Total: Second Quarter and First Half 2008 Results
Strong Performance Driven by Upstream
TOTAL S.A.
Regulatory News:
Main results( 1-2)
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*T
-- Second quarter adjusted net income( 3) 3.7 billion euros +20%
5.8 billion dollars +39%
1.65 euros per share +21%
2.58 dollars per share +41%
-- First half adjusted net income 7.0 billion euros +15%
10.7 billion dollars +32%
-- First half net income (Group share) 8.3 billion euros +29%
*T
Highlights since the beginning of the second quarter 2008
-- Upstream production increased by 1.3% to 2,353 kboe/d in the second
quarter(1)
-- First production from Moho Bilondo in Congo and Jura in the UK North Sea
-- Temporary shutdown of the Al Jurf field in Libya following a drilling
incident
-- Agreement signed with Libyan national company NOC to amend and extend
the contracts for Blocks NC 115 and NC 186 in the Murzuk Basin
-- Start-up of U.S. Gulf Coast Sabine Pass regasification terminal where
Total has secured capacity of approximately 1 Bcf/d
-- Total strengthened partnership with CNOOC and signed agreement to supply
China with 1 million tons per year of LNG starting in 2010
-- Confirmation of the Jubail refinery project in Saudi Arabia in
partnership with Saudi Aramco
-- Public offer to acquire Synenco in Canada as part of strategy to
strengthen the Group's position in heavy oil
-- Discoveries in the UK North Sea and Brunei
-- Additional exploration acreage in Australia, Malaysia and Gulf of Mexico
plus MOU agreement with SOCAR for exploration in the Absheron area in
Azerbaidjan
The Board of Directors of Total (Paris:FP) (LSE:TTA) (NYSE:TOT) , led by
Chairman Thierry Desmarest, met on July 31, 2008 to review the Group's second
quarter and first half 2008 accounts.
Adjusted net income was 3,723 million euros (M EUR ), an increase of 20%
compared to the second quarter 2007 and 14% compared to the first quarter 2008.
Commenting on the results, CEO Christophe de Margerie said :
'In the second quarter, demand for oil remained robust, driven by continued
growth in Asia and the Middle East, and despite signs of a slow down in the
Atlantic Basin. Tensions around global production capacity remain even after the
increased contribution of Saudi Arabia. Geopolitical uncertainties or security
issues in several important growth areas combined with the ongoing decline in
mature producing areas continued to constrain supply. This led to an almost
continuous increase in the price of Brent crude to more than 140 dollars per
barrel. Natural gas prices also rose sharply in major markets.
European refining margins were high, sustained by strong demand for distillates.
Further downstream in the petroleum chain, marketing was under pressure from an
increase in refined product prices and European petrochemicals were squeezed by
the rapid rise in the price of naphtha and by weak demand in the Atlantic Basin.
In parallel, the dollar continued to depreciate, falling 14% against the euro
compared to the second quarter 2007.
In this environment, adjusted fully-diluted earnings per share expressed in
dollars increased by 41% compared to the second quarter 2007, and the
profitability of the business segments for the twelve months ended June 30, 2008
came in at 29%.
This performance was driven by the Upstream segment, which demonstrated once
again the strong sensitivity of its results to high hydrocarbon prices. Total
also benefited from production growth of 1.3% compared to the second quarter
2007. This growth came mainly from successes on major projects operated by
Total, including the West African deep-offshore with Block 17 in Angola and the
new offshore Moho Bilondo field in Congo, in the Middle East with the Dolphin
project, and in the North Sea with the start-up of the Jura field.
The Group strengthened strategic partnerships in the Middle East and Asia by
confirming with Saudi Aramco the Jubail refinery project in Saudi Arabia and by
signing an agreement with CNOOC that includes an LNG sales contract for the
Chinese market starting in 2010.
Thanks to an adaptable workforce, an established and well-positioned presence in
the industry's main growth sectors, and its many competitive advantages, Total
is well prepared to anticipate the challenges of tomorrow in energy and climate
change and to present balanced solutions suited to an environment undergoing
dramatic changes.
For this reason, Total has pursued, for many years, an investment and R&D
program that is among the most intensive in the industry, is progressively
repositioning its portfolio by developing new partnerships and areas of
expertise for the long term, and reaffirms among its priorities the importance
of safety and energy efficiency in its operations.'
-- Key figures( 4)
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in millions of
euros
2Q08 1H08 vs
2Q08 1Q08 2Q07 vs except earnings 1H08 1H07 1H07
2Q07 per share and
number of
shares
----------------------------------------------------------------------
48,2 44,213 39,094 23% Sales 92,413 76,137 21%
----------------------------------------------------------------------
Adjusted
operating
7,786 7,119 5,756 35% income from 14,905 11,485 30%
business
segments
----------------------------------------------------------------------
Adjusted net
operating
3,756 3,2 3,081 22% income from 6,956 6,029 15%
business
segments
----------------------------------------------------------------------
3,099 2,731 2,092 48% - Upstream 5,83 4,053 44%
587 311 755 -22% - Downstream 898 1,463 -39%
70 158 234 -70% - Chemicals 228 513 -56%
----------------------------------------------------------------------
3,723 3,254 3,1 20% Adjusted net 6,977 6,092 15%
income
----------------------------------------------------------------------
Adjusted fully-
1.65 1.44 1.36 21% diluted 3.10 2.67 16%
earnings per
share (euros)
----------------------------------------------------------------------
Fully-diluted
2,252.9 2,254.0 2,278.4 -1% weighted- 2,253.4 2,279.7 -1%
average shares
(millions)
----------------------------------------------------------------------
----------------------------------------------------------------------
4,732 3,602 3,411 39% Net income 8,334 6,46 29%
(Group share)
----------------------------------------------------------------------
----------------------------------------------------------------------
2,868 2,643 2,69 7% Investments 5,511 5,104 8%
----------------------------------------------------------------------
726 198 222 x3.3 Divestments 924 466 98%
----------------------------------------------------------------------
Cash flow from
1,922 5,316 3,589 -46% operating 7,238 9,977 -27%
activities
----------------------------------------------------------------------
4,798 4,331 4,563 5% Adjusted cash 9,129 8,679 5%
flow
----------------------------------------------------------------------
*T
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expressed in
millions
2Q08 dollars (5) 1H08
2Q08 1Q08 2Q07 vs 1H08 1H07 vs
2Q07 except earnings 1H07
per share and
number of
shares
----------------------------------------------------------------------
75,298 66,213 52,703 43% Sales 141,429 101,194 40%
----------------------------------------------------------------------
Adjusted
operating
12,163 10,661 7,76 57% income from 22,811 15,265 49%
business
segments
----------------------------------------------------------------------
Adjusted net
operating
5,868 4,792 4,153 41% income from 10,645 8,013 33%
business
segments
----------------------------------------------------------------------
4,841 4,09 2,82 72% - Upstream 8,922 5,387 66%
917 466 1,018 -10% - Downstream 1,374 1,944 -29%
109 237 315 -65% - Chemicals 349 682 -49%
----------------------------------------------------------------------
5,816 4,873 4,179 39% Adjusted net 10,678 8,097 32%
income
----------------------------------------------------------------------
Adjusted fully-
diluted
2.58 2.16 1.83 41% earnings per 4.74 3.55 33%
share
(dollars)
----------------------------------------------------------------------
Fully-diluted
2,252.9 2,254.0 2,278.4 -1% weighted- 2,253.4 2,279.7 -1%
average shares
(millions)
----------------------------------------------------------------------
----------------------------------------------------------------------
7,392 5,394 4,598 61% Net income 12,754 8,586 49%
(Group share)
----------------------------------------------------------------------
----------------------------------------------------------------------
4,48 3,958 3,626 24% Investments 8,434 6,784 24%
----------------------------------------------------------------------
1,134 297 299 x3.8 Divestments 1,414 619 x2.3
----------------------------------------------------------------------
Cash flow from
3,003 7,961 4,838 -38% operating 11,077 13,26 -16%
activities
----------------------------------------------------------------------
7,495 6,486 6,151 22% Adjusted cash 13,971 11,535 21%
flow
----------------------------------------------------------------------
*T
-- Second quarter 2008 results
- Operating income
In the second quarter 2008, the Brent price averaged 121.2 $/b, an increase of
76% compared to the second quarter 2007 and 25% compared to the first quarter
2008. The TRCV European refining margin indicator averaged 40.2 $/t over the
quarter, a decrease of 6% compared to the second quarter 2007 and an increase of
63% compared to the first quarter 2008.
Petrochemical margins fell sharply, notably in Europe.
The euro-dollar exchange rate was 1.56 $/ EUR in the second quarter 2008
compared to 1.35 $/ EUR in the second quarter 2007 and 1.50 $/ EUR in the first
quarter 2008.
In this context, the adjusted operating income from the business segments was
7,786 M EUR , an increase of 35% compared to the second quarter 2007(6), or
expressed in dollars an increase of 57%.
The effective tax rate(7) for the business segments was 58% in the second
quarter 2008 compared to 54% in the second quarter 2007, essentially due to the
Upstream segment's larger contribution to the results.
Adjusted net operating income from the business segments was 3,756 M EUR
compared to 3,081 M EUR in the second quarter 2007, an increase of 22%.
The smaller increase, compared to the percentage increase in operating income,
is essentially due to the increase in the effective tax rate between the two
quarters.
Expressed in dollars, adjusted net operating income from the business segments
was 5.9 billion dollars (B$), an increase of 41% compared to the second quarter
2007.
- Net income
Adjusted net income was 3,723 M EUR compared to 3,100 M EUR in the second
quarter 2007, an increase of 20%. Expressed in dollars, adjusted net income
increased by 39%.
This excludes the after-tax inventory effect, special items, and the Group's
equity share of the amortization of intangibles related to the Sanofi-Aventis
merger.
-- The after-tax inventory effect had a positive impact on net income of
1,154 M EUR in the second quarter 2008 and 483 M EUR in the second
quarter 2007.
-- Special items had a negative impact on net income of 67 M EUR in the
second quarter 2008 and were comprised mainly of restructuring charges
in the Downstream and Chemicals segments. Special items had a negative
impact on net income of 100 M EUR in the second quarter 2007(8).
-- The Group's share of the amortization of intangibles related to the
Sanofi-Aventis merger had a negative impact on net income of 78 M EUR in
the second quarter 2008 and 72 M EUR in the second quarter 2007.
