1st Quarter Results

Total resists the drop in oil prices and reinforces its action plan to face the crisis

PARIS--()-- 

TOTAL S.A. (Paris:FP) (LSE:TTA) (NYSE:TOT):

1Q20 1Q19 Change
vs 1Q19
 
Oil price - Brent ($/b)

50.1

63.1

-21%

European gas price - NBP ($/Mbtu)

3.1

6.3

-51%

Adjusted net income (Group share)1
- in billions of dollars (B$)

1.78

2.76

-35%

- in dollars per share

0.66

1.02

-36%

 
DACF1 (B$)

4.5

6.5

-31%

Cash Flow from operations (B$)

1.3

3.6

-64%

 
 
Net income (Group share) of 34 M$ in 1Q20, considering the stock effect of 1.4 B$
Net-debt-to-capital ratio of 21% (excl. leases impact) at March 31, 2020
Hydrocarbon production of 3,086 kboe/d in 1Q20, an increase of 5% compared to 1Q19
First 2020 interim dividend set at 0.66 €/share

Total’s Board of Directors met on May 4, 2020, to approve the Group’s first quarter 2020 financial statements. On this occasion, Chairman and CEO Patrick Pouyanné said:

“Total’s Board of Directors would like to begin by thanking all those mobilized to face Covid-19, particularly the Group’s employees, who, while complying with health regulations, are maintaining the production, processing and distribution of products that consumers need.

The Group is facing exceptional circumstances: the Covid-19 health crisis, which is affecting the world economy and creating major uncertainties, and the oil market crisis, with the sharp drop in oil prices since March.

In an environment where prices fell by more than 30% on average during the first quarter, the Group’s cash flow decreased by 31% year-on-year to $4.5 billion, and adjusted net income was down 35% this quarter to $1.8 billion. Return on equity stood at 9.8% and Total maintained its financial strength with gearing at 21%.

In response to these crises, the Group announced an immediate action plan on March 23. The Group now anticipates 2020 production between 2.95 and 3 Mboe/d, a reduction of at least 5% from 2020 forecasts, reflecting the voluntary curtailment measures in Canada, the exceptional quotas announced by OPEC+, lower local demand for gas and the situation in Libya. In the Downstream, plant utilization rates and sales have been on average 50% below normal since mid-March, with uncertainty about the timing of a return to normal.

In this context, the action plan should be strengthened:

- Net investments further reduced to less than $14 billion for the year, a decrease of nearly 25% compared to the $18 billion announced in February 2020. Investments in low-carbon electricity will be maintained between $1.5 and $2 billion.

- Operating cost reduction increased to more than $1 billion, plus savings of more than $1 billion on energy costs.

- The Group strengthened its liquidity position in April by issuing $3 billion in bonds and drawing $6 billion in credit lines. In addition, in a 30 $/b environment, the Group anticipates an improvement in its working capital position of $1 billion by year-end 2020 compared to year-end 2019.

In this specific context, considering the solid fundamentals of Total – low breakeven and gearing – the Board of Directors decided to set the 2020 first interim dividend at €0.66 per share, stable compared to the 2019 first interim dividend, and to propose at the Annual Shareholders’ Meeting to put in place the option to receive the final 2019 dividend in shares, given that the Group bought back $0.55 billion of shares at the beginning of the year when prices were around $60/b.

While responsibly taking on the short-term challenges, the Group continues to implement its medium and long-term strategy. From this perspective, the announcement of a new climate ambition for the Group that aims at carbon neutrality by 2050 in Europe and in the world in step with society, is in line with Total’s reinforced strategy to become a broad-energy company. Concrete steps were taken in the first quarter to implement this strategy by accessing nearly 6 GW of renewable capacity, including solar (India, Qatar, Spain, France) and wind (France, UK). The countercyclical acquisition of Tullow’s interests in Uganda is also part of the strategy to access low-cost barrels of oil.”

Taking into account the difficult environment facing the Group and the savings that all Total’s teams have to make, Chairman and CEO Patrick Pouyanné proposed to reduce his fixed salary by 25% for the remainder of 2020, including the month of May. Considering the anticipated evolution of the economic criteria for the variable portion, Patrick Pouyanné’s total remuneration will decrease by more than 30% in 2020 compared to 2019. The members of the board also decided to give up 25% of their attendance fees starting from the Annual Shareholders’ Meeting. The members of the Executive Committee wished to join in these measures by reducing their fixed salaries by 10% for the remainder of the 2020 year.

First quarter 2020 results

Pressured by the collapse of demand linked to Covid-19, oil prices fell sharply during March to an average of 50 $/b in the first quarter, down 21% year-on-year. Gas prices in Europe also fell sharply, down more than 50% year-on-year. In an environment of prices falling by more than 30% on average compared to the first quarter 2019, the Group’s cash flow decreased by 31% to $4.5 billion. Adjusted net income decreased by 35% to $1.8 billion this quarter and return on equity stood at 9.8% with gearing at 21%.

Leading the Group’s low-carbon ambition, the iGRP segment generated $0.9 billion of cash flow, an increase of 40% year-on-year thanks to a growth in LNG sales of nearly 30% and to the resilience of the sales price of its LNG production. In low-carbon electricity, the Group is accelerating growth by entering into renewable projects with gross installed capacity of more than 6 GW, particularly in India, Qatar and Spain.

In the first quarter, Upstream production grew by 5% year-on-year, driven by ramp-ups on projects, such as Culzean in the UK, Johan Sverdrup in Norway and Yamal in Russia. Impacted by lower prices, Exploration & Production cash flow was $2.6 billion, down 39% year-on-year. Notably Exploration & Production made two discoveries in Surinam.

Downstream cash flow was $1.1 billion, down 37% year-on-year. In Europe, refining margins decreased by 20% and throughput volumes were down about 30% due to lower demand. Petrochemicals were resilient, benefiting from the fall in raw material prices. Retail network sales were down 10% year-on-year due to the impact of the Covid-19 crisis.

