1st Quarter Results

1st Quarter Results

Total

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

    1Q19   1Q18   Change

vs 1Q18

     
Adjusted net income1
- in billions of dollars (B$) 2.8 2.9 -4%
- in dollars per share 1.02 1.09 -6%
 
DACF1 (B$) 6.5 5.7 +15%
Cash Flow from operations (B$) 3.6 2.1 +74%
             
 
Net income (Group share) of 3.1 B$ in 1Q19, a 18% increase compared to 1Q18
Net-debt-to-capital ratio of 19.8% at March 31, 2019
Hydrocarbon production of 2,946 kboe/d in 1Q19, an increase of 9% compared to 1Q18
Ex-dividend date for first interim 2019 dividend of 0.66 €/share on September 27, 2019

Total’s Board of Directors met on April 25, 2019, to approve the Group’s first quarter 2019 financial statements. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

“Markets remained volatile with Brent averaging $63/b in the first quarter, down 6% from last year, while natural gas prices were down 11% in Europe and 30% in Asia. Adjusted net income was $2.8 billion this quarter, down 4%, and return on equity held steady at 12% this quarter.

With strong growth in production that reached 2.95 Mboe/d, up 9% year-on-year, the Group’s cash flow (DACF) increased by more than 15% year-on-year to $6.5 billion (B$), driven by the ramp-up in cash-accretive projects, including Egina in Nigeria, Ichthys in Australia and Kaombo in Angola. Cash flow after organic investments increased to 3.2 B$, up 18% year-on-year, thanks to strong operational performance and ongoing spending discipline, and the organic pre-dividend cash breakeven was less than $25/b.

The Group made two exploration discoveries: Brulpadda in South Africa and Glengorm in the UK North Sea.

Effective this quarter, the new iGRP (integrated Gas, Renewables & Power) reporting segment spearheads the Group’s ambition in the integrated gas value chain and low-carbon electricity. The segment’s operating cash flow before working capital changes increased by 55% year-on-year, thanks to growing LNG production by more than 50% and doubling LNG sales activity by Total. To prepare the segment for profitable growth in the future, the Group finalized its entry into the Arctic LNG 2 project in Russia, signed the gas agreement for the Papua LNG project to enable the launch of the engineering phase, and strengthened its commitment to the Tellurian-led Driftwood LNG project in the United States.

Downstream continued to perform at a high level, generating 1.7 B$ of operating cash flow before working capital changes, up 25% year-on-year.

Total’s balance sheet is strong, with gearing (incorporating the impact of the new IFRS 16 rule on debt) below 20%, in line with the objective. In accordance with the shareholder return policy, the Group increased the first interim dividend for 2019 by 3.1% to €0.66 per share and bought back 0.35 B$ of shares during the quarter, in line with the 2019 target to buy back 1.5 B$ of shares in a $60/b Brent environment. The cash return to the shareholders expressed in dollars stands at 38% of operating cash flow before working capital changes.”

Key figures2

                 

In millions of dollars, except effective tax rate,
earnings per share and number of shares

 

  1Q19   4Q18   1Q18   1Q19

vs

1Q18

Adjusted net operating income from business segments   3,413   3,885   3,385   +1%
Exploration & Production**   1,722   1,976   1,817   -5%
Integrated Gas, Renewables & Power** 592 676 481 +23%
Refining & Chemicals 756 900 720 +5%
Marketing & Services   343   333   367   -7%
Contribution of equity affiliates to adjusted net income   614   893   637   -4%
Group effective tax rate3   40.5%   38.1%   39.9%   -
Adjusted net income   2,759   3,164   2,884   -4%
Adjusted fully-diluted earnings per share (dollars)4   1.02   1.17   1.09   -6%
Adjusted fully-diluted earnings per share (euros)*   0.90   1.02   0.89   +1%
Fully-diluted weighted-average shares (millions)   2,620   2,637   2,568   +2%
                 
Net income (Group share)   3,111   1,132   2,636   +18%
                 
Organic investments5   2,784   4,459   2,620   +6%
Net acquisitions6   306   (1,751)   1,519   -80%
Net investments7   3,090   2,708   4,139   -25%
Operating cash flow

before working capital changes8

  6,033   5,672   5,370   +12%
Operating cash flow before working capital changes w/o financial charges (DACF)9   6,536   6,095   5,668   +15%
Cash flow from operations   3,629   10,640   2,081   +74%

2019 data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
* Average €-$ exchange rate: 1.1358 in the first quarter 2019.
** 1Q18 and 4Q18 restated; historical data for 2017 and 2018 available on www.total.com.

