Second Quarter and First Half 2015 Results123

PARIS--()--

Total: Second Quarter and First Half 2015 Results123

    2Q15   Change

vs 2Q14

  1H15   Change

vs 1H14

       
Adjusted net income1
- in billions of dollars (B$) 3,1 -2% 5,7 -12%
- in dollars per share 1,34 -3% 2,47 -13%
                 
 
Net income2 of 3.0 B$ in 2Q15
Net-debt-to-equity ratio of 25.9% at June 30, 2015
Hydrocarbon production of 2,299 kboe/d in the second quarter 2015
2Q15 interim dividend of 0.61 €/share payable in January 20163

Total’s (Paris:FP) (LSE:TTA) (NYSE:TOT) Board of Directors, under the chairmanship of Thierry Desmarest, met on July 28, 2015, to review the Group’s second quarter accounts. Commenting on the results, CEO Patrick Pouyanné said:

“Oil prices recovered slightly in the second quarter to about $60/b but remain more than 40% lower than a year ago. Despite the sharply lower oil price, Total reported adjusted net income of $3.1 billion, a decrease of only 2% compared to the same period last year, thanks to productivity gains in all the business segments.
In the Upstream, the Group started up its fourth major project this year with first production from Termokarstovoye in Russia. The 12% increase in production over the past year demonstrates that our growth strategy is working, in spite of the shutdown of Yemen LNG for security reasons. The excellent Downstream results highlight the resilience of our integrated model. The Refining & Chemicals and Marketing & Services segments are fully benefiting from higher refining, petrochemical and marketing margins that are sustained by stronger demand in the context of lower prices. In European refining, Total is committed to the conversion project at La Mède and the restructuring of Donges in France, reducing the capacity of Lindsey in the United Kingdom and the sale of Schwedt in Germany.
In addition, Total is implementing plans to reduce its cash breakeven. The Group expects to exceed its 2015 objective to cut operating costs by $1.2 billion in 2015 and confirms the announced reduction of 2015 Capex to $23-24 billion.
Finally, despite the weak economic conditions, Total strengthened its balance sheet during the first half of the year by reducing its gearing from 31% to 26%.”

Key figures4

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  In millions of dollars, except effective tax rate,

earnings per share and number of shares

  1H15   1H14   1H15

vs

1H14

44,715   42,313   62,561   -29%   Sales   87,028   123,248   -29%
4,064   3,311   5,583   -27%   Adjusted operating income from business segments*   7,375   11,765   -37%
3,334   2,780   3,824   -13%   Adjusted net operating income from business segments   6,114   7,523   -19%
1,560   1,359   3,051   -49%   Upstream   2,919   6,143   -52%
1,349 1,100 401 x3 Refining & Chemicals 2,449 747 x3
425   321   372   +14%   Marketing & Services   746   633   +18%
677   634   883   -23%   Contribution of equity affiliates to adjusted net income   1,311   1,713   -23%
39.6%   38.5%   55.1%       Group effective tax rate5*   39.1%   56.5%    
3,085   2,602   3,151   -2%   Adjusted net income   5,687   6,478   -12%
1.34   1.13   1.38   -3%   Adjusted fully-diluted earnings per share (dollars)   2.47   2.84   -13%
1.21   1.00   1.00   +21%   Adjusted fully-diluted earnings per share (euros)**   2.21   2.07   +7%
2,292   2,285   2,281   -   Fully-diluted weighted-average shares (millions)   2,289   2,279   -
                             
2,971   2,663   3,104   -4%   Net income (Group share)   5,634   6,439   -13%
                             
6,590   8,809   8,723   -24%   Investments6   15,399   14,588   +6%
1,893   2,984   631   x3   Divestments   4,877   2,471   x2
4,616   5,825   7,966   -42%   Net investments7   10,441   11,991   -13%
4,732   4,387   5,277   -10%   Cash flow from operations   9,119   10,615   -14%
5,317   4,635   5,931   -10%   Adjusted cash flow from operations   9,952   12,135   -18%

* During the second quarter of 2015, the Group revised the classification in the statement of income of certain taxes related to its participation in the ADCO concession, effective since January 1, 2015. These taxes are now accounted for as operating taxes and therefore reclassified for $498 million from “Income taxes” to “Purchases, net of inventory variation” in the first quarter of 2015. This reclassification affects the adjusted operating income from business segments and the effective income tax rate for the Group but has no impact on net income.
** Average €-$ exchange rate: 1.1053 in the second quarter 2015 and 1.1158 in the first half 2015.

Highlights since the beginning of the second quarter 20158

  • Started production on the Termokarstovoye gas field in Russia
  • Positive appraisal on the Elk-Antelope gas fields in Papua New Guinea
  • Achieved the production milestone of 2 billion barrels from Angola deep offshore Block 17 and first production from the Dalia Phase 1A project in Angola
  • Announced a plan for French refining: Total to modernize the Donges refinery and convert the La Mède refinery to a bio-refinery
  • Sale of interests in assets in the West of Shetland area of the United Kingdom
  • Sale of the interest in the Schwedt refinery in Germany
  • Started up the lubricants plant in Singapore

Analysis of business segments

Upstream

> Environment – liquids and gas price realizations*

2Q15   1Q15   2Q14   2Q15

vs

2Q14

      1H15   1H14   1H15

vs

1H14

61.9   53.9   109.7   -44%   Brent ($/b)   57.8   108.9   -47%
58.2   49.5   103.0   -44%   Average liquids price ($/b)   53.8   102.5   -48%
4.67   5.38   6.52   -28%   Average gas price ($/Mbtu)   5.03   6.80   -26%
45.4   41.8   73.1   -38%   Average hydrocarbon price ($/boe)   43.6   73.2   -40%

* Consolidated subsidiaries, excluding fixed margins.

> Production

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Hydrocarbon production   1H15   1H14   1H15

vs

1H14

2,299   2,395   2,054   +12%   Combined production (kboe/d)   2,347   2,116   +11%
1,215   1,240   984   +23%   Liquids (kb/d)   1,227   1,007   +22%
5,910   6,312   5,867   +1%   Gas (Mcf/d)   6,110   6,066   +1%

Hydrocarbon production was 2,299 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2015, an increase of 12% compared to the second quarter 2014, due to the following:

  • +5% for new project start ups, notably CLOV, West Franklin Phase 2 and Termokarstovoye;
  • +7% due to portfolio changes, mainly the addition of the new ADCO concession in the United Arab Emirates, partially offset by asset sales in the North Sea, Nigeria and Azerbaijan;
  • -4% due to the shutdown of production in Yemen;
  • +4% due to the price effect, better field performance and lower maintenance, offsetting natural decline.

In the first half 2015, hydrocarbon production was 2,347 kboe/d, an increase of 11% compared to the first half 2014, due to the following:

  • +4% for new project start ups;
  • +6% due to portfolio changes, noted in the second quarter explanation above;
  • -2% due to the shutdown of production in Yemen;
  • +3% due to the price effect and better field performance, offsetting natural decline.

