UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
October 27, 2017
Commission File Number 001-10888
TOTAL S.A.
(Translation of registrant’s name into English)
2, place Jean Millier
La Défense 6
92400 Courbevoie
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-203476, 333-203476-01, 333-203476-02 AND 333-203476-03) OF TOTAL S.A., TOTAL CAPITAL INTERNATIONAL, TOTAL CAPITAL CANADA LTD. AND TOTAL CAPITAL AND THE REGISTRATION STATEMENTS ON FORM S-8 (333-169828, 333-183144 AND 333-215803) OF TOTAL S.A., AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
TOTAL S.A. is providing on this Form 6-K its results for the third quarter of 2017 and nine months ended September 30, 2017, and a description of certain recent developments relating to its business, as well as a capitalization table as of September 30, 2017, and a ratio of earnings to fixed charges for the three months ended September 30, 2017 and 2016, and each of the five years ended December 31, 2016, 2015, 2014, 2013 and 2012, together with the computation of the ratio of earnings to fixed charges.
TABLE OF CONTENTS
SIGNATURES | |
EXHIBIT INDEX | |
EX-99.1: Results for the Third Quarter of 2017 and Nine Months Ended September 30, 2017 | |
EX-99.2: Recent Developments | |
EX-99.3: Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness | |
EX-99.4: Computation of Ratio of Earnings to Fixed Charges |
Exhibit 99.1: | Results for the Third Quarter of 2017 and Nine Months Ended September 30, 2017 |
Exhibit 99.2: | Recent Developments |
Exhibit 99.3: | Ratio of Earnings to Fixed Charges and Capitalization and Indebtedness |
Exhibit 99.4: | Computation of Ratio of Earnings to Fixed Charges |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TOTAL S.A. | ||||
Date: October 27, 2017 | By: | /s/ Antoine LARENAUDIE
| ||
Name: | Antoine LARENAUDIE | |||
Title: | Treasurer |
Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information in this Form 6-K concerning TOTAL S.A. and its subsidiaries and affiliates (collectively, “TOTAL” or the “Group”) with respect to the third quarter of 2017 and nine months ended September 30, 2017, has been derived from TOTAL’s unaudited consolidated financial statements for the third quarter of 2017 and nine months ended September 30, 2017 included in this exhibit. The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TOTAL’s audited consolidated financial statements and related notes, provided in TOTAL’s Annual Report on Form 20-F for the year ended December 31, 2016, filed with the Securities and Exchange Commission (“SEC”) on March 17, 2017.
A. | KEY FIGURES |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars except earnings per share and number of shares | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||
43,044 | 39,915 | 37,412 | +15% | Non-Group sales | 124,142 | 107,468 | +16% | |||||||||||||||||
Adjusted net operating income from business segments(a) | ||||||||||||||||||||||||
1,439 | 1,359 | 781 | +84% | • Exploration & Production | 4,180 | 2,210 | +89% | |||||||||||||||||
97 | 95 | 191 | -49% | • Gas, Renewables & Power(b) | 253 | 307 | -18% | |||||||||||||||||
1,020 | 861 | 916 | +11% | • Refining & Chemicals | 2,904 | 3,064 | -5% | |||||||||||||||||
506 | 433 | 444 | +14% | • Marketing & Services | 1,240 | 1,153 | +8% | |||||||||||||||||
500 | 310 | 531 | -6% | Equity in net income (loss) of affiliates | 1,358 | 1,805 | -25% | |||||||||||||||||
1.06 | 0.79 | 0.79 | +34% | Fully-diluted earnings per share ($) | 2.98 | 2.32 | +28% | |||||||||||||||||
2,505 | 2,485 | 2,404 | +4% | Fully-diluted weighted-average shares (millions) | 2,480 | 2,375 | +4% | |||||||||||||||||
2,724 | 2,037 | 1,954 | +39% | Net income (Group share) | 7,610 | 5,648 | +35% | |||||||||||||||||
3,910 | 4,205 | 5,201 | -25% | Investments(c) | 11,793 | 14,675 | -20% | |||||||||||||||||
539 | 360 | 192 | x2.8 | Divestments(d) | 3,797 | 1,950 | +95% | |||||||||||||||||
3,373 | 3,845 | 5,116 | -34% | Net investments(e) | 7,998 | 12,829 | -38% | |||||||||||||||||
3,060 | 3,949 | 4,082 | -25% | Organic investments(f) | 9,953 | 12,756 | -22% | |||||||||||||||||
542 | 52 | 74 | x7.3 | Resource acquisitions | 607 | 129 | x4.7 | |||||||||||||||||
4,363 | 4,640 | 4,740 | -8% | Cash flow from operations | 13,704 | 9,503 | +44% | |||||||||||||||||
(1,057 | ) | (268 | ) | 265 | n/a | •Includes (increase)/decrease in working capital(g) | (1,379 | ) | (3,032 | ) | +55% |
(a) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See “Analysis of business segment results” below for further details. | |
(b) | The new Gas, Renewables & Power segment reflects the Group’s ambition in low-carbon energies. It encompasses downstream Gas activities previously integrated in the Upstream (now Exploration & Production) segment, New Energies activities (excluding biotechnologies) previously integrated in the Marketing & Services segment and a new Innovation & Energy Efficiency division. Certain financial information for the Exploration & Production, Refining & Chemicals (which includes a new Biofuels division) and Marketing & Services segments have been restated accordingly. Certain 2015 and 2016 restated historical data is set forth in Exhibit 99.2 of TOTAL’s Form 6-K filed with the SEC on April 28, 2017. | |
(c) | Including acquisitions and increases in non-current loans. | |
(d) | Including divestments and reimbursements of non-current loans. | |
(e) | “Net investments” = gross investments – divestments – repayment of non-current loans – other operations with non-controlling interests. | |
(f) | “Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. See page 11 of this exhibit. | |
(g) | The change in working capital as determined using the replacement cost method was $(796) million in 3Q17, $(694) million in 2Q17, $218 million in 3Q16, $(1,476) million in 9M17 and $(2,727) million in 9M16. For information on the replacement cost method, refer to the introduction to “B. Analysis of business segment results”. See also “C. Group results — Cash flow”. |
B. | ANALYSIS OF BUSINESS SEGMENT RESULTS |
The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, the Group values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted
1 |
results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Group’s internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages 22-29 and 39-48 of this exhibit.
The Group measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
B.1. | Exploration & Production segment |
Environment — liquids and gas price realizations(a) |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | hydrocarbon production | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
52.1 | 49.6 | 45.9 | +14% | Brent ($/b) | 51.8 | 41.9 | +24% | |||||||||||||||||||||
48.9 | 45.1 | 41.4 | +18% | Average liquids price ($/b) | 47.7 | 38.4 | +24% | |||||||||||||||||||||
4.05 | 3.93 | 3.45 | +17% | Average gas price ($/Mbtu) | 4.03 | 3.45 | +17% | |||||||||||||||||||||
38.2 | 35.5 | 32.4 | +18% | Average hydrocarbons price ($/boe) | 37.2 | 30.6 | +22% |
(a) | Consolidated subsidiaries, excluding fixed margins. |
Production |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | hydrocarbon production | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
2,581 | 2,500 | 2,443 | +6% | Combined production (kboe/d) | 2,550 | 2,449 | +4% | |||||||||||||||||||||
1,392 | 1,298 | 1,290 | +8% | • Liquids (kb/d) | 1,331 | 1,276 | +4% | |||||||||||||||||||||
6,247 | 6,500 | 6,286 | +2% | • Gas (Mcf/d) | 6,605 | 6,397 | +3% |
2 |
Hydrocarbon production was 2,581 thousand barrels of oil equivalent per day (kboe/d) in the third quarter of 2017, an increase of close to 6% compared to the third quarter of 2016, due to the following:
• | +6% due to project ramp ups, notably Kashagan, Moho Nord, Surmont, Incahuasi, Angola LNG and Edradour-Glenlivet; |
• | +4% portfolio effect, mainly due to taking over the concession for the giant Al-Shaheen oil field in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of the Republic of the Congo; |
• | +1% related to improved security conditions in Libya and Nigeria; and |
• | -5% due to natural field decline, maintenance activity, the PSC price effect(1) and OPEC quotas. |
In the first nine months of 2017, hydrocarbon production was 2,550 kboe/d, an increase of more than 4% compared to the first nine months of 2016, due to the following:
• | +5% due to new project ramp ups, notably Kashagan, Moho Nord, Incahuasi, Surmont and Angola LNG; |
• | +2% portfolio effect, mainly due to the acquisition of an additional 75% interest in the Barnett shale in the United States and the entry into the Al-Shaheen concession in Qatar, partially offset by the exit from the southern sector of the Republic of the Congo and asset sales in Russia and Norway; |
• | +1% related to improved security conditions in Libya and Nigeria; and |
• | -4% due to natural field decline, the PSC price effect and OPEC quotas. |
Results |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
2,121 | 2,068 | 1,852 | +15% | Non-Group sales | 6,292 | 5,563 | +13% | |||||||||||||||||||||
1,606 | 1,295 | 714 | x2.2 | Operating income | 2,797 | 369 | x7.6 | |||||||||||||||||||||
521 | 487 | 180 | x2.9 | Equity in income (loss) of affiliates and other items | 1,198 | 1,350 | -11% | |||||||||||||||||||||
42.8 | % | 36.2 | % | 30.5 | % | Effective tax rate(a) | 40.5 | % | 13.3 | % | ||||||||||||||||||
(745 | ) | (512 | ) | (61 | ) | x12.2 | Tax on net operating income | (1,696 | ) | 454 | n/a | |||||||||||||||||
1,382 | 1,270 | 833 | +66% | Net operating income | 2,299 | 2,173 | +6% | |||||||||||||||||||||
57 | 89 | (52 | ) | n/a | Adjustments affecting net operating income | 1,881 | 37 | x50.8 | ||||||||||||||||||||
1,439 | 1,359 | 781 | +84% | Adjusted net operating income(b) | 4,180 | 2,210 | +89% | |||||||||||||||||||||
435 | 373 | 241 | +80% | • Including income from equity affiliates | 1,123 | 934 | +20% | |||||||||||||||||||||
3,228 | 3,448 | 3,484 | -7% | Investments | 9,312 | 11,252 | -17% | |||||||||||||||||||||
339 | 132 | 105 | x3.2 | Divestments | 584 | 1,369 | -57% | |||||||||||||||||||||
2,388 | 3,296 | 3,355 | -29% | Organic investments | 8,189 | 10,760 | -24% | |||||||||||||||||||||
2,633 | 2,504 | 2,275 | +15% | Cash flow from operations | 7,633 | 4,971 | +54% |
(a) | “Effective tax rate” = tax on adjusted net operating income / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income). | |
(b) | Detail of adjustment items shown in the business segment information starting on page 22 of this exhibit. |
The Exploration & Production segment’s adjusted net operating income was:
• | $1,439 million in the third quarter of 2017, an increase of 84% compared to the third quarter of 2016, notably due to production growth, cost reductions and an increase in oil and gas prices; and | |
• | $4,180 million in the first nine months of 2017, an increase of 89% compared to the first nine months of 2016, for the same reasons above. | |
Adjusted net operating income for the Exploration & Production segment excludes special items. In the third quarter of 2017, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $57 million compared to a negative impact of $52 million in the third quarter of 2016. |
(1) | The “price effect” refers to the impact of changing hydrocarbon prices on entitlement volumes from production sharing and buyback contracts. For example, as the price of oil or gas increases above certain pre-determined levels, TOTAL’s share of production normally decreases. |
3 |
The segment’s cash flow from operating activities was $2,633 million in the third quarter of 2017, an increase of 15% compared to $2,275 million in the third quarter of 2016. Operating cash flow in the third quarter of 2017 excluding the change in working capital at replacement cost of $(564) million ($(493) million in the third quarter of 2016) was $3,197 million(1), an increase of 15% compared to $2,768 million in the third quarter of 2016, notably due to increases in production and hydrocarbon prices.
In the first nine months of 2017, the segment’s cash flow from operating activities was $7,633 million, an increase of 54% compared to $4,971 million in the first nine months of 2016. Operating cash flow in the first nine months of 2017 excluding the change in working capital at replacement cost of $(1,843) million ($(1,870) million in the first nine months of 2016) was $9,476 million, an increase of 39% compared to $6,841 million in the first nine months of 2016. This increase of 39% compares to an increase of 24% for Brent, notably due to production ramp-ups on major projects started up since 2016, including Kashagan and Moho Nord, and to operating cost reductions.
B.2. | Gas, Renewables & Power segment |
Results |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
2,903 | 2,671 | 2,510 | +16% | Non-Group sales | 8,771 | 6,449 | +36% | |||||||||||||||||||||
21 | 48 | (7 | ) | n/a | Operating income | 34 | (102 | ) | n/a | |||||||||||||||||||
12 | 13 | 7 | +71% | Equity in income (loss) of affiliates and other items | (20 | ) | 121 | n/a | ||||||||||||||||||||
7 | (24 | ) | 17 | -59% | Tax on net operating income | (54 | ) | 1 | n/a | |||||||||||||||||||
40 | 37 | 17 | x2.4 | Net operating income | (40 | ) | 20 | n/a | ||||||||||||||||||||
57 | 58 | 174 | -67% | Adjustments affecting net operating income | 293 | 287 | +2% | |||||||||||||||||||||
97 | 95 | 191 | -49% | Adjusted net operating income(a) | 253 | 307 | -18% | |||||||||||||||||||||
99 | 77 | 1,097 | -91% | Investments | 491 | 1,339 | -63% | |||||||||||||||||||||
― | 23 | 33 | n/a | Divestments | 27 | 137 | -80% | |||||||||||||||||||||
98 | 68 | 104 | -6% | Organic investments | 268 | 327 | -18% | |||||||||||||||||||||
325 | (114 | ) | 24 | x13.5 | Cash flow from operations | 336 | (194 | ) | n/a |
(a) | Detail of adjustment items shown in the business segment information starting on page 22 of this exhibit. |
Adjusted net operating income for the Gas, Renewables & Power segment was $97 million in the third quarter of 2017, a decrease of 49% compared to the third quarter of 2016, but in line with the second quarter of 2017. Adjusted net operating income for the first nine months of 2017 decreased by 18%, due to weakness in the solar market.
Adjusted net operating income for the Gas, Renewables & Power segment excludes special items. In the third quarter of 2017, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $57 million compared to a positive impact of $174 million in the third quarter of 2016.
The segment’s cash flow from operating activities was $325 million in the third quarter of 2017, 13.5 times higher compared to $24 million in the third quarter of 2016. Operating cash flow in the third quarter of 2017 excluding the change in working capital at replacement cost of $238 million ($(49) million in the third quarter of 2016) was $87 million, an increase of 19% compared to $73 million in the third quarter of 2016.
In the first nine months of 2017, the segment’s cash flow from operating activities was $336 million compared to $(194) million in the first nine months of 2016. Operating cash flow in the first nine months of 2017 excluding the change in working capital at replacement cost of $119 million ($(216) million in the first nine months of 2016) was $217 million, 9.9 times higher compared to $22 million in the first nine months of 2016.
(1) | Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to the introduction to “B. Analysis of business segment results”, above. |
4 |
B.3. | Refining & Chemicals segment |
Refinery throughput and utilization rates(a) |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | 9M17 | 9M16 | 9M17 vs 9M16 | ||||||||||||||||||||||
1,877 | 1,672 | 1,947 | -4% | Total refinery throughput (kb/d) | 1,821 | 1,949 | -7% | |||||||||||||||||||||
648 | 574 | 681 | -5% | • France | 616 | 653 | -6% | |||||||||||||||||||||
802 | 684 | 771 | +4% | • Rest of Europe | 761 | 806 | -6% | |||||||||||||||||||||
427 | 414 | 495 | -14% | • Rest of world | 444 | 490 | -9% | |||||||||||||||||||||
90 | % | 81 | % | 85 | % | Utilization rates based on crude only(b) | 88 | % | 84 | % |
(a) | Includes share of TotalErg, and African refineries reported in the Marketing & Services segment. | ||
(b) | Based on distillation capacity at the beginning of the year. |
Refinery throughput:
• | decreased by 4% in the third quarter of 2017 compared to the third quarter of 2016, mainly as a result of shutting down the Port Arthur refinery in the United States due to Hurricane Harvey and the ending of oil refining at La Mede at year-end 2016; and | |
• | decreased by 7% in the first nine months of 2017 compared to the first nine months of 2016, for the same reasons above and also due to a higher level of maintenance in the second quarter of 2017. |
Results |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
48.2 | 41.0 | 25.5 | +89% | European refining margin indicator - ERMI ($/t) | 42.7 | 31.9 | +34% | |||||||||||||||||||||
18,923 | 17,347 | 16,050 | +18% | Non-Group sales | 54,844 | 46,555 | +18% | |||||||||||||||||||||
1,348 | 520 | 894 | +51% | Operating income | 2,922 | 3,398 | -14% | |||||||||||||||||||||
179 | 148 | 228 | -21% | Equity in income (loss) of affiliates and other items | 2,780 | 617 | x4.5 | |||||||||||||||||||||
(379 | ) | (142 | ) | (197 | ) | x2.2 | Tax on net operating income | (877 | ) | (852 | ) | +3% | ||||||||||||||||
1,148 | 526 | 925 | +24% | Net operating income | 4,825 | 3,163 | +53% | |||||||||||||||||||||
(128 | ) | 335 | (9 | ) | x14.2 | Adjustments affecting net operating income | (1,921 | ) | (99 | ) | x19.4 | |||||||||||||||||
1,020 | 861 | 916 | +11% | Adjusted net operating income(a) | 2,904 | 3,064 | -5% | |||||||||||||||||||||
357 | 401 | 554 | -36% | Investments | 1,024 | 1,295 | -21% | |||||||||||||||||||||
24 | 20 | 21 | +14% | Divestments | 2,784 | 73 | x38.1 | |||||||||||||||||||||
338 | 381 | 403 | -16% | Organic investments | 941 | 1,094 | -14% | |||||||||||||||||||||
662 | 1,972 | 1,697 | -61% | Cash flow from operations | 4,399 | 2,839 | +55% |
(a) | Detail of adjustment items shown in the business segment information starting on page 22 of this exhibit. |
The Group’s European refining margin indicator (“ERMI”) increased sharply to $48.2/t in the third quarter of 2017, due to elevated petroleum product demand in the face of limited supply resulting from numerous shutdowns due in part to Hurricane Harvey. Petrochemicals continued to benefit from a favorable environment albeit down compared to a year ago.
Refining & Chemicals’ adjusted net operating income was:
• | $1,020 million in the third quarter of 2017, an increase of 11% compared to the third quarter of 2016 despite the sale of Atotech; and | |
• | $2,904 million in the first nine months of 2017, a decrease of 5% compared to the first nine months of 2016, notably due to the impact of Hurricane Harvey and the sale of Atotech in early 2017. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the third quarter of 2017, the exclusion of the inventory valuation effect had a negative impact on the segment’s adjusted net operating income of $156 million compared to a negative impact of $21 million in the third quarter of 2016. The exclusion of special items in the third quarter of 2017 had a positive impact on the segment’s adjusted net operating income of $28 million compared to a positive impact of $12 million in the third quarter of 2016.
The segment’s cash flow from operating activities was $662 million in the third quarter of 2017, a decrease of 61% compared to $1,697 million in the third quarter of 2016. Operating cash flow in the third quarter of 2017 excluding the change in working capital at replacement cost of $(556) million ($646 million in the third quarter of 2016) was $1,218 million, an increase of 16% compared to $1,051 million in the third quarter of 2016, with the segment having benefited from the favorable environment despite the impact of Hurricane Harvey on its American operations.
5 |
In the first nine months of 2017, the segment’s cash flow from operating activities was $4,399 million, an increase of 55% compared to $2,839 million in the first nine months of 2016. Operating cash flow in the first nine months of 2017 excluding the change in working capital at replacement cost of $795 million ($(670) million in the first nine months of 2016) was $3,604 million, an increase of 3% compared to $3,509 million in the first nine months of 2016.
