Operating cash flow before working capital changes was $569 million in the fourth quarter 2020 and $2,180 million for the full year, decreases of 21% and 14%, respectively, compared to the previous year.

Group results

> Adjusted net operating income from business segments

Adjusted net operating income from the business segments was: 


   -- $1,824 million in the fourth quarter 2020, a decrease of 53% compared to 
      a year ago, due to lower Brent prices, natural gas prices and refining 
      margins. 
 
   -- $6,404 million in 2020, a decrease of 56% year-on-year for the same 
      reasons.

> Adjusted net income (Group share)

Adjusted net income (Group share) was: 


   -- $1,304 million in the fourth quarter 2020, compared to $3,165 million in 
      the fourth quarter 2019, due to lower Brent prices, natural gas prices 
      and refining margins. 
 
   -- $4,059 million in 2020, a decrease of 66% year-on-year, for the same 
      reasons.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value(12) .

Total net income adjustments(13) were 


   -- -$413 million in the fourth quarter 2020, including close to $200 million 
      related to the conversion of the Grandpuits refinery in France. 
 
   -- -$11,301 million in 2020, including $8.5 billion of impairments, notably 
      on oil sands assets in Canada.

> Adjusted earnings per share

Adjusted fully-diluted earnings per share was: 


   -- $0.46 in the fourth quarter 2020, calculated based on a weighted average 
      of 2,645 million fully-diluted shares, compared to $1.19 in the same 
      period last year. 
 
   -- $1.43 in 2020, calculated based on a weighted average of 2,621 million 
      fully-diluted shares, compared to $4.38 in 2019.

The number of fully-diluted shares was 2,647 million on December 31, 2020.

> Acquisitions - asset sales

Finalized acquisitions were: 


   -- $1,538 million in the fourth quarter 2020, comprised notably of the 
      acquisition of Tullow's entire interest in the Lake Albert project in 
      Uganda, and the acquisition of CCGT assets and of a portfolio of 
      customers from Energías de Portugal in Spain. 
 
   -- $4.2 billion in 2020, comprised of the items mentioned above as well as 
      the acquisition in India of 50% of a portfolio of installed solar 
      activities from Adani Green Energy Limited, the finalization of the 
      acquisition of 37.4% stake in Adani Gas Ltd, the acquisition of interests 
      in Blocks 20 and 21 in Angola, and the payment for a second bonus tranche 
      linked to taking the 10% stake in the Arctic LNG 2 project in Russia.

Finalized asset sales were: 


   -- $439 million in the fourth quarter 2020, comprised notably of the sale of 
      Enphase shares by SunPower and the sale of the Group's corporate offices 
      in Brussels. 
 
   -- $1.5 billion in 2020, comprised notably ofthe sale mentioned above, as 
      well as notably the sale of non-strategic assets in the UK North Sea, 
      closing the sale of Block CA1 in Brunei, the sale of the Group's interest 
      in the Fos Cavaou regasification terminal in France, and the sale of 50% 
      of a portfolio of solar and wind assets from Total Quadran in France.

> Net cash flow

Net cash flow(14) for the Group was: 


   -- -$33 million in the fourth quarter 2020 compared to $2,582 million in the 
      fourth quarter 2019, due to a decrease in operating cash flow before 
      working capital changes from $6,793 million to $4,498 million and stable 
      net investments of $4,531 million versus $4,211 million. 
 
   -- $2.7 billion in 2020 compared to $8.7 billion in 2019, due to the 
      decrease of $10.4 billion in operating cash flow before working capital 
      changes, partially offset by a reduction in net investments of $4.5 
      billion.

> Profitability 


 
In millions of 
dollars            January 1, 2020   October 1, 2019   January 1, 2019 
                   December 31,      September 30, 
                   2020              2020              December 31, 2019 
Adjusted net 
 income            4,067             5,960             12,090 
Average adjusted 
 shareholders' 
 equity            110,643           108,885           116,766 
Return on equity 
 (ROE)             3.7%              5.5%              10.4%

The return on equity was 3.7% for the twelve months ended December 31, 2020. 


 
In millions of 
dollars            January 1, 2020   October 1, 2019   January 1, 2019 
                   December 31,      September 30, 
                   2020              2020              December 31, 2019 
Adjusted net 
 operating 
 income            5,806             7,801             14,073 
Average capital 
 employed          145,723           144,060           143,674 
ROACE              4.0%              5.4%              9.8%

The return on average capital employed was 4.0% for the twelve months ended December 31, 2020.

