11th May 2007 16:54
Total S.A.11 May 2007 Paris, May 11, 2007 May 11, 2007 Annual Meeting ----------------------- 15% dividend increase Pursuing a major investment program to grow the Upstream and upgrade the refining and petrochemicals systems The Annual Meeting of shareholders was held on May 11, 2007, under the chairmanship of Thierry Desmarest. During his address, Thierry Desmarest highlighted the main results for the year 2006: "Adjusted net income was 12,585 million euros, a 5% increase compared to 2005.Total benefited from globally more favorable market conditions, despite pressurefrom rising costs and the 5% decrease in production. Profitability at thebusiness segment level was 29%, reflecting the company's portfolio quality andinvestment discipline (...) Excluding acquisitions, the Group invested 14 billion dollars in 2006, more than 75% of that in the Upstream (...) In 2006, the return to shareholders from both dividends and share buybacksrepresented close to 6.5% of the end-2005 market capitalization. The spin-off ofArkema represented an additional 1.5% return to shareholders." Christophe de Margerie, Total's CEO, presented the strategy and outlook for the Group: "In the Upstream, Total intends to pursue its strategy of profitable organicgrowth and increase hydrocarbon production by more than 5% per year on averageover the period 2006 to 2010. This growth will be particularly sensitive to theLNG activities, which are expected to grow by 13% per year on average. Theproduction growth is expected to be substantial in 2007, mainly due to thestart-up of Dalia, to be followed by Rosa and Dolphin. Beyond 2010, Total's portfolio of projects offers strong visibility, notably dueto the number of exploration successes in recent years and to major new projectsin LNG and heavy oil (...) In the Downstream, the Group is pursuing a strategy to upgrade its refiningsystem by adding conversion and desulphurization projects, as well as throughprograms to modernize and improve the reliability of its units (...) In petrochemicals, Total's objective is to continue to increase its polymersproduction, particularly in Asia and the Middle East, while improving thecompetitiveness of its operations in mature markets (...) Implementing the Group's growth strategy depends on a sustained investmentprogram. The 2007 budget for investments is approximately 16 B$, 75% of it forthe Upstream (...) Total intends to pursue a dynamic dividend policy, in line with its strategy forprofitable growth." Christophe de Margerie highlighted that Total's strategy was to sustainablycontribute to the fulfilment of the demand in energy, while combiningresponsibilities towards all stakeholders and value creation for shareholders.He notably emphasized the Group's commitment in the world's efforts to combatclimate change. Finally, Christophe de Margerie highlighted the main results for the first quarter 2007 which were released on May 4: "Total reported strong first quarter 2007 results. In a context of lowerhydrocarbon prices, the adjusted earnings per share expressed in dollars showeda limited decreased of 1%, whereas the business segments profitability was 28%.Expressed in euros, the earnings per share decreased by 9%, reflecting the lowerdollar compared to the euro. This performance shows that Total managed to maintain the quality of itsportfolio and its investment and project management discipline whileaccelerating its growth effort and facing continued pressure from rising costs." The shareholders approved the 2006 accounts and the payment of a cash dividendof 1.87 euros per share of 2.5 euros of par value, an increase of 15% from lastyear. Taking into account the interim dividend of 0.87 euros per share paid onNovember 17, 2006, the remaining balance of 1 euro per share will be paid on May18, 2007. The following resolutions were also approved at the Annual Meeting: • Renewal of the three-year term for the following Directors: MM. Thierry Desmarest, Thierry de Rudder and Serge Tchuruk. • Renewal of the three-year term of M. Daniel Boeuf as a Director representing the employee shareholders. • Authorization for the Board of Directors to trade the Company's share, pursuant to the provisions of Article L. 225-209 of the French Code of Commerce. • Authorizations for the Board of Directors to carry out capital increases but only while maintaining shareholders' preferential subscription rights, to implement stock-options programs and reserved capital increases for employees. The full results of the votes will be available on Total's web site www.total.com in the coming days. *** 2, place de la Coupole La Defense 6 92 400 Courbevoie France Tel.: 33(1)47 44 58 53 Fax: 33 (1)47 44 58 24 Jerome SCHMITTLaurent WOLFFSHEIM Sandrine SABOUREAU Philippe HERGAUX Robert HAMMOND (US) Tel.: (1)201 626 3500 Fax: (1)201 626 4004 TOTAL S.A.Capital 5 981 907 382,5 euros542 051 180 R.C.S. Nanterre www.total.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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