Total : Second Quarter and First Half 2014 Results1

  Total : Second Quarter and First Half 2014 Results1  Business Wire  PARIS -- July 30, 2014  Regulatory News :  Total (Paris:FP) (LSE:TTA) (NYSE:TOT):                                   2Q14   Change    1H14  Change                                           vs 2Q13            vs 1H13                                                               Adjusted net income^2                                                               - in billions of dollars (B$)     3.2     -12%        6.5    -11% - in dollars per share            1.38    -12%        2.84   -11%                                                                                                                    Net income^3 of 3.1 B$ in 2Q14 and 6.4 B$ in 1H14  Net-debt-to-equity ratio of 27.1% at June 30,  2014  Hydrocarbon production of 2,054 kboe/d in 2Q14  Interim dividend for 2Q14 of 0.61 €/share payable in December 2014^4  Commenting on the results, Chairman and CEO Christophe de Margerie said:  “Growing geopolitical tensions marked the second quarter environment and, despite the stability of the Brent price, drew attention to the sensitive balance of the oil markets. In this context, the Group reported adjusted net income of $3.2 billion, slightly less than in the previous quarter, essentially due to exceptionally heavy maintenance in the Upstream. The highlight of the quarter was the start-up of CLOV in deep-offshore Angola, which demonstrates yet again the excellence of the Group in major project management. Going forward, we are fully mobilized and focused on starting up the next set of operated projects. In addition, the final investment decisions to launch Kaombo in Angola and Edradour in the UK, approved only after rigorous cost reductions, illustrate the Group’s capital discipline and strengthen its production profile through 2017. The Group performed relatively well in the downstream, despite an unfavorable environment for refining and marketing in Europe and scheduled turnarounds for maintenance on several sites. Every segment is playing a role in optimizing the asset portfolio. The sales of Shah Deniz in Azerbaijan, the coal mines in South Africa and Totalgaz have been announced. Finally, all the segments have progressed in setting detailed cost reduction targets within the framework of the 3-year plan announced at the beginning of the year. This plan, which is essential to the Group’s performance and in keeping with the commitments on safety and environment, will bear its first fruits in 2015.”    *Key figures^5                                    Expressed in                            2Q14   millions dollars                        1H14 2Q14    1Q14    2Q13    vs    except earnings    1H14     1H13     vs                            2Q13   per share and                           1H13                                   number of shares 62,561  60,687  61,345  +2%   Sales              123,248  124,906  -1%                                   Adjusted 5,583   6,182   6,708   -17%  operating income   11,765   14,211   -17%                                   from business                                   segments                                   Adjusted net 3,824   3,699   4,005   -5%   operating income   7,523    8,031    -6%                                   from business                                   segments 3,051   3,092   3,041   -     - Upstream         6,143    6,298    -2% 401      346      518      -23%   - Refining &        747       955       -22%                                   Chemicals 372     261     446     -17%  - Marketing &      633      778      -19%                                   Services 3,151   3,327   3,581   -12%  Adjusted net       6,478    7,279    -11%                                   income                                   Adjusted 1.38    1.46    1.57    -12%  fully-diluted      2.84     3.20     -11%                                   earnings per                                   share (dollars)                                   Adjusted 1.00    1.07    1.21    -17%  fully-diluted      2.07     2.44     -15%                                   earnings per                                   share (euro)                                   Fully-diluted 2,281   2,277   2,274   -     weighted-average   2,279    2,272    -                                   shares (millions)                                                              3,104   3,335   3,364   -8%   Net income (Group  6,439    5,312    +21%                                   share)                                                              8,723   5,865   7,459   +17%  Investments^6      14,588   15,363   -5% 631     1,840   1,750   -64%  Divestments        2,471    2,563    -4% 7,966   4,025   5,716   +39%  Net investments^7  11,991   12,336   -3% 5,277   5,338   4,838   +9%   Cash flow from     10,615   9,751    +9%                                   operations                                   Adjusted cash 5,931   6,204   6,625   -10%  flow from          12,135   13,380   -9%                                   operations    *Highlights since the beginning of the second quarter 2014^8         *Started up the deep-offshore CLOV oil field in Angola        *Launched the developments of Kaombo in ultra-deep offshore Angola and          Edradour in the West of Shetland area of the UK        *Discovered oil on Ivory Coast deep-offshore block CI-514        *Acquired a 60% interest in the Glenlivet gas field in the West of          Shetland area of the UK        *Announced the sales of the Group’s interests in the Shah Deniz field          in Azerbaijan and coal mines in South Africa        *Announced agreements to sell Totalgaz and CCP Composites        *Signed an agreement for long-term sales of LNG to Singapore    *Second quarter 2014 results  > Net operating income from business segments  In the second quarter 2014, the Brent price averaged 109.7 $/b, an increase of 7% compared to the second quarter 2013 and 1% compared to the first quarter 2014. The Group’s European refining margin indicator (ERMI) averaged 10.9 $/t compared to 24.1 $/t in the second quarter 2013 and 6.6 $/t in the first quarter 2014.  The effective tax rate^9 for the business segments was 48.8% in the second quarter 2014 compared to 53.2% in the second quarter 2013, reflecting mainly the benefit of tax allowances in the UK.  Adjusted net operating income from the business segments was 3,824 M$ in the second quarter 2014 compared to 4,005 M$ in the second quarter 2013, a decrease of 5% mainly due to weaker performance from Refining & Chemicals, which faced a deteriorated refining environment in Europe, and less favorable conditions for certain Marketing & Services activities. In the Upstream, adjusted net operating income was stable despite a high level of maintenance, notably thanks to a lower effective tax rate this quarter.  > Net income (Group share)  Adjusted net income was 3,151 M$ compared to 3,581 M$ in the second quarter 2013, a decrease of 12%.  Adjusted net income excludes the after-tax inventory effect, the effect of changes in fair value and special items^10:    *The after-tax inventory effect had a positive impact on net income of 80     M$ in the second quarter 2014 compared to a negative impact of 525M$ in     the second quarter 2013.   *Changes in fair value had a negative impact on net income of 29 M$ in the     second quarter 2014 compared to a negative impact of 31 M$ in the second     quarter 2013.   *Special items^11 had a negative impact on net income of 98 M$ in the     second quarter 2014 compared to a positive impact of 339 M$ in the second     quarter in 2013.  Net income (Group share) was 3,104 M$ compared to 3,364 M$ in the second quarter2013.  The effective tax rate for the Group was 55.1% in the second quarter 2014 compared to 55.3% in the second quarter 2013.  On June 30, 2014, there were 2,284 million fully-diluted shares compared to 2,277 million shares on June 30, 2013.  Adjusted fully-diluted earnings per share, based on 2,281 million fully-diluted weighted-average shares, was $1.38 compared to $1.57 in the second quarter 2013.  Expressed in euro, adjusted fully-diluted earnings per share was €1.00, a 17% decrease.  > Investments – divestments^12  Investments, excluding acquisitions and including changes in non-current loans, were 7.2B$ in the second quarter 2014, an increase of 12% compared to 6.4B$ in the second quarter 2013.  Acquisitions were 1,100 M$ in the second quarter 2014, essentially comprised of the acquisition of an interest in the Elk and Antelope discoveries in Papua New Guinea, the acquisition of additional Novatek^13 shares and the carry on the Utica gas and condensate field in the United States.  Asset sales in the second quarter 2014 were 201 M$.  Net investments^14 were 8.0 B$ in the second quarter 2014 compared to 5.7B$ in the second quarter 2013.  The sale of Usan was not completed with Sinopec. The Group is actively pursuing the sale process for this asset.  > Cash flow  Cash flow from operations was 5,277 M$ in the second quarter 2014, an increase of 9% compared to the second quarter 2013.  Adjusted cash flow from operations^15 was 5,931 M$ in the second quarter 2014, a decrease of 10% compared to the second quarter 2013.  The Group’s net cash flow^16 in the second quarter 2014 was negative 2,689 M$ compared to negative 878 M$ in the second quarter 2013, reflecting essentially an increase in net investments between the two periods.  The net-debt-to-equity ratio was 27.1% on June 30, 2014, compared to 23.5% on March 31, 2014, and 27.6% on June 30, 2013^17.    *First half 2014 results  > Net operating income from business segments  In the first half 2014, the price of Brent averaged 108.9 $/b compared to 107.5 $/b in the first half 2013. The ERMI was 8.7 $/t compared to 25.5 $/t in the first half 2013.  The effective tax rate^18 for the business segments was 52.5% in the first half 2014 compared to 56.0% in the first half 2013, reflecting mainly the benefit of tax allowances in the UK.  