Total SE accounts

Net income for Total SE, the parent company, was EUR7,238 million in 2020 compared to EUR7,039 million a year ago.

2021 Sensitivities* 


 
                                        Estimated impact    Estimated impact 
                                        on adjusted net     on cash flow from 
                     Change             operating income    operations 
Dollar               +/- 0.1 $ per EUR  -/+ 0.1 B$          0 B$ 
Average liquids 
 price**             +/- 10 $/b         +/- 2.7 B$          +/- 3.2 B$ 
European gas price 
 - NBP ($/Mbtu)      +/- 1 $/Mbtu       +/- 0.3 B$          +/- 0.25 B$ 
Variable cost 
 margin, European 
 refining (VCM)      +/- 10 $/t         +/- 0.4 B$          +/- 0.5 B$

* Sensitivities are revised once per year upon publication of the previous year's fourth quarter results. Sensitivities are estimates based on assumptions about the Group's portfolio in 2021. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-EUR sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 16.

** In a 50 $/b Brent environment.

Summary and outlook

Supported by OPEC+ quota compliance, oil prices have remained above 50 $/b since the beginning of 2021. However, the oil environment remains uncertain and dependent on the recovery of global demand, still affected by the Covid-19 pandemic.

In a context of disciplined OPEC+ quota implementation, the Group anticipates 2021 production will be stable compared to 2020, benefiting from the resumption of production in Libya.

The Group continues its profitable growth in LNG with sales expected to increase by 10% in 2021 compared to 2020, notably due to the ramp-up of Cameron LNG.

European refining margins remain fragile, with low demand for jet fuel weighing on the recovery of distillates. However, thanks to the resilience of Marketing & Services, the Group expects Downstream to contribute more than $5 billion of cash flow in 2021, assuming refining margins of 25 $/t.

Faced with uncertainties in the environment, net investments are projected at $12 billion in 2021, while preserving the flexibility to mobilize additional investments should the oil and gas environment strengthen. After reducing operating costs by $1.1 billion in 2020 compared to 2019, the Group maintains strong discipline on spending and targets additional savings of $0.5 billion in 2021.

The Group's teams are fully committed to the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

The Group maintains its priorities for cash flow allocation: investing in profitable projects to implement the Group's transformation strategy, support the dividend and maintain a strong balance sheet.

Already in 2021, in renewables, the Group has announced more than 10 GW of additional projects through the acquisition of a 20% stake in Adani Green Energy Limited (AGEL), the world's leading solar developer, a partnership with Hanwha in the United States with a 1.6 GW portfolio, and the acquisition of a 2.2 GW portfolio of projects in Texas. Total will allocate in 2021 more than 20% of its net investments to Renewables and Electricity.

* * * * *

To listen to the presentation in English with CEO Patrick Pouyanné and CFO Jean-Pierre Sbraire today at 14:00 (Paris time) please log on to total.com or call +44 (0) 207 192 8338 in Europe or +1 646 741 3167 in the United States (code: 3971718).

The conference replay will be available on total.com after the event.

* * * * *

Operating information by segment

> Group production (Exploration & Production + iGRP) 


 
                     4Q20   Combined liquids and gas                     2020 
                       vs   production by region                           vs 
4Q20   3Q20   4Q19    4Q19  (kboe/d)                       2020   2019    2019 
1,059  969    1,102  -4%    Europe and Central Asia        1,039  1,023  +2% 
566    598    703    -19%   Africa                         629    705    -11% 
598    576    701    -15%   Middle East and North Africa   624    702    -11% 
382    343    368    +4%    Americas                       353    365    -3% 
236    229    239    -1%    Asia-Pacific                   226    219    +3% 
2,841  2,715  3,113  -9%    Total production               2,871  3,014  -5% 
727    667    768    -5%    includes equity affiliates     712    731    -3% 
 
                     4Q20                                                2020 
                       vs   Liquids production by region                   vs 
4Q20   3Q20   4Q19    4Q19  (kb/d)                         2020   2019    2019 
378    359    373    +1%    Europe and Central Asia        380    355    +7% 
427    458    560    -24%   Africa                         488    558    -13% 
454    432    560    -19%   Middle East and North Africa   474    548    -13%

(MORE TO FOLLOW) Dow Jones Newswires

02-09-21 0700ET