Half Year 2021 TotalEnergies SE Earnings Call

[music].

Ladies and gentlemen, thank you for standing by and welcome to total energy second quarter 2021 results Conference call. At this time, all participants are in a listen only.

He mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press star 1 on your telephone I must advise you that this conference is being recorded today.

I would now like to hand, the conference over to Mr. Patrick <unk>, Chairman and CEO of total energy.

Please go ahead Sir.

Hello. Good afternoon. Good morning, good evening, everybody for the second quarter Conference call I'm happy to join you together, we've <unk> our CFO.

It's unusual to have this yield coming through the second quarter of core would you know these are very short ones. So.

We'll make it a little longer before you before to go through early days I know, but mostly you see I think it was also because it is the first concerns correlates to tell energies. So I don't want it to just celebrated by participating in myself and also because the test we have with the board of directors to take isn't yesterday.

I wanted to an important decision, but I wanted to share with you.

So first I would just introduced the core with few comments and then there's non Pierre will review all of the reserves and wherever we go to the Q&A together.

As you all know our shareholders voted unanimously on most 99, 9%.

To adopt on new name.

To embrace a new identity very caught on.

Sure.

Journey begins with 1 step and if this is an important step but marks a transformation of sorts out.

These.

So turning now Gs on named <unk>, a measure of close to a proud history as the third but by expanded the total <unk>.

Jesely Vanessa.

And clearly our ambition to become a broad energy company a company producing civil where energy is in a world class per use NV energy transition.

At least as important as on new names of shareholders also voted strongly move on 92% in favor of our ambitions for sustainable.

We take months and then as you transition towards cloud carbon neutrality.

And knowing that we as a support of our shareholders. It gives us comfort as we move forward to implement on strategy and transform put on energy.

I would like to emphasize that this solution is very important for futures.

We will develop as it contains clear guidelines for next 10 years.

Not only in terms of decarbonization targets was more importantly in terms of the evolution of our portfolio.

First increasing our new awards on the legacy portfolio and building an integrated production trading sales electricity business.

So again, consolidating and growing on LNG or LNG predictions and sales by the food.

Third lower wingo, all product sales by 50%, Hawaii oil production will be picking doing good things decades.

And also individually solution in terms of capital allocation criteria for new.

I think I'm on projects.

New technical costs, low technical cost story, or low breakeven and a new works here to intensity for all on new projects lower intensity line also.

Where do average so it's a continuous improvement scheme in which we engage as a company.

<unk> total energies on <unk>.

An important role to play as a major energy provider in the global community and our responsibility to all our stakeholders to continue to grow to succeed and to create value.

The challenge we face is to find the best path, but manage the risk.

In early on to 1 industry, but also.

The opportunities and to maximize the probability of success and this past shapes our strategy.

First I would like by the way to underline some of the progress we have made in our energy transition roadmap. During the second quarter. For example, joining a new offshore wind development to Taiwan acquiring.

5 gigawatt solar portfolio.

Other new win in which we own 20%.

And more more would you know I think our first been.

Bunch of cooperate pva's successes with Amazon and Microsoft are liquid Orange, Merck, which will support our renewables development.

Secondly, I would like to comment on decision to exit from the pit Wassa Daniel asset in Venezuela, which is in fact, a way to put our roadmap in action.

I would like to underline that is not related to the political situation in Venezuela, the sanction situation even initiative.

Situations in last 3 years is not make our life easier and put some constraints on the capacity to maintain the assets. According to total energy standards.

But in reality is exiting 2 rows of consequences as a strategy of total synergies as approved by our shareholders.

On <unk> would indeed required in near future significantly.

This is significant amount of capex through the rest of the production with new words and to rejuvenate to recreate the operator.

Clearly allocating capex was the development of extra heavy oil projects in VOA nickel belt would not be consistent with hydrocarbon study on strategy in terms of tier 2 intensity of new hydrocarbon.

Net capex.

So together, we think we know which shares the same ambitions towards carbon neutrality, we engage with <unk>, which offered us a possibility to exist.

For a symbolic amount, but against a broad indemnity in relation to all past and future liabilities arising from total in lgs participation.

Carbon free source of Daniel.

This results in the recognition of an exceptional capital loss of $1.4 billion in the financial statements of sustained energy for this quarter, but again. It is in this as a way to put total energy strategy into action.

This was the first specific item I wanted to comment.

<unk> pick on 1 of course is related to our cash allocation framework.

More color on it.

There is more color on our new logo.

In February and a more on certain crude oil price environment, we were clear that our priority was restoring balance sheet strength, which we define as a minimum.

So straightening and gearing below 20%.

Thanks to the strong second quarter performance on the first 1 as well, but particularly in terms of cash flow, we reduced our gearing much faster than expected beginning of the year down to 18% at the end of this first half.

This combined with a more positive economic outlook.

<unk> improved our financial flexibility substantially over the first half and clearly much quicker again been anticipated at the beginning of the year.

In terms of performance as it will be demonstrated by Nokia I'm confident but we are back stronger than we were before the crisis.

Thanks to the action plans implemented last year.

Given our stronger financial position, we are ready to move on to move on on the.

On onto the reached past the solution that addresses and combines our top cash flow priorities.

<unk> to maintain to maintain a full force.

Free cash flow machine of today and to develop the profitable new energies for tomorrow the day.

Averaging as a balance sheet to increased financial strength and flexibility and returning cash to shareholders, but includes sharing the benefit of higher prices.

As we stated in February if you remember in our clear Capex.

Priorities for cash flow allocation, there was a fourth books and in which it was written flexible at higher oil prices when gearing is under 20%.

So this was in fact and it is true but since the beginning of the year, we have captured the benefits of quite a high price environment.

And so why.

Putting the implementation of our strategy the board debated about so we start to shareholder and which color on could we give to these flow box, but I just remind you.

Firstly for to speak about it I would like to we want to remind everyone where total synergies is the only European major we decided to support the dividend further crises.

And we are convinced that we were right to mention twists or shareholders into quick financial recovery contributes to that belief.

Mind, you that all dividend.

Let's say 35, 44, 43, 45% of our cash flow from operations, which is return to shareholders for dividend.

Return to shareholders will continue to be mainly in the form of dividend, but the board has decided it is time to use spot part of the surplus cash flow linked to higher prices for share buybacks.

The concept is to allocate up to 40% of cash flow surplus cash flow above $60 per barrel.

Now on to buybacks.

So to be clear on to clarify since the beginning since the start of the year oil prices have a range of $66 per borrower and.

And we have a sensitivity that we gave you in February which is 3.2.

<unk> cash flow for $10 per barrel power saw 66 -6.

$6.6, 60% of free to.

It makes 2 billion dollar and so 40% would mean buyback share buyback of $800 million in 2021.

