TOT
$59.36
Totalfinaelf S.A.
($1.68)
(2.75%)
Earnings Details
1st Quarter March 2018
Thursday, April 26, 2018 6:57:00 AM
Tweet Share Watch
Summary

Totalfinaelf S.A. (TOT) Recent Earnings

Totalfinaelf S.A. (TOT) reported 1st Quarter March 2018 earnings of $1.09 per share on revenue of $49.6 billion. The consensus earnings estimate was $1.12 per share. Revenue grew 20.5% on a year-over-year basis.

Total SA is an integrated oil and gas company. It explores and develops oil and gas properties, liquefied natural gas, petrochemicals and specialty chemicals. It is also engaged in trading and shipping of crude oil and petroleum products.

Results
Reported Earnings
$1.09
Earnings Whisper
-
Consensus Estimate
$1.12
Reported Revenue
$49.61 Bil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Total: First Quarter 2018 Results

PARIS--(BUSINESS WIRE)--

Regulatory News:

    1Q18   1Q17  

Change

vs 1Q17

     
Adjusted net income1
- in billions of dollars (B$) 2.9 2.6 +13%
- in dollars per share 1.09 1.01 +8%
 
Operating cash flow before working capital changes8 (B$) 5.4 4.7 +15%
DACF9 (B$) 5.7 4.9 +16%
             
 
Net income (Group share) of 2.6 B$ in 1Q18, a 7% decrease compared to 1Q17
Net-debt-to-capital ratio of 15.1% at March 31, 2018
Hydrocarbon production of 2,703 kboe/d in 1Q18, an increase of more than 5% compared to 1Q17
Ex-dividend date for first interim 2018 dividend of 0.64 €/share on 25 September 2018

Total’s (Paris:FP) (LSE:TTA) (NYSE:TOT) Board of Directors met on April 25, 2018, to review the Group’s first quarter accounts. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

« Oil prices continued to rebound in the first quarter 2018. Brent rose to an average of $67 per barrel, supported by strong demand, OPEC-non-OPEC compliance and geopolitical tensions. Conversely, as a result of this increase, refining margins were weaker (-34%). In this context, the Group’s adjusted net income and DACF continued to increase, achieving growth of 13% and 16%, respectively, compared to a year ago, in line with announced sensitivities. Cash flow after organic investments increased to $2.8 billion, up by more than 50% from a year ago, thanks to good operational performance and continued spending discipline. Return on equity was 10%.

In line with the shareholder return policy announced in February, the Group is raising the first 2018 interim dividend by 3.2%. Scrip shares issued in January for the second 2017 interim dividend were bought back to prevent any dilution. In addition, the group bought back a further $300 million of shares to return to shareholders part of the benefit realized from higher oil prices.

First quarter production reached a record level of more than 2.7 Mboe/d, an increase of more than 5% from a year ago, despite the expiration of the Mahakam permit in Indonesia. Notable drivers included the ramp-ups of new projects, like Yamal LNG in Russia and Moho Nord in Congo, as well as the contribution of new assets, in particular Maersk Oil and Al Shaheen in Qatar. There were two start-ups in the first quarter, Fort Hills in Canada and Timimoun in Algeria.
The Group continues to prepare for the future. Major successes were achieved by successfully obtaining two new 40-year concessions in offshore Abu Dhabi, acquiring a 16% interest in the Waha onshore concession in Libya and growing its position in the deep-offshore Gulf of Mexico, following the giant discovery of Ballymore in January.
In the Downstream, the Group is pursuing its growth in petrochemicals with the finalization of a joint venture with NOVA and Borealis in the United States and by signing an agreement in principle to build a giant petrochemical complex integrated into the SATORP refinery in Saudi Arabia.
The announced acquisition of Direct Energie allows Total to accelerate its development in gas and power generation and distribution in France and Belgium. This transaction is part of the Group’s strategy to expand along the entire gas-power value chain and to develop low-carbon energies. »

Key figures1

In millions of dollars, except effective tax rate,

earnings per share and number of shares

  1Q18   4Q17   1Q17  

1Q18

vs

1Q17

Adjusted net operating income from business segments   3,385   3,359   2,767   +22%
Exploration & Production   2,183   1,805   1,382   +58%
Gas, Renewables & Power 115 232 61 +89%
Refining & Chemicals 720 886 1,023 -30%
Marketing & Services   367   436   301   +22%
Contribution of equity affiliates to adjusted net income   637   731   591   +8%
Group effective tax rate2   39.9%   31.8%   31.3%   -
Adjusted net income   2,884   2,872   2,558   +13%
Adjusted fully-diluted earnings per share (dollars)3   1.09   1.10   1.01   +8%
Adjusted fully-diluted earnings per share (euros)*   0.89   0.94   0.95   -7%
Fully-diluted weighted-average shares (millions)   2,568   2,536   2,457   +4%
                 
Net income (Group share)   2,636   1,021   2,849   -7%
                 
Investments4   6,724   5,103   3,678   +83%
Divestments5   2,585   1,467   2,898   -11%
Net investments6   4,139   3,638   780   x5.3
Organic investments7   2,620   4,442   2,944   -11%
Resource acquisitions   3,474   107   12   n.s.
Operating cash flow before working capital changes8   5,370   5,955   4,687   +15%
Operating cash flow before working capital changes w/o financial charges (DACF)9   5,668   6,233   4,902   +16%
Cash flow from operations   2,081   8,615   4,701   -56%

* Average €-$ exchange rate: 1.2292 in the first quarter 2018.