Net income (Group share) was 4,732 M EUR compared to 3,411 M EUR in the second
quarter 2007.
In the second quarter 2008, the Group bought back 7 million of its shares for
369 M EUR .
Adjusted fully-diluted earnings per share, based on 2,252.9 million
fully-diluted weighted-average shares rose to 1.65 euros from 1.36 euros in the
second quarter 2007, an increase of 21%.
Expressed in dollars, adjusted fully-diluted earnings per share increased by 41%
to 2.58.
- Investments - divestments
Investments, excluding acquisitions and including net investments in equity
affiliates and non-consolidated companies, were 2.1 B EUR (3.3 B$) in the second
quarter 2008 compared to 2.5 B EUR (3.4 B$) in the second quarter 2007.
Acquisitions were 47 M EUR in the second quarter 2008.
Asset sales in the second quarter 2008 were 120 M EUR .
Net investments(8) were 3.3 B$ in the second quarter 2008.
- Cash flow
Cash flow from operating activities was 1,922 M EUR in the second quarter 2008,
a decrease of 46% compared to the second quarter 2007, mainly due to a
significant increase in working capital requirements essentially linked to the
sharp rise in hydrocarbon prices between the two periods.
Adjusted cash flow( 9) was 4,798 M EUR , an increase of 5%.
Expressed in dollars, adjusted cash flow was 7.5 B$, an increase of 22%.
Net cash flow( 10) was a negative 220 M EUR compared to a positive 1,121 M EUR
in the second quarter 2007. Expressed in dollars, net cash flow was a negative
0.3 B$ in the second quarter 2008.
-- First half 2008 results
- Operating income
Compared to the first half 2007, the first half 2008 oil environment was marked
by a 72% increase in the average price of Brent to 109.0 $/b. The TRCV European
refining margin indicator decreased by 15% to 32.4 $/t. The environment for
Total's petrochemicals was unfavorable, mainly due to the sharp increase in the
price of naphtha and the decrease in Atlantic Basin product demand.
The euro-dollar exchange rate was 1.53 $/ EUR in the first half 2008 compared to
1.33 $/ EUR in the first half 2007.
In this context, the adjusted operating income from the business segments was
14,905 M EUR , an increase of 30% compared to the first half 2007(11).
The effective tax rate for the business segments was 59% in the first half 2008
compared to 54% in the first half 2007, essentially due to the Upstream
segment's larger contribution to the results.
Adjusted net operating income from the business segments was 6,956 M EUR
compared to 6,029 M EUR in the first half 2007, an increase of 15%.
The smaller increase, compared to the percentage increase in operating income,
is essentially due to the increase in the effective tax rate between the two
periods.
Expressed in dollars, adjusted net operating income from the business segments
increased by 33%.
- Net income
Adjusted net income increased by 15% to 6,977 M EUR in the first half 2008 from
6,092 M EUR in the first half 2007.
This excludes the after-tax inventory effect, special items, and the Group's
equity share of the amortization of intangibles related to the Sanofi-Aventis
merger.
-- The after-tax inventory effect had a positive impact on net income of
1,428 M EUR in the first half 2008 and 616 M EUR in the first half 2007.
-- Special items had a positive impact on net income of 78 M EUR in the
first half 2008 and a negative impact on net income of 100 M EUR in the
first half 2007(12).
-- The Group's share of the amortization of intangibles related to the
Sanofi-Aventis merger had a negative impact on net income of 149 M EUR
in the first half 2008 and 148 M EUR in the first half 2007.
Net income (Group share) was 8,334 M EUR compared to 6,460 M EUR in the first
half 2007.
During the first half 2008, the Group bought back 16 million of its shares for
818 M EUR . There were 2,252.5 million fully-diluted shares outstanding on June
30, 2008 compared to 2,278.6 million on June 30, 2007. The Group continued to
buy back shares in July 2008, acquiring 2.1 million shares for 107 M EUR .
Adjusted fully-diluted earnings per share, based on 2,253.4 million
fully-diluted weighted-average shares rose to 3.10 euros compared to 2.67 euros
in the first half 2007, an increase of 16%, which is greater than the increase
in adjusted net income thanks to the share buyback.
Expressed in dollars, adjusted fully-diluted earnings per share increased by 33%
to 4.74 in the first half 2008 from 3.55 in the first half 2007.
- Investments - divestments
Investments, excluding acquisitions and including net investments in equity
affiliates and non-consolidated companies, were 4.6 B EUR (7.0 B$) in the first
half 2008 compared to 4.8 B EUR (6.4 B$) in the first half 2007.
Acquisitions were 95 M EUR in the first half 2008.
Asset sales in the first half 2008 were 195 M EUR .
Net investments(13) were 7.0 B$ in the first half 2008.
- Cash flow
Cash flow from operating activities was 7,238 M EUR in the first half 2008, a
decrease of 27% compared to the first half 2007, mainly due to a significant
increase in working capital requirements essentially linked to the sharp rise in
hydrocarbon prices between the two periods.
Adjusted cash flow(14 )was 9,129 M EUR , an increase of 5%. Expressed in
dollars, adjusted cash flow was 14.0 B$, an increase of 21%.
Net cash flow( 15) was 2,651 M EUR compared to 5,339 M EUR in the first half
2007. Expressed in dollars, net cash flow was 4.1 B$ in the first half 2008.
The net-debt-to-equity ratio was 25% on June 30, 2008 compared to 21% on
March 31, 2008 and 26% on June 30, 2007(16), in line with the targets of the
Group.
-- Analysis of business segment results
Upstream
- Environment - liquids and gas price realizations *
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2Q08 1H08
2Q08 1Q08 2Q07 vs 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
121.2 96.7 68.8 +76% Brent ($/b) 109.0 63.2 +72%
----------------------------------------------------------------------
114.9 90.7 65.7 +75% Average liquids price 102.8 60.2 +71%
($/b)
7.29 6.67 4.94 +48% Average gas price 6.97 5.32 +31%
($/Mbtu)
----------------------------------------------------------------------
87.3 70.5 52.5 +66% Average hydrocarbons 78.8 49.9 +58%
price ($/boe)
----------------------------------------------------------------------
* consolidated subsidiaries, excluding fixed margin and buy-back
contracts.
*T
Total's average realized liquids price increased in line with Brent by 75% and
71%, respectively, for the second quarter 2008 and the first half 2008 compared
to the same periods in 2007.
The average realized price for Total's natural gas increased by 48% compared to
the second quarter 2007. For the first half 2008 compared to the first half
2007, the increase was 31%.
- Production
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2Q08 1H08
2Q08 1Q08 2Q07 vs Hydrocarbon production 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
2,353 2,426 2,322 +1% Combined production 2,389 2,376 +1%
(kboe/d)
----------------------------------------------------------------------
1,471 1,510 1,475 - - Liquids (kb/d) 1,491 1,513 -1%
4,772 4,989 4,599 +4% - Gas (Mcf/d) 4,880 4,689 +4%
----------------------------------------------------------------------
*T
In the second quarter 2008, hydrocarbon production was 2,353 thousand barrels of
oil equivalent per day (kboe/d), an increase of 1.3% compared to the second
quarter 2007, mainly as a result of :
-- +3% of net growth, primarily from the start-ups and ramp-ups of major
new fields, such as Dalia, Rosa and Dolphin,
-- +1% for the absence of OPEC reductions,
-- -2.5% for the price effect(17),
-- -0.5% for changes in the portfolio.
In the first half 2008, hydrocarbon production was 2,389 kboe/d, an increase of
0.5% compared to the first half 2007, mainly as a result of :
-- +3.5% of net growth, primarily from the start-ups and ramp-ups of major
new fields, such as Dalia, Rosa and Dolphin,
-- -1% for the shutdown of Elgin-Franklin for nearly a month following an
incident in the amine column,
-- +1% for the absence of OPEC reductions,
-- -2.5% for the price effect( 18),
-- -0.5% for changes in the portfolio.
- Results
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2Q08 1H08
2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
6,964 6,423 4,44 57% Adjusted operating income * 13,387 8,815 52%
----------------------------------------------------------------------
3,099 2,731 2,092 48% Adjusted net operating 5,83 4,053 44%
income *
317 282 202 57% - includes income from 599 377 59%
equity affiliates
----------------------------------------------------------------------
----------------------------------------------------------------------
2,076 2,178 2,109 -2% Investments 4,254 4,098 4%
----------------------------------------------------------------------
565 107 191 x3.0 Divestments 672 364 85%
----------------------------------------------------------------------
3,643 4,251 3,312 10% Cash flow from operating 7,894 7,647 3%
activities
----------------------------------------------------------------------
3,904 3,845 3,011 30% Adjusted cash flow 7,749 5,977 30%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information.
*T
Adjusted net operating income for the Upstream segment was 3,099 M EUR in the
second quarter 2008 compared to 2,092 M EUR in the second quarter 2007, an
increase of 48%.
Expressed in dollars, adjusted net operating income for the Upstream segment
increased by 72%, mainly due to the increase in hydrocarbon prices.
Compared to the second quarter 2007, the increase in income from equity
affiliates is due essentially to the change in the method of consolidation for
PetroCedeno effective December 31, 2007 and increased contributions from LNG
activities.
The effective tax rate for the Upstream segment was 61% compared to 62% in the
first quarter 2008 and 60% in the second quarter 2007.
Adjusted net operating income for the Upstream segment in the first half 2008
was 5,830 M EUR compared to 4,053 M EUR in the first half 2007, an increase of
44%.
Expressed in dollars, adjusted net operating income for the Upstream segment
rose by 3.5 B$, an increase of 66% mainly due to the increase in hydrocarbon
prices.
The return on average capital employed (ROACE(18)) for the Upstream segment for
the twelve months ended June 30, 2008 was 41%. For the twelve months ended
March 31, 2008 it was 38% and for the full year 2007 it was 34%.
Downstream
- Refinery throughput and utilization rates *
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2Q08 1H08
2Q08 1Q08 2Q07 vs Refinery throughput 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
2,297 2,389 2,354 -2% Total refinery throughput 2,341 2,386 -2%
(kb/d)
----------------------------------------------------------------------
932 930 936 - - France 931 961 -3%
1,055 1,169 1,112 -5% - Rest of Europe 1,111 1,139 -2%
310 290 306 +1% - Rest of world 299 286 +5%
----------------------------------------------------------------------
Utilization rates
85% 87% 85% - Based on crude only 86% 86%
88% 92% 87% - Based on crude and 90% 88%
other feedstock
----------------------------------------------------------------------
* includes share of CEPSA.