Highlights since the beginning of 201910

  • Started production at the Egina field in Nigeria and Kaombo Sul in Angola
  • Significant exploration discovery of Brulpadda offshore South Africa and a new discovery of Glengorm in UK North Sea
  • Finalized entry into Arctic LNG 2 project in Russia
  • Signed gas agreement with Papua New Guinea for Papua LNG project
  • Agreed to invest in Tellurian-led Driftwood LNG project in the U.S. and lift 2.5 Mt/y
  • Signed 10-year contract to sell 0.7 Mt/y of LNG to private Chinese company Guanghui
  • Acquired Synova, a company specializing in plastics recycling
  • Agreement with Saudi Aramco to develop a joint venture in distribution and acquire a network of 250 service stations in Saudi Arabia
  • Agreement between Saft and the Chinese Tianneng Group to create a joint venture in Lithium-ion batteries

Key figures of environment and Group production

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

    1Q19   4Q18   1Q18   1Q19

vs

1Q18

Brent ($/b)   63.1   68.8   66.8   -6%
Henry Hub ($/Mbtu) 2.9 3.7 2.8 +1%
NBP ($/Mbtu) 6.3 8.8 7.1 -11%
JKM ($/Mbtu)   6.6   10.2   9.4   -30%
Average price of liquids($/b)** 58.7 59.2 60.0 -2%
Average price of gas ($/Mbtu)**   4.5   5.0   4.8   -6%
                 
Variable cost margin - European refining, VCM ($/t)   33.0   40.8   29.8   +11%

* The indicators, which were changed in the first quarter of 2019, are shown on page 15.
** Consolidated subsidiaries.

Brent was down 6% year-on-year to $63.1/b. The average liquids selling price was more resilient, particularly due to higher prices for Canadian bitumen production.

Gas prices fell by 11% in Europe and 30% in Asia year-on-year.

> Production*

    1Q19   4Q18   1Q18   1Q19

vs

1Q18

Hydrocarbon production (kboe/d)   2,946   2,876   2,703   +9%
Oil (including bitumen) (kb/d)**   1,425   1,382   1,297   +10%
Gas (including condensates and associated NGL) (kboe/d)**   1,521   1,493   1,406   +8%
                 
Hydrocarbon production (kboe/d)   2,946   2,876   2,703   +9%
Liquids (kb/d) 1,629 1,589 1,481 +10%
Gas (Mcf/d)   7,321   6,994   6,664   +10%

* Group production = EP production + iGRP production.
** 4Q18 data restated.

Hydrocarbon production was 2,946 thousand barrels of oil equivalent per day (kboe/d) in first quarter 2019, an increase of 9% compared to last year, due to:

  • +11% related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Ichthys in Australia, Kaombo North in Angola and Egina in Nigeria,
  • +3% portfolio effect linked in particular to the integration of Maersk Oil’s assets,
  • -2% linked to production quotas, in particular in the United Arab Emirates, and to the deterioration of safety conditions, notably in Venezuela,
  • -3% due to the natural decline of the fields and to planned maintenance, notably in Qatar.

Analysis of business segments

Exploration & Production (EP – redefined scope)

> Production

Hydrocarbon production   1Q19   4Q18   1Q18   1Q19

vs

1Q18

EP (kboe/d)   2,428   2,408   2,359   +3%
Liquids (kb/d)   1,563   1,541   1,445   +8%
Gas (Mcf/d)   4,707   4,710   4,976   -5%

> Results

In millions of dollars, except effective tax rate   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Adjusted net operating income*   1,722   1,976   1,817   -5%
including income from equity affiliates   213   269   228   -7%
Effective tax rate**   48.6%   41.2%   48.7%   -
                 
Organic investments   1,958   2,765   1,798   +9%
Net acquisitions   38   (143)   1,571   -98%
Net investments   1,996   2,622   3,369   -41%
                 
Operating cash flow before working capital changes***   4,246   3,911   3,921   +8%
Cash flow from operations***   3,936   6,310   3,322   +18%

* 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 1,722 M$ in the first quarter of 2019, a decrease of 5% year-on-year, reflecting the weaker environment and an 84 M$ increase in exploration expense this quarter.

Operating cash flow before working capital changes increased by 8% year-on-year, driven by the production ramp-up of cash accretive new fields. Exploration & Production generated 2.3 B$ of cash flow after organic investments in the first quarter of 2019.

Integrated Gas, Renewables & Power (iGRP)

> Production and liquefied natural gas (LNG) sales

Hydrocarbon production (kboe/d)   1Q19   4Q18   1Q18   1Q19

vs

1Q18

iGRP (kboe/d)   518   468   344   +51%
Liquids (kb/d)   66   48   36   +83%
Gas (Mcf/d)   2,614   2,284   1,688   +55%
                 
LNG (Mt)   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Overall LNG sales   7.7   7.9   3.8   x2
incl. sales from equity production* 3.8 3.3 2.5 +52%
incl. sales by Total from equity production and third party purchases   6.0   6.7   2.6   x2.3

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

Total LNG sales doubled from a year ago with the start-up of Yamal LNG trains 2&3 in Russia, Ichthys in Australia and the acquisition of Engie’s LNG portfolio in 2018.

The year-on-year growth in liquids production is mainly related to the ramp up of condensate production from Ichthys in Australia.

