Net income excluding non-recurring items : 1.74 billion euros, 13% increase compared to proforma 1998

The TotalFinaElf Board of Directors, chaired by Thierry Desmarest, met on March 28, 2000, to close the 1999 consolidated accounts of TotalFina.

The 1999 final results are in line with the estimated results released by the Board of Directors on January 25, 2000.

Comparing 1999 to proforma 1998, net income (Group share) excluding non-recurring items rose by 13.3% to 1,742 million euros. The 1999 net income (Group share) including non-recurring items^* was 1,520 million euros.

BUSINESS SEGMENTS

In the Upstream segment, hydrocarbon productionincreased by 4% to 1,108 mboe/d in 1999 from 1,063 mboe/d in 1998 (proforma) despite the 30 mboe/d negative impact of asset sales. Excluding the impact of asset sales, production rose by 7% in 1999 as compared to proforma 1998. In 1999, liquids production increased by 2% to 718 mb/d and gas production grew by 8% to 2,112 Mcfd.

Hydrocarbon production outside the Middle East was 784 mboe/d (+ 5.1%) and Middle East production was up 2.2% to 324 mboe/d, despite the impact of quota reductions agreed to by the OPEC countries.

Proved reserves continued to grow, rising by 4.7% to 6,256 million boe in 1999 from 5,976 million boe in 1998 (proforma). This represents more than 15 years of production. The reserve replacement rate for consolidated subsidiaries rose to 213% for the 1997-1999 proforma period from 193% for the 1996-1998 proforma period.

The consolidated reserve replacement cost decreased to approximately $4/boe for the proforma 1997-1999 period from $4.4/boe for the proforma 1996-1998 period.

In the Downstream segment, ongoing productivity efforts and tight controls on fixed costs, combined with the initial synergies realized from the merger of TOTAL and PetroFina, partially offset the impact of sharply lower refining margins.

In 1999, sales for the Chemical segment rose by 15.1% to 8.77 billion euros from 7.62 billion euros in 1998 (proforma). The 14.3% reduction in operating income to 604 million euros from 705 million euros in proforma 1998 resulted from the sharp decline in petrochemical margins to a low point in the cycle at mid-year 1999. Volume growth, from both internal and external operations, and improved results from the Specialty Chemicals limited the impact of lower petrochemical margins.

Operating income from business segments, excluding non-recurring items (in millions of euros)

In 1999, gross investments for the segments were maintained at a high level of 4,627 million euros as compared to 4,453 million euros in proforma 1998, representing an increase of 4%.

• The level of investments for the Upstream was essentially unchanged at 2,708 million euros in 1999 versus 2,775 million euros in proforma 1998.
• Downstream investments fell by 6% to 837 million euros in 1999 from 895 million euros in proforma 1998.
• Investments for the Chemicals segment rose to 1,082 million euros in 1999 from 783 million euros in proforma 1998, an increase of 38%.

In 1999, divestments, based on sales price, were 1,259 million euros.