And if the average price is going up to 68 for example, so we are not for.

It could go up to $1 billion.

And you can move on if it's even a year or.

On more of a price we'd be better would be in terms of.

Share buyback will be.

And these favorable context, so net.

Not only I think we clarify this element of our cash flow.

And to date, but we want also of course to confirm or priorities in terms of cash flow allocation <unk>.

We invest in profitable projects to implement total energy transformation strategy to a broad energy company.

Support the dividend through economic cycles, like we have done it and we continue to to do it to.

To maintain.

<unk> balance sheet.

Sure.

And a minimum of a long term debt rating by sustainably incurring a gearing below 20%.

And increase the return to shareholders via share buybacks in a high price environment.

So no elevate the flow to chop here, which will review second quarter results.

Thank you Patrick So let me tell you that first debt. We're proud to have a strong set of numbers for his first conference call as total interest.

Total energy second quarter, adjusted net income increased to $3.5 billion.

A $1.27 per share.

Is 20% higher than that.

On the second quarter on.

2019, even when Brent prices were essentially the same in both quarters and despite the lower production issue.

The increase in reserves reflects.

I think mentioned the benefits of the action plan, we implemented in response to the crisis.

And it's an idea of the importance of underlying discipline on cost and on net investments.

Annualized in the second quarter adjusted net income return on capital employed is close to 11% at $10.9 debt means that we are back with double digit profitability concession.

Tournaments.

From these points for obvious reason I will focus on the sequential comparison, rather than looking back at least at last year.

Which was completely different due to the crisis.

So total in here he has been <unk> from oil and gas markets that were 13% and 28% higher.

The activity in the second quarter of issues the first quarter.

Brand continued to rebalance, reaching $70.76 per day end of June and averaging $69 per barrel during the Q2 versus 61.4 gigawatts.

Our average.

And on the AG price increased by 8%, which takes into accounts the lag effect on oil linked contracts and increase in spot prices.

Refining margin in Europe, although higher compared with first quarter levels remain weak.

On the Raptor.

But petro chems perform.

<unk> historically, well, thanks to very high margins on payments.

Operationally oil and gas production was 275 million barrel per oil equivalent per day in the second quarter down 4% from the previous quarter.

Mainly due to major maintenance shutdowns as often.

In Q2.

That's higher than last year.

For the 2021 full year, we anticipate production will be around 2 points 85 media in baseball equivalent per day as the projections, we've progressed in Q3 and Q4.

In terms of results.

First the <unk>.

<unk> segments. So he confirmed its first quarter performance with adjusted net income and cash flow of around 900 million Euro.

Renewable projects come out at TVT.

It is a you know an integral part of our model was lower in the second quarter.

Back to the first quarter and this explains some of the difference quarter to quarter.

There was nothing unusual about our Q2 GAAP trading activities.

I remind you that in comparison gas meeting was stronger than usual in the first quarter.

To the winter storm in Texas.

Gas and power sales.

Comparatively lower on the second quarter than in the first many huge weather.

Looking ahead since most of our LNG sales are on the oil linked contracts, we had good visibility and expect the price to increase to more than $7.5 per million Btu in the third quarter.

Looking.

Now as a renewable electricity activity, while continuing to grow this business with more than 500 megawatts of growth when you boil power generation capacity commissions in the second quarter.

We have more than 8 gigawatts of gross install power generation already online and more than 40.

A silhouette in the portfolio.

We're on track to achieve our objective of 35 gigawatt by 2025.

Net power production increased to $5, 1 terawatt hour, reflecting higher outputs from both <unk> and <unk>.

Notable among the highest the highlights of the quarter.

This is we started this month after net non shutdown and delivered its first cargo of carbon neutral LNG to Japan.

We acquired a 23% interest in a 640 megawatts.

Offshore wind project in Taiwan.

Betsy commented already that is already covered by PPA and expected to start up next year.

And at any given energy in which we had a 20% interest.

Since.

January acquired a portfolio of 5 gigawatts.

Premium growth power generation capacity in India that will contribute 1 gigawatts total debt and yearly target of 5 gigawatt in 2000.

25.

Moving now to the E&P segments, which is as you know the cash machine of the company. The theory here is specialties and tight levels.

Capturing the benefit of rising oil and gas prices. The segment's reported $2.2 billion of adjusted net operating income up 10% growth and 4.3 billion of operating cash flow at 11% quarter to quarter.

Operationally, we had a successful well on separate ourselves internally.

Suriname, and we started production in Dania phase 2 in Angola.

But <unk> seen delivered good performance as well.

Finally in chemicals, plus marketing and services reported combined adjusted net operating income of more than $900 million in the second quarter per.

Daimon.

And 775% from the previous quarter.

And operating cash flow, we call the significant EBIT in the second quarter, increasing to $1.5 billion dollar.

67% from the first quarter.

Indeed.

Thanks to strength of our integrated model.

The downstream was able to other come depressed European refining margins and benefit from very high.

Petrochemical margins as well as the rebound in marketing services results to pre crisis levels.

As the global economy continues to recover and particular.

More of that as demand for aviation fuel comes back we expect refining to improve.

And fundamentally benefit from Easter record high margins and we expect the situation to continue as it is a result of the high worldwide supply chain strengths.

Finally at the group level the main takeaway.

From the second quarter is that we are back with solid results and strong cash flow.

Which is the lifeblood of the company.

Adjusted net operating income was $3.5 billion, a 15% increase quarter to quarter.

Debt adjusted cash flow was $6.8 billion dollar the.

18 increased compare 18% increase compared to the previous quarter and for the first half EPS reached <unk> 12.5 billion.

We had the working capital release in the first quarter and a larger land again this quarter. So cash flow from operations. After working capital was $7.6 billion.

On the light second quarter, the $2 billion increased for the first quarter and for the first half each received more than $13 billion.

As a result will reduce the net debt to capital ratio of the gearing.

Faster than expected to 18, 5%.

At the end of the second quarter.

It is a major step towards anchoring gearing sustainability below 20% and once again annualizing. The Q2, adjusted net income while debt to double digit profitability.

In terms of cash flow allocation net investments were $3.2 billion the line.

With the $7.2 billion EBITDA in this first half.

And the board decided to distribute the signal on interim dividend <unk> zero with 56 zero per share stable in Europe that representing an increase in <unk> compared to a year ago.

And now but weak in line, we are ready for the Q&A.

Thank you, ladies and gentlemen, as a reminder, if you'd like to ask a question. Please press star and 1 on your telephone and wait for your name to be announced.

You can cancel of questions any time by pressing a husky.

So once again it is.

And 1 for other questions.

I understand you.

Question is from the line of question Malek of Jpmorgan. Please go ahead.

