The board Total, led by chairman, Thierry Desmarest, met on February 11, 2009 to review the group’s fourth quarter 2008 accounts and to close the parent company and consolidated accounts for 2008.

Adjusted net income rose to EUR13,920 million euros, an increase of 14% compared to 2007, or 20.5 billion dollars, an increase of 22%.

Commenting on the results, chief executive officer Christophe de Margerie said:

Unprecedented volatility marked the 2008 oil market environment. In the first part of the year, the price of Brent crude climbed rapidly toward 150 dollars per barrel ($/b). In the second part of the year, the global economy suffered a sharp slowdown which drove Brent down to a new low for the year of 35 $/b in December 2008. On average, Brent was 97 $/b for the year and 55 $/b for the fourth quarter.

European refining margins were good on average for the year, supported by steady demand for diesel. Petrochemicals, at the end of the petroleum chain, were hurt in the first half of the year by the rapid increase in oil prices. In the second half of the year, petrochemicals benefited from a rebound in margins, but suffered from falling demand linked to the worldwide economic downturn.

Strong volatility also affected the dollar; it depreciated by 7% relative to the euro over the year but rose by 14% during the fourth quarter 2008.

In this environment, our adjusted net income for 2008 rose to a record high of more than 20 billion dollars, an increase of 22%. This performance was possible despite the 16% decline in the fourth quarter adjusted net income to 3.8 billion dollars. Nevertheless, Total demonstrated in the fourth quarter its strong resistance to a weaker environment and the benefit of its integrated strategy.

Total invested more than 18 billion dollars in 2008, a substantial increase compared to 2007, to further prepare the company for the long term. The group reaffirms as its priorities the safety and reliability of its operations as well as the protection of the environment. In addition, the company has committed to a number of long-term projects, notably the deep-offshore Usan field in Nigeria, the Jubail refinery in Saudi Arabia, some targeted acquisitions for heavy oil in North America and Madagascar and several projects in renewable energies.

By maintaining strict financial discipline regardless of the environment, Total was able to implement its investment program while delivering strong profitability, proposing a 10% increase in its 2008 dividend and strengthening its balance sheet. The net-debt-to-equity ratio was 23% at the end of 2008 compared to 27% at the end of 2007. In addition, Total has a high level of liquidity and intends to pursue its policy of progressively divesting non-strategic assets.

Given the nature of the business, Total is faced with many risks, particularly industrial and safety risks. The events of the past months in Nigeria, Libya and France are unfortunate reminders that we must redouble our efforts to be ever vigilant when the safety of our people and the protection of the environment are at stake.

Total begins 2009 confident that it can weather a major economic crisis without having to revise its capacity for investments to grow the company over the long term. Total is committed to maintain a balanced growth strategy for the benefit of its workforce, its shareholders and all of its other stakeholders.

Operating income

In the fourth quarter 2008, the Brent price averaged 55.5 $/b, a decrease of 37% compared to the fourth quarter 2007 and 52% compared to the third quarter 2008. The TRCV European refining margin indicator averaged 41.4 $/t in the fourth quarter, an increase of 38% compared to the fourth quarter 2007 and a decrease of 8% compared to the third quarter 2008.

Despite a pronounced drop in demand, petrochemical margins were stable, benefiting from lower naphtha prices over the quarter.

The average euro-dollar exchange rate was 1.32 $/EURin the fourth quarter 2008 compared to 1.45 $/EURin the fourth quarter 2007 and 1.51 $/EURin the third quarter 2008.

In this context, adjusted operating income from the business segments was EUR5,126 a decrease of 24% compared to the fourth quarter 20076, or expressed in dollars a decrease of 30%.

The effective tax rate7 for the business segments decreased to 51.0% in the fourth quarter 2008 from 56.0% in the third quarter 2008 and 58.1% in the fourth quarter 2007, mainly due to the decrease in the share of the upstream segment in adjusted operating income from business segments and the decrease in the effective tax rate for the Upstream segment in the fourth quarter 2008.

Adjusted net operating income from the business segments was EUR2,942 compared to EUR3,202 in the fourth quarter 2007, a decrease of 8%.

The smaller decrease, compared to the percentage decrease in adjusted operating income, is essentially due to the decrease in the effective tax rate between the two quarters.

Expressed in dollars, adjusted net operating income from the business segments was 3.9 B$, a decrease of 16% compared to the fourth quarter 2007.

Net income

This excludes the after-tax inventory effect, special items, and the Group’s equity share of the amortization of intangibles related to the Sanofi-Aventis merger.

The after-tax inventory effect had a negative impact on net income of EUR3,128 in the fourth quarter 2008 and a positive impact on net income of EUR530 in the fourth quarter 2007.

Special items had a negative impact on net income of EUR373 in the fourth quarter 2008, reflecting mainly impairments in the upstream segment and provisions in the Chemicals segment. In the fourth quarter 2007, special items had a positive impact on net income of EUR56.

The Group’s share of the amortization of intangibles related to the Sanofi-Aventis merger had a negative impact on net income of EUR166 in the fourth quarter 2008 and a negative impact on net income of EUR93 in the fourth quarter 2007.

The reported net loss (Group share) was EUR794 in the fourth quarter 2008 compared to reported net income (Group share) of EUR3,600 in the fourth quarter 2007.

The effective tax rate7 for the Group was 50.6% in the fourth quarter 2008.

In the fourth quarter 2008, the Group bought back 3.6 million9 of its shares for EUR145.

Adjusted fully-diluted earnings per share, based on 2,235.5 million fully-diluted weighted-average shares was 1.29 euros in the fourth quarter 2008 compared to 1.37 euros in the fourth quarter 2007, a decrease of 6%.

Expressed in dollars, adjusted fully-diluted earnings per share decreased by 15% to 1.69 $/share.

Investments – divestments10

Investments, including acquisitions and including net investments in equity affiliates and non-consolidated companies, were EUR4,565 (6.0 B$) in the fourth quarter 2008 compared to EUR3,958 (5.7 B$) in the fourth quarter 2007.

Acquisitions were 506 EUR(0.7 B$) in the fourth quarter 2008.

Asset sales in the fourth quarter 2008 were 732 EUR(1.0 B$), consisting mainly of Sanofi-Aventis shares.

Net investments11 were 5.0 B$ in the fourth quarter 2008.

Cash flow

Cash flow from operating activities was EUR4,093 in the fourth quarter 2008, a decrease of 2% compared to the fourth quarter 2007. Expressed in dollars, cash flow from operating activities was $5.4 billion, a decrease of 10%.

Cash flow benefited from a EUR3,635 decrease in working capital requirements, essentially linked to falling hydrocarbon prices during the quarter.

Adjusted cash flow12 was EUR4,830, an increase of 10%. Expressed in dollars, adjusted cash flow was stable at $6.4 billion.

Net cash flow13 was EUR278 compared to EUR1,113 in the fourth quarter 2007. Expressed in dollars, net cash flow was 0.4 B$ in the fourth quarter 2008.