> Results

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  In millions of dollars, except effective tax rate   1H15   1H14   1H15

vs

1H14

1,995   1,531   4,810   -59%   Adjusted operating income*   3,526   10,311   -66%
47.3%   48.6%   52.3%       Effective tax rate**   47.9%   56.3%    
1,560   1,359   3,051   -49%   Adjusted net operating income*   2,919   6,143   -52%
489   503   769   -36%   includes income from equity affiliates   992   1,502   -34%
                             
5,653   8,151   7,999   -29%   Investments   13,804   13,310   +4%
379   1,162   568   -33%   Divestments   1,541   2,367   -35%
2,713   3,525   4,805   -44%   Cash flow from operations   6,238   8,616   -28%
3,010   2,919   4,841   -38%   Adjusted cash flow from operations   5,929   9,974   -41%

* During the second quarter of 2015, the Group revised the classification in the statement of income of certain taxes related to its participation in the ADCO concession, effective since January 1, 2015. These taxes are now accounted for as operating taxes and therefore reclassified for $498 million from “Income taxes” to “Purchases, net of inventory variation” in the first quarter of 2015. This reclassification affects the adjusted operating income from business segments and the effective income tax rate for the Group but has no impact on net income.
** Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).

Adjusted net operating income from the Upstream segment was:

  • 1,560 M$ in the second quarter 2015, a decrease of 49% compared to the second quarter 2014, essentially due to the decrease in the average realized price of hydrocarbons, partially offset by an increase in production, a material decrease in operating costs, and a lower effective tax rate, notably in Nigeria and in Congo;
  • 2,919 M$ in the first half 2015, a decrease of 52% compared to the first half 2014, for the same reasons.

Refining & Chemicals

> Refinery throughput and utilization rates*

2Q15   1Q15   2Q14   2Q15

vs

2Q14

      1H15   1H14   1H15

vs

1H14

1,909   1,931   1,622   +18%   Total refinery throughput (kb/d)   1,920   1,662   +16%
613   737   634   -3%   France   675   626   +8%
875 795 695 +26% Rest of Europe 835 741 +13%
421   399   293   +44%   Rest of world   410   295   +39%
                Utlization rates**            
84% 87% 72% Based on crude only 85% 72%
87%   88%   74%       Based on crude and other feedstock   88%   76%    

* Includes share of TotalErg. Results for refineries in South Africa, the French Antilles and Italy are reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.

Refinery throughput:

  • increased by 18% in the second quarter 2015 compared to the second quarter 2014, due to the start up of SATORP and a lower level of maintenance in Europe. The good reliability of the sites enabled an increase in throughput to take advantage of attractive margins;
  • increased by 16% in the first half 2015 compared to the first half 2014 for the same reasons. Utilization rates were higher in an environment of favorable margins.

> Results

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  In millions of dollars

except the ERMI

  1H15   1H14   1H15

vs

1H14

54.1   47.1   10.9   x5   European refining margin indicator - ERMI ($/t)   50.6   8.7   x6
                             
1,604   1,335   368   x4   Adjusted operating income*   2,939   696   x4
1,349   1,100   401   x3   Adjusted net operating income*   2,449   747   x3
135   116   174   -22%   including Specialty Chemicals**   251   313   -20%
                             
465   434   475   -2%   Investments   899   725   +24%
874   1,766   15   na   Divestments   2,640   26   na
1,700   314   (133)   na   Cash flow from operations   2,014   1,460   +38%
1,566   1,380   683   x2   Adjusted cash flow from operations   2,946   1,300   x2

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Hutchinson and Atotech, Bostik until February 2015.

The European refining margin indicator (ERMI) averaged a high level of 54 $/t in the second quarter 2015, due to strong product demand, particularly gasoline, and significant maintenance activity, notably in Asia. Petrochemical margins were also higher, notably due to limited production capacity as a result of numerous shut downs in the industry.

Adjusted net operating income from the Refining & Chemicals segment was:

  • 1,349 M$ in the second quarter 2015, more than three times higher than in the second quarter 2014. The segment took full advantage of the higher refining and petrochemicals margins, mainly due to improved site availability and lower level of planned maintenance compared to last year;
  • 2,449 M$ for the first half 2015, in a more favorable environment, more than three times higher than the first half 2014, demonstrating the segment’s ability to capture attractive first half 2015 margins by increasing throughput one year after voluntarily reducing throughput in the face of a difficult 2014 environment.

Second quarter 2015 divestments included the refinancing of SATORP in Saudi Arabia. Following the successful start up of the refinery, one of the most competitive in the world, Total was able to refinance its shareholder loan under favorable conditions.

Marketing & Services

> Petroleum product sales

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Sales in kb/d*   1H15   1H14   1H15

vs

1H14

1,822   1,814   1,833   -1%   Total Marketing & Services sales   1,818   1742   +4%
1,079   1,103   1,102   -2%   Europe   1,091   1080   +1%
743   711   731   +2%   Rest of world   727   662   +10%

* Excludes trading and bulk refining sales, includes share of TotalErg.

Petroleum product sales were:

  • stable in the second quarter 2015 compared to the second quarter last year, benefiting from higher sales in growth markets;
  • 4% higher in the first half 2015 compared to the first half 2014, in a more favorable market than last year, which was affected by an unusually mild winter.

> Results

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  In millions of dollars   1H15   1H14   1H15

vs

1H14

20,419   19,620   28,213   -28%   Sales   40,039   54,683   -27%
465   445   405   +15%   Adjusted operating income*   910   758   +20%
425   321   372   +14%   Adjusted net operating income*   746   633   +18%
(45)   (42)   (8)   x6   including New Energies   (87)   20   na
                             
436   215   203   x2   Investments   651   479   +36%
627   52   28   na   Divestments   679   54   na
379   644   304   +25%   Cash flow from operations   1,023   393   x3
531   418   551   -4%   Adjusted cash flow from operations   949   930   +2%

* Detail of adjustment items shown in the business segment information annex to financial statements.

Adjusted net operating income from the Marketing & Services segment was:

  • 425 M$ in the second quarter 2015, an increase of 14% compared to the second quarter 2014, mainly due to higher margins;
  • 746 M$ in the first half 2015, an increase of 18% compared to the first half 2014.

Group results

> Net operating income from business segments

Adjusted net operating income from the business segments was:

  • 3,334 M$ in the second quarter 2015, a decrease of only 13% compared to the second quarter 2014, despite the 44% drop in the Brent price. The Upstream was affected by the lower Brent price, partially offset by a 12% increase in production and the effects of the Group’s cost reduction program. In addition, the Downstream reported excellent results, benefiting from higher margins;
  • 6,114 M$ in the first half 2015, a decrease of 19% compared to the first half 2014, despite the 47% drop in the Brent price. The Group fully benefited from its cost reduction program, the resilience of the Upstream and the remarkable performance of the Downstream.

The effective tax rate9 for the business segments was:

  • 37.5% in the second quarter 2015 compared to 48.8% in the second quarter 2014, reflecting mainly the strong Downstream results, which are taxed at a lower rate;
  • 37.4% in the first half 2015 compared to 52.5% in the first half 2014, for the same reason.

> Net income (Group share)

Adjusted net income was:

  • 3,085 M$ in the second quarter 2015 compared to 3,151 M$ in the second quarter 2014, a decrease of only 2% in an unfavorable environment;
  • 5,687 M$ in the first half 2015 compared to 6,478 M$ in the first half 2014, a decrease of 12% in an environment where the Brent price dropped by 47%.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value10.

Total adjustments affecting net income (Group share)11 were -114 M$ in the second quarter 2015 compared to -47 M$ in the second quarter 2014. In the first half 2015, total adjustments affecting net income (Group share) were -53 M$ compared to -39 M$ in the first half 2014.

The number of fully-diluted shares was 2,294 million on June 30, 2015, and 2,284 million on June 30, 2014.

