Total: Second Quarter and First Half 2019 Results1

PARIS--()-- 

  2Q19 Change
vs 2Q18
1H19 Change
vs 1H18
         
Adjusted net income (Group share)  

- in billions of dollars (B$)

2.9

-19%

5.6

-12%

- in dollars per share

1.05

-20%

2.07

-14%

 

 

 

 

 

DACF1 (B$)

7.2

+6%

13.7

+10%

Cash Flow from operations (B$)

6.3

-

9.9

+19%

         
       
Net income (Group share) of 2.8 B$ in 2Q19, a 26% decrease compared to 2Q18  
Net-debt-to-capital ratio of 20.6% at June 30, 2019  
Hydrocarbon production of 2,957 kboe/d in 2Q19, an increase of 9% compared to 2Q18  
Ex-dividend date for second 2019 interim dividend of 0.66 €/share on January 06, 2020  

Total’s (Paris:FP) (LSE:TTA) (NYSE:TOT) Board of Directors met on July 24, 2019, to approve the Group’s second quarter 2019 financial statements. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

“Markets remained volatile with Brent averaging $69/b in the second quarter, an increase of 9% compared to the previous quarter, but natural gas prices were down 36% in Europe and 26% in Asia. In this context, with a slight increase in production to 2.96 Mboe/d, adjusted net income increased by 5% compared to the previous quarter to 2.9 B$, and the return on equity remained above 11%.
Fueled by the ramp up of cash flow accretive projects, like Egina in Nigeria, Ichthys in Australia and Kaombo Norte in Angola, plus the second-quarter start-ups of Kaombo Sul in Angola and Culzean in the UK North Sea, debt-adjusted cash flow (DACF) increased by 10% compared to the previous quarter to 7.2 B$. Cash flow after organic investments increased to 3.7 B$, up 13% from the previous quarter. Thus, the organic pre-dividend breakeven is below $25/b and the organic post-dividend breakeven is below $50/b.
Exploration & Production benefited from the higher Brent with a 15% increase in operating cash flow before working capital changes.
Although gas prices fell sharply, iGRP increased its operating cash flow before working capital changes by 42% thanks to 8% production growth and a 10% increase in LNG sales. Compared to the second quarter 2018, operating cash flow before working capital changes increased by 77%, driven by a doubling of LNG sales.
In signing an agreement with Occidental to acquire Anadarko’s assets in Africa, the Group is preparing for its future and capitalizing on its strengths. In Mozambique, it leverages its expertise in LNG, in Ghana, the deep offshore and, in Algeria, its historic presence. The Group continues to grow in LNG with the signing of a sales contract with the Chinese company Guanghui, the takeover of Toshiba’s LNG portfolio and the start-up of Cameron LNG in the United States. This strategy is complemented by the divestment of high-breakeven assets, such as the recent sale of mature assets in the UK North Sea. This active portfolio management policy will continue with the sale of 5 B$ of assets over the 2019-20 period, the majority coming from Exploration & Production.
In the Downstream, adjusted net operating income was 1.1 B$, up 4% compared to the previous quarter, in an environment where refining margins fell by 16%. In addition, the Group strengthened its presence in biofuels with the start-up of the La Mède bio-refinery.
Total maintains a solid financial position with gearing of 20.6%, after taking into account the payment of two interim dividends in the quarter and the impact of the new IFRS 16 standard (2.7%). Consistent with its shareholder return policy, the Group increased the second interim dividend by 3.1% compared to last year to €0.66 per share and bought back 0.76 B$ as part of its target to buy back 1.5 B$ of share in 2019 with Brent at $60/b. The cash returned to shareholders, expressed in dollars, stands at 37% of operating cash flow before working capital changes for the first half 2019.”

Key figures2

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars, except effective tax rate,
earnings per share and number of shares
1H19 1H18 1H19
 vs
1H18

3,589

3,413

4,179

-14%

Adjusted net operating income from business segments

7,002

7,564

-7%

2,022

1,722

2,315

-13%

Exploration & Production**

3,744

4,132

-9%

429

592

565

-24%

Integrated Gas, Renewables & Power**

1,021

1,046

-2%

715

756

821

-13%

Refining & Chemicals

1,471

1,541

-5%

423

343

478

-12%

Marketing & Services

766

845

-9%

457

614

766

-40%

Contribution of equity affiliates to adjusted net income

1,071

1,403

-24%

33.0%

40.5%

38.6%

 

Group effective tax rate3

36.9%

39.2%

 

2,887

2,759

3,553

-19%

Adjusted net income (Group share)

5,646

6,437

-12%

1.05

1.02

1.31

-20%

Adjusted fully-diluted earnings per share (dollars)4

2.07

2.41

-14%

0.94

0.90

1.10

-15%

Adjusted fully-diluted earnings per share (euros)*

1.84

1.99

-8%

2,625

2,620

2,646

-1%

Fully-diluted weighted-average shares (millions)

2,622

2,608

+1%

 

 

 

 

 

 

 

2,756

3,111

3,721

-26%

Net income (Group share)

5,867

6,357

-8%

 

 

 

 

 

 

 

3,028

2,784

2,780

+9%

Organic investments5

5,811

5,400

+8%

402

306

(267)

ns

Net acquisitions6

709

1,252

-43%

3,430

3,090

2,513

+36%

Net investments7 

6,520

6,652

-2%

6,707

6,033

6,399

+5%

Operating cash flow
before working capital changes8

12,740

11,769

+8%

7,208

6,536

6,797

+6%

Operating cash flow before working capital changes w/o financial charges (DACF)9

13,744

12,465

+10%

6,251

3,629

6,246

-

Cash flow from operations

9,880

8,327

+19%

2019 data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
* Average €-$ exchange rate: 1.1237 in the second quarter 2019 and 1.1298 in the first half 2019.
** 2Q18 and 1H18 restated; historical data for 2017 and 2018 available on www.total.com.

Highlights since the beginning of the second quarter 201910

  • Signed agreement with Occidental to acquire the African assets of Anadarko for 8.8 B$
  • Sold mature fields in the UK North Sea for 0.6 B$
  • Started production at Kaombo Sul in Angola
  • Started production at Culzean in the UK North Sea
  • Launched the second development phase for the giant Mero field in Brazil
  • Launched the third development phase of the Dunga field in Kazakhstan
  • Started production at Cameron LNG in the United States
  • Agreed with Toshiba to take over its LNG portfolio, including a 20-year 2.2 Mt/y tolling agreement for the third train at Freeport LNG in the United States
  • Started up the biorefinery at La Mède in France
  • Started up second solar plant in Japan

Key figures of environment and Group production

> Environment* – liquids and gas price realizations**, refining margins

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
  1H19 1H18 1H19
 vs
1H18

68.9

63.1

74.4

-7%

Brent ($/b)

66.0

70.6

-7%

2.5

2.9

2.8

-11%

Henry Hub ($/Mbtu)

2.7

2.8

-5%

4.1

6.3

7.2

-44%

NBP ($/Mbtu)

5.2

7.2

-27%

4.9

6.6

8.8

-44%

JKM ($/Mbtu)

5.8

9.1

-37%

63.7

58.7

68.4

-7%

Average price of liquids ($/b)**

61.2

64.7

-5%

3.82

4.51

4.62

-17%

Average price of gas ($/Mbtu)**

4.16

4.71

-12%

 

 

 

 

 

 

27.6

33.0

33.9

-19%

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

30.6

31.7

-4%

* The indicators are shown on page 14.
** Consolidated subsidiaries.

> Production*

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
  1H19 1H18 1H19
 vs
1H18

2,957

2,946

2,717

+9%

Hydrocarbon production (kboe/d)

2,951

2,710

+9%

1,407

1,425

1,400

+1%

Oil (including bitumen) (kb/d)

1,416

1,349

+5%

1,549

1,521

1,317

+18%

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

1,535

1,361

+13%

 

 

 

 

 

 

 

 

2,957

2,946

2,717

+9%

Hydrocarbon production (kboe/d)

2,951

2,710

+9%

1,624

1,629

1,582

+3%

Liquids (kb/d)

1,627

1,532

+6%

7,477

7,321

6,176

+21%

Gas (Mcf/d)

7,399

6,419

+15%

* Group production = EP production + iGRP production.

Hydrocarbon production was 2,957 thousand barrels of oil equivalent per day (kboe/d) in second quarter 2019, an increase of 9% compared to last year, due to:

  • +13% related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria,
  • -3% due to the natural decline of the fields,
  • -1% due to maintenance, notably in Nigeria.

Hydrocarbon production was 2,951 thousand barrels of oil equivalent per day (kboe/d) in first half 2019, an increase of 9% compared to last year, due to:

  • +12% related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria,
  • +1% due to portfolio effect, notably the integration of the Maersk Oil assets,
  • -3% due to the natural decline of the fields,
  • -1% due to maintenance, notably in Nigeria.

