TotalEnergies SE 6K 2020 Q2 Current report | TTE Filing

Exhibit 99.1

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The financial information on pages 1-17 of this exhibit concerning TOTAL SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TOTAL” or the “Group”) with respect to the second quarter of 2020 and six months ended June 30, 2020 has been derived from TOTAL’s unaudited consolidated balance sheets as of June 30, 2020, unaudited statements of income, comprehensive income, cash flow and business segment information for the second quarter of 2020 and six months ended June 30, 2020 and unaudited consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2020 presented on pages 18-32 and 36-42 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 Form 20-F for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2020, as amended on April 14, 2020.

A.	KEY FIGURES

2Q20

1Q20

2Q19

2Q20
vs
2Q19

in millions of dollars
(except earnings per share and number of
shares)

1H20

1H19

1H20
vs
1H19

25,730

43,870

51,242

-50%

Non-Group sales

69,600

102,447

-32%

821

2,300

3,589

-77%

Adjusted net operating income^(a)from business segments

3,121

7,002

-55%

(209)

703

2,022

• Exploration & Production

494

3,744

-87%

326

913

429

-24%

• Integrated Gas, Renewables & Power

1,239

1,021

+21%

575

382

715

-20%

• Refining & Chemicals

957

1,471

-35%

129

302

423

-70%

• Marketing & Services

431

766

-44%

(447)

732

812

Net income (loss) from equity affiliates

285

1,523

-81%

(3.27)

(0.01)

1.00

Fully-diluted earnings per share ($)

(3.29)

2.16

2,598

2,601

2,625

-1%

Fully-diluted weighted-average shares (millions)

2,598

2,622

-1%

(8,369)

2,756

Net income (Group share)

(8,335)

5,867

2,201

2,523

3,028

-27%

Organic investments^(b)

4,724

5,811

-19%

721

1,102

402

+79%

Net acquisitions^(c)

1,823

709

x2.6

2,922

3,625

3,430

-15%

Net investments^(d)

6,547

6,520

3,479

1,299

6,251

-44%

Cash flow from operations

4,778

9,880

-52%

Of which:

431

(884)

(317)

• (increase)/decrease in working capital^(e)

(453)

(3,287)

(499)

(512)

(501)

• financial charges

(1,011)

(1,004)

From 2019, data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.

(a)

Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See pages 3 et seq. “Analysis of business segment results” below for further details.

(b)

“Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.

(c)

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

(d)

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

(e)

The change in working capital as determined using the replacement cost method and, effective second quarter of 2019, including organic loan repayments from equity affiliates, and, effective first quarter of 2020, including capital gain from renewable projects sale was $331 million in 2Q20, $(2,717) million in 1Q20, $(456) million in 2Q19, $(2,386) million in 1H20 and $(2,860) million in 1H19. Effective second quarter of 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations. For information on the replacement cost method, refer to the second paragraph of “B. Analysis of business segment results”. See also “C. Group results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “Cash Flow” on page 16 of this exhibit.

Environment* — liquids and gas price realizations, refining margins


2Q20		1Q20		2Q19		2Q20 vs 2Q19				1H20		1H19		1H20 vs 1H19
	29.6		50.1		68.9		-57	%	Brent ($/b)		40.1		66.0		-39	%
	1.8		1.9		2.5		-30	%	Henry Hub ($/Mbtu)		1.8		2.7		-33	%
	1.7		3.1		4.1		-59	%	NBP ($/Mbtu)		2.4		5.2		-54	%
	2.1		3.6		4.9		-57	%	JKM ($/Mbtu)		2.9		5.8		-50	%
	23.4		44.4		63.7		-63	%	Average price of liquids ($/b) Consolidated subsidiaries		33.8		61.2		-45	%
	2.61		3.35		3.82		-32	%	Average price of gas ($/Mbtu) Consolidated subsidiaries		2.99		4.16		-28	%
	4.40		6.32		5.69		-23	%	Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates		5.42		6.42		-16	%
	14.3		26.3		27.6		-48	%	Variable cost margin – European refining, VCM ($/t)		21.0		30.6		-31	%

* The indicators are shown on page 17.

The average LNG sales price fell by 30% in the second quarter 2020 compared to the previous quarter. The share of volumes sold at spot prices increased in the second quarter 2020 compared to the first quarter 2020 due to deferrals of LNG liftings by long-term contract buyers, while the average selling price of long-term LNG contracts decreased by only 16% due to the delayed impact of lower oil prices.

Production*


2Q20		1Q20		2Q19		2Q20 vs 2Q19				1H20		1H19		1H20 vs 1H19
	2,846		3,086		2,957		-4	%	Hydrocarbon production (kboe/d)		2,966		2,951		-
	1,315		1,448		1,407		-7	%	● Oil (including bitumen) (kb/d)		1,381		1,416		-2	%
	1,531		1,638		1,549		-1	%	● Gas (including condensates and associated LNG) (kboe/d)		1,584		1,535		+3	%

2Q20		1Q20		2Q19		2Q20 vs 2Q19				1H20		1H19		1H20 vs 1H19
	2,846		3,086		2,957		-4	%	Hydrocarbon production (kboe/d)		2,966		2,951		-
	1,553		1,699		1,624		-4	%	● Liquids (kb/d)		1,626		1,627		-
	7,045		7,560		7,309		-4	%	● Gas (Mcf/d)**		7,302		7,238		+1	%

* Group production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).

** 2Q19 and 1H19 data restated.

Hydrocarbon production was 2,846 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2020, a decrease of 4% year-on-year, comprised of:

●

-5% due to OPEC+ quotas, notably in the United Arab Emirates, Nigeria, Angola and Kazakhstan, as well as voluntary reductions in Canada and disruptions in Libya.

●

-1% due to gas demand in the context of the pandemic.

●

+1% due to lower prices.

●

+4% due to the start-up and ramp-up of new projects, notably Culzean in the United Kingdom, Johan Sverdrup in Norway, Iara in Brazil and Tempa Rossa in Italy.

●

-3% due to the natural decline of fields.

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 the First-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 the Last-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 the month-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 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 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 a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages 26-32 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 from non-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 and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.

B.1. Integrated Gas, Renewables & Power segment (iGRP)

Liquefied natural gas (LNG) production and sales and low carbon electricity


2Q20		1Q20		2Q19		2Q20 vs 2Q19			Hydrocarbon production for LNG	1H20		1H19		1H20 vs 1H19
	520		552		559		-7	%	iGRP (kboe/d)		536		538		-
	66		73		73		-10	%	● Liquids (kb/d)		69		70		-
	2,471		2,611		2,680		-8	%	● Gas (Mcf/d)*		2,541		2,570		-1	%

2Q20		1Q20		2Q19		2Q20 vs 2Q19			LNG in Mt	1H20		1H19		1H20 vs 1H19
	10.4		9.8		8.5		+22	%	Overall LNG sales		20.2		16.3		+24	%
	4.3		4.7		4.1		+7	%	● including sales from equity production**		9.0		7.8		+15	%
	8.7		7.8		6.7		+29	%	● including sales by TOTAL from equity production and third party purchases		16.5		12.7		+30	%

* 2Q19 and 1H19 data restated.

** The Group’s equity production may be sold by TOTAL or by joint ventures.


2Q20		1Q20		2Q19		2Q20 vs 2Q19			Low carbon electricity	1H20		1H19		1H20 vs 1H19
	5.1		3.0		2.6		+97	%	Gross renewables installed capacity (GW)*		5.1		2.6		+97	%
	2.9		2.9		2.4		+23	%	Net low carbon power production (TWh)**		5.9		5.0		+16	%
	5.9		5.9		5.5		+7	%	Clients gas and power – BtB and BtC (Million)*		5.9		5.5		+7	%
	26.7		47.8		27.4		-3	%	Sales gas and power – BtB and BtC (TWh)		74.5		75.3		-1	%

Capacity at end of period.

Solar, wind, biogas, hydroelectric and CCGT plants.

Hydrocarbon production for LNG was stable in the first half 2020 compared to last year.

Total LNG sales increased by 22% in the second quarter 2020 compared to last year, notably due to an increase in trading activities. For the first half 2020, total sales increased by 24% year-on-year for the same reason and due to the ramp-up of Yamal LNG and Ichthys plus the start-up of the first two Cameron LNG trains in the US.

Gross installed renewable power generation capacity rose to 5.1 GW in the second quarter 2020, a strong 97% increase year-on-year, notably due to the acquisition in India of 50% of a portfolio of more than 2 GW from the Adani Group.

The Group continues to implement its strategy to integrate along the gas and electricity chain in Europe and has seen the number of its gas and electricity customers grow during the quarter to 5.9 million, a 7% increase compared to a year ago. Sales of gas and electricity decreased by 3%, impacted by lower demand linked to the lockdown in Europe.

Results


2Q20		1Q20		2Q19		2Q20 vs 2Q19			in millions of dollars	1H20		1H19		1H20 vs 1H19
	3,313		5,090		3,789		-13	%	Non-Group sales		8,403		10,208		-18	%
	(1,074)		358		215		ns		Operating income		(716)		537		ns
	21		399		661		-97	%	Net income (loss) from equity affiliates and other items		420		1,041		-60	%
	322		8		(450)		ns		Tax on net operating income		330		(623)		ns
	(731)		765		426		ns		Net operating income		34		955		-96	%
	1,057		148		3		x352		Adjustments affecting net operating income		1,205		66		x18
	326		913		429		-24	%	Adjusted net operating income*		1,239		1,021		+21	%
	(69)		248		195		ns		• including income from equity affiliates		179		450		-60	%
	618		646		442		+40	%	Organic investments		1,264		935		+35	%
	433		1,137		159		x2.7		Net acquisitions		1,570		559		x2.8
	1,051		1,783		601		+75	%	Net investments		2,834		1,494		+90	%

*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the iGRP segment was $326 million in the second quarter 2020, down 24% year-on-year. The results are mainly due to the sharp drop in gas prices compared to the second quarter 2019.

In the first half 2020, adjusted net operating income for the iGRP segment was $1,239 million, an increase of 21% compared to last year, notably due to the strong 24% growth in LNG sales.

Adjusted net operating income for the Integrated Gas, Renewables & Power segment excludes special items. In the second quarter 2020, the exclusion of special items had a positive impact of $1,057 million on the segment’s adjusted net operating income, compared to a positive impact of $3 million in the second quarter 2019. In the first half 2020, the exclusion of special items had a positive impact of $1,205 million on the segment’s adjusted net operating income, compared to a positive impact of $66 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost¹ and excluding financial charges, except those related to leases was $555 million, a decrease of 36% compared to $869 million in the second quarter 2019, mainly due to the sharp drop in gas prices compared to the second quarter 2019. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,407 million, a decrease of 5% compared to $1,479 million in the first half 2019.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,389 million, 2.2 times greater than $641 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $900 million, a decrease of 41% compared to $1,533 million in the first half 2019.

B.2. Exploration & Production segment

Production


2Q20		1Q20		2Q19		2Q20 vs 2Q19			Hydrocarbon production	1H20		1H19		1H20 vs 1H19
	2,326		2,534		2,398		-3	%	EP (kboe/d)		2,430		2,413		+1	%
	1,487		1,626		1,551		-4	%	● Liquids (kb/d)		1,557		1,557		-
	4,574		4,949		4,629		-1	%	● Gas (Mcf/d)		4,761		4,668		+2	%

¹ Operating cash flow excluding the change in working capital at replacement cost provides 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 16 of this exhibit.

Results

2Q20

1Q20

2Q19

2Q20 vs
2Q19

in millions of dollars (except effective tax
rate)

1H20

1H19

1H20 vs
1H19

992

1,582

2,273

-56%

Non-Group sales

2,574

4,067

-37%

(7,983)

859

2,967

Operating income

(7,124)

5,919

423

173

-90%

Net income (loss) from equity affiliates and other items

440

367

-20%

56.6%

59.6%

39.5%

Effective tax rate*

69.6%

44.0%

398

(454)

(1,161)

Tax on net operating income

(56)

(2,585)

(7,568)

828

1,979

Net operating income

(6,740)

3,701

7,359

(125)

x171

Adjustments affecting net operating income

7,234

x168

(209)

703

2,022

Adjusted net operating income**

494

3,744

-87%

390

239

-80%

• including income from equity affiliates

438

452

-3%

1,112

1,572

1,995

-44%

Organic investments

2,684

3,953

-32%

311

(6)

204

+52%

Net acquisitions

305

242

+26%

1,423

1,566

2,199

-35%

Net investments

2,989

4,195

-29%

*	“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 26 of this exhibit.

The Exploration & Production segment’s adjusted net operating loss was $209 million in the second quarter compared to adjusted net operating income of $2,022 million a year ago due to the sharp drop in oil and gas prices and lower production.

The Exploration & Production segment’s adjusted net operating income fell to $494 million in the first half 2020 from $3,744 million in the first half 2019 due to the sharp drop in oil and gas prices.

Adjusted net operating income for the Exploration & Production segment excludes special items. In the second quarter 2020, the exclusion of special items had a positive impact of $7,359 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the second quarter 2019. In the first half 2020, the exclusion of special items had a positive impact of $7,234 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,810 million, a decrease of 63% compared to $4,882 million in the second quarter 2019 for the same reasons aforementioned above with respect to the adjusted net operating income for the second quarter. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $4,386 million, a decrease of 52% compared to $9,128 million in the first half 2019.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $910 million, a decrease of 76% compared to $3,768 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $4,833 million, a decrease of 37% compared to $7,704 million in the first half 2019.