Highlights2

  • Asset sale program ongoing with disposal of downstream gas in France, Exploration & Production in Brunei, and Marketing in Sierra Leone and Liberia
  • Counter-cyclical acquisition of Tullow’s interest in the Lake Albert project in Uganda
  • Acquisition of 50% of 2 GW gross capacity portfolio of solar power plants in India as part of a 50/50 JV with the Adani Group
  • Agreement to build a large-scale solar power plant (800 MWp) in Qatar
  • Entry into solar market in Spain with the acquisition of 2 GW portfolio of projects
  • Acquisition in France of Global Wind Power France, which holds a 1 GW gross capacity portfolio of projects
  • Entry into first floating offshore wind project in the UK
  • Launched in Dunkirk the largest battery power storage project (25 MW) for France’s power grid
  • Launched a pilot plant in Europe to start producing EV batteries from 2023 at the highest technological level in terms of energy performance
  • In Exploration, made two significant oil discoveries on Block 58 in Surinam plus a new condensate gas discovery in the UK North Sea

Key figures3

In millions of dollars, except effective tax rate,
earnings per share and number of shares
1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income from business segments

2,300

3,879

3,413

-33%

Exploration & Production

703

2,031

1,722

-59%

Integrated Gas, Renewables & Power

913

794

592

+54%

Refining & Chemicals

382

580

756

-49%

Marketing & Services

302

474

343

-12%

Contribution of equity affiliates to adjusted net income

658

668

614

+7%

Group effective tax rate4

30.0%

31.8%

40.5%

Adjusted net income (Group share)

1,781

3,165

2,759

-35%

Adjusted fully-diluted earnings per share (dollars)5

0.66

1.19

1.02

-36%

Adjusted fully-diluted earnings per share (euros)*

0.60

1.07

0.90

-34%

Fully-diluted weighted-average shares (millions)

2,601

2,607

2,620

-1%

 
Net income (Group share)

34

2,600

3,111

-99%

 
Organic investments6

2,523

4,291

2,784

-9%

Net acquisitions7

1,102

(80)

306

x3,6
Net investments8

3,625

4,211

3,090

+17%

Operating cash flow
before working capital changes9

4,016

6,839

6,033

-33%

Operating cash flow before working capital changes w/o financial charges (DACF)10

4,528

7,372

6,536

-31%

Cash flow from operations

1,299

6,599

3,629

-64%

From 2019, data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
* Average €-$ exchange rate: 1.1027 for the first quarter of 2020.

Key figures of environment and Group production

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

1Q20 4Q19 1Q19 1Q20
vs
1Q19
Brent ($/b)

50.1

63.1

63.1

-21%

Henry Hub ($/Mbtu)

1.9

2.4

2.9

-35%

NBP ($/Mbtu)

3.1

5.1

6.3

-51%

JKM ($/Mbtu)

3.6

5.8

6.6

-45%

Average price of liquids ($/b)
Consolidated subsidiaries

44.4

59.1

58.7

-24%

Average price of gas ($/Mbtu)
Consolidated subsidiaries

3.35

3.76

4.51

-26%

Average price of LNG ($/Mbtu)
Consolidated subsidiaries and equity affiliates

6.32

6.52

7.20

-12%

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

26.3

30.2

33.0

-20%

* The indicators are shown on page 18.

> Production*

1Q20 4Q19 1Q19 1Q20
vs
1Q19
Hydrocarbon production (kboe/d)

3,086

3,113

2,946

+5%

Oil (including bitumen) (kb/d)

1,448

1,452

1,425

+2%

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

1,638

1,661

1,521

+8%

 
Hydrocarbon production (kboe/d)

3,086

3,113

2,946

+5%

Liquids (kb/d)

1,699

1,714

1,629

+4%

Gas (Mcf/d)**

7,560

7,563

7,167

+5%

* Group production = EP production + iGRP production.
** 1Q19 and 4Q19 data restated

Hydrocarbon production was 3,086 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2020, an increase of 5% year-on-year, due to:

  • +8% related to the start-up and ramp-up of new projects, notably Culzean in the United Kingdom, Egina in Nigeria, Johan Sverdrup in Norway and Ichthys in Australia.
  • +2% due to lower prices and to portfolio effects, notably the increased interest in the DUC field in Denmark.
  • -3% due to the natural decline of fields.
  • -2% due notably to partial production halt in Libya and to the Tyra redevelopment in Denmark.

Analysis of business segments

Integrated Gas, Renewables & Power (iGRP)

> Liquefied natural gas (LNG) production and sales and low carbon electricity

Hydrocarbon production for LNG 1Q20 4Q19 1Q19 1Q20
vs
1Q19
iGRP (kboe/d)

552

624

518

+7%

Liquids (kb/d)

73

74

66

+10%

Gas (Mcf/d)*

2,611

2,939

2,460

+6%

 
Liquefied Natural Gas in Mt 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Overall LNG sales

9.8

10.6

7.7

+27%

incl. Sales from equity production**

4.7

4.2

3.8

+23%

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

7.8

9.6

6.0

+30%

* 1Q19 and 4Q19 data restated.
** The Group's equity production may be sold by Total or by the joint ventures.

Low carbon electricity 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Gross renewables installed capacity (GW)*

3.0

3.0

1.8

+68%

Net low carbon power production (TWh)**

2.9

3.5

2.7

+10%

Clients gas and power - BtB and BtC (Million)*

5.9

5.8

5.4

+9%

Sales gas and power - BtB and BtC (TWh)

47.8

34.9

47.9

-

* Capacity at end of period.
** Solar, wind, biogas, hydroelectric and CCGT plants.

Production increased by 7% year-on-year essentially linked to the ramp-up of Ichthys in Australia and Yamal LNG in Russia.

Total LNG sales increased by 27% year-on-year thanks to the ramp-up of Yamal LNG and Ichthys plus the start-up of the first two Cameron LNG trains in the US.

Gross installed renewable power generation capacity increased by 68% year-on-year to 3 GW. The Group continues to implement its integration strategy for the gas and electricity chain in Europe and saw the number of customers for gas and electricity grow to 5.9 million, up 9% year-on-year.

> Results

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income*

913

794

592

+54%

including income from equity affiliates

248

353

255

-3%

 
Organic investments

646

684

493

+31%

Net acquisitions

1,137

(13)

400

x2,8
Net investments

1,783

671

893

+100%

 
Operating cash flow before working capital changes **

852

1,402

610

+40%

Cash flow from operations **

(489)

1,527

892

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 iGRP segment was $913 million in the first quarter of 2020, up 54% year-on-year and operating cash flow before working capital changes was up 40% in the same period to $852 million. The strong results compared to the first quarter of 2019 are due to the strong growth of LNG sales combined with resilient sales prices for the LNG portfolio, increasing use of regasification capacity in Europe and the strong performance of trading activities. The contribution of renewable activities also increased in the quarter.