*T
Second quarter 2008 refinery throughput decreased by 2% compared to the second
quarter 2007. Excluding the impact of the November 2007 sale of the Milford
Haven refinery in the UK, refinery throughput increased by 1%.
In the second quarter 2008 scheduled turnarounds resulted in a complete shutdown
of the Leuna refinery and partial shutdowns of the Normandy and Grandpuits
refineries.
In the second quarter 2007, there were scheduled partial turnarounds at the
Donges, Antwerp, Vlissingen, and Flanders refineries.
In the first quarter 2008 there were scheduled partial turnarounds at the
Grandpuits, Port Arthur, Flanders and Normandy refineries.
The second quarter 2008 utilization rate based on crude throughput was 85%,
stable compared to the second quarter 2007 and lower compared to the first
quarter 2008.
The utilization rate based on the throughput of crude and other feedstock
increased compared to the second quarter 2007 but decreased compared to the
first quarter of 2008.
The decrease in the utilization rates between the first and second quarters in
2008 is due essentially to the impact of the complete shutdown of the Leuna
refinery.
- Results
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2Q08 in millions of euros 1H08
2Q08 1Q08 2Q07 vs except TRCV refining 1H08 1H07 vs
2Q07 margins 1H07
----------------------------------------------------------------------
40.2 24.6 42.8 -6% European refining margin 32.4 37.9 -15%
indicator - TRCV ($/t)
----------------------------------------------------------------------
744 498 1,004 -26% Adjusted operating income * 1,242 1,977 -37%
----------------------------------------------------------------------
587 311 755 -22% Adjusted net operating 898 1,463 -39%
income *
15 2 75 -80% - includes income from 17 138 -88%
equity affiliates
----------------------------------------------------------------------
----------------------------------------------------------------------
514 294 401 28% Investments 808 645 25%
----------------------------------------------------------------------
128 24 28 x4.6 Divestments 152 50 x3.0
----------------------------------------------------------------------
-1,391 1,168 1,432 na Cash flow from operating -223 3,337 na
activities
----------------------------------------------------------------------
623 520 999 -38% Adjusted cash flow 1,143 2,038 -44%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information.
*T
The TRCV European refinery indicator was 40.2 $/t in the second quarter 2008, a
decrease of 6% compared to the second quarter 2007 and an increase of 63%
compared to the first quarter 2008. Distillate margins rose to a high level,
mainly due to sustained demand.
Adjusted net operating income for the Downstream segment was 587 M EUR in the
second quarter 2008, a decrease of 22% compared to the second quarter 2007 but
an increase of 89% compared to the first quarter 2008.
Expressed in dollars, adjusted net operating income for the Downstream segment
was 917 M$, a decrease of 10% compared to the second quarter 2007, mainly as a
result of lower contributions from equity affiliates (essentially Wepec in China
and CEPSA). Compared to the first quarter 2008, adjusted net operating income
for the Downstream segment increased by 97%, driven by the improvement in
European refinery margins.
Adjusted net operating income for the Downstream segment was 898 M EUR in the
first half 2008, a decrease of 39% compared to the first half 2007.
Expressed in dollars, adjusted net operating income from the Downstream segment
decreased by 29% or 0.6 B$, reflecting generally the less favorable environment
for refining and marketing.
The ROACE(19) for the Downstream segment for the twelve months ended June 30,
2008 was 16%. For the twelve months ended March 31, 2008 it was 19% and for the
full year 2007 it was 21%.
Chemicals
-0-
*T
2Q08 1H08
2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
5,478 5,229 5,07 8% Sales 10,707 10,065 6%
3,632 3,42 3,202 13% - Base chemicals 7,052 6,353 11%
1,846 1,809 1,868 -1% - Specialties 3,655 3,712 -2%
----------------------------------------------------------------------
----------------------------------------------------------------------
78 198 312 -75% Adjusted operating income 276 693 -60%
*
----------------------------------------------------------------------
70 158 234 -70% Adjusted net operating 228 513 -56%
income *
-23 61 110 na - Base chemicals 38 299 -87%
97 98 124 -22% - Specialties 195 217 -10%
----------------------------------------------------------------------
----------------------------------------------------------------------
221 164 173 28% Investments 385 346 11%
----------------------------------------------------------------------
12 7 1 x12 Divestments 19 48 -60%
----------------------------------------------------------------------
169 -202 254 -33% Cash flow from operating -33 361 na
activities
----------------------------------------------------------------------
152 266 302 -50% Adjusted cash flow 418 631 -34%
----------------------------------------------------------------------
* detail of adjustment items shown in business segment information.
*T
Petrochemical margins were weak in the second quarter 2008, reflecting the
squeeze of rapidly rising naphtha prices and weakening demand in the Atlantic
Basin.
In the second quarter 2008, sales for the Chemicals segment were 5,478 M EUR .
Adjusted net operating income for the Chemicals segment was 70 M EUR , a
decrease of 70% compared to the second quarter 2007.
The decrease in the results of the Base chemicals was due primarily to lower
petrochemical margins, the impact of which was partially offset by the positive
contribution from ethane-based production in Qatar.
The results of the Specialties continued to be satisfactory despite signs of
weakening economic conditions and the depreciation of the dollar.
In the first half 2008, adjusted net operating income for the Chemicals segment
was 228 M EUR compared to 513 M EUR in the first half 2007, a decrease of 56%
resulting mainly from the weakness in the environment.
Expressed in dollars, the decrease was 49%, or 0.3 B$.
The ROACE(20) for the Chemicals segment for the twelve months ended June 30,
2008 was 8%. For the twelve months ended March 31, 2008 it was 10% and for the
full year 2007 it was 12%.
-- Cancellation of outstanding shares
The Board of Directors met on July 31, 2008 and approved the cancellation of the
30,000,000 shares bought in 2007. The share capital has been adjusted to
5,926,006,207.50 euros represented by 2,370,402,483 shares with a par value of
2.5 EUR .
-- TOTAL S.A. - parent company accounts
Net income for TOTAL S.A., the parent company, was 3,083 M EUR in the first half
of 2008 compared to 2,804 M EUR in the first half of 2007.
-- Summary and outlook
The ROACE for the twelve months ended June 30, 2008 was 25% for the Group and
29% for the business segments compared respectively to 26% and 28% for the
twelve months ended March 31, 2008 and 24% and 27% for the full year 2007.
Return on equity for the twelve months ended June 30, 2008 was 30%.
In the first half 2008, implementation of the ambitious investment program
progressed as planned.
The Group maintains its net-debt-to-equity ratio within the 20-30% band.
Since the start of the third quarter 2008, oil prices have remained at high
levels. European refining margins have retreated compared to the average level
of the second quarter, but distillate margins are still attractive.
Petrochemical margins continue to be hurt by high naphtha prices and weak demand
in the Atlantic Basin.
Moho Bilondo in offshore Congo and Jura in the UK North Sea are expected to ramp
up gradually over the coming months. Production from Al Jurf in Libya is
expected to be restored in the fourth quarter.
The Group plans to continue to adapt its refining and petrochemicals activities
to new market trends, notably by improving the energy efficiency of its
facilities, by responding to the growing demand for diesel and by managing its
surplus of gasoline in Europe.
With a solid portfolio of assets, Total is well positioned to continue to
benefit from this volatile but favorable oil market environment.
To listen to CFO Patrick de la Chevardiere's conference call with financial
analysts today at 15:00 (Paris time) please log on to www.total.com or call
+44 (0)203 043 2441 in Europe or +1 866 907 5924 in the U.S. (access code :
Total). For a replay through August 15, please consult the website or call
+44 (0)207 075 3214 in Europe or 1 866 828 2261 in the US (code : 220 511).
This document does not constitute the Financial Report for the first half 2008
which will be separately published, in accordance with article L.451-1-2 III of
the French Code monetaire et financier, and is available on our web site
www.total.com or upon request at the company's headquarters.
The June 30, 2008 notes to the condensed consolidated accounts are available on
the Total web site (www.total.com). This document may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 with respect to the financial condition, results of operations, business,
strategy and plans of Total. Such statements are based on a number of
assumptions that could ultimately prove inaccurate, and are subject to a number
of risk factors, including currency fluctuations, the price of petroleum
products, the ability to realize cost reductions and operating efficiencies
without unduly disrupting business operations, environmental regulatory
considerations and general economic and business conditions. Total does not
assume any obligation to update publicly any forward-looking statement, whether
as a result of new information, future events or otherwise. Further information
on factors which could affect the company's financial results is provided in
documents filed by the Group and its affiliates with the French Autorite des
Marches Financiers and the US Securities and Exchange Commission.
Business segment information is presented in accordance with the Group internal
reporting system used by the Chief operating decision maker to measure
performance and allocate resources internally. Due to their particular nature or
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, certain transactions such as restructuring costs or assets disposals,
which are not considered to be representative of normal course of business, may
be qualified as special items although they may have occurred within prior years
or are likely to recur within following years.
The adjusted results of the Downstream and Chemical segments are also presented
according to the replacement cost method. This method is used to assess the
segments' performance and ensure the comparability of the segments' results with
those of its competitors, mainly North American.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out)
method, the variation of inventory values in the income statement is determined
by the average price of the period rather than the historical value. The
inventory valuation effect is the difference between the results according to
FIFO (First-In, First-Out) and replacement cost.
In this framework, performance measures such as adjusted operating income,
adjusted net operating income and adjusted net income are defined as incomes
using replacement cost, adjusted for special items and excluding Total's equity
share of the amortization of intangibles related to the Sanofi-Aventis merger.
They are meant to facilitate the analysis of the financial performance and the
comparison of income between periods.
Dollar amounts presented herein represent euro amounts converted at the average
euro-dollar exchange rate for the applicable period and are not the result of
financial statements prepared in dollars.