> Divestments – acquisitions

Asset sales were:

  • 733 M$ in the second quarter 2015, comprised mainly of the sale of Totalgaz;
  • 3,472 M$ in the first half 2015, comprised mainly of the sales of Bostik, the Group’s interests in OML 18 and 29 in Nigeria and Totalgaz.

Acquisitions were:

  • 282 M$ in the second quarter 2015;
  • 2,777 M$ in the first half 2015, comprised mainly of the entry into the new ADCO concession in the United Arab Emirates and the carry on the Utica gas and condensate field in the United States.

> Cash flow

The Group’s net cash flow12 was:

  • 116 M$ in the second quarter 2015 compared to -2,689 M$ in the second quarter 2014. This increase was mainly due to a sharp decline in organic investments, including the refinancing of SATORP, and the resilience of the cash flow from operations in a lower Brent price environment, mainly due to the strong performance of the Downstream;
  • -1,322 M$ in the first half 2015 compared to -1,376 M$ in the first half 2014, an increase of 4%, showing good resistance to the 47% drop in the Brent price, mainly due to the resilience of the Upstream and the performance of the Downstream. The organic investments are in line with the objective of $23-24 billion for the year.

Total S.A., parent company accounts

The net income for the parent company, TOTAL S.A., was 3,438 M€ in the first half 2015 compared to 3,397 M€ in the first half 2014.

Summary and outlook

After having recovered slightly in the second quarter, oil prices have fallen by about 10% since the beginning of July. In this context, the Group is focused on delivering its new project start ups and implementing cost reductions to sustainably reduce its breakeven and maximize cash flow. The rapid implementation of this industrial response to the weaker environment has already begun to bear fruit in the first half of the year, and it will also underpin the Group’s success in the second half and beyond.

In the Upstream, the start-ups of Surmont Phase 2, GLNG and Laggan-Tormore are expected in the second half. Production is expected to increase by more than 8% this year despite the shutdown of Yemen LNG.

In the Downstream, market conditions remained favorable at the start of the third quarter. The increase in demand, notably for gasoline, is positive for refining, without, however, eliminating the overcapacity in the market. Our teams are continuing to reduce costs and adapt the sites, making them resistant to unfavorable environments.

Finally, after announcing the sale of interests in gas fields located in the West of Shetland area of the United Kingdom and in the Schwedt refinery in Germany for a combined amount of 1.2 billion dollars, Total is pursuing discussions for the sale of several other assets.

-- -- --

To listen to CFO Patrick de La Chevardière’s conference call with financial analysts today at 14:00 (London time) please log on to total.com or call +44 (0)203 427 1909 in Europe or +1 646 254 3388 in the United States (code 9806117). For a replay, please consult the website or call +44 (0)203 427 0598 in Europe or +1 347 366 9565 in the United States (code: 9806117).

Operating information by segment

Upstream

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Combined liquids and gas

production by region (kboe/d)

  1H15   1H14   1H15

vs

1H14

360   393   329   +9%   Europe   376   361   +4%
663 687 618 +7% Africa 675 637 +6%
477 540 380 +26% Middle East 508 393 +29%
107 98 91 +18% North America 103 86 +20%
156 155 157 -1% South America 155 158 -2%
251 261 238 +5% Asia-Pacific 256 240 +7%
285   261   241   +18%   CIS   274   241   +14%
2,299   2,395   2,054   +12%   Total production   2,347   2,116   +11%
547   573   544   +1%   includes equity affiliates   560   563   -1%
                             
2Q15   1Q15   2Q14   2Q15

vs

2Q14

 

Liquids production by region
(kb/d)

  1H15   1H14   1H15

vs

1H14

159 162 159 - Europe 160 165 -3%
530 551 482 +10% Africa 540 495 +9%
347 358 190 +83% Middle East 353 197 +79%
48 41 40 +20% North America 44 37 +19%
48 50 50 -4% South America 49 50 -2%
32 37 29 +10% Asia-Pacific 34 29 +17%
51   41   34   +50%   CIS   47   34   +38%
1,215   1,240   984   +23%   Total production   1,227   1,007   +22%
218   207   197   +11%   includes equity affiliates   213   202   +5%
                             
2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Gas production by region (Mcf/d)   1H15   1H14   1H15

vs

1H14

1,086   1,265   936   +16%   Europe   1,175   1,075   +9%
663 687 710 -7% Africa 675 729 -7%
720 999 1,042 -31% Middle East 859 1,073 -20%
332 315 285 +16% North America 323 276 +17%
602 589 601 - South America 596 605 -1%
1,258 1,298 1,188 +6% Asia-Pacific 1,278 1,194 +7%
1,249   1,159   1,105   +13%   CIS   1,204   1,114   +8%
5,910   6,312   5,867   +1%   Total production   6,110   6,066   +1%
1,764   1,963   1,895   -7%   includes equity affiliates   1,863   1,962   -5%
                             
2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Liquefied natural gas   1H15   1H14   1H15

vs

1H14

2.34   2.77   2.96   -21%   LNG sales* (Mt)   5.11   6.11   -16%

* Sales, Group share, excluding trading; 2014 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2014 SEC coefficient.

Downstream (Refining & Chemicals and Marketing & Services)

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  Petroleum product sales by region (kb/d)*   1H15   1H14   1H15

vs

1H14

2,100   2,056   2,017   +4%   Europe**   2,078   2,011   +3%
657 663 587 +12% Africa 660 531 +24%
625 581 643 -3% Americas 603 559 +8%
641   657   611   +5%   Rest of world   649   592   +10%
4,023   3,957   3,858   +4%   Total consolidated sales   3,990   3,693   +8%
632   628   576   +10%   Includes bulk sales   630   605   +4%
1,569   1,515   1,449   +8%   Includes trading   1,542   1,346   +15%

* Includes share of TotalErg.
** Restated historical amounts.

Adjustment items

> Adjustments to operating income

2Q15   1Q15   2Q14   In millions of dollars   1H15   1H14
(474)   (1,377)   (62)   Special items affecting operating income   (1,851)   (177)
-   -   -   Restructuring charges   -   -
(248) (1,046) (40) Impairments (1,294) (40)
(226)   (331)   (22)   Other   (557)   (137)
250   228   117   Pre-tax inventory effect: FIFO vs. replacement cost   478   (64)
(10)   4   (36)   Effect of changes in fair value   (6)   (10)
                     
(234)   (1,145)   19   Total adjustments affecting operating income   (1,379)   (251)

> Adjustment to net income (Group share)

2Q15   1Q15   2Q14   In millions of dollars   1H15   1H14
(282)   (95)   (98)   Special items affecting net income (Group share)   (377)   26
327   1,002   -   Gain (loss) on asset sales   1,329   599
- (31) (5) Restructuring charges (31) (5)
(245) (1,109) (76) Impairments (1,354) (426)
(364)   43   (17)   Other   (321)   (142)
174   154   80   After-tax inventory effect: FIFO vs. replacement cost   328   (57)
(6)   2   (29)   Effect of changes in fair value   (4)   (8)
                     
(114)   61   (47)   Total adjustments affecting net income   (53)   (39)

2015 Sensitivities*

 

               
    Scenario   Change  

Impact on
adjusted

operating
income

 

Impact on
adjusted

net operating
income

Dollar   1.30 $/€   -0.1 $ par €   +0.7 B$   +0.2 B$
Brent   60 $/b   +10 $/b   +3.1 B$   +1.7 B$
European refining margin indicator (ERMI)   25 $/t   +1 $/t   +0.08 B$   +0.05 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. The impact of the $-€ sensitivity on operating income is 60% attributable to Exploration & Production. The impact of the $-€ sensitivity on adjusted net operating income is attributable 90% to Refining & Chemicals. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2015. Actual results could vary significantly from estimates based on the application of these sensitivities.