Adjusted net operating income from the business segments was 7,523 M$ in the first half 2014 compared to 8,031 M$ in the first half 2013, a decrease of 6% that was mainly due to the weaker performance of the downstream in a much weaker European refining environment. In the Upstream, adjusted net operating income was stable despite a high level of maintenance, notably thanks to a lower effective tax rate this half.  > Net income (Group share)  Adjusted net income was 6,478 M$ compared to 7,279 M$ in the first half 2013, a decrease of 11%.  Adjusted net income excludes the after-tax inventory effect, the effect of changes in fair value and special items^19:    *The after-tax inventory effect had a negative impact on net income of 57     M$ in the first half 2014 compared to negative impact of 593M$ in the     first half 2013.   *Changes in fair value had a negative impact on net income of 8 M$ in the     first half 2014 compared to a negative impact of 30 M$ in the first half     2013.   *Special items^20 had a positive impact on net income of 26 M$ in the first     half 2014, including mainly the gain on the sale (partial IPO) of an     interest in Gaztransport & Technigaz (GTT) partially offset by the     impairment of the Shtokman project in Russia. Special items had a negative     impact on net income of 1,344 M$ in the first half 2013.  Net income (Group share) was 6,439 M$ compared to 5,312 M$ in the first half 2013.  The effective tax rate for the Group was 56.5% in the first half 2014 compared to 57.4% in the first half 2013, reflecting mainly the benefit of tax allowances in the UK, and, effective January 1, 2014, due to its fiscal situation in France, the Group is no longer recognizing the benefit of tax credits related to net operating losses in France.  On June 30, 2014, there were 2,284 million fully-diluted shares compared to 2,277 million shares on June 30, 2013.  Adjusted fully-diluted earnings per share, based on 2,279 million fully-diluted weighted-average shares, was $2.84 in the first half 2014 compared to $3.20 in the first half 2013.  Expressed in euro, adjusted fully-diluted earnings per share was €2.07, a decrease of 15%.  > Investments – divestments^21  Investments, excluding acquisitions and including changes in non-current loans, were 12.4 B$ in the first half 2014, a decrease of 4% compared to 12.9B$ in the first half 2013.  Acquisitions were 1,399 M$ in the first half 2014, essentially comprised of the acquisition of an interest in the Elk and Antelope discoveries in Papua New Guinea, the acquisition of additional Novatek^22 shares and the carry on the Utica gas and condensate field in the United States.  Asset sales in the first half 2014 were 1,677 B$, essentially comprised of the sale of block 15/06 in Angola and the sale (partial IPO) of an interest in Gaztransport & Technigaz (GTT).  Net investments^23 were 12.0 B$ in the first half 2014, compared to 12.3B$ in the first half 2013.  The sale of Usan was not completed with Sinopec. The Group is actively pursuing the sale process for this asset.  > Cash flow  Cash flow from operations was 10,615 M$ in the first half 2014, an increase of 9% compared to the first half 2013.  Adjusted cash flow from operations^24 was 12,135 M$, a decrease of 9% compared to the first half 2013.  The Group’s net cash flow^25 was negative 1,376 M$ compared to negative 2,585M$ in the first half 2013, reflecting essentially a decrease in investments and an increase in cash flow between the two periods.  The net-debt-to-equity ratio was 27.1% on June 30, 2014, compared to 27.6% on June30, 2013^26.    *Analysis of business segment results  Upstream  > Environment – liquids and gas price realizations*                          2Q14                                           1H14 vs 2Q14   1Q14   2Q13   vs                          1H14   1H13   1H13                         2Q13 109.7  108.2  102.4  +7%   Brent ($/b)            108.9  107.5  +1% 103.0  102.1  96.6   +7%   Average liquids price  102.5  101.7  +1%                                ($/b) 6.52   7.06   6.62   -2%   Average gas price      6.80   6.97   -2%                                ($/Mbtu) 73.1   73.4   69.8   +5%   Average hydrocarbon    73.2   73.6   -1%                                price ($/boe)  * consolidated subsidiaries, excluding fixed margins  > Production                          2Q14   Hydrocarbon                             1H14 vs 2Q14   1Q14   2Q13   vs    production             1H14   1H13   1H13                         2Q13 2,054  2,179  2,290  -10%  Combined production    2,116  2,306  -8%                                (kboe/d) 984    1,031  1,160  -15%  - Liquids (kb/d)       1,007  1,176  -14% 5,867  6,268  6,169  -5%   - Gas (Mcf/d)          6,066  6,153  -1%  Hydrocarbon production was 2,054 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2014, a decrease of 10% compared to the second quarter 2013, essentially due to the following :    *-6.5% for changes in the portfolio, essentially the expiration of the ADCO     license in the United Arab Emirates;   *-0.5% for security conditions which improved in Nigeria but deteriorated     in Libya; and   *-3% for the normal production decline and the high level of planned     maintenance, partially offset by the ramp up on new projects.  Excluding the ADCO license, which expired in January 2014, hydrocarbon production in the second quarter 2014 decreased by 4% and 5% compared to the second quarter 2013 and first quarter 2014, respectively.  In the first half 2014, hydrocarbon production was 2,116 kboe/d, a decrease of 8% compared to the first half 2013, essentially due to the following :    *-5.5% for changes in the portfolio, essentially the expiration of the ADCO     license in the United Arab Emirates;   *-1% for security conditions in Libya and Nigeria; and   *-1.5% for the normal production decline and the high level of planned     maintenance, partially offset by the ramp up on new projects.  In the first half 2014, excluding the ADCO license, hydrocarbon production decreased by 3% compared to the first half 2013.  > Results                          2Q14   In millions of                          1H14 vs 2Q14   1Q14   2Q13   vs    dollars              1H14    1H13    1H13                         2Q13 4,810  5,501  5,621  -14%  Adjusted operating   10,311  12,170  -15%                                income* 3,051  3,092  3,041  -     Adjusted net         6,143   6,298   -2%                                operating income*                                - includes income 769    733    687    +12%  from equity          1,502   1,524   -1%                                affiliates                                                           7,999  5,311  6,603  +21%  Investments          13,310  13,544  -2% 568    1,799  1,456  -61%  Divestments          2,367   2,174   +9% 4,805  3,811  2,764  +74%  Cash flow from       8,616   8,245   +4%                                operations 4,841  5,133  5,595  -13%  Adjusted cash flow   9,974   11,123  -10%                                from operations  * detail of adjustment items shown in the business segment information annex to financial statements.  Adjusted net operating income from the Upstream segment was 3,051 M$ in the second quarter 2014, stable compared to the second quarter 2013. The negative impact of the decrease in hydrocarbon production and the increase in costs due to the high level of planned maintenance was offset mainly by the higher realized price for liquids and the lower tax rate.  The effective tax rate for the Upstream segment was 52.3% compared to 58.2% in the second quarter 2013. This decrease is mainly due to tax allowances in the UK, notably on the Laggan field, recognized in the second quarter 2014.  Adjusted net operating income from the Upstream segment in the first half 2014 was 6,143 M$ compared to 6,298M$ in the first half 2013, a decrease of 2% reflecting essentially the lower production and higher costs due to the high level of planned maintenance, partially offset by the lower tax rate.  The return on average capital employed (ROACE^27) for the Upstream segment was 13% for the twelve months ended June 30, 2014, compared to 13% for the twelve months ended March 31, 2014, and 14% for the full-year 2013.  Refining & Chemicals  > Refinery throughput and utilization rates*                          2Q14                                              1H14 2Q14   1Q14   2Q13   vs                             1H14   1H13   vs                         2Q13                                              1H13 1,622  1,700  1,772  -8%   Total refinery            1,662  1,769  -6%                                throughput (kb/d) 634    617    729    -13%  - France                  626    678    -8% 695     787     781     -11%   - Rest of Europe           741     824     -10% 293    296    262    +12%  - Rest of world           295    267    +10%                        Utlization rates**                     72%     77%     83%     -      - Based on crude only      72%     83%     - 74%    83%    87%    -     - Based on crude and      76%    86%    -                                other feedstock  * includes share of TotalErg. Results for refineries in South Africa, French Antilles and Italy are reported in the Marketing & Services segment. ** based on distillation capacity at the beginning of the year.  In the second quarter 2014, refinery throughput decreased by 8% compared to the second quarter 2013, reflecting essentially the turnarounds at Leuna and Vlissingen as well as voluntary shutdowns in response to weak refining margins in Europe. Included in June are the first runs from the new Satorp refinery, where all the units are now operational.  In the first half 2014, refinery throughput decreased by 6% compared to the first half 2013, reflecting essentially the turnarounds at Grandpuits, Leuna and Vlissingen, as well as voluntary shutdowns in response to weak refining margins in Europe.  > Results                          2Q14   In millions of dollars                     1H14 2Q14   1Q14   2Q13   vs    (except the ERMI)         1H14   1H13   vs                         2Q13                                              1H13                                European refining margin 10.9   6.6    24.1   -55%                            8.7    25.5   -66%                                indicator - ERMI ($/t)                                                              368    328    520    -29%  Adjusted operating        696    958    -27%                                income* 401    346    518    -23%  Adjusted net operating    747    955    -22%                                income* 174    139    146    +18%  - contribution of         313    265    +18%                                Specialty chemicals**                                                              475    250    499    -5%   Investments               725    1,202  -40% 15     11     272    -94%  Divestments               26     308    -92% (133)  1,593  1,713  na    Cash flow from            1,460  1,331  +10%                                operations 683    617    800    -15%  Adjusted cash flow from   1,300  1,441  -10%                                operations  * detail of adjustment items shown in the business segment information annex to financial statements. ** Hutchinson, Bostik, Atotech.  The ERMI averaged 10.9 $/t in the second quarter 2014, a decrease of 55% compared to the second quarter 2013. Petrochemical margins remained high in the United States but retreated in Europe and Asia.  Adjusted net operating income from the Refining & Chemicals segment was 401 M$ in the second quarter 2014, compared to 518 M$ in the second quarter 2013, reflecting essentially the deterioration of the European refining environment, partially offset by the ongoing implementation of synergy and efficiency plans between the two periods.  Adjusted net operating income from the Refining & Chemicals segment for the first half 2014 was 747M$, a decrease of 22% compared to the first half 2013, reflecting essentially the strong deterioration of the European refining environment.  The ROACE^28 for the Refining & Chemicals segment was 8% for the twelve months ended June 30, 2014, compared to 9% for the twelve months ended March 31, 2014, and 9% for the full-year 2013.  Marketing & Services  > Refined product sales                          2Q14                                              1H14 2Q14   1Q14   2Q13   vs    Sales in kb/d*            1H14   1H13   vs                         2Q13                                              1H13 1,102  1,058  1,150  -4%   Europe                    1,080  1,129  -4% 731    593    633    +15%  Rest of world             662    620    +7% 1,833  1,651  1,783  +3%   Total Marketing &         1,742  1,749  -                                Services sales  * excludes trading and bulk Refining sales, includes share of TotalErg  In the second quarter 2014, sales increased by 3% compared to the second quarter last year, mainly due to higher network sales, particularly in Africa, Middle East and Europe, partially offset by lower sales of domestic fuels and LPGs.  Sales volumes for the first half 2014 were stable compared to the first half 2013, due to the offsetting effects of a 4% decrease in European sales and net growth outside of Europe, particularly in the Americas and Middle East.  > Results                             2Q14   In millions of                          1H14 2Q14    1Q14    2Q13    vs    dollars              1H14    1H13    vs                            2Q13                                           1H13 28,213  26,470  26,851  +5%   Sales                54,683  54,583  - 405     353     567     -29%  Adjusted operating   758     1,083   -30%                                   income* 372     261     446     -17%  Adjusted net         633     778     -19%                                   operating income* (8)     28      -       na    - contribution of    20      (17)    na                                   New Energies                                                              203     276     318     -36%  Investments          479     564     -15% 28      26      16      +75%  Divestments          54      66      -18% 304     89      542     -44%  Cash flow from       393     422     -7%                                   operations 551     379     704     -22%  Adjusted cash flow   930     1,255   -26%                                   from operations  * detail of adjustment items shown in the business segment information annex to financial statements.  The Marketing & Services segment’s sales were 28 B$ in the second quarter 2014, an increase of 5% compared to the second quarter 2013.  Adjusted net operating income from the Marketing & Services segment was 372 M$ in the second quarter 2014, a decrease of 17% compared to the second quarter 2013, reflecting in particular less favorable margins in Europe related to weather conditions.  Adjusted net operating income from the Marketing & Services segment in the first half 2014 was 633M$, a decrease of 19% compared to the first half 2013, essentially due to the impact of weather conditions on sales and a less favorable trend in European margins, partially offset by a global increase in the marketing of petroleum products in growing markets.  The ROACE^29 for the Marketing & Services segment was 14% for the twelve months ended June 30, 2014, compared to 15% for the twelve months ended March 31, 2014, and 16% for the full-year 2013.    *TOTAL S.A. parent company accounts  Net income for TOTAL S.A., the parent company, was 3,397 M€ in the first half 2014, compared to 3,876 M€ in the first half 2013.    *Summary and outlook  The ROACE^30 for the Group for the twelve months ended June 30, 2014, was 12%. This compares with 12% for the twelve months ended March 31, 2014, and 13% for the full-year 2013.  Return on equity for the twelve months ended June 30, 2014, was 14%.  In the Upstream, before the end of this year, CLOV should reach its production plateau of 160 kb/d, and the Group should start up Laggan-Tormore and Ofon Phase 2. In exploration, results are expected in the coming months from high-potential wells currently drilling in Angola’s Kwanza basin, in South Africa and in Indonesia.  In the downstream, all of the units at the Satorp refinery in Saudi Arabia are operational. Since the start of the third quarter 2014, European refining margins have improved compared to the very low levels in the first half 2014, but remain very volatile.  Several asset sales have been announced this year, and, as they are closed, the program total will be well within the objective of $15-20 billion for the 2012-14 period.  In addition, all of the teams are involved in the finalization of the announced cost reduction plan, which will be presented at the Investors’ day on September 22, 2014.  As approved by the Board of Directors on April 29, 2014, Total will pay a first quarter 2014 interim dividend of 0.61 €/share on September 26, 2014.                                      ■ ■ ■  To listen to CFO Patrick de La Chevardière’s conference call with financial analysts today at 14:00 (London time) please log on to www.total.com  or call +44 (0)203364 5196 in Europe or +1855255 3886 in the United States. For a replay, please consult the website or call +44 (0)203367 9460 in Europe or +1877642 3018 in the United States (code: 288310).  This document does not constitute the Financial Report for the first half which will be separately published, in accordance with article L.451-1-2 III of the French Code monétaire et financier, and is available on the Total website www.total.com..  This press release presents the first half 2014 results from the consolidated financial statements of TOTAL S.A. as of June 30, 2014. The notes to these consolidated financial statements (unaudited) are available on the TOTAL web site (www.total.com).  This document may contain forward-looking information on the Group (including objectives and trends), as well as 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, strategy and plans of TOTAL. These data do not represent forecasts within the meaning of European Regulation No. 809/2004.  Such forward-looking information and statements included in this document are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a significant difference between actual results and those anticipated, including currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental regulatory considerations and general economic and business conditions. Certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.  Neither TOTAL nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Further information on factors, risks and uncertainties that could affect the Company’s financial results or the Group’s activities is provided in the most recent Registration Document filed by the Company with the French Autorité des Marchés Financiers and annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).  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. 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. These 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 asset 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) 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 price differentials 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. (iii) Effect of changes in fair value The effect of changes in fair value presented as an adjustment item reflects for some transactions differences between internal measures 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. Furthermore, TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in Group’s internal economic performance. IFRS precludes recognition of this fair value effect.  The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value.  Euro amounts presented herein represent dollar amounts converted at the average euro-dollar exchange rate for the applicable period and are not the result of financial statements prepared in euros.  Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this presentation, such as resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form20-F, File N°1-10888, available from us at 2,Place Jean Millier – Arche Nord Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at our website: www.total.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on the SEC’s website: www.sec.gov.                         Operating information by segment                   for the second quarter and first half 2014    *Upstream                          2Q14 vs   Combined liquids and                   1H14 2Q14   1Q14   2Q13   2Q13     gas production by     1H14   1H13   vs                                   region (kboe/d)                        1H13 329    394    383    -14%     Europe                361    388    -7% 618     655     688     -10%      Africa                 637     690     -8% 380     405     527     -28%      Middle East            393     535     -27% 91      82      70      +30%      North America          86      71      +21% 157     159     171     -8%       South America          158     172     -8% 238     242     229     +4%       Asia-Pacific           240     232     +3% 241    242    222    +9%      CIS                   241    218    +11% 2,054  2,179  2,290  -10%     Total production      2,116  2,306  -8% 544    583    678    -20%     Includes equity       563    679    -17%                                   affiliates  2Q14  1Q14   2Q13   2Q14     Liquids production   1H14   1H13   1H14 vs                        vs 2Q13   by region (kb/d)                      1H13 159   172    154    +3%      Europe               165    160    +3% 482    508     542     -11%      Africa                495     547     -10% 190    203     320     -41%      Middle East           197     324     -39% 40     34      27      +48%      North America         37      27      +37% 50     50      55      -9%       South America         50      56      -11% 29     30      29      -         Asia-Pacific          29      30      -3% 34    34     33     +3%      CIS                  34     32     +6% 984   1,031  1,160  -15%     Total production     1,007  1,176  -14% 197   208    323    -39%     Includes equity      202    324    -38%                                  affiliates                                                                           1H14                         2Q14 vs   Gas production by                      vs 2Q14   1Q14   2Q13   2Q13     region (Mcf/d)        1H14   1H13   1H13                                                                            936    1,215  1,285  -27%     Europe                1,075  1,250  -14% 710     748     741     -4%       Africa                 729     724     +1% 1,042   1,104   1,105   -6%       Middle East            1,073   1,135   -5% 285     266     242     +18%      North America          276     246     +12% 601     609     649     -7%       South America          605     643     -6% 1,188   1,202   1,121   +6%       Asia-Pacific           1,194   1,136   +5% 1,105  1,124  1,026  +8%      CIS                   1,114  1,019  +9% 5,867  6,268  6,169  -5%      Total production      6,066  6,153  -1% 1,895  2,029  1,900  -        Includes equity       1,962  1,911  +3%                                   affiliates  2Q14  1Q14  2Q13  2Q14 vs  Liquefied natural gas  1H14  1H13  1H14 vs                      2Q13                                            1H13 2.93  3.12  2.89  +1%      LNG sales* (Mt)        6.05  5.82  +4%  * sales, Group share, excluding trading; 2013 data restated to reflect volume estimates for Bontang LNG in Indonesia based on the 2013 SEC coefficient.    *Downstream (Refining & Chemicals and Marketing & Services)                          2Q14   Refined product sales by                   1H14 2Q14   1Q14   2Q13   vs    region (kb/d)*            1H14   1H13   vs                         2Q13                                              1H13 2,017  2,005  2,074  -3%   Europe **                 2,011  2,077  -3% 587     475     442     +33%   Africa                     531     445     +19% 643     474     544     +18%   Americas                   559     513     +9% 611    573    520    +18%  Rest of world             592    513    +15% 3,858  3,528  3,580  +8%   Total consolidated sales  3,693  3,547  +4% 576    634    635    -9%   Includes bulk sales       605    629    -4% 1,449  1,243  1,162  +25%  Includes trading          1,346  1,169  +15%  * includes share of TotalErg. ** restated historical amounts.                                 Adjustment items    *Adjustments to operating income  2Q14  1Q14   2Q13   In millions of dollars                   1H14   1H13 (62)  (115)  (49)   Special items affecting operating        (177)  (56)                        income -     -      -      - Restructuring charges                  -      (2) (40)   -       -       - Impairments                             (40)    (5) (22)  (115)  (49)   - Other                                  (137)  (49) 117   (181)  (762)  Pre-tax inventory effect : FIFO vs.      (64)   (878)                        replacement cost (36)  26     (42)   Effect of changes in fair value          (10)   (39)                                                                 19    (270)  (853)  Total adjustments affecting operating    (251)  (973)                        income    *Adjustments to net income (Group share)  2Q14  1Q14   2Q13   In millions of dollars                 1H14   1H13                        Special items affecting net income (98)  124    339                                           26     (1,344)                        (Group share) -     599    372    = Gain (loss) on asset sales           599    (1,274) (5)   -      -      - Restructuring charges                (5)    (33) (76)   (350)   -       - Impairments                           (426)   (4) (17)  (125)  (33)   - Other                                (142)  (33) 80    (137)  (525)  After-tax inventory effect : FIFO vs.  (57)   (593)                        replacement cost (29)  21     (31)   Effect of changes in fair value        (8)    (30)                                                               (47)  8      (217)  Total adjustments affecting net        (39)   (1,967)                        income                               Effective tax rates  2Q14   1Q14   2Q13   Effective tax rate*  1H14   1H13 52.3%  59.5%  58.2%  Upstream             56.3%  60.6% 55.1%  57.7%  55.3%  Group                56.5%  57.4%  * tax on adjusted net operating income / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).                            Investments - Divestments                          2Q14   Expressed in millions                      1H14 2Q14   1Q14   2Q13   vs    of dollars              1H14    1H13    vs                         2Q13                                              1H13 7,193  5,202  6,449  +12%  Investments excluding   12,395  12,864  -4%                                acquisitions 362     319     518     -30%   - Capitalized            681      996      -32%                                exploration 1,075   261     367     x3     - Increase in            1,336    991      +35%                                non-current loans (430)  (364)  (357)  +20%  - Repayment of          (794)   (616)   +29%                                non-current loans 1,100  299    653    +68%  Acquisitions            1,399   1,883   -26% 201    1,476  1,393  -86%  Asset sales             1,677   1,947   -14%                                Other transactions 126    -      (7)    na    with non-controlling    126     464     -73%                                interests 7,966  4,025  5,716  +39%  Net investments*        11,991  12,336  -3%  * Net investments = investments including acquisitions – asset sales – other transactions with non-controlling interests.                             Net-debt-to-equity ratio  in millions of dollars                      6/30/2014  3/31/2014  6/30/2013 Current borrowings                          13,525     11,676     13,119 Net current financial assets                 (531)       (522)       (609) Net financial assets classified as held      (62)        (17)        1,014 for sale Non-current financial debt                   39,433      37,506      29,557 Hedging instruments of non-current debt      (1,973)     (1,758)     (1,708) Cash and cash equivalents                   (22,166)   (22,787)   (15,118) Net debt                                    28,226     24,098     26,255                                                                 Shareholders’ equity                         102,872     103,136     94,790 Estimated dividend payable                   (1,894)     (3,817)     (1,750) Non-controlling interests                   3,344      3,248      2,225 Equity                                      104,322    102,567    95,265                                                                 Net-debt-to-equity ratio                    27.1%      23.5%      27.6%                               2014 sensitivities*                                          Impact on adjusted Impact on adjusted                  Scenario Change       operating income   net operating                                         (e)                income                                                            (e) Dollar            1.30 $/€ +0.1 $ per € -0.7 B$            -0.3 B$ Brent             100 $/b  +1 $/b       +0.30 B$           +0.15 B$ European refining margin index      30 $/t   +1 $/t       +0.08 B$           +0.05 B$ (ERMI)  *Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Following the change to dollar-denominated reporting, effective January 1, 2014, the €-$ sensitivity has been changed. The impact of the €-$ sensitivity on operating income and on net operating income is 60% and 80% attributable to the Refining & Chemicals segment, respectively.  Sensitivities are estimates based on assumptions about the Group’s portfolio in 2014. Actual results could vary significantly from estimates based on the application of these sensitivities.                        