B.3. Downstream (Refining & Chemicals and Marketing & Services segments)

Results

2Q20

1Q20

2Q19

2Q20 vs
2Q19

in millions of dollars

1H20

1H19

1H20 vs
1H19

21,419

37,198

45,180

-53%

Non-Group sales

58,617

88,170

-34%

866

(1,190)

934

-7%

Operating income

(324)

2,747

(13)

(47)

222

Net income (loss) from equity affiliates and other items

(60)

361

(259)

303

(124)

Tax on net operating income

(580)

594

(934)

1,032

-42%

Net operating income

(340)

2,528

110

1,618

106

+3.8%

Adjustments affecting net operating income

1,728

(291)

704

684

1,138

-38%

Adjusted net operating income*

1,388

2,237

-38%

457

277

557

-18%

Organic investments

734

876

-16%

(20)

(30)

Net acquisitions

(50)

(93)

437

247

595

-27%

Net investments

684

783

-13%

* Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit

In the second quarter 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,488 million, an increase of 4% compared to $1,432 million in the second quarter 2019. In the first half 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $2,552 million, a decrease of 18% compared to $3,118 in the first half 2019.

In the second quarter 2020, the Downstream segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,899 million, a decrease of 16% compared to $2,269 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $317 million, a decrease of 84% compared to $1,963 in the first half 2019.

Refining & Chemicals segment

• Refinery and petrochemicals throughput and utilization rates

2Q20

1Q20

2Q19

2Q20
vs
2Q19

Refinery throughput and utilization rate*

1H20

1H19

1H20 vs
1H19

1,249

1,444

1,595

-22%

Total refinery throughput (kb/d)

1,347

1,729

-22%

205

255

447

-54%

• France

230

520

-56%

595

756

679

-12%

• Rest of Europe

676

751

-10%

449

433

469

-4%

• Rest of world

441

458

-4%

59%

69%

77%

Utilization rates based on crude only**

64%

83%

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

** Based on distillation capacity at the beginning of the year.

• Petrochemicals production and utilization rates

2Q20

1Q20

2Q19

2Q20 vs
2Q19

Petrochemicals production and
utilization rate

1H20

1H19

1H20

vs
1H19

1,391

1,386

993

+40%

Monomers* (kt)

2,778

2,386

+16%

1,193

1,202

1,127

+6%

Polymers (kt)

2,395

2,424

-1%

84%

83%

64%

Vapocracker utilization rate**

83%

75%

Olefins

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

Refinery throughput volumes decreased by 22% in the second quarter and in the first half of 2020 year-on-year, mainly due to prolonging the planned shutdown at Feyzin in France, the decision to not restart Grandpuits after a major turnaround given the drop in demand and the shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019.

Monomer production was:

●

Up by a strong 40% in the second quarter compared to a year ago. In the second quarter 2019, it was 993 kt due to planned maintenance on the steamcrackers at Daesan in South Korea and Port Arthur in the United States.

●

Up 16% in the first half 2020 for the same reasons.

Polymer production was:

●

Up 6% in the second quarter 2020 compared to a year ago. It was 1,127 kt in the second quarter 2019 due to planned maintenance of the steamcracker upstream of the polymer units at Daesan in South Korea.

●

Stable in the first half with a decrease of only 1% for the same reasons and taking into account the closure of the polystyrene site at El Prat in Spain and the planned maintenance at the Qatofin platform in Qatar in the first quarter 2020.

Results

2Q20

1Q20

2Q19

2Q20

vs
2Q19

in millions of dollars

1H20

1H19

1H20 vs
1H19

9,433

18,523

22,509

-58%

Non-Group sales

27,956

44,220

-37%

632

(1,268)

484

+31%

Operating income

(636)

1,728

(35)

(57)

111

Net income (loss) from equity affiliates and other items

(92)

260

(132)

335

Tax on net operating income

203

(246)

465

(990)

641

-27%

Net operating income

(525)

1,742

110

1,372

+49%

Adjustments affecting net operating income

1,482

(271)

575

382

715

-20%

Adjusted net operating income*

957

1,471

-35%

302

168

353

-14%

Organic investments

470

593

-21%

(15)

(36)

(58)

Net acquisitions

(51)

(182)

287

132

295

-3%

Net investments

419

411

+2%

*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the Refining & Chemicals segment decreased by 20% to $575 million in the second quarter 2020 compared to a year ago. The decrease was notably due to an even more severely degraded refining margin environment in the second quarter 2020 and low plant utilization of 59%, partially offset by resilient petrochemical margins and outperformance of the trading activities. In the first half 2020, adjusted net operating income was $957 million, down 35% compared to a year ago. This decrease was notably linked to the degraded refining margin environment in the first half 2020 and to the weak plant utilization rate of 64%, partially offset by resilient petrochemical margins and very good performance of the trading activities.

Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $86 million on the segment’s adjusted net operating income, compared to a positive impact of $1 million in the second quarter 2019. In the second quarter 2020 the exclusion of special items had a positive impact of $24 million on the segment’s adjusted net operating income, compared to a positive impact of $73 million in the second quarter 2019. In the first half 2020, the exclusion of the inventory valuation effect had a positive impact of $1,371 million on the segment’s adjusted net operating income, compared to a negative impact of $344 million in the first half 2019. In the first half 2020, the exclusion of special items had a positive impact of $111 million on the segment’s adjusted net operating income, compared to a positive impact of $73 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $996 million, an increase of 24% compared to $806 million in the second quarter 2019, for the reasons aforementioned with respect to the decrease in the adjusted net operating income for the second quarter 2020 in addition to the receipt in the second quarter 2020 of the dividend from HTC. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $1,670 million, a decrease of 13%

compared to $1,910 in the first half 2019, for the reasons aforementioned with respect to the decrease in the adjusted net operating income for first half 2020.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,080 million, a decrease of 35% compared to $1,658 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $(103) million compared to $1,120 million in the first half 2019.

B.4. Marketing & Services segment

Petroleum product sales

2Q20

1Q20

2Q19

2Q20 vs
2Q19

sales in kb/d*

1H20

1H19

1H20 vs
1H19

1,301

1,656

1,860

-30%

Total Marketing & Services sales

1,478

1,848

-20%

740

906

1,004

-26%

• Europe

823

1,008

-18%

561

750

856

-34%

• Rest of world

656

840

-22%

*Excludes trading and bulk refining sales.

Petroleum product sales volumes fell by 30% in the second quarter 2020 and by 20% in the first half 2020 year-on-year notably due to the impact of the lockdown on demand.

Results

2Q20

1Q20

2Q19

2Q20 vs
2Q19

in millions of dollars

1H20

1H19

1H20 vs
1H19

11,986

18,675

22,671

-47%

Non-Group sales

30,661

43,950

-30%

234

450

-48%

Operating income

312

1,019

-69%

111

-80%

Net income (loss) from equity affiliates and other items

101

-68%

(127)

(32)

(170)

Tax on net operating income

(159)

(334)

129

391

-67%

Net operating income

185

786

-76%

246

Adjustments affecting net operating income

246

(20)

129

302

423

-70%

Adjusted net operating income*

431

766

-44%

155

109

204

-24%

Organic investments

264

283

-7%

(5)

Net acquisitions

-99%

150

115

300

-50%

Net investments

265

372

-29%

*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the Marketing & Services segment was $129 million in the second quarter 2020, a drop of 70% due to the decrease in volumes. It decreased by 44% in the first half 2020 compared to last year for the same reason.

Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $9 million on the segment’s adjusted net operating income, compared to a positive impact of $25 million in the second quarter 2019. In the second quarter 2020, the exclusion of special items had a negative impact of $9 million on the segment’s adjusted net operating income, compared to a positive impact of $7 million in the first half 2019. In the first half 2020, the exclusion of the inventory valuation effect had a positive impact of $163 million on the segment’s adjusted net operating income, compared to a negative impact of $27 million in the first half 2019. In the first half 2020, the exclusion of special items had a positive impact of $83 million on the segment’s adjusted net operating income, compared to a positive impact of $7 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $492 million, a decrease of 21% compared to $626 million in the second quarter 2019. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement costand excluding financial charges, except those related to leases was $882 million, a decrease of 27% compared to $1,208 million in the first half 2019.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $819 million, an increase of 34% compared to $611 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $420 million, a decrease of 50% compared to $843 million in the first half 2019.

C.	GROUP RESULTS

Net income (Group share)

In the second quarter 2020, net income (Group share) was $(8,369) million, a decrease compared to $2,756 million in the second quarter 2019. In the first half 2020, net income (Group share) was $(8,335) million, a decrease compared to $5,867 million in the first half 2019.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value².

Adjusted net income (Group share) was:

●

$126 million in the second quarter 2020, compared to $2,887 million a year ago due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.

●

$1,907 million in the first half 2020 for the same reasons.

Total adjustments affecting net income³were $(8,495) million in the second quarter 2020, including $(8,101) million for impairments.

Fully-diluted shares

The number of fully-diluted shares was 2,605 million on June 30, 2020.

Acquisitions - Asset sales

Acquisitions were:

●

$857 million in the second quarter 2020, comprised notably of finalizing the acquisition in India of 50% of a portfolio of installed solar activities from Adani Green Energy Limited as well as the acquisition of interests in Blocks 20 and 21 in Angola.

●

$2.5 billion in the first half 2020, comprised of the elements above as well as the finalization of the acquisition of 37.4% of Adani Gas Limited in India and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia.

Asset sales were:

●

$136 million in the second quarter 2020.

●

$678 million in the first half 2020, comprised notably of the sales of Block CA1 in Brunei, the Group’s interest in the Fos Cavaou regasification terminal in France, and 50% of a portfolio of solar and wind assets by Total Quadran in France.

Cash flow

The Group’s cash flow from operating activities was $3,479 million, a decrease of 44% compared to $6,251 million in the second quarter 2019. The Group’s cash flow from operating activities was $4,778 million in the first half 2020, a decrease of 52% compared to $9,880 million in the first half 2019.

The change in working capital at replacement cost in the second quarter 2020, which is the (increase)/decrease in working capital of $431 million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $(42) million, was $389 million, compared to $(357) million in the second quarter 2019. The change in working capital at replacement cost in the first half 2020, which is the (increase)/decrease in working capital of $(453) million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $(1,838) million, was $(2,291) million, compared to $(2,761) million in the first half 2019.

² Details shown on page 15 of this exhibit.

³ Details shown on pages 15 and 26-32 of this exhibit.

In the second quarter 2020, operating cash flow excluding the change in working capital at replacement cost was $3,148 million, a decrease of 53% compared to $6,707 million in the second quarter 2019. This operating cash flow includes organic loan repayments from equity affiliates, effective second quarter 2019, and capital gain from renewable projects sale, effective first quarter 2020. In the first half 2020, operating cash flow excluding the change in working capital at replacement cost was $7,164 million, a decrease of 44% compared to $12,740 million in the first half 2019.

In the second quarter 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF)⁴ was $3,647 million, a decrease of 49% compared to $7,208 million in the second quarter 2019. In the first half 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF) was $8,175 million, a decrease of 41% compared to $13,744 million in the first half 2019.

The Group’s net cash flow⁵ was:

●

$226 million in the second quarter 2020 compared to $3.3 billion a year ago due to the decrease in operating cash flow before working capital changes in the context of sharply lower oil and gas prices. It remains positive thanks to the decrease in net investments.

●

$0.6 billion in the first half 2020 compared to $6.2 billion year-on-year due to the decrease in operating cash flow before working capital changes of $5.6 billion in the context of sharply lower oil and gas prices.

D. PROFITABILITY

Return on equity for the twelve months ended June 30, 2019, was 7.5%.

in millions of dollars

07/01/2019 -
06/30/2020

04/01/2019 -
03/31/2020

07/01/2018 -
06/30/2019

Adjusted net income

8,214

11,079

13,125

Adjusted shareholders’ equity

109,448

113,607

117,787

Return on equity (ROE)

7.5%

9.8%

11.1%

Return on average capital employed was 7% for the twelve months ended June 30, 2020.

in millions of dollars

07/01/2019 -
06/30/2020

04/01/2019 -
03/31/2020

07/01/2018 -
06/30/2019

Adjusted net operating income

10,125

13,032

15,087

Adjusted capital employed

145,621

150,418

145,247

ROACE

7.0%

8.7%

10.4%

E. 2020 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$/b	+/- 2.9 B$	+/- 3.3 B$
European gas price – NBP ($/Mbtu)	+/- 1 $/Mbtu	+/- 0.35 B$	+/- 0.35 B$
Variable cost margin, European refining (VCM)	+/- 10 $/t	+/- 0.5 B$	+/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2020. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 17.

** In a 60 $/b Brent environment.

⁴ DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.

⁵ Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

F. SUMMARY AND OUTLOOK

Oil prices strengthened since the beginning of June, reaching around 40 $/b, benefiting from strong compliance with the OPEC+ quotas and the decline of hydrocarbon production in the United States and Canada as well as a recovery in demand.

The oil environment, however, remains volatile, given the uncertainty around the extent and speed of the global economic recovery post-Covid-19.

The Group demonstrates discipline in the implementation of its 2020 action plan:

- Net investments below $14 billion,

- Savings of $1 billion on operating costs compared to 2019.