> Results

In millions of dollars   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Adjusted net operating income*   592   676   481   +23%
including income from equity affiliates   255   447   228   +12%
                 
Organic investments   493   614   336   +47%
Net acquisitions   400   (1,348)   86   x4.7
Net investments   893   (734)   422   x2.1
                 
Operating cash flow before working capital changes**   610   617   393   +55%
Cash flow from operations**   892   434   68   x13.1

* 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 sector was 592 M$ in the first quarter of 2019, up 23% year-on-year, thanks notably to the strong increase in LNG sales but impacted by lower gas prices. Operating cash flow before working capital changes increased by 55% year-on-year, thanks in particular to the start-up of Ichthys in Australia.

Refining & Chemicals

> Refinery throughput and utilization rates*

    1Q19   4Q18   1Q18   1Q19

vs

1Q18

Refinery throughput (kb/d)   1,862   1,886   1,832   +2%
France   592   591   624   -5%
Rest of Europe 823 809 746 +10%
Rest of world   447   486   462   -3%
Utlization rate based on crude only**   89%   90%   87%   -

* Includes refineries in Africa reported in the Marketing & Services segment.

** Based on distillation capacity at the beginning of the year.

Refinery throughput volumes increased by 2% in the first quarter 2019 compared to the first quarter 2018, as a result of improved use of facilities in the first quarter of 2019 linked to improved operational performance this year.

> Results

In millions of dollars   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Adjusted net operating income*   756   900   720   +5%
                 
Organic investments   240   615   308   -22%
Net acquisitions   (124)   (429)   (1)   x124
Net investments   116   186   307   -62%
                 
Operating cash flow before working capital changes**   1,104   1,276   920   +20%
Cash flow from operations**   (538)   3,080   (1,109)   -51%

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

With the European refining variable cost margin (VCM) up 11% year-on-year and despite a deterioration in petrochemical margins, adjusted net operating income for the Refining & Chemicals segment increased by 5% year-on-year to 756 M$. Operating cash flow before working capital changes increased by 20% year-on-year.

Marketing & Services

> Petroleum product sales

Sales in kb/d*   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Marketing & Services sales   1,836   1,786   1,801   +2%
Europe   1,012   986   993   +2%
Rest of world   824   800   808   +2%

* Excludes trading and bulk refining sales

Sales of petroleum products increased by 2% compared to last year, in line with market growth.

> Results

In millions of dollars   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Adjusted net operating income*   343   333   367   -7%
                 
Organic investments   80   424   136   -41%
Net acquisitions   (8)   165   (136)   ns
Net investments   72   589   -   ns
Operating cash flow before working capital changes**   582   500   430   +35%
Cash flow from operations**   232   1,226   (60)   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 343 M$ in the first quarter, down 7% year-on-year due to the sale of Total Erg in 2018.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was 3,413 M$ in the first quarter 2019, up 1% year-on-year, despite lower Brent prices. This strong resilience is linked to production growth in a context of continuing efforts to reduce costs.

> Adjusted net income (Group share)

Adjusted net income (Group share) was 2,759 M$ in the first quarter 2019, down 4% compared to last year. This decrease reflects 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.

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 352 M$ in the first quarter 2019, primarily related to inventory items.

The effective tax rate for the Group was stable in the first quarter 2019 at 40.5%, compared to 39.9% last year.

> Adjusted fully-diluted earnings per share

Adjusted earnings per share in the first quarter 2019 decreased by 6% to $1.02, calculated on the basis of a weighted average of 2,620 million fully-diluted shares, from $1.09 in the first quarter 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 to cancel any dilution related to the exercise of this option: 1.2 million shares repurchased in the first quarter 2019.
  • the buyback of additional shares : 6.2 million shares repurchased in the first quarter 2019 for 0.35 B$ as part of the 5 B$ buyback program for 2018-20.

The number of fully-diluted shares was 2,620 million on March 31, 2019.

> Asset sales – acquisitions

Asset sales completed in the first quarter 2019 were 363 M$, comprised mainly of the sale of the Group’s interest in the Hazira terminal in India and its polystyrene activity in China.

Acquisitions completed in the first quarter 2019 were 669 M$, related mainly to the signature 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 2,943 M$ in the first quarter 2019, up sharply year-on-year due to higher operating cash flow before working capital changes and lower net acquisitions.

> Profitability

The return on equity was 11.7% for the twelve months ended March 31, 2019, an increase compared to the same period last year.

In millions of dollars   April 1, 2018

March 31, 2019

  January 1, 2018 to

December 31, 2018

  April 1, 2017

March 31, 2018

Adjusted net income   13,810   13,964   11,150
Average adjusted shareholders' equity   118,094   114,183   111,522
Return on equity (ROE)   11.7%   12.2%   10.0%

The return on average capital employed was 10.7% for the twelve months ended March 31, 2019, an increase compared to the same period last year.