Return on average capital employed    *Twelve months ended June 30, 2014  in millions of dollars        Upstream  Refining &  Marketing &   Group                                           Chemicals    Services Adjusted net operating        12,295    1,649       1,409           14,431 income Capital employed at            91,097     20,924       9,838           118,852 6/30/2013* Capital employed at           103,572   19,265      10,324          129,967 6/30/2014* ROACE                         12.6%     8.2%        14.0%           11.6%    *Twelve months ended March 31, 2014  in millions of dollars        Upstream  Refining &  Marketing &   Group                                           Chemicals    Services Adjusted net operating        12,285    1,766       1,483           14,863 income Capital employed at            86,034     21,860       9,610           116,094 3/31/2013* Capital employed at           97,924    18,516      10,314          126,068 3/31/2014* ROACE                         13.4%     8.7%        14.9%           12.3%    *Full-year 2013  in millions of dollars        Upstream  Refining &  Marketing &   Group                                           Chemicals    Services Adjusted net operating        12,450    1,857       1,554           15,230 income Capital employed at            84,260     20,783       9,232           111,080 12/31/2012* Capital employed at           95,529    19,752      10,051          122,451 12/31/2013* ROACE                         13.8%     9.2%        16.1%           13.0%  * at replacement cost (excluding after-tax inventory effect).  ^1 TOTAL changed the presentation currency of the Group’s Consolidated Financial Statements from the euro to the US dollar, effective January 1, 2014, to make its financial information more readable by better reflecting the performance of its activities, which are carried out mainly in US dollars. Comparative 2013 information has been restated.  ^2 Definition of adjusted results on page 2 – euro amounts represent dollar amounts converted at the average €-$ exchange rate for the period: 1.3711 $/€ in the second quarter 2014, 1.3062 $/€ in the second quarter 2013, 1.3696 $/€ in the first quarter 2014, 1.3703 $/€ in the first half 2014 and 1.3134 $/€ in the first half 2013.  ^3 Group share.  ^4 The ex-dividend date will be December 15, 2014, and the payment date will be December 17, 2014.  ^5 Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact of changes for fair value. Adjusted cash flow from operations is defined as cash flow from operations before changes in working capital at replacement cost; adjustment items are on page 16 and the inventory valuation effect is explained on page 13.  ^6 Including acquisitions.  ^7 Net investments = investments including acquisitions – asset sales – other transactions with non-controlling interests.  ^8 Certain transactions referred to in the highlights are subject to approval by authorities or to other conditions as per the agreements.  ^9 Defined as: (tax on adjusted net operating income) / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).  ^10 Detail shown on page 13.  ^11 Detail shown on page 16.  ^12 Detail shown on page 17.  ^13 The Group’s interest in Novatek was 18.0% at June 30, 2014.  ^14 Net investments = investments including acquisitions and changes in non-current loans – asset sales – other transactions with non-controlling interests.  ^15 Cash flow from operations at replacement cost before changes in working capital.  ^16 Net cash flow = cash flow from operations - net investments (including other transactions with non-controlling interests).  ^17 Detail shown on page 18.  ^18 Defined as: (tax on adjusted net operating income) / (adjusted net operating income - income from equity affiliates - dividends received from investments + tax on adjusted net operating income).  ^19 Detail shown on page 13.  ^20 Detail shown on page 16.  ^21 Detail shown on page 17.  ^22 The Group’s interest in Novatek was 18.0% at June 30, 2014  ^23 Net investments = investments including acquisitions and changes in non-current loans – asset sales – other transactions with non-controlling interests.  ^24 Cash flow from operations at replacement cost before changes in working capital.  ^25 Net cash flow = cash flow from operations - net investments (including other transactions with non-controlling interests).  ^26 Detail shown on page 18.  ^27 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.  ^28 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.  ^29 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.  ^30 Calculated based on adjusted net operating income and average capital employed, using replacement cost, as shown on page 19.                            Total financial statements                 Second quarter 2014 consolidated accounts, IFRS  CONSOLIDATED STATEMENT OF INCOME                               TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                        2^nd quarter   1^st quarter   2^nd quarter (M$) ^(a)                                                                                          2014           2014           2013 Sales                               62,561         60,687         61,345 Excise taxes                        (6,354)        (5,832)        (5,839) Revenues from sales                 56,207         54,855         55,506 Purchases, net of inventory         (40,371)       (38,332)       (39,631) variation Other operating expenses            (7,229)        (7,364)        (7,288) Exploration costs                   (301)          (619)          (354) Depreciation, depletion and amortization of tangible assets     (2,929)        (2,745)        (2,534) and mineral interests Other income                        96             1,100          462 Other expense                       (163)          (149)          (120) Financial interest on debt          (266)          (201)          (238) Financial income from marketable    31             19             18 securities & cash equivalents Cost of net debt                    (235)          (182)          (220) Other financial income              265            161            206 Other financial expense             (183)          (166)          (179) Equity in net income (loss) of      874            473            794 affiliates Income taxes                       (2,902)       (3,597)       (3,229) Consolidated net income            3,129         3,435         3,413 Group share                         3,104          3,335          3,364 Non-controlling interests          25            100           49 Earnings per share ($)             1.37          1.47          1.49 Fully-diluted earnings per share   1.36          1.46          1.48 ($) ^(a) Except for per share amounts.  CONSOLIDATED STATEMENT OF                                      COMPREHENSIVE INCOME TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                        2^nd quarter   1^st quarter   2^nd quarter (M$)                                                                                               2014           2014           2013 Consolidated net income            3,129         3,435         3,413 Other comprehensive income                                                                    Actuarial gains and losses          (416)          (199)          (248) Tax effect                          154            57             95 Currency translation adjustment    (732)         3             1,613 generated by the mother company Items not potentially              (994)         (139)         1,460 reclassifiable to profit and loss Currency translation adjustment     512            36             (988) Available for sale financial        (6)            3              8 assets Cash flow hedge                     30             35             80 Share of other comprehensive income of equity affiliates, net    436            (456)          (541) amount Other                               (4)            (3)            (1) Tax effect                         (5)           (13)          (32) Items potentially reclassifiable   963           (398)         (1,474) to profit and loss Total other comprehensive income   (31)          (537)         (14) (net amount)                                                              Comprehensive income               3,098         2,898         3,399 - Group share                       3,078          2,801          3,368 - Non-controlling interests         20             97             31  CONSOLIDATED STATEMENT OF INCOME                                   TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                                                1^st half   1^st half (M$) ^(a)                                                                                                                   2014        2013 Sales                                                    123,248     124,906 Excise taxes                                             (12,186)    (11,380) Revenues from sales                                      111,062     113,526 Purchases, net of inventory variation                    (78,703)    (79,950) Other operating expenses                                 (14,593)    (14,482) Exploration costs                                        (920)       (760) Depreciation, depletion and amortization of tangible     (5,674)     (5,387) assets and mineral interests Other income                                             1,196       504 Other expense                                            (312)       (2,141) Financial interest on debt                               (467)       (461) Financial income from marketable securities & cash       50          46 equivalents Cost of net debt                                         (417)       (415) Other financial income                                   426         342 Other financial expense                                  (349)       (348) Equity in net