Total Share Discussion Threads

[waldron] 11/7/2007 07:12

Total S.A Product Launch



Total S.A.
The Dolphin Gas Project Starts ProductionTotal (NYSE:TOT) (LSE:TTA) (Paris:FP) announces that the Dolphin Gas Project is
now producing natural gas from Qatar and is exporting it to the United Arab
Emirates.
The partners in the Project, Total, 24.5%, Mubadala Development Company, on
behalf of the Government of Abu Dhabi, 51%, and Occidental Petroleum, 24.5%, are
grouped together in the company Dolphin Energy Limited.
Dolphin is the largest natural gas project ever developed between two countries
in the Gulf.
It involves the development of natural gas reserves from Qatar's giant offshore
North Field, via two unmanned production platforms. The gas is treated onshore
at the plant built by Dolphin Energy in Ras Laffan in Qatar. Gas production for
export will ramp up to 2 billion cubic feet of gas per day in early 2008.
The long term customers for Dolphin gas are ADWEC (Abu Dhabi Water & Electricity
Company), UWEC (Union Water & Electricity Company) in Fujairah, DUSUP (Dubai
Supply Authority) and OOC (Oman Oil Company).
Dolphin Energy Limited, which benefits from the technical know-how and
experience of Total, is the owner and operator of all phases of the Project.Dolphin is responsible for development, start-up and production of the field.The company is also operating the export pipeline linking Qatar and the United
Arab Emirates, operational since March 2007, as well as handling gas
distribution in the United Arab Emirates.
"Total is a founding shareholder of Dolphin Energy and is very pleased that this
important project came on stream as expected. Dolphin is the result of the
collective vision of the United Arab Emirates and the State of Qatar and creates
a regional gas grid within the Gulf for the very first time", declares
Yves-Louis Darricarrère, president Exploration and Production of Total. "This
project will support economic growth throughout the region, creating wealth and
durable employment opportunities."Total in Qatar and United Arab EmiratesTotal is one of the founding partners of Qatargas, a company which owns and
operates three LNG trains under production. Total has already a large range of
assets and projects in Qatar where it operates the Al Khalij oil field, has
stakes in the liquefaction plant of Qatargas I and in the second train of
Qatargas II and has activities in the petrochemical sector with Qapco, QVC and
the Qatofin project.
Total's production in Qatar (including its share in the production of equity
affiliates) averaged 58,000 barrels of oil equivalent per day in 2006.
Total's activities in the United Arab Emirates are mainly located in Abu Dhabi
where the Group's presence dates back to 1939. Total's equity production in 2006
reached 267,000 barrels of oil equivalent per day. In Abu Dhabi, Total holds a
75% interest (operator) in the Abu Al Bu Khoosh field. Total is also a 9.5%
shareholder in the Abu Dhabi Company for Onshore Oil Operations (ADCO), as well
as a 13.3% shareholder in Abu Dhabi Marine (ADMA).
Total is one of the world's major oil and gas groups, with activities in more
than 130 countries. Its 95,000 employees put their expertise to work in every
part of the industry - exploration and production of oil and natural gas,
refining and marketing, gas trading and electricity. Total is working to keep
the world supplied with energy, both today and tomorrow. The Group is also a
first rank player in chemicals. www.total.comContacts:Total S.A:
Jérôme SCHMITT
or
Laurent WOLFFSHEIM
or
Philippe HERGAUX
or
Sandrine SABOUREAU
or
Laurent KETTENMEYER
Tel. : [phone]
Fax : [phone]
or
Robert HAMMOND (U.S.)
Tel. : [phone]
Fax : [phone]

[waldron] 10/7/2007 08:43

Sarkozy seeks closer ties between GDF, Suez, Total and Algeria's Sonatrach


ALGIERS (Thomson Financial) - French President Nicolas Sarkozy said he is
keen to see closer cooperation between Algerian oil and gas incumbent Sonatrach
and its French counterparts such as Gaz de France, Suez and Total.
"We need to secure our future gas supply as much as Algeria requires clear
and guaranteed access to the French and European markets," Sarkozy said in an
interview with Algerian dailies El Watan and El Khabar.
"So we cannot but wish for closer ties between the French companies - GDF,
but also Suez and Total - and Sonatrach."
Sarkozy is due to decide within days whether a long-planned merger between
GDF and Suez will go ahead.
Finance Minister Christine Lagarde this morning told France Inter radio that
"all options are on the table" concerning GDF's future.


[e-mail]
jms

[waldron] 09/7/2007 06:46

Total Gazprom 'very close' to Shtokman gas field deal - Medvedev


LONDON (Thomson Financial) - Gazprom is "very close" to a deal to develop
the vast Shtokman gas field in Russia that will allow foreign companies to be
partners in the project, said Deputy CEO Alexander Medvedev.
Medvedev told the Financial Times that Gazprom is in talks about a new model
of co-operation that will allow foreign partners to share the economic benefits
as well as the risks of the project.
That could be done by giving international oil companies stakes in the
company running the project, rather than in the Gazprom subsidiary that owns the
Shtokman licence.
Statoil and Norsk Hydro of Norway, Total of France and ConocoPhillips of the
US have been in talks with the Russian energy giant over developing the field.
Medvedev said he expects the project to produce its first gas in 2013, and
begin shipments of liquefied natural gas in 2014.


[e-mail]
jms

[ariane] 07/7/2007 17:17

Total Doesn't Plan to Buy Rivals' Venezuelan Stakes (Update1)

By Tara Patel

July 7 (Bloomberg) -- Total SA, Europe's third-largest oil company, isn't planning to take over the stakes of U.S. oil companies that are quitting projects in Venezuela, Chief Executive Officer Christophe de Margerie said.