Highlights since the beginning of 201810

  • Started production at the Timimoun gas field in Algeria and the Fort Hills project in Canada
  • Obtained interests in two new 40-year concessions for offshore fields Umm Shaif and Nasr (20%) and Lower Zakum (5%) in Abu Dhabi
  • Acquired a 16.33% interest in the onshore Waha concession in Libya
  • Total became the second-largest North Sea operator with the closing of the Maersk Oil acquisition
  • Finalized the acquisition of interests in the deep-offshore fields of Lapa and Iara in Brazil as part of the strategic alliance with Petrobras
  • Finalized the sale of the Martin Linge field in Norway
  • Strengthened the Group’s presence in the deep-offshore Gulf of Mexico with the major Ballymore discovery as well as acquiring from Cobalt increased interests in the Anchor discovery and North Platte to reach 32.5% and 60% respectively and exploration assets
  • Acquired exploration permits in prolific basins in Guyana and Mediterranean Sea offshore Lebanon
  • Created a petrochemical joint venture in the United States with Borealis and NOVA Chemicals
  • Signed an MOU with Saudi Aramco for the construction of a giant petrochemical complex at the Satorp refinery in Jubail, Saudi Arabia
  • Signed an agreement to acquire Direct Energie

Analysis of business segments

Exploration & Production

> Environment – liquids and gas price realizations*

    1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Brent ($/b)   66.8   61.3   53.7   +24%
Average liquids price ($/b)   60.3   57.6   49.2   +23%
Average gas price ($/Mbtu)   4.73   4.23   4.10   +15%
Average hydrocarbon price ($/boe)   47.3   43.3   37.9   +25%

* Consolidated subsidiaries, excluding fixed margins.

The average liquids differential deteriorated by 2 $/b due mainly to very weak prices achieved for bitumen production in Canada where production increased significantly with the startup of Fort Hills.

> Production

Production                
Hydrocarbon production   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Combined production (kboe/d)   2,703   2,613   2,569   +5%
Liquids (kb/d)   1,481   1,389   1,303   +14%
Gas (Mcf/d)   6,664   6,832   6,894   -3%

Hydrocarbon production was 2,703 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2018, an increase of more than 5% compared to 2017, due to the following:

  • +7% due to new start-ups and ramp-ups, notably Moho Nord, Yamal LNG, Edradour-Glenlivet, Kashagan, Fort Hills and Libra;
  • 0% portfolio effect. The integration of Al-Shaheen in Qatar, the assets of Maersk Oil, Waha in Libya and Lapa and Iara fields in Brazil were offset by the expiration of the Mahakam permit in Indonesia at the end of 2017;
  • +1% related to improved security conditions in Libya and Nigeria;
  • -3% due to the PSC price effect, natural field decline and production quotas.

> Results

In millions of dollars, except effective tax rate   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Adjusted net operating income*   2,183   1,805   1,382   +58%
including income from equity affiliates   446   419   315   +42%
Effective tax rate**   48.1%   42.8%   41.9%    
                 
Investments   5,871   3,490   2,636   +123%
Divestments   2,251   1,334   113   x20
Organic investments   2,057   3,120   2,506   -18%
Operating cash flow before working capital changes ***   4,265   4,263   3,336   +28%
Cash flow from operations ***   3,569   4,174   2,801   +27%

* Details on adjustment items are shown in the business segment information annex to financial statements.
** Tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income).
*** excluding financial charges

Exploration & Production adjusted net operating income was 2,183 M$ in the first quarter 2018, an increase of close to 60% compared to 2017. Production growth and cost reduction efforts helped capture the benefit of higher oil and gas prices, despite an increase in tax rate to 48% in line with increasing hydrocarbon prices.

Operating cash flow before working capital changes increased by 28% for the same reasons.
Exploration & Production generated 2.2 B$ of cash flow after organic investments in the first quarter 2018.

Gas, Renewables & Power

> Results

In millions of dollars   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Adjusted net operating income*   115   232   61   +89%
                 
Investments   249   306   315   -21%
Divestments   78   46   4   x19.5
Organic investments   77   85   102   -25%
Operating cash flow before working capital changes **   49   25   35   +40%
Cash flow from operations **   (179)   667   140   n.s.

* Detail of adjustment items shown in the business segment information annex to financial statements.
** excluding financial charges

Adjusted net operating income for the Gas, Renewables & Power segment was 115 M$ in the first quarter 2018, notably due to improved performance of solar activities.

Refining & Chemicals

> Refinery throughput and utilization rates*

    1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Total refinery throughput (kb/d)   1,832   1,842   1,917   -4%
France   624   648   625   -
Rest of Europe 746 784 799 -7%
Rest of world   462   410   493   -6%
Utlization rate based on crude only**   87%   91%   91%    

* Includes share of TotalErg, and African refineries reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.

Refinery throughput decreased by 4% in the first quarter 2018 compared to the first quarter 2017, notably as a result of the first major shutdown on one of two distillation trains at SATORP in Saudi Arabia, during which the capacity was increased by more than 10%, as well as operational difficulties on the Antwerp platform related to the start-up of Optara and the beginning of major turnaround activities on the largest distillation train.

> Results

In millions of dollars

except the ERMI

  1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

European refining margin indicator - ERMI ($/t)   25.6   35.5   38.9   -34%
                 
Adjusted net operating income*   720   886   1,023   -30%
                 
Investments   332   710   266   +25%
Divestments   25   36   2,740   -99%
Organic investments   308   684   222   +39%
Operating cash flow before working capital changes **   920   1,142   1,031   -11%
Cash flow from operations **   (1,109)   3,030   1,762   n.s.

* Detail of adjustment items shown in the business segment information annex to financial statements.
** excluding financial charges

The Group’s European refining margin indicator (ERMI) decreased by 34% to 25.6 $/t on average in the first quarter 2018, mainly due to an increase in oil prices and reduced seasonal demand.
In this context, Refining & Chemicals adjusted net operating income was 720 M$ in the first quarter 2018, a decrease of 30% compared to the first quarter 2017.