Exploration & Production

> Production

Hydrocarbon production 1Q20 4Q19 1Q19 1Q20
vs
1Q19
EP (kboe/d)

2,534

2,489

2,428

+4%

Liquids (kb/d)

1,626

1,640

1,563

+4%

Gas (Mcf/d)

4,949

4,624

4,707

+5%

> Results

In millions of dollars, except effective tax rate 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income*

703

2,031

1,722

-59%

including income from equity affiliates

390

247

213

+83%

Effective tax rate**

59.6%

38.0%

48.6%

 
Organic investments

1,572

2,617

1,958

-20%

Net acquisitions

(6)

(224)

38

ns
Net investments

1,566

2,393

1,996

-22%

 
Operating cash flow before working capital changes ***

2,576

4,451

4,246

-39%

Cash flow from operations ***

3,923

4,206

3,936

-

* 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 $703 million in the first quarter, down 59% year-on-year due to the sharp decrease in oil and gas prices at the end of the quarter.

Operating cash flow before working capital changes was $2.6 billion in the first quarter, down 39% year-on-year for the same reasons, partially offset by the ramp-up of strong cash-generating projects.

Downstream (Refining & Chemicals and Marketing & Services)

> Results

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income*

684

1,054

1,099

-38%

 
Organic investments

277

949

319

-13%

Net acquisitions

(30)

159

(131)

ns
Net investments

247

1,108

188

+31%

 
Operating cash flow before working capital changes **

1,064

1,505

1,686

-37%

Cash flow from operations **

(1,582)

1,420

(306)

ns

* 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 and petrochemicals throughput and utilization rates

Refinery throughput and utilization rate* 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Total refinery throughput (kb/d)

1,444

1,509

1,862

-22%

France

255

282

592

-57%

Rest of Europe

756

756

823

-8%

Rest of world

433

471

447

-3%

Utlization rate based on crude only**

69%

71%

89%

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

Petrochemicals production and utilization rate 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Monomers* (kt)

1,386

1,431

1,393

-

Polymers (kt)

1,202

1,169

1,297

-7%

Vapocracker utilization rate**

83%

92%

87%

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

Refinery throughput volumes decreased by 22% in the first quarter of 2020 year-on-year, mainly as a result of planned shutdowns at the Feyzin and Grandpuits refineries in France, Satorp in Saudi Arabia as well as the shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019.

Monomer production was stable year-on-year, while polymer production decreased by 7% due mainly to the closure of the polystyrene site at El Prat in Spain and a shutdown for planned maintenance on the Qatofin platform in Qatar.

> Results

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income*

382

580

756

-49%

 
Organic investments

168

479

240

-30%

Net acquisitions

(36)

118

(124)

ns
Net investments

132

597

116

+14%

 
Operating cash flow before working capital changes **

674

789

1,104

-39%

Cash flow from operations **

(1,183)

1,142

(538)

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 Refining & Chemicals was $382 million, down 49% year-on-year. The decrease was mainly due to a severely degraded global refining environment in the first quarter, low plant utilization and low demand at the end of the quarter. The impact of the shutdown of the Normandy distillation unit is estimated at $100 million for the quarter and $200 million over the year.

Operating cash flow before working capital changes was $674 million in the first quarter of 2020, down 39% year-on-year for the same reasons. The difference between this cash flow and the cash flow from operations is mainly due to the decrease in the value of inventories linked to the decline in the price of oil.

Marketing & Services

> Petroleum product sales

Sales in kb/d* 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Total Marketing & Services sales

1,656

1,835

1,836

-10%

Europe

906

1,033

1,012

-11%

Rest of world

750

801

824

-9%

* Excludes trading and bulk refining sales

Sales of petroleum products decreased by 10% in the first quarter 2020, notably due to the impact of Covid-19 on demand, mainly in China and in France.

> Results

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Adjusted net operating income*

302

474

343

-12%

 
Organic investments

109

471

80

+36%

Net acquisitions

6

40

(8)

ns
Net investments

115

511

72

+60%

 
Operating cash flow before working capital changes **

390

716

582

-33%

Cash flow from operations **

(399)

278

232

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 was $302 million in the first quarter 2020, a decrease of 12%, in line with the decrease in volumes.

Operating cash flow before working capital changes was $390 million in the quarter, down 33% year-on-year.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was $2,300 million in the first quarter 2020, a decrease of 33% year-on-year, due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.

> Adjusted net income (Group share)

Adjusted net income (Group share) was $1,781 million in the first quarter 2020, a decrease of 35% year-on-year, due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.

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 -$1,747 million in the first quarter 2020, including -$1,414 million for the after-tax inventory effect linked to lower oil prices.

The effective tax rate for the Group was 30.0% in the first quarter 2020, compared to 31.8% in the previous quarter.

> Adjusted fully-diluted earnings per share

Adjusted earnings per share was $0.66 in the first quarter 2020, a decrease of 36%, calculated on the basis of a weighted average of 2,601 million fully-diluted shares, compared to $1.02 in the first quarter 2019.

In the framework of the shareholder return policy announced in February 2018, and the $5 billion buyback program for 2018-2020, the Group bought back shares at the start of the first quarter, while oil prices were around 60 $/b. 12.2 million shares were repurchased in the first quarter 2020 for $0.55 billion. In the context of the sharp decrease in oil prices, the buyback program was suspended at the beginning of March.

The number of fully-diluted shares was 2,596 million on March 31, 2020.

> Acquisitions - asset sales

Acquisitions were $1.6 billion in the first quarter 2020, comprised notably of finalizing the acquisition of 37.4% of Adani Gas Limited in India and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia.

Asset sales were $542 million in the first quarter 2020, comprised notably of the sales of Block CA1 in Brunei, the Group’s interest in the Fos Cavaou regasification terminal in France, and 50% of a portfolio of solar and wind assets from Total Quadran in France.

> Net cash flow

Net cash flow13 for the Group was $391 million in the first quarter 2020 in the context of lower prices.

> Profitability

The return on equity was 9.8% for the twelve months ended March 31, 2020.

In millions of dollars April 1, 2019 January 1, 2019 April 1, 2018
March 31, 2020 December 31, 2019 March 31, 2019
Adjusted net income

11 079

12 090

13 810

Average adjusted shareholders' equity

113 607

116 766

118 094

Return on equity (ROE)

9.8%

10.4%

11.7%

The return on average capital employed was 8.7% for the twelve months ended March 31, 2020.

In millions of dollars April 1, 2019 January 1, 2019 April 1, 2018
March 31, 2020 December 31, 2019 March 31, 2019
Adjusted net operating income

13 032

14 073

15 697

Average capital employed

150 418

143 674

146 210

ROACE

8.7%

9.8%

10.7%

Total S.A. accounts

Net income for Total S.A., the parent company, was €1,718 million in the first quarter 2020 compared to €1,391 million a year ago.