The Venezuelan government took control of four oil ventures last month. ConocoPhillips and Exxon Mobil Corp. refused to sign deals, while Chevron Corp., Statoil ASA, Total SA and BP Plc agreed on terms with the authorities.

``It is not a topic of discussion to take over the stakes of our colleagues,'' de Margerie told reporters today at a conference in Aix-en-Provence, France. He said talks with the government ``are not finished'' on the creation of a mixed company including Total and partners.

Under the deal signed June 26, Total's stake in Sincor, the operating company for developing the extra-heavy oil field in the Orinoco Belt, was lowered to 30.3 percent from 47 percent while Statoil's will be 9.7 percent. Petroleos de Venezuela SA will have a 60 percent stake in the venture, which was brought on stream in 2000 and has a production capacity of 200,000 barrels a day of extra-heavy oil.

``We will remain with Sincor even if we would have preferred the previous percentage. Life is life,'' de Margerie said. ``Most companies are staying; two are leaving. I won't pass judgment on that.''

ConocoPhillips and Exxon Mobil failed to reach an agreement on remaining in the country after Petroleos de Venezuela unilaterally took over at least 60 percent stakes in heavy-oil projects, where the state oil company previously held minority stakes. President Hugo Chavez is pushing for control of the country's key industrial assets.

Chavez Election

Chavez stepped up nationalization efforts this year after winning re-election Dec. 3 with 63 percent of the vote.

De Margerie told the conference that multinational oil companies would have to ``completely change their strategy'' by working with their national counterparts to ensure future production.

``Things are getting more complicated. If we can't produce, we can't sell,'' he said. ``The problem is production capacity, not the availability of reserves.''

De Margerie said the key to ensuring the world has enough energy in coming decades is for multinational oil companies to forge ``long-term'' relationships with entities in oil-rich countries.

Traditional Approach

He said the traditional approach of foreign companies producing oil without the help of national companies would no longer work. ``It's not by maintaining old values that we will get there,'' he said. ``A new form of capitalism open to others needs to be put in place.''

Separately, De Margerie said Total has no plan to acquire Canada's Western Oil Sands Inc., denying a report in La Lettre de l'Expansion.

``We don't have to buy every company that is for sale,'' he said. Calgary-based Western Oil Sands has interests in projects in northeastern Alberta.

La Lettre de l'Expansion reported June 15 that Total, Royal Dutch Shell Plc and Chevron Corp. were interested in Western Oil Sands. The report boosted shares in the Canadian company.

To contact the reporters on this story: Tara Patel in Paris [e-mail] ;

Last Updated: July 7, 2007 11:42 EDT

[ariane] 06/7/2007 12:04

Total renews Total Gabon opg statutes for 25 yrs, mulling Anguille field update


PARIS (Thomson Financial) - Total said its Total Gabon unit signed an
agreement with the Republic of Gabon renewing its operating statutes for an
additional 25 years.
It said as a result of this agreement, it is considering an investment in
the Anguille field in Gabon which could add over 100 mln barrels to reserves and
increase output by 30,000 barrels per day in first half of the next decade.
A decision "could be made at the end of 2007" on such a move, Total said in
a statement.
The renewed 'convention of establishment', which had expired on June 30,
defines notably the legal and tax system governing Total Gabons concessions,
operating licenses and crude transportation installations, the group said in a
statement.
It said the agreement covers 17 concessions and operating licenses
representing an area of nearly 1,500 square km and more than 60 pct of Total's
share of output in Gabon, which totaled over 50,000 barrels per day in 2006.
It added that the agreement was "thoroughly updated" to "promote exploration
and development of oil and gas resources and to support oil and gas production
in Gabon".
Total owns 58 pct of Total Gabon and the Anguille field is wholly owned by
the unit.
The Republic of Gabon holds 25 pct of Total Gabon and 17 pct of the shares
are in free float.