Operating information by segment
Second quarter and first half 2008
-- Upstream
-0-
*T
2Q08 Combined liquids and gas 1H08
2Q08 1Q08 2Q07 vs production by region 1H08 1H07 vs
2Q07 (kboe/d) 1H07
----------------------------------------------------------------------
601 626 644 -7% Europe 614 695 -12%
796 851 795 - Africa 822 790 +4%
14 15 21 -33% North America 15 24 -37%
246 251 247 - Far East 249 251 -1%
433 438 359 +21% Middle East 435 380 +14%
236 217 243 -3% South America 226 225 -
27 28 13 x2.1 Rest of world 28 11 x2.5
----------------------------------------------------------------------
2,353 2,426 2,322 +1% Total production 2,389 2,376 +1%
----------------------------------------------------------------------
418 396 310 +35% Includes equity and non- 407 325 +25%
consolidated affiliates
----------------------------------------------------------------------
*T
-0-
*T
2Q08 Liquids production by region 1H08
2Q08 1Q08 2Q07 vs (kb/d) 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
299 299 315 -5% Europe 299 344 -13%
667 716 670 - Africa 691 675 +2%
11 11 15 -27% North America 11 16 -31%
27 27 28 -4% Far East 27 29 -7%
331 335 308 +7% Middle East 333 324 +3%
125 110 130 -4% South America 118 116 +2%
11 12 9 +22% Rest of world 12 9 +33%
----------------------------------------------------------------------
1,471 1,510 1,475 - Total production 1,491 1,513 -1%
----------------------------------------------------------------------
366 339 262 +40% Includes equity and non- 353 272 +30%
consolidated affiliates
----------------------------------------------------------------------
*T
-0-
*T
2Q08 Gas production by region 1H08
2Q08 1Q08 2Q07 vs (Mcf/d) 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
1,639 1,775 1,785 -8% Europe 1,707 1,901 -10%
667 690 640 +4% Africa 678 591 +15%
19 23 33 -42% North America 21 39 -46%
1,210 1,245 1,228 -1% Far East 1,228 1,244 -1%
548 580 267 x2.1 Middle East 564 296 x1.9
610 589 625 -2% South America 600 602 -
79 87 21 x3.8 Rest of world 82 16 x5.1
----------------------------------------------------------------------
4,772 4,989 4,599 +4% Total production 4,880 4,689 +4%
----------------------------------------------------------------------
281 306 255 +10% Includes equity and non- 294 284 +4%
consolidated affiliates
----------------------------------------------------------------------
*T
-0-
*T
2Q08 1H08
2Q08 1Q08 2Q07 vs Liquefied natural gas 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
2.21 2.36 2.18 +1% LNG sales* (Mt)** 4.57 4.43 +3%
----------------------------------------------------------------------
* sales, Group share, excluding trading. ** 1 Mt/y = approx. 133
Mcf/d.
*T
-- Downstream
-0-
*T
2Q08 Refined products 1H08
2Q08 1Q08 2Q07 vs sales by region 1H08 1H07 vs
2Q07 (kb/d)* 1H07
----------------------------------------------------------------------
1,999 2,144 2,185 -9% Europe 2,071 2,244 -8%
280 280 283 -1% Africa 280 283 -1%
220 156 153** +44% Americas 188 120** +57%
143 145 144 -1% Rest of world 144 141 +2%
----------------------------------------------------------------------
Total
2,642 2,725 2,765** -4% consolidated 2,683 2,788** -4%
sales
----------------------------------------------------------------------
956 944 1,010 -5% Trading 950 922 +3%
----------------------------------------------------------------------
----------------------------------------------------------------------
3,598 3,669 3,775** -5% Total refined 3,633 3,710** -2%
product sales
----------------------------------------------------------------------
* includes share of CEPSA.
** the method of calculating volumes for Port Arthur was changed
effective in 2008
*T
Adjustment items
-- Adjustments to operating income from business segments
-0-
*T
2Q08 1Q08 2Q07 in millions of euros 1H08 1H07
----------------------------------------------------------------------
- - - Special items affecting operating income -
from the business segments
----------------------------------------------------------------------
- - - - Restructuring charges -
- - - - Impairments -
- - - - Other -
----------------------------------------------------------------------
1,687 375 719 Pre-tax inventory effect : FIFO vs. 2,062 893
replacement cost
----------------------------------------------------------------------
----------------------------------------------------------------------
1,687 375 719 Total adjustments affecting operating 2,062 893
income from the business segments
----------------------------------------------------------------------
*T
-- Adjustments to net income (Group share)
-0-
*T
2Q08 1Q08 2Q07 in millions of euros 1H08 1H07
----------------------------------------------------------------------
(67) 145 (100) Special items affecting net income 78 (100)
(Group share)
----------------------------------------------------------------------
- - - - Equity share of special items - -
recorded by Sanofi-Aventis
2 145 - - Gain on asset sales 147 -
(44) - - - Restructuring charges (44) -
- - - - Impairments - -
(25) - (100) - Other (25) (100)
----------------------------------------------------------------------
Adjustment related to the Sanofi-
(78) (71) (72) Aventis merger* (share of (149) (148)
amortization of intangible
assets)
----------------------------------------------------------------------
1,154 274 483 After-tax inventory effect : FIFO 1,428 616
vs. replacement cost
----------------------------------------------------------------------
----------------------------------------------------------------------
1,009 348 311 Total adjustments to net income 1,357 368
----------------------------------------------------------------------
* based on Total's share in Sanofi-Aventis of 13% at 6/30/2008,
3/31/2008, and 6/30/2007
*T
Investments - Divestments
-0-
*T
2Q08 1H08
2Q08 1Q08 2Q07 vs in millions of euros 1H08 1H07 vs
2Q07 1H07
----------------------------------------------------------------------
2,091 2,498 2,520 -17% Investments excluding 4,589 4,796 -4%
acquisitions*
205 172 161 +27% - Capitalized exploration 377 403 -6%
- Net investments in equity
(522) 112 20 na affiliates and non- (410) 64 na
consolidated companies
----------------------------------------------------------------------
47 48 56 -16% Acquisitions 95 67 +42%
----------------------------------------------------------------------
120 75 82 +46% Asset sales 195 173 +13%
----------------------------------------------------------------------
2,142 2,445 2,468 -13% Net investments** 4,587 4,638 -1%
----------------------------------------------------------------------
* includes net investments in equity affiliates and non-consolidated
companies.
** net investments = investments including acquisitions and net
investments in equity affiliates and non-consolidated companies -
asset sales + net financing for employees related to stock purchase
plans.
*T
Net-debt-to equity ratio
-0-
*T
in millions of euros 6/30/2008 3/31/2008 6/30/2007
----------------------------------------------------------------------
Current borrowings 4,795 4,861 9,809
Net current financial assets (49) (238) (10,790)
Non-current financial debt 14,777 13,388 15,045
Hedging instruments of non-current debt (540) (651) (287)
Cash and cash equivalents (7,245) (8,341) (2,858)
----------------------------------------------------------------------
Net debt 11,738 9,019 10,919
----------------------------------------------------------------------
----------------------------------------------------------------------
Shareholders equity 48,273 45,750 43,657
Estimated dividend payable* (2,315) (3,537) (2,110)
Minority interests 855 833 817
----------------------------------------------------------------------
Equity 46,813 43,046 42,364
----------------------------------------------------------------------
----------------------------------------------------------------------
Net-debt-to-equity ratio 25.1% 21.0% 25.8%
----------------------------------------------------------------------
* for 6/30/2008, based on a dividend of 2.07 EUR /share of 2.5 EUR
of par value
*T
Effective tax rates
-0-
*T
2Q08 1Q08 2Q07 Average tax rates * 1H08 1H07
----------------------------------------------------------------------
61.2% 62.3% 59.9% Upstream 61.8% 60.1%
57.8% 59.4% 54.0% Group 58.6% 54.0%
----------------------------------------------------------------------
* tax on adjusted net operating income / (adjusted net operating
income - income from affiliates, dividends received from investments,
and impairments of acquisition goodwill + tax on adjusted net
operating income).
*T
2008 Sensitivities*
-0-
*T
Impact on Impact on
Scenario Change adjusted adjusted net
operating operating
income(e) income (e)
----------------------------------------------------------------------
EUR -$ 1.50 $/ EUR +0.1 $ per -1.5 B EUR -0.8 B EUR
EUR
----------------------------------------------------------------------
Brent 80 $/b +1 $/b +0.28 B EUR +0.12 B EUR
/ 0.42 B$ / 0.18 B$
----------------------------------------------------------------------
European +0.08 B EUR +0.05 B EUR
refining 33 $/t +1 $/t / 0.12 B$ / 0.08 B$
margins TRCV
----------------------------------------------------------------------
* sensitivities revised once per year upon publication of the previous
year fourth quarter results. The impact of the EUR -$ sensitivity
on the adjusted operating income and the adjusted net operating
income attributable to the Upstream segment are approximately 70% and
60% respectively, and the remaining impact of the EUR -$
sensitivity is essentially split between the Downstream and Chemicals
segments.
*T
Return on average capital employed
-- For the twelve months ended June 30, 2008
-0-
*T
in millions of euros Upstream Downstream Chemicals** Segments Group
----------------------------------------------------------------------
Adjusted net
operating income 10,626 1,970 562 13,158 13,810
Capital employed at
6/30/2007* 25,218 11,204 7,264 43,686 52,645
Capital employed at
6/30/2008* 26,676 13,491 7,394 47,561 56,107
----------------------------------------------------------------------
ROACE 41.0% 16.0% 7.7% 28.8% 25.4%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect).
** capital employed for Chemicals reduced for the Toulouse-AZF
provision of 146 M EUR pre-tax at 6/30/2007 and 126 M EUR pre-tax
at 6/30/2008.
*T
-- For the twelve months ended March 31, 2008
-0-
*T
in millions of euros Upstream Downstream Chemicals** Segments Group
----------------------------------------------------------------------
Adjusted net 9,619 2,138 726 12,483 13,147
operating income
Capital employed at 24,808 11,442 7,129 43,379 50,773
3/31/2007*
Capital employed at 25,731 11,415 7,266 44,412 52,015
3/31/2008*
----------------------------------------------------------------------
ROACE 38.1% 18.7% 10.1% 28.4% 25.6%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect).
** capital employed for Chemicals reduced for the Toulouse-AZF
provision of 153 M EUR pre-tax at 3/31/2007 and 129 M EUR pre-tax
at 3/31/2008.