In millions of dollars   April 1, 2018

March 31, 2019

  January 1, 2018 to

December 31, 2018

  April 1, 2017

March 31, 2018

Adjusted net operating income   15,697   15,691   12,428
Average capital employed   146,210   133,123   136,384
ROACE   10.7%   11.8%   9.1%

Total S.A. accounts

Net income for Total S.A., the parent company, was 1,391 million euros in the first quarter 2019, compared with 1,928 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.
*** VCM was introduced with the release of the main indicators for the first quarter of 2019.

Summary and outlook

Since the start of the second quarter 2019, Brent has traded at around $70/b in a context of compliance with OPEC quotas, disrupted production in Venezuela and uncertainty in Libya. The environment remains volatile, however, with uncertainty around the evolution of non-OPEC supply and the impact of global economic growth on demand.

The Group has strong visibility on DACF growth in 2019 with an increase of 6 B$ compared to 2017 at $60/b thanks to the ramp-up of high cash margin projects, like Ichthys in Australia, Kaombo in Angola and Egina in Nigeria, that have already started up. It will also benefit from the full-year contribution of the Maersk Oil assets and ADNOC Offshore in 2019.

The Group maintains its spending discipline in 2019 with a net investment target of 15-16 B$, cost savings of 4.7 B$ 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 this year of Kaombo Sul in Angola, Iara 1 in Brazil, Culzean in the UK and Johan Sverdrup in Norway. To take advantage of the favorable cost environment, the Group is working to launch profitable projects, including Mero 2 in Brazil, Tilenga & Kingfisher in Uganda and Arctic LNG 2 in Russia.

After the acquisition of Engie’s LNG assets in 2018, the Group is continuing to grow in this area in 2019 with the planned start-up of Cameron LNG in the United States.

Refining margins remain volatile at the start of the second quarter and the refinery utilization rate is expected to be affected by seasonal maintenance in France and the UK in the second quarter.

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, and it will eliminate the scrip dividend option as of June 2019.

-- -- --

To listen to the presentation by CFO Patrick de La Chevardière 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: 9794372). 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: 9794372).

* * * * *

Operating information by segment

> Group production (EP + iGRP)

Combined liquids and gas

production by region (kboe/d)

  1Q19   4Q18   1Q18   1Q19

vs

1Q18

Europe and Central Asia   990   997   886   +12%
Africa 697 661 673 +3%
Middle East and North Africa 686 655 639 +7%
Americas 373 386 371 +1%
Asia-Pacific   201   176   134   +50%
Total production   2,946   2,876   2,703   +9%
includes equity affiliates   709   699   724   -2%
Liquids production by region (kb/d)   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Europe and Central Asia   352   363   299   +18%
Africa 540 509 503 +7%
Middle East and North Africa 522 503 501 +4%
Americas 177 191 165 +7%
Asia-Pacific   39   22   13   +199%
Total production   1,629   1,589   1,481   +10%
includes equity affiliates   217   231   304   -29%
Gas production by region (Mcf/d)   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Europe and Central Asia   3,426   3,416   3,157   +9%
Africa 792 738 857 -8%
Middle East and North Africa 905 843 761 +19%
Americas 1,101 1,094 1,158 -5%
Asia-Pacific   1,097   903   731   +50%
Total production   7,321   6,994   6,664   +10%
includes equity affiliates   2,653   2,524   2,257   +18%

> Downstream (Refining & Chemicals and Marketing & Services)

Petroleum product sales by region (kb/d)   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Europe   2,022   2,062   1,902   +6%
Africa 658 778 754 -13%
Americas 839 767 760 +10%
Rest of world   616   531   680   -9%
Total consolidated sales   4,135   4,138   4,096   +1%
Includes bulk sales   557   593   570   -2%
Includes trading   1,742   1,759   1,725   +1%

Adjustment items to net income (Group share)

In millions of dollars   1Q19   4Q18   1Q18
Special items affecting net income (Group share)   (14)   (1,026)   (195)
Gain (loss) on asset sales   -   (2)   (101)
Restructuring charges (2) (32) (21)
Impairments - (1,259) (12)
Other   (12)   267   (61)
After-tax inventory effect : FIFO vs. replacement cost   388   (1,052)   (45)
Effect of changes in fair value   (22)   46   (8)
             
Total adjustments affecting net income   352   (2,032)   (248)

Investments - Divestments

Investments - divestments                
In millions of dollars   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Organic investments (a)   2,784   4,459   2,620   +6%
capitalized exploration 232 306 111 x2.1
increase in non-current loans 130 160 171 -24%
repayment of non-current loans   (134)   (382)   (416)   -68%
Acquisitions (b)   669   349   3,688   -82%
Asset sales (c)   363   2,101   2,169   -83%
Other transactions with non-controlling interests (d)   -   (1)   -   -
Net investments (a + b - c - d)   3,090   2,708   4,139   -25%