[e-mail]
mrg/bsd

[waldron] 29/6/2007 07:56

Total S.A Product Launch



TOTAL S.A A Technological Milestone
Rosa Starts Production Offshore AngolaSonangol, the Angolan state oil company, as concessionaire, and Total, as
operator, are pleased to announce that the Angola's deepwater Rosa field in
Block 17 started production on June 18. Discovered in January 1998 at some
135 kilometres off the coast of Angola in water depths of 1,350 metres, the Rosa
field is located some 15 kilometres away from the Girassol Floating Production
Storage and Offloading (FPSO) vessel to which it has been tied back. It is the
first deepwater field of this size to be tied back to such remote installation
and in such water depths. Rosa, with proven and probable reserves amounting
370 million barrels in 100%, will maintain the FPSO's production plateau at
250,000 barrels per day until early in the next decade.
The Rosa field will comprise 25 wells, including 11 for water injection and
14 producers, which will be tied into four manifolds. The subsea installation
consists of 64 kilometres of insulated production flowlines (Pipe in Pipe) and
of 40 kilometres of water injection lines linking the Rosa to the Girassol FPSO.An innovative riser tower docked nearby the FPSO takes the fluid over 1,200
metres from the sea floor up to the surface.
In order to receive the Rosa production, 5,600 tonnes of structure and equipment
were installed on the FPSO. The works have permanently mobilised about
400 persons on the vessel, over a period of nearly two years. During the whole
period, the treatment of the Girassol oil continued and only some scheduled
production shutdowns were required.
With Rosa on stream, all of the produced water from the Girassol, Jasmim and
Rosa fields will be reinjected in the reservoirs, thus resulting in produced
water not being discharged to the sea. In addition, Total is reducing greenhouse
gas emissions by using an innovative process that inerts and recovers gaseous
effluent from the FPSO tanks.
The extent of the works and the delicate conditions in which they had to be
carried out due to the important safety constraints imposed by continuing the
operation of Girassol facilities have made the Rosa development a first in the
world on such FPSO.
Sonangol is the Block 17 concessionaire. Total E&P Angola, operator, has a
40% interest in Block 17, alongside partners Esso Exploration Angola (Block 17)
Limited (20%), BP Exploration (Angola) Ltd. (16.67%), Statoil Angola Block 17 AS
(13.33%) and Norsk Hydro Dezassete a.s. (10%).
Total in AngolaTotal is present in Angola since 1953 and held interests in production permits
both operated (Blocks 3 and 17) and non operated (Blocks 0, and 14).Total also
holds stakes in exploration permits, Blocks 15/06, 17/06 (operated), Blocks 31
and 32 (operated).
Deep-offshore Block 17 is Total's major asset in Angola. It is composed of four
major zones : Girassol and Dalia, both in production; Pazflor, which is in the
bidding process before sanction; and CLOV, a fourth major production area based
on the Cravo, Lirio, Violeta and Orquidea discoveries, whose development is
currently being studied. Future production from these fields will come in
addition to 500,000 barrels of oil per day that are currently pumped from
Girassol and Dalia structures on the Block 17. Connected to the Girassol FPSO,
Rosa will extend the production plateau of this FPSO until the next decade.
Situated in deep offshore, the major potential of Block 32 was confirmed by the
ten discoveries achieved between 2003 and 2007.
Conceptual development studies gathering the Gindungo, Canela and Gengibre
discoveries were initiated in 2005 in order to exploit these discoveries in a
production zone, in the central eastern part of the block. Studies will be
initiated to evaluate the development potential of the other discoveries.
* * * * * *Total is one of the world's major oil and gas groups, with activities in more
than 130 countries. Its 95,000 employees put their expertise to work in every
part of the industry - exploration and production of oil and natural gas,
refining and marketing, gas trading and electricity. Total is working to keep
the world supplied with energy, both today and tomorrow. The Group is also a
first rank player in chemicals. www.total.com
CONTACT: TOTAL S.A
Tel. : [phone]
Fax : [phone]
www.total.com

[waldron] 29/6/2007 06:43

House OKs Interior Bill Forcing Renegotiation Of Oil Leases

June 28, 2007: 11:31 AM EST


WASHINGTON -(Dow Jones)- The House late Wednesday passed an Interior Department budget for 2008 that could negatively impact oil and gas development.

The Interior appropriations bill - which passed by a 272-155 vote - would force re-negotiation of 1998-99 oil and gas leases that omitted royalty price thresholds, delay planned exploration and production in Bristol Bay, Alaska, and slow oil shale development.

The White House has threatened to veto the budget, saying the proposed spending plan is over spending limits and that it's opposed the forced lease re- negotiations.

Under the appropriations bill, companies that refused to re-negotiate the leases wouldn't be eligible for new lease auctions.

The Government Accountability Office estimates around $1 billion in royalties have already been lost as a result of the price thresholds omissions, and could cost tax payers an additional $9 billion in future royalties.

Although six companies - including BP PLC (BP), Royal Dutch Shell (RDSA), ConocoPhillips (COP) and Marathon (MRO) - have agreed to pay royalties on the leases on production from October 2006, they only represent a fraction of the total lease owners.

Around 40 companies representing 80% of the production haven't agreed to re- negotiate the leases, including Exxon Mobil Corp. (XOM), Total SA (TOT), Chevron Corp. (CVX) and Anadarko Petroleum Corp. (APC), according to Interior Department data. Democrats have been seeking royalty payments for all output from the leases.

The Senate Appropriations Committee voted against a similar provision in their Interior budget plan last week.

The bill could also delay oil and gas leasing in Bristol Bay by requiring further environmental impact studies.

The area, scheduled to be opened for lease auction in the Minerals Management Service's five-year lease sale plan, is estimated to hold approximately 23 trillion cubic feet of natural gas reserves, and millions of barrels of oil.

The provision calls for greater federal environmental studies of the impacts of drilling in Bristol Bay, which is in Alaska's North Aleutian Basin. Under the proposal, the MMS, the U.S. Geological Survey, the GAO and several other federal agencies would be required to conduct in-depth analyses of exploration in the basin.

An amendment to the bill approved by the House would also slow Interior's plan for oil shale development. Rep. Mark Udall's, D-Colo., amendment would prohibit federal dollars for preparation of final rules for commercial lease sales.

The department's Bureau of Land Management last August initiated the first steps towards a national oil-shale lease sale, posting a notice inviting public comments for proposed rule-making for oil-shale. Royal Dutch Shell is one of several companies working on new shale extraction technology.

Industry experts estimate more than 1 trillion barrels worth of oil may be extracted from the shales, but companies have yet to develop technology that would make development economically feasible or environmentally sustainable.

The House rejected several proposals that would have increased drilling access on the Outer Continental Shelf in areas currently off limits.