B.4. | Marketing & Services segment |
Petroleum product sales |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | sales in kb/d(a) | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
1,807 | 1,760 | 1,814 | ― | Total Marketing & Services sales | 1,765 | 1,788 | -1% | |||||||||||||||||||||
1,072 | 1,039 | 1,113 | -4% | • Europe | 1,050 | 1,083 | -3% | |||||||||||||||||||||
735 | 721 | 701 | +5% | • Rest of world | 715 | 705 | +1% |
(a) | Excludes trading and bulk refining sales (see page 10 of this exhibit); includes share of TotalErg. |
Petroleum product sales were generally stable compared to the previous year, with a move toward Africa and Asia where the Group has strong growth. European sales were affected by the divestment of mature activities for LPG distribution in Belgium and Germany.
Results |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
19,086 | 17,831 | 16,998 | +12% | Non-Group sales | 54,215 | 48,897 | +11% | |||||||||||||||||||||
574 | 360 | 454 | +26% | Operating income | 1,308 | 1,391 | -6% | |||||||||||||||||||||
133 | 258 | 78 | +71% | Equity in income (loss) of affiliates and other items | 421 | 129 | x3.3 | |||||||||||||||||||||
(173 | ) | (123 | ) | (134 | ) | +29% | Tax on net operating income | (404 | ) | (409 | ) | -1% | ||||||||||||||||
534 | 495 | 398 | +34% | Net operating income | 1,325 | 1,111 | +19% | |||||||||||||||||||||
(28 | ) | (62 | ) | 46 | n/a | Adjustments affecting net operating income | (85 | ) | 42 | n/a | ||||||||||||||||||
506 | 433 | 444 | +14% | Adjusted net operating income(a) | 1,240 | 1,153 | +8% | |||||||||||||||||||||
190 | 258 | 243 | -22% | Investments | 887 | 745 | +19% | |||||||||||||||||||||
150 | 182 | 29 | x5.2 | Divestments | 368 | 359 | +3% | |||||||||||||||||||||
205 | 185 | 209 | -2% | Organic investments | 485 | 543 | -11% | |||||||||||||||||||||
596 | 229 | 573 | +4% | Cash flow from operations | 1,138 | 1,414 | -20% |
(a) | Detail of adjustment items shown in the business segment information starting on page 22 of this exhibit. |
The financial contribution of Marketing & Services continues to grow in a context of strong marketing margins, notably in Africa. Compared to a year ago, adjusted net operating income increased by 14% to $506 million in the third quarter of 2017 and by 8% to $1,240 million in the first nine months of 2017.
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the third quarter of 2017, the exclusion of the inventory valuation effect had a negative impact on the segment’s adjusted net operating income of $36 million compared to a positive impact of $33 million in the third quarter of 2016. The exclusion of special items in the third quarter of 2017 had a positive impact on the segment’s adjusted net operating income of $8 million compared to a positive impact of $13 million in the third quarter of 2016.
The segment’s cash flow from operating activities was $596 million in the third quarter of 2017, an increase of 4% compared to $573 million in the third quarter of 2016. Operating cash flow in the third quarter of 2017 excluding the change in working capital at replacement cost of $79 million ($65 million in the third quarter of 2016) was $517 million, an increase of 2% compared to $508 million in the third quarter of 2016.
In the first nine months of 2017, the segment’s cash flow from operating activities was $1,138 million, a decrease of 20% compared to $1,414 million in the first nine months of 2016. Operating cash flow in the first nine months of 2017 excluding the change in working capital at replacement cost of $(392) million ($(56) million in the first nine months of 2016) was $1,530 million, an increase of 4% compared to $1,470 million in the first nine months of 2016.
6 |
C. | GROUP RESULTS |
Net income (Group share) |
Net income (Group share) was $2,724 million in the third quarter of 2017, an increase of 39% compared to $1,954 million in the third quarter of 2016, and $7,610 million in the first nine months of 2017, an increase of 35% compared to $5,648 million in the first nine months of 2016.
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value.
Total adjustments affecting net income (Group share)(1) were:
• | $50 million in the third quarter of 2017, mainly due to the inventory effect; and | |
• | $(96) million in the first nine months of 2017, including mainly an impairment of the Fort Hill project in Canada related to a cost increase and a gain on the sale of Atotech. |
Adjusted net income was $2,674 million in the third quarter of 2017, an increase of 29% compared to the third quarter of 2016, and $7,706 million in the first nine months of 2017, an increase of 31% compared to the first nine months of 2016. The increase was the result of a higher contribution from Exploration & Production and the ongoing decrease in the Group’s breakeven.
The number of fully-diluted shares was 2,509 million on September 30, 2017.
Divestments — acquisitions |
Asset sales were:
• | $202 million in the third quarter of 2017, comprised mainly of the sale of LPG activities in Germany, compared to $91 million in the third quarter of 2016; and | |
• | $3,120 million in the first nine months of 2017, essentially comprised of the sale of Atotech, the SPMR pipeline and LPG activities in Germany, compared to $1,448 million in the first nine months of 2016. |
Acquisitions were:
• | $513 million in the third quarter of 2017, essentially comprised of the bonus related to the certification of resources for Elk-Antelope in Papua New Guinea, compared to $1,018 million in the third quarter of 2016; and | |
• | $1,163 million in the first nine months of 2017, essentially comprised of the bonus related to the certification of resources for Elk-Antelope, a 23% equity share in Tellurian, and a marketing and logistics network in East Africa, compared to $1,417 million in the first nine months of 2016. |
Cash flow |
The Group’s cash flow from operating activities was $4,363 million in the third quarter of 2017, a decrease of 8% compared to $4,740 million in the third quarter of 2016. The change in working capital at replacement cost in the third quarter of 2017, which is the (increase)/decrease in working capital of $(1,057) million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $261 million, was $(796) million compared to $218 million in the third quarter of 2016. Operating cash flow excluding the change in working capital at replacement cost in the third quarter of 2017 was $5,159 million, an increase of 14% compared to $4,522 million in the third quarter of 2016. The Group’s net cash flow(2) was $1,786 million in the third quarter of 2017 compared to $(594) million in the third quarter of 2016, mainly due to the decrease in net investments and the increase in operating cash flow before working capital changes.
(1) | Details shown on pages 11 and 32-34 of this exhibit. |
(2) | “Net cash flow” = operating cash flow before working capital changes – net investments (including other transactions with non-controlling interests). |
7 |
In the first nine months of 2017, the Group’s cash flow from operating activities was $13,704 million, an increase of 44% compared to $9,503 million in the first nine months of 2016. The change in working capital at replacement cost in the first nine months of 2017, which is the (increase)/decrease in working capital of $(1,379) million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $(97) million, was $(1,476) million compared to $(2,727) million in the first nine months of 2016. Operating cash flow excluding the change in working capital at replacement cost in the first nine months of 2017 was $15,180 million, an increase of 24% compared to $12,230 million in the first nine months of 2016. The Group’s net cash flow was $7,182 million in the first nine months of 2017 compared to $(599) million in the first nine months of 2016, mainly due to the nearly $3 billion increase in operating cash flow before working capital changes, the decrease in organic investments and the sale of Atotech.
D. | SUMMARY AND OUTLOOK |
The imbalance between supply and demand has decreased in recent months, and Brent rose above $55/b. Markets however should remain volatile given the uncertainties in supply, and inventories, while falling, remain high. In this context, the Group continues to reduce its breakeven point by reducing its operating costs with a target of $5 billion in savings by 2020 and increasing production by 5% per year until 2022.
In the Upstream, annual production growth should be approximately 5% in 2017, notably supported by the start-up of the giant Al Shaheen oil field in Qatar, and the ongoing ramp-up of Kashagan in Kazakhstan and Moho Nord in the Republic of the Congo. Yamal LNG in Russia is expected to begin producing by year-end. Finally, the acquisition of Maersk Oil is expected to be completed in the first quarter of 2018.
In the Downstream, refining margins are above $40/t at the beginning of the fourth quarter and the petrochemicals environment remains favorable. The Downstream is in line with its goal to generate approximately $7 billion of operating cash flow before working capital changes in 2017, having generated more than $5.1 billion in the first nine months.
The pre-dividend organic breakeven for the Group (excluding acquisitions-divestments) will be below $30/b in 2017 and should continue to fall to $20/b in 2019.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and other information concerning possible or assumed future results of TOTAL, and may be preceded by, followed by, or otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “plans”, “targets”, “estimates” or similar expressions.
Forward-looking statements are not assurances of results or values. They involve risks, uncertainties and assumptions. TOTAL’s future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond TOTAL’s ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated by reference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:
• | material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in the prices of oil, natural gas, refined products, petrochemical products and other chemicals; | |
• | changes in currency exchange rates and currency devaluations; | |
• | the success and the economic efficiency of oil and natural gas exploration, development and production programs, including without limitation, those that are not controlled and/or operated by TOTAL; | |
• | uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities; | |
• | uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals; | |
• | changes in the current capital expenditure plans of TOTAL; | |
• | the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies; |
8 |
• | the financial resources of competitors; | |
• | changes in laws and regulations, including tax and environmental laws and industrial safety regulations; | |
• | the quality of future opportunities that may be presented to or pursued by TOTAL; | |
• | the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally; | |
• | the ability to obtain governmental or regulatory approvals; | |
• | the ability to respond to challenges in international markets, including political or economic conditions, including international armed conflict, and trade and regulatory matters; | |
• | the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures; | |
• | changes in the political environment that adversely affect exploration, production licenses and contractual rights or impose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities; | |
• | the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect the business of TOTAL; and | |
• | the risk that TOTAL will inadequately hedge the price of crude oil or finished products. |
For additional factors, you should read the information set forth under “Item 3. Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F for the year ended December 31, 2016.
9 |
OPERATING INFORMATION BY SEGMENT
• | Exploration & Production |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 |
Combined liquids and gas production by region (kboe/d) | 9M17 | 9M16 | 9M17 vs 9M16 |
|||||||||||||||||||||
730 | 746 | 720 | +1% | Europe and Central Asia | 761 | 759 | — | |||||||||||||||||||||
665 | 656 | 649 | +2% | Africa | 652 | 638 | +2% | |||||||||||||||||||||
592 | 514 | 529 | +12% | Middle East and North Africa | 547 | 522 | +5% | |||||||||||||||||||||
357 | 344 | 285 | +25% | Americas | 345 | 265 | +30% | |||||||||||||||||||||
237 | 240 | 261 | -9% | Asia-Pacific | 245 | 265 | -8% | |||||||||||||||||||||
2,581 | 2,500 | 2,443 | +6% | Total production | 2,550 | 2,449 | +4% | |||||||||||||||||||||
659 | 597 | 592 | +11% | • Including equity affiliates | 634 | 613 | +3% | |||||||||||||||||||||
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 |
Liquids production by region (kb/d) | 9M17 | 9M16 | 9M17 vs 9M16 |
|||||||||||||||||||||
257 | 266 | 238 | +8% | Europe and Central Asia | 264 | 247 | +7% | |||||||||||||||||||||
517 | 505 | 524 | -1% | Africa | 503 | 518 | -3% | |||||||||||||||||||||
452 | 376 | 380 | +19% | Middle East and North Africa | 407 | 376 | +8% | |||||||||||||||||||||
138 | 126 | 118 | +16% | Americas | 130 | 105 | +23% | |||||||||||||||||||||
29 | 26 | 29 | +1% | Asia-Pacific | 28 | 31 | -9% | |||||||||||||||||||||
1,392 | 1,298 | 1,290 | +8% | Total production | 1,331 | 1,276 | +4% | |||||||||||||||||||||
311 | 244 | 249 | +25% | • Including equity affiliates | 273 | 251 | +9% | |||||||||||||||||||||
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 |
Gas production by region (Mcf/d) | 9M17 | 9M16 | 9M17 vs 9M16 |
|||||||||||||||||||||
2,556 | 2,592 | 2,594 | -1% | Europe and Central Asia | 2,678 | 2,760 | -3% | |||||||||||||||||||||
663 | 679 | 617 | +7% | Africa | 685 | 592 | +16% | |||||||||||||||||||||
778 | 763 | 813 | -4% | Middle East and North Africa | 777 | 805 | -3% | |||||||||||||||||||||
1,228 | 1,223 | 927 | +32% | Americas | 1,207 | 889 | +36% | |||||||||||||||||||||
1,202 | 1,243 | 1,335 | -10% | Asia-Pacific | 1,258 | 1,351 | -7% | |||||||||||||||||||||
6,427 | 6,500 | 6,286 | +2% | Total production | 6,605 | 6,397 | +3% | |||||||||||||||||||||
1,798 | 1,829 | 1,831 | -2% | • Including equity affiliates | 1,880 | 1,932 | -3% | |||||||||||||||||||||
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 |
Liquefied natural gas | 9M17 | 9M16 | 9M17 vs 9M16 |
|||||||||||||||||||||
2.95 | 2.64 | 2.74 | +8% | LNG sales (a) (Mt) | 8.56 | 8.24 | +4% |
(a) | Sales, Group share, excluding trading; 2016 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2016 SEC coefficient. |
• | Downstream (Refining & Chemicals and Marketing & Services) |
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 |
Refined product sales by region (kb/d)(a) | 9M17 | 9M16 | 9M17 vs 9M16 |
|||||||||||||||||||||
2,361 | 2,082 | 2,430 | -3% | Europe | 2,178 | 2,363 | -8% | |||||||||||||||||||||
544 | 586 | 537 | +1% | Africa | 593 | 545 | +9% | |||||||||||||||||||||
584 | 654 | 627 | -7% | Americas | 587 | 585 | ― | |||||||||||||||||||||
678 | 735 | 567 | +20% | Rest of world | 720 | 681 | +6% | |||||||||||||||||||||
4,167 | 4,057 | 4,161 | ― | Total consolidated sales | 4,078 | 4,174 | -2% | |||||||||||||||||||||
583 | 538 | 706 | -17% | • Including bulk sales | 579 | 707 | -18% | |||||||||||||||||||||
1,754 | 1,759 | 1,641 | +7% | • Including trading | 1,734 | 1,679 | +3% |
(a) | Includes share of TotalErg. |
10 |
ADJUSTMENT ITEMS
• | Adjustments to net income (Group share) |
3Q17 | 2Q17 | 3Q16 | in millions of dollars | 9M17 | 9M16 | |||||||||||||||
(123 | ) | (108 | ) | (98 | ) | Special items affecting net income (Group share) | 5 | (434 | ) | |||||||||||
― | 125 | (32 | ) | • Gain (loss) on asset sales | 2,264 | 312 | ||||||||||||||
(2 | ) | (54 | ) | (18 | ) | • Restructuring charges | (61 | ) | (22 | ) | ||||||||||
(74 | ) | (32 | ) | (33 | ) | • Impairments | (1,824 | ) | (211 | ) | ||||||||||
(47 | ) | (147 | ) | (15 | ) | • Other | (374 | ) | (513 | ) | ||||||||||
183 | (310 | ) | (5 | ) | After-tax inventory effect: FIFO vs. replacement cost | (72 | ) | 217 | ||||||||||||
(10 | ) | (19 | ) | (13 | ) | Effect of changes in fair value | (29 | ) | (15 | ) | ||||||||||
50 | (437 | ) | (116 | ) | Total adjustments affecting net income | (96 | ) | (232 | ) |
INVESTMENTS — DIVESTMENTS
3Q17 | 2Q17 | 3Q16 | 3Q17 vs 3Q16 | in millions of dollars | 9M17 | 9M16 | 9M17 vs 9M16 | |||||||||||||||||||||
3,060 | 3,949 | 4,082 | -25% | Organic investments | 9,953 | 12,756 | -22% | |||||||||||||||||||||
161 | 166 | 136 | +18% | • Capitalized exploration | 438 | 536 | -18% | |||||||||||||||||||||
153 | 443 | 135 | +13% | • Increase in non-current loans | 754 | 964 | -22% | |||||||||||||||||||||
(337 | ) | (153 | ) | (101 | ) | x3.3 | • Repayment of non-current loans | (677 | ) | (502 | ) | +35% | ||||||||||||||||
513 | 103 | 1,018 | -50% | Acquisitions | 1,163 | 1,417 | -18% | |||||||||||||||||||||
202 | 207 | 91 | x2.2 | Asset sales | 3,120 | 1,448 | x2.2 | |||||||||||||||||||||
(2 | ) | — | (107 | ) | n/a | Other transactions with non-controlling interests | (2 | ) | (104 | ) | n/a | |||||||||||||||||
3,373 | 3,845 | 5,116 | -34% | Net investments | 7,998 | 12,829 | -38% |
NET-DEBT-TO-EQUITY RATIO
Current borrowings | 09/30/2017 | 06/30/2017 | 09/30/2016 | |||||||||
Current borrowings | 11,206 | 13,070 | 13,383 | |||||||||
Net current financial assets | (2,306 | ) | (3,377 | ) | (1,375 | ) | ||||||
Net financial assets classified as held for sale | (2 | ) | (2 | ) | (81 | ) | ||||||
Non-current financial debt | 40,226 | 41,548 | 44,450 | |||||||||
Hedging instruments of non-current debt | (626 | ) | (558 | ) | (1,089 | ) | ||||||
Cash and cash equivalents | (28,583 | ) | (28,720 | ) | (24,801 | ) | ||||||
Net debt | 19,915 | 21,961 | 30,487 | |||||||||
Shareholders’ equity – Group share | 109,801 | 107,188 | 98,168 | |||||||||
Estimated dividend payable | (1,826 | ) | (1,762 | ) | (1,629 | ) | ||||||
Non-controlling interests | 2,799 | 2,772 | 2,948 | |||||||||
Adjusted shareholders’ equity | 110,774 | 108,198 | 99,487 | |||||||||
Net-debt-to-equity ratio | 18.0 | % | 20.3 | % | 30.6 | % |
11 |
RETURN ON EQUITY
in millions of dollars | 10/01/2016 – 09/30/2017 | 07/01/2016 – 06/30/2017 | 01/01/2016– 12/31/2016 | |||||||||
Adjusted net income | 10,244 | 9,661 | 8,447 | |||||||||
Adjusted shareholders’ equity | 105,130 | 103,734 | 96,929 | |||||||||
Return on equity (ROE) | 9.7 | % | 9.3 | % | 8.7 | % |
RETURN ON AVERAGE CAPITAL EMPLOYED
• | Twelve months ended September 30, 2017 |
in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
Adjusted net operating income | 5,187 | 385 | 4,035 | 1,646 | ||||||||||||
Capital employed at 09/30/2016(a) | 109,210 | 6,058 | 12,034 | 5,704 | ||||||||||||
Capital employed at 09/30/2017(a) | 110,114 | 5,388 | 11,919 | 6,871 | ||||||||||||
ROACE | 4.7 | % | 6.7 | % | 33.7 | % | 26.2 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
• | Twelve months ended June 30, 2017 |
in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
Adjusted net operating income | 4,529 | 479 | 3,931 | 1,584 | ||||||||||||
Capital employed at 06/30/2016(a) | 107,405 | 4,622 | 12,249 | 5,789 | ||||||||||||
Capital employed at 06/30/2017(a) | 108,618 | 5,363 | 10,957 | 6,937 | ||||||||||||
ROACE | 4.2 | % | 9.6 | % | 33.9 | % | 24.9 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
• | Full-year 2016 |
in millions of dollars | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | ||||||||||||
Adjusted net operating income | 3,217 | 439 | 4,195 | 1,559 | ||||||||||||
Capital employed at 12/31/2015(a) | 103,791 | 4,340 | 10,454 | 5,875 | ||||||||||||
Capital employed at 12/31/2016(a) | 107,617 | 4,975 | 11,618 | 5,884 | ||||||||||||
ROACE | 3.0 | % | 9.4 | % | 38.0 | % | 26.5 | % |
(a) | At replacement cost (excluding after-tax inventory effect). |
12 |
MAIN INDICATORS
Chart updated around the middle of the month following the end of each quarter.