income (loss) of affiliates                1,347       1,743 Income taxes                                            (6,499)    (7,204) Consolidated net income                                 6,564      5,428 Group share                                              6,439       5,312 Non-controlling interests                               125        116 Earnings per share ($)                                  2.84       2.35 Fully-diluted earnings per share ($)                    2.82       2.34  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                     TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                                                1^st half   1^st half (M$)                                                                                                                        2014        2013 Consolidated net income                                 6,564      5,428 Other comprehensive income                                                                       Actuarial gains and losses                               (615)       (25) Tax effect                                               211         8 Currency translation adjustment generated by the        (729)      (599) mother company Items not potentially reclassifiable to profit and      (1,133)    (616) loss Currency translation adjustment                          548         (391) Available for sale financial assets                      (3)         3 Cash flow hedge                                          65          95 Share of other comprehensive income of equity            (20)        (494) affiliates, net amount Other                                                    (7)         (12) Tax effect                                              (18)       (35) Items potentially reclassifiable to profit and loss     565        (834) Total other comprehensive income (net amount)           (568)      (1,450)                                                                   Comprehensive income                                    5,996      3,978 - Group share                                            5,879       3,908 - Non-controlling interests                              117         70  CONSOLIDATED BALANCE SHEET                                        TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                            June 30,   March 31,   December   June 30, (M$)                               2014      2014       31, 2013  2013                                                                      ASSETS Non-current assets Intangible assets, net              18,995     18,899      18,395     17,424 Property, plant and equipment,      108,468    106,377     104,480    93,387 net Equity affiliates : investments     21,256     19,951      20,417     19,037 and loans Other investments                   1,786      2,091       1,666      1,583 Hedging instruments of              1,973      1,758       1,418      1,708 non-current financial debt Deferred income taxes               2,842      2,933       3,838      3,704 Other non-current assets           4,263     4,265      4,406     3,813 Total non-current assets           159,583   156,274    154,620   140,656 Current assets Inventories, net                    23,484     21,755      22,097     20,196 Accounts receivable, net            21,698     23,359      23,422     25,587 Other current assets                16,519     15,873      14,892     14,850 Current financial assets            1,003      872         739        668 Cash and cash equivalents           22,166     22,787      20,200     15,118 Assets classified as held for      4,317     2,472      3,253     5,104 sale Total current assets               89,187    87,118     84,603    81,523 Total assets                        248,770    243,392     239,223    222,179                                                                        LIABILITIES & SHAREHOLDERS' EQUITY                                                                        Shareholders' equity Common shares                       7,511      7,496       7,493      7,490 Paid-in surplus and retained        101,100    101,568     98,254     94,637 earnings Currency translation adjustment     (1,436)    (1,625)     (1,203)    (3,063) Treasury shares                    (4,303)   (4,303)    (4,303)   (4,274) Total shareholders' equity -       102,872   103,136    100,241   94,790 Group Share Non-controlling interests          3,344     3,248      3,138     2,225 Total shareholders' equity         106,216   106,384    103,379   97,015 Non-current liabilities Deferred income taxes               16,397     17,045      17,850     16,736 Employee benefits                   4,725      4,362       4,235      4,751 Provisions and other non-current    17,445     17,582      17,517     14,464 liabilities Non-current financial debt         39,433    37,506     34,574    29,557 Total non-current liabilities      78,000    76,495     74,176    65,508 Current liabilities Accounts payable                    28,902     28,621      30,282     26,380 Other creditors and accrued         19,994     19,097      18,948     18,162 liabilities Current borrowings                  13,525     11,676      11,193     13,119 Other current financial             472        350         381        59 liabilities Liabilities directly associated with the assets classified as      1,661     769        864       1,936 held for sale Total current liabilities          64,554    60,513     61,668    59,656 Total liabilities and               248,770    243,392     239,223    222,179 shareholders' equity  CONSOLIDATED STATEMENT OF CASH                                 FLOW TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                        2^nd quarter   1^st quarter   2^nd quarter (M$)                                                                                               2014           2014           2013 CASH FLOW FROM OPERATING ACTIVITIES                                                                    Consolidated net income             3,129          3,435          3,413 Depreciation, depletion and         3,087          3,174          2,759 amortization Non-current liabilities, valuation allowances and deferred   (156)          399            (108) taxes Impact of coverage of pension       -              -              - benefit plans (Gains) losses on disposals of      (17)           (1,023)        (363) assets Undistributed affiliates' equity    (125)          11             94 earnings (Increase) decrease in working      (771)          (685)          (1,025) capital Other changes, net                 130           27            68 Cash flow from operating            5,277          5,338          4,838 activities                                                                    CASH FLOW USED IN INVESTING ACTIVITIES                                                                    Intangible assets and property,     (6,800)        (5,448)        (6,836) plant and equipment additions Acquisitions of subsidiaries, net   (414)          -              - of cash acquired Investments in equity affiliates    (434)          (156)          (256) and other securities Increase in non-current loans      (1,075)       (261)         (367) Total expenditures                  (8,723)        (5,865)        (7,459) Proceeds from disposals of intangible assets and property,     135            1,020          1,106 plant and equipment Proceeds from disposals of          -              -              264 subsidiaries, net of cash sold Proceeds from disposals of          66             456            23 non-current investments Repayment of non-current loans     430           364           357 Total divestments                  631           1,840         1,750 Cash flow used in investing         (8,092)        (4,025)        (5,709) activities                                                                    CASH FLOW USED IN FINANCING ACTIVITIES                                                                    Issuance (repayment) of shares: - Parent company shareholders       304            33             432 - Treasury shares                   -              -              - Dividends paid: - Parent company shareholders       (1,901)        (1,835)        (1,772) - Non-controlling interests         (139)          (7)            (92) Other transactions with             126            -              (7) non-controlling interests Net issuance (repayment) of         2,931          4,189          734 non-current debt Increase (decrease) in current      956            (1,167)        (894) borrowings Increase (decrease) in current      65             (117)          6 financial assets and liabilities Cash flow used in financing        2,342         1,096         (1,593) activities Net increase (decrease) in cash     (473)          2,409          (2,464) and cash equivalents Effect of exchange rates            (148)          178            404 Cash and cash equivalents at the   22,787        20,200        17,178 beginning of the period Cash and cash equivalents at the   22,166        22,787        15,118 end of the period  CONSOLIDATED STATEMENT OF CASH FLOW                                TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                                                1^st half   1^st half (M$)                                                                                                                        2014        2013 CASH FLOW FROM OPERATING ACTIVITIES                                                                       Consolidated net income                                  6,564       5,428 Depreciation, depletion and amortization                 6,261       5,805 Non-current liabilities, valuation allowances and        243         (49) deferred taxes Impact of coverage of pension benefit plans              -           - (Gains) losses on disposals of assets                    (1,040)     1,510 Undistributed affiliates' equity