4th Aug 2005 07:33
Total S.A.04 August 2005 Paris, August 4, 2005 Total Second Quarter 2005 results: strong performance • +33% to 2.91 billion for adjusted net income(1)in euros • +37% to 4.92 • for adjusted earnings per share in euros • +39% to 3.66 billion for adjusted net income expressed in dollars(2) • +43% to 6.19 $ for adjusted earnings per share expressed in dollars • Results expressed in dollars2-(3) 2nd quarter 2005 1st half 2005 3.66 B$ +39% Adjusted net income1 7.48 B$ +48% 6.19 $/share +43% 12.61 $/share +52% 3.88 B$ +41% Net income 8.08 B$ +50% • Results in euros3 2nd quarter 2005 1st half 2005 2.91 B• +33% Adjusted net income1 5.83 B• +41% 4.92 •/share +37% 9.81 •/share +45% 3.08 B• +35% Net income 6.29 B• +44% Paris, August 4, 2005 - Total's adjusted net income increased to 2,906 millioneuros (M•) in the second quarter 2005, a 33% increase compared to the samequarter last year. Commenting on the results, CEO Thierry Desmarest said: Continued demand growth and a high rate of capacity utilization for productionand refining drove crude prices and refining margins to very high levels in thesecond quarter 2005. During the period, market conditions for Chemicals weresatisfactory although not as strong as in the first quarter. In this context, adjusted earnings per share increased by 37%. For the first half 2005, adjusted earnings per share rose to 9.81 euros, or anincrease of 45% compared to the first half 2004. Expressed in dollars, theincrease in the adjusted earnings per share was 52%, which is the bestperformance among the majors. Return on average capital employed for the Groupreached a record level of more than 26% for the trailing twelve month period,which is at the level of the best in the industry. The Group continued to pursue a major investment program, with expenditures of5.2 billion dollars in the first half of 2005. In addition to making theseinvestments and paying the second part of the 2004 dividend, strong cash flowgeneration allowed the Group to buy back close to 2% of its share capital in thefirst half of the year. New exploration successes were achieved, notably in Africa. We are makingexcellent progress with our strategy to grow through 2010, particularly with thelaunching of the Akpo development in May. The deal signed a couple of days agowith Deer Creek Energy should allow Total to take a major step forward indeveloping its long-term Canadian oil sands strategy. • Total - consolidated accounts(4) 2Q05 2Q04 % in millions of euros 1H05 1H04 % 33,073 29,129 +14% Sales 64,812 56,104 +16% 5,537 4,033 +37% Adjusted operating income from business 10,993 7,609 +44% segments 4,212 3,164 +33% = Upstream 8,222 5,987 +37% 944 721 +31% = Downstream 1,835 1,274 +44% 381 148 +157% = Chemicals 936 348 +169% 2,886 2,169 +33% Adjusted net operating income from 5,763 4,135 +39% business segments 3,079 2,284 +35% Net income* 6,287 4,374 +44% 2,906 2,185 +33% Adjusted net income 5,825 4,131 +41% 4.92 3.59 +37% Adjusted earnings per share (euros) 9.81 6.75 +45% 2,255 1,971 +14% Investments 4,039 3,608 +12% 377 171 +120% Divestments 590 353 +67% at selling price 2,697 2,656 +2% Cash flow from operating activities 6,734 6,765 - *Group share • Number of shares 2Q05 2Q04 % Millions 1H05 1H04 % 591.1 608.9 -3% Fully-diluted weighted-average shares 593.6 612.0 -3% • Market environment 2Q05 2Q04 % 1H05 1H04 % 1.26 1.20 -4%* US$ ($/•) 1.28 1.23 -4%* 51.6 35.4 +46% Brent ($/b) 49.6 33.7 +47% 45.0 34.4 +31% European refining margins TRCV ($/t) 38.4 28.0 +37% *change in the dollar versus the euro • Adjustments to operating income from business segments 2Q05 2Q04 in millions of euros 1H05 1H04 (11) - Impact of special items on operating income from (11) - business segments - - = Restructuring charges - - (11) - = Impairments (11) - - - = Other - - 391 300 Difference of FIFO vs. Replacement cost 1,113 548 380 300 Total adjustments affecting operating income from 1,102 548 business segments • Adjustments to net income (Group share) 2Q05 2Q04 in millions of euros 1H05 1H04 (51) (116) Impact of special items on net income (Group share) (176) (133) (36) - = Equity share of special items recorded by (78) - Sanofi-Aventis - - = Gain/(loss) on asset sales - - - (98) = Additional Toulouse-AZF provision - (98) (7) (14) = Restructuring charges and early retirement plans (90) (31) (8) - = Impairments (8) - - (4) = Other - (4) (53) - Adjustment related to the Sanofi-Aventis merger* (135) - (share of amortization of intangible assets) 277 215 After-tax difference of FIFO vs. Replacement cost 773 376 173 99 Total adjustments affecting