Investments - Divestments

2Q15   1Q15   2Q14   2Q15

vs

2Q14

  In millions of dollars   1H15   1H14   1H15

vs

1H14

5,148   6,069   7,193   -28%   Investments excluding acquisitions   11,217   12,395   -10%
396 399 362 +9% capitalized exploration 796 681 +17%
391 793 1,075 -64% increase in non-current loans 1,184 1,336 -11%
(1,160)   (245)   (430)   x3   repayment of non-current loans   (1,405)   (794)   +77%
282   2,495   1,100   -74%   Acquisitions   2,777   1,399   x2
733   2,739   201   x4   Asset sales   3,472   1,677   x2
81   -   126   -36%   Other transactions with non-controlling interests   81   126   -36%
4,616   5,825   7,966   -42%   Net investments*   10,441   11,991   -13%

* Net investments = investments including acquisitions - asset sales - other transactions with non-controlling interests.

Net-debt-to-equity ratio

In millions of dollars   06/30/2015   03/31/2015   06/30/2014
Current borrowings   13,114   13,604   13,525
Net current financial assets (2,351) (2,262) (531)
Net financial assets classified as held for sale (16) (27) (62)
Non-current financial debt 43,363 41,827 39,433
Hedging instruments of non-current debt (1,157) (1,275) (1,973)
Cash and cash equivalents   (27,322)   (25,051)   (22,166)
Net debt   25,631   26,816   28,226
             
Shareholders’ equity - Group share 97,244 95,096 102,872
Estimated dividend payable (1,561) (2,988) (1,894)
Non-controlling interests   3,104   3,024   3,344
Adjusted shareholders' equity   98,787   95,132   104,322
             
Net-debt-to-equity ratio   25.9%   28.2%   27.1%

Return on average capital employed

> Twelve months ended June 30, 2015

In millions of dollars   Upstream   Refining & Chemicals   Marketing & Services   Group
Adjusted net operating income   7,280   4,191   1,367 12,679
Capital employed at 06/30/2014* 103,572 19,265 10,324 129,967
Capital employed at 06/30/2015*   107,214   12,013   8,234 124,001
ROACE   6.9%   26.8%   14.7% 10.0%

> Twelve months ended March 31, 2015

In millions of dollars   Upstream   Refining & Chemicals   Marketing & Services   Group
Adjusted net operating income   8,771   3,243   1,314 12,780
Capital employed at 3/31/2014* 97,924 18,516 10,314 126,068
Capital employed at 3/31/2015*   103,167   12,534   7,928 123,218
ROACE   8.7%   20.9%   14.4% 10.3%

> Full-year 2014

In millions of dollars   Upstream   Refining & Chemicals   Marketing & Services   Group
Adjusted net operating income   10,504   2,489   1,254 13,530
Capital employed at 12/31/2013* 95,529 19,752 10,051 122,451
Capital employed at 12/31/2014*   100,497   13,451   8,825 120,526
ROACE   10.7%   15.0%   13.3% 11.1%

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

This document does not constitute the Financial Report for the first half which will be separately published, in accordance with article L.451-1-2 III of the French Code monétaire et financier, and is available on the Total website total.com.

This press release presents the results for the second quarter 2015 from the consolidated financial statements of TOTAL S.A. as of June 30, 2015. The notes to these consolidated financial statements (unaudited) are available on the TOTAL website total.com.

This document may contain forward-looking information on the Group (including objectives and trends), as well as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business, strategy and plans of TOTAL. These data do not represent forecasts within the meaning of European Regulation No. 809/2004.

Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. Certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.

Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Further information on factors, risks and uncertainties that could affect the Company’s financial results or the Group’s activities is provided in the most recent Registration Document, the French language version of which is filed by the Company with the French Autorité des Marchés Financiers and annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).

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. 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. These 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 asset 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) 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 price differentials 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 an adjustment item reflects, for some transactions, differences between internal measures 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, whose 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, excluding the effect of changes in fair value.

Euro amounts presented herein represent dollar amounts converted at the average euro-dollar (€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this press release, such as “potential reserves” or “resources”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File N° 1-10888, available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s website sec.gov.

1 Definition of adjusted results on page 2.
2 Group share.
3 The ex-dividend date will be December 21, 2015, and the payment date will be set for January 14, 2016.
4 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. Adjusted cash flow from operations is defined as cash flow from operations before changes in working capital at replacement cost; adjustment items are on page 9 and the inventory valuation effect is explained on page 13.
5 Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).
6 Including acquisitions.
7 Net investments = investments including acquisitions and changes in non-current loans - asset sales - other transactions with non-controlling interests.
8 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
9 Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income). During the second quarter of 2015, the Group revised the classification in the statement of income of certain taxes related to its participation in the ADCO concession, effective since January 1, 2015. These taxes are now accounted for as operating taxes and therefore reclassified for $498 million from “Income taxes” to “Purchases, net of inventory variation” in the first quarter of 2015. This reclassification affects the adjusted operating income from business segments and the effective income tax rate for the Group but has no impact on net income.
10 Details shown on page 13.
11 Details shown on page 10.
12 Net cash flow = cash flow from operations - net investments (including other transactions with non-controlling interests).

Total financial statements
________________

Second quarter and first half 2015 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME      
TOTAL
(unaudited)
 
(M$) (a)   2nd quarter

2015

  1st quarter

2015

  2nd quarter

2014

Sales 44,715 42,313 62,561
Excise taxes (5,446) (5,350) (6,354)
Revenues from sales 39,269 36,963 56,207
 
Purchases, net of inventory variation * (26,353) (24,204) (40,371)
Other operating expenses (6,031) (6,272) (7,229)
Exploration costs (352) (637) (301)
Depreciation, depletion and amortization of tangible assets and mineral interests (2,831) (3,872) (2,929)
Other income 722 1,621 96
Other expense (396) (442) (163)
 
Financial interest on debt (231) (262) (266)
Financial income from marketable securities & cash equivalents 28 31 31
Cost of net debt (203) (231) (235)
 
Other financial income 255 142 265
Other financial expense (163) (166) (183)
 
Equity in net income (loss) of affiliates 685 590 874
 
Income taxes *   (1,589)   (984)   (2,902)
Consolidated net income   3,013   2,508   3,129
Group share 2,971 2,663 3,104
Non-controlling interests   42   (155)   25
Earnings per share ($)   1.29   1.16   1.37
Fully-diluted earnings per share ($)   1.29   1.16   1.36
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
TOTAL
(unaudited)
 
(M$)   2nd quarter

2015

  1st quarter

2015

  2nd quarter

2014

Consolidated net income   3,013   2,508   3,129
 
Other comprehensive income
 
Actuarial gains and losses 248 (95) (416)
Tax effect (81) (36) 154
Currency translation adjustment generated by the parent company   2,963   (8,192)   (732)
Items not potentially reclassifiable to profit and loss   3,130   (8,323)   (994)
Currency translation adjustment (1,160) 3,748 512
Available for sale financial assets (12) 8 (6)
Cash flow hedge 36 (130) 30
Share of other comprehensive income of equity affiliates, net amount (201) 1,042 436
Other (2) 3 (4)
Tax effect   (8)   37   (5)
Items potentially reclassifiable to profit and loss   (1,347)   4,708   963
Total other comprehensive income (net amount)   1,783   (3,615)   (31)
             
