Group share | 8,663 | 4 | 8,667 | |||||||||
Non-controlling interests | 194 | (72 | ) | 122 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
9months 2018 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 156,855 | 13 | 156,868 | |||||||||
Excise taxes | (19,074 | ) | — | (19,074 | ) | |||||||
Revenues from sales | 137,781 | 13 | 137,794 | |||||||||
Purchases net of inventory variation | (93,190 | ) | 794 | (92,396 | ) | |||||||
Other operating expenses | (20,262 | ) | (309 | ) | (20,571 | ) | ||||||
Exploration costs | (596 | ) | — | (596 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (9,080 | ) | (550 | ) | (9,630 | ) | ||||||
Other income | 1,093 | 263 | 1,356 | |||||||||
Other expense | (324 | ) | (634 | ) | (958 | ) | ||||||
Financial interest on debt | (1,341 | ) | (63 | ) | (1,404 | ) | ||||||
Financial income and expense from cash & cash equivalents | (158 | ) | — | (158 | ) | |||||||
Cost of net debt | (1,499 | ) | (63 | ) | (1,562 | ) | ||||||
Other financial income | 851 | — | 851 | |||||||||
Other financial expense | (500 | ) | — | (500 | ) | |||||||
Net income (loss) from equity affiliates | 2,268 | 237 | 2,505 | |||||||||
Income taxes | (5,825 | ) | (98 | ) | (5,923 | ) | ||||||
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|
|
|
| ||||||
Consolidated net income | 10,717 | (347 | ) | 10,370 | ||||||||
Group share | 10,395 | (81 | ) | 10,314 | ||||||||
Non-controlling interests | 322 | (266 | ) | 56 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
45
3rd quarter 2019 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 48,577 | 12 | 48,589 | |||||||||
Excise taxes | (6,051 | ) | — | (6,051 | ) | |||||||
Revenues from sales | 42,526 | 12 | 42,538 | |||||||||
Purchases net of inventory variation | (27,805 | ) | (93 | ) | (27,898 | ) | ||||||
Other operating expenses | (6,240 | ) | (122 | ) | (6,362 | ) | ||||||
Exploration costs | (96 | ) | — | (96 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,987 | ) | (186 | ) | (4,173 | ) | ||||||
Other income | 167 | — | 167 | |||||||||
Other expense | (132 | ) | (427 | ) | (559 | ) | ||||||
Financial interest on debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Financial income and expense from cash & cash equivalents | — | — | — | |||||||||
Cost of net debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Other financial income | 163 | — | 163 | |||||||||
Other financial expense | (178 | ) | — | (178 | ) | |||||||
Net income (loss) from equity affiliates | 521 | 860 | 1,381 | |||||||||
Income taxes | (1,258 | ) | (282 | ) | (1,540 | ) | ||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 3,087 | (242 | ) | 2,845 | ||||||||
Group share | 3,017 | (217 | ) | 2,800 | ||||||||
Non-controlling interests | 70 | (25 | ) | 45 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
3rd quarter 2018 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 54,717 | — | 54,717 | |||||||||
Excise taxes | (6,317 | ) | — | (6,317 | ) | |||||||
Revenues from sales | 48,400 | — | 48,400 | |||||||||
Purchases net of inventory variation | (32,567 | ) | 216 | (32,351 | ) | |||||||
Other operating expenses | (6,766 | ) | (107 | ) | (6,873 | ) | ||||||
Exploration costs | (234 | ) | — | (234 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,175 | ) | (104 | ) | (3,279 | ) | ||||||
Other income | 465 | 116 | 581 | |||||||||
Other expense | (209 | ) | (146 | ) | (355 | ) | ||||||
Financial interest on debt | (492 | ) | (44 | ) | (536 | ) | ||||||
Financial income and expense from cash & cash equivalents | (63 | ) | — | (63 | ) | |||||||
Cost of net debt | (555 | ) | (44 | ) | (599 | ) | ||||||
Other financial income | 290 | — | 290 | |||||||||
Other financial expense | (171 | ) | — | (171 | ) | |||||||
Net income (loss) from equity affiliates | 865 | 53 | 918 | |||||||||
Income taxes | (2,235 | ) | (5 | ) | (2,240 | ) | ||||||
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|
|
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| ||||||
Consolidated net income | 4,108 | (21 | ) | 4,087 | ||||||||
Group share | 3,958 | (1 | ) | 3,957 | ||||||||
Non-controlling interests | 150 | (20 | ) | 130 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
46
10)Post-closing
There was no post closing event.
47