Hi, Patrick Patrick champion Congratulations on this as loans credit to see turn to LNG is back on the front.

Buybacks train shipment guidance.

2 questions if I may Patrick I know in deposits you talked about the impact.

Back to a bunch of investment exacerbated by.

2019 day transition trend and so on can you update us on your thinking on how you frame. The next few years on the oil market.

Clearly had some constructive comments from your peers.

And has that influenced your decision to launch buyback arguably sooner.

Needle anticipated the second question some ways. So when they used to that is on capex.

On that Capex remains guided within this 12.13 range in <unk>.

What's your maintenance conflicts with growth in all of that.

Gross sentiment often says renewable electricity.

If the whole market is getting tighter and it looks more attractive.

Correct.

Is there a case to allocate more investment within oil and gas.

Essentially to benefit from that through high oil volumes given that's what every year's total has been exemplary out. Thank you.

Thank you Christian for your 3 year window 2 documents.

Yes.

And then your questions. So first about the industry.

And the investments that we have.

Served.

I'm still on wet foods I know of it at $75 per borrower, obviously people tend to forget that we have a global environment.

Of all the climate debate, which puts pressure on many players.

And which gives us I would say when you are listening to the last.

Net zero a year report, even if we disagree with the conclusion, obviously put some pressure on many players and my view is that.

Probably the industry would be more prudent to to relaunch a bunch of projects.

Making a linked by the way with your second question, obviously like into what we will do in total is being able to announce some short cycle capex like we have in sales with last year was a crises we stopped.

I'd say 2 billion zone.

Infill wells on the short cycle orders in Angola.

<unk>.

In Nigeria, and Congo of growth. Obviously today are in structure and is that we can re launch that and probably next year in our budget will not stick to 12, 14, but probably more to foods and <unk> reached the $1 billion extra capex, which could come might come.

Just to give you the magnitude so we will activate.

And considering.

The larger projects.

I am still more cautious I think.

We have quite a lot of volatility.

By the way, it's also true with the issue of less investments you gave some support to other prices for the oil price. So my view is that most share today is.

More to to to have less investments more prices of course, then cycles can comeback 1 of course of the key question for the market will be to observe what will happen in the U S.

Sure sure on players, which will have an influence.

My view is that by end of next year, we might come back at the levels of production.

Before the crisis.

Then, but then even there maybe we are on we are as you know we are not a direct player in that game.

We do not intend to become 1 <unk>.

But my view is that investors and financial place on ensuring vessels, we share giving equity to as a shareholder players are also.

We have built because of ESG and all visa I would say trends and market trends and strong market trends.

On property or so more cautious to deliver.

The equity on money too.

Oil and gas oil in particular, so I'm still on I don't fee income and of course right.

On slide you will see more investments, but I don't think we'd be as much as before but it's been the compensates quickly and the investments and which cycle in which we entered considering total I think yes. This year 12, <unk>, probably next to food to more of a next to food inventory.

Because we have been a little more active on the new awards on electricity about anticipated at the beginning of the year, which leads to the speed that you mentioned.

Honestly I think this level is quite quite okay as well.

Our on 3 billion for this business is it's an acceptable level.

Not much.

A higher priority and it's clear that the <unk>.

I told you I think as a company we view this type of environment keeping in mind that we plan on Capex on a $50 per borrower for I would say a large greenfield projects and will continue to stick on that discipline. I think is the right figure for the global financial burden.

And so the company is around let's say up to 14 billion. So this is probably the type of figures, which will confirm to you that the CMT in September and again it would be more on the short cycle oil projects rather than on the large greenfield projects, but we.

We might do it but we have quite a lot of.

And we'll come back on that on invest in September of <unk>.

We had 1 billion barrels of oil reserves to 2 activates we activate on the part of it on the projects. We stopped so we can do it again and we had for example put into production in year 2 but.

We will analyze the specific use case, where we can do at today's 1 limit to where my comment which is that COVID-19 is still there and.

And you know we have teams and we have been obliged for example, the country Angola, where we have a lot of opportunities to 2.2 to drill the limitation is in operation or 1 because of themes on the swift.

And growth for 18 months, so it's not so easy and so we do not want to overbuild on them even event sales if we'd like to benefit from the oil price. So this is a challenge we face is where do we should keep that in mind, but we still are advantaged.

Environment is Julien, but COVID-19 distilled vessel.

Pharmacy is of course, our value and we have it in mind, when we allocate capex for capacity to deliver in a safe and healthy environment.

Patrick we've gone from just sorry to follow up on this income from 12% to 13 to 14 is there a couple of capex or is that a framework that you're sort of referring to here just on the sort of medium term just to help us.

Sales on the capital frame by debt.

Now for 2021, I'll repeat <unk> next to <unk> I was more giving us a framework on which we work considering your second question, but it could go next year 2014, rather on Twitter.

Okay, great. Thank you.

Thank.

Thank you. Your next question is from the line of Jon Rigby from UBS. Please go ahead.

Thank you.

Hi, guys.

2 questions.

1.

Sort of jumps out of me with the narrative around the withdrawal from from Venezuela and then.

On the additional disclosures the company has been making about new <unk> in this sort of carbon emissions.

Level of production. So I wanted to ask you whether you could just talk a little more about how you balance.

On sort of economic returns of new projects sit around the IRR.

Some of the banks MPV et cetera.

This is the.

The carbon emission emission profile.

Those.

Projects does it lead you to.

Some projects may be some offshore deepwater.

Way from others.

And is that shaping both fuel.

<unk>.

<unk> pipeline, but also potentially youll sort of review of your existing projects.

That makes sense.

Can we just have a quick update.

On Mozambique.

On current thoughts there on whether there's any any further thinking around timelines et cetera.

Thanks.

Okay. Thank you John for your 2 questions.

The first 1.

Yes, it's clear.

And again it was the core of the.

Resolution, which was us.

Putting to the vote of our shareholders of AGM when we described.

Described.

What will be the ambition of total synergies in terms of sustainable development and climate portfolio for the next 10 years and allocation of capital. It was probably the most important linear.

We described that.

Okay.

<unk> criteria.

To sanction new Greenfield hydrocarbon projects.

We put 2 criteria on the table, 1 which is in line with a strong economic belief, which with low takes even low technical cost under $20 per Boe or typically I think Sweden like that.

Or lube breakeven in case, we could benefit from species specific quarters.

Breakeven.

And a $30 per balance so it's a technical aspects, which was by the way in.

Our strategy for the last 5.6 years since 2015. So there is nothing fundamentally new just and why.

Why did we do that just because if you think that you are in the market all markets, where the demand might decline in the future.

See very safe to have your projects being on the <unk> side in terms of technical cost breakeven, that's an obvious economic case, which it is.

This is the right bridge between climate.