*T
-- For the twelve months ended December 31, 2007
-0-
*T
in millions of euros Upstream Downstream Chemicals** Segments Group
----------------------------------------------------------------------
Adjusted net 8,849 2,535 847 12,231 12,881
operating income
Capital employed at 25,543 12,384 6,920 44,847 52,263
12/31/2006*
Capital employed at 27,062 12,190 7,033 46,285 54,158
12/31/2007*
----------------------------------------------------------------------
ROACE 33.6% 20.6% 12.1% 26.8% 24.2%
----------------------------------------------------------------------
* at replacement cost (excluding after-tax inventory effect).
** capital employed for Chemicals reduced for the Toulouse-AZF
provision of 176 M EUR pre-tax at 12/31/2006 and 134 M EUR pre-
tax at 12/31/2007.
*T
(1) percent changes are relative to the same period 2007.
(2) dollar amounts represent euro amounts converted at the average EUR -$
exchange rate for the period : 1.5622 $/ EUR in the second quarter 2008,
1.3481$/ EUR in the second quarter 2007, 1.4976 $/ EUR in the first quarter
2008, 1.5304 $/ EUR in the first half 2008, and 1.3291 $/ EUR in the first half
2007.
(3) adjusted net income = net income using replacement cost (Group share)
adjusted for special items and excluding Total's share of amortization of
intangibles related to the Sanofi-Aventis merger. Net income (Group share) for
the second quarter 2008 was 4,732 M EUR .
(4) adjusted income (adjusted operating income, adjusted net operating income
and adjusted net income) is defined as income using replacement cost, adjusted
for special items and excluding Total's equity share of amortization of
intangibles related to the Sanofi-Aventis merger; adjusted cash flow is defined
as cash flow from operating activities at replacement cost before changes in
working capital; adjustment items are listed on page 17.
(5)dollar amounts represent euro amounts converted at the average EUR -$
exchange rate for the period.
(6) there were no special items affecting operating income from the business
segments in the second quarters of 2007 and 2008.
(7) defined as: (tax on adjusted net operating income) / (adjusted net operating
income - income from equity affiliates, dividends received from investments and
impairments of acquisition goodwill + tax on adjusted net operating income).
(8) detail shown on page 17
(9) net investments = investments including acquisitions and net investments in
equity affiliates and non-consolidated companies - asset sales + net financing
for employees related to stock purchase plans.
(10) adjusted cash flow = cash flow from operating activities at replacement
cost before changes in working capital.
(11) net cash flow = cash flow from operating activities + divestments - gross
investments.
(12) there were no special items affecting operating income from the business
segments in the first half of 2007 and first half of 2008.
(13) detail shown on page 17.
(14) net investments = investments including acquisitions and net investments in
equity affiliates and non-consolidated companies - asset sales + net financing
for employees related to stock purchase plans.
(15) adjusted cash flow = cash flow from operations at replacement cost before
changes in working capital.
(16) net cash flow = cash flow from operations + divestments - gross
investments.
(17) detail shown on page 18.
(18) impact of changing hydrocarbon prices on entitlement volumes.
(19) calculated based on adjusted net operating income and average capital
employed, using replacement cost, as shown on page 19.
(20) calculated based on adjusted net operating income and average capital
employed, using replacement cost, as shown on page 19.
(21) calculated based on adjusted net operating income and average capital
employed, using replacement cost, as shown on page 19.
Main indicators
Chart updated around the middle of the month following the end of each quarter
-0-
*T
European Average
EUR refining Brent liquids Average gas
margins ($/b) price** price
/$ TRCV* ($/b) ($/Mbtu)**
($/t)
----------------------------------------------------------------------
Second quarter 2008 1.56 40.2 121.2 114.9 7.29
----------------------------------------------------------------------
First quarter 2008 1.50 24.6 96.7 90.7 6.67
----------------------------------------------------------------------
Fourth quarter 2007 1.45 30.1 88.5 84.5 6.08
----------------------------------------------------------------------
Third quarter 2007 1.37 23.9 74.7 71.4 4.83
----------------------------------------------------------------------
Second quarter 2007 1.35 42.8 68.8 65.7 4.94
----------------------------------------------------------------------
First quarter 2007 1.31 33.0 57.8 55.0 5.69
----------------------------------------------------------------------
Fourth quarter 2006 1.29 22.8 59.6 57.1 6.16
----------------------------------------------------------------------
Third quarter 2006 1.27 28.7 69.5 65.4 5.59
----------------------------------------------------------------------
Second quarter 2006 1.26 38.3 69.6 66.2 5.75
----------------------------------------------------------------------
First quarter 2006 1.20 25.8 61.8 58.8 6.16
----------------------------------------------------------------------
Fourth quarter 2005 1.19 45.5 56.9 54.5 5.68
----------------------------------------------------------------------
Third quarter 2005 1.22 44.3 61.5 57.8 4.65
----------------------------------------------------------------------
Second quarter 2005 1.26 45.0 51.6 48.0 4.39
----------------------------------------------------------------------
First quarter 2005 1.31 31.7 47.6 44.1 4.40
----------------------------------------------------------------------
Fourth quarter 2004 1.30 42.4 44.0 40.6 4.24
----------------------------------------------------------------------
Third quarter 2004 1.22 32.9 41.5 39.5 3.54
----------------------------------------------------------------------
Second quarter 2004 1.20 34.4 35.4 34.2 3.44
----------------------------------------------------------------------
First quarter 2004 1.25 21.6 32.0 31.0 3.70
----------------------------------------------------------------------
Fourth quarter 2003 1.19 18.9 29.4 28.4 3.46
----------------------------------------------------------------------
Third quarter 2003 1.12 14.6 28.4 27.6 3.04
----------------------------------------------------------------------
Second quarter 2003 1.14 17.6 26.0 25.0 3.19
----------------------------------------------------------------------
First quarter 2003 1.07 32.3 31.5 30.8 3.39
----------------------------------------------------------------------
* 1 $/t = 0.136 $/b ** consolidated subsidiaries, excluding fixed
margin and buy-back contracts
Disclaimer : these data are based on Total's reporting and are not
audited. They are subject to change.
*T
Total Financial statements
Second quarter and first half 2008 consolidated accounts, IFRS
-0-
*T
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
2nd 1st 2nd
quarter quarter quarter
(M EUR ) (a) 2008 2008 2007
----------------------------------------------------------------------
Sales 48,200 44,213 39,094
Excise taxes (4,900) (4,926) (5,595)
Revenues from sales 43,300 39,287 33,499
Purchases, net of inventory variation (27,958) (25,619) (21,385)
Other operating expenses (4,439) (4,832) (4,139)
Exploration costs (203) (190) (255)
Depreciation, depletion, and amortization
of tangible assets and mineral interests (1,384) (1,294) (1,365)
Other income 15 153 60
Other expense (121) (48) (102)
Financial interest on debt (204) (257) (447)
Financial income from marketable securities
and cash equivalents 113 129 337
Cost of net debt (91) (128) (110)
Other financial income 229 116 209
Other financial expense (80) (71) (74)
Income taxes (4,931) (4,217) (3,292)
Equity in income (loss) of affiliates 538 546 449
----------------------------------------------------------------------
Consolidated net income 4,875 3,703 3,495
----------------------------------------------------------------------
Group share * 4,732 3,602 3,411
Minority interests 143 101 84
----------------------------------------------------------------------
Earnings per share (euros) 2.12 1.61 1.51
----------------------------------------------------------------------
Fully-diluted earnings per share (euros)
*** 2.10 1.60 1.50
----------------------------------------------------------------------
----------------------------------------------------------------------
* Adjusted net income 3,723 3,254 3,100
----------------------------------------------------------------------
** Adjusted fully-diluted earnings per
share (euros) 1.65 1.44 1.36
----------------------------------------------------------------------
(a) Except for earnings per share.
