EX-99.1 2 d70625dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The financial information on pages 1-17 of this exhibit concerning TOTAL SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TOTAL” or the “Group”) with respect to the third quarter 2020 and nine months ended September 30, 2020 has been derived from TOTAL’s unaudited consolidated balance sheets as of September 30, 2020, unaudited statements of income, comprehensive income, cash flow and business segment information for the third quarter 2020 and nine months ended September 30, 2020 and unaudited consolidated statements of changes in shareholders’ equity for the nine months ended September 30, 2020 presented on pages 18-32 and 37-44 of this exhibit.

The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TOTAL’s audited consolidated financial statements and related notes, provided in TOTAL’s Annual Report on Form 20-F for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2020, as amended on April 14, 2020.

 

A.

KEY FIGURES

 

3Q20   2Q20    3Q19    3Q20
vs
3Q19
   in millions of dollars
(except earnings per share and number of
shares)
   9M20    9M19    9M20
vs
9M19

 

  

 

  

 

  

 

33,142   25,730    48,589    -32%   

Non-Group sales

   102,742    151,036    -32%
1,459   821    3,673    -60%   

Adjusted net operating income(a) from business segments

   4,580    10,675    -57%
801   (209)    1,734    -54%   

• Exploration & Production

   1,295    5,478    -76%
285   326    574    -50%   

• Integrated Gas, Renewables & Power

   1,524    1,595    -4%
(88)   575    952    ns   

• Refining & Chemicals

   869    2,423    -64%
461   129    413    +12%   

• Marketing & Services

   892    1,179    -24%
94   (447)    1,381    -93%   

Net income (loss) from equity affiliates

   379    2,904    -87%
0.04   (3.27)    1.04    -96%   

Fully-diluted earnings per share ($)

   (3.22)    3.20    ns
2,637   2,598    2,614    +1%   

Fully-diluted weighted-average shares (millions)

   2,612    2,621    -
202   (8,369)    2,800    -93%   

Net income (Group share)

   (8,133)    8,667    ns
2,184   2,201    3,296    -34%   

Organic investments(b)

   6,908    9,107    -24%
(272)   721    3,422    ns   

Net acquisitions(c)

   1,551    4,131    -62%
1,912   2,922    6,718    -72%   

Net investments(d)

   8,459    13,238    -36%
4,351   3,479    8,206    -47%   

Cash flow from operations

   9,129    18,086    -50%
          

Of which:

        
980   431    1,523    -36%   

• (increase) decrease in working capital(e)

   527    (1,764)    ns
(491)   (499)    (532)    ns   

• financial charges

   (1,502)    (1,536)    ns

 

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

 

(a)

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

 

(b)

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

 

(c)

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

 

(d)

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

 

(e)

See also “C. Group results – Cash Flow” on page 10 of this exhibit and the reconciliation table for different cash flow figures set forth under “Cash Flow” on page 16 of this exhibit.

 

1


Environment* — liquids and gas price realizations, refining margins

 

  3Q20  

     2Q20        3Q19      3Q20 vs
3Q19
  

 

     9M20        9M19      9M20 vs
9M19
42.9    29.6    62.0    -31%   

Brent ($/b)

   41.1    64.6    -36%
2.1    1.8    2.3    -9%   

Henry Hub ($/Mbtu)

   1.9    2.6    -25%
2.9    1.7    3.9    -26%   

NBP ($/Mbtu)

   2.5    4.8    -47%
3.6    2.1    4.7    -23%   

JKM ($/Mbtu)

   3.1    5.4    -42%
39.9    23.4    58.0    -31%   

Average price of liquids ($/b)

Consolidated subsidiaries

   35.6    60.0    -41%
2.52    2.61    3.48    -27%   

Average price of gas ($/Mbtu)

Consolidated subsidiaries

   2.84    3.93    -28%
3.57    4.40    5.93    -40%   

Average price of LNG ($/Mbtu)

Consolidated subsidiaries and equity affiliates

   4.81    6.25    -23%
-2.7    14.3    47.4    ns   

Variable cost margin –Refining Europe, VCM ($/t)

   13.6    36.2    -62%

 

* The indicators are shown on page 17.

The average LNG sales price fell by 19% in the third quarter 2020 compared to the previous quarter, due to the delayed impact of lower oil prices in the first half 2020 on long-term LNG contracts.

Production*

 

  3Q20  

     2Q20        3Q19      3Q20 vs
3Q19
  

 

     9M20        9M19          9M20    
vs
9M19
    2,715        2,846        3,040        -11 %   

Hydrocarbon production (kboe/d)

       2,882        2,981        -3 %
    1,196        1,315        1,441        -17 %   

   Oil (including bitumen) (kb/d)

       1,319        1,424        -7 %
    1,519        1,531        1,599        -5 %   

   Gas (including condensates and associated NGL) (kboe/d)

       1,563        1,557        -  

  3Q20  

   2Q20    3Q19    3Q20 vs
3Q19
  

 

   9M20    9M19    9M20
vs
9M19
    2,715        2,846        3,040        -11 %   

Hydrocarbon production (kboe/d)

       2,882        2,981        -3 %
    1,437        1,553        1,720        -16 %   

   Liquids (kb/d)

       1,563        1,658        -6 %
    6,973        7,045        7,200        -3 %   

   Gas (Mcf/d)**

       7,193        7,225        -  

 

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

** 3Q19 and 9M19 data restated.

Hydrocarbon production was 2,715 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2020, a decrease of 11% year-on-year, comprised of:

   

-7% due to compliance with OPEC+ quotas, notably in Nigeria, the United Arab Emirates, Angola, Kazakhstan and Iraq, as well as voluntary reductions in Canada and disruptions in Libya.

   

-1% due to portfolio effect, notably linked to the sale of Block CA1 in Brunei and the sale of assets in the United Kingdom.

   

+3% due to the start-up and ramp-up of new projects, notably Culzean in the United Kingdom, Johan Sverdrup in Norway, Iara in Brazil and Tempa Rossa in Italy.

   

-3% due to the natural decline of fields.

   

-3% due to maintenance.

Hydrocarbon production was 2,715 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2020, a decrease of 5% compared to the previous quarter, comprised of:

   

-3% due to reinforcement of OPEC+ quotas, notably in Nigeria.

   

-1% due to portfolio effect, notably linked to the sale of assets in the United Kingdom.

   

+1% due to the ramp-up of recently started projects, notably Ichthys in Australia, Tempa Rossa in Italy and Iara in Brazil.

   

-2% due to the natural decline of fields and maintenance.

 

2


B.

ANALYSIS OF BUSINESS SEGMENT RESULTS

The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.

In accordance with IAS 2, the Group values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.

The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. In addition, 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. Furthermore, TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.

The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages 26-32 of this exhibit.

The Group measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.

 

3


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

Production and sales of Liquefied natural gas (LNG) and electricity

 

  3Q20  

     2Q20        3Q19      3Q20 vs
3Q19
  

Hydrocarbon production for LNG

     9M20        9M19      9M20
vs
9M19
518    520    539    -4%   

iGRP (kboe/d)

   530    539    -2%
70    66    73    -5%   

   Liquids (kb/d)

   70    71    -2%
2,445    2,471    2,546    -4%   

   Gas (Mcf/d)*

   2,509    2,562    -2%

  3Q20  

     2Q20      3Q19    3Q20 vs
3Q19
  

Liquefied Natural Gas in Mt

   9M20    9M19    9M20
vs
9M19
8.1    10.4    7.4    +9%   

Overall LNG sales

   28.3    23.7    +19%
4.3    4.3    4.2    +3%   

   including sales from equity production**

   13.3    12.0    +11%
6.6    8.7    5.5    +20%   

   including sales by TOTAL from equity production and third party purchases

   23.2    18.3    +27%

 

* 3Q19 and 9M19 data restated.

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

 

  3Q20  

     2Q20        3Q19      3Q20 vs
3Q19
  

Renewables & Electricity

     9M20        9M19      9M20
vs
9M19
5.1    5.1    2.7    +85%    Gross renewables installed capacity (GW)*    5.1    2.7    +85%
14.2             Gross renewables installed or in development capacity with PPA (GW)*    14.2      
4.1    2.9    2.9    +41%    Net power production (TWh)**      9.9        7.9      +25%
  1.0        1.1        0.5      x2.1   

   including power production from renewables

   2.8    1.4    x2
4.4    4.2    4.1    +7%    Clients power – BtB and BtC (Million)*    4.4    4.1    +7%
1.7    1.7    1.6    +4%    Clients gas – BtB and BtC (Million)*    1.7    1.6    +7%
10.2    9.4    9.9    +3%    Sales power – BtB and BtC (TWh)    33.8    33.2    +2%
13.5    17.3    13.5    -    Sales gas – BtB and BtC (TWh)    64.4    65.5    -2%

 

* Capacity at end of period.

** Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.

Hydrocarbon production for LNG was stable compared to the previous quarter and down 4% compared to last year.

Total LNG sales:

   

increased by 9% in the third quarter 2020 compared to last year, notably due to an increase in trading activities.

   

increased by 19% for the first nine months 2020 compared to the same period last year for the same reason and thanks to the ramp-up of Yamal LNG, Ichthys LNG and the start-up of the first two Cameron LNG trains in the US.

Gross installed renewable power generation capacity was 5.1 GW at the end of the third quarter, a strong 85% increase year-on-year, notably thanks to the acquisition in India of 50% of a portfolio of more than 2 GW from the Adani Group.

The Group continues to implement its strategy to integrate along the gas and electricity chain in Europe and has seen the number of its power and gas customers grow compared to last year by 7% and 4%, respectively, and for the first nine months 2020 by 7%.

Net electricity production was 4.1 TWh in the third quarter, up 41% year-on-year, notably due to higher demand on the Group’s CCGTs and the doubling of renewable electricity production.

Electricity sales increased by 2% in the first nine months 2020 compared to the same period last year, while gas sales decreased by 2% in the same comparison, impacted by lower demand linked to the lockdown in Europe.

 

4


Results

 

  3Q20  

     2Q20        3Q19      3Q20 vs
3Q19
  

in millions of dollars

     9M20        9M19      9M20 vs
9M19
1,995    3,313    3,667    -46%   

Non-Group sales

   10,398    13,875    -25%
253    (1,074)    321    -21%   

Operating income

   (463)    858    ns
225    21    898    -75%   

Net income (loss) from equity affiliates and other items

   645    1,939    -67%
(266)    322    (222)    ns   

Tax on net operating income

   64    (845)    ns
212    (731)    997    -79%   

Net operating income

   246    1,952    -87%
73    1,057    (423)    ns   

Adjustments affecting net operating income

   1,278    (357)    ns
285    326    574    -50%   

Adjusted net operating income*

   1,524    1,595    -4%
99    (69)    206    -52%   

• including income from equity affiliates

   278    656    -58%
450    618    640    -30%   

Organic investments

   1,714    1,575    +9%
36    433    3,375    -99%   

Net acquisitions

   1,606    3,934    -59%
486    1,051    4,015    -88%   

Net investments

   3,320    5,509    -40%

 

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

Adjusted net operating income for the iGRP segment was:

   

$285 million in the third quarter 2020, a decrease of 50% compared to $574 million in the third quarter 2019, due to the drop in LNG prices.

   

$1,524 million in the first nine months 2020, a decrease of 4% compared to $1,595 million in the first nine months 2019, for the same reason.

Adjusted net operating income for the Integrated Gas, Renewables & Power segment excludes special items. In the third quarter 2020, the exclusion of special items had a positive impact of $73 million on the segment’s adjusted net operating income, compared to a negative impact of $423 million in the third quarter 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $1,278 million on the segment’s adjusted net operating income, compared to a negative impact of $357 million in the first nine months 2019.

In the third quarter 2020, the segment’s operating cash flow excluding (i) the change in working capital at replacement cost1, (ii) financial charges, except those related to leases and (iii) the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates was $695 million, a decrease of 5% compared to $732 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding (i) the change in working capital at replacement cost, (ii) financial charges, except those related to leases and (iii) the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates was $2,346 million, an increase of 14% compared to $2,052 million in the first nine months 2019, and in line with the 19% increase in LNG sales. The data for the second quarter 2020, third quarter 2019 and first nine months 2019 are restated.

In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $654 million, an increase of 63% compared to $401 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,554 million, a decrease of 20% compared to $1,934 million in the first nine months 2019.

 

1 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.

 

5


B.2.    Exploration & Production segment

Production

 

  3Q20  

     2Q20        3Q19     

3Q20
vs
3Q19

  

Hydrocarbon production

     9M20        9M19     

9M20
vs
9M19

2,197    2,326    2,501    -12%    EP (kboe/d)    2,352    2,442    -4%
1,367    1,487    1,647    -17%   

   Liquids (kb/d)

   1,493    1,587    -6%
4,528    4,574    4,654    -3%   

   Gas (Mcf/d)

   4,684    4,663    -  

Results

 

  3Q20       2Q20        3Q19      2Q20
vs
2Q19
  

in millions of dollars

(except effective tax rate)

     9M20        9M19      9M20
vs
9M19

 

1,142   992    1,631    -30%    Non-Group sales    3,716    5,698    -35%
768   (7,983)    2,257    -66%    Operating income    (6,356)    8,176    ns
251   17    77    x3    Net income (loss) from equity affiliates and other items    691    444    +56%
32.9%   56.6%    39.7%       Effective tax rate*    39.7%    42.8%   
(243)   398    (1,094)    ns    Tax on net operating income    (299)    (3,679)    ns
776   (7,568)    1,240    -37%    Net operating income    (5,964)    4,941    ns
25   7,359    494    -95%    Adjustments affecting net operating income    7,259    537    x14
801   (209)    1,734    -54%    Adjusted net operating income**    1,295    5,478    -76%
268   48    297    -10%   

•  including income from equity affiliates

   706    749    -6%
1,266   1,112    2,064    -39%    Organic investments    3,950    6,017    -34%
(309)   311    (3)    ns    Net acquisitions    (4)    239    ns
957   1,423    2,061    -54%    Net investments    3,946    6,256    -37%

 

*

“Effective tax rate” = tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income).

**

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

Adjusted net operating income for the Exploration & Production segment was:

   

$801 million in the third quarter 2020, a decrease of 54% compared to $1,734 million in the third quarter 2019, due to the sharp drop in oil and gas prices and lower production.

   

$1,295 million in the first nine months 2020, a decrease of 76% compared to $5,478 million in the first nine months 2019, for the same reasons.

Adjusted net operating income for the Exploration & Production segment excludes special items. In the third quarter 2020, the exclusion of special items had a positive impact of $25 million on the segment’s adjusted net operating income, compared to a positive impact of $494 million in the third quarter 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $7,259 million on the segment’s adjusted net operating income, compared to a positive impact of $537 million in the first nine months 2020.

In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost2 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $2,646 million, a decrease of 41% compared to $4,451 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $7,032 million, a decrease of 48% compared to $13,579 million in the first nine months 2019.

In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $2,043 million, a decrease of 59% compared to $5,007 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $6,876 million, a decrease of 46% compared to $12,711 million in the first nine months 2019.

 

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 “B. Analysis of business segment results”, above.

 

6


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

Results

 

  3Q20       2Q20        3Q19      3Q20 vs
3Q19
   in millions of dollars      9M20        9M19      9M20 vs
9M19
30,004   21,419    43,289    -31%    Non-Group sales    88,621    131,459    -33%
261   866    1,593    -84%    Operating income    (63)    4,340    ns
(233)   (13)    (10)    ns    Net income (loss) from equity affiliates and other items    (293)    351    ns
(238)   (259)    (385)    ns    Tax on net operating income    (194)    (965)    ns
(210)   594    1,198    ns    Net operating income    (550)    3,726    ns
583   110    167    x3    Adjustments affecting net operating income    2,311    (124)    ns
373   704    1,365    -73%    Adjusted net operating income*    1,761    3,602    -51%
449   457    570    -21%    Organic investments    1,183    1,447    -18%
2   (20)    52    -96%    Net acquisitions    (48)    (42)    ns
451   437    622    -27%    Net investments    1,135    1,405    -19%

 

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

In the third quarter 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost3 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $971 million, a decrease of 51% compared to $1,995 million in the third quarter 2019. In the first nine months 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $3,523 million, a decrease of 31% compared to $5,113 in the first nine months 2019.

In the third quarter 2020, the Downstream segment’s cash flow from operating activities excluding financial charges, except those related to leases was $2,060 million, a decrease of 33% compared to $3,058 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $2,377 million, a decrease of 53% compared to $5,021 in the first nine months 2019.

