Total: Fourth Quarter and Full-Year 2017 Results

PARIS--()--

Total (Paris:FP) (LSE:TTA) (NYSE:TOT):

    4Q17   Change

vs 4Q16

  2017   Change

vs 2016

       
Adjusted net income 1
- in billions of dollars (B$) 2.9 +19% 10.6 +28%
- in dollars per share 1.10 +15% 4.12 +22%
 
Operating cash flow

before working capital changes 1 (B$)

6.0 +25% 21.1 +24%
DACF 1 (B$) 6.2 +26% 22.2 +26%
                 
 

Net income 2 of 8.6 B$ in 2017, a 39% increase compared to 2016

Net-debt-to-equity ratio of 13.8% at December 31, 2017
Hydrocarbon production of 2,566 kboe/d in 2017, a 4.6% increase compared to 2016
Fourth quarter 2017 dividend of 0.62 €/share payable in June 2018 3

Total’s Board of Directors met on February 7, 2018, to review the Group’s 2017 accounts. Commenting on the results, Chairman and CEO Patrick Pouyanné said:
“Brent rose to $54/b on average in 2017 from $44/b in 2016 while remaining volatile. The Group demonstrated its ability to capture the benefit of higher prices by reporting adjusted net income of $10.6 billion, a 28% increase (compared to a 24% increase in Brent) from 2016, and a return on equity above 10%, the highest among the majors. The Upstream, in particular, increased its results by more than 80% and its operating cash flow by close to 40%.
Financial discipline was successfully maintained. Organic investments were $14.4 billion, in line with guidance of $13-15 billion, and cost savings reached $3.7 billion in 2017, more than the target of $3.5 billion. Production costs fell to $5.4/boe in 2017 from $9.9/boe in 2014.
These strong results were driven by production growth (5% in 2017), notably the start-up of Moho-Nord in the Republic of Congo, the ramp-up of Kashagan in Kazahkstan, and the entry into Al-Shaheen in Qatar. The Downstream confirmed again this year its ability to generate around $7 billion of operating cash flow and reported a return on capital employed of more than 30%.
In 2017, the Group took advantage of the cyclical low to launch five Upstream projects, including the first phase of the Libra development in Brazil, as well as petrochemical projects in the United States and South Korea. In E&P, the Group is preparing for future growth with the announced acquisition of Maersk Oil, strengthening its position in the North Sea, and finalized its entry into the Lapa and Iara fields in Brazil in early 2018. In the US Gulf of Mexico, the Group participated in a major discovery at the Ballymore prospect. In the framework of reinforcing its integrated gas strategy, it announced the acquisition of the LNG business of Engie to take full advantage of the fast-growing LNG market. Marketing & Services continues to grow, notably by expanding its retail network into Mexico.
The strategy implemented since 2015 has enabled the Group to reduce its pre-dividend organic breakeven to $27/b in 2017 and generate $22 billion of debt-adjusted cash flow (DACF). The Group also continued to strengthen its balance sheet, ending the year with 14% gearing, a significant decrease compared to 2016.
In this context, considering the anticipated growth in cash flow from 2018 forward from increasing production and leverage to oil prices, the Board of Directors decided to eliminate the discount on the scrip dividend and to propose a shareholder return policy for the coming three years.”

Key figures 4

4Q17   3Q17   4Q16   4Q17

vs

4Q16

  In millions of dollars, except effective tax rate,

earnings per share and number of shares

  2017   2016   2017

vs

2016

3,359   3,062   2,676   +26%   Adjusted net operating income from business segments*   11,936   9,410   +27%
1,805   1,439   1,007   +79%   Exploration & Production   5,985   3,217   +86%
232   97   132   +76%   Gas, Renewables & Power   485   439   +10%
886   1,020   1,131   -22%   Refining & Chemicals   3,790   4,195   -10%
436   506   406   +7%   Marketing & Services   1,676   1,559   +8%
731   674   720   +2%   Contribution of equity affiliates to adjusted net income   2,574   2,531   +2%
31.8%   32.6%   31.3%   -   Group effective tax rate 5   31.1%   25.0%   -
2,872   2,674   2,407   +19%   Adjusted net income   10,578   8,287   +28%
1.10   1.04   0.96   +15%   Adjusted fully-diluted earnings per share (dollars) 6   4.12   3.38   +22%
0.94   0.88   0.89   +5%   Adjusted fully-diluted earnings per share (euros)**   3.65   3.06   +19%
2,536   2,505   2,433   +4%   Fully-diluted weighted-average shares (millions)   2,495   2,390   +4%
                             
1,021   2,724   548   +86%   Net income (Group share)   8,631   6,196   +39%
                             
5,103   3,910   5,855   -13%   Investments 7   16,896   20,530   -18%
1,467   539   927   +58%   Divestments 8   5,264   2,877   +83%
3,638   3,373   4,928   -26%   Net investments 9   11,636   17,757   -34%
4,442   3,060   4,728   -6%   Organic investments 10   14,395   17,484   -18%
107   542   651   -84%   Resource acquisitions   714   780   -8%
5,955   5,159   4,758   +25%   Operating cash flow before working capital changes 11   21,135   16,988   +24%
6,233   5,467   4,964   +26%   Operating cash flow before working capital changes

w/o financial charges (DACF) 12

  22,183   17,581   +26%
8,615   4,363   7,018   +23%   Cash flow from operations   22,319   16,521   +35%

* Average €-$ exchange rate: 1.1774 in the fourth quarter 2017 and 1.1297 in 2017.

Highlights since the beginning of the fourth quarter 2017 13

  • Started gas exports from Yamal LNG in Russia, one of the largest liquefaction projects in the world with maximum capacity of 16.5 Mt/y of LNG
  • Started giant Libra field in Brazil with first production from the 50 kboe/d Libra Pioneiro FPSO and launched first phase of large-scale development with a new 150 kboe/d FPSO
  • Started production on the 180 kb/d Fort Hills project in Canada
  • Major US Gulf of Mexico deep-offshore oil discovery on the Ballymore prospect, which Total entered with a 40% interest in September 2017
  • Acquired 12.5% interest in the Anchor permit in the deep-offshore US Gulf of Mexico
  • Entry of Total, as operator, on exploration Block 48 in Angola
  • Acquisition of Engie’s upstream LNG business for $1.49 billion; Total ranks second in global LNG
  • Sold interest in Martin Linge field in Norway for $1.45 billion
  • Launched Total Spring in France to target residential market with gas and green power
  • Sale in Italy of fuel distribution and refining activities of TotalErg (Total 49%)
  • Strategic agreement between Total and CMA CGM to provide 0.3 Mt/y of LNG for future CMA CGM container ships
  • Entered petroleum product retail sector in Mexico in agreement with GASORED to rebrand network of 250 stations as Total

Analysis of business segments

Exploration & Production

> Environment – liquids and gas price realizations*

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

     

2017

 

2016

  2017

vs

2016

61.3   52.1   49.3   +24%   Brent ($/b)   54.2   43.7   +24%
57.6   48.9   46.1   +25%   Average liquids price ($/b)   50.2   40.3   +25%
4.23   4.05   3.89   +9%   Average gas price ($/Mbtu)   4.08   3.56   +15%
43.3   38.2   35.6   +22%   Average hydrocarbon price ($/boe)   38.7   31.9   +21%

* Consolidated subsidiaries, excluding fixed margins.

> Production

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

  Hydrocarbon production  

2017

 

2016

  2017

vs

2016

2,613   2,581   2,462   +6%   Combined production (kboe/d)   2,566   2,452   +5%
1,389   1,392   1,257   +11%   Liquids (kb/d)   1,346   1,271   +6%
6,832   6,427   6,597   +4%   Gas (Mcf/d)   6,662   6,447   +3%

Hydrocarbon production was 2,613 thousand barrels of oil equivalent per day (kboe/d) in the fourth quarter 2017, an increase of close to 6% compared to 2016, due to the following:

  • +6% due to new start-ups and ramp-ups, notably Moho Nord, Kashagan, Edradour-Glenlivet, Yamal LNG and Angola LNG;
  • +3% portfolio effect, mainly due to taking over the giant Al-Shaheen oil field concession in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of the Republic of the Congo and asset sales in Norway;
  • +1% related to improved security conditions in Libya and Nigeria;
  • -1% related to the PSC price effect and OPEC quotas;
  • -3% due to natural field decline and the interruption of production on Elgin-Franklin following the rupture of the Forties pipeline.