*T
-0-
*T
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
1st half 1st half
(M EUR ) (a) 2008 2007
----------------------------------------------------------------------
Sales 92,413 76,137
Excise taxes (9,826) (10,961)
Revenues from sales 82,587 65,176
Purchases, net of inventory variation (53,577) (41,094)
Other operating expenses (9,271) (8,791)
Exploration costs (393) (469)
Depreciation, depletion, and amortization of
tangible assets and mineral interests (2,678) (2,665)
Other income 168 156
Other expense (169) (166)
Financial interest on debt (461) (877)
Financial income from marketable securities and cash
equivalents 242 631
Cost of net debt (219) (246)
Other financial income 345 337
Other financial expense (151) (141)
Income taxes (9,148) (6,382)
Equity in income (loss) of affiliates 1,084 918
----------------------------------------------------------------------
Consolidated net income 8,578 6,633
----------------------------------------------------------------------
Group share * 8,334 6,460
----------------------------------------------------------------------
Minority interests 244 173
----------------------------------------------------------------------
Earnings per share (euros) 3.72 2.86
----------------------------------------------------------------------
Fully-diluted earnings per share (euros) ** 3.70 2.83
----------------------------------------------------------------------
----------------------------------------------------------------------
* Adjusted net income 6,977 6,092
----------------------------------------------------------------------
** Adjusted fully-diluted earnings per share (euros) 3.10 2.67
----------------------------------------------------------------------
(a) Except for earnings per share
*T
-0-
*T
CONSOLIDATED BALANCE SHEET
TOTAL
June 30, March 31, December June 30,
2008 2008 31, 2007
(M EUR ) (unaudited) (unaudited) 2007 (unaudited)
----------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets, net 4,381 4,374 4,650 4,729
Property, plant and
equipment, net 41,756 40,436 41,467 42,090
Equity affiliates :
investments and loans 14,524 15,039 15,280 13,619
Other investments 1,246 1,215 1,291 1,385
Hedging instruments of
non-current financial
debt 540 651 460 287
Other non-current assets 2,179 2,066 2,155 1,801
----------------------------------------------------------------------
Total non-current assets 64,626 63,781 65,303 63,911
----------------------------------------------------------------------
Current assets
Inventories, net 17,185 13,892 13,851 12,009
Accounts receivable, net 21,856 18,664 19,129 17,024
Other current assets 9,644 8,261 8,006 7,155
Current financial assets 223 403 1,264 10,883
Cash and cash equivalents 7,245 8,341 5,988 2,858
----------------------------------------------------------------------
Total current assets 56,153 49,561 48,238 49,929
----------------------------------------------------------------------
Total assets 120,779 113,342 113,541 113,840
LIABILITIES &
SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 6,003 5,990 5,989 5,983
Paid-in surplus and
retained earnings 55,024 52,376 48,797 44,238
Currency translation
adjustment (6,483) (6,653) (4,396) (1,885)
Treasury shares (6,271) (5,963) (5,532) (4,679)
----------------------------------------------------------------------
Total shareholders'
equity - Group share 48,273 45,750 44,858 43,657
----------------------------------------------------------------------
Minority interests 855 833 842 817
----------------------------------------------------------------------
Total shareholders'
equity 49,128 46,583 45,700 44,474
----------------------------------------------------------------------
Non-current liabilities
Deferred income taxes 7,748 7,840 7,933 7,442
Employee benefits 2,533 2,489 2,527 2,814
Other non-current
liabilities 6,567 6,431 6,843 6,359
----------------------------------------------------------------------
Total non-current
liabilities 16,848 16,760 17,303 16,615
----------------------------------------------------------------------
Non-current financial
debt 14,777 13,388 14,876 15,045
----------------------------------------------------------------------
Current liabilities
Accounts payable 19,297 17,240 18,183 14,418
Other creditors and
accrued liabilities 15,760 14,345 12,806 13,386
Current borrowings 4,795 4,861 4,613 9,809
Other current financial
liabilities 174 165 60 93
----------------------------------------------------------------------
Total current liabilities 40,026 36,611 35,662 37,706
----------------------------------------------------------------------
Total liabilities and
shareholders' equity 120,779 113,342 113,541 113,840
*T
-0-
*T
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
2nd 1st 2nd
quarter quarter quarter
(M EUR ) 2008 2008 2007
----------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 4,875 3,703 3,495
Depreciation, depletion and amortization 1,482 1,405 1,495
Non-current liabilities, valuation
allowances and deferred taxes 32 11 315
Impact of coverage of pension benefit plans - - -
(Gains) Losses on disposals of assets (15) (153) (66)
Undistributed affiliates' equity earnings 104 (302) 1
(Increase) Decrease in operating assets and
liabilities (4,563) 610 (1,693)
Other changes, net 7 42 42
----------------------------------------------------------------------
Cash flow from operating activities 1,922 5,316 3,589
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and
equipment additions (2,619) (2,327) (2,509)
Acquisitions of subsidiaries, net of cash
acquired - - -
Investments in equity affiliates and other
securities (41) (107) (47)
Increase in non-current loans (208) (209) (134)
----------------------------------------------------------------------
Total expenditures (2,868) (2,643) (2,690)
Proceeds from disposal of intangible assets
and property, plant and equipment 16 6 18
Proceeds from disposal of subsidiaries, net
of cash sold 84 - -
Proceeds from disposal of non-current
investments 20 69 64
Repayment of non-current loans 606 123 140
----------------------------------------------------------------------
Total divestments 726 198 222
----------------------------------------------------------------------
Cash flow used in investing activies (2,142) (2,445) (2,468)
CASH FLOW FROM (USED IN) FINANCING
ACTIVITIES
Issuance (Repayment) of shares:
- Parent company shareholders 233 9 10
- Treasury shares (284) (427) (295)
- Minority shareholders - (9) -
Cash dividends paid to:
- Parent company shareholders (2,404) - (2,262)
- Minority shareholders (127) (1) (133)
Net issuance (repayment) of non-current
debt 1,562 503 1,309
Increase (Decrease) in current borrowings 55 (887) (135)
Increase (Decrease) in current financial
assets and liabilities (18) 835 138
Other changes, net - - -
----------------------------------------------------------------------
Cash flow from (used in) financing
activities (983) 23 (1,368)
----------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents (1,203) 2,894 (247)
Effect of exchange rates and changes in
scope of consolidation 107 (541) 143
Cash and cash equivalents at the beginning
of the period 8,341 5,988 2,962
----------------------------------------------------------------------
Cash and cash equivalents at the end of the
period 7,245 8,341 2,858
----------------------------------------------------------------------
*T
-0-
*T
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited)
1st 1st
half half
(M EUR ) 2008 2007
----------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 8,578 6,633
Depreciation, depletion and amortization 2,887 2,933
Non-current liabilities, valuation allowances and
deferred taxes 43 288
Impact of coverage of pension benefit plans - -
(Gains) Losses on disposals of assets (168) (141)
Undistributed affiliates' equity earnings (198) (329)
(Increase) Decrease in operating assets and
liabilities (3,953) 405
Other changes, net 49 188
----------------------------------------------------------------------
Cash flow from operating activities 7,238 9,977
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment
additions (4,946) (4,632)
Acquisitions of subsidiaries, net of cash acquired - (20)
Investments in equity affiliates and other securities (148) (147)
Increase in non-current loans (417) (305)
----------------------------------------------------------------------
Total expenditures (5,511) (5,104)
Proceeds from disposal of intangible assets and
property, plant and equipment 22 90
Proceeds from disposal of subsidiaries, net of cash
sold 84 -
Proceeds from disposal of non-current investments 89 83
Repayment of non-current loans 729 293
----------------------------------------------------------------------
Total divestments 924 466
----------------------------------------------------------------------
Cash flow used in investing activies (4,587) (4,638)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (Repayment) of shares:
- Parent company shareholders 242 15
- Treasury shares (711) (568)
- Minority shareholders (9) -
Cash dividends paid to:
- Parent company shareholders (2,404) (2,262)
- Minority shareholders (128) (162)
Net issuance (repayment) of non-current debt 2,065 2,413
Increase (Decrease) in current borrowings (832) 2,507
Increase (Decrease) in current financial assets and
liabilities 817 (6,968)
Other changes, net - -
----------------------------------------------------------------------
Cash flow used in financing activities (960) (5,025)
----------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 1,691 314
Effect of exchange rates and changes in scope of
consolidation (434) 51
Cash and cash equivalents at the beginning of the
period 5,988 2,493
----------------------------------------------------------------------
Cash and cash equivalents at the end of the period 7,245 2,858
----------------------------------------------------------------------
*T
-0-
*T
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL
(unaudited)
----------------------------------------------------------------------
Paid-in
surplus Currency
Common shares issued and translation
retained adjustment
earnings
(M EUR ) Number Amount
----------------------------------------------------------------------
As of January 1, 2007 2,425,767,953 6,064 41,460 (1,383)
----------------------------------------------------------------------
Net income for the first
half - - 6,460 -
Items recognized directly
in equity - - 108 (502)
Total excluding
transactions with
shareholders - - 6,568 (502)
Dividend paid - - (2,262) -
Issuance of common shares 549,873 1 14 -
Purchase of treasury
shares - - - -
Sale of treasury shares
(a) - - 28 -
Share-based payments - - 82 -
Transactions with
shareholders 549,873 1 (2,138) -
Share cancellation (33,005,000) (82) (1,652) -
As of June 30, 2007 2,393,312,826 5,983 44,238 (1,885)
----------------------------------------------------------------------
Net income for the second
half - - 6,721 -
Items recognized directly
in equity - - 9 (2,511)
Total excluding
transactions with
shareholders - - 6,730 (2,511)
Dividend paid - - (2,248) -
Issuance of common shares 2,219,271 6 68 -
Purchase of treasury
shares - - - -
Sale of treasury shares
(a) - - (105) -
Share-based payments - - 114 -
Transactions with
shareholders 2,219,271 6 (2,171) -
Share cancellation - - - -
As of December 31, 2007 2,395,532,097 5,989 48,797 (4,396)
----------------------------------------------------------------------
Net income for the first
half - - 8,334 -
Items recognized directly
in equity - - (43) (2,087)
Total excluding
transactions with
shareholders - - 8,291 (2,087)
Dividend paid - - (2,404) -
Issuance of common shares 5,678,338 14 228 -
Purchase of treasury
shares - - - -
Sale of treasury shares
(a) - - 28 -
Share-based payments - - 84 -
Transactions with
shareholders 5,678,338 14 (2,064) -
Share cancellation - - - -
As of June 30, 2008 2,401,210,435 6,003 55,024 (6,483)
----------------------------------------------------------------------
(a) Treasury shares related to the stock option purchase plans and
restricted stock grants
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TOTAL
(unaudited)
---------------------------------------------------------------------
Treasury shares Shareholders' Minority Total
equity interests equity
(M EUR ) Number Amount
---------------------------------------------------------------------
As of January
1, 2007 (161,200,707) (5,820) 40,321 827 41,148
---------------------------------------------------------------------
Net income for
the first
half - - 6,460 173 6,633
Items
recognized