€/$ | Brent ($/b) | Average liquids price(a) ($/b) | Average gas price ($/Mbtu)(a) | ERMI(b) ($/t)(c) | ||||||||||||||||
Third quarter 2017 | 1.17 | 52.1 | 48.9 | 4.05 | 48.2 | |||||||||||||||
Second quarter 2017 | 1.10 | 49.6 | 45.1 | 3.93 | 41.0 | |||||||||||||||
First quarter 2017 | 1.06 | 53.7 | 49.2 | 4.10 | 38.9 | |||||||||||||||
Fourth quarter 2016 | 1.08 | 49.3 | 46.1 | 3.89 | 41.0 | |||||||||||||||
Third quarter 2016 | 1.12 | 45.9 | 41.4 | 3.45 | 25.5 |
(a) | Consolidated subsidiaries, excluding fixed margin contracts, including hydrocarbon production overlifting/underlifting position valued at market price. | |
(b) | The European Refining Margin Indicator (“ERMI”) is a Group indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by the Group in any period because of the Group’s particular refinery configurations, product mix effects or other company-specific operating conditions. | |
(c) | $1/t = $0.136/b. |
Disclaimer: data is based on TOTAL’s reporting, is not audited and is subject to change.
13 |
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) | 3rd
quarter 2017 | 2nd
quarter 2017 | 3rd
quarter 2016 | |||||||||
Sales | 43,044 | 39,915 | 37,412 | |||||||||
Excise taxes | (5,962 | ) | (5,433 | ) | (5,587 | ) | ||||||
Revenues from sales | 37,082 | 34,482 | 31,825 | |||||||||
Purchases, net of inventory variation | (24,367 | ) | (23,398 | ) | (21,223 | ) | ||||||
Other operating expenses | (6,108 | ) | (6,106 | ) | (5,469 | ) | ||||||
Exploration costs | (181 | ) | (199 | ) | (274 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,035 | ) | (2,798 | ) | (2,936 | ) | ||||||
Other income | 404 | 570 | 290 | |||||||||
Other expense | (67 | ) | (106 | ) | (351 | ) | ||||||
Financial interest on debt | (368 | ) | (345 | ) | (268 | ) | ||||||
Financial income and expense from cash & cash equivalents | (45 | ) | (37 | ) | (5 | ) | ||||||
Cost of net debt | (413 | ) | (382 | ) | (273 | ) | ||||||
Other financial income | 204 | 285 | 265 | |||||||||
Other financial expense | (164 | ) | (159 | ) | (154 | ) | ||||||
Equity in net income (loss) of affiliates | 500 | 310 | 531 | |||||||||
Income taxes | (1,092 | ) | (472 | ) | (251 | ) | ||||||
Consolidated net income | 2,763 | 2,027 | 1,980 | |||||||||
Group share | 2,724 | 2,037 | 1,954 | |||||||||
Non-controlling interests | 39 | (10 | ) | 26 | ||||||||
Earnings per share ($) | 1.06 | 0.79 | 0.79 | |||||||||
Fully-diluted earnings per share ($) | 1.06 | 0.79 | 0.79 |
(a) | Except for per share amounts. |
14 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) | 3rd quarter 2017 | 2nd quarter 2017 | 3rd quarter 2016 | |||||||||
Consolidated net income | 2,763 | 2,027 | 1,980 | |||||||||
Other comprehensive income | ||||||||||||
Actuarial gains and losses | (129 | ) | 32 | (363 | ) | |||||||
Tax effect | 36 | (12 | ) | 47 | ||||||||
Currency translation adjustment generated by the parent company | 2,420 | 4,524 | 439 | |||||||||
Items not potentially reclassifiable to profit and loss | 2,327 | 4,544 | 123 | |||||||||
Currency translation adjustment | (575 | ) | (1,218 | ) | (362 | ) | ||||||
Available for sale financial assets | 4 | 1 | 15 | |||||||||
Cash flow hedge | 116 | (79 | ) | 113 | ||||||||
Share of other comprehensive income of equity affiliates, net amount | (209 | ) | (794 | ) | 123 | |||||||
Other | — | (3 | ) | (3 | ) | |||||||
Tax effect | (42 | ) | 30 | (41 | ) | |||||||
Items potentially reclassifiable to profit and loss | (706 | ) | (2,063 | ) | (155 | ) | ||||||
Total other comprehensive income (net amount) | 1,621 | 2,481 | (32 | ) | ||||||||
Comprehensive income | 4,384 | 4,508 | 1,948 | |||||||||
Group share | 4,346 | 4,507 | 1,909 | |||||||||
Non-controlling interests | 38 | 1 | 39 |
15 |
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
(M$) (a) | 9
months 2017 | 9
months 2016 | ||||||
Sales | 124,142 | 107,468 | ||||||
Excise taxes | (16,485 | ) | (16,410 | ) | ||||
Revenues from sales | 107,657 | 91,058 | ||||||
Purchases, net of inventory variation | (71,752 | ) | (59,410 | ) | ||||
Other operating expenses | (18,380 | ) | (17,511 | ) | ||||
Exploration costs | (577 | ) | (1,004 | ) | ||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (10,412 | ) | (8,584 | ) | ||||
Other income | 3,299 | 962 | ||||||
Other expense | (464 | ) | (554 | ) | ||||
Financial interest on debt | (1,044 | ) | (809 | ) | ||||
Financial income and expense from cash & cash equivalents | (93 | ) | 6 | |||||
Cost of net debt | (1,137 | ) | (803 | ) | ||||
Other financial income | 717 | 768 | ||||||
Other financial expense | (483 | ) | (475 | ) | ||||
Equity in net income (loss) of affiliates | 1,358 | 1,805 | ||||||
Income taxes | (2,257 | ) | (533 | ) | ||||
Consolidated net income | 7,569 | 5,719 | ||||||
Group share | 7,610 | 5,648 | ||||||
Non-controlling interests | (41 | ) | 71 | |||||
Earnings per share ($) | 2.99 | 2.33 | ||||||
Fully-diluted earnings per share ($) | 2.98 | 2.32 |
(a) | Except for per share amounts. |
16 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
(M$) | 9
months 2017 | 9
months 2016 | ||||||
Consolidated net income | 7,569 | 5,719 | ||||||
Other comprehensive income | ||||||||
Actuarial gains and losses | 29 | (576 | ) | |||||
Tax effect | (17 | ) | 119 | |||||
Currency translation adjustment generated by the parent company | 7,884 | 1,967 | ||||||
Items not potentially reclassifiable to profit and loss | 7,896 | 1,510 | ||||||
Currency translation adjustment | (1,993 | ) | (1,717 | ) | ||||
Available for sale financial assets | 4 | 1 | ||||||
Cash flow hedge | 150 | 145 | ||||||
Share of other comprehensive income of equity affiliates, net amount | (672 | ) | 477 | |||||
Other | — | — | ||||||
Tax effect | (51 | ) | (44 | ) | ||||
Items potentially reclassifiable to profit and loss | (2,562 | ) | (1,138 | ) | ||||
Total other comprehensive income (net amount) | 5,334 | 372 | ||||||
Comprehensive income | 12,903 | 6,091 | ||||||
Group share | 12,927 | 6,012 | ||||||
Non-controlling interests | (24 | ) | 79 |
17 |
CONSOLIDATED BALANCE SHEET
TOTAL
(M$) | September
30, 2017 (unaudited) | June
30, 2017 (unaudited) | December 31, 2016 | September
30, 2016 (unaudited) | ||||||||||||
ASSETS | ||||||||||||||||
Non-current assets | ||||||||||||||||
Intangible assets, net | 14,891 | 14,119 | 15,362 | 14,916 | ||||||||||||
Property, plant and equipment, net | 113,491 | 112,659 | 111,971 | 113,433 | ||||||||||||
Equity affiliates : investments and loans | 22,130 | 21,705 | 20,576 | 20,870 | ||||||||||||
Other investments | 1,124 | 1,483 | 1,133 | 1,565 | ||||||||||||
Non-current financial assets | 626 | 558 | 908 | 1,089 | ||||||||||||
Deferred income taxes | 5,345 | 4,981 | 4,368 | 4,434 | ||||||||||||
Other non-current assets | 4,291 | 4,411 | 4,143 | 4,534 | ||||||||||||
Total non-current assets | 161,898 | 159,916 | 158,461 | 160,841 | ||||||||||||
Current assets | ||||||||||||||||
Inventories, net | 14,769 | 14,273 | 15,247 | 14,635 | ||||||||||||
Accounts receivable, net | 13,738 | 12,923 | 12,213 | 11,501 | ||||||||||||
Other current assets | 13,944 | 14,034 | 14,835 | 14,927 | ||||||||||||
Current financial assets | 2,579 | 3,618 | 4,548 | 1,755 | ||||||||||||
Cash and cash equivalents | 28,583 | 28,720 | 24,597 | 24,801 | ||||||||||||
Assets classified as held for sale | 997 | 421 | 1,077 | 1,045 | ||||||||||||
Total current assets | 74,610 | 73,989 | 72,517 | 68,664 | ||||||||||||
Total assets | 236,508 | 233,905 | 230,978 | 229,505 | ||||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||||||
Shareholders’ equity | ||||||||||||||||
Common shares | 7,806 | 7,797 | 7,604 | 7,849 | ||||||||||||
Paid-in surplus and retained earnings | 111,128 | 110,305 | 105,547 | 106,189 | ||||||||||||
Currency translation adjustment | (8,675 | ) | (10,314 | ) | (13,871 | ) | (11,448 | ) | ||||||||
Treasury shares | (458 | ) | (600 | ) | (600 | ) | (4,422 | ) | ||||||||
Total shareholders’ equity - Group share | 109,801 | 107,188 | 98,680 | 98,168 | ||||||||||||
Non-controlling interests | 2,799 | 2,772 | 2,894 | 2,948 | ||||||||||||
Total shareholders’ equity | 112,600 | 109,960 | 101,574 | 101,116 | ||||||||||||
Non-current liabilities | ||||||||||||||||
Deferred income taxes | 11,326 | 10,920 | 11,060 | 11,390 | ||||||||||||
Employee benefits | 4,384 | 4,127 | 3,746 | 4,247 | ||||||||||||
Provisions and other non-current liabilities | 17,140 | 16,924 | 16,846 | 17,320 | ||||||||||||
Non-current financial debt | 40,226 | 41,548 | 43,067 | 44,450 | ||||||||||||
Total non-current liabilities | 73,076 | 73,519 | 74,719 | 77,407 | ||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable | 21,092 | 21,914 | 23,227 | 19,799 | ||||||||||||
Other creditors and accrued liabilities | 17,740 | 14,862 | 16,720 | 16,895 | ||||||||||||
Current borrowings | 11,206 | 13,070 | 13,920 | 13,383 | ||||||||||||
Other current financial liabilities | 273 | 241 | 327 | 380 | ||||||||||||
Liabilities directly associated with the assets classified as held for sale | 521 | 339 | 491 | 525 | ||||||||||||
Total current liabilities | 50,832 | 50,426 | 54,685 | 50,982 | ||||||||||||
Total liabilities & shareholders’ equity | 236,508 | 233,905 | 230,978 | 229,505 |
18 |
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) | 3rd
quarter 2017 | 2nd
quarter 2017 | 3rd
quarter 2016 | |||||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | 2,763 | 2,027 | 1,980 | |||||||||
Depreciation, depletion, amortization and impairment | 3,164 | 2,930 | 3,297 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes | (93 | ) | (50 | ) | (539 | ) | ||||||
(Gains) losses on disposals of assets | (144 | ) | (151 | ) | 94 | |||||||
Undistributed affiliates’ equity earnings | (110 | ) | 501 | (192 | ) | |||||||
(Increase) decrease in working capital | (1,057 | ) | (268 | ) | 265 | |||||||
Other changes, net | (160 | ) | (349 | ) | (165 | ) | ||||||
Cash flow from operating activities | 4,363 | 4,640 | 4,740 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||||||
Intangible assets and property, plant and equipment additions | (3,104 | ) | (3,323 | ) | (4,124 | ) | ||||||
Acquisitions of subsidiaries, net of cash acquired | (472 | ) | (6 | ) | (1,119 | ) | ||||||
Investments in equity affiliates and other securities | (181 | ) | (433 | ) | 177 | |||||||
Increase in non-current loans | (153 | ) | (443 | ) | (135 | ) | ||||||
Total expenditures | (3,910 | ) | (4,205 | ) | (5,201 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment | 55 | 74 | 57 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold | — | — | — | |||||||||
Proceeds from disposals of non-current investments | 147 | 133 | 34 | |||||||||
Repayment of non-current loans | 337 | 153 | 101 | |||||||||
Total divestments | 539 | 360 | 192 | |||||||||
Cash flow used in investing activities | (3,371 | ) | (3,845 | ) | (5,009 | ) | ||||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||||||
Issuance (repayment) of shares: | ||||||||||||
- Parent company shareholders | 65 | 406 | 36 | |||||||||
- Treasury shares | — | — | — | |||||||||
Dividends paid: | ||||||||||||
- Parent company shareholders | — | (1,462 | ) | — | ||||||||
- Non-controlling interests | (11 | ) | (61 | ) | (2 | ) | ||||||
Issuance of perpetual subordinated notes | — | — | — | |||||||||
Payments on perpetual subordinated notes | — | (90 | ) | — | ||||||||
Other transactions with non-controlling interests | (2 | ) | — | (107 | ) | |||||||
Net issuance (repayment) of non-current debt | 400 | 290 | 3,127 | |||||||||
Increase (decrease) in current borrowings | (3,717 | ) | (1,167 | ) | (909 | ) | ||||||
Increase (decrease) in current financial assets and liabilities | 1,182 | 979 | 257 | |||||||||
Cash flow used in financing activities | (2,083 | ) | (1,105 | ) | 2,402 | |||||||
Net increase (decrease) in cash and cash equivalents | (1,091 | ) | (310 | ) | 2,133 | |||||||
Effect of exchange rates | 954 | 1,504 | 15 | |||||||||
Cash and cash equivalents at the beginning of the period | 28,720 | 27,526 | 22,653 | |||||||||
Cash and cash equivalents at the end of the period | 28,583 | 28,720 | 24,801 |
19 |
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
(M$) | 9
months 2017 | 9
months 2016 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Consolidated net income | 7,569 | 5,719 | ||||||
Depreciation, depletion, amortization and impairment | 10,754 | 9,393 | ||||||
Non-current liabilities, valuation allowances and deferred taxes | (340 | ) | (1,284 | ) | ||||
(Gains) losses on disposals of assets | (2,527 | ) | (321 | ) | ||||
Undistributed affiliates’ equity earnings | 96 | (708 | ) | |||||
(Increase) decrease in working capital | (1,379 | ) | (3,032 | ) | ||||
Other changes, net | (469 | ) | (264 | ) | ||||
Cash flow from operating activities | 13,704 | 9,503 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||
Intangible assets and property, plant and equipment additions | (9,105 | ) | (12,364 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired | (797 | ) | (1,241 | ) | ||||
Investments in equity affiliates and other securities | (1,137 | ) | (106 | ) | ||||
Increase in non-current loans | (754 | ) | (964 | ) | ||||
Total expenditures | (11,793 | ) | (14,675 | ) | ||||
Proceeds from disposals of intangible assets and property, plant and equipment | 135 | 1,049 | ||||||
Proceeds from disposals of subsidiaries, net of cash sold | 2,696 | 270 | ||||||
Proceeds from disposals of non-current investments | 289 | 129 | ||||||
Repayment of non-current loans | 677 | 502 | ||||||
Total divestments | 3,797 | 1,950 | ||||||
Cash flow used in investing activities | (7,996 | ) | (12,725 | ) | ||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||
Issuance (repayment) of shares: | ||||||||
- Parent company shareholders | 486 | 40 | ||||||
- Treasury shares | — | — | ||||||
Dividends paid: | ||||||||
- Parent company shareholders | (2,000 | ) | (2,127 | ) | ||||
- Non-controlling interests | (87 | ) | (77 | ) | ||||
Issuance of perpetual subordinated notes | — | 1,950 | ||||||
Payments on perpetual subordinated notes | (219 | ) | (133 | ) | ||||
Other transactions with non-controlling interests | (2 | ) | (104 | ) | ||||
Net issuance (repayment) of non-current debt | 746 | 3,681 | ||||||
Increase (decrease) in current borrowings | (6,297 | ) | (2,925 | ) | ||||
Increase (decrease) in current financial assets and liabilities | 2,819 | 4,402 | ||||||
Cash flow used in financing activities | (4,554 | ) | 4,707 | |||||
Net increase (decrease) in cash and cash equivalents | 1,154 | 1,485 | ||||||
Effect of exchange rates | 2,832 | 47 | ||||||
Cash and cash equivalents at the beginning of the period | 24,597 | 23,269 | ||||||
Cash and cash equivalents at the end of the period | 28,583 | 24,801 |
20 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
(unaudited)
Common shares issued | Paid-in | Treasury shares | ||||||||||||||||||||||||||||||||||
(M$) | Number | Amount | surplus and retained earnings | Currency translation adjustment | Number | Amount | Shareholders’ equity - Group share | Non- controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||
As of January 1, 2016 | 2,440,057,883 | 7,670 | 101,528 | (12,119 | ) | (113,967,758 | ) | (4,585 | ) | 92,494 | 2,915 | 95,409 | ||||||||||||||||||||||||
Net income of the first 9 months 2016 | — | — | 5,648 | — | — | — | 5,648 | 71 | 5,719 | |||||||||||||||||||||||||||
Other comprehensive Income | — | — | (307 | ) | 671 | — | — | 364 | 8 | 372 | ||||||||||||||||||||||||||
Comprehensive Income | — | — | 5,341 | 671 | — | — | 6,012 | 79 | 6,091 | |||||||||||||||||||||||||||
Dividend | — | — | (4,872 | ) | — | — | — | (4,872 | ) | (77 | ) | (4,949 | ) | |||||||||||||||||||||||
Issuance of common shares | 63,971,645 | 179 | 2,524 | — | — | — | 2,703 | — | 2,703 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Sale of treasury shares (1) | — | — | (163 | ) | — | 3,047,118 | 163 | — | — | — | ||||||||||||||||||||||||||
Share-based payments | — | — | 81 | — | — | — | 81 | — | 81 | |||||||||||||||||||||||||||
Share cancellation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes | — | — | 1,950 | — | — | — | 1,950 | — | 1,950 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (131 | ) | — | — | — | (131 | ) | — | (131 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | — | — | (100 | ) | — | — | — | (100 | ) | (41 | ) | (141 | ) | |||||||||||||||||||||||
Other items | — | — | 31 | — | — | — | 31 | 72 | 103 | |||||||||||||||||||||||||||
As of September 30, 2016 | 2,504,029,528 | 7,849 | 106,189 | (11,448 | ) | (110,920,640 | ) | (4,422 | ) | 98,168 | 2,948 | 101,116 | ||||||||||||||||||||||||
Net income from October 1 to December 31, 2016 | — | — | 548 | — | — | — | 548 | (61 | ) | 487 | ||||||||||||||||||||||||||
Other comprehensive Income | — | — | 199 | (2,423 | ) | — | — | (2,224 | ) | (7 | ) | (2,231 | ) | |||||||||||||||||||||||
Comprehensive Income | — | — | 747 | (2,423 | ) | — | — | (1,676 | ) | (68 | ) | (1,744 | ) | |||||||||||||||||||||||
Dividend | — | — | (1,640 | ) | — | — | — | (1,640 | ) | (16 | ) | (1,656 | ) | |||||||||||||||||||||||
Issuance of common shares | 26,667,602 | 72 | 1,029 | — | — | — | 1,101 | — | 1,101 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Sale of treasury shares (1) | — | — | — | — | 1,550 | — | — | — | — | |||||||||||||||||||||||||||
Share-based payments | — | — | 31 | — | — | — | 31 | — | 31 | |||||||||||||||||||||||||||
Share cancellation | (100,331,268 | ) | (317 | ) | (3,505 | ) | — | 100,331,268 | 3,822 | — | — | — | ||||||||||||||||||||||||
Issuance of perpetual subordinated notes | — | — | 2,761 | — | — | — | 2,761 | — | 2,761 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (72 | ) | — | — | — | (72 | ) | — | (72 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | — | — | 2 | — | — | — | 2 | (2 | ) | — | ||||||||||||||||||||||||||
Other items | — | — | 5 | — | — | — | 5 | 32 | 37 | |||||||||||||||||||||||||||
As of December 31, 2016 | 2,430,365,862 | 7,604 | 105,547 | (13,871 | ) | (10,587,822 | ) | (600 | ) | 98,680 | 2,894 | 101,574 | ||||||||||||||||||||||||
Net income of the first 9 months 2017 | — | — | 7,610 | — | — | — | 7,610 | (41 | ) | 7,569 | ||||||||||||||||||||||||||
Other comprehensive Income | — | — | 121 | 5,196 | — | — | 5,317 | 17 | 5,334 | |||||||||||||||||||||||||||