And volatility of the oil price, but we have added another criteria, which is that we consider but each new greenfield projects carbon intensity.

B must improve.

The average carbon intensity today, so to be clear the average.

2 intensity of all portfolio, today's 20, Quito Bauer and so each new projects must be below it is the case for Uganda. It was around 14, it could be the case for projects with rich just on.

Proving we have upon us which is <unk> 4.

In Brazil, well.

Right around 18.

So that's true but in the way we appreciate today and this is a chance for sure in total energy as compared to total.

The way we appreciate the new projects, we have on 1 side.

The IRR of the NPV keeping.

Keeping again, the same fundamentals, but you knew adding my 2 elements of technical costs and low breakeven.

The company is run like that since 2015, but we have also we are considering for each project as well this carbon intensity.

Impact and what I described from upstream issue in all of the business issue as well for our marketing people are when we look to growth projects, we speak about scope, creating the same way we speak to best cope 1 for upstream.

Yes.

So.

Once the new project on which in future projects.

This debt does not lead to a full review on our portfolio even in the case of Venezuela.

I think we look at Okay. We are in the asset for loans.

But as I said.

As a content context is not so easy and we stayed in Venezuela in 2000.

8 when we are or we will firstly nationalize that we'd say by year.

Non because of in fact fundamentally because of the huge potential to develop new projects in the extra yield or renewable belt. This today is normal agenda. It's.

Consistent we start on energies because developing extra <unk> in <unk>.

<unk> you are above my 20 kilo per barrel or do you have a low technical costs were too high.

Intensity content and so.

We offer as a board and all subsequent very management is very consistent with what.

We submit it to our shareholders. So we decided because there is there was an opportunity and also because together with as I said, we think we know we share in factories seem views, we decided and we have the opportunity offered by <unk> to exit and rather than dragging our feet on the net.

No more willing to participate in the new Capex, it's better to 2 lease PVA sales capacity to do what they want but this is clearly an influence I know that you are not a big fan of opposition in Venezuela.

Time to us 2.2.

To execute your comment, but sometimes you know it came on bi.

<unk>.

If you have another question do we have a variety of like that my answer is no. We don't have so many assets on which we like that and depot flow of course again. The example of depot for Brazil.

Large portfolio of large projects.

<unk> is fitting with our criteria.

And by the way again.

Again, the jump we have put we have to be taken a strong commitment in our resolution which is but.

Every year, you will see reports coming from total energy demonstrating that for each of these projects hydrocarbon projects. If we yes or no with respect to these criteria and if we do not expect of course, we will have to.

Explain why we consider that it was still acceptable to to make the sanction but this is a clear guidelines for all of our teams.

Mozambique, Mozambique Juno's situation you can read the newspaper like me, we have been quite clear there is a war in Mozambique CVR warm.

And so in this area on the north of Mozambique, we have been forced to declare force measure we have decided to.

Stop and even to.

Do we say that.

Good day, multi dismantle them until to stop the project and dismantled.

The teams because we don't see a variety of time.

I've said publicly it would take at least 1 year in fact today it's normal.

Where is.

It pushes the government of Mozambique is taking actions to 2.

<unk> to reinstate a stability in visa.

Cabo Delgado a region is not just by the way only vre.

Whereas the project is not only the Belmond <unk> is a cabo together was awarded because.

These insurgents.

Everywhere I would say.

You've seen that.

We have taken decision at VA CDC level to government government has asked for SADC too.

Jim Knight eyes on some.

Some are we literally out where you've seen a potpourri of you're right probably as well.

So we're on the other is involved now, but frankly to be clear so telling us. This is not involved at all in these military reactions is no more.

We are aware too of course, we are following.

Mobile Baidu is what it will take time.

<unk>.

Of course, we would.

I can just tell you is that I had the chance to discuss with.

Is it that you see in May in Paris is told me his willingness to solve the issue and what they kind of smooth as debt.

Months' Astral weeks after.

With respect.

<unk> and taking the actions that we described to me. So then let's see if we can get out with again. This issue is beyond it's not a matter of gas development as day on this it's a question of peace.

And stability and when we say that you know there was quite a lot of casualty so popular.

Population.

But is suffering.

Of course. This is this is a priority for them and us is that energy we.

If we can support we continue to support the population as much as we can including by keeping some means to evacuate some people when there are difficulties.

So this is a situation in Mozambique I have observed.

Area 4 as just this last week recently joined or <unk> for force Majeure Declaration.

But again.

Guess advanced the project is vest, so let's be clear.

Be patient.

On the timeline I said at least 1 year.

We hope for.

Again the minutes.

Military actions taken by the government will be able to restore peace in that part of the of the planet.

Okay. Thank you for a comprehensive thanks a lot.

Thank you.

Our next question comes from the line of.

Your line.

Yes.

Please go ahead.

Thank you very much good afternoon.

Thank you Patrick for clarifying.

And this distribution.

Policy and the amount.

Question is really regarding debt.

The dividend.

Obviously as you said, it's a slot here on Mount an increase in dollar.

How does the board think around.

Dividend progression if it is a progressive policy, what would drive an increase in debt quarterly euro amount.

Going forwards.

And I had a second question specific to our second quarter results in March.

This is where.

Sales volumes remain around 21% below.

Pre crises levels and yet.

All parties pretty much the same so clearly unique margins are exceptionally strong.

I Wonder if you can talk a little bit about debt.

On the ability of this on the second.

Marketing into the year is it.

Is it likely to be sustainable as as demand recovers post COVID-19. Thank you.

Yeah.

Yeah.

So your first question I mean.

I'm always amazed by your capacity your capacity when we announce something on 1.

We'd have to go on to the other side, but I mean, I think we are quite clear.

No, we I said, but we will support the dividend through the cycle, we've done even when it was down. So today, obviously, we have lots of capacity to civil growth feels we divided the dividend by free to announce big increase.

Because it's going to be non metric is.

1 side more so.

So we decided on the policy which is to.

10 years.

We never decreased the dividends for 40 years. So we progress when we have the feeling that we are at we are able but fundamentally that dividend will grow when we'd be it will be linked to a structural increase.

As the enabler of free cash flow. So it means by as you know will be the next to free for 5 years. We will have will have some increase of productions with large projects and then it will we will be able to deliver an increase of free cash flows. We told you last year between 2020.5 'twenty 6 we have an increase.

Cash flows of $5 billion per year, so that.

So that.

So that will be obviously.

The source of dividend increase so dividend increase for me is linked to a secure increase of cash flow of operations.

On that amount or so today.

It's not the case. This year. We are we are benefiting from a higher oil price which is good.

And so you'll have to but we want to use when we are in such a situation as we announced in February again, it was quite clear waiver.

Share buyback boxes, which is when we have.

Today, and if it from other oil price.

