Edited from Total annual report 2008 and Interview with chairman, Thierry Desmarest, company website
In 2008, Total said it performed well. Despite the volatility experienced during the year, the company pursued its strategy of profitable growth by strengthening its industrial and financial structure.
“To achieve our objectives requires long-term commitment. So it is important that we do not react to the present context by halting the initiatives we have begun; we must continue to invest”, says chairman, 
.
“The current crisis does not bring into question Total’s objectives, because the demand for energy that we must satisfy depends, in the long term, on fundamentals that have not changed: demography and the need for transport and electric power, particularly in the emerging economies”, Desmarest continues.
Chemicals segment
Total's chemical segment has continued to strengthen its leadership positions in the industry by focusing on a number of strategic areas.
In its mature markets, Total is improving the competitiveness of its sites notably through continued improvement of energy efficiency and industrial safety at its facilities. The reorganisation plans of 2009 for the Carling and Gonfreville sites in France are part of this strategy.
The first part of the plan includes the closure of a steam cracker and the styrene plant at Carling and the construction of a styrene plant at Gonfreville to replace the existing one on this site. Implementation of this plan is expected to be completed in the first half of 2009.
In addition, the company presented in March 2009 a second plan to upgrade its most efficient units and consolidate its petrochemicals competitiveness in France. As part of the project, approximately Euro230m will be invested to bring an efficient level of energy efficiency to the steam cracker and high density polyethylene (HDPE) unit in Gonfreville and to consolidate polystyrene production at the Carling facility.
It will also lead to the closure of structurally loss-making units: a low density polyethylene (LDPE) line in Carling in eastern France and a LDPE line and a polystyrene line in Gonfreville in northwest France. This reorganisation plan is also intended to improve the efficiency of support services and central services.
Its debottlenecking operations conducted in 2008 at the Feluy, Belgium, La Porte and Port Arthur, Texas, US sites are expected to strengthen the competitiveness of these sites.
In Asia, the principal growth area for petrochemical demand, Samsung-Total Petrochemicals completed the first modernisation phase at the Daesan site in South Korea. This development increased the site’s initial production capacity by nearly one-third by expanding the steam cracking and styrene units, by building a new polypropylene line in 2007 and by starting up a new metathesis plant in 2008. The company says that the project was completed on time and on budget.
In May 2008, the project to build a paraxylene (PX) plant in Saudi Arabia was confirmed by both partners, Total and Saudi Aramco. This project, carried out in cooperation with Total’s Refining and Marketing division, is expected to lead to the construction of a world-class PX plant to supply the Asian market. Start-up of this project is scheduled for 2013.
Total also continues to develop sites in countries with favourable access to raw materials.
In Qatar, where Total has been present since 1974 through its 20% interest in Qapco, Total’s 49% affiliate Qatofin is building an ethane-based steam cracker at Ras Laffan, with a production capacity of 1.3 tonne/year and plans to start up its new 450,000 tonne/year linear low density polyethylene (LLDPE) plant in Mesaieed.
These two units are scheduled to come onstream in the second half 2009. In addition, Qapco expects to build a new LDPE unit which is scheduled to come online in 2011.
Pursuant to the contract signed in July 2007, Total is continuing its partnership with Sonatrach, the Algerian national oil company, to build a petrochemicals site in Arzew, Algeria. The project includes an ethane-based steam cracker with a production capacity of 1.1 tonne/year, two polyethylene units and a monoethylene glycol (MEG) production unit.
This project is said to have “favourable access to one of the last particularly competitive sources of relevant raw materials” and is ideally located to supply Europe, the Americas and Asia.
In addition, Total inaugurated in October 2008 a methanol to olefins (MTO) pilot plant at its Feluy, Belgium site. This research project is intended to assess, on a semi-industrial scale, the technical and economical feasibility of producing olefins from methanol derived from natural gas, as well as from coal and biomass, and to consider new methods to produce polyolefins.
Total’s key strategy includes:
(1) expanding hydrocarbon exploration and production activities throughout the world, and strengthening its position as one of the global leaders in the natural gas and LNG markets;
(2) progressively expanding Total’s energy offerings and developing complementary next generation energy activities (solar, biomass, nuclear);
(3) adapting its refining system to market changes and consolidating its position in the marketing segment in Europe, while expanding its positions in the Mediterranean basin, Africa and Asia;
(4) developing its chemicals activities, particularly in Asia and the Middle East, while improving the competitiveness of its operations in mature areas; and
(5) pursuing research and development to develop “clean” sources of energy, contributing to the moderation of the demand for energy, and participating in the effort against climate change.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Total, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales (€ m) |
179,976 |
158,752 |
153,802 |
137,607 |
121,998 |
|
Operating Profit (€ m) |
28,114 |
23,956 |
25,166 |
23,468 |
16,686 |
|
Net Profit (€ m) |
10,590 |
13,181 |
11,768 |
12,273 |
10,868 |
|
Total Assets (€ m) |
118,310 |
113,541 |
105,223 |
106,144 |
86,767 |
|
Diluted earnings per share (€) |
6.20 |
5.37 |
5.44 |
5.08 |
-- |
|
Number of Employees |
96,400 |
96,442 |
95,070 |
95,054 |
-- |
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Total
Company Structure
Total engages in all aspects of the petroleum industry, including upstream operations (oil and gas exploration, development and production, LNG) and downstream operations (refining, marketing and the trading and shipping of crude oil and petroleum products).Total also produces base chemicals (petrochemicals and fertilizers) and specialty chemicals for the industrial and consumer markets (rubber processing, adhesives, resins and electroplating). In addition, Total has interests in the coal mining and power generation sectors.
More about Total Structure