net income 462 243 * based on 13% participation of Total in Sanofi-Aventis at June 30, 2005 • Second quarter 2005 results > Operating income Compared to the second quarter 2004, the oil market environment in the secondquarter 2005 was marked by sharply higher oil prices (+46% for Brent) andrefining margins (+31% for the TRCV European refining margin indicator). Petrochemical margins were higher on average than in the second quarter 2004 butwell below the level of the first quarter 2005. The 4% decline in the dollar relative to the euro slightly offset the positiveimpact of changes in the oil and chemicals environment. In this context, adjusted operating income from the business segments increasedby 37% to 5,537 M• from 4,033 M• in the second quarter 2004. Special items affecting operating income, comprised of impairments in theChemicals segment, had a negative impact of 11 M• in the second quarter 2005.There were no special items affecting operating income in the second quarter2004. Adjusted net operating income from the business segments increased by 33% to2,886 M• in the second quarter 2005 from 2,169 M• in the second quarter 2004. > Net income Adjusted net income, which excludes in particular after-tax inventory valuationeffects of 277 M• in the second quarter 2005 and 215 M• in the second quarter2004, increased by 33% to 2,906 M• from 2,185 M• in the second quarter 2004. Special items had a negative impact on net income of 51 M• and 116 M•respectively in the second quarter 2005 and second quarter 2004. They includespecial charges and provisions in the Chemicals segment. Reported net income(5) was 3,079 M• in the second quarter 2005 compared to 2,284M• in the second quarter 2004. During the second quarter 2005, the Group bought back 6.85 million of itsshares, or 1.1% of its share capital, for 1.25 billion euros (B•). Adjusted earnings per share, based on 591.1 million fully-dilutedweighted-average shares, increased by 37% to 4.92 euros in the second quarter2005 from 3.59 euros in the second quarter 2004. Adjusted earnings per shareincreased at a higher rate than adjusted net income due to the accretive effectof the share buybacks. > Cash flow Cash flow from operating activities was 2,697 M• in the second quarter 2005compared to 2,656 M• in the second quarter 2004. Before changes in workingcapital, which was particularly high at the end of the second quarter 2005, cashflow from operations showed an increase of 25%. Investments were 2,255 M• in the second quarter 2005 compared to 1,971 M• in thesecond quarter 2004. Expressed in dollars, the increase was 20% to about 2.8 B$. Divestments in the second quarter 2005 were 377 M•, including the sale of 1.85%of Kashagan to KazMunayGas. Net cash flow(6) was 819 M• compared to 856 M• for the same quarter 2004. • Upstream > Results 2Q05 2Q04 % in millions of euros 1H05 1H04 % 4,212 3,164 +33% Adjusted operating income* 8,222 5,987 +37% 1,887 1,516 +24% Adjusted net operating income* 3,695 2,915 +27% 1,638 1,334 +23% Investments 3,001 2,548 +18% 262 102 +157% Divestments 390 201 +94% at selling price 2,731 2,647 +3% Cash flow from operating activities 4,919 4,979 -1% * adjustment detail included in business segment information Adjusted operating income from the Upstream segment increased by 33% to 4,212 M•in the second quarter 2005 from 3,164 M• in the second quarter 2004. The improvement in the Upstream segment results reflects essentially the benefitof higher hydrocarbon prices, more so for liquids than for gas. Part of thisbenefit was offset by the decline in the sales-to-production ratio, which was ata particularly high level in the first quarter 2005 and then reversed in thesecond quarter 2005 to a level that was lower on average than in the secondquarter 2004. Adjusted net operating income from the Upstream segment rose to 1,887 M• in thesecond quarter 2005, an increase of 24%. This increase, which was more moderate than the increase in adjusted operatingincome, reflects essentially a higher average tax rate in the second quarter2005 than in the second quarter 2004. This higher rate was due primarily to anincrease in the share of production from Nigerian concessions. > Production 2Q05 2Q04 % Hydrocarbon production 1H05 1H04 % 2,506 2,601 -4% Combined production (kboe/d) 2,534 2,617 -3% 1,630 1,698 -4% = Liquids (kb/d) 1,643 1,710 -4% 4,797 4,915 -2% = Gas (Mcfd) 4,870 4,933 -1% Hydrocarbon production was 2,506 thousand barrels of oil equivalent per day(kboe/d) in the second quarter 2005 compared to 2,601 kboe/d in the secondquarter 2004, a decrease of 3.7%. The decrease