Refining & Chemicals segment

Refinery and petrochemicals throughput and utilization rates

 

  3Q20  

       2Q20          3Q19        3Q20
vs
  3Q19   
    

Refinery throughput and utilization rate*

     9M20          9M19        9M20 vs
  9M19  
 
  1,212        1,249        1,719        -29%      Total refinery throughput (kb/d)      1,302        1,725        -25%  
  267        205        503        -47%     

• France

     242        514        -53%  
  540        595        757        -29%     

• Rest of Europe

     630        753        -16%  
  405        449        459        -12%     

• Rest of world

     429        458        -6%  
  57%        59%        82%         Utilization rates based on crude only**      62%        83%     

 

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

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

Petrochemicals production and utilization rates

 

  3Q20        2Q20        3Q19      3Q20 vs
3Q19
   Petrochemicals production and
utilization rate
     9M20        9M19      9M20 vs
  9M19  
1,255    1,391    1,402    -11%    Monomers* (kt)    4,033    3,788    +6%
1,248    1,193    1,268    -2%    Polymers (kt)    3,642    3,692    -1%
75%    84%    91%       Vapocracker utilization rate**    81%    81%   

 

* Olefins

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

 

 

3 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.

 

7


Refinery throughput volumes:

   

Decreased by 29% in the third quarter 2020 compared to the previous year, mainly due to high inventories of refined products and the drop in demand. The extended shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019 and the safety outage at the Port Arthur refinery in the US in September related to Hurricane Laura also contributed to the reduction.

   

Decreased by 25% in the first nine months 2020 year-on-year for the same reasons.

Monomer production:

   

Decreased 11% in the third quarter 2020 year-on-year to 1,255 kt, essentially due to prolonged unscheduled maintenance on the Port Arthur cracker.

   

Increased 6% in the first nine months 2020 year-on-year as a result of 2019 planned maintenance on the steamcracker at Daesan in South Korea.

Polymer production:

   

Slight decrease of 2% in the third quarter 2020 year-on-year to 1,248 kt, due to the drop in demand.

   

Stable in the first nine months 2020 compared to the first nine months 2019, due to planned maintenance of the steamcracker upstream of the polymer units at Daesan in South Korea in 2019 and offset by the closure of the polystyrene site at El Pratt in Spain and the planned maintenance at the Qatofin platform in Qatar in the first quarter 2020.

Results

 

  3Q20  

    2Q20        3Q19     

3Q20

vs
  3Q19   

  

in millions of dollars

     9M20        9M19     

9M20 vs
  9M19  

13,607   9,433    21,338    -36%    Non-Group sales    41,563    65,558    -37%
(361)   632    1,035    ns    Operating income    (997)    2,763    ns
(247)   (35)    5    ns   

Net income (loss) from equity affiliates and other items

   (339)    265    ns
(51)   (132)    (221)    ns    Tax on net operating income    152    (467)    ns
(659)   465    819    ns    Net operating income    (1,184)    2,561    ns
571   110    133    x4    Adjustments affecting net operating income    2,053    (138)    ns
(88)   575    952    ns    Adjusted net operating income*    869    2,423    -64%
291   302    355    -18%    Organic investments    761    948    -20%
(1)   (15)    19    ns    Net acquisitions    (52)    (163)    ns
290   287    374    -22%   

Net investments

   709    785    -10%

 

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

Adjusted net operating income for the Refining & Chemicals segment:

   

Decreased to a loss of -$88 million in the third quarter 2020. The drop was due to negative refining margins resulting from weak demand, notably for distillates as a result of particularly depressed demand for air transport.

   

Decreased to $869 million in the first nine months 2020, down 64% compared to the same period last year, due to refining margin deterioration and low plant utilization based on crude oil throughput of 62%, partially offset by resilient petrochemical margins and outperformance of the trading activities in the second quarter 2020.

Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2020, the exclusion of the inventory valuation effect had a negative impact of $14 million on the segment’s adjusted net operating income, compared to a positive impact of $90 million in the third quarter 2019. In the third quarter 2020 the exclusion of special items had a positive impact of $585 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the third quarter 2019. In the first nine months 2020, the exclusion of the inventory valuation effect had a positive impact of $1,357 million on the segment’s adjusted net operating income, compared to a negative impact of $254 million in the first nine months 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $696 million on the segment’s adjusted net operating income, compared to a positive impact of $116 million in the first nine months 2019.

In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost4 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $242 million, a decrease of 82% compared to $1,373 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $1,912 million, a decrease of 42% compared to $3,283 in the first nine months 2019.

 

 

4 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.

 

8


In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,027 million, a decrease of 35% compared to $1,575 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $924 million compared to $2,695 million in the first nine months 2019.

B.4.    Marketing & Services segment

Petroleum product sales

 

  3Q20  

     2Q20        3Q19      3Q20 vs
  3Q19  
  

sales in kb/d*

     9M20        9M19      9M20 vs
  9M19  
1,442    1,301    1,848    -22%    Total Marketing & Services sales    1,466    1,848    -21%
819    740    1,034    -21%   

• Europe

   822    1,017    -19%
623    561    814    -23%   

• Rest of world

   645    831    -22%

 

*Excludes trading and bulk refining sales.

Petroleum product sales volumes decreased by 22% compared to a year ago and by 21% in the first nine months 2020 compared to the same period last year, notably due to the impact of Covid-19 and associated lockdown on global demand. However, there was an improvement compared to the previous quarter due to the recovery in demand, mainly in Europe and Asia.

Results

 

  3Q20  

     2Q20        3Q19     

3Q20 vs
  3Q19  

  

in millions of dollars

     9M20        9M19     

9M20 vs
  9M19  

16,397    11,986    21,951    -25%    Non-Group sales    47,058    65,901    -29%
622    234    558    +11%    Operating income    934    1,577    -41%
14    22    (15)    ns   

Net income (loss) from equity affiliates and other items

   46    86    -47%
(187)    (127)    (164)    ns    Tax on net operating income    (346)    (498)    ns
449    129    379    +18%    Net operating income    634    1,165    -46%
12    -    34    -65%    Adjustments affecting net operating income    258    14    x18
461    129    413    +12%    Adjusted net operating income*    892    1,179    -24%
158    155    215    -27%    Organic investments    422    499    -15%
3    (5)    33    -91%    Net acquisitions    4    121    -97%
161    150    248    -35%   

Net investments

   426    620    -31%

 

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

Adjusted net operating income for the Marketing & Services segment was $461 million in the third quarter 2020, an increase of 12% compared to a year ago, due to rising margins.

Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $6 million on the segment’s adjusted net operating income, compared to a negative impact of $19 million in the third quarter 2019. In the third quarter 2020, the exclusion of special items had a positive impact of $6 million on the segment’s adjusted net operating income, compared to a positive impact of $53 million in the third quarter 2019. In the first nine months 2020, the exclusion of the inventory valuation effect had a positive impact of $169 million on the segment’s adjusted net operating income, compared to a negative impact of $46 million in the first nine months 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $89 million on the segment’s adjusted net operating income, compared to a positive impact of $60 million in the first nine months 2019.

In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost5 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $729 million, an increase of 17% compared to $622 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $1,611 million, a decrease of 12% compared to $1,830 million in the first nine months 2019.

 

 

5 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.

 

9


In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,033 million, a decrease of 30% compared to $1,483 million in the third quarter 2020. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $1,453 million, a decrease of 38% compared to $2,326 million in the first nine months 2019.

 

C.

GROUP RESULTS

Net income (Group share)

In the third quarter 2020, net income (Group share) was $202 million, a decrease compared to $2,800 million in the third quarter 2019. In the first nine months 2020, net income (Group share) was $(8,133) million, a decrease compared to $8,667 million in the first nine months 2019.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value6.

Adjusted net income (Group share) was:

 

   

$848 million in the third quarter 2020, compared to $3,017 million in the third quarter 2019, due to lower Brent prices, natural gas prices and refining margins.

 

   

$2,755 million in the first nine months 2020, a decrease of 68% year-on-year, for the same reasons.

Total adjustments affecting net income7 were -$646 million in the third quarter 2020, essentially related to the conversion of the Grandpuits refinery in France and the sale of the Lindsey refinery in the United Kingdom.

Fully-diluted shares

The number of fully-diluted shares was 2,644 million on September 30, 2020.

Acquisitions - Asset sales

Finalized acquisitions were:

   

$150 million in the third quarter 2020, comprised notably of acquiring 51% of the Seagreen offshore wind project in the United Kingdom.

 

   

$2.7 billion in the first nine months 2020, comprised of the item above as well as the acquisition in India of 50% of a portfolio of installed solar activities from Adani Green Energy Limited, the closing of the acquisition of 37.4% stake in Adani Gas Ltd, the acquisition of interests in Blocks 20 and 21 in Angola, and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia.

Finalized asset sales were:

   

$422 million in the third quarter 2020, comprised notably of the sale of non-strategic assets in the UK North Sea to Neo Energy.

