Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The financial information on pages 1-17 of this exhibit concerning TOTAL SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TOTAL” or the “Group”) with respect to the third quarter 2020 and nine months ended September 30, 2020 has been derived from TOTAL’s unaudited consolidated balance sheets as of September 30, 2020, unaudited statements of income, comprehensive income, cash flow and business segment information for the third quarter 2020 and nine months ended September 30, 2020 and unaudited consolidated statements of changes in shareholders’ equity for the nine months ended September 30, 2020 presented on pages 18-32 and 37-44 of this exhibit.
The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TOTAL’s audited consolidated financial statements and related notes, provided in TOTAL’s Annual Report on Form 20-F for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2020, as amended on April 14, 2020.
A. | KEY FIGURES |
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | in millions of dollars (except earnings per share and number of shares) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
|
|
|
| |||||||||||
33,142 | 25,730 | 48,589 | -32% | Non-Group sales | 102,742 | 151,036 | -32% | |||||||
1,459 | 821 | 3,673 | -60% | Adjusted net operating income(a) from business segments | 4,580 | 10,675 | -57% | |||||||
801 | (209) | 1,734 | -54% | • Exploration & Production | 1,295 | 5,478 | -76% | |||||||
285 | 326 | 574 | -50% | • Integrated Gas, Renewables & Power | 1,524 | 1,595 | -4% | |||||||
(88) | 575 | 952 | ns | • Refining & Chemicals | 869 | 2,423 | -64% | |||||||
461 | 129 | 413 | +12% | • Marketing & Services | 892 | 1,179 | -24% | |||||||
94 | (447) | 1,381 | -93% | Net income (loss) from equity affiliates | 379 | 2,904 | -87% | |||||||
0.04 | (3.27) | 1.04 | -96% | Fully-diluted earnings per share ($) | (3.22) | 3.20 | ns | |||||||
2,637 | 2,598 | 2,614 | +1% | Fully-diluted weighted-average shares (millions) | 2,612 | 2,621 | - | |||||||
202 | (8,369) | 2,800 | -93% | Net income (Group share) | (8,133) | 8,667 | ns | |||||||
2,184 | 2,201 | 3,296 | -34% | Organic investments(b) | 6,908 | 9,107 | -24% | |||||||
(272) | 721 | 3,422 | ns | Net acquisitions(c) | 1,551 | 4,131 | -62% | |||||||
1,912 | 2,922 | 6,718 | -72% | Net investments(d) | 8,459 | 13,238 | -36% | |||||||
4,351 | 3,479 | 8,206 | -47% | Cash flow from operations | 9,129 | 18,086 | -50% | |||||||
Of which: | ||||||||||||||
980 | 431 | 1,523 | -36% | • (increase) decrease in working capital(e) | 527 | (1,764) | ns | |||||||
(491) | (499) | (532) | ns | • financial charges | (1,502) | (1,536) | ns |
From 2019, data take into account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.
(a) | Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. See pages 3 et seq. “Analysis of business segment results” below for further details. |
(b) | “Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests. |
(c) | “Net acquisitions” = acquisitions—assets sales—other transactions with non-controlling interests (see page 15). |
(d) | “Net investments” = organic investments + net acquisitions (see page 15). |
(e) | See also “C. Group results – Cash Flow” on page 10 of this exhibit and the reconciliation table for different cash flow figures set forth under “Cash Flow” on page 16 of this exhibit. |
1
Environment* — liquids and gas price realizations, refining margins
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 |
| 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
42.9 | 29.6 | 62.0 | -31% | Brent ($/b) | 41.1 | 64.6 | -36% | ||||||||||||||||||||||||||||
2.1 | 1.8 | 2.3 | -9% | Henry Hub ($/Mbtu) | 1.9 | 2.6 | -25% | ||||||||||||||||||||||||||||
2.9 | 1.7 | 3.9 | -26% | NBP ($/Mbtu) | 2.5 | 4.8 | -47% | ||||||||||||||||||||||||||||
3.6 | 2.1 | 4.7 | -23% | JKM ($/Mbtu) | 3.1 | 5.4 | -42% | ||||||||||||||||||||||||||||
39.9 | 23.4 | 58.0 | -31% | Average price of liquids ($/b) Consolidated subsidiaries | 35.6 | 60.0 | -41% | ||||||||||||||||||||||||||||
2.52 | 2.61 | 3.48 | -27% | Average price of gas ($/Mbtu) Consolidated subsidiaries | 2.84 | 3.93 | -28% | ||||||||||||||||||||||||||||
3.57 | 4.40 | 5.93 | -40% | Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates | 4.81 | 6.25 | -23% | ||||||||||||||||||||||||||||
-2.7 | 14.3 | 47.4 | ns | Variable cost margin –Refining Europe, VCM ($/t) | 13.6 | 36.2 | -62% |
* The indicators are shown on page 17.
The average LNG sales price fell by 19% in the third quarter 2020 compared to the previous quarter, due to the delayed impact of lower oil prices in the first half 2020 on long-term LNG contracts.
Production*
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 |
| 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
2,715 | 2,846 | 3,040 | -11 | % | Hydrocarbon production (kboe/d) | 2,882 | 2,981 | -3 | % | ||||||||||||||||||||||||||
1,196 | 1,315 | 1,441 | -17 | % | ● Oil (including bitumen) (kb/d) | 1,319 | 1,424 | -7 | % | ||||||||||||||||||||||||||
1,519 | 1,531 | 1,599 | -5 | % | ● Gas (including condensates and associated NGL) (kboe/d) | 1,563 | 1,557 | - | |||||||||||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 |
| 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
2,715 | 2,846 | 3,040 | -11 | % | Hydrocarbon production (kboe/d) | 2,882 | 2,981 | -3 | % | ||||||||||||||||||||||||||
1,437 | 1,553 | 1,720 | -16 | % | ● Liquids (kb/d) | 1,563 | 1,658 | -6 | % | ||||||||||||||||||||||||||
6,973 | 7,045 | 7,200 | -3 | % | ● Gas (Mcf/d)** | 7,193 | 7,225 | - |
* Group production = production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).
** 3Q19 and 9M19 data restated.
Hydrocarbon production was 2,715 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2020, a decrease of 11% year-on-year, comprised of:
● | -7% due to compliance with OPEC+ quotas, notably in Nigeria, the United Arab Emirates, Angola, Kazakhstan and Iraq, as well as voluntary reductions in Canada and disruptions in Libya. |
● | -1% due to portfolio effect, notably linked to the sale of Block CA1 in Brunei and the sale of assets in the United Kingdom. |
● | +3% due to the start-up and ramp-up of new projects, notably Culzean in the United Kingdom, Johan Sverdrup in Norway, Iara in Brazil and Tempa Rossa in Italy. |
● | -3% due to the natural decline of fields. |
● | -3% due to maintenance. |
Hydrocarbon production was 2,715 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2020, a decrease of 5% compared to the previous quarter, comprised of:
● | -3% due to reinforcement of OPEC+ quotas, notably in Nigeria. |
● | -1% due to portfolio effect, notably linked to the sale of assets in the United Kingdom. |
● | +1% due to the ramp-up of recently started projects, notably Ichthys in Australia, Tempa Rossa in Italy and Iara in Brazil. |
● | -2% due to the natural decline of fields and maintenance. |
2
B. | ANALYSIS OF BUSINESS SEGMENT RESULTS |
The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.
In accordance with IAS 2, the Group values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) 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 differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.
The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which 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 recorded at their fair value based on forward prices. In addition, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Group’s internal economic performance. Furthermore, TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.
The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages 26-32 of this exhibit.
The Group measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.
3
B.1. Integrated Gas, Renewables & Power segment (iGRP)
Production and sales of Liquefied natural gas (LNG) and electricity
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | Hydrocarbon production for LNG | 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
518 | 520 | 539 | -4% | iGRP (kboe/d) | 530 | 539 | -2% | ||||||||||||||||||||||||||||
70 | 66 | 73 | -5% | ● Liquids (kb/d) | 70 | 71 | -2% | ||||||||||||||||||||||||||||
2,445 | 2,471 | 2,546 | -4% | ● Gas (Mcf/d)* | 2,509 | 2,562 | -2% | ||||||||||||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | Liquefied Natural Gas in Mt | 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
8.1 | 10.4 | 7.4 | +9% | Overall LNG sales | 28.3 | 23.7 | +19% | ||||||||||||||||||||||||||||
4.3 | 4.3 | 4.2 | +3% | ● including sales from equity production** | 13.3 | 12.0 | +11% | ||||||||||||||||||||||||||||
6.6 | 8.7 | 5.5 | +20% | ● including sales by TOTAL from equity production and third party purchases | 23.2 | 18.3 | +27% |
* 3Q19 and 9M19 data restated.
** The Group’s equity production may be sold by TOTAL or by joint ventures.
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | Renewables & Electricity | 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
5.1 | 5.1 | 2.7 | +85% | Gross renewables installed capacity (GW)* | 5.1 | 2.7 | +85% | ||||||||||||||||||||||||||||
14.2 | Gross renewables installed or in development capacity with PPA (GW)* | 14.2 | |||||||||||||||||||||||||||||||||
4.1 | 2.9 | 2.9 | +41% | Net power production (TWh)** | 9.9 | 7.9 | +25% | ||||||||||||||||||||||||||||
1.0 | 1.1 | 0.5 | x2.1 | ● including power production from renewables | 2.8 | 1.4 | x2 | ||||||||||||||||||||||||||||
4.4 | 4.2 | 4.1 | +7% | Clients power – BtB and BtC (Million)* | 4.4 | 4.1 | +7% | ||||||||||||||||||||||||||||
1.7 | 1.7 | 1.6 | +4% | Clients gas – BtB and BtC (Million)* | 1.7 | 1.6 | +7% | ||||||||||||||||||||||||||||
10.2 | 9.4 | 9.9 | +3% | Sales power – BtB and BtC (TWh) | 33.8 | 33.2 | +2% | ||||||||||||||||||||||||||||
13.5 | 17.3 | 13.5 | - | Sales gas – BtB and BtC (TWh) | 64.4 | 65.5 | -2% |
* Capacity at end of period.
** Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.
Hydrocarbon production for LNG was stable compared to the previous quarter and down 4% compared to last year.
Total LNG sales:
● | increased by 9% in the third quarter 2020 compared to last year, notably due to an increase in trading activities. |
● | increased by 19% for the first nine months 2020 compared to the same period last year for the same reason and thanks to the ramp-up of Yamal LNG, Ichthys LNG and the start-up of the first two Cameron LNG trains in the US. |
Gross installed renewable power generation capacity was 5.1 GW at the end of the third quarter, a strong 85% increase year-on-year, notably thanks to the acquisition in India of 50% of a portfolio of more than 2 GW from the Adani Group.
The Group continues to implement its strategy to integrate along the gas and electricity chain in Europe and has seen the number of its power and gas customers grow compared to last year by 7% and 4%, respectively, and for the first nine months 2020 by 7%.
Net electricity production was 4.1 TWh in the third quarter, up 41% year-on-year, notably due to higher demand on the Group’s CCGTs and the doubling of renewable electricity production.
Electricity sales increased by 2% in the first nine months 2020 compared to the same period last year, while gas sales decreased by 2% in the same comparison, impacted by lower demand linked to the lockdown in Europe.
4
Results
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | in millions of dollars | 9M20 | 9M19 | 9M20 vs 9M19 | ||||||||||||||||||||||||||||
1,995 | 3,313 | 3,667 | -46% | Non-Group sales | 10,398 | 13,875 | -25% | ||||||||||||||||||||||||||||
253 | (1,074) | 321 | -21% | Operating income | (463) | 858 | ns | ||||||||||||||||||||||||||||
225 | 21 | 898 | -75% | Net income (loss) from equity affiliates and other items | 645 | 1,939 | -67% | ||||||||||||||||||||||||||||
(266) | 322 | (222) | ns | Tax on net operating income | 64 | (845) | ns | ||||||||||||||||||||||||||||
212 | (731) | 997 | -79% | Net operating income | 246 | 1,952 | -87% | ||||||||||||||||||||||||||||
73 | 1,057 | (423) | ns | Adjustments affecting net operating income | 1,278 | (357) | ns | ||||||||||||||||||||||||||||
285 | 326 | 574 | -50% | Adjusted net operating income* | 1,524 | 1,595 | -4% | ||||||||||||||||||||||||||||
99 | (69) | 206 | -52% | • including income from equity affiliates | 278 | 656 | -58% | ||||||||||||||||||||||||||||
450 | 618 | 640 | -30% | Organic investments | 1,714 | 1,575 | +9% | ||||||||||||||||||||||||||||
36 | 433 | 3,375 | -99% | Net acquisitions | 1,606 | 3,934 | -59% | ||||||||||||||||||||||||||||
486 | 1,051 | 4,015 | -88% | Net investments | 3,320 | 5,509 | -40% |
*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.
Adjusted net operating income for the iGRP segment was:
● | $285 million in the third quarter 2020, a decrease of 50% compared to $574 million in the third quarter 2019, due to the drop in LNG prices. |
● | $1,524 million in the first nine months 2020, a decrease of 4% compared to $1,595 million in the first nine months 2019, for the same reason. |
Adjusted net operating income for the Integrated Gas, Renewables & Power segment excludes special items. In the third quarter 2020, the exclusion of special items had a positive impact of $73 million on the segment’s adjusted net operating income, compared to a negative impact of $423 million in the third quarter 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $1,278 million on the segment’s adjusted net operating income, compared to a negative impact of $357 million in the first nine months 2019.
In the third quarter 2020, the segment’s operating cash flow excluding (i) the change in working capital at replacement cost1, (ii) financial charges, except those related to leases and (iii) the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates was $695 million, a decrease of 5% compared to $732 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding (i) the change in working capital at replacement cost, (ii) financial charges, except those related to leases and (iii) the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates was $2,346 million, an increase of 14% compared to $2,052 million in the first nine months 2019, and in line with the 19% increase in LNG sales. The data for the second quarter 2020, third quarter 2019 and first nine months 2019 are restated.
In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $654 million, an increase of 63% compared to $401 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,554 million, a decrease of 20% compared to $1,934 million in the first nine months 2019.
1 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.
5
B.2. Exploration & Production segment
Production
3Q20 | 2Q20 | 3Q19 | 3Q20 | Hydrocarbon production | 9M20 | 9M19 | 9M20 | |||||||
2,197 | 2,326 | 2,501 | -12% | EP (kboe/d) | 2,352 | 2,442 | -4% | |||||||
1,367 | 1,487 | 1,647 | -17% | ● Liquids (kb/d) | 1,493 | 1,587 | -6% | |||||||
4,528 | 4,574 | 4,654 | -3% | ● Gas (Mcf/d) | 4,684 | 4,663 | - |
Results
3Q20 | 2Q20 | 3Q19 | 2Q20 vs 2Q19 | in millions of dollars (except effective tax rate) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
| ||||||||||||||
1,142 | 992 | 1,631 | -30% | Non-Group sales | 3,716 | 5,698 | -35% | |||||||
768 | (7,983) | 2,257 | -66% | Operating income | (6,356) | 8,176 | ns | |||||||
251 | 17 | 77 | x3 | Net income (loss) from equity affiliates and other items | 691 | 444 | +56% | |||||||
32.9% | 56.6% | 39.7% | Effective tax rate* | 39.7% | 42.8% | |||||||||
(243) | 398 | (1,094) | ns | Tax on net operating income | (299) | (3,679) | ns | |||||||
776 | (7,568) | 1,240 | -37% | Net operating income | (5,964) | 4,941 | ns | |||||||
25 | 7,359 | 494 | -95% | Adjustments affecting net operating income | 7,259 | 537 | x14 | |||||||
801 | (209) | 1,734 | -54% | Adjusted net operating income** | 1,295 | 5,478 | -76% | |||||||
268 | 48 | 297 | -10% | • including income from equity affiliates | 706 | 749 | -6% | |||||||
1,266 | 1,112 | 2,064 | -39% | Organic investments | 3,950 | 6,017 | -34% | |||||||
(309) | 311 | (3) | ns | Net acquisitions | (4) | 239 | ns | |||||||
957 | 1,423 | 2,061 | -54% | Net investments | 3,946 | 6,256 | -37% |
* | “Effective tax rate” = 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). |
** | Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit. |
Adjusted net operating income for the Exploration & Production segment was:
● | $801 million in the third quarter 2020, a decrease of 54% compared to $1,734 million in the third quarter 2019, due to the sharp drop in oil and gas prices and lower production. |
● | $1,295 million in the first nine months 2020, a decrease of 76% compared to $5,478 million in the first nine months 2019, for the same reasons. |
Adjusted net operating income for the Exploration & Production segment excludes special items. In the third quarter 2020, the exclusion of special items had a positive impact of $25 million on the segment’s adjusted net operating income, compared to a positive impact of $494 million in the third quarter 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $7,259 million on the segment’s adjusted net operating income, compared to a positive impact of $537 million in the first nine months 2020.
In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost2 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $2,646 million, a decrease of 41% compared to $4,451 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $7,032 million, a decrease of 48% compared to $13,579 million in the first nine months 2019.
In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $2,043 million, a decrease of 59% compared to $5,007 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $6,876 million, a decrease of 46% compared to $12,711 million in the first nine months 2019.
2 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.
6
B.3. Downstream (Refining & Chemicals and Marketing & Services segments)
Results
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | in millions of dollars | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
30,004 | 21,419 | 43,289 | -31% | Non-Group sales | 88,621 | 131,459 | -33% | |||||||
261 | 866 | 1,593 | -84% | Operating income | (63) | 4,340 | ns | |||||||
(233) | (13) | (10) | ns | Net income (loss) from equity affiliates and other items | (293) | 351 | ns | |||||||
(238) | (259) | (385) | ns | Tax on net operating income | (194) | (965) | ns | |||||||
(210) | 594 | 1,198 | ns | Net operating income | (550) | 3,726 | ns | |||||||
583 | 110 | 167 | x3 | Adjustments affecting net operating income | 2,311 | (124) | ns | |||||||
373 | 704 | 1,365 | -73% | Adjusted net operating income* | 1,761 | 3,602 | -51% | |||||||
449 | 457 | 570 | -21% | Organic investments | 1,183 | 1,447 | -18% | |||||||
2 | (20) | 52 | -96% | Net acquisitions | (48) | (42) | ns | |||||||
451 | 437 | 622 | -27% | Net investments | 1,135 | 1,405 | -19% |
* Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit
In the third quarter 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost3 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $971 million, a decrease of 51% compared to $1,995 million in the third quarter 2019. In the first nine months 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $3,523 million, a decrease of 31% compared to $5,113 in the first nine months 2019.
In the third quarter 2020, the Downstream segment’s cash flow from operating activities excluding financial charges, except those related to leases was $2,060 million, a decrease of 33% compared to $3,058 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $2,377 million, a decrease of 53% compared to $5,021 in the first nine months 2019.
