Registration document 2007 - Total.com

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For the full year 2006, adjusted net operating income for the
Upstream segment was 8,709 M€ compared to 8,029 M€ in
2005, an increase of 8%. The contribution of income from equity
affiliates rose sharply, reflecting mainly the growth in LNG
activities, particularly the larger contribution from Trains 4 and 5
at Nigeria LNG.
The average Upstream tax rate increased to 61% in 2006 from
59% in 2005, essentially due to the increase in the UK petroleum
taxes and to the impact of higher hydrocarbon prices.
Expressed in dollars, the 2006 adjusted net operating income for
the Upstream segment was $10.9 billion, an increase of
$0.9 billion compared to 2005, composed mainly of the
$2.5 billion positive effect of higher hydrocarbon prices, which
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Management Report of the Board of Directors
Summary of results and financial position
Results
(in M€) 2006 2005 2004
Adjusted operating income 20,307 18,421 12,844
Adjusted net operating income 8,709 8,029 5,859
Cash flow from operating activities 11,524 10,111 10,347
Investments 9,001 8,111 6,202
Divestments at selling price 1,458 692 637
Return on average capital employed (ROACE) 35% 40% 36%
TOTAL – Registration Document 2006
was partially offset by the negative impact of lower production
volumes and changes in the portfolio (approx -$0.6 billion), higher
production costs (approx -$0.5 billion, including -$0.2 billion for
exploration) and the impact of changes in tax terms (approx
-$0.5 billion).
Technical costs (FAS 69, consolidated subsidiaries only)
increased to $9.9/boe in 2006 from $8.5/boe in 2005, mainly
due to an increase in exploration (approx +$0.4/boe) and cost
inflation.
The return on average capital employed (ROACE) for the
Upstream segment was 35% in 2006 compared to 40% in 2005.
The decline was mainly due to an increase in the level of capital
employed for work-in-progress assets, which reflects the
sustained level of investment being made to fuel future growth.