-By Ian Talley, of Dow Jones Newswires, 202-862-9285; [e-mail]


(END) Dow Jones Newswires
06-28-07 1131ET

[waldron] 27/6/2007 11:34

Total to cut stake in Sincor to 30.32 pct; Venezuelan government to take 60 pct


PARIS (Thomson Financial) - Oil giant Total said it has signed a draft
agreement with the Venezuelan oil and energy minister to transform heavy oil
operating company Sinco into a mixed public/private company and reduce its stake
to 30.323 pct from 47 pct.
Under the agreement, Total said Venezuela's state oil company PDVSA
(Petroleos de Venezuela SA) will take a 60 pct stake in Sincor, while Statoil
will hold 9.677 pct.
The agreement also sets the amount of compensation to be paid to Total for
the reduction in its stake.
Contacted by Thomson Financial News, a spokesperson for Total declined to
comment on the amount of the compensation.
The agreement to convert Sincor into a state-owned company with private
investors follows the presidential decree passed on February 26 2007 which
ordered the takeover of strategic oil projects run by foreign oil companies in
Venezuelas Orinoco River region.
Under the decree, these projects are to be converted into 'mixed' companies,
with the state as majority shareholder, but with private investors.
[e-mail]
vb/jr

[waldron] 27/6/2007 07:47

Total S.A Re Agreement
Date : 27/06/2007 @ 07:00
Source : UK Regulatory (RNS and others)
Stock : Total S.A. (TTA)
Quote : 3906.0 0.0 (0.00%) @ 07:46

[waldron] 03/6/2007 08:35

Albert Frère takes a stab at the windmills of Spain
By Paul Betts

Published: May 31 2007 20:37 | Last updated: May 31 2007 20:37

There is nothing particularly quixotic in Albert Frère's latest obsession with windmills. By snapping up a 5 per cent stake in Iberdrola, the wily old Belgian billionaire has not only taken a foothold in the world's leading producer of wind energy. He has also positioned himself smartly for the next wave of consolidation in the Spanish energy sector.

The Belgian baron is often regarded as a catalyst for change in the businesses he targets. His current portfolio includes big stakes in the likes of Total, Lafarge, Pernod Ricard and Suez. And his decision to move into the Spanish energy arena may reflect his frustration over all the political obstacles that have so far prevented Suez merging with Gaz de France. The new French government has yet to make up its mind over the Suez-GdF deal. President Nicolas Sarkozy has never been very enthusiastic about the proposed merger, although he has by no means completely rejected the idea, as did his defeated Socialist rival in the recent presidential election campaign.

source: extract from ft

[ariane] 23/5/2007 19:10

When is the dividend paid?
After reviewing the accounts, the Board of Directors decided to propose at the May 11, 2007 Annual Meeting a dividend of 1.87 euros per share for 2006, an increase of 15% compared to the previous year. Taking into account the interim dividend of 0.87 euros per share paid on November 17, 2006, the remaining 1.00 euro per share will be paid on May 18, 2007.

of Arkema

[ariane] 22/5/2007 13:05

Total S.A Transaction in Own Shares


RNS Number:9613W
Total S.A.
21 May 2007


Notice of Repurchase of Ordinary Shares of TOTAL


Please, be advised that in connection with TOTAL's share repurchase program,
TOTAL S.A. reacquired 550,000 of its ordinary shares, nominal value 2.50 euros
per share, in April 2007, through trades executed at the Paris Stock Exchange.



C.PARIS de BOLLARDIERE
Tresorier




This information is provided by RNS
The company news service from the London Stock Exchange

END

POSZFLFLDEBEBBF

[ariane] 22/5/2007 12:58

Total BP finds more oil in deepwater Angolan field UPDATE


(Updates with other shareholders)
LONDON (Thomson Financial) - BP PLC said it had discovered more oil in the
ultra-deepwater Block 31 field in Angola.
It found the oil in the Cordelia well, its 14th discovery on the block.
Cordelia, located 3.5 kilometres to the south-east of the recent Miranda
find, was tested at a restricted flow rate of 2,063 barrels per day, BP said.
BP has a 26.67 pct stake in the field, while France's Esso has 25 pct, and
Angola's Sonangol has 20 pct.
Other shareholders include Norway's Statoil, which has a 13.33 pct interest,
Marathon, which has 10 pct, and Total, with 5 pct.
[e-mail]
mbe/ar/ejb

[ariane] 15/5/2007 07:55

Total's bitter pill
By Paul Betts

Published: May 15 2007 03:00 | Last updated: May 15 2007 03:00

Even before he gets his feet under his new desk at the Elysée palace, the industrial dossiers are piling up in Nicolas Sarkozy's in-tray. Apart from EADS and Airbus, Gaz de France, Areva and the hard-pressed domestic car sector, it now seems that the epitome of French industrial interventionism - Sanofi-Aventis - could be threatened.

Total's victory present to the new French president just days after his election was to announce its intention to sell as quickly as possible its 13.1 per cent stake in the French pharmaceutical champion. The oil group's new chief executive, Christophe de Margerie, told investors at last Friday's annual meeting that he wanted to concentrate assets to strengthen his oil and gas investments as well as move into the nuclear business and other new energy sectors.

Sanofi-Aventis's other core shareholder, L'Oréal, has no immediate plans to sell its 10.5 per cent stake in the world's fourth largest drug company. But the cosmetics group has also hinted it would consider a disposal of this stake should it decide to make a big acquisition.

Should these two historic shareholders indeed sell out, it risks making Sanofi-Aventis vulnerable to takeover. The risk could be all the higher, given that the company is going through a difficult patch that is weighing on its share price. Considerable uncertainty surrounds the company because of the patent litigation over its blockbuster Plavix drug in the US. The French group also held merger talks with Bristol-Myers Squibb at the beginning of this year, but these have gone nowhere.

What makes the situation doubly ironic is that up to now Sanofi-Aventis has been one of the best-protected members of the CAC-40 blue-chip club of companies thanks to its two large shareholders. Were these two to sell, the French drug company would join the majority of other CAC-40 companies whose widely held capital has turned into potential targets for private equity and foreign rivals.

Second, it was Nicolas Sarkozy who helped engineer the original Sanofi-Aventis merger when he was finance minister.