Refining & Chemicals segment
• Refinery and petrochemicals throughput and utilization rates
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | Refinery throughput and utilization rate* | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||||||
1,212 | 1,249 | 1,719 | -29% | Total refinery throughput (kb/d) | 1,302 | 1,725 | -25% | |||||||||||||||||||||
267 | 205 | 503 | -47% | • France | 242 | 514 | -53% | |||||||||||||||||||||
540 | 595 | 757 | -29% | • Rest of Europe | 630 | 753 | -16% | |||||||||||||||||||||
405 | 449 | 459 | -12% | • Rest of world | 429 | 458 | -6% | |||||||||||||||||||||
57% | 59% | 82% | Utilization rates based on crude only** | 62% | 83% |
* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year.
• Petrochemicals production and utilization rates
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | Petrochemicals production and utilization rate | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
1,255 | 1,391 | 1,402 | -11% | Monomers* (kt) | 4,033 | 3,788 | +6% | |||||||
1,248 | 1,193 | 1,268 | -2% | Polymers (kt) | 3,642 | 3,692 | -1% | |||||||
75% | 84% | 91% | Vapocracker utilization rate** | 81% | 81% |
* Olefins
** Based on olefins production from steamcrackers and their treatment capacity at the start of the year.
3 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.
7
Refinery throughput volumes:
● | Decreased by 29% in the third quarter 2020 compared to the previous year, mainly due to high inventories of refined products and the drop in demand. The extended shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019 and the safety outage at the Port Arthur refinery in the US in September related to Hurricane Laura also contributed to the reduction. |
● | Decreased by 25% in the first nine months 2020 year-on-year for the same reasons. |
Monomer production:
● | Decreased 11% in the third quarter 2020 year-on-year to 1,255 kt, essentially due to prolonged unscheduled maintenance on the Port Arthur cracker. |
● | Increased 6% in the first nine months 2020 year-on-year as a result of 2019 planned maintenance on the steamcracker at Daesan in South Korea. |
Polymer production:
● | Slight decrease of 2% in the third quarter 2020 year-on-year to 1,248 kt, due to the drop in demand. |
● | Stable in the first nine months 2020 compared to the first nine months 2019, due to planned maintenance of the steamcracker upstream of the polymer units at Daesan in South Korea in 2019 and offset by the closure of the polystyrene site at El Pratt in Spain and the planned maintenance at the Qatofin platform in Qatar in the first quarter 2020. |
Results
3Q20 | 2Q20 | 3Q19 | 3Q20 vs | in millions of dollars | 9M20 | 9M19 | 9M20 vs | |||||||
13,607 | 9,433 | 21,338 | -36% | Non-Group sales | 41,563 | 65,558 | -37% | |||||||
(361) | 632 | 1,035 | ns | Operating income | (997) | 2,763 | ns | |||||||
(247) | (35) | 5 | ns | Net income (loss) from equity affiliates and other items | (339) | 265 | ns | |||||||
(51) | (132) | (221) | ns | Tax on net operating income | 152 | (467) | ns | |||||||
(659) | 465 | 819 | ns | Net operating income | (1,184) | 2,561 | ns | |||||||
571 | 110 | 133 | x4 | Adjustments affecting net operating income | 2,053 | (138) | ns | |||||||
(88) | 575 | 952 | ns | Adjusted net operating income* | 869 | 2,423 | -64% | |||||||
291 | 302 | 355 | -18% | Organic investments | 761 | 948 | -20% | |||||||
(1) | (15) | 19 | ns | Net acquisitions | (52) | (163) | ns | |||||||
290 | 287 | 374 | -22% | Net investments | 709 | 785 | -10% |
*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.
Adjusted net operating income for the Refining & Chemicals segment:
● | Decreased to a loss of -$88 million in the third quarter 2020. The drop was due to negative refining margins resulting from weak demand, notably for distillates as a result of particularly depressed demand for air transport. |
● | Decreased to $869 million in the first nine months 2020, down 64% compared to the same period last year, due to refining margin deterioration and low plant utilization based on crude oil throughput of 62%, partially offset by resilient petrochemical margins and outperformance of the trading activities in the second quarter 2020. |
Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2020, the exclusion of the inventory valuation effect had a negative impact of $14 million on the segment’s adjusted net operating income, compared to a positive impact of $90 million in the third quarter 2019. In the third quarter 2020 the exclusion of special items had a positive impact of $585 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the third quarter 2019. In the first nine months 2020, the exclusion of the inventory valuation effect had a positive impact of $1,357 million on the segment’s adjusted net operating income, compared to a negative impact of $254 million in the first nine months 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $696 million on the segment’s adjusted net operating income, compared to a positive impact of $116 million in the first nine months 2019.
In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost4 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $242 million, a decrease of 82% compared to $1,373 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $1,912 million, a decrease of 42% compared to $3,283 in the first nine months 2019.
4 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.
8
In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,027 million, a decrease of 35% compared to $1,575 million in the third quarter 2019. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $924 million compared to $2,695 million in the first nine months 2019.
B.4. Marketing & Services segment
Petroleum product sales
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | sales in kb/d* | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
1,442 | 1,301 | 1,848 | -22% | Total Marketing & Services sales | 1,466 | 1,848 | -21% | |||||||
819 | 740 | 1,034 | -21% | • Europe | 822 | 1,017 | -19% | |||||||
623 | 561 | 814 | -23% | • Rest of world | 645 | 831 | -22% |
*Excludes trading and bulk refining sales.
Petroleum product sales volumes decreased by 22% compared to a year ago and by 21% in the first nine months 2020 compared to the same period last year, notably due to the impact of Covid-19 and associated lockdown on global demand. However, there was an improvement compared to the previous quarter due to the recovery in demand, mainly in Europe and Asia.
Results
3Q20 | 2Q20 | 3Q19 | 3Q20 vs | in millions of dollars | 9M20 | 9M19 | 9M20 vs | |||||||
16,397 | 11,986 | 21,951 | -25% | Non-Group sales | 47,058 | 65,901 | -29% | |||||||
622 | 234 | 558 | +11% | Operating income | 934 | 1,577 | -41% | |||||||
14 | 22 | (15) | ns | Net income (loss) from equity affiliates and other items | 46 | 86 | -47% | |||||||
(187) | (127) | (164) | ns | Tax on net operating income | (346) | (498) | ns | |||||||
449 | 129 | 379 | +18% | Net operating income | 634 | 1,165 | -46% | |||||||
12 | - | 34 | -65% | Adjustments affecting net operating income | 258 | 14 | x18 | |||||||
461 | 129 | 413 | +12% | Adjusted net operating income* | 892 | 1,179 | -24% | |||||||
158 | 155 | 215 | -27% | Organic investments | 422 | 499 | -15% | |||||||
3 | (5) | 33 | -91% | Net acquisitions | 4 | 121 | -97% | |||||||
161 | 150 | 248 | -35% | Net investments | 426 | 620 | -31% |
*Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.
Adjusted net operating income for the Marketing & Services segment was $461 million in the third quarter 2020, an increase of 12% compared to a year ago, due to rising margins.
Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the third quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $6 million on the segment’s adjusted net operating income, compared to a negative impact of $19 million in the third quarter 2019. In the third quarter 2020, the exclusion of special items had a positive impact of $6 million on the segment’s adjusted net operating income, compared to a positive impact of $53 million in the third quarter 2019. In the first nine months 2020, the exclusion of the inventory valuation effect had a positive impact of $169 million on the segment’s adjusted net operating income, compared to a negative impact of $46 million in the first nine months 2019. In the first nine months 2020, the exclusion of special items had a positive impact of $89 million on the segment’s adjusted net operating income, compared to a positive impact of $60 million in the first nine months 2019.
In the third quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost5 and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $729 million, an increase of 17% compared to $622 million in the third quarter 2019. In the first nine months 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost and financial charges, except those related to leases, and including organic loan repayment from equity affiliates was $1,611 million, a decrease of 12% compared to $1,830 million in the first nine months 2019.
5 Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other working capital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above.
9
In the third quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,033 million, a decrease of 30% compared to $1,483 million in the third quarter 2020. In the first nine months 2020, the segment’s cash flow from operating activities excluding financial charges was $1,453 million, a decrease of 38% compared to $2,326 million in the first nine months 2019.
C. | GROUP RESULTS |
Net income (Group share)
In the third quarter 2020, net income (Group share) was $202 million, a decrease compared to $2,800 million in the third quarter 2019. In the first nine months 2020, net income (Group share) was $(8,133) million, a decrease compared to $8,667 million in the first nine months 2019.
Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value6.
Adjusted net income (Group share) was:
● | $848 million in the third quarter 2020, compared to $3,017 million in the third quarter 2019, due to lower Brent prices, natural gas prices and refining margins. |
● | $2,755 million in the first nine months 2020, a decrease of 68% year-on-year, for the same reasons. |
Total adjustments affecting net income7 were -$646 million in the third quarter 2020, essentially related to the conversion of the Grandpuits refinery in France and the sale of the Lindsey refinery in the United Kingdom.
Fully-diluted shares
The number of fully-diluted shares was 2,644 million on September 30, 2020.
Acquisitions - Asset sales
Finalized acquisitions were:
● | $150 million in the third quarter 2020, comprised notably of acquiring 51% of the Seagreen offshore wind project in the United Kingdom. |
● | $2.7 billion in the first nine months 2020, comprised of the item above as well as the acquisition in India of 50% of a portfolio of installed solar activities from Adani Green Energy Limited, the closing of the acquisition of 37.4% stake in Adani Gas Ltd, the acquisition of interests in Blocks 20 and 21 in Angola, and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia. |
Finalized asset sales were:
● | $422 million in the third quarter 2020, comprised notably of the sale of non-strategic assets in the UK North Sea to Neo Energy. |
● | $1.1 billion in the first nine months 2020, comprised notably of the sale above, as well as closing the sale of Block CA1 in Brunei, the sale of the Group’s interest in the Fos Cavaou regasification terminal in France, and 50% of the sale of a portfolio of solar and wind assets from Total Quadran in France. |
Cash flow
The Group’s cash flow from operating activities was $4,351 million in the third quarter 2020, a decrease of 47% compared to $8,206 million in the third quarter 2019. The Group’s cash flow from operating activities was $9,129 million in the first nine months 2020, a decrease of 50% compared to $18,086 million in the first nine months 2019.
The change in working capital as determined using the replacement cost method8 excluding the mark-to-market effect of iGRP’s contracts, including capital gain from renewable project sale (effective first quarter 2020) and including organic loan repayment from equity affiliates was $560 million in the third quarter 2020, compared to $1,469 million in the third quarter 2019. It is the (increase) decrease in working capital of $980 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $90 million, (ii) the mark-to-market effect of iGRP’s contracts of $(505) million, (iii) the capital gains from renewables project sale of $(4) million and (iv) the organic loan repayments from equity affiliates of $(1) million.
6 Details shown on page 15 of this exhibit.
7 Details shown on pages 15 and 26-32 of this exhibit.
8 For information on the replacement cost method, refer to the second paragraph of “B. Analysis of business segment results”.
10
The change in working capital as determined using the replacement cost method9 excluding the mark-to-market effect of iGRP’s contracts, and including capital gain from renewable project sale (effective first quarter 2020) and organic loan repayment from equity affiliates in the first nine months 2020 was $(2,070) million, compared to $(1,232) million in the first nine months 2019. It is the (increase) decrease in working capital of $527 million as determined in accordance with IFRS adjusted for (i) the pre-tax inventory valuation effect of $(1,748) million, (ii) the mark-to-market effect of iGRP’s contracts of $(750) million, (iii) the capital gains from renewables project sale of $(64) million and (iv) the organic loan repayments from equity affiliates of $(35) million.
In the third quarter 2020, operating cash flow before working capital changes10 was $3,791 million, a decrease of 44% compared to $6,737 million in the third quarter 2019. In the first nine months 2020, operating cash flow before working capital changes was $11,199 million, a decrease of 42% compared to $19,318 million in the first nine months 2019.
In the third quarter 2020, operating cash flow excluding the change in working capital at replacement cost11, without financial charges (DACF)12 was $4,281 million, a decrease of 41% compared to $7,269 million in the third quarter 2019. In the first nine months 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF) was $12,701 million, a decrease of 39% compared to $20,854 million in the first nine months 2019.
The Group’s net cash flow13 was:
● | $1,879 million in the third quarter 2020 compared to $19 million in the third quarter 2019, which takes into account a decrease in net investments from $6,718 million to $1,912 million and a decrease in operating cash flow before working capital changes from $6,737 million to $3,791 million. |
● | $2.7 billion in the first nine months 2020 compared to $6.1 billion in the first nine months 2019, due to the decrease of $8.1 billion in operating cash flow before working capital changes, partially offset by a reduction in net investments of $4.8 billion. |
D. PROFITABILITY
Return on equity was 5.5% for the twelve months ended September 30, 2020.
in millions of dollars | 10/01/2019- 09/30/2020 | 07/01/2019 - 06/30/2020 | 10/01/2018- 09/30/2019 | ||||||||||||
Adjusted net income | 5,960 | 8,214 | 12,104 | ||||||||||||
Adjusted shareholders’ equity | 108,885 | 109,448 | 117,037 | ||||||||||||
Return on equity (ROE) | 5.5% | 7.5% | 10.3% |
Return on average capital employed was 5.4% for the twelve months ended September 30, 2020.
in millions of dollars | 10/01/2019- 09/30/2020 | 07/01/2019 - 06/30/2020 | 10/01/2018- 09/30/2019 | ||||||||||||
Adjusted net operating income | 7,801 | 10,125 | 14,094 | ||||||||||||
Adjusted capital employed | 144,061 | 145,621 | 146,222 | ||||||||||||
ROACE | 5.4% | 7.0% | 9.6% |
9 For information on the replacement cost method, refer to the second paragraph of “B. Analysis of business segment results”.
10 “Operating cash flow before working capital changes” is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020) and including organic loan repayment from equity affiliates. Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
11 “Operating cash flow before working capital changes” is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020) and including organic loan repayment from equity affiliates. Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
12 DACF = debt adjusted cash flow, is defined as operating cash flow before working capital changes and financial charges.
13 Net cash flow = operating cash flow before working capital changes - net investments (including other transactions with non-controlling interests).
11
E. 2020 SENSITIVITIES*
Change | Estimated impact | Estimated flow from | ||||
Dollar | +/- 0.1 $ per € | -/+ 0.1 B$ | ~0 B$ | |||
Average Liquids price** | +/- 10$/b | +/- 2.9 B$ | +/- 3.3 B$ | |||
European gas price – NBP ($/Mbtu) | +/- 1 $/Mbtu | +/- 0.35 B$ | +/- 0.35 B$ | |||
Variable cost margin, European refining (VCM) | +/- 10 $/t | +/- 0.5 B$ | +/- 0.6 B$ |
* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2020. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 17.
** In a 60 $/b Brent environment.
F. SUMMARY AND OUTLOOK
The oil market environment remains uncertain and will depend notably on the speed of the global demand recovery, affected by the Covid-19 pandemic.
Oil prices have remained above $40/b since June, supported by strong compliance with OPEC+ quotas and lower hydrocarbon production in North America. In this context, given the quotas, the Group now anticipates full-year 2020 production below 2.9 Mboe/d.
TOTAL anticipates that the increase in oil prices over the second and third quarters will have a positive impact on its average LNG selling price in the fourth quarter, which is expected to be over $4/Mbtu.
In the Downstream, since the beginning of the fourth quarter, European refining margins have averaged more than $10/t and remain fragile given the low demand for jet fuel that weighs on the valuation of all distillates.
In this context, the Group maintains strong discipline on spending. The Group’s operating cost reduction program will surpass its objective with savings of more than $1 billion in 2020. Net investments will be less than $13 billion in 2020, including $2 billion for renewables and electricity.
The Group’s priority is the generation of a level of cash flow that allows it to continue to invest in profitable projects, support the dividend and maintain a solid balance sheet. The Group’s teams remain fully committed to the four priorities of HSE, operational excellence, cost reduction and cash flow generation.
12
FORWARD-LOOKING STATEMENTS
This document may contain 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 activities and industrial strategy of TOTAL. This document may also contain statements regarding the perspectives, objectives and goals of the Group, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by the Group, it being specified that the means to be deployed do not depend solely on TOTAL. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by the Group as of the date of this document.
These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, as well as economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences including those due to epidemics such as Covid-19. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to update forward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.
For additional factors, you should read the information set forth under “Item 3. -3.2 Risk Factors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F/A for the year ended December 31, 2019.