     

Analysis of business segments

Exploration & Production (EP – redefined scope)

> Production

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
Hydrocarbon production 1H19 1H18 1H19
 vs
1H18

2,398

2,428

2,375

+1%

EP (kboe/d)

2,413

2,367

+2%

1,551

1,563

1,544

-

Liquids (kb/d)

1,557

1,495

+4%

4,629

4,707

4,536

+2%

Gas (Mcf/d)

4,668

4,755

-2%

> Results

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars, except effective tax rate 1H19 1H18 1H19
 vs
1H18

2,022

1,722

2,315

-13%

Adjusted net operating income*

3,744

4,132

-9%

239

213

327

-27%

including income from equity affiliates

452

555

-19%

39.5%

48.6%

46.6%

 

Effective tax rate**

44.0%

47.5%

 

 

 

 

 

 

 

 

1,995

1,958

1,785

+12%

Organic investments

3,953

3,583

+10%

204

38

361

-44%

Net acquisitions

242

1,932

-87%

2,199

1,996

2,146

+2%

Net investments 

4,195

5,515

-24%

 

 

 

 

 

 

 

 

4,882

4,246

4,800

+2%

Operating cash flow before working capital changes ***

9,128

8,721

+5%

3,768

3,936

4,474

-16%

Cash flow from operations ***

7,704

7,796

-1%

* 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).
*** Excluding financial charges, except those related to leases.

Exploration & Production adjusted net operating income was:

  • 2,022 M$ in the second quarter 2019, a decrease of 13% year-on-year, reflecting lower Brent and natural gas prices.
  • 3,744 M$ in the first half 2019, a decrease of 9%, for the same reasons as well as the higher exploration expenses in the first quarter 2019.

Operating cash flow before working capital changes, compared to last year, increased by 2% in the second quarter to 4.9 B$ and by 5% in the first half to 9.1 B$, driven by the start-up of strong cash generating fields. Exploration & Production generated cash flow after organic investments of 2.9 B$ in the second quarter of 2019 and 5.2 B$ in the first half 2019.

Integrated Gas, Renewables & Power (iGRP)

> Production and liquefied natural gas (LNG) sales

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
Hydrocarbon production (kboe/d) 1H19 1H18 1H19
 vs
1H18

559

518

342

+63%

iGRP (kboe/d)

538

343

+57%

73

66

38

+92%

Liquids (kb/d)

70

37

+87%

2,848

2,614

1,640

+74%

Gas (Mcf/d)

2,731

1,664

+64%

 

 

 

 

 

 

 

2Q19

1Q19

2Q18

2Q19
 vs
2Q18

Liquefied Natural Gas in Mt

1H19

1H18

1H19
 vs
1H18

8.5

7.7

3.9

x2.2

Overall LNG sales

16.2

7.7

x2.1

4.1

3.8

2.5

+65%

incl. Sales from equity production*

7.9

5.0

+59%

6.7

6.0

2.7

x2.5

incl. Sales by Total from equity production and third party purchases

12.7

5.4

x2.4

* The Group's equity production may be sold by Total or by the joint ventures.

Total LNG sales more than doubled compared to last year for the second quarter and first half 2019 thanks to the start-up of Yamal LNG trains 2 and 3 in Russia, Ichthys LNG in Australia, the first Cameron LNG train in the United States, and the acquisition of the portfolio of LNG contracts from Engie in 2018.

The growth in condensate production compared to last year is essentially due to the start-up of condensate production from Ichthys in Australia in the third quarter 2018.

> Results

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

429

592

565

-24%

Adjusted net operating income*

1,021

1,046

-2%

195

255

250

-22%

including income from equity affiliates

450

478

-6%

 

 

 

 

 

 

 

 

442

493

388

+14%

Organic investments

935

724

+29%

159

400

(380)

ns

Net acquisitions

559

(294)

ns

601

893

8

x75.1

Net investments

1,494

430

x3.5

 

 

 

 

 

 

 

 

869

610

492

+77%

Operating cash flow before working capital changes **

1,479

885

+67%

641

892

258

x2.5

Cash flow from operations **

1,533

326

x4.7

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

Operating cash flow before working capital changes for the iGRP segment increased by 77% in the second quarter 2019 and 67% in the first half 2019, thanks notably to the ramp-ups of Ichthys in Australia and Yamal LNG in Russia as well as the doubling of total LNG sales.
Adjusted net operating income was 429 M$ in the second quarter 2019 and 1,021 M$ in the first half 2019, a decrease of 24% and 2%, respectively, compared to last year, impacted by lower gas prices in Europe and Asia in particular and the amortization of new projects.

Downstream (Refining & Chemicals and Marketing & Services)

> Results

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

1,138

1,099

1,299

-12%

Adjusted net operating income*

2,237

2,386

-6%

 

 

 

 

 

 

 

557

319

591

-6%

Organic investments

876

1,036

-15%

38

(131)

(246)

ns

Net acquisitions

(93)

(384)

ns

595

188

345

+72%

Net investments

783

652

+20%

 

 

 

 

 

 

 

 

1,432

1,686

1,664

-14%

Operating cash flow before working capital changes **

3,118

3,014

+3%

2,269

(306)

1,840

+23%

Cash flow from operations **

1,963

671

x2.9

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

Refining & Chemicals

> Refinery throughput and utilization rates*

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
  1H19 1H18 1H19
 vs
1H18

1,595

1,862

1,734

-8%

Total refinery throughput (kb/d)

1,729

1,783

-3%

447

592

569

-21%

France

520

597

-13%

679

823

670

+1%

Rest of Europe

751

708

+6%

469

447

495

-5%

Rest of world

458

479

-4%

77%

89%

83%

 

Utlization rate based on crude only**

83%

85%

 

* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.

Refinery throughput volumes:

  • decreased by 8% in the second quarter 2019 year-on-year, notably as a result of the shutdown at Grandpuit in France and the lower throughput at Leuna in Germany linked to contaminated crude from Russia.
  • decreased by 3% in the first half 2019 year-on-year for the same reasons.

> Results

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

715

756

821

-13%

Adjusted net operating income*

1,471

1,541

-5%

 

 

 

 

 

 

 

353

240

386

-9%

Organic investments

593

694

-15%

(58)

(124)

(306)

ns

Net acquisitions

(182)

(307)

ns

295

116

80

x3.7

Net investments

411

387

+6%

 

 

 

 

 

 

 

 

806

1,104

1,018

-21%

Operating cash flow before working capital changes **

1,910

1,938

-1%

1,658

(538)

999

+66%

Cash flow from operations **

1,120

(110)

ns

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.

Adjusted net operating income for the Refining & Chemicals segment decreased by 13% year-on-year to 715 M$ in the second quarter 2019 and by 5% in the first half 2019 to 1,471 M$, notably due to the decrease in European refining variable cost margin (VCM) of 19% and 4%, respectively, as well as lower throughput volume.

Operating cash flow before working capital changes was stable in the first half 2019 compared to the first half 2018.

Marketing & Services

> Petroleum product sales

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
Sales in kb/d* 1H19 1H18 1H19
 vs
1H18

1,860

1,836

1,799

+3%

Total Marketing & Services sales

1,848

1,800

+3%

1,004

1,012

1,001

-

Europe

1,008

997

+1%

856

824

798

+7%

Rest of world

840

803

+5%

* Excludes trading and bulk refining sales

Sales of petroleum products increased by 3% in the second quarter 2019 and the first half 2019, due to the development of activities in the African and American regions, notably Mexico and Brazil.

> Results

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

423

343

478

-12%

Adjusted net operating income*

766

845

-9%

 

 

 

 

 

 

 

204

80

205

-1%

Organic investments

283

342

-17%

96

(8)

60

+61%

Net acquisitions

89

(77)

ns

300

72

265

+13%

Net investments

372

265

+40%

 

 

 

 

 

 

 

 

626

582

646

-3%

Operating cash flow before working capital changes **

1,208

1,076

+12%

611

232

841

-27%

Cash flow from operations **

843

781

+8%

* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases

Adjusted net operating income was 423 M$ in the second quarter 2019 and 766 M$ in the first half 2019, down 12% and 9% year-on-year.
Operating cash flow before working capital changes increased by 12% in the first half 2019 compared to the first half 2018.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was:

  • 3,589 M$ in the second quarter 2019, down 14% compared to last year due to lower Brent and natural gas prices.
  • 7,002 M$ in the first half 2019, down 7% compared to last year for the same reasons.

> Adjusted net income (Group share)

Adjusted net income (Group share) was:

  • 2,887 M$ in the second quarter 2019, down 19% compared to last year. This decrease reflects the decrease in the net operating income of the segments and the increase in the net cost of net debt compared to a year ago mainly due to the rise in U.S. dollar interest rates.
  • 5,646 M$ in the first half 2019, down 12% compared to last year for the same reasons.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value11.

Total net income adjustments12 were:

  • -131 M$ in the second quarter 2019.
  • 221 M$ in the first half 2019.

The effective tax rate for the Group was:

  • 33.0% in the second quarter 2019, compared to 38.6% the same quarter last year.
  • 36.9% in the first half 2019, compared to 39.2% the first half 2018.

> Adjusted fully-diluted earnings per share

Adjusted earnings per share was:

  • $1.05 in the second quarter 2019, a decrease of 20%, calculated on the basis of a weighted average of 2,625 million fully-diluted shares, compared to $1.31 in the second quarter 2018.
  • $2.07 in the first half 2019, a decrease of 14%, calculated on the basis of a weighted average of 2,622 million fully-diluted shares, compared to $2.41 in the first half 2018.