directly in
equity - - (394) (21) (415)
Total
excluding
transactions
with
shareholders - - 6,066 152 6,218
Dividend paid - - (2,262) (162) (2,424)
Issuance of
common shares - - 15 - 15
Purchase of
treasury
shares (14,000,000) (755) (755) - (755)
Sale of
treasury
shares (a) 5,052,289 162 190 - 190
Share-based
payments - - 82 - 82
Transactions
with
shareholders (8,947,711) (593) (2,730) (162) (2,892)
Share
cancellation 33,005,000 1,734 - - -
As of June 30,
2007 (137,143,418) (4,679) 43,657 817 44,474
---------------------------------------------------------------------
Net income for
the second
half - - 6,721 181 6,902
Items
recognized
directly in
equity - - (2,502) (90) (2,592)
Total
excluding
transactions
with
shareholders - - 4,219 91 4,310
Dividend paid - - (2,248) (66) (2,314)
Issuance of
common shares - - 74 - 74
Purchase of
treasury
shares (18,387,355) (1,032) (1,032) - (1,032)
Sale of
treasury
shares (a) 4,109,541 179 74 - 74
Share-based
payments - - 114 - 114
Transactions
with
shareholders (14,277,814) (853) (3,018) (66) (3,084)
Share
cancellation - - - - -
As of December
31, 2007 (151,421,232) (5,532) 44,858 842 45,700
---------------------------------------------------------------------
Net income for
the first
half - - 8,334 244 8,578
Items
recognized
directly in
equity - - (2,130) (103) (2,233)
Total
excluding
transactions
with
shareholders - - 6,204 141 6,345
Dividend paid - - (2,404) (128) (2,532)
Issuance of
common shares - - 242 - 242
Purchase of
treasury
shares (16,000,000) (818) (818) - (818)
Sale of
treasury
shares (a) 2,679,805 79 107 - 107
Share-based
payments - - 84 - 84
Transactions
with
shareholders (13,320,195) (739) (2,789) (128) (2,917)
Share
cancellation - - - - -
As of June 30,
2008 (164,741,427) (6,271) 48,273 855 49,128
---------------------------------------------------------------------
(a) Treasury shares related to the stock option purchase plans and
restricted stock grants
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Non-Group sales 5,739 36,990 5,478 (7) - 48,200
Intersegment
sales 7,862 1,497 449 37 (9,845) -
Excise taxes - (4,900) - - - (4,900)
----------------------------------------------------------------------
Revenues from
sales 13,601 33,587 5,927 30 (9,845) 43,300
Operating
expenses (5,679) (31,095) (5,491) (180) 9,845 (32,600)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (958) (291) (128) (7) - (1,384)
----------------------------------------------------------------------
Operating income 6,964 2,201 308 (157) - 9,316
Equity in income
(loss) of
affiliates and
other items 439 20 (11) 133 - 581
Tax on net
operating
income (4,304) (651) (88) 78 - (4,965)
----------------------------------------------------------------------
Net operating
income 3,099 1,570 209 54 - 4,932
Net cost of net
debt (57)
Minority
interests (143)
----------------------------------------------------------------------
Net income 4,732
----------------------------------------------------------------------
2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(adjustments*) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales
Intersegment
sales
Excise taxes
----------------------------------------------------------------------
Revenues from
sales
Operating
expenses - 1,457 230 - 1,687
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests - - - - -
----------------------------------------------------------------------
Operating income
(a) - 1,457 230 - 1,687
Equity in income
(loss) of
affiliates and
other items (b) - (10) (22) (96) (128)
Tax on net
operating
income - (464) (69) - (533)
----------------------------------------------------------------------
Net operating
income (a) - 983 139 (96) 1,026
Net cost of net
debt -
Minority
interests (17)
----------------------------------------------------------------------
Net income 1,009
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(a) Of which inventory valuation effect
On operating
income - 1,457 230 -
On net operating
income - 1,018 153 -
(b) Of which
equity share of
amortization of
intangible
assets related
to the Sanofi-
Aventis merger - - - (78)
----------------------------------------------------------------------
2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(adjusted) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales 5,739 36,990 5,478 (7) - 48,200
Intersegment
sales 7,862 1,497 449 37 (9,845) -
Excise taxes - (4,900) - - - (4,900)
----------------------------------------------------------------------
Revenues from
sales 13,601 33,587 5,927 30 (9,845) 43,300
Operating
expenses (5,679) (32,552) (5,721) (180) 9,845 (34,287)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (958) (291) (128) (7) - (1,384)
----------------------------------------------------------------------
Adjusted
operating
income 6,964 744 78 (157) - 7,629
Equity in income
(loss) of
affiliates and
other items 439 30 11 229 - 709
Tax on net
operating
income (4,304) (187) (19) 78 - (4,432)
----------------------------------------------------------------------
Adjusted net
operating
income 3,099 587 70 150 - 3,906
Net cost of net
debt (57)
Minority
interests (126)
----------------------------------------------------------------------
Ajusted net
income 3,723
----------------------------------------------------------------------
2nd quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Total
expenditures 2,076 514 221 57 2,868
Total
divestments 565 128 12 21 726
Cash flow from
operating
activities 3,643 (1,391) 169 (499) 1,922
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Non-Group sales 6,196 32,780 5,229 8 - 44,213
Intersegment
sales 6,118 1,553 257 33 (7,961) -
Excise taxes - (4,926) - - - (4,926)
----------------------------------------------------------------------
Revenues from
sales 12,314 29,407 5,486 41 (7,961) 39,287
Operating
expenses (5,018) (28,251) (5,157) (176) 7,961 (30,641)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (873) (285) (129) (7) - (1,294)
----------------------------------------------------------------------
Operating income 6,423 871 200 (142) - 7,352
Equity in income
(loss) of
affiliates and
other items 465 (33) 14 250 - 696
Tax on net
operating
income (4,027) (247) (55) 72 - (4,257)
----------------------------------------------------------------------
Net operating
income 2,861 591 159 180 - 3,791
Net cost of net
debt (88)
Minority
interests (101)
----------------------------------------------------------------------
Net income 3,602
----------------------------------------------------------------------
1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(adjustments*) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales
Intersegment
sales
Excise taxes
----------------------------------------------------------------------
Revenues from
sales
Operating
expenses - 373 2 - 375
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests - - - - -
----------------------------------------------------------------------
Operating income
(a) - 373 2 - 375
Equity in income
(loss) of
affiliates and
other items (b) 130 25 - (56) 99
Tax on net
operating
income - (118) (1) - (119)
----------------------------------------------------------------------
Net operating
income (a) 130 280 1 (56) 355
Net cost of net
debt -
Minority
interests (7)
----------------------------------------------------------------------
Net income 348
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(a) Of which inventory valuation effect
On operating
income - 373 2 -
On net operating
income - 280 1 -
(b) Of which
equity share of
amortization of
intangible
assets related
to the Sanofi-
Aventis merger - - - (71)
----------------------------------------------------------------------
1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(adjusted) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales 6,196 32,780 5,229 8 - 44,213
Intersegment
sales 6,118 1,553 257 33 (7,961) -
Excise taxes - (4,926) - - - (4,926)
----------------------------------------------------------------------
Revenues from
sales 12,314 29,407 5,486 41 (7,961) 39,287
Operating
expenses (5,018) (28,624) (5,159) (176) 7,961 (31,016)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (873) (285) (129) (7) - (1,294)
----------------------------------------------------------------------
Adjusted
operating
income 6,423 498 198 (142) - 6,977
Equity in income
(loss) of
affiliates and
other items 335 (58) 14 306 - 597
Tax on net
operating
income (4,027) (129) (54) 72 - (4,138)
----------------------------------------------------------------------
Adjusted net
operating
income 2,731 311 158 236 - 3,436
Net cost of net
debt (88)
Minority
interests (94)
----------------------------------------------------------------------
Ajusted net
income 3,254
----------------------------------------------------------------------
1st quarter 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Total
expenditures 2,178 294 164 7 2,643
Total
divestments 107 24 7 60 198
Cash flow from
operating
activities 4,251 1,168 (202) 99 5,316
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Non-Group sales 4,456 29,562 5,070 6 - 39,094
Intersegment
sales 5,073 1,201 269 25 (6,568) -
Excise taxes - (5,595) - - - (5,595)
---------------- ------- -------- --------- --------- ------- --------
Revenues from
sales 9,529 25,168 5,339 31 (6,568) 33,499
Operating
expenses (4,148) (23,244) (4,812) (143) 6,568 (25,779)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (941) (297) (119) (8) - (1,365)
----------------------------------------------------------------------
Operating income 4,440 1,627 408 (120) - 6,355
Equity in income
(loss) of
affiliates and
other items 397 72 14 59 - 542
Tax on net
operating
income (2,745) (519) (123) 51 - (3,336)
----------------------------------------------------------------------
Net operating
income 2,092 1,180 299 (10) - 3,561
Net cost of net
debt (66)
Minority
interests (84)
----------------------------------------------------------------------
Net income 3,411
----------------------------------------------------------------------
2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total
(adjustments*) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales
Intersegment
sales
Excise taxes
----------------------------------------------------------------------
Revenues from
sales
Operating
expenses - 623 96 - 719
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests - - - - -
----------------------------------------------------------------------
Operating income
(a) - 623 96 - 719
Equity in income
(loss) of
affiliates and
other items (b) - 6 1 (172) (165)
Tax on net
operating
income - (204) (32) - (236)
----------------------------------------------------------------------
Net operating
income (a) - 425 65 (172) 318
Net cost of net
debt -
Minority
interests (7)
----------------------------------------------------------------------
Net income 311
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(a) Of which inventory valuation effect
On operating
income - 623 96 -
On net operating
income - 425 65 -
(b) Of which
equity share of
amortization of
intangible
assets related
to the Sanofi-
Aventis merger - - - (72)
----------------------------------------------------------------------
2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total
(adjusted) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales 4,456 29,562 5,070 6 - 39,094
Intersegment
sales 5,073 1,201 269 25 (6,568) -
Excise taxes - (5,595) - - - (5,595)
----------------------------------------------------------------------
Revenues from
sales 9,529 25,168 5,339 31 (6,568) 33,499
Operating
expenses (4,148) (23,867) (4,908) (143) 6,568 (26,498)
Depreciation,
depletion, and
amortization of
tangible assets
and mineral
interests (941) (297) (119) (8) - (1,365)
----------------------------------------------------------------------
Adjusted
operating
income 4,440 1,004 312 (120) - 5,636
Equity in income
(loss) of
affiliates and
other items 397 66 13 231 - 707
Tax on net
operating
income (2,745) (315) (91) 51 - (3,100)
----------------------------------------------------------------------
Adjusted net
operating
income 2,092 755 234 162 - 3,243
Net cost of net
debt (66)
Minority
interests (77)
----------------------------------------------------------------------
Ajusted net
income 3,100
----------------------------------------------------------------------
2nd quarter 2007 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Total
expenditures 2,109 401 173 7 2,690
Total
divestments 191 28 1 2 222
Cash flow from
operating
activities 3,312 1,432 254 (1,409) 3,589