TOTAL will continue to profitably grow in low carbon electricity, particularly in renewables, with close to $2 billion of investments in 2020.

In LNG, TOTAL anticipates significant deferred liftings in the third quarter and expects the decline in oil prices observed in the second quarter to have an impact on long-term LNG contract prices in the second half of the year.

Considering the implementation of the OPEC+ quotas and the situation in Libya, the Group now expects 2020 production to be between 2.9 Mboe/d and 2.95 Mboe/d, with a low point in the third quarter during the summer season. The ramp up of Iara’s second FPSO in Brazil will contribute to production growth in the last part of the year. In the Downstream, high inventory levels continue to weigh on refining margins and utilization rates. In the Marketing & Services segment, activity in Europe returned to 90% of its pre-crisis level since June and the Group anticipates that it will remain at a comparable level in the coming months.

The Group’s priority is to generate a level of cash flow (DACF) that allows it to continue to invest in profitable projects, to preserve an attractive shareholder return and to maintain a strong balance sheet. To this end, the Group’s teams are focused on the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

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 are often, but not always, 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 Form 20-F/A for the year ended December 31, 2019.

OPERATING INFORMATION BY SEGMENT

Group production (Exploration & Production + iGRP)

2Q20

1Q20

2Q19

2Q20 vs

2Q19

Combined liquids and gas production by

region (kboe/d)

1H20

1H19

1H20 vs

1H19

1,032

1,097

997

+3%

Europe and Central Asia

1,064

993

+7%

653

701

686

-5%

Africa

677

691

-2%

641

681

703

-9%

Middle East and North Africa

661

695

-5%

314

372

358

-12%

Americas

343

365

-6%

206

235

214

-4%

Asia-Pacific

220

207

+6%

2,846

3,086

2,957

-4%

Total production

2,996

2,951

699

753

750

-7%

• includes equity affiliates

726

730

2Q20

1Q20

2Q19

2Q20 vs

2Q19

Liquids production by region (kb/d)

1H20

1H19

1H20 vs

1H19

381

404

328

+16%

Europe and Central Asia

392

340

+15%

514

555

549

-6%

Africa

534

545

-2%

494

516

546

-9%

Middle East and North Africa

505

534

-5%

127

178

160

-20%

Americas

153

168

-9%

-10%

Asia-Pacific

+5%

1,553

1,699

1,624

-4%

Total production

1,626

1,627

199

214

225

-12%

• includes equity affiliates

207

221

-6%

2Q20

1Q20

2Q19

2Q20 vs

2Q19

Gas production by region (Mcf/d)

1H20

1H19

1H20 vs

1H19

3,506

3,734

3,639

-4%

Europe and Central Asia

3,620

3,532

+2%

706

746

703

Africa*

726

749

-3%

818

912

866

-6%

Middle East and North Africa

865

885

-2%

1,047

1,092

1,107

-5%

Americas

1,069

1,104

-3%

968

1,076

994

-3%

Asia-Pacific*

1,022

968

+6%

7,045

7,560

7,309

-4%

Total production*

7,302

7,238

+1%

2,698

2,905

2,868

-6%

• includes equity affiliates*

2,802

2,762

+1%

��

*2Q19 and 1H19 data restated

Downstream (Refining & Chemicals and Marketing & Services)

2Q20

1Q20

2Q19

2Q20

2Q19

Petroleum product sales by region (kb/d)

1H20

1H19

1H20 vs

1H19

1,449

1,771

2,018

-28%

Europe

1,610

2,020

-20%

463

683

751

-38%

Africa

573

705

-19%

861

766

846

+2%

Americas

814

842

-3%

433

444

536

-19%

Rest of world

439

576

-24%

3,208

3,663

4,152

-23%

Total consolidated sales

3,435

4,143

-17%

366

497

535

-32%

• includes bulk sales

432

546

-21%

1,541

1,510

1,757

-12%

• includes trading

1,525

1,749

-13%

2Q20

1Q20

2Q19

2Q20 vs
2Q19

Petrochemicals production* (kt)

1H20

1H19

1H20 vs

1H19

1,275

1,272

1,318

-3%

Europe

2,547

2,734

-7%

637

664

475

+34%

Americas

1,301

1,089

+19%

672

652

327

x2.1

Middle East and Asia

1,324

987

+34%

*Olefins, polymers

ADJUSTMENT ITEMS

Adjustment items to net income (Group share)


2Q20		1Q20		2Q19		in millions of dollars	1H20		1H19
	(8,321)		(334)		(56)	Special items affecting net income (Group share)		(8,655)		(70)

	-		-		-	• Gain (loss) on asset sales		-		-
	(20)		(80)		(31)	• Restructuring charges		(100)		(33)
	(8,101)		-		(57)	• Impairments		(8,101)		(57)
	(200)		(254)		32	• Other		(454)		20

	(94)		(1,414)		(28)	After-tax inventory effect: FIFO vs. replacement cost		(1,508)		360

	(80)		1		(47)	Effect of changes in fair value		(79)		(69)

	(8,495)		(1,747)		(131)	Total adjustments affecting net income		(10,242)		221

INVESTMENTS — DIVESTMENTS


2Q20	1Q20	2Q19	2Q20 vs 2Q19	in millions of dollars	1H20	1H19	1H20 vs 1H19

2,201	2,523	3,028	-27%	Organic investments (a)	4,724	5,811	-19%

162	135	185	-12%	● Capitalized exploration	297	417	-29%
733	279	370	+98%	● Increase in non-current loans	1,012	500	x2
(58)	(117)	(254)	ns	● Repayment of non-current loans, excluding organic loan repayment from equity affiliates*	(175)	(388)	ns

(47)	(105)	-	ns	● Change in debt from renewable projects (Group share)	(152)	-	ns

857	1,644	614	+40%	Acquisitions (b)	2,501	1,284	+95%

136	542	212	-36%	Asset sales (c)	678	575	+18%

22	61	-	ns	● Change in debt from renewable projects (partner share)	83	-	ns

-	-	-	ns	Other transactions with non-controlling interests (d)	-	-	ns

2,922	3,625	3,430	-15%	Net investments (a+b-c-d)	6,547	6,520	-
(41)	7	(99)	ns	Organic loan repayment from equity affiliates* (e)	(34)	(99)	ns
69	166	-	ns	Change in debt from renewable projects financing** (f)	235	-	ns
22	24	-	ns	Capex linked to capitalized leasing contracts (g)	46	-	ns
2,928	3,774	3,331	-12%	Cash flow used in investing activities (a+b-c+e+f-g)	6,702	6,421	+4%

*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

2Q20

1Q20

2Q19

2Q20 vs
2Q19

in millions of dollars

1H20

1H19

1H20
vs
1H19

3,647

4,528

7,208

-49%

Operating cash flow before working capital changes w/o financial charges (DACF)

8,175

13,744

-41%

(499)

(512)

(501)

● Financial charges

(1,011)

(1,004)

3,148

4,016

6,707

-53%

Operating cash flow before working capital changes (a)

7,164

12,740

-44%

431

(884)

(317)

● (Increase) decrease in working capital

(453)

(3,287)

(42)

(1,796)

(40)

● Inventory effect

(1,838)

526

(17)

(44)

● Capital gain from renewable projects sale

(61)

(41)

(99)

● Organic repayment of loans from equity affiliates

(34)

(99)

3,479

1,299

6,251

-44%

Cash flow from operations

4,778

9,880

-52%

2,201

2,523

3,028

-27%

Organic investments (b)

4,724

5,811

-19%

947

1,493

3,679

-74%

Free cash flow after organic investments, w/o net asset sales (a-b)

2,440

6,929

-65%

2,922

3,625

3,430

-15%

Net investments (c)

6,547

6,520

226

391

3,277

-93%

Net cash flow (a-c)

617

6,220

-90%

GEARING RATIO*


in millions of dollars	06/30/2020	03/31/2020	06/30/2019
Current borrowings	16,154	18,521	16,221
Net current financial assets	(6,159)	(6,412)	(3,110)
Net financial assets classified as held for sale	-	-	-
Non-current financial debt	61,540	48,896	45,394
Non-current financial assets	(2,431)	(1,133)	(771)
Cash and cash equivalents	(29,727)	(21,634)	(26,723)

Net debt (a)	39,377	38,238	31,011

of which leases	*7,383*	7,309	7,015
Shareholders’ equity – Group share	101,205	112,006	116,862
Non-controlling interests	2,334	2,428	2,362

Shareholders’ equity (b)	103,539	114,434	119,224

Net-debt-to-capital ratio = a/(a+b)	27.6%	25.0%	20.6%
Net-debt-to-capital ratio excluding leases	23.6%	21.3%	16.8%

*The net-debt-to-capital ratios include the impact of the new IFRS 16 rule, effective January 1, 2019.

RETURN ON AVERAGE CAPITAL EMPLOYED

Twelve months ended June 30, 2020


in millions of dollars	Exploration & Production		Integrated Gas, Renewables & Power		Refining & Chemicals		Marketing & Services
Adjusted net operating income		4,259		2,607		2,489		1,318
Capital employed at 06/30/2019*		90,633		37,290		12,300		8,535
Capital employed at 06/30/2020*		79,096		43,527		12,843		8,366

ROACE		5.0%		6.5%		19.8%		15.6%

Twelve months ended March 31, 2020


in millions of dollars	Exploration & Production		Integrated Gas, Renewables & Power		Refining & Chemicals		Marketing & Services
Adjusted net operating income		6,490		2,710		2,629		1,612
Capital employed at 03/31/2019*		90,051		37,235		13,153		8,255
Capital employed at 03/31/2020*		85,622		44,236		12,878		8,764

ROACE		7.4%		6.7%		20.2%		18.9%

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

MAIN INDICATORS


	$/€	Brent ($/b)		Average liquids price* ($/b)		Average gas price* ($/Mbtu)		Average LNG price ($/Mbtu)**		Variable cost margin, European refining* ($/t)**
Second quarter 2020	1.10		29.6		23.4		2.61		4.40		14.3
First quarter 2020	1.10		50.1		44.4		3.35		6.32		26.3

* Sales in $ / sales in volume for consolidated subsidiaries (excluding stock value variation).

** Sales in $ / sales in volume for consolidated subsidiaries and equity affiliates (excluding stock value variation). This indicator reflects the combined effect of sales volumes and prices of long-term contracts and spot sales. The share of spot sales volumes increased in the second quarter of 2020 compared to the first quarter 2020 due to deferments of some LNG uplifts by some long term contract buyers, while the average long-term contract price was only reduced by 16% because of deferred impact of the oil price decrease.

*** 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 on TOTAL’s reporting and is not audited. To the extent permitted by law, TOTAL SE disclaims all liability from the use of the main indicators.

CONSOLIDATED STATEMENT OF INCOME

TOTAL


(unaudited)
(M$)^(a)	2^nd quarter 2020			1^st quarter 2020			2^nd quarter 2019


Sales		25,730			43,870			51,242
Excise taxes		(4,168)			(5,293	)		(6,040	)
Revenues from sales		21,562			38,577			45,202

Purchases, net of inventory variation		(12,025)			(28,068	)		(30,390	)
Other operating expenses		(6,321)			(6,944	)		(7,078	)
Exploration costs		(114)			(140	)		(170	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(11,593)			(3,635	)		(3,661	)
Other income		362			580			321
Other expense		(108)			(420	)		(189	)

Financial interest on debt		(530)			(569	)		(568	)
Financial income and expense from cash & cash equivalents		50			(155	)		(42	)
Cost of net debt		(480)			(724	)		(610	)

Other financial income		419			188			326
Other financial expense		(161)			(181	)		(188	)

Net income (loss) from equity affiliates		(447)			732			812

Income taxes		484			37			(1,571	)

Consolidated net income		(8,422)			2			2,804

Group share		(8,369)			34			2,756
Non-controlling interests		(53)			(32	)		48

Earnings per share ($)		(3.27)			(0.01	)		1.01

Fully-diluted earnings per share ($)		(3.27)	��		(0.01	)		1.00

(a) Except for per share amounts.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL


(unaudited)
(M$)	2^nd quarter 2020		1^st quarter 2020			2^nd quarter 2019


Consolidated net income		(8,422)		2			2,804


Other comprehensive income

Actuarial gains and losses		(356)		133			(223	)
Change in fair value of investments in equity instruments		90		(164	)		74
Tax effect		101		(15	)		59
Currency translation adjustment generated by the parent company		1,780		(1,976	)		1,057

Items not potentially reclassifiable to profit and loss		1,615		(2,022	)		967

Currency translation adjustment		(919)		(21	)		(619	)
Cash flow hedge		231		(1,524	)		(246	)
Variation of foreign currency basis spread		14		56			43
Share of other comprehensive income of equity affiliates, net amount		296		(1,223	)		(135	)
Other		-		3			1
Tax effect		(78)		445			69

Items potentially reclassifiable to profit and loss		(456)		(2,264	)		(887	)

Total other comprehensive income (net amount)		1,159		(4,286	)		80



Comprehensive income		(7,263)		(4,284	)		2,884

Group share		(7,253)		(4,171	)		2,797
Non-controlling interests		(10)		(113	)		87

CONSOLIDATED STATEMENT OF INCOME

TOTAL


(unaudited)
(M$)^(a)	1^st half 2020		1^st half 2019


Sales		69,600		102,447
Excise taxes		(9,461)		(12,121	)
Revenues from sales		60,139		90,326