In the context of the shareholder return policy announced in February 2018, the Group has continued to buy back shares, including:

  • the buyback of shares issued in 2019 under the scrip dividend option (not renewed at the 2019 General Assembly) to cancel any dilution related to the exercise of this option: 14.9 million shares repurchased in the second quarter 2019 and 16.1 million shares in the first half 2019
  • the buyback of additional shares: 7.5 million shares repurchased in the second quarter 2019 for 0.41 B$ and 13.7 million shares in the first half 2019 for 0.76 B$ as part of the 5 B$ buyback program for 2018-20

The number of fully-diluted shares was 2,619 million on June 30, 2019.

> Asset sales – acquisitions

Asset sales were:

  • 212 M$ in the second quarter 2019, linked notably to the sale of the interest in the Wepec refinery in China.
  • 575 M$ in the first half 2019, linked notably to the sale of the interest in the Wepec refinery in China and the sale of the Group’s interest in the Hazira terminal in India and polystyrene activities in China.

Acquisitions were:

  • 614 M$ in the second quarter 2019, linked notably to the acquisition of Chevron’s interest in the Danish Underground Consortium in Denmark, the joint development with Saudi Aramco of a network of service stations in Saudi Arabia, the alliance with the Adani group in the natural gas and retail fuel network in India and the capital increase in Total Eren for its acquisition of Novenergia.
  • 1,284 M$ in the first half 2019, linked notably to the elements above as well as to the signing of the acquisition of a 10% stake in the Arctic LNG 2 project in Russia.

> Net cash flow

Net cash flow13 for the Group was:

  • 3,277 M$ in the second quarter 2019, a 16% decrease compared to last year due to an increase in net acquisitions.
  • 6,220 M$ in the first half 2019, a 22% increase compared to last year due to higher operating cash flow before working capital changes and lower net acquisitions.

> Profitability

The return on equity was 11.1% for the twelve months ended June 30, 2019, an increase compared to the same period last year.

In millions of dollars July 1, 2018 April 1, 2018 July 1, 2017
June 30, 2019 March 31, 2019 June 30, 2018
Adjusted net income

13,125

13,810

12,299

Average adjusted shareholders' equity

117,787

118,094

113,251

Return on equity (ROE)

11.1%

11.7%

10.9%

The return on average capital employed was 10.4% for the twelve months ended June 30, 2019, an increase compared to the same period last year.

In millions of dollars July 1, 2018 April 1, 2018 July 1, 2017
June 30, 2019 March 31, 2019 June 30, 2018
Adjusted net operating income

15,087

15,697

13,748

Average capital employed

145,247

146,210

136,355

ROACE

10.4%

10.7%

10.1%

Total S.A. accounts
Net income for Total S.A., the parent company, was 6,282 million euros in the first half 2019, compared to 4,079 million euros a year ago.

2019 Sensitivities*

  Change Estimated impact on
adjusted
net operating income
Estimated impact on
cash flow from
operations
Dollar 

+/- 0.1 $ per €

-/+ 0.1 B$

~0 B$

Average liquids price**

+/- 10 $/b

+/- 2.7 B$

+/- 3.2 B$

Variable cost margin, European refining (VCM)

+/- 10 $/t

+/- 0.5 B$

+/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2019. 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.
** In a 60 $/b Brent environment.

Summary and outlook

Since the start of the third quarter 2019, Brent has traded above $60/b in a context of renewed OPEC+ quotas and uncertainties about the evolution of production in Libya, Venezuela and Iran. The environment remains volatile, with uncertainty about hydrocarbon demand growth related to the outlook for global economic growth.

The Group maintains its spending discipline in 2019 with an organic investment target of around 14 B$ and an average production cost of $5.5/boe. The organic pre-dividend cash flow breakeven will remain below $30/b.

Production growth should exceed 9% in 2019, thanks to the ramp-up of projects started in 2018 and the start-ups in the first half 2019 of Kaombo Sul in Angola and Culzean in the UK North Sea, as well as the upcoming Johan Sverdrup in Norway and Iara 1 in Brazil. The Group will continue to take advantage of the favorable cost environment to sanction new projects, notably Arctic LNG 2 and Lapa 3.

At the start of the third quarter, European refining margins, while still volatile, increased, and the Downstream should benefit from restarting the Grandpuit refinery in France and the Leuna refinery in Germany.

In this context, the Group is continuing to implement its shareholder return policy. The dividend in euro will be increased by 3.1% in 2019 representing a total increase of 6.5% since 2017, in line with the target increase of 10% over the period 2018-2020. Total will buy back 1.5 B$ of shares in 2019 at $60/b as part of its 5 B$ share buyback program over the 2018-2020 period.

* * * * *

To listen to the presentation by CEO Patrick Pouyanné, CFO Patrick de La Chevardière and Deputy CFO Jean-Pierre Sbraire today at 13:00 (London time) please log on to total.com or call +44 (0) 207 192 8000 in Europe or +1 631 510 7495 in the United States (code: 6785179). To listen to the replay, please consult the website or call +44 (0) 333 300 9785 in Europe or +1 917 677 7532 in the United States (code: 6785179).

* * * * *

Operating information by segment

> Group production (Exploration & Production + iGRP)

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
Combined liquids and gas
production by region (kboe/d)
1H19 1H18 1H19
 vs
1H18

997

990

842

+18%

Europe and Central Asia

993

864

+15%

686

697

672

+2%

Africa

691

673

+3%

703

686

681

+3%

Middle East and North Africa

695

660

+5%

358

373

401

-11%

Americas

365

386

-5%

214

201

121

+76%

Asia-Pacific

207

128

+62%

2,957

2,946

2,717

+9%

Total production

2,951

2,710

+9%

750

709

616

+22%

includes equity affiliates

730

670

+9%

 

 

 

 

 

 

 

2Q19

1Q19

2Q18

2Q19
 vs
2Q18

Liquids production by region (kb/d)

1H19

1H18

1H19
 vs
1H18

328

352

332

-1%

Europe and Central Asia

340

315

+8%

549

540

511

+7%

Africa

545

507

+7%

546

522

539

+1%

Middle East and North Africa

534

520

+3%

160

177

190

-16%

Americas

168

177

-5%

41

39

11

x3.8

Asia-Pacific

40

12

x3.4

1,624

1,629

1,582

+3%

Total production

1,627

1,532

+6%

225

217

233

-3%

includes equity affiliates

221

268

-18%

 

 

 

 

 

 

 

2Q19

1Q19

2Q18

2Q19
 vs
2Q18

Gas production by region (Mcf/d)

1H19

1H18

1H19
 vs
1H18

3,639

3,426

2,754

+32%

Europe and Central Asia

3,532

2,954

+20%

703

792

772

-9%

Africa

748

815

-8%

866

905

787

+10%

Middle East and North Africa

885

774

+14%

1,107

1,101

1,192

-7%

Americas

1,104

1,175

-6%

1,162

1,097

671

+73%

Asia-Pacific

1,130

701

+61%

7,477

7,321

6,176

+21%

Total production

7,399

6,419

+15%

2,868

2,653

2,026

+42%

includes equity affiliates

2,761

2,141

+29%

> Downstream (Refining & Chemicals and Marketing & Services)

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
Petroleum product sales by region (kb/d) 1H19 1H18 1H19
 vs
1H18

2,018

2,022

1,942

+4%

Europe

2,020

1,922

+5%

751

658

652

+15%

Africa

705

703

-

846

839

802

+6%

Americas

842

781

+8%

536

616

644

-17%

Rest of world

576

662

-13%

4,152

4,135

4,040

+3%

Total consolidated sales

4,143

4,068

+2%

535

557

556

-4%

Includes bulk sales

546

563

-3%

1,757

1,742

1,685

+4%

Includes trading

1,749

1,705

+3%

Adjustment items to net income (Group share)

2Q19 1Q19 2Q18 In millions of dollars 1H19 1H18

(56)

(14)

(358)

Special items affecting net income (Group share)

(70)

(553)

-

-

(2)

Gain (loss) on asset sales

-

(103)

(31)

(2)

(46)

Restructuring charges

(33)

(67)

(57)

-

(236)

Impairments

(57)

(248)

32

(12)

(74)

Other

20

(135)

(28)

388

517

After-tax inventory effect : FIFO vs. replacement cost

360

472

(47)

(22)

9

Effect of changes in fair value

(69)

1

 

 

 

 

 

 

(131)

352

168

Total adjustments affecting net income

221

(80)

Investments - Divestments

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

3,028

2,784

2,780

+9%

Organic investments ( a )

5,811

5,400

+8%

185

232

137

+35%

capitalized exploration

417

248

+68%

370

130

140

x2.6

increase in non-current loans

500

311

+61%

(254)

(134)

(581)

ns

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

(388)

(997)

ns

614

669

426

+44%

Acquisitions ( b )

1,284

4,114

-69%

212

363

693

-69%

Asset sales ( c )

575

2,862

-80%

-

-

-

ns

Other transactions with non-controlling interests (d)

-

-

ns

3,430

3,090

2,513

+36%

Net investments ( a + b - c - d )

6,520

6,652

-2%

(99)

 

 

ns

Organic loan repayment from equity affiliates* ( e )

(99)