Marketing & Services

> Petroleum product sales

Sales in kb/d*   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Total Marketing & Services sales   1,801   1,821   1,728   +4%
Europe   993   1,046   1,039   -4%
Rest of world   808   775   689   +17%

* Excludes trading and bulk refining sales, includes share of TotalErg.

Petroleum product sales increased by 4% compared to a year ago, notably due to strong growth in Asia and Africa, thanks in part to the integration of GAPCO’s logistics and distribution activities in East Africa. European volumes decreased mainly due to the sale of TotalErg in Italy.

> Results

In millions of dollars   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Adjusted net operating income*   367   436   301   +22%
                 
Investments   228   570   439   -48%
Divestments   228   45   36   x6.3
Organic investments   136   533   95   +43%
Operating cash flow before working capital changes **   430   644   429   -
Cash flow from operations **   (60)   1,015   331   n.s.

* Detail of adjustment items shown in the business segment information annex to financial statements.
** excluding financial charges

Adjusted net operating income was 367 M$ in the first quarter 2018, an increase of 22% compared to the first quarter 2017. Volume growth allowed the Group to take full advantage of consistently good margins.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was 3,385 M$ in the first quarter 2018, an increase of 22% compared to last year, due to the strong performance from Exploration & Production, taking advantage of higher prices and production growth, from Gas Renewables & Power, and Marketing & Services, which continues to develop in growing markets, and with a decrease in contribution from Refining & Chemicals, in a context of lower refining margins.

> Adjusted net income (Group share)

Adjusted net income was 2,884 M$ in the first quarter 2018, an increase of 13% compared to a year ago. The increase was due to the performance of the segments which increased by a 22%. The net cost of the net debt increased compared to last year, mainly due to the increase in dollar interest rates.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value9.

Total adjustments affecting net income10 were -248 M$ in the first quarter 2018.

The effective tax rate for the Group was 39.9% in the first quarter 2018, compared to 31.3% a year ago, due to the increase in the effective tax rate for Exploration & Production, in line with higher hydrocarbon prices, and the larger contribution of this segment to the Group’s results this quarter.

> Adjusted fully-diluted earnings per share

Adjusted earnings per share in the first quarter 2018 increased by 8% to $1.09, calculated on the basis of a weighted average of 2,568 million fully-diluted shares, from $1.01 in the first quarter 2017.

The number of fully-diluted shares was 2,632 million on March 31, 2018.

Following the February 2018 announcements about shareholder return, the Group proceeded to buy back 9.8 million shares in the first quarter for cancellation. The buyback is comprised of repurchasing all shares issued in the quarter as scrip dividend to eliminate dilution as well as an additional repurchase of shares for 294 M$ to return to shareholders some benefit resulting from higher oil prices.

> Divestments – acquisitions

Asset sales completed in the first quarter 2018 were 2,169 M$, comprised mainly of the sale of the higher-cost Martin Linge field in Norway, an interest in Fort Hills in Canada and the marketing activities of TotalErg in Italy.

Acquisitions completed in the first quarter 2018 were 3,688 M$, comprised mainly of the acquisition of interests in the deep-offshore fields of Iara and Lapa in Brazil, interests in two new 40-year concessions in offshore Abu Dhabi, and the acquisition of 16.3% in the Waha field in Libya, net of the cash attained from the consolidation of Maersk Oil.

> Net cash flow

The Group’s net cash flow11 was 1,231 M$ in the first quarter 2018. The 15% increase in operating cash flow before working capital changes funded net investments, which increased by almost 3.4 B$ essentially linked to significant acquisitions closed in the first quarter 2018 (3.7 B$).

> Return on equity

Return on equity for the twelve months ended March 31, 2018, was 10%, an increase compared to the same period a year ago.

In millions of dollars  

April 1, 2017
March 31, 2018

 

January 1, 2017 to
December 31, 2017

 

April 1, 2016
March 31, 2017

Adjusted net income   11,150   10,762   9,363
Average adjusted shareholders' equity   111,522   106,078   99,784
Return on equity (ROE)   10.0%   10.1%   9.4%

Return on average capital employed was 9.1% for the twelve months ended March 31, 2018, an increase compared to the same period a year ago, despite the dilutive effect of including all the capital employed related to Maersk Oil but results for only the month of March.

In millions of dollars  

April 1, 2017
March 31, 2018

 

January 1, 2017 to
December 31, 2017

 

April 1, 2016
March 31, 2017

Adjusted net operating income   12,428   11,958   10,245
Average capital employed   136,384   127,574   128,282
ROACE   9.1%   9.4%   8.0%

2018 Sensitivities*

    Scenario   Change  

Estimated impact
on adjusted

net operating
income

 

Estimated
impact on
cash flow

Dollar   1.2 $/€   +/- 0.1 $ per €   -/+ 0.1 B$   ~0 B$
Brent   50 $/b   +/- 10 $/b**   +/- 2.3 B$   +/- 2.8 B$
European refining margin indicator (ERMI)   35 $/t   +/- 10 $/t   +/- 0.5 B$   +/- 0.6 B$

* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2018. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals.
** Assumes constant liquids price differentials.

Summary and outlook

Since the start of the second quarter 2018, Brent has traded at around 70 $/b in a context of sustained demand growth and inventory reduction. The environment remains nevertheless volatile with persistent uncertainty around the evolution of global supply.

The Group rigorously maintains its discipline on costs. The Opex target of 5.5 $/boe is maintained for 2018. The cost reduction program is ongoing with an objective of more than $4 billion in 2018. The Group’s organic breakeven point continues to decrease, with a target of 25 $/b this year.

The Group continues to invest in profitable projects and take advantage of a favorable cost environment. An investment level of $15-17 billion (organic and acquisitions net of asset sales) is confirmed for 2018.

Production growth should surpass the 2018 target of 6%, thanks to the start-ups and ramp-ups of new projects, as well as the integration of recently acquired assets, supporting the 2016-22 target of 5% per year on average.