 

   

$1.1 billion in the first nine months 2020, comprised notably of the sale above, as well as closing the sale of Block CA1 in Brunei, the sale of the Group’s interest in the Fos Cavaou regasification terminal in France, and 50% of the sale of a portfolio of solar and wind assets from Total Quadran in France.

Cash flow

The Group’s cash flow from operating activities was $4,351 million in the third quarter 2020, a decrease of 47% compared to $8,206 million in the third quarter 2019. The Group’s cash flow from operating activities was $9,129 million in the first nine months 2020, a decrease of 50% compared to $18,086 million in the first nine months 2019.

The change in working capital as determined using the replacement cost method8 excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sale (effective first quarter 2020) and including organic loan repayment from equity affiliates was $560 million in the third quarter 2020, compared to $1,469 million in the third quarter 2019. It is the (increase) decrease in working capital of $980 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $90 million, (ii) the mark-to-market effect of iGRP’s contracts of $(505) million, (iii) the capital gains from renewables project sale of $(4) million and (iv) the organic loan repayments from equity affiliates of $(1) million.

 

 

6 Details shown on page 15 of this exhibit.

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

8 For information on the replacement cost method, refer to the second paragraph of “B. Analysis of business segment results”.

 

10


The change in working capital as determined using the replacement cost method9 excluding the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates in the first nine months 2020 was $(2,070) million, compared to $(1,232) million in the first nine months 2019. It is the (increase) decrease in working capital of $527 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $(1,748) million, (ii) the mark-to-market effect of iGRP’s contracts of $(750) million, (iii) the capital gains from renewables project sale of $(64) million and (iv) the organic loan repayments from equity affiliates of $(35) million.

In the third quarter 2020, operating cash flow before working capital changes10 was $3,791 million, a decrease of 44% compared to $6,737 million in the third quarter 2019. In the first nine months 2020, operating cash flow before working capital changes was $11,199 million, a decrease of 42% compared to $19,318 million in the first nine months 2019.

In the third quarter 2020, operating cash flow excluding the change in working capital at replacement cost11, without financial charges (DACF)12 was $4,281 million, a decrease of 41% compared to $7,269 million in the third quarter 2019. In the first nine months 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF) was $12,701 million, a decrease of 39% compared to $20,854 million in the first nine months 2019.

The Group’s net cash flow13 was:

   

$1,879 million in the third quarter 2020 compared to $19 million in the third quarter 2019, which takes into account a decrease in net investments from $6,718 million to $1,912 million and a decrease in operating cash flow before working capital changes from $6,737 million to $3,791 million.

   

$2.7 billion in the first nine months 2020 compared to $6.1 billion in the first nine months 2019, due to the decrease of $8.1 billion in operating cash flow before working capital changes, partially offset by a reduction in net investments of $4.8 billion.

D. PROFITABILITY

Return on equity was 5.5% for the twelve months ended September 30, 2020.

 

in millions of dollars                                                                                 

     10/01/2019-  
09/30/2020
     07/01/2019 -  
06/30/2020
     10/01/2018-  
09/30/2019

Adjusted net income

       5,960        8,214        12,104

Adjusted shareholders’ equity

       108,885        109,448        117,037

Return on equity (ROE)

       5.5%        7.5%        10.3%

Return on average capital employed was 5.4% for the twelve months ended September 30, 2020.

 

in millions of dollars                                                                                 

     10/01/2019-  
09/30/2020
     07/01/2019 -  
06/30/2020
     10/01/2018-  
09/30/2019

Adjusted net operating income

       7,801        10,125        14,094

Adjusted capital employed

       144,061        145,621        146,222

ROACE

       5.4%        7.0%        9.6%

 

 

 

 

 

 

9 For information on the replacement cost method, refer to the second paragraph of “B. Analysis of business segment results”.

10 “Operating cash flow before working capital changes” is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020) and including organic loan repayment from equity affiliates. Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.

11 “Operating cash flow before working capital changes” is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020) and including organic loan repayment from equity affiliates. Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.

12 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.

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

 

11


E. 2020 SENSITIVITIES*

 

    

        Change

  

Estimated impact
on adjusted net
operating income  

  

Estimated
impact on cash   

flow from
operations

Dollar

           +/- 0.1 $ per     -/+ 0.1 B$    ~0 B$

Average Liquids price**

           +/- 10$/b    +/- 2.9 B$    +/- 3.3 B$

European gas price – NBP ($/Mbtu)

           +/- 1 $/Mbtu    +/- 0.35 B$    +/- 0.35 B$

Variable cost margin, European refining (VCM)

           +/- 10 $/t    +/- 0.5 B$    +/- 0.6 B$

                                                 

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

** In a 60 $/b Brent environment.

F. SUMMARY AND OUTLOOK

The oil market environment remains uncertain and will depend notably on the speed of the global demand recovery, affected by the Covid-19 pandemic.

Oil prices have remained above $40/b since June, supported by strong compliance with OPEC+ quotas and lower hydrocarbon production in North America. In this context, given the quotas, the Group now anticipates full-year 2020 production below 2.9 Mboe/d.

TOTAL anticipates that the increase in oil prices over the second and third quarters will have a positive impact on its average LNG selling price in the fourth quarter, which is expected to be over $4/Mbtu.

In the Downstream, since the beginning of the fourth quarter, European refining margins have averaged more than $10/t and remain fragile given the low demand for jet fuel that weighs on the valuation of all distillates.

In this context, the Group maintains strong discipline on spending. The Group’s operating cost reduction program will surpass its objective with savings of more than $1 billion in 2020. Net investments will be less than $13 billion in 2020, including $2 billion for renewables and electricity.

The Group’s priority is the generation of a level of cash flow that allows it to continue to invest in profitable projects, support the dividend and maintain a solid balance sheet. The Group’s teams remain fully committed to the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

 

12


FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business activities and industrial strategy of TOTAL. This document may also contain statements regarding the perspectives, objectives and goals of the Group, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by the Group, it being specified that the means to be deployed do not depend solely on TOTAL. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by the Group as of the date of this document.

These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences including those due to epidemics such as Covid-19. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.

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.

For additional factors, you should read the information set forth under “Item 3. -3.2 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F/A for the year ended December 31, 2019.

 

13


OPERATING INFORMATION BY SEGMENT

Group production (Exploration & Production + iGRP)

 

    3Q20            2Q20            3Q19         

3Q20 vs

3Q19  

 

 

  

Combined liquids and gas production by

region (kboe/d)

     9M20          9M19        9M20 vs

9M19

 

 

  969        1,032        1,004        -3%     

Europe and Central Asia

     1,032        997      +4%
  598        653        733        -18%     

Africa

     651        705      -8%
  576        641        720        -20%     

Middle East and North Africa

     633        703      -10%
  343        314        363        -5%     

Americas

     343        364      -6%
  229        206        221        +4%     

Asia-Pacific

     223        212      +5%
  2,715        2,846        3,040        -11%     

Total production

     2,882        2,981      -3%
  667        699        698        -4%     

• includes equity affiliates

     706        719      -2%
  3Q20        2Q20        3Q19       

3Q20 vs

3Q19

 

 

   Liquids production by region (kb/d)      9M20        9M19      9M20 vs

9M19

 

 

  359        381        367        -2%     

Europe and Central Asia

     381        349      +9%
  458        514        583        -21%     

Africa

     509        558      -9%
  432        494        562        -23%     

Middle East and North Africa

     481        543      -12%
  144        127        163        -11%     

Americas

     150        167      -10%
  44        37        44        -1%     

Asia-Pacific

     42        41      +3%
  1,437        1,553        1,720        -16%     

Total production

     1,563        1,658      -6%
  197        199        210        -6%     

• includes equity affiliates

     203        217      -6%
  3Q20        2Q20        3Q19       

3Q20 vs

3Q19

 

 

   Gas production by region (Mcf/d)      9M20        9M19      9M20 vs

9M19

 

 

  3,284        3,506        3,431        -4%     

Europe and Central Asia

     3,507        3,498      -
  713        706        768        -7%     

Africa*

     722        755      -4%
  801        818        866        -8%     

Middle East and North Africa

     844        879      -4%
  1,115        1,047        1,124        -1%     

Americas

     1,085        1,111      -2%
  1,060        968        1,011        +5%     

Asia-Pacific*

     1,035        982      +5%
  6,973        7,045        7,200        -3%     

Total production*

     7,193        7,225      -
  2,540        2,698        2,635        -4%     

• includes equity affiliates*

     2,714        2,719      -

 

 

 

 

 

                                                                              

*3Q19 and 9M19 data restated

 

Downstream (Refining & Chemicals and Marketing & Services)

 

 

 

 

 

 