 

ns

3,331

3,090

2,513

+33%

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

6,421

6,652

-3%

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

Cash flow

2Q19 1Q19 2Q18 2Q19
 vs
2Q18
In millions of dollars 1H19 1H18 1H19
 vs
1H18

7,208

6,536

6,797

+6%

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

13,744

12,465

+10%

(501)

(503)

(398)

ns

Financial charges

(1,004)

(696)

ns

6,707

6,033

6,399

+5%

Operating cash flow before working capital changes ( a )

12,740

11,769

+8%

(317)

(2,970)

(856)

ns

(Increase) decrease in working capital

(3,287)

(4,078)

ns

(40)

566

703

ns

Inventory effect

526

636

-17%

(99)

 

 

 

Organic loan repayment from equity affiliates

(99)

 

 

6,251

3,629

6,246

-

Cash flow from operations

9,880

8,327

+19%

 

 

 

 

 

 

 

3,028

2,784

2,780

+9%

Organic investments ( b )

5,811

5,400

+8%

3,679

3,249

3,619

+2%

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

6,929

6,369

+9%

 

 

 

 

 

 

 

3,430

3,090

2,513

+36%

Net investments ( c )

6,520

6,652

-2%

3,277

2,943

3,886

-16%

Net cash flow ( a - c )

6,220

5,117

+22%

Gearing ratio*

In millions of dollars 06/30/2019 03/31/2019 06/30/2018
Current borrowings

16,221

13,906

15,659

Net current financial assets

(3,110)

(2,722)

(2,806)

Net financial assets classified as held for sale

-

227

-

Non-current financial debt

45,394

44,396

38,362

Hedging instruments of non-current debt

(771)

(637)

(967)

Cash and cash equivalents

(26,723)

(25,432)

(26,475)

Net debt (a)

31,011

29,738

23,773

 

 

 

Shareholders’ equity - Group share

116,862

117,993

117,975

Non-controlling interests

2,362

2,365

2,288

Shareholders' equity (b)

119,224

120,358

120,263

 

 

 

 

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

20.6%

19.8%

16.5%

*The net-debt-to-capital ratios on March 31, 2019 and June 30, 2019 include the impact of the new IFRS 16 rule, effective January 1, 2019.

Return on average capital employed

> Twelve months ended June 30, 2019

In millions of dollars Exploration &
Production
Integrated Gas,
Renewables & Power
Refining &
Chemicals
Marketing &
Services
Group
Adjusted net operating income

8,159

2,394

3,309

1,573

 

15,087

Capital employed at 06/30/2018*

92,296

30,861

12,939

7,040

 

141,878

Capital employed at 06/30/2019*

90,633

37,290

12,300

8,535

 

148,617

ROACE

8.9%

7.0%

26.2%

20.2%

 

10.4%

> Twelve months ended March 31, 2019

In millions of dollars Exploration &
Production
Integrated Gas,
Renewables &
Power
Refining &
Chemicals
Marketing &
Services
Group
Adjusted net operating income

8,452

2,530

3,415

1,628

 

15,697

Capital employed at 03/31/2018*

93,276

30,996

13,428

7,409

 

143,957

Capital employed at 03/31/2019*

90,051

37,235

13,153

8,255

 

148,463

ROACE

9.2%

7.4%

25.7%

20.8%

 

10.7%

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

This document does not constitute the Financial Report for the first half of 2019 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 and half-year 2019 from the consolidated financial statements of TOTAL S.A. as of June 30, 2019). The limited review procedures by the Statutory Auditors are underway. 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, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, changes in regulations including environmental and climate, currency fluctuations, as well as economic and political developments and changes in 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 Group’s business, financial condition, including its operating income and cash flow, reputation or outlook 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. In addition to IFRS measures, certain alternative performance indicators are presented, such as performance indicators excluding the adjustment items described below (adjusted operating income, adjusted net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE), gearing ratio and operating cash flow before working capital changes. These indicators are meant to facilitate the analysis of the financial performance of TOTAL and the comparison of income between periods. They allow investors to track the measures used internally to manage and measure the performance of the Group.

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 for the fully adjusted-diluted earnings per share 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.

Total financial statements
Second quarter and first half 2019 consolidated accounts, IFRS

 

CONSOLIDATED STATEMENT OF INCOME

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

 

2nd quarter

 

1st quarter

 

2nd quarter

(M$)(a)

2019

 

2019

 

2018

 

 

 

 

 

 

 

Sales

51,242

 

51,205

 

52,540

Excise taxes

(6,040)

 

(6,081)

 

(6,438)

 

Revenues from sales

45,202

 

45,124

 

46,102

 

 

 

 

 

 

 

Purchases, net of inventory variation

(30,390)

 

(29,721)

 

(30,599)

Other operating expenses

(7,078)

 

(6,725)

 

(6,761)

Exploration costs

(170)

 

(288)

 

(158)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,661)

 

(3,466)

 

(3,435)

Other income

321

 

247

 

252

Other expense

(189)

 

(209)

 

(413)

 

 

 

 

 

 

 

Financial interest on debt

(568)

 

(561)

 

(478)

Financial income and expense from cash & cash equivalents

(42)

 

(28)

 

(54)

 

Cost of net debt

(610)

 

(589)

 

(532)

 

 

 

 

 

 

 

Other financial income

326

 

160

 

321

Other financial expense

(188)

 

(195)

 

(159)

 

 

 

 

 

 

 

Net income (loss) from equity affiliates

812

 

711

 

1,103

 

 

 

 

 

 

 

Income taxes

(1,571)

 

(1,909)

 

(2,087)

Consolidated net income

2,804

 

3,140

 

3,634

Group share

2,756

 

3,111

 

3,721

Non-controlling interests

48

 

29

 

(87)

Earnings per share ($)

1.01

 

1.17

 

1.38

Fully-diluted earnings per share ($)

1.00

 

1.16

 

1.38

(a) Except for per share amounts.

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

2nd quarter

 

1st quarter

 

2nd quarter

(M$)

2019

 

2019

 

2018

Consolidated net income

2,804

 

3,140

 

3,634

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

Actuarial gains and losses

(223)

 

164

 

42

Change in fair value of investments in equity instruments

74

 

33

 

(2)

Tax effect

59

 

(45)

 

(20)

Currency translation adjustment generated by the parent company

1,057

 

(1,531)

 

(4,761)

Items not potentially reclassifiable to profit and loss

967

 

(1,379)

 

(4,741)

Currency translation adjustment

(619)

 

806

 

1,330

Cash flow hedge

(246)

 

(127)

 

77

Variation of foreign currency basis spread

43

 

11

 

2

Share of other comprehensive income of equity affiliates, net amount

(135)

 

388

 

36

Other

1

 

1

 

(2)

Tax effect

69

 

38

 

(27)

Items potentially reclassifiable to profit and loss

(887)

 

1,117

 

1,416

Total other comprehensive income (net amount)

80

 

(262)

 

(3,325)

 

 

 

 

 

 

Comprehensive income

2,884

 

2,878

 

309

Group share

2,797

 

2,840

 

450

Non-controlling interests

87

 

38

 

(141)

CONSOLIDATED STATEMENT OF INCOME

TOTAL

 

 

 

(unaudited)

 

 

 

 

1st half

 

1st half

(M$)(a)

2019

 

2018

 

 

 

 

 

Sales

102,447

 

102,151

Excise taxes

(12,121)

 

(12,757)

 

Revenues from sales

90,326

 

89,394

 

 

 

 

 

Purchases, net of inventory variation

(60,111)

 

(60,045)

Other operating expenses

(13,803)

 

(13,698)

Exploration costs

(458)

 

(362)

Depreciation, depletion and impairment of tangible assets and mineral interests

(7,127)

 

(6,351)

Other income

568

 

775

Other expense

(398)

 

(603)

 

 

 

 

 

Financial interest on debt

(1,129)

 

(868)

Financial income and expense from cash & cash equivalents

(70)

 

(95)

 

Cost of net debt

(1,199)

 

(963)

 

 

 

 

 

Other financial income

486

 

561

Other financial expense

(383)

 

(329)

 

 

 

 

 

Net income (loss) from equity affiliates

1,523

 

1,587

 

 

 

 

 

Income taxes

(3,480)

 

(3,683)

Consolidated net income

5,944

 

6,283

Group share

5,867

 

6,357

Non-controlling interests

77

 

(74)

Earnings per share ($)

2.17

 

2.39

Fully-diluted earnings per share ($)

2.16

 

2.38

(a) Except for per share amounts.