earnings                (114)       (372) (Increase) decrease in working capital                   (1,456)     (2,751) Other changes, net                                      157        180 Cash flow from operating activities                      10,615      9,751                                                                       CASH FLOW USED IN INVESTING ACTIVITIES                                                                       Intangible assets and property, plant and equipment      (12,248)    (13,325) additions Acquisitions of subsidiaries, net of cash acquired       (414)       (21) Investments in equity affiliates and other securities    (590)       (1,026) Increase in non-current loans                           (1,336)    (991) Total expenditures                                       (14,588)    (15,363) Proceeds from disposals of intangible assets and         1,155       1,660 property, plant and equipment Proceeds from disposals of subsidiaries, net of cash     -           264 sold Proceeds from disposals of non-current investments       522         23 Repayment of non-current loans                          794        616 Total divestments                                       2,471      2,563 Cash flow used in investing activities                   (12,117)    (12,800)                                                                       CASH FLOW USED IN FINANCING ACTIVITIES                                                                       Issuance (repayment) of shares: - Parent company shareholders                            337         432 - Treasury shares                                        -           - Dividends paid:                                          -           - - Parent company shareholders                            (3,736)     (3,532) - Non-controlling interests                              (146)       (94) Other transactions with non-controlling interests        126         464 Net issuance (repayment) of non-current debt             7,120       4,499 Increase (decrease) in current borrowings                (211)       (5,162) Increase (decrease) in current financial assets and      (52)        1,184 liabilities Cash flow used in financing activities                  3,438      (2,209) Net increase (decrease) in cash and cash equivalents     1,936       (5,258) Effect of exchange rates                                 30          (33) Cash and cash equivalents at the beginning of the       20,200     20,409 period Cash and cash equivalents at the end of the period      22,166     15,118  CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                                                    TOTAL                                                                         (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                                                      Paid-in                                            Shareholders'                                            surplus    Currency                                equity -        Non-controlling   Total                   Common shares issued     and        translation   Treasury shares                           interests         shareholders'                                            retained   adjustment                              Group Share                       equity                                            earnings (M$)             Number         Amount                       Number         Amount                                  As of January    2,365,933,146  7,454   92,485    (1,696)      (108,391,639)  (4,274)  93,969         1,689            95,658 1, 2013 Net income of the first half    -               -        5,312      -             -               -         5,312           116               5,428 2013 Other comprehensive     -               -        (37)       (1,367)       -               -         (1,404)         (46)              (1,450) Income Comprehensive     -               -        5,275      (1,367)       -               -         3,908           70                3,978 Income Dividend          -               -        (3,526)    -             -               -         (3,526)         (94)              (3,620) Issuance of       10,802,845      36       396        -             -               -         432             -                 432 common shares Purchase of       -               -        -          -             -               -         -               -                 - treasury shares Sale of treasury shares   -               -        -          -             980             -         -               -                 - ^(1) Share-based       -               -        97         -             -               -         97              -                 97 payments Share             -               -        -          -             -               -         -               -                 - cancellation Other operations with   -               -        (92)       -             -               -         (92)            556               464 non-controlling interests Other items       -               -        2          -             -               -         2               4                 6 As of June 30,   2,376,735,991  7,490   94,637    (3,063)      (108,390,659)  (4,274)  94,790         2,225            97,015 2013 Net income from Jully 1 to        -               -        5,916      -             -               -         5,916           177               6,093 December 31, 2013 Other comprehensive     -               -        510        1,859         -               -         2,369           (10)              2,359 Income Comprehensive     -               -        6,426      1,859         -               -         8,285           167               8,452 Income Dividend          -               -        (3,590)    -             -               -         (3,590)         (62)              (3,652) Issuance of       942,169         3        50         -             -               -         53              -                 53 common shares Purchase of       -               -        -          -             (4,414,200)     (238)     (238)           -                 (238) treasury shares Sale of treasury shares   -               -        (209)      -             3,590,411       209       -               -                 - ^(1) Share-based       -               -        92         -             -               -         92              -                 92 payments Share             -               -        -          -             -               -         -               -                 - cancellation Other operations with   -               -        841        1             -               -         842             799               1,641 non-controlling interests Other items       -               -        7          -             -               -         7               9                 16 As of December   2,377,678,160  7,493   98,254    (1,203)      (109,214,448)  (4,303)  100,241        3,138            103,379 31, 2013 Net income of the first half    -               -        6,439      -             -               -         6,439           125               6,564 2014 Other comprehensive     -               -        (329)      (231)         -               -         (560)           (8)               (568) Income Comprehensive     -               -        6,110      (231)         -               -         5,879           117               5,996 Income Dividend          -               -        (3,794)    -             -               -         (3,794)         (146)             (3,940) Issuance of       5,192,417       18       319        -             -               -         337             -                 337 common shares Purchase of       -               -        -          -             -               -         -               -                 - treasury shares Sale of treasury shares   -               -        -          -             7,200           -         -               -                 - ^(1) Share-based       -               -        82         -             -               -         82              -                 82 payments Share             -               -        -          -             -               -         -               -                 - cancellation Other operations with   -               -        128        (2)           -               -         126             183               309 non-controlling interests Other items       -               -        1          -             -               -         1               52                53 As of June 30,   2,382,870,577  7,511   101,100   (1,436)      (109,207,248)  (4,303)  102,872        3,344            106,216 2014                                                                                                                                  ^(1) Treasury shares related to the restricted stock grants.  