For the full-year 2017, hydrocarbon production was 2,566 kboe/d, an increase of more than 5% compared to 2016, due to the following:

  • +5% due to new start-ups and ramp-ups, notably Moho Nord, Kashagan, Edradour-Glenlivet and Angola LNG;
  • +2% portfolio effect, mainly due to taking over the giant Al-Shaheen oil field concession in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of the Republic of the Congo and asset sales in Norway;
  • +1% related to improved security conditions in Libya and Nigeria;
  • -3% due to natural field decline, the PSC price effect and OPEC quotas.

> Results

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

  In millions of dollars, except effective tax rate  

2017

 

2016

  2017

vs

2016

1,805   1,439   1,007   +79%   Adjusted net operating income*   5,985   3,217   +86%
419   435   429   -2%   including income from equity affiliates   1,542   1,363   +13%
42.8%   42.8%   47.1%       Effective tax rate**   41.2%   27.7%    
                             
3,490   3,228   4,833   -28%   Investments   12,802   16,085   -20%
1,334   339   818   +63%   Divestments   1,918   2,187   -12%
3,120   2,388   3,705   -16%   Organic investments   11,310   14,464   -22%
3,915   3,197   2,895   +35%   Operating cash flow before working capital changes   13,391   9,736   +38%
4,263   3,574   3,142   +36%   Operating cash flow before working capital changes

w/o financial charges

  14,753   10,592   +39%
3,826   2,633   4,039   -5%   Cash flow from operations   11,459   9,010   +27%

* Details on adjustment items are shown in the business segment information annex to financial statements.

** 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).

Operating cash flow before working capital changes from Exploration & Production was 3,915 M$ in the fourth quarter 2017, an increase of 35% compared to the fourth quarter 2016, notably due to increases in production, hydrocarbon prices and lower operating costs.

For the full-year 2017, operating cash flow before working capital changes was 13,391 M$, an increase of 38% whereas oil prices only increased by 24%, notably due to production ramp-ups on major projects started up since 2016, including Kashagan and Moho Nord, the increase in hydrocarbon prices and operating cost reductions.

The Exploration & Production segment’s adjusted net operating income was:

  • 1,805 M$ in the fourth quarter 2017, an increase of 79% compared to the fourth quarter 2016, notably due to production growth, cost reductions and an increase in oil and gas prices; and
  • 5,985 M$ for the full-year 2017, an increase of 86% compared to 2016, for the same reasons above.

The effective tax rate increased from 27.7% in 2016 compared to 41.2% in 2017, in line with the rise in hydrocarbon prices.

Technical costs for consolidated affiliates, calculated in accordance with ASC 932 12 , continue to fall, to 19.5 $/boe in 2017 compared to 20.4 $/boe in 2016. This decrease was mainly due to the reduction in operating costs from 5.9 $/boe in 2016 to 5.4 $/boe in 2017.

Gas, Renewables & Power

> Results

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

  In millions of dollars  

2017

 

2016

  2017

vs

2016

232   97   132   +76%   Adjusted net operating income*   485   439   +10%
                             
306   99   (118)   ns   Investments   797   1,221   -35%
46   -   29   +59%   Divestments   73   166   -56%
85   98   (57)   ns   Organic investments   353   270   +31%
15   87   103   -85%   Operating cash flow before working capital changes   232   125   +86%
25   110   124   -80%   Operating cash flow before working capital changes

w/o financial charges

  294   176   +67%
657   325   732   -10%   Cash flow from operations   993   538   +85%

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

Adjusted net operating income for the Gas, Renewables & Power segment was 232 M$ in the fourth quarter 2017, including in particular the delivery of the El Pelicano solar farm in Chile. In 2017, adjusted net operating income increased by 10% compared to 2016.

Operating cash flow before working capital changes was 232 M$ for the full-year 2017, an increase of 86%.

Refining & Chemicals

> Refinery throughput and utilization rates*

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

     

2017

 

2016

  2017

vs

2016

1,842   1,877   2,010   -8%   Total refinery throughput (kb/d)   1,827   1,965   -7%
648   648   717   -10%   France   624   669   -7%
784 802 787 - Rest of Europe 767 802 -4%
410   427   506   -19%   Rest of world   436   494   -12%
91%   90%   87%       Utlization rate based on crude only**   88%   85%    

* Includes share of TotalErg, and African refineries reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.

Refinery throughput:

  • decreased by 8% in the fourth quarter 2017 compared to the fourth quarter 2016, mainly as a result of the ending of oil refining at La Mède and maintenance activities at the Port Arthur refinery in the United States.
  • decreased by 7% for the full-year 2017 compared to 2016 as a result of the definitive ending of distillation capacity at La Mède (France) and Lindsey (UK) and the temporary shutdown due to Hurricane Harvey in the United States.

> Results

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

  In millions of dollars

except the ERMI

 

2017

 

2016

  2017

vs

2016

35.5   48.2   41.0   -13%   European refining margin indicator - ERMI ($/t)   40.9   34.1   +20%
                             
886   1,020   1,131   -   Adjusted net operating income*   3,790   4,195   -10%
                             
710   357   566   +25%   Investments   1,734   1,861   -7%
36   24   15   x2,4   Divestments   2,820   88   x32
684   338   548   +25%   Organic investments   1,625   1,642   -1%
1,153   1,218   1,365   -16%   Operating cash flow before working capital changes   4,757   4,874   -2%
1,142   1,208   1,368   -17%   Operating cash flow before working capital changes

w/o financial charges

  4,728   4,873   -3%
3,041   662   1,746   +74%   Cash flow from operations   7,440   4,585   +62%

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

The Group’s European refining margin indicator (ERMI) increased to 40.9 $/t on average in 2017, due to elevated petroleum product demand. Petrochemicals continued to benefit from a favorable environment albeit down compared to a year ago.

Refining & Chemicals adjusted net operating income was:

  • 886 M$ in the fourth quarter 2017, a decrease of 22% compared to 2016 due to maintenance activities at Port Arthur in the United States and the sale of Atotech; and
  • 3,790 M$ for the full-year 2017, a decrease of 10% compared to 2016, notably due to the impact of Hurricane Harvey, the impact of modernization work on the Antwerp platform and the sale of Atotech in early 2017 as well as lower trading results due to the evolution of the market into backwardation.

Operating cash flow before working capital changes remained stable between 2016 and 2017 at 4.8 B$.

Marketing & Services

> Petroleum product sales

4Q17

 

3Q16

 

4Q16

  4Q17

vs

4Q16

  Sales in kb/d*  

2017

 

2016

  2017

vs

2016

1,821   1,807   1,808   +1%   Total Marketing & Services sales   1,779   1,793   -1%
1,046   1,072   1,123   -7%   Europe   1,049   1,093   -4%
775   735   685   +13%   Rest of world   730   700   +4%

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

Petroleum product sales were generally stable compared to the previous year, with a move toward Africa and Asia where the Group has strong growth. European sales were affected by the divestment of mature LPG distribution activities in Belgium and Germany.