Comprehensive Income | — | — | 7,731 | 5,196 | — | — | 12,927 | (24 | ) | 12,903 | ||||||||||||||||||||||||||
Dividend | — | — | (5,137 | ) | — | — | — | (5,137 | ) | (87 | ) | (5,224 | ) | |||||||||||||||||||||||
Issuance of common shares | 72,388,372 | 202 | 3,242 | — | — | — | 3,444 | — | 3,444 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Sale of treasury shares (1) | — | — | (142 | ) | — | 2,209,716 | 142 | — | — | — | ||||||||||||||||||||||||||
Share-based payments | — | — | 113 | — | — | — | 113 | — | 113 | |||||||||||||||||||||||||||
Share cancellation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance of perpetual subordinated notes | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | — | — | (223 | ) | — | — | — | (223 | ) | — | (223 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | — | — | (7 | ) | — | — | — | (7 | ) | 5 | (2 | ) | ||||||||||||||||||||||||
Other items | — | — | 4 | — | — | — | 4 | 11 | 15 | |||||||||||||||||||||||||||
As of September 30, 2017 | 2,502,754,234 | 7,806 | 111,128 | (8,675 | ) | (8,378,106 | ) | (458 | ) | 109,801 | 2,799 | 112,600 |
(1) | Treasury shares related to the restricted stock grants. |
21 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,121 | 2,903 | 18,923 | 19,086 | 11 | — | 43,044 | |||||||||||||||||||||
Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
Revenues from sales | 7,786 | 3,189 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,082 | ||||||||||||||||||||
Operating expenses | (3,632 | ) | (3,117 | ) | (23,110 | ) | (13,386 | ) | (250 | ) | 12,839 | (30,656 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,548 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (3,035 | ) | |||||||||||||||
Operating income | 1,606 | 21 | 1,348 | 574 | (158 | ) | — | 3,391 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 521 | 12 | 179 | 133 | 32 | — | 877 | |||||||||||||||||||||
Tax on net operating income | (745 | ) | 7 | (379 | ) | (173 | ) | 100 | — | (1,190 | ) | |||||||||||||||||
Net operating income | 1,382 | 40 | 1,148 | 534 | (26 | ) | — | 3,078 | ||||||||||||||||||||
Net cost of net debt | (315 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (39 | ) | ||||||||||||||||||||||||||
Net income - group share | 2,724 | |||||||||||||||||||||||||||
3rd quarter 2017 (adjustments) (a) (M$) | Exploration
& Production | Gas, Renewables & Power | Refining
& Chemicals | Marketing
& Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
Operating expenses | (2 | ) | (32 | ) | 166 | 51 | — | — | 183 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (57 | ) | — | — | — | — | — | (57 | ) | |||||||||||||||||||
Operating income (b) | (59 | ) | (46 | ) | 166 | 51 | — | — | 112 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | (2 | ) | (15 | ) | 12 | (5 | ) | — | — | (10 | ) | |||||||||||||||||
Tax on net operating income | 4 | 4 | (50 | ) | (18 | ) | — | — | (60 | ) | ||||||||||||||||||
Net operating income (b) | (57 | ) | (57 | ) | 128 | 28 | — | — | 42 | |||||||||||||||||||
Net cost of net debt | (7 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 15 | |||||||||||||||||||||||||||
Net income - group share | 50 | |||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
On operating income | — | — | 210 | 51 | — | |||||||||||||||||||||||
On net operating income | — | — | 156 | 36 | — | |||||||||||||||||||||||
3rd quarter 2017 (adjusted) (M$) (a) | Exploration & Production | Gas, Renewables & Power | Refining
& Chemicals | Marketing
& Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,121 | 2,917 | 18,923 | 19,086 | 11 | — | 43,058 | |||||||||||||||||||||
Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
Revenues from sales | 7,786 | 3,203 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,096 | ||||||||||||||||||||
Operating expenses | (3,630 | ) | (3,085 | ) | (23,276 | ) | (13,437 | ) | (250 | ) | 12,839 | (30,839 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,491 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (2,978 | ) | |||||||||||||||
Adjusted operating income | 1,665 | 67 | 1,182 | 523 | (158 | ) | — | 3,279 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 523 | 27 | 167 | 138 | 32 | — | 887 | |||||||||||||||||||||
Tax on net operating income | (749 | ) | 3 | (329 | ) | (155 | ) | 100 | — | (1,130 | ) | |||||||||||||||||
Adjusted net operating income | 1,439 | 97 | 1,020 | 506 | (26 | ) | — | 3,036 | ||||||||||||||||||||
Net cost of net debt | (308 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (54 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 2,674 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 1.04 | |||||||||||||||||||||||||||
(a) Except for earnings per share. | ||||||||||||||||||||||||||||
3rd quarter 2017 (M$) | Exploration
& Production | Gas, Renewables & Power | Refining
& Chemicals | Marketing
& Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 3,228 | 99 | 357 | 190 | 36 | — | 3,910 | |||||||||||||||||||||
Total divestments | 339 | — | 24 | 150 | 26 | — | 539 | |||||||||||||||||||||
Cash flow from operating activities | 2,633 | 325 | 662 | 596 | 147 | — | 4,363 |
22 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
2nd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,068 | 2,671 | 17,347 | 17,831 | (2 | ) | — | 39,915 | ||||||||||||||||||||
Intersegment sales | 5,118 | 274 | 6,016 | 169 | 90 | (11,667 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (680 | ) | (4,753 | ) | — | — | (5,433 | ) | ||||||||||||||||||
Revenues from sales | 7,186 | 2,945 | 22,683 | 13,247 | 88 | (11,667 | ) | 34,482 | ||||||||||||||||||||
Operating expenses | (3,547 | ) | (2,857 | ) | (21,918 | ) | (12,729 | ) | (319 | ) | 11,667 | (29,703 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,344 | ) | (40 | ) | (245 | ) | (158 | ) | (11 | ) | — | (2,798 | ) | |||||||||||||||
Operating income | 1,295 | 48 | 520 | 360 | (242 | ) | — | 1,981 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 487 | 13 | 148 | 258 | (6 | ) | — | 900 | ||||||||||||||||||||
Tax on net operating income | (512 | ) | (24 | ) | (142 | ) | (123 | ) | 214 | — | (587 | ) | ||||||||||||||||
Net operating income | 1,270 | 37 | 526 | 495 | (34 | ) | — | 2,294 | ||||||||||||||||||||
Net cost of net debt | (267 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 10 | |||||||||||||||||||||||||||
Net income - group share | 2,037 | |||||||||||||||||||||||||||
2nd quarter 2017 (adjustments) (a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (27 | ) | — | — | — | — | (27 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (27 | ) | — | — | — | — | (27 | ) | |||||||||||||||||||
Operating expenses | (117 | ) | (25 | ) | (411 | ) | (80 | ) | (64 | ) | — | (697 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (15 | ) | 1 | — | — | — | — | (14 | ) | |||||||||||||||||||
Operating income (b) | (132 | ) | (51 | ) | (411 | ) | (80 | ) | (64 | ) | — | (738 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items | (4 | ) | (16 | ) | (53 | ) | 121 | — | — | 48 | ||||||||||||||||||
Tax on net operating income | 47 | 9 | 129 | 21 | 22 | — | 228 | |||||||||||||||||||||
Net operating income (b) | (89 | ) | (58 | ) | (335 | ) | 62 | (42 | ) | — | (462 | ) | ||||||||||||||||
Net cost of net debt | (7 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 32 | |||||||||||||||||||||||||||
Net income - group share | (437 | ) | ||||||||||||||||||||||||||
(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 | — | — | (372 | ) | (54 | ) | — | |||||||||||||||||||||
On net operating income | — | — | (270 | ) | (45 | ) | — | |||||||||||||||||||||
2nd quarter 2017 (adjusted) (M$) (a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,068 | 2,698 | 17,347 | 17,831 | (2 | ) | — | 39,942 | ||||||||||||||||||||
Intersegment sales | 5,118 | 274 | 6,016 | 169 | 90 | (11,667 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (680 | ) | (4,753 | ) | — | — | (5,433 | ) | ||||||||||||||||||
Revenues from sales | 7,186 | 2,972 | 22,683 | 13,247 | 88 | (11,667 | ) | 34,509 | ||||||||||||||||||||
Operating expenses | (3,430 | ) | (2,832 | ) | (21,507 | ) | (12,649 | ) | (255 | ) | 11,667 | (29,006 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,329 | ) | (41 | ) | (245 | ) | (158 | ) | (11 | ) | — | (2,784 | ) | |||||||||||||||
Adjusted operating income | 1,427 | 99 | 931 | 440 | (178 | ) | — | 2,719 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 491 | 29 | 201 | 137 | (6 | ) | — | 852 | ||||||||||||||||||||
Tax on net operating income | (559 | ) | (33 | ) | (271 | ) | (144 | ) | 192 | — | (815 | ) | ||||||||||||||||
Adjusted net operating income | 1,359 | 95 | 861 | 433 | 8 | — | 2,756 | |||||||||||||||||||||
Net cost of net debt | (260 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (22 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 2,474 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 0.97 | |||||||||||||||||||||||||||
(a) Except for earnings per share. | ||||||||||||||||||||||||||||
2nd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 3,448 | 77 | 401 | 258 | 21 | — | 4,205 | |||||||||||||||||||||
Total divestments | 132 | 23 | 20 | 182 | 3 | — | 360 | |||||||||||||||||||||
Cash flow from operating activities | 2,504 | (114 | ) | 1,972 | 229 | 49 | — | 4,640 |
23 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
3rd quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,852 | 2,510 | 16,050 | 16,998 | 2 | — | 37,412 | |||||||||||||||||||||
Intersegment sales | 4,854 | 283 | 5,072 | 147 | 74 | (10,430 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (875 | ) | (4,712 | ) | — | — | (5,587 | ) | ||||||||||||||||||
Revenues from sales | 6,706 | 2,793 | 20,247 | 12,433 | 76 | (10,430 | ) | 31,825 | ||||||||||||||||||||
Operating expenses | (3,513 | ) | (2,754 | ) | (19,102 | ) | (11,829 | ) | (198 | ) | 10,430 | (26,966 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,479 | ) | (46 | ) | (251 | ) | (150 | ) | (10 | ) | — | (2,936 | ) | |||||||||||||||
Operating income | 714 | (7 | ) | 894 | 454 | (132 | ) | — | 1,923 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 180 | 7 | 228 | 78 | 88 | — | 581 | |||||||||||||||||||||
Tax on net operating income | (61 | ) | 17 | (197 | ) | (134 | ) | 59 | — | (316 | ) | |||||||||||||||||
Net operating income | 833 | 17 | 925 | 398 | 15 | — | 2,188 | |||||||||||||||||||||
Net cost of net debt | (208 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (26 | ) | ||||||||||||||||||||||||||
Net income - group share | 1,954 | |||||||||||||||||||||||||||
3rd quarter 2016 (adjustments) (a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (116 | ) | — | — | — | — | (116 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (116 | ) | — | — | — | — | (116 | ) | |||||||||||||||||||
Operating expenses | — | (15 | ) | 4 | (53 | ) | — | — | (64 | ) | ||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating income (b) | — | (131 | ) | 4 | (53 | ) | — | — | (180 | ) | ||||||||||||||||||
Equity in net income (loss) of affiliates and other items | (123 | ) | (68 | ) | 16 | 1 | — | — | (174 | ) | ||||||||||||||||||
Tax on net operating income | 175 | 25 | (11 | ) | 6 | — | — | 195 | ||||||||||||||||||||
Net operating income (b) | 52 | (174 | ) | 9 | (46 | ) | — | — | (159 | ) | ||||||||||||||||||
Net cost of net debt | (6 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 49 | |||||||||||||||||||||||||||
Net income - group share | (116 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
On operating income | — | — | 4 | (51 | ) | — | ||||||||||||||||||||||
On net operating income | — | — | 21 | (33 | ) | — | ||||||||||||||||||||||
3rd quarter 2016 (adjusted) (M$) (a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,852 | 2,626 | 16,050 | 16,998 | 2 | — | 37,528 | |||||||||||||||||||||
Intersegment sales | 4,854 | 283 | 5,072 | 147 | 74 | (10,430 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (875 | ) | (4,712 | ) | — | — | (5,587 | ) | ||||||||||||||||||
Revenues from sales | 6,706 | 2,909 | 20,247 | 12,433 | 76 | (10,430 | ) | 31,941 | ||||||||||||||||||||
Operating expenses | (3,513 | ) | (2,739 | ) | (19,106 | ) | (11,776 | ) | (198 | ) | 10,430 | (26,902 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,479 | ) | (46 | ) | (251 | ) | (150 | ) | (10 | ) | — | (2,936 | ) | |||||||||||||||
Adjusted operating income | 714 | 124 | 890 | 507 | (132 | ) | — | 2,103 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 303 | 75 | 212 | 77 | 88 | — | 755 | |||||||||||||||||||||
Tax on net operating income | (236 | ) | (8 | ) | (186 | ) | (140 | ) | 59 | — | (511 | ) | ||||||||||||||||
Adjusted net operating income | 781 | 191 | 916 | 444 | 15 | — | 2,347 | |||||||||||||||||||||
Net cost of net debt | (202 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (75 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 2,070 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 0.84 | |||||||||||||||||||||||||||
(a) Except for earnings per share. | ||||||||||||||||||||||||||||
3rd quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 3,484 | 1,097 | 554 | 243 | (177 | ) | — | 5,201 | ||||||||||||||||||||
Total divestments | 105 | 33 | 21 | 29 | 4 | — | 192 | |||||||||||||||||||||
Cash flow from operating activities | 2,275 | 24 | 1,697 | 573 | 171 | — | 4,740 |
24 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 6,292 | 8,771 | 54,844 | 54,215 | 20 | — | 124,142 | |||||||||||||||||||||
Intersegment sales | 16,331 | 869 | 18,954 | 650 | 284 | (37,088 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,180 | ) | (14,305 | ) | — | — | (16,485 | ) | ||||||||||||||||||
Revenues from sales | 22,623 | 9,640 | 71,618 | 40,560 | 304 | (37,088 | ) | 107,657 | ||||||||||||||||||||
Operating expenses | (10,866 | ) | (9,443 | ) | (67,906 | ) | (38,780 | ) | (802 | ) | 37,088 | (90,709 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,960 | ) | (163 | ) | (790 | ) | (472 | ) | (27 | ) | — | (10,412 | ) | |||||||||||||||
Operating income | 2,797 | 34 | 2,922 | 1,308 | (525 | ) | — | 6,536 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,198 | (20 | ) | 2,780 | 421 | 48 | — | 4,427 | ||||||||||||||||||||
Tax on net operating income | (1,696 | ) | (54 | ) | (877 | ) | (404 | ) | 485 | — | (2,546 | ) | ||||||||||||||||
Net operating income | 2,299 | (40 | ) | 4,825 | 1,325 | 8 | — | 8,417 | ||||||||||||||||||||
Net cost of net debt | (848 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 41 | |||||||||||||||||||||||||||
Net income - group share | 7,610 | |||||||||||||||||||||||||||
9 months 2017 (adjustments) (a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (41 | ) | — | — | — | — | (41 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (41 | ) | — | — | — | — | (41 | ) | |||||||||||||||||||
Operating expenses | (119 | ) | (146 | ) | (188 | ) | (44 | ) | (64 | ) | — | (561 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (1,926 | ) | (25 | ) | (50 | ) | — | — | — | (2,001 | ) | |||||||||||||||||
Operating income (b) | (2,045 | ) | (212 | ) | (238 | ) | (44 | ) | (64 | ) | — | (2,603 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items | (216 | ) | (94 | ) | 2,168 | 121 | — | — | 1,979 | |||||||||||||||||||
Tax on net operating income | 380 | 13 | (9 | ) | 8 | 22 | — | 414 | ||||||||||||||||||||
Net operating income (b) | (1,881 | ) | (293 | ) | 1,921 | 85 | (42 | ) | — | (210 | ) | |||||||||||||||||
Net cost of net debt | — | — | — | — | — | — | (21 | ) | ||||||||||||||||||||
Non-controlling interests | — | — | — | — | — | — | 135 | |||||||||||||||||||||
Net income - group share | — | — | — | — | — | — | (96 | ) | ||||||||||||||||||||
(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 | — | — | (79 | ) | (18 | ) | — | |||||||||||||||||||||
On net operating income | — | — | (56 | ) | (14 | ) | — | |||||||||||||||||||||
9 months 2017 (adjusted) (M$) (a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 6,292 | 8,812 | 54,844 | 54,215 | 20 | — | 124,183 | |||||||||||||||||||||
Intersegment sales | 16,331 | 869 | 18,954 | 650 | 284 | (37,088 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,180 | ) | (14,305 | ) | — | — | (16,485 | ) | ||||||||||||||||||
Revenues from sales | 22,623 | 9,681 | 71,618 | 40,560 | 304 | (37,088 | ) | 107,698 | ||||||||||||||||||||
Operating expenses | (10,747 | ) | (9,297 | ) | (67,718 | ) | (38,736 | ) | (738 | ) | 37,088 | (90,148 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,034 | ) | (138 | ) | (740 | ) | (472 | ) | (27 | ) | — | (8,411 | ) | |||||||||||||||
Adjusted operating income | 4,842 | 246 | 3,160 | 1,352 | (461 | ) | — | 9,139 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,414 | 74 | 612 | 300 | 48 | — | 2,448 | |||||||||||||||||||||
Tax on net operating income | (2,076 | ) | (67 | ) | (868 | ) | (412 | ) | 463 | — | (2,960 | ) | ||||||||||||||||
Adjusted net operating income | 4,180 | 253 | 2,904 | 1,240 | 50 | — | 8,627 | |||||||||||||||||||||
Net cost of net debt | (827 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (94 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 7,706 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 3.02 | |||||||||||||||||||||||||||
(a) Except for earnings per share. | ||||||||||||||||||||||||||||
9 months 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 9,312 | 491 | 1,024 | 887 | 79 | — | 11,793 | |||||||||||||||||||||
Total divestments | 584 | 27 | 2,784 | 368 | 34 | — | 3,797 | |||||||||||||||||||||
Cash flow from operating activities | 7,633 | 336 | 4,399 | 1,138 | 198 | — | 13,704 |
25 |
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
9 months 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,563 | 6,449 | 46,555 | 48,897 | 4 | — | 107,468 | |||||||||||||||||||||
Intersegment sales | 12,572 | 703 | 14,760 | 487 | 225 | (28,747 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,760 | ) | (13,650 | ) | — | — | (16,410 | ) | ||||||||||||||||||
Revenues from sales | 18,135 | 7,152 | 58,555 | 35,734 | 229 | (28,747 | ) | 91,058 | ||||||||||||||||||||
Operating expenses | (10,512 | ) | (7,146 | ) | (54,407 | ) | (33,897 | ) | (710 | ) | 28,747 | (77,925 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,254 | ) | (108 | ) | (750 | ) | (446 | ) | (26 | ) | — | (8,584 | ) | |||||||||||||||
Operating income | 369 | (102 | ) | 3,398 | 1,391 | (507 | ) | — | 4,549 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,350 | 121 | 617 | 129 | 289 | — | 2,506 | |||||||||||||||||||||