 

  
  3Q20        2Q20        3Q19       

3Q20 vs

3Q19

 

 

   Petroleum product sales by region (kb/d)      9M20        9M19      9M20 vs

9M19

 

 

  1,475        1,449        1,999        -26%     

Europe

     1,565        2,013      -22%
  541        463        677        -20%     

Africa

     562        695      -19%
  673        861        920        -27%     

Americas

     767        868      -12%
  460        433        541        -15%     

Rest of world

     446        564      -21%
  3,149        3,208        4,136        -24%     

Total consolidated sales

     3,340        4,141      -19%
  417        366        544        -23%     

• includes bulk sales

     427        545      -22%
  1,290        1,541        1,745        -26%     

• includes trading

     1,447        1,748      -17%
  3Q20        2Q20        3Q19       

3Q20 vs

3Q19

 

 

   Petrochemicals production* (kt)      9M20        9M19      9M20 vs

9M19

 

 

  1,274        1,275        1,377        -7%     

Europe

     3,821        4,110      -7%
  513        637        648        -21%     

Americas

     1,813        1,737      +4%
  716        672        646        +11%     

Middle East and Asia

     2,040        1,633      +25%

                                                                              

*Olefins, polymers

 

14


ADJUSTMENT ITEMS TO NET INCOME (GROUP SHARE)

 

3Q20    2Q20    3Q19    In millions of dollars    9M20    9M19

 

(706)    (8,321)    (156)   

Special items affecting net income (Group share)

   (9,361)    (226)
-    -    -   

•   Gain (loss) on asset sales

   -    -
(70)    (20)    (20)   

•   Restructuring charges

   (170)    (53)
(293)    (8,101)    (160)   

•   Impairments

   (8,394)    (217)
(343)    (200)    24   

•   Other

   (797)    44
4    (94)    (71)   

After-tax inventory effect: FIFO vs. replacement cost

   (1,504)    289
56    (80)    10   

Effect of changes in fair value

   (23)    (59)
(646)    (8,495)    (217)   

Total adjustments affecting net income

   (10,888)    4

INVESTMENTS — DIVESTMENTS

 

  3Q20      2Q20    3Q19   

3Q20 vs 

2Q19

   in millions of dollars    9M20    9M19   

9M20 vs 

9M19

 

  

 

  

 

  

 

  

 

  

 

  

 

2,184    2,201    3,296    -34%   

Organic investments (a)

   6,908    9,107    -24%
148    162    152    -3%   

  Capitalized exploration

   445    569    -22%
290    733    242    +20%   

  Increase in non-current loans

   1,302    742    +75%
(330)    (58)    (61)    ns   

  Repayment of non-current loans, excluding organic loan repayment from equity affiliates*

   (505)    (449)    ns
(11)    (47)    (109)    ns   

  Change in debt from renewable projects (Group share)

   (163)    (109)    ns
150    857    4,429    -97%   

Acquisitions (b)

   2,651    5,713    -54%
422    136    1,007    -58%   

Asset sales (c)

   1,100    1,582    -30%
7    22    105    -93%   

  Change in debt from renewable projects (partner share)

   90    105    -14%
-    -    -    ns   

Other transactions with non-controlling interests (d)

   -    -    ns
1,912    2,922    6,718    -72%   

Net investments (a+b-c-d)

   8,459    13,238    -36%
(1)    (41)    (101)    ns   

Organic loan repayment from equity affiliates* (e)

   (35)    (200)    ns
18    69    214    -92%   

Change in debt from renewable projects financing** (f)

   253    214    +18%
28    22    -    ns   

Capex linked to capitalized leasing contracts (g)

   74    -    ns
1,901    2,928    6,831    -72%   

Cash flow used in investing activities (a+b-c+e+f-g)

   8,603    13,252    -35%

                                                                              

*Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations.

**Change in debt from renewable projects (Group share and partner share).

 

15


CASH FLOW

 

  3Q20  

    2Q20        3Q19        3Q20 vs  
3Q19
  

in millions of dollars

     9M20       9M19     9M20
vs
9M19
4,281   4,143    7,269    -41%   

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

   12,701   20,854   -39%
(491)   (499)    (532)    ns   

  Financial charges

   (1,502)   (1,536)   ns
3,791   3,644    6,737    -44%   

Operating cash flow before working capital changes (a)*

   11,199   19,318   -42%
475   (65)    1,639    -71%   

  (Increase) decrease in working capital**

   (223)   (1,489)   ns
90   (42)    (69)    ns   

  Inventory effect

   (1,748)   457   ns
(4)   (17)    -    ns   

  Capital gain from renewable projects sale

   (64)   -   ns
(1)   (41)    (101)    ns   

  Organic loan repayment from equity affiliates

   (35)   (200)   ns
4,351   3,479    8,206    -47%   

Cash flow from operations

   9,129   18,086   -50%
2,184   2,201    3,296    -34%   

Organic investments (b)

   6,908   9,107   -24%
1,607   1,443    3,441    -53%   

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

   4,291   10,211   -58%
1,912   2,922    6,718    -72%   

Net investments (c)

   8,459   13,238   -36%
1,879   722    19    x98.9   

Net cash flow (a-c)

   2,740   6,080   -55%

 

* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020). Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.

** Changes in working capital are presented excluding the mark-to-market effect of iGRP’s contracts. See also “C. Group results – Cash Flow”.

GEARING RATIO

 

in millions of dollars

       09/30/2020           06/30/2020           09/30/2019    

Current borrowings

   14,980   16,154   14,631

Net current financial assets

   (5,815)   (6,159)   (3,012)

Net financial assets classified as held for sale

   5   -   -

Non-current financial debt

   61,477   61,540   47,923

Non-current financial assets

   (3,155)   (2,431)   (767)

Cash and cash equivalents

   (30,593)   (29,727)   (27,454)

 

  

 

 

 

 

 

Net debt (a)

   36,899   39,377   31,321

 

  

 

 

 

 

 

of which leases

   7,499   7,383   6,888

Shareholders’ equity – Group share

   102,234   101,205   114,994

Non-controlling interests

   2,177   2,334   2,319

 

  

 

 

 

 

 

Shareholders’ equity (b)

   104,411   103,539   117,313

 

  

 

 

 

 

 

Net-debt-to-capital ratio = a/(a+b)*

   26.1%   27.6%   21.1%

Net-debt-to-capital ratio excluding leases

   22.0%   23.6%   17.2%

 

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

 

16


RETURN ON AVERAGE CAPITAL EMPLOYED

Twelve months ended September 30, 2020

 

in millions of dollars

   Integrated
Gas,
  Renewables &  

Power
     Exploration &  
Production
   Refining &
     Chemicals     
   Marketing
    & Services    

Adjusted net operating income

       2,318        3,326        1,449        1,366

Capital employed at 09/30/2019*

       41,516        88,560        11,658        7,570

Capital employed at 09/30/2020*

       43,799        78,548        11,951        8,211

ROACE

       5.4%          4.0%          12.3%          17.3%  

 

Twelve months ended June 30, 2020

 

                   

in millions of dollars

   Integrated
Gas,
Renewables &
Power
   Exploration &
Production
   Refining &
Chemicals
   Marketing
& Services

Adjusted net operating income

       2,607        4,259        2,489        1,318

Capital employed at 06/30/2019*

       37,290        90,633        12,300        8,535

Capital employed at 06/30/2020*

       43,527        79,096        12,843        8,366

ROACE

       6.5%          5.0%          19.8%          15.6%  

 

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

MAIN INDICATORS

 

         $/€            Brent    
($/b)
   Average
liquids price*
($/b)
   Average gas
price*
($/Mbtu)
   Average LNG
price**
($/Mbtu)
   Variable cost
margin,
European
refining*** ($/t)  

Third quarter 2020

       1.17        42.9        39.9        2.52        3.57        -2.7

Second quarter 2020

       1.10        29.6        23.4        2.61        4.40        14.3

First quarter 2020

       1.10        50.1        44.4        3.35        6.32        26.3

Fourth quarter 2019

       1.11        63.1        59.1        3.76        6.52        30.2

Third quarter 2019

       1.11        62.0        58.0        3.48        5.93        47.4

 

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

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

*** This indicator represents the average margin on variable costs realized by TOTAL’s European refining business (equal to the difference between the sales of refined products realized by TOTAL’s European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons).