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
1st half 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Non-Group sales 11,935 69,770 10,707 1 - 92,413
Intersegment
sales 13,980 3,050 706 70 (17,806) -
Excise taxes - (9,826) - - - (9,826)
----------------------------------------------------------------------
Revenues from
sales 25,915 62,994 11,413 71 (17,806) 82,587
Operating
expenses (10,697) (59,346) (10,648) (356) 17,806 (63,241)
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests (1,831) (576) (257) (14) - (2,678)
----------------------------------------------------------------------
Operating
income 13,387 3,072 508 (299) - 16,668
Equity in
income (loss)
of affiliates
and other
items 904 (13) 3 383 - 1,277
Tax on net
operating
income (8,331) (898) (143) 150 - (9,222)
----------------------------------------------------------------------
Net operating
income 5,960 2,161 368 234 - 8,723
Net cost of net
debt (145)
Minority
interests (244)
----------------------------------------------------------------------
Net income 8,334
----------------------------------------------------------------------
1st half 2008 Up- Down- Chemicals Corporate Inter- Total
(adjustments*) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales
Intersegment
sales
Excise taxes
----------------------------------------------------------------------
Revenues from
sales
Operating
expenses - 1,830 232 - 2,062
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests - - - - -
----------------------------------------------------------------------
Operating
income (a) - 1,830 232 - 2,062
Equity in
income (loss)
of affiliates
and other
items (b) 130 15 (22) (152) (29)
Tax on net
operating
income - (582) (70) - (652)
----------------------------------------------------------------------
Net operating
income (a) 130 1,263 140 (152) 1,381
Net cost of net
debt -
Minority
interests (24)
----------------------------------------------------------------------
Net income 1,357
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(a) Of which inventory valuation effect
On operating
income - 1,830 232 -
On net
operating
income - 1,298 154 -
(b) Of which
equity share
of
amortization
of intangible
assets related
to the Sanofi-
Aventis merger - - - (149)
----------------------------------------------------------------------
1st half 2008 Up- Down- Chemicals Corporate Inter- Total
(adjusted) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales 11,935 69,770 10,707 1 - 92,413
Intersegment
sales 13,980 3,050 706 70 (17,806) -
Excise taxes - (9,826) - - - (9,826)
----------------------------------------------------------------------
Revenues from
sales 25,915 62,994 11,413 71 (17,806) 82,587
Operating
expenses (10,697) (61,176) (10,880) (356) 17,806 (65,303)
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests (1,831) (576) (257) (14) - (2,678)
----------------------------------------------------------------------
Adjusted
operating
income 13,387 1,242 276 (299) - 14,606
Equity in
income (loss)
of affiliates
and other
items 774 (28) 25 535 - 1,306
Tax on net
operating
income (8,331) (316) (73) 150 - (8,570)
----------------------------------------------------------------------
Adjusted net
operating
income 5,830 898 228 386 - 7,342
Net cost of net
debt (145)
Minority
interests (220)
----------------------------------------------------------------------
Ajusted net
income 6,977
----------------------------------------------------------------------
1st half 2008 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Total
expenditures 4,254 808 385 64 5,511
Total
divestments 672 152 19 81 924
Cash flow from
operating
activities 7,894 (223) (33) (400) 7,238
----------------------------------------------------------------------
*T
-0-
*T
BUSINESS SEGMENT INFORMATION
TOTAL
(unaudited)
----------------------------------------------------------------------
1st half 2007 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Non-Group sales 9,690 56,363 10,065 19 - 76,137
Intersegment
sales 9,816 2,444 501 67 (12,828) -
Excise taxes - (10,961) - - - (10,961)
----------------------------------------------------------------------
Revenues from
sales 19,506 47,846 10,566 86 (12,828) 65,176
Operating
expenses (8,872) (44,551) (9,467) (292) 12,828 (50,354)
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests (1,819) (588) (243) (15) - (2,665)
----------------------------------------------------------------------
Operating
income 8,815 2,707 856 (221) - 12,157
Equity in
income (loss)
of affiliates
and other
items 667 126 37 274 - 1,104
Tax on net
operating
income (5,429) (856) (271) 83 - (6,473)
----------------------------------------------------------------------
Net operating
income 4,053 1,977 622 136 - 6,788
Net cost of net
debt (155)
Minority
interests (173)
----------------------------------------------------------------------
Net income 6,460
----------------------------------------------------------------------
1st half 2007 Up- Down- Chemicals Corporate Inter- Total
(adjustments*) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales
Intersegment
sales
Excise taxes
----------------------------------------------------------------------
Revenues from
sales -
Operating
expenses - 730 163 - 893
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests - - - - -
----------------------------------------------------------------------
Operating
income (a) - 730 163 - 893
Equity in
income (loss)
of affiliates
and other
items (b) - 24 - (248) (224)
Tax on net
operating
income - (240) (54) - (294)
----------------------------------------------------------------------
Net operating
income (a) - 514 109 (248) 375
Net cost of net
debt -
Minority
interests (7)
----------------------------------------------------------------------
Net income 368
(*) Adjustments include special items, inventory valuation effect and
equity share of amortization of intangible assets related to the
Sanofi-Aventis merger
(a) Of which inventory valuation effect
On operating
income - 730 163 -
On net
operating
income - 514 109 -
(b) Of which
equity share
of
amortization
of intangible
assets related
to the Sanofi-
Aventis merger - - - (148)
----------------------------------------------------------------------
1st half 2007 Up- Down- Chemicals Corporate Inter- Total
(adjusted) stream stream company
(M EUR )
----------------------------------------------------------------------
Non-Group sales 9,690 56,363 10,065 19 - 76,137
Intersegment
sales 9,816 2,444 501 67 (12,828) -
Excise taxes - (10,961) - - - (10,961)
----------------------------------------------------------------------
Revenues from
sales 19,506 47,846 10,566 86 (12,828) 65,176
Operating
expenses (8,872) (45,281) (9,630) (292) 12,828 (51,247)
Depreciation,
depletion, and
amortization
of tangible
assets and
mineral
interests (1,819) (588) (243) (15) - (2,665)
----------------------------------------------------------------------
Adjusted
operating
income 8,815 1,977 693 (221) - 11,264
Equity in
income (loss)
of affiliates
and other
items 667 102 37 522 - 1,328
Tax on net
operating
income (5,429) (616) (217) 83 - (6,179)
----------------------------------------------------------------------
Adjusted net
operating
income 4,053 1,463 513 384 - 6,413
Net cost of net
debt (155)
Minority
interests (166)
----------------------------------------------------------------------
Ajusted net
income 6,092
----------------------------------------------------------------------
1st half 2007 Up- Down- Chemicals Corporate Inter- Total
(M EUR ) stream stream company
----------------------------------------------------------------------
Total
expenditures 4,098 645 346 15 5,104
Total
divestments 364 50 48 4 466
Cash flow from
operating
activities 7,647 3,337 361 (1,368) 9,977
----------------------------------------------------------------------
*T
-0-
*T
CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
----------------------------------------------------------------------
Ajusted Adjustments Consolidated
2nd quarter 2008 statement
(M EUR ) of income
----------------------------------------------------------------------
Sales 48,200 - 48,200
Excise taxes (4,900) - (4,900)
Revenues from sales 43,300 - 43,300
Purchases, net of inventory
variation (29,645) 1,687 (27,958)
Other operating expenses (4,439) - (4,439)
Exploration costs (203) - (203)
Depreciation, depletion, and
amortization of tangible assets and
mineral interests (1,384) - (1,384)
Other income 13 2 15
Other expense (26) (95) (121)
Financial interest on debt (204) - (204)
Financial income from marketable
securities and cash equivalents 113 - 113
Cost of net debt (91) - (91)
Other financial income 229 - 229
Other financial expense (80) - (80)
Income taxes (4,398) (533) (4,931)
Equity in income (loss) of
affiliates 573 (35) 538
----------------------------------------------------------------------
Consolidated net income 3,849 1,026 4,875
Group share 3,723 1,009 4,732
Minority interests 126 17 143
----------------------------------------------------------------------
2nd quarter 2007 Ajusted Adjustments Consolidated
(M EUR ) statement
of income
----------------------------------------------------------------------
Sales 39,094 - 39,094
Excise taxes (5,595) - (5,595)
Revenues from sales 33,499 - 33,499
Purchases, net of inventory
variation (22,104) 719 (21,385)
Other operating expenses (4,139) - (4,139)
Exploration costs (255) - (255)
Depreciation, depletion, and
amortization of tangible assets and
mineral interests (1,365) - (1,365)
Other income 60 - 60
Other expense (2) (100) (102)
Financial interest on debt (447) - (447)
Financial income from marketable
securities and cash equivalents 337 - 337
Cost of net debt (110) - (110)
Other financial income 209 - 209
Other financial expense (74) - (74)
Income taxes (3,056) (236) (3,292)
Equity in income (loss) of
affiliates 514 (65) 449
----------------------------------------------------------------------
Consolidated net income 3,177 318 3,495
Group share 3,100 311 3,411
Minority interests 77 7 84
*T
-0-
*T
CONSOLIDATED STATEMENT OF INCOME (Impact of adjustments)
TOTAL
(unaudited)
----------------------------------------------------------------------
Ajusted Adjustments Consolidated
1st half 2008 statement
(M EUR ) of income
----------------------------------------------------------------------
Sales 92,413 - 92,413
Excise taxes (9,826) - (9,826)
Revenues from sales 82,587 - 82,587
Purchases, net of inventory
variation (55,639) 2,062 (53,577)
Other operating expenses (9,271) - (9,271)
Exploration costs (393) - (393)
Depreciation, depletion, and
amortization of tangible assets and
mineral interests (2,678) - (2,678)
Other income 21 147 168
Other expense (74) (95) (169)
Financial interest on debt (461) - (461)
Financial income from marketable
securities and cash equivalents 242 - 242
Cost of net debt (219) - (219)
Other financial income 345 - 345
Other financial expense (151) - (151)
Income taxes (8,496) (652) (9,148)
Equity in income (loss) of
affiliates 1,165 (81) 1,084
----------------------------------------------------------------------
Consolidated net income 7,197 1,381 8,578
Group share 6,977 1,357 8,334
Minority interests 220 24 244
----------------------------------------------------------------------
1st half 2007 Ajusted Adjustments Consolidated
(M EUR ) statement
of income
----------------------------------------------------------------------
Sales 76,137 - 76,137
Excise taxes (10,961) - (10,961)
Revenues from sales 65,176 - 65,176
Purchases, net of inventory
variation (41,987) 893 (41,094)
Other operating expenses (8,791) - (8,791)
Exploration costs (469) - (469)
Depreciation, depletion, and
amortization of tangible assets and
mineral interests (2,665) - (2,665)
Other income 156 - 156
Other expense (66) (100) (166)
Financial interest on debt (877) - (877)
Financial income from marketable
securities and cash equivalents 631 - 631
Cost of net debt (246) - (246)
Other financial income 337 - 337
Other financial expense (141) - (141)
Income taxes (6,088) (294) (6,382)
Equity in income (loss) of
affiliates 1,042 (124) 918
----------------------------------------------------------------------
Consolidated net income 6,258 375 6,633
Group share 6,092 368 6,460
Minority interests 166 7 173
*T
-0-
*T
CONTACT: Total
Jerome SCHMITT
Philippe HERGAUX
Sandrine SABOUREAU
Laurent KETTENMEYER
Tel. : 33 (1) 47 44 58 53
Fax : 33 (1) 47 44 58 24
or
Robert HAMMOND (U.S.)
Tel. : (1) 201 626 3500
Fax : (1) 201 626 4004
*T
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