The start-up of cash-accretive projects plus the full contribution of new assets, mainly Maersk Oil, should continue to feed the growth in cash flow for the rest of the year 2018.

Since the start of the second quarter, refining margins are higher at around 30 $/t. Scheduled maintenance has affected refineries utilization rates since mid-March, mainly on the petrochemical side of the Normandy platform and on one of two refining trains at the Antwerp platform.

In line with announcements on the shareholder return policy, the Group will buy back dividend scrip shares issued this year to eliminate any dilution. In addition, the Group will continue to buy back up to $5 billion of shares over the period 2018-20 so that shareholders benefit from the free cash flow. The dividend will be increased by 10% over the next three years to reach 2.72 euros per share in 2020.

-- -- --

To listen to the presentation by Chairman and CEO Patrick Pouyanné and CFO Patrick de La Chevardière today at 13:15 (London time) please log on to total.com or call +44 (0) 330 336 9105 in Europe or +1 323 794 2423 in the United States (code: 9753541). For a replay, please consult the website or call +44 (0) 207 660 0134 in Europe or +1 719 457 0820 in the United States (code: 9753541).

* * * * *

Operating information by segment

> Exploration & Production

Combined liquids and gas

production by region (kboe/d)

  1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Europe and Central Asia   886   764   806   +10%
Africa 673 659 635 +6%
Middle East and North Africa 639 595 534 +20%
Americas 371 356 334 +11%
Asia-Pacific   134   239   259   -48%
Total production   2,703   2,613   2,569   +5%
includes equity affiliates   724   656   645   +12%
                 
Liquids production by region (kb/d)   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Europe and Central Asia 299 265 271 +10%
Africa 503 501 485 +4%
Middle East and North Africa 501 457 392 +28%
Americas 165 137 126 +31%
Asia-Pacific   13   29   29   -56%
Total production   1,481   1,389   1,303   +14%
includes equity affiliates   304   311   264   +15%
                 
Gas production by region (Mcf/d)   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Europe and Central Asia 3,157 2,657 2,891 +9%
Africa 857 980 713 +20%
Middle East and North Africa 761 759 787 -3%
Americas 1,158 1,225 1,171 -1%
Asia-Pacific   731   1,211   1,332   -45%
Total production   6,664   6,832   6,894   -3%
includes equity affiliates   2,257   2,022   2,015   +12%
                 
Liquefied natural gas   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

LNG sales* (Mt)   2.50   2.62   2.99   -16%

* Sales, Group share, excluding trading; 2017 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2017 SEC coefficient.

> Downstream (Refining & Chemicals and Marketing & Services)

Petroleum product sales by region (kb/d)*   1Q18   4Q17*   1Q17*  

1Q18

vs
1Q17

 

Europe**   1,902   2,000   2,135   -11%
Africa 754 639 564 +34%
Americas 760 476 576 +32%
Rest of world   680   727   757   -10%
Total consolidated sales   4,096   3,842   4,033   +2%
Includes bulk sales   570   587   616   -7%
Includes trading   1,725   1,434   1,689   +2%

* 4Q17 and 1Q17 data restated
**Includes share of TotalErg.

Adjustment items to net income (Group share)

In millions of dollars   1Q18   4Q17   1Q17
Special items affecting net income (Group share)   (195)   (2,218)   236
Gain (loss) on asset sales   (101)   188   2,139
Restructuring charges (21) (5) (5)
Impairments (12) (2,060) (1,718)
Other   (61)   (341)   (180)
After-tax inventory effect : FIFO vs. replacement cost   (45)   354   55
Effect of changes in fair value   (8)   13   0
             
Total adjustments affecting net income   (248)   (1,851)   291

Investments - Divestments

In millions of dollars   1Q18   4Q17   1Q17  

1Q18

vs
1Q17

 

Organic investments   2,620   4,442   2,944   -11%
capitalized exploration 111 181 111 -
increase in non-current loans 171 207 158 +8%
repayment of non-current loans   (416)   (348)   (187)   +122%
Acquisitions   3,688   313   547   x6.7
Asset sales   2,169   1,119   2,711   -20%
Other transactions with non-controlling interests   -   (2)   -   n.s.
Net investments   4,139   3,638   780   x5.3

Gearing ratios

In millions of dollars   03/31/2018   12/31/2017   03/31/2017
Current borrowings   14,909   11,096   13,582
Net current financial assets (1,920) (3,148) (3,694)
Net financial assets classified as held for sale - - (2)
Non-current financial debt 40,257 41,340 42,017
Hedging instruments of non-current debt (1,154) (679) (877)
Cash and cash equivalents   (30,092)   (33,185)   (27,526)
Net debt (a)   22,000   15,424   23,500
             
Shareholders’ equity - Group share 121,187 111,556 103,831
Non-controlling interests   2,499   2,481   2,823
Shareholders' equity (b)   123,686   114,037   106,654
             
Net-debt-to-equity ratio = a / b   17.8%   13.5%   22.0%
             
Net-debt-to-capital ratio = a / (a + b)   15.1%   11.9%   18.1%

Return on average capital employed

> Twelve months ended March 31, 2018

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Group
Adjusted net operating income   6,786   539   3,487   1,742 12,428
Capital employed at 3/31/2017* 106,937 5,036 11,130 6,331 128,810
Capital employed at 3/31/2018*   119,035   5,237   13,428   7,409 143,957
ROACE   6.0%   10.5%   28.4%   25.4% 9.1%

> Full-year 2017

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Group
Adjusted net operating income   5,985   485   3,790   1,676 11,958
Capital employed at 12/31/2016* 107,617 4,976 11,618 5,884 127,423
Capital employed at 12/31/2017*   107,921   4,692   11,045   6,929 127,727
ROACE   5.6%   10.0%   33.4%   26.2% 9.4%

> Twelve months ended March 31, 2017

In millions of dollars  

Exploration &
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Group
Adjusted net operating income   4,213   427   4,088   1,571 10,245
Capital employed at 3/31/2016* 104,826 4,669 12,555 5,836 127,754
Capital employed at 3/31/2017*   106,937   5,036   11,130   6,331 128,810
ROACE   4.0%   8.8%   34.5%   25.8% 8.0%

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

This press release presents the results for the first quarter 2018 from the consolidated financial statements of TOTAL S.A. as of March 31, 2018 (unaudited). The audit procedures by the Statutory Auditors are underway. This document does not constitute the Annual Financial Report (Rapport Financier Annuel) within the meaning of article L. 451-1-2 of the French monetary and financial Code (Code monétaire et financier).

