Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information on pages 1-15 in this exhibit concerning TOTAL S.A. and its subsidiaries and affiliates (collectively, “TOTAL” or the “Group”) with respect to the fourth quarter of 2017 and year ended December 31, 2017, has been derived from TOTAL’s unaudited consolidated balance sheets as of December 31, 2017 and unaudited statements of income, comprehensive income, cash flow and changes in equity and business segment information for the fourth quarter of 2017 and year ended December 31, 2017 presented on pages 16 to 30 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, 2016, filed with the Securities and Exchange Commission (“SEC”) on March 17, 2017.
| A. | KEY FIGURES |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars except earnings per share and number of shares | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||
| 47,351 | 43,044 | 42,275 | +12% | Non-Group sales | 171,493 | 149,743 | +15% | |||||||||||||||||
| Adjusted net operating income from business segments(a) | ||||||||||||||||||||||||
| 1,805 | 1,439 | 1,007 | +79% | • Exploration & Production | 5,985 | 3,217 | +86% | |||||||||||||||||
| 232 | 97 | 132 | +76% | • Gas, Renewables & Power | 485 | 439 | +10% | |||||||||||||||||
| 886 | 1,020 | 1,131 | -22% | • Refining & Chemicals | 3,790 | 4,195 | -10% | |||||||||||||||||
| 436 | 506 | 406 | +7% | • Marketing & Services | 1,676 | 1,559 | +8% | |||||||||||||||||
| 657 | 500 | 409 | +61% | Equity in net income (loss) of affiliates | 2,015 | 2,214 | -9% | |||||||||||||||||
| 0.37 | 1.06 | 0.20 | +85% | Fully-diluted earnings per share ($) | 3.34 | 2.51 | +33% | |||||||||||||||||
| 2,536 | 2,505 | 2,433 | +4% | Fully-diluted weighted-average shares (millions) | 2,495 | 2,390 | +4% | |||||||||||||||||
| 1,021 | 2,724 | 548 | +86% | Net income (Group share) | 8,631 | 6,196 | +39% | |||||||||||||||||
| 5,103 | 3,910 | 5,855 | -13% | Investments(b) | 16,896 | 20,530 | -18% | |||||||||||||||||
| 1,467 | 539 | 927 | +58% | Divestments(c) | 5,264 | 2,877 | +83% | |||||||||||||||||
| 3,638 | 3,373 | 4,928 | -26% | Net investments(d) | 11,636 | 17,757 | -34% | |||||||||||||||||
| 4,442 | 3,060 | 4,728 | -6% | Organic investments(e) | 14,395 | 17,484 | -18% | |||||||||||||||||
| 107 | 542 | 651 | -84% | Resource acquisitions | 714 | 780 | -8% | |||||||||||||||||
| 8,615 | 4,363 | 7,018 | +23% | Cash flow from operations | 22,319 | 16,521 | +35% | |||||||||||||||||
| 2,206 | (1,057 | ) | 1,913 | +15% | •Includes (increase)/decrease in working capital(f) | 827 | (1,119 | ) | n/a | |||||||||||||||
| (a) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See “Analysis of business segment results” below for further details. | |
| (b) | Including acquisitions and increases in non-current loans. | |
| (c) | Including divestments and reimbursements of non-current loans. | |
| (d) | “Net investments” = gross investments – divestments – repayment of non-current loans – other operations with non-controlling interests. | |
| (e) | “Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. See page 11 of this exhibit. | |
| (f) | The change in working capital as determined using the replacement cost method was $2,660 million in 4Q17, $(796) million in 3Q17, $2,260 million in 4Q16, $1,184 million in 2017 and $(467) million in 2016. For information on the replacement cost method, refer to the introduction to “B. Analysis of business segment results”. See also “C. Group results — Cash flow”. |
| 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
| 1 |
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 24-30 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. | Exploration & Production segment |
 | Environment — liquids and gas price realizations(a) |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | hydrocarbon production | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 61.3 | 52.1 | 49.3 | +24% | Brent ($/b) | 54.2 | 43.7 | +24% | |||||||||||||||||||||
| 57.6 | 48.9 | 46.1 | +25% | Average liquids price ($/b) | 50.2 | 40.3 | +25% | |||||||||||||||||||||
| 4.23 | 4.05 | 3.89 | +9% | Average gas price ($/Mbtu) | 4.08 | 3.56 | +15% | |||||||||||||||||||||
| 43.3 | 38.2 | 35.6 | +22% | Average hydrocarbons price ($/boe) | 38.7 | 31.9 | +21% | |||||||||||||||||||||
| (a) | Consolidated subsidiaries, excluding fixed margins. |
| Production |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | hydrocarbon production | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 2,613 | 2,581 | 2,462 | +6% | Combined production (kboe/d) | 2,566 | 2,452 | +5% | |||||||||||||||||||||
| 1,389 | 1,392 | 1,257 | +11% | • Liquids (kb/d) | 1,346 | 1,271 | +6% | |||||||||||||||||||||
| 6,832 | 6,247 | 6,597 | +4% | • Gas (Mcf/d) | 6,662 | 6,447 | +3% | |||||||||||||||||||||
| 2 |
Hydrocarbon production was 2,613 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter of 2017, an increase of close to 6% compared to 2016, due to the following:
| • | +6% due to new start-ups and ramp-ups, notably Moho Nord, Kashagan, Edradour-Glenlivet, Yamal LNG and Angola LNG; | |
| • | +3% portfolio effect, mainly due to taking over the giant Al-Shaheen oil field concession in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of the Republic of the Congo and asset sales in Norway; | |
| • | +1% related to improved security conditions in Libya and Nigeria; | |
| • | -1% related to the PSC price effect(1) and OPEC quotas; and | |
| • | -3% due to natural field decline and the interruption of production on Elgin-Franklin following the rupture of the Forties pipeline. |
For the full-year 2017, hydrocarbon production was 2,566 kboe/d, an increase of 5% compared to 2016, due to the following:
| • | +5% due to new start-ups and ramp-ups, notably Moho Nord, Kashagan, Edradour-Glenlivet and Angola LNG; | |
| • | +2% portfolio effect, mainly due to taking over the giant Al-Shaheen oil field concession in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of the Republic of the Congo and asset sales in Norway; | |
| • | +1% related to improved security conditions in Libya and Nigeria; and | |
| • | -3% due to natural field decline, the PSC price effect and OPEC quotas. |
| Results |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 2,185 | 2,121 | 2,066 | +6% | Non-Group sales | 8,477 | 7,629 | +11% | |||||||||||||||||||||
| (5 | ) | 1,606 | (800 | ) | +99% | Operating income | 2,792 | (431 | ) | n/a | ||||||||||||||||||
| 348 | 521 | 25 | x13.9 | Equity in income (loss) of affiliates and other items | 1,546 | 1,375 | +12% | |||||||||||||||||||||
| 42.8 | % | 42.8 | % | 47.1 | % | Effective tax rate(a) | 41.2 | % | 27.7 | % | ||||||||||||||||||
| (537 | ) | (745 | ) | (53 | ) | x10.1 | Tax on net operating income | (2,233 | ) | 401 | n/a | |||||||||||||||||
| (194 | ) | 1,382 | (828 | ) | +77% | Net operating income | 2,105 | 1,345 | +57% | |||||||||||||||||||
| 1,999 | 57 | 1,835 | +9% | Adjustments affecting net operating income | 3,880 | 1,872 | x2.1 | |||||||||||||||||||||
| 1,805 | 1,439 | 1,007 | +79% | Adjusted net operating income(b) | 5,985 | 3,217 | +86% | |||||||||||||||||||||
| 419 | 435 | 429 | -2% | • Including income from equity affiliates | 1,542 | 1,363 | +13% | |||||||||||||||||||||
| 3,490 | 3,228 | 4,833 | -28% | Investments | 12,802 | 16,085 | -20% | |||||||||||||||||||||
| 1,334 | 339 | 818 | +63% | Divestments | 1,918 | 2,187 | -12% | |||||||||||||||||||||
| 3,120 | 2,388 | 3,705 | -16% | Organic investments | 11,310 | 14,464 | -22% | |||||||||||||||||||||
| 3,826 | 2,633 | 4,039 | -5% | Cash flow from operations | 11,459 | 9,010 | +27% | |||||||||||||||||||||
| (a) | “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). | |
| (b) | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
The Exploration & Production segment’s adjusted net operating income was:
| • | $1,805 million in the fourth quarter 2017, an increase of 79% compared to the fourth quarter 2016, notably due to production growth, cost reductions and an increase in oil and gas prices; and | |
| • | $5,985 million for the full-year 2017, an increase of 86% compared to 2016, for the same reasons as above. |
| (1) | The “price effect” refers to the impact of changing hydrocarbon prices on entitlement volumes from production sharing and buyback contracts. For example, as the price of oil or gas increases above certain pre-determined levels, TOTAL’s share of production normally decreases. |
| 3 |
The effective tax rate increased from 27.7% in 2016 compared to 41.2% in 2017, in line with the rise in hydrocarbon prices.
Technical costs for consolidated affiliates, calculated in accordance with ASC 932(1), continue to fall, to $19.5/boe in 2017 compared to $20.4/boe in 2016. This decrease was mainly due to the reduction in operating costs from $5.9/boe in 2016 to $5.4/boe in 2017.
Adjusted net operating income for the Exploration & Production segment excludes special items. In the fourth quarter of 2017, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $1,999 million, consisting essentially of an impairment of Gladstone LNG in Australia and assets in Congo, compared to a positive impact of $1,835 million in the fourth quarter of 2016, consisting essentially of impairments on Gladstone LNG in Australia, Angola LNG, and Laggan-Tormore in the United Kingdom, reflecting the decrease in gas price assumptions for the coming years.
The segment’s cash flow from operating activities was $3,826 million in the fourth quarter of 2017, a decrease of 5% compared to $4,039 million in the fourth quarter of 2016. Operating cash flow in the fourth quarter of 2017 excluding the change in working capital at replacement cost of $(89) million ($1,144 million in the fourth quarter of 2016) was $3,915 million(2), an increase of 35% compared to $2,895 million in the fourth quarter of 2016, notably due to increases in production, hydrocarbon prices and lower operating costs. Operating cash flow for the fourth quarter of 2017 excluding the change in working capital at replacement cost and without financial charges was $4,263 million compared to $3,142 million in the fourth quarter of 2016, an increase of 36%.
For the full-year 2017, the segment’s cash flow from operating activities was $11,459 million, an increase of 27% compared to $9,010 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost of $(1,932) million ($(726) million in 2016) was $13,391 million compared to $9,736 million in 2016, an increase of 38% whereas oil prices only increased by 24%, notably due to production ramp-ups on major projects started up since 2016, including Kashagan and Moho Nord, the increase in hydrocarbon prices and operating cost reductions. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and without financial charges was $14,753 million compared to $10,592 million in 2016, an increase of 27%.
| (1) | FASB Accounting Standards Codification Topic 932, Extractive industries – Oil and Gas. | |
| (2) | 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 the introduction to “B. Analysis of business segment results”, above. |
| 4 |
| B.2. | Gas, Renewables & Power segment |
| Results |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 4,083 | 2,903 | 3,675 | +11% | Non-Group sales | 12,854 | 10,124 | +27% | |||||||||||||||||||||
| (310 | ) | 21 | (59 | ) | x5.3 | Operating income | (276 | ) | (161 | ) | -71% | |||||||||||||||||
| 51 | 12 | (50 | ) | n/a | Equity in income (loss) of affiliates and other items | 31 | 71 | -56% | ||||||||||||||||||||
| (86 | ) | 7 | (5 | ) | x17.2 | Tax on net operating income | (140 | ) | (4 | ) | x35.0 | |||||||||||||||||
| (345 | ) | 40 | (114 | ) | x3.0 | Net operating income | (385 | ) | (94 | ) | x4.1 | |||||||||||||||||
| 577 | 57 | 246 | x2.3 | Adjustments affecting net operating income | 870 | 533 | +63% | |||||||||||||||||||||
| 232 | 97 | 132 | +76% | Adjusted net operating income(a) | 485 | 439 | +10% | |||||||||||||||||||||
| 306 | 99 | (118 | ) | n/a | Investments | 797 | 1,221 | -35% | ||||||||||||||||||||
| 46 | ― | 29 | +59% | Divestments | 73 | 166 | -56% | |||||||||||||||||||||
| 85 | 98 | (57 | ) | n/a | Organic investments | 353 | 270 | +31% | ||||||||||||||||||||
| 657 | 325 | 732 | -10% | Cash flow from operations | 993 | 538 | +85% | |||||||||||||||||||||
| (a) | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Adjusted net operating income for the Gas, Renewables & Power segment was $232 million in the fourth quarter 2017, including in particular the delivery of the El Pelicano solar farm in Chile, compared to $132 million in the fourth quarter of 2016, an increase of 76%. In 2017, adjusted net operating income increased by 10% compared to 2016.