Purchases, net of inventory variation		(40,093)		(60,111	)
Other operating expenses		(13,265)		(13,803	)
Exploration costs		(254)		(458	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(15,228)		(7,127	)
Other income		942		568
Other expense		(528)		(398	)

Financial interest on debt		(1,099)		(1,129	)
Financial income and expense from cash & cash equivalents		(105)		(70	)
Cost of net debt		(1,204)		(1,199	)

Other financial income		607		486
Other financial expense		(342)		(383	)

Net income (loss) from equity affiliates		285		1,523

Income taxes		521		(3,480	)

Consolidated net income		(8,420)		5,944

Group share		(8,335)		5,867
Non-controlling interests		(85)		77

Earnings per share ($)		(3.29)		2.17

Fully-diluted earnings per share ($)		(3.29)		2.16

(a) Except for per share amounts.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL


(unaudited)
(M$)	1^st half 2020		1^st half 2019


Consolidated net income		(8,420)		5,944


Other comprehensive income

Actuarial gains and losses		(223)		(59	)
Change in fair value of investments in equity instruments		(74)		107
Tax effect		86		14
Currency translation adjustment generated by the parent company		(196)		(474	)

Items not potentially reclassifiable to profit and loss		(407)		(412	)

Currency translation adjustment		(940)		187
Cash flow hedge		(1,293)		(373	)
Variation of foreign currency basis spread		70		54
Share of other comprehensive income of equity affiliates, net amount		(927)		253
Other		3		2
Tax effect		367		107

Items potentially reclassifiable to profit and loss		(2,720)		230

Total other comprehensive income (net amount)		(3,127)		(182	)



Comprehensive income		(11,547)		5,762

Group share		(11,424)		5,637
Non-controlling interests		(123)		125

CONSOLIDATED BALANCE SHEET

TOTAL


	June 30, 2020		March 31, 2020			December 31, 2019			June 30, 2019

(M$)	(unaudited)		(unaudited)						(unaudited)


ASSETS

Non-current assets
Intangible assets, net		33,114		32,823			33,178			29,229

Property, plant and equipment, net		104,925		113,254			116,408			118,063
Equity affiliates : investments and loans		27,470		26,998			27,122			26,473
Other investments		1,627		1,660			1,778			1,660
Non-current financial assets		2,431		1,133			912			771
Deferred income taxes		7,257		6,694			6,216			6,022
Other non-current assets		2,539		2,537			2,415			2,306

Total non-current assets		179,363		185,099			188,029			184,524


Current assets
Inventories, net		12,688		11,556			17,132			16,410
Accounts receivable, net		13,481		18,029			18,488			20,349
Other current assets		17,155		19,429			17,013			15,958
Current financial assets		6,570		7,016			3,992			3,536
Cash and cash equivalents		29,727		21,634			27,352			26,723
Assets classified as held for sale		421		421			1,288			-

Total current assets		80,042		78,085			85,265			82,976

Total assets		259,405		263,184			273,294			267,500


LIABILITIES & SHAREHOLDERS’ EQUITY

Shareholders’ equity
Common shares		8,159		8,123			8,123			8,301
Paid-in surplus and retained earnings		107,934		119,935			121,170			123,351
Currency translation adjustment		(13,265)		(14,431	)		(11,503	)		(11,177	)
Treasury shares		(1,623)		(1,621	)		(1,012	)		(3,613	)

Total shareholders’ equity - Group share		101,205		112,006			116,778			116,862

Non-controlling interests		2,334		2,428			2,527			2,362

Total shareholders’ equity		103,539		114,434			119,305			119,224


Non-current liabilities
Deferred income taxes		10,346		10,462			11,858			11,486
Employee benefits		3,612		3,260			3,501			3,375
Provisions and other non-current liabilities		19,487		19,452			20,613			21,629
Non-current financial debt		61,540		48,896			47,773			45,394

Total non-current liabilities		94,985		82,070			83,745			81,884


Current liabilities
Accounts payable		19,198		22,123			28,394			27,059
Other creditors and accrued liabilities		24,790		25,102			25,749			22,686
Current borrowings		16,154		18,521			14,819			16,221
Other current financial liabilities		411		604			487			426
Liabilities directly associated with the assets classified as held for sale		328		330			795			-

Total current liabilities		60,881		66,680			70,244			66,392

Total liabilities & shareholders’ equity		259,405		263,184			273,294			267,500

CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL


(unaudited)
(M$)	2^nd quarter 2020		1^st quarter 2020			2^nd quarter 2019


CASH FLOW FROM OPERATING ACTIVITIES

Consolidated net income		(8,422)		2			2,804
Depreciation, depletion, amortization and impairment		11,701		3,730			3,819
Non-current liabilities, valuation allowances and deferred taxes		(796)		(661	)		239
(Gains) losses on disposals of assets		(131)		(209	)		(191	)
Undistributed affiliates’ equity earnings		978		(587	)		(168	)
(Increase) decrease in working capital		431		(884	)		(317	)
Other changes, net		(282)		(92	)		65

Cash flow from operating activities		3,479		1,299			6,251

CASH FLOW USED IN INVESTING ACTIVITIES

Intangible assets and property, plant and equipment additions		(2,409)		(2,364	)		(2,881	)
Acquisitions of subsidiaries, net of cash acquired		-		(188	)		(208	)
Investments in equity affiliates and other securities		(136)		(1,534	)		(437	)
Increase in non-current loans		(733)		(295	)		(370	)

Total expenditures		(3,278)		(4,381	)		(3,896	)
Proceeds from disposals of intangible assets and property, plant and equipment		219		44			155
Proceeds from disposals of subsidiaries, net of cash sold		12		142			(1	)
Proceeds from disposals of non-current investments		20		295			58
Repayment of non-current loans		99		126			353

Total divestments		350		607			565

Cash flow used in investing activities		(2,928)		(3,774	)		(3,331	)

CASH FLOW USED IN FINANCING ACTIVITIES

Issuance (repayment) of shares:
- Parent company shareholders		374		-			449
- Treasury shares		(2)		(609	)		(1,279	)
Dividends paid:
- Parent company shareholders		(1,928)		(1,882	)		(2,935	)
- Non-controlling interests		(76)		-			(93	)
Net issuance (repayment) of perpetual subordinated notes		-		-			-
Payments on perpetual subordinated notes		(134)		(97	)		(175	)
Other transactions with non-controlling interests		(22)		(48	)		-
Net issuance (repayment) of non-current debt		15,430		42			2,331
Increase (decrease) in current borrowings		(6,604)		2,785			37
Increase (decrease) in current financial assets and liabilities		449		(2,995	)		(164	)
Cash flow from (used in) financing activities		7,487		(2,804	)		(1,829	)

Net increase (decrease) in cash and cash equivalents		8,038		(5,279	)		1,091

Effect of exchange rates		55		(439	)		200
Cash and cash equivalents at the beginning of the period		21,634		27,352			25,432

Cash and cash equivalents at the end of the period		29,727		21,634			26,723

CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL


(unaudited)
(M$)	1^st half 2020		1^st half 2019


CASH FLOW FROM OPERATING ACTIVITIES

Consolidated net income		(8,420)		5,944
Depreciation, depletion, amortization and impairment		15,431		7,535
Non-current liabilities, valuation allowances and deferred taxes		(1,457)		379
(Gains) losses on disposals of assets		(340)		(364	)
Undistributed affiliates’ equity earnings		391		(474	)
(Increase) decrease in working capital		(453)		(3,287	)
Other changes, net		(374)		147

Cash flow from operating activities		4,778		9,880

CASH FLOW USED IN INVESTING ACTIVITIES

Intangible assets and property, plant and equipment additions		(4,773)		(5,585	)
Acquisitions of subsidiaries, net of cash acquired		(188)		(208	)
Investments in equity affiliates and other securities		(1,670)		(1,190	)
Increase in non-current loans		(1,028)		(500	)

Total expenditures		(7,659)		(7,483	)
Proceeds from disposals of intangible assets and property, plant and equipment		263		163
Proceeds from disposals of subsidiaries, net of cash sold		154		146
Proceeds from disposals of non-current investments		315		266
Repayment of non-current loans		225		487

Total divestments		957		1,062

Cash flow used in investing activities		(6,702)		(6,421	)

CASH FLOW USED IN FINANCING ACTIVITIES

Issuance (repayment) of shares:
- Parent company shareholders		374		450
- Treasury shares		(611)		(1,770	)
Dividends paid:
- Parent company shareholders		(3,810)		(4,765	)
- Non-controlling interests		(76)		(93	)
Net issuance (repayment) of perpetual subordinated notes		-		-
Payments on perpetual subordinated notes		(231)		(315	)
Other transactions with non-controlling interests		(70)		(150	)
Net issuance (repayment) of non-current debt		15,472		3,581
Increase (decrease) in current borrowings		(3,819)		(1,489	)
Increase (decrease) in current financial assets and liabilities		(2,546)		(58	)
Cash flow from (used in) financing activities		4,683		(4,609	)

Net increase (decrease) in cash and cash equivalents		2,759		(1,150	)

Effect of exchange rates		(384)		(34	)
Cash and cash equivalents at the beginning of the period		27,352		27,907

Cash and cash equivalents at the end of the period		29,727		26,723

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			Paid-in surplus and retained earnings			Currency translation adjustment			Number			Amount			Shareholders’ equity - Group Share			Non- controlling interests			Total shareholders’ equity
As of January 1, 2019		2,640,602,007			8,227			120,569			(11,313	)		(32,473,281	)		(1,843	)		115,640			2,474			118,114
Net income of the first half 2019		-			-			5,867			-			-			-			5,867			77			5,944
Other comprehensive income		-			-			(366	)		136			-			-			(230	)		48			(182	)
Comprehensive Income		-			-			5,501			136			-			-			5,637			125			5,762
Dividend		-			-			(3,875	)		-			-			-			(3,875	)		(93	)		(3,968	)
Issuance of common shares		26,281,753			74			1,271			-			-			-			1,345			-			1,345
Purchase of treasury shares		-			-			-			-			(32,331,446	)		(1,770	)		(1,770	)		-			(1,770	)
Sale of treasury shares^(a)		-			-			-			-			4,010			-			-			-			-
Share-based payments		-			-			103			-			-			-			103			-			103
Share cancellation		-			-			-			-			-			-			-			-			-
Net issuance (repayment) of perpetual subordinated notes		-			-			(5	)		-			-			-			(5	)		-			(5	)
Payments on perpetual subordinated notes		-			-			(207	)		-			-			-			(207	)		-			(207	)
Other operations with non-controlling interests		-			-			-			-			-			-			-			(150	)		(150	)
Other items		-			-			(6	)		-			-			-			(6	)		6			-
As of June 30, 2019		2,666,883,760			8,301			123,351			(11,177	)		(64,800,717	)		(3,613	)		116,862			2,362			119,224
Net income of the second half 2019		-			-			5,400			-			-			-			5,400			94			5,494
Other comprehensive income		-			-			(293	)		(326	)		-			-			(619	)		20			(599	)
Comprehensive Income		-			-			5,107			(326	)		-			-			4,781			114			4,895
Dividend		-			-			(3,855	)		-			-			-			(3,855	)		(22	)		(3,877	)
Issuance of common shares		106,750			-			(6	)		-			-			-			(6	)		-			(6	)
Purchase of treasury shares		-			-			-			-			(20,057,890	)		(1,040	)		(1,040	)		-			(1,040	)
Sale of treasury shares^(a)		-			-			(219	)		-			4,274,938			219			-			-			-
Share-based payments		-			-			104			-			-			-			104			-			104
Share cancellation		(65,109,435	)		(178	)		(3,244	)		-			65,109,435			3,422			-			-			-
Net issuance (repayment) of perpetual subordinated notes		-			-			1			-			-			-			1			-			1
Payments on perpetual subordinated notes		-			-			(146	)		-			-			-			(146	)		-			(146	)
Other operations with non-controlling interests		-			-			55			-			-			-			55			108			163
Other items		-			-			22			-			-			-			22			(35	)		(13	)
As of December 31, 2019		2,601,881,075			8,123			121,170			(11,503	)		(15,474,234	)		(1,012	)		116,778			2,527			119,305
Net income of the first half 2020		-			-			(8,335	)		-			-			-			(8,335	)		(85	)		(8,420	)
Other comprehensive income		-			-			(1,327	)		(1,762	)		-			-			(3,089	)		(38	)		(3,127	)
Comprehensive Income		-			-			(9,662	)		(1,762	)		-			-			(11,424	)		(123	)		(11,547	)
Dividend		-			-			(3,799	)		-			-			-			(3,799	)		(76	)		(3,875	)
Issuance of common shares		13,179,262			36			338			-			-			-			374			-			374
Purchase of treasury shares		-			-			-			-			(13,236,044	)		(611	)		(611	)		-			(611	)
Sale of treasury shares^(a)		-			-			-			-			3,680			-			-			-			-
Share-based payments		-			-			96			-			-			-			96			-			96
Share cancellation		-			-			-			-			-			-			-			-			-
Net issuance (repayment) of perpetual subordinated notes		-			-			-			-			-			-			-			-			-
Payments on perpetual subordinated notes		-			-			(143	)		-			-			-			(143	)		-			(143	)
Other operations with non-controlling interests		-			-			(63	)		-			-			-			(63	)		(7	)		(70	)
Other items		-			-			(3	)		-			-			-			(3	)		13			10
As of June 30, 2020		2,615,060,337			8,159			107,934			(13,265	)		(28,706,598	)		(1,623	)		101,205			2,334			103,539

^(a)Treasury shares related to the restricted stock grants.

