Net income: 2,072 million euros or 8.25 euros per share
Net income including special items: 1,685 million euros or 6.71 euros per share
Net dividend increased to 2.8 euros per share

The Board of Directors of Elf Aquitaine approved the Group’s final 1999 consolidated results at a meeting held today under the chairmanship of Thierry Desmarest.

The final results were in line with the estimated ones published on February 2.

Net income before special items for 1999 was 1,685 million euros, an increase of 38%. Net income was 2,072 million euros, up 284%.

Operating income before special items in the three business sectors (excluding Health), Upstream, Downstream and Chemicals, rose 52% to 3,194 million euros compared to 2,101 million euros in 1998.

• Operating income before special items in Upstream was 2,213 million euros in 1999, compared to 1,035 million euros in 1998, an increase of 114%. The sector benefited mainly from the increase in the average price of Brent but also from continued efforts to improve the cost structure.

• In spite of the deteriorating environment, due to the drop in European refining margins, Downstream succeeded in stabilizing its operating income before special items at 475 million euros against 482 million euros in 1998, thanks to the effect of gains in productivity and the Leuna refinery’s improved performance.

• Operating income before special items in Chemicals was 506 million euros compared to 584 million euros in 1998. The 13.4% decrease compared to 1998, is the result of a worsening of margins for basic chemicals throughout the major part of the year. They were partially compensated by the improvement in fine and industrial chemicals and performance products and through cost reduction.

Operating income before special items for the Group was 3,334 million euros, an increase of 31.7% compared to 1998. This takes into account 140 million euros corresponding to the operating income before special items of the Health sector recorded in the Group’s accounts until May 18, 1999, the date of the merger of Sanofi with Synthélabo. As from this date, the Group’s interest in Sanofi-Synthélabo was treated on an equity basis in its consolidated results.

Financial elements

Funds generated from operations were 4,435 million euros compared to 4,611 million euros in 1998. This covered capital expenditures, including exploration expenditures.

Capital expenditures (including exploration) were 3,705 million euros compared to 4,355 million euros in 1998. The decrease in 1999 concerns Upstream and to a lesser extent, Chemicals.

Exploration expenditures increased from 491 million euros in 1998 to 577 million euros in 1999, due to the strong effort in acquiring new acreages in Angola and the US. Exploration expense in 1999 was 311 million euros compared to 375 million in 1998.

Proceeds from the sale of assets amounted to 282 million euros compared to 391 million euros in 1998. This mainly concerned North Sea interests in Upstream, Texasgulf Soda Ash in Chemicals and the disposal of corporate financial interests.

The Group continued its share buy-back program in 1999 for a total of 610 million euros, representing 4.6 million shares, compared to 305 million euros in 1998 (3 million shares).

Net debt to equity increased from 5,086 million euros in 1998 to 7,178 million euros in 1999. The net debt to equity ratio was 42% in 1999, compared to 34% in 1998. Using identical consolidation methods (equity method for Sanofi), the ratio would have been 42% in 1998.

At the end of December 1999, the number of shares in circulation was 249.8 million.

1999 Operating Elements

PRINCIPAL 1999 FINANCIAL DATA

* Sanofi-Synthélabo reported using the equity method as from May 19, 1999.

(1) After deduction of treasury shares and shares held by affiliates exchanged for shares of Totalfina pursuant to the Exchange Offer. If the calculation is made taking into account the exchange of treasury shares for shares of Totalfina during the period following the Exchange Offer, the average number of shares outstanding would have been 254.7 million shares and the net income per share would have been 8.13 euros.

(2) Special items in 1999 were as follows: Upstream, a charge for a voluntary early retirement program (-124 million euros); Downstream, an adjustment for the life of intangible assets (-150 million euros); Chemicals, charges due to factory shutdowns (-31 million euros) and asset write downs (-160 million euros); capital gain relating to the partial sale of Sanofi (+1,068 million euros) and charges arising from special corporate expenses (-261 million euros).

(3) Special items in 1998: Upstream, asset write-downs (FAS 121) (-694 million euros), plus capital gains from asset sales (+91 million euros); Downstream, write down of petroleum inventories (-79 million euros).

At the end of the Board meeting, MM Barsalou, Bilger, Collomb, Dupont, Friedmann, Isoard, Pebereau, Sarrazin, Studer and Vaillaud resigned as board members of the company. The Board thanked them for their contribution to the development of Elf Aquitaine.

The Board then elected MM. Peronnin, Moulard, Castaigne, Guilbaud and Weymuller as new members. MM Peronnin, Moulard and Castaigne’s terms will expire at the next General Shareholders’ Meeting and the Board will propose their re-election. MM Guilbaud and Weymuller’s terms will expire at the General Shareholders’ Meeting scheduled to approve the financial results for the year 2001. 

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Totalfina (NYSE : TOT) holds approximately 95% of the share capital of Elf Aquitaine. The European Commission approved the merger between the two companies on February 9, 2000.