Adjusted net operating income for the Gas, Renewables & Power segment excludes special items. In the fourth quarter of 2017, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $577 million compared to a positive impact of $246 million in the fourth quarter of 2016.
The segment’s cash flow from operating activities was $657 million in the fourth quarter of 2017, a decrease of 10% compared to $732 million in the fourth quarter of 2016. Operating cash flow in the fourth quarter of 2017 excluding the change in working capital at replacement cost of $642 million ($629 million in the fourth quarter of 2016) was $15 million, a decrease of 85% compared to $103 million in the fourth quarter of 2016. Operating cash flow for the fourth quarter of 2017 excluding the change in working capital at replacement cost and without financial charges was $25 million compared to $124 million in the fourth quarter of 2016, a decrease of 80%.
For the full-year 2017, the segment’s cash flow from operating activities was $993 million, an increase of 85% compared to $538 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost of $761 million ($413 million in 2016) was $232 million, an increase of 86% compared to $125 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and without financial charges was $294 million compared to $176 million in 2016, an increase of 67%.
| 5 |
| B.3. | Refining & Chemicals segment |
| Refinery throughput and utilization rates(a) |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | 2017 | 2016 | 2017 vs 2016 | ||||||||||||||||||||||
| 1,842 | 1,877 | 2,010 | -8% | Total refinery throughput (kb/d) | 1,827 | 1,965 | -7% | |||||||||||||||||||||
| 648 | 648 | 717 | -10% | • France | 624 | 669 | -7% | |||||||||||||||||||||
| 784 | 802 | 787 | ― | • Rest of Europe | 767 | 802 | -4% | |||||||||||||||||||||
| 410 | 427 | 506 | -19% | • Rest of world | 436 | 494 | -12% | |||||||||||||||||||||
| 91 | % | 90 | % | 87 | % | Utilization rates based on crude only(b) | 88 | % | 85 | % | ||||||||||||||||||
| (a) | Includes share of TotalErg, and African refineries reported in the Marketing & Services segment. | ||
| (b) | Based on distillation capacity at the beginning of the year. | ||
Refinery throughput:
| • | decreased by 8% in the fourth quarter of 2017 compared to the fourth quarter of 2016, mainly as a result of the ending of oil refining at La Mède and maintenance activities at the Port Arthur refinery in the United States; and | |
| • | decreased by 7% for the full-year 2017 compared to 2016 as a result of the definitive ending of distillation capacity at La Mède (France) and Lindsey (UK) and the temporary shutdown due to Hurricane Harvey in the United States. |
| Results |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 35.5 | 48.2 | 41.0 | -13% | European refining margin indicator - ERMI ($/t) | 40.9 | 34.1 | +20% | |||||||||||||||||||||
| 20,661 | 18,923 | 19,077 | +8% | Non-Group sales | 75,505 | 65,632 | +15% | |||||||||||||||||||||
| 1,248 | 1,348 | 1,593 | -22% | Operating income | 4,170 | 4,991 | -16% | |||||||||||||||||||||
| 199 | 179 | 162 | +23% | Equity in income (loss) of affiliates and other items | 2,979 | 779 | x3.8 | |||||||||||||||||||||
| (67 | ) | (379 | ) | (392 | ) | -83% | Tax on net operating income | (944 | ) | (1,244 | ) | -24% | ||||||||||||||||
| 1,380 | 1,148 | 1,363 | +1% | Net operating income | 6,205 | 4,526 | +37% | |||||||||||||||||||||
| (494 | ) | (128 | ) | (232 | ) | x2.1 | Adjustments affecting net operating income | (2,415 | ) | (331 | ) | x7.3 | ||||||||||||||||
| 886 | 1,020 | 1,131 | -22% | Adjusted net operating income(a) | 3,790 | 4,195 | -10% | |||||||||||||||||||||
| 710 | 357 | 566 | +25% | Investments | 1,734 | 1,861 | -7% | |||||||||||||||||||||
| 36 | 24 | 15 | x2.4 | Divestments | 2,820 | 88 | x32 | |||||||||||||||||||||
| 684 | 338 | 548 | +25% | Organic investments | 1,625 | 1,642 | -1% | |||||||||||||||||||||
| 3,041 | 662 | 1,746 | +74% | Cash flow from operations | 7,440 | 4,585 | +62% | |||||||||||||||||||||
| (a) | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
The Group’s European refining margin indicator (“ERMI”) increased to $40.9/t on average in 2017, due to elevated petroleum product demand. Petrochemicals continued to benefit from a favorable environment albeit down compared to a year ago.
The Refining & Chemicals segment’s adjusted net operating income was:
| • | $886 million in the fourth quarter of 2017, a decrease of 22% compared to 2016 due to maintenance activities at Port Arthur in the United States and the sale of Atotech; and |
| • | $3,790 million for the full-year 2017, a decrease of 10% compared to 2016, notably due to the impact of Hurricane Harvey, the impact of modernization work on the Antwerp platform and the sale of Atotech in early 2017 as well as lower trading results due to the evolution of the market into backwardation. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter of 2017, the exclusion of the inventory valuation effect had a negative impact on the segment’s adjusted net operating income of $354 million compared to a negative impact of $281 million in the fourth quarter of 2016. The exclusion of special items in the fourth quarter of 2017 had a negative impact on the segment’s adjusted net operating income of $140 million compared to a positive impact of $49 million in the fourth quarter of 2016.
| 6 |
The segment’s cash flow from operating activities was $3,041 million in the fourth quarter of 2017, an increase of 74% compared to $1,746 million in the fourth quarter of 2016. Operating cash flow in the fourth quarter of 2017 excluding the change in working capital at replacement cost of $1,888 million ($381 million in the fourth quarter of 2016) was $1,153 million, a decrease of 16% compared to $1,365 million in the fourth quarter of 2016. Operating cash flow for the fourth quarter of 2017 excluding the change in working capital at replacement cost and without financial charges was $1,142 million compared to $1,368 million in the fourth quarter of 2016, a decrease of 17%.
For the full-year 2017, the segment’s cash flow from operating activities was $7,440 million, an increase of 62% compared to $4,585 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost of $2,683 million ($(289) million in 2016) was $4,757 million, a decrease of 2% compared to $4,874 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and without financial charges was $4,728 million compared to $4,873 million in 2016, a decrease of 3%.
| B.4. | Marketing & Services segment |
| Petroleum product sales |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | sales in kb/d(a) | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 1,821 | 1,807 | 1,808 | +1% | Total Marketing & Services sales | 1,779 | 1,793 | -1% | |||||||||||||||||||||
| 1,046 | 1,072 | 1,123 | -7% | • Europe | 1,049 | 1,093 | -4% | |||||||||||||||||||||
| 775 | 735 | 685 | +13% | • Rest of world | 730 | 700 | +4% | |||||||||||||||||||||
| (a) | Excludes trading and bulk refining sales (see page 12 of this exhibit); includes share of TotalErg. |
Petroleum product sales were generally stable compared to the previous year, with a move toward Africa and Asia where the Group has strong growth. European sales were affected by the divestment of mature LPG distribution activities in Belgium and Germany.
| Results |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 20,419 | 19,086 | 17,454 | +17% | Non-Group sales | 74,634 | 66,351 | +12% | |||||||||||||||||||||
| 511 | 574 | 398 | +28% | Operating income | 1,819 | 1,789 | +2% | |||||||||||||||||||||
| 76 | 133 | 41 | +85% | Equity in income (loss) of affiliates and other items | 497 | 170 | x2.9 | |||||||||||||||||||||
| (157 | ) | (173 | ) | (132 | ) | +19% | Tax on net operating income | (561 | ) | (541 | ) | +4% | ||||||||||||||||
| 430 | 534 | 307 | +40% | Net operating income | 1,755 | 1,418 | +24% | |||||||||||||||||||||
| 6 | (28 | ) | 99 | -94% | Adjustments affecting net operating income | (79 | ) | 141 | n/a | |||||||||||||||||||
| 436 | 506 | 406 | +7% | Adjusted net operating income(a) | 1,676 | 1,559 | +8% | |||||||||||||||||||||
| 570 | 190 | 500 | +14% | Investments | 1,457 | 1,245 | +17% | |||||||||||||||||||||
| 45 | 150 | 65 | -31% | Divestments | 413 | 424 | -3% | |||||||||||||||||||||
| 533 | 205 | 460 | +16% | Organic investments | 1,019 | 1,003 | +2% | |||||||||||||||||||||
| 992 | 596 | 340 | x2.9 | Cash flow from operations | 2,130 | 1,754 | +21% | |||||||||||||||||||||
| (a) | Detail of adjustment items shown in the business segment information starting on page 24 of this exhibit. |
Marketing & Services results continue to grow in a context of strong retail margins, notably in Africa. Compared to a year ago, adjusted net operating income increased by 7% to $436 million in the fourth quarter of 2017, and by 8% to $1,676 million for the full-year 2017.
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the fourth quarter of 2017, the exclusion of the inventory valuation effect had a negative impact on the segment’s adjusted net operating income of $11 million compared to a positive impact of $14 million in the fourth quarter of
| 7 |
2016. The exclusion of special items in the fourth quarter of 2017 had a positive impact on the segment’s adjusted net operating income of $17 million compared to a positive impact of $85 million in the fourth quarter of 2016.
The segment’s cash flow from operating activities was $992 million in the fourth quarter of 2017, 2.9 times higher than $340 million in the fourth quarter of 2016. Operating cash flow in the fourth quarter of 2017 excluding the change in working capital at replacement cost of $371 million ($(77) million in the fourth quarter of 2016) was $621 million, an increase of 49% compared to $417 million in the fourth quarter of 2016. Operating cash flow for the fourth quarter of 2017 excluding the change in working capital at replacement cost and without financial charges was $644 million compared to $440 million in the fourth quarter of 2016, an increase of 46%.
For the full-year 2017, the segment’s cash flow from operating activities was $2,130 million, an increase of 21% compared to $1,754 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost of $(21) million ($(133) million in 2016) was $2,151 million, an increase of 14% compared to $1,887 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and without financial charges was $2,242 million compared to $1,996 million in 2016, an increase of 14%.
| C. | GROUP RESULTS |
| Net income (Group share) |
Net income (Group share) was $1,021 million in the fourth quarter of 2017, an increase of 86% compared to $548 million in the fourth quarter of 2016. It was $8,631 million for the full-year 2017 compared to $6,196 million in 2016, an increase of 39%.
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value.