13
OPERATING INFORMATION BY SEGMENT
Group production (Exploration & Production + iGRP)
3Q20 | 2Q20 | 3Q19 | | 3Q20 vs 3Q19 |
| Combined liquids and gas production by region (kboe/d) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||
|
| |||||||||||||||||||||||||
969 | 1,032 | 1,004 | -3% | Europe and Central Asia | 1,032 | 997 | +4% | |||||||||||||||||||
598 | 653 | 733 | -18% | Africa | 651 | 705 | -8% | |||||||||||||||||||
576 | 641 | 720 | -20% | Middle East and North Africa | 633 | 703 | -10% | |||||||||||||||||||
343 | 314 | 363 | -5% | Americas | 343 | 364 | -6% | |||||||||||||||||||
229 | 206 | 221 | +4% | Asia-Pacific | 223 | 212 | +5% | |||||||||||||||||||
2,715 | 2,846 | 3,040 | -11% | Total production | 2,882 | 2,981 | -3% | |||||||||||||||||||
667 | 699 | 698 | -4% | • includes equity affiliates | 706 | 719 | -2% | |||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | | 3Q20 vs 3Q19 |
| Liquids production by region (kb/d) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||
|
| |||||||||||||||||||||||||
359 | 381 | 367 | -2% | Europe and Central Asia | 381 | 349 | +9% | |||||||||||||||||||
458 | 514 | 583 | -21% | Africa | 509 | 558 | -9% | |||||||||||||||||||
432 | 494 | 562 | -23% | Middle East and North Africa | 481 | 543 | -12% | |||||||||||||||||||
144 | 127 | 163 | -11% | Americas | 150 | 167 | -10% | |||||||||||||||||||
44 | 37 | 44 | -1% | Asia-Pacific | 42 | 41 | +3% | |||||||||||||||||||
1,437 | 1,553 | 1,720 | -16% | Total production | 1,563 | 1,658 | -6% | |||||||||||||||||||
197 | 199 | 210 | -6% | • includes equity affiliates | 203 | 217 | -6% | |||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | | 3Q20 vs 3Q19 |
| Gas production by region (Mcf/d) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||
|
| |||||||||||||||||||||||||
3,284 | 3,506 | 3,431 | -4% | Europe and Central Asia | 3,507 | 3,498 | - | |||||||||||||||||||
713 | 706 | 768 | -7% | Africa* | 722 | 755 | -4% | |||||||||||||||||||
801 | 818 | 866 | -8% | Middle East and North Africa | 844 | 879 | -4% | |||||||||||||||||||
1,115 | 1,047 | 1,124 | -1% | Americas | 1,085 | 1,111 | -2% | |||||||||||||||||||
1,060 | 968 | 1,011 | +5% | Asia-Pacific* | 1,035 | 982 | +5% | |||||||||||||||||||
6,973 | 7,045 | 7,200 | -3% | Total production* | 7,193 | 7,225 | - | |||||||||||||||||||
2,540 | 2,698 | 2,635 | -4% | • includes equity affiliates* | 2,714 | 2,719 | - | |||||||||||||||||||
|
*3Q19 and 9M19 data restated
Downstream (Refining & Chemicals and Marketing & Services)
|
| ||||||||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | | 3Q20 vs 3Q19 |
| Petroleum product sales by region (kb/d) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||
|
| |||||||||||||||||||||||||
1,475 | 1,449 | 1,999 | -26% | Europe | 1,565 | 2,013 | -22% | |||||||||||||||||||
541 | 463 | 677 | -20% | Africa | 562 | 695 | -19% | |||||||||||||||||||
673 | 861 | 920 | -27% | Americas | 767 | 868 | -12% | |||||||||||||||||||
460 | 433 | 541 | -15% | Rest of world | 446 | 564 | -21% | |||||||||||||||||||
3,149 | 3,208 | 4,136 | -24% | Total consolidated sales | 3,340 | 4,141 | -19% | |||||||||||||||||||
417 | 366 | 544 | -23% | • includes bulk sales | 427 | 545 | -22% | |||||||||||||||||||
1,290 | 1,541 | 1,745 | -26% | • includes trading | 1,447 | 1,748 | -17% | |||||||||||||||||||
3Q20 | 2Q20 | 3Q19 | | 3Q20 vs 3Q19 |
| Petrochemicals production* (kt) | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||||||||||||
|
| |||||||||||||||||||||||||
1,274 | 1,275 | 1,377 | -7% | Europe | 3,821 | 4,110 | -7% | |||||||||||||||||||
513 | 637 | 648 | -21% | Americas | 1,813 | 1,737 | +4% | |||||||||||||||||||
716 | 672 | 646 | +11% | Middle East and Asia | 2,040 | 1,633 | +25% |
*Olefins, polymers
14
ADJUSTMENT ITEMS TO NET INCOME (GROUP SHARE)
3Q20 | 2Q20 | 3Q19 | In millions of dollars | 9M20 | 9M19 | |||||
| ||||||||||
(706) | (8,321) | (156) | Special items affecting net income (Group share) | (9,361) | (226) | |||||
- | - | - | • Gain (loss) on asset sales | - | - | |||||
(70) | (20) | (20) | • Restructuring charges | (170) | (53) | |||||
(293) | (8,101) | (160) | • Impairments | (8,394) | (217) | |||||
(343) | (200) | 24 | • Other | (797) | 44 | |||||
4 | (94) | (71) | After-tax inventory effect: FIFO vs. replacement cost | (1,504) | 289 | |||||
56 | (80) | 10 | Effect of changes in fair value | (23) | (59) | |||||
(646) | (8,495) | (217) | Total adjustments affecting net income | (10,888) | 4 |
INVESTMENTS — DIVESTMENTS
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 2Q19 | in millions of dollars | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
|
|
|
|
|
|
| ||||||||
2,184 | 2,201 | 3,296 | -34% | Organic investments (a) | 6,908 | 9,107 | -24% | |||||||
148 | 162 | 152 | -3% | ● Capitalized exploration | 445 | 569 | -22% | |||||||
290 | 733 | 242 | +20% | ● Increase in non-current loans | 1,302 | 742 | +75% | |||||||
(330) | (58) | (61) | ns | ● Repayment of non-current loans, excluding organic loan repayment from equity affiliates* | (505) | (449) | ns | |||||||
(11) | (47) | (109) | ns | ● Change in debt from renewable projects (Group share) | (163) | (109) | ns | |||||||
150 | 857 | 4,429 | -97% | Acquisitions (b) | 2,651 | 5,713 | -54% | |||||||
422 | 136 | 1,007 | -58% | Asset sales (c) | 1,100 | 1,582 | -30% | |||||||
7 | 22 | 105 | -93% | ● Change in debt from renewable projects (partner share) | 90 | 105 | -14% | |||||||
- | - | - | ns | Other transactions with non-controlling interests (d) | - | - | ns | |||||||
1,912 | 2,922 | 6,718 | -72% | Net investments (a+b-c-d) | 8,459 | 13,238 | -36% | |||||||
(1) | (41) | (101) | ns | Organic loan repayment from equity affiliates* (e) | (35) | (200) | ns | |||||||
18 | 69 | 214 | -92% | Change in debt from renewable projects financing** (f) | 253 | 214 | +18% | |||||||
28 | 22 | - | ns | Capex linked to capitalized leasing contracts (g) | 74 | - | ns | |||||||
1,901 | 2,928 | 6,831 | -72% | Cash flow used in investing activities (a+b-c+e+f-g) | 8,603 | 13,252 | -35% |
*Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations.
**Change in debt from renewable projects (Group share and partner share).
15
CASH FLOW
3Q20 | 2Q20 | 3Q19 | 3Q20 vs 3Q19 | in millions of dollars | 9M20 | 9M19 | 9M20 vs 9M19 | |||||||
4,281 | 4,143 | 7,269 | -41% | Operating cash flow before working capital changes w/o financial charges (DACF) | 12,701 | 20,854 | -39% | |||||||
(491) | (499) | (532) | ns | ● Financial charges | (1,502) | (1,536) | ns | |||||||
3,791 | 3,644 | 6,737 | -44% | Operating cash flow before working capital changes (a)* | 11,199 | 19,318 | -42% | |||||||
475 | (65) | 1,639 | -71% | ● (Increase) decrease in working capital** | (223) | (1,489) | ns | |||||||
90 | (42) | (69) | ns | ● Inventory effect | (1,748) | 457 | ns | |||||||
(4) | (17) | - | ns | ● Capital gain from renewable projects sale | (64) | - | ns | |||||||
(1) | (41) | (101) | ns | ● Organic loan repayment from equity affiliates | (35) | (200) | ns | |||||||
4,351 | 3,479 | 8,206 | -47% | Cash flow from operations | 9,129 | 18,086 | -50% | |||||||
2,184 | 2,201 | 3,296 | -34% | Organic investments (b) | 6,908 | 9,107 | -24% | |||||||
1,607 | 1,443 | 3,441 | -53% | Free cash flow after organic investments, w/o net asset sales (a-b) | 4,291 | 10,211 | -58% | |||||||
1,912 | 2,922 | 6,718 | -72% | Net investments (c) | 8,459 | 13,238 | -36% | |||||||
1,879 | 722 | 19 | x98.9 | Net cash flow (a-c) | 2,740 | 6,080 | -55% |
* Operating cash flow before working capital changes, is defined as cash flow from operating activities before changes in working capital at replacement cost, excluding the mark-to-market effect of iGRP’s contracts and including capital gain from renewable projects sale (effective first quarter 2020). Historical data have been restated to cancel the impact of fair valuation of iGRP sector’s contracts.
** Changes in working capital are presented excluding the mark-to-market effect of iGRP’s contracts. See also “C. Group results – Cash Flow”.
GEARING RATIO
in millions of dollars | 09/30/2020 | 06/30/2020 | 09/30/2019 | |||
Current borrowings | 14,980 | 16,154 | 14,631 | |||
Net current financial assets | (5,815) | (6,159) | (3,012) | |||
Net financial assets classified as held for sale | 5 | - | - | |||
Non-current financial debt | 61,477 | 61,540 | 47,923 | |||
Non-current financial assets | (3,155) | (2,431) | (767) | |||
Cash and cash equivalents | (30,593) | (29,727) | (27,454) | |||
|
|
|
| |||
Net debt (a) | 36,899 | 39,377 | 31,321 | |||
|
|
|
| |||
of which leases | 7,499 | 7,383 | 6,888 | |||
Shareholders’ equity – Group share | 102,234 | 101,205 | 114,994 | |||
Non-controlling interests | 2,177 | 2,334 | 2,319 | |||
|
|
|
| |||
Shareholders’ equity (b) | 104,411 | 103,539 | 117,313 | |||
|
|
|
| |||
Net-debt-to-capital ratio = a/(a+b)* | 26.1% | 27.6% | 21.1% | |||
Net-debt-to-capital ratio excluding leases | 22.0% | 23.6% | 17.2% |
*The net-debt-to-capital ratios include the impact of the new IFRS 16 rule, effective January 1, 2019.
16
RETURN ON AVERAGE CAPITAL EMPLOYED
Twelve months ended September 30, 2020
in millions of dollars | Integrated Gas, Renewables & Power | Exploration & Production | Refining & Chemicals | Marketing & Services | ||||||||||||||||
Adjusted net operating income | 2,318 | 3,326 | 1,449 | 1,366 | ||||||||||||||||
Capital employed at 09/30/2019* | 41,516 | 88,560 | 11,658 | 7,570 | ||||||||||||||||
Capital employed at 09/30/2020* | 43,799 | 78,548 | 11,951 | 8,211 | ||||||||||||||||
ROACE | 5.4% | 4.0% | 12.3% | 17.3% | ||||||||||||||||
Twelve months ended June 30, 2020
| ||||||||||||||||||||
in millions of dollars | Integrated Gas, Renewables & Power | Exploration & Production | Refining & Chemicals | Marketing & Services | ||||||||||||||||
Adjusted net operating income | 2,607 | 4,259 | 2,489 | 1,318 | ||||||||||||||||
Capital employed at 06/30/2019* | 37,290 | 90,633 | 12,300 | 8,535 | ||||||||||||||||
Capital employed at 06/30/2020* | 43,527 | 79,096 | 12,843 | 8,366 | ||||||||||||||||
ROACE | 6.5% | 5.0% | 19.8% | 15.6% |
* At replacement cost (excluding after-tax inventory effect).
MAIN INDICATORS
$/€ | Brent ($/b) | Average liquids price* ($/b) | Average gas price* ($/Mbtu) | Average LNG price** ($/Mbtu) | Variable cost margin, European refining*** ($/t) | |||||||||||||||||||||||||
Third quarter 2020 | 1.17 | 42.9 | 39.9 | 2.52 | 3.57 | -2.7 | ||||||||||||||||||||||||
Second quarter 2020 | 1.10 | 29.6 | 23.4 | 2.61 | 4.40 | 14.3 | ||||||||||||||||||||||||
First quarter 2020 | 1.10 | 50.1 | 44.4 | 3.35 | 6.32 | 26.3 | ||||||||||||||||||||||||
Fourth quarter 2019 | 1.11 | 63.1 | 59.1 | 3.76 | 6.52 | 30.2 | ||||||||||||||||||||||||
Third quarter 2019 | 1.11 | 62.0 | 58.0 | 3.48 | 5.93 | 47.4 |
* Sales in $ / sales in volume for consolidated affiliates (excluding stock value variation).
** Sales in $ / sales in volume for consolidated and equity affiliates (excluding stock value variation). This indicator reflects the combined effect of sales volumes and prices of long-term contracts and spot sales. The share of spot sales volumes increased in the second quarter of 2020 compared to the first quarter 2020 due to deferments of some LNG uplifts by some long term contract buyers, while the average long-term contract price was only reduced by 16% because of deferred impact of the oil price decrease.
*** This indicator represents the average margin on variable costs realized by TOTAL’s European refining business (equal to the difference between the sales of refined products realized by TOTAL’s European refining and the crude purchases as well as associated variable costs, divided by refinery throughput in tons).
Disclaimer: Data is based on TOTAL’s reporting and is not audited. To the extent permitted by law, TOTAL SE disclaims all liability from the use of the main indicators.
17
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
| ||||||||||||
(M$)(a) | 3rd quarter 2020 | 2nd quarter 2020 | 3rd quarter 2019 | |||||||||
|
|
|
|
|
|
| ||||||
Sales | 33,142 | 25,730 | 48,589 | |||||||||
Excise taxes | (5,925) | (4,168 | ) | (6,051 | ) | |||||||
Revenues from sales | 27,217 | 21,562 | 42,538 | |||||||||
Purchases, net of inventory variation | (16,885) | (12,025 | ) | (27,898 | ) | |||||||
Other operating expenses | (5,610) | (6,321 | ) | (6,362 | ) | |||||||
Exploration costs | (139) | (114 | ) | (96 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,493) | (11,593 | ) | (4,173 | ) | |||||||
Other income | 457 | 362 | 167 | |||||||||
Other expense | (281) | (108 | ) | (559 | ) | |||||||
Financial interest on debt | (547) | (530 | ) | (598 | ) | |||||||
Financial income and expense from cash & cash equivalents | 89 | 50 | - | |||||||||
Cost of net debt | (458) | (480 | ) | (598 | ) | |||||||
Other financial income | 134 | 419 | 163 | |||||||||
Other financial expense | (165) | (161 | ) | (178 | ) | |||||||
Net income (loss) from equity affiliates | 94 | (447 | ) | 1,381 | ||||||||
Income taxes | (690) | 484 | (1,540 | ) | ||||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 181 | (8,422 | ) | 2,845 | ||||||||
|
|
|
|
|
|
| ||||||
Group share | 202 | (8,369 | ) | 2,800 | ||||||||
Non-controlling interests | (21) | (53 | ) | 45 | ||||||||
|
|
|
|
|
|
| ||||||
Earnings per share ($) | 0.04 | (3.27 | ) | 1.05 | ||||||||
|
|
|
|
|
|
| ||||||
Fully-diluted earnings per share ($) | 0.04 | (3.27 | ) | 1.04 | ||||||||
|
|
|
|
|
|
|
(a) Except for per share amounts.
18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
| ||||||||||||
(M$) | 3rd quarter 2020 | 2nd quarter 2020 | 3rd quarter 2019 | |||||||||
|
|
|
|
|
|
| ||||||
Consolidated net income | 181 | (8,422 | ) | 2,845 | ||||||||
|
|
|
|
|
|
| ||||||
Other comprehensive income | ||||||||||||
Actuarial gains and losses | (6) | (356 | ) | 5 | ||||||||
Change in fair value of investments in equity instruments | 221 | 90 | 19 | |||||||||
Tax effect | - | 101 | (1 | ) | ||||||||
Currency translation adjustment generated by the parent company | 3,663 | 1,780 | (3,520 | ) | ||||||||
|
|
|
|
|
|
| ||||||
Items not potentially reclassifiable to profit and loss | 3,878 | 1,615 | (3,497 | ) | ||||||||
|
|
|
|
|
|
| ||||||
Currency translation adjustment | (1,830) | (919 | ) | 1,207 | ||||||||
Cash flow hedge | 363 | 231 | (202 | ) | ||||||||
Variation of foreign currency basis spread | (35) | 14 | (4 | ) | ||||||||
Share of other comprehensive income of equity affiliates, net amount | (804) | 296 | 73 | |||||||||
Other | (7) | - | (6 | ) | ||||||||
Tax effect | (115) | (78 | ) | 69 | ||||||||
|
|
|
|
|
|
| ||||||
Items potentially reclassifiable to profit and loss | (2,428) | (456 | ) | 1,137 | ||||||||
|
|
|
|
|
|
| ||||||
Total other comprehensive income (net amount) | 1,450 | 1,159 | (2,360 | ) | ||||||||
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
| ||||||
Comprehensive income | 1,631 | (7,263 | ) | 485 | ||||||||
|
|
|
|
|
|
| ||||||
Group share | 1,536 | (7,253 | ) | 462 | ||||||||
Non-controlling interests | 95 | (10 | ) | 23 |
19
CONSOLIDATED STATEMENT OF INCOME
TOTAL
(unaudited)
| ||||||||
(M$)(a) | 9 months 2020 | 9 months 2019 | ||||||
|
|
|
| |||||
Sales | 102,742 | 151,036 | ||||||
Excise taxes | (15,386) | (18,172 | ) | |||||
Revenues from sales | 87,356 | 132,864 | ||||||
Purchases, net of inventory variation | (56,978) | (88,009 | ) | |||||
Other operating expenses | (18,875) | (20,165 | ) | |||||
Exploration costs | (393) | (554 | ) | |||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (18,721) | (11,300 | ) | |||||
Other income | 1,399 | 735 | ||||||
Other expense | (809) | (957 | ) | |||||
Financial interest on debt | (1,646) | (1,727 | ) | |||||
Financial income and expense from cash & cash equivalents | (16) | (70 | ) | |||||
Cost of net debt | (1,662) | (1,797 | ) | |||||
Other financial income | 741 | 649 | ||||||
Other financial expense | (507) | (561 | ) | |||||
Net income (loss) from equity affiliates | 379 | 2,904 | ||||||
Income taxes | (169) | (5,020 | ) | |||||
|
|
|
| |||||
Consolidated net income | (8,239) | 8,789 | ||||||
|
|
|
| |||||
Group share | (8,133) | 8,667 | ||||||
Non-controlling interests | (106) | 122 | ||||||
|
|
|
| |||||
Earnings per share ($) | (3.22) | 3.22 | ||||||
|
|
|
| |||||
Fully-diluted earnings per share ($) | (3.22) | 3.20 | ||||||
|
|
|
|
(a) Except for per share amounts.