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

 

17


CONSOLIDATED STATEMENT OF INCOME

TOTAL

 

                                                                                

(unaudited)

 

 
(M$)(a)    3rd quarter
2020
   2nd quarter
2020
  3rd quarter
2019

 

    

 

 

 

 

 

 

 

Sales      33,142         25,730       48,589  
Excise taxes      (5,925)        (4,168     (6,051

Revenues from sales

     27,217         21,562       42,538  
Purchases, net of inventory variation      (16,885)        (12,025     (27,898
Other operating expenses      (5,610)        (6,321     (6,362
Exploration costs      (139)        (114     (96
Depreciation, depletion and impairment of tangible assets and mineral interests      (3,493)        (11,593     (4,173
Other income      457         362       167  
Other expense      (281)        (108     (559
Financial interest on debt      (547)        (530     (598
Financial income and expense from cash & cash equivalents      89         50       -  

Cost of net debt

     (458)        (480     (598
Other financial income      134         419       163  
Other financial expense      (165)        (161     (178
Net income (loss) from equity affiliates      94         (447     1,381  
Income taxes      (690)        484       (1,540

 

    

 

 

 

 

 

 

 

Consolidated net income

     181         (8,422     2,845  

 

    

 

 

 

 

 

 

 

Group share      202         (8,369     2,800  
Non-controlling interests      (21)        (53     45  

 

    

 

 

 

 

 

 

 

Earnings per share ($)      0.04         (3.27     1.05  

 

    

 

 

 

 

 

 

 

Fully-diluted earnings per share ($)      0.04         (3.27     1.04  

 

    

 

 

 

 

 

 

 

(a) Except for per share amounts.

 

18


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

 

                                                                                

(unaudited)

 

 
(M$)    3rd quarter
2020
   2nd quarter
2020
  3rd quarter
2019

 

    

 

 

 

 

 

 

 

Consolidated net income      181        (8,422     2,845  

 

    

 

 

 

 

 

 

 

Other comprehensive income        
Actuarial gains and losses      (6)        (356     5  
Change in fair value of investments in equity instruments      221         90       19  
Tax effect             101       (1
Currency translation adjustment generated by the parent company      3,663         1,780       (3,520

 

    

 

 

 

 

 

 

 

Items not potentially reclassifiable to profit and loss      3,878         1,615       (3,497

 

    

 

 

 

 

 

 

 

Currency translation adjustment      (1,830)        (919     1,207  
Cash flow hedge      363         231       (202
Variation of foreign currency basis spread      (35)        14       (4
Share of other comprehensive income of equity affiliates, net amount      (804)        296       73  
Other      (7)              (6
Tax effect      (115)        (78     69  

 

    

 

 

 

 

 

 

 

Items potentially reclassifiable to profit and loss      (2,428)        (456     1,137  

 

    

 

 

 

 

 

 

 

Total other comprehensive income (net amount)      1,450         1,159       (2,360

 

    

 

 

 

 

 

 

 

       

 

    

 

 

 

 

 

 

 

Comprehensive income      1,631         (7,263     485  

 

    

 

 

 

 

 

 

 

Group share      1,536         (7,253     462  

Non-controlling interests

     95         (10     23  

 

19


CONSOLIDATED STATEMENT OF INCOME

TOTAL

 

(unaudited)

 

 
(M$)(a)    9 months
2020
     9 months
2019

 

    

 

 

 

Sales      102,742         151,036  
Excise taxes      (15,386)        (18,172

Revenues from sales

     87,356         132,864  
Purchases, net of inventory variation      (56,978)        (88,009
Other operating expenses      (18,875)        (20,165
Exploration costs      (393)        (554
Depreciation, depletion and impairment of tangible assets and mineral interests      (18,721)        (11,300
Other income      1,399         735  
Other expense      (809)        (957
Financial interest on debt      (1,646)        (1,727
Financial income and expense from cash & cash equivalents      (16)        (70

Cost of net debt

     (1,662)        (1,797
Other financial income      741         649  
Other financial expense      (507)        (561
Net income (loss) from equity affiliates      379         2,904  
Income taxes      (169)        (5,020

 

    

 

 

 

Consolidated net income

     (8,239)        8,789  

 

    

 

 

 

Group share      (8,133)        8,667  
Non-controlling interests      (106)        122  

 

    

 

 

 

Earnings per share ($)      (3.22)        3.22  

 

    

 

 

 

Fully-diluted earnings per share ($)      (3.22)        3.20  

 

    

 

 

 

(a) Except for per share amounts.

 

20


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

 

                                                     

(unaudited)

 

 
(M$)    9 months
2020
   9 months
2019

 

    

 

 

 

Consolidated net income      (8,239)        8,789  

 

    

 

 

 

Other comprehensive income      
Actuarial gains and losses      (229)        (54
Change in fair value of investments in equity instruments      147         126  
Tax effect      86         13  
Currency translation adjustment generated by the parent company      3,467         (3,994

 

    

 

 

 

Items not potentially reclassifiable to profit and loss      3,471         (3,909

 

    

 

 

 

Currency translation adjustment      (2,770)        1,394  
Cash flow hedge      (930)        (575
Variation of foreign currency basis spread      35         50  
Share of other comprehensive income of equity affiliates, net amount      (1,731)        326  
Other      (4)        (4
Tax effect      252         176  

 

    

 

 

 

Items potentially reclassifiable to profit and loss      (5,148)        1,367  

 

    

 

 

 

Total other comprehensive income (net amount)      (1,677)        (2,542

 

    

 

 

 

     

 

    

 

 

 

Comprehensive income      (9,916)        6,247  

 

    

 

 

 

Group share      (9,888)        6,099  

Non-controlling interests

     (28)        148  

 

21


CONSOLIDATED BALANCE SHEET

TOTAL

 

     September 30,
2020
     June 30,
2020
  December 31,
2019
  September 30,
2019
(M$)    (unaudited)      (unaudited)       (unaudited)

 

    

 

 

 

 

 

 

 

 

 

 

 

ASSETS

         
Non-current assets     

  

        
Intangible assets, net      33,145         33,114       33,178       31,539  
Property, plant and equipment, net      104,355         104,925       116,408       116,900  
Equity affiliates : investments and loans      27,386         27,470       27,122       27,172  
Other investments      1,822         1,627       1,778       1,738  
Non-current financial assets      3,155         2,431       912       767  
Deferred income taxes      6,952         7,257       6,216       5,689  
Other non-current assets      2,570         2,539       2,415       2,264  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total non-current assets

     179,385         179,363       188,029       186,069  

 

    

 

 

 

 

 

 

 

 

 

 

 

Current assets          
Inventories, net      12,373         12,688       17,132       16,226  
Accounts receivable, net      12,893         13,481       18,488       18,568  
Other current assets      14,637         17,155       17,013       14,925  
Current financial assets      6,011         6,570       3,992       3,781  
Cash and cash equivalents      30,593         29,727       27,352       27,454  
Assets classified as held for sale      1,090         421       1,288       418  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total current assets      77,597         80,042       85,265       81,372  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total assets      256,982         259,405       273,294       267,441  

 

    

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

         
Shareholders’ equity          
Common shares      8,267         8,159       8,123       8,300  
Paid-in surplus and retained earnings      107,632         107,934       121,170       123,805  
Currency translation adjustment      (12,275)        (13,265     (11,503     (13,297
Treasury shares      (1,390)        (1,623     (1,012     (3,814

 

    

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity - Group share

     102,234         101,205       116,778       114,994  

 

    

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

     2,177         2,334       2,527       2,319  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

     104,411         103,539       119,305       117,313  

 

    

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities          
Deferred income taxes      10,367         10,346       11,858       11,333  
Employee benefits      3,719         3,612       3,501       3,273  
Provisions and other non-current liabilities      19,351         19,487       20,613       20,903  
Non-current financial debt      61,477         61,540       47,773       47,923  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total non-current liabilities

     94,914         94,985       83,745       83,432  

 

    

 

 

 

 

 

 

 

 

 

 

 

Current liabilities          
Accounts payable      18,880         19,198       28,394       26,237  
Other creditors and accrued liabilities      22,806         24,790       25,749       24,728  
Current borrowings      14,980         16,154       14,819       14,631  
Other current financial liabilities      196         411       487       769  
Liabilities directly associated with the assets classified as held for sale      795         328       795       331  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

     57,657         60,881       70,244       66,696  

 

    

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & shareholders’ equity

     256,982         259,405       273,294       267,441  

 

    

 

 

 

 

 

 

 

 

 

 

 

 

22


CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

 

                                                                                
(unaudited)  
(M$)    3rd quarter
2020
  2nd quarter
2020
  3rd quarter
2019

 

   

 

 

 