Cash flow

In millions of dollars   1Q19   4Q18   1Q18   1Q19

vs

1Q18

Operating cash flow before working capital changes excluding financials charges (DACF)   6,536   6,095   5,668   +15%
Financial charges (503) (423) (298) +69%
Operating cash flow before working capital changes (a) 6,033 5,672 5,370 +12%
(Increase) decrease in working capital (2,970) 6,425 (3,222) -8%
Inventory effect   566   (1,457)   (67)   ns
Cash flow from operations   3,629   10,640   2,081   +74%
                 
Organic investments (b)   2,784   4,459   2,620   +6%
Free cash flow after organic investments,

excluding net acquisitions (a-b)

  3,249   1,213   2,750   +18%
                 
Net investments ( c )   3,090   2,708   4,139   -25%
Net cash flow (a-c)   2,943   2,964   1,231   x2.4

Gearing ratio*

In millions of dollars   03/31/2019   12/31/2018   03/31/2018
Current borrowings   13,906   13,306   14,909
Net current financial assets (2,722) (3,176) (1,920)
Net financial assets classified as held for sale 227 (15) -
Non-current financial debt 44,396 40,129 40,257
Hedging instruments of non-current debt (637) (680) (1,154)
Cash and cash equivalents   (25,432)   (27,907)   (30,092)
Net debt (a)   29,738   21,657   22,000
             
Shareholders’ equity - Group share 117,993 115,640 121,187
Non-controlling interests   2,365   2,474   2,499
Shareholders' equity (b)   120,358   118,114   123,686
             
Net-debt-to-capital ratio = a / (a + b)   19.8%   15.5%   15.1%

*The net-debt-to-capital ratio on March 31, 2019 includes the impact of the new IFRS 16 rule, effective January 1, 2019.

Return on average capital employed

> 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 3/31/2018* 93,276 30,996 13,428 7,409 143,957
Capital employed at 3/31/2019*   90,051   37,235   13,153   8,255 148,463
ROACE   9.2%   7.4%   25.7%   20.8% 10.7%

> Full-year 2018

In millions of dollars   Exploration & Production   Integrated Gas, Renewables & Power   Refining & Chemicals   Marketing & Services   Group
Adjusted net operating income   8,547   2,419   3,379   1,652 15,691
Capital employed at 12/31/2017* 82,510 30,103 11,045 6,929 127,727
Capital employed at 12/31/2018*   89,400   34,746   10,599   6,442 138,519
ROACE   9.9%   7.5%   31.2%   24.7% 11.8%

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

This press release presents the results for the first quarter 2019 from the consolidated financial statements of TOTAL S.A. as of March 31, 2019 (unaudited). The review procedures by the Statutory Auditors are underway. This document does not constitute the Annual Financial Report (Rapport Financier Annuel) within the meaning of article L. 451-1-2 of the French monetary and financial Code (Code monétaire et financier).

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

Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, 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) and gearing ratio. 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

First quarter 2019 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME      
TOTAL        
(unaudited)
  1st quarter 4th quarter 1st quarter
(M$)(a)   2019 2018 2018
 
Sales 51,205 52,495 49,611
Excise taxes (6,081) (6,183) (6,319)
Revenues from sales 45,124 46,312 43,292
 
Purchases, net of inventory variation (29,721) (33,420) (29,446)
Other operating expenses (6,725) (6,913) (6,937)
Exploration costs (288) (201) (204)
Depreciation, depletion and impairment of tangible assets and mineral interests (3,466) (4,362) (2,916)
Other income 247 482 523
Other expense (209) (315) (190)
 
Financial interest on debt (561) (529) (390)
Financial income and expense from cash & cash equivalents (28) (30) (41)
Cost of net debt (589) (559) (431)
 
Other financial income 160 269 240
Other financial expense (195) (185) (170)
 
Net income (loss) from equity affiliates 711 665 484
 
Income taxes   (1,909) (593) (1,596)
Consolidated net income   3,140 1,180 2,649
Group share 3,111 1,132 2,636
Non-controlling interests   29 48 13
Earnings per share ($)   1.17 0.40 1.00
Fully-diluted earnings per share ($)   1.16 0.40 0.99
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
TOTAL        
(unaudited)
1st quarter 4th quarter 1st quarter
(M$)   2019 2018 2018
Consolidated net income   3,140 1,180 2,649
 
Other comprehensive income
 
Actuarial gains and losses 164 (112) 25
Change in fair value of investments in equity instruments 33 (3) 7
Tax effect (45) 44 2
Currency translation adjustment generated by the parent company   (1,531) (881) 2,131
Items not potentially reclassifiable to profit and loss   (1,379) (952) 2,165
Currency translation adjustment 806 52 (362)
Cash flow hedge (127) (285) 178
Variation of foreign currency basis spread 11 (14) (29)
Share of other comprehensive income of equity affiliates, net amount 388 (266) (168)
Other 1 (1) -
Tax effect   38 98 (48)
Items potentially reclassifiable to profit and loss   1,117 (416) (429)
Total other comprehensive income (net amount)   (262) (1,368) 1,736
         