20
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TOTAL
(unaudited)
| ||||||||
(M$) | 9 months 2020 | 9 months 2019 | ||||||
|
|
|
| |||||
Consolidated net income | (8,239) | 8,789 | ||||||
|
|
|
| |||||
Other comprehensive income | ||||||||
Actuarial gains and losses | (229) | (54 | ) | |||||
Change in fair value of investments in equity instruments | 147 | 126 | ||||||
Tax effect | 86 | 13 | ||||||
Currency translation adjustment generated by the parent company | 3,467 | (3,994 | ) | |||||
|
|
|
| |||||
Items not potentially reclassifiable to profit and loss | 3,471 | (3,909 | ) | |||||
|
|
|
| |||||
Currency translation adjustment | (2,770) | 1,394 | ||||||
Cash flow hedge | (930) | (575 | ) | |||||
Variation of foreign currency basis spread | 35 | 50 | ||||||
Share of other comprehensive income of equity affiliates, net amount | (1,731) | 326 | ||||||
Other | (4) | (4 | ) | |||||
Tax effect | 252 | 176 | ||||||
|
|
|
| |||||
Items potentially reclassifiable to profit and loss | (5,148) | 1,367 | ||||||
|
|
|
| |||||
Total other comprehensive income (net amount) | (1,677) | (2,542 | ) | |||||
|
|
|
| |||||
|
|
|
| |||||
Comprehensive income | (9,916) | 6,247 | ||||||
|
|
|
| |||||
Group share | (9,888) | 6,099 | ||||||
Non-controlling interests | (28) | 148 |
21
CONSOLIDATED BALANCE SHEET
TOTAL
September 30, 2020 | June 30, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||
(M$) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
ASSETS | ||||||||||||||||
Non-current assets |
| |||||||||||||||
Intangible assets, net | 33,145 | 33,114 | 33,178 | 31,539 | ||||||||||||
Property, plant and equipment, net | 104,355 | 104,925 | 116,408 | 116,900 | ||||||||||||
Equity affiliates : investments and loans | 27,386 | 27,470 | 27,122 | 27,172 | ||||||||||||
Other investments | 1,822 | 1,627 | 1,778 | 1,738 | ||||||||||||
Non-current financial assets | 3,155 | 2,431 | 912 | 767 | ||||||||||||
Deferred income taxes | 6,952 | 7,257 | 6,216 | 5,689 | ||||||||||||
Other non-current assets | 2,570 | 2,539 | 2,415 | 2,264 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total non-current assets | 179,385 | 179,363 | 188,029 | 186,069 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Current assets | ||||||||||||||||
Inventories, net | 12,373 | 12,688 | 17,132 | 16,226 | ||||||||||||
Accounts receivable, net | 12,893 | 13,481 | 18,488 | 18,568 | ||||||||||||
Other current assets | 14,637 | 17,155 | 17,013 | 14,925 | ||||||||||||
Current financial assets | 6,011 | 6,570 | 3,992 | 3,781 | ||||||||||||
Cash and cash equivalents | 30,593 | 29,727 | 27,352 | 27,454 | ||||||||||||
Assets classified as held for sale | 1,090 | 421 | 1,288 | 418 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total current assets | 77,597 | 80,042 | 85,265 | 81,372 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total assets | 256,982 | 259,405 | 273,294 | 267,441 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||||||
Shareholders’ equity | ||||||||||||||||
Common shares | 8,267 | 8,159 | 8,123 | 8,300 | ||||||||||||
Paid-in surplus and retained earnings | 107,632 | 107,934 | 121,170 | 123,805 | ||||||||||||
Currency translation adjustment | (12,275) | (13,265 | ) | (11,503 | ) | (13,297 | ) | |||||||||
Treasury shares | (1,390) | (1,623 | ) | (1,012 | ) | (3,814 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total shareholders’ equity - Group share | 102,234 | 101,205 | 116,778 | 114,994 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Non-controlling interests | 2,177 | 2,334 | 2,527 | 2,319 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total shareholders’ equity | 104,411 | 103,539 | 119,305 | 117,313 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Non-current liabilities | ||||||||||||||||
Deferred income taxes | 10,367 | 10,346 | 11,858 | 11,333 | ||||||||||||
Employee benefits | 3,719 | 3,612 | 3,501 | 3,273 | ||||||||||||
Provisions and other non-current liabilities | 19,351 | 19,487 | 20,613 | 20,903 | ||||||||||||
Non-current financial debt | 61,477 | 61,540 | 47,773 | 47,923 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total non-current liabilities | 94,914 | 94,985 | 83,745 | 83,432 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Current liabilities | ||||||||||||||||
Accounts payable | 18,880 | 19,198 | 28,394 | 26,237 | ||||||||||||
Other creditors and accrued liabilities | 22,806 | 24,790 | 25,749 | 24,728 | ||||||||||||
Current borrowings | 14,980 | 16,154 | 14,819 | 14,631 | ||||||||||||
Other current financial liabilities | 196 | 411 | 487 | 769 | ||||||||||||
Liabilities directly associated with the assets classified as held for sale | 795 | 328 | 795 | 331 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total current liabilities | 57,657 | 60,881 | 70,244 | 66,696 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total liabilities & shareholders’ equity | 256,982 | 259,405 | 273,294 | 267,441 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
22
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited) | ||||||||||||
(M$) | 3rd quarter 2020 | 2nd quarter 2020 | 3rd quarter 2019 | |||||||||
|
|
|
|
|
|
| ||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | 181 | (8,422 | ) | 2,845 | ||||||||
Depreciation, depletion, amortization and impairment | 3,634 | 11,701 | 4,242 | |||||||||
Non-current liabilities, valuation allowances and deferred taxes | (88) | (796 | ) | 235 | ||||||||
(Gains) losses on disposals of assets | (309) | (131 | ) | (74 | ) | |||||||
Undistributed affiliates’ equity earnings | 178 | 978 | (876 | ) | ||||||||
(Increase) decrease in working capital | 980 | 431 | 1,523 | |||||||||
Other changes, net | (225) | (282 | ) | 311 | ||||||||
|
|
|
|
|
|
| ||||||
Cash flow from operating activities | 4,351 | 3,479 | 8,206 | |||||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||||||
Intangible assets and property, plant and equipment additions | (2,157) | (2,409 | ) | (2,210 | ) | |||||||
Acquisitions of subsidiaries, net of cash acquired | - | - | (4,385 | ) | ||||||||
Investments in equity affiliates and other securities | (229) | (136 | ) | (258 | ) | |||||||
Increase in non-current loans | (301) | (733 | ) | (242 | ) | |||||||
|
|
|
|
|
|
| ||||||
Total expenditures | (2,687 | ) | (3,278 | ) | (7,095 | ) | ||||||
Proceeds from disposals of intangible assets and property, plant and equipment | 363 | 219 | 63 | |||||||||
Proceeds from disposals of subsidiaries, net of cash sold | 4 | 12 | (1 | ) | ||||||||
Proceeds from disposals of non-current investments | 77 | 20 | 40 | |||||||||
Repayment of non-current loans | 342 | 99 | 162 | |||||||||
|
|
|
|
|
|
|
|
|
| |||
Total divestments | 786 | 350 | 264 | |||||||||
|
|
|
|
|
|
| ||||||
Cash flow used in investing activities | (1,901) | (2,928 | ) | (6,831 | ) | |||||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||||||
Issuance (repayment) of shares: | ||||||||||||
- Parent company shareholders | - | 374 | 1 | |||||||||
- Treasury shares | - | (2 | ) | (420 | ) | |||||||
Dividends paid: | ||||||||||||
- Parent company shareholders | (825) | (1,928 | ) | - | ||||||||
- Non-controlling interests | (103) | (76 | ) | (21 | ) | |||||||
Net issuance (repayment) of perpetual subordinated notes | 331 | - | - | |||||||||
Payments on perpetual subordinated notes | (22) | (134 | ) | - | ||||||||
Other transactions with non-controlling interests | (75) | (22 | ) | - | ||||||||
Net issuance (repayment) of non-current debt | 224 | 15,430 | 4,466 | |||||||||
Increase (decrease) in current borrowings | (2,343) | (6,604 | ) | (3,209 | ) | |||||||
Increase (decrease) in current financial assets and liabilities | 730 | 449 | (310 | ) | ||||||||
Cash flow from (used in) financing activities | (2,083) | 7,487 | 507 | |||||||||
|
|
|
|
|
|
| ||||||
Net increase (decrease) in cash and cash equivalents | 367 | 8,038 | 1,882 | |||||||||
|
|
|
|
|
|
| ||||||
Effect of exchange rates | 499 | 55 | (1,151 | ) | ||||||||
Cash and cash equivalents at the beginning of the period | 29,727 | 21,634 | 26,723 | |||||||||
|
|
|
|
|
|
| ||||||
Cash and cash equivalents at the end of the period | 30,593 | 29,727 | 27,454 | |||||||||
|
|
|
|
|
|
|
23
CONSOLIDATED STATEMENT OF CASH FLOW
TOTAL
(unaudited) |
(M$) | 9 months 2020 | 9 months 2019 | ||||||
|
|
|
| |||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Consolidated net income | (8,239) | 8,789 | ||||||
Depreciation, depletion, amortization and impairment | 19,065 | 11,777 | ||||||
Non-current liabilities, valuation allowances and deferred taxes | (1,545) | 614 | ||||||
(Gains) losses on disposals of assets | (649) | (438 | ) | |||||
Undistributed affiliates’ equity earnings | 569 | (1,350 | ) | |||||
(Increase) decrease in working capital | 527 | (1,764 | ) | |||||
Other changes, net | (599) | 458 | ||||||
|
|
|
| |||||
Cash flow from operating activities | 9,129 | 18,086 | ||||||
CASH FLOW USED IN INVESTING ACTIVITIES | ||||||||
Intangible assets and property, plant and equipment additions | (6,930) | (7,795 | ) | |||||
Acquisitions of subsidiaries, net of cash acquired | (188) | (4,593 | ) | |||||
Investments in equity affiliates and other securities | (1,899) | (1,448 | ) | |||||
Increase in non-current loans | (1,329) | (742 | ) | |||||
|
|
|
| |||||
Total expenditures | (10,346) | (14,578 | ) | |||||
Proceeds from disposals of intangible assets and property, plant and equipment | 626 | 226 | ||||||
Proceeds from disposals of subsidiaries, net of cash sold | 158 | 145 | ||||||
Proceeds from disposals of non-current investments | 392 | 306 | ||||||
Repayment of non-current loans | 567 | 649 | ||||||
|
|
|
| |||||
Total divestments | 1,743 | 1,326 | ||||||
|
|
|
| |||||
Cash flow used in investing activities | (8,603) | (13,252 | ) | |||||
CASH FLOW USED IN FINANCING ACTIVITIES | ||||||||
Issuance (repayment) of shares: | ||||||||
- Parent company shareholders | 374 | 451 | ||||||
- Treasury shares | (611) | (2,190 | ) | |||||
Dividends paid: | ||||||||
- Parent company shareholders | (4,635) | (4,765 | ) | |||||
- Non-controlling interests | (179) | (114 | ) | |||||
Net issuance (repayment) of perpetual subordinated notes | 331 | - | ||||||
Payments on perpetual subordinated notes | (253) | (315 | ) | |||||
Other transactions with non-controlling interests | (145) | (150 | ) | |||||
Net issuance (repayment) of non-current debt | 15,696 | 8,047 | ||||||
Increase (decrease) in current borrowings | (6,162) | (4,698 | ) | |||||
Increase (decrease) in current financial assets and liabilities | (1,816) | (368 | ) | |||||
Cash flow from (used in) financing activities | 2,600 | (4,102 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in cash and cash equivalents | 3,126 | 732 | ||||||
|
|
|
| |||||
Effect of exchange rates | 115 | (1,185 | ) | |||||
Cash and cash equivalents at the beginning of the period | 27,352 | 27,907 | ||||||
|
|
|
| |||||
Cash and cash equivalents at the end of the period | 30,593 | 27,454 | ||||||
|
|
|
|
24
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
TOTAL
(unaudited)
| ||||||||||||||||||||||||||||||||||||
Common shares issued | Paid-in surplus and retained earnings | Currency translation adjustment | Treasury shares | Shareholders’ equity - Group Share | Non-controlling interests | Total shareholders’ equity | ||||||||||||||||||||||||||||||
(M$) | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||
As of January 1, 2019 | 2,640,602,007 | 8,227 | 120,569 | (11,313 | ) | (32,473,281 | ) | (1,843 | ) | 115,640 | 2,474 | 118,114 | ||||||||||||||||||||||||
Net income of the first nine months 2019 | - | - | 8,667 | - | - | - | 8,667 | 122 | 8,789 | |||||||||||||||||||||||||||
Other comprehensive income | - | - | (584 | ) | (1,984 | ) | - | - | (2,568 | ) | 26 | (2,542 | ) | |||||||||||||||||||||||
Comprehensive Income | - | - | 8,083 | (1,984 | ) | - | - | 6,099 | 148 | 6,247 | ||||||||||||||||||||||||||
Dividend | - | - | (5,781 | ) | - | - | - | (5,781 | ) | (114 | ) | (5,895 | ) | |||||||||||||||||||||||
Issuance of common shares | 26,388,503 | 73 | 1,269 | - | - | - | 1,342 | - | 1,342 | |||||||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | (40,871,207 | ) | (2,189 | ) | (2,189 | ) | - | (2,189 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | - | - | (218 | ) | - | 4,278,158 | 218 | - | - | - | ||||||||||||||||||||||||||
Share-based payments | - | - | 157 | - | - | - | 157 | - | 157 | |||||||||||||||||||||||||||
Share cancellation | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | - | - | (4 | ) | - | - | - | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||
Payments on perpetual subordinated notes | - | - | (280 | ) | - | - | - | (280 | ) | - | (280 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | - | - | - | - | - | - | - | (150 | ) | (150 | ) | |||||||||||||||||||||||||
Other items | - | - | 10 | - | - | - | 10 | (39 | ) | (29 | ) | |||||||||||||||||||||||||
As of September 30, 2019 | 2,666,990,510 | 8,300 | 123,805 | (13,297 | ) | (69,066,330 | ) | (3,814 | ) | 114,994 | 2,319 | 117,313 | ||||||||||||||||||||||||
Net income of the fourth quarter 2019 | - | - | 2,600 | - | - | - | 2,600 | 49 | 2,649 | |||||||||||||||||||||||||||
Other comprehensive income | - | - | (75 | ) | 1,794 | - | - | 1,719 | 42 | 1,761 | ||||||||||||||||||||||||||
Comprehensive Income | - | - | 2,525 | 1,794 | - | - | 4,319 | 91 | 4,410 | |||||||||||||||||||||||||||
Dividend | - | - | (1,949 | ) | - | - | - | (1,949 | ) | (1 | ) | (1,950 | ) | |||||||||||||||||||||||
Issuance of common shares | - | 1 | (4 | ) | - | - | - | (3 | ) | - | (3 | ) | ||||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | (11,518,129 | ) | (621 | ) | (621 | ) | - | (621 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | - | - | (1 | ) | - | 790 | 1 | - | - | - | ||||||||||||||||||||||||||
Share-based payments | - | - | 50 | - | - | - | 50 | - | 50 | |||||||||||||||||||||||||||
Share cancellation | (65,109,435 | ) | (178 | ) | (3,244 | ) | - | 65,109,435 | 3,422 | - | - | - | ||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | - | - | (73 | ) | - | - | - | (73 | ) | - | (73 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | - | - | 55 | - | - | - | 55 | 108 | 163 | |||||||||||||||||||||||||||
Other items | - | - | 6 | - | - | - | 6 | 10 | 16 | |||||||||||||||||||||||||||
As of December 31, 2019 | 2,601,881,075 | 8,123 | 121,170 | (11,503 | ) | (15,474,234 | ) | (1,012 | ) | 116,778 | 2,527 | 119,305 | ||||||||||||||||||||||||
Net income of the first nine months 2020 | - | - | (8,133 | ) | - | - | - | (8,133 | ) | (106 | ) | (8,239 | ) | |||||||||||||||||||||||
Other comprehensive income | - | - | (983 | ) | (772 | ) | - | - | (1,755 | ) | 78 | (1,677 | ) | |||||||||||||||||||||||
Comprehensive Income | - | - | (9,116 | ) | (772 | ) | - | - | (9,888 | ) | (28 | ) | (9,916 | ) | ||||||||||||||||||||||
Dividend | - | - | (5,829 | ) | - | - | - | (5,829 | ) | (234 | ) | (6,063 | ) | |||||||||||||||||||||||
Issuance of common shares | 51,242,950 | 144 | 1,470 | - | - | - | 1,614 | - | 1,614 | |||||||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | (13,236,044 | ) | (611 | ) | (611 | ) | - | (611 | ) | |||||||||||||||||||||||
Sale of treasury shares(a) | - | - | (233 | ) | - | 4,297,502 | 233 | - | - | - | ||||||||||||||||||||||||||
Share-based payments | - | - | 144 | - | - | - | 144 | - | 144 | |||||||||||||||||||||||||||
Share cancellation | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net issuance (repayment) of perpetual subordinated notes | - | - | 331 | - | - | - | 331 | - | 331 | |||||||||||||||||||||||||||
Payments on perpetual subordinated notes | - | - | (227 | ) | - | - | - | (227 | ) | - | (227 | ) | ||||||||||||||||||||||||
Other operations with non-controlling interests | - | - | (63 | ) | - | - | - | (63 | ) | (82 | ) | (145 | ) | |||||||||||||||||||||||
Other items | - | - | (15 | ) | - | - | - | (15 | ) | (6 | ) | (21 | ) | |||||||||||||||||||||||
As of September 30, 2020 | 2,653,124,025 | 8,267 | 107,632 | (12,275 | ) | (24,412,776 | ) | (1,390 | ) | 102,234 | 2,177 | 104,411 |
(a)Treasury shares related to the restricted stock grants.