Tax on net operating income | 454 | 1 | (852 | ) | (409 | ) | 87 | — | (719 | ) | ||||||||||||||||||
Net operating income | 2,173 | 20 | 3,163 | 1,111 | (131 | ) | — | 6,336 | ||||||||||||||||||||
Net cost of net debt | (617 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (71 | ) | ||||||||||||||||||||||||||
Net income - group share | 5,648 | |||||||||||||||||||||||||||
9 months 2016 (adjustments) (a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (248 | ) | — | — | — | — | (248 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (248 | ) | — | — | — | — | (248 | ) | |||||||||||||||||||
Operating expenses | (691 | ) | (15 | ) | 246 | (20 | ) | — | — | (480 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (200 | ) | — | — | — | — | — | (200 | ) | |||||||||||||||||||
Operating income (b) | (891 | ) | (263 | ) | 246 | (20 | ) | — | — | (928 | ) | |||||||||||||||||
Equity in net income (loss) of affiliates and other items | 206 | (76 | ) | (61 | ) | (20 | ) | — | — | 49 | ||||||||||||||||||
Tax on net operating income | 648 | 52 | (86 | ) | (2 | ) | — | — | 612 | |||||||||||||||||||
Net operating income (b) | (37 | ) | (287 | ) | 99 | (42 | ) | — | — | (267 | ) | |||||||||||||||||
Net cost of net debt | (17 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 52 | |||||||||||||||||||||||||||
Net income - group share | (232 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
On operating income | — | — | 315 | (10 | ) | — | ||||||||||||||||||||||
On net operating income | — | — | 219 | 1 | — | |||||||||||||||||||||||
9 months 2016 (adjusted) (M$) (a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,563 | 6,697 | 46,555 | 48,897 | 4 | — | 107,716 | |||||||||||||||||||||
Intersegment sales | 12,572 | 703 | 14,760 | 487 | 225 | (28,747 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,760 | ) | (13,650 | ) | — | — | (16,410 | ) | ||||||||||||||||||
Revenues from sales | 18,135 | 7,400 | 58,555 | 35,734 | 229 | (28,747 | ) | 91,306 | ||||||||||||||||||||
Operating expenses | (9,821 | ) | (7,131 | ) | (54,653 | ) | (33,877 | ) | (710 | ) | 28,747 | (77,445 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,054 | ) | (108 | ) | (750 | ) | (446 | ) | (26 | ) | — | (8,384 | ) | |||||||||||||||
Adjusted operating income | 1,260 | 161 | 3,152 | 1,411 | (507 | ) | — | 5,477 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,144 | 197 | 678 | 149 | 289 | — | 2,457 | |||||||||||||||||||||
Tax on net operating income | (194 | ) | (51 | ) | (766 | ) | (407 | ) | 87 | — | (1,331 | ) | ||||||||||||||||
Adjusted net operating income | 2,210 | 307 | 3,064 | 1,153 | (131 | ) | — | 6,603 | ||||||||||||||||||||
Net cost of net debt | (600 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (123 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 5,880 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 2.42 | |||||||||||||||||||||||||||
(a) Except for earnings per share. | ||||||||||||||||||||||||||||
9 months 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 11,252 | 1,339 | 1,295 | 745 | 44 | — | 14,675 | |||||||||||||||||||||
Total divestments | 1,369 | 137 | 73 | 359 | 12 | — | 1,950 | |||||||||||||||||||||
Cash flow from operating activities | 4,971 | (194 | ) | 2,839 | 1,414 | 473 | — | 9,503 |
26 |
Consolidated Financial Statements as of September 30, 2017
Adjustment items by business segment
(M$)
ADJUSTMENTS TO OPERATING INCOME
(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2017 | Inventory valuation effect | — | — | 210 | 51 | — | 261 | |||||||||||||||||||
Effect of changes in fair value | — | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||||
Restructuring charges | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (57 | ) | — | — | — | — | (57 | ) | ||||||||||||||||||
Other items | — | (32 | ) | (44 | ) | — | — | (76 | ) | |||||||||||||||||
Total | (59 | ) | (46 | ) | 166 | 51 | — | 112 | ||||||||||||||||||
3rd quarter 2016 | Inventory valuation effect | — | — | 4 | (51 | ) | — | (47 | ) | |||||||||||||||||
Effect of changes in fair value | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||||
Restructuring charges | — | (15 | ) | — | — | — | (15 | ) | ||||||||||||||||||
Asset impairment charges | — | — | — | — | — | — | ||||||||||||||||||||
Other items | — | (98 | ) | — | (2 | ) | — | (100 | ) | |||||||||||||||||
Total | — | (131 | ) | 4 | (53 | ) | — | (180 | ) | |||||||||||||||||
9 months 2017 | Inventory valuation effect | — | — | (79 | ) | (18 | ) | — | (97 | ) | ||||||||||||||||
Effect of changes in fair value | — | (41 | ) | — | — | — | (41 | ) | ||||||||||||||||||
Restructuring charges | (42 | ) | — | — | — | — | (42 | ) | ||||||||||||||||||
Asset impairment charges | (1,926 | ) | (25 | ) | (50 | ) | — | — | (2,001 | ) | ||||||||||||||||
Other items | (77 | ) | (146 | ) | (109 | ) | (26 | ) | (64 | ) | (422 | ) | ||||||||||||||
Total | (2,045 | ) | (212 | ) | (238 | ) | (44 | ) | (64 | ) | (2,603 | ) | ||||||||||||||
9 months 2016 | Inventory valuation effect | — | — | 315 | (10 | ) | — | 305 | ||||||||||||||||||
Effect of changes in fair value | — | (21 | ) | — | — | — | (21 | ) | ||||||||||||||||||
Restructuring charges | (19 | ) | (15 | ) | — | — | — | (34 | ) | |||||||||||||||||
Asset impairment charges | (200 | ) | — | — | — | — | (200 | ) | ||||||||||||||||||
Other items | (672 | ) | (227 | ) | (69 | ) | (10 | ) | — | (978 | ) | |||||||||||||||
Total | (891 | ) | (263 | ) | 246 | (20 | ) | — | (928 | ) | ||||||||||||||||
ADJUSTMENTS TO NET INCOME, GROUP SHARE | ||||||||||||||||||||||||||
(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2017 | Inventory valuation effect | — | — | 154 | 29 | — | 183 | |||||||||||||||||||
Effect of changes in fair value | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||||
Restructuring charges | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (56 | ) | (18 | ) | — | — | — | (74 | ) | |||||||||||||||||
Gains (losses) on disposals of assets | — | — | — | — | — | — | ||||||||||||||||||||
Other items | — | (11 | ) | (28 | ) | (8 | ) | — | (47 | ) | ||||||||||||||||
Total | (56 | ) | (41 | ) | 126 | 21 | — | 50 | ||||||||||||||||||
3rd quarter 2016 | Inventory valuation effect | — | — | 22 | (27 | ) | — | (5 | ) | |||||||||||||||||
Effect of changes in fair value | — | (13 | ) | — | — | — | (13 | ) | ||||||||||||||||||
Restructuring charges | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||||
Asset impairment charges | — | (33 | ) | — | — | — | (33 | ) | ||||||||||||||||||
Gains (losses) on disposals of assets | (32 | ) | — | — | — | — | (32 | ) | ||||||||||||||||||
Other items | 84 | (75 | ) | (12 | ) | (12 | ) | — | (15 | ) | ||||||||||||||||
Total | 52 | (139 | ) | 10 | (39 | ) | — | (116 | ) | |||||||||||||||||
9 months 2017 | Inventory valuation effect | — | — | (56 | ) | (16 | ) | — | (72 | ) | ||||||||||||||||
Effect of changes in fair value | — | (29 | ) | — | — | — | (29 | ) | ||||||||||||||||||
Restructuring charges | (12 | ) | (10 | ) | (39 | ) | — | — | (61 | ) | ||||||||||||||||
Asset impairment charges | (1,697 | ) | (77 | ) | (50 | ) | — | — | (1,824 | ) | ||||||||||||||||
Gains (losses) on disposals of assets | — | — | 2,139 | 125 | — | 2,264 | ||||||||||||||||||||
Other items | (144 | ) | (89 | ) | (73 | ) | (26 | ) | (42 | ) | (374 | ) | ||||||||||||||
Total | (1,853 | ) | (205 | ) | 1,921 | 83 | (42 | ) | (96 | ) | ||||||||||||||||
9 months 2016 | Inventory valuation effect | — | — | 219 | (2 | ) | — | 217 | ||||||||||||||||||
Effect of changes in fair value | — | (15 | ) | — | — | — | (15 | ) | ||||||||||||||||||
Restructuring charges | (4 | ) | (18 | ) | — | — | — | (22 | ) | |||||||||||||||||
Asset impairment charges | (129 | ) | (33 | ) | (49 | ) | — | — | (211 | ) | ||||||||||||||||
Gains (losses) on disposals of assets | 326 | — | — | (14 | ) | — | 312 | |||||||||||||||||||
Other items | (230 | ) | (184 | ) | (71 | ) | (28 | ) | — | (513 | ) | |||||||||||||||
Total | (37 | ) | (250 | ) | 99 | (44 | ) | — | (232 | ) |
27 |
Reconciliation of the information by business segment
with
consolidated financial statements
TOTAL
(unaudited)
3rd quarter 2017 (M$) | Adjusted | Adjustments (a) | Consolidated statement of income | |||||||||
Sales | 43,058 | (14 | ) | 43,044 | ||||||||
Excise taxes | (5,962 | ) | — | (5,962 | ) | |||||||
Revenues from sales | 37,096 | (14 | ) | 37,082 | ||||||||
Purchases, net of inventory variation | (24,585 | ) | 218 | (24,367 | ) | |||||||
Other operating expenses | (6,073 | ) | (35 | ) | (6,108 | ) | ||||||
Exploration costs | (181 | ) | — | (181 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,978 | ) | (57 | ) | (3,035 | ) | ||||||
Other income | 238 | 166 | 404 | |||||||||
Other expense | (65 | ) | (2 | ) | (67 | ) | ||||||
Financial interest on debt | (361 | ) | (7 | ) | (368 | ) | ||||||
Financial income and expense from cash & cash equivalents | (45 | ) | — | (45 | ) | |||||||
Cost of net debt | (406 | ) | (7 | ) | (413 | ) | ||||||
Other financial income | 204 | — | 204 | |||||||||
Other financial expense | (164 | ) | — | (164 | ) | |||||||
Equity in net income (loss) of affiliates | 674 | (174 | ) | 500 | ||||||||
Income taxes | (1,032 | ) | (60 | ) | (1,092 | ) | ||||||
Consolidated net income | 2,728 | 35 | 2,763 | |||||||||
Group share | 2,674 | 50 | 2,724 | |||||||||
Non-controlling interests | 54 | (15 | ) | 39 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
3rd quarter 2016 (M$) | Adjusted | Adjustments (a) | Consolidated statement of income | |||||||||
Sales | 37,528 | (116 | ) | 37,412 | ||||||||
Excise taxes | (5,587 | ) | — | (5,587 | ) | |||||||
Revenues from sales | 31,941 | (116 | ) | 31,825 | ||||||||
Purchases, net of inventory variation | (21,176 | ) | (47 | ) | (21,223 | ) | ||||||
Other operating expenses | (5,452 | ) | (17 | ) | (5,469 | ) | ||||||
Exploration costs | (274 | ) | — | (274 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,936 | ) | — | (2,936 | ) | |||||||
Other income | 284 | 6 | 290 | |||||||||
Other expense | (155 | ) | (196 | ) | (351 | ) | ||||||
Financial interest on debt | (262 | ) | (6 | ) | (268 | ) | ||||||
Financial income and expense from cash & cash equivalents | (5 | ) | — | (5 | ) | |||||||
Cost of net debt | (267 | ) | (6 | ) | (273 | ) | ||||||
Other financial income | 265 | — | 265 | |||||||||
Other financial expense | (154 | ) | — | (154 | ) | |||||||
Equity in net income (loss) of affiliates | 515 | 16 | 531 | |||||||||
Income taxes | (446 | ) | 195 | (251 | ) | |||||||
Consolidated net income | 2,145 | (165 | ) | 1,980 | ||||||||
Group share | 2,070 | (116 | ) | 1,954 | ||||||||
Non-controlling interests | 75 | (49 | ) | 26 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
28 |
Reconciliation of the information by business segment
with
consolidated financial statements
TOTAL
(unaudited)
9 months 2017 (M$) | Adjusted | Adjustments (a) | Consolidated statement of income | |||||||||
Sales | 124,183 | (41 | ) | 124,142 | ||||||||
Excise taxes | (16,485 | ) | — | (16,485 | ) | |||||||
Revenues from sales | 107,698 | (41 | ) | 107,657 | ||||||||
Purchases, net of inventory variation | (71,514 | ) | (238 | ) | (71,752 | ) | ||||||
Other operating expenses | (18,057 | ) | (323 | ) | (18,380 | ) | ||||||
Exploration costs | (577 | ) | — | (577 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,411 | ) | (2,001 | ) | (10,412 | ) | ||||||
Other income | 552 | 2,747 | 3,299 | |||||||||
Other expense | (181 | ) | (283 | ) | (464 | ) | ||||||
Financial interest on debt | (1,023 | ) | (21 | ) | (1,044 | ) | ||||||
Financial income and expense from cash & cash equivalents | (93 | ) | — | (93 | ) | |||||||
Cost of net debt | (1,116 | ) | (21 | ) | (1,137 | ) | ||||||
Other financial income | 717 | — | 717 | |||||||||
Other financial expense | (483 | ) | — | (483 | ) | |||||||
Equity in net income (loss) of affiliates | 1,843 | (485 | ) | 1,358 | ||||||||
Income taxes | (2,671 | ) | 414 | (2,257 | ) | |||||||
Consolidated net income | 7,800 | (231 | ) | 7,569 | ||||||||
Group share | 7,706 | (96 | ) | 7,610 | ||||||||
Non-controlling interests | 94 | (135 | ) | (41 | ) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
9 months 2016 (M$) | Adjusted | Adjustments (a) | Consolidated statement of income | |||||||||
Sales | 107,716 | (248 | ) | 107,468 | ||||||||
Excise taxes | (16,410 | ) | — | (16,410 | ) | |||||||
Revenues from sales | 91,306 | (248 | ) | 91,058 | ||||||||
Purchases, net of inventory variation | (59,663 | ) | 253 | (59,410 | ) | |||||||
Other operating expenses | (17,128 | ) | (383 | ) | (17,511 | ) | ||||||
Exploration costs | (654 | ) | (350 | ) | (1,004 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,384 | ) | (200 | ) | (8,584 | ) | ||||||
Other income | 627 | 335 | 962 | |||||||||
Other expense | (274 | ) | (280 | ) | (554 | ) | ||||||
Financial interest on debt | (792 | ) | (17 | ) | (809 | ) | ||||||
Financial income and expense from cash & cash equivalents | 6 | — | 6 | |||||||||
Cost of net debt | (786 | ) | (17 | ) | (803 | ) | ||||||
Other financial income | 768 | — | 768 | |||||||||
Other financial expense | (475 | ) | — | (475 | ) | |||||||
Equity in net income (loss) of affiliates | 1,811 | (6 | ) | 1,805 | ||||||||
Income taxes | (1,145 | ) | 612 | (533 | ) | |||||||
Consolidated net income | 6,003 | (284 | ) | 5,719 | ||||||||
Group share | 5,880 | (232 | ) | 5,648 | ||||||||
Non-controlling interests | 123 | (52 | ) | 71 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
29 |
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS OF 2017
(unaudited)
1) Accounting policies
The interim consolidated financial statements of TOTAL S.A. and its subsidiaries (the Group) as of September 30, 2017 are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.
The accounting policies applied for the consolidated financial statements as of September 30, 2017 do not differ significantly from those applied for the consolidated financial statements as of December 31, 2016 which have been prepared on the basis of IFRS (International Financial Reporting Standards) as adopted by the European Union and IFRS as issued by the IASB (International Accounting Standards Board). New texts or amendments which were mandatory for the periods beginning on or after January 1, 2017 did not have a material impact on the Group’s consolidated financial statements as of September 30, 2017.
As for accounting standards applicable for annual periods starting from January 1, 2018:
• | As indicated in the December 31, 2016 Notes to the Consolidated Financial Statements, the expected impacts of the application of standard IFRS 15 “Revenue from Contracts with Customers” are not significant for the Group. |
• | The impacts of the application of standard IFRS 9 “Financial Instruments” are currently under review, especially for the impairment of financial assets. |
The preparation of financial statements in accordance with IFRS for the closing as of September 30, 2017 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.
These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.
Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.
The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, the impairment of assets, the employee benefits, the asset retirement obligations and the income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2016.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.
30 |
2) Changes in the Group structure
2.1) Main acquisitions and divestments
Gas, Renewables & Power |
• | In January 2017, TOTAL acquired a 23% interest in the company Tellurian to develop an integrated gas project in the United States for an amount of $207 million. |
Refining & Chemicals |
• | On January 31, 2017, TOTAL closed the sale of Atotech to the Carlyle Group for an amount of $3.2 billion. |
Marketing & Services |
• | On March 28, 2017, TOTAL announced the closing of the acquisition of the assets of Gulf Africa Petroleum Corporation in Kenya, Uganda and Tanzania. |
2.2) Divestment projects
Exploration & Production |
• | In February 2017, TOTAL has signed an agreement with Perenco for the sale of interests and the transfer of operatorship in various mature assets in Gabon. The transaction is subject to the publication in the Official Journal of the decrees signed by the President of the Republic of Gabon. The assets and liabilities have been classified in the consolidated balance sheet as at September 30th, 2017 respectively in “assets classified as held for sale” for an amount of $431 million (mainly tangible assets for an amount of $356 million) and “liabilities directly associated with the assets classified as held for sale” for an amount of $352 million. |
• | On September 4, 2017 TOTAL announced the sale to Kuwait Foreign Petroleum Exploration Company (KUFPEC) of its remaining 15% interest in the Gina Krog field in Norway. The assets and liabilities have been classified in the consolidated balance sheet as at September 30th, 2017 respectively in “assets classified as held for sale” for an amount of $564 million (mainly tangible assets for an amount of $525 million) and “liabilities directly associated with the assets classified as held for sale” for an amount of $169 million. |
31 |
3) Adjustment items
Description of the business segments
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL and which is reviewed by the main operational decision-making body of the Group, namely the Executive Committee.
Total has put in place a new organization fully effective since January 1, 2017, structured around four business segments following the creation of the Gas, Renewables & Power segment, alongside the Exploration & Production, Refining & Chemicals and Marketing & Services segments.
Certain figures for the year 2016 have been restated in order to reflect the new organization with four business segments.
Adjustment items
Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.
Adjustment items include:
(i) | Special items |
Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) The inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for some transactions differences between internal measure of performance used by TOTAL’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
The detail of the adjustment items is presented in the table below.