Total adjustments affecting net income (Group share)(1) were:
| • | -$1,851 million in the fourth quarter of 2017, including an impairment of Gladstone LNG in Australia and assets in Congo; and | |
| • | -$1,947 million for the full-year 2017, including mainly an impairment of Fort Hills in Canada, Gladstone LNG in Australia and assets in Congo, partially offset by a gain on the sale of Atotech. |
Adjusted net income was $2,872 million in the fourth quarter of 2017, an increase of 19% compared to the fourth quarter of 2016, and $10,578 million for the full-year 2017, an increase of 28% compared to $8,287 million in 2016. The increase was the result of a much higher contribution from Exploration & Production and the continued decrease in the Group’s breakeven.
The number of fully-diluted shares was 2,536 million on December 31, 2017, compared to 2,436 million on December 31, 2016.
| Divestments — acquisitions |
Asset sales completed were:
| • | $1,119 million in the fourth quarter of 2017, comprised mainly of the sale of mature assets in Gabon, Gina Krog in Norway and part of the interest in the Fort Hills project in Canada, compared to $416 million in the fourth quarter of 2016; and | |
| • | $4,239 million for the full-year 2017, essentially comprised of the sale of Atotech, mature assets in Gabon, Gina Krog in Norway, part of the interest in the Fort Hills project in Canada, the SPMR pipeline and LPG activities in Germany, compared to $1,864 million in 2016. |
| (1) | Details shown on page 13 of this exhibit. |
| 8 |
Acquisitions completed were:
| • | $313 million in the fourth quarter of 2017, mainly comprised of the acquisitions of a 23% equity share in EREN Renewable Energy and a 12.5% equity share in the Anchor license in the United States, compared to $616 million in the fourth quarter of 2016; and | |
| • | $1,476 million for the full-year 2017, mainly comprised of the bonus related to the license for Elk-Antelope in Papua New Guinea, a marketing and logistics network in East Africa and a 23% equity share in Tellurian, compared to $2,033 million in 2016. |
In addition, in early January 2018, the Group finalized the acquisition of assets in Brazil from Petrobras for $1.95 billion as well as the sale of TotalErg in Italy for $415 million (including the B2B and LPG business).
| Cash flow |
The Group’s cash flow from operating activities in the fourth quarter of 2017 was $8,615 million, an increase of 23% compared to $7,018 million in the fourth quarter of 2016. The change in working capital at replacement cost in the fourth quarter of 2017, which is the (increase)/decrease in working capital of $2,206 million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $454 million, was $2,660 million compared to $2,260 million in the fourth quarter of 2016. Operating cash flow excluding the change in working capital at replacement cost in the fourth quarter of 2017 was $5,955 million, an increase of 25% compared to $4,758 million in the fourth quarter of 2016. Operating cash flow for the fourth quarter of 2017 excluding the change in working capital at replacement cost and without financial charges (debt adjusted cash flow, “DACF”) was $6,233 million, an increase of 26% compared to $4,964 million in the fourth quarter of 2016. The Group’s net cash flow(1) was $2,317 million in the fourth quarter of 2017 compared to $(170) million in the fourth quarter of 2016, mainly due to the increase in operating cash flow before working capital changes and the increase in asset sales this quarter, leading to a decrease in net investments.
For the full-year 2017, the Group’s cash flow from operating activities was $22,319 million, an increase of 35% compared to $16,521 million in 2016. The change in working capital at replacement cost for the full-year 2017, which is the (increase)/decrease in working capital of $827 million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $357 million, was $1,184 million compared to $(467) million in 2016. Operating cash flow excluding the change in working capital at replacement cost for the full-year 2017 was $21,135 million, an increase of 24% compared to $16,988 million in 2016. Operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and without financial charges (DACF) was $22,183 million, an increase of 26% compared to $17,581 million in 2016. The Group’s net cash flow was $9,499 million for the full-year 2017 compared to $(769) million in 2016, mainly due to the nearly $4 billion increase in operating cash flow before working capital changes, the decrease in net investments related to the $3 billion decrease in organic investments and the sale of Atotech.
| D. | RETURN ON EQUITY |
Return on equity for the twelve months ended December 31, 2017, was 10.1%, an increase compared to last year.
| in millions of dollars | 01/01/2017 – 12/31/2017 | 10/01/2016 – 09/30/2017 | 01/01/2016 – 12/31/2016 | |||||||||
| Adjusted net income | 10,762 | 10,244 | 8,447 | |||||||||
| Average adjusted shareholders’ equity | 106,078 | 105,130 | 96,929 | |||||||||
| Return on equity (ROE) | 10.1 | % | 9.7 | % | 8.7 | % | ||||||
Return on average capital employed increased to 9.4% in 2017 from 7.5% in 2016.
| in millions of dollars | 01/01/2017 – 12/31/2017 | 10/01/2016 – 09/30/2017 | 01/01/2016 – 12/31/2016 | |||||||||
| Adjusted net income | 11,958 | 11,298 | 9,274 | |||||||||
| Average capital employed | 127,575 | 130,860 | 124,283 | |||||||||
| ROACE | 9.4 | % | 8.6 | % | 7.5 | % | ||||||
| (1) | “Net cash flow” = operating cash flow before working capital changes – net investments (including other transactions with non-controlling interests). |
| 9 |
| E. | PROPOSED DIVIDEND |
The Board of Directors met on February 7, 2018 and decided to propose to the Combined Shareholders’ Meeting, which will be held on June 1, 2018, an annual dividend of €2.48/share for 2017, a 1.2% increase compared to 2016. Given the three previous 2016 interim quarterly dividends of €0.62/share, a fourth quarter 2017 dividend of €0.62/share is therefore proposed.
The Board of Directors also decided to propose to the Combined Shareholders’ Meeting the alternative for shareholders to receive the fourth quarter 2017 dividend in cash or in new shares of the company without a discount. Subject to approval at the Combined Shareholders’ Meeting, the ex-dividend date for the fourth quarter dividend will be June 11, 2018, and the payment of the dividend in cash or the delivery of the shares issued in lieu of the dividend in cash is set for June 28, 2018.
| F. | SENSITIVITIES 2018(a) |
| Scenario retained | Change | Estimated impact on adjusted net operating income | Estimated impact on cash flow from operations | |||||
| Dollar | $1.2/€ | +/- $0.1 per € | -/+ $0.1 B | ≈ $0 B | ||||
| Brent | $50/b | +/- $10/b | +/- $2.3 B | +/- $2.8 B | ||||
| European refining margin indicator (ERMI) | $35/t | +/- $10/t | +/- $0.5 B | +/- $0.6 B |
| (a) | 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 2018. 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. |
| G. | SUMMARY AND OUTLOOK |
Since the end of 2017, Brent has been trading between $65-70/b, supported by strong demand (+1.6 Mb/d in 2017), the extended production cuts by OPEC and Russia and a decrease in crude oil inventories, which, nevertheless, remain higher than the past five-year average, which could contribute to continuing price volatility. The Group maintains its strategy to cut costs with the objective of achieving over $4 billion of cost savings in 2018 and production costs of $5.5/boe for the year. Organic investments are projected at around $14 billion in 2018, in line with the target of $13-15 billion.
In the Upstream, production is expected to increase by 6% in 2018, confirming the objective to grow by 5% per year on average between 2016 and 2022. As a result of this growth and the portfolio mix, the Group’s cash flow sensitivity to a $10/b change in the price of Brent increases to $2.8 billion in 2018 from $2.5 billion in 2017. The Group intends to take advantage of the favorable cost environment by continuing to launch projects in 2018. The growing demand for LNG supports the Group’s strategy to develop along the integrated gas value chain, as illustrated by the announced acquisition of Engie’s LNG portfolio.
In a context of sharply higher oil prices, rising refined product inventories, due to high global refining utilization rates, and seasonally weak winter demand, refining margins have decreased since December 2017. Despite the current weakness in refining margins, the Downstream is expected to generate $7 billion of operating cash flow once again this year. Refining & Chemicals continues to expand its high-return integrated platforms notably in the United States and in Asia–Middle East. Marketing & Services continues to pursue its growth strategy in high-potential markets.
The Group’s pre-dividend organic breakeven is continuing to fall with an objective of $25/b in 2018.
After a period of heavy investment, the Group’s cash flow generation is growing strongly, driven by an increase in production that is at the best level among the majors. The Group has taken advantage of the low part of the oil price cycle to acquire high-quality resources at attractive prices and emerge stronger with better visibility on its cash flow generation and a net-debt-to-capital ratio below 20%(1). In this context, the Board of Directors is proposing a shareholder return policy for the coming three years comprised of dividend increases and share buybacks.
| (1) | Excluding IFRS16 impact (under evaluation). |
| 10 |
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “plans”, “targets”, “estimates” or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTAL’s future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTAL’s ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
| • | material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; | |
| • | changes in currency exchange rates and currency devaluations; | |
| • | the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL; | |
| • | uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities; | |
| • | uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals; | |
| • | changes in the current capital expenditure plans of TOTAL; | |
| • | the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies; | |
| • | the financial resources of competitors; | |
| • | changes in laws and regulations, including tax and environmental laws and industrial safety regulations; | |
| • | the quality of future opportunities that may be presented to or pursued by TOTAL; | |
| • | the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; | |
| • | the ability to obtain governmental or regulatory approvals; | |
| • | the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters; | |
| • | the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures; | |
| • | changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities; | |
| • | the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and | |
| • | the risk that TOTAL will inadequately hedge the price of crude oil or finished products. |
For additional factors, you should read the information set forth under “Item 3. 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 for the year ended December 31, 2016.