2020 Sensitivities*

Change Estimated impact on adjusted
net operating income
Estimated impact on cash flow from operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids price** +/- 10 $/b +/- 2.9 B$ +/- 3.3 B$
European gas price - NBP ($/Mbtu) +/- 1 $/Mbtu +/- 0.35 B$ +/- 0.35 B$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0.5 B$ +/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2020. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 18.
** In a 60 $/b Brent environment.

Summary and outlook

Since early March, the strong contraction in demand caused by the Covid-19 crisis has been exacerbated by sustained production, following the OPEC/non-OPEC meeting held on March 6. Despite the OPEC+ decision for exceptional production cuts reached during the April 9-12, 2020 meetings, demand remains well below supply, leading to overproduction and strong inventory builds. The anticipated gradual increase in demand linked to the end of the Covid-19 crisis may not bring a rapid resolution of the oil crisis given the time required to return inventories to normal levels.

Total faces this period of economic and oil crisis with a low organic breakeven and a solid balance sheet. The Group reacted to this new environment with an action plan, which has the objectives of preserving the value of its assets, maximizing the efficiency of its expenditures and positioning the Group in the best conditions to emerge strengthened from this period. All employees are mobilized in all the segments of the Group.

The Group has therefore decided to reduce net investments by 25% to $14 billion this year.

Given the less favorable context for Upstream asset sales, the $5 billion program for 2019-20 is maintained but refocused on infrastructure and real estate assets. Acquisitions will be adjusted in light of asset sales finalized within the framework of the $14 billion net investment.

The 2020 cost savings program has been increased to at least $1 billion, in addition to saving on energy costs by more than $1 billion, notably in Refining & Chemicals.

In Upstream, the Group now anticipates 2020 production of between 2.95 and 3 Mboe/d, at least a 5% reduction compared to the previous 2020 forecasts, taking into account the voluntary reductions in Canada, the exceptional quotas announced by OPEC+, lower local demand for gas and the situation in Libya.

Confirming its strategy to grow in the integrated gas and low-carbon electricity chain, the Group maintains its planned investment level of $1.5 to $2 billion a year in low-carbon electricity and continues to grow in LNG with the anticipated start-up of Cameron LNG Train 3. Taking into consideration the lower demand due to the global economic slowdown, Total anticipates deferments in LNG uplifts during the second and third quarters of the year. Furthermore, the decrease in oil prices will negatively impact the LNG long-term contract prices from the second half.

In the Downstream, refining margins benefit from the low crude oil price but the significant demand decrease in Europe will weigh on refinery utilization rates in the coming months. The Group anticipates an average refinery global utilization rate between 70-75%, compared to 84% in 2019. Petrochemical volumes are not affected by the crisis and benefit from the drop in raw material prices thanks to the flexibility of steam-crackers that are able to adapt feedstocks to market conditions. The Group anticipates that Marketing & Services sales will return to near-normal levels once re-opening measures become widespread.

The new measures taken will allow the organic cash breakeven to remain below $25/b in 2020, thus confirming Total’s resilience.

The Group’s priority is to generate a level of cash flow that allows continued investing in profitable projects, to preserve an attractive return to shareholders and to maintain the strength of its balance sheet. The strategy successfully deployed during the 2015 crisis around the four priorities of HSE, operational excellence, cost reduction and cash flow mobilizes all the Group’s teams.

* * * * *

To listen to the presentation by CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 14:30 (London time) please log on to total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167 in the United States (code: 5778274). 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: 5778274).

* * * * *

Operating information by segment

> Group production (Exploration & Production + iGRP)

Combined liquids and gas
production by region (kboe/d)
1Q20 4Q19 1Q19 1Q20
vs
1Q19
Europe and Central Asia

1 097

1 102

990

+11%

Africa

701

703

697

+1%

Middle East and North Africa

681

701

686

-1%

Americas

372

368

373

-

Asia-Pacific

235

239

201

+17%

Total production

3 086

3 113

2 946

+5%

includes equity affiliates

753

768

709

+6%

Liquids production by region (kb/d) 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Europe and Central Asia

404

373

352

+15%

Africa

555

560

540

+3%

Middle East and North Africa

516

560

522

-1%

Americas

178

171

177

+1%

Asia-Pacific

47

50

39

+21%

Total production

1 699

1 714

1 629

+4%

includes equity affiliates

214

212

217

-1%

Gas production by region (Mcf/d) 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Europe and Central Asia

3 734

3 887

3 426

+9%

Africa*

746

686

795

-6%

Middle East and North Africa

912

792

905

+1%

Americas

1 092

1 109

1 101

-1%

Asia-Pacific*

1 076

1 089

940

+14%

Total production*

7 560

7 563

7 167

+5%

includes equity affiliates*

2 905

2 961

2 656

+9%

* 1Q19 and 4Q19 data restated

> Downstream (Refining & Chemicals and Marketing & Services)

Petroleum product sales by region (kb/d) 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Europe

1,771

1,993

2,022

-12%

Africa

683

737

658

+4%

Americas

766

763

839

-9%

Rest of world

444

526

616

-28%

Total consolidated sales

3,663

4,019

4,135

-11%

Includes bulk sales

497

508

557

-11%

Includes trading

1,510

1,676

1,742

-13%

Petrochemicals production* (kt) 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Europe

1,272

1,253

1,416

-10%

Americas

664

630

614

8%

Middle-East and Asia

652

717

660

-1%

* Olefins, polymers

Adjustment items to net income (Group share)

In millions of dollars 1Q20 4Q19 1Q19
Special items affecting net income (Group share)

(334)

(666)

(14)

Gain (loss) on asset sales

-

-

-

Restructuring charges

(80)

(5)

(2)

Impairments

-

(248)

-

Other

(254)

(413)

(12)

After-tax inventory effect : FIFO vs. replacement cost

(1,414)

57

388

Effect of changes in fair value

1

44

(22)

 
Total adjustments affecting net income

(1,747)

(565)

352

Investments - Divestments

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Organic investments ( a )

2,523

4,291

2,784

-9%

capitalized exploration

135

136

232

-42%

increase in non-current loans

279

319

130

x2,1
repayment of non-current loans, excluding organic loan repayment from equity affiliates*

(117)

(102)

(134)

ns
change in debt from renewable projects (Group share)

(105)

-

-

ns
Acquisitions ( b )

1,644

266

669

x2,5
Asset sales ( c )

542

357

363

+49%

change in debt from renewable projects (partner share)

61

-

-

ns
Other transactions with non-controlling interests ( d )

-

(11)

-

ns
Net investments ( a + b - c - d )

3,625

4,211

3,090

+17%

Organic loan repayment from equity affiliates* ( e )

7

(275)

-

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

166

-

-

ns
Capex linked to capitalized leasing contracts (g)

24

-

-

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

3,774

3,925

3,090

+22%

* Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations.
** Change in debt from renewable projects (Group share and partner share).