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES       
Consolidated net income      181        (8,422     2,845  
Depreciation, depletion, amortization and impairment      3,634        11,701       4,242  
Non-current liabilities, valuation allowances and deferred taxes      (88)       (796     235  
(Gains) losses on disposals of assets      (309)       (131     (74
Undistributed affiliates’ equity earnings      178        978       (876
(Increase) decrease in working capital      980        431       1,523  
Other changes, net      (225)       (282     311  

 

   

 

 

 

 

 

 

 

Cash flow from operating activities

     4,351        3,479       8,206  
CASH FLOW USED IN INVESTING ACTIVITIES       
Intangible assets and property, plant and equipment additions      (2,157)       (2,409     (2,210
Acquisitions of subsidiaries, net of cash acquired                  (4,385
Investments in equity affiliates and other securities      (229)       (136     (258
Increase in non-current loans      (301)       (733     (242

 

   

 

 

 

 

 

 

 

Total expenditures      (2,687     (3,278     (7,095
Proceeds from disposals of intangible assets and property, plant and equipment      363        219       63  
Proceeds from disposals of subsidiaries, net of cash sold            12       (1
Proceeds from disposals of non-current investments      77        20       40  
Repayment of non-current loans      342        99       162  

 

  

 

 

 

 

 

 

 

 

 

 

 

Total divestments

     786        350       264  

 

   

 

 

 

 

 

 

 

Cash flow used in investing activities

     (1,901)       (2,928     (6,831
CASH FLOW USED IN FINANCING ACTIVITIES       
Issuance (repayment) of shares:       

- Parent company shareholders

           374       1  

- Treasury shares

           (2     (420
Dividends paid:       

- Parent company shareholders

     (825)       (1,928     -  

- Non-controlling interests

     (103)       (76     (21
Net issuance (repayment) of perpetual subordinated notes      331        -       -  
Payments on perpetual subordinated notes      (22)       (134     -  
Other transactions with non-controlling interests      (75)       (22     -  
Net issuance (repayment) of non-current debt      224        15,430       4,466  
Increase (decrease) in current borrowings      (2,343)       (6,604     (3,209
Increase (decrease) in current financial assets and liabilities      730        449       (310

Cash flow from (used in) financing activities

     (2,083)       7,487       507  

 

   

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

     367        8,038       1,882  

 

   

 

 

 

 

 

 

 

Effect of exchange rates      499        55       (1,151
Cash and cash equivalents at the beginning of the period      29,727        21,634       26,723  

 

   

 

 

 

 

 

 

 

Cash and cash equivalents at the end of the period

     30,593        29,727       27,454  

 

   

 

 

 

 

 

 

 

 

23


CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

 

                                                     
(unaudited)

 

                                                     
(M$)    9 months
2020
   9 months
2019

 

    

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES      
Consolidated net income      (8,239)        8,789  
Depreciation, depletion, amortization and impairment      19,065         11,777  
Non-current liabilities, valuation allowances and deferred taxes      (1,545)        614  
(Gains) losses on disposals of assets      (649)        (438
Undistributed affiliates’ equity earnings      569         (1,350
(Increase) decrease in working capital      527         (1,764
Other changes, net      (599)        458  

 

    

 

 

 

Cash flow from operating activities

     9,129         18,086  
CASH FLOW USED IN INVESTING ACTIVITIES      
Intangible assets and property, plant and equipment additions      (6,930)        (7,795
Acquisitions of subsidiaries, net of cash acquired      (188)        (4,593
Investments in equity affiliates and other securities      (1,899)        (1,448
Increase in non-current loans      (1,329)        (742

 

    

 

 

 

Total expenditures

     (10,346)        (14,578
Proceeds from disposals of intangible assets and property, plant and equipment      626         226  
Proceeds from disposals of subsidiaries, net of cash sold      158         145  
Proceeds from disposals of non-current investments      392         306  
Repayment of non-current loans      567         649  

 

    

 

 

 

Total divestments

     1,743         1,326  

 

    

 

 

 

Cash flow used in investing activities

     (8,603)        (13,252
CASH FLOW USED IN FINANCING ACTIVITIES      
Issuance (repayment) of shares:      

- Parent company shareholders

     374         451  

- Treasury shares

     (611)        (2,190
Dividends paid:      

- Parent company shareholders

     (4,635)        (4,765

- Non-controlling interests

     (179)        (114
Net issuance (repayment) of perpetual subordinated notes      331         -  
Payments on perpetual subordinated notes      (253)        (315
Other transactions with non-controlling interests      (145)        (150
Net issuance (repayment) of non-current debt      15,696        8,047  
Increase (decrease) in current borrowings      (6,162)        (4,698
Increase (decrease) in current financial assets and liabilities      (1,816)        (368

Cash flow from (used in) financing activities

     2,600         (4,102

 

    

 

 

 

Net increase (decrease) in cash and cash equivalents

     3,126         732  

 

    

 

 

 

Effect of exchange rates      115         (1,185
Cash and cash equivalents at the beginning of the period      27,352         27,907  

 

    

 

 

 

Cash and cash equivalents at the end of the period

     30,593         27,454  

 

    

 

 

 

 

24


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

TOTAL

 

(unaudited)

 

 
     Common shares issued     Paid-in
surplus and
retained
earnings
    Currency
translation
adjustment
    Treasury shares     Shareholders’
equity - Group

Share
    Non-controlling
interests
    Total
shareholders’
equity
 
(M$)    Number     Amount     Number     Amount  
As of January 1, 2019      2,640,602,007       8,227       120,569       (11,313     (32,473,281     (1,843     115,640       2,474       118,114  

Net income of the first nine months 2019

     -       -       8,667       -       -       -       8,667       122       8,789  

Other comprehensive income

     -       -       (584     (1,984     -       -       (2,568     26       (2,542

Comprehensive Income

     -       -       8,083       (1,984     -       -       6,099       148       6,247  

Dividend

     -       -       (5,781     -       -       -       (5,781     (114     (5,895

Issuance of common shares

     26,388,503       73       1,269       -       -       -       1,342       -       1,342  

Purchase of treasury shares

     -       -       -       -       (40,871,207     (2,189     (2,189     -       (2,189

Sale of treasury shares(a)

     -       -       (218     -       4,278,158       218       -       -       -  

Share-based payments

     -       -       157       -       -       -       157       -       157  

Share cancellation

     -       -       -       -       -       -       -       -       -  

Net issuance (repayment) of perpetual subordinated notes

     -       -       (4     -       -       -       (4     -       (4

Payments on perpetual subordinated notes

     -       -       (280     -       -       -       (280     -       (280

Other operations with

non-controlling interests

     -       -       -       -       -       -       -       (150     (150

Other items

     -       -       10       -       -       -       10       (39     (29
As of September 30, 2019      2,666,990,510       8,300       123,805       (13,297     (69,066,330     (3,814     114,994       2,319       117,313  

Net income of the fourth quarter 2019

     -       -       2,600       -       -       -       2,600       49       2,649  

Other comprehensive income

     -       -       (75     1,794       -       -       1,719       42       1,761  

Comprehensive Income

     -       -       2,525       1,794       -       -       4,319       91       4,410  

Dividend

     -       -       (1,949     -       -       -       (1,949     (1     (1,950

Issuance of common shares

     -       1       (4     -       -       -       (3     -       (3

Purchase of treasury shares

     -       -       -       -       (11,518,129     (621     (621     -       (621

Sale of treasury shares(a)

     -       -       (1     -       790       1       -       -       -  

Share-based payments

     -       -       50       -       -       -       50       -       50  

Share cancellation

     (65,109,435     (178     (3,244     -       65,109,435       3,422       -       -       -  

Net issuance (repayment) of perpetual subordinated notes

     -       -       -       -       -       -       -       -       -  

Payments on perpetual subordinated notes

     -       -       (73     -       -       -       (73     -       (73

Other operations with

non-controlling interests

     -       -       55       -       -       -       55       108       163  

Other items

     -       -       6       -       -       -       6       10       16  
As of December 31, 2019      2,601,881,075       8,123       121,170       (11,503     (15,474,234     (1,012     116,778       2,527       119,305  

Net income of the first nine months 2020

     -       -       (8,133     -       -       -       (8,133     (106     (8,239

Other comprehensive income

     -       -       (983     (772     -       -       (1,755     78       (1,677

Comprehensive Income

     -       -       (9,116     (772     -       -       (9,888     (28     (9,916

Dividend

     -       -       (5,829     -       -       -       (5,829     (234     (6,063

Issuance of common shares

     51,242,950       144       1,470       -       -       -       1,614       -       1,614  

Purchase of treasury shares

     -       -       -       -       (13,236,044     (611     (611     -       (611

Sale of treasury shares(a)

