Annual Report 2011 - Analist.be

Percentage of share capital .................................................................... 4.0%Percentage of voting rights .............................................................. 3.7%Contribution to GBL’s adjusted net assets .................... 32.1%Dividends collected by GBL ........................ EUR 206 millionOverview of the activitiesProfileTotal is one of the leading international oil and gas groups. Its activities are basedin more than 130 countries and cover the entire oil industry chain, upstream –exploration, development and production of oil, natural gas and LNG – anddownstream – refining, distribution, transport and international trading of crude oiland refined products. Total is also a major player in Chemicals and is committedto the development of renewable energy.Upstream, the group has exploration and production activities in more than40 countries. It relies on a diversified portfolio of assets that offers some of theoil industry’s highest growth prospects as a result of Total’s investments in majorprojects with competitive technical costs and in highly promising areas. The group’sproven hydrocarbon reserves, calculated according to SEC rules, guarantee thecompany more than 13 years of production at the average 2011 production rate(2.3 million barrels of oil equivalent per day). A major player in the liquefied natural gasindustry, Total is also extending its activities to related market segments such as gasdistribution or electricity generation. The group is also preparing the future of energyand supports the development of new complementary sources of energy (solar,biomass, CO2 capture and storage).Downstream, the group has positioned itself as a leader in Western Europe andAfrica; it also operates throughout the Mediterranean basin and expands its footprintin growth markets, notably in Asia. It manages refining capacity of 2.1 million barrelsa day and sells 3.6 million barrels of refined products a day. The group owns sharesin 20 refineries and operates a network of around 15,000 service stations, primarilyunder the Total, Elf, Elan and AS24 banners, which have specific positionings.Total’s Chemical activities rank among European and/or world leaders on most oftheir markets. Its Base Chemicals activities include petrochemicals and fertiliserswhile the Specialty Chemicals activities concern rubber processing, adhesives andelectroplating, whose products primarily serve the industry sector.Total announced at the end of 2011 its intention to reorganise its Downstream andChemical activities. In the new structure set up on 1 January 2012, two new divisionsare created: a Refining-Chemicals division that forms a major industrial pole aimedat maximising the benefits of integrating the two activities; and a Supply-Marketingdivision focused on global supply and marketing of oil products, with the objectiveof increasing the flexibility and visibility of these operations.Overview of 2011The oil industry was impacted in 2011by an economic slowdown thatcoincided with continuing pressure onsupply. Crude oil prices increased by40% to USD 111/b, compared with their2010 average of USD 80/b. The averageselling price of gas also increasedoverall by 27%, despite strong regionaldifferences. In contrast, refining marginsdeclined to an average (ERMI indicator)of USD 17/t in Europe (compared withUSD 27/t in 2010), reflecting the sector’schronic overcapacity. In Chemicals,the general environment remainedfavourable during the first half of the yearbefore starting to deteriorate, especiallyin the fourth quarter. The dollardepreciated by 5% against the euro.In this context, Total’s adjusted netincome amounted to EUR 11.4 billion,an 11% increase over 2010; expressedin dollars, the increase was 17%.This result reflects both the improvedenvironment and the solidity of thegroup’s performance, which supportedcash flow generation and consequentlyreinforced the company’s balancesheet (debt ratio of 23% at the endof 2011 compared with 22% at the endof 2010) despite the significant increasein investments.Annual Report 2011 23