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

 

 

 

(unaudited)

 

1st half

 

1st half

(M$)

2019

 

2018

Consolidated net income

5,944

 

6,283

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Actuarial gains and losses

(59)

 

67

Change in fair value of investments in equity instruments

107

 

5

Tax effect

14

 

(18)

Currency translation adjustment generated by the parent company

(474)

 

(2,630)

Items not potentially reclassifiable to profit and loss

(412)

 

(2,576)

Currency translation adjustment

187

 

968

Cash flow hedge

(373)

 

255

Variation of foreign currency basis spread

54

 

(27)

Share of other comprehensive income of equity affiliates, net amount

253

 

(132)

Other

2

 

(2)

Tax effect

107

 

(75)

Items potentially reclassifiable to profit and loss

230

 

987

Total other comprehensive income (net amount)

(182)

 

(1,589)

 

 

 

 

Comprehensive income

5,762

 

4,694

Group share

5,637

 

4,806

Non-controlling interests

125

 

(112)

CONSOLIDATED BALANCE SHEET

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

June 30,
2018

(M$)

(unaudited)

 

(unaudited)

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Intangible assets, net

29,229

 

28,727

 

28,922

 

24,562

Property, plant and equipment, net

118,063

 

117,881

 

113,324

 

114,047

Equity affiliates : investments and loans

26,473

 

25,996

 

23,444

 

22,443

Other investments

1,660

 

1,468

 

1,421

 

1,396

Non-current financial assets

771

 

637

 

680

 

967

Deferred income taxes

6,022

 

6,246

 

6,663

 

5,348

Other non-current assets

2,306

 

2,156

 

2,509

 

3,384

Total non-current assets

184,524

 

183,111

 

176,963

 

172,147

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventories, net

16,410

 

17,075

 

14,880

 

18,392

Accounts receivable, net

20,349

 

19,321

 

17,270

 

16,974

Other current assets

15,958

 

16,237

 

14,724

 

14,408

Current financial assets

3,536

 

3,373

 

3,654

 

3,609

Cash and cash equivalents

26,723

 

25,432

 

27,907

 

26,475

Assets classified as held for sale

-

 

314

 

1,364

 

-

Total current assets

82,976

 

81,752

 

79,799

 

79,858

Total assets

267,500

 

264,863

 

256,762

 

252,005

 

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Common shares

8,301

 

8,231

 

8,227

 

8,305

Paid-in surplus and retained earnings

123,351

 

123,702

 

120,569

 

121,896

Currency translation adjustment

(11,177)

 

(11,606)

 

(11,313)

 

(9,764)

Treasury shares

(3,613)

 

(2,334)

 

(1,843)

 

(2,462)

Total shareholders' equity - Group share

116,862

 

117,993

 

115,640

 

117,975

Non-controlling interests

2,362

 

2,365

 

2,474

 

2,288

Total shareholders' equity

119,224

 

120,358

 

118,114

 

120,263

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Deferred income taxes

11,486

 

11,339

 

11,490

 

11,969

Employee benefits

3,375

 

3,150

 

3,363

 

3,329

Provisions and other non-current liabilities

21,629

 

21,020

 

21,432

 

18,807

Non-current financial debt

45,394

 

44,396

 

40,129

 

38,362

Total non-current liabilities

81,884

 

79,905

 

76,414

 

72,467

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

27,059

 

26,416

 

26,134

 

25,021

Other creditors and accrued liabilities

22,686

 

23,361

 

22,246

 

17,792

Current borrowings

16,221

 

13,906

 

13,306

 

15,659

Other current financial liabilities

426

 

651

 

478

 

803

Liabilities directly associated with the assets classified as held for sale

-

 

266

 

70

 

-

Total current liabilities

66,392

 

64,600

 

62,234

 

59,275

Total liabilities & shareholders' equity

267,500

 

264,863

 

256,762

 

252,005

CONSOLIDATED STATEMENT OF CASH FLOW

 

 

 

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

2nd quarter

 

1st quarter

 

2nd quarter

(M$)

2019

 

2019

 

2018

 

 

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

2,804

 

3,140

 

3,634

Depreciation, depletion, amortization and impairment

3,819

 

3,716

 

3,508

Non-current liabilities, valuation allowances and deferred taxes

239

 

140

 

35

(Gains) losses on disposals of assets

(191)

 

(173)

 

(148)

Undistributed affiliates' equity earnings

(168)

 

(306)

 

(298)

(Increase) decrease in working capital

(317)

 

(2,970)

 

(856)

Other changes, net

65

 

82

 

371

Cash flow from operating activities

6,251

 

3,629

 

6,246

 

 

 

 

 

 

CASH FLOW USED IN INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Intangible assets and property, plant and equipment additions

(2,881)

 

(2,704)

 

(3,513)

Acquisitions of subsidiaries, net of cash acquired

(208)

 

-

 

12

Investments in equity affiliates and other securities

(437)

 

(753)

 

(146)

Increase in non-current loans

(370)

 

(130)

 

(140)

Total expenditures

(3,896)

 

(3,587)

 

(3,787)

Proceeds from disposals of intangible assets and property, plant and equipment

155

 

8

 

304

Proceeds from disposals of subsidiaries, net of cash sold

(1)

 

147

 

(7)

Proceeds from disposals of non-current investments

58

 

208

 

396

Repayment of non-current loans

353

 

134

 

581

Total divestments

565

 

497

 

1,274

Cash flow used in investing activities

(3,331)

 

(3,090)

 

(2,513)

 

 

 

 

 

 

CASH FLOW USED IN FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Issuance (repayment) of shares:

 

 

 

 

 

   - Parent company shareholders

449

 

1

 

473

   - Treasury shares

(1,279)

 

(491)

 

(1,182)

Dividends paid:

 

 

 

 

 

   - Parent company shareholders

(2,935)

 

(1,830)

 

(2,692)

   - Non-controlling interests

(93)

 

-

 

(72)

Net issuance (repayment) of perpetual subordinated notes

-

 

-

 

-

Payments on perpetual subordinated notes

(175)

 

(140)

 

(116)

Other transactions with non-controlling interests

-

 

(150)

 

-

Net issuance (repayment) of non-current debt

2,331

 

1,250

 

52

Increase (decrease) in current borrowings

37

 

(1,526)

 

(738)

Increase (decrease) in current financial assets and liabilities

(164)

 

106

 

(1,779)

Cash flow used in financing activities

(1,829)

 

(2,780)

 

(6,054)

Net increase (decrease) in cash and cash equivalents

1,091

 

(2,241)

 

(2,321)

Effect of exchange rates

200

 

(234)

 

(1,296)

Cash and cash equivalents at the beginning of the period

25,432

 

27,907

 

30,092

Cash and cash equivalents at the end of the period

26,723

 

25,432

 

26,475

CONSOLIDATED STATEMENT OF CASH FLOW

 

 

 

TOTAL

 

 

 

(unaudited)

 

1st half

 

1st half

(M$)

2019

 

2018

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Consolidated net income

5,944

 

6,283

Depreciation, depletion, amortization and impairment

7,535

 

6,554

Non-current liabilities, valuation allowances and deferred taxes

379

 

149

(Gains) losses on disposals of assets

(364)

 

(273)

Undistributed affiliates' equity earnings

(474)

 

(557)

(Increase) decrease in working capital

(3,287)

 

(4,078)

Other changes, net

147

 

249

Cash flow from operating activities

9,880

 

8,327

 

 

 

 

CASH FLOW USED IN INVESTING ACTIVITIES

 

 

 

 

 

 

 

Intangible assets and property, plant and equipment additions

(5,585)

 

(9,178)

Acquisitions of subsidiaries, net of cash acquired

(208)

 

(714)

Investments in equity affiliates and other securities

(1,190)

 

(308)

Increase in non-current loans

(500)

 

(311)

Total expenditures

(7,483)

 

(10,511)

Proceeds from disposals of intangible assets and property, plant and equipment

163

 

2,282

Proceeds from disposals of subsidiaries, net of cash sold

146

 

(4)

Proceeds from disposals of non-current investments

266

 

584

Repayment of non-current loans

487

 

997

Total divestments

1,062

 

3,859

Cash flow used in investing activities

(6,421)

 

(6,652)

 

 

 

 

CASH FLOW USED IN FINANCING ACTIVITIES

 

 

 

 

 

 

 

Issuance (repayment) of shares:

 

 

 

   - Parent company shareholders

450

 

482

   - Treasury shares

(1,770)

 

(1,740)

Dividends paid:

 

 

 

   - Parent company shareholders

(4,765)

 

(4,208)

   - Non-controlling interests

(93)

 

(84)

Net issuance (repayment) of perpetual subordinated notes

-

 

-

Payments on perpetual subordinated notes

(315)

 

(266)

Other transactions with non-controlling interests

(150)

 

-

Net issuance (repayment) of non-current debt

3,581

 

(2,428)

Increase (decrease) in current borrowings

(1,489)

 

969

Increase (decrease) in current financial assets and liabilities

(58)

 

(624)

Cash flow used in financing activities

(4,609)

 

(7,899)

Net increase (decrease) in cash and cash equivalents

(1,150)

 

(6,224)

Effect of exchange rates

(34)

 

(486)

Cash and cash equivalents at the beginning of the period

27,907

 

33,185

Cash and cash equivalents at the end of the period

26,723

 

26,475

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, 2018

2,528,989,616

7,882

112,040

(7,908)

 

(8,376,756)

(458)

 

111,556

2,481

 

114,037

 Net income of the first half  2018

-

-

6,357

-

 

-

-

 

6,357

(74)

 

6,283

 Other comprehensive income

-

-

305

(1,856)

 

-

-

 

(1,551)

(38)

 

(1,589)

 Comprehensive income

-

-

6,662

(1,856)

 

-

-

 

4,806

(112)

 

4,694

 Dividend

-

-

(4,070)

-

 

-

-

 

(4,070)

(84)

 