Apart from creating a French world-class drug company, the merger of Aventis and Sanofi had the added advantage for the Paris government of restoring a strong French core shareholding base for Aventis with Total and L'Oréal. Yet if these two core shareholders now decide to go away, all Mr Sarkozy's original efforts to protect the country's drug champion will have been in vain. For it would not take very long for private equity players or big Swiss, Anglo-Saxon or indeed Indian drug giants, to start circling.

[waldron] 08/5/2007 16:48

Total "overweight," estimates reduced

Tuesday, May 08, 2007 6:35:52 AM ET
J.P. Morgan Securities

LONDON, May 8 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Total SA (PFP.PSE), while reducing their estimates for the company. The target price is set to €59.

In a research note published this morning, the analysts mention that that the company has reported robust 1Q results, with adjusted net income ahead of the consensus. Total has one of the best combinations of medium- and longer-term growth prospects among the big-cap oil companies, the analysts believe. The EPS estimates for 2007 and 2008 have been reduced from €5.65 to €5.56 and from €5.23 to €5.19, respectively, to reflect a higher share count.

[waldron] 07/5/2007 16:30

May 07, 2007
TOT: Common Size Analysis of Total SA
By William Trent, CFA of Stock Market Beat

For a book project we are working on we conducted a common size analysis of Total SA's (TOT) financial statements. We figured it would be something worth passing along here.

Total's common-size statements are presented below. The first step in conducting a common-size analysis is to review both the common-size income statements and common-size balance sheets to look for changes and trends that warrant further review. Once the trends are identified, explanations should be sought. Management's discussion of financial performance and the financial statement footnotes are good starting points, provided the reader maintains a healthy skepticism of management's explanations. These internal perspectives should be balanced by external sources such as industry reports, economic data, peer company financial statements and news reports. We present a common-size analysis of Total below including an initial assessment, income statement analysis and balance sheet analysis.

Exhibit 1: Horizontal Common Size Income Statement


Exhibit 2: Vertical Common Size Income Statement


Exhibit 3: Horizontal Common Size Balance Sheet


Exhibit 4: Vertical Common Size Balance Sheet


Initial Assessment

Total's horizontal common-size income statement is presented in Exhibit 1. Revenues grew 22.8% in 2005 and 39.2% cumulatively between 2004 and 2006. Total's horizontal common-size balance sheet is presented in Exhibit 3. Total assets increased by 22.3% in 2005 and declined slightly in 2006 for a cumulative increase of 21.3%. Assets grew at about the same rate as sales in 2005, but fewer assets produced a higher level of sales in 2006, indicating that Total used its assets more efficiently that year.

In Total's Form 20-F filed with the U.S. Securities and Exchange Commission, management notes that the "average oil market environment in 2006 was marked by higher oil prices, with the average Brent oil price increasing 19% to $65.10/b from $54.50/b in 2005." They further disclose that "Oil and gas production in 2006 was 2,356 kboe/d compared to 2,489 kboe/d in 2005, a decrease of 5% due principally to the impacts of the price effect (1) (-2%), shutdowns of production in the Niger Delta area because of security issues (-2%) and changes in the Group's perimeter (-1%). Excluding these items, the positive impact of new field start-ups was offset by normal production declines at mature fields and shutdowns in the North Sea." This explains the apparent productivity increase: rather than producing more petroleum with fewer assets the company produced less. However, due to higher oil prices the revenue from the production more than offset the decline in quantity. By comparing output rather than revenue we see that output declined 5% and assets declined less than 1%. By this measure, efficiency actually decreased rather than increased. Since management has control over production but not commodity prices, this may be a more appropriate measure.

Income Statement

An examination of Total's vertical common-size income statement, presented as Exhibit 2, shows that the while the company was profitable the entire time net profit margin declined steadily from 9.5% in 2004 to 9.2%in 2005 and just 7.9% in 2006. Investors will want to know if this trend is more likely to continue or to reverse. To do this we analyze the components of the income statement.

Excise taxes declined steadily throughout the period, which increased net revenue available to the company. Whatever caused the decline in profit margin had to overcome this positive effect. Purchases offer a partial explanation. Rising crude oil prices hurt operating margins for the refining and retail businesses. However, while this expense grew substantially faster than sales during the three years (48.8% compared to net revenue growth of 39.2%) it does not account for the entire decline in net margins. In fact, Figure 5-1 shows that operating income as a percentage of sales increased in 2005 and the decline in 2006 still left the income from operations higher than it was in 2004. Instead, we see that the decline in net profitability was due to non-operating items: specifically "other income" and an increase in income taxes.

Turning to the 20-F for information, we learn that the biggest reason for the decline was a one-time gain recognized in 2004: "The gains (losses) on sales of assets included a pre-tax dilution gain on the Sanofi-Aventis merger of 2,969 M € in 2004." Without the gain in 2004, other income would only have been 0.1% of sales, and the apparent decline in margins would not have occurred.

With regard to income tax, the effective tax rate has been rising relative to pre-tax income, with the major factor being the difference between French tax rates and foreign tax rates. In particular, "The Venezuelan government has modified the initial agreement for the Sincor project several times. In May, 2006, the organic law on hydrocarbons was amended with immediate effect to establish a new extraction tax, calculated on the same basis as for royalties and bringing the overall tax rate to 33.33%. In September, 2006, the corporate income tax was modified to increase the rate on oil activities (excluding natural gas) to 50%. This new tax rate will come into effect in 2007."

Some expenses can be crucial to a company's future success. For example, pharmaceutical companies rely heavily on research and development. Improved margins due to lower R&D spending may actually be bad news. For oil companies, the equivalent of R&D is exploration costs – expenses related to trying to find new sources of oil. Total's exploration costs were fairly stable as a percentage of revenue.

