Total S.A. 
Financial Analysis
Assignment 1
Subject Company: Total SA
Recep Erman Mendirek
8195980
TOTAL SA – Big Oil&Gas Business: Introduction
For the purpose of this assignment, we would like to review a European Integrated Oil & Gas name, the French TOTAL S.A. Established in 1924 as Compagnie Francaise des Petroles by French industrialist Ernest Mercier, the rebranded giant employs today 97000 people in more than 130 countries. It has an integrated business profile which means that the company is present in upstream Exploration & Production, Refining & Chemicals and Supply & Marketing. With a quasi top-down approach, we will try to review the corporate strategy of Total SA, the aspects of its value creation and competitive advantages in oil and gas sector in line with their latest guidance issued in September 2013 and February 2014 investor conferences. We will continue with the review of financial accounts and performance analysis in a time-series and cross sectional manner. We will conclude the review with the analysis of required return for equity and debt instruments and the calculation of weighted average cost of capital for the end 2013. Our perspective will be of a potential value equity investor who would like a minority non-controlling exposure in an oil and gas company with an investment horizon from three to five years. In this paper, we will be using the mosaic theory; this report doesn’t contain any material nonpublic information, the content is the product of collection of existing public information. Additionally, the author has no conflict of interest vis-à-vis Total SA.
Corporate Strategy – SWOT Analysis – Forward Guidance
From a Michael Porter’s generic strategy point of view, after our review of company communication and forward guidance as well as financial accounts, we believe that Total SA has a blend value proposal regrouping cost efficiency and vertical integration of operations while covering all broad segments of oil and gas
Assignment 1
Subject Company: Total SA
Recep Erman Mendirek
8195980
TOTAL SA – Big Oil&Gas Business: Introduction
For the purpose of this assignment, we would like to review a European Integrated Oil & Gas name, the French TOTAL S.A. Established in 1924 as Compagnie Francaise des Petroles by French industrialist Ernest Mercier, the rebranded giant employs today 97000 people in more than 130 countries. It has an integrated business profile which means that the company is present in upstream Exploration & Production, Refining & Chemicals and Supply & Marketing. With a quasi top-down approach, we will try to review the corporate strategy of Total SA, the aspects of its value creation and competitive advantages in oil and gas sector in line with their latest guidance issued in September 2013 and February 2014 investor conferences. We will continue with the review of financial accounts and performance analysis in a time-series and cross sectional manner. We will conclude the review with the analysis of required return for equity and debt instruments and the calculation of weighted average cost of capital for the end 2013. Our perspective will be of a potential value equity investor who would like a minority non-controlling exposure in an oil and gas company with an investment horizon from three to five years. In this paper, we will be using the mosaic theory; this report doesn’t contain any material nonpublic information, the content is the product of collection of existing public information. Additionally, the author has no conflict of interest vis-à-vis Total SA.
Corporate Strategy – SWOT Analysis – Forward Guidance
From a Michael Porter’s generic strategy point of view, after our review of company communication and forward guidance as well as financial accounts, we believe that Total SA has a blend value proposal regrouping cost efficiency and vertical integration of operations while covering all broad segments of oil and gas
References: www.total.com/en http://total.com/en/Presentation Ryan, B., Corporate Finance and Valuation Palepu, K., Healy, P., Peek, E., Business Analysis and Valuation Farchy, J. “Total looks to sell stake in Azerbaijan gasfield” - http://www.ft.com/intl/cms/s/0/6a958e98-a094-11e3-a72c-00144feab7de.html?siteedition=intl#axzz2wuB2Qu5A Schaps, K., “Total deal speeds up UK shale gas race” - http://uk.reuters.com/article/2014/01/13/uk-britain-shale-total-idUKBREA0C0HA20140113 Chazan, G., “Total deal shines spotlight on UK shale pioneers“ - http://www.ft.com/intl/cms/s/0/114f80a2-7d10-11e3-a579-00144feabdc0.html?siteedition=intl#axzz2w2aO4EVd Chazan, G., “Oil groups pressed to restrain spending“ - http://www.ft.com/intl/cms/s/0/45194dfc-84de-11e3-a793-00144feab7de.html?siteedition=intl#axzz2wVBLYq1V