(4,154)

 Issuance of common shares

136,887,716

423

7,270

-

 

-

-

 

7,693

-

 

7,693

 Purchase of treasury shares

-

-

-

-

 

(33,056,514)

(2,004)

 

(2,004)

-

 

(2,004)

 Sale of treasury shares(a)

-

-

-

-

 

3,450

-

 

-

-

 

-

 Share-based payments

-

-

192

-

 

-

-

 

192

-

 

192

 Share cancellation

-

-

-

-

 

-

-

 

-

-

 

-

 Net issuance (repayment) of perpetual subordinated notes

-

-

-

-

 

-

-

 

-

-

 

-

 Payments on perpetual subordinated notes

-

-

(161)

-

 

-

-

 

(161)

-

 

(161)

 Other operations with

 non-controlling interests

-

-

(4)

-

 

-

-

 

(4)

4

 

-

 Other items

-

-

(33)

-

 

-

-

 

(33)

(1)

 

(34)

As of June 30,  2018

2,665,877,332

8,305

121,896

(9,764)

 

(41,429,820)

(2,462)

 

117,975

2,288

 

120,263

 Net income of the second half 2018

-

-

5,089

-

 

-

-

 

5,089

178

 

5,267

 Other comprehensive income

-

-

(325)

(1,549)

 

-

-

 

(1,874)

(31)

 

(1,905)

 Comprehensive income

-

-

4,764

(1,549)

 

-

-

 

3,215

147

 

3,362

 Dividend

-

-

(3,811)

-

 

-

-

 

(3,811)

(13)

 

(3,824)

 Issuance of common shares

19,315,374

53

1,096

-

 

-

-

 

1,149

-

 

1,149

 Purchase of treasury shares

-

-

-

-

 

(39,709,967)

(2,324)

 

(2,324)

-

 

(2,324)

 Sale of treasury shares(a)

-

-

(240)

-

 

4,075,807

240

 

-

-

 

-

 Share-based payments

-

-

102

-

 

-

-

 

102

-

 

102

 Share cancellation

(44,590,699)

(131)

(2,572)

-

 

44,590,699

2,703

 

-

-

 

-

 Net issuance (repayment) of perpetual subordinated notes

-

-

-

-

 

-

-

 

-

-

 

-

 Payments on perpetual subordinated notes

-

-

(154)

-

 

-

-

 

(154)

-

 

(154)

 Other operations with

 non-controlling interests

-

-

(513)

-

 

-

-

 

(513)

(103)

 

(616)

 Other items

-

-

1

-

 

-

-

 

1

155

 

156

As of December 31, 2018

2,640,602,007

8,227

120,569

(11,313)

 

(32,473,281)

(1,843)

 

115,640

2,474

 

118,114

 Net income of the first half 2019

-

-

5,867

-

 

-

-

 

5,867

77

 

5,944

 Other comprehensive income

-

-

(366)

136

 

-

-

 

(230)

48

 

(182)

 Comprehensive income

-

-

5,501

136

 

-

-

 

5,637

125

 

5,762

 Dividend

-

-

(3,875)

-

 

-

-

 

(3,875)

(93)

 

(3,968)

 Issuance of common shares

26,281,753

74

1,271

-

 

-

-

 

1,345

-

 

1,345

 Purchase of treasury shares

-

-

-

-

 

(32,331,446)

(1,770)

 

(1,770)

-

 

(1,770)

 Sale of treasury shares(a)

-

-

-

-

 

4,010

-

 

-

-

 

-

 Share-based payments

-

-

103

-

 

-

-

 

103

-

 

103

 Share cancellation

-

-

-

-

 

-

-

 

-

-

 

-

 Net issuance (repayment) of perpetual subordinated notes

-

-

(5)

-

 

-

-

 

(5)

-

 

(5)

 Payments on perpetual subordinated notes

-

-

(207)

-

 

-

-

 

(207)

-

 

(207)

 Other operations with

 non-controlling interests

-

-

-

-

 

-

-

 

-

(150)

 

(150)

 Other items

-

-

(6)

-

 

-

-

 

(6)

6

 

-

As of June 30,  2019

2,666,883,760

8,301

123,351

(11,177)

 

(64,800,717)

(3,613)

 

116,862

2,362

 

119,224

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

 

 

 

 

 

INFORMATIONS BY BUSINESS SEGMENT

TOTAL

(unaudited)

 2nd quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

2,273

3,789

22,509

22,671

-

-

51,242

Intersegment sales

7,586

632

8,293

139

36

(16,686)

-

Excise taxes

-

-

(761)

(5,279)

-

-

(6,040)

Revenues from sales

9,859

4,421

30,041

17,531

36

(16,686)

45,202

Operating expenses

(4,205)

(3,878)

(29,168)

(16,844)

(229)

16,686

(37,638)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,687)

(328)

(389)

(237)

(20)

-

(3,661)

 Operating income

2,967

215

484

450

(213)

-

3,903

Net income (loss) from equity affiliates and other items

173

661

111

111

26

-

1,082

Tax on net operating income

(1,161)

(450)

46

(170)

64

-

(1,671)

 Net operating income

1,979

426

641

391

(123)

-

3,314

Net cost of net debt

 

 

 

 

 

 

(510)

Non-controlling interests

 

 

 

 

 

 

(48)

Net income - group share

 

 

 

 

 

 

2,756

 

 

 

 

 

 

 

 

 2nd quarter 2019 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

(59)

-

-

-

-

(59)

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

(59)

-

-

-

-

(59)

Operating expenses

-

(54)

(43)

(34)

-

-

(131)

Depreciation, depletion and impairment of tangible assets and mineral interests

(43)

(11)

(10)

-

-

-

(64)

 Operating income  (b)

(43)

(124)

(53)

(34)

-

-

(254)

Net income (loss) from equity affiliates and other items

-

407

(49)

(7)

-

-

351

Tax on net operating income

-

(286)

28

9

-

-

(249)

 Net operating income  (b)

(43)

(3)

(74)

(32)

-

-

(152)

Net cost of net debt

 

 

 

 

 

 

(4)

Non-controlling interests

 

 

 

 

 

 

25

Net income - group share

 

 

 

 

 

 

(131)

 

 

 

 

 

 

 

 

(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

-

-

(6)

(34)

-

 

 

        - On net operating income

-

-

(1)

(25)

-

 

 

 

 

 

 

 

 

 

 

 2nd quarter 2019 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

2,273

3,848

22,509

22,671

-

-

51,301

Intersegment sales

7,586

632

8,293

139

36

(16,686)

-

Excise taxes

-

-

(761)

(5,279)

-

-

(6,040)

Revenues from sales

9,859

4,480

30,041

17,531

36

(16,686)

45,261

Operating expenses

(4,205)

(3,824)

(29,125)

(16,810)

(229)

16,686

(37,507)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,644)

(317)

(379)

(237)

(20)

-

(3,597)

 Adjusted operating income

3,010

339

537

484

(213)

-

4,157

Net income (loss) from equity affiliates and other items

173

254

160

118

26

-

731

Tax on net operating income

(1,161)

(164)

18

(179)

64

-

(1,422)

 Adjusted net operating income

2,022

429

715

423

(123)

-

3,466

Net cost of net debt

 

 

 

 

 

 

(506)

Non-controlling interests

 

 

 

 

 

 

(73)

Adjusted net income - group share

 

 

 

 

 

 

2,887

 

 

 

 

 

 

 

 

 2nd quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

2,257

857

363

383

36

 

3,896

Total divestments

60

349

70

85

1

 

565

 Cash flow from operating activities

3,768

641

1,658

611

(427)

 

6,251

 

 

 

 

 

 

 

 

INFORMATIONS BY BUSINESS SEGMENT

TOTAL

(unaudited)

 1st quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,794

6,419

21,711

21,279

2

-

51,205

Intersegment sales

7,716

627

8,017

162

27

(16,549)

-

Excise taxes

-

-

(776)

(5,305)

-

-

(6,081)

Revenues from sales

9,510

7,046

28,952

16,136

29

(16,549)

45,124

Operating expenses

(4,029)

(6,409)

(27,334)

(15,334)

(177)

16,549

(36,734)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,529)

(315)

(374)

(233)

(15)

-

(3,466)

 Operating income

2,952

322

1,244

569

(163)

-

4,924

Net income (loss) from equity affiliates and other items

194

380

149

(10)

1

-

714

Tax on net operating income

(1,424)

(173)

(292)

(164)

60

-

(1,993)

 Net operating income

1,722

529

1,101

395

(102)

-

3,645

Net cost of net debt

 

 

 

 

 

 

(505)

Non-controlling interests

 

 

 

 

 

 

(29)

Net income - group share

 

 

 

 

 

 

3,111

 

 

 

 

 

 

 

 

 1st quarter 2019 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

(27)

-

-

-

-

(27)

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

(27)

-

-

-

-

(27)

Operating expenses

-

(58)

492

74

-

-

508

Depreciation, depletion and impairment of tangible assets and mineral interests

-

-

-

-

-

-

-

 Operating income  (b)

-

(85)

492

74

-

-

481

Net income (loss) from equity affiliates and other items

-

6

2

-

-

-

8

Tax on net operating income

-

16

(149)

(22)

