Total: Creation of the Integrated Gas, Renewabl...
Restatement of key figures of the business segments for the years 2017 and 2018
Total: Creation of the Integrated Gas, Renewables & Power Business Segment
TOTAL
The profitable growth in the gas and low carbon electricity integrated value chains is one of the key axes of Total’s (Paris:FP) (LSE:TTA) (NYSE:TOT) strategy. In order to give more visibility to these businesses, a new reporting structure for the business segments’ financial information has been put in place, effective January 1, 2019 and organized around four business segments: Exploration & Production (EP), Integrated Gas, Renewables & Power segment (iGRP), Refining & Chemicals (RC) and Marketing & Services (MS).
The iGRP segment spearheads Total’s ambitions in integrated gas (including LNG, liquefied natural gas) and low carbon electricity businesses. It consists of the upstream and midstream LNG activity that was previously reported in the EP segment (refer to the indicative list of assets in the Annex) and the activity previously reported in the Gas Renewables & Power segment. The new EP segment is adjusted accordingly.
The RC and MS segments are not affected.
The tables below show the key figures for the years 2017 and 2018 restated in order to reflect these changes.
| Group hydrocarbon production | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| Group production (kboe/d) | Â | 2,566 | Â | 2,775 | Â | 2,703 | Â | 2,717 | Â | 2,804 | Â | 2,876 |
| EP (kboe/d) | Â | 2,229 | Â | 2,394 | Â | 2,359 | Â | 2,375 | Â | 2,433 | Â | 2,408 |
| iGRP (kboe/d) | Â | 337 | Â | 381 | Â | 344 | Â | 342 | Â | 371 | Â | 468 |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Group production (kboe/d) | Â | 2,566 | Â | 2,775 | Â | 2,703 | Â | 2,717 | Â | 2,804 | Â | 2,876 |
| Oil (including bitumen) (kb/d) | 1,167 | 1,378 | 1,297 | 1,400 | 1,431 | 1,382 | ||||||
|
Gas (including Condensates and associated LPG) |
 | 1,398 |  | 1,397 |  | 1,406 |  | 1,317 |  | 1,373 |  | 1,493 |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Group production (kboe/d) | Â | 2,566 | Â | 2,775 | Â | 2,703 | Â | 2,717 | Â | 2,804 | Â | 2,876 |
| Liquids (kb/d) | 1,346 | 1,566 | 1,481 | 1,582 | 1,611 | 1,589 | ||||||
| Gas (Mcf/d) | Â | 6,662 | Â | 6,599 | Â | 6,664 | Â | 6,176 | Â | 6,557 | Â | 6,994 |
EP – Exploration-Production (redefined scope)
> Production
| Hydrocarbon production | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| EP (kboe/d) | Â | 2,229 | Â | 2,394 | Â | 2,359 | Â | 2,375 | Â | 2,433 | Â | 2,408 |
| Liquids (kb/d) | Â | 1,310 | Â | 1,527 | Â | 1,445 | Â | 1,544 | Â | 1,575 | Â | 1,541 |
| Gas (Mcf/d) | Â | 4,995 | Â | 4,724 | Â | 4,976 | Â | 4,536 | Â | 4,678 | Â | 4,710 |
> Key financial metrics
| In millions of dollars | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| Adjusted operating income | Â | 6,208 | Â | 13,408 | Â | 2,902 | Â | 3,726 | Â | 3,947 | Â | 2,833 |
| Effective tax rate | Â | 40.5% | Â | 46.2% | Â | 48.7% | Â | 46.6% | Â | 47.5% | Â | 41.2% |
| Adjusted net operating income | Â | 4,541 | Â | 8,547 | Â | 1,817 | Â | 2,315 | Â | 2,439 | Â | 1,976 |
| including income from equity affiliates | Â | 827 | Â | 1140 | Â | 228 | Â | 327 | Â | 316 | Â | 269 |
| Investments | Â | 10,005 | Â | 13,789 | Â | 5,545 | Â | 2,612 | Â | 2,472 | Â | 3,160 |
| Divestments | Â | 1,793 | Â | 3,674 | Â | 2,176 | Â | 466 | Â | 494 | Â | 538 |
| Organic investments | Â | 9,110 | Â | 7,953 | Â | 1,798 | Â | 1,785 | Â | 1,605 | Â | 2,765 |
| Operating cash flow before working capital changes * | Â | 12,758 | Â | 17,832 | Â | 3,921 | Â | 4,800 | Â | 5,200 | Â | 3,911 |
| Cash flow from operations * | Â | 10,719 | Â | 18,537 | Â | 3,322 | Â | 4,474 | Â | 4,431 | Â | 6,310 |
* Excluding financial charges
Note: For definitions, refer to the Group quarterly result press release
iGRP - Integrated Gas, Renewables & Power
> Production and LNG sales
| Hydrocarbon production | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| iGRP (kboe/d) | Â | 337 | Â | 381 | Â | 344 | Â | 342 | Â | 371 | Â | 468 |
| Liquids (kb/d) | Â | 36 | Â | 40 | Â | 36 | Â | 38 | Â | 36 | Â | 48 |
| Gas (Mcf/d) | Â | 1,668 | Â | 1,875 | Â | 1,688 | Â | 1,640 | Â | 1,879 | Â | 2,284 |