Cash flow

In millions of dollars 1Q20 4Q19 1Q19 1Q20
vs
1Q19
Operating cash flow before working capital changes w/o financials charges (DACF)

4,528

7,372

6,536

-31%

Financial charges

(512)

(533)

(503)

ns
Operating cash flow before working capital changes ( a )

4,016

6,839

6,033

-33%

(Increase) decrease in working capital

(884)

46

(2,970)

ns
Inventory effect

(1,796)

(11)

566

ns
capital gain from renewable projects sale

(44)

-

-

ns
Organic loan repayment from equity affiliates

7

(275)

-

ns
Cash flow from operations

1,299

6,599

3,629

-64%

 
Organic investments ( b )

2,523

4,291

2,784

-9%

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

1,493

2,548

3,249

-54%

 
Net investments ( c )

3,625

4,211

3,090

+17%

Net cash flow ( a - c )

391

2,628

2,943

-87%

Gearing ratio*

In millions of dollars 03/31/2020 12/31/2019 03/31/2019
Current borrowings

18,521

14,819

13,906

Net current financial assets

(6,412)

(3,505)

(2,722)

Net financial assets classified as held for sale

-

301

227

Non-current financial debt

48,896

47,773

44,396

Hedging instruments of non-current debt

(1,133)

(912)

(637)

Cash and cash equivalents

(21,634)

(27,352)

(25,432)

Net debt (a)

38,238

31,124

29,738

 
Shareholders’ equity - Group share

112,006

116,778

117,993

Non-controlling interests

2,428

2,527

2,365

Shareholders' equity (b)

114,434

119,305

120,358

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

25.0%

20.7%

19.8%

 
Net-debt-to-capital ratio excluding leases

21.3%

16.7%

15.9%

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

Return on average capital employed

> Twelve months ended March 31, 2020

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

6,490

2,710

2,629

1,612

13,032

Capital employed at 03/31/2019*

90,051

37,235

13,153

8,255

148,463

Capital employed at 03/31/2020*

85,622

44,236

12,878

8,764

152,374

ROACE

7.4%

6.7%

20.2%

18.9%

8.7%

> Twelve months ended December 31, 2019

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

7,509

2,389

3,003

1,653

14,073

Capital employed at 12/31/2018*

89,400

34,746

10,599

6,442

138,519

Capital employed at 12/31/2019*

88,844

41,549

12,228

8,371

148,828

ROACE

8.4%

6.3%

26.3%

22.3%

9.8%

> 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 press release presents the results for the first quarter of 2020 from the consolidated financial statements of TOTAL S.A. as of March 31, 2020. 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.

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/A 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/A, 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

First quarter 2020 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

 

1st quarter

 

4th quarter

 

1st quarter

(M$)(a)

2020

 

2019

 

2019

 

 

 

 

 

 

 

Sales

43,870

 

49,280

 

51,205

Excise taxes

(5,293)

 

(5,895)

 

(6,081)

 

Revenues from sales

38,577

 

43,385

 

45,124

 

 

 

 

 

 

 

Purchases, net of inventory variation

(28,068)

 

(28,212)

 

(29,721)

Other operating expenses

(6,944)

 

(7,090)

 

(6,725)

Exploration costs

(140)

 

(231)

 

(288)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,635)

 

(4,431)

 

(3,466)

Other income

580

 

428

 

247

Other expense

(420)

 

(235)

 

(209)

 

 

 

 

 

 

 

Financial interest on debt

(569)

 

(606)

 

(561)

Financial income and expense from cash & cash equivalents

(155)

 

51

 

(28)

 

Cost of net debt

(724)

 

(555)

 

(589)

 

 

 

 

 

 

 

Other financial income

188

 

143

 

160

Other financial expense

(181)

 

(203)

 

(195)

 

 

 

 

 

 

 

Net income (loss) from equity affiliates

732

 

502

 

711

 

 

 

 

 

 

 

Income taxes

37

 

(852)

 

(1,909)

Consolidated net income

2

 

2,649

 

3,140

Group share

34

 

2,600

 

3,111

Non-controlling interests

(32)

 

49

 

29

Earnings per share ($)

(0.01)

 

0.98

 

1.17

Fully-diluted earnings per share ($)

(0.01)

 

0.97

 

1.16

(a) Except for per share amounts.

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

1st quarter

 

4th quarter

 

1st quarter

(M$)

2020

 

2019

 

2019

Consolidated net income

2

 

2,649

 

3,140

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

Actuarial gains and losses

133

 

(138)

 

164

Change in fair value of investments in equity instruments

(164)

 

16

 

33

Tax effect

(15)

 

40

 

(45)

Currency translation adjustment generated by the parent company

(1,976)

 

2,461

 

(1,531)

Items not potentially reclassifiable to profit and loss

(2,022)

 

2,379

 

(1,379)

Currency translation adjustment

(21)

 

(654)

 

806

Cash flow hedge

(1,524)

 

(24)

 

(127)

Variation of foreign currency basis spread

56

 

(49)

 

11

Share of other comprehensive income of equity affiliates, net amount

(1,223)

 

82

 

388

Other

3

 

1

 

1

Tax effect

445

 

26

 

38

Items potentially reclassifiable to profit and loss

(2,264)

 

(618)

 

1,117

Total other comprehensive income (net amount)

(4,286)

 

1,761

 

(262)

 

 

 

 

 

 

Comprehensive income

(4,284)

 

4,410

 

2,878

Group share

(4,171)

 

4,319

 

2,840

Non-controlling interests

(113)

 

91

 

38

CONSOLIDATED BALANCE SHEET

 

 

 

 

 

TOTAL

 

 

 

 

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

(M$)

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

Intangible assets, net

32,823

 

33,178

 

28,727

Property, plant and equipment, net

113,254

 

116,408

 

117,881

Equity affiliates : investments and loans

26,998

 

27,122

 

25,996

Other investments

1,660

 

1,778

 

1,468

Non-current financial assets

1,133

 

912

 

637

Deferred income taxes

6,694

 

6,216

 

6,246

Other non-current assets

2,537

 

2,415

 

2,156

Total non-current assets

185,099

 

188,029

 

183,111

 

 

 

 

 

 

Current assets

 

 

 

 

 

Inventories, net

11,556

 

17,132

 

17,075

Accounts receivable, net

18,029

 

18,488

 

19,321

Other current assets

19,429

 

17,013

 

16,237

Current financial assets

7,016

 

3,992

 

3,373

Cash and cash equivalents

21,634

 

27,352

 