| 11 |
OPERATING INFORMATION BY SEGMENT
| • | Exploration & Production |
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | Combined liquids and gas production by region (kboe/d) | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 765 | 730 | 752 | +2% | Europe and Central Asia | 762 | 757 | +1% | |||||||||||||||||||||
| 659 | 665 | 625 | +5% | Africa | 654 | 634 | +3% | |||||||||||||||||||||
| 595 | 592 | 503 | +18% | Middle East and North Africa | 559 | 517 | +8% | |||||||||||||||||||||
| 356 | 357 | 319 | +11% | Americas | 348 | 279 | +25% | |||||||||||||||||||||
| 239 | 237 | 263 | -9% | Asia-Pacific | 244 | 265 | -8% | |||||||||||||||||||||
| 2,613 | 2,581 | 2,462 | +6% | Total production | 2,566 | 2,452 | +5% | |||||||||||||||||||||
| 656 | 659 | 561 | +17% | • Including equity affiliates | 639 | 600 | +7% | |||||||||||||||||||||
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | Liquids production by region (kb/d) | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 265 | 257 | 258 | +3% | Europe and Central Asia | 265 | 249 | +6% | |||||||||||||||||||||
| 501 | 517 | 483 | +4% | Africa | 502 | 509 | -1% | |||||||||||||||||||||
| 457 | 452 | 365 | +25% | Middle East and North Africa | 419 | 373 | +12% | |||||||||||||||||||||
| 137 | 138 | 121 | +13% | Americas | 132 | 109 | +20% | |||||||||||||||||||||
| 29 | 29 | 30 | -2% | Asia-Pacific | 28 | 31 | -7% | |||||||||||||||||||||
| 1,389 | 1,392 | 1,257 | +11% | Total production | 1,346 | 1,271 | +6% | |||||||||||||||||||||
| 311 | 311 | 233 | +34% | • Including equity affiliates | 283 | 247 | +15% | |||||||||||||||||||||
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | Gas production by region (Mcf/d) | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 2,657 | 2,556 | 2,665 | — | Europe and Central Asia | 2,672 | 2,737 | -2% | |||||||||||||||||||||
| 980 | 663 | 710 | +38% | Africa | 759 | 621 | +22% | |||||||||||||||||||||
| 759 | 778 | 767 | -1% | Middle East and North Africa | 772 | 795 | -3% | |||||||||||||||||||||
| 1,225 | 1,228 | 1,108 | +11% | Americas | 1,212 | 944 | +28% | |||||||||||||||||||||
| 1,211 | 1,202 | 1,347 | -10% | Asia-Pacific | 1,247 | 1,350 | -8% | |||||||||||||||||||||
| 6,832 | 6,427 | 6,597 | +4% | Total production | 6,662 | 6,447 | +3% | |||||||||||||||||||||
| 2,022 | 1,798 | 1,779 | +14% | • Including equity affiliates | 1,916 | 1,894 | +1% | |||||||||||||||||||||
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | Liquefied natural gas | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 2.67 | 2.95 | 2.75 | -3% | LNG sales(a) (Mt) | 11.23 | 10.99 | +2% | |||||||||||||||||||||
| (a) | Sales, Group share, excluding trading; 2017 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2017 SEC coefficient. |
| • | Downstream (Refining & Chemicals and Marketing & Services) |
| 4Q17 | 3Q17(a) | 4Q16 | 4Q17 vs 4Q16 | Refined product sales by region (kb/d)(b) | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 2,034 | 2,246 | 2,330 | -13% | Europe | 2,142 | 2,355 | -9% | |||||||||||||||||||||
| 637 | 633 | 569 | +12% | Africa | 604 | 551 | +10% | |||||||||||||||||||||
| 479 | 537 | 313 | +53% | Americas | 560 | 517 | +8% | |||||||||||||||||||||
| 692 | 728 | 997 | -31% | Rest of world | 713 | 760 | -6% | |||||||||||||||||||||
| 3,842 | 4,144 | 4,209 | -9% | Total consolidated sales | 4,019 | 4,183 | -4% | |||||||||||||||||||||
| 587 | 583 | 678 | -13% | • Including bulk sales | 581 | 700 | -17% | |||||||||||||||||||||
| 1,434 | 1,754 | 1,723 | -17% | • Including trading | 1,659 | 1,690 | -2% | |||||||||||||||||||||
| (a) | 3Q2017 data restated. | |
| (b) | Includes share of TotalErg. |
| 12 |
ADJUSTMENT ITEMS
| • | Adjustments to net income (Group share) |
| 4Q17 | 3Q17 | 4Q16 | in millions of dollars | 2017 | 2016 | |||||||||||||||
| (2,218 | ) | (123 | ) | (2,133 | ) | Special items affecting net income (Group share) | (2,213 | ) | (2,567 | ) | ||||||||||
| 188 | — | (45 | ) | • Gain (loss) on asset sales | 2,452 | 267 | ||||||||||||||
| (5 | ) | (2 | ) | (10 | ) | • Restructuring charges | (66 | ) | (32 | ) | ||||||||||
| (2,060 | ) | (74 | ) | (1,886 | ) | • Impairments | (3,884 | ) | (2,097 | ) | ||||||||||
| (341 | ) | (47 | ) | (192 | ) | • Other | (715 | ) | (705 | ) | ||||||||||
| 354 | 183 | 262 | After-tax inventory effect: FIFO vs. replacement cost | 282 | 479 | |||||||||||||||
| 13 | (10 | ) | 12 | Effect of changes in fair value | (16 | ) | (3 | ) | ||||||||||||
| (1,851 | ) | 50 | (1,859 | ) | Total adjustments affecting net income | (1,947 | ) | (2,091 | ) | |||||||||||
INVESTMENTS — DIVESTMENTS
| 4Q17 | 3Q17 | 4Q16 | 4Q17 vs 4Q16 | in millions of dollars | 2017 | 2016 | 2017 vs 2016 | |||||||||||||||||||||
| 4,442 | 3,060 | 4,728 | -6% | Organic investments | 14,395 | 17,484 | -18% | |||||||||||||||||||||
| 181 | 161 | 119 | +52% | • Capitalized exploration | 619 | 655 | -5% | |||||||||||||||||||||
| 207 | 153 | 157 | +32% | • Increase in non-current loans | 961 | 1,121 | -14% | |||||||||||||||||||||
| (348 | ) | (337 | ) | (511 | ) | -32% | • Repayment of non-current loans | (1,025 | ) | (1,013 | ) | +1% | ||||||||||||||||
| 313 | 513 | 616 | -49% | Acquisitions | 1,476 | 2,033 | -27% | |||||||||||||||||||||
| 1,119 | 202 | 416 | x2.7 | Asset sales | 4,239 | 1,864 | x2.3 | |||||||||||||||||||||
| (2 | ) | (2 | ) | — | n/a | Other transactions with non-controlling interests | (4 | ) | (104 | ) | n/a | |||||||||||||||||
| 3,638 | 3,373 | 4,928 | -26% | Net investments | 11,636 | 17,757 | -34% | |||||||||||||||||||||
NET-DEBT-TO-EQUITY RATIO
| Current borrowings | 12/31/2017 | 06/30/2017 | 12/31/2016 | |||||||||
| Current borrowings | 11,096 | 11,206 | 13,920 | |||||||||
| Net current financial assets | (3,148 | ) | (2,306 | ) | (4,221 | ) | ||||||
| Net financial assets classified as held for sale | 0 | (2 | ) | (140 | ) | |||||||
| Non-current financial debt | 41,340 | 40,226 | 43,067 | |||||||||
| Hedging instruments of non-current debt | (679 | ) | (626 | ) | (908 | ) | ||||||
| Cash and cash equivalents | (33,185 | ) | (28,583 | ) | (24,597 | ) | ||||||
| Net debt | 15,424 | 19,915 | 27,121 | |||||||||
| Shareholders’ equity – Group share | 111,556 | 109,801 | 98,680 | |||||||||
| Estimated dividend payable | (1,874 | ) | (1,826 | ) | (1,581 | ) | ||||||
| Non-controlling interests | 2,481 | 2,799 | 2,894 | |||||||||
| Adjusted shareholders’ equity | 112,163 | 110,774 | 99,993 | |||||||||
| Net-debt-to-equity ratio | 13.8 | % | 18.0 | % | 27.1 | % | ||||||
| Net-debt-to-capital ratio(a) | 12.1 | % | 15.2 | % | 21.3 | % | ||||||
| (a) | Net debt / (adjusted shareholders’ equity + net debt). |
| 13 |
RETURN ON AVERAGE CAPITAL EMPLOYED
| • | Full-year 2017 |
| in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
| Adjusted net operating income | 5,985 | 485 | 3,790 | 1,676 | ||||||||||||
| Capital employed at 12/30/2016(a) | 107,617 | 4,976 | 11,618 | 5,884 | ||||||||||||
| Capital employed at 12/30/2017(a) | 107,921 | 4,692 | 11,045 | 6,929 | ||||||||||||
| ROACE | 5.6 | % | 10.0 | % | 33.4 | % | 26.2 | % | ||||||||
| (a) | At replacement cost (excluding after-tax inventory effect). |
| • | Twelve months ended September 30, 2017 |
| in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
| Adjusted net operating income | 5,187 | 385 | 4,035 | 1,646 | ||||||||||||
| Capital employed at 09/30/2016(a) | 109,210 | 6,058 | 12,034 | 5,704 | ||||||||||||
| Capital employed at 09/30/2017(a) | 110,114 | 5,388 | 11,919 | 6,871 | ||||||||||||
| ROACE | 4.7 | % | 6.7 | % | 33.7 | % | 26.2 | % | ||||||||
| (a) | At replacement cost (excluding after-tax inventory effect). |
| • | Full-year 2016 |
| in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
| Adjusted net operating income | 3,217 | 439 | 4,195 | 1,559 | ||||||||||||
| Capital employed at 12/31/2015(a) | 103,791 | 4,340 | 10,454 | 5,875 | ||||||||||||
| Capital employed at 12/31/2016(a) | 107,617 | 4,975 | 11,618 | 5,884 | ||||||||||||
| ROACE | 3.0 | % | 9.4 | % | 38.0 | % | 26.5 | % | ||||||||
| (a) | At replacement cost (excluding after-tax inventory effect). |
| 14 |
MAIN INDICATORS
Chart updated around the middle of the month following the end of each quarter.
| €/$ | Brent ($/b) | Average liquids price(a) ($/b) | Average gas price ($/Mbtu)(a) | ERMI(b) ($/t)(c) | ||||||||||||||||
| Fourth quarter 2017 | 1.18 | 61.3 | 57.6 | 4.23 | 35.5 | |||||||||||||||
| Third quarter 2017 | 1.17 | 52.1 | 48.9 | 4.05 | 48.2 | |||||||||||||||
| Second quarter 2017 | 1.10 | 49.6 | 45.1 | 3.93 | 41.0 | |||||||||||||||
| First quarter 2017 | 1.06 | 53.7 | 49.2 | 4.10 | 38.9 | |||||||||||||||
| Fourth quarter 2016 | 1.08 | 49.3 | 46.1 | 3.89 | 41.0 | |||||||||||||||
| (a) | Consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting/underlifting position valued at market price. | |
| (b) | The European refining margin indicator (“ERMI”) is a Group indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by the Group in any period because of the Group’s particular refinery configurations, product mix effects or other company-specific operating conditions. | |
| (c) | $1/t = $0.136/b. |
Disclaimer: data is based on TOTAL’s reporting, is not audited and is subject to change.