| Liquefied natural gas (Mt) | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| Overall LNG sales | Â | 15.6 | Â | 21.8 | Â | 3.8 | Â | 3.9 | Â | 6.2 | Â | 7.9 |
| incl. sales from equity production* | Â | 11.2 | Â | 11.1 | Â | 2.5 | Â | 2.5 | Â | 2.8 | Â | 3.3 |
|
incl. sales by Total from equity production and  |
 | 7.6 |  | 17.1 |  | 2.6 |  | 2.7 |  | 5.1 |  | 6.7 |
* Equity production can be sold either by Total or by JV
> Key financial metrics
| In millions of dollars | Â | 2017 | Â | 2018 | Â | 1Q18 | Â | 2Q18 | Â | 3Q18 | Â | 4Q18 |
| Adjusted operating income | Â | 1,435 | Â | 1,174 | Â | 235 | Â | 217 | Â | 373 | Â | 349 |
| Adjusted net operating income | Â | 1,929 | Â | 2,419 | Â | 481 | Â | 565 | Â | 697 | Â | 676 |
| including income from equity affiliates | Â | 804 | Â | 1,249 | Â | 228 | Â | 250 | Â | 324 | Â | 447 |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Investments | Â | 3,594 | Â | 5,032 | Â | 575 | Â | 447 | Â | 3,325 | Â | 685 |
| Divestments | Â | 198 | Â | 2,209 | Â | 153 | Â | 439 | Â | 198 | Â | 1,419 |
| Organic investments | Â | 2,553 | Â | 1,745 | Â | 336 | Â | 388 | Â | 407 | Â | 614 |
| Operating cash flow before working capital changes * | Â | 2,289 | Â | 2,055 | Â | 393 | Â | 492 | Â | 553 | Â | 617 |
| Cash flow from operations * | Â | 3,157 | Â | 596 | Â | 68 | Â | 258 | Â | (164) | Â | 434 |
* Excluding financial charges
ANNEX
Indicative list of assets reported in EP segment until end-2018 and in iGRP segment from January 1, 2019 onwards
| Country | Â | Asset | Â | % equity |
| Angola | Â | Angola LNG | Â | 13.60% |
| Australia | Â | Gladstone LNG | Â | 27.50% |
| Australia | Â | Ichthys | Â | 26.00% |
| Indonesia | Â | Mahakam | Â | Until end 2017 (Mahakam license expired) |
| Nigeria | Â | Nigeria LNG | Â | 15.00% |
| Nigeria | Â | OML 58 | Â | 40.00% |
| Norway | Â | Snohvit | Â | 18.40% |
| Oman | Â | Oman LNG | Â | 5.54% |
| Oman | Â | Qalhat LNG | Â | 2.04%. indirect participation through Oman LNG |
| Papua New Guinea | Â | Papua LNG | Â | 40.10% |
| Qatar | Â | Qatargas 1 Upstream | Â | 20.00% |
| Qatar | Â | Qatargas 1 Downstream | Â | 10.00% |
| Qatar | Â | Qatargas 2 Train 5 | Â | 16.70% |
| Russia | Â | Arctic LNG 2* | Â |
10.00% direct working interest (21.64 % including |
| Russia | Â | Yamal LNG | Â |
20.02% direct working interest (29.72% including |
| United Arab Emirates | Â | ADNOC LNG | Â | 5.00% |
| USA | Â | Barnett Shale *** | Â | 90.92% in average |
| Yemen | Â | Yemen LNG | Â | 39.62% |
* Total signed definitive agreements for entry into Arctic LNG 2 on the 5th
of March 2019
** The iGRP segment includes the interests that Total
holds in Arctic LNG 2 and Yamal LNG projects through its 19.4% ownership
in Novatek. The other Novatek assets remain included in the EP figures.
***
Barnett shale consolidated in iGRP reporting along with the other
Group’s LNG assets, such as the Group’s equity in Cameron LNG or
Tellurian Inc., which were already reported in GRP end-2018
The restated data presented herein have been derived from TOTAL’s internal reporting system and have not been audited by TOTAL’s statutory auditors. Such related financial data are presented solely for information purposes. To the extent permitted by law, TOTAL S.A. disclaims all liability from the use of the restated financial data.
The list of assets in the Annex is presented for indicative purposes, and mentions the assets previously reported in the EP reporting segment, which are, as from January 1, 2019, reported in the iGRP reporting segment. This list refers to assets or contractual rights which may group the contributions of multiple subsidiaries and/or consolidated entities.
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). 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.
Additional information concerning the risk factors and uncertainties that may have an impact on the Group's financial results or activities is available in the most recent versions of the Registration Document (Document de référence) filed with the French Autorité des marchés financiers (AMF) and the Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (SEC).
View source version on businesswire.com: https://www.businesswire.com/news/home/20190405005089/en/
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