Comprehensive income   4,796   (1,107)   3,098
Group share 4,749 (916) 3,078
Non-controlling interests 47 (191) 20
CONSOLIDATED STATEMENT OF INCOME    
TOTAL
(unaudited)
 
(M$) (a)   1st half

2015

  1st half

2014

Sales 87,028 123,248
Excise taxes (10,796) (12,186)

Revenues from sales

76,232 111,062
 
Purchases, net of inventory variation (50,557) (78,703)
Other operating expenses (12,303) (14,593)
Exploration costs (989) (920)
Depreciation, depletion and amortization of tangible assets and mineral interests (6,703) (5,674)
Other income 2,343 1,196
Other expense (838) (312)
 
Financial interest on debt (493) (467)
Financial income from marketable securities & cash equivalents 59 50
Cost of net debt (434) (417)
 
Other financial income 397 426
Other financial expense (329) (349)
 
Equity in net income (loss) of affiliates 1,275 1,347
 
Income taxes   (2,573)   (6,499)
Consolidated net income   5,521   6,564
Group share 5,634 6,439
Non-controlling interests   (113)   125
Earnings per share ($)   2.46   2.84
Fully-diluted earnings per share ($)   2.45   2.82
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME    
TOTAL
(unaudited)
 
(M$)   1st half

2015

  1st half

2014

Consolidated net income   5,521   6,564
 
Other comprehensive income
 
Actuarial gains and losses 153 (615)
Tax effect (117) 211
Currency translation adjustment generated by the parent company   (5,229)   (729)
Items not potentially reclassifiable to profit and loss   (5,193)   (1,133)
Currency translation adjustment 2,588 548
Available for sale financial assets (4) (3)
Cash flow hedge (94) 65
Share of other comprehensive income of equity affiliates, net amount 841 (20)
Other 1 (7)
Tax effect   29   (18)
Items potentially reclassifiable to profit and loss   3,361   565
Total other comprehensive income (net amount)   (1,832)   (568)
         
Comprehensive income   3,689   5,996
Group share 3,833 5,879
Non-controlling interests (144) 117
CONSOLIDATED BALANCE SHEET        
TOTAL
(unaudited)
 
(M$)   June 30, 2015

(unaudited)

  March 31, 2015

(unaudited)

  December 31, 2014

(unaudited)

  June 30, 2014

(unaudited)

ASSETS
Non-current assets
Intangible assets, net 16,101 16,236 14,682 18,995
Property, plant and equipment, net 110,023 105,806 106,876 108,468
Equity affiliates : investments and loans 19,380 19,552 19,274 21,256
Other investments 1,248 1,325 1,399 1,786
Hedging instruments of non-current financial debt 1,157 1,275 1,319 1,973
Deferred income taxes 3,145 3,435 4,079 2,842
Other non-current assets   4,047   4,093   4,192   4,263
Total non-current assets   155,101   151,722   151,821   159,583
Current assets
Inventories, net 17,373 15,393 15,196 23,484
Accounts receivable, net 14,415 15,458 15,704 21,698
Other current assets 15,072 14,576 15,702 16,519
Current financial assets 2,439 2,464 1,293 1,003
Cash and cash equivalents 27,322 25,051 25,181 22,166
Assets classified as held for sale   2,754   3,257   4,901   4,317
Total current assets   79,375   76,199   77,977   89,187
Total assets 234,476 227,921 229,798 248,770
 
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
Shareholders' equity
Common shares 7,549 7,519 7,518 7,511
Paid-in surplus and retained earnings 103,286 102,755 94,646 101,100
Currency translation adjustment (9,243) (10,830) (7,480) (1,436)
Treasury shares   (4,348)   (4,348)   (4,354)   (4,303)
Total shareholders' equity - Group share   97,244   95,096   90,330   102,872
Non-controlling interests   3,104   3,024   3,201   3,344
Total shareholders' equity   100,348   98,120   93,531   106,216
Non-current liabilities
Deferred income taxes 13,458 13,557 14,810 16,397
Employee benefits 4,426 4,483 4,758 4,725
Provisions and other non-current liabilities 17,353 17,050 17,545 17,445
Non-current financial debt   43,363   41,827   45,481   39,433
Total non-current liabilities   78,600   76,917   82,594   78,000
Current liabilities
Accounts payable 22,469 22,043 24,150 28,902
Other creditors and accrued liabilities 18,718 15,750 16,641 19,994
Current borrowings 13,114 13,604 10,942 13,525
Other current financial liabilities 88 202 180 472
Liabilities directly associated with the assets classified as held for sale   1,139   1,285   1,760   1,661
Total current liabilities   55,528   52,884   53,673   64,554
Total liabilities and shareholders' equity 234,476 227,921 229,798 248,770
CONSOLIDATED STATEMENT OF CASH FLOW      
TOTAL
(unaudited)
 
(M$)   2nd quarter

2015

  1st quarter

2015

  2nd quarter

2014

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 3,013 2,508 3,129
Depreciation, depletion and amortization 3,113 4,424 3,087
Non-current liabilities, valuation allowances and deferred taxes 285 (446) (156)
Impact of coverage of pension benefit plans - - -
(Gains) losses on disposals of assets (459) (1,357) (17)
Undistributed affiliates' equity earnings (221) (68) (125)
(Increase) decrease in working capital (835) (476) (771)
Other changes, net   (164)   (198)   130
Cash flow from operating activities 4,732 4,387 5,277
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (5,991) (7,956) (6,800)
Acquisitions of subsidiaries, net of cash acquired (3) (7) (414)
Investments in equity affiliates and other securities (205) (53) (434)
Increase in non-current loans   (391)   (793)   (1,075)
Total expenditures (6,590) (8,809) (8,723)
Proceeds from disposals of intangible assets and property, plant and equipment 221 959 135
Proceeds from disposals of subsidiaries, net of cash sold 403 1,758 -
Proceeds from disposals of non-current investments 109 22 66
Repayment of non-current loans   1,160   245   430
Total divestments   1,893   2,984   631
Cash flow used in investing activities (4,697) (5,825) (8,092)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 438 12 304
- Treasury shares - - -
Dividends paid:
- Parent company shareholders (6) (1,566) (1,901)
- Non-controlling interests (70) (2) (139)
Issuance of perpetual subordinated notes - 5,616 -
Payments on perpetual subordinated notes - - -
Other transactions with non-controlling interests 81 - 126
Net issuance (repayment) of non-current debt 1,635 136 2,931
Increase (decrease) in current borrowings (512) 423 956
Increase (decrease) in current financial assets and liabilities (79) (1,022) 65
Cash flow used in financing activities   1,487   3,597   2,342
Net increase (decrease) in cash and cash equivalents 1,522 2,159 (473)
Effect of exchange rates 749 (2,289) (148)
Cash and cash equivalents at the beginning of the period   25,051   25,181   22,787
Cash and cash equivalents at the end of the period   27,322   25,051   22,166
CONSOLIDATED STATEMENT OF CASH FLOW    
TOTAL
(unaudited)
 