25
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited) |
3rd quarter 2020 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 1,142 | 1,995 | 13,607 | 16,397 | 1 | - | 33,142 | |||||||||||||||||||||
Intersegment sales | 4,248 | 480 | 4,167 | 63 | 24 | (8,982 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (658 | ) | (5,267 | ) | - | - | (5,925 | ) | ||||||||||||||||||
Revenues from sales | 5,390 | 2,475 | 17,116 | 11,193 | 25 | (8,982 | ) | 27,217 | ||||||||||||||||||||
Operating expenses | (2,435 | ) | (1,880 | ) | (16,799 | ) | (10,301 | ) | (201 | ) | 8,982 | (22,634 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,187 | ) | (342 | ) | (678 | ) | (270 | ) | (16 | ) | - | (3,493 | ) | |||||||||||||||
Operating income | 768 | 253 | (361 | ) | 622 | (192 | ) | - | 1,090 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 251 | 225 | (247 | ) | 14 | (4 | ) | - | 239 | |||||||||||||||||||
Tax on net operating income | (243 | ) | (266 | ) | (51 | ) | (187 | ) | 3 | - | (744 | ) | ||||||||||||||||
Net operating income | 776 | 212 | (659 | ) | 449 | (193 | ) | - | 585 | |||||||||||||||||||
Net cost of net debt | (404 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 21 | |||||||||||||||||||||||||||
Net income - group share | 202 | |||||||||||||||||||||||||||
3rd quarter 2020 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | 33 | - | - | - | - | 33 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 33 | - | - | - | - | 33 | |||||||||||||||||||||
Operating expenses | (51 | ) | (49 | ) | (48 | ) | (6 | ) | - | - | (154 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | - | - | (290 | ) | - | - | - | (290 | ) | |||||||||||||||||||
Operating income (b) | (51 | ) | (16 | ) | (338 | ) | (6 | ) | - | - | (411 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | 8 | (64 | ) | (215 | ) | (6 | ) | - | - | (277 | ) | |||||||||||||||||
Tax on net operating income | 18 | 7 | (18 | ) | - | - | - | 7 | ||||||||||||||||||||
Net operating income (b) | (25 | ) | (73 | ) | (571 | ) | (12 | ) | - | - | (681 | ) | ||||||||||||||||
Net cost of net debt | 29 | |||||||||||||||||||||||||||
Non-controlling interests | 6 | |||||||||||||||||||||||||||
Net income - group share | (646 | ) | ||||||||||||||||||||||||||
(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 | - | - | 95 | (5 | ) | - | ||||||||||||||||||||||
- On net operating income | - | - | 14 | (6 | ) | - | ||||||||||||||||||||||
3rd quarter 2020 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 1,142 | 1,962 | 13,607 | 16,397 | 1 | - | 33,109 | |||||||||||||||||||||
Intersegment sales | 4,248 | 480 | 4,167 | 63 | 24 | (8,982 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (658 | ) | (5,267 | ) | - | - | (5,925 | ) | ||||||||||||||||||
Revenues from sales | 5,390 | 2,442 | 17,116 | 11,193 | 25 | (8,982 | ) | 27,184 | ||||||||||||||||||||
Operating expenses | (2,384 | ) | (1,831 | ) | (16,751 | ) | (10,295 | ) | (201 | ) | 8,982 | (22,480 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,187 | ) | (342 | ) | (388 | ) | (270 | ) | (16 | ) | - | (3,203 | ) | |||||||||||||||
Adjusted operating income | 819 | 269 | (23 | ) | 628 | (192 | ) | - | 1,501 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 243 | 289 | (32 | ) | 20 | (4 | ) | - | 516 | |||||||||||||||||||
Tax on net operating income | (261 | ) | (273 | ) | (33 | ) | (187 | ) | 3 | - | (751 | ) | ||||||||||||||||
Adjusted net operating income | 801 | 285 | (88 | ) | 461 | (193 | ) | - | 1,266 | |||||||||||||||||||
Net cost of net debt | (433 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 15 | |||||||||||||||||||||||||||
Adjusted net income - group share | 848 | |||||||||||||||||||||||||||
3rd quarter 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 1,291 | 874 | 317 | 185 | 20 | 2,687 | ||||||||||||||||||||||
Total divestments | 362 | 380 | 17 | 25 | 2 | 786 | ||||||||||||||||||||||
Cash flow from operating activities | 2,043 | 654 | 1,027 | 1,033 | (406 | ) | 4,351 |
26
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited) |
2nd quarter 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 992 | 3,313 | 9,433 | 11,986 | 6 | - | 25,730 | |||||||||||||||||||||
Intersegment sales | 3,097 | 301 | 2,956 | 107 | 31 | (6,492 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (469 | ) | (3,699 | ) | - | - | (4,168 | ) | ||||||||||||||||||
Revenues from sales | 4,089 | 3,614 | 11,920 | 8,394 | 37 | (6,492 | ) | 21,562 | ||||||||||||||||||||
Operating expenses | (2,405 | ) | (3,406 | ) | (10,895 | ) | (7,931 | ) | (315 | ) | 6,492 | (18,460 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (9,667 | ) | (1,282 | ) | (393 | ) | (229 | ) | (22 | ) | - | (11,593 | ) | |||||||||||||||
Operating income | (7,983 | ) | (1,074 | ) | 632 | 234 | (300 | ) | - | (8,491 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | 17 | 21 | (35 | ) | 22 | 40 | - | 65 | ||||||||||||||||||||
Tax on net operating income | 398 | 322 | (132 | ) | (127 | ) | (26 | ) | - | 435 | ||||||||||||||||||
Net operating income | (7,568 | ) | (731 | ) | 465 | 129 | (286 | ) | - | (7,991 | ) | |||||||||||||||||
Net cost of net debt | (431 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 53 | |||||||||||||||||||||||||||
Net income - group share | (8,369 | ) | ||||||||||||||||||||||||||
2nd quarter 2020 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | (18 | ) | - | - | - | - | (18 | ) | |||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | (18 | ) | - | - | - | - | (18 | ) | |||||||||||||||||||
Operating expenses | (27 | ) | (199 | ) | (48 | ) | 5 | (36 | ) | - | (305 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,338 | ) | (953 | ) | - | - | - | - | (8,291 | ) | ||||||||||||||||||
Operating income (b) | (7,365 | ) | (1,170 | ) | (48 | ) | 5 | (36 | ) | - | (8,614 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | (57 | ) | (217 | ) | (63 | ) | (5 | ) | - | - | (342 | ) | ||||||||||||||||
Tax on net operating income | 63 | 330 | 1 | - | 12 | - | 406 | |||||||||||||||||||||
Net operating income (b) | (7,359 | ) | (1,057 | ) | (110 | ) | - | (24 | ) | - | (8,550 | ) | ||||||||||||||||
Net cost of net debt | 33 | |||||||||||||||||||||||||||
Non-controlling interests | 22 | |||||||||||||||||||||||||||
Net income - group share | (8,495 | ) | ||||||||||||||||||||||||||
(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 | - | - | (26 | ) | (16 | ) | - | |||||||||||||||||||||
- On net operating income | - | - | (86 | ) | (9 | ) | - | |||||||||||||||||||||
2nd quarter 2020 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 992 | 3,331 | 9,433 | 11,986 | 6 | - | 25,748 | |||||||||||||||||||||
Intersegment sales | 3,097 | 301 | 2,956 | 107 | 31 | (6,492 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (469 | ) | (3,699 | ) | - | - | (4,168 | ) | ||||||||||||||||||
Revenues from sales | 4,089 | 3,632 | 11,920 | 8,394 | 37 | (6,492 | ) | 21,580 | ||||||||||||||||||||
Operating expenses | (2,378 | ) | (3,207 | ) | (10,847 | ) | (7,936 | ) | (279 | ) | 6,492 | (18,155 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,329 | ) | (329 | ) | (393 | ) | (229 | ) | (22 | ) | - | (3,302 | ) | |||||||||||||||
Adjusted operating income | (618 | ) | 96 | 680 | 229 | (264 | ) | - | 123 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 74 | 238 | 28 | 27 | 40 | - | 407 | |||||||||||||||||||||
Tax on net operating income | 335 | (8 | ) | (133 | ) | (127 | ) | (38 | ) | - | 29 | |||||||||||||||||
Adjusted net operating income | (209 | ) | 326 | 575 | 129 | (262 | ) | - | 559 | |||||||||||||||||||
Net cost of net debt | (464 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 31 | |||||||||||||||||||||||||||
Adjusted net income - group share | 126 | |||||||||||||||||||||||||||
2nd quarter 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 1,606 | 1,170 | 307 | 174 | 21 | 3,278 | ||||||||||||||||||||||
Total divestments | 204 | 89 | 22 | 26 | 9 | 350 | ||||||||||||||||||||||
Cash flow from operating activities | 910 | 1,389 | 1,080 | 819 | (719 | ) | 3,479 |
27
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited) |
3rd quarter 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 1,631 | 3,667 | 21,338 | 21,951 | 2 | - | 48,589 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (713 | ) | (5,338 | ) | - | - | (6,051 | ) | ||||||||||||||||||
Revenues from sales | 9,392 | 4,240 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,538 | ||||||||||||||||||||
Operating expenses | (3,999 | ) | (3,558 | ) | (27,518 | ) | (15,963 | ) | (163 | ) | 16,845 | (34,356 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,136 | ) | (361 | ) | (413 | ) | (247 | ) | (16 | ) | - | (4,173 | ) | |||||||||||||||
Operating income | 2,257 | 321 | 1,035 | 558 | (162 | ) | - | 4,009 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 77 | 898 | 5 | (15 | ) | 9 | - | 974 | ||||||||||||||||||||
Tax on net operating income | (1,094 | ) | (222 | ) | (221 | ) | (164 | ) | 70 | - | (1,631 | ) | ||||||||||||||||
Net operating income | 1,240 | 997 | 819 | 379 | (83 | ) | - | 3,352 | ||||||||||||||||||||
Net cost of net debt | (507 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (45 | ) | ||||||||||||||||||||||||||
Net income - group share | 2,800 | |||||||||||||||||||||||||||
3rd quarter 2019 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Operating expenses | (100 | ) | (41 | ) | (96 | ) | 22 | - | - | (215 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (153 | ) | (9 | ) | (22 | ) | (2 | ) | - | - | (186 | ) | ||||||||||||||||
Operating income (b) | (253 | ) | (38 | ) | (118 | ) | 20 | - | - | (389 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 599 | (23 | ) | (53 | ) | - | - | 433 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (138 | ) | 8 | (1 | ) | - | - | (282 | ) | |||||||||||||||||
Net operating income (b) | (494 | ) | 423 | (133 | ) | (34 | ) | - | - | (238 | ) | |||||||||||||||||
Net cost of net debt | (4 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 25 | |||||||||||||||||||||||||||
Net income - group share | (217 | ) | ||||||||||||||||||||||||||
(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 | - | - | (94 | ) | 25 | - | ||||||||||||||||||||||
- On net operating income | - | - | (90 | ) | 19 | - | ||||||||||||||||||||||
3rd quarter 2019 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 1,631 | 3,655 | 21,338 | 21,951 | 2 | - | 48,577 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (713 | ) | (5,338 | ) | - | - | (6,051 | ) | ||||||||||||||||||
Revenues from sales | 9,392 | 4,228 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,526 | ||||||||||||||||||||
Operating expenses | (3,899 | ) | (3,517 | ) | (27,422 | ) | (15,985 | ) | (163 | ) | 16,845 | (34,141 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,983 | ) | (352 | ) | (391 | ) | (245 | ) | (16 | ) | - | (3,987 | ) | |||||||||||||||
Adjusted operating income | 2,510 | 359 | 1,153 | 538 | (162 | ) | - | 4,398 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 167 | 299 | 28 | 38 | 9 | - | 541 | |||||||||||||||||||||
Tax on net operating income | (943 | ) | (84 | ) | (229 | ) | (163 | ) | 70 | - | (1,349 | ) | ||||||||||||||||
Adjusted net operating income | 1,734 | 574 | 952 | 413 | (83 | ) | - | 3,590 | ||||||||||||||||||||
Net cost of net debt | (503 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (70 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 3,017 | |||||||||||||||||||||||||||
3rd quarter 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 2,077 | 4,331 | 386 | 276 | 25 | 7,095 | ||||||||||||||||||||||
Total divestments | 23 | 192 | 14 | 30 | 5 | 264 | ||||||||||||||||||||||
Cash flow from operating activities | 5,007 | 401 | 1,575 | 1,483 | (260 | ) | 8,206 |
28
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited) |
9 months 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 3,716 | 10,398 | 41,563 | 47,058 | 7 | - | 102,742 | |||||||||||||||||||||
Intersegment sales | 12,909 | 1,375 | 13,218 | 259 | 83 | (27,844 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (1,777 | ) | (13,609 | ) | - | - | (15,386 | ) | ||||||||||||||||||
Revenues from sales | 16,625 | 11,773 | 53,004 | 33,708 | 90 | (27,844 | ) | 87,356 | ||||||||||||||||||||
Operating expenses | (8,483 | ) | (10,278 | ) | (52,535 | ) | (32,031 | ) | (763 | ) | 27,844 | (76,246 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (14,498 | ) | (1,958 | ) | (1,466 | ) | (743 | ) | (56 | ) | - | (18,721 | ) | |||||||||||||||
Operating income | (6,356 | ) | (463 | ) | (997 | ) | 934 | (729 | ) | - | (7,611 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | 691 | 645 | (339 | ) | 46 | 160 | - | 1,203 | ||||||||||||||||||||
Tax on net operating income | (299 | ) | 64 | 152 | (346 | ) | 5 | - | (424 | ) | ||||||||||||||||||
Net operating income | (5,964 | ) | 246 | (1,184 | ) | 634 | (564 | ) | - | (6,832 | ) | |||||||||||||||||
Net cost of net debt | (1,407 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 106 | |||||||||||||||||||||||||||
Net income - group share | (8,133 | ) | ||||||||||||||||||||||||||
9 months 2020 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | 17 | - | - | - | - | 17 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 17 | - | - | - | - | 17 | |||||||||||||||||||||
Operating expenses | (88 | ) | (367 | ) | (1,685 | ) | (347 | ) | (91 | ) | - | (2,578 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,338 | ) | (953 | ) | (290 | ) | - | - | - | (8,581 | ) | |||||||||||||||||
Operating income (b) | (7,426 | ) | (1,303 | ) | (1,975 | ) | (347 | ) | (91 | ) | - | (11,142 | ) | |||||||||||||||
Net income (loss) from equity affiliates and other items | 79 | (356 | ) | (486 | ) | (11 | ) | - | - | (774 | ) | |||||||||||||||||
Tax on net operating income | 88 | 381 | 408 | 100 | 12 | - | 989 | |||||||||||||||||||||
Net operating income (b) | (7,259 | ) | (1,278 | ) | (2,053 | ) | (258 | ) | (79 | ) | - | (10,927 | ) | |||||||||||||||
Net cost of net debt | (39 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 78 | |||||||||||||||||||||||||||
Net income - group share | (10,888 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
- On operating income | - | - | (1,509 | ) | (239 | ) | - | |||||||||||||||||||||
- On net operating income | - | - | (1,357 | ) | (169 | ) | - | |||||||||||||||||||||
9 months 2020 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 3,716 | 10,381 | 41,563 | 47,058 | 7 | - | 102,725 | |||||||||||||||||||||
Intersegment sales | 12,909 | 1,375 | 13,218 | 259 | 83 | (27,844 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (1,777 | ) | (13,609 | ) | - | - | (15,386 | ) | ||||||||||||||||||
Revenues from sales | 16,625 | 11,756 | 53,004 | 33,708 | 90 | (27,844 | ) | 87,339 | ||||||||||||||||||||
Operating expenses | (8,395 | ) | (9,911 | ) | (50,850 | ) | (31,684 | ) | (672 | ) | 27,844 | (73,668 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,160 | ) | (1,005 | ) | (1,176 | ) | (743 | ) | (56 | ) | - | (10,140 | ) | |||||||||||||||
Adjusted operating income | 1,070 | 840 | 978 | 1,281 | (638 | ) | - | 3,531 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 612 | 1,001 | 147 | 57 | 160 | - | 1,977 | |||||||||||||||||||||
Tax on net operating income | (387 | ) | (317 | ) | (256 | ) | (446 | ) | (7 | ) | - | (1,413 | ) | |||||||||||||||
Adjusted net operating income | 1,295 | 1,524 | 869 | 892 | (485 | ) | - | 4,095 | ||||||||||||||||||||
Net cost of net debt | (1,368 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 28 | |||||||||||||||||||||||||||
Adjusted net income - group share | 2,755 | |||||||||||||||||||||||||||
9 months 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 4,556 | 4,335 | 850 | 519 | 86 | 10,346 | ||||||||||||||||||||||
Total divestments | 687 | 813 | 118 | 97 | 28 | 1,743 | ||||||||||||||||||||||
Cash flow from operating activities | 6,876 | 1,554 | 924 | 1,453 | (1,678 | ) | 9,129 |
29
INFORMATION BY BUSINESS SEGMENT
TOTAL
(unaudited) |
9 months 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 5,698 | 13,875 | 65,558 | 65,901 | 4 | - | 151,036 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (2,250 | ) | (15,922 | ) | - | - | (18,172 | ) | ||||||||||||||||||
Revenues from sales | 28,761 | 15,707 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,864 | ||||||||||||||||||||
Operating expenses | (12,233 | ) | (13,845 | ) | (84,020 | ) | (48,141 | ) | (569 | ) | 50,080 | (108,728 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,352 | ) | (1,004 | ) | (1,176 | ) | (717 | ) | (51 | ) | - | (11,300 | ) | |||||||||||||||
Operating income | 8,176 | 858 | 2,763 | 1,577 | (538 | ) | - | 12,836 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 444 | 1,939 | 265 | 86 | 36 | - | 2,770 | |||||||||||||||||||||
Tax on net operating income | (3,679 | ) | (845 | ) | (467 | ) | (498 | ) | 194 | - | (5,295 | ) | ||||||||||||||||
Net operating income | 4,941 | 1,952 | 2,561 | 1,165 | (308 | ) | - | 10,311 | ||||||||||||||||||||
Net cost of net debt | (1,522 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (122 | ) | ||||||||||||||||||||||||||
Net income - group share | 8,667 | |||||||||||||||||||||||||||
9 months 2019 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | (74 | ) | - | - | - | - | (74 | ) | |||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | (74 | ) | - | - | - | - | (74 | ) | |||||||||||||||||||
Operating expenses | (100 | ) | (153 | ) | 353 | 62 | - | - | 162 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (196 | ) | (20 | ) | (32 | ) | (2 | ) | - | - | (250 | ) | ||||||||||||||||
Operating income (b) | (296 | ) | (247 | ) | 321 | 60 | - | - | (162 | ) | ||||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 1,012 | (70 | ) | (60 | ) | - | - | 792 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (408 | ) | (113 | ) | (14 | ) | - | - | (686 | ) | ||||||||||||||||
Net operating income (b) | (537 | ) | 357 | 138 | (14 | ) | - | - | (56 | ) | ||||||||||||||||||