25,432

Assets classified as held for sale

421

 

1,288

 

314

Total current assets

78,085

 

85,265

 

81,752

Total assets

263,184

 

273,294

 

264,863

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

Common shares

8,123

 

8,123

 

8,231

Paid-in surplus and retained earnings

119,935

 

121,170

 

123,702

Currency translation adjustment

(14,431)

 

(11,503)

 

(11,606)

Treasury shares

(1,621)

 

(1,012)

 

(2,334)

Total shareholders' equity - Group share

112,006

 

116,778

 

117,993

Non-controlling interests

2,428

 

2,527

 

2,365

Total shareholders' equity

114,434

 

119,305

 

120,358

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Deferred income taxes

10,462

 

11,858

 

11,339

Employee benefits

3,260

 

3,501

 

3,150

Provisions and other non-current liabilities

19,452

 

20,613

 

21,020

Non-current financial debt

48,896

 

47,773

 

44,396

Total non-current liabilities

82,070

 

83,745

 

79,905

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

22,123

 

28,394

 

26,416

Other creditors and accrued liabilities

25,102

 

25,749

 

23,361

Current borrowings

18,521

 

14,819

 

13,906

Other current financial liabilities

604

 

487

 

651

Liabilities directly associated with the assets classified as held for sale

330

 

795

 

266

Total current liabilities

66,680

 

70,244

 

64,600

Total liabilities & shareholders' equity

263,184

 

273,294

 

264,863

CONSOLIDATED STATEMENT OF CASH FLOW

 

 

 

 

 

TOTAL

 

 

 

 

 

(unaudited)

 

1st quarter

 

4th quarter

 

1st quarter

(M$)

2020

 

2019

 

2019

 

 

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

2

 

2,649

 

3,140

Depreciation, depletion, amortization and impairment

3,730

 

4,624

 

3,716

Non-current liabilities, valuation allowances and deferred taxes

(661)

 

(672)

 

140

(Gains) losses on disposals of assets

(209)

 

(176)

 

(173)

Undistributed affiliates' equity earnings

(587)

 

267

 

(306)

(Increase) decrease in working capital

(884)

 

46

 

(2,970)

Other changes, net

(92)

 

(139)

 

82

Cash flow from operating activities

1,299

 

6,599

 

3,629

 

 

 

 

 

 

CASH FLOW USED IN INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Intangible assets and property, plant and equipment additions

(2,364)

 

(4,015)

 

(2,704)

Acquisitions of subsidiaries, net of cash acquired

(188)

 

(155)

 

-

Investments in equity affiliates and other securities

(1,534)

 

(170)

 

(753)

Increase in non-current loans

(295)

 

(319)

 

(130)

Total expenditures

(4,381)

 

(4,659)

 

(3,587)

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

44

 

301

 

8

Proceeds from disposals of subsidiaries, net of cash sold

142

 

13

 

147

Proceeds from disposals of non-current investments

295

 

43

 

208

Repayment of non-current loans

126

 

377

 

134

Total divestments

607

 

734

 

497

Cash flow used in investing activities

(3,774)

 

(3,925)

 

(3,090)

 

 

 

 

 

 

CASH FLOW USED IN FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Issuance (repayment) of shares:

 

 

 

 

 

- Parent company shareholders

-

 

1

 

1

- Treasury shares

(609)

 

(620)

 

(491)

Dividends paid:

 

 

 

 

 

- Parent company shareholders

(1,882)

 

(1,876)

 

(1,830)

- Non-controlling interests

-

 

(1)

 

-

Net issuance (repayment) of perpetual subordinated notes

-

 

-

 

-

Payments on perpetual subordinated notes

(97)

 

(56)

 

(140)

Other transactions with non-controlling interests

(48)

 

160

 

(150)

Net issuance (repayment) of non-current debt

42

 

84

 

1,250

Increase (decrease) in current borrowings

2,785

 

(1,131)

 

(1,526)

Increase (decrease) in current financial assets and liabilities

(2,995)

 

(168)

 

106

Cash flow from (used in) financing activities

(2,804)

 

(3,607)

 

(2,780)

Net increase (decrease) in cash and cash equivalents

(5,279)

 

(933)

 

(2,241)

Effect of exchange rates

(439)

 

831

 

(234)

Cash and cash equivalents at the beginning of the period

27,352

 

27,454

 

27,907

Cash and cash equivalents at the end of the period

21,634

 

27,352

 

25,432

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

Common shares issued

Paid-in surplus and retained earnings

Currency translation adjustment

 

Treasury shares

 

Shareholders' equity - Group

Share

Non-controlling interests

 

Total shareholders' equity

(M$)

Number

Amount

 

Number

Amount

 

 

As of January 1, 2019

2,640,602,007

8,227

120,569

(11,313)

 

(32,473,281)

(1,843)

 

115,640

2,474

 

118,114

Net income of the first quarter 2019

-

-

3,111

-

 

-

-

 

3,111

29

 

3,140

Other comprehensive income

-

-

22

(293)

 

-

-

 

(271)

9

 

(262)

Comprehensive Income

-

-

3,133

(293)

 

-

-

 

2,840

38

 

2,878

Dividend

-

-

-

-

 

-

-

 

-

-

 

-

Issuance of common shares

1,272,267

4

64

-

 

-

-

 

68

-

 

68

Purchase of treasury shares

-

-

-

-

 

(8,675,188)

(491)

 

(491)

-

 

(491)

Sale of treasury shares(a)

-

-

-

-

 

2,210

-

 

-

-

 

-

Share-based payments

-

-

11

-

 

-

-

 

11

-

 

11

Share cancellation

-

-

-

-

 

-

-

 

-

-

 

-

Net issuance (repayment) of perpetual subordinated notes

-

-

-

-

 

-

-

 

-

-

 

-

Payments on perpetual subordinated notes

-

-

(75)

-

 

-

-

 

(75)

-

 

(75)

Other operations with

non-controlling interests

-

-

-

-

 

-

-

 

-

(150)

 

(150)

Other items

-

-

-

-

 

-

-

 

-

3

 

3

As of March 31, 2019

2,641,874,274

8,231

123,702

(11,606)

 

(41,146,259)

(2,334)

 

117,993

2,365

 

120,358

Net income from April 1 to December 31, 2019

-

-

8,156

-

 

-

-

 

8,156

142

 

8,298

Other comprehensive income

-

-

(681)

103

 

-

-

 

(578)

59

 

(519)

Comprehensive Income

-

-

7,475

103

 

-

-

 

7,578

201

 

7,779

Dividend

-

-

(7,730)

-

 

-

-

 

(7,730)

(115)

 

(7,845)