(M$)   1st half

2015

  1st half

2014

CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 5,521 6,564
Depreciation, depletion and amortization 7,537 6,261
Non-current liabilities, valuation allowances and deferred taxes (161) 243
Impact of coverage of pension benefit plans - -
(Gains) losses on disposals of assets (1,816) (1,040)
Undistributed affiliates' equity earnings (289) (114)
(Increase) decrease in working capital (1,311) (1,456)
Other changes, net   (362)   157
Cash flow from operating activities 9,119 10,615
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (13,947) (12,248)
Acquisitions of subsidiaries, net of cash acquired (10) (414)
Investments in equity affiliates and other securities (258) (590)
Increase in non-current loans   (1,184)   (1,336)
Total expenditures (15,399) (14,588)
Proceeds from disposals of intangible assets and property, plant and equipment 1,180 1,155
Proceeds from disposals of subsidiaries, net of cash sold 2,161 -
Proceeds from disposals of non-current investments 131 522
Repayment of non-current loans   1,405   794
Total divestments   4,877   2,471
Cash flow used in investing activities (10,522) (12,117)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 450 337
- Treasury shares - -
Dividends paid:
- Parent company shareholders (1,572) (3,736)
- Non-controlling interests (72) (146)
Issuance of perpetual subordinated notes 5,616 -
Payments on perpetual subordinated notes - -
Other transactions with non-controlling interests 81 126
Net issuance (repayment) of non-current debt 1,771 7,120
Increase (decrease) in current borrowings (89) (211)
Increase (decrease) in current financial assets and liabilities (1,101) (52)
Cash flow used in financing activities   5,084   3,438
Net increase (decrease) in cash and cash equivalents 3,681 1,936
Effect of exchange rates (1,540) 30
Cash and cash equivalents at the beginning of the period   25,181   20,200
Cash and cash equivalents at the end of the period   27,322   22,166
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL                  
 
(unaudited)                                    

Common shares issued

Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity -

Group share

Non-controlling interests Total shareholders' equity
(M$)   Number   Amount           Number   Amount            
As of January 1, 2014   2,377,678,160   7,493   98,254   (1,203)   (109,214,448)   (4,303)   100,241   3,138   103,379
Net income of the first half 2014 - - 6,439 - - - 6,439 125 6,564
Other comprehensive Income - - (329) (231) - - (560) (8) (568)
Comprehensive Income - - 6,110 (231) - - 5,879 117 5,996
Dividend - - (3,794) - - - (3,794) (146) (3,940)
Issuance of common shares 5,192,417 18 319 - - - 337 - 337
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - - - 7,200 - - - -
Share-based payments - - 82 - - - 82 - 82
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - - - - - - - -
Other operations with non-controlling interests - - 128 (2) - - 126 183 309
Other items - - 1 - - - 1 52 53
As of June 30, 2014   2,382,870,577   7,511   101,100   (1,436)   (109,207,248)   (4,303)   102,872   3,344   106,216
Net income from July 1 to December 31, 2014 - - (2,195) - - - (2,195) (119) (2,314)
Other comprehensive Income - - (578) (6,044) - - (6,622) (35) (6,657)
Comprehensive Income - - (2,773) (6,044) - - (8,817) (154) (8,971)
Dividend - - (3,584) - - - (3,584) (8) (3,592)
Issuance of common shares 2,396,948 7 76 - - - 83 - 83
Purchase of treasury shares - - - - (4,386,300) (283) (283) - (283)
Sale of treasury shares (1) - - (232) - 4,232,135 232 - - -
Share-based payments - - 32 - - - 32 - 32
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - - - - - - - -
Other operations with non-controlling interests - - 20 - - - 20 12 32
Other items - - 7 - - - 7 7 14
As of December 31, 2014   2,385,267,525   7,518   94,646   (7,480)   (109,361,413)   (4,354)   90,330   3,201   93,531
Net income of the first half 2015 - - 5,634 - - - 5,634 (113) 5,521
Other comprehensive Income - - (38) (1,763) - - (1,801) (31) (1,832)
Comprehensive Income - - 5,596 (1,763) - - 3,833 (144) 3,689
Dividend - - (3,123) - - - (3,123) (72) (3,195)
Issuance of common shares 11,092,565 31 419 - - - 450 - 450
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (6) - 103,150 6 - - -
Share-based payments - - 69 - - - 69 - 69
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - 5,616 - - - 5,616 - 5,616
Payments on perpetual subordinated notes - - (31) - - - (31) - (31)
Other operations with non-controlling interests - - 21 - - - 21 57 78
Other items - - 79 - - - 79 62 141
As of June 30, 2015   2,396,360,090   7,549   103,286   (9,243)   (109,258,263)   (4,348)   97,244   3,104   100,348
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
2nd quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 4,498 19,793 20,419 5 - 44,715
Intersegment sales 4,921 7,383 223 56 (12,583) -
Excise taxes   -   (1,007)   (4,439)   -   -   (5,446)
Revenues from sales 9,419 26,169 16,203 61 (12,583) 39,269
Operating expenses (5,449) (24,182) (15,508) (180) 12,583 (32,736)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,329)   (291)   (202)   (9)   -   (2,831)
Operating income 1,641 1,696 493 (128) - 3,702
Equity in net income (loss) of affiliates and other items 319 107 503 174 - 1,103
Tax on net operating income   (909)   (433)   (193)   (93)   -   (1,628)
Net operating income 1,051 1,370 803 (47) - 3,177
Net cost of net debt (164)
Non-controlling interests                       (42)
Net income 2,971
                         
2nd quarter 2015 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (158) - - - - (158)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (158) - - - - (158)
Operating expenses (2) 123 51 - - 172
Depreciation, depletion and amortization of tangible assets and mineral interests   (194)   (31)   (23)   -   -   (248)
Operating income (b) (354) 92 28 - - (234)
Equity in net income (loss) of affiliates and other items (191) (71) 374 - - 112
Tax on net operating income   36   -   (24)   -   -   12
Net operating income (b) (509) 21 378 - - (110)
Net cost of net debt -
Non-controlling interests                       (4)
Net income (114)
 
(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 - 199 51 -
On net operating income - 138 43 -
 
   

 

 

 

 

 

 

 

       
2nd quarter 2015 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 4,656 19,793 20,419 5 - 44,873
Intersegment sales 4,921 7,383 223 56 (12,583) -
Excise taxes   -   (1,007)   (4,439)   -   -   (5,446)
Revenues from sales 9,577 26,169 16,203 61 (12,583) 39,427
Operating expenses (5,447) (24,305) (15,559) (180) 12,583 (32,908)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,135)   (260)   (179)   (9)   -   (2,583)
Adjusted operating income 1,995 1,604 465 (128) - 3,936
Equity in net income (loss) of affiliates and other items 510 178 129 174 - 991
Tax on net operating income   (945)   (433)   (169)   (93)   -   (1,640)
Adjusted net operating income 1,560 1,349 425 (47) - 3,287
Net cost of net debt (164)
Non-controlling interests                      

(38)

Adjusted net income                       3,085
Adjusted fully-diluted earnings per share ($)                       1.34
(a) Except for earnings per share.
                         