> Results

4Q17

 

3Q17

 

4Q16

  4Q17

vs

4Q16

  In millions of dollars  

2017

 

2016

  2017

vs

2016

436   506   406   +7%   Adjusted net operating income*   1,676   1,559   +8%
                             
570   190   500   +14%   Investments   1,457   1,245   +17%
45   150   65   -31%   Divestments   413   424   -3%
533   205   460   +16%   Organic investments   1,019   1,003   +2%
621   517   417   +49%   Operating cash flow before working capital changes   2,151   1,887   +14%
644   545   440   +46%   Operating cash flow before working capital changes

w/o financial charges

  2,242   1,966   +14%
992   596   340   x2,9   Cash flow from operations   2,130   1,754   +21%

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

Marketing & Services results continue to grow in a context of strong retail margins, notably in Africa. Compared to a year ago, adjusted net operating income increased by 7% to 436 M$ in the fourth quarter 2017, and by 8% to 1,676 M$ for the full-year 2017.

Operating cash flow before working capital changes increased by 14% between 2016 and 2017.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was:

  • 3,359 M$ in the fourth quarter 2017, an increase of 26% compared to the fourth quarter 2016, mainly due to the 79% increase in contribution from Exploration & Production which benefited from new projects ramp-ups and higher prices;
  • 11,936 M$ for the full-year 2017, an increase of 27% compared to 2016 for the same reasons above.

> Adjusted net income (Group share)

Adjusted net income was 2,872 M$ in the fourth quarter 2017, an increase of 19% compared to the fourth quarter 2016, and 10,578 M$ for the full-year 2017, an increase of 28%. The increase was the result of a much higher contribution from Exploration & Production and the continued decrease in the Group’s breakeven.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value 13 .

Total adjustments affecting net income (Group share) 14 were:

  • -1,851 M$ in the fourth quarter 2017, including an impairment of Gladstone LNG in Australia and assets in Congo; and
  • -1,947 M$ for the full-year 2017, including mainly an impairment of Fort Hills in Canada, Gladstone LNG in Australia and assets in Congo, partially offset by a gain on the sale of Atotech.

The effective tax rate for the business segments was:

  • 31.8% in the fourth quarter 2017 compared to 31.3% in the fourth quarter 2016, mainly due to the higher effective tax rate for the Exploration & Production segment in the context of higher hydrocarbon prices and the larger share of Exploration & Production in the Group’s quarterly results, partially offset by the tax refund from the French government related to dividend tax; and
  • 31.1% for the full-year 2017 compared to 25.0% in 2016, for the same reasons above.

> Adjusted fully-diluted earnings per share

Adjusted earnings per share, based on 2,495 million fully-diluted weighted average shares, was $4.12 in 2017 compared to $3.38 in 2016, an increase of 22%.

The number of fully-diluted shares was 2,536 million on December 31, 2017, compared to 2,436 million on December 31, 2016.

> Divestments – acquisitions

Asset sales completed were:

  • 1,119 M$ in the fourth quarter 2017, comprised mainly of the sale of mature assets in Gabon, Gina Krog in Norway and part of the interest in the Fort Hills project in Canada; and
  • 4,239 M$ for the full-year 2017, essentially comprised of the sale of Atotech, mature assets in Gabon, Gina Krog in Norway, part of the interest in the Fort Hills project in Canada, the SPMR pipeline and LPG activities in Germany.

Acquisitions completed were:

  • 313 M$ in the fourth quarter 2017, mainly comprised of the acquisition of a 23% equity share in EREN Renewable Energy and a 12.5% equity share in the Anchor license in the United States; and
  • 1,476 M$ for the full-year 2017, mainly comprised of the bonus related to the license for Elk-Antelope in Papua New Guinea, a marketing and logistics network in East Africa, and a 23% equity share in Tellurian.

In addition, in early January 2018, the Group finalized the acquisition of assets in Brazil from Petrobras for 1.95 B$ as well as the sale of TotalErg in Italy for 415 M$ (including the B2B and LPG business).

> Cash flow

The Group’s net cash flow 15 was:

  • 2,317 M$ in the fourth quarter 2017 compared to -170 M$ in the fourth quarter 2016, mainly due to the increase in operating cash flow before working capital changes and the increase in asset sales this quarter, leading to a decrease in net investments;
  • 9,499 M$ for the full-year 2017 compared to -769 M$ in 2016, mainly due to the nearly 4 B$ increase in operating cash flow before working capital changes, the decrease in net investments related to the 3 B$ decrease in organic investments and the sale of Atotech.

> Return on equity

Return on equity for the twelve months ended December 31, 2017, was 10.1%, an increase compared to last year.

In millions of dollars  

January 1, 2017
December 31, 2017

 

October 1, 2016 to
September 30, 2017

 

January 1, 2016 to
December 31, 2016

Adjusted net income   10,762   10,244   8,447
Average adjusted shareholders' equity   106,078   105,130   96,929
Return on equity (ROE)   10.1%   9.7%   8.7%

Return on average capital employed increased to 9.4% in 2017 from 7.5% in 2016.

In millions of dollars  

January 1, 2017
December 31, 2017

 

October 1, 2016 to
September 30, 2017

 

January 1, 2016 to
December 31, 2016

Adjusted net operating income   11,958   11,298   9,274
Average captial employed   127,575   130,860   124,283
ROACE   9.4%   8.6%   7.5%

TOTAL S.A., parent company accounts

Net income for TOTAL S.A., the parent company, was €6,634 million in 2017 compared to €4,142 million in 2016, an increase due to a higher amount of dividends paid by affiliates of TOTAL S.A. to the parent company.

Proposed dividend

The Board of Directors met on February 7, 2018 and decided to propose to the Combined Shareholders’ Meeting, which will be held on June 1, 2018, an annual dividend of €2.48/share for 2017, a 1.2% increase compared to 2016. Given the three previous 2016 interim quarterly dividends of €0.62/share, a fourth quarter 2017 dividend of €0.62/share is therefore proposed.

The Board of Directors also decided to propose to the Combined Shareholders’ Meeting the alternative for shareholders to receive the fourth quarter 2017 dividend in cash or in new shares of the company without a discount. Subject to approval at the Combined Shareholders’ Meeting, the ex-dividend date for the fourth quarter dividend will be June 11, 2018, and the payment of the dividend in cash or the delivery of the shares issued in lieu of the dividend in cash is set for June 28, 2018.

2018 Sensitivities*

    Scenario   Change  

Estimated impact
on adjusted
net operating
income

 

 

Estimated
impact on
cash flow

Dollar   1.2 $/€   +/- 0.1 $ par €   -/+ 0.1 B$   ~0 B$
Brent   50 $/b   +/- 10 $/b   +/- 2.3 B$   +/- 2.8 B$
European refining margin indicator (ERMI)   35 $/t   +/- 10 $/t   +/- 0.5 B$   +/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2018. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals.

Summary and outlook

Since the end of 2017, Brent has been trading between 65-70 $/b, supported by strong demand (+1.6 Mb/d in 2017), the extended production cuts by OPEC and Russia and a decrease in crude oil inventories, which, nevertheless, remain higher than the past five-year average, which could contribute to continuing price volatility. The Group maintains its strategy to cut costs with the objective of achieving over 4 B$ of cost savings in 2018 and production costs of 5.5 $/boe for the year. Organic investments are projected at around 14 B$ in 2018, in line with the target of 13-15 B$.

In the Upstream, production is expected to increase by 6% in 2018, confirming the objective to grow by 5% per year on average between 2016 and 2022. As a result of this growth and the portfolio mix, the Group’s cash flow sensitivity to a 10 $/b change in the price of Brent increases to 2.8 B$ in 2018 from 2.5 B$ in 2017. The Group intends to take advantage of the favorable cost environment by continuing to launch projects in 2018. The growing demand for LNG supports the Group’s strategy to develop along the integrated gas value chain, as illustrated by the announced acquisition of Engie’s LNG portfolio.

In a context of sharply higher oil prices, rising refined product inventories, due to high global refining utilization rates, and seasonally weak winter demand, refining margins have decreased since December 2017. Despite the current weakness in refining margins, the Downstream is expected to generate 7 B$ of operating cash flow once again this year. Refining & Chemicals continues to expand its high-return integrated platforms notably in the United States and in Asia – Middle East. Marketing & Services continues to pursue its growth strategy in high-potential markets.