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

Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, 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. Certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.

Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Further information on factors, risks and uncertainties that could affect the Company’s financial results or the Group’s activities is provided in the most recent Registration Document, the French language version of which is filed by the Company with the French Autorité des Marchés Financiers and annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).

Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL. Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods. These adjustment items include:

(i) Special items
Due to their unusual nature or particular significance, certain transactions qualified as "special items" are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.
(ii) Inventory valuation effect
The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.
In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differentials between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects, for some transactions, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.
Furthermore, TOTAL, in its trading activities, enters into storage contracts, whose future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.

The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value.

Euro amounts presented herein represent dollar amounts converted at the average euro-dollar (€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this press release, such as “potential reserves” or “resources”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File N° 1-10888, available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s website sec.gov.

Total Financial Statements
_______________

First quarter 2018 consolidated accounts, IFRS

CONSOLIDATED STATEMENT OF INCOME

TOTAL

(unaudited)

(M$) (a)  

1st quarter

2018

 

4th quarter

2017

 

1st quarter

2017

Sales   49,611   47,351   41,183
Excise taxes (6,319) (5,909) (5,090)
Revenues from sales 43,292 41,442 36,093
Purchases, net of inventory variation (29,446) (27,659) (23,987)
Other operating expenses (6,937) (6,586) (6,166)
Exploration costs (204) (287) (197)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,916) (5,691) (4,579)
Other income 523 512 2,325
Other expense (190) (570) (291)
Financial interest on debt (390) (352) (331)
Financial income and expense from cash & cash equivalents (41) (45) (11)
Cost of net debt (431) (397) (342)
Other financial income 240 240 228
Other financial expense (170) (159) (160)
Net income (loss) from equity affiliates 484 657 548
Income taxes   (1,596)   (772)   (693)
Consolidated net income   2,649   730   2,779
Group share 2,636 1,021 2,849
Non-controlling interests   13   (291)   (70)
Earnings per share ($)   1.00   0.37   1.14
Fully-diluted earnings per share ($)   0.99   0.37   1.13
(a) Except for per share amounts.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

(unaudited)

(M$)  

1st quarter

2018

 

4th quarter

2017

 

1st quarter

2017

Consolidated net income   2,649   730   2,779
Other comprehensive income      
 
Actuarial gains and losses 25 794 126
Change in fair value of investments in equity instruments 7 - -
Tax effect 2 (373) (41)
Currency translation adjustment generated by the parent company   2,131   1,432   940
Items not potentially reclassifiable to profit and loss   2,165   1,853   1,025
Currency translation adjustment (362) (585) (200)
Available for sale financial assets - 3 (1)
Cash flow hedge 178 174 113
Variation of foreign currency basis spread (29) - -
Share of other comprehensive income of equity affiliates, net amount (168) (5) 331
Other - - 3
Tax effect   (48)   (49)   (39)
Items potentially reclassifiable to profit and loss   (429)   (462)   207
Total other comprehensive income (net amount)   1,736   1,391   1,232
             
Comprehensive income   4,385   2,121   4,011
Group share 4,356 2,385 4,074
Non-controlling interests 29 (264) (63)

CONSOLIDATED BALANCE SHEET

TOTAL

(M$)  

March 31,
2018

(unaudited)

 

December 31,
2017

 

 

March 31,
2017

(unaudited)

ASSETS      
Non-current assets
Intangible assets, net 24,502 14,587 14,048
Property, plant and equipment, net 116,181 109,397 111,100
Equity affiliates : investments and loans 22,332 22,103 21,638
Other investments 1,710 1,727 1,381
Non-current financial assets 1,154 679 877
Deferred income taxes 5,519 5,206 4,766
Other non-current assets   3,633   3,984   4,114
Total non-current assets   175,031   157,683   157,924
Current assets
Inventories, net 17,006 16,520 14,985
Accounts receivable, net 17,774 14,893 12,235
Other current assets 14,824 14,210 13,955
Current financial assets 2,289 3,393 3,971
Cash and cash equivalents 30,092 33,185 27,526
Assets classified as held for sale   -   2,747   413
Total current assets   81,985   84,948   73,085
Total assets 257,016 242,631 231,009
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 8,207 7,882 7,667
Paid-in surplus and retained earnings 120,559 112,040 109,583
Currency translation adjustment (6,413) (7,908) (12,819)
Treasury shares   (1,166)   (458)   (600)
Total shareholders' equity - Group share   121,187   111,556   103,831
Non-controlling interests   2,499   2,481   2,823
Total shareholders' equity   123,686   114,037   106,654
Non-current liabilities
Deferred income taxes 11,943 10,828 10,936
Employee benefits 3,796 3,735 3,711
Provisions and other non-current liabilities 19,268 15,986 16,714
Non-current financial debt   40,257   41,340   42,017
Total non-current liabilities   75,264   71,889   73,378
Current liabilities
Accounts payable 24,836 26,479 21,633
Other creditors and accrued liabilities 17,952 17,779 15,151
Current borrowings 14,909 11,096 13,582
Other current financial liabilities 369 245 277
Liabilities directly associated with the assets classified as held for sale   -   1,106   334
Total current liabilities   58,066   56,705   50,977
Total liabilities & shareholders' equity 257,016 242,631 231,009

CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

(unaudited)

(M$)  

1st quarter

2018

 

4th quarter

2017

 

1st quarter

2017

CASH FLOW FROM OPERATING ACTIVITIES      
Consolidated net income 2,649 730 2,779
Depreciation, depletion, amortization and impairment 3,046 5,857 4,660
Non-current liabilities, valuation allowances and deferred taxes 114 (44) (197)
(Gains) losses on disposals of assets (125) (71) (2,232)
Undistributed affiliates' equity earnings (259) (54) (295)
(Increase) decrease in working capital (3,222) 2,206 (54)
Other changes, net   (122)   (9)   40
Cash flow from operating activities 2,081 8,615 4,701
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (5,665) (4,662) (2,678)
Acquisitions of subsidiaries, net of cash acquired (726) (3) (319)
Investments in equity affiliates and other securities (162) (231) (523)
Increase in non-current loans   (171)   (207)   (158)
Total expenditures (6,724) (5,103) (3,678)
Proceeds from disposals of intangible assets and property, plant and equipment 1,978 901 6
Proceeds from disposals of subsidiaries, net of cash sold 3 213 2,696
Proceeds from disposals of non-current investments 188 5 9
Repayment of non-current loans   416   348   187
Total divestments   2,585   1,467   2,898
Cash flow used in investing activities (4,139) (3,636) (780)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 9 33 15
- Treasury shares (558) - -
Dividends paid:
- Parent company shareholders (1,516) (643) (538)
- Non-controlling interests (12) (54) (15)
Issuance of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (150) (57) (129)
Other transactions with non-controlling interests - (2) -
Net issuance (repayment) of non-current debt (2,480) 1,531 56
Increase (decrease) in current borrowings 1,707 (878) (1,413)
Increase (decrease) in current financial assets and liabilities 1,155 (916) 658
Cash flow used in financing activities   (1,845)   (986)   (1,366)
Net increase (decrease) in cash and cash equivalents (3,903) 3,993 2,555
Effect of exchange rates 810 609 374
Cash and cash equivalents at the beginning of the period   33,185   28,583   24,597
Cash and cash equivalents at the end of the period   30,092   33,185   27,526

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

TOTAL

 

Common shares issued

 

Paid-in
surplus and
retained
earnings

 

Currency
translation
adjustment

  Treasury shares  

Shareholders'
equity -
Group share

 

Non-
controlling
interests

 

Total
shareholders'
equity

(M$)   Number   Amount       Number   Amount      
As of January 1, 2017   2,430,365,862   7,604   105,547   (13,871)   (10,587,822)   (600)   98,680   2,894   101,574
Net income of the first quarter 2017 -   - 2,849 - -   - 2,849 (70) 2,779
Other comprehensive Income - - 173 1,052 - - 1,225 7 1,232
Comprehensive Income - - 3,022 1,052 - - 4,074 (63) 4,011
Dividend - - - - - - - (15) (15)
Issuance of common shares 23,571,852 63 987 - - - 1,050 - 1,050
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - - - - - - - -
Share-based payments - - 44 - - - 44 - 44
Share cancellation - - - - - - - - -
Other operations with non-controlling interests - - (6) - - - (6) 6 -
Other items - - 58 - - - 58 1 59
As of march 31, 2017   2,453,937,714   7,667   109,583   (12,819)   (10,587,822)   (600)   103,831   2,823   106,654
Net income from April 1 to December 31, 2017 - - 5,782 - - - 5,782 (262) 5,520
Other comprehensive Income - - 545 4,911 - - 5,456 37 5,493
Comprehensive Income - - 6,327 4,911 - - 11,238 (225) 11,013
Dividend - - (6,992) - - - (6,992) (126) (7,118)
Issuance of common shares 75,051,902 215 3,444 - - - 3,659 - 3,659
Purchase of treasury shares - - - - - - - - -
Sale of treasury shares (1) - - (142) - 2,211,066 142 - - -
Share-based payments - - 107 - - - 107 - 107
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (233) - - - (233) - (233)
Other operations with non-controlling interests - - (2) - - - (2) (2) (4)
Other items - - (52) - - - (52) 11 (41)
As of December 31, 2017   2,528,989,616   7,882   112,040   (7,908)   (8,376,756)   (458)   111,556   2,481   114,037
Net income of the first quarter 2018 - - 2,636 - - - 2,636 13 2,649
Other comprehensive Income - - 225 1,495 - - 1,720 16 1,736
Comprehensive Income - - 2,861 1,495 - - 4,356 29 4,385
Dividend - - - - - - - (12) (12)
Issuance of common shares 104,830,551 325 5,675 - - - 6,000 - 6,000
Purchase of treasury shares - - - - (12,471,369) (708) (708) - (708)
Sale of treasury shares (1) - - - - - - - - -
Share-based payments - - 129 - - - 129 - 129
Share cancellation - - - - - - - - -
Issuance of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (81) - - - (81) - (81)
Other operations with non-controlling interests - - (4) - - - (4) 4 -
Other items - - (61) - - - (61) (3) (64)
As of march 31, 2018   2,633,820,167   8,207   120,559   (6,413)   (20,848,125)   (1,166)   121,187   2,499   123,686