Comprehensive income   2,878 (188) 4,385
Group share 2,840 (221) 4,356
Non-controlling interests 38 33 29
CONSOLIDATED BALANCE SHEET      
TOTAL
March 31, 2019 December 31, 2018 March 31, 2018
(M$)   (unaudited) (unaudited) (unaudited)
 
ASSETS
 
Non-current assets
Intangible assets, net 28,727 28,922 24,502
Property, plant and equipment, net 117,881 113,324 116,181
Equity affiliates : investments and loans 25,996 23,444 22,332
Other investments 1,468 1,421 1,710
Non-current financial assets 637 680 1,154
Deferred income taxes 6,246 6,663 5,519
Other non-current assets   2,156 2,509 3,633
Total non-current assets   183,111 176,963 175,031
 
Current assets
Inventories, net 17,075 14,880 17,006
Accounts receivable, net 19,321 17,270 17,774
Other current assets 16,237 14,724 14,824
Current financial assets 3,373 3,654 2,289
Cash and cash equivalents 25,432 27,907 30,092
Assets classified as held for sale   314 1,364 -
Total current assets   81,752 79,799 81,985
Total assets   264,863 256,762 257,016
LIABILITIES & SHAREHOLDERS' EQUITY      
 
Shareholders' equity
Common shares 8,231 8,227 8,207
Paid-in surplus and retained earnings 123,702 120,569 120,559
Currency translation adjustment (11,606) (11,313) (6,413)
Treasury shares   (2,334) (1,843) (1,166)
Total shareholders' equity - Group share   117,993 115,640 121,187
Non-controlling interests   2,365 2,474 2,499
Total shareholders' equity   120,358 118,114 123,686
 
Non-current liabilities
Deferred income taxes 11,339 11,490 11,943
Employee benefits 3,150 3,363 3,796
Provisions and other non-current liabilities 21,020 21,432 19,268
Non-current financial debt   44,396 40,129 40,257
Total non-current liabilities   79,905 76,414 75,264
 
Current liabilities
Accounts payable 26,416 26,134 24,836
Other creditors and accrued liabilities 23,361 22,246 17,952
Current borrowings 13,906 13,306 14,909
Other current financial liabilities 651 478 369
Liabilities directly associated with the assets classified as held for sale   266 70 -
Total current liabilities   64,600 62,234 58,066
Total liabilities & shareholders' equity   264,863 256,762 257,016
CONSOLIDATED STATEMENT OF CASH FLOW      
TOTAL
(unaudited)
1st quarter 4th quarter 1st quarter
(M$)   2019 2018 2018
 
CASH FLOW FROM OPERATING ACTIVITIES
 
Consolidated net income 3,140 1,180 2,649
Depreciation, depletion, amortization and impairment 3,716 4,553 3,046
Non-current liabilities, valuation allowances and deferred taxes 140 (1,356) 114
(Gains) losses on disposals of assets (173) (390) (125)
Undistributed affiliates' equity earnings (306) 147 (259)
(Increase) decrease in working capital (2,970) 6,425 (3,222)
Other changes, net   82 81 (122)
Cash flow from operating activities 3,629 10,640 2,081
CASH FLOW USED IN INVESTING ACTIVITIES      
 
Intangible assets and property, plant and equipment additions (2,704) (4,550) (5,665)
Acquisitions of subsidiaries, net of cash acquired - 49 (726)
Investments in equity affiliates and other securities (753) (529) (162)
Increase in non-current loans   (130) (160) (171)
Total expenditures (3,587) (5,190) (6,724)
Proceeds from disposals of intangible assets and property, plant and equipment 8 1,321 1,978
Proceeds from disposals of subsidiaries, net of cash sold 147 27 3
Proceeds from disposals of non-current investments 208 753 188
Repayment of non-current loans   134 382 416
Total divestments   497 2,483 2,585
Cash flow used in investing activities (3,090) (2,707) (4,139)
CASH FLOW USED IN FINANCING ACTIVITIES      
 
Issuance (repayment) of shares:
- Parent company shareholders 1 - 9
- Treasury shares (491) (1,744) (558)
Dividends paid:
- Parent company shareholders (1,830) (705) (1,516)
- Non-controlling interests - (4) (12)
Issuance of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (140) (59) (150)
Other transactions with non-controlling interests (150) (1) -
Net issuance (repayment) of non-current debt 1,250 931 (2,480)
Increase (decrease) in current borrowings (1,526) (2,994) 1,707
Increase (decrease) in current financial assets and liabilities 106 (242) 1,155
Cash flow used in financing activities   (2,780) (4,818) (1,845)
Net increase (decrease) in cash and cash equivalents   (2,241) 3,115 (3,903)
Effect of exchange rates (234) (460) 810
Cash and cash equivalents at the beginning of the period   27,907 25,252 33,185
Cash and cash equivalents at the end of the period   25,432 27,907 30,092
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 quarter 2018