We want to return part of it to shareholders and today, we give you as a crew which is above $60 per borrower, we give 40% of the free.

There is additional cash.

2.2 up to 40% of Tianjin on.

Cash flow shareholders. So our policy will be on the dividend increase orally link.

Link that was push or increase of cash flows linked to better operation not only upstream production, particularly governor on downstream as well, where we have new projects and the strategy, which aims to deliver additional cash flow and we will.

Come back on debt in September for sure and so thats the dividend Bob and for the buyback is a way.

And I think it is a legitimate request for more shareholders oil or oil and gas shareholders to see part of the returns coming from.

The volume volatility or volatility of the oil price, which.

We are in the iron range.

Of course, when we are in the low range of that last year, and so we defined that as a $60 per borrower threshold between <unk> and <unk>, which is a message of today. So.

The second question is about marketing and services, So I think.

2.

<unk>.

2 <unk>.

It's true, but with yet we did not recover all the volumes, but it's coming back gasoline volume obviously, it's on average between doing but it's about <unk> I think because the network voice over on the retail networks. So volumes are down only by 5% not 20%. So this figure.

Product sales is a mix of retail net wells, where we have quite a good margins and of businesses, we've reported low margin and to be honest. That's why we view. The total total energy vision, when we said, but we will reduce all product sales by 30%.

We have discovered that we can clean.

Our portfolio of all product sales.

By not losing much margins in some areas of the business. This is the way to to cope with the scope free objective. So it's beginning to be an action I think somewhere in this marketing and services company being more efficient.

So, but does not impact margins, but the social.

So the margins on the additional.

Good finished homes reserved is twofold 1.

He is not only given by the market better margins, which by the way is a way to it's linked also to the low refining margins and I know you have a source of cash.

Counter balance effect, there when margins.

Refining <unk> marketing is benefiting so this is why we put always.

The downstream business to give it the best way to look at it we have associates a positive 1 is of course, because you know last year on this too for the World Company My comment we launch because of the crisis on strong saving program auction.

<unk> plans 1 billion last year, we move on on this year.

2 more on additional free under this will move to next year on additional <unk> and the teams are still very focused on that we did not.

Top of his effort on the country and marketing and services in particular have been very strong so.

Part of it from a structural.

So to your question I am not sure we can repeat EBITDA equal to 400 million DAU on a more performance, but clearly this is the objective.

On the marketing services.

To continue to improve very soon so.

But there isn't.

But the fundamental reasonable between agency loans.

Okay.

Okay.

Thank you.

Your next question is from the line of <unk>, Oh Cross How're you from RBC. Please.

You ask a question.

Hi, Thanks for taking my question and apologies. If this has already been asked but on a cough.

Oh Wow.

On the on the buyback front I just wanted to ask thanks for the clarification, there, but to the extent that you generate free cash flow on.

The oil price is below $6 a barrel because your refining margins are high on chemical market.

On the 1 et cetera.

Are you assuming all of those excess free cash flow.

Moving to the balance sheet, because im looking at your financial framework and thinking in a year or 2.

You may be on <unk>, So I'm wondering if the 40%.

Guidance may shouldnt move up over time.

Balance.

So how do you use to get them on.

On the second question on that is just timing wise do you need to wait for approval at the AGM for the buyback to stop or where is that already in place. Thank you.

So first question and thank you if other question no. It's clear that the board considers that below $60 per borrower is supposed to benefit.

The company fundamentally to strengthen the balance sheet like we said so there is a.

But you know if I give you the framework in 2021.

We are spending I would say $12 billion to $13 billion, let's say next 2 food can be on a capex.

Dividends more than $8 billion little more than $60 per barrel, we might be.

<unk>.

At the end of 'twenty free so it gives its part of what has been allocated already too. It was adapted so is it <unk>. So it is clear that this vessel.

Way to think to that so yes, we have a free cash under $60, a breakeven is lower than that but it will be allocated primarily to strengthening the balance sheet as we explained that in.

In.

Delivery.

No we don't need any AGM approval.

On our decision so the decision is taken.

So to answer to your question when it will take place you know we are going to early day. So it will not take place in our growth because we don't work during holiday.

And the overall day switch our Christmas.

<unk> reduce which will take place between the end of August.

And Christmas. So we really executed is a commitment I know my colleagues stormy. This morning. There was some questions about are you sure. So in total in <unk> and does not change from total before because you have the same management I think we have a.

Our strong track record of.

<unk> I could tell.

Executing with retail and so.

Can't tell you, but it's quite clear we will do it.

Including and so we are there is no trick there we will.

Execute.

This buyback of course, the prices moving but when I.

I look to end of <unk>.

End of July we are.

Or whether you're a little more than 66, and I think that August will stay a strong saw we really execute but I would say.

Before year end.

According to <unk>.

Market applications per month.

Great.

Understood. Thank you.

Thank you.

Next question is from the line of Martijn rats with Morgan Stanley. Please go ahead.

Hi, Hello, I also have 2 questions.

First of all I wanted to ask if you could say a few words about the debt.

55 package from the European Union I know, there's a ton of measures in there, but I was wondering if from your perspective, if there was anything sort of unexpected or something that caught your eye or some kind of impact mm mm $2. So disproportionately ah it can be quite difficult to read sort of oversee the full implications of this so just at a very keen.

<unk>.

Do you have what you think of it and the other thing it all follows a little bit of a similar trend to be on it but I noticed that you are now disclosing greenhouse gas emissions on a quarterly basis.

Even down to the level of scope 1 scope 2 scope III I think this is very interesting.

And but I also noticed debt actually from <unk>.

The scope 3 number was already down quite a lot I think from 88 to 77 million tons of C. O 2 equivalent and I'm just sort of start to understand these numbers a bit sort of going forward.

I wanted to ask you sort of what level of sort of quarterly volatility should we expecting those numbers because they are clearly not going to trend down.

Like this every quarter there'll be quarters, where there are going to be up there maybe several quarters in a row that theyre going to be up I just want to make sure that we understand that if they go up for a couple of quarters that you know what does the debt that is normal. So I wanted to ask sort of how variable are these quarterly numbers any sue emissions. So that we can understand them and when they come in in quarters ahead.

Yeah, I think Martinez always you want to go quicker on us, but we have decided it's true with the board and I think it was a good remark with board member to tell US Okay. No total energies we have this resolution.

Part of the strategy is driven by scope, 1 and 2 ensco free objectives. So you need to so it's worth in your financial results.

And I think as a way to speak pragmatically.

G to disclose your emissions as.

As you noticed we were not able because it's new to us and we are not the full.

Our system.

We are on the table, but as a way to Easter figures. So we have decided to begin from 'twenty..1. So you will see on I think with <unk>.