Net cost of net debt | (12 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 72 | |||||||||||||||||||||||||||
Net income - group share | 4 | |||||||||||||||||||||||||||
(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 | - | - | 392 | 65 | - | |||||||||||||||||||||||
- On net operating income | - | - | 254 | 46 | - | |||||||||||||||||||||||
9 months 2019 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 5,698 | 13,949 | 65,558 | 65,901 | 4 | - | 151,110 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (2,250 | ) | (15,922 | ) | - | - | (18,172 | ) | ||||||||||||||||||
Revenues from sales | 28,761 | 15,781 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,938 | ||||||||||||||||||||
Operating expenses | (12,133 | ) | (13,692 | ) | (84,373 | ) | (48,203 | ) | (569 | ) | 50,080 | (108,890 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,156 | ) | (984 | ) | (1,144 | ) | (715 | ) | (51 | ) | - | (11,050 | ) | |||||||||||||||
Adjusted operating income | 8,472 | 1,105 | 2,442 | 1,517 | (538 | ) | - | 12,998 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 534 | 927 | 335 | 146 | 36 | - | 1,978 | |||||||||||||||||||||
Tax on net operating income | (3,528 | ) | (437 | ) | (354 | ) | (484 | ) | 194 | - | (4,609 | ) | ||||||||||||||||
Adjusted net operating income | 5,478 | 1,595 | 2,423 | 1,179 | (308 | ) | - | 10,367 | ||||||||||||||||||||
Net cost of net debt | (1,510 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (194 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 8,663 | |||||||||||||||||||||||||||
9 months 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 6,359 | 6,306 | 1,034 | 803 | 76 | 14,578 | ||||||||||||||||||||||
Total divestments | 112 | 766 | 253 | 187 | 8 | 1,326 | ||||||||||||||||||||||
Cash flow from operating activities | 12,711 | 1,934 | 2,695 | 2,326 | (1,580 | ) | 18,086 |
30
Reconciliation of the information by business segment with Consolidated Financial Statements
TOTAL
(unaudited) |
Consolidated | ||||||||||||
3rd quarter 2020 | statement | |||||||||||
(M$) | Adjusted | Adjustments(a) | of income | |||||||||
Sales | 33,109 | 33 | 33,142 | |||||||||
Excise taxes | (5,925 | ) | - | (5,925 | ) | |||||||
Revenues from sales | 27,184 | 33 | 27,217 | |||||||||
Purchases net of inventory variation | (16,942 | ) | 57 | (16,885 | ) | |||||||
Other operating expenses | (5,399 | ) | (211 | ) | (5,610 | ) | ||||||
Exploration costs | (139 | ) | - | (139 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,203 | ) | (290 | ) | (3,493 | ) | ||||||
Other income | 310 | 147 | 457 | |||||||||
Other expense | (115 | ) | (166 | ) | (281 | ) | ||||||
Financial interest on debt | (549 | ) | 2 | (547 | ) | |||||||
Financial income and expense from cash & cash equivalents | 49 | 40 | 89 | |||||||||
Cost of net debt | (500 | ) | 42 | (458 | ) | |||||||
Other financial income | 134 | - | 134 | |||||||||
Other financial expense | (165 | ) | - | (165 | ) | |||||||
Net income (loss) from equity affiliates | 352 | (258 | ) | 94 | ||||||||
Income taxes | (684 | ) | (6 | ) | (690 | ) | ||||||
Consolidated net income | 833 | (652 | ) | 181 | ||||||||
Group share | 848 | (646 | ) | 202 | ||||||||
Non-controlling interests | (15 | ) | (6 | ) | (21 | ) | ||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||
Consolidated | ||||||||||||
3rd quarter 2019 | statement | |||||||||||
(M$) | Adjusted | Adjustments(a) | of income | |||||||||
Sales | 48,577 | 12 | 48,589 | |||||||||
Excise taxes | (6,051 | ) | - | (6,051 | ) | |||||||
Revenues from sales | 42,526 | 12 | 42,538 | |||||||||
Purchases net of inventory variation | (27,805 | ) | (93 | ) | (27,898 | ) | ||||||
Other operating expenses | (6,240 | ) | (122 | ) | (6,362 | ) | ||||||
Exploration costs | (96 | ) | - | (96 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,987 | ) | (186 | ) | (4,173 | ) | ||||||
Other income | 167 | - | 167 | |||||||||
Other expense | (132 | ) | (427 | ) | (559 | ) | ||||||
Financial interest on debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Financial income and expense from cash & cash equivalents | - | - | - | |||||||||
Cost of net debt | (594 | ) | (4 | ) | (598 | ) | ||||||
Other financial income | 163 | - | 163 | |||||||||
Other financial expense | (178 | ) | - | (178 | ) | |||||||
Net income (loss) from equity affiliates | 521 | 860 | 1,381 | |||||||||
Income taxes | (1,258 | ) | (282 | ) | (1,540 | ) | ||||||
Consolidated net income | 3,087 | (242 | ) | 2,845 | ||||||||
Group share | 3,017 | (217 | ) | 2,800 | ||||||||
Non-controlling interests | 70 | (25 | ) | 45 | ||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
31
Reconciliation of the information by business segment with Consolidated Financial Statements
TOTAL
(unaudited)
Consolidated | ||||||||||||
9 months 2020 | statement of | |||||||||||
(M$) | Adjusted | Adjustments(a) | income | |||||||||
Sales | 102,725 | 17 | 102,742 | |||||||||
Excise taxes | (15,386 | ) | - | (15,386 | ) | |||||||
Revenues from sales | 87,339 | 17 | 87,356 | |||||||||
Purchases net of inventory variation | (54,891 | ) | (2,087 | ) | (56,978 | ) | ||||||
Other operating expenses | (18,384 | ) | (491 | ) | (18,875 | ) | ||||||
Exploration costs | (393 | ) | - | (393 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (10,140 | ) | (8,581 | ) | (18,721 | ) | ||||||
Other income | 1,130 | 269 | 1,399 | |||||||||
Other expense | (409 | ) | (400 | ) | (809 | ) | ||||||
Financial interest on debt | (1,643 | ) | (3 | ) | (1,646 | ) | ||||||
Financial income and expense from cash & cash equivalents | 36 | (52 | ) | (16 | ) | |||||||
Cost of net debt | (1,607 | ) | (55 | ) | (1,662 | ) | ||||||
Other financial income | 741 | - | 741 | |||||||||
Other financial expense | (506 | ) | (1 | ) | (507 | ) | ||||||
Net income (loss) from equity affiliates | 1,021 | (642 | ) | 379 | ||||||||
Income taxes | (1,174 | ) | 1,005 | (169 | ) | |||||||
Consolidated net income | 2,727 | (10,966 | ) | (8,239 | ) | |||||||
Group share | 2,755 | (10,888 | ) | (8,133 | ) | |||||||
Non-controlling interests | (28 | ) | (78 | ) | (106 | ) | ||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||
Consolidated | ||||||||||||
9 months 2019 | statement of | |||||||||||
(M$) | Adjusted | Adjustments(a) | income | |||||||||
Sales | 151,110 | (74 | ) | 151,036 | ||||||||
Excise taxes | (18,172 | ) | - | (18,172 | ) | |||||||
Revenues from sales | 132,938 | (74 | ) | 132,864 | ||||||||
Purchases net of inventory variation | (88,338 | ) | 329 | (88,009 | ) | |||||||
Other operating expenses | (19,998 | ) | (167 | ) | (20,165 | ) | ||||||
Exploration costs | (554 | ) | - | (554 | ) | |||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (11,050 | ) | (250 | ) | (11,300 | ) | ||||||
Other income | 620 | 115 | 735 | |||||||||
Other expense | (322 | ) | (635 | ) | (957 | ) | ||||||
Financial interest on debt | (1,715 | ) | (12 | ) | (1,727 | ) | ||||||
Financial income and expense from cash & cash equivalents | (70 | ) | - | (70 | ) | |||||||
Cost of net debt | (1,785 | ) | (12 | ) | (1,797 | ) | ||||||
Other financial income | 649 | - | 649 | |||||||||
Other financial expense | (561 | ) | - | (561 | ) | |||||||
Net income (loss) from equity affiliates | 1,592 | 1,312 | 2,904 | |||||||||
Income taxes | (4,334 | ) | (686 | ) | (5,020 | ) | ||||||
Consolidated net income | 8,857 | (68 | ) | 8,789 | ||||||||
Group share | 8,663 | 4 | 8,667 | |||||||||
Non-controlling interests | 194 | (72 | ) | 122 | ||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
|
32
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST NINE MONTHS 2020
(unaudited)
1) Accounting policies
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).
The interim consolidated financial statements of TOTAL SE and its subsidiaries (the Group) as of September 30, 2020, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.
The accounting principles applied for the consolidated financial statements at September 30, 2020, are consistent with those used for the financial statements at December 31, 2019, except for standards or amendments that must be applied for periods beginning January 1, 2020.
On January 1, 2020, the Group applied the amendments to IFRS9 and IFRS7 relating to the IBOR reform. The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform, and therefore maintain the hedge accounting qualification of interest rate derivatives. The Group is currently assessing the future impacts of these index changes.
The preparation of financial statements in accordance with IFRS for the closing as of September 30, 2020 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.
These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.
The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2019.
The interim consolidated financial statements are impacted by the Covid-19 and oil crises described in note 7 Other risks and contingent liabilities. The Group has taken this environment into account in its estimates, notably those relating to inventory valuation, asset impairments, employee benefits and income taxes.
At the end of the second quarter, the Group decided to revise the price assumptions used for its assets impairment tests. Based on these new assumptions, asset impairments were recorded during the period. In line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, the Group has reviewed its oil assets that can be qualified as “stranded”, and therefore has decided to impair its oil sands assets in Canada. These impairments and revised assumptions are presented in note 3.4 Asset impairment.
Moreover, the value of petroleum and petrochemical inventories that are measured, according to the FIFO (First-in, First-Out) method, deteriorated as a result of the significant decrease in prices during the period, especially in the Refining and Chemicals business segment.
Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.
Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.
33
2) Changes in the Group structure
2.1) Main acquisitions and divestments
➣ Integrated Gas, Renewables & Power
• | On February 28, 2020, TOTAL finalized the acquisition of a 37.4% interest in Adani Gas Limited, one of the four main distributors of city gas in India. To acquire 37.4% of equity shares of Adani Gas Limited, TOTAL launched a tender offer to public shareholders on October 14, 2019 that ended on January 14, 2020, then acquired the remaining shares from Adani on February 27 and 28, 2020. |
➣ Exploration & Production
• | On March 31, 2020, TOTAL finalized the sale of its subsidiary Total E&P Deep Offshore Borneo BV which holds an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei, to Shell. |
• | On August 6, 2020, TOTAL closed the sale of UK North Sea non-core assets to NEO Energy. |
2.2) Divestment projects
➣ Exploration & Production
• | On July 30, 2020, TOTAL announced that its 58% owned affiliate Total Gabon has signed an agreement with Perenco to divest its interests in seven mature non-operated offshore fields, along with its interests and operatorship in the Cap Lopez oil terminal. The transaction remains subject to approval by the Gabonese authorities. |
As of September 30, 2020, the assets and liabilities have been respectively classified in the consolidated balance sheet as “assets classified as held for sale” for an amount of $379 million and “liabilities classified as held for sale” for an amount of $145 million. These assets mainly include tangible assets.
➣ Refining & Chemicals
• | On July 27, 2020, TOTAL signed an agreement to sell the Lindsey refinery and its associated logistic assets, as well as all the related rights and obligations, to the Prax Group. |
As of September 30, 2020, the assets and liabilities have been respectively classified in the consolidated balance sheet as “assets classified as held for sale” for an amount of $188 million and “liabilities classified as held for sale” for an amount of $281 million.
34
3) Business segment information
Description of the business segments
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 and which is reviewed by the main operational decision-making body of the Group, namely the Executive Committee.
The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.
Sales prices between business segments approximate market prices.
The organization of the Group’s activities is structured around the four followings segments:
- | An Exploration & Production segment; |
- | An Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon electricity businesses. It includes the upstream and midstream LNG activity; |
- | A Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining, petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping; |
- | A Marketing & Services segment including the global activities of supply and marketing in the field of petroleum products; |
In addition the Corporate segment includes holdings operating and financial activities.
Adjustment items
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.
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 assets 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) The 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 prices differential 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 methods.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as adjustment items reflects for certain transactions differences between the internal measure 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.
35
TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in the Group’s internal economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.
36
3.1) Information by business segment
9 months 2020 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 3,716 | 10,398 | 41,563 | 47,058 | 7 | - | 102,742 | |||||||||||||||||||||
Intersegment sales | 12,909 | 1,375 | 13,218 | 259 | 83 | (27,844 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (1,777 | ) | (13,609 | ) | - | - | (15,386 | ) | ||||||||||||||||||
Revenues from sales | 16,625 | 11,773 | 53,004 | 33,708 | 90 | (27,844 | ) | 87,356 | ||||||||||||||||||||
Operating expenses | (8,483 | ) | (10,278 | ) | (52,535 | ) | (32,031 | ) | (763 | ) | 27,844 | (76,246 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (14,498 | ) | (1,958 | ) | (1,466 | ) | (743 | ) | (56 | ) | - | (18,721 | ) | |||||||||||||||
Operating income | (6,356 | ) | (463 | ) | (997 | ) | 934 | (729 | ) | - | (7,611 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | 691 | 645 | (339 | ) | 46 | 160 | - | 1,203 | ||||||||||||||||||||
Tax on net operating income | (299 | ) | 64 | 152 | (346 | ) | 5 | - | (424 | ) | ||||||||||||||||||
Net operating income | (5,964 | ) | 246 | (1,184 | ) | 634 | (564 | ) | - | (6,832 | ) | |||||||||||||||||
Net cost of net debt | (1,407 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 106 | |||||||||||||||||||||||||||
Net income - group share | (8,133 | ) | ||||||||||||||||||||||||||
9 months 2020 (adjustments)(a) | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate
| Intercompany
| Total
| |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | - | 17 | - | - | - | - | 17 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 17 | - | - | - | - | 17 | |||||||||||||||||||||
Operating expenses | (88 | ) | (367 | ) | (1,685 | ) | (347 | ) | (91 | ) | - | (2,578 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,338 | ) | (953 | ) | (290 | ) | - | - | - | (8,581 | ) | |||||||||||||||||
Operating income (b) | (7,426 | ) | (1,303 | ) | (1,975 | ) | (347 | ) | (91 | ) | - | (11,142 | ) | |||||||||||||||
Net income (loss) from equity affiliates and other items | 79 | (356 | ) | (486 | ) | (11 | ) | - | - | (774 | ) | |||||||||||||||||
Tax on net operating income | 88 | 381 | 408 | 100 | 12 | - | 989 | |||||||||||||||||||||
Net operating income (b) | (7,259 | ) | (1,278 | ) | (2,053 | ) | (258 | ) | (79 | ) | - | (10,927 | ) | |||||||||||||||
Net cost of net debt | (39 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 78 | |||||||||||||||||||||||||||
Net income - group share | (10,888 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
- On operating income | - | - | (1,509 | ) | (239 | ) | - | |||||||||||||||||||||
- On net operating income | - | - | (1,357 | ) | (169 | ) | - | |||||||||||||||||||||
9 months 2020 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Non-Group sales | 3,716 | 10,381 | 41,563 | 47,058 | 7 | - | 102,725 | |||||||||||||||||||||
Intersegment sales | 12,909 | 1,375 | 13,218 | 259 | 83 | (27,844 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (1,777 | ) | (13,609 | ) | - | - | (15,386 | ) | ||||||||||||||||||
Revenues from sales | 16,625 | 11,756 | 53,004 | 33,708 | 90 | (27,844 | ) | 87,339 | ||||||||||||||||||||
Operating expenses | (8,395 | ) | (9,911 | ) | (50,850 | ) | (31,684 | ) | (672 | ) | 27,844 | (73,668 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (7,160 | ) | (1,005 | ) | (1,176 | ) | (743 | ) | (56 | ) | - | (10,140 | ) | |||||||||||||||
Adjusted operating income | 1,070 | 840 | 978 | 1,281 | (638 | ) | - | 3,531 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 612 | 1,001 | 147 | 57 | 160 | - | 1,977 | |||||||||||||||||||||
Tax on net operating income | (387 | ) | (317 | ) | (256 | ) | (446 | ) | (7 | ) | - | (1,413 | ) | |||||||||||||||
Adjusted net operating income | 1,295 | 1,524 | 869 | 892 | (485 | ) | - | 4,095 | ||||||||||||||||||||
Net cost of net debt | (1,368 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 28 | |||||||||||||||||||||||||||
Adjusted net income - group share | 2,755 | |||||||||||||||||||||||||||
9 months 2020 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$) | ||||||||||||||||||||||||||||
Total expenditures | 4,556 | 4,335 | 850 | 519 | 86 | 10,346 | ||||||||||||||||||||||
Total divestments | 687 | 813 | 118 | 97 | 28 | 1,743 | ||||||||||||||||||||||
Cash flow from operating activities | 6,876 | 1,554 | 924 | 1,453 | (1,678 | ) | 9,129 |
37
9 months 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 5,698 | 13,875 | 65,558 | 65,901 | 4 | - | 151,036 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (2,250 | ) | (15,922 | ) | - | - | (18,172 | ) | ||||||||||||||||||