   -   -   2,636   -       -   -       2,636   13       2,649
Other comprehensive Income   -   -   225   1,495       -   -       1,720   16       1,736
Comprehensive Income   -   -   2,861   1,495       -   -       4,356   29       4,385
Dividend   -   -   -   -       -   -       -   (12)       (12)
Issuance of common shares   104,830,551   325   5,675   -       -   -       6,000   -       6,000
Purchase of treasury shares   -   -   -   -       (12,471,369)   (708)       (708)   -       (708)
Sale of treasury shares(a)   -   -   -   -       -   -       -   -       -
Share-based payments   -   -   129   -       -   -       129   -       129
Share cancellation   -   -   -   -       -   -       -   -       -
Issuance of perpetual subordinated notes   -   -   -   -       -   -       -   -       -
Payments on perpetual subordinated notes   -   -   (81)   -       -   -       (81)   -       (81)
Other operations with

non-controlling interests

  -   -   (4)   -       -   -       (4)   4       -
Other items   -   -   (61)   -       -   -       (61)   (3)       (64)
As of March 31, 2018   2,633,820,167   8,207   120,559   (6,413)       (20,848,125)   (1,166)       121,187   2,499       123,686
Net income from April 1 to December 31, 2018   -   -   8,810   -       -   -       8,810   91       8,901
Other comprehensive Income   -   -   (245)   (4,900)       -   -       (5,145)   (85)       (5,230)
Comprehensive Income   -   -   8,565   (4,900)       -   -       3,665   6       3,671
Dividend   -   -   (7,881)   -       -   -       (7,881)   (85)       (7,966)
Issuance of common shares   51,372,539   151   2,691   -       -   -       2,842   -       2,842
Purchase of treasury shares   -   -   -   -       (60,295,112)   (3,620)       (3,620)   -       (3,620)
Sale of treasury shares(a)   -   -   (240)   -       4,079,257   240       -   -       -
Share-based payments   -   -   165   -       -   -       165   -       165
Share cancellation   (44,590,699)   (131)   (2,572)   -       44,590,699   2,703       -   -       -
Issuance of perpetual subordinated notes   -   -   -   -       -   -       -   -       -
Payments on perpetual subordinated notes   -   -   (234)   -       -   -       (234)   -       (234)
Other operations with

non-controlling interests

  -   -   (513)   -       -   -       (513)   (103)       (616)
Other items   -   -   29   -       -   -       29   157       186
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 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   -   -   -   -       -   -       -   -       -
Issuance 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

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

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)
                             
4th quarter 2018 Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales 2,119 3,781 23,365 23,226 4 - 52,495
Intersegment sales 7,659 662 8,786 246 18 (17,371) -
Excise taxes   -   -   (822)   (5,361)   -   -   (6,183)
Revenues from sales 9,778 4,443 31,329 18,111 22 (17,371) 46,312
Operating expenses (4,540) (3,896) (31,552) (17,671) (246) 17,371 (40,534)
Depreciation, depletion and impairment of tangible assets and mineral interests   (3,046)   (807)   (311)   (187)   (11)   -   (4,362)
Operating income 2,192 (260) (534) 253 (235) - 1,416
Net income (loss) from equity affiliates and other items 339 399 144 5 29 - 916
Tax on net operating income   (798)   (79)   230   (69)   48   -   (668)
Net operating income 1,733 60 (160) 189 (158) - 1,664
Net cost of net debt (484)
Non-controlling interests                           (48)
Net income - group share 1,132
                             
4th quarter 2018(a) Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales - 43 - - - - 43
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 43 - - - - 43
Operating expenses 1 (72) (1,323) (197) - - (1,591)
Depreciation, depletion and impairment of tangible assets and mineral interests   (642)   (580)   (2)   -   -   -   (1,224)
Operating income (b) (641) (609) (1,325) (197) - - (2,772)
Net income (loss) from equity affiliates and other items - (207) (150) (5) - - (362)
Tax on net operating income   398   200   415   58   -   -   1,071
Net operating income (b) (243) (616) (1,060) (144) - - (2,063)
Net cost of net debt (4)
Non-controlling interests                           35
Net income - group share (2,032)
 

(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 - - (1,299) (158) -
- On net operating income - - (963) (113) -
                             
4th quarter 2018 Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales 2,119 3,738 23,365 23,226 4 - 52,452
Intersegment sales 7,659 662 8,786 246 18 (17,371) -
Excise taxes   -   -   (822)   (5,361)   -   -   (6,183)
Revenues from sales 9,778 4,400 31,329 18,111 22 (17,371) 46,269
Operating expenses (4,541) (3,824) (30,229) (17,474) (246) 17,371 (38,943)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,404)   (227)   (309)   (187)   (11)   -   (3,138)
Adjusted operating income 2,833 349 791 450 (235) - 4,188
Net income (loss) from equity affiliates and other items 339 606 294 10 29 - 1,278
Tax on net operating income   (1,196)   (279)   (185)   (127)   48   -   (1,739)
Adjusted net operating income 1,976 676 900 333 (158) - 3,727
Net cost of net debt (480)
Non-controlling interests                           (83)
Adjusted net income - group share 3,164
                             
