TotalFinaElf May 17, 2001 Annual Meeting - Highlights of Chairman and CEO Thierry Desmarest’s Address
May 17, 2001: At the Annual Meeting of TotalFinaElf on May 17, 2001, Thierry Desmarest commented :
"TotalFinaElf’s 2000 net income (Group share), excluding non-recurring items, rose to 7,637 million euros, a 128% increase compared to pro forma 1999. Including the non-recurring items, net income (Group share) was 6,904 million euros, an increase of 97%. The year 2000 was marked by a favorable oil market environment, notably by a strong increase in the price of crude oil, in refining margins and in the dollar exchange rate (...)
The year 2000 was a milestone in the history of the Group, marked by the completion of the merger between Totalfina and Elf Aquitaine. Within a few months, the organizations of the different sectors of TotalFinaElf have been put in place. The realization of the initial synergies have confirmed the potential of the combination of the two companies. In 2000, growth combined with synergies/productivity programs led to an increase in operating income of 1.2 billion euros, in line with the targeted program to increase operating income over the 1999-2003 period by 4.4 billion euros per year by 2003 (...)
For the year 2001, TotalFinaElf expects to increase investments to a level of 9.4 billion euros with the priority being given to continued growth of the Upstream segment while maintaining strict selection criteria for projects (...)
TotalFinaElf has launched a share buy-back program that retrieved 11.9 million shares from September to the end of December 2000. This program is set to buy back at least 2% of the outstanding shares in 2001. It could be adjusted depending on the evolution of the oil market environment. Between January 1 and the end of April 2001, the Group already bought back 7.5 million shares (...)
Regarding the Group’s first quarter 2001 results, we have benefited from an environment that has remained favorable, with an average oil price of about $26/b, refining margins in Europe at $15/t and the dollar which has strengthened relative to the euro. Overall, thanks to this environment and to the actions taken by our employee teams, the 2001 first quarter net income rose to 2.20 billion euros, a 33% increased compared to net income from the same period last year. These results do not include any non-recurring items. Since the start of the second quarter, we have continued to enjoy a favorable environment and the Group’s activities are progressing well (...)
I would like to add that, in keeping with its industrial responsibilities, the new Group immediately set out formal guidelines governing actions and behavior in a Code of Conduct and a new Health, Safety, Environment and Quality Charter.
In addition, by creating a Sustainable Development Task Force, I wanted to encourage all TotalFinaElf operating segments to incorporate the social, economic and environmental responsibilities of sustainable development into their operations and long-term goals, contributing in that extent to efficient energy use and conservation, taking into account the needs of today’s consumers and the interests of future generations. "
Updated May 17, 01