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)


2^nd quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		992			3,313			9,433			11,986			6			-			25,730
Intersegment sales		3,097			301			2,956			107			31			(6,492	)		-
Excise taxes		-			-			(469	)		(3,699	)		-			-			(4,168	)
Revenues from sales		4,089			3,614			11,920			8,394			37			(6,492	)		21,562
Operating expenses		(2,405	)		(3,406	)		(10,895	)		(7,931	)		(315	)		6,492			(18,460	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(9,667	)		(1,282	)		(393	)		(229	)		(22	)		-			(11,593	)
Operating income		(7,983	)		(1,074	)		632			234			(300	)		-			(8,491	)
Net income (loss) from equity affiliates and other items		17			21			(35	)		22			40			-			65
Tax on net operating income		398			322			(132	)		(127	)		(26	)		-			435
Net operating income		(7,568	)		(731	)		465			129			(286	)		-			(7,991	)
Net cost of net debt																				(431	)
Non-controlling interests																				53
Net income - group share																				(8,369	)


2^nd quarter 2020 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(18	)		-			-			-			-			(18	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(18	)		-			-			-			-			(18	)
Operating expenses		(27	)		(199	)		(48	)		5			(36	)		-			(305	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,338	)		(953	)		-			-			-			-			(8,291	)
Operating income ^(b)		(7,365	)		(1,170	)		(48	)		5			(36	)		-			(8,614	)
Net income (loss) from equity affiliates and other items		(57	)		(217	)		(63	)		(5	)		-			-			(342	)
Tax on net operating income		63			330			1			-			12			-			406
Net operating income ^(b)		(7,359	)		(1,057	)		(110	)		-			(24	)		-			(8,550	)
Net cost of net debt																				33
Non-controlling interests																				22
Net income - group share																				(8,495	)

^(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		-			-			(26	)		(16	)		-
- On net operating income		-			-			(86	)		(9	)		-


2^nd quarter 2020 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		992			3,331			9,433			11,986			6			-			25,748
Intersegment sales		3,097			301			2,956			107			31			(6,492	)		-
Excise taxes		-			-			(469	)		(3,699	)		-			-			(4,168	)
Revenues from sales		4,089			3,632			11,920			8,394			37			(6,492	)		21,580
Operating expenses		(2,378	)		(3,207	)		(10,847	)		(7,936	)		(279	)		6,492			(18,155	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(2,329	)		(329	)		(393	)		(229	)		(22	)		-			(3,302	)
Adjusted operating income		(618	)		96			680			229			(264	)		-			123
Net income (loss) from equity affiliates and other items		74			238			28			27			40			-			407
Tax on net operating income		335			(8	)		(133	)		(127	)		(38	)		-			29
Adjusted net operating income		(209	)		326			575			129			(262	)		-			559
Net cost of net debt																				(464	)
Non-controlling interests																				31
Adjusted net income - group share																				126


2^nd quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		1,606			1,170			307			174			21						3,278
Total divestments		204			89			22			26			9						350
Cash flow from operating activities		910			1,389			1,080			819			(719	)					3,479

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)



1^st quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		1,582			5,090			18,523			18,675			-			-			43,870
Intersegment sales		5,564			594			6,095			89			28			(12,370	)		-
Excise taxes		-			-			(650	)		(4,643	)		-			-			(5,293	)
Revenues from sales		7,146			5,684			23,968			14,121			28			(12,370	)		38,577
Operating expenses		(3,643	)		(4,992	)		(24,841	)		(13,799	)		(247	)		12,370			(35,152	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(2,644	)		(334	)		(395	)		(244	)		(18	)		-			(3,635	)
Operating income		859			358			(1,268	)		78			(237	)		-			(210	)
Net income (loss) from equity affiliates and other items		423			399			(57	)		10			124			-			899
Tax on net operating income		(454	)		8			335			(32	)		28			-			(115	)
Net operating income		828			765			(990	)		56			(85	)		-			574
Net cost of net debt																				(572	)
Non-controlling interests																				32
Net income - group share																				34


1^st quarter 2020 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			2			-			-			-			-			2
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			2			-			-			-			-			2
Operating expenses		(10	)		(119	)		(1,589	)		(346	)		(55	)		-			(2,119	)
Depreciation, depletion and impairment of tangible assets and mineral interests		-			-			-			-			-			-			-
Operating income ^(b)		(10	)		(117	)		(1,589	)		(346	)		(55	)		-			(2,117	)
Net income (loss) from equity affiliates and other items		128			(75	)		(208	)		-			-			-			(155	)
Tax on net operating income		7			44			425			100			-			-			576
Net operating income ^(b)		125			(148	)		(1,372	)		(246	)		(55	)		-			(1,696	)
Net cost of net debt																				(101	)
Non-controlling interests																				50
Net income - group share																				(1,747	)

^(a)Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
^(b)Of which inventory valuation effect
- On operating income		-			-			(1,578	)		(218	)		-
- On net operating income		-			-			(1,285	)		(154	)		-


1^st quarter 2020 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		1,582			5,088			18,523			18,675			-			-			43,868
Intersegment sales		5,564			594			6,095			89			28			(12,370	)		-
Excise taxes		-			-			(650	)		(4,643	)		-			-			(5,293	)
Revenues from sales		7,146			5,682			23,968			14,121			28			(12,370	)		38,575
Operating expenses		(3,633	)		(4,873	)		(23,252	)		(13,453	)		(192	)		12,370			(33,033	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(2,644	)		(334	)		(395	)		(244	)		(18	)		-			(3,635	)
Adjusted operating income		869			475			321			424			(182	)		-			1,907
Net income (loss) from equity affiliates and other items		295			474			151			10			124			-			1,054
Tax on net operating income		(461	)		(36	)		(90	)		(132	)		28			-			(691	)
Adjusted net operating income		703			913			382			302			(30	)		-			2,270
Net cost of net debt																				(471	)
Non-controlling interests																				(18	)
Adjusted net income - group share																				1,781


1^st quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		1,659			2,291			226			160			45						4,381
Total divestments		121			344			79			46			17						607
Cash flow from operating activities		3,923			(489	)		(1,183	)		(399	)		(553	)					1,299

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)



2^nd quarter 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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	)
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	)
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	)
Net operating income		1,979			426			641			391			(123	)		-			3,314
Net cost of net debt																				(510	)
Non-controlling interests																				(48	)
Net income - group share																				2,756


2^nd quarter 2019 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(59	)		-			-			-			-			(59	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
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	)
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	)
Net operating income ^(b)		(43	)		(3	)		(74	)		(32	)		-			-			(152	)
Net cost of net debt																				(4	)
Non-controlling interests																				25
Net income - group share																				(131	)

^(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		-			-			(6	)		(34	)		-
- On net operating income		-			-			(1	)		(25	)		-


2^nd quarter 2019 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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	)
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	)
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	)
Adjusted net operating income		2,022			429			715			423			(123	)		-			3,466
Net cost of net debt																				(506	)
Non-controlling interests																				(73	)
Adjusted net income - group share																				2,887


2^nd quarter 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)



1^st half 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		2,574			8,403			27,956			30,661			6			-			69,600
Intersegment sales		8,661			895			9,051			196			59			(18,862	)		-
Excise taxes		-			-			(1,119	)		(8,342	)		-			-			(9,461	)
Revenues from sales		11,235			9,298			35,888			22,515			65			(18,862	)		60,139
Operating expenses		(6,048	)		(8,398	)		(35,736	)		(21,730	)		(562	)		18,862			(53,612	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(12,311	)		(1,616	)		(788	)		(473	)		(40	)		-			(15,228	)
Operating income		(7,124	)		(716	)		(636	)		312			(537	)		-			(8,701	)
Net income (loss) from equity affiliates and other items		440			420			(92	)		32			164			-			964
Tax on net operating income		(56	)		330			203			(159	)		2			-			320
Net operating income		(6,740	)		34			(525	)		185			(371	)		-			(7,417	)
Net cost of net debt																				(1,003	)
Non-controlling interests																				85
Net income - group share																				(8,335	)


1^st half 2020 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(16	)		-			-			-			-			(16	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(16	)		-			-			-			-			(16	)
Operating expenses		(37	)		(318	)		(1,637	)		(341	)		(91	)		-			(2,424	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,338	)		(953	)		-			-			-			-			(8,291	)
Operating income ^(b)		(7,375	)		(1,287	)		(1,637	)		(341	)		(91	)		-			(10,731	)
Net income (loss) from equity affiliates and other items		71			(292	)		(271	)		(5	)		-			-			(497	)
Tax on net operating income		70			374			426			100			12			-			982
Net operating income ^(b)		(7,234	)		(1,205	)		(1,482	)		(246	)		(79	)		-			(10,246	)
Net cost of net debt																				(68	)
Non-controlling interests																				72
Net income - group share																				(10,242	)

^(a)Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
^(b)Of which inventory valuation effect
- On operating income		-			-			(1,604	)		(234	)		-
- On net operating income		-			-			(1,371	)		(163	)		-


1^st half 2020 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		2,574			8,419			27,956			30,661			6			-			69,616
Intersegment sales		8,661			895			9,051			196			59			(18,862	)		-
Excise taxes		-			-			(1,119	)		(8,342	)		-			-			(9,461	)
Revenues from sales		11,235			9,314			35,888			22,515			65			(18,862	)		60,155
Operating expenses		(6,011	)		(8,080	)		(34,099	)		(21,389	)		(471	)		18,862			(51,188	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(4,973	)		(663	)		(788	)		(473	)		(40	)		-			(6,937	)
Adjusted operating income		251			571			1,001			653			(446	)		-			2,030
Net income (loss) from equity affiliates and other items		369			712			179			37			164			-			1,461
Tax on net operating income		(126	)		(44	)		(223	)		(259	)		(10	)		-			(662	)
Adjusted net operating income		494			1,239			957			431			(292	)		-			2,829
Net cost of net debt																				(935	)
Non-controlling interests																				13
Adjusted net income - group share																				1,907


1^st half 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		3,265			3,461			533			334			66						7,659
Total divestments		325			433			101			72			26						957
Cash flow from operating activities		4,833			900			(103	)		420			(1,272	)					4,778

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)



1^st half 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		4,067			10,208			44,220			43,950			2			-			102,447
Intersegment sales		15,302			1,259			16,310			301			63			(33,235	)		-
Excise taxes		-			-			(1,537	)		(10,584	)		-			-			(12,121	)
Revenues from sales		19,369			11,467			58,993			33,667			65			(33,235	)		90,326
Operating expenses		(8,234	)		(10,287	)		(56,502	)		(32,178	)		(406	)		33,235			(74,372	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(5,216	)		(643	)		(763	)		(470	)		(35	)		-			(7,127	)
Operating income		5,919			537			1,728			1,019			(376	)		-			8,827
Net income (loss) from equity affiliates and other items		367			1,041			260			101			27			-			1,796
Tax on net operating income		(2,585	)		(623	)		(246	)		(334	)		124			-			(3,664	)
Net operating income		3,701			955			1,742			786			(225	)		-			6,959
Net cost of net debt																				(1,015	)
Non-controlling interests																				(77	)
Net income - group share																				5,867


1^st half 2019 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(86	)		-			-			-			-			(86	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(86	)		-			-			-			-			(86	)
Operating expenses		-			(112	)		449			40			-			-			377
Depreciation, depletion and impairment of tangible assets and mineral interests		(43	)		(11	)		(10	)		-			-			-			(64	)
Operating income ^(b)		(43	)		(209	)		439			40			-			-			227
Net income (loss) from equity affiliates and other items		-			413			(47	)		(7	)		-			-			359
Tax on net operating income		-			(270	)		(121	)		(13	)		-			-			(404	)
Net operating income ^(b)		(43	)		(66	)		271			20			-			-			182
Net cost of net debt																				(8	)
Non-controlling interests																				47
Net income - group share																				221

^(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		-			-			486			40			-
- On net operating income		-			-			344			27			-


1^st half 2019 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		4,067			10,294			44,220			43,950			2			-			102,533
Intersegment sales		15,302			1,259			16,310			301			63			(33,235	)		-
Excise taxes		-			-			(1,537	)		(10,584	)		-			-			(12,121	)
Revenues from sales		19,369			11,553			58,993			33,667			65			(33,235	)		90,412
Operating expenses		(8,234	)		(10,175	)		(56,951	)		(32,218	)		(406	)		33,235			(74,749	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(5,173	)		(632	)		(753	)		(470	)		(35	)		-			(7,063	)
Adjusted operating income		5,962			746			1,289			979			(376	)		-			8,600
Net income (loss) from equity affiliates and other items		367			628			307			108			27			-			1,437
Tax on net operating income		(2,585	)		(353	)		(125	)		(321	)		124			-			(3,260	)
Adjusted net operating income		3,744			1,021			1,471			766			(225	)		-			6,777
Net cost of net debt																				(1,007	)
Non-controlling interests																				(124	)
Adjusted net income - group share																				5,646


1^st half 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		4,282			1,975			648			527			51						7,483
Total divestments		89			574			239			157			3						1,062
Cash flow from operating activities		7,704			1,533			1,120			843			(1,320	)					9,880