Issuance of common shares

25,116,236

70

1,201

-

 

-

-

 

1,271

-

 

1,271

Purchase of treasury shares

-

-

-

-

 

(43,714,148)

(2,319)

 

(2,319)

-

 

(2,319)

Sale of treasury shares(a)

-

-

(219)

-

 

4,276,738

219

 

-

-

 

-

Share-based payments

-

-

196

-

 

-

-

 

196

-

 

196

Share cancellation

(65,109,435)

(178)

(3,244)

-

 

65,109,435

3,422

 

-

-

 

-

Net issuance (repayment) of perpetual subordinated notes

-

-

(4)

-

 

-

-

 

(4)

-

 

(4)

Payments on perpetual subordinated notes

-

-

(278)

-

 

-

-

 

(278)

-

 

(278)

Other operations with

non-controlling interests

-

-

55

-

 

-

-

 

55

108

 

163

Other items

-

-

16

-

 

-

-

 

16

(32)

 

(16)

As of December 31, 2019

2,601,881,075

8,123

121,170

(11,503)

 

(15,474,234)

(1,012)

 

116,778

2,527

 

119,305

Net income of the first quarter 2020

-

-

34

-

 

-

-

 

34

(32)

 

2

Other comprehensive income

-

-

(1,277)

(2,928)

 

-

-

 

(4,205)

(81)

 

(4,286)

Comprehensive income

-

-

(1,243)

(2,928)

 

-

-

 

(4,171)

(113)

 

(4,284)

Dividend

-

-

-

-

 

-

-

 

-

-

 

-

Issuance of common shares

-

-

-

-

 

-

-

 

-

-

 

-

Purchase of treasury shares

-

-

-

-

 

(13,236,044)

(609)

 

(609)

-

 

(609)

Sale of treasury shares(a)

-

-

-

-

 

3,030

-

 

-

-

 

-

Share-based payments

-

-

31

-

 

-

-

 

31

-

 

31

Share cancellation

-

-

-

-

 

-

-

 

-

-

 

-

Net issuance (repayment) of perpetual subordinated notes

-

-

-

-

 

-

-

 

-

-

 

-

Payments on perpetual subordinated notes

-

-

(72)

-

 

-

-

 

(72)

-

 

(72)

Other operations with

non-controlling interests

-

-

(44)

-

 

-

-

 

(44)

(4)

 

(48)

Other items

-

-

93

-

 

-

-

 

93

18

 

111

As of March 31, 2020

2,601,881,075

8,123

119,935

(14,431)

 

(28,707,248)

(1,621)

 

112,006

2,428

 

114,434

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

 

 

 

 

 

INFORMATION BY BUSINESS SEGMENT

TOTAL

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st quarter 2020

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,582

5,090

18,523

18,675

-

-

43,870

Intersegment sales

5,564

594

6,095

89

28

(12,370)

-

Excise taxes

-

-

(650)

(4,643)

-

-

(5,293)

Revenues from sales

7,146

5,684

23,968

14,121

28

(12,370)

38,577

Operating expenses

(3,643)

(4,992)

(24,841)

(13,799)

(247)

12,370

(35,152)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,644)

(334)

(395)

(244)

(18)

-

(3,635)

Operating income

859

358

(1,268)

78

(237)

-

(210)

Net income (loss) from equity affiliates and other items

423

399

(57)

10

124

-

899

Tax on net operating income

(454)

8

335

(32)

28

-

(115)

Net operating income

828

765

(990)

56

(85)

-

574

Net cost of net debt

 

 

 

 

 

 

(572)

Non-controlling interests

 

 

 

 

 

 

32

Net income - group share

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

1st quarter 2020 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

2

-

-

-

-

2

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

2

-

-

-

-

2

Operating expenses

(10)

(119)

(1,589)

(346)

(55)

-

(2,119)

Depreciation, depletion and impairment of tangible assets and mineral interests

-

-

-

-

-

-

-

Operating income (b)

(10)

(117)

(1,589)

(346)

(55)

-

(2,117)

Net income (loss) from equity affiliates and other items

128

(75)

(208)

-

-

-

(155)

Tax on net operating income

7

44

425

100

-

-

576

Net operating income (b)

125

(148)

(1,372)

(246)

(55)

-

(1,696)

Net cost of net debt

 

 

 

 

 

 

(101)

Non-controlling interests

 

 

 

 

 

 

50

Net income - group share

 

 

 

 

 

 

(1,747)

 

 

 

 

 

 

 

 

(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

-

-

(1,578)

(218)

-

 

 

- On net operating income

-

-

(1,285)

(154)

-

 

 

 

 

 

 

 

 

 

 

1st quarter 2020 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,582

5,088

18,523

18,675

-

-

43,868

Intersegment sales

5,564

594

6,095

89

28

(12,370)

-

Excise taxes

-

-

(650)

(4,643)

-

-

(5,293)

Revenues from sales

7,146

5,682

23,968

14,121

28

(12,370)

38,575

Operating expenses

(3,633)

(4,873)

(23,252)

(13,453)

(192)

12,370

(33,033)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,644)

(334)

(395)

(244)

(18)

-

(3,635)

Adjusted operating income

869

475

321

424

(182)

-

1,907

Net income (loss) from equity affiliates and other items

295

474

151

10

124

-

1,054

Tax on net operating income

(461)

(36)

(90)

(132)

28

-

(691)

Adjusted net operating income

703

913

382

302

(30)

-

2,270

Net cost of net debt

 

 

 

 

 

 

(471)

Non-controlling interests

 

 

 

 

 

 

(18)

Adjusted net income - group share

 

 

 

 

 

 

1,781

 

 

 

 

 

 

 

 

1st quarter 2020

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

1,659

2,291

226

160

45

 

4,381

Total divestments

121

344

79

46

17

 

607

Cash flow from operating activities

3,923

(489)

(1,183)

(399)

(553)

 

1,299

 

 

 

 

 

 

 

 

INFORMATION BY BUSINESS SEGMENT

TOTAL

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,563

4,292

22,040

21,379

6

-

49,280

Intersegment sales

8,266

993

7,739

203

47

(17,248)

-

Excise taxes

-

-

(765)

(5,130)

-

-

(5,895)

Revenues from sales

9,829

5,285

29,014

16,452

53

(17,248)

43,385

Operating expenses

(4,156)

(4,471)

(28,084)

(15,714)

(356)

17,248

(35,533)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,307)

(488)

(351)

(263)

(22)

-

(4,431)

Operating income

2,366

326

579

475

(325)

-

3,421

Net income (loss) from equity affiliates and other items

166

391

57

15

6

-

635

Tax on net operating income

(893)