     -       -       (233     -       4,297,502       233       -       -       -  

Share-based payments

     -       -       144       -       -       -       144       -       144  

Share cancellation

     -       -       -       -       -       -       -       -       -  

Net issuance (repayment) of perpetual subordinated notes

     -       -       331       -       -       -       331       -       331  

Payments on perpetual subordinated notes

     -       -       (227     -       -       -       (227     -       (227

Other operations with

non-controlling interests

     -       -       (63     -       -       -       (63     (82     (145

Other items

     -       -       (15     -       -       -       (15     (6     (21
As of September 30, 2020      2,653,124,025       8,267       107,632       (12,275     (24,412,776     (1,390     102,234       2,177       104,411  

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

 

25


INFORMATION BY BUSINESS SEGMENT

TOTAL

 

(unaudited)

 

3rd quarter 2020   

Exploration

&

Production

 

   

Integrated Gas,

Renewables

& Power

 

   

Refining

&

Chemicals

 

   

Marketing

&

Services

 

    Corporate     Intercompany     Total  

(M$)

 

Non-Group sales      1,142       1,995       13,607       16,397       1       -       33,142  
Intersegment sales      4,248       480       4,167       63       24       (8,982     -  
Excise taxes      -       -       (658     (5,267     -       -       (5,925
Revenues from sales      5,390       2,475       17,116       11,193       25       (8,982     27,217  
Operating expenses      (2,435     (1,880     (16,799     (10,301     (201     8,982       (22,634
Depreciation, depletion and impairment of tangible assets and mineral interests      (2,187     (342     (678     (270     (16     -       (3,493
Operating income      768       253       (361     622       (192     -       1,090  
Net income (loss) from equity affiliates and other items      251       225       (247     14       (4     -       239  
Tax on net operating income      (243     (266     (51     (187     3       -       (744
Net operating income      776       212       (659     449       (193     -       585  
Net cost of net debt                  (404
Non-controlling interests                                                      21  
Net income - group share                  202  
              
               
3rd quarter 2020 (adjustments)(a)   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      -       33       -       -       -       -       33  
Intersegment sales      -       -       -       -       -       -       -  
Excise taxes      -       -       -       -       -       -       -  
Revenues from sales      -       33       -       -       -       -       33  
Operating expenses      (51     (49     (48     (6     -       -       (154
Depreciation, depletion and impairment of tangible assets and mineral interests      -       -       (290     -       -       -       (290
Operating income (b)      (51     (16     (338     (6     -       -       (411
Net income (loss) from equity affiliates and other items      8       (64     (215     (6     -       -       (277
Tax on net operating income      18       7       (18     -       -       -       7  
Net operating income (b)      (25     (73     (571     (12     -       -       (681
Net cost of net debt                  29  
Non-controlling interests                                                      6  
Net income - group share                  (646

(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

     -       -       95       (5     -      

- On net operating income

     -       -       14       (6     -      
              
               
3rd quarter 2020 (adjusted)   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      1,142       1,962       13,607       16,397       1       -       33,109  
Intersegment sales      4,248       480       4,167       63       24       (8,982     -  
Excise taxes      -       -       (658     (5,267     -       -       (5,925
Revenues from sales      5,390       2,442       17,116       11,193       25       (8,982     27,184  
Operating expenses      (2,384     (1,831     (16,751     (10,295     (201     8,982       (22,480
Depreciation, depletion and impairment of tangible assets and mineral interests      (2,187     (342     (388     (270     (16     -       (3,203
Adjusted operating income      819       269       (23     628       (192     -       1,501  
Net income (loss) from equity affiliates and other items      243       289       (32     20       (4     -       516  
Tax on net operating income      (261     (273     (33     (187     3       -       (751
Adjusted net operating income      801       285       (88     461       (193     -       1,266  
Net cost of net debt                  (433
Non-controlling interests                                                      15  
Adjusted net income - group share                  848  
              
               
3rd quarter 2020   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Total expenditures      1,291       874       317       185       20         2,687  
Total divestments      362       380       17       25       2         786  
Cash flow from operating activities      2,043       654       1,027       1,033       (406             4,351  

 

26


INFORMATION BY BUSINESS SEGMENT

TOTAL

 

(unaudited)

 

               
2nd quarter 2020   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

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

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

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

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

 

(b) Of which inventory valuation effect

              

- On operating income

     -       -       (26     (16     -      

- On net operating income

     -       -       (86     (9     -      
              
               
2nd quarter 2020 (adjusted)   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

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

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Total expenditures      1,606       1,170       307       174       21         3,278  
Total divestments      204       89       22       26       9         350  
Cash flow from operating activities      910       1,389       1,080       819       (719             3,479  

 

27


INFORMATION BY BUSINESS SEGMENT

TOTAL

 

(unaudited)

 

               
3rd quarter 2019   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      1,631       3,667       21,338       21,951       2       -       48,589  
Intersegment sales      7,761       573       8,341       155       15       (16,845     -  
Excise taxes      -       -       (713     (5,338     -       -       (6,051
Revenues from sales      9,392       4,240       28,966       16,768       17       (16,845     42,538  
Operating expenses      (3,999     (3,558     (27,518     (15,963     (163     16,845       (34,356
Depreciation, depletion and impairment of tangible assets and mineral interests      (3,136     (361     (413     (247     (16     -       (4,173
Operating income      2,257       321       1,035       558       (162     -       4,009  
Net income (loss) from equity affiliates and other items      77       898       5       (15     9       -       974  
Tax on net operating income      (1,094     (222     (221     (164     70       -       (1,631
Net operating income      1,240       997       819       379       (83     -       3,352  
Net cost of net debt                  (507
Non-controlling interests                                                      (45
Net income - group share                  2,800  
              
               
3rd quarter 2019 (adjustments)(a)   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      -       12       -       -       -       -       12  
Intersegment sales      -       -       -       -       -       -       -  
Excise taxes      -       -       -       -       -       -       -  
Revenues from sales      -       12       -       -       -       -       12  
Operating expenses      (100     (41     (96     22       -       -       (215
Depreciation, depletion and impairment of tangible assets and mineral interests      (153     (9     (22     (2     -       -       (186
Operating income (b)      (253     (38     (118     20       -       -       (389
Net income (loss) from equity affiliates and other items      (90     599       (23     (53     -       -       433  
Tax on net operating income      (151     (138     8       (1     -       -       (282
Net operating income (b)      (494     423       (133     (34     -       -       (238
Net cost of net debt                  (4
Non-controlling interests                                                      25  
Net income - group share                  (217

(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

     -       -       (94     25       -      

- On net operating income

     -       -       (90     19       -      
              
               
3rd quarter 2019 (adjusted)   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      1,631       3,655       21,338       21,951       2       -       48,577  
Intersegment sales      7,761       573       8,341       155       15       (16,845     -  
Excise taxes      -       -       (713     (5,338     -       -       (6,051
Revenues from sales      9,392       4,228       28,966       16,768       17       (16,845     42,526  
Operating expenses      (3,899     (3,517     (27,422     (15,985     (163     16,845       (34,141
Depreciation, depletion and impairment of tangible assets and mineral interests      (2,983     (352     (391     (245     (16     -       (3,987
Adjusted operating income      2,510       359       1,153       538       (162     -       4,398  
Net income (loss) from equity affiliates and other items      167       299       28       38       9       -       541  
Tax on net operating income      (943     (84     (229     (163     70       -       (1,349
Adjusted net operating income      1,734       574       952       413       (83     -       3,590  
Net cost of net debt                  (503
Non-controlling interests                                                      (70
Adjusted net income - group share                  3,017  
              
               
3rd quarter 2019   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Total expenditures      2,077       4,331       386       276       25         7,095  
Total divestments      23       192       14       30       5         264  
Cash flow from operating activities      5,007       401       1,575       1,483       (260             8,206  

 

28


INFORMATION BY BUSINESS SEGMENT

TOTAL

 

(unaudited)

 

               
9 months 2020   

Exploration

&

Production

   

Integrated Gas,

Renewables

& Power

   

Refining

&

Chemicals

   

Marketing

&

Services

    Corporate     Intercompany     Total  
(M$)
Non-Group sales      3,716       10,398       41,563       47,058       7       -       102,742  
Intersegment sales      12,909       1,375       13,218       259       83       (27,844     -  
Excise taxes      -       -       (1,777     (13,609     -       -       (15,386
Revenues from sales      16,625       11,773       53,004       33,708       90       (27,844     87,356  
Operating expenses      (8,483     (10,278     (52,535     (32,031     (763     27,844       (76,246
Depreciation, depletion and impairment of tangible assets and mineral interests      (14,498     (1,958     (1,466