The Group’s pre-dividend organic breakeven is continuing to fall with an objective of $25/b in 2018.

After a period of heavy investment, the Group’s cash flow generation is growing strongly, driven by an increase in production that is at the best level among the majors. The Group has taken advantage of the low part of the oil price cycle to acquire high-quality resources at attractive prices and emerge stronger with better visibility on its cash flow generation and a net-debt-to-capital ratio below 20% 18 . In this context, the Board of Directors is proposing a shareholder return policy for the coming three years comprised of dividend increases and share buybacks.

-- -- --

To listen to the presentation by Chairman and CEO Patrick Pouyanné and CFO Patrick de La Chevardière’s today at 10:30 (London time) please log on to total.com or call +44 (0) 330 336 9411 in Europe or +1 720 543 0214 in the United States (code: 4126099). For a replay, please consult the website or call +44 (0) 207 660 0134 in Europe or +1 719 457 0820 in the United States (code: 4126099).

* * * * *

Operating information by segment

> Exploration & Production

4Q17

 

3Q17

 

4Q16

 

4Q17

 vs

4Q16

  Combined liquids and gas

production by region (kboe/d)

 

2017

 

2016

 

2017

 vs

2016

764   730   752   +2%   Europe and Central Asia   761   757   +1%
659 665 625 +5% Africa 654 634 +3%
595 592 503 +18% Middle East and North Africa 559 517 +8%
356 357 319 +11% Americas 348 279 +25%
239   237   263   -9%   Asia Pacific   244   265   -8%
2,613   2,581   2,462   +6%   Total production   2,566   2,452   +5%
656   659   561   +17%   including equity affiliates   639   600   +7%
           

 

               

4Q17

 

3Q17

 

4Q16

 

4Q17

 vs

4Q16

  Liquids production by region (kb/d)  

2017

 

2016

 

2017

 vs

2016

265 257 258 +3% Europe and Central Asia 265 249 +6%
501 517 483 +4% Africa 502 509 -1%
457 452 365 +25% Middle East and North Africa 419 373 +12%
137 138 121 +13% Americas 132 109 +20%
29   29   30   -2%   Asia Pacific   28   31   -7%
1,389   1,392   1,257   +11%   Total production   1,346   1,271   +6%
311   311   233   +34%   including equity affiliates   283   247   +15%
           

 

               

4Q17

 

3Q17

 

4Q16

 

4Q17

 vs

4Q16

  Gas production by region (Mcf/d)  

2017

 

2016

 

2017

 vs

2016

2,657 2,556 2,665 - Europe and Central Asia 2,672 2,737 -2%
980 663 710 +38% Africa 759 621 +22%
759 778 767 -1% Middle East and North Africa 772 795 -3%
1,225 1,228 1,108 +11% Americas 1,212 944 +28%
1,211   1,202   1,347   -10%   Asia Pacific   1,247   1,350   -8%
6,832   6,427   6,597   +4%   Total production   6,662   6,447   +3%
2,022   1,798   1,779   +14%   including equity affiliates   1,916   1,894   +1%
           

 

               

4Q17

 

3Q17

 

4Q16

 

4Q17

 vs

4Q16

  Liquefied natural gas  

2017

 

2016

 

2017

 vs

2016

2.67   2.95   2.75   -3%   LNG sales* (Mt)   11.23   10.99   +2%

* Sales, Group share, excluding trading; 2017 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2017 SEC coefficient.

> Downstream (Refining & Chemicals and Marketing & Services)

4Q17

  3Q17*  

4Q16

 

4Q17

 vs

4Q16

  Petroleum product sales by region (kb/d)**  

2017

 

2016

 

2017

 vs

2016

2,034   2,246   2,330   -13%   Europe   2,142   2,355   -9%
637 633 569 +12% Africa 604 551 +10%
479 537 313 +53% Americas 560 517 +8%
692   728   997   -31%   Rest of world   713   760   -6%
3,842   4,144   4,209   -9%   Total consolidated sales   4,019   4,183   -4%
587   583   678   -13%   Including bulk sales   581   700   -17%
1,434   1,754   1,723   -17%   Including trading   1,659   1,690   -2%

* 3Q17 data restated
**Includes share of TotalErg.

Adjustment items to net income (Group share)

Adjustments to net income (Group share)

4Q17

 

3Q17

 

3Q16

  In millions of dollars  

2017

 

2016

(2,218)   (123)   (2,133)   Special items affecting net income (Group share)   (2,213)   (2,567)
188   -   (45)   Gain (loss) on asset sales   2,452   267
(5) (2) (10) Restructuring charges (66) (32)
(2,060) (74) (1,886) Impairments (3,884) (2,097)
(341)   (47)   (192)   Other   (715)   (705)
354   183   262   After-tax inventory effect: FIFO vs. replacement cost   282   479
13   (10)   12   Effect of changes in fair value   (16)   (3)
                     
(1,851)   50   (1,859)   Total adjustments affecting net income   (1,947)   (2,091)

Investments - Divestments

4Q17

 

3Q17

 

4Q17

 vs

4Q16

  In millions of dollars  

2017

 

2016

 

2017

 vs

2016

3,060   4,728   -6%   Organic investments   14,395   17,484   -18%
161 119 +52% capitalized exploration 619 655 -5%
153 157 +32% increase in non-current loans 961 1,121 -14%
(337)   (511)   -32%   repayment of non-current loans   (1,025)   (1,013)   +1%
513   616   -49%   Acquisitions   1,476   2,033   -27%
202   416   x2,7   Asset sales   4,239   1,864   x2,3
(2)   -   ns   Other transactions with non-controlling interests   (4)   (104)   ns
3,373   4,928   -26%   Net investments   11,636   17,757   -34%

Net-debt-to-equity ratio

In millions of dollars   12/31/2017   9/30/2017   12/31/2016
Current borrowings   11,096   11,206   13,920
Net current financial assets (3,148) (2,306) (4,221)
Net financial assets classified as held for sale 0 (2) (140)
Non-current financial debt 41,340 40,226 43,067
Hedging instruments of non-current debt (679) (626) (908)
Cash and cash equivalents   (33,185)   (28,583)   (24,597)
Net debt   15,424   19,915   27,121
             
Shareholders’ equity - Group share   111,556   109,801   98,680
Estimated dividend payable   (1,874)   (1,826)   (1,581)
Non-controlling interests   2,481   2,799   2,894
Adjusted shareholders' equity   112,163   110,774   99,993
             
Net-debt-to-equity ratio   13.8%   18.0%   27.1%
             
Net-debt-to-capital ratio*   12.1%   15.2%   21.3%

* Net debt / (adjusted shareholders’ equity + net debt)

Return on average capital employed

> Full-year 2017

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

      Group
Adjusted net operating income   5,985   485   3,790   1,676 11,958
Capital employed at 12/31/2016* 107,617 4,976 11,618 5,884 127,423
Capital employed at 12/31/2017*   107,921   4,692   11,045   6,929 127,727
ROACE   5.6%   10.0%   33.4%   26.2% 9.4%

> Twelve months ended September 30, 2017

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

      Group
Adjusted net operating income   5,187   385   4,035   1,646 11,298
Capital employed at 6/30/2016* 109,210 6,058 12,034 5,704 130,535
Capital employed at 6/30/2017*   110,114   5,388   11,919   6,871 131,185
ROACE   4.7%   6.7%   33.7%   26.2% 8.6%

> Full-year 2016

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

      Group
Adjusted net operating income   3,217   439   4,195   1,559 9,274
Capital employed at 12/31/2015* 103,791 4,340 10,454 5,875 121,143
Capital employed at 12/31/2016*   107,617   4,975   11,618   5,884 127,423
ROACE   3.0%   9.4%   38.0%   26.5% 7.5%

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

This press release presents the results for the full-year 2017 from the consolidated financial statements of TOTAL S.A. as of December 31, 2017 (unaudited). The audit procedures by the Statutory Auditors are underway. This document does not constitute the Annual Financial Report (Rapport Financier Annuel) within the meaning of article L. 451-1-2 of the French monetary and financial Code (Code monétaire et financier).

