Press

Total: Second Quarter and First Half 2018 Results


Paris, July 26, 2018 - Total's Board of Directors met on July 25, 2018, to review the Group's second quarter 2018 accounts. Commenting on the results, Chairman and CEO Patrick Pouyanné said:

« Oil prices continued to increase, averaging 74 $/b in the second quarter, supported notably by inventory reductions and geopolitical tensions. Total benefited fully from this by remaining focused on operational efficiency: adjusted net income was $3.6 billion, a 44% increase from a year ago, and the return on equity for the past 12 months rose to 10.9%. In line with objectives for the year, the Group generated $6.8 billion of cash flow (DACF) in the second quarter 2018, an increase of 20% compared to the first quarter, while oil prices increased by only 11%. Discipline on spending is resolutely maintained and the organic pre-dividend breakeven continues to decrease, to less than 25 $/b in the quarter.

Production strongly increased by 8.7% from a year ago to 2.7 Mboe/d, due to the contribution from Maersk Oil and the ramp up of new projects, including Yamal LNG, Moho Nord and Fort Hills. Adjusted net operating income from Exploration & Production doubled from a year ago to $2.7 billion in the second quarter 2018, and the segment generated $5.1 billion of cash flow in the same period. Total also launched the development of the Zinia 2 project in Angola, after reducing the cost by more than 50%. The Group is continuing to actively expand along the gas and electricity value chain. Total became the second-largest player in the fast growing global LNG industry by finalizing the acquisition of Engie LNG. The Group also announced its entry with a 10% stake in the giant Arctic 2 LNG project in Russia. In addition, it finalized the acquisition of 73% of Direct Energie to accelerate the downstream integration in the gas-electricity chain, and it launched an offer for the remaining shares.

In an environment with European refining margins of 35 $/t, the Downstream generated $1.7 billion of cash flow in the second quarter, in line with the objective for the year. Notably, Marketing & Services continues to deliver steady and profitable growth. The Group is preparing for its future in petrochemicals by launching studies for a new giant complex integrated into the SATORP refinery with Saudi Aramco and a new project in Algeria with Sonatrach.

In line with the announced shareholder return policy, the Group has bought back all the shares issued during the year for the scrip dividend. In addition, it bought back shares for $600 million to share with shareholders the benefit realized from higher prices. »

Highlights since the beginning of the second quarter 2018

 
  • Engie LNG acquisition closed July 13, 2018: Total becomes world No.2 in LNG

  • Finalized acquisition of 73% of Direct Energie and launched mandatory public offer for remaining

    shares

  • Expanded partnership with Novatek through the Arctic 2 LNG project in Russia

  • Strengthened presence in deep-offshore Gulf of Mexico by increasing interest in the North Platte discovery to 60% and the Anchor discovery to 32.5%

  • Launched the Zinia 2 project on Block 17 in Angola

  • Strengthened cooperation with Sonatrach in Algeria by extending license for the TFT gas field and launched engineering studies for petrochemical project at Arzew

 

  • Signed MOU with Saudi Aramco to build petrochemical complex at Jubail in Saudi Arabia

  • Acquired 25% of Clean Energy to accelerate use of natural gas for heavy-duty trucks in the United

    States

  • Expanding LNG as marine fuel in Singapore in the framework of cooperation with Pavillion

  • Signed an agreement to sell interest in Dunkirk LNG terminal



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