BUSINESS SEGMENT                                                                   INFORMATION TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                      2^nd quarter                 Refining    Marketing 2014             Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) Non-Group sales   6,205      28,143      28,213      -           -              62,561 Intersegment      8,057      11,740      402         46          (20,245)       - sales Excise taxes     -         (1,281)    (5,073)    -          -             (6,354) Revenues from     14,262     38,602      23,542      46          (20,245)       56,207 sales Operating         (7,174)    (37,744)    (22,966)    (262)       20,245         (47,901) expenses Depreciation, depletion and amortization of  (2,314)   (408)      (198)      (9)        -             (2,929) tangible assets and mineral interests Operating         4,774      450         378         (225)       -              5,377 income Equity in net income (loss)     719        65          98          7           -              889 of affiliates and other items Tax on net operating        (2,471)   (114)      (128)      (218)      -             (2,931) income Net operating     3,022      401         348         (436)       -              3,335 income Net cost of net                                                                 (206) debt Non-controlling                                                      (25) interests Net income                                                                      3,104                                                                      2^nd quarter 2014                         Refining    Marketing (adjustments)    Upstream  &          &          Corporate  Intercompany  Total ^(a)                         Chemicals   Services  (M$) Non-Group sales   (36)       -           -           -           -              (36) Intersegment      -          -           -           -           -              - sales Excise taxes     -         -          -          -          -             - Revenues from     (36)       -           -           -           -              (36) sales Operating         -          122         (27)        -           -              95 expenses Depreciation, depletion and amortization of  -         (40)       -          -          -             (40) tangible assets and mineral interests Operating         (36)       82          (27)        -           -              19 income ^ (b) Equity in net income (loss)     -          (32)        (7)         -           -              (39) of affiliates and other items Tax on net operating        7         (50)       10         -          -             (33) income Net operating     (29)       -           (24)        -           -              (53) income ^ (b) Net cost of net                                                                 - debt Non-controlling                                                      6 interests Net income                                                                      (47) ^(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair                                                             value.    ^(b) Of which inventory valuation effect On operating      -          122         (5)         - income On net operating         -          77          (3)         - income                                                                      2^nd quarter                 Refining    Marketing 2014 (adjusted)  Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) ^(a) Non-Group sales   6,241      28,143      28,213      -           -              62,597 Intersegment      8,057      11,740      402         46          (20,245)       - sales Excise taxes     -         (1,281)    (5,073)    -          -             (6,354) Revenues from     14,298     38,602      23,542      46          (20,245)       56,243 sales Operating         (7,174)    (37,866)    (22,939)    (262)       20,245         (47,996) expenses Depreciation, depletion and amortization of  (2,314)   (368)      (198)      (9)        -             (2,889) tangible assets and mineral interests Adjusted operating         4,810      368         405         (225)       -              5,358 income Equity in net income (loss)     719        97          105         7           -              928 of affiliates and other items Tax on net operating        (2,478)   (64)       (138)      (218)      -             (2,898) income Adjusted net operating         3,051      401         372         (436)       -              3,388 income Net cost of net                                                                 (206) debt Non-controlling                                                      (31) interests Adjusted net                                                         3,151 income Adjusted fully-diluted                                                        1.38 earnings per share ($) (a) Except for earnings per share.                                                                      2^nd quarter                 Refining    Marketing 2014             Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) Total             7,999      475         203         46          -              8,723 expenditures Total             568        15          28          20          -              631 divestments Cash flow from operating        4,805     (133)      304        301        -             5,277 activities  BUSINESS SEGMENT                                                                   INFORMATION TOTAL (unaudited, 2013 data converted from the Euro to the US Dollar)                                                                      1^st quarter                 Refining    Marketing 2014             Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) Non-Group sales   6,666      27,539      26,470      12          -              60,687 Intersegment      7,436      11,956      408         49          (19,849)       - sales Excise taxes     -         (1,160)    (4,672)    -          -             (5,832) Revenues from     14,102     38,335      22,206      61          (19,849)       54,855 sales Operating         (6,514)    (37,792)    (21,689)    (169)       19,849         (46,315) expenses Depreciation, depletion and amortization of  (2,176)   (378)      (182)      (9)        -             (2,745) tangible assets and mineral interests Operating         5,412      165         335         (117)       -              5,795 income Equity in net income (loss)     1,327      54          (8)         46          -              1,419 of affiliates and other items Tax on net operating        (3,492)   6          (80)       (74)       -             (3,640) income Net operating     3,247      225         247         (145)       -              3,574 income Net cost of net                                                                 (139) debt Non-controlling                                                      (100) interests Net income                                                                      3,335                                                                      1^st quarter 2014                         Refining    Marketing (adjustments)    Upstream  &          &          Corporate  Intercompany  Total ^(a)                         Chemicals   Services  (M$) Non-Group sales   26         -           -           -           -              26 Intersegment      -          -           -           -           -              - sales Excise taxes     -         -          -          -          -             - Revenues from     26         -           -           -           -              26 sales Operating         (115)      (163)       (18)        -           -              (296) expenses Depreciation, depletion and amortization of  -         -          -          -          -             - tangible assets and mineral interests Operating         (89)       (163)       (18)        -           -              (270) income ^ (b) Equity in net income (loss)     280        (8)         -           -           -              272 of affiliates and other items Tax on net operating        (36)      50         4          -          -             18 income Net operating     155        (121)       (14)        -           -              20 income ^ (b) Net cost of net                                                                 - debt Non-controlling                                                      (12) interests Net income                                                                      8 ^(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair                                                             value.    ^(b) Of which inventory valuation effect On operating      -          (163)       (18)        - income On net operating         -          (111)       (14)        - income                                                                      1^st quarter                 Refining    Marketing 2014 (adjusted)  Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) ^(a) Non-Group sales   6,640      27,539      26,470      12          -              60,661 Intersegment      7,436      11,956      408         49          (19,849)       - sales Excise taxes     -         (1,160)    (4,672)    -          -             (5,832) Revenues from     14,076     38,335      22,206      61          (19,849)       54,829 sales Operating         (6,399)    (37,629)    (21,671)    (169)       19,849         (46,019) expenses Depreciation, depletion and amortization of  (2,176)   (378)      (182)      (9)        -             (2,745) tangible assets and mineral interests Adjusted operating         5,501      328         353         (117)       -              6,065 income Equity in net income (loss)     1,047      62          (8)         46          -              1,147 of affiliates and other items Tax on net operating        (3,456)   (44)       (84)       (74)       -             (3,658) income Adjusted net operating         3,092      346         261         (145)       -              3,554 income Net cost of net                                                                 (139) debt Non-controlling                                                      (88) interests Adjusted net                                                         3,327 income Adjusted fully-diluted                                                        1.46 earnings per share ($) (a) Except for earnings per share.                                                                      1^st quarter                 Refining    Marketing 2014             Upstream  &          &          Corporate  Intercompany  Total                              Chemicals   Services (M$) Total             5,311      250         276         28          -              5,865 expenditures Total             1,799      11          26          4           -              1,840 divestments Cash flow from operating ac*Story too large*  [TRUNCATED]  
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