Revenues from sales | 28,761 | 15,707 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,864 | ||||||||||||||||||||
Operating expenses | (12,233 | ) | (13,845 | ) | (84,020 | ) | (48,141 | ) | (569 | ) | 50,080 | (108,728 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,352 | ) | (1,004 | ) | (1,176 | ) | (717 | ) | (51 | ) | - | (11,300 | ) | |||||||||||||||
Operating income | 8,176 | 858 | 2,763 | 1,577 | (538 | ) | - | 12,836 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 444 | 1,939 | 265 | 86 | 36 | - | 2,770 | |||||||||||||||||||||
Tax on net operating income | (3,679 | ) | (845 | ) | (467 | ) | (498 | ) | 194 | - | (5,295 | ) | ||||||||||||||||
Net operating income | 4,941 | 1,952 | 2,561 | 1,165 | (308 | ) | - | 10,311 | ||||||||||||||||||||
Net cost of net debt | (1,522 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (122 | ) | ||||||||||||||||||||||||||
Net income - group share | 8,667 | |||||||||||||||||||||||||||
9 months 2019 (adjustments)(a) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | - | (74 | ) | - | - | - | - | (74 | ) | |||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | (74 | ) | - | - | - | - | (74 | ) | |||||||||||||||||||
Operating expenses | (100 | ) | (153 | ) | 353 | 62 | - | - | 162 | |||||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (196 | ) | (20 | ) | (32 | ) | (2 | ) | - | - | (250 | ) | ||||||||||||||||
Operating income (b) | (296 | ) | (247 | ) | 321 | 60 | - | - | (162 | ) | ||||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 1,012 | (70 | ) | (60 | ) | - | - | 792 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (408 | ) | (113 | ) | (14 | ) | - | - | (686 | ) | ||||||||||||||||
Net operating income (b) | (537 | ) | 357 | 138 | (14 | ) | - | - | (56 | ) | ||||||||||||||||||
Net cost of net debt | (12 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 72 | |||||||||||||||||||||||||||
Net income - group share | 4 | |||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||||||
(b) Of which inventory valuation effect | ||||||||||||||||||||||||||||
- On operating income | - | - | 392 | 65 | - | |||||||||||||||||||||||
- On net operating income | - | - | 254 | 46 | - | |||||||||||||||||||||||
9 months 2019 (adjusted) | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 5,698 | 13,949 | 65,558 | 65,901 | 4 | - | 151,110 | |||||||||||||||||||||
Intersegment sales | 23,063 | 1,832 | 24,651 | 456 | 78 | (50,080 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (2,250 | ) | (15,922 | ) | - | - | (18,172 | ) | ||||||||||||||||||
Revenues from sales | 28,761 | 15,781 | 87,959 | 50,435 | 82 | (50,080 | ) | 132,938 | ||||||||||||||||||||
Operating expenses | (12,133 | ) | (13,692 | ) | (84,373 | ) | (48,203 | ) | (569 | ) | 50,080 | (108,890 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (8,156 | ) | (984 | ) | (1,144 | ) | (715 | ) | (51 | ) | - | (11,050 | ) | |||||||||||||||
Adjusted operating income | 8,472 | 1,105 | 2,442 | 1,517 | (538 | ) | - | 12,998 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 534 | 927 | 335 | 146 | 36 | - | 1,978 | |||||||||||||||||||||
Tax on net operating income | (3,528 | ) | (437 | ) | (354 | ) | (484 | ) | 194 | - | (4,609 | ) | ||||||||||||||||
Adjusted net operating income | 5,478 | 1,595 | 2,423 | 1,179 | (308 | ) | - | 10,367 | ||||||||||||||||||||
Net cost of net debt | (1,510 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (194 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 8,663 | |||||||||||||||||||||||||||
9 months 2019 | Exploration & Production | Integrated Gas, Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Total expenditures | 6,359 | 6,306 | 1,034 | 803 | 76 | 14,578 | ||||||||||||||||||||||
Total divestments | 112 | 766 | 253 | 187 | 8 | 1,326 | ||||||||||||||||||||||
Cash flow from operating activities | 12,711 | 1,934 | 2,695 | 2,326 | (1,580 | ) | 18,086 |
38
3rd quarter 2020 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 1,142 | 1,995 | 13,607 | 16,397 | 1 | - | 33,142 | |||||||||||||||||||||
Intersegment sales | 4,248 | 480 | 4,167 | 63 | 24 | (8,982 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (658 | ) | (5,267 | ) | - | - | (5,925 | ) | ||||||||||||||||||
Revenues from sales | 5,390 | 2,475 | 17,116 | 11,193 | 25 | (8,982 | ) | 27,217 | ||||||||||||||||||||
Operating expenses | (2,435 | ) | (1,880 | ) | (16,799 | ) | (10,301 | ) | (201 | ) | 8,982 | (22,634 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,187 | ) | (342 | ) | (678 | ) | (270 | ) | (16 | ) | - | (3,493 | ) | |||||||||||||||
Operating income | 768 | 253 | (361 | ) | 622 | (192 | ) | - | 1,090 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 251 | 225 | (247 | ) | 14 | (4 | ) | - | 239 | |||||||||||||||||||
Tax on net operating income | (243 | ) | (266 | ) | (51 | ) | (187 | ) | 3 | - | (744 | ) | ||||||||||||||||
Net operating income | 776 | 212 | (659 | ) | 449 | (193 | ) | - | 585 | |||||||||||||||||||
Net cost of net debt | (404 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 21 | |||||||||||||||||||||||||||
Net income - group share | 202 | |||||||||||||||||||||||||||
3rd quarter 2020 (adjustments)(a) | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | - | 33 | - | - | - | - | 33 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 33 | - | - | - | - | 33 | |||||||||||||||||||||
Operating expenses | (51 | ) | (49 | ) | (48 | ) | (6 | ) | - | - | (154 | ) | ||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | - | - | (290 | ) | - | - | - | (290 | ) | |||||||||||||||||||
Operating income (b) | (51 | ) | (16 | ) | (338 | ) | (6 | ) | - | - | (411 | ) | ||||||||||||||||
Net income (loss) from equity affiliates and other items | 8 | (64 | ) | (215 | ) | (6 | ) | - | - | (277 | ) | |||||||||||||||||
Tax on net operating income | 18 | 7 | (18 | ) | - | - | - | 7 | ||||||||||||||||||||
Net operating income (b) | (25 | ) | (73 | ) | (571 | ) | (12 | ) | - | - | (681 | ) | ||||||||||||||||
Net cost of net debt | 29 | |||||||||||||||||||||||||||
Non-controlling interests | 6 | |||||||||||||||||||||||||||
Net income - group share | (646 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||||||
- On operating income | - | - | 95 | (5 | ) | - | ||||||||||||||||||||||
- On net operating income | - | - | 14 | (6 | ) | - | ||||||||||||||||||||||
3rd quarter 2020 (adjusted) | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 1,142 | 1,962 | 13,607 | 16,397 | 1 | - | 33,109 | |||||||||||||||||||||
Intersegment sales | 4,248 | 480 | 4,167 | 63 | 24 | (8,982 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (658 | ) | (5,267 | ) | - | - | (5,925 | ) | ||||||||||||||||||
Revenues from sales | 5,390 | 2,442 | 17,116 | 11,193 | 25 | (8,982 | ) | 27,184 | ||||||||||||||||||||
Operating expenses | (2,384 | ) | (1,831 | ) | (16,751 | ) | (10,295 | ) | (201 | ) | 8,982 | (22,480 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,187 | ) | (342 | ) | (388 | ) | (270 | ) | (16 | ) | - | (3,203 | ) | |||||||||||||||
Adjusted operating income | 819 | 269 | (23 | ) | 628 | (192 | ) | - | 1,501 | |||||||||||||||||||
Net income (loss) from equity affiliates and other items | 243 | 289 | (32 | ) | 20 | (4 | ) | - | 516 | |||||||||||||||||||
Tax on net operating income | (261 | ) | (273 | ) | (33 | ) | (187 | ) | 3 | - | (751 | ) | ||||||||||||||||
Adjusted net operating income | 801 | 285 | (88 | ) | 461 | (193 | ) | - | 1,266 | |||||||||||||||||||
Net cost of net debt | (433 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 15 | |||||||||||||||||||||||||||
Adjusted net income - group share | 848 | |||||||||||||||||||||||||||
3rd quarter 2020 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Total expenditures | 1,291 | 874 | 317 | 185 | 20 | 2,687 | ||||||||||||||||||||||
Total divestments | 362 | 380 | 17 | 25 | 2 | 786 | ||||||||||||||||||||||
Cash flow from operating activities | 2,043 | 654 | 1,027 | 1,033 | (406 | ) | 4,351 |
39
3rd quarter 2019 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 1,631 | 3,667 | 21,338 | 21,951 | 2 | - | 48,589 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (713 | ) | (5,338 | ) | - | - | (6,051 | ) | ||||||||||||||||||
Revenues from sales | 9,392 | 4,240 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,538 | ||||||||||||||||||||
Operating expenses | (3,999 | ) | (3,558 | ) | (27,518 | ) | (15,963 | ) | (163 | ) | 16,845 | (34,356 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,136 | ) | (361 | ) | (413 | ) | (247 | ) | (16 | ) | - | (4,173 | ) | |||||||||||||||
Operating income | 2,257 | 321 | 1,035 | 558 | (162 | ) | - | 4,009 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 77 | 898 | 5 | (15 | ) | 9 | - | 974 | ||||||||||||||||||||
Tax on net operating income | (1,094 | ) | (222 | ) | (221 | ) | (164 | ) | 70 | - | (1,631 | ) | ||||||||||||||||
Net operating income | 1,240 | 997 | 819 | 379 | (83 | ) | - | 3,352 | ||||||||||||||||||||
Net cost of net debt | (507 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (45 | ) | ||||||||||||||||||||||||||
Net income - group share | 2,800 | |||||||||||||||||||||||||||
3rd quarter 2019 (adjustments)(a) | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | - | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Intersegment sales | - | - | - | - | - | - | - | |||||||||||||||||||||
Excise taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Revenues from sales | - | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Operating expenses | (100 | ) | (41 | ) | (96 | ) | 22 | - | - | (215 | ) | |||||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (153 | ) | (9 | ) | (22 | ) | (2 | ) | - | - | (186 | ) | ||||||||||||||||
Operating income (b) | (253 | ) | (38 | ) | (118 | ) | 20 | - | - | (389 | ) | |||||||||||||||||
Net income (loss) from equity affiliates and other items | (90 | ) | 599 | (23 | ) | (53 | ) | - | - | 433 | ||||||||||||||||||
Tax on net operating income | (151 | ) | (138 | ) | 8 | (1 | ) | - | - | (282 | ) | |||||||||||||||||
Net operating income (b) | (494 | ) | 423 | (133 | ) | (34 | ) | - | - | (238 | ) | |||||||||||||||||
Net cost of net debt | (4 | ) | ||||||||||||||||||||||||||
Non-controlling interests | 25 | |||||||||||||||||||||||||||
Net income - group share | (217 | ) | ||||||||||||||||||||||||||
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
| |||||||||||||||||||||||||||
(b) Of which inventory valuation effect |
| |||||||||||||||||||||||||||
- On operating income | - | - | (94 | ) | 25 | - | ||||||||||||||||||||||
- On net operating income | - | - | (90 | ) | 19 | - | ||||||||||||||||||||||
3rd quarter 2019 (adjusted) | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Non-Group sales | 1,631 | 3,655 | 21,338 | 21,951 | 2 | - | 48,577 | |||||||||||||||||||||
Intersegment sales | 7,761 | 573 | 8,341 | 155 | 15 | (16,845 | ) | - | ||||||||||||||||||||
Excise taxes | - | - | (713 | ) | (5,338 | ) | - | - | (6,051 | ) | ||||||||||||||||||
Revenues from sales | 9,392 | 4,228 | 28,966 | 16,768 | 17 | (16,845 | ) | 42,526 | ||||||||||||||||||||
Operating expenses | (3,899 | ) | (3,517 | ) | (27,422 | ) | (15,985 | ) | (163 | ) | 16,845 | (34,141 | ) | |||||||||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (2,983 | ) | (352 | ) | (391 | ) | (245 | ) | (16 | ) | - | (3,987 | ) | |||||||||||||||
Adjusted operating income | 2,510 | 359 | 1,153 | 538 | (162 | ) | - | 4,398 | ||||||||||||||||||||
Net income (loss) from equity affiliates and other items | 167 | 299 | 28 | 38 | 9 | - | 541 | |||||||||||||||||||||
Tax on net operating income | (943 | ) | (84 | ) | (229 | ) | (163 | ) | 70 | - | (1,349 | ) | ||||||||||||||||
Adjusted net operating income | 1,734 | 574 | 952 | 413 | (83 | ) | - | 3,590 | ||||||||||||||||||||
Net cost of net debt | (503 | ) | ||||||||||||||||||||||||||
Non-controlling interests | (70 | ) | ||||||||||||||||||||||||||
Adjusted net income - group share | 3,017 | |||||||||||||||||||||||||||
3rd quarter 2019 | Exploration & Production
| Integrated Gas, Renewables & Power
| Refining & Chemicals
| Marketing & Services
| Corporate | Intercompany | Total | |||||||||||||||||||||
(M$)
| ||||||||||||||||||||||||||||
Total expenditures | 2,077 | 4,331 | 386 | 276 | 25 | 7,095 | ||||||||||||||||||||||
Total divestments | 23 | 192 | 14 | 30 | 5 | 264 | ||||||||||||||||||||||
Cash flow from operating activities | 5,007 | 401 | 1,575 | 1,483 | (260 | ) | 8,206 |
40
3.2) Reconciliation of the information by business segment with consolidated financial statements
9 months 2020 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| ||||||||||||
Sales | 102,725 | 17 | 102,742 | |||||||||
Excise taxes | (15,386 | ) | - | (15,386) | ||||||||
Revenues from sales | 87,339 | 17 | 87,356 | |||||||||
Purchases net of inventory variation | (54,891 | ) | (2,087 | ) | (56,978) | |||||||
Other operating expenses | (18,384 | ) | (491 | ) | (18,875) | |||||||
Exploration costs | (393 | ) | - | (393) | ||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (10,140 | ) | (8,581 | ) | (18,721) | |||||||
Other income | 1,130 | 269 | 1,399 | |||||||||
Other expense | (409 | ) | (400 | ) | (809) | |||||||
Financial interest on debt | (1,643 | ) | (3 | ) | (1,646) | |||||||
Financial income and expense from cash & cash equivalents | 36 | (52 | ) | (16) | ||||||||
Cost of net debt | (1,607 | ) | (55 | ) | (1,662) | |||||||
Other financial income | 741 | - | 741 | |||||||||
Other financial expense | (506 | ) | (1 | ) | (507) | |||||||
Net income (loss) from equity affiliates | 1,021 | (642 | ) | 379 | ||||||||
Income taxes | (1,174 | ) | 1,005 | (169) | ||||||||
| ||||||||||||
Consolidated net income | 2,727 | (10,966 | ) | (8,239) | ||||||||
Group share | 2,755 | (10,888 | ) | (8,133) | ||||||||
Non-controlling interests | (28 | ) | (78 | ) | (106) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
9 months 2019 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| ||||||||||||
Sales | 151,110 | (74 | ) | 151,036 | ||||||||
Excise taxes | (18,172 | ) | - | (18,172) | ||||||||
Revenues from sales | 132,938 | (74 | ) | 132,864 | ||||||||
Purchases net of inventory variation | (88,338 | ) | 329 | (88,009) | ||||||||
Other operating expenses | (19,998 | ) | (167 | ) | (20,165) | |||||||
Exploration costs | (554 | ) | - | (554) | ||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (11,050 | ) | (250 | ) | (11,300) | |||||||
Other income | 620 | 115 | 735 | |||||||||
Other expense | (322 | ) | (635 | ) | (957) | |||||||
Financial interest on debt | (1,715 | ) | (12 | ) | (1,727) | |||||||
Financial income and expense from cash & cash equivalents | (70 | ) | - | (70) | ||||||||
Cost of net debt | (1,785 | ) | (12 | ) | (1,797) | |||||||
Other financial income | 649 | - | 649 | |||||||||
Other financial expense | (561 | ) | - | (561) | ||||||||
Net income (loss) from equity affiliates | 1,592 | 1,312 | 2,904 | |||||||||
Income taxes | (4,334 | ) | (686 | ) | (5,020) | |||||||
| ||||||||||||
Consolidated net income | 8,857 | (68 | ) | 8,789 | ||||||||
Group share | 8,663 | 4 | 8,667 | |||||||||
Non-controlling interests | 194 | (72 | ) | 122 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
41
3rd quarter 2020 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| ||||||||||||
Sales | 33,109 | 33 | 33,142 | |||||||||
Excise taxes | (5,925 | ) | - | (5,925) | ||||||||
Revenues from sales | 27,184 | 33 | 27,217 | |||||||||
Purchases net of inventory variation | (16,942 | ) | 57 | (16,885) | ||||||||
Other operating expenses | (5,399 | ) | (211 | ) | (5,610) | |||||||
Exploration costs | (139 | ) | - | (139) | ||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,203 | ) | (290 | ) | (3,493) | |||||||
Other income | 310 | 147 | 457 | |||||||||
Other expense | (115 | ) | (166 | ) | (281) | |||||||
Financial interest on debt | (549 | ) | 2 | (547) | ||||||||
Financial income and expense from cash & cash equivalents | 49 | 40 | 89 | |||||||||
Cost of net debt | (500 | ) | 42 | (458) | ||||||||
Other financial income | 134 | - | 134 | |||||||||
Other financial expense | (165 | ) | - | (165) | ||||||||
Net income (loss) from equity affiliates | 352 | (258 | ) | 94 | ||||||||
Income taxes | (684 | ) | (6 | ) | (690) | |||||||
| ||||||||||||
Consolidated net income | 833 | (652 | ) | 181 | ||||||||
Group share | 848 | (646 | ) | 202 | ||||||||
Non-controlling interests | (15 | ) | (6 | ) | (21) |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
3rd quarter 2019 (M$) | Adjusted | Adjustments(a) | Consolidated statement of income | |||||||||
| ||||||||||||
Sales | 48,577 | 12 | 48,589 | |||||||||
Excise taxes | (6,051 | ) | - | (6,051) | ||||||||
Revenues from sales | 42,526 | 12 | 42,538 | |||||||||
Purchases net of inventory variation | (27,805 | ) | (93 | ) | (27,898) | |||||||
Other operating expenses | (6,240 | ) | (122 | ) | (6,362) | |||||||
Exploration costs | (96 | ) | - | (96) | ||||||||
Depreciation, depletion and impairment of tangible assets and mineral interests | (3,987 | ) | (186 | ) | (4,173) | |||||||
Other income | 167 | - | 167 | |||||||||
Other expense | (132 | ) | (427 | ) | (559) | |||||||
Financial interest on debt | (594 | ) | (4 | ) | (598) | |||||||
Financial income and expense from cash & cash equivalents | - | - | - | |||||||||
Cost of net debt | (594 | ) | (4 | ) | (598) | |||||||
Other financial income | 163 | - | 163 | |||||||||
Other financial expense | (178 | ) | - | (178) | ||||||||
Net income (loss) from equity affiliates | 521 | 860 | 1,381 | |||||||||
Income taxes | (1,258 | ) | (282 | ) | (1,540) | |||||||
| ||||||||||||
Consolidated net income | 3,087 | (242 | ) | 2,845 | ||||||||
Group share | 3,017 | (217 | ) | 2,800 | ||||||||
Non-controlling interests | 70 | (25 | ) | 45 |
(a) | Adjustments include special items, inventory valuation effect and the effect of changes in fair value. |
42
3.3) Adjustment items
The detail of the adjustment items is presented in the table below.