Another industry-specific expense is depletion, which is the counterpart to exploration and the equivalent of depreciation for fixed assets. When new oil discoveries are made an estimate of the total available oil is added to assets. The depletion charge represents the amount used up each year from the resources.

For forecasting future net margins, we would probably want to use the more recent years as a guideline. Tax rate increases should be considered permanent, and the 2004 net gain appears to have been a one-time event.

Balance Sheet

Note that Total presents its balance sheet with long-term assets and liabilities above current assets and liabilities. This presentation is fairly common outside the United States.

Remember that revenues grew 22.8% in 2005 and 39.2% cumulatively between 2004 and 2006. Total assets increased by 22.3% in 2005 and declined slightly in 2006 for a cumulative increase of 21.3%. When reviewing common-size balance sheets, particular attention should be paid to individual items that are not in line with this trend.

Assets

Beginning with long-term assets, intangible assets rose faster than sales or total assets while tangible assets (property, plant and equipment) grew slower. By their nature intangible assets are difficult to value, and subjective judgment is involved. Investors should always investigate the composition of intangible assets. Looking at Note 10 in Total's 20-F we find that the increase in 2005 was mostly due to acquired mineral rights. Assuming the valuation was performed appropriately this is a valid asset. In 2006 acquisitions of other companies resulted in the change. Rapidly growing intangible assets and slow-growing property and equipment indicates the company may be pursuing a "buy versus build" strategy. In aggregate, long-term tangible and intangible assets amounted to 43.9% of total assets in 2004, 42.3% in 2005 and 43.1% in 2006 – a fairly constant proportion. Equity and other investments also stayed fairly consistent as a percentage of assets.

Hedging instruments of non-current financial debt declined as a percentage of assets. However, looking further down the balance sheet we see that the non-current debt increased in both absolute and percentage terms. It is possible that the company reduced the amount of overall hedges, or that the hedges declined in value (which would normally be offset by a similar change in the fair value of the hedged liability.) The discussion in the 20-F reveals losses is limited to the change between 2005 and 2006, so it is necessary to refer to the 2005 20-F to learn about the large decline between 2004 and 2005. In doing so, we find that currency and interest rate swaps lost value. Currency and interest rate movements were of a favorable direction, so any currency and interest rate hedges were unfavorable. Although the amount of debt changed year/year it is possible to gauge the overall impact by comparing debt maturing in specific years. For example, in 2004 Total had $2,241 million of bonds issued that mature in 2008. In 2005, the amount of 2008 maturities was similar at $2,256. However, the fair value of interest and currency swaps on the 2008 maturities had fallen from $398 million to $117 million. Similar declines were seen across other maturity dates.

From 2005 to 2006 there was a decline in "other non-current financial assets." Note 14 of the 20-F explains that the company used up some deferred tax assets during the year. As discussed in Chapter 3, deferred tax assets represent differences between earnings reported to shareholders and earnings reported to the tax authorities. Assets arise when book earnings are lower than tax earnings, frequently because of tax loss carry-forwards. As the company earns money in future periods it can use these carry-forwards to offset current period taxes. By contrast, deferred tax liabilities arise when the company's reported book earnings are higher than reported tax earnings. This can be caused by use of accelerated depreciation for tax purposes, for example, and represents a tax payment that has been recognized in the income statement but not yet paid. Looking further down the balance sheet, we see that deferred tax liabilities grew in both years, though at a slower rate than either sales or total assets. As a result, they declined as a percentage of assets from 7.2% in 2004 to 6.8% in 2006. In aggregate, non-current assets declined from 62.0% of total assets in 2004 to 59.3% in 2006.

Turning to current assets, both inventories and accounts receivable grew faster than sales or assets in 2005, but declined in 2006. Over the entire two-year period inventories grew faster than total assets but slower than sales. Since sales are made directly from inventory and often result in accounts receivable, the comparison to sales indicates that working capital was efficiently managed in 2006.

Prepaid expenses and other current assets rose faster than assets and in line with sales for the entire period. Investors frequently devote special attention to the "other" category because changes there sometimes indicate earnings management since such assets arise when more earnings appear on the income statement than are collected in cash. Here the 20-F doesn't help, as Note 16 provides a table breaking the category down further but the drivers of the change remain classified as "other."
Cash and equivalents declined considerably. Half of the decline in 2006 was due to currency issues. Current financial assets were up sharply over the two years, which also contributed to the cash decline. According to the 20-F, "Certain financial instruments hedge against risks related to the equity of foreign subsidiaries whose functional currency is not the euro (mainly the U.S. dollar). They qualify as "net investment hedges". Changes in fair value are recorded in shareholders' equity. The fair value of these instruments is recorded under "Current financial assets" or "Other current financial liabilities"." Given that the latter category declined considerably, favorable changes in the value of such hedges would seem to be a likely explanation for both shifts.

Liabilities

Total's long-term liabilities grew just 7.1% in 2005 and declined in 2006. As a percentage of total assets they fell from 18.8% to 15.6%. The main driver of the overall decline was a reduced liability for employee benefits. Looking at Note 18 in the 20F, we find that the expected future obligation has been reduced by approximately €900 million between 2005 and 2006. Specifically, the reduction was due to actuarial gains and losses, which reduced the reported obligation by €1.15 billion but merely reflect actuarial estimates. In addition, currency translation adjustments reduced the expected future liability by €900 million. Investors might want to ignore these adjustments or make their own adjustments to reflect their arbitrary and possibly unsustainable nature. Without these two adjustments the liability would have increased rather than decreased. Non-current debt increased 25.6% cumulatively, which was faster than the growth in total assets but slower than the growth in sales.