32 |
ADJUSTMENTS TO OPERATING INCOME
(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2017 | Inventory valuation effect | — | — | 210 | 51 | — | 261 | |||||||||||||||||||
Effect of changes in fair value | — | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||||
Restructuring charges | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (57 | ) | — | — | — | — | (57 | ) | ||||||||||||||||||
Other items | — | (32 | ) | (44 | ) | — | — | (76 | ) | |||||||||||||||||
Total | (59 | ) | (46 | ) | 166 | 51 | — | 112 | ||||||||||||||||||
3rd quarter 2016 | Inventory valuation effect | — | — | 4 | (51 | ) | — | (47 | ) | |||||||||||||||||
Effect of changes in fair value | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||||
Restructuring charges | — | (15 | ) | — | — | — | (15 | ) | ||||||||||||||||||
Asset impairment charges | — | — | — | — | — | — | ||||||||||||||||||||
Other items | — | (98 | ) | — | (2 | ) | — | (100 | ) | |||||||||||||||||
Total | — | (131 | ) | 4 | (53 | ) | — | (180 | ) | |||||||||||||||||
9 months 2017 | Inventory valuation effect | — | — | (79 | ) | (18 | ) | — | (97 | ) | ||||||||||||||||
Effect of changes in fair value | — | (41 | ) | — | — | — | (41 | ) | ||||||||||||||||||
Restructuring charges | (42 | ) | — | — | — | — | (42 | ) | ||||||||||||||||||
Asset impairment charges | (1,926 | ) | (25 | ) | (50 | ) | — | — | (2,001 | ) | ||||||||||||||||
Other items | (77 | ) | (146 | ) | (109 | ) | (26 | ) | (64 | ) | (422 | ) | ||||||||||||||
Total | (2,045 | ) | (212 | ) | (238 | ) | (44 | ) | (64 | ) | (2,603 | ) | ||||||||||||||
9 months 2016 | Inventory valuation effect | — | — | 315 | (10 | ) | — | 305 | ||||||||||||||||||
Effect of changes in fair value | — | (21 | ) | — | — | — | (21 | ) | ||||||||||||||||||
Restructuring charges | (19 | ) | (15 | ) | — | — | — | (34 | ) | |||||||||||||||||
Asset impairment charges | (200 | ) | — | — | — | — | (200 | ) | ||||||||||||||||||
Other items | (672 | ) | (227 | ) | (69 | ) | (10 | ) | — | (978 | ) | |||||||||||||||
Total | (891 | ) | (263 | ) | 246 | (20 | ) | — | (928 | ) |
33 |
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||
3rd quarter 2017 | Inventory valuation effect | — | — | 154 | 29 | — | 183 | |||||||||||||||||||
Effect of changes in fair value | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||||
Restructuring charges | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||
Asset impairment charges | (56 | ) | (18 | ) | — | — | — | (74 | ) | |||||||||||||||||
Gains (losses) on disposals of assets | — | — | — | — | — | — | ||||||||||||||||||||
Other items | — | (11 | ) | (28 | ) | (8 | ) | — | (47 | ) | ||||||||||||||||
Total | (56 | ) | (41 | ) | 126 | 21 | — | 50 | ||||||||||||||||||
3rd quarter 2016 | Inventory valuation effect | — | — | 22 | (27 | ) | — | (5 | ) | |||||||||||||||||
Effect of changes in fair value | — | (13 | ) | — | — | — | (13 | ) | ||||||||||||||||||
Restructuring charges | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||||
Asset impairment charges | — | (33 | ) | — | — | — | (33 | ) | ||||||||||||||||||
Gains (losses) on disposals of assets | (32 | ) | — | — | — | — | (32 | ) | ||||||||||||||||||
Other items | 84 | (75 | ) | (12 | ) | (12 | ) | — | (15 | ) | ||||||||||||||||
Total | 52 | (139 | ) | 10 | (39 | ) | — | (116 | ) | |||||||||||||||||
9 months 2017 | Inventory valuation effect | — | — | (56 | ) | (16 | ) | — | (72 | ) | ||||||||||||||||
Effect of changes in fair value | — | (29 | ) | — | — | — | (29 | ) | ||||||||||||||||||
Restructuring charges | (12 | ) | (10 | ) | (39 | ) | — | — | (61 | ) | ||||||||||||||||
Asset impairment charges | (1,697 | ) | (77 | ) | (50 | ) | — | — | (1,824 | ) | ||||||||||||||||
Gains (losses) on disposals of assets | — | — | 2,139 | 125 | — | 2,264 | ||||||||||||||||||||
Other items | (144 | ) | (89 | ) | (73 | ) | (26 | ) | (42 | ) | (374 | ) | ||||||||||||||
Total | (1,853 | ) | (205 | ) | 1,921 | 83 | (42 | ) | (96 | ) | ||||||||||||||||
9 months 2016 | Inventory valuation effect | — | — | 219 | (2 | ) | — | 217 | ||||||||||||||||||
Effect of changes in fair value | — | (15 | ) | — | — | — | (15 | ) | ||||||||||||||||||
Restructuring charges | (4 | ) | (18 | ) | — | — | — | (22 | ) | |||||||||||||||||
Asset impairment charges | (129 | ) | (33 | ) | (49 | ) | — | — | (211 | ) | ||||||||||||||||
Gains (losses) on disposals of assets | 326 | — | — | (14 | ) | — | 312 | |||||||||||||||||||
Other items | (230 | ) | (184 | ) | (71 | ) | (28 | ) | — | (513 | ) | |||||||||||||||
Total | (37 | ) | (250 | ) | 99 | (44 | ) | — | (232 | ) |
34 |
4) Shareholders’ equity
Treasury shares (TOTAL shares held by TOTAL S.A.)
As of September 30, 2017, TOTAL S.A. holds 8,378,106 of its own shares, representing 0.33% of its share capital, detailed as follows:
• | 8,346,397 shares allocated to TOTAL share grant plans for Group employees; and |
• | 31,709 shares intended to be allocated to new TOTAL share purchase option plans or to new share grant plans. |
These shares are deducted from the consolidated shareholders’ equity.
Dividend
A 2017 first interim dividend of €0.62 per share, decided by the Board of Directors on April 26, 2017 has been paid in cash or in new shares on October 12, 2017 (the ex-dividend date was September 25, 2017). The share price of new shares has been set at €41.12 per share by the Board of Directors on September 20, 2017. This price is equal to the average opening price on Euronext Paris for the 20 trading days preceding this Board of Directors meeting, reduced by the amount of the first interim dividend, with a 5% discount, rounded up to the nearest cent. On October 12, 2017, 25,633,559 shares have been issued at a price of €41.12 per share.
A 2017 second interim dividend of €0.62 per share, decided by the Board of Directors on July 26, 2017, would be paid on January 11, 2018 (the ex-dividend date will be December 19, 2017).
A 2017 third interim dividend of €0.62 per share, decided by the Board of Directors on October 26, 2017, would be paid on April 9, 2018 (the ex-dividend date will be March 19, 2018).
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €0.90 per share for the 3rd quarter 2017 (€0.71 per share for the 2nd quarter 2017 and €0.71 per share for the 3rd quarter 2016). Diluted earnings per share calculated using the same method amounted to €0.90 per share for the 3rd quarter 2017 (€0.71 per share for the 2nd quarter 2017 and €0.71 per share for the 3rd quarter 2016).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
35 |
Other comprehensive income
Detail of other comprehensive income showing items reclassified from equity to net income is presented in the table below:
(M$) | 9 months 2017 | 9 months 2016 | ||||||||||||||
Actuarial gains and losses | 29 | (576 | ) | |||||||||||||
Tax effect | (17 | ) | 119 | |||||||||||||
Currency translation adjustment generated by the parent company | 7,884 | 1,967 | ||||||||||||||
Items not potentially reclassifiable to profit and loss | 7,896 | 1,510 | ||||||||||||||
Currency translation adjustment | (1,993 | ) | (1,717 | ) | ||||||||||||
- unrealized gain/(loss) of the period | (1,910 | ) | (1,488 | ) | ||||||||||||
- less gain/(loss) included in net income | 83 | 229 | ||||||||||||||
Available for sale financial assets | 4 | 1 | ||||||||||||||
- unrealized gain/(loss) of the period | 4 | 1 | ||||||||||||||
- less gain/(loss) included in net income | — | — | ||||||||||||||
Cash flow hedge | 150 | 145 | ||||||||||||||
- unrealized gain/(loss) of the period | 400 | 248 | ||||||||||||||
- less gain/(loss) included in net income | 250 | 103 | ||||||||||||||
Share of other comprehensive income of equity affiliates, net amount | (672 | ) | 477 | |||||||||||||
- unrealized gain/(loss) of the period | (680 | ) | 494 | |||||||||||||
- less gain/(loss) included in net income | (8 | ) | 17 | |||||||||||||
Other | — | — | ||||||||||||||
Tax effect | (51 | ) | (44 | ) | ||||||||||||
Items potentially reclassifiable to profit and loss | (2,562 | ) | (1,138 | ) | ||||||||||||
Total other comprehensive income, net amount | 5,334 | 372 |
36 |
Tax effects relating to each component of other comprehensive income are as follows:
9 months 2017 | 9 months 2016 | |||||||||||||||||||||||
(M$) | Pre-tax amount | Tax effect | Net amount | Pre-tax amount | Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses | 29 | (17 | ) | 12 | (576 | ) | 119 | (457 | ) | |||||||||||||||
Currency translation adjustment generated by the parent company | 7,884 | — | 7,884 | 1,967 | — | 1,967 | ||||||||||||||||||
Items not potentially reclassifiable to profit and loss | 7,913 | (17 | ) | 7,896 | 1,391 | 119 | 1,510 | |||||||||||||||||
Currency translation adjustment | (1,993 | ) | — | (1,993 | ) | (1,717 | ) | — | (1,717 | ) | ||||||||||||||
Available for sale financial assets | 4 | (1 | ) | 3 | 1 | — | 1 | |||||||||||||||||
Cash flow hedge | 150 | (50 | ) | 100 | 145 | (44 | ) | 101 | ||||||||||||||||
Share of other comprehensive income of equity affiliates, net amount | (672 | ) | — | (672 | ) | 477 | — | 477 | ||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Items potentially reclassifiable to profit and loss | (2,511 | ) | (51 | ) | (2,562 | ) | (1,094 | ) | (44 | ) | (1,138 | ) | ||||||||||||
Total other comprehensive income | 5,402 | (68 | ) | 5,334 | 297 | 75 | 372 |
5) Financial debt
The Group issued bonds during the first nine months of 2017:
- | Bond 1.250% 2017-2024 (GBP 250 million) |
The Group reimbursed bonds during the first nine months of 2017:
- | Bond 4.875% 2012-2017 (AUD 100 million) |
- | Bond 1.500% 2012-2017 (USD 1,000 million) |
- | Bond 1.000% 2014-2017 (USD 500 million) |
- | Bond 4.700% 2007-2017 (EUR 300 million) |
- | Bond 4.125% 2012-2017 (AUD 150 million) |
- | Bond 1.550% 2012-2017 (USD 1,500 million) |
- | Bond 2.250% 2012-2017 (NOK 1,450 million) |
In the context of its active cash management, the Group may temporarily increase its current borrowings, particularly in the form of commercial paper. The changes in current borrowings, cash and cash equivalents and current financial assets resulting from this cash management in the quarterly financial statements are not necessarily representative of a longer-term position.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments. There were no major changes concerning transactions with related parties during the first nine months of 2017.
37 |
7) Other risks and contingent liabilities
TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group.
Alitalia
In the Marketing & Services segment, a civil proceeding was initiated in Italy, in 2013, against TOTAL S.A. and its subsidiary Total Aviazione Italia Srl before the competent Italian civil court. The plaintiff claims against TOTAL S.A., its subsidiary and other third parties, damages that it estimates to be nearly €908 million. This proceeding follows practices that had been condemned by the Italian competition authority in 2006. The parties have exchanged preliminary findings. The existence and the assessment of the alleged damages in this procedure involving multiple defendants remain contested.
Blue Rapid and the Russian Olympic Committee – Russian regions and Interneft
Blue Rapid, a Panamanian company, and the Russian Olympic Committee filed a claim for damages with the Paris Commercial Court against Elf Aquitaine, alleging a so-called non-completion by a former subsidiary of Elf Aquitaine of a contract related to an exploration and production project in Russia negotiated in the early 1990s. Elf Aquitaine believed this claim to be unfounded and opposed it. On January 12, 2009, the Commercial Court of Paris rejected Blue Rapid’s claim against Elf Aquitaine and found that the Russian Olympic Committee did not have standing in the matter. On June 30, 2011, the Court of Appeal of Paris dismissed as inadmissible the claim of Blue Rapid and the Russian Olympic Committee against Elf Aquitaine, notably on the grounds of the contract having lapsed. The judgment of the Court of Appeal of Paris is now final and binding following two decisions issued on February 18, 2016 by the French Supreme Court to put an end to this proceeding.
In connection with the same facts, and fifteen years after the aforementioned exploration and production contract was rendered null and void (“caduc”), a Russian company, which was held not to be the contracting party to the contract, and two regions of the Russian Federation that were not even parties to the contract, launched an arbitration procedure against the aforementioned former subsidiary of Elf Aquitaine that was liquidated in 2005, claiming alleged damages of $22.4 billion. The arbitral tribunal issued its decision on June 19, 2017 and entirely dismissed this claim.
The Group has lodged a criminal complaint to denounce the fraudulent claim of which the Group believes it is a victim and, has taken and reserved its rights to take other actions and measures to defend its interests.
FERC
The Office of Enforcement of the U.S. Federal Energy Regulatory Commission (FERC) began in 2015 an investigation in connection with the natural gas trading activities in the United States of Total Gas & Power North America, Inc. (TGPNA), a U.S. subsidiary of the Group. The investigation covered transactions made by TGPNA between June 2009 and June 2012 on the natural gas market. TGPNA received a Notice of Alleged Violations from FERC on September 21, 2015. On April 28, 2016, FERC issued an order to show cause to TGPNA and two of its former employees, and to TOTAL S.A. and Total Gas & Power Ltd., regarding the same facts. TGPNA contests the claims brought against it.
A class action has been launched to seek damages from these three companies and was dismissed by a judgment of the U.S. District court of New York issued on March 15, 2017. The claimants appealed this judgment.
Yemen
Due to the security conditions in the vicinity of Balhaf, Yemen LNG, in which the Group holds a stake of 39.62%, stopped its commercial production and export of LNG in April 2015, when it declared Force Majeure to its various stakeholders. The plant is in a preservation mode.
38 |
8) Information by business segment
9 months 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 6,292 | 8,771 | 54,844 | 54,215 | 20 | — | 124,142 | |||||||||||||||||||||
Intersegment sales | 16,331 | 869 | 18,954 | 650 | 284 | (37,088 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,180 | ) | (14,305 | ) | — | — | (16,485 | ) | ||||||||||||||||||
Revenues from sales | 22,623 | 9,640 | 71,618 | 40,560 | 304 | (37,088 | ) | 107,657 | ||||||||||||||||||||
Operating expenses | (10,866 | ) | (9,443 | ) | (67,906 | ) | (38,780 | ) | (802 | ) | 37,088 | (90,709 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,960 | ) | (163 | ) | (790 | ) | (472 | ) | (27 | ) | — | (10,412 | ) | |||||||||||||||
Operating income | 2,797 | 34 | 2,922 | 1,308 | (525 | ) | — | 6,536 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,198 | (20 | ) | 2,780 | 421 | 48 | — | 4,427 | ||||||||||||||||||||
Tax on net operating income | (1,696 | ) | (54 | ) | (877 | ) | (404 | ) | 485 | — | (2,546 | ) | ||||||||||||||||
Net operating income | 2,299 | (40 | ) | 4,825 | 1,325 | 8 | — | 8,417 | ||||||||||||||||||||
Net cost of net debt | (848 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 41 | |||||||||||||||||||||||||||
Net income - group share | 7,610 |
9 months 2017
(adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (41 | ) | — | — | — | — | (41 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (41 | ) | — | — | — | — | (41 | ) | |||||||||||||||||||
Operating expenses | (119 | ) | (146 | ) | (188 | ) | (44 | ) | (64 | ) | — | (561 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (1,926 | ) | (25 | ) | (50 | ) | — | — | — | (2,001 | ) | |||||||||||||||||
Operating income (b) | (2,045 | ) | (212 | ) | (238 | ) | (44 | ) | (64 | ) | — | (2,603 | ) | |||||||||||||||
Equity in net income (loss) of affiliates and other items | (216 | ) | (94 | ) | 2,168 | 121 | — | — | 1,979 | |||||||||||||||||||
Tax on net operating income | 380 | 13 | (9 | ) | 8 | 22 | — | 414 | ||||||||||||||||||||
Net operating income (b) | (1,881 | ) | (293 | ) | 1,921 | 85 | (42 | ) | — | (210 | ) | |||||||||||||||||
Net cost of net debt | (21 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 135 | |||||||||||||||||||||||||||
Net income - group share | (96 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
- On operating income | — | — | (79 | ) | (18 | ) | — | |||||||||||||||||||||
- On net operating income | — | — | (56 | ) | (14 | ) | — |
39 |
9 months
2017 (adjusted) (M$)(a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 6,292 | 8,812 | 54,844 | 54,215 | 20 | — | 124,183 | |||||||||||||||||||||
Intersegment sales | 16,331 | 869 | 18,954 | 650 | 284 | (37,088 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,180 | ) | (14,305 | ) | — | — | (16,485 | ) | ||||||||||||||||||
Revenues from sales | 22,623 | 9,681 | 71,618 | 40,560 | 304 | (37,088 | ) | 107,698 | ||||||||||||||||||||
Operating expenses | (10,747 | ) | (9,297 | ) | (67,718 | ) | (38,736 | ) | (738 | ) | 37,088 | (90,148 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,034 | ) | (138 | ) | (740 | ) | (472 | ) | (27 | ) | — | (8,411 | ) | |||||||||||||||
Adjusted operating income | 4,842 | 246 | 3,160 | 1,352 | (461 | ) | — | 9,139 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,414 | 74 | 612 | 300 | 48 | — | 2,448 | |||||||||||||||||||||
Tax on net operating income | (2,076 | ) | (67 | ) | (868 | ) | (412 | ) | 463 | — | (2,960 | ) | ||||||||||||||||
Adjusted net operating income | 4,180 | 253 | 2,904 | 1,240 | 50 | — | 8,627 | |||||||||||||||||||||
Net cost of net debt | (827 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (94 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 7,706 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 3.02 | |||||||||||||||||||||||||||
(a) Except for earnings per share. |
9 months 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 9,312 | 491 | 1,024 | 887 | 79 | — | 11,793 | |||||||||||||||||||||
Total divestments | 584 | 27 | 2,784 | 368 | 34 | — | 3,797 | |||||||||||||||||||||
Cash flow from operating activities | 7,633 | 336 | 4,399 | 1,138 | 198 | — | 13,704 |
40 |
9 months 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,563 | 6,449 | 46,555 | 48,897 | 4 | — | 107,468 | |||||||||||||||||||||
Intersegment sales | 12,572 | 703 | 14,760 | 487 | 225 | (28,747 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,760 | ) | (13,650 | ) | — | — | (16,410 | ) | ||||||||||||||||||
Revenues from sales | 18,135 | 7,152 | 58,555 | 35,734 | 229 | (28,747 | ) | 91,058 | ||||||||||||||||||||
Operating expenses | (10,512 | ) | (7,146 | ) | (54,407 | ) | (33,897 | ) | (710 | ) | 28,747 | (77,925 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,254 | ) | (108 | ) | (750 | ) | (446 | ) | (26 | ) | — | (8,584 | ) | |||||||||||||||
Operating income | 369 | (102 | ) | 3,398 | 1,391 | (507 | ) | — | 4,549 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,350 | 121 | 617 | 129 | 289 | — | 2,506 | |||||||||||||||||||||
Tax on net operating income | 454 | 1 | (852 | ) | (409 | ) | 87 | — | (719 | ) | ||||||||||||||||||
Net operating income | 2,173 | 20 | 3,163 | 1,111 | (131 | ) | — | 6,336 | ||||||||||||||||||||
Net cost of net debt | (617 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (71 | ) | ||||||||||||||||||||||||||
Net income - group share | 5,648 |
9 months 2016
(adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (248 | ) | — | — | — | — | (248 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (248 | ) | — | — | — | — | (248 | ) | |||||||||||||||||||
Operating expenses | (691 | ) | (15 | ) | 246 | (20 | ) | — | — | (480 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (200 | ) | — | — | — | — | — | (200 | ) | |||||||||||||||||||
Operating income(b) | (891 | ) | (263 | ) | 246 | (20 | ) | — | — | (928 | ) | |||||||||||||||||
Equity in net income (loss) of affiliates and other items | 206 | (76 | ) | (61 | ) | (20 | ) | — | — | 49 | ||||||||||||||||||
Tax on net operating income | 648 | 52 | (86 | ) | (2 | ) | — | — | 612 | |||||||||||||||||||
Net operating income(b) | (37 | ) | (287 | ) | 99 | (42 | ) | — | — | (267 | ) | |||||||||||||||||
Net cost of net debt | (17 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 52 | |||||||||||||||||||||||||||
Net income - group share | (232 | ) | ||||||||||||||||||||||||||
(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 | — | — | 315 | (10 | ) | — | ||||||||||||||||||||||
- On net operating income | — | — | 219 | 1 | — |
41 |
9 months 2016 (adjusted) (M$)(a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 5,563 | 6,697 | 46,555 | 48,897 | 4 | — | 107,716 | |||||||||||||||||||||
Intersegment sales | 12,572 | 703 | 14,760 | 487 | 225 | (28,747 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (2,760 | ) | (13,650 | ) | — | — | (16,410 | ) | ||||||||||||||||||
Revenues from sales | 18,135 | 7,400 | 58,555 | 35,734 | 229 | (28,747 | ) | 91,306 | ||||||||||||||||||||
Operating expenses | (9,821 | ) | (7,131 | ) | (54,653 | ) | (33,877 | ) | (710 | ) | 28,747 | (77,445 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,054 | ) | (108 | ) | (750 | ) | (446 | ) | (26 | ) | — | (8,384 | ) | |||||||||||||||
Adjusted operating income | 1,260 | 161 | 3,152 | 1,411 | (507 | ) | — | 5,477 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 1,144 | 197 | 678 | 149 | 289 | — | 2,457 | |||||||||||||||||||||
Tax on net operating income | (194 | ) | (51 | ) | (766 | ) | (407 | ) | 87 | — | (1,331 | ) | ||||||||||||||||
Adjusted net operating income | 2,210 | 307 | 3,064 | 1,153 | (131 | ) | — | 6,603 | ||||||||||||||||||||
Net cost of net debt | (600 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (123 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 5,880 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 2.42 |
(a) Except for earnings per share.