| 15 |
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
| (M$)(a) | 4thquarter 2017 | 3rdquarter 2017 | 4thquarter 2016 | |||||||||
| Sales | 47,351 | 43,044 | 42,275 | |||||||||
| Excise taxes | (5,909 | ) | (5,962 | ) | (5,408 | ) | ||||||
| Revenues from sales | 41,442 | 37,082 | 36,867 | |||||||||
| Purchases, net of inventory variation | (27,659 | ) | (24,367 | ) | (23,967 | ) | ||||||
| Other operating expenses | (6,586 | ) | (6,108 | ) | (6,791 | ) | ||||||
| Exploration costs | (287 | ) | (181 | ) | (260 | ) | ||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (5,691 | ) | (3,035 | ) | (4,939 | ) | ||||||
| Other income | 512 | 404 | 337 | |||||||||
| Other expense | (570 | ) | (67 | ) | (473 | ) | ||||||
| Financial interest on debt | (352 | ) | (368 | ) | (299 | ) | ||||||
| Financial income and expense from cash & cash equivalents | (45 | ) | (45 | ) | (2 | ) | ||||||
| Cost of net debt | (397 | ) | (413 | ) | (301 | ) | ||||||
| Other financial income | 240 | 204 | 203 | |||||||||
| Other financial expense | (159 | ) | (164 | ) | (161 | ) | ||||||
| Net income (loss) from equity affiliates | 657 | 500 | 409 | |||||||||
| Income taxes | (772 | ) | (1,092 | ) | (437 | ) | ||||||
| Consolidated net income | 730 | 2,763 | 487 | |||||||||
| Group share | 1,021 | 2,724 | 548 | |||||||||
| Non-controlling interests | (291 | ) | 39 | (61 | ) | |||||||
| Earnings per share ($) | 0.37 | 1.06 | 0.20 | |||||||||
| Fully-diluted earnings per share ($) | 0.37 | 1.06 | 0.20 | |||||||||
| (a) | Except for per share amounts. |
| 16 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
| (M$) | 4thquarter 2017 | 3rdquarter 2017 | 4thquarter 2016 | |||||||||
| Consolidated net income | 730 | 2,763 | 487 | |||||||||
| Other comprehensive income | ||||||||||||
| Actuarial gains and losses | 794 | (129 | ) | 205 | ||||||||
| Tax effect | (373 | ) | 36 | (64 | ) | |||||||
| Currency translation adjustment generated by the parent company | 1,432 | 2,420 | (3,515 | ) | ||||||||
| Items not potentially reclassifiable to profit and loss | 1,853 | 2,327 | (3,374 | ) | ||||||||
| Currency translation adjustment | (585 | ) | (575 | ) | 619 | |||||||
| Available for sale financial assets | 3 | 4 | 3 | |||||||||
| Cash flow hedge | 174 | 116 | 94 | |||||||||
| Share of other comprehensive income of equity affiliates, net amount | (5 | ) | (209 | ) | 458 | |||||||
| Other | — | — | 1 | |||||||||
| Tax effect | (49 | ) | (42 | ) | (32 | ) | ||||||
| Items potentially reclassifiable to profit and loss | (462 | ) | (706 | ) | 1,143 | |||||||
| Total other comprehensive income (net amount) | 1,391 | 1,621 | (2,231 | ) | ||||||||
| Comprehensive income | 2,121 | 4,384 | (1,744 | ) | ||||||||
| Group share | 2,385 | 4,346 | (1,676 | ) | ||||||||
| Non-controlling interests | (264 | ) | 38 | (68 | ) | |||||||
| 17 |
CONSOLIDATED STATEMENT OF INCOME
TOTAL
| (M$)(a) | Year 2017 (unaudited) | Year 2016 | ||||||
| Sales | 171,493 | 149,743 | ||||||
| Excise taxes | (22,394 | ) | (21,818 | ) | ||||
| Revenues from sales | 149,099 | 127,925 | ||||||
| Purchases, net of inventory variation | (99,411 | ) | (83,377 | ) | ||||
| Other operating expenses | (24,966 | ) | (24,302 | ) | ||||
| Exploration costs | (864 | ) | (1,264 | ) | ||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (16,103 | ) | (13,523 | ) | ||||
| Other income | 3,811 | 1,299 | ||||||
| Other expense | (1,034 | ) | (1,027 | ) | ||||
| Financial interest on debt | (1,396 | ) | (1,108 | ) | ||||
| Financial income and expense from cash & cash equivalents | (138 | ) | 4 | |||||
| Cost of net debt | (1,534 | ) | (1,104 | ) | ||||
| Other financial income | 957 | 971 | ||||||
| Other financial expense | (642 | ) | (636 | ) | ||||
| Net income (loss) from equity affiliates | 2,015 | 2,214 | ||||||
| Income taxes | (3,029 | ) | (970 | ) | ||||
| Consolidated net income | 8,299 | 6,206 | ||||||
| Group share | 8,631 | 6,196 | ||||||
| Non-controlling interests | (332 | ) | 10 | |||||
| Earnings per share ($) | 3.36 | 2.52 | ||||||
| Fully-diluted earnings per share ($) | 3.34 | 2.51 | ||||||
| (a) | Except for per share amounts. |
| 18 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
| (M$) | Year 2017 (unaudited) | Year 2016 | ||||||
| Consolidated net income | 8,299 | 6,206 | ||||||
| Other comprehensive income | ||||||||
| Actuarial gains and losses | 823 | (371 | ) | |||||
| Tax effect | (390 | ) | 55 | |||||
| Currency translation adjustment generated by the parent company | 9,316 | (1,548 | ) | |||||
| Items not potentially reclassifiable to profit and loss | 9,749 | (1,864 | ) | |||||
| Currency translation adjustment | (2,578 | ) | (1,098 | ) | ||||
| Available for sale financial assets | 7 | 4 | ||||||
| Cash flow hedge | 324 | 239 | ||||||
| Share of other comprehensive income of equity affiliates, net amount | (677 | ) | 935 | |||||
| Other | — | 1 | ||||||
| Tax effect | (100 | ) | (76 | ) | ||||
| Items potentially reclassifiable to profit and loss | (3,024 | ) | 5 | |||||
| Total other comprehensive income (net amount) | 6,725 | (1,859 | ) | |||||
| Comprehensive income | 15,024 | 4,347 | ||||||
| Group share | 15,312 | 4,336 | ||||||
| Non-controlling interests | (288 | ) | 11 | |||||
| 19 |
CONSOLIDATED BALANCE SHEET
TOTAL
| (M$) | December 31, 2017 (unaudited) | September 30, 2017 (unaudited) | December 31, 2016 | |||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets, net | 14,587 | 14,891 | 15,362 | |||||||||
| Property, plant and equipment, net | 109,397 | 113,491 | 111,971 | |||||||||
| Equity affiliates : investments and loans | 22,103 | 22,130 | 20,576 | |||||||||
| Other investments | 1,727 | 1,124 | 1,133 | |||||||||
| Non-current financial assets | 679 | 626 | 908 | |||||||||
| Deferred income taxes | 5,206 | 5,345 | 4,368 | |||||||||
| Other non-current assets | 3,984 | 4,291 | 4,143 | |||||||||
| Total non-current assets | 157,683 | 161,898 | 158,461 | |||||||||
| Current assets | ||||||||||||
| Inventories, net | 16,520 | 14,769 | 15,247 | |||||||||
| Accounts receivable, net | 14,893 | 13,738 | 12,213 | |||||||||
| Other current assets | 14,210 | 13,944 | 14,835 | |||||||||
| Current financial assets | 3,393 | 2,579 | 4,548 | |||||||||
| Cash and cash equivalents | 33,185 | 28,583 | 24,597 | |||||||||
| Assets classified as held for sale | 2,747 | 997 | 1,077 | |||||||||
| Total current assets | 84,948 | 74,610 | 72,517 | |||||||||
| Total assets | 242,631 | 236,508 | 230,978 | |||||||||
| LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||
| Shareholders’ equity | ||||||||||||
| Common shares | 7,882 | 7,806 | 7,604 | |||||||||
| Paid-in surplus and retained earnings | 112,040 | 111,128 | 105,547 | |||||||||
| Currency translation adjustment | (7,908 | ) | (8,675 | ) | (13,871 | ) | ||||||
| Treasury shares | (458 | ) | (458 | ) | (600 | ) | ||||||
| Total shareholders’ equity - Group share | 111,556 | 109,801 | 98,680 | |||||||||
| Non-controlling interests | 2,481 | 2,799 | 2,894 | |||||||||
| Total shareholders’ equity | 114,037 | 112,600 | 101,574 | |||||||||
| Non-current liabilities | ||||||||||||
| Deferred income taxes | 10,828 | 11,326 | 11,060 | |||||||||
| Employee benefits | 3,735 | 4,384 | 3,746 | |||||||||
| Provisions and other non-current liabilities | 15,986 | 17,140 | 16,846 | |||||||||
| Non-current financial debt | 41,340 | 40,226 | 43,067 | |||||||||
| Total non-current liabilities | 71,889 | 73,076 | 74,719 | |||||||||
| Current liabilities | ||||||||||||
| Accounts payable | 26,479 | 21,092 | 23,227 | |||||||||
| Other creditors and accrued liabilities | 17,779 | 17,740 | 16,720 | |||||||||
| Current borrowings | 11,096 | 11,206 | 13,920 | |||||||||
| Other current financial liabilities | 245 | 273 | 327 | |||||||||
| Liabilities directly associated with the assets classified as held for sale | 1,106 | 521 | 491 | |||||||||
| Total current liabilities | 56,705 | 50,832 | 54,685 | |||||||||
| Total liabilities & shareholders’ equity | 242,631 | 236,508 | 230,978 | |||||||||
| 20 |
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
| (M$) | 4thquarter 2017 | 3rdquarter 2017 | 4thquarter 2016 | |||||||||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||||||||
| Consolidated net income | 730 | 2,763 | 487 | |||||||||
| Depreciation, depletion, amortization and impairment | 5,857 | 3,164 | 5,030 | |||||||||
| Non-current liabilities, valuation allowances and deferred taxes | (44 | ) | (93 | ) | (275 | ) | ||||||
| (Gains) losses on disposals of assets | (71 | ) | (144 | ) | 58 | |||||||
| Undistributed affiliates’ equity earnings | (54 | ) | (110 | ) | 65 | |||||||
| (Increase) decrease in working capital | 2,206 | (1,057 | ) | 1,913 | ||||||||
| Other changes, net | (9 | ) | (160 | ) | (260 | ) | ||||||
| Cash flow from operating activities | 8,615 | 4,363 | 7,018 | |||||||||
| CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||||||
| Intangible assets and property, plant and equipment additions | (4,662 | ) | (3,104 | ) | (5,742 | ) | ||||||
| Acquisitions of subsidiaries, net of cash acquired | (3 | ) | (472 | ) | 118 | |||||||
| Investments in equity affiliates and other securities | (231 | ) | (181 | ) | (74 | ) | ||||||
| Increase in non-current loans | (207 | ) | (153 | ) | (157 | ) | ||||||
| Total expenditures | (5,103 | ) | (3,910 | ) | (5,855 | ) | ||||||
| Proceeds from disposals of intangible assets and property, plant and equipment | 901 | 55 | 413 | |||||||||
| Proceeds from disposals of subsidiaries, net of cash sold | 213 | — | — | |||||||||
| Proceeds from disposals of non-current investments | 5 | 147 | 3 | |||||||||
| Repayment of non-current loans | 348 | 337 | 511 | |||||||||
| Total divestments | 1,467 | 539 | 927 | |||||||||
| Cash flow used in investing activities | (3,636 | ) | (3,371 | ) | (4,928 | ) | ||||||
| CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||||||
| Issuance (repayment) of shares: | ||||||||||||
| - Parent company shareholders | 33 | 65 | 60 | |||||||||
| - Treasury shares | — | — | — | |||||||||
| Dividends paid: | ||||||||||||
| - Parent company shareholders | (643 | ) | — | (534 | ) | |||||||
| - Non-controlling interests | (54 | ) | (11 | ) | (16 | ) | ||||||
| Issuance of perpetual subordinated notes | — | — | 2,761 | |||||||||
| Payments on perpetual subordinated notes | (57 | ) | — | — | ||||||||
| Other transactions with non-controlling interests | (2 | ) | (2 | ) | — | |||||||
| Net issuance (repayment) of non-current debt | 1,531 | 400 | (105 | ) | ||||||||
| Increase (decrease) in current borrowings | (878 | ) | (3,717 | ) | (335 | ) | ||||||
| Increase (decrease) in current financial assets and liabilities | (916 | ) | 1,182 | (3,006 | ) | |||||||
| Cash flow used in financing activities | (986 | ) | (2,083 | ) | (1,175 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 3,993 | (1,091 | ) | 915 | ||||||||
| Effect of exchange rates | 609 | 954 | (1,119 | ) | ||||||||
| Cash and cash equivalents at the beginning of the period | 28,583 | 28,720 | 24,801 | |||||||||
| Cash and cash equivalents at the end of the period | 33,185 | 28,583 | 24,597 | |||||||||
| 21 |