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

(unaudited)


							Consolidated
2^nd quarter 2020							statement
(M$)	Adjusted			Adjustments^(a)			of income
Sales		25,748			(18	)		25,730
Excise taxes		(4,168	)		-			(4,168	)
Revenues from sales		21,580			(18	)		21,562

Purchases net of inventory variation		(11,842	)		(183	)		(12,025	)
Other operating expenses		(6,199	)		(122	)		(6,321	)
Exploration costs		(114	)		-			(114	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(3,302	)		(8,291	)		(11,593	)
Other income		240			122			362
Other expense		(103	)		(5	)		(108	)

Financial interest on debt		(527	)		(3	)		(530	)
Financial income and expense from cash & cash equivalents		(3	)		53			50
Cost of net debt		(530	)		50			(480	)

Other financial income		419			-			419
Other financial expense		(160	)		(1	)		(161	)

Net income (loss) from equity affiliates		11			(458	)		(447	)

Income (Expense) taxes		95			389			484
Consolidated net income		95			(8,517	)		(8,422	)
Group share		126			(8,495	)		(8,369	)
Non-controlling interests		(31	)		(22	)		(53	)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

							Consolidated
2^nd quarter 2019							statement
(M$)	Adjusted			Adjustments^(a)			of income
Sales		51,301			(59	)		51,242
Excise taxes		(6,040	)		-			(6,040	)
Revenues from sales		45,261			(59	)		45,202

Purchases net of inventory variation		(30,295	)		(95	)		(30,390	)
Other operating expenses		(7,042	)		(36	)		(7,078	)
Exploration costs		(170	)		-			(170	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(3,597	)		(64	)		(3,661	)
Other income		253			68			321
Other expense		(117	)		(72	)		(189	)

Financial interest on debt		(564	)		(4	)		(568	)
Financial income and expense from cash & cash equivalents		(42	)		-			(42	)
Cost of net debt		(606	)		(4	)		(610	)

Other financial income		326			-			326
Other financial expense		(188	)		-			(188	)

Net income (loss) from equity affiliates		457			355			812

Income (Expense) taxes		(1,322	)		(249	)		(1,571	)
Consolidated net income		2,960			(156	)		2,804
Group share		2,887			(131	)		2,756
Non-controlling interests		73			(25	)		48

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

(unaudited)


							Consolidated
1^st half 2020							statement of
(M$)	Adjusted			Adjustments^(a)			income
Sales		69,616			(16	)		69,600
Excise taxes		(9,461	)		-			(9,461	)
Revenues from sales		60,155			(16	)		60,139

Purchases net of inventory variation		(37,949	)		(2,144	)		(40,093	)
Other operating expenses		(12,985	)		(280	)		(13,265	)
Exploration costs		(254	)		-			(254	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(6,937	)		(8,291	)		(15,228	)
Other income		820			122			942
Other expense		(294	)		(234	)		(528	)

Financial interest on debt		(1,094	)		(5	)		(1,099	)
Financial income and expense from cash & cash equivalents		(13	)		(92	)		(105	)
Cost of net debt		(1,107	)		(97	)		(1,204	)

Other financial income		607			-			607
Other financial expense		(341	)		(1	)		(342	)

Net income (loss) from equity affiliates		669			(384	)		285

Income (Expense) taxes		(490	)		1,011			521
Consolidated net income		1,894			(10,314	)		(8,420	)
Group share		1,907			(10,242	)		(8,335	)
Non-controlling interests		(13	)		(72	)		(85	)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

							Consolidated
1^st half 2019							statement of
(M$)	Adjusted			Adjustments^(a)			income
Sales		102,533			(86	)		102,447
Excise taxes		(12,121	)		-			(12,121	)
Revenues from sales		90,412			(86	)		90,326

Purchases net of inventory variation		(60,533	)		422			(60,111	)
Other operating expenses		(13,758	)		(45	)		(13,803	)
Exploration costs		(458	)		-			(458	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,063	)		(64	)		(7,127	)
Other income		453			115			568
Other expense		(190	)		(208	)		(398	)

Financial interest on debt		(1,121	)		(8	)		(1,129	)
Financial income and expense from cash & cash equivalents		(70	)		-			(70	)
Cost of net debt		(1,191	)		(8	)		(1,199	)

Other financial income		486			-			486
Other financial expense		(383	)		-			(383	)

Net income (loss) from equity affiliates		1,071			452			1,523

Income (Expense) taxes		(3,076	)		(404	)		(3,480	)
Consolidated net income		5,770			174			5,944
Group share		5,646			221			5,867
Non-controlling interests		124			(47	)		77

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

TOTAL

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FIRST SIX MONTHS 2020

(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 SE and its subsidiaries (the Group) as of June 30, 2020, 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 June 30, 2020, are consistent with those used for the financial statements at December 31, 2019, with the exception of standards or amendments that must be applied for periods beginning January 1, 2020.

On January 1, 2020, the Group applied the amendments to IFRS9 and IFRS7 relating to the IBOR reform. The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform, and therefore maintain the hedge accounting qualification of interest rate derivatives. The Group is currently assessing the future impacts of these index changes.

The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2020 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.

These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.

The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2019.

The interim consolidated financial statements are impacted by the Covid-19 and oil crises described in note 7 Other risks and contingent liabilities. The Group has taken this environment into account in its estimates, notably those relating to inventory valuation, asset impairments, employee benefits and income taxes.

As of June 30, 2020, the Group has decided to revise the price assumptions used for its assets impairment tests. Based on these new assumptions, asset impairments were recorded during the period. In line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, the Group has reviewed its oil assets that can be qualified as “stranded”, and therefore has decided to impair its oil sands assets in Canada. These impairments and revised assumptions are presented in note 3.4 Asset impairment.

Moreover, the value of petroleum and petrochemical inventories that are measured, according to the FIFO (First-in, First-Out) method, deteriorated as a result of the significant decrease in prices during the quarter, especially in the Refining and Chemicals business segment.

Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.

Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.

2) Changes in the Group structure

2.1) Main acquisitions and divestments

➣

Integrated Gas, Renewables & Power

•

On February 28, 2020, TOTAL finalized the acquisition of 37.4% interest in Adani Gas Limited, one of the four main distributors of city gas in India. To acquire 37.4% of equity shares of Adani Gas Limited, TOTAL launched a tender offer to public shareholders on October 14, 2019 that ended on January 14, 2020, then acquired the remaining shares from Adani on February 27 and 28, 2020.

➣

Exploration & Production

•

On March 31, 2020, TOTAL finalized the sale of its subsidiary Total E&P Deep Offshore Borneo BV which holds an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei, to Shell.

2.2) Divestment projects

➣

Exploration & Production

•

In May 2020, TOTAL confirmed its commitment to completing the sale of its UK North Sea non-core assets, first announced in July 2019. TOTAL and Norway-based private equity investor HitecVision have successfully renegotiated the financial terms of the deal to respond to the current environment – while Petrogas is no longer part of the transaction. Subject to necessary approvals, the parties expect to complete the transaction by the third quarter of 2020.

•

At June 30, 2020, the assets and liabilities have been respectively classified in the consolidated balance sheet in “asset classified as held for sale” for an amount of $421 million and “liabilities classified as held for sale” for an amount of $328 million. The concerned assets mainly include intangible and tangible assets.

3) Business segment information

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 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;

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.

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 the month-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.

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.

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

The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.

3.1) Information by business segment



1^st half 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		2,574			8,403			27,956			30,661			6			-			69,600
Intersegment sales		8,661			895			9,051			196			59			(18,862	)		-
Excise taxes		-			-			(1,119	)		(8,342	)		-			-			(9,461	)
Revenues from sales		11,235			9,298			35,888			22,515			65			(18,862	)		60,139
Operating expenses		(6,048	)		(8,398	)		(35,736	)		(21,730	)		(562	)		18,862			(53,612	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(12,311	)		(1,616	)		(788	)		(473	)		(40	)		-			(15,228	)
Operating income		(7,124	)		(716	)		(636	)		312			(537	)		-			(8,701	)
Net income (loss) from equity affiliates and other items		440			420			(92	)		32			164			-			964
Tax on net operating income		(56	)		330			203			(159	)		2			-			320
Net operating income		(6,740	)		34			(525	)		185			(371	)		-			(7,417	)
Net cost of net debt																				(1,003	)
Non-controlling interests																				85
Net income - group share																				(8,335	)



1^st half 2020 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(16	)		-			-			-			-			(16	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(16	)		-			-			-			-			(16	)
Operating expenses		(37	)		(318	)		(1,637	)		(341	)		(91	)		-			(2,424	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,338	)		(953	)		-			-			-			-			(8,291	)
Operating income ^(b)		(7,375	)		(1,287	)		(1,637	)		(341	)		(91	)		-			(10,731	)
Net income (loss) from equity affiliates and other items		71			(292	)		(271	)		(5	)		-			-			(497	)
Tax on net operating income		70			374			426			100			12			-			982
Net operating income ^(b)		(7,234	)		(1,205	)		(1,482	)		(246	)		(79	)		-			(10,246	)
Net cost of net debt																				(68	)
Non-controlling interests																				72
Net income - group share																				(10,242	)

^(a)Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
^(b)Of which inventory valuation effect
- On operating income		-			-			(1,604	)		(234	)		-
- On net operating income		-			-			(1,371	)		(163	)		-


1^st half 2020 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		2,574			8,419			27,956			30,661			6			-			69,616
Intersegment sales		8,661			895			9,051			196			59			(18,862	)		-
Excise taxes		-			-			(1,119	)		(8,342	)		-			-			(9,461	)
Revenues from sales		11,235			9,314			35,888			22,515			65			(18,862	)		60,155
Operating expenses		(6,011	)		(8,080	)		(34,099	)		(21,389	)		(471	)		18,862			(51,188	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(4,973	)		(663	)		(788	)		(473	)		(40	)		-			(6,937	)
Adjusted operating income		251			571			1,001			653			(446	)		-			2,030
Net income (loss) from equity affiliates and other items		369			712			179			37			164			-			1,461
Tax on net operating income		(126	)		(44	)		(223	)		(259	)		(10	)		-			(662	)
Adjusted net operating income		494			1,239			957			431			(292	)		-			2,829
Net cost of net debt																				(935	)
Non-controlling interests																				13
Adjusted net income - group share																				1,907


1^st half 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		3,265			3,461			533			334			66						7,659
Total divestments		325			433			101			72			26						957
Cash flow from operating activities		4,833			900			(103	)		420			(1,272	)					4,778



1^st half 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		4,067			10,208			44,220			43,950			2			-			102,447
Intersegment sales		15,302			1,259			16,310			301			63			(33,235	)		-
Excise taxes		-			-			(1,537	)		(10,584	)		-			-			(12,121	)
Revenues from sales		19,369			11,467			58,993			33,667			65			(33,235	)		90,326
Operating expenses		(8,234	)		(10,287	)		(56,502	)		(32,178	)		(406	)		33,235			(74,372	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(5,216	)		(643	)		(763	)		(470	)		(35	)		-			(7,127	)
Operating income		5,919			537			1,728			1,019			(376	)		-			8,827
Net income (loss) from equity affiliates and other items		367			1,041			260			101			27			-			1,796
Tax on net operating income		(2,585	)		(623	)		(246	)		(334	)		124			-			(3,664	)
Net operating income		3,701			955			1,742			786			(225	)		-			6,959
Net cost of net debt																				(1,015	)
Non-controlling interests																				(77	)
Net income - group share																				5,867


1^st half 2019 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(86	)		-			-			-			-			(86	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(86	)		-			-			-			-			(86	)
Operating expenses		-			(112	)		449			40			-			-			377
Depreciation, depletion and impairment of tangible assets and mineral interests		(43	)		(11	)		(10	)		-			-			-			(64	)
Operating income ^(b)		(43	)		(209	)		439			40			-			-			227
Net income (loss) from equity affiliates and other items		-			413			(47	)		(7	)		-			-			359
Tax on net operating income		-			(270	)		(121	)		(13	)		-			-			(404	)
Net operating income ^(b)		(43	)		(66	)		271			20			-			-			182
Net cost of net debt																				(8	)
Non-controlling interests																				47
Net income - group share																				221

^(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		-			-			486			40			-
- On net operating income		-			-			344			27			-


1^st half 2019 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		4,067			10,294			44,220			43,950			2			-			102,533
Intersegment sales		15,302			1,259			16,310			301			63			(33,235	)		-
Excise taxes		-			-			(1,537	)		(10,584	)		-			-			(12,121	)
Revenues from sales		19,369			11,553			58,993			33,667			65			(33,235	)		90,412
Operating expenses		(8,234	)		(10,175	)		(56,951	)		(32,218	)		(406	)		33,235			(74,749	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(5,173	)		(632	)		(753	)		(470	)		(35	)		-			(7,063	)
Adjusted operating income		5,962			746			1,289			979			(376	)		-			8,600
Net income (loss) from equity affiliates and other items		367			628			307			108			27			-			1,437
Tax on net operating income		(2,585	)		(353	)		(125	)		(321	)		124			-			(3,260	)
Adjusted net operating income		3,744			1,021			1,471			766			(225	)		-			6,777
Net cost of net debt																				(1,007	)
Non-controlling interests																				(124	)
Adjusted net income - group share																				5,646