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 Definitions on page 2.

2 Group share.

3 The ex-dividend date will be June 11, 2018, and the payment date will be set for June 28, 2018.

4 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 11.

5 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).

6 In accordance with IFRS norms, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the perpetual subordinated bond

7 Including acquisitions and increases in non-current loans.

8 Including divestments and reimbursements of non-current loans.

9 Net investments = investments - divestments - repayment of non-current loans - other operations with non-controlling interests.

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

11 Operating cash flow before working capital changes, previously referred to as adjusted cash flow from operations, is defined as cash flow from operating activities before changes in working capital at replacement cost. The inventory valuation effect is explained on page 14.

12 DACF = debt adjusted cash flow.

13 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.

14 FASB Accounting Standards Codification Topic 932, Extractive industries – Oil and Gas.

15 Details shown on page 11.

16 Details shown on page 11 and in the annex to the financial statements.

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

18 Excluding IFRS16 impact (under evaluation).

Total financial statements

Fourth quarter and full-year 2017 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME      
TOTAL
(unaudited)
 
(M$) (a)   4 th quarter

2017

  3 rd quarter

2017

  4 th quarter

2016

Sales 47,351 43,044 42,275
Excise taxes (5,909) (5,962) (5,408)
Revenues from sales 41,442 37,082 36,867
 
Purchases, net of inventory variation (27,659) (24,367) (23,967)
Other operating expenses (6,586) (6,108) (6,791)
Exploration costs (287) (181) (260)
Depreciation, depletion and impairment of tangible assets and mineral interests (5,691) (3,035) (4,939)
Other income 512 404 337
Other expense (570) (67) (473)
 
Financial interest on debt (352) (368) (299)
Financial income and expense from cash & cash equivalents (45) (45) (2)
Cost of net debt (397) (413) (301)
 
Other financial income 240 204 203
Other financial expense (159) (164) (161)
 
Net income (loss) from equity affiliates 657 500 409
 
Income taxes   (772)   (1,092)   (437)
Consolidated net income   730   2,763   487
Group share   1,021   2,724   548
Non-controlling interests   (291)   39   (61)
Earnings per share ($)   0.37   1.06   0.20
Fully-diluted earnings per share ($)   0.37   1.06   0.20
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
TOTAL
(unaudited)
 
(M$)   4 th quarter

2017

  3 rd quarter

2017

  4 th quarter

2016

Consolidated net income   730   2,763   487
Other comprehensive income
 
Actuarial gains and losses 794 (129) 205
Tax effect (373) 36 (64)
Currency translation adjustment generated by the parent company   1,432   2,420   (3,515)
Items not potentially reclassifiable to profit and loss   1,853   2,327   (3,374)
Currency translation adjustment (585) (575) 619
Available for sale financial assets 3 4 3
Cash flow hedge 174 116 94
Share of other comprehensive income of equity affiliates, net amount (5) (209) 458
Other - - 1
Tax effect   (49)   (42)   (32)
Items potentially reclassifiable to profit and loss   (462)   (706)   1,143
Total other comprehensive income (net amount)   1,391   1,621   (2,231)
             
Comprehensive income   2,121   4,384   (1,744)
Group share 2,385 4,346 (1,676)
Non-controlling interests (264) 38 (68)
CONSOLIDATED STATEMENT OF INCOME    
TOTAL
 
 
(M$) (a)   Year

2017

  Year

2016

Sales 171,493 149,743
Excise taxes (22,394) (21,818)
Revenues from sales 149,099 127,925
 
Purchases, net of inventory variation (99,411) (83,377)
Other operating expenses (24,966) (24,302)
Exploration costs (864) (1,264)
Depreciation, depletion and impairment of tangible assets and mineral interests (16,103) (13,523)
Other income 3,811 1,299
Other expense (1,034) (1,027)
 
Financial interest on debt (1,396) (1,108)
Financial income and expense from cash & cash equivalents (138) 4
Cost of net debt (1,534) (1,104)
 
Other financial income 957 971
Other financial expense (642) (636)
 
Net income (loss) from equity affiliates 2,015 2,214
 
Income taxes   (3,029)   (970)
Consolidated net income   8,299   6,206
Group share   8,631   6,196
Non-controlling interests   (332)   10
Earnings per share ($)   3.36   2.52
Fully-diluted earnings per share ($)   3.34   2.51
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME    
TOTAL
 
 
(M$)   Year

2017

  Year

2016

Consolidated net income   8,299   6,206
Other comprehensive income
 
Actuarial gains and losses 823 (371)
Tax effect (390) 55
Currency translation adjustment generated by the parent company   9,316   (1,548)
Items not potentially reclassifiable to profit and loss   9,749   (1,864)
Currency translation adjustment (2,578) (1,098)
Available for sale financial assets 7 4
Cash flow hedge 324 239
Share of other comprehensive income of equity affiliates, net amount (677) 935
Other - 1
Tax effect   (100)   (76)
Items potentially reclassifiable to profit and loss   (3,024)   5
Total other comprehensive income (net amount)   6,725   (1,859)
         
Comprehensive income   15,024   4,347
Group share 15,312 4,336
Non-controlling interests (288) 11
CONSOLIDATED BALANCE SHEET      
TOTAL
 
 
(M$)  

December 31,
2017

 

 

September 30,
2017

(unaudited)

 

December 31,
2016

 

ASSETS
 
Non-current assets
Intangible assets, net 14,587 14,891 15,362
Property, plant and equipment, net 109,397 113,491 111,971
Equity affiliates : investments and loans 22,103 22,130 20,576
Other investments 1,727 1,124 1,133
Non-current financial assets 679 626 908
Deferred income taxes 5,206 5,345 4,368
Other non-current assets   3,984   4,291   4,143
Total non-current assets   157,683   161,898   158,461
 
Current assets
Inventories, net 16,520 14,769 15,247
Accounts receivable, net 14,893 13,738 12,213
Other current assets 14,210 13,944 14,835
Current financial assets 3,393 2,579 4,548
Cash and cash equivalents 33,185 28,583 24,597
Assets classified as held for sale   2,747   997   1,077
Total current assets   84,948   74,610   72,517
Total assets 242,631 236,508 230,978
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
Shareholders' equity
Common shares 7,882 7,806 7,604
Paid-in surplus and retained earnings 112,040 111,128 105,547
Currency translation adjustment (7,908) (8,675) (13,871)
Treasury shares   (458)   (458)   (600)
Total shareholders' equity - Group share   111,556   109,801   98,680
Non-controlling interests   2,481   2,799   2,894
Total shareholders' equity   114,037   112,600   101,574
 
Non-current liabilities
Deferred income taxes 10,828 11,326 11,060
Employee benefits 3,735 4,384 3,746
Provisions and other non-current liabilities 15,986 17,140 16,846
Non-current financial debt   41,340   40,226   43,067
Total non-current liabilities   71,889   73,076   74,719
 
Current liabilities
Accounts payable 26,479 21,092 23,227
Other creditors and accrued liabilities 17,779 17,740 16,720
Current borrowings 11,096 11,206 13,920
Other current financial liabilities 245 273 327
Liabilities directly associated with the assets classified as held for sale   1,106   521   491
Total current liabilities   56,705   50,832   54,685
Total liabilities & shareholders' equity 242,631 236,508 230,978
CONSOLIDATED STATEMENT OF CASH FLOW      
TOTAL
(unaudited)
 
(M$)  

4 th quarter
2017

 

 

3 rd quarter
2017

 

 

4 th quarter
2016

 