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
| (M$) | Year 2017 (unaudited) | Year 2016 | ||||||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
| Consolidated net income | 8,299 | 6,206 | ||||||
| Depreciation, depletion, amortization and impairment | 16,611 | 14,423 | ||||||
| Non-current liabilities, valuation allowances and deferred taxes | (384 | ) | (1,559 | ) | ||||
| (Gains) losses on disposals of assets | (2,598 | ) | (263 | ) | ||||
| Undistributed affiliates’ equity earnings | 42 | (643 | ) | |||||
| (Increase) decrease in working capital | 827 | (1,119 | ) | |||||
| Other changes, net | (478 | ) | (524 | ) | ||||
| Cash flow from operating activities | 22,319 | 16,521 | ||||||
| CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||
| Intangible assets and property, plant and equipment additions | (13,767 | ) | (18,106 | ) | ||||
| Acquisitions of subsidiaries, net of cash acquired | (800 | ) | (1,123 | ) | ||||
| Investments in equity affiliates and other securities | (1,368 | ) | (180 | ) | ||||
| Increase in non-current loans | (961 | ) | (1,121 | ) | ||||
| Total expenditures | (16,896 | ) | (20,530 | ) | ||||
| Proceeds from disposals of intangible assets and property, plant and equipment | 1,036 | 1,462 | ||||||
| Proceeds from disposals of subsidiaries, net of cash sold | 2,909 | 270 | ||||||
| Proceeds from disposals of non-current investments | 294 | 132 | ||||||
| Repayment of non-current loans | 1,025 | 1,013 | ||||||
| Total divestments | 5,264 | 2,877 | ||||||
| Cash flow used in investing activities | (11,632 | ) | (17,653 | ) | ||||
| CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||
| Issuance (repayment) of shares: | ||||||||
| - Parent company shareholders | 519 | 100 | ||||||
| - Treasury shares | — | — | ||||||
| Dividends paid: | ||||||||
| - Parent company shareholders | (2,643 | ) | (2,661 | ) | ||||
| - Non-controlling interests | (141 | ) | (93 | ) | ||||
| Issuance of perpetual subordinated notes | — | 4,711 | ||||||
| Payments on perpetual subordinated notes | (276 | ) | (133 | ) | ||||
| Other transactions with non-controlling interests | (4 | ) | (104 | ) | ||||
| Net issuance (repayment) of non-current debt | 2,277 | 3,576 | ||||||
| Increase (decrease) in current borrowings | (7,175 | ) | (3,260 | ) | ||||
| Increase (decrease) in current financial assets and liabilities | 1,903 | 1,396 | ||||||
| Cash flow used in financing activities | (5,540 | ) | 3,532 | |||||
| Net increase (decrease) in cash and cash equivalents | 5,147 | 2,400 | ||||||
| Effect of exchange rates | 3,441 | (1,072 | ) | |||||
| Cash and cash equivalents at the beginning of the period | 24,597 | 23,269 | ||||||
| Cash and cash equivalents at the end of the period | 33,185 | 24,597 | ||||||
| 22 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
(2017 unaudited)
| Common shares issued | Paid-in | Treasury shares | ||||||||||||||||||||||||||||||||||
| (M$) | Number | Amount | surplus and retained earnings | Currency translation adjustment | Number | Amount | Shareholders’ equity - Group share | Non- controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||
| As of January 1, 2016 | 2,440,057,883 | 7,670 | 101,528 | (12,119 | ) | (113,967,758 | ) | (4,585 | ) | 92,494 | 2,915 | 95,409 | ||||||||||||||||||||||||
| Net income 2016 | — | — | 6,196 | — | — | — | 6,196 | 10 | 6,206 | |||||||||||||||||||||||||||
| Other comprehensive Income | — | — | (108 | ) | (1,752 | ) | — | — | (1,860 | ) | 1 | (1,859 | ) | |||||||||||||||||||||||
| Comprehensive Income | — | — | 6,088 | (1,752 | ) | — | — | 4,336 | 11 | 4,347 | ||||||||||||||||||||||||||
| Dividend | — | — | (6,512 | ) | — | — | — | (6,512 | ) | (93 | ) | (6,605 | ) | |||||||||||||||||||||||
| Issuance of common shares | 90,639,247 | 251 | 3,553 | — | — | — | 3,804 | — | 3,804 | |||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Sale of treasury shares(1) | — | — | (163 | ) | — | 3,048,668 | 163 | — | — | — | ||||||||||||||||||||||||||
| Share-based payments | — | — | 112 | — | — | — | 112 | — | 112 | |||||||||||||||||||||||||||
| Share cancellation | (100,331,268 | ) | (317 | ) | (3,505 | ) | — | 100,331,268 | 3,822 | — | — | — | ||||||||||||||||||||||||
| Issuance of perpetual subordinated notes | — | — | 4,711 | — | — | — | 4,711 | — | 4,711 | |||||||||||||||||||||||||||
| Payments on perpetual subordinated notes | — | — | (203 | ) | — | — | — | (203 | ) | — | (203 | ) | ||||||||||||||||||||||||
| Other operations with non-controlling interests | — | — | (98 | ) | — | — | — | (98 | ) | (43 | ) | (141 | ) | |||||||||||||||||||||||
| Other items | — | — | 36 | — | — | — | 36 | 104 | 140 | |||||||||||||||||||||||||||
| As of December 31, 2016 | 2,430,365,862 | 7,604 | 105,547 | (13,871 | ) | (10,587,822 | ) | (600 | ) | 98,680 | 2,894 | 101,574 | ||||||||||||||||||||||||
| Net income 2017 | — | — | 8,631 | — | — | — | 8,631 | (332 | ) | 8,299 | ||||||||||||||||||||||||||
| Other comprehensive Income | — | — | 718 | 5,963 | — | — | 6,681 | 44 | 6,725 | |||||||||||||||||||||||||||
| Comprehensive Income | — | — | 9,349 | 5,963 | — | — | 15,312 | (288 | ) | 15,024 | ||||||||||||||||||||||||||
| Dividend | — | — | (6,992 | ) | — | — | — | (6,992 | ) | (141 | ) | (7,133 | ) | |||||||||||||||||||||||
| Issuance of common shares | 98,623,754 | 278 | 4,431 | — | — | — | 4,709 | — | 4,709 | |||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Sale of treasury shares(1) | — | — | (142 | ) | — | 2,211,066 | 142 | — | — | — | ||||||||||||||||||||||||||
| Share-based payments | — | — | 151 | — | — | — | 151 | — | 151 | |||||||||||||||||||||||||||
| Share cancellation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Issuance of perpetual subordinated notes | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Payments on perpetual subordinated notes | — | — | (302 | ) | — | — | — | (302 | ) | — | (302 | ) | ||||||||||||||||||||||||
| Other operations with non-controlling interests | — | — | (8 | ) | — | — | — | (8 | ) | 4 | (4 | ) | ||||||||||||||||||||||||
| Other items | — | — | 6 | — | — | — | 6 | 12 | 18 | |||||||||||||||||||||||||||
| As of December 31, 2017 | 2,528,989,616 | 7,882 | 112,040 | (7,908 | ) | (8,376,756 | ) | (458 | ) | 111,556 | 2,481 | 114,037 | ||||||||||||||||||||||||
| (1) | Treasury shares related to the restricted stock grants. |
| 23 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
| 4th quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,185 | 4,083 | 20,661 | 20,419 | 3 | — | 47,351 | |||||||||||||||||||||
| Intersegment sales | 6,506 | 311 | 7,890 | 207 | 90 | (15,004 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (828 | ) | (5,081 | ) | — | — | (5,909 | ) | ||||||||||||||||||
| Revenues from sales | 8,691 | 4,394 | 27,723 | 15,545 | 93 | (15,004 | ) | 41,442 | ||||||||||||||||||||
| Operating expenses | (3,806 | ) | (4,385 | ) | (26,191 | ) | (14,849 | ) | (305 | ) | 15,004 | (34,532 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (4,890 | ) | (319 | ) | (284 | ) | (185 | ) | (13 | ) | — | (5,691 | ) | |||||||||||||||
| Operating income | (5 | ) | (310 | ) | 1,248 | 511 | (225 | ) | — | 1,219 | ||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 348 | 51 | 199 | 76 | 6 | — | 680 | |||||||||||||||||||||
| Tax on net operating income | (537 | ) | (86 | ) | (67 | ) | (157 | ) | 55 | — | (792 | ) | ||||||||||||||||
| Net operating income | (194 | ) | (345 | ) | 1,380 | 430 | (164 | ) | — | 1,107 | ||||||||||||||||||
| Net cost of net debt | (377 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 291 | |||||||||||||||||||||||||||
| Net income - group share | 1,021 | |||||||||||||||||||||||||||
| 4th quarter 2017 (adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | — | 21 | — | — | — | — | 21 | |||||||||||||||||||||
| Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
| Revenues from sales | — | 21 | — | — | — | — | 21 | |||||||||||||||||||||
| Operating expenses | — | (243 | ) | 355 | 33 | — | — | 145 | ||||||||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,382 | ) | (266 | ) | (3 | ) | (10 | ) | — | — | (2,661 | ) | ||||||||||||||||
| Operating income (b) | (2,382 | ) | (488 | ) | 352 | 23 | — | — | (2,495 | ) | ||||||||||||||||||
| Net income (loss) from equity affiliates and other items | (112 | ) | (22 | ) | 9 | (19 | ) | — | — | (144 | ) | |||||||||||||||||
| Tax on net operating income | 495 | (67 | ) | 133 | (10 | ) | (136 | ) | — | 415 | ||||||||||||||||||
| Net operating income (b) | (1,999 | ) | (577 | ) | 494 | (6 | ) | (136 | ) | — | (2,224 | ) | ||||||||||||||||
| Net cost of net debt | (8 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 381 | |||||||||||||||||||||||||||
| Net income - group share | (1,851 | ) | ||||||||||||||||||||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
| (b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
| On operating income | — | — | 423 | 31 | — | |||||||||||||||||||||||
| On net operating income | — | — | 354 | 11 | — | |||||||||||||||||||||||
| 4thquarter 2017 (adjusted) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,185 | 4,062 | 20,661 | 20,419 | 3 | — | 47,330 | |||||||||||||||||||||
| Intersegment sales | 6,506 | 311 | 7,890 | 207 | 90 | (15,004 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (828 | ) | (5,081 | ) | — | — | (5,909 | ) | ||||||||||||||||||
| Revenues from sales | 8,691 | 4,373 | 27,723 | 15,545 | 93 | (15,004 | ) | 41,421 | ||||||||||||||||||||
| Operating expenses | (3,806 | ) | (4,142 | ) | (26,546 | ) | (14,882 | ) | (305 | ) | 15,004 | (34,677 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,508 | ) | (53 | ) | (281 | ) | (175 | ) | (13 | ) | — | (3,030 | ) | |||||||||||||||
| Adjusted operating income | 2,377 | 178 | 896 | 488 | (225 | ) | — | 3,714 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 460 | 73 | 190 | 95 | 6 | — | 824 | |||||||||||||||||||||
| Tax on net operating income | (1,032 | ) | (19 | ) | (200 | ) | (147 | ) | 191 | — | (1,207 | ) | ||||||||||||||||
| Adjusted net operating income | 1,805 | 232 | 886 | 436 | (28 | ) | — | 3,331 | ||||||||||||||||||||
| Net cost of net debt | (369 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (90 | ) | ||||||||||||||||||||||||||
| Adjusted net income - group share | 2,872 | |||||||||||||||||||||||||||
| 4th quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Total expenditures | 3,490 | 306 | 710 | 570 | 27 | — | 5,103 | |||||||||||||||||||||
| Total divestments | 1,334 | 46 | 36 | 45 | 6 | — | 1,467 | |||||||||||||||||||||
| Cash flow from operating activities | 3,826 | 657 | 3,041 | 992 | 99 | — | 8,615 | |||||||||||||||||||||
| 24 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
| 3rd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,121 | 2,903 | 18,923 | 19,086 | 11 | — | 43,044 | |||||||||||||||||||||
| Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
| Revenues from sales | 7,786 | 3,189 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,082 | ||||||||||||||||||||
| Operating expenses | (3,632 | ) | (3,117 | ) | (23,110 | ) | (13,386 | ) | (250 | ) | 12,839 | (30,656 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,548 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (3,035 | ) | |||||||||||||||