104

(3)

(100)

(39)

-

(931)

Net operating income

1,639

821

633

390

(358)

-

3,125

Net cost of net debt

 

 

 

 

 

 

(476)

Non-controlling interests

 

 

 

 

 

 

(49)

Net income - group share

 

 

 

 

 

 

2,600

 

 

 

 

 

 

 

 

4th quarter 2019 (adjustments)(a)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

-

10

-

-

-

-

10

Intersegment sales

-

-

-

-

-

-

-

Excise taxes

-

-

-

-

-

-

-

Revenues from sales

-

10

-

-

-

-

10

Operating expenses

(45)

(87)

44

(102)

(112)

-

(302)

Depreciation, depletion and impairment of tangible assets and mineral interests

(525)

(136)

(9)

-

-

-

(670)

Operating income (b)

(570)

(213)

35

(102)

(112)

-

(962)

Net income (loss) from equity affiliates and other items

(22)

(38)

(13)

(23)

-

-

(96)

Tax on net operating income

200

278

31

41

(73)

-

477

Net operating income (b)

(392)

27

53

(84)

(185)

-

(581)

Net cost of net debt

 

 

 

 

 

 

(3)

Non-controlling interests

 

 

 

 

 

 

19

Net income - group share

 

 

 

 

 

 

(565)

 

 

 

 

 

 

 

 

(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

-

-

85

(96)

-

 

 

- On net operating income

-

-

117

(60)

-

 

 

 

 

 

 

 

 

 

 

4th quarter 2019 (adjusted)

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Non-Group sales

1,563

4,282

22,040

21,379

6

-

49,270

Intersegment sales

8,266

993

7,739

203

47

(17,248)

-

Excise taxes

-

-

(765)

(5,130)

-

-

(5,895)

Revenues from sales

9,829

5,275

29,014

16,452

53

(17,248)

43,375

Operating expenses

(4,111)

(4,384)

(28,128)

(15,612)

(244)

17,248

(35,231)

Depreciation, depletion and impairment of tangible assets and mineral interests

(2,782)

(352)

(342)

(263)

(22)

-

(3,761)

Adjusted operating income

2,936

539

544

577

(213)

-

4,383

Net income (loss) from equity affiliates and other items

188

429

70

38

6

-

731

Tax on net operating income

(1,093)

(174)

(34)

(141)

34

-

(1,408)

Adjusted net operating income

2,031

794

580

474

(173)

-

3,706

Net cost of net debt

 

 

 

 

 

 

(473)

Non-controlling interests

 

 

 

 

 

 

(68)

Adjusted net income - group share

 

 

 

 

 

 

3,165

 

 

 

 

 

 

 

 

4th quarter 2019

Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate

Intercompany

Total

(M$)

Total expenditures

2,633

747

664

571

44

 

4,659

Total divestments

256

342

69

62

5

 

734

Cash flow from operating activities

4,206

1,527

1,142

278

(554)

 

6,599

 

 

 

 

 

 

 

 

INFORMATION 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

 

 

 

 

 

 

 

 

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

1st quarter 2020

 

 

 

 

statement

(M$)

Adjusted

 

Adjustments(a)

 

of income

Sales

43,868

 

2

 

43,870

Excise taxes

(5,293)

 

-

 

(5,293)

Revenues from sales

38,575

 

2

 

38,577

 

 

 

 

 

 

Purchases net of inventory variation

(26,107)

 

(1,961)

 

(28,068)

Other operating expenses

(6,786)

 

(158)

 

(6,944)

Exploration costs

(140)

 

-

 

(140)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,635)

 

-

 

(3,635)

Other income

580

 

-

 

580

Other expense

(191)

 

(229)

 

(420)

 

 

 

 

 

 

Financial interest on debt

(567)

 

(2)

 

(569)

Financial income and expense from cash & cash equivalents

(10)

 

(145)

 

(155)

Cost of net debt

(577)

 

(147)

 

(724)

 

 

 

 

 

 

Other financial income

188

 

-

 

188

Other financial expense

(181)

 

-

 

(181)

 

 

 

 

 

 

Net income (loss) from equity affiliates

658

 

74

 

732

 

 

 

 

 

 

Income taxes

(585)

 

622

 

37

Consolidated net income

1,799

 

(1,797)

 

2

Group share

1,781

 

(1,747)

 

34

Non-controlling interests

18

 

(50)

 

(32)

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Consolidated

1st quarter 2019

 

 

 

 

statement

(M$)

Adjusted

 

Adjustments(a)

 

of income

Sales

51,232

 

(27)

 

51,205

Excise taxes

(6,081)

 

-

 

(6,081)

Revenues from sales

45,151

 

(27)

 

45,124

 

 

 

 

 

 

Purchases net of inventory variation

(30,238)

 

517

 

(29,721)

Other operating expenses

(6,716)

 

(9)

 

(6,725)

Exploration costs

(288)

 

-

 

(288)

Depreciation, depletion and impairment of tangible assets and mineral interests

(3,466)

 

-

 

(3,466)

Other income

200

 

47

 

247

Other expense

(73)

 

(136)

 

(209)

 

 

 

 

 

 

Financial interest on debt

(557)

 

(4)

 

(561)

Financial income and expense from cash & cash equivalents

(28)

 

-

 

(28)

Cost of net debt

(585)

 

(4)

 

(589)

 

 

 

 

 

 

Other financial income

160

 

-

 

160

Other financial expense

(195)

 

-

 

(195)

 

 

 

 

 

 

Net income (loss) from equity affiliates

614

 

97

 

711

 

 

 

 

 

 

Income taxes

(1,754)

 

(155)

 

(1,909)

Consolidated net income

2,810

 

330

 

3,140

Group share

2,759

 

352

 

3,111

Non-controlling interests

51

 

(22)

 

29

 

 

 

 

 

 

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

1 Definition page 3
2 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
3 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 14.
4 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).
5 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
6 Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
7 Net acquisitions = acquisitions – assets sales – other transactions with non-controlling interests (see page 14).
8 Net investments = Organic investments + net acquisitions (see page 14).
9 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, and effective first quarter 2020 including capital gain from renewable projects sale. The inventory valuation effect is explained on page 17. The reconciliation table for different cash flow figures is on page 15.
10 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
11 Adjustment items shown on page 14.
12 Details shown on page 14 and in the appendix to the financial statements.
13 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

Total
Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investors Relations: +44 (0) 207 719 7962 l ir@total.com

Short Name: Total S.A.
Category Code: QRF
Sequence Number: 698928
Time of Receipt (offset from UTC): 20200505T065458+0100

Contacts

TOTAL

Contacts

TOTAL