was due primarily to the negative impact on production of higherprices in the second quarter 2005 versus the second quarter 2004 ( price effect)as well as to the remaining effects of shut-downs related to Hurricane Ivan inthe Gulf of Mexico. Excluding these impacts, hydrocarbon production was generally unchanged.Increases in Libya, Venezuela, Indonesia, Congo and Trinidad offset theproduction decline in the North Sea, which was largely attributable to highmaintenance activity in Norway. > Liquids and gas price realizations 2Q05 2Q04 % Liquids and gas price* 1H05 1H04 % 48.0 34.2 +40% Average liquids price ($/b) 45.9 32.6 +41% 4.39 3.44 +28% Average gas price ($/Mbtu) 4.40 3.57 +23% * consolidated subsidiaries, excluding fixed margin and buy-back contracts The smaller increase in the average realized price for liquids compared to theincrease in Brent reflects the higher differential between light and heavy oil.Gas prices increased in all regions. > Recent highlights Total continued to expand its exploration acreage by taking a 40% interest inOPL 215 and signing a production sharing contract on OPL 223 in Nigeria, inaddition to taking a new exploration block in Cameroon. Successful exploration activity included a fourth discovery on the Angolanultra-deep Block 32 (Total-operated 30%), a gas discovery in the Norwegian NorthSea on the Onyx SW prospect (Total 20%), a discovery on the Haute Mer C in Congo(Total-operated 100%), a discovery on Aguada Pichana Norte (Total-operated 27%)in Argentina and two new positive wells on OPL 222 (Total-operated 20%) inNigeria that further confirm the potential of the Usan discovery. An initial development plan for Usan projecting a start-up by 2010 and a plateaurate of 150 kb/d was approved by NNPC, the concession holder of the block. The second quarter 2005 also marked the launch of the development of the giantAkpo field (Total-operated 24%) in the Nigerian deep offshore and the ForvieNord field (Total-operated 100%) in the UK North Sea. In addition, thedevelopment plan for the Tyrihans field (Total 26.5%) was submitted to theNorwegian authorities in July 2005. Dolphin Energy (Total 24.5%) announced in May the signature of a contract withthe government of Dubai for 25 years of gas sales at the rate of 700 Mcfd,increasing the contracted deliveries to 1.9 Bcfd on average over the long term. Gas production started up at the Carina-Aries field (Total-operated 37.5%) inArgentina during the second quarter 2005. Total took a major step forward in developing its Canadian oil sands strategythrough the deal signed with Deer Creek Energy Limited pursuant to which theGroup will launch a friendly cash offer to acquire 100% of common outstandingshares of Deer Creek Energy Limited. Deer Creek Energy Limited holds 84% of theJoslyn lease in Athabasca with a estimated cumulative production of around 2Bboe of bitumen over 30 years. Besides, Total increased its stake in the Surmont project to 50%. In midstream LNG, the Hazira LNG regasification terminal (Total 26%) in Indiastarted commercial operations. Finally, as a result of the numerous delays, which are difficult to understand,that have occurred since the filing of the application in September 2004, Totalhas just informed the Russian antitrust authorities of its decision to withdrawits application concerning the acquisition of 25% plus one share of Novatek. • Downstream > Results 2Q05 2Q04 % in millions of euros 1H05 1H04 % 944 721 +31% Adjusted operating income* 1,835 1,274 +44%733 544 +35% Adjusted net operating income* 1,411 969 +46% 359 335 +7% Investments 576 575 -58 39 +49% Divestments 103 82 +26% at selling price (70) 433 ns Cash flow from operating activities 1,619 2,157 -25% * adjustment detail included in the business segment information Adjusted operating income from the Downstream segment in the second quarter 2005rose to 944 M•, an increase of 31% compared to the second quarter 2004. The Downstream segment benefited from a sharp increase in refining margins thatwere driven up by strong tension in the Atlantic basin market and by theincrease in the light-heavy crude spread. Downstream results also continued to benefit from the effects of self-helpprograms. They were, however, also affected by a decrease in refinery throughput resultingfrom a high level of turnarounds and by strikes that affected most of therefineries in France for parts of May 2005. Adjusted net operating income from the Downstream segment increased by 35% to733 M• in the second quarter 2005 from 544 M• in the second quarter 2004. The decrease in cash flow from operations