Divestments drag throughput down; adjusted net income from refining drops by 1% YoY despite 36% drop in overall European refining margins.

Total, the European integrated oil group, has reported an adjusted net income of €11.4 billion for 2011, up 11% YoY, and has said that its net investment budget for 2012 will amount to US$20 billion.

Total reports that its refinery throughput in 2011 fell by 7% YoY to average 1.863mbpd, down from the 2.009mbpd seen in 2010. A 5% increase in throughput from operations in France was unable to counter the 16% decline seen for the rest of Europe and a 3% fall in throughput reported for rest of world operations.

Throughput in 4Q11 fell by 9% compared with 4Q10, with Total attributing the decline to the sale of the group’s interest in CEPSA, "partially offset by a comparative increase in fourth-quarter throughput in France due to the impact of strikes in 2010". The sale of Total’s interest in CEPSA was also responsible for the decline in full-year throughput, along with an increase in major turnarounds in 2011 compared with 2010.

Total invested €1.870 billion in its refining operations in 2011, down 20% from the €2.343 billion invested in 2010. Refining divestments amounted to €3.235 billion in 2011. Adjusted net operating income from refining operations fell by just 1% YoY to €1.238 billion in 2011, despite a 36% YoY decline in the European refining margin indicator to €17.4/t. 

The group’s chemical sector saw an 11% increase in sales in 2011, to €19.477 billion, with adjusted net operating income for 2011 at €775 million, down 10% on 2010. Divestment in the segment exceeded investment by €317 million in 2011. 

The return on average capital employed (ROACE) for Total’s downstream and chemical segments were 7% and 10% in 2011, compared with the 8% and 12% seen in 2010 and comparing unfavourably with the 20% seen for the group’s upstream segment for 2011.

Total recently restructured its downstream operations to create a refining-chemicals segment and a supply-marketing segment in early January.