CASH FLOW FROM OPERATING ACTIVITIES
 
Consolidated net income 730 2,763 487
Depreciation, depletion, amortization and impairment 5,857 3,164 5,030
Non-current liabilities, valuation allowances and deferred taxes (44) (93) (275)
(Gains) losses on disposals of assets (71) (144) 58
Undistributed affiliates' equity earnings (54) (110) 65
(Increase) decrease in working capital 2,206 (1,057) 1,913
Other changes, net   (9)   (160)   (260)
Cash flow from operating activities 8,615 4,363 7,018
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (4,662) (3,104) (5,742)
Acquisitions of subsidiaries, net of cash acquired (3) (472) 118
Investments in equity affiliates and other securities (231) (181) (74)
Increase in non-current loans   (207)   (153)   (157)
Total expenditures (5,103) (3,910) (5,855)
Proceeds from disposals of intangible assets and property, plant and equipment 901 55 413
Proceeds from disposals of subsidiaries, net of cash sold 213 - -
Proceeds from disposals of non-current investments 5 147 3
Repayment of non-current loans   348   337   511
Total divestments   1,467   539   927
Cash flow used in investing activities (3,636) (3,371) (4,928)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 33 65 60
- Treasury shares - - -
Dividends paid:
- Parent company shareholders (643) - (534)
- Non-controlling interests (54) (11) (16)
Issuance of perpetual subordinated notes - - 2,761
Payments on perpetual subordinated notes (57) - -
Other transactions with non-controlling interests (2) (2) -
Net issuance (repayment) of non-current debt 1,531 400 (105)
Increase (decrease) in current borrowings (878) (3,717) (335)
Increase (decrease) in current financial assets and liabilities (916) 1,182 (3,006)
Cash flow used in financing activities   (986)   (2,083)   (1,175)
Net increase (decrease) in cash and cash equivalents 3,993 (1,091) 915
Effect of exchange rates 609 954 (1,119)
Cash and cash equivalents at the beginning of the period   28,583   28,720   24,801
Cash and cash equivalents at the end of the period   33,185   28,583   24,597
CONSOLIDATED STATEMENT OF CASH FLOW    
TOTAL
 
 
(M$)   Year

2017

  Year

2016

CASH FLOW FROM OPERATING ACTIVITIES
 
Consolidated net income 8,299 6,206
Depreciation, depletion, amortization and impairment 16,611 14,423
Non-current liabilities, valuation allowances and deferred taxes (384) (1,559)
(Gains) losses on disposals of assets (2,598) (263)
Undistributed affiliates' equity earnings 42 (643)
(Increase) decrease in working capital 827 (1,119)
Other changes, net   (478)   (524)
Cash flow from operating activities 22,319 16,521
 
CASH FLOW USED IN INVESTING ACTIVITIES
 
Intangible assets and property, plant and equipment additions (13,767) (18,106)
Acquisitions of subsidiaries, net of cash acquired (800) (1,123)
Investments in equity affiliates and other securities (1,368) (180)
Increase in non-current loans   (961)   (1,121)
Total expenditures (16,896) (20,530)
Proceeds from disposals of intangible assets and property, plant and equipment 1,036 1,462
Proceeds from disposals of subsidiaries, net of cash sold 2,909 270
Proceeds from disposals of non-current investments 294 132
Repayment of non-current loans   1,025   1,013
Total divestments   5,264   2,877
Cash flow used in investing activities (11,632) (17,653)
 
CASH FLOW USED IN FINANCING ACTIVITIES
 
Issuance (repayment) of shares:
- Parent company shareholders 519 100
- Treasury shares - -
Dividends paid:
- Parent company shareholders (2,643) (2,661)
- Non-controlling interests (141) (93)
Issuance of perpetual subordinated notes - 4,711
Payments on perpetual subordinated notes (276) (133)
Other transactions with non-controlling interests (4) (104)
Net issuance (repayment) of non-current debt 2,277 3,576
Increase (decrease) in current borrowings (7,175) (3,260)
Increase (decrease) in current financial assets and liabilities 1,903 1,396
Cash flow used in financing activities   (5,540)   3,532
Net increase (decrease) in cash and cash equivalents 5,147 2,400
Effect of exchange rates 3,441 (1,072)
Cash and cash equivalents at the beginning of the period   24,597   23,269
Cash and cash equivalents at the end of the period   33,185   24,597
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL                  
                                     

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, 2016   2,440,057,883   7,670   101,528   (12,119)   (113,967,758)   (4,585)   92,494   2,915   95,409
Net income 2016 - - 6,196 - - - 6,196 10 6,206
Other comprehensive Income - - (108) (1,752) - - (1,860) 1 (1,859)
Comprehensive Income - - 6,088 (1,752) - - 4,336 11 4,347
Dividend - - (6,512) - - - (6,512) (93) (6,605)
Issuance of common shares 90,639,247 251 3,553 - - - 3,804 - 3,804
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (163) - 3,048,668 163 - - -
Share-based payments - - 112 - - - 112 - 112
Share cancellation (100,331,268) (317) (3,505) - 100,331,268 3,822 - - -
Other operations with non-controlling interests - - (98) - - - (98) (43) (141)
Other items - - 36 - - - 36 104 140
As of December 31, 2016   2,430,365,862   7,604   105,547   (13,871)   (10,587,822)   (600)   98,680   2,894   101,574
Net income 2017 - - 8,631 - - - 8,631 (332) 8,299
Other comprehensive Income - - 718 5,963 - - 6,681 44 6,725
Comprehensive Income - - 9,349 5,963 - - 15,312 (288) 15,024
Dividend - - (6,992) - - - (6,992) (141) (7,133)
Issuance of common shares 98,623,754 278 4,431 - - - 4,709 - 4,709
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (142) - 2,211,066 142 - - -
Share-based payments - - 151 - - - 151 - 151
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (302) - - - (302) - (302)
Other operations with non-controlling interests - - (8) - - - (8) 4 (4)
Other items - - 6 - - - 6 12 18
As of December 31, 2017   2,528,989,616   7,882   112,040   (7,908)   (8,376,756)   (458)   111,556   2,481   114,037
 
(1) Treasury shares related to the restricted stock grants.
BUSINESS SEGMENT INFORMATION              
TOTAL
(unaudited)
                             
4 th quarter 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,185 4,083 20,661 20,419 3 - 47,351
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,394 27,723 15,545 93 (15,004) 41,442
Operating expenses (3,806) (4,385) (26,191) (14,849) (305) 15,004 (34,532)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,890)   (319)   (284)   (185)   (13)   -   (5,691)
Operating income (5) (310) 1,248 511 (225) - 1,219
Net income (loss) from equity affiliates and other items 348 51 199 76 6 - 680
Tax on net operating income   (537)   (86)   (67)   (157)   55   -   (792)
Net operating income (194) (345) 1,380 430 (164) - 1,107
Net cost of net debt (377)
Non-controlling interests                           291
Net income - group share 1,021
                             
4 th quarter 2017 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - 21 - - - - 21
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 21 - - - - 21
Operating expenses - (243) 355 33 - - 145
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,382)   (266)   (3)   (10)   -   -   (2,661)
Operating income (b) (2,382) (488) 352 23 - - (2,495)
Net income (loss) from equity affiliates and other items (112) (22) 9 (19) - - (144)
Tax on net operating income   495   (67)   133   (10)   (136)   -   415
Net operating income (b) (1,999) (577) 494 (6) (136) - (2,224)
Net cost of net debt (8)
Non-controlling interests                           381
Net income - group share (1,851)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 423 31 -
On net operating income - - 354 11 -
                             
4 th quarter 2017 (adjusted)

(M$) (a)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,185 4,062 20,661 20,419 3 - 47,330
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,373 27,723 15,545 93 (15,004) 41,421
Operating expenses (3,806) (4,142) (26,546) (14,882) (305) 15,004 (34,677)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,508)   (53)   (281)   (175)   (13)   -   (3,030)
Adjusted operating income 2,377 178 896 488 (225) - 3,714
Net income (loss) from equity affiliates and other items 460 73 190 95 6 - 824
Tax on net operating income   (1,032)   (19)   (200)   (147)   191   -   (1,207)
Adjusted net operating income 1,805 232 886 436 (28) - 3,331
Net cost of net debt (369)
Non-controlling interests                           (90)
Adjusted net income - group share                           2,872
Adjusted fully-diluted earnings per share ($)                           1.10
(a) Except for earnings per share.
                             