The reality is we don't have a track record all surf on quarterly results. We took a risk. So I will not answer to you easily but my view is that there is a fundamental wise could free of cash.

2 is endoscope free of Q1 is just linked to I think we are selling less gas before net.

Ah scored in spring weather and winter.

Sure.

And so I think that would be the seasonal effects, which is just linked to our guests sales.

On the material gas gas sales or no.

And on.

<unk> are earning more in winter and summer.

Abuse as well so I think you could expect some seasonality.

Winter Capri. According to just the consumption of energy because in Pasco. Please just consumption of energies.

On the on the scope 1 we begin of course to a why do you have a decrease whose because 1 refinery has been sold Lindsay is out of the perimeter.

So and also because we have some continuous efforts so on the scope 1 normally you should see more declining even if <unk> scope 1 might be impacted by your new projects coming in coming on stream. For example in Q3, we are just on the verge to startup or new kaka.

In the U S I think it's coming.

Peter.

Of diesel.

We put them on.

Channel to be able to start it up before this call, but they failed, but I still supportive of them.

So this 1 obviously is adding I think 1 million tons of steel to on scope.

1 immediately so it's why you could as the scope 1 and 2 will the reason we'd be a global continuous improvement in decline because we are engaged to lower our emissions by 40% between 2020 in 2015, but each time you have a new asset coming on when we operated it communicates.

But thank you for recognizing the fourth and I think it's again probably.

Domestic way to speak.

To do which we proposed to.

We will share orders. The first question is on little more complex because to be honest.

I have asked my team to deliver to me a summary of free cash of 55, and I think our received 50.

55 pages so.

So as I missing on salary.

Not to be I think what is interesting for me is.

As a political debates, which seems to emerge Noah in Europe, because now we are entering into the art part of it. It was everybody was quite.

Sure.

Youre on to say, Okay. Let's go forward the reduction of 55% and now we put the <unk> and the real words means that people are discovering but if you want to get where there would be an impact on energy prices in Europe, and I think when the commission proposed <unk>.

Yes on.

Eating.

<unk>.

Bringing all this begins to.

Governments begin to Eni weighted means.

So we will see of it we'll be able to manage about 4.4 total energies.

I think.

We are following carefully you'll see or what is linked to.

Plane.

The <unk> industry and.

Targets for jet fuels, because it seems that it's very ambitious.

And we will we have to check if all the conditions, it's quite technical.

But to date seems Thats for example, some of the animal fats would not be.

<unk> board. According to the scheme, which is very strange to us because if we do not have access.

So this source of.

On lipids I don't know if we can make all of his liquid debt your liquids.

New jet fuel placebo. So we just have to think to engage know with governments and commission to check for.

And interest yield point of view, we can deliver <unk> energy's which are required.

It's a package, which obviously.

So I will be more <unk> more able to answer to you in September but.

But in July I'm, not sure I will use my early days to read hundreds of pages, but at least so maybe its more salary, but we'll come back to you.

Wonderful well if your team could share Thats short summary, with all of us.

Terrific, because frankly were already struggling with it. Thank you. Thank you.

Thank you.

Your next question is from the line of Great Coupland Bank of America. Please go ahead.

Thank you good afternoon gentlemen.

I want to Echo what.

My friend said I think.

This is a great detail in your disclosure and on that point, if I may ask you for clarification and widened the debate not on a project by project, but including inorganic moves.

You you've been famously I think very successful in a counter cyclical.

Our weighted positions over the last 5 years.

Do you think they have become particularly more on more difficult considering that direct impact, particularly from producing assets on your progress regarding decarbonization. So.

If you would mind, including M&A in your answer for a bit of clarification. Please.

Thank you and otherwise Patrick just wanted to ask you about the name change.

You know.

What's been the feedback do you feel total under.

Under the old brands has been misunderstood and is becoming.

A company that.

It is associated with more than just oil and gas.

And if I may add a sneaky comment then then why link youll buyback to exclusively oil why not link it to other metrics. So sorry, that's just.

Stupid aside but those are my 2 questions. Thank you.

Yes.

If I'm linking to the just to even though for reserves increasing to electricity business I'm afraid the buyback will not be that high but between infusions of future. So I took the sufficient for the future no, but so on the name change I think we have been clear.

<unk>.

Please proceed.

<unk>.

On oil company, even not on oil and gas company or a company we are the <unk>.

<unk>, which is the story is true, but fundamentally and it's fundamental changes in other strategy.

This shifting to become a multi energy a broad energy company encompass not only oil and gas but also.

Tricia you have explained several times why because we see some.

Growth in these markets and we think we can build a profitable on large business now so.

We wanted to have again on name in line with our new strategy and not <unk>. So total energy sales figures was a perfect.

Choice, because I'd say everything in your name you describe the strategy. So the feedback of course, it will take time, I think too including in all in our share price to people to understand it.

But you know for example, this morning, we gave you another aggregate debt, which is quite unusual like <unk>, which is the EBITDA.

Yeah.

Why do we give you the EBITDA after <unk> so almost.

$9 billion I think fourth quarter is just to help you to compare it to the 1 of you to the utility because it seems that there is a new.

<unk>.

Energy major all the utilities just compares in magnitude of the figures and you will see.

EBITDA.

<unk>.

Being able to become a world.

Clear in the energy transition, but we think.

We will drive our strategy on the profitable or strategy.

Coming to your first question to be clear no.

Very pragmatic before we look to different opportunities.

<unk> simple for renal and newspapers, but we are working it on immediately as countries when everybody exit where we come in and we look to if we could get some access to good resources.

Very.

In the framework of.

Pro very profitable contract so we.

For existing on it so it means that.

Our strategy does not.

Total capacity to move on.

Our new hydrocarbon projects.

Providing again.

When we look to some projects on new assets it must fit with the idea that it's a low cost asset.

Look when low cost in terms of technical cost and.

New projects beyond in terms of development ore and has the capacity to.

On the of course, if they are older assets the capacity to drive the emissions down honestly I would be surprised to see total moving on metro assets with very high emissions tomorrow, but.

If it's a very good opportunity.

Well. Thank you again, it's a question of comply or explain in the if things make sense for the company for the for total synergies because total energy.

<unk>, which wants to continue to deliver VNS, a present for the planet, which is oil and gas and which prepared.

Share to deliver initiatives on future. So we're on we have to fit 1 on the pleasant when in the future and the present is still there and you know.

So we have been quite.

Jive to take.

To capture opportunity. So we're all good ones, we will look at them.

Understood. Thank.

Hey, Patrick.

Thank you and your next question is from the line flow.

Hang on.

From <unk>. Please go ahead.

Oh, thanks, very much on Patrick Thanks for taking the time to go through this call because it's always enjoyable listening too.

Couple of question.

Questions may be a little abstract first 1 acorn.