from the Downstream segment reflects alarge increase in working capital from the first to the second quarter in 2005,which was due mainly to much higher refined product prices and to tradingactivities. > Refinery throughput 2Q05 2Q04 % Refinery throughput (kb/d) 1H05 1H04 % 2,219 2,494 -11% Total refinery throughput* 2,420 2,494 -3%831 1,000 -17% (S) France 939 1,017 -8%1,055 1,180 -11% (S) Rest of Europe* 1,152 1,181 -2%333 314 +6% (S) Rest of world 329 296 +11% * includes share of Cepsa Refinery throughput was 2,219 kb/d in the second quarter 2005, an 11% declinefrom the same period last year, and the refining utilization rate was 82%. Thelower utilization rate was due in roughly equal parts to the effects of thestrikes at French refineries and the major turnarounds at Grandpuits, MilfordHaven, Antwerp and Normandy. > Recent highlights Total announced an agreement to increase its share in the Rome refinery by 20%to 77.5% from 57.5% in exchange for its 18% interest in the Reichstett refineryin France. In the second quarter 2005, Total launched a new line of high-performance fuels(gasoline and diesel) called TOTAL EXCELLIUM that will be marketed throughoutthe TOTAL network by the end of 2005. • Chemicals > Results 2Q05 2Q04 % in millions of euros 1H05 1H04 % 5,736 4,896 +17% Sales 11,254 9,569 +18%2,673 2,018 +32% = Base chemicals 5,260 3,940 +34%1,659 1,565 +6% = Specialties 3,227 3,031 +6%1,407 1,317 +7% = Arkema 2,767 2,595 +7%(3) (4) ns = Corporate Chemicals - 3 ns381 148 +157% Adjusted operating income* 936 348 +169%145 (12) ns = Base chemicals 497 57 x8.7150 137 +9% = Specialties 266 256 +4%78 18 x4.3 = Arkema 167 29 x5,88 5 ns = Corporate Chemicals 6 6 ns266 109 +144% Adjusted net operating income* 657 251 +162%245 262 -6% Investments 403 434 -7%8 30 -73% Divestments 30 49 -39% at selling price205 34 x6 Cash flow from operating activities 287 (38) ns * adjustment detail included in business segment information Sales for the Chemicals segment increased by 17% to 5,736 M• in the secondquarter 2005 from 4,896 M• in the second quarter 2004. Adjusted operating income rose sharply to 381 M• in the second quarter 2005 from148 M• in the second quarter 2004. Market conditions for base chemicals were more favorable in the second quarter2005 than in the second quarter 2004, but they were significantly weakerrelative to the first quarter 2005, particularly in Europe. Results alsobenefited from an improvement in the utilization rate of the steamcrackers. Specialties continued to perform well. Arkema posted much stronger results compared to the second quarter 2004,particularly in industrial chemicals. Adjusted net operating income from the Chemicals segment increased to 266 M• inthe second quarter 2005 from 109 M• in the second quarter 2004. > Recent highlights The construction contracts were awarded for the ethane cracker project at RasLaffan in Qatar (Total 22%). Start-up is projected in 2008. Samsung Total Petrochemicals completed the debottlenecking of the aromaticsplant in Daesan, South Korea with an increase in capacity of about 25%. • First Half 2005 results > Operating income Adjusted operating income from the business segments increased by 44% to 10,993M• in the first half 2005 from 7,609 M• in the first half 2004. The 3.4 B• increase in adjusted operating income between the first half 2004 andthe first half 2005 was due mainly to the overall positive impact of changes inthe market environment : • + 2.4 B• from higher hydrocarbon prices, • + 0.6 B• from improved conditions for Downstream, • + 0.5 B• from better market environment for Chemicals, and • - 0.3 B• from the depreciation of the dollar relative to the euro Excluding the impact of changes in the environment, the increase in adjustedoperating income from the business segments was due essentially to the positiveimpact of productivity programs and growth in the Downstream and Chemicalssegments. Special items affecting operating income had a negative impact of 11 M•(7) inthe first half 2005. There were no special items affecting first half 2004operating income from the business segments. Adjusted net operating income from the business segments increased by 39% to5,763 M• in the first half 2005 from 4,135 M• in the first half 2004. > Net income Adjusted net income, which excludes after-tax inventory effects of 773 M• in thefirst half 2005 and 376 M• in the first half 2004, increased by 41% to 5,825 M•from 4,131 M• in the first half 2004. Special items affecting net income had a negative impact of 176 M€7 in the firsthalf 2005 and 133 M€7 in the first half 2004. Reported