Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Liquidity and capital resources<br />
Long-term and short-term capital<br />
Management Report of the Board of Directors<br />
Liquidity and capital resources<br />
Long-term capital<br />
As of December 31 (in M€) 2006 2005 2004<br />
Shareholders equity (Group share) (a) 38,890 39,477 30,640<br />
Non-current financial debt 14,174 13,793 11,289<br />
Hedging instruments of non-current financial debt (486) (477) (1,516)<br />
<strong>Total</strong> net non-current capital 52,578 52,793 40,413<br />
(a) 2006 equity after the distribution subject to the approval of the shareholders’ meeting on May 11, <strong>2007</strong> of the 2006 dividend of 1.87 euro per share, par value 2.50, euros per share, taking<br />
into account the interim amount of 0.87 euro paid on November 17, 2006.<br />
Short-term capital<br />
As of December 31 (in M€) 2006 2005 2004<br />
Current borrowings 5,858 3,920 3,614<br />
Net current financial instruments (3,833) (301) (134)<br />
Net current financial debt 2,025 3,619 3,480<br />
Cash and cash equivalents 2,493 4,318 3,860<br />
Cash flow<br />
(in M€) 2006 2005 2004<br />
Cash flow from operating activities 16,061 14,669 14,662<br />
Changes in working capital adjusted for the pre-tax FIFO inventory effect 755 2,737 (466)<br />
Cash flow from operating activities before changes in working capital adjusted for the<br />
pre-tax FIFO inventory effect 16,816 17,406 14,196<br />
Investments (11,852) (11,195) (8,904)<br />
Divestments at selling price 2,278 1,088 1,192<br />
Net cash flow at replacement cost, before changes in working capital 7,242 7,299 6,484<br />
Dividends paid 4,325 3,747 4,500<br />
Share buy backs (a) 3,830 3,189 3,554<br />
Net-debt-to-equity ratio at December 31 34% 32% 31%<br />
(a) Net of share buybacks connected to the exercise of the Company’s stock options.<br />
Cash flow from operations was 16,061 M€ in 2006 <strong>com</strong>pared to 14,669 M€ in 2005.<br />
Adjusted cash flow (cash flow from operations before changes in working capital at replacement cost) was 16,816 M€, a decrease of 3%<br />
<strong>com</strong>pared to 2005. Excluding the change in accounting presentation for exploration costs directly charged to expense, adjusted cash flow<br />
was 17,188 M€, a decrease of 1% <strong>com</strong>pared to 2005.<br />
Net cash flow (1) was 6,487 M€ in 2006 <strong>com</strong>pared to 4,562 M€ in 2005 and 6,950 M€ in 2004. Expressed in dollars, net cash flow was<br />
$8.1 billion, an increase of 44%.<br />
In 2006, the Group continued to buy back and cancel shares (2) .<br />
(1) Net cash flow = cash flow from operations – investments + divestments.<br />
(2) Information provided for in Article L 225-221 of the French Commercial Code with regards to transactions made by the Company on its own shares appear in the Special Report provided for<br />
in Article L 225-209 of the French Commercial Code (pages 133 to 135).<br />
3<br />
TOTAL – <strong>Registration</strong> Document 2006 69