| Operating income | 1,606 | 21 | 1,348 | 574 | (158 | ) | — | 3,391 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 521 | 12 | 179 | 133 | 32 | — | 877 | |||||||||||||||||||||
| Tax on net operating income | (745 | ) | 7 | (379 | ) | (173 | ) | 100 | — | (1,190 | ) | |||||||||||||||||
| Net operating income | 1,382 | 40 | 1,148 | 534 | (26 | ) | — | 3,078 | ||||||||||||||||||||
| Net cost of net debt | (315 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (39 | ) | ||||||||||||||||||||||||||
| Net income - group share | 2,724 | |||||||||||||||||||||||||||
| 3rd quarter 2017 (adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
| Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
| Revenues from sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
| Operating expenses | (2 | ) | (32 | ) | 166 | 51 | — | — | 183 | |||||||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (57 | ) | — | — | — | — | — | (57 | ) | |||||||||||||||||||
| Operating income (b) | (59 | ) | (46 | ) | 166 | 51 | — | — | 112 | |||||||||||||||||||
| Net income (loss) from equity affiliates and other items | (2 | ) | (15 | ) | 12 | (5 | ) | — | — | (10 | ) | |||||||||||||||||
| Tax on net operating income | 4 | 4 | (50 | ) | (18 | ) | — | — | (60 | ) | ||||||||||||||||||
| Net operating income (b) | (57 | ) | (57 | ) | 128 | 28 | — | — | 42 | |||||||||||||||||||
| Net cost of net debt | (7 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 15 | |||||||||||||||||||||||||||
| Net income - group share | 50 | |||||||||||||||||||||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
| (b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
| On operating income | — | — | 210 | 51 | — | |||||||||||||||||||||||
| On net operating income | — | — | 156 | 36 | — | |||||||||||||||||||||||
| 3rdquarter 2017 (adjusted) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,121 | 2,917 | 18,923 | 19,086 | 11 | — | 43,058 | |||||||||||||||||||||
| Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
| Revenues from sales | 7,786 | 3,203 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,096 | ||||||||||||||||||||
| Operating expenses | (3,630 | ) | (3,085 | ) | (23,276 | ) | (13,437 | ) | (250 | ) | 12,839 | (30,839 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,491 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (2,978 | ) | |||||||||||||||
| Adjusted operating income | 1,665 | 67 | 1,182 | 523 | (158 | ) | — | 3,279 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 523 | 27 | 167 | 138 | 32 | — | 887 | |||||||||||||||||||||
| Tax on net operating income | (749 | ) | 3 | (329 | ) | (155 | ) | 100 | — | (1,130 | ) | |||||||||||||||||
| Adjusted net operating income | 1,439 | 97 | 1,020 | 506 | (26 | ) | — | 3,036 | ||||||||||||||||||||
| Net cost of net debt | (308 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (54 | ) | ||||||||||||||||||||||||||
| Adjusted net income - group share | 2,674 | |||||||||||||||||||||||||||
| 3rd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Total expenditures | 3,228 | 99 | 357 | 190 | 36 | — | 3,910 | |||||||||||||||||||||
| Total divestments | 339 | — | 24 | 150 | 26 | — | 539 | |||||||||||||||||||||
| Cash flow from operating activities | 2,633 | 325 | 662 | 596 | 147 | — | 4,363 | |||||||||||||||||||||
| 25 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
| 4th quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,066 | 3,675 | 19,077 | 17,454 | 3 | — | 42,275 | |||||||||||||||||||||
| Intersegment sales | 5,187 | 306 | 6,707 | 257 | 82 | (12,539 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (784 | ) | (4,624 | ) | — | — | (5,408 | ) | ||||||||||||||||||
| Revenues from sales | 7,253 | 3,981 | 25,000 | 13,087 | 85 | (12,539 | ) | 36,867 | ||||||||||||||||||||
| Operating expenses | (3,724 | ) | (3,847 | ) | (23,155 | ) | (12,535 | ) | (296 | ) | 12,539 | (31,018 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (4,329 | ) | (193 | ) | (252 | ) | (154 | ) | (11 | ) | — | (4,939 | ) | |||||||||||||||
| Operating income | (800 | ) | (59 | ) | 1,593 | 398 | (222 | ) | — | 910 | ||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 25 | (50 | ) | 162 | 41 | 137 | — | 315 | ||||||||||||||||||||
| Tax on net operating income | (53 | ) | (5 | ) | (392 | ) | (132 | ) | 77 | — | (505 | ) | ||||||||||||||||
| Net operating income | (828 | ) | (114 | ) | 1,363 | 307 | (8 | ) | — | 720 | ||||||||||||||||||
| Net cost of net debt | (233 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 61 | |||||||||||||||||||||||||||
| Net income - group share | 548 | |||||||||||||||||||||||||||
| 4th quarter 2016 (adjustments)(a)(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | — | 17 | — | — | — | — | 17 | |||||||||||||||||||||
| Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
| Revenues from sales | — | 17 | �� | — | — | — | 17 | |||||||||||||||||||||
| Operating expenses | — | (64 | ) | 379 | (116 | ) | — | — | 199 | |||||||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (1,889 | ) | (139 | ) | — | (1 | ) | — | — | (2,029 | ) | |||||||||||||||||
| Operating income (b) | (1,889 | ) | (186 | ) | 379 | (117 | ) | — | — | (1,813 | ) | |||||||||||||||||
| Net income (loss) from equity affiliates and other items | (406 | ) | (59 | ) | (32 | ) | (20 | ) | (4 | ) | — | (521 | ) | |||||||||||||||
| Tax on net operating income | 460 | (1 | ) | (115 | ) | 38 | 1 | — | 383 | |||||||||||||||||||
| Net operating income (b) | (1,835 | ) | (246 | ) | 232 | (99 | ) | (3 | ) | — | (1,951 | ) | ||||||||||||||||
| Net cost of net debt | (6 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 98 | |||||||||||||||||||||||||||
| Net income - group share | (1,859 | ) | ||||||||||||||||||||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
| (b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
| On operating income | — | — | 380 | (33 | ) | — | ||||||||||||||||||||||
| On net operating income | — | — | 281 | (14 | ) | — | ||||||||||||||||||||||
| 4thquarter 2016 (adjusted) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 2,066 | 3,658 | 19,077 | 17,454 | 3 | — | 42,258 | |||||||||||||||||||||
| Intersegment sales | 5,187 | 306 | 6,707 | 257 | 82 | (12,539 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (784 | ) | (4,624 | ) | — | — | (5,408 | ) | ||||||||||||||||||
| Revenues from sales | 7,253 | 3,964 | 25,000 | 13,087 | 85 | (12,539 | ) | 36,850 | ||||||||||||||||||||
| Operating expenses | (3,724 | ) | (3,783 | ) | (23,534 | ) | (12,419 | ) | (296 | ) | 12,539 | (31,217 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,440 | ) | (54 | ) | (252 | ) | (153 | ) | (11 | ) | — | (2,910 | ) | |||||||||||||||
| Adjusted operating income | 1,089 | 127 | 1,214 | 515 | (222 | ) | — | 2,723 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 431 | 9 | 194 | 61 | 141 | — | 836 | |||||||||||||||||||||
| Tax on net operating income | (513 | ) | (4 | ) | (277 | ) | (170 | ) | 76 | — | (888 | ) | ||||||||||||||||
| Adjusted net operating income | 1,007 | 132 | 1,131 | 406 | (5 | ) | — | 2,671 | ||||||||||||||||||||
| Net cost of net debt | (227 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (37 | ) | ||||||||||||||||||||||||||
| Adjusted net income - group share | 2,407 | |||||||||||||||||||||||||||
| 4th quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Total expenditures | 4,833 | (118 | ) | 566 | 500 | 74 | — | 5,855 | ||||||||||||||||||||
| Total divestments | 818 | 29 | 15 | 65 | — | — | 927 | |||||||||||||||||||||
| Cash flow from operating activities | 4,039 | 732 | 1,746 | 340 | 161 | — | 7,018 | |||||||||||||||||||||
| 26 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
| Year 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 8,477 | 12,854 | 75,505 | 74,634 | 23 | — | 171,493 | |||||||||||||||||||||
| Intersegment sales | 22,837 | 1,180 | 26,844 | 857 | 374 | (52,092 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (3,008 | ) | (19,386 | ) | — | — | (22,394 | ) | ||||||||||||||||||
| Revenues from sales | 31,314 | 14,034 | 99,341 | 56,105 | 397 | (52,092 | ) | 149,099 | ||||||||||||||||||||
| Operating expenses | (14,672 | ) | (13,828 | ) | (94,097 | ) | (53,629 | ) | (1,107 | ) | 52,092 | (125,241 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (13,850 | ) | (482 | ) | (1,074 | ) | (657 | ) | (40 | ) | — | (16,103 | ) | |||||||||||||||
| Operating income | 2,792 | (276 | ) | 4,170 | 1,819 | (750 | ) | — | 7,755 | |||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 1,546 | 31 | 2,979 | 497 | 54 | — | 5,107 | |||||||||||||||||||||
| Tax on net operating income | (2,233 | ) | (140 | ) | (944 | ) | (561 | ) | 540 | — | (3,338 | ) | ||||||||||||||||
| Net operating income | 2,105 | (385 | ) | 6,205 | 1,755 | (156 | ) | — | 9,524 | |||||||||||||||||||
| Net cost of net debt | (1,225 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 332 | |||||||||||||||||||||||||||
| Net income - group share | 8,631 | |||||||||||||||||||||||||||
| Year 2017 (adjustments)(a)(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | — | (20 | ) | — | — | — | — | (20 | ) | |||||||||||||||||||
| Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
| Revenues from sales | — | (20 | ) | — | — | — | — | (20 | ) | |||||||||||||||||||
| Operating expenses | (119 | ) | (389 | ) | 167 | (11 | ) | (64 | ) | — | (416 | ) | ||||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (4,308 | ) | (291 | ) | (53 | ) | (10 | ) | — | — | (4,662 | ) | ||||||||||||||||
| Operating income (b) | (4,427 | ) | (700 | ) | 114 | (21 | ) | (64 | ) | — | (5,098 | ) | ||||||||||||||||
| Net income (loss) from equity affiliates and other items | (328 | ) | (116 | ) | 2,177 | 102 | — | — | 1,835 | |||||||||||||||||||
| Tax on net operating income | 875 | (54 | ) | 124 | (2 | ) | (114 | ) | — | 829 | ||||||||||||||||||
| Net operating income (b) | (3,880 | ) | (870 | ) | 2,415 | 79 | (178 | ) | — | (2,434 | ) | |||||||||||||||||
| Net cost of net debt | — | — | — | — | — | — | (29 | ) | ||||||||||||||||||||
| Non-controlling interests | — | — | — | — | — | — | 516 | |||||||||||||||||||||
| Net income - group share | — | — | — | — | — | — | (1,947 | ) | ||||||||||||||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
| (b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
| On operating income | — | — | 344 | 13 | — | |||||||||||||||||||||||
| On net operating income | — | — | 298 | (3 | ) | — | ||||||||||||||||||||||
| Year 2017 (adjusted) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 8,477 | 12,874 | 75,505 | 74,634 | 23 | — | 171,513 | |||||||||||||||||||||
| Intersegment sales | 22,837 | 1,180 | 26,844 | 857 | 374 | (52,092 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (3,008 | ) | (19,386 | ) | — | — | (22,394 | ) | ||||||||||||||||||
| Revenues from sales | 31,314 | 14,054 | 99,341 | 56,105 | 397 | (52,092 | ) | 149,119 | ||||||||||||||||||||
| Operating expenses | (14,553 | ) | (13,439 | ) | (94,264 | ) | (53,618 | ) | (1,043 | ) | 52,092 | (124,825 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (9,542 | ) | (191 | ) | (1,021 | ) | (647 | ) | (40 | ) | — | (11,441 | ) | |||||||||||||||