2nd quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 5,653 465 436 36 - 6,590
Total divestments 379 874 627 13 - 1,893
Cash flow from operating activities   2,713   1,700   379   (60)   -   4,732
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 5,225 17,464 19,620 4 - 42,313
Intersegment sales 4,384 6,967 272 52 (11,675) -
Excise taxes   -   (933)   (4,417)   -   -   (5,350)
Revenues from sales 9,609 23,498 15,475 56 (11,675) 36,963
Operating expenses (5,969) (21,717) (14,863) (239) 11,675 (31,113)
Depreciation, depletion and amortization of tangible assets and mineral interests   (3,441)   (252)   (174)   (5)   -   (3,872)
Operating income 199 1,529 438 (188) - 1,978
Equity in net income (loss) of affiliates and other items 769 762 (80) 294 - 1,745
Tax on net operating income   (368)   (446)   (131)   (82)   -   (1,027)
Net operating income 600 1,845 227 24 - 2,696
Net cost of net debt (188)
Non-controlling interests                       155
Net income 2,663
                         
1st quarter 2015 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (146) - - - - (146)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (146) - - - - (146)
Operating expenses (140) 194 (7) - - 47
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,046)   -   -   -   -   (1,046)
Operating income (b) (1,332) 194 (7) - - (1,145)
Equity in net income (loss) of affiliates and other items 136 661 (89) - - 708
Tax on net operating income   437   (110)   2   -   -   329
Net operating income (b) (759) 745 (94) - - (108)
Net cost of net debt -
Non-controlling interests                       169
Net income 61
 
(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 - 235 (7) -
On net operating income - 150 (5) -
 
   

 

 

 

 

 

 

 

       
1st quarter 2015 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 5,371 17,464 19,620 4 - 42,459
Intersegment sales 4,384 6,967 272 52 (11,675) -
Excise taxes   -   (933)   (4,417)   -   -   (5,350)
Revenues from sales 9,755 23,498 15,475 56 (11,675) 37,109
Operating expenses (5,829) (21,911) (14,856) (239) 11,675 (31,160)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,395)   (252)   (174)   (5)   -   (2,826)
Adjusted operating income 1,531 1,335 445 (188) - 3,123
Equity in net income (loss) of affiliates and other items 633 101 9 294 - 1,037
Tax on net operating income   (805)   (336)   (133)   (82)   -   (1,356)
Adjusted net operating income 1,359 1,100 321 24 - 2,804
Net cost of net debt (188)
Non-controlling interests                       (14)
Adjusted net income                       2,602
Adjusted fully-diluted earnings per share ($)                       1.13
(a) Except for earnings per share.
                         
1st quarter 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 8,151 434 215 9 - 8,809
Total divestments 1,162 1,766 52 4 - 2,984
Cash flow from operating activities   3,525   314   644   (96)   -   4,387
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
2nd quarter 2014

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 6,205 28,143 28,213 - - 62,561
Intersegment sales 8,057 11,740 402 46 (20,245) -
Excise taxes   -   (1,281)   (5,073)   -   -   (6,354)
Revenues from sales 14,262 38,602 23,542 46 (20,245) 56,207
Operating expenses (7,174) (37,744) (22,966) (262) 20,245 (47,901)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,314)   (408)   (198)   (9)   -   (2,929)
Operating income 4,774 450 378 (225) - 5,377
Equity in net income (loss) of affiliates and other items 719 65 98 7 - 889
Tax on net operating income   (2,471)   (114)   (128)   (218)   -   (2,931)
Net operating income 3,022 401 348 (436) - 3,335
Net cost of net debt (206)
Non-controlling interests                       (25)
Net income 3,104
                         
2nd quarter 2014 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (36) - - - - (36)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (36) - - - - (36)
Operating expenses - 122 (27) - - 95
Depreciation, depletion and amortization of tangible assets and mineral interests   -   (40)   -   -   -   (40)
Operating income (b) (36) 82 (27) - - 19
Equity in net income (loss) of affiliates and other items - (32) (7) - - (39)
Tax on net operating income   7   (50)   10   -   -   (33)
Net operating income (b) (29) - (24) - - (53)
Net cost of net debt -
Non-controlling interests                       6
Net income (47)
 
(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 - 122 (5) -
On net operating income - 77 (3) -
 
   

 

 

 

 

 

 

 

       
2nd quarter 2014 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 6,241 28,143 28,213 - - 62,597
Intersegment sales 8,057 11,740 402 46 (20,245) -
Excise taxes   -   (1,281)   (5,073)   -   -   (6,354)
Revenues from sales 14,298 38,602 23,542 46 (20,245) 56,243
Operating expenses (7,174) (37,866) (22,939) (262) 20,245 (47,996)
Depreciation, depletion and amortization of tangible assets and mineral interests   (2,314)   (368)   (198)   (9)   -   (2,889)
Adjusted operating income 4,810 368 405 (225) - 5,358
Equity in net income (loss) of affiliates and other items 719 97 105 7 - 928
Tax on net operating income   (2,478)   (64)   (138)   (218)   -   (2,898)
Adjusted net operating income 3,051 401 372 (436) - 3,388
Net cost of net debt (206)
Non-controlling interests                       (31)
Adjusted net income                       3,151
Adjusted fully-diluted earnings per share ($)                       1.38
(a) Except for earnings per share.
                         
2nd quarter 2014

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 7,999 475 203 46 - 8,723
Total divestments 568 15 28 20 - 631
Cash flow from operating activities   4,805   (133)   304   301   -   5,277
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st half 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 9,723 37,257 40,039 9 - 87,028
Intersegment sales 9,305 14,350 495 108 (24,258) -
Excise taxes   -   (1,940)   (8,856)   -   -   (10,796)
Revenues from sales 19,028 49,667 31,678 117 (24,258) 76,232
Operating expenses (11,418) (45,899) (30,371) (419) 24,258 (63,849)
Depreciation, depletion and amortization of tangible assets and mineral interests   (5,770)   (543)   (376)   (14)   -   (6,703)
Operating income 1,840 3,225 931 (316) - 5,680
Equity in net income (loss) of affiliates and other items 1,088 869 423 468 - 2,848
Tax on net operating income   (1,277)   (879)   (324)   (175)   -   (2,655)
Net operating income 1,651 3,215 1,030 (23) - 5,873
Net cost of net debt (352)
Non-controlling interests                       113
Net income 5,634
                         
1st half 2015 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (304) - - - - (304)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (304) - - - - (304)
Operating expenses (142) 317 44 - - 219
Depreciation, depletion and amortization of tangible assets and mineral interests   (1,240)   (31)   (23)   -   -   (1,294)
Operating income (b) (1,686) 286 21 - - (1,379)
Equity in net income (loss) of affiliates and other items (55) 590 285 - - 820
Tax on net operating income   473   (110)   (22)   -   -   341
Net operating income (b) (1,268) 766 284 - - (218)
Net cost of net debt -
Non-controlling interests                       165
Net income

(53)

 
(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 - 434 44 -
On net operating income - 288 38 -
 
   

 

 

 

 

 

 

 

       
1st half 2015 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 10,027 37,257 40,039 9 - 87,332
Intersegment sales 9,305 14,350 495 108 (24,258) -
Excise taxes   -   (1,940)   (8,856)   -   -   (10,796)
Revenues from sales 19,332 49,667 31,678 117 (24,258) 76,536
Operating expenses (11,276) (46,216) (30,415) (419) 24,258 (64,068)
Depreciation, depletion and amortization of tangible assets and mineral interests   (4,530)   (512)   (353)   (14)   -   (5,409)
Adjusted operating income 3,526 2,939 910 (316) - 7,059
Equity in net income (loss) of affiliates and other items 1,143 279 138 468 - 2,028
Tax on net operating income   (1,750)   (769)   (302)   (175)   -   (2,996)
Adjusted net operating income 2,919 2,449 746 (23) - 6,091
Net cost of net debt (352)
Non-controlling interests                       (52)
Adjusted net income                       5,687
Adjusted fully-diluted earnings per share ($)                       2.47
(a) Except for earnings per share.
                         