4 th quarter 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 3,490 306 710 570 27 - 5,103
Total divestments 1,334 46 36 45 6 - 1,467
Cash flow from operating activities   3,826   657   3,041   992   99   -   8,615
BUSINESS SEGMENT INFORMATION              
TOTAL
(unaudited)
                             
3 rd quarter 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,121 2,903 18,923 19,086 11 - 43,044
Intersegment sales 5,665 286 6,592 207 89 (12,839) -
Excise taxes   -   -   (799)   (5,163)   -   -   (5,962)
Revenues from sales 7,786 3,189 24,716 14,130 100 (12,839) 37,082
Operating expenses (3,632) (3,117) (23,110) (13,386) (250) 12,839 (30,656)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,548)   (51)   (258)   (170)   (8)   -   (3,035)
Operating income 1,606 21 1,348 574 (158) - 3,391
Net income (loss) from equity affiliates and other items 521 12 179 133 32 - 877
Tax on net operating income   (745)   7   (379)   (173)   100   -   (1,190)
Net operating income 1,382 40 1,148 534 (26) - 3,078
Net cost of net debt (315)
Non-controlling interests                           (39)
Net income - group share 2,724
                             
3 rd quarter 2017 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - (14) - - - - (14)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (14) - - - - (14)
Operating expenses (2) (32) 166 51 - - 183
Depreciation, depletion and impairment of tangible assets and mineral interests   (57)   -   -   -   -   -   (57)
Operating income (b) (59) (46) 166 51 - - 112
Net income (loss) from equity affiliates and other items (2) (15) 12 (5) - - (10)
Tax on net operating income   4   4   (50)   (18)   -   -   (60)
Net operating income (b) (57) (57) 128 28 - - 42
Net cost of net debt (7)
Non-controlling interests                           15
Net income - group share 50
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 210 51 -
On net operating income - - 156 36 -
                             
3 rd 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
Net income (loss) from equity affiliates and other items 523 27 167 138 32 - 887
Tax on net operating income   (749)   3   (329)   (155)   100   -   (1,130)
Adjusted net operating income 1,439 97 1,020 506 (26) - 3,036
Net cost of net debt (308)
Non-controlling interests                           (54)
Adjusted net income - group share                           2,674
Adjusted fully-diluted earnings per share ($)                           1.04
(a) Except for earnings per share.
                             
3 rd 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
BUSINESS SEGMENT INFORMATION              
TOTAL
(unaudited)
                             
4 th quarter 2016

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,066 3,675 19,077 17,454 3 - 42,275
Intersegment sales 5,187 306 6,707 257 82 (12,539) -
Excise taxes   -   -   (784)   (4,624)   -   -   (5,408)
Revenues from sales 7,253 3,981 25,000 13,087 85 (12,539) 36,867
Operating expenses (3,724) (3,847) (23,155) (12,535) (296) 12,539 (31,018)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,329)   (193)   (252)   (154)   (11)   -   (4,939)
Operating income (800) (59) 1,593 398 (222) - 910
Net income (loss) from equity affiliates and other items 25 (50) 162 41 137 - 315
Tax on net operating income   (53)   (5)   (392)   (132)   77   -   (505)
Net operating income (828) (114) 1,363 307 (8) - 720
Net cost of net debt (233)
Non-controlling interests                           61
Net income - group share 548
                             
4 th quarter 2016 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - 17 - - - - 17
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 17 - - - - 17
Operating expenses - (64) 379 (116) - - 199
Depreciation, depletion and impairment of tangible assets and mineral interests   (1,889)   (139)   -   (1)   -   -   (2,029)
Operating income (b) (1,889) (186) 379 (117) - - (1,813)
Net income (loss) from equity affiliates and other items (406) (59) (32) (20) (4) - (521)
Tax on net operating income   460   (1)   (115)   38   1   -   383
Net operating income (b) (1,835) (246) 232 (99) (3) - (1,951)
Net cost of net debt (6)
Non-controlling interests                           98
Net income - group share (1,859)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 380 (33) -
On net operating income - - 281 (14) -
                             
4 th quarter 2016 (adjusted)

(M$) (a)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 2,066 3,658 19,077 17,454 3 - 42,258
Intersegment sales 5,187 306 6,707 257 82 (12,539) -
Excise taxes   -   -   (784)   (4,624)   -   -   (5,408)
Revenues from sales 7,253 3,964 25,000 13,087 85 (12,539) 36,850
Operating expenses (3,724) (3,783) (23,534) (12,419) (296) 12,539 (31,217)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,440)   (54)   (252)   (153)   (11)   -   (2,910)
Adjusted operating income 1,089 127 1,214 515 (222) - 2,723
Net income (loss) from equity affiliates and other items 431 9 194 61 141 - 836
Tax on net operating income   (513)   (4)   (277)   (170)   76   -   (888)
Adjusted net operating income 1,007 132 1,131 406 (5) - 2,671
Net cost of net debt (227)
Non-controlling interests                           (37)
Adjusted net income - group share                           2,407
Adjusted fully-diluted earnings per share ($)                           0.96
(a) Except for earnings per share.
                             
4 th quarter 2016

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 4,833 (118) 566 500 74 - 5,855
Total divestments 818 29 15 65 - - 927
Cash flow from operating activities   4,039   732   1,746   340   161   -   7,018
BUSINESS SEGMENT INFORMATION              
TOTAL
 
                             
Year 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 8,477 12,854 75,505 74,634 23 - 171,493
Intersegment sales 22,837 1,180 26,844 857 374 (52,092) -
Excise taxes   -   -   (3,008)   (19,386)   -   -   (22,394)
Revenues from sales 31,314 14,034 99,341 56,105 397 (52,092) 149,099
Operating expenses (14,672) (13,828) (94,097) (53,629) (1,107) 52,092 (125,241)
Depreciation, depletion and impairment of tangible assets and mineral interests   (13,850)   (482)   (1,074)   (657)   (40)   -   (16,103)
Operating income 2,792 (276) 4,170 1,819 (750) - 7,755
Net income (loss) from equity affiliates and other items 1,546 31 2,979 497 54 - 5,107
Tax on net operating income   (2,233)   (140)   (944)   (561)   540   -   (3,338)
Net operating income 2,105 (385) 6,205 1,755 (156) - 9,524
Net cost of net debt (1,225)
Non-controlling interests                           332
Net income - group share 8,631
                             
Year 2017 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - (20) - - - - (20)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (20) - - - - (20)
Operating expenses (119) (389) 167 (11) (64) - (416)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,308)   (291)   (53)   (10)   -   -   (4,662)
Operating income (b) (4,427) (700) 114 (21) (64) - (5,098)
Net income (loss) from equity affiliates and other items (328) (116) 2,177 102 - - 1,835
Tax on net operating income   875   (54)   124   (2)   (114)   -   829
Net operating income (b) (3,880) (870) 2,415 79 (178) - (2,434)
Net cost of net debt - - - - - - (29)
Non-controlling interests   -   -   -   -   -   -   516
Net income - group share - - - - - - (1,947)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 344 13 -
On net operating income - - 298 (3) -
                             
Year 2017 (adjusted)

(M$) (a)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 8,477 12,874 75,505 74,634 23 - 171,513
Intersegment sales 22,837 1,180 26,844 857 374 (52,092) -
Excise taxes   -   -   (3,008)   (19,386)   -   -   (22,394)
Revenues from sales 31,314 14,054 99,341 56,105 397 (52,092) 149,119
Operating expenses (14,553) (13,439) (94,264) (53,618) (1,043) 52,092 (124,825)
Depreciation, depletion and impairment of tangible assets and mineral interests   (9,542)   (191)   (1,021)   (647)   (40)   -   (11,441)
Adjusted operating income 7,219 424 4,056 1,840 (686) - 12,853
Net income (loss) from equity affiliates and other items 1,874 147 802 395 54 - 3,272
Tax on net operating income   (3,108)   (86)   (1,068)   (559)   654   -   (4,167)
Adjusted net operating income 5,985 485 3,790 1,676 22 - 11,958
Net cost of net debt (1,196)
Non-controlling interests                           (184)
Adjusted net income - group share                           10,578
Adjusted fully-diluted earnings per share ($)                           4.12
(a) Except for earnings per share.
                             