1^st half 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		4,282			1,975			648			527			51						7,483
Total divestments		89			574			239			157			3						1,062
Cash flow from operating activities		7,704			1,533			1,120			843			(1,320	)					9,880



2^nd quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		992			3,313			9,433			11,986			6			-			25,730
Intersegment sales		3,097			301			2,956			107			31			(6,492	)		-
Excise taxes		-			-			(469	)		(3,699	)		-			-			(4,168	)
Revenues from sales		4,089			3,614			11,920			8,394			37			(6,492	)		21,562
Operating expenses		(2,405	)		(3,406	)		(10,895	)		(7,931	)		(315	)		6,492			(18,460	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(9,667	)		(1,282	)		(393	)		(229	)		(22	)		-			(11,593	)
Operating income		(7,983	)		(1,074	)		632			234			(300	)		-			(8,491	)
Net income (loss) from equity affiliates and other items		17			21			(35	)		22			40			-			65
Tax on net operating income		398			322			(132	)		(127	)		(26	)		-			435
Net operating income		(7,568	)		(731	)		465			129			(286	)		-			(7,991	)
Net cost of net debt																				(431	)
Non-controlling interests																				53
Net income - group share																				(8,369	)


2^nd quarter 2020 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(18	)		-			-			-			-			(18	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
Revenues from sales		-			(18	)		-			-			-			-			(18	)
Operating expenses		(27	)		(199	)		(48	)		5			(36	)		-			(305	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,338	)		(953	)		-			-			-			-			(8,291	)
Operating income ^(b)		(7,365	)		(1,170	)		(48	)		5			(36	)		-			(8,614	)
Net income (loss) from equity affiliates and other items		(57	)		(217	)		(63	)		(5	)		-			-			(342	)
Tax on net operating income		63			330			1			-			12			-			406
Net operating income ^(b)		(7,359	)		(1,057	)		(110	)		-			(24	)		-			(8,550	)
Net cost of net debt																				33
Non-controlling interests																				22
Net income - group share																				(8,495	)

^(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		-			-			(26	)		(16	)		-
- On net operating income		-			-			(86	)		(9	)		-


2^nd quarter 2020 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		992			3,331			9,433			11,986			6			-			25,748
Intersegment sales		3,097			301			2,956			107			31			(6,492	)		-
Excise taxes		-			-			(469	)		(3,699	)		-			-			(4,168	)
Revenues from sales		4,089			3,632			11,920			8,394			37			(6,492	)		21,580
Operating expenses		(2,378	)		(3,207	)		(10,847	)		(7,936	)		(279	)		6,492			(18,155	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(2,329	)		(329	)		(393	)		(229	)		(22	)		-			(3,302	)
Adjusted operating income		(618	)		96			680			229			(264	)		-			123
Net income (loss) from equity affiliates and other items		74			238			28			27			40			-			407
Tax on net operating income		335			(8	)		(133	)		(127	)		(38	)		-			29
Adjusted net operating income		(209	)		326			575			129			(262	)		-			559
Net cost of net debt																				(464	)
Non-controlling interests																				31
Adjusted net income - group share																				126


2^nd quarter 2020	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Total expenditures		1,606			1,170			307			174			21						3,278
Total divestments		204			89			22			26			9						350
Cash flow from operating activities		910			1,389			1,080			819			(719	)					3,479



2^nd quarter 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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	)
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	)
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	)
Net operating income		1,979			426			641			391			(123	)		-			3,314
Net cost of net debt																				(510	)
Non-controlling interests																				(48	)
Net income - group share																				2,756


2^nd quarter 2019 (adjustments)^(a)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(M$)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
Non-Group sales		-			(59	)		-			-			-			-			(59	)
Intersegment sales		-			-			-			-			-			-			-
Excise taxes		-			-			-			-			-			-			-
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	)
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	)
Net operating income ^(b)		(43	)		(3	)		(74	)		(32	)		-			-			(152	)
Net cost of net debt																				(4	)
Non-controlling interests																				25
Net income - group share																				(131	)

^(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		-			-			(6	)		(34	)		-
- On net operating income		-			-			(1	)		(25	)		-


2^nd quarter 2019 (adjusted)	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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	)
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	)
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	)
Adjusted net operating income		2,022			429			715			423			(123	)		-			3,466
Net cost of net debt																				(506	)
Non-controlling interests																				(73	)
Adjusted net income - group share																				2,887


2^nd quarter 2019	Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Intercompany			Total
(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

3.2) Reconciliation of the information by business segment with consolidated financial statements


1^st half 2020	Adjusted			Adjustments^(a)			Consolidated statement of income
(M$)	Adjusted			Adjustments^(a)			Consolidated statement of income
Sales		69,616			(16	)		69,600
Excise taxes		(9,461	)		-			(9,461	)
Revenues from sales		60,155			(16	)		60,139

Purchases net of inventory variation		(37,949	)		(2,144	)		(40,093	)
Other operating expenses		(12,985	)		(280	)		(13,265	)
Exploration costs		(254	)		-			(254	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(6,937	)		(8,291	)		(15,228	)
Other income		820			122			942
Other expense		(294	)		(234	)		(528	)

Financial interest on debt		(1,094	)		(5	)		(1,099	)
Financial income and expense from cash & cash equivalents		(13	)		(92	)		(105	)
Cost of net debt		(1,107	)		(97	)		(1,204	)

Other financial income		607			-			607
Other financial expense		(341	)		(1	)		(342	)

Net income (loss) from equity affiliates		669			(384	)		285

Income taxes		(490	)		1,011			521
Consolidated net income		1,894			(10,314	)		(8,420	)
Group share		1,907			(10,242	)		(8,335	)
Non-controlling interests		(13	)		(72	)		(85	)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
1^st half 2019	Adjusted			Adjustments^(a)			Consolidated statement of income
(M$)	Adjusted			Adjustments^(a)			Consolidated statement of income
Sales		102,533			(86	)		102,447
Excise taxes		(12,121	)		-			(12,121	)
Revenues from sales		90,412			(86	)		90,326

Purchases net of inventory variation		(60,533	)		422			(60,111	)
Other operating expenses		(13,758	)		(45	)		(13,803	)
Exploration costs		(458	)		-			(458	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(7,063	)		(64	)		(7,127	)
Other income		453			115			568
Other expense		(190	)		(208	)		(398	)

Financial interest on debt		(1,121	)		(8	)		(1,129	)
Financial income and expense from cash & cash equivalents		(70	)		-			(70	)
Cost of net debt		(1,191	)		(8	)		(1,199	)

Other financial income		486			-			486
Other financial expense		(383	)		-			(383	)

Net income (loss) from equity affiliates		1,071			452			1,523

Income taxes		(3,076	)		(404	)		(3,480	)
Consolidated net income		5,770			174			5,944
Group share		5,646			221			5,867
Non-controlling interests		124			(47	)		77

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.


							Consolidated
2^nd quarter 2020							statement
(M$)	Adjusted			Adjustments^(a)			of income
Sales		25,748			(18	)		25,730
Excise taxes		(4,168	)		-			(4,168	)
Revenues from sales		21,580			(18	)		21,562

Purchases net of inventory variation		(11,842	)		(183	)		(12,025	)
Other operating expenses		(6,199	)		(122	)		(6,321	)
Exploration costs		(114	)		-			(114	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(3,302	)		(8,291	)		(11,593	)
Other income		240			122			362
Other expense		(103	)		(5	)		(108	)

Financial interest on debt		(527	)		(3	)		(530	)
Financial income and expense from cash & cash equivalents		(3	)		53			50
Cost of net debt		(530	)		50			(480	)

Other financial income		419			-			419
Other financial expense		(160	)		(1	)		(161	)

Net income (loss) from equity affiliates		11			(458	)		(447	)

Income taxes		95			389			484
Consolidated net income		95			(8,517	)		(8,422	)
Group share		126			(8,495	)		(8,369	)
Non-controlling interests		(31	)		(22	)		(53	)

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

							Consolidated
2^nd quarter 2019							statement
(M$)	Adjusted			Adjustments^(a)			of income
Sales		51,301			(59	)		51,242
Excise taxes		(6,040	)		-			(6,040	)
Revenues from sales		45,261			(59	)		45,202

Purchases net of inventory variation		(30,295	)		(95	)		(30,390	)
Other operating expenses		(7,042	)		(36	)		(7,078	)
Exploration costs		(170	)		-			(170	)
Depreciation, depletion and impairment of tangible assets and mineral interests		(3,597	)		(64	)		(3,661	)
Other income		253			68			321
Other expense		(117	)		(72	)		(189	)

Financial interest on debt		(564	)		(4	)		(568	)
Financial income and expense from cash & cash equivalents		(42	)		-			(42	)
Cost of net debt		(606	)		(4	)		(610	)

Other financial income		326			-			326
Other financial expense		(188	)		-			(188	)

Net income (loss) from equity affiliates		457			355			812

Income taxes		(1,322	)		(249	)		(1,571	)
Consolidated net income		2,960			(156	)		2,804
Group share		2,887			(131	)		2,756
Non-controlling interests		73			(25	)		48

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

3.3) Adjustment items

The detail of the adjustment items is presented in the table below.


ADJUSTMENTS TO OPERATING INCOME
(M$)		Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Total
2^nd quarter 2020	Inventory valuation effect		-			-			(26	)		(16	)		-			(42	)
	Effect of changes in fair value		-			(100	)		-			-			-			(100	)
	Restructuring charges		-			(10	)		(7	)		-			-			(17	)
	Asset impairment charges		(7,338	)		(953	)		-			-			-			(8,291	)
	Other items		(27	)		(107	)		(15	)		21			(36	)		(164	)
Total			(7,365	)		(1,170	)		(48	)		5			(36	)		(8,614	)
2^nd quarter 2019	Inventory valuation effect		-			-			(6	)		(34	)		-			(40	)
	Effect of changes in fair value		-			(59	)		-			-			-			(59	)
	Restructuring charges		-			-			-			-			-			-
	Asset impairment charges		(43	)		(11	)		(10	)		-			-			(64	)
	Other items		-			(54	)		(37	)		-			-			(91	)
Total			(43	)		(124	)		(53	)		(34	)		-			(254	)
1^st half 2020	Inventory valuation effect		-			-			(1,604	)		(234	)		-			(1,838	)
	Effect of changes in fair value		-			(98	)		-			-			-			(98	)
	Restructuring charges		(10	)		(18	)		(7	)		-			-			(35	)
	Asset impairment charges		(7,338	)		(953	)		-			-			-			(8,291	)
	Other items		(27	)		(218	)		(26	)		(107	)		(91	)		(469	)
Total			(7,375	)		(1,287	)		(1,637	)		(341	)		(91	)		(10,731	)
1^st half 2019	Inventory valuation effect		-			-			486			40			-			526
	Effect of changes in fair value		-			(86	)		-			-			-			(86	)
	Restructuring charges		-			-			-			-			-			-
	Asset impairment charges		(43	)		(11	)		(10	)		-			-			(64	)
	Other items		-			(112	)		(37	)		-			-			(149	)
Total			(43	)		(209	)		439			40			-			227


ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$)		Exploration & Production			Integrated Gas, Renewables & Power			Refining & Chemicals			Marketing & Services			Corporate			Total
2^nd quarter 2020	Inventory valuation effect		-			-			(83	)		(11	)		-			(94	)
	Effect of changes in fair value		-			(80	)		-			-			-			(80	)
	Restructuring charges		-			(10	)		(10	)		-			-			(20	)
	Asset impairment charges		(7,272	)		(829	)		-			-			-			(8,101	)
	Gains (losses) on disposals of assets		-			-			-			-			-			-
	Other items		(77	)		(131	)		(14	)		10			12			(200	)
Total			(7,349	)		(1,050	)		(107	)		(1	)		12			(8,495	)
2^nd quarter 2019	Inventory valuation effect		-			-			(3	)		(25	)		-			(28	)
	Effect of changes in fair value		-			(47	)		-			-			-			(47	)
	Restructuring charges		-			(14	)		(17	)		-			-			(31	)
	Asset impairment charges		(43	)		(6	)		(8	)		-			-			(57	)
	Gains (losses) on disposals of assets		-			-			-			-			-			-
	Other items		-			86			(48	)		(6	)		-			32
Total			(43	)		19			(76	)		(31	)		-			(131	)
1^st half 2020	Inventory valuation effect		-			-			(1,364	)		(144	)		-			(1,508	)
	Effect of changes in fair value		-			(79	)		-			-			-			(79	)
	Restructuring charges		(3	)		(22	)		(75	)		-			-			(100	)
	Asset impairment charges		(7,272	)		(829	)		-			-			-			(8,101	)
	Gains (losses) on disposals of assets		-			-			-			-			-			-
	Other items		51			(256	)		(36	)		(71	)		(142	)		(454	)
Total			(7,224	)		(1,186	)		(1,475	)		(215	)		(142	)		(10,242	)
1^st half 2019	Inventory valuation effect		-			-			341			19			-			360
	Effect of changes in fair value		-			(69	)		-			-			-			(69	)
	Restructuring charges		-			(16	)		(17	)		-			-			(33	)
	Asset impairment charges		(43	)		(6	)		(8	)		-			-			(57	)
	Gains (losses) on disposals of assets		-			-			-			-			-			-
	Other items		-			74			(48	)		(6	)		-			20
Total			(43	)		(17	)		268			13			-			221

3.4) Asset impairment

Impairments relate to certain cash-generating units (CGUs) for which indicators of impairment have been identified, due to changes in operating conditions or the economic environment of the activities concerned.

