12th May 2006 13:51
Total S.A.12 May 2006 May 12, 2006 Annual Meeting _____________________ Arkema spin-off approved 20% dividend increase Pursuing a major investment program to develop the Upstream and upgrade the refining system Paris - May 12, 2006 - At the Annual Meeting held on May 12, 2006, chaired by CEO Thierry Desmarest, the shareholders of Total approved all the proposed resolutions recommended by the Board of Directors. During his address, Thierry Desmarest said: "Total delivered a strong performance in 2005. Adjusted net income increased by 31%, reflecting the Group's ability to benefit from the stronger market environment, despite inflationary pressure from service companies. Total's performance ranks among the best of the majors in terms of increase in adjusted earnings per share and in terms of return on capital employed, which rose to 27% in 2005, a performance obtained thanks to the contribution of the teams of the Group (...) Continued exploration success, the launching of Yemen LNG and the acquisition ofDeer Creek in Canada, among other things, have allowed us to increase the levelof proved and probable reserves to 20 billion equivalent barrels at the end of2005, which represents close to 22 years of production at the current rate (...) The Group invested 13.9 billion dollars in 2005, a 26% increase compared to2004. This represents a significant level of activity that we expect willcontinue at comparable levels from now through 2010 and should allow us mainlyto increase production by close to 4% per year on average over the 2005-2010period. It should also allow us to upgrade our refining system in Europe and theUS to adapt to changes in the supply-demand balance as well as expand ourpetrochemical activities in Asia (...) Total is confident in its ability to extend its long-term profitable growththrough exploration success and the development of giant projects currentlybeing negotiated. The year 2005 has been highlighted by significant progress inpreparing for such long-term growth, notably through LNG projects in Yemen andin Qatar, and by the launch of the development of the giant Akpo field inNigeria and Moho-Bilondo in Congo (...) In the first quarter 2006, demand for oil continued to be strong while supplieswere subject to serious disruptions, notably in Nigeria. In this context, oilprices continued to rise, while refining margins retreated from their 2005average. The environment for Chemicals was more mixed, with higher raw materialcosts putting pressure on petrochemicals. Adjusted net income increased by 16%to 3,376 million euros from 2,919 million euros in the first quarter 2005,thanks notably to strict control of technical costs, which are the lowest amongthe major oils (...) Total is continuing to implement its strategy of long-term growth, mainlythrough an active investment program, which in dollar terms increased by 41%compared to the first quarter 2005. Since the beginning of the year 2006, wemade significant progress, notably through ongoing exploration success and theagreement to enter into the Sulige field in China." Thierry Desmarest also emphasized that, in order to limit tensions on prices inthe consuming countries, oil production capacities growth should be pursued andfacilitated while energy consumption should be better managed throughout theworld. During his address, Thierry Desmarest presented a new organization for the Groupthat was proposed to and approved by the Board of Directors. In early 2007, theposition of Chairman and CEO would be split. Christophe de Margerie, currentlyExecutive Vice President in charge of Exploration and production, would becomeCEO of the Group and Thierry Desmarest would remain Chairman of the Board. During the meeting, the resolution about the spin-off of Arkema and theallocation of Arkema shares to Total's shareholders was approved. The shareholders approved the 2005 accounts and the payment of a cash dividendof 6.48 euros per share, an increase of 20% from last year. Taking into accountthe interim dividend of 3 euros per share paid on November 24, 2005, theremaining balance of 3.48 euros per share will be paid on May 18, 2005. The following resolutions were also approved at the Annual Meeting: • Renewal of the three-year term for the following Directors: Mrs Anne Lauvergeon, and Mr Daniel Bouton, Mr Bertrand Collomb, Mr Antoine Jeancourt-Galignani, Mr Michel Pebereau and Mr Pierre Vaillaud, • Appointment of Mr. Christophe de Margerie as Director for a three-year term, • Decision to split by four the par value of the shares comprising the share capital, • 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. ********* Total is the fourth largest oil and gas company in the world with operations inmore than 130 countries. Total's activities cover the whole energy chain of thepetroleum industry: exploration, oil and gas production, refining and marketing,trading and power generation. The Group is also a major player in chemicals.Total has more than 111,000 employees worldwide. More information can be foundon the company's website: www.total.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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