net income(8) was 6,287 M• compared to 4,374 M• in the first half 2004. During the first half 2005 the Group bought back 11.72 million of its shares, or1.85% of its capital, for 2.10 B•. At June 30, 2005 the number of fully-diluted shares was 589.3 million comparedto 607.0 million a year ago, representing a decrease of 3%. Adjusted earnings per share, based on 593.6 million fully-dilutedweighted-average shares, rose to 9.81 euros from 6.75 euros in the first half2004, an increase of 45%, which is a higher rate of increase than for theadjusted net income due to the accretive effect of the share buy backs. > Cash Flow Cash flow from operating activities was 6,734 M• in the first half 2005, in linewith the first half 2004. Before changes in working capital, the increase incash flow was 36%. In the first half 2005, investments were 4,039 M•. Expressed in dollars, theyreached 5.2 B$, which is a 17% increase relative to the first half 2004. Divestments in the first half 2005 were 590 M•. Net cash flow was 3,285 M• in the first half 2005 compared to 3,510 M• in thefirst half 2004. The net-debt-to-equity ratio was 30.3% at June 30, 2005 compared to 23.9% atMarch 31, 2005 and 33.6% at June 30, 2004. • Cancellation of outstanding shares The Board of Directors met on July 19, 2005 and approved the cancellation of13,527,578 shares. The share capital has been adjusted to 6,214,875,300 •represented by 621,487,530 shares with a par value of 10 •. This cancellationincreases the capacity for share buybacks. • Total S.A. parent company accounts Net income for Total S.A., the parent company, was 2,444 M• in the first half2005 compared to 2,103 M• in the first half 2004. • Summary and outlook The return on average capital employed (ROACE) for the Group was above 26%, atthe level of the best in the industry, for the 12 months ended June 30, 2005.For the same period, ROACE(9) was 36% for Upstream, 30% for Downstream and 13%for Chemicals. Calculated for the same period, return on equity was 34%. The investment program is in line with the 2005 budget. Preparations for the Arkema spin-off, expected to launch in the spring of 2006,are progressing as planned. The Group has continued to buy back shares and in July 2005 bought back 1.58million shares(10) for 0.32 B•, bringing the level of the buybacks since thestart of the year to slightly more than 2% of the share capital. Since the beginning of the third quarter 2005, oil prices have remained at highlevels while refining margins are close to the first half 2005 average. Afterdecreasing throughout the second quarter, petrochemical margins have stabilizedin July, while the other Chemicals sectors continued to benefit from arelatively favorable environment. To listen to the conference call with CFO Robert Castaigne and financialanalysts today at 15:00 (Paris time), please call +44 (0)20 7162 0096 fromEurope or +1 334 323 6201 from the US or access the call through company website www.total.com. For a replay, please dial +44 (0)20 7031 4064 from Europe or1 954 334 03 42 (access code: 665 038) from the US. The June 30, 2005 notes to the consolidated accounts are available on the Totalweb site (www.total.com). The interim accounts have been the subject of alimited review by the company's auditors. This document may containforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995 with respect to the financial condition, resultsof operations, business, strategy and plans of Total. Such statements are basedon a number of assumptions that could ultimately prove inaccurate, and aresubject to a number of risk factors, including currency fluctuations, the priceof petroleum products, the ability to realize cost reductions and operatingefficiencies without unduly disrupting business operations, environmentalregulatory considerations and general economic and business conditions. Totaldoes not assume any obligation to update publicly any forward-looking statement,whether as a result of new information, future events or otherwise. Furtherinformation on factors which could affect the company's financial results isprovided in documents filed by the Group and its affiliates with the FrenchAutorite des Marches Financiers and the US Securities and Exchange Commission. The business segment information is presented in accordance with the Groupinternal reporting system used by the Chief operating decision maker to measureperformance and allocate resources internally. Due to their particular nature orsignificance, certain transactions qualified as "special items" are monitored atthe Group level and excluded from