| Adjusted operating income | 7,219 | 424 | 4,056 | 1,840 | (686 | ) | — | 12,853 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 1,874 | 147 | 802 | 395 | 54 | — | 3,272 | |||||||||||||||||||||
| Tax on net operating income | (3,108 | ) | (86 | ) | (1,068 | ) | (559 | ) | 654 | — | (4,167 | ) | ||||||||||||||||
| Adjusted net operating income | 5,985 | 485 | 3,790 | 1,676 | 22 | — | 11,958 | |||||||||||||||||||||
| Net cost of net debt | (1,196 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (184 | ) | ||||||||||||||||||||||||||
| Adjusted net income - group share | 10,578 | |||||||||||||||||||||||||||
| Year 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Total expenditures | 12,802 | 797 | 1,734 | 1,457 | 106 | — | 16,896 | |||||||||||||||||||||
| Total divestments | 1,918 | 73 | 2,820 | 413 | 40 | — | 5,264 | |||||||||||||||||||||
| Cash flow from operating activities | 11,459 | 993 | 7,440 | 2,130 | 297 | — | 22,319 | |||||||||||||||||||||
| 27 |
BUSINESS SEGMENT INFORMATION
TOTAL
| Year 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 7,629 | 10,124 | 65,632 | 66,351 | 7 | — | 149,743 | |||||||||||||||||||||
| Intersegment sales | 17,759 | 1,009 | 21,467 | 744 | 307 | (41,286 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (3,544 | ) | (18,274 | ) | — | — | (21,818 | ) | ||||||||||||||||||
| Revenues from sales | 25,388 | 11,133 | 83,555 | 48,821 | 314 | (41,286 | ) | 127,925 | ||||||||||||||||||||
| Operating expenses | (14,236 | ) | (10,993 | ) | (77,562 | ) | (46,432 | ) | (1,006 | ) | 41,286 | (108,943 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (11,583 | ) | (301 | ) | (1,002 | ) | (600 | ) | (37 | ) | — | (13,523 | ) | |||||||||||||||
| Operating income | (431 | ) | (161 | ) | 4,991 | 1,789 | (729 | ) | — | 5,459 | ||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 1,375 | 71 | 779 | 170 | 426 | — | 2,821 | |||||||||||||||||||||
| Tax on net operating income | 401 | (4 | ) | (1,244 | ) | (541 | ) | 164 | — | (1,224 | ) | |||||||||||||||||
| Net operating income | 1,345 | (94 | ) | 4,526 | 1,418 | (139 | ) | — | 7,056 | |||||||||||||||||||
| Net cost of net debt | (850 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (10 | ) | ||||||||||||||||||||||||||
| Net income - group share | 6,196 | |||||||||||||||||||||||||||
| Year 2016 (adjustments)(a)(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | — | (231 | ) | — | — | — | — | (231 | ) | |||||||||||||||||||
| Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
| Revenues from sales | — | (231 | ) | — | — | — | — | (231 | ) | |||||||||||||||||||
| Operating expenses | (691 | ) | (79 | ) | 625 | (136 | ) | — | — | (281 | ) | |||||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,089 | ) | (139 | ) | — | (1 | ) | — | — | (2,229 | ) | |||||||||||||||||
| Operating income (b) | (2,780 | ) | (449 | ) | 625 | (137 | ) | — | — | (2,741 | ) | |||||||||||||||||
| Net income (loss) from equity affiliates and other items | (200 | ) | (135 | ) | (93 | ) | (40 | ) | (4 | ) | — | (472 | ) | |||||||||||||||
| Tax on net operating income | 1,108 | 51 | (201 | ) | 36 | 1 | — | 995 | ||||||||||||||||||||
| Net operating income (b) | (1,872 | ) | (533 | ) | 331 | (141 | ) | (3 | ) | — | (2,218 | ) | ||||||||||||||||
| Net cost of net debt | (23 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | 150 | |||||||||||||||||||||||||||
| Net income - group share | (2,091 | ) | ||||||||||||||||||||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
| (b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
| On operating income | — | — | 695 | (43 | ) | — | ||||||||||||||||||||||
| On net operating income | — | — | 500 | (13 | ) | — | ||||||||||||||||||||||
| Year 2016 (adjusted) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Non-Group sales | 7,629 | 10,355 | 65,632 | 66,351 | 7 | — | 149,974 | |||||||||||||||||||||
| Intersegment sales | 17,759 | 1,009 | 21,467 | 744 | 307 | (41,286 | ) | — | ||||||||||||||||||||
| Excise taxes | — | — | (3,544 | ) | (18,274 | ) | — | — | (21,818 | ) | ||||||||||||||||||
| Revenues from sales | 25,388 | 11,364 | 83,555 | 48,821 | 314 | (41,286 | ) | 128,156 | ||||||||||||||||||||
| Operating expenses | (13,545 | ) | (10,914 | ) | (78,187 | ) | (46,296 | ) | (1,006 | ) | 41,286 | (108,662 | ) | |||||||||||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (9,494 | ) | (162 | ) | (1,002 | ) | (599 | ) | (37 | ) | — | (11,294 | ) | |||||||||||||||
| Adjusted operating income | 2,349 | 288 | 4,366 | 1,926 | (729 | ) | — | 8,200 | ||||||||||||||||||||
| Net income (loss) from equity affiliates and other items | 1,575 | 206 | 872 | 210 | 430 | — | 3,293 | |||||||||||||||||||||
| Tax on net operating income | (707 | ) | (55 | ) | (1,043 | ) | (577 | ) | 163 | — | (2,219 | ) | ||||||||||||||||
| Adjusted net operating income | 3,217 | 439 | 4,195 | 1,559 | (136 | ) | — | 9,274 | ||||||||||||||||||||
| Net cost of net debt | (827 | ) | ||||||||||||||||||||||||||
| Non-controlling interests | (160 | ) | ||||||||||||||||||||||||||
| Adjusted net income - group share | 8,287 | |||||||||||||||||||||||||||
| Year 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
| Total expenditures | 16,085 | 1,221 | 1,861 | 1,245 | 118 | — | 20,530 | |||||||||||||||||||||
| Total divestments | 2,187 | 166 | 88 | 424 | 12 | — | 2,877 | |||||||||||||||||||||
| Cash flow from operating activities | 9,010 | 538 | 4,585 | 1,754 | 634 | — | 16,521 | |||||||||||||||||||||
| 28 |
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
(unaudited)
| 4th quarter 2017 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| Sales | 47,330 | 21 | 47,351 | |||||||||
| Excise taxes | (5,909 | ) | — | (5,909 | ) | |||||||
| Revenues from sales | 41,421 | 21 | 41,442 | |||||||||
| Purchases, net of inventory variation | (28,020 | ) | 361 | (27,659 | ) | |||||||
| Other operating expenses | (6,370 | ) | (216 | ) | (6,586 | ) | ||||||
| Exploration costs | (287 | ) | — | (287 | ) | |||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (3,030 | ) | (2,661 | ) | (5,691 | ) | ||||||
| Other income | 220 | 292 | 512 | |||||||||
| Other expense | (208 | ) | (362 | ) | (570 | ) | ||||||
| Financial interest on debt | (344 | ) | (8 | ) | (352 | ) | ||||||
| Financial income and expense from cash & cash equivalents | (45 | ) | — | (45 | ) | |||||||
| Cost of net debt | (389 | ) | (8 | ) | (397 | ) | ||||||
| Other financial income | 240 | — | 240 | |||||||||
| Other financial expense | (159 | ) | — | (159 | ) | |||||||
| Net income (loss) from equity affiliates | 731 | (74 | ) | 657 | ||||||||
| Income taxes | (1,187 | ) | 415 | (772 | ) | |||||||
| Consolidated net income | 2,962 | (2,232 | ) | 730 | ||||||||
| Group share | 2,872 | (1,851 | ) | 1,021 | ||||||||
| Non-controlling interests | 90 | (381 | ) | (291 | ) | |||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||
| 4th quarter 2016 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| Sales | 42,258 | 17 | 42,275 | |||||||||
| Excise taxes | (5,408 | ) | — | (5,408 | ) | |||||||
| Revenues from sales | 36,850 | 17 | 36,867 | |||||||||
| Purchases, net of inventory variation | (24,253 | ) | 286 | (23,967 | ) | |||||||
| Other operating expenses | (6,704 | ) | (87 | ) | (6,791 | ) | ||||||
| Exploration costs | (260 | ) | — | (260 | ) | |||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (2,910 | ) | (2,029 | ) | (4,939 | ) | ||||||
| Other income | 337 | — | 337 | |||||||||
| Other expense | (263 | ) | (210 | ) | (473 | ) | ||||||
| Financial interest on debt | (293 | ) | (6 | ) | (299 | ) | ||||||
| Financial income and expense from cash & cash equivalents | (2 | ) | — | (2 | ) | |||||||
| Cost of net debt | (295 | ) | (6 | ) | (301 | ) | ||||||
| Other financial income | 203 | — | 203 | |||||||||
| Other financial expense | (161 | ) | — | (161 | ) | |||||||
| Net income (loss) from equity affiliates | 720 | (311 | ) | 409 | ||||||||
| Income taxes | (820 | ) | 383 | (437 | ) | |||||||
| Consolidated net income | 2,444 | (1,957 | ) | 487 | ||||||||
| Group share | 2,407 | (1,859 | ) | 548 | ||||||||
| Non-controlling interests | 37 | (98 | ) | (61 | ) | |||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||
| 29 |
Reconciliation of the information by business segment with consolidated financial statements
TOTAL
| Year 2017 (M$)(unaudited) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| Sales | 171,513 | (20 | ) | 171,493 | ||||||||
| Excise taxes | (22,394 | ) | — | (22,394 | ) | |||||||
| Revenues from sales | 149,119 | (20 | ) | 149,099 | ||||||||
| Purchases, net of inventory variation | (99,534 | ) | 123 | (99,411 | ) | |||||||
| Other operating expenses | (24,427 | ) | (539 | ) | (24,966 | ) | ||||||
| Exploration costs | (864 | ) | — | (864 | ) | |||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (11,441 | ) | (4,662 | ) | (16,103 | ) | ||||||
| Other income | 772 | 3,039 | 3,811 | |||||||||
| Other expense | (389 | ) | (645 | ) | (1,034 | ) | ||||||
| Financial interest on debt | (1,367 | ) | (29 | ) | (1,396 | ) | ||||||
| Financial income and expense from cash & cash equivalents | (138 | ) | — | (138 | ) | |||||||
| Cost of net debt | (1,505 | ) | (29 | ) | (1,534 | ) | ||||||
| Other financial income | 957 | — | 957 | |||||||||
| Other financial expense | (642 | ) | — | (642 | ) | |||||||
| Net income (loss) from equity affiliates | 2,574 | (559 | ) | 2,015 | ||||||||
| Income taxes | (3,858 | ) | 829 | (3,029 | ) | |||||||
| Consolidated net income | 10,762 | (2,463 | ) | 8,299 | ||||||||
| Group share | 10,578 | (1,947 | ) | 8,631 | ||||||||
| Non-controlling interests | 184 | (516 | ) | (332 | ) | |||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||
| Year 2016 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| Sales | 149,974 | (231 | ) | 149,743 | ||||||||
| Excise taxes | (21,818 | ) | — | (21,818 | ) | |||||||
| Revenues from sales | 128,156 | (231 | ) | 127,925 | ||||||||
| Purchases, net of inventory variation | (83,916 | ) | 539 | (83,377 | ) | |||||||
| Other operating expenses | (23,832 | ) | (470 | ) | (24,302 | ) | ||||||
| Exploration costs | (914 | ) | (350 | ) | (1,264 | ) | ||||||
| Depreciation, depletion and impairment of tangible assets and mineral interests | (11,294 | ) | (2,229 | ) | (13,523 | ) | ||||||
| Other income | 964 | 335 | 1,299 | |||||||||
| Other expense | (537 | ) | (490 | ) | (1,027 | ) | ||||||
| Financial interest on debt | (1,085 | ) | (23 | ) | (1,108 | ) | ||||||
| Financial income and expense from cash & cash equivalents | 4 | — | 4 | |||||||||
| Cost of net debt | (1,081 | ) | (23 | ) | (1,104 | ) | ||||||
| Other financial income | 971 | — | 971 | |||||||||
| Other financial expense | (636 | ) | — | (636 | ) | |||||||
| Net income (loss) from equity affiliates | 2,531 | (317 | ) | 2,214 | ||||||||
| Income taxes | (1,965 | ) | 995 | (970 | ) | |||||||
| Consolidated net income | 8,447 | (2,241 | ) | 6,206 | ||||||||
| Group share | 8,287 | (2,091 | ) | 6,196 | ||||||||
| Non-controlling interests | 160 | (150 | ) | 10 | ||||||||
| (a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||
| 30 |