On projects my understanding is you've decided not to remain within that consortium.

I just wonder whether there was a particular reason.

Or is it just bouncing projects.

Going on there.

This was not like where something else falls.

Second question is just how do I think about the the EBIT dollar numbers that you presented with from the renewables business towards just look at them on saying well the 2 small Canadian anything at the moment, but it's just the trend I guess, it's the thought that you're building a business and yet the president Todd you know I kind of see the EBITDA falling between 2 Q.

'twenty into 'twenty, 1 or in day, 1 Qs 21 and until 'twenty 1.

It's trying to make sense of what price speakers are actually saying to me too.

Okay.

They go on Yeah, I know just what we had last year, we made a review of all of us to see those projects we.

In the in the North Sea.

We had 4 projects in our portfolio, we have no food notch, we had the 1 with BP in the UK.

You can see we keep score the net zero decided I think line.

And we had another 1 RMS in the Netherlands.

And so we look at the map, we look at the potential and in fact in the potential for us to use these projects because we want to develop tcs investments net.

Turning to cash due to poor customers, but also for sales.

We made an arbitration I would say to say, okay. We free projects for the next.

For years, we have enough so let's concentrate on their thoughts on the on the <unk> lives and we decided to leave the equaling 1 where we had in fact less direct interest to use the capacity of storage of Acorn due to activity in in Scotland and flexible.

So thats the reasons fund so it's not again to project is a good project, but its just an arbitration we've been on portfolio of the capital that we want to dedicate 2 ccs in the coming in coming years. So as a second question is about.

Proportionate EBITDA, Yeah I think.

<unk> retiree lives I think health care will expand you, but I think you gave the Jews accrue.

Pitch, you said that this quarter there was less farmed out and that explains as I explained to you.

Hi.

On your spot with our model.

In Q2, we are left on their own comparison, 1 so let's explain why the the EBITDA.

It was.

Free of 14 in Q1 on salaries to the 290. So it's just a matter of both on down but of course, the underlying trend is the eastern Nepal trends.

<unk> hundred 80 day to day to get better.

No we reported on the total Udd's undecided.

If we had increases when you will give us.

By Taiwan with a median.

Whats the effect.

<unk> order because as we have more and more full projects, we would that we found on more and more and so it would just increase.

But the points and as Patrick mentioned to you use this metric because it is a metric.

Used by our competitors and we want to give.

Such metrics to allow you to compare our performance.

Yes, I think in Q1, we found on something like 50% of the.

And let me go.

And Q2, we had we had new farm down so again, it's not a per.

Amendment activity depends quarter by quarter, but the limit of it. Okay. That's great. Thank you have a great summer.

Thank you.

And your next question is from the line of Bank fraud holiday from Kepler. Please go ahead.

Yes, hi, Thank you for taking my question 2 if I may 1 on your LNG portfolio and 1 on <unk>.

Our remaining oil sands portfolio.

First on the LNG can you update us on current status of negotiation, we skipped operatory on line on Qatar.

Seal debt.

Pension and your current thinking on the potential return you can make here.

And the second question is about Oh sense your position in an authentic Canada. So a month in Fort Hills, so abuse announce.

On today's call.

The exit from Venezuela, you made no secret correct me, if I'm wrong is that yeah.

You are looking for divesting at some stage are your Canadian oil sands position are you, making any progress on that Ah divestment process.

Do you see on appetite for any buyers out debt.

Good day tell you know there is moving acquisition visa to tender. So we have submitted a tender like I've seen sizable 5 or 6 of our compared to comparable companies. So caetano I think is just sort of looking.

And Oh who's on the of course, we have quotes I think quite a.

Moving over but I don't know if the authors of my competitors. So I cannot comment on something that was on those but I can confirm you, but total awesome. It is.

And you go through to Qatar, but the.

He is already on my Jewel, maybe they don't have their sales.

We'll see.

And are we doing from okay.

Is offering.

I think they have made public as a capex figure of 29 billion dollar full force wanes and so when you make the math it's quite.

Efficient.

<unk> schemes.

So we consider that it's a it's a it's a good opportunity to expand on portfolio in LNG and we have a clear strategy on this side and then we'll see if we are successful on up.

I remind you that we have many opportunities to grow LNG within our portfolio with PNG with VCA.

So on the grille, Russia. So it's question of generating option entities.

We are committed to get the if we are successful.

Oh, the sense I don't know, where you raised but we have announced that we want to exit from where you're gonna die on I'm not sure we have ever seen it we just last year when we made the review.

Oreo assets.

According to climate ambition. So broad made a review of what could be I would say is the stranded assets I meant it was is the criteria used were very long reserves beyond 2015.

And I technical costs.

And in fact.

That's true but in this case, we didn't have much assets in fact, many assets, but we had the olson. So we've made pretty clear we've made the write off I think or more 6 or $7 billion on the <unk>. So we have put back in our portfolio.

Sure.

Assets.

The value of the projects. We are 4 tiers consumers are down to what we consider as a right value for these assets.

Within an acceptable time time line. So we have also committed and we've announced that we're not sanction new projects that's true.

<unk> limited on our ambition, but again you know today at $75 per board.

It makes sense it makes money out so I might be happy shareholder on the assets today, It makes M&A and.

Also explained I think too many potential buyers, we will maybe fink.

Third is in disarray, we are not total.

We are very patient, but these assets will have more value and will be more buyers the day, but the pipeline between Calgary and Vancouver will be built because youll see that day, you will begin to be able to export your or sense too nice markets and then I think new buyers.

Potentially there so again, we are not in a hurry.

It's part of the assets on which we will not invest new projects, but these assets other value.

The value will increase again, which will be the new outlets flaw.

Alberto and so we'll wait for some flow.

We'll be touch points, but we'll wait wait for it.

Many thanks, Patrick can have a great summer holidays.

You too.

Thank you.

Once again it is star Antoine if you will still have that question and your next question is from the line of Jason <unk>.

Please go ahead.

Yeah, Hey, guys.

2 questions for me.

On the announcement today.

To buy back stock with oil over $60 can you just discuss is that based on a backward looking basis for the entire year or what.

<unk>.

The timeframe that youre assessing that buyback for us it quarterly or.

Just any guidance on the period and when are you going to give.

The first.

Announcement in terms of the figure that you plan on buying back will that come with next.

Quarter's earnings and then secondly on chemicals I know it's Rob.

<unk> reported as part of the refining and chemical segment, but it would be great just to hear any insight on how much chemicals contributed.

Quarterly results just.

Given the strong.

Indicator margins in the quarter that on.

Assisted enter into <unk> and the outlook for that segment. Thanks.

Yeah.

Yes. So the first question was about.

Bye bye.

No no no.