Year 2017

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 12,802 797 1,734 1,457 106 - 16,896
Total divestments 1,918 73 2,820 413 40 - 5,264
Cash flow from operating activities   11,459   993   7,440   2,130   297   -   22,319
BUSINESS SEGMENT INFORMATION              
TOTAL
 
                             
Year 2016

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 7,629 10,124 65,632 66,351 7 - 149,743
Intersegment sales 17,759 1,009 21,467 744 307 (41,286) -
Excise taxes   -   -   (3,544)   (18,274)   -   -   (21,818)
Revenues from sales 25,388 11,133 83,555 48,821 314 (41,286) 127,925
Operating expenses (14,236) (10,993) (77,562) (46,432) (1,006) 41,286 (108,943)
Depreciation, depletion and impairment of tangible assets and mineral interests   (11,583)   (301)   (1,002)   (600)   (37)   -   (13,523)
Operating income (431) (161) 4,991 1,789 (729) - 5,459
Net income (loss) from equity affiliates and other items 1,375 71 779 170 426 - 2,821
Tax on net operating income   401   (4)   (1,244)   (541)   164   -   (1,224)
Net operating income 1,345 (94) 4,526 1,418 (139) - 7,056
Net cost of net debt (850)
Non-controlling interests                           (10)
Net income - group share 6,196
                             
Year 2016 (adjustments) (a)

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales - (231) - - - - (231)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (231) - - - - (231)
Operating expenses (691) (79) 625 (136) - - (281)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,089)   (139)   -   (1)   -   -   (2,229)
Operating income (b) (2,780) (449) 625 (137) - - (2,741)
Net income (loss) from equity affiliates and other items (200) (135) (93) (40) (4) - (472)
Tax on net operating income   1,108   51   (201)   36   1   -   995
Net operating income (b) (1,872) (533) 331 (141) (3) - (2,218)
Net cost of net debt (23)
Non-controlling interests                           150
Net income - group share (2,091)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

 

 

 

 

 

 

On operating income - - 695 (43) -
On net operating income - - 500 (13) -
                             
Year 2016 (adjusted)

(M$) (a)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Non-Group sales 7,629 10,355 65,632 66,351 7 - 149,974
Intersegment sales 17,759 1,009 21,467 744 307 (41,286) -
Excise taxes   -   -   (3,544)   (18,274)   -   -   (21,818)
Revenues from sales 25,388 11,364 83,555 48,821 314 (41,286) 128,156
Operating expenses (13,545) (10,914) (78,187) (46,296) (1,006) 41,286 (108,662)
Depreciation, depletion and impairment of tangible assets and mineral interests   (9,494)   (162)   (1,002)   (599)   (37)   -   (11,294)
Adjusted operating income 2,349 288 4,366 1,926 (729) - 8,200
Net income (loss) from equity affiliates and other items 1,575 206 872 210 430 - 3,293
Tax on net operating income   (707)   (55)   (1,043)   (577)   163   -   (2,219)
Adjusted net operating income 3,217 439 4,195 1,559 (136) - 9,274
Net cost of net debt (827)
Non-controlling interests                           (160)
Adjusted net income - group share                           8,287
Adjusted fully-diluted earnings per share ($)                           3.38
(a) Except for earnings per share.
                             
Year 2016

(M$)

  Exploration & Production   Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Corporate   Intercompany   Total
Total expenditures 16,085 1,221 1,861 1,245 118 - 20,530
Total divestments 2,187 166 88 424 12 - 2,877
Cash flow from operating activities   9,010   538   4,585   1,754   634   -   16,521
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
(unaudited)
 
4 th quarter 2017

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 47,330 21 47,351
Excise taxes (5,909) - (5,909)
Revenues from sales 41,421 21 41,442
 
Purchases, net of inventory variation (28,020) 361 (27,659)
Other operating expenses (6,370) (216) (6,586)
Exploration costs (287) - (287)
Depreciation, depletion and impairment of tangible assets and mineral interests (3,030) (2,661) (5,691)
Other income 220 292 512
Other expense (208) (362) (570)
 
Financial interest on debt (344) (8) (352)
Financial income and expense from cash & cash equivalents (45) - (45)
Cost of net debt (389) (8) (397)
 
Other financial income 240 - 240
Other financial expense (159) - (159)
 
Net income (loss) from equity affiliates 731 (74) 657
 
Income taxes   (1,187)   415   (772)
Consolidated net income 2,962 (2,232) 730
Group share 2,872 (1,851) 1,021
Non-controlling interests 90 (381) (291)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
4 th quarter 2016

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 42,258 17 42,275
Excise taxes (5,408) - (5,408)
Revenues from sales 36,850 17 36,867
 
Purchases, net of inventory variation (24,253) 286 (23,967)
Other operating expenses (6,704) (87) (6,791)
Exploration costs (260) - (260)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,910) (2,029) (4,939)
Other income 337 - 337
Other expense (263) (210) (473)
 
Financial interest on debt (293) (6) (299)
Financial income and expense from cash & cash equivalents (2) - (2)
Cost of net debt (295) (6) (301)
 
Other financial income 203 - 203
Other financial expense (161) - (161)
 
Net income (loss) from equity affiliates 720 (311) 409
 
Income taxes   (820)   383   (437)
Consolidated net income 2,444 (1,957) 487
Group share 2,407 (1,859) 548
Non-controlling interests 37 (98) (61)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
Reconciliation of the information by business segment with consolidated financial statements
TOTAL      
 
 
Year 2017

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 171,513 (20) 171,493
Excise taxes (22,394) - (22,394)
Revenues from sales 149,119 (20) 149,099
 
Purchases, net of inventory variation (99,534) 123 (99,411)
Other operating expenses (24,427) (539) (24,966)
Exploration costs (864) - (864)
Depreciation, depletion and impairment of tangible assets and mineral interests (11,441) (4,662) (16,103)
Other income 772 3,039 3,811
Other expense (389) (645) (1,034)
 
Financial interest on debt (1,367) (29) (1,396)
Financial income and expense from cash & cash equivalents (138) - (138)
Cost of net debt (1,505) (29) (1,534)
 
Other financial income 957 - 957
Other financial expense (642) - (642)
 
Net income (loss) from equity affiliates 2,574 (559) 2,015
 
Income taxes   (3,858)   829   (3,029)
Consolidated net income 10,762 (2,463) 8,299
Group share 10,578 (1,947) 8,631
Non-controlling interests 184 (516) (332)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
Year 2016

(M$)

  Adjusted   Adjustments (a)   Consolidated statement of income
Sales 149,974 (231) 149,743
Excise taxes (21,818) - (21,818)
Revenues from sales 128,156 (231) 127,925
 
Purchases, net of inventory variation (83,916) 539 (83,377)
Other operating expenses (23,832) (470) (24,302)
Exploration costs (914) (350) (1,264)
Depreciation, depletion and impairment of tangible assets and mineral interests (11,294) (2,229) (13,523)
Other income 964 335 1,299
Other expense (537) (490) (1,027)
 
Financial interest on debt (1,085) (23) (1,108)
Financial income and expense from cash & cash equivalents 4 - 4
Cost of net debt (1,081) (23) (1,104)
 
Other financial income 971 - 971
Other financial expense (636) - (636)
 
Net income (loss) from equity affiliates 2,531 (317) 2,214
 
Income taxes   (1,965)   995   (970)
Consolidated net income 8,447 (2,241) 6,206
Group share 8,287 (2,091) 6,196
Non-controlling interests 160 (150) 10
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

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