ADJUSTMENTS TO OPERATING INCOME
(M$) | Exploration & Production | Integrated Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||||
3rd quarter 2020 | Inventory valuation effect | - | - | 95 | (5 | ) | - | 90 | ||||||||||||||||||||
Effect of changes in fair value | - | 66 | - | - | - | 66 | ||||||||||||||||||||||
Restructuring charges | (22 | ) | (10 | ) | - | - | - | (32 | ) | |||||||||||||||||||
Asset impairment charges | - | - | (290 | ) | - | - | (290 | ) | ||||||||||||||||||||
Other items | (29 | ) | (72 | ) | (143 | ) | (1 | ) | - | (245 | ) | |||||||||||||||||
Total | (51 | ) | (16 | ) | (338 | ) | (6 | ) | - | (411 | ) | |||||||||||||||||
3rd quarter 2019 | Inventory valuation effect | - | - | (94 | ) | 25 | - | (69 | ) | |||||||||||||||||||
Effect of changes in fair value | - | 12 | - | - | - | 12 | ||||||||||||||||||||||
Restructuring charges | - | (2 | ) | - | - | - | (2 | ) | ||||||||||||||||||||
Asset impairment charges | (153 | ) | (9 | ) | (22 | ) | (2 | ) | - | (186 | ) | |||||||||||||||||
Other items | (100 | ) | (39 | ) | (2 | ) | (3 | ) | - | (144 | ) | |||||||||||||||||
Total | (253 | ) | (38 | ) | (118 | ) | 20 | - | (389 | ) | ||||||||||||||||||
9 months 2020 | Inventory valuation effect | - | - | (1,509 | ) | (239 | ) | - | (1,748 | ) | ||||||||||||||||||
Effect of changes in fair value | - | (32 | ) | - | - | - | (32 | ) | ||||||||||||||||||||
Restructuring charges | (32 | ) | (28 | ) | (7 | ) | - | - | (67 | ) | ||||||||||||||||||
Asset impairment charges | (7,338 | ) | (953 | ) | (290 | ) | - | - | (8,581 | ) | ||||||||||||||||||
Other items | (56 | ) | (290 | ) | (169 | ) | (108 | ) | (91 | ) | (714 | ) | ||||||||||||||||
Total | (7,426 | ) | (1,303 | ) | (1,975 | ) | (347 | ) | (91 | ) | (11,142 | ) | ||||||||||||||||
9 months 2019 | Inventory valuation effect | - | - | 392 | 65 | - | 457 | |||||||||||||||||||||
Effect of changes in fair value | - | (74 | ) | - | - | - | (74 | ) | ||||||||||||||||||||
Restructuring charges | - | (2 | ) | - | - | - | (2 | ) | ||||||||||||||||||||
Asset impairment charges | (196 | ) | (20 | ) | (32 | ) | (2 | ) | - | (250 | ) | |||||||||||||||||
Other items | (100 | ) | (151 | ) | (39 | ) | (3 | ) | - | (293 | ) | |||||||||||||||||
Total | (296 | ) | (247 | ) | 321 | 60 | - | (162 | ) |
43
ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M$) | Exploration & Production | Integrated Renewables & Power | Refining & Chemicals | Marketing & Services | Corporate | Total | ||||||||||||||||||||||||||||||||
3rd quarter 2020 | Inventory valuation effect | - | - | 10 | (6 | ) | - | 4 | ||||||||||||||||||||||||||||||
Effect of changes in fair value | - | 56 | - | - | - | 56 | ||||||||||||||||||||||||||||||||
Restructuring charges | (17 | ) | (12 | ) | (41 | ) | - | - | (70 | ) | ||||||||||||||||||||||||||||
Asset impairment charges | - | - | (291 | ) | (2 | ) | - | (293 | ) | |||||||||||||||||||||||||||||
Gains (losses) on disposals of assets | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other items | (8 | ) | (110 | ) | (251 | ) | (1 | ) | 27 | (343 | ) | |||||||||||||||||||||||||||
Total | (25 | ) | (66 | ) | (573 | ) | (9 | ) | 27 | (646 | ) | |||||||||||||||||||||||||||
3rd quarter 2019 | Inventory valuation effect | - | - | (89 | ) | 18 | - | (71 | ) | |||||||||||||||||||||||||||||
Effect of changes in fair value | - | 10 | - | - | - | 10 | ||||||||||||||||||||||||||||||||
Restructuring charges | (5 | ) | (13 | ) | (2 | ) | - | - | (20 | ) | ||||||||||||||||||||||||||||
Asset impairment charges | (132 | ) | (5 | ) | (22 | ) | (1 | ) | - | (160 | ) | |||||||||||||||||||||||||||
Gains (losses) on disposals of assets | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other items | (357 | ) | 452 | (19 | ) | (52 | ) | - | 24 | |||||||||||||||||||||||||||||
Total | (494 | ) | 444 | (132 | ) | (35 | ) | - | (217 | ) | ||||||||||||||||||||||||||||
9 months 2020 | Inventory valuation effect | - | - | (1,354 | ) | (150 | ) | - | (1,504 | ) | ||||||||||||||||||||||||||||
Effect of changes in fair value | - | (23 | ) | - | - | - | (23 | ) | ||||||||||||||||||||||||||||||
Restructuring charges | (20 | ) | (34 | ) | (116 | ) | - | - | (170 | ) | ||||||||||||||||||||||||||||
Asset impairment charges | (7,272 | ) | (829 | ) | (291 | ) | (2 | ) | - | (8,394 | ) | |||||||||||||||||||||||||||
Gains (losses) on disposals of assets | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other items | 43 | (366 | ) | (287 | ) | (72 | ) | (115 | ) | (797 | ) | |||||||||||||||||||||||||||
Total | (7,249 | ) | (1,252 | ) | (2,048 | ) | (224 | ) | (115 | ) | (10,888 | ) | ||||||||||||||||||||||||||
9 months 2019 | Inventory valuation effect | - | - | 252 | 37 | - | 289 | |||||||||||||||||||||||||||||||
Effect of changes in fair value | - | (59 | ) | - | - | - | (59 | ) | ||||||||||||||||||||||||||||||
Restructuring charges | (5 | ) | (29 | ) | (19 | ) | - | - | (53 | ) | ||||||||||||||||||||||||||||
Asset impairment charges | (175 | ) | (11 | ) | (30 | ) | (1 | ) | - | (217 | ) | |||||||||||||||||||||||||||
Gains (losses) on disposals of assets | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other items | (357 | ) | 526 | (67 | ) | (58 | ) | - | 44 | |||||||||||||||||||||||||||||
Total | (537 | ) | 427 | 136 | (22 | ) | - | 4 |
44
3.4) Asset impairment
Impairments relate to certain cash-generating units (CGUs) for which indicators of impairment have been identified, due to changes in operating conditions or the economic environment of the activities concerned.
For the calculation of impairment tests of its assets, TOTAL set in 2019 a price scenario with a 2050 Brent price of 50$/b, in line with the “well below 2°C” 2019 scenario of the IEA. This scenario is described in the Universal Registration Document (note 3 of chapter 8).
Given the drop of the oil price in 2020, TOTAL decided to revise the price assumptions over the next years and selected the following profile of the Brent price: 35$/b in 2020, 40$/b in 2021, 50$/b in 2022, 60$/b in 2023; gas prices have been adjusted accordingly.
For the longer term, TOTAL maintains its analysis, that the weakness of investments in the hydrocarbon sector since 2015 accentuated by the health and economic crisis of 2020 will result by 2025 in insufficient worldwide production capacities and a rebound in prices. Beyond 2030, given technological developments, particularly in the transport sector, TOTAL anticipates oil demand will have reached its peak and Brent prices should tend toward the long-term price of 50$/b, in line with the 2019 IEA’s SDS scenario.
The average Brent prices over the period 2020-2050 thus stands at 56.8$2020/b.
The future operational costs were determined by taking into account the existing technologies, the fluctuation of prices for petroleum services in line with market developments and the internal cost reduction programs effectively implemented.
The future cash flows are estimated over a period consistent with the life of the assets of the CGUs. They are prepared post-tax and take into account specific risks related to the CGUs’ assets. They are discounted using a 7% post-tax discount rate, this rate being the weighted-average cost of capital estimated from historical market data.
The CGUs of the Exploration & Production segment are defined as oil and gas fields or groups of oil and gas fields with industrial assets enabling the production, treatment and evacuation of the oil and gas. For the first nine months of 2020, impairments of assets were recognized over CGUs of the Exploration & Production segment for an impact of $(1,878) million in operating income and $(1,798) million in net income, Group share. Impairments recognized in 2020 mainly relate to Canadian oil sands assets.
The CGUs of the Integrated Gas, Renewables & Power segment are subsidiaries or groups of subsidiaries organized by activity or geographical area, and by fields or groups of fields for upstream LNG activities. For the first nine months of 2020, the Group recorded impairments on CGUs in the Integrated Gas, Renewables & Power segment for $(953) million in operating income and $(829) million in net income, Group share. Impairments recognized in 2020 relate to assets located in Australia.
The CGUs of the Refining & Chemicals segment are defined as legal entities with operational activities for refining and petrochemicals activities. For the first nine months of 2020, the Group recorded impairments on CGUs of the Refining & Chemicals segment in France and in the United Kingdom for $(290) million in operating income and $(291) million in net income, Group share.
The CGUs of the Marketing & Services segment are subsidiaries or groups of subsidiaries organized by geographical area. No significant impairment has been recorded for the CGUs of the Marketing & Services segment in the first nine months of 2020.
In addition, in line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, TOTAL has reviewed its oil assets that can be qualified as stranded, meaning with reserves beyond 20 years and high production costs, whose overall reserves may therefore not be produced by 2050. The only projects identified in this category are the Canadian oil sands projects of Fort Hills and Surmont.
For impairment calculations, TOTAL has decided to take into account only proven reserves on these two assets – unlike general practice which considers so-called proven and probable reserves. This leads to an additional exceptional asset impairment of $(5,460) million in operating income and $(5,474) million in net income, Group share.
Overall, asset impairments were recorded on the nine first months 2020, for an amount of $(8,581) million in operating income and $(8,394) million in net income, Group share, including $(6,988) million on Canadian oil sands assets alone.
These impairments were qualified as adjustment items of the operating income and net income, Group share.
45
As for sensitivities of the Exploration & Production segment:
- | a decrease by one point in the discount rate would have a positive impact of approximately $0.2 billion on impairments recorded in operating income and $0.2 billion on impairments recorded in net income, Group share; |
- | an increase by one point in the discount rate would have an additional negative impact of approximately $1.5 billion on impairments recorded in operating income and $1 billion on impairments recorded in net income, Group share; |
- | a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact of approximately $2.9 billion on impairments recorded this quarter in operating income and $1.7 billion on impairments recorded in net income, Group share. |
As for sensitivities of upstream LNG activities and CGUs including a material goodwill:
- | a decrease by one point in the discount rate would have a positive impact of approximately $0.6 billion on impairments recorded in operating income and $0.5 billion on impairments recorded in net income, Group share; |
- | an increase by one point in the discount rate would have an additional negative impact of approximately $0.8 billion on impairments recorded in operating income and $0.6 billion on impairments recorded in net income, Group share; |
- | a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact of approximately $1.9 billion on impairments recorded this quarter in operating income and $1.5 billion on impairments recorded in net income, Group share. |
46
4) Shareholders’ equity
Treasury shares (TOTAL shares held directly by TOTAL SE)
In accordance with the shareholder return policy over 2018-2020 implemented since February 2018, the Company repurchased its own shares until the announcement of the suspension of the share buyback program on March 23, 2020, in the context of the sharp decrease in the crude oil price.
During this period, TOTAL SE has also repurchased shares to be allocated to free share grant plans.
As of September 30, 2020, TOTAL SE directly holds 24,412,776 TOTAL shares, representing 0.92% of its share capital, which are deducted from the consolidated shareholders’ equity and allocated as follows:
Shares to be cancelled (1) | 23,284,409 | |||
including shares repurchased during Q4 2019 | 11,051,144 | |||
including shares repurchased during Q1 2020 | 12,233,265 | |||
Shares to be allocated as part of free share grant plans (2) | 1,128,367 | |||
including the 2018 Plan | 1,064,436 | |||
including other Plans | 63,931 | |||
Total Treasury shares (1)+(2) | 24,412,776 |
Dividend
The Board of directors of October 29, 2020 set the third interim dividend for the fiscal year 2020 at 0.66 euro per share, an amount equal to the first and second interim dividends. The ex-dividend date of this third interim dividend will be March 25, 2021 and it will be paid in cash exclusively on April 1st, 2021.
Dividend 2020 | First interim | Second interim | Third interim | |||
Amount | €0.66 | €0.66 | €0.66 | |||
Set date | May 4, 2020 | July 29, 2020 | October 29, 2020 | |||
Ex-dividend date | September 25, 2020 | January 4, 2021 | March 25, 2021 | |||
Payment date | October 2, 2020 | January 11, 2021 | April 1st, 2021 |
Earnings per share in Euro
Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €0.04 per share for the 3rd quarter 2020 (€(2.98) per share for the 2nd quarter 2020 and €0.95 per share for the 3rd quarter 2019). Diluted earnings per share calculated using the same method amounted to €0.04 per share for the 3rd quarter 2020
(€2.98) per share for the 2nd quarter 2020 and €0.94 per share for the 3rd quarter 2019).
Earnings per share are calculated after remuneration of perpetual subordinated notes.
47
Perpetual subordinated notes
The Group has issued perpetual subordinated notes in September 2020:
● | Perpetual subordinated notes 2.000% callable in September 2030, or in anticipation in June 2030 (EUR 1,000 million). |
The Group has repurchased perpetual subordinated notes in September 2020:
● | Perpetual subordinated notes 2.250% callable in February 2021 for EUR 703 million; the residual outstanding amount of the notes is EUR 297 million. |
Other comprehensive income
Detail of other comprehensive income is presented in the table below:
(M$) | 9 months 2020 | 9 months 2019 | ||||||||||||||||||
Actuarial gains and losses | (229 | ) | (54) | |||||||||||||||||
Change in fair value of investments in equity instruments | 147 | 126 | ||||||||||||||||||
Tax effect | 86 | 13 | ||||||||||||||||||
Currency translation adjustment generated by the parent company | 3,467 | (3,994) | ||||||||||||||||||
Sub-total items not potentially reclassifiable to profit and loss |
| 3,471 |
|
| (3,909) |
| ||||||||||||||
Currency translation adjustment | (2,770 | ) | 1,394 | |||||||||||||||||
- unrealized gain/(loss) of the period | (2,738 | ) | 1,449 | |||||||||||||||||
- less gain/(loss) included in net income | 32 | 55 | ||||||||||||||||||
Cash flow hedge | (930 | ) | (575) | |||||||||||||||||
- unrealized gain/(loss) of the period | (877 | ) | (533 | ) | ||||||||||||||||
- less gain/(loss) included in net income | 53 | 42 | ||||||||||||||||||
Variation of foreign currency basis spread | 35 | 50 | ||||||||||||||||||
- unrealized gain/(loss) of the period | (3 | ) | 6 | |||||||||||||||||
- less gain/(loss) included in net income | (38 | ) | (44 | ) | ||||||||||||||||
Share of other comprehensive income of equity affiliates, net amount | (1,731 | ) | 326 | |||||||||||||||||
- unrealized gain/(loss) of the period | (1,741 | ) | 335 | |||||||||||||||||
- less gain/(loss) included in net income | (10 | ) | 9 | |||||||||||||||||
Other | (4 | ) | (4) | |||||||||||||||||
Tax effect | 252 | 176 | ||||||||||||||||||
Sub-total items potentially reclassifiable to profit and loss |
| (5,148 | ) |
| 1,367 |
| ||||||||||||||
Total other comprehensive income, net amount |
| (1,677 | ) |
| (2,542) |
|
48
Tax effects relating to each component of other comprehensive income are as follows:
9 months 2020 | 9 months 2019 | |||||||||||||||||||||||
(M$) | Pre-tax amount | Tax effect | Net amount | Pre-tax amount | Tax effect | Net amount | ||||||||||||||||||
Actuarial gains and losses | (229 | ) | 53 | (176 | ) | (54 | ) | 16 | (38 | ) | ||||||||||||||
Change in fair value of investments in equity instruments | 147 | 33 | 180 | 126 | (3 | ) | 123 | |||||||||||||||||
Currency translation adjustment generated by the parent company | 3,467 | - | 3,467 | (3,994 | ) | - | (3,994 | ) | ||||||||||||||||
Sub-total items not potentially reclassifiable to profit and loss | 3,385 | 86 | 3,471 | (3,922 | ) | 13 | (3,909 | ) | ||||||||||||||||
Currency translation adjustment | (2,770 | ) | - | (2,770 | ) | 1,394 | - | 1,394 | ||||||||||||||||
Cash flow hedge | (930 | ) | 263 | (667 | ) | (575 | ) | 193 | (382 | ) | ||||||||||||||
Variation of foreign currency basis spread | 35 | (11 | ) | 24 | 50 | (17 | ) | 33 | ||||||||||||||||
Share of other comprehensive income of equity affiliates, net amount | (1,731 | ) | - | (1,731 | ) | 326 | - | 326 | ||||||||||||||||
Other | (4 | ) | - | (4 | ) | (4 | ) | - | (4 | ) | ||||||||||||||
Sub-total items potentially reclassifiable to profit and loss | (5,400 | ) | 252 | (5,148 | ) | 1,191 | 176 | 1,367 | ||||||||||||||||
Total other comprehensive income |
| (2,015 | ) |
| 338 |
|
| (1,677 | ) |
| (2,731 | ) |
| 189 |
|
| (2,542 | ) |
5) Financial debt
The Group has issued bonds during the first nine months of 2020:
- | Bond 1.491% maturing in April 2027 (EUR 1,500 million); |
- | Bond 0.952% maturing in May 2031 (EUR 500 million); |
- | Bond 1.994% maturing in April 2032 (EUR 1,500 million); |
- | Bond 1.618% maturing in May 2040 (EUR 1,000 million); |
- | Bond 2.986% maturing in June 2041 (USD 800 million); |
- | Bond 3.127% maturing in May 2050 (USD 2,500 million); |
- | Bond 3.386% maturing in June 2060 (USD 800 million). |
The Group reimbursed bonds during the first nine months of 2020:
- | Bond 4.750% issued in 2014 and maturing in January 2020 (NZD 100 million); |
- | Bond 2.125% issued in 2014 and maturing in January 2020 (CAD 100 million); |
- | Bond Euribor 3 months + 30 basis points issued in 2014 and maturing in March 2020 (EUR 1,000 million); |
- | Bond Euribor 3 months + 31 basis points issued in 2013 and maturing in May 2020 (EUR 300 million); |
- | Bond 4.450% issued in 2010 and maturing in June 2020 (USD 1,250 million); |
- | Bond 1.875% issued in 2013 and maturing in July 2020 (EUR 750 million); |
- | Bond Libor 3 months Dollar + 75 basis points issued in 2013 and maturing in July 2020 (USD 300 million); |
- | Bond 5.000% issued in 2014 and maturing in September 2020 (NZD 100 million). |
49
In April 2020, the Group has also put in place a new committed syndicated credit line with banking counterparties for an initial amount of USD 6,350 million and with a 12-month tenor (with the option to extend twice by a further 6 months at TOTAL’s hand).
As of September, 30 2020, the remaining balance of the committed syndicated credit line is USD 3,646 million.
6) Related parties
The related parties are principally equity affiliates and non-consolidated investments.
There were no major changes concerning transactions with related parties during the first nine months of 2020.
7) Other risks and contingent liabilities
TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group, other than those mentioned below.
Health and oil crises
After a second quarter in which the Group faced exceptional circumstances with oil prices falling below $20/b and a very strong slowdown of global activity linked to the health crisis, the Group benefited during the third quarter from a more favorable environment, with oil prices above $40/b thanks to strong OPEC+ discipline as well as the demand recovery for petroleum products for road transportation. However, the environment was mixed with low natural gas prices and severely depressed refining margins due to excess production capacity relative to demand and high inventories.
The oil market environment remains uncertain and will depend notably on the speed of the global demand recovery, affected by the Covid-19 pandemic.
Oil prices have remained above $40/b since June, supported by strong compliance with OPEC+ quotas and lower hydrocarbon production in North America. In this context, given the quotas, the Group now anticipates full-year 2020 production below 2.9 Mboe/d.
Total anticipates that the increase in oil prices over the second and third quarters will have a positive impact on its average LNG selling price in the fourth quarter, which is expected to be over $4/Mbtu.
In the Downstream, since the beginning of the fourth quarter, European refining margins have averaged more than $10/t and remain fragile given the low demand for jet fuel that weighs on the valuation of all distillates.
In this context, the Group maintains strong discipline on spending. The Group’s operating cost reduction program will surpass its objective with savings of more than $1 billion in 2020. Net investments will be less than $13 billion in 2020, including $2 billion for renewables and electricity.
The Group’s priority is the generation of a level of cash flow that allows it to continue to invest in profitable projects, support the dividend and maintain a solid balance sheet. The Group’s teams remain fully committed to the four priorities of HSE, operational excellence, cost reduction and cash flow generation.
Yemen
In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which the Group holds a stake of 39.62%, to stop its commercial production and export of LNG and to declare force majeure to its various stakeholders in 2015. The plant has been put in preservation mode.
8) Post closing events
There was no post closing event.
50