-

-

(155)

 Net operating income  (b)

-

(63)

345

52

-

-

334

Net cost of net debt

 

 

 

 

 

 

(4)

Non-controlling interests

 

 

 

 

 

 

22

Net income - group share

 

 

 

 

 

 

352

 

 

 

 

 

 

 

 

(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

-

-

492

74

-

 

 

        - On net operating income

-

-

345

52

-

 

 

 

 

 

 

 

 

 

 

 1st quarter 2019 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,794

6,446

21,711

21,279

2

-

51,232

Intersegment sales

7,716

627

8,017

162

27

(16,549)

-

Excise taxes

-

-

(776)

(5,305)

-

-

(6,081)

Revenues from sales

9,510

7,073

28,952

16,136

29

(16,549)

45,151

Operating expenses

(4,029)

(6,351)

(27,826)

(15,408)

(177)

16,549

(37,242)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,529)

(315)

(374)

(233)

(15)

-

(3,466)

 Adjusted operating income

2,952

407

752

495

(163)

-

4,443

Net income (loss) from equity affiliates and other items

194

374

147

(10)

1

-

706

Tax on net operating income

(1,424)

(189)

(143)

(142)

60

-

(1,838)

 Adjusted net operating income

1,722

592

756

343

(102)

-

3,311

Net cost of net debt

 

 

 

 

 

 

(501)

Non-controlling interests

 

 

 

 

 

 

(51)

Adjusted net income - group share

 

 

 

 

 

 

2,759

 

 

 

 

 

 

 

 

 1st quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

2,025

1,118

285

144

15

 

3,587

Total divestments

29

225

169

72

2

 

497

 Cash flow from operating activities

3,936

892

(538)

232

(893)

 

3,629

 

 

 

 

 

 

 

 

 

INFORMATIONS BY BUSINESS SEGMENT

TOTAL

(unaudited)

 2nd quarter 2018

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

3,119

3,547

23,349

22,528

(3)

-

52,540

Intersegment sales

7,646

469

9,440

293

(63)

(17,785)

-

Excise taxes

-

-

(867)

(5,571)

-

-

(6,438)

Revenues from sales

10,765

4,016

31,922

17,250

(66)

(17,785)

46,102

Operating expenses

(4,791)

(3,605)

(30,369)

(16,416)

(122)

17,785

(37,518)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,345)

(603)

(304)

(172)

(11)

-

(3,435)

 Operating income

3,629

(192)

1,249

662

(199)

-

5,149

Net income (loss) from equity affiliates and other items

256

441

289

107

11

-

1,104

Tax on net operating income

(1,687)

(104)

(279)

(194)

85

-

(2,179)

 Net operating income

2,198

145

1,259

575

(103)

-

4,074

Net cost of net debt

 

 

 

 

 

 

(440)

Non-controlling interests

 

 

 

 

 

 

87

Net income - group share

 

 

 

 

 

 

3,721

 

 

 

 

 

 

 

 

 2nd quarter 2018 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

24

-

-

-

-

24

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

24

-

-

-

-

24

Operating expenses

(97)

(9)

569

134

-

-

597

Depreciation, depletion and impairment of tangible assets and mineral interests

-

(424)

-

-

-

-

(424)

 Operating income  (b)

(97)

(409)

569

134

-

-

197

Net income (loss) from equity affiliates and other items

(66)

(4)

46

1

-

-

(23)

Tax on net operating income

46

(7)

(177)

(38)

-

-

(176)

 Net operating income  (b)

(117)

(420)

438

97

-

-

(2)

Net cost of net debt

 

 

 

 

 

 

(9)

Non-controlling interests

 

 

 

 

 

 

179

Net income - group share

 

 

 

 

 

 

168

 

 

 

 

 

 

 

 

(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

-

-

569

134

-

 

 

        - On net operating income

-

-

438

97

-

 

 

 

 

 

 

 

 

 

 

 2nd quarter 2018 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

3,119

3,523

23,349

22,528

(3)

-

52,516

Intersegment sales

7,646

469

9,440

293

(63)

(17,785)

-

Excise taxes

-

-

(867)

(5,571)

-

-

(6,438)

Revenues from sales

10,765

3,992

31,922

17,250

(66)

(17,785)

46,078

Operating expenses

(4,694)

(3,596)

(30,938)

(16,550)

(122)

17,785

(38,115)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,345)

(179)

(304)

(172)

(11)

-

(3,011)

 Adjusted operating income

3,726

217

680

528

(199)

-

4,952

Net income (loss) from equity affiliates and other items

322

445

243

106

11

-

1,127

Tax on net operating income

(1,733)

(97)

(102)

(156)

85

-

(2,003)

 Adjusted net operating income

2,315

565

821

478

(103)

-

4,076

Net cost of net debt

 

 

 

 

 

 

(431)

Non-controlling interests

 

 

 

 

 

 

(92)

Adjusted net income - group share

 

 

 

 

 

 

3,553

 

 

 

 

 

 

 

 

 2nd quarter 2018

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

2,612

447

404

310

14

 

3,787

Total divestments

466

439

324

45

-

 

1,274

 Cash flow from operating activities

4,474

258

999

841

(326)

 

6,246

 

 

 

 

 

 

 

 

INFORMATIONS BY BUSINESS SEGMENT

TOTAL

(unaudited)

 1sthalf 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

4,067

10,208

44,220

43,950

2

-

102,447

Intersegment sales

15,302

1,259

16,310

301

63

(33,235)

-

Excise taxes

-

-

(1,537)

(10,584)

-

-

(12,121)

Revenues from sales

19,369

11,467

58,993

33,667

65

(33,235)

90,326

Operating expenses

(8,234)

(10,287)

(56,502)

(32,178)

(406)

33,235

(74,372)

Depreciation, depletion and impairment of tangible assets and mineral interests

(5,216)

(643)

(763)

(470)

(35)

-

(7,127)

 Operating income

5,919

537

1,728

1,019

(376)

-

8,827

Net income (loss) from equity affiliates and other items

367

1,041

260

101

27

-

1,796

Tax on net operating income

(2,585)

(623)

(246)

(334)

124

-

(3,664)

 Net operating income

3,701

955

1,742

786

(225)

-

6,959

Net cost of net debt

 

 

 

 

 

 

(1,015)

Non-controlling interests

 

 

 

 

 

 

(77)

Net income - group share

 

 

 

 

 

 

5,867

 

 

 

 

 

 

 

 

 1sthalf 2019 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

(86)

-

-

-

-

(86)

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

(86)

-

-

-

-

(86)

Operating expenses

-

(112)

449

40

-

-

377

Depreciation, depletion and impairment of tangible assets and mineral interests

(43)

(11)

(10)

-

-

-

(64)

 Operating income  (b)

(43)

(209)

439

40

-

-

227

Net income (loss) from equity affiliates and other items

-

413

(47)

(7)

-

-

359

Tax on net operating income

-

(270)

(121)

(13)

-

-

(404)

 Net operating income  (b)

(43)

(66)

271

20

-

-

182

Net cost of net debt

 

 

 

 

 

 

(8)

Non-controlling interests

 

 

 

 

 

 

47

Net income - group share

 

 

 

 

 

 

221

 

 

 

 

 

 

 

 

(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

-

-

486

40

-

 

 

        - On net operating income

-

-

344

27

-

 

 

 

 

 

 

 

 

 

 

 1sthalf 2019 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

4,067

10,294

44,220

43,950

2

-

102,533

Intersegment sales

15,302

1,259

16,310

301

63

(33,235)

-

Excise taxes

-

-

(1,537)

(10,584)

-

-

(12,121)

Revenues from sales

19,369

11,553

58,993

33,667

65

(33,235)

90,412

Operating expenses

(8,234)

(10,175)

(56,951)

(32,218)

(406)

33,235

(74,749)

Depreciation, depletion and impairment of tangible assets and mineral interests

(5,173)

(632)

(753)

(470)

(35)

-

(7,063)

 Adjusted operating income

5,962

746

1,289

979

(376)

-

8,600

Net income (loss) from equity affiliates and other items

367

628

307

108

27

-

1,437

Tax on net operating income

(2,585)

(353)

(125)

(321)

124

-

(3,260)

 Adjusted net operating income

3,744

1,021

1,471

766

(225)

-

6,777

Net cost of net debt

 

 

 

 

 

 

(1,007)

Non-controlling interests

 

 

 

 

 

 

(124)

Adjusted net income - group share

 

 

 

 

 

 

5,646

 

 

 

 

 

 

 

 

 1sthalf 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

4,282

1,975

648

527

51

 

7,483

Total divestments

89

574

239

157

3

 

1,062

 Cash flow from operating activities

7,704

1,533

1,120

843

(1,320)

 

9,880

 

 

 

 

 

 

 

 

TOTAL

(unaudited)

 

 

 

 

 

 

 

 

 1sthalf 2018

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

5,337

7,887

45,088

43,836

3

-

102,151

Intersegment sales

14,423

961

17,396

491

34

(33,305)

-

Excise taxes

-

-

(1,714)

(11,043)

-

-

(12,757)

Revenues from sales

19,760

8,848

60,770

33,284

37

(33,305)

89,394

Operating expenses

(8,721)

(8,123)

(58,248)