9 months 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 11,252 | 1,339 | 1,295 | 745 | 44 | — | 14,675 | |||||||||||||||||||||
Total divestments | 1,369 | 137 | 73 | 359 | 12 | — | 1,950 | |||||||||||||||||||||
Cash flow from operating activities | 4,971 | (194 | ) | 2,839 | 1,414 | 473 | — | 9,503 |
42 |
3rd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,121 | 2,903 | 18,923 | 19,086 | 11 | — | 43,044 | |||||||||||||||||||||
Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
Revenues from sales | 7,786 | 3,189 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,082 | ||||||||||||||||||||
Operating expenses | (3,632 | ) | (3,117 | ) | (23,110 | ) | (13,386 | ) | (250 | ) | 12,839 | (30,656 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,548 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (3,035 | ) | |||||||||||||||
Operating income | 1,606 | 21 | 1,348 | 574 | (158 | ) | — | 3,391 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 521 | 12 | 179 | 133 | 32 | — | 877 | |||||||||||||||||||||
Tax on net operating income | (745 | ) | 7 | (379 | ) | (173 | ) | 100 | — | (1,190 | ) | |||||||||||||||||
Net operating income | 1,382 | 40 | 1,148 | 534 | (26 | ) | — | 3,078 | ||||||||||||||||||||
Net cost of net debt | (315 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (39 | ) | ||||||||||||||||||||||||||
Net income - group share | 2,724 |
3rd quarter 2017 (adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||
Operating expenses | (2 | ) | (32 | ) | 166 | 51 | — | — | 183 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (57 | ) | — | — | — | — | — | (57 | ) | |||||||||||||||||||
Operating income(b) | (59 | ) | (46 | ) | 166 | 51 | — | — | 112 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | (2 | ) | (15 | ) | 12 | (5 | ) | — | — | (10 | ) | |||||||||||||||||
Tax on net operating income | 4 | 4 | (50 | ) | (18 | ) | — | — | (60 | ) | ||||||||||||||||||
Net operating income(b) | (57 | ) | (57 | ) | 128 | 28 | — | — | 42 | |||||||||||||||||||
Net cost of net debt | (7 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 15 | |||||||||||||||||||||||||||
Net income - group share | 50 | |||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. | ||||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
- On operating income | — | — | 210 | 51 | — | |||||||||||||||||||||||
- On net operating income | — | — | 156 | 36 | — |
43 |
3rd quarter 2017 (adjusted) (M$)(a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 2,121 | 2,917 | 18,923 | 19,086 | 11 | — | 43,058 | |||||||||||||||||||||
Intersegment sales | 5,665 | 286 | 6,592 | 207 | 89 | (12,839 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (799 | ) | (5,163 | ) | — | — | (5,962 | ) | ||||||||||||||||||
Revenues from sales | 7,786 | 3,203 | 24,716 | 14,130 | 100 | (12,839 | ) | 37,096 | ||||||||||||||||||||
Operating expenses | (3,630 | ) | (3,085 | ) | (23,276 | ) | (13,437 | ) | (250 | ) | 12,839 | (30,839 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,491 | ) | (51 | ) | (258 | ) | (170 | ) | (8 | ) | — | (2,978 | ) | |||||||||||||||
Adjusted operating income | 1,665 | 67 | 1,182 | 523 | (158 | ) | — | 3,279 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 523 | 27 | 167 | 138 | 32 | — | 887 | |||||||||||||||||||||
Tax on net operating income | (749 | ) | 3 | (329 | ) | (155 | ) | 100 | — | (1,130 | ) | |||||||||||||||||
Adjusted net operating income | 1,439 | 97 | 1,020 | 506 | (26 | ) | — | 3,036 | ||||||||||||||||||||
Net cost of net debt | (308 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (54 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 2,674 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 1.04 |
(a) Except for earnings per share.
3rd quarter 2017 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 3,228 | 99 | 357 | 190 | 36 | — | 3,910 | |||||||||||||||||||||
Total divestments | 339 | — | 24 | 150 | 26 | — | 539 | |||||||||||||||||||||
Cash flow from operating activities | 2,633 | 325 | 662 | 596 | 147 | — | 4,363 |
44 |
3rd quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,852 | 2,510 | 16,050 | 16,998 | 2 | — | 37,412 | |||||||||||||||||||||
Intersegment sales | 4,854 | 283 | 5,072 | 147 | 74 | (10,430 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (875 | ) | (4,712 | ) | — | — | (5,587 | ) | ||||||||||||||||||
Revenues from sales | 6,706 | 2,793 | 20,247 | 12,433 | 76 | (10,430 | ) | 31,825 | ||||||||||||||||||||
Operating expenses | (3,513 | ) | (2,754 | ) | (19,102 | ) | (11,829 | ) | (198 | ) | 10,430 | (26,966 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,479 | ) | (46 | ) | (251 | ) | (150 | ) | (10 | ) | — | (2,936 | ) | |||||||||||||||
Operating income | 714 | (7 | ) | 894 | 454 | (132 | ) | — | 1,923 | |||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 180 | 7 | 228 | 78 | 88 | — | 581 | |||||||||||||||||||||
Tax on net operating income | (61 | ) | 17 | (197 | ) | (134 | ) | 59 | — | (316 | ) | |||||||||||||||||
Net operating income | 833 | 17 | 925 | 398 | 15 | — | 2,188 | |||||||||||||||||||||
Net cost of net debt | (208 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (26 | ) | ||||||||||||||||||||||||||
Net income - group share | 1,954 |
3rd quarter 2016 (adjustments)(a) (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | — | (116 | ) | — | — | — | — | (116 | ) | |||||||||||||||||||
Intersegment sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Excise taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Revenues from sales | — | (116 | ) | — | — | — | — | (116 | ) | |||||||||||||||||||
Operating expenses | — | (15 | ) | 4 | (53 | ) | — | — | (64 | ) | ||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating income(b) | — | (131 | ) | 4 | (53 | ) | — | — | (180 | ) | ||||||||||||||||||
Equity in net income (loss) of affiliates and other items | (123 | ) | (68 | ) | 16 | 1 | — | — | (174 | ) | ||||||||||||||||||
Tax on net operating income | 175 | 25 | (11 | ) | 6 | — | — | 195 | ||||||||||||||||||||
Net operating income(b) | 52 | (174 | ) | 9 | (46 | ) | — | — | (159 | ) | ||||||||||||||||||
Net cost of net debt | (6 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 49 | |||||||||||||||||||||||||||
Net income - group share | (116 | ) | ||||||||||||||||||||||||||
(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 | — | — | 4 | (51 | ) | — | ||||||||||||||||||||||
- On net operating income | — | — | 21 | (33 | ) | — |
45 |
3rd quarter 2016 (adjusted) (M$)(a) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Non-Group sales | 1,852 | 2,626 | 16,050 | 16,998 | 2 | — | 37,528 | |||||||||||||||||||||
Intersegment sales | 4,854 | 283 | 5,072 | 147 | 74 | (10,430 | ) | — | ||||||||||||||||||||
Excise taxes | — | — | (875 | ) | (4,712 | ) | — | — | (5,587 | ) | ||||||||||||||||||
Revenues from sales | 6,706 | 2,909 | 20,247 | 12,433 | 76 | (10,430 | ) | 31,941 | ||||||||||||||||||||
Operating expenses | (3,513 | ) | (2,739 | ) | (19,106 | ) | (11,776 | ) | (198 | ) | 10,430 | (26,902 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,479 | ) | (46 | ) | (251 | ) | (150 | ) | (10 | ) | — | (2,936 | ) | |||||||||||||||
Adjusted operating income | 714 | 124 | 890 | 507 | (132 | ) | — | 2,103 | ||||||||||||||||||||
Equity in net income (loss) of affiliates and other items | 303 | 75 | 212 | 77 | 88 | — | 755 | |||||||||||||||||||||
Tax on net operating income | (236 | ) | (8 | ) | (186 | ) | (140 | ) | 59 | — | (511 | ) | ||||||||||||||||
Adjusted net operating income | 781 | 191 | 916 | 444 | 15 | — | 2,347 | |||||||||||||||||||||
Net cost of net debt | (202 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (75 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 2,070 | |||||||||||||||||||||||||||
Adjusted fully-diluted earnings per share ($) | 0.84 |
(a) Except for earnings per share.
3rd quarter 2016 (M$) | Exploration & Production | Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
Total expenditures | 3,484 | 1,097 | 554 | 243 | (177 | ) | — | 5,201 | ||||||||||||||||||||
Total divestments | 105 | 33 | 21 | 29 | 4 | — | 192 | |||||||||||||||||||||
Cash flow from operating activities | 2,275 | 24 | 1,697 | 573 | 171 | — | 4,740 |
46 |
9) Reconciliation of the information by business segment with consolidated financial statements
9 months 2017 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 124,183 | (41 | ) | 124,142 | ||||||||
Excise taxes | (16,485 | ) | — | (16,485 | ) | |||||||
Revenues from sales | 107,698 | (41 | ) | 107,657 | ||||||||
Purchases net of inventory variation | (71,514 | ) | (238 | ) | (71,752 | ) | ||||||
Other operating expenses | (18,057 | ) | (323 | ) | (18,380 | ) | ||||||
Exploration costs | (577 | ) | — | (577 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,411 | ) | (2,001 | ) | (10,412 | ) | ||||||
Other income | 552 | 2,747 | 3,299 | |||||||||
Other expense | (181 | ) | (283 | ) | (464 | ) | ||||||
Financial interest on debt | (1,023 | ) | (21 | ) | (1,044 | ) | ||||||
Financial income and expense from cash & cash equivalents | (93 | ) | — | (93 | ) | |||||||
Cost of net debt | (1,116 | ) | (21 | ) | (1,137 | ) | ||||||
Other financial income | 717 | — | 717 | |||||||||
Other financial expense | (483 | ) | — | (483 | ) | |||||||
Equity in net income (loss) of affiliates | 1,843 | (485 | ) | 1,358 | ||||||||
Income taxes | (2,671 | ) | 414 | (2,257 | ) | |||||||
Consolidated net income | 7,800 | (231 | ) | 7,569 | ||||||||
Group share | 7,706 | (96 | ) | 7,610 | ||||||||
Non-controlling interests | 94 | (135 | ) | (41 | ) |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
9 months 2016 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 107,716 | (248 | ) | 107,468 | ||||||||
Excise taxes | (16,410 | ) | — | (16,410 | ) | |||||||
Revenues from sales | 91,306 | (248 | ) | 91,058 | ||||||||
Purchases net of inventory variation | (59,663 | ) | 253 | (59,410 | ) | |||||||
Other operating expenses | (17,128 | ) | (383 | ) | (17,511 | ) | ||||||
Exploration costs | (654 | ) | (350 | ) | (1,004 | ) | ||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,384 | ) | (200 | ) | (8,584 | ) | ||||||
Other income | 627 | 335 | 962 | |||||||||
Other expense | (274 | ) | (280 | ) | (554 | ) | ||||||
Financial interest on debt | (792 | ) | (17 | ) | (809 | ) | ||||||
Financial income and expense from cash & cash equivalents | 6 | — | 6 | |||||||||
Cost of net debt | (786 | ) | (17 | ) | (803 | ) | ||||||
Other financial income | 768 | — | 768 | |||||||||
Other financial expense | (475 | ) | — | (475 | ) | |||||||
Equity in net income (loss) of affiliates | 1,811 | (6 | ) | 1,805 | ||||||||
Income taxes | (1,145 | ) | 612 | (533 | ) | |||||||
Consolidated net income | 6,003 | (284 | ) | 5,719 | ||||||||
Group share | 5,880 | (232 | ) | 5,648 | ||||||||
Non-controlling interests | 123 | (52 | ) | 71 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
47 |
3rd quarter 2017 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 43,058 | (14 | ) | 43,044 | ||||||||
Excise taxes | (5,962 | ) | — | (5,962 | ) | |||||||
Revenues from sales | 37,096 | (14 | ) | 37,082 | ||||||||
Purchases net of inventory variation | (24,585 | ) | 218 | (24,367 | ) | |||||||
Other operating expenses | (6,073 | ) | (35 | ) | (6,108 | ) | ||||||
Exploration costs | (181 | ) | — | (181 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,978 | ) | (57 | ) | (3,035 | ) | ||||||
Other income | 238 | 166 | 404 | |||||||||
Other expense | (65 | ) | (2 | ) | (67 | ) | ||||||
Financial interest on debt | (361 | ) | (7 | ) | (368 | ) | ||||||
Financial income and expense from cash & cash equivalents | (45 | ) | — | (45 | ) | |||||||
Cost of net debt | (406 | ) | (7 | ) | (413 | ) | ||||||
Other financial income | 204 | — | 204 | |||||||||
Other financial expense | (164 | ) | — | (164 | ) | |||||||
Equity in net income (loss) of affiliates | 674 | (174 | ) | 500 | ||||||||
Income taxes | (1,032 | ) | (60 | ) | (1,092 | ) | ||||||
Consolidated net income | 2,728 | 35 | 2,763 | |||||||||
Group share | 2,674 | 50 | 2,724 | |||||||||
Non-controlling interests | 54 | (15 | ) | 39 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
3rd quarter 2016 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
Sales | 37,528 | (116 | ) | 37,412 | ||||||||
Excise taxes | (5,587 | ) | — | (5,587 | ) | |||||||
Revenues from sales | 31,941 | (116 | ) | 31,825 | ||||||||
Purchases net of inventory variation | (21,176 | ) | (47 | ) | (21,223 | ) | ||||||
Other operating expenses | (5,452 | ) | (17 | ) | (5,469 | ) | ||||||
Exploration costs | (274 | ) | — | (274 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,936 | ) | — | (2,936 | ) | |||||||
Other income | 284 | 6 | 290 | |||||||||
Other expense | (155 | ) | (196 | ) | (351 | ) | ||||||
Financial interest on debt | (262 | ) | (6 | ) | (268 | ) | ||||||
Financial income and expense from cash & cash equivalents | (5 | ) | — | (5 | ) | |||||||
Cost of net debt | (267 | ) | (6 | ) | (273 | ) | ||||||
Other financial income | 265 | — | 265 | |||||||||
Other financial expense | (154 | ) | — | (154 | ) | |||||||
Equity in net income (loss) of affiliates | 515 | 16 | 531 | |||||||||
Income taxes | (446 | ) | 195 | (251 | ) | |||||||
Consolidated net income | 2,145 | (165 | ) | 1,980 | ||||||||
Group share | 2,070 | (116 | ) | 1,954 | ||||||||
Non-controlling interests | 75 | (49 | ) | 26 |
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
48 |
10) Post-closing and other events
On October 6, 2017 the French Constitutional Council declared unconstitutional the 3% additional contribution to income tax in France on distributed amounts.
The Group will draw the accounting consequences of this decision in the fourth quarter of 2017.
49 |
Exhibit 99.2
RECENT DEVELOPMENTS
TOTAL announces its 2017 third interim dividend
The Board of Directors of TOTAL S.A. met on October 26, 2017, and approved a 2017 third interim dividend of €0.62 per share. This interim dividend, unchanged compared to the proposed 2017 first and second interim dividends, is payable in euro according to the following timetable:
• | ex-dividend date: March 19, 2018; | |
• | record date: March 16, 2018; and | |
• | payment date in cash or shares issued in lieu of cash: April 9, 2018. |
The Board of Directors will meet on March 14, 2018, to:
• | declare the 2017 third interim dividend; | |
• | offer, under the conditions set by the fourth resolution of the Combined Shareholders’ Meeting of May 26, 2017, the option for shareholders to receive the 2017 third interim dividend in cash or in new shares of the Company; | |
• | set the issuance price of the new shares with a discount between 0% and 10% based on the average opening price on the Euronext Paris for the 20 trading days preceding the Board of Directors’ meeting, and reduced by the amount of the 2017 third interim dividend; | |
• | set the period for shareholders to elect to receive the payment in new shares from March 19, 2018 to March 28, 2018, both dates inclusive; and | |
• | authorize the payment of the dividend in cash or the delivery of shares issued in lieu of the dividend in cash on April 9, 2018. |
Holders of TOTAL’s American Depositary Receipts (“ADRs”) will receive the 2017 third interim dividend in dollars based on the then-prevailing exchange rate according to the following timetable:
• | ADR ex-dividend date: March 15, 2018; | |
• | ADR record date: March 16, 2018; and | |
• | ADR payment date in cash or shares issued in lieu of cash: April 16, 2018. |
Registered ADR holders may also contact JP Morgan Chase Bank for additional information. Non-registered ADR holders should contact their broker, financial intermediary, bank or financial institution for additional information.
TOTAL enters the petroleum product retail sector in Mexico
On October 12, 2017, TOTAL S.A. (together with its subsidiaries and affiliates, “TOTAL” or the “Group”) announced that it had entered into an agreement with GASORED, a group of service station owners, to rebrand a network of around 250 service stations in and around Mexico City under the TOTAL brand.
Present in Mexico since 1982, TOTAL is aiming to capitalize on the deregulation of the country’s fuel sales and supply market to significantly expand its activities there.
The first TOTAL-branded stations will open by the end of the year, with deployment continuing in 2018 and 2019. The TOTAL-branded outlets will offer consumers and business customers the company’s full lineup of fuels and lubricants, as well as a broad range of products and services.
France: Total Solar and SunPower successful in solar rounds
On October 12, 2017, TOTAL announced that it continues to actively help drive the growth of solar power in France through a strong industrial commitment via its affiliates Total Solar, which develops projects, and SunPower, which supplies solar panels.
On the occasion of the second call for tenders for buildings and small carports, Total Solar, in partnership with the Groupe Carré, was awarded 70 projects totaling the capacity of more than 32 megawatts, or 22% of the allocated capacity.
SunPower will provide more than 500 megawatts of its SunPower® E-Series and X-Series solar panels for the 2017 winning various calls for tenders.
1 |
Results of the option to receive the 2017 first interim dividend in shares
The Board of Directors of TOTAL met on September 20, 2017, and declared a 2017 first interim dividend of €0.62 per share and offered, under the conditions set by the fourth resolution at the Combined Shareholders’ Meeting of May 26, 2017, the option for shareholders to receive the 2017 first interim dividend in cash or in new shares of the Company.
The period for exercising the option ran from September 25, 2017 to October 4, 2017. At the end of the option period, 68.5% of rights were exercised in favor of receiving the payment for the 2017 first interim dividend in shares.
25,633,559 new shares were issued, representing 1.0% of the Company’s share capital on the basis of the share capital of September 30, 2017. The share price for the new shares issued as payment of the 2017 first interim dividend was set at €41.12 on September 20, 2017. The price was equal to the average opening price on Euronext Paris for the twenty trading days preceding the meeting of the Board of Directors on September 20, 2017, reduced by the amount of the 2017 first interim dividend, with a 5% discount.
The settlement and delivery of the new shares as well as their admission to trading on Euronext Paris occurred on October 12, 2017. The shares carried dividend rights immediately and were fully assimilated with existing shares already listed.
The remaining cash dividend paid to shareholders who did not elect to receive the 2017 first interim dividend in shares amounted to €487 million and was paid on October 12, 2017.
Guinea: TOTAL reinforces its exploration in West Africa
On October 9, 2017, TOTAL and the National Office of Petroleum of Guinea (ONAP) announced the signature of a Technical Evaluation Agreement to study deep and ultra-deep offshore areas located off the coast of Guinea Conakry, covering approximately 55,000 square kilometers.