My announcement as is for the year. So we're just looking to the fourth quarter, but you gave me a 92 <unk> EBITDA.

No.

Which was to start on LIFO. This quarter no. In fact, we will consider we will consider as a full year.

The full year, it's other endpoint.

We will have to decide that which level, but you know we can easily months up the loans and manage it and again, it's up to 40, because it's not a mathematical figure.

240%.

Just before I said, the <unk> 60.

$67.5 per Boe to 960, which means $1 billion.

Inventory so even though we are net so we are rounding to figure, but do we will monitor it I will not describe to us or the mechanics, because I think you need to be sometimes 2 nodes because if it's a commitment is it based on the yearly average and we'll monitor it.

From.

As I said not in August because we're on early days, but between September.

In December we will monitor, but let's see but points before year end, but don't take it before if EBITDA.

Yeah.

On the downstream I think.

<unk> used a nice word which was Easter week results for petrochemicals and for polymers I can tell you reported.

In fact, 1 of course today like in many.

Although I would say commodities you see a huge pressure on the.

On the on.

High pressure on.

Prices have been.

Because you know a lot of there is in fact, what we observe that the world level is 2 effects 1 of course.

Remove.

The growth in euro so quite to a high growth in many areas of the planet, but also the fact, but last year you know when the crisis came.

People are almost emptied ordinary inventories.

Why because when the crisis came to maintain the capacity to continue to manufacture.

Factor as the system was stopped we just with people who are customers of emptied their inventories and then based on <unk>.

Bill them because of the economic crisis. So today, you have a planet and it's not too early for polymers and many other.

I would say.

Sydney semiconductors, and others, where the inventories.

And now you have a quite a good demand because of the economy is coming back to the levels previously previous classes. So it is quite it put some upward pressures on all of these communities and so we benefit from it and you know us.

I think today with many comments were positive about the downstream reserve, which is good for them.

But I can tell you with the module refining margin was quite poor.

And margin was around $10 per ton on average on non small $10 per ton we lose money.

We have a target of breakeven for European refining margin, which is around $20 per ton. So it then so results indicative so issuer.

As we have done plus 500, just to give you some crew on the downstream to trading was a normal trading.

No exception or last year on the same quarter I commented that joins the same core but there was an exceptional 500 million.

Reserves on the trading so I'll give you plenty of crude today, because I'm happy to.

The non energy so it's a normal trading this quarter you have quite a negative figure of refining. So you can deduct yourselves reserved for polymers, which is quite an historical is on each cycle.

And so and this I think my view is because of the structural impact, but why I described it.

I think.

Issue of mainly maintain for next quarter I am quite optimistic about our critical clinical reserve because this fully move stress global stress will not disappear easily to built on 1 side of the inventories back to more customers and on the other side to deliver the products required by the economic growth so on.

I think it is.

Mr Twins, which which compensate again somewhere.

<unk> refining margin 40 mirrors by the way integration works as well because we benefited from a maroon naphtha prices in our petrochemical business, So which is why we I always consider this integrated model for us on.

And this is another proof this time.

He is on Nova question. Thank you.

Thank you and we have a final question from the line of.

On San Jos policy from Mediobanca. Please go ahead.

Hi, good afternoon.

Good question.

The first 1 I'd like to go back to the.

55.

1 thing that was probably mixing awards carbon capture and I think across Europe, we're seeing.

But on the divide between government supporting Cabo capture.

In Norway, U K, Haler EBITDA and some others.

Norway Zone.

Commodity hi, Shang Guang.

So how important do you think cabo capture will be for Europe to each day carbon reduction targets by 2030.

And 2014.

On the breakeven net we need to see in terms of carbon price too to see a widespread use of the carbon capture technology.

Okay. I think there is a debate, but at the end of the day and the commission is quite clear if you want to other carbon.

Neutrality in Europe without Ccs.

You cannot achieve it I mean, we have to be pragmatic, but they are also in the plan for 55, putting emphasis by the way on natural based solution and for us to have an interest in part of the <unk>.

Action plan is also around the natural carbon sinks I would say.

So we need it.

Now we need that they are also on debates of course, but also on pressures from Ngos.

It's interesting to see but some day.

Very different governments.

Like Dolby on 1 side, which obviously is on oil and gas country.

But also the Netherlands, which.

<unk>, which will not be on oil and gas.

Country by 2050.

Pushing for these type of technologies like the UK as well.

To come back to your question in fact, the best way to lower the cost.

Is.

It's not only a question of the cost of capturing as more of a question of infrastructure to store and when you need to have.

Total for mass effect.

It's easier to make it.

I would say to Lou was of course when you built.

Our Ccs scheme in OIBDA in the Netherlands, we have many industries, putting together with <unk> and some infrastructure you can lower the cost.

In terms of cost by the way in Europe.

So today.

EPS is here to price is around the almost $60 per ton thus far.

I start to begin to think that we can reach more of on debt under our per ton by 2030 and thats under the rebate on the novel <unk> project is very profitable. So it's a question just a further.

Because all of this we cannot change Ccs, if we don't think Cabo on price but.

If everything in fit for 55 is organized to reach at least 1 other dollar per ton force you to by 2030, if not more so this makes these technologies.

Profitable saw adviser this is Mike.

My my feedback to you.

Alright. Thank.

Thank you.

Second question a bit more.

Total score on that.

Sure.

I've seen you.

<unk> announced a new discovery.

Maybe can you give us an update on what the potential per day for the Beijing could be.

Because again each day, we announced a new.

It's more wells to keep our soft until <unk>. We have another 1 is a priority today for diversity from a bench CNS is 2.

To move to our first development oil developments we have.

We're going on which is called the cash.

Casey I think.

It's another important world and I.

I think we love.

This sequence of wells <unk>.

At the end of the year, we should be able to answer more precisely to your questions.

He has a lot of hydrocarbons.

As well quite a lot of associated gas.

And as you know neither Apache no total energies.

As I have any policy to develop a field wide flaring so that means that for.

Today, what we are working on together is appraising and other to identify.

All development, mainly with limited associated gas in order to be able to to develop according to stand.

Okay. Thank you very much.

So I understand it was the last question.

And so thank you to all of you for attending this call.

I would like of course to wish to all of you purely days.

We have not been too longer even if when the coes.

His presence is a little longer versus on Liza CFO.

But again I would like just to other conclusion to say that I'm very proud as chairman and CEO of.

Or what our teams are doing inter within total energy. Despite the Covid crisis, we are really putting all auction clients. We are transforming the company is a lot of effort.

We have managed to overcame a 2020 crisis environment and at the same time, we took an important major step in our journey by committing to a net zero ambition and to building together with new more sustainable growth energy company.

Thank you again for your attention.

Thank.

Thank you Scott.

This concludes the presentation today. Thank you for participating you may disconnect.

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