For the calculation of impairment tests of its assets, TOTAL set in 2019 a price scenario with a 2050 Brent price of 50$/b, in line with the “well below 2°C” scenario of the IEA. This scenario is described in the Universal Registration Document (note 3 of chapter 8).

Given the drop of the oil price in 2020, TOTAL decided to revise the price assumptions over the next years and selected the following profile of the Brent price: 35$/b in 2020, 40$/b in 2021, 50$/b in 2022, 60$/b in 2023; gas prices have been adjusted accordingly.

For the longer term, TOTAL maintains its analysis, that the weakness of investments in the hydrocarbon sector since 2015 accentuated by the health and economic crisis of 2020 will result by 2025 in insufficient worldwide production capacities and a rebound in prices. Beyond 2030, given technological developments, particularly in the transport sector, TOTAL anticipates oil demand will have reached its peak and Brent prices should tend toward the long-term price of 50$/b, in line with the IEA’s SDS scenario.

The average Brent prices over the period 2020-2050 thus stands at 56.8$2020/b.

The future operational costs were determined by taking into account the existing technologies, the fluctuation of prices for petroleum services in line with market developments and the internal cost reduction programs effectively implemented.

The future cash flows are estimated over a period consistent with the life of the assets of the CGUs. They are prepared post-tax and take into account specific risks related to the CGUs’ assets. They are discounted using a 7% post-tax discount rate, this rate being the weighted-average cost of capital estimated from historical market data.

The CGUs of the Exploration & Production segment are defined as oil and gas fields or groups of oil and gas fields with industrial assets enabling the production, treatment and evacuation of the oil and gas. For the first half year 2020, impairments of assets were recognized over CGUs of the Exploration & Production segment for an impact of $(1,878) million in operating income and $(1,798) million in net income, Group share. Impairments recognized in 2020 mainly relate to Canadian oil sands assets.

The CGUs of the Integrated Gas, Renewables & Power segment are subsidiaries or groups of subsidiaries organized by activity or geographical area, and by fields or groups of fields for upstream LNG activities. For the first half year 2020, the Group recorded impairments on CGUs in the Integrated Gas, Renewables & Power segment for $(953) million in operating income and $(829) million in net income, Group share. Impairments recognized in 2020 relate to assets located in Australia.

The CGUs of the Refining & Chemicals segment are defined as legal entities with operational activities for refining and petrochemicals activities. No significant impairment has been recorded for the CGUs of the Refining & Chemicals segment in the first half year 2020.

The CGUs of the Marketing & Services segment are subsidiaries or groups of subsidiaries organized by geographical area. No significant impairment has been recorded for the CGUs of the Marketing & Services segment in the first half year 2020.

In addition, in line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, TOTAL has reviewed its oil assets that can be qualified as stranded, meaning with reserves beyond 20 years and high production costs, whose overall reserves may therefore not be produced by 2050. The only projects identified in this category are the Canadian oil sands projects of Fort Hills and Surmont.

For impairment calculations, TOTAL has decided to take into account only proven reserves on these two assets – unlike general practice which considers so-called proven and probable reserves. This leads to an additional exceptional asset impairment of $(5,460) million in operating income and $(5,474) million in net income, Group share.

Overall, asset impairments were recorded on the second quarter 2020 for an amount of $(8,291) million in operating income and $(8,101) million in net income, Group share, including $(6,988) million on Canadian oil sands assets alone.

These impairments were qualified as adjustment items of the operating income and net income, Group share.

As for sensitivities of the Exploration & Production segment:

a decrease by one point in the discount rate would have a positive impact of approximately $0.2 billion on impairments recorded in operating income and $0.2 billion on impairments recorded in net income, Group share;

an increase by one point in the discount rate would have an additional negative impact of approximately $1.5 billion on impairments recorded in operating income and $1 billion on impairments recorded in net income, Group share;

a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact of approximately $2.9 billion on impairments recorded this quarter in operating income and $1.7 billion on impairments recorded in net income, Group share.

As for sensitivities of upstream LNG activities and CGUs including a material goodwill:

a decrease by one point in the discount rate would have a positive impact of approximately $0.6 billion on impairments recorded in operating income and $0.5 billion on impairments recorded in net income, Group share;

an increase by one point in the discount rate would have an additional negative impact of approximately $0.8 billion on impairments recorded in operating income and $0.6 billion on impairments recorded in net income, Group share;

a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact of approximately $1.9 billion on impairments recorded this quarter in operating income and $1.5 billion on impairments recorded in net income, Group share.

4) Shareholders’ equity

Treasury shares (TOTAL shares held directly by TOTAL SE)

In accordance with the shareholder return policy over 2018-2020 implemented since February 2018, the Company repurchased its own shares until the announcement of the suspension of the share buyback program on March 23, 2020, in the context of the sharp decrease in the crude oil price.

TOTAL SE has also repurchased shares to be allocated to free share grant plans.

As of June 30, 2020, TOTAL SE directly holds 28,706,598 TOTAL shares, representing 1.10% of its share capital, which are deducted from the consolidated shareholders’ equity and allocated as follows:


Shares to be cancelled (1)			23,284,409
including shares repurchased during Q4 2019			11,051,144
Including shares repurchased during Q1 2020			12,233,265
Shares to be allocated as part of free share grant plans (2)			5,422,189
including the 2017 Plan			4,356,044
including the 2018 Plan			1,001,529
including shares intended to be allocated to new share purchase options plans or to new share performance plans			64,616
Total Treasury shares (1)+(2)			28,706,598

Dividend

The Shareholders’ meeting of May 29, 2020 approved the distribution of a dividend of €2.68 per share for the 2019 fiscal year and the payment of a final dividend of €0.68 per share given the three interim dividends that had already been paid. The Board of directors of May 4, 2020 decided to offer the shareholders the option to receive the final 2019 dividend in cash or in new shares of the Company with a discount of 10%, each choice being exclusive of the other.



Dividend 2019	First interim	Second interim	Third interim	Final

Amount	€0.66	€0.66	€0.68	€0.68

Set date	April 25, 2019	July 24, 2019	October 29, 2019	May 29, 2020

Ex-dividend date	September 27, 2019	January 6, 2020	March 30, 2020	June 29, 2020

Payment date	October 1^st, 2019	January 8, 2020	April 1^st, 2020	July 16, 2020

*Option for the scrip dividend*

Issue price	-	-	-	€28.80⁽¹⁾

Number of shares subscribed	-	-	-	38,063,688

⁽¹⁾This price is equal to 90% of the average Euronext Paris opening prices of the TOTAL shares for the twenty trading days preceding the Shareholders’ Meeting of May 29, 2020, reduced by the amount of the final dividend and rounded up to the nearest cent.

Furthermore, the Board of directors, during its July 29, 2020 meeting, set the second interim dividend for the fiscal year 2020 at €0.66 per share, equal to the first interim dividend. The ex-dividend date of this interim dividend will be on January 4, 2021 and it will be paid in cash exclusively on January 11, 2021.



Dividend 2020	First interim	Second interim

Amount	€0.66	€0.66

Set date	May 4, 2020	July 29, 2020

Ex-dividend date	September 25, 2020	January 4, 2021

Payment date	October 2, 2020	January 11, 2021

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 €(2.98) per share for the 2^nd quarter 2020 (€(0.01) per share for the 1^st quarter 2020 and €0.89 per share for the 2^nd quarter 2019). Diluted earnings per share calculated using the same method amounted to €(2.98) per share for the 2^nd quarter 2020 (€(0.01) per share for the 1st quarter 2020 and €0.89 per share for the 2^nd quarter 2019).

Earnings per share are calculated after remuneration of perpetual subordinated notes.

Other comprehensive income

Detail of other comprehensive income is presented in the table below:


(M$)	1^st half 2020					1^st half 2019
Actuarial gains and losses				(223	)				(59	)

Change in fair value of investments in equity instruments				(74	)				107

Tax effect				86					14
Currency translation adjustment generated by the parent company				(196	)				(474	)
Sub-total items not potentially reclassifiable to profit and loss				(407	)				(412	)

Currency translation adjustment				(940	)				187
- unrealized gain/(loss) of the period		(907	)				233
- less gain/(loss) included in net income		33					46

Cash flow hedge				(1,293	)				(373	)
- unrealized gain/(loss) of the period		(1,317	)				(303	)
- less gain/(loss) included in net income		(24	)				70

Variation of foreign currency basis spread				70					54
- unrealized gain/(loss) of the period		42					25
- less gain/(loss) included in net income		(28	)				(29	)

Share of other comprehensive income of equity affiliates, net amount				(927	)				253
- unrealized gain/(loss) of the period		(936	)				265
- less gain/(loss) included in net income		(9	)				12

Other				3					2

Tax effect				367					107
Sub-total items potentially reclassifiable to profit and loss				(2,720	)				230
Total other comprehensive income, net amount				(3,127	)				(182	)

Tax effects relating to each component of other comprehensive income are as follows:



	1^st half 2020									1^st half 2019
(M$)	Pre-tax amount			Tax effect			Net amount			Pre-tax amount			Tax effect			Net amount
Actuarial gains and losses		(223	)		56			(167	)		(59	)		16			(43	)

Change in fair value of investments in equity instruments		(74	)		30			(44	)		107			(2	)		105

Currency translation adjustment generated by the parent company		(196	)		-			(196	)		(474	)		-			(474	)
Sub-total items not potentially reclassifiable to profit and loss		(493	)		86			(407	)		(426	)		14			(412	)

Currency translation adjustment		(940	)		-			(940	)		187			-			187

Cash flow hedge		(1,293	)		389			(904	)		(373	)		125			(248	)

Variation of foreign currency basis spread		70			(22	)		48			54			(18	)		36

Share of other comprehensive income of equity affiliates, net amount		(927	)		-			(927	)		253			-			253

Other		3			-			3			2			-			2
Sub-total items potentially reclassifiable to profit and loss		(3,087	)		367			(2,720	)		123			107			230
Total other comprehensive income		(3,580	)		453			(3,127	)		(303	)		121			(182	)

5) Financial debt

The Group has issued bonds during the first six months of 2020:

Bond 1.491% maturing in April 2027 (EUR 1,500 million);

Bond 1.994% maturing in April 2032 (EUR 1,500 million);

Bond 0.952% maturing in May 2031 (EUR 500 million);

Bond 1.618% maturing in May 2040 (EUR 1,000 million);

Bond 3.127% maturing in May 2050 (USD 2,500 million);

Bond 2.986% maturing in June 2041 (USD 800 million);

Bond 3.386% maturing in June 2060 (USD 800 million).

The Group reimbursed bonds during the first six months of 2020:

Bond 4.750% issued in 2014 and maturing in January 2020 (NZD 100 million);

Bond 2.125% issued in 2014 and maturing in January 2020 (CAD 100 million);

Bond Euribor 3 months + 30 basis points issued in 2014 and maturing in March 2020 (EUR 1,000 million);

Bond Euribor 3 months + 31 basis points issued in 2013 and maturing in May 2020 (EUR 300 million);

Bond 4.450% issued in 2010 and maturing in June 2020 (USD 1,250 million).

In April 2020, the Group has also put in place a new committed syndicated credit line with banking counterparties for an amount of USD 6,350 million and with a 12-month tenor (with the option to extend twice by a further 6 months at TOTAL’s hand).

6) Related parties

The related parties are principally equity affiliates and non-consolidated investments.

There were no major changes concerning transactions with related parties during the first six months of 2020.

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, other than those mentioned below.

Health and oil crises

During the second quarter, the Group faced exceptional circumstances: the COVID-19 health crisis with its impact on the global economy and the oil market crisis with Brent falling sharply to 30 $/b on average, gas prices dropping to historic lows and refining margins collapsing due to weak demand.

Oil prices strengthened since the beginning of June, reaching around 40$/b, benefiting from strong compliance with the OPEC+ quotas and the decline of hydrocarbon production in the United States and Canada as well as a recovery in demand.

The oil environment, however, remains volatile, given the uncertainty around the extent and speed of the global economic recovery post-Covid-19.

The Group demonstrates discipline in the implementation of its 2020 action plan:

Net investments below $14 billion,

Savings of $1 billion on operating costs compared to 2019.

TOTAL will continue to profitably grow in low carbon electricity, particularly in renewables, with close to $2 billion of investments in 2020.

Considering the implementation of the OPEC+ quotas and the situation in Libya, the Group now expects 2020 production to be between 2.9 Mboe/d and 2.95 Mboe/d, with a low point in the third quarter during the summer season. The ramp up of Iara’s second FPSO in Brazil will contribute to production growth in the last part of the year. In the Downstream, high inventory levels continue to weigh on refining margins and utilization rates. In Marketing, activity in Europe returned to 90% of its pre-crisis level since June and the Group anticipates that it will remain at a comparable level in the coming months.

The Group’s priority is to generate a level of cash flow that allows it to continue to invest in profitable projects, to preserve an attractive shareholder return and to maintain a strong balance sheet. To this end, the Group’s teams are focused on the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

Yemen

In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which the Group holds a stake of 39.62%, to stop its commercial production and export of LNG and to declare force majeure to its various stakeholders in 2015. The plant has been put in preservation mode.

8) Post-closing events

There was no post closing event.

TotalEnergies SE (TTE) 6-K2020 Q2 Current report (foreign)