4th quarter 2018 Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Total expenditures 3,160 685 668 627 50 5,190
Total divestments 538 1,419 482 38 6 2,483
Cash flow from operating activities   6,310   434   3,080   1,226   (410)       10,640
INFORMATIONS BY BUSINESS SEGMENT
TOTAL              
(unaudited)
                             
1st quarter 2018 Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales 2,218 4,340 21,739 21,308 6 - 49,611
Intersegment sales 6,777 492 7,956 198 97 (15,520) -
Excise taxes   -   -   (847)   (5,472)   -   -   (6,319)
Revenues from sales 8,995 4,832 28,848 16,034 103 (15,520) 43,292
Operating expenses (3,930) (4,518) (27,879) (15,503) (277) 15,520 (36,587)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,216)   (204)   (313)   (174)   (9)   -   (2,916)
Operating income 2,849 110 656 357 (183) - 3,789
Net income (loss) from equity affiliates and other items 321 354 128 86 (2) - 887
Tax on net operating income   (1,432)   (133)   (104)   (103)   96   -   (1,676)
Net operating income 1,738 331 680 340 (89) - 3,000
Net cost of net debt (351)
Non-controlling interests                           (13)
Net income - group share 2,636
                             
1st quarter 2018 (adjustments)(a) Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales - (11) - - - - (11)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (11) - - - - (11)
Operating expenses (53) (92) (38) (29) (9) - (221)
Depreciation, depletion and impairment of tangible assets and mineral interests   -   (22)   -   -   -   -   (22)
Operating income (b) (53) (125) (38) (29) (9) - (254)
Net income (loss) from equity affiliates and other items (101) (11) (21) (1) - - (134)
Tax on net operating income   75   (14)   19   3   -   -   83
Net operating income (b) (79) (150) (40) (27) (9) - (305)
Net cost of net debt (10)
Non-controlling interests                           67
Net income - group share (248)
 

(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 - - (38) (29) -
- On net operating income - - (23) (27) -
                             
1st quarter 2018 (adjusted) Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Non-Group sales 2,218 4,351 21,739 21,308 6 - 49,622
Intersegment sales 6,777 492 7,956 198 97 (15,520) -
Excise taxes   -   -   (847)   (5,472)   -   -   (6,319)
Revenues from sales 8,995 4,843 28,848 16,034 103 (15,520) 43,303
Operating expenses (3,877) (4,426) (27,841) (15,474) (268) 15,520 (36,366)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,216)   (182)   (313)   (174)   (9)   -   (2,894)
Adjusted operating income 2,902 235 694 386 (174) - 4,043
Net income (loss) from equity affiliates and other items 422 365 149 87 (2) - 1,021
Tax on net operating income   (1,507)   (119)   (123)   (106)   96   -   (1,759)
Adjusted net operating income 1,817 481 720 367 (80) - 3,305
Net cost of net debt (341)
Non-controlling interests                           (80)
Adjusted net income - group share 2,884
                             
1st quarter 2018 Exploration

&

Production

Integrated Gas,

Renewables

& Power

Refining

&

Chemicals

Marketing

&

Services

Corporate Intercompany Total
(M$)              
Total expenditures 5,545 575 332 228 44 6,724
Total divestments 2,176 153 25 228 3 2,585
Cash flow from operating activities   3,322   68   (1,109)   (60)   (140)       2,081
Reconciliation of the information by business segment with Consolidated Financial Statements
TOTAL
(unaudited)
      Consolidated
1st quarter 2019 statement
(M$)   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.

 
Consolidated
1st quarter 2018 statement
(M$)   Adjusted   Adjustments(a)   of income
Sales 49,622 (11) 49,611
Excise taxes (6,319) - (6,319)
Revenues from sales 43,303 (11) 43,292
 
Purchases net of inventory variation (29,360) (86) (29,446)
Other operating expenses (6,802) (135) (6,937)
Exploration costs (204) - (204)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,894) (22) (2,916)
Other income 374 149 523
Other expense (60) (130) (190)
 
Financial interest on debt (380) (10) (390)
Financial income and expense from cash & cash equivalents (41) - (41)
Cost of net debt (421) (10) (431)
 
Other financial income 240 - 240
Other financial expense (170) - (170)
 
Net income (loss) from equity affiliates 637 (153) 484
 
Income taxes   (1,679)   83   (1,596)
Consolidated net income 2,964 (315) 2,649
Group share 2,884 (248) 2,636
Non-controlling interests 80 (67) 13
 

(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 = Total expenditures – asset sales - repayment of non-current loans - other operations with non-controlling interests.
8 Operating cash flow before working capital changes (including only financial charges related to leases), is defined as cash flow from operating activities before changes in working capital at replacement cost. The inventory valuation effect is explained on page 14. The reconciliation table for different cash flow figures is on page 12.
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).

Total
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