1st half 2015

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 13,804 899 651 45 - 15,399
Total divestments 1,541 2,640 679 17 - 4,877
Cash flow from operating activities   6,238   2,014   1,023   (156)   -   9,119
BUSINESS SEGMENT INFORMATION            
TOTAL
(unaudited)
                         
1st half 2014

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 12,871 55,682 54,683 12 - 123,248
Intersegment sales 15,493 23,696 810 95 (40,094) -
Excise taxes   -   (2,441)   (9,745)   -   -   (12,186)
Revenues from sales 28,364 76,937 45,748 107 (40,094) 111,062
Operating expenses (13,688) (75,536) (44,655) (431) 40,094 (94,216)
Depreciation, depletion and amortization of tangible assets and mineral interests   (4,490)   (786)   (380)   (18)   -   (5,674)
Operating income 10,186 615 713 (342) - 11,172
Equity in net income (loss) of affiliates and other items 2,046 119 90 53 - 2,308
Tax on net operating income   (5,963)   (108)   (208)   (292)   -   (6,571)
Net operating income 6,269 626 595 (581) - 6,909
Net cost of net debt (345)
Non-controlling interests                       (125)
Net income 6,439
                         
1st half 2014 (adjustments) (a)

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales (10) - - - - (10)
Intersegment sales - - - - - -
Excise taxes   -   -   -   -   -   -
Revenues from sales (10) - - - - (10)
Operating expenses (115) (41) (45) - - (201)
Depreciation, depletion and amortization of tangible assets and mineral interests   -   (40)   -   -   -   (40)
Operating income (b) (125) (81) (45) - - (251)
Equity in net income (loss) of affiliates and other items 280 (40) (7) - - 233
Tax on net operating income   (29)   -   14   -   -   (15)
Net operating income (b) 126 (121) (38) - - (33)
Net cost of net debt -
Non-controlling interests                       (6)
Net income (39)
 
(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 - (41) (23) -
On net operating income - (34) (17) -
 
   

 

 

 

 

 

 

 

       
1st half 2014 (adjusted)

(M$) (a)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 12,881 55,682 54,683 12 - 123,258
Intersegment sales 15,493 23,696 810 95 (40,094) -
Excise taxes   -   (2,441)   (9,745)   -   -   (12,186)
Revenues from sales 28,374 76,937 45,748 107 (40,094) 111,072
Operating expenses (13,573) (75,495) (44,610) (431) 40,094 (94,015)
Depreciation, depletion and amortization of tangible assets and mineral interests   (4,490)   (746)   (380)   (18)   -   (5,634)
Adjusted operating income 10,311 696 758 (342) - 11,423
Equity in net income (loss) of affiliates and other items 1,766 159 97 53 - 2,075
Tax on net operating income   (5,934)   (108)   (222)   (292)   -   (6,556)
Adjusted net operating income 6,143 747 633 (581) - 6,942
Net cost of net debt (345)
Non-controlling interests                       (119)
Adjusted net income                       6,478
Adjusted fully-diluted earnings per share ($)                       2.84
(a) Except for earnings per share.
                         
1st half 2014

(M$)

  Upstream   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 13,310 725 479 74 - 14,588
Total divestments 2,367 26 54 24 - 2,471
Cash flow from operating activities   8,616   1,460   393   146   -   10,615
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
2nd quarter 2015

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 44,873 (158) 44,715
Excise taxes (5,446) - (5,446)
Revenues from sales 39,427 (158) 39,269
 
Purchases, net of inventory variation (26,603) 250 (26,353)
Other operating expenses (5,955) (76) (6,031)
Exploration costs (350) (2) (352)
Depreciation, depletion and amortization of tangible assets and mineral interests (2,583) (248) (2,831)
Other income 358 364 722
Other expense (136) (260) (396)
 
Financial interest on debt (231) - (231)
Financial income from marketable securities & cash equivalents 28 - 28
Cost of net debt (203) - (203)
 
Other financial income 255 - 255
Other financial expense (163) - (163)
 
Equity in net income (loss) of affiliates 677 8 685
 
Income taxes   (1,601)   12   (1,589)
Consolidated net income 3,123 (110) 3,013
Group share 3,085 (114) 2,971
Non-controlling interests 38 4 42
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
2nd quarter 2014

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of income

Sales 62,597 (36) 62,561
Excise taxes (6,354) - (6,354)
Revenues from sales 56,243 (36) 56,207
 
Purchases, net of inventory variation (40,488) 117 (40,371)
Other operating expenses (7,207) (22) (7,229)
Exploration costs (301) - (301)
Depreciation, depletion and amortization of tangible assets and mineral interests (2,889) (40) (2,929)
Other income 96 - 96
Other expense (133) (30) (163)
 
Financial interest on debt (266) - (266)
Financial income from marketable securities & cash equivalents 31 - 31
Cost of net debt (235) - (235)
 
Other financial income 265 - 265
Other financial expense (183) - (183)
 
Equity in net income (loss) of affiliates 883 (9) 874
 
Income taxes   (2,869)   (33)   (2,902)
Consolidated net income 3,182 (53) 3,129
Group share 3,151 (47) 3,104
Non-controlling interests 31 (6) 25
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
1st half 2015

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 87,332 (304) 87,028
Excise taxes (10,796) - (10,796)

Revenues from sales

76,536 (304) 76,232
 
Purchases, net of inventory variation (51,035) 478 (50,557)
Other operating expenses (12,131) (172) (12,303)
Exploration costs (902) (87) (989)
Depreciation, depletion and amortization of tangible assets and mineral interests (5,409) (1,294) (6,703)
Other income 884 1,459 2,343
Other expense (235) (603) (838)
 
Financial interest on debt (493) - (493)
Financial income from marketable securities & cash equivalents 59 - 59
Cost of net debt (434) - (434)
 
Other financial income 397 - 397
Other financial expense (329) - (329)
 
Equity in net income (loss) of affiliates 1,311 (36) 1,275
 
Income taxes   (2,914)   341   (2,573)
Consolidated net income 5,739 (218) 5,521
Group share 5,687 (53) 5,634
Non-controlling interests 52 (165) (113)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
1st half 2014

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 123,258 (10) 123,248
Excise taxes (12,186) - (12,186)
Revenues from sales 111,072 (10) 111,062
 
Purchases, net of inventory variation (78,639) (64) (78,703)
Other operating expenses (14,456) (137) (14,593)
Exploration costs (920) - (920)
Depreciation, depletion and amortization of tangible assets and mineral interests (5,634) (40) (5,674)
Other income 548 648 1,196
Other expense (263) (49) (312)
 
Financial interest on debt (467) - (467)
Financial income from marketable securities & cash equivalents 50 - 50
Cost of net debt (417) - (417)
 
Other financial income 426 - 426
Other financial expense (349) - (349)
 
Equity in net income (loss) of affiliates 1,713 (366) 1,347
 
Income taxes   (6,484)   (15)   (6,499)
Consolidated net income 6,597 (33) 6,564
Group share 6,478 (39) 6,439
Non-controlling interests 119 6 125
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

Total
2, place Jean Millier
Arche Nord Coupole/Regnault
92 400 Courbevoie France
Mike SANGSTER
Nicolas FUMEX
Patrick GUENKEL
Magali PAILHE
Tel. : + 44 (0)207 719 7962
Fax : + 44 (0)207 719 7959
or
Robert HAMMOND (U.S.)
Tel. : +1 713-483-5070
Fax : +1 713-483-5629

Short Name: Total S.A.
Category Code: MSC
Sequence Number: 477105
Time of Receipt (offset from UTC): 20150729T065218+0100

Contacts

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Contacts

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