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

1st quarter 2018

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales   2,467   4,091   21,739   21,308   6   -   49,611
Intersegment sales 6,924 468 7,956 198 97 (15,643) -
Excise taxes   -   -   (847)   (5,472)   -   -   (6,319)
Revenues from sales 9,391 4,559 28,848 16,034 103 (15,643) 43,292
Operating expenses (4,045) (4,526) (27,879) (15,503) (277) 15,643 (36,587)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,350)   (70)   (313)   (174)   (9)   -   (2,916)
Operating income 2,996 (37) 656 357 (183) - 3,789
Net income (loss) from equity affiliates and other items 641 34 128 86 (2) - 887
Tax on net operating income   (1,550)   (15)   (104)   (103)   96   -   (1,676)
Net operating income 2,087 (18) 680 340 (89) - 3,000
Net cost of net debt (351)
Non-controlling interests                           (13)
Net income - group share 2,636
                             
1st quarter 2018 (adjustments) (a)

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales - (11) - - - - (11)
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - (11) - - - - (11)
Operating expenses (53) (92) (38) (29) (9) - (221)
Depreciation, depletion and impairment of tangible assets and mineral interests   -   (22)   -   -   -   -   (22)
Operating income (b) (53) (125) (38) (29) (9) - (254)
Net income (loss) from equity affiliates and other items (101) (11) (21) (1) - - (134)
Tax on net operating income   58   3   19   3   -   -   83
Net operating income (b) (96) (133) (40) (27) (9) - (305)
Net cost of net debt (10)
Non-controlling interests                           67
Net income - group share (248)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

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

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales 2,467 4,102 21,739 21,308 6 - 49,622
Intersegment sales 6,924 468 7,956 198 97 (15,643) -
Excise taxes   -   -   (847)   (5,472)   -   -   (6,319)
Revenues from sales 9,391 4,570 28,848 16,034 103 (15,643) 43,303
Operating expenses (3,992) (4,434) (27,841) (15,474) (268) 15,643 (36,366)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,350)   (48)   (313)   (174)   (9)   -   (2,894)
Adjusted operating income 3,049 88 694 386 (174) - 4,043
Net income (loss) from equity affiliates and other items 742 45 149 87 (2) - 1,021
Tax on net operating income   (1,608)   (18)   (123)   (106)   96   -   (1,759)
Adjusted net operating income 2,183 115 720 367 (80) - 3,305
Net cost of net debt (341)
Non-controlling interests                           (80)
Adjusted net income - group share 2,884
 
 
                             
1st quarter 2018

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

 

Corporate

  Intercompany   Total
Total expenditures 5,871 249 332 228 44 - 6,724
Total divestments 2,251 78 25 228 3 - 2,585
Cash flow from operating activities (*)   3,569   (179)   (1,109)   (60)   (140)   -   2,081
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 comparative information have been restated.

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

4th quarter 2017

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales   2,185   4,083   20,661   20,419   3   -   47,351
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,394 27,723 15,545 93 (15,004) 41,442
Operating expenses (3,806) (4,385) (26,191) (14,849) (305) 15,004 (34,532)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,890)   (319)   (284)   (185)   (13)   -   (5,691)
Operating income (5) (310) 1,248 511 (225) - 1,219
Net income (loss) from equity affiliates and other items 348 51 199 76 6 - 680
Tax on net operating income   (537)   (86)   (67)   (157)   55   -   (792)
Net operating income (194) (345) 1,380 430 (164) - 1,107
Net cost of net debt (377)
Non-controlling interests                           291
Net income - group share 1,021
                             
4th quarter 2017 (adjustments) (a)

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

 

Corporate

  Intercompany   Total
Non-Group sales - 21 - - - - 21
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - 21 - - - - 21
Operating expenses - (243) 355 33 - - 145
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,382)   (266)   (3)   (10)   -   -   (2,661)
Operating income (b) (2,382) (488) 352 23 - - (2,495)
Net income (loss) from equity affiliates and other items (112) (22) 9 (19) - - (144)
Tax on net operating income   495   (67)   133   (10)   (136)   -   415
Net operating income (b) (1,999) (577) 494 (6) (136) - (2,224)
Net cost of net debt (8)
Non-controlling interests                           381
Net income - group share (1,851)
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - - 423 31 -
On net operating income - - 354 11 -
                             
4th quarter 2017 (adjusted)

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

 

Corporate

  Intercompany   Total
Non-Group sales 2,185 4,062 20,661 20,419 3 - 47,330
Intersegment sales 6,506 311 7,890 207 90 (15,004) -
Excise taxes   -   -   (828)   (5,081)   -   -   (5,909)
Revenues from sales 8,691 4,373 27,723 15,545 93 (15,004) 41,421
Operating expenses (3,806) (4,142) (26,546) (14,882) (305) 15,004 (34,677)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,508)   (53)   (281)   (175)   (13)   -   (3,030)
Adjusted operating income 2,377 178 896 488 (225) - 3,714
Net income (loss) from equity affiliates and other items 460 73 190 95 6 - 824
Tax on net operating income   (1,032)   (19)   (200)   (147)   191   -   (1,207)
Adjusted net operating income 1,805 232 886 436 (28) - 3,331
Net cost of net debt (369)
Non-controlling interests                           (90)
Adjusted net income - group share 2,872
 
 
                             
4th quarter 2017

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Total expenditures 3,490 306 710 570 27 - 5,103
Total divestments 1,334 46 36 45 6 - 1,467
Cash flow from operating activities (*)   4,174   667   3,030   1,015   (271)   -   8,615
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 comparative information have been restated.