(31,919)

(399)

33,305

(74,105)

Depreciation, depletion and impairment of tangible assets and mineral interests

(4,561)

(807)

(617)

(346)

(20)

-

(6,351)

 Operating income

6,478

(82)

1,905

1,019

(382)

-

8,938

Net income (loss) from equity affiliates and other items

577

795

417

193

9

-

1,991

Tax on net operating income

(3,119)

(237)

(383)

(297)

181

-

(3,855)

 Net operating income

3,936

476

1,939

915

(192)

-

7,074

Net cost of net debt

 

 

 

 

 

 

(791)

Non-controlling interests

 

 

 

 

 

 

74

Net income - group share

 

 

 

 

 

 

6,357

 

 

 

 

 

 

 

 

 1sthalf 2018 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

13

-

-

-

-

13

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

13

-

-

-

-

13

Operating expenses

(150)

(101)

531

105

(9)

-

376

Depreciation, depletion and impairment of tangible assets and mineral interests

-

(446)

-

-

-

-

(446)

 Operating income  (b)

(150)

(534)

531

105

(9)

-

(57)

Net income (loss) from equity affiliates and other items

(167)

(15)

25

-

-

-

(157)

Tax on net operating income

121

(21)

(158)

(35)

-

-

(93)

 Net operating income  (b)

(196)

(570)

398

70

(9)

-

(307)

Net cost of net debt

 

 

 

 

 

 

(19)

Non-controlling interests

 

 

 

 

 

 

246

Net income - group share

 

 

 

 

 

 

(80)

 

 

 

 

 

 

 

 

(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

-

-

531

105

-

 

 

        - On net operating income

-

-

415

70

-

 

 

 

 

 

 

 

 

 

 

 1sthalf 2018 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

5,337

7,874

45,088

43,836

3

-

102,138

Intersegment sales

14,423

961

17,396

491

34

(33,305)

-

Excise taxes

-

-

(1,714)

(11,043)

-

-

(12,757)

Revenues from sales

19,760

8,835

60,770

33,284

37

(33,305)

89,381

Operating expenses

(8,571)

(8,022)

(58,779)

(32,024)

(390)

33,305

(74,481)

Depreciation, depletion and impairment of tangible assets and mineral interests

(4,561)

(361)

(617)

(346)

(20)

-

(5,905)

 Adjusted operating income

6,628

452

1,374

914

(373)

-

8,995

Net income (loss) from equity affiliates and other items

744

810

392

193

9

-

2,148

Tax on net operating income

(3,240)

(216)

(225)

(262)

181

-

(3,762)

 Adjusted net operating income

4,132

1,046

1,541

845

(183)

-

7,381

Net cost of net debt

 

 

 

 

 

 

(772)

Non-controlling interests

 

 

 

 

 

 

(172)

Adjusted net income - group share

 

 

 

 

 

 

6,437

 

 

 

 

 

 

 

 

 1sthalf 2018

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

8,157

1,022

736

538

58

 

10,511

Total divestments

2,642

592

349

273

3

 

3,859

 Cash flow from operating activities

7,796

326

(110)

781

(466)

 

8,327

 

 

 

 

 

 

 

 

-

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

(unaudited)

 

 

 

 

 

Consolidated

2nd quarter 2019

 

 

 

 

statement

(M$)

Adjusted

 

Adjustments(a)

 

 of income

Sales

51,301

 

(59)

 

51,242

Excise taxes

(6,040)

 

-

 

(6,040)

      Revenues from sales

45,261

 

(59)

 

45,202

 

 

 

 

 

 

Purchases net of inventory variation

(30,295)

 

(95)

 

(30,390)

Other operating expenses

(7,042)

 

(36)

 

(7,078)

Exploration costs

(170)

 

-

 

(170)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,597)

 

(64)

 

(3,661)

Other income

253

 

68

 

321

Other expense

(117)

 

(72)

 

(189)

 

 

 

 

 

 

Financial interest on debt

(564)

 

(4)

 

(568)

Financial income and expense from cash & cash equivalents

(42)

 

-

 

(42)

      Cost of net debt

(606)

 

(4)

 

(610)

 

 

 

 

 

 

Other financial income

326

 

-

 

326

Other financial expense

(188)

 

-

 

(188)

 

 

 

 

 

 

Net income (loss) from equity affiliates

457

 

355

 

812

 

 

 

 

 

 

Income taxes

(1,322)

 

(249)

 

(1,571)

Consolidated net income

2,960

 

(156)

 

2,804

Group share

2,887

 

(131)

 

2,756

Non-controlling interests

73

 

(25)

 

48

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Consolidated

2nd quarter 2018

 

 

 

 

statement

(M$)

Adjusted

 

Adjustments(a)

 

 of income

Sales

52,516

 

24

 

52,540

Excise taxes

(6,438)

 

-

 

(6,438)

      Revenues from sales

46,078

 

24

 

46,102

 

 

 

 

 

 

Purchases net of inventory variation

(31,263)

 

664

 

(30,599)

Other operating expenses

(6,694)

 

(67)

 

(6,761)

Exploration costs

(158)

 

-

 

(158)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,011)

 

(424)

 

(3,435)

Other income

254

 

(2)

 

252

Other expense

(55)

 

(358)

 

(413)

 

 

 

 

 

 

Financial interest on debt

(469)

 

(9)

 

(478)

Financial income and expense from cash & cash equivalents

(54)

 

-

 

(54)

      Cost of net debt

(523)

 

(9)

 

(532)

 

 

 

 

 

 

Other financial income

321

 

-

 

321

Other financial expense

(159)

 

-

 

(159)

 

 

 

 

 

 

Net income (loss) from equity affiliates

766

 

337

 

1,103

 

 

 

 

 

 

Income taxes

(1,911)

 

(176)

 

(2,087)

Consolidated net income

3,645

 

(11)

 

3,634

Group share

3,553

 

168

 

3,721

Non-controlling interests

92

 

(179)

 

(87)

 

 

 

 

 

 

(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)

 

 

 

Consolidated

1sthalf 2019

 

 

 

statement of

(M$)

Adjusted

 

Adjustments(a)

income

Sales

102,533

 

(86)

102,447

Excise taxes

(12,121)

 

-

(12,121)

      Revenues from sales

90,412

 

(86)

90,326

 

 

 

 

 

Purchases net of inventory variation

(60,533)

 

422

(60,111)

Other operating expenses

(13,758)

 

(45)

(13,803)

Exploration costs

(458)

 

-

(458)

Depreciation, depletion and impairment of tangible assets and mineral interests

(7,063)

 

(64)

(7,127)

Other income

453

 

115

568

Other expense

(190)

 

(208)

(398)

 

 

 

 

 

Financial interest on debt

(1,121)

 

(8)

(1,129)

Financial income and expense from cash & cash equivalents

(70)

 

-

(70)

      Cost of net debt

(1,191)

 

(8)

(1,199)

 

 

 

 

 

Other financial income

486

 

-

486

Other financial expense

(383)

 

-

(383)

 

 

 

 

 

Net income (loss) from equity affiliates

1,071

 

452

1,523

 

 

 

 

 

Income taxes

(3,076)

 

(404)

(3,480)

Consolidated net income

5,770

 

174

5,944

Group share

5,646

 

221

5,867

Non-controlling interests

124

 

(47)

77

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Consolidated

1sthalf 2018

 

 

 

statement of

(M$)

Adjusted

 

Adjustments(a)

income

Sales

102,138

 

13

102,151

Excise taxes

(12,757)

 

-

(12,757)

      Revenues from sales

89,381

 

13

89,394

 

 

 

 

 

Purchases net of inventory variation

(60,623)

 

578

(60,045)

Other operating expenses

(13,496)

 

(202)

(13,698)

Exploration costs

(362)

 

-

(362)

Depreciation, depletion and impairment of tangible assets and mineral interests

(5,905)

 

(446)

(6,351)

Other income

628

 

147

775

Other expense

(115)

 

(488)

(603)

 

 

 

 

 

Financial interest on debt

(849)

 

(19)

(868)

Financial income and expense from cash & cash equivalents

(95)

 

-

(95)

      Cost of net debt

(944)

 

(19)

(963)

 

 

 

 

 

Other financial income

561

 

-

561

Other financial expense

(329)

 

-

(329)

 

 

 

 

 

Net income (loss) from equity affiliates

1,403

 

184

1,587

 

 

 

 

 

Income taxes

(3,590)

 

(93)

(3,683)

Consolidated net income

6,609

 

(326)

6,283

Group share

6,437

 

(80)

6,357

Non-controlling interests

172

 

(246)

(74)

 

 

 

 

 

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

1 Definition on page 2
2 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.
3 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).
4 In accordance with IFRS rules, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the interest on the perpetual subordinated bond
5 Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
6 Net acquisitions = acquisitions – assets sales – other transactions with non-controlling interests (see page 11).
7 Net investments = Organic investments + net acquisitions (see page 11).
8 Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, and effective second quarter 2019 including organic loan repayments from equity affiliates. The inventory valuation effect is explained on page 13. The reconciliation table for different cash flow figures is on page 11.
9 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
10 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
11 Adjustment items shown on page 11.
12 Details shown on page 11 and in the annex to the financial statements.
13 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

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