Short-term borrowings increased substantially, particularly in 2006. This resulted from a larger portion of the non-current debt coming due in 2007.

Accounts payable ballooned in 2005 but were reduced in 2006 such that cumulative growth was in line with the growth in sales and assets. The large increase in 2005 could have been resulted from an unusually large amount of purchases late in the year. Other current liabilities grew at a slower rate than sales or assets in both periods.

Disclosure: Author is long UNITED STS OIL FD LP UNITS (USO) at time of publication.

[waldron] 04/5/2007 10:36

extract

Total S.A 1st Quarter Results


RNS Number:1117W
Total S.A.
04 May 2007



Paris, May 4, 2007


Total reports strong first quarter 2007 results


Main results for the first quarter 2007(1)

* Adjusted net income(2)-(3) 3.0 billion euros -11%
3.9 billion dollars -3%
1.31 euros per share -9%
1.72 dollars per share -1%


Highlights since the start of the first quarter 2007

* Upstream production of 2,431 kboe/d in the first quarter 2007
* Dalia successfully reached 240 kb/d plateau in mid-April
* OPEC reduction impact of -37 kb/d

* Launching development of the Jura field as a satellite to Alwyn

* Successful exploration
* Promising discoveries and launching of development studies for Egina,
a new pole in deep-offshore Nigeria
* Two major discoveries near Moho Bilondo in deep-offshore Congo
* Four new oil discoveries on ultra-deep offshore Block 32 and
deep-offshore Block 14 in Angola
* New exploration blocks in Indonesia, Australia, Alaska and the UK
North Sea

* Finalized negotiations to acquire interests in Blocks 15/06 and 17/06 in
Angola

The Board of Directors of Total, led by Chairman Thierry Desmarest, met on May
3, 2007 to review the first quarter 2007 accounts. Commenting on the results,
CEO Christophe de Margerie said:

In the first quarter 2007, the average Brent oil price decreased by 6% compared
to the same quarter a year ago and gas prices fell sharply in the UK. The
Downstream and Chemicals segments benefited from strong demand while refinery
throughput was constrained by a number of maintenance shut-downs.

In this context, the adjusted earnings per share expressed in dollars showed
only a limited decrease of 1% compared to the first quarter 2006 and an increase
of 12% compared to the fourth quarter 2006. Profitability at the business
segment level remained strong at 28%.

This performance, which is among the best in the industry, shows that Total
managed to maintain the quality of its portfolio and its investment and project
management discipline while accelerating its growth effort and facing continued
pressure from rising costs.

The successful ramp-up of the Dalia field in Angola, which is already at its
plateau, and the start-ups of Rosa in Angola and Dolphin in Qatar, planned for
the second and third quarters of this year, confirm that we are returning to a
period of growth.

Total is pursuing its strategy of profitable growth over the long term,
supported by continued exploration success, improvements to its refining and
petrochemical facilities, and increased efforts in research and development to
meet the new challenges facing the energy industry and the environment.

[waldron] 04/5/2007 08:47

Total Q1 net down 17 pct but ahead of consensus, says 'among best in industry'


PARIS (Thomson Financial) - Oil heavyweight Total reported a 17 pct pct
decline in first quarter net profit to 3.049 bln eur, from 3.683 bln a year
earlier, attributing the fall to a decrease in oil and gas prices and
maintenance shut-downs at refineries.
Net adjusted profit was 11 pct lower at 2.992 bln eur, compared to 3.376 bln
in the same period last year.
Adjusted operating profit for the first quarter of 2007 came out at 5.729
bln eur, a fall of 14 pct on the first quarter of 2006.
A consensus of analyst estimates compiled by Thomson Financial had put Q1
net profit at 2.897 bln eur, and adjusted operating profit at 5.551 bln eur.
Sales for the first quarter were 37.043 bln eur, down 3 pct year-on-year.
Total said its performance was "among the best in the industry," showing its
ability to maintain the quality of its portfolio and step up growth despite
"continued pressure from rising costs."
Going forward the group said it is pursuing its strategy of profitable
growth over the long term, with increased efforts in research and development
and improvements to refining and petrochemical facilities.

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[waldron] 04/5/2007 08:40

Total Profit Falls on Weak Dollar, Lower Oil Prices (Update1)

By Tara Patel

May 4 (Bloomberg) -- Total SA, Europe's third-largest oil company, reported an 11 percent drop in first-quarter profit because of a weaker dollar and lower energy prices.

Net income, excluding Total's Sanofi-Aventis SA stake, fell to 3.0 billion euros ($4.14 billion) from 3.38 billion euros a year earlier. That's higher than the median estimate for earnings of 2.86 billion euros from 10 analysts surveyed by Bloomberg News.

``The group is confident of achieving its target of more than 5 percent production growth on average through 2010,'' Total said in a statement.

Chief Executive Officer Christophe de Margerie, 55, has raised Total's forecast for growth in production to 6 percent this year and more than 5 percent per year on average for 2006 to 2010. He called the start of pumping at the Dalia field in Angola one of the highlights of 2007. The company said output at the field reached the peak last month of 240,000 barrels a day.

The euro traded at an average of $1.31 during the first three months of the year, compared with $1.20 a year earlier. The average price of crude oil fell to about $58 a barrel from $63.50 in the same period a year ago.

Total shares rose 66 cents, or 1.2 percent, to 55.66 euros yesterday in Paris. The stock is little changed this year, after rising 3.6 percent last year.

Total Production

Output averaged 2.43 million barrels of oil and gas a day in the first quarter compared with 2.40 million barrels a day in the fourth quarter last year and 2.44 million barrels a day in the first quarter of 2006.