BUSINESS SEGMENT INFORMATION

TOTAL

(unaudited)

1st quarter 2017

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales   2,103   3,197   18,574   17,298   11   -   41,183
Intersegment sales 5,548 309 6,346 274 105 (12,582) -
Excise taxes   -   -   (701)   (4,389)   -   -   (5,090)
Revenues from sales 7,651 3,506 24,219 13,183 116 (12,582) 36,093
Operating expenses (3,687) (3,469) (22,878) (12,665) (233) 12,582 (30,350)
Depreciation, depletion and impairment of tangible assets and mineral interests   (4,068)   (72)   (287)   (144)   (8)   -   (4,579)
Operating income (104) (35) 1,054 374 (125) - 1,164
Net income (loss) from equity affiliates and other items 190 (45) 2,453 30 22 - 2,650
Tax on net operating income   (439)   (37)   (356)   (108)   171   -   (769)
Net operating income (353) (117) 3,151 296 68 - 3,045
Net cost of net debt (266)
Non-controlling interests                           70
Net income - group share 2,849
                             
1st quarter 2017 (adjustments) (a)

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

 

Corporate

  Intercompany   Total
Non-Group sales - - - - - - -
Intersegment sales - - - - - - -
Excise taxes   -   -   -   -   -   -   -
Revenues from sales - - - - - - -
Operating expenses - (89) 57 (15) - - (47)
Depreciation, depletion and impairment of tangible assets and mineral interests   (1,854)   (26)   (50)   -   -   -   (1,930)
Operating income (b) (1,854) (115) 7 (15) - - (1,977)
Net income (loss) from equity affiliates and other items (210) (63) 2,209 5 - - 1,941
Tax on net operating income   329   -   (88)   5   -   -   246
Net operating income (b) (1,735) (178) 2,128 (5) - - 210
Net cost of net debt (7)
Non-controlling interests                           88
Net income - group share 291
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

 

(b) Of which inventory valuation effect

On operating income - - 83 (15) -
On net operating income - - 58 (5) -
                             
1st quarter 2017 (adjusted)

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

  Corporate   Intercompany   Total
Non-Group sales 2,103 3,197 18,574 17,298 11 - 41,183
Intersegment sales 5,548 309 6,346 274 105 (12,582) -
Excise taxes   -   -   (701)   (4,389)   -   -   (5,090)
Revenues from sales 7,651 3,506 24,219 13,183 116 (12,582) 36,093
Operating expenses (3,687) (3,380) (22,935) (12,650) (233) 12,582 (30,303)
Depreciation, depletion and impairment of tangible assets and mineral interests   (2,214)   (46)   (237)   (144)   (8)   -   (2,649)
Adjusted operating income 1,750 80 1,047 389 (125) - 3,141
Net income (loss) from equity affiliates and other items 400 18 244 25 22 - 709
Tax on net operating income   (768)   (37)   (268)   (113)   171   -   (1,015)
Adjusted net operating income 1,382 61 1,023 301 68 - 2,835
Net cost of net debt (259)
Non-controlling interests                           (18)
Adjusted net income - group share 2,558
 
 
                             
1st quarter 2017

(M$)

 

Exploration
&
Production

 

Gas,
Renewables
& Power

 

Refining &
Chemicals

 

Marketing &
Services

 

Corporate

  Intercompany   Total
Total expenditures 2,636 315 266 439 22 - 3,678
Total divestments 113 4 2,740 36 5 - 2,898
Cash flow from operating activities (*)   2,801   140   1,762   331   (333)   -   4,701
 
(*) As of January 1st, 2018, for a better reflection of the operating performance of the segments, financial expenses were all transferred to the Corporate segment. 2017 comparative information have been restated.

Reconciliation of the information by business segment with consolidated financial statements

TOTAL

(unaudited)

1st quarter 2018

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of
income

Sales   49,622   (11)   49,611
Excise taxes (6,319) - (6,319)
Revenues from sales 43,303 (11) 43,292
Purchases, net of inventory variation (29,360) (86) (29,446)
Other operating expenses (6,802) (135) (6,937)
Exploration costs (204) - (204)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,894) (22) (2,916)
Other income 374 149 523
Other expense (60) (130) (190)
Financial interest on debt (380) (10) (390)
Financial income and expense from cash & cash equivalents (41) - (41)
Cost of net debt (421) (10) (431)
Other financial income 240 - 240
Other financial expense (170) - (170)
Net income (loss) from equity affiliates 637 (153) 484
Income taxes   (1,679)   83   (1,596)
Consolidated net income 2,964 (315) 2,649
Group share 2,884 (248) 2,636
Non-controlling interests 80 (67) 13
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.
 
 
1st quarter 2017

(M$)

  Adjusted   Adjustments (a)  

Consolidated
statement of
income

Sales 41,183 - 41,183
Excise taxes (5,090) - (5,090)
Revenues from sales 36,093 - 36,093
Purchases, net of inventory variation (23,990) 3 (23,987)
Other operating expenses (6,116) (50) (6,166)
Exploration costs (197) - (197)
Depreciation, depletion and impairment of tangible assets and mineral interests (2,649) (1,930) (4,579)
Other income 108 2,217 2,325
Other expense (58) (233) (291)
Financial interest on debt (324) (7) (331)
Financial income and expense from cash & cash equivalents (11) - (11)
Cost of net debt (335) (7) (342)
Other financial income 228 - 228
Other financial expense (160) - (160)
Net income (loss) from equity affiliates 591 (43) 548
Income taxes   (939)   246   (693)
Consolidated net income 2,576 203 2,779
Group share 2,558 291 2,849
Non-controlling interests 18 (88) (70)
 
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

1 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value; adjustment items are on page 10.
2 Tax on adjusted net operating income / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income).
3 In accordance with IFRS norms, adjusted fully-diluted earnings per share is calculated from the adjusted net income less the perpetual subordinated bond
4 Including acquisitions and increases in non-current loans.
5 Including divestments and reimbursements of non-current loans.
6 Net investments = investments - divestments - repayment of non-current loans - other operations with non-controlling interests.
7 Organic investments = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
8 Operating cash flow before working capital changes, previously referred to as adjusted cash flow from operations, is defined as cash flow from operating activities before changes in working capital at replacement cost. The inventory valuation effect is explained on page 13. 9 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges
10 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.
11 Details shown on page 10.
12 Details shown on page 10 and in the annex to the financial statements.
13 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).

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

Source: Total