According to the terms of this agreement, TOTAL will have a year to assess the potential of the basin on the basis of existing data. At the end of this period, the Group will select three licenses to start an exploration program. As part of the agreement, TOTAL will also train ONAP staff to develop their technical skills in exploration and production.
TOTAL targets French residential market with natural gas and green power 10% cheaper than regulated tariffs
On October 5, 2017, TOTAL announced that it is expanding in the residential gas and power distribution market in France with the introduction of Total Spring, a natural gas and green power offering that is 10% cheaper than regulated tariffs.
Total Spring answers the needs of French consumers who want to reduce their energy bills and to access premium customer service. Total Spring leverages the TOTAL brand’s reputation for quality service, its reliability and the Group’s ambition to grow its power production from natural gas and renewable energies (solar, wind).
Statoil, Shell and TOTAL enter CO2 storage partnership
On October 2, 2017, the partners announced the signing of a partnership agreement to mature the development of carbon storage on the Norwegian continental shelf (NCS). The project is part of the Norwegian authorities’ efforts to develop full-scale carbon capture and storage in Norway.
In June, Gassnova awarded Statoil the contract for the first phase of the project. Norske Shell and Total E&P Norge are now entering as equal partners while Statoil will lead the project. All the partners will contribute people, experience and financial support.
2 |
The first phase of this CO2 project could reach a capacity of approximately 1.5 million tons per year. The project will be designed to accommodate additional CO2 volumes aiming to stimulate new commercial carbon capture projects in Norway, Europe and more globally across the world. In this way, the project has the potential to be the first storage project site in the world receiving CO2 from industrial sources in several countries.
The storage project will store CO2 captured from onshore industrial facilities in Eastern Norway. This CO2 will be transported by ship from the capture facilities to a receiving terminal located onshore on the west coast of Norway. At the receiving terminal, CO2 will be transferred from the ship to intermediate storage tanks, prior to being sent through a pipeline on the seabed to injection wells east of the Troll field on the NCS. There are three possible locations for the receiving terminal; a final selection will be made later this year.
The objective for the project, which is supported by Gassnova and other relevant governmental stakeholders, is to stimulate necessary development of CCS so the long-term climate targets in Norway and the EU can be reached. The collaboration will form the basis for establishing a further partnership for the construction and operational phases.
TOTAL signs agreement with Chevron on exploration in deepwater Gulf of Mexico
On September 22, 2017, TOTAL announced that its subsidiary, TOTAL E&P USA, INC. (“Total E&P USA”), has entered into an agreement to capture 7 prospects operated by CHEVRON U.S.A. INC. (“Chevron”) in the deepwater Gulf of Mexico (“GoM”). The agreement covers 16 blocks.
The associated prospects are located in two promising plays and areas of the GoM: Wilcox in Central GoM next to the Anchor discovery, and Norphlet in Eastern GoM nearby to the Appomattox discovery. Total E&P USA’s participation in these wells will be between 25% and 40%.The first of these wells was spudded late July 2017 on the Ballymore prospect in Mississippi Canyon.
TOTAL expands its energy efficiency business with the acquisition of GreenFlex
On September 19, 2017, TOTAL announced that it is to acquire GreenFlex, a French company specialized in energy efficiency.
Founded in 2009, GreenFlex is one of the European leaders in its sector, with more than 600 clients. The company is forecasting revenues of more than €350 million in 2017 and employs 230 people. GreenFlex combines data intelligence and equipment management and financing to help clients manage their energy consumption efficiently.
The acquisition will accelerate the expansion of TOTAL’s energy efficiency offering, over and above the growth of its affiliates BHC Energy in France and Tenag in Germany. TOTAL intends to offer its customers integrated solutions, from optimization of energy needs and sources and finding financing solutions to energy management and emissions measurement and reduction.
The transaction is expected to close in the fourth quarter of 2017, once it has been approved by the relevant regulatory authorities.
TOTAL partners with EREN Renewable Energy to expand its renewable business
On September 19, 2017, TOTAL announced the signature of an agreement with EREN Renewable Energy (“EREN RE”) to accelerate its growth in the production of power from renewable sources. TOTAL will acquire an indirect interest of 23% in EREN RE by subscribing to a capital increase for an amount of €237.5 million. The agreement also gives TOTAL the possibility to take over control of EREN RE after a period of 5 years.
Founded in 2012, EREN RE has developed a diversified asset base (notably wind, solar and hydro) representing a global installed gross capacity of 650 MW in operation or under construction. Its ambition is to achieve a global installed capacity of more than 3 GW within 5 years. The capital increase
3 |
subscribed by TOTAL will enable EREN RE to cover its financing needs to accelerate its development in the coming years.
The completion of this transaction remains subject to the approval of the relevant competition authorities.
TOTAL's stake in EREN RE complements the Group’s portfolio of renewable energy businesses. In particular, EREN RE, which will be renamed Total Eren upon completion of the transaction, will allow TOTAL to enter the wind power generation segment. Development of EREN RE's solar farm business will be mainly focused on emerging countries where the demand for electricity is growing.
TOTAL has been active in solar energy since 2011 as the majority shareholder in SunPower. In 2017, the Group also set up its own affiliate, Total Solar, in order to develop solar power plants in developed countries and distributed solar systems for industrial and commercial customers (B2B). SunPower, which manufactures and markets the world’s most efficient photovoltaic solar panels, worldwide, will focus its development activities on distributed generation in the B2C and B2B markets in the United States.
TOTAL divests its remaining 15% interest in Gina Krog field in Norway to KUFPEC
On September 4, 2017, TOTAL announced that it had signed an agreement to divest its remaining 15% interest in the Gina Krog field in Norway to Kuwait Foreign Petroleum Exploration Company (KUFPEC). This agreement builds on the 2016 transaction between TOTAL and KUFPEC concerning Norwegian North Sea assets, which included a 15% interest in Gina Krog. The overall consideration for both deals will total $617 million.
Upon completion of the sale, TOTAL will no longer have an interest in the Gina Krog field, while KUFPEC will have a 30% stake alongside Statoil (58.7%, operator), PGNiG Upstream International (8%) and Aker BP (3.3%). The Gina Krog oil and gas field started production in June 2017.
UK: TOTAL starts-up production of the Edradour & Glenlivet fields in the West of Shetland
On August 30, 2017, TOTAL announced the start-up of production from the Edradour & Glenlivet gas and condensate fields, located in about 300 to 435 meters of water in the West of Shetland area, close to the Laggan-Tormore fields that came on stream in February 2016. The Edradour and Glenlivet development will bring additional production capacity of up to 56,000 barrels of oil equivalent a day (boe/d).
The Edradour and Glenlivet development consists of a 35 kilometer tie-back of three subsea wells to the existing Laggan-Tormore production system, which include the 143 kilometer pipeline and the onshore Shetland Gas Plant. Following treatment at the gas plant, the gas is exported to the UK mainland via the Shetland Island Regional Gas Export System (SIRGE) and FUKA pipeline, and will serve the UK domestic market. The condensates are exported via the Sullom Voe Terminal.
Total E&P UK operates Edradour & Glenlivet with a 60% interest alongside partners DONG E&P (UK) Limited (20%) and SSE E&P UK Limited (20%).
TOTAL acquires Maersk Oil for $7.45 billion in a share and debt transaction
On August 21, 2017, TOTAL announced that the Boards of TOTAL and A.P. Møller – Mærsk have both approved the acquisition of 100% of the equity of the E&P company Maersk Oil & Gas A/S (Maersk Oil), a wholly-owned subsidiary of A.P. Møller – Mærsk A/S, by TOTAL in a share and debt transaction.
Under the agreed terms, A.P. Møller – Maersk will receive consideration of $4.95 billion in TOTAL shares and TOTAL will assume $2.5 billion of Maersk Oil’s debt. TOTAL will issue to A.P. Møller – Maersk A/S, 97.5 million shares, based on the average TOTAL share price on the 20 business days prior to August 21 (signing date), which will represent 3.75% of the enlarged share capital of TOTAL. Underpinning this share-based partnership, subject to TOTAL shareholders’ approval, TOTAL has also offered the possibility of a seat on its Board of Directors to A.P. Møller Holding A/S, main shareholder of A.P. Møller – Mærsk.
4 |
The proposed transaction is subject to the applicable legally required consultation and notification processes for employee representatives and to approvals by the relevant regulatory authorities. The transaction is expected to close in the first quarter of 2018 and has an effective date of July 1, 2017.
The combination with Maersk Oil offers TOTAL an exceptional overlap of upstream businesses globally which will enhance TOTAL’s competitiveness and value in many core areas, in particular through some high quality growing assets and through the delivery of synergies. Specifically the transaction will bring the following benefits to TOTAL:
• | significant OECD reserves, contributing to TOTAL’s continuous balancing of country risks of its portfolio to enhance shareholder value; | |
• | the addition of 160 kboe/d of mainly liquids production in 2018, acquired at an average price of $46 k/boepd, offering high margins with an estimated free cash flow break-even of less than $30/b and growing to more than 200 kboe/d by the early 2020’s further strengthening TOTAL’s leading production growth outlook; | |
• | TOTAL expects to generate operational, commercial and financial synergies of more than $400 million per year, in particular by the combination of assets of TOTAL and Maersk Oil in North Sea, an area of excellence for both companies; and | |
• | the transaction is immediately accretive to both earnings and cash flow per share underpinning TOTAL’s dividend profile. |
At the closing of the transaction, in order that TOTAL’s shareholders benefit from the accretive impact of the acquisition of Maersk Oil on earnings and cash flow, the Board of Directors of TOTAL will consider removing the discount offered on the scrip dividend.
Key Themes of Transaction
Acquisition transforms TOTAL’s North West Europe outlook.
• | This transaction will make TOTAL the second largest operator in the NW Europe offshore region, which is the 7th largest oil and gas producing region globally. Post completion, TOTAL will operate over 500 kboe/d (gross) production in this region. | |
• | The transaction strengthens TOTAL’s existing North Sea offshore producing business in the UK and Norway. The addition of Maersk Oil’s world class assets, including the operated UK gas field Culzean (49.99% Working Interest), close to the Elgin-Franklin hub operated by TOTAL, and its stake in the giant Johan Sverdrup oil development (8.44% Working Interest) in Norway, will bolster TOTAL’s production profile in these countries. | |
• | The transaction adds a new production hub with Maersk Oil’s operatorship and 31.2% ownership of the DUC producing assets in Denmark with net production in 2018 estimated at around 60 kboe/d. Maersk Oil has been the leading operator in Denmark for almost 50 years. The pooling of TOTAL’s and Maersk Oil’s technology and operating expertise will optimize the long-term value potential of the DUC assets to the benefit of Denmark and TOTAL shareholders. |
The transaction also will strengthen other core TOTAL regional businesses due to clear complementary positions between TOTAL and Maersk Oil, including:
• | consolidating TOTAL’s US Gulf of Mexico presence with the Maersk Oil interest in the Jack development in the Wilcox formation; | |
• | becoming the second largest IOC in Algeria by production; | |
• | complementing TOTAL’s leading East Africa position via Maersk Oil’s Kenya assets; | |
• | strengthening of TOTAL’s Kazakh business via addition of operated production; | |
• | benefiting of potential upsides in Angola and Brazil; and | |
• | pooling of TOTAL and Maersk Oil’s geological and operational expertise in the Middle East - North Africa Region. |
5 |
6 |
Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
The following table shows the ratios of earnings to fixed charges for TOTAL S.A. and its subsidiaries and affiliates (collectively, “TOTAL” or the “Group”), computed based on information used in the preparation of our consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and as adopted by the European Union, for the nine months ended September 30, 2017 and 2016 and the fiscal years ended December 31, 2016, 2015, 2014, 2013 and 2012.
Nine Months Ended September 30, |
Years Ended December 31, | |||||||||||||
2017 | 2016 | 2016 | 2015 | 2014 | 2013(a) | 2012(b) | ||||||||
For the Group (IFRS) | 7.45 | 5.26 | 4.53 | 4.76 | 10.91 | 19.57 | 24.35 |
(a) | Figures for 2013 have been restated pursuant to the retrospective application of the accounting interpretation IFRIC 21 from January 1, 2014. | |
(b) | Figures for 2012 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013. |
Earnings for the computations above under IFRS were calculated by adding pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, fixed charges and distributed income of equity investees. Fixed charges for the computations above consist of interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense and that portion of rental expense representative of the interest factor.
1 |
CAPITALIZATION AND INDEBTEDNESS OF TOTAL
(unaudited)
The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of the Group as of September 30, 2017, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (“dollars” or “$”) or in euros (“euros” or “ € ”).
At September 30, 2017 | ||||
(in millions of dollars) | ||||
Current financial debt, including current portion of non-current financial debt | ||||
Current portion of non-current financial debt | 4,513 | |||
Current financial debt | 6,693 | |||
Current portion of financial instruments for interest rate swaps liabilities | 105 | |||
Other current financial instruments — liabilities | 168 | |||
Financial liabilities directly associated with assets held for sale | — | |||
Total current financial debt | 11,479 | |||
Non-current financial debt | 40,226 | |||
Non-controlling interests | 2,799 | |||
Shareholders’ equity | ||||
Common shares | 7,806 | |||
Paid-in surplus and retained earnings | 111,128 | |||
Currency translation adjustment | (8,675 | ) | ||
Treasury shares | (458 | ) | ||
Total shareholders’ equity — Group share | 109,801 | |||
Total capitalization and non-current indebtedness | 152,826 |
As of September 30, 2017, TOTAL S.A. had an authorized share capital of 3,408,205,161 ordinary shares with a par value of €2.50 per share, and an issued share capital of 2,502,754,234 ordinary shares (including 8,378,106 treasury shares from shareholders’ equity).
As of September 30, 2017, approximately $837 million of the Group’s non-current financial debt was secured and approximately $39,389 million was unsecured, and all of the Group’s current financial debt of $6,693 million was unsecured. As of September 30, 2017, TOTAL had no outstanding guarantees from third parties relating to its consolidated indebtedness. Since September 30, 2017, Total Capital International, a wholly-owned Group affiliate, has issued non-current financial debt of €1.5 billion (or approximately $1.8 billion using the €/$ exchange rate on October 20, 2017 of €1 = $1.1770 as released by the Board of Governors of the Federal Reserve System on October 23, 2017), with €0.5 billion of that debt maturing in 7 years and €1.0 billion maturing in 12 years. For more information about TOTAL’s commitments and contingencies, see Note 13 of the Notes to TOTAL’s audited Consolidated Financial Statements in its Annual Report on Form 20-F for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 17, 2017.
Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since September 30, 2017.
2 |
Exhibit 99.4
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||||||
(Amounts in millions of dollars) | 2017 | 2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net income(a) | 7,610 | 5,648 | 6,196 | 5,087 | 4,244 | 11,228 | 13,648 | |||||||||||||||||||||
Income tax expenses(a) | 2,257 | 533 | 970 | 1,653 | 8,614 | 14,767 | 16,747 | |||||||||||||||||||||
Non-controlling interests | (41 | ) | 71 | 10 | (301 | ) | 6 | 293 | 188 | |||||||||||||||||||
Equity in income of affiliates (in excess of)/less than dividends received | 96 | (708 | ) | (643 | ) | (311 | ) | 29 | (775 | ) | 272 | |||||||||||||||||
Interest expensed | 750 | 511 | 734 | 742 | 536 | 656 | 649 | |||||||||||||||||||||
Estimate of the interest within rental expense | 407 | 358 | 543 | 477 | 406 | 357 | 334 | |||||||||||||||||||||
Amortization of capitalized interest | 158 | 129 | 161 | 174 | 160 | 135 | 205 | |||||||||||||||||||||
Total(a) | 11,237 | 6,542 | 7,971 | 7,521 | 13,995 | 26,661 | 32,043 | |||||||||||||||||||||
Interest expensed | 750 | 511 | 734 | 742 | 536 | 656 | 649 | |||||||||||||||||||||
Capitalized interest | 352 | 375 | 481 | 362 | 341 | 349 | 333 | |||||||||||||||||||||
Estimate of the interest within rental expense | 407 | 358 | 543 | 477 | 406 | 357 | 334 | |||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | — | — | — | — | — | — | — | |||||||||||||||||||||
Fixed charges | 1,509 | 1,244 | 1,758 | 1,581 | 1,283 | 1,362 | 1,316 | |||||||||||||||||||||
Ratio of earnings to fixed charges(a) | 7.45 | 5.26 | 4.53 | 4.76 | 10.91 | 19.57 | 24.35 |
(a) | Figures for 2013 have been restated pursuant to the retrospective application of the accounting interpretation IFRIC 21 from January 1, 2014, and figures for 2012 have been restated pursuant to the retrospective application of the revised accounting standard IAS 19 from January 1, 2013. |
[_,>\ 5WOF/F/W3VVT]S-Q:?;PBZ2D<*-H\&,L1].%J0U,
M-2M*"GQ=.^V\%A_5%]^Y4Y;\"_[@1X[/4AJ'^U[1VCB%SQX]$6_F?_-3YOP_
M&7-](_/W^6IU<]=FUWO1;4^4NU=P93 ;_FTD^Z_*
M6YZF[;W
MMKUC5!3XL 0",&C!"*Z2::?,CB*]&)^,7\R7H?Y.]D?S/_AM\Z.^^N*KI3?7
M;'<;='=B[WW[L39W7N4Z4;,_W#Q.Q=B;L7^[NUU_NGA=NX3)X,C*-6YLFKRM
M^#[ '-?M[=\K\M $S>9SF%.%SP95_A64_AONO=-W0_RX^/WR0:A
M_P!"_9/]\J?-;5?>^ULK/M/>.U<+O?:#+M'^\.X>M\UN7:6VML]E#86?W5CL
M7OC^!-F3L?<]>,3GOX7E/]QA]U[HWOOW7NO>_=>Z][]U[I"[P_Y=_P#P;_BO
MOW7ND'B]B]:T^^J3M.3:.S?]*@V2-A#LK^ X9M]GKY Z*WXN) )_"@XD_@
M^P=0SSE8+:W5%!TJ2!6O"OS)/[>E_P"Y!V3_ ';[,]Z/XB!_O5/Z/^#H.3T%
MDOI3_*.DGG,'LU9!O+.X';DN4P5.,@-QY"CQ'\3Q! ^G]XQ8*+#^GL$T GXQJX#A0Q9[']
4/_ +,9#;W
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M'_GC]R?^>C,^_=>Z]_>/\ SQ^Y/_/1F??NO=>_N/O'_GC]R?\ GHS/OW7N
MO?W'WC_SQ^Y/_/1F??NO=.53@]_U-'1T-7MK
Q_-44>9S62R7W7_*91?=_P"Q_'/OW7NO?WPR$F_,#@J _9TM
M'F\3CJS_ *NW^^'OW7NC8>_=>Z][]U[KWOW7NB2X+Y!=D[]WTU7U1TWC=[]#
M[=['S73^[^S)^UQM_LU]X[$W[G.N.ULSL;J/<6RCM76G478F&JL9G_=>Z][]U[I9;;W944%91',Y+V_?E?MG?F^<)O^/O[Y.YM=I[NVWU;@L6F*;=!97P
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MW+;^)+@_X'A6&*&)I
^]I4]9T=4]8_'W
MY0?$;HG,==XZESF4[^W5C/F?B/C=MS;N^\P])GDVMUIM_8G8W=^3R:Y)L9G!
MO=:"KQ87;_\ "FRN5]U[H3?FWFNP'KOM*_,P_P"2X?\ W(?[:_U^O]/?NO= ]/1Y#L;*??TOVV-Q='_N/_U[
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MFWU(_P />"7WTO
XCM?<>3QVJ^O^#5U7S8D'W7
MNE'_ *>-X_\ *GMO_P ]69_^R'W[KW28VMV15;'P6"VELW:VP]M[7VMA:? ;
M;VYM?&R8O&8G&85O[N[Y*>GQ>'QM+0?\ 6LOD*P9"D_W*?Q3\?C_ !]F7372
M/IZ>HKZFCI:7_@56?\3_ +W[]U[I5?PNGEQ]'AJ7,8VLRE'DO\CH_N[D_P!/
MZ>_=>Z2M9C\C05'VM?#4T=5];