Total said this was thanks to the start up of new fields, including Dalia in Angola, which partially offset a drop in production on shut downs in Nigeria and OPEC production quotas.

``The successful ramp up of the Dalia field in Angola, which is already at its plateau, and the start-ups of Rosa in Angola and Dolphin in Qatar, planned for the second and third quarters of this year, confirm we are returning to a period of growth,'' Total said in the earnings statement.

Total has been trying to boost production after hitting what it called a ``low point'' of 2.29 million barrels of oil equivalent a day in the second quarter of 2006, hurt by shutdowns in Nigeria and the impact of high oil prices on production-sharing contracts.

Total, Europe's largest oil refiner, said profit from converting crude oil into gasoline, diesel and other products rose 28 percent in the first quarter. The average margin rose to $33 a ton from $25.80 a year earlier and $22.80 a ton in the fourth quarter of 2006.

BP, Shell

The three-month period was Total's first full quarter of production after it installed a 550 million-euro distillate hydrocracker unit at its Normandy refinery, the oldest and largest in France. The unit will produce 1.3 million metric tons of sulfur-free diesel annually.

BP, Europe's second-largest oil company, said last week profit dropped 17 percent in the first quarter because of lower energy prices and a seventh consecutive quarter of year-on-year production declines. Net income declined to $4.66 billion, or 24 cents per share, from $5.62 billion, or 27 cents. Revenue fell 3 percent to $62 billion.

Shell, Europe's biggest oil company, reported an unexpected increase in first-quarter profit on a surge in revenue from refining crude and making chemicals.

Net income climbed to $7.28 billion, or $1.15 a share, from $6.89 billion, or $1.05, in the year-earlier period, The Hague- based company said yesterday.

Total holds about 173.2 million shares in Sanofi, the world's third-biggest drugmaker, according to stock exchange filings from February 2007. The 13 percent stake is worth about 11.8 billion euros.

Total will hold a conference call for analysts at 3:00 p.m. Paris time.

To contact the reporter on this story: Tara Patel in Paris [e-mail]

Last Updated: May 4, 2007 02:41 EDT

[waldron] 02/5/2007 07:51

France's Total hit with 2.9 mln usd fine for US refinery's 'harmful' emissions


WASHINGTON (Thomson Financial) - French energy group Total has been given a
2.9 mln usd penalty by the US government for releasing "harmful emissions" from
a Texas refinery, officials said yesterday.
Aside from the penalty, Total has also agreed to spend 37 mln usd to upgrade
its Port Arthur, Texas, refinery to clean up the plant's emissions.
"We are committed to enforcing the laws that protect the environment and
public health, in an effort to continue bringing the refinery industry into
compliance," said Matthew McKeown, acting Assistant Attorney General for the
Justice Department's environment and natural resources division.
The settlement with Total's US unit was overseen by the Justice Department
and the Environmental Protection Agency.
The government said Total's new measures would significantly cut emissions
generated by flaring, during which byproduct-gas from the refining process is
burned-off in a flaring device.

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[waldron] 02/5/2007 07:51

Date : 02/05/2007 @ 07:49
Source : AFX


Paris shares TFN at a glance outlook


PARIS (Thomson Financial) - Shares are expected to open higher after Wall
Street's gain yesterday, when the French market was on holiday, dealers said.
On Monday, the CAC-40 index closed 29.27 points, or 0.49 pct, higher at
5,960.04, on volume of 4.6 bln eur.
On the Matif, May CAC-40 futures were trading up 15.5 points, or 0.26 pct,
at 5,940.0 ahead of the official opening.
The euro was quoted at 1.3584 usd, against 1.3611 late yesterday.

FORTHCOMING EVENTS
TODAY
-Imerys AGM (11:00)
-Sopra Q1 sales
-M6 AGM
-Renault AGM
-Eurofins AGM
-French April car registrations (noon)
-Vinci Q1 sales (after markets close)
-Steria Q1 sales (after markets close)

TOMORROW
-Vallourec Q1 results
-Sanofi-Aventis Q1 results
-Legrand Q1 results
-Lafarge Q1 results; AGM (17:00)
-Publicis Q1 sales
-Ipsen Q1 sales
-Altran Q1 sales
-Gemalto Q1 sales
-Eramet Q1 sales
-Iliad Q1 sales
-Alten Q1 sales
-Rhodia AGM
-Eurazeo AGM
-Eiffage Q1 sales (after markets close)
-Nexity Q1 sales (after markets close)

COMPANY NEWS
-Imerys Q1 net profit up 16.9 pct on yr; sees further gain in opg results
-M6 Q1 sales 338.6 mln eur, up 9.7 pct from year earlier
-SKorea's Renault Samsung Motor April car sales 13,838, up 0.4 pct yr-on-yr
-Infogrames' Atari to cut 20 pct of work force
-Casino forms DIY JV with Cencosud in Colombia as springboard for Latin
America
-Venezuela seizes last private oil fields; Total still in talks on terms
-Total hit with 2.9 mln usd fine for US refinery's 'harmful' emissions
-Michelin set to close its UK staff final-salary pension scheme
-Groupe Partouche sells stake in French hotel and casino operator for 36 mln
eu
-Publicis wins global advertising, marketing contract from Citigroup

MARKET SENTIMENT
-Peugeot upgraded to 'neutral' from 'reduce' by Nomura (yesterday)
-Neuf Cegetel upgraded to 'overweight' from 'neutral' by HSBC (yesterday)
-France Telecom, Neuf Cegetel, Iliad target prices raised by HSBC
(yesterday)
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