the business segment figures. In general,special items relate to transactions that are significant, infrequent orunusual. However, in certain instances, certain transactions such asrestructuring costs or assets disposals, which are not considered to berepresentative of normal course of business, may be qualified as special itemsalthough they may have occurred within prior years or are likely to recur withinfollowing years. In accordance with IAS 2, the Group values inventories of crude oil andpetroleum products in the financial statements in accordance with the FIFO(First in, First out) method and other inventories using the weighted-averagecost method. However, in the note setting forth information by business segment,the Group continues to present the results for the Downstream segment accordingto the replacement cost method and those of the Chemicals segment according tothe LIFO (Last in, First out) method in order to ensure the comparability of theGroup's results with those of its main competitors, notably from North America.The inventory valuation effect is the difference between the results accordingto the FIFO method and the results according to the replacement cost or LIFOmethod. In this framework, performance measures such as adjusted operating income,adjusted net operating income and adjusted net income are defined as incomesusing replacement cost, adjusted for special items and excluding Total's equityshare of the amortization of intangibles related to the Sanofi-Aventis merger.They are meant to facilitate the analysis of the financial performance and thecomparison of income between periods. Operating information by segment Second quarter and first half 2005 • Upstream 2Q05 2Q04 % Combined production by region 1H05 1H04 % (kboe/d) 793 880 -10% Europe 812 885 -8%790 794 -1% Africa 797 795 -57 78 -27% North America 47 72 -35%234 233 - Far East 245 239 +3%380 382 -1% Middle East 387 400 -3%243 226 +8% South America 237 218 +9%9 8 +13% Rest of world 9 8 +13%2,506 2,601 -4% Total 2,534 2,617 -3% 2Q05 2Q04 % Liquids production by region (kb/d) 1H05 1H04 % 397 439 -10% Europe 406 444 -9%706 723 -2% Africa 714 722 -1%16 25 -36% North America 11 21 -48%29 31 -6% Far East 29 31 -6%332 332 - Middle East 335 347 -3%141 140 +1% South America 140 137 +2%9 8 +13% Rest of world 8 8 -1,630 1,698 -4% Total 1,643 1,710 -4% 2Q05 2Q04 % Gas production by region (Mcfd) 1H05 1H04 % 2,154 2,395 -10% Europe 2,206 2,404 -8%451 378 +19% Africa 451 384 +17%218 280 -22% North America 191 269 -29%1,145 1,124 +2% Far East 1,200 1,152 +4%256 267 -4% Middle East 276 285 -3%571 471 +21% South America 544 439 +24%2 - ns Rest of world 2 - ns4,797 4,915 -2% Total 4,870 4,933 -1% • Downstream 2Q05 2Q04 % Refined product sales by region 1H05 1H04 % (kb/d)* 2,467 2,594 -5% Europe 2,665 2,694 -1%339 308 +10% Africa 329 294 +12%612 636 -4% United States 601 608 -1%258 200 +29% Rest of world 240 194 +24%3,676 3,738 -2% Total* 3,834 3,790 +1% *includes equity share in Cepsa and trading -------------------------- (1) adjusted net income = net income using replacement cost (Group share) adjusted for special items and excluding Total's equity share of amortization of intangibles related to the Sanofi-Aventis merger (2) dollar amounts represent euro amounts converted at the average •/$ rate for the period (1.2594 $/• for the second quarter 2005, 1.2046 for the second quarter 2004, 1.2847 for the first half 2005 and 1.2273 for the first half 2004) (3) percent changes are relative to the same period in 2004 (4) adjusted income (adjusted income, adjusted net operating income, adjusted net income) are defined as income using replacement cost, adjusted for special items and excluding Total's equity share of amortization of intangibles related to the Sanofi-Aventis merger (5) reported net income includes special items and after-tax inventory valuation effects as well as Total's equity share of the amortization of intangibles related to the Sanofi-Aventis merger (6) net cash flow = cash flow from operating activities + divestments - investments (7) detail on these items is shown in a table on page 3 (8) reported net income includes special items and after-tax inventory valuation effects as well as Total's equity share of the amortization of intangibles related to the Sanofi-Aventis merger (9) ROACE = adjusted net operating income divided by the average capital employed using replacement cost (10) including 0.